Fiscal Year Ended May 31, | --- | --- | --- | --- | --- | |----------------------------------------------------|-------|-------------|-------|-------------| | | | | | | | (Unaudited) | | 2023 | | 2022 | | Income Before Income Taxes | | $ 309,683 | | $ 396,509 | | Add: Interest Expense, Net* 8,416 6,673 | | | | | | EBIT** (non-GAAP measure) 318,099 403,182 | | | | | | Inventory-related charges (recoveries) (a) 24 (59) | | | | | | Restructuring expense (b) 6,253 978 | | | | | | Accelerated expense - other (d) ...

Financial Performance - Consolidated net sales for the three months ended February 28, 2023, were $1,516.2 million, representing a 5.7% increase compared to $1,433.9 million in the same period last year [122]. - The CPG segment reported net sales of $497.0 million, a 3.1% increase from $482.0 million, driven by organic growth of 4.3% [122]. - The PCG segment achieved net sales of $299.6 million, reflecting a 10.6% increase from $270.9 million, with organic growth of 13.2% [122]. - The Consumer segment's net sales increased by 7.5% to $528.5 million from $491.6 million, primarily due to improved pricing [122]. - Total consolidated net sales for the nine months ended February 28, 2023, were $5,240.2 million, reflecting a 10.9% increase compared to $4,723.8 million in the prior year [146]. - The Consumer segment achieved a 15.3% sales growth for the nine months ended February 28, 2023, driven by improved raw material supply and price increases [149]. - The CPG segment experienced a 6.9% decline in net sales to $1,740.6 million, impacted by unfavorable economic conditions and reduced demand in certain markets [146]. - Consolidated net income for the three months ended February 28, 2023, was $27.2 million, or 1.8% of net sales, down from $33.2 million, or 2.3% of net sales, in the prior year [144]. - Net income for the nine months ended February 28, 2023, was $328.1 million, representing 6.2% of net sales, compared to $293.2 million in the prior year [168]. Profitability and Margins - The consolidated gross profit margin improved to 35.5% for the third quarter of fiscal 2023, up from 34.8% in the prior year, an increase of approximately 70 basis points [127]. - Consolidated gross profit margin improved to 37.6% for the first nine months of fiscal 2023, up from 35.9% in the prior year, primarily due to higher selling prices and production efficiencies [151]. - SG&A expenses increased by $16.5 million compared to the same period last year, but as a percentage of net sales, it decreased to 29.7% from 30.2% [129]. - SG&A expenses increased by $28.2 million in the first nine months of fiscal 2023 compared to the same period last year, primarily due to higher professional fees related to MAP 2025 initiatives [158]. Costs and Expenses - The company recorded an impairment loss of $36.7 million for goodwill and $2.5 million for an indefinite-lived tradename in the USL reporting unit [116]. - Interest expense rose to $30.8 million for the three months ended February 28, 2023, compared to $22.0 million in the prior year, driven by a higher average interest rate of 4.34% [138]. - Interest expense increased to $85.4 million for the nine months ended February 28, 2023, up from $64.1 million in the prior year, reflecting an average interest rate rise to 3.91% from 3.14% [161]. - Total net periodic pension and postretirement benefit costs increased to $14.7 million from $11.0 million, reflecting a change of $3.7 million [135]. - Total net periodic pension and postretirement benefit costs rose to $44.1 million in the first nine months of fiscal 2023, an increase of $11.2 million from $32.9 million in the prior year [158]. - Restructuring charges amounted to $4.2 million, with $3.4 million related to the MAP 2025 initiative aimed at improving margins and operational efficiency [136]. - Restructuring charges amounted to $6.8 million during the nine months ended February 28, 2023, with $3.4 million related to the MAP 2025 initiative [159]. Strategic Initiatives and Future Outlook - The company anticipates continued headwinds from rising interest rates and reduced customer demand into the fourth quarter of fiscal 2023 [128]. - The SPG segment generated organic sales growth, particularly in disaster restoration, due to operational improvements [126]. - The company is exploring strategic alternatives for its infrastructure services business in the U.K., which represents approximately 30% of annual revenues of the reporting unit [115]. - Future additional charges related to the implementation of MAP 2025 are expected to be approximately $14.7 million [137]. Liquidity and Financial Position - As of February 28, 2023, available liquidity was $843.5 million, down from $1.31 billion as of May 31, 2022 [180]. - The company maintained compliance with all financial covenants in its Revolving Credit Facility, with a Net Leverage Ratio of 2.54 to 1.00 and an Interest Coverage Ratio of 9.79 to 1.00 as of February 28, 2023 [183]. - As of February 28, 2023, the outstanding balance under the Accounts Receivable Securitization Program was $225.0 million, compared to a maximum availability of $228.9 million, with a total potential funding of $250.0 million [185]. - The term loan facility was amended to extend the maturity date to August 1, 2025, with outstanding borrowings reduced to $250 million, and it bears interest based on either the base rate or adjusted SOFR plus a spread determined by the company's debt rating [187]. - The company must maintain a consolidated interest coverage ratio of at least 3.50 to 1.00 and a leverage ratio not exceeding 3.75 to 1.00, with potential increases to 4.25 to 1.00 under certain conditions [187]. - There are no off-balance sheet financings or subsidiaries not included in the financial statements, ensuring transparency in financial reporting [190]. Market Risks and Compliance - The company is exposed to market risks from changes in raw material costs, interest rates, and foreign exchange rates, with no material changes in exposure since May 31, 2022 [194]. - Environmental obligations are being addressed without anticipated material impact on the company's financial condition or operations [191]. - The company is actively managing its debt covenants to avoid defaults that could accelerate repayment obligations [186]. Stock and Forward-Looking Statements - The company has a stock repurchase program in place, details of which can be found in the Consolidated Financial Statements [189]. - Forward-looking statements indicate potential risks including economic conditions, raw material prices, and geopolitical factors, which could materially affect future results [193]. - The maximum availability under the AR Program is subject to changes in customer credit ratings and concentration levels, potentially limiting access to the full $250.0 million [185].

RPM International Inc. (NYSE:RPM) Q3 2023 Earnings Conference Call April 6, 2023 10:00 AM ET Company Participants Matt Schlarb - Investor Relations Frank Sullivan - Chairman and Chief Executive Officer Rusty Gordon - Vice President and Chief Financial Officer Michael Laroche - Vice President, Controller and Chief Accounting Officer Conference Call Participants John McNulty - BMO Capital Markets Aleksey Yefremov - KeyBanc Josh Spector - UBS Stephen Byrne - Bank of America Securities John Roberts - Credit Sui ...

Fiscal 2023 Third-Quarter Results RPM NYSE April 6, 2023 Forward-Looking Statements & Regulation G This presentation contains "forward-looking statements" relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actu ...

or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022, ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 1-14187 RPM International Inc. (Exact name of Registrant as specified in its charter) DELAWARE 02-0642224 (State or other jurisdiction of in ...

RPM International Inc. (NYSE:RPM) Q2 2023 Earnings Conference Call January 5, 2023 10:00 AM ET Company Participants Matt Schlarb - Senior Director, Investor Relations Frank Sullivan - Chairman and CEO Rusty Gordon - Vice President and CFO Mike Laroche - Vice President, Controller and CAO Conference Call Participants John McNulty - BMO Capital Markets Frank Mitsch - Fermium Research Josh Spector - UBS John Roberts - Credit Suisse Aleksey Yefremov - KeyBanc Capital Markets Steve Byrne - Bank of America Ghansh ...

(1) EBIT, Adjusted EBIT, and Adjusted EBIT Margin are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures. Q2 2022 % Change Adjusted EBIT1 46 40 +16.6% • Strong demand in energy markets Fiscal 2023 Second-Quarter Results | January 5, 2023 8 Fiscal 2023 Second-Quarter Financial Results Record Q2 sales and margin expansions driven by improved material supply and pricing | --- | --- | --- | --- | --- | |----------------------------|-------------|--------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2022, or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 1-14187 RPM International Inc. (Exact name of Registrant as specified in its charter) DELAWARE 02-0642224 (State or other jurisdiction of inco ...

RPM International Inc. (NYSE:RPM) Q1 2023 Earnings Conference Call October 5, 2022 10:00 AM ET Company Participants Matt Schlarb - Senior Director of IR Frank Sullivan - Chairman & CEO Michael Laroche - VP, Controller & Chief Accounting Officer Rusty Gordon - VP & CFO Conference Call Participants John McNulty - BMO Capital Markets John Roberts - Credit Suisse Mike Harrison - Seaport Research Partners Vincent Andrews - Morgan Stanley Steve Byrne - Bank of America Arun Viswanathan - RBC Capital Markets Josh S ...

| --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-----------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal 2023 | | | | | | | | First-Quarter | | | | | | | | Results | | | | | | | | | | | | | | | | October 5, 2022 | | Forward-Looking Statements & Regulation G This presentation contains "forward-looking statements" relating to our business. These forward-looking statements, or other statements made by us, ...