RPM Reports Fourth-Quarter and Full-Year Results for Fiscal
July 24, 2017
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Cash Flow and Financial Position
For fiscal 2017, cash from operations was $386.1 million, down 18.7% from $474.7 million in fiscal 2016. Total debt at the end of fiscal 2017 was
$2.09 billion, compared to $1.64 billion at the end of fiscal 2016. RPMs net (of cash) debt-to-total capitalization ratio was 54.8%, compared to 50.0% at
May 31, 2016. Capital spending in fiscal 2017 was $126.1 million, up from $117.2 million a year ago.
Our financial position remains
strong, allowing continuation of a robust acquisition program and capital spending for plant improvements. During the fourth quarter, we prepaid the December 2017 524(g) trust obligation in the amount of $119.1 million, as well as the fiscal
2018 U.S. Pension Plan contribution in the amount of $52.8 million, Sullivan stated.
Fiscal 2017 Full-Year Consolidated Sales and Earnings
Fiscal 2017 consolidated full-year net sales increased 3.0% to $4.96 billion from $4.81 billion in fiscal 2016. Net income declined 48.7% to
$181.8 million from the reported $354.7 million in fiscal 2016. Diluted earnings per share of $1.36 were down 48.3% from $2.63 a year ago. IBT was down 49.5% to $244.3 million from $483.5 million in fiscal 2016. Consolidated EBIT
was down 42.0% to $327.3 million from $564.8 million last year. Fiscal 2017 included a $12.3 million charge for closing a Flowcrete Middle East facility, a severance charge of $15.0 million and the Kirker goodwill and intangible
impairment charge of $188.3 million. Excluding these items, as well as last years Kirker earnout reversal of $14.5 million, EBIT declined 1.3% for the year to $542.9 million from $550.3 million a year ago. After excluding
the same items, net income for the year declined 3.5% to $333.4 million from $345.5 million in fiscal 2016 and EPS declined 3.9% to $2.47 from $2.57 last fiscal year.
Fiscal 2017 Segment Sales and Earnings
Fiscal 2017 sales
for RPMs industrial segment improved 2.9% to $2.56 billion from $2.49 billion in fiscal 2016. Organic sales increased 2.0%, with acquisition growth contributing 2.9%. Foreign currency translation negatively impacted sales by 2.0%.
The industrial segments IBT declined 5.4% to $243.3 million from $257.2 million in fiscal 2016. Industrial segment EBIT dropped 4.5% to $251.3 million from $263.3 million in fiscal 2016. Excluding the Flowcrete Middle East
shutdown in the second quarter of $12.3 million and a severance charge in the fourth quarter of $7.7 million, industrial segment EBIT increased 3.1% to $271.3 million from a year ago.
Specialty segment sales increased 4.2% to $713.6 million from $684.6 million in fiscal 2016. Organic sales improved 2.8% and acquisitions added
3.1%. Foreign currency translation reduced sales by 1.7%. Specialty segment IBT was up 0.3% to $107.9 million from $107.5 million a year ago. EBIT was up 0.6% to $107.4 million from $106.7 million in fiscal 2016. Excluding the
severance charge in the fourth quarter of $2.9 million, specialty segment EBIT increased 3.3% to $110.3 million from a year ago.
segment sales for fiscal 2017 increased 2.6% to $1.68 billion from $1.64 billion in fiscal 2016. Organic sales increased by 0.6%, and acquisition growth added 3.4%. Currency translation negatively impacted sales by 1.4%. IBT declined 78.1%
to $58.7 million from $268.2 million in fiscal
RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands are Rust-Oleum, DAP and Zinsser. Learn more about RPM brands >>
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