04.04.24
RPM International Inc. reported record financial results for its fiscal 2024 third quarter ended Feb. 29, 2024.
RPM reported record third-quarter net sales of $1.52 billion, up 0.4% from the prior year, as well as record third-quarter net income of $61.2 million, record diluted EPS of $0.47, and record EBIT of $93.4 million.
In addition, record third quarter adjusted diluted EPS of $0.52 increased 40.5% over prior year and record adjusted EBIT increased 31.3% to $110.1 million.
Fiscal 2024 fourth-quarter outlook calls for sales to be approximately flat and adjusted EBIT growth of high-single-digits. Fiscal full-year 2024 outlook calls for revenue growth near midpoint of previous outlook of up low-single digits and adjusted EBIT growth near midpoint of previous outlook of up low-double digits to mid-teens.
“Thanks to the hard work of RPM associates, our third-quarter results demonstrated our continued ability to grow sales, expand margins and improve cash flow in a mixed economic environment,” said Frank C. Sullivan, RPM chairman and CEO.
“This is due to our strategic balance, our focus on repair and maintenance and our MAP 2025 operating improvement initiatives, which are driving structural financial improvements, and increasing collaboration across our businesses,” Sullivan added. “MAP 2025 was also a key reason we generated our fourth consecutive quarter of record cash flow from operating activities, which totaled $1.26 billion during the trailing 12-month period. We continue to reinvest a portion of these gains back into the business to leverage our entrepreneurial culture and accelerate organic growth.
“Volume growth in Performance Coatings Group and Construction Products Group, combined with MAP 2025 initiatives and favorable timing of project completions, helped drive a 31.3% increase in consolidated adjusted EBIT to a third-quarter record. Consumer Group also leveraged MAP 2025 initiatives to generate record adjusted EBIT, despite continued softness in DIY end markets. While sales and adjusted EBIT declined at Specialty Products Group, there were signs of stabilization in specialty OEM end markets,” Sullivan continued. “Additionally, our improved coordination in markets outside the U.S. is showing good progress with strong sales and profitability growth in emerging markets and significant margin expansion in Europe.”
During the first nine months of fiscal 2024, cash provided by operating activities was $941.1 million compared to $263.0 million in the prior-year period. Total debt was $2.19 billion compared to $2.82 billion a year ago, with the $629.2 million reduction driven by improved cash flow being used to repay higher cost debt.
“Our strategic balance and consistent execution of MAP 2025 initiatives are expected to drive margin improvements in the fourth quarter, resulting in the 10th consecutive quarter of record adjusted EBIT, as well as record sales and adjusted EBIT for the full fiscal year that is squarely in the guidance we previously provided,” Sullivan concluded.
RPM reported record third-quarter net sales of $1.52 billion, up 0.4% from the prior year, as well as record third-quarter net income of $61.2 million, record diluted EPS of $0.47, and record EBIT of $93.4 million.
In addition, record third quarter adjusted diluted EPS of $0.52 increased 40.5% over prior year and record adjusted EBIT increased 31.3% to $110.1 million.
Fiscal 2024 fourth-quarter outlook calls for sales to be approximately flat and adjusted EBIT growth of high-single-digits. Fiscal full-year 2024 outlook calls for revenue growth near midpoint of previous outlook of up low-single digits and adjusted EBIT growth near midpoint of previous outlook of up low-double digits to mid-teens.
“Thanks to the hard work of RPM associates, our third-quarter results demonstrated our continued ability to grow sales, expand margins and improve cash flow in a mixed economic environment,” said Frank C. Sullivan, RPM chairman and CEO.
“This is due to our strategic balance, our focus on repair and maintenance and our MAP 2025 operating improvement initiatives, which are driving structural financial improvements, and increasing collaboration across our businesses,” Sullivan added. “MAP 2025 was also a key reason we generated our fourth consecutive quarter of record cash flow from operating activities, which totaled $1.26 billion during the trailing 12-month period. We continue to reinvest a portion of these gains back into the business to leverage our entrepreneurial culture and accelerate organic growth.
“Volume growth in Performance Coatings Group and Construction Products Group, combined with MAP 2025 initiatives and favorable timing of project completions, helped drive a 31.3% increase in consolidated adjusted EBIT to a third-quarter record. Consumer Group also leveraged MAP 2025 initiatives to generate record adjusted EBIT, despite continued softness in DIY end markets. While sales and adjusted EBIT declined at Specialty Products Group, there were signs of stabilization in specialty OEM end markets,” Sullivan continued. “Additionally, our improved coordination in markets outside the U.S. is showing good progress with strong sales and profitability growth in emerging markets and significant margin expansion in Europe.”
During the first nine months of fiscal 2024, cash provided by operating activities was $941.1 million compared to $263.0 million in the prior-year period. Total debt was $2.19 billion compared to $2.82 billion a year ago, with the $629.2 million reduction driven by improved cash flow being used to repay higher cost debt.
“Our strategic balance and consistent execution of MAP 2025 initiatives are expected to drive margin improvements in the fourth quarter, resulting in the 10th consecutive quarter of record adjusted EBIT, as well as record sales and adjusted EBIT for the full fiscal year that is squarely in the guidance we previously provided,” Sullivan concluded.
