RPM reports Q4 net income of US$65.4M, down from US$82.6M a year earlier, with sales up 6.3% to US$1.17B; results impacted by US$42.7M in one-time pre-tax adjustments
Allison Oesterle
MEDINA, Ohio
,
July 22, 2013
(press release)
–
- Fourth-quarter sales increase 6% over prior year CONSOLIDATED STATEMENTS OF INCOME IN THOUSANDS, EXCEPT PER SHARE DATA AS REPORTED ADJUSTED (a) Three Months Ended Year Ended Three Months Ended Year Ended May 31, May 31, May 31, May 31, May 31, May 31, May 31, May 31, 2013 2012 2013 2012 2013 2012 2013 2012 (Unaudited) (Unaudited) Net Sales $ 1,170,779 $ 1,101,770 $ 4,078,655 $ 3,777,416 $ 1,170,779 $ 1,101,770 $ 4,081,533 $ 3,777,416 Cost of sales 670,505 641,354 2,375,936 2,235,153 666,638 641,354 2,369,528 2,235,153 Gross profit 500,274 460,416 1,702,719 1,542,263 504,141 460,416 1,712,005 1,542,263 Selling, general & administrative expenses 353,896 322,161 1,309,235 1,155,714 349,853 322,161 1,294,604 1,155,714 Estimated loss contingency (3,712) - 65,134 - - - - - Restructuring expense 20,072 - 20,072 - - - - - Interest expense 21,042 18,433 79,846 72,045 21,042 18,433 79,846 72,045 Investment expense (income), net 8,477 (927) (6,178) (4,186) (5,193) (927) (19,848) (4,186) Other expense (income), net 3,889 (1,230) 57,719 (9,599) (911) (1,230) (4,260) (4,389) Income before income taxes 96,610 121,979 176,891 328,289 139,350 121,979 361,663 323,079 Provision for income taxes 28,521 33,399 67,040 94,526 39,419 33,399 105,615 94,526 Net income 68,089 88,580 109,851 233,763 99,931 88,580 256,048 228,553 Less: Net income attributable to noncontrolling interests 2,711 6,011 11,248 17,827 4,565 6,011 14,708 17,827 Net income attributable to RPM International Inc. Stockholders $ 65,378 $ 82,569 $ 98,603 $ 215,936 $ 95,366 $ 82,569 $ 241,340 $ 210,726 Earnings per share of common stock attributable to RPM International Inc. Stockholders: Basic $ 0.49 $ 0.63 $ 0.75 $ 1.65 $ 0.72 $ 0.63 $ 1.83 $ 1.61 Diluted $ 0.49 $ 0.63 $ 0.74 $ 1.65 $ 0.72 $ 0.63 $ 1.82 $ 1.61 Average shares of common stock outstanding - basic 129,121 128,301 128,956 128,130 129,121 128,301 128,956 128,130 Average shares of common stock outstanding - diluted 130,021 129,005 129,801 128,717 130,021 129,005 129,801 128,717 (a) Refer to the attached page for a reconciliation of as reported figures to adjusted figures presented above. SUPPLEMENTAL SEGMENT INFORMATION IN THOUSANDS AS REPORTED ADJUSTED (a) Three Months Ended Year Ended Three Months Ended Year Ended May 31, May 31, May 31, May 31, May 31, May 31, May 31, May 31, 2013 2012 2013 2012 2013 2012 2013 2012 (Unaudited) (Unaudited) Net Sales: Industrial Segment $ 709,229 $ 724,759 $ 2,635,976 $ 2,535,238 $ 709,229 $ 724,759 $ 2,638,854 $ 2,535,238 Consumer Segment 461,550 377,011 1,442,679 1,242,178 461,550 377,011 1,442,679 1,242,178 Total $ 1,170,779 $ 1,101,770 $ 4,078,655 $ 3,777,416 $ 1,170,779 $ 1,101,770 $ 4,081,533 $ 3,777,416 Income Before Income Taxes (b): Industrial Segment Income Before Income Taxes (b) $ 83,422 $ 89,484 $ 164,578 $ 278,676 $ 88,239 $ 89,484 $ 265,070 $ 273,466 Interest (Expense), Net (c) (2,724) (914) (10,318) (3,770) (2,724) (914) (10,318) (3,770) EBIT (d) $ 86,146 $ 90,398 $ 174,896 $ 282,446 $ 90,963 $ 90,398 $ 275,388 $ 277,236 Consumer Segment Income Before Income Taxes (b) $ 58,542 $ 60,303 $ 190,611 $ 160,099 $ 77,995 $ 60,303 $ 210,064 $ 160,099 Interest (Expense), Net (c) 24 (33) (10) 18 24 (33) (10) 18 EBIT (d) $ 58,518 $ 60,336 $ 190,621 $ 160,081 $ 77,971 $ 60,336 $ 210,074 $ 160,081 Corporate/Other (Expense) Before Income Taxes (b) $ (45,354) $ (27,808) $ (178,298) $ (110,486) $ (26,884) $ (27,808) $ (113,471) $ (110,486) Interest (Expense), Net (c) (26,819) (16,559) (63,340) (64,107) (13,149) (16,559) (49,670) (64,107) EBIT (d) $ (18,535) $ (11,249) $ (114,958) $ (46,379) $ (13,735) $ (11,249) $ (63,801) $ (46,379) Consolidated Income Before Income Taxes (b) $ 96,610 $ 121,979 $ 176,891 $ 328,289 $ 139,350 $ 121,979 $ 361,663 $ 323,079 Interest (Expense), Net (c) (29,519) (17,506) (73,668) (67,859) (15,849) (17,506) (59,998) (67,859) EBIT (d) $ 126,129 $ 139,485 $ 250,559 $ 396,148 $ 155,199 $ 139,485 $ 421,661 $ 390,938 (a) Refer to the attached page for a reconciliation of as reported figures to adjusted figures presented above. (b) The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles in the United States (GAAP), to EBIT. (c) Interest (expense), net includes the combination of interest (expense) and investment income/(expense), net. (d) EBIT is defined as earnings (loss) before interest and taxes. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest expense is essentially related to corporate acquisitions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP, since EBIT omits the impact of interest and taxes in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness and ongoing tax obligations. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets' analysis of our segments' core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. CONSOLIDATED STATEMENTS OF INCOME RECONCILIATION OF "AS REPORTED" TO "ADJUSTED" IN THOUSANDS, EXCEPT PER SHARE DATA Three Months Ended May 31, 2013 AS REPORTED Adjustments ADJUSTED (Unaudited) Net Sales $ 1,170,779 $ - $ 1,170,779 Cost of sales 670,505 (3,867) 666,638 Gross profit 500,274 3,867 (1) 504,141 Selling, general & administrative expenses 353,896 (4,043) (2) 349,853 Estimated loss contingency (3,712) 3,712 (3) - Restructuring expense 20,072 (20,072) (4) - Interest expense 21,042 21,042 Investment expense (income), net 8,477 (13,670) (5) (5,193) Other expense (income), net 3,889 (4,800) (6) (911) Income before income taxes 96,610 42,740 139,350 Provision for income taxes 28,521 10,898 39,419 Net income 68,089 31,842 99,931 Less: Net income attributable to noncontrolling interests 2,711 1,854 4,565 Net income attributable to RPM International Inc. Stockholders $ 65,378 $ 29,988 $ 95,366 Earnings per share attributable to RPM International Inc. Stockholders: Basic $ 0.49 $ 0.23 $ 0.72 Diluted $ 0.49 $ 0.23 $ 0.72 (1) Inventory write downs in conjunction with restructuring at the Rust-Oleum Group (consumer segment); see note (4) below. (2) Bad debt write-off for a past due receivable from Kemrock of $4,043 (industrial segment) (3) Adjustment to the fiscal 2013 third quarter estimated accrual of $68,846 at the Roofing division for an agreement in principle with the General Services Administration (GSA). The final expense of $65,134 is comprised of settlement costs and related legal fees (industrial segment). (4) Restructuring charges related to rationalizing production at the Rust-Oleum Group, both for Testors and Roosendaal, for $15,586 (Consumer Segment), and restructuring charges at BSG for $4,486 (industrial segment). (5) Write-off of Kemrock FCCB convertible bonds issued by Kemrock of $13,670 (non-operating segment). (6) Write-off of remaining investment in Kemrock relating to foreign exchange changes. Year Ended May 31, 2013 Year Ended May 31, 2012 AS REPORTED Adjustments ADJUSTED AS REPORTED Adjustments ADJUSTED (Unaudited) (Unaudited) Net Sales $ 4,078,655 $ 2,878 $ 4,081,533 $ 3,777,416 $ - $ 3,777,416 Cost of sales 2,375,936 (6,408) 2,369,528 2,235,153 2,235,153 Gross profit 1,702,719 9,286 (7), (1) 1,712,005 1,542,263 1,542,263 Selling, general & administrative expenses 1,309,235 (14,631) (8), (2) 1,294,604 1,155,714 1,155,714 Estimated loss contingency 65,134 (65,134) (3) - Restructuring expense 20,072 (20,072) (4) - Interest expense 79,846 - 79,846 72,045 72,045 Investment (income), net (6,178) (13,670) (5) (19,848) (4,186) (4,186) Other expense (income), net 57,719 (61,979) (9), (6) (4,260) (9,599) 5,210 (10) (4,389) Income before income taxes 176,891 184,772 361,663 328,289 (5,210) 323,079 Provision for income taxes 67,040 38,575 105,615 94,526 94,526 Net income 109,851 146,197 256,048 233,763 (5,210) 228,553 Less: Net income attributable to noncontrolling interests 11,248 3,460 14,708 17,827 17,827 Net income attributable to RPM International Inc. Stockholders $ 98,603 $ 142,737 $ 241,340 $ 215,936 $ (5,210) $ 210,726 Earnings per share attributable to RPM International Inc. Stockholders: Basic $ 0.75 $ 1.08 $ 1.83 $ 1.65 $ (0.04) $ 1.61 Diluted $ 0.74 $ 1.08 $ 1.82 $ 1.65 $ (0.04) $ 1.61 (7) Represents an adjustment for revised cost estimates in the Roofing Division in conjunction with unprofitable contracts outside of North America of $5,419 during the first quarter of fiscal 2013 (industrial segment). (8) Adjustment includes $5,588 in Roofing exit costs and $5,000 of bad debt charges relating to a Kemrock receivable during the first quarter of fiscal 2013 (industrial segment). (9) Adjustments include the write-downs of Kemrock investments, including $35,538 at Corporate and $4,735 at RPM's Performance Coatings Group (industrial segment) during the first quarter of fiscal 2013 and an additional $10,819 write-down at Corporate in the second quarter of fiscal 2013. Adjustments also reflect the $6,087 impact of the loss on repositioning of certain industrial segment subsidiaries in Brazil. Included in the loss was the impact of an adjustment for accumulated foreign currency translation losses that were previously recorded as an unrealized foreign exchange loss in the currency translation account as a component of other comprehensive income. (10) Adjustment removes the income recognized by the industrial segment related to RPM's equity method investment in Kemrock recognized during the second quarter of fiscal 2012 of $5,210, which included a $4,631 cumulative catch-up. Adjustment excludes approximately $0.4 million of net earnings recognized by the industrial segment for its share of Kemrock's earnings during the third quarter of fiscal 2012. CONSOLIDATED BALANCE SHEETS IN THOUSANDS May 31, 2013 May 31, 2012 Assets Current Assets Cash and cash equivalents $ 343,554 $ 315,968 Trade accounts receivable 816,421 772,048 Allowance for doubtful accounts (28,904) (26,507) Net trade accounts receivable 787,517 745,541 Inventories 548,680 489,978 Deferred income taxes 36,565 18,752 Prepaid expenses and other current assets 169,956 167,080 Total current assets 1,886,272 1,737,319 Property, Plant and Equipment, at Cost 1,128,123 1,050,965 Allowance for depreciation and amortization (635,760) (632,133) Property, plant and equipment, net 492,363 418,832 Other Assets Goodwill 1,113,831 849,346 Other intangible assets, net of amortization 459,613 345,620 Other 163,447 210,696 Total other assets 1,736,891 1,405,662 Total Assets $ 4,115,526 $ 3,561,813 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 478,185 $ 391,467 Current portion of long-term debt 4,521 2,584 Accrued compensation and benefits 154,844 157,298 Accrued loss reserves 27,591 28,880 Other accrued liabilities 262,889 144,911 Total current liabilities 928,030 725,140 Long-Term Liabilities Long-term debt, less current maturities 1,369,176 1,112,952 Other long-term liabilities 417,160 381,619 Deferred income taxes 46,227 28,119 Total long-term liabilities 1,832,563 1,522,690 Total liabilities 2,760,593 2,247,830 Stockholders' Equity Preferred stock; none issued Common stock (outstanding 132,596; 131,555) 1,326 1,316 Paid-in capital 763,505 742,895 Treasury stock, at cost (72,494) (69,480) Accumulated other comprehensive (loss) (159,253) (177,893) Retained earnings 667,774 686,818 Total RPM International Inc. stockholders' equity 1,200,858 1,183,656 Noncontrolling interest 154,075 130,327 Total equity 1,354,933 1,313,983 Total Liabilities and Stockholders' Equity $ 4,115,526 $ 3,561,813 CONSOLIDATED STATEMENTS OF CASH FLOWS IN THOUSANDS Year Ended May 31, May 31, 2013 2012 Cash Flows From Operating Activities: Net income $ 109,851 $ 233,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 55,715 51,939 Amortization 28,029 21,759 Impairment loss on investment in Kemrock 51,092 Estimated loss contingency 65,134 Asset impairment charge 7,416 Other than temporary impairments on marketable securities 14,279 1,604 Deferred income taxes (40,991) (7,088) Stock-based compensation expense 17,145 13,904 Other (2,190) (6,590) Changes in assets and liabilities, net of effect from purchases and sales of businesses: (Increase) decrease in receivables (7,639) 980 (Increase) decrease in inventory (40,039) 7,115 Decrease in prepaid expenses and other current and long-term assets 7,045 14,948 Increase in accounts payable 72,070 13,635 (Decrease) increase in accrued compensation and benefits (7,402) 3,016 (Decrease) in accrued loss reserves (1,873) (5,712) Increase in other accrued liabilities 28,474 47,508 Other 12,338 (95,909) Cash From Operating Activities 368,454 294,872 Cash Flows From Investing Activities: Capital expenditures (91,367) (71,615) Acquisition of businesses, net of cash acquired (397,425) (163,414) Purchase of marketable securities (106,301) (69,824) Proceeds from sales of marketable securities 103,501 51,415 Proceeds from sales of assets or businesses 128 2,171 Investments in unconsolidated affiliates (31,842) Other 14,060 15,787 Cash (Used For) Investing Activities (477,404) (267,322) Cash Flows From Financing Activities: Additions to long-term and short-term debt 300,902 27,894 Reductions of long-term and short-term debt (49,376) (36,128) Cash dividends (117,647) (112,153) Repurchase of stock (3,013) (6,985) Other 7,284 9,931 Cash Provided By (Used For) Financing Activities 138,150 (117,441) Effect of Exchange Rate Changes on Cash and Cash Equivalents (1,614) (29,152) Net Change in Cash and Cash Equivalents 27,586 (119,043) Cash and Cash Equivalents at Beginning of Period 315,968 435,011 Cash and Cash Equivalents at End of Period $ 343,554 $ 315,968
- Net income for the quarter up 16% over prior year, on an as-adjusted basis
- Fiscal 2013 sales increase 8% over prior year
- Fiscal 2013 net income up 15% over prior year, on an as-adjusted basis
- Free cash flow improves 43%
RPM International Inc. (NYSE: RPM) today reported financial results for its fiscal 2013 fourth quarter and year ended May 31, 2013, which reflected strong operating performance offset by non-operating adjustments for both the quarter and full year.
Fourth-Quarter Results
On an as-reported basis, fourth-quarter net sales increased 6.3% to $1.17 billion from $1.10 billion. Consolidated earnings before interest and taxes (EBIT) declined 9.6% to $126.1 million, from $139.5 million a year ago. As-reported net income for the fourth quarter was $65.4 million, down 20.8% from the $82.6 million reported in the fourth quarter of fiscal 2012. As-reported diluted earnings per share were $0.49, off 22.2% from $0.63 a year ago.
One-time pre-tax adjustments totaling $42.7 million during the quarter included a $22.5 million write down of RPM's remaining financial investments in Kemrock Industries and Exports Limited in India, which continues to struggle in the face of a difficult Indian economy and significant debt. As of the end of fiscal 2013, RPM has no remaining investment on its books in Kemrock. The second adjustment related to an agreement in principle between RPM's roofing division and the U.S. General Services Administration (GSA), which resulted in a $3.7 million reversal of the third-quarter estimated accrual of $68.8 million and a related $4.5 million restructuring charge. The GSA investigation related to roofing contracts with the GSA, principally between 2002 and 2008. The last adjustment of $19.4 million was for restructuring related write-offs, resulting from two plant closings within the Rust-Oleum Group to better align production capacity with demand and eliminate overhead in its hobby and European businesses.
On an as-adjusted basis, net sales grew 6.3% to $1.17 billion from $1.10 billion in the fiscal 2012 fourth quarter. EBIT grew 11.3%, to $155.2 million from $139.5 million a year ago. As-adjusted net income was up 15.5% to $95.4 million, or $0.72 per diluted share, from $82.6 million, or $0.63 per diluted share, in the fiscal 2012 final period.
"Our overall operating results for both the quarter and year were strong, especially given the headwinds in Europe and previously reported difficulties in our roofing division," stated Frank C. Sullivan, chairman and chief executive officer. "Net sales, net income and diluted earnings per share experienced significant growth, on an as-adjusted basis, as our consumer segment continued its robust performance and many industrial segment businesses posted gains."
Fourth-Quarter Segment Sales and Earnings
On an as-reported basis, fiscal 2013 fourth-quarter industrial segment sales declined 2.1% to $709.2 million from $724.8 million a year ago. Organic sales declined 5.0% and foreign exchange translation was unfavorable 1.0%, while acquisition growth added 3.9%. As-reported industrial segment EBIT declined 4.7% to $86.1 million from $90.4 million in the prior year. The as-adjusted industrial segment EBIT for the fourth quarter of fiscal 2013 was $91.0 million, up 0.6% from the $90.4 million reported a year ago.
"Most of our North American industrial businesses, particularly those serving the commercial construction markets, performed well in the quarter. We experienced good growth in our flooring, waterproofing, admixture and restoration product lines. Given the deep recession in most of Europe, we are pleased that our industrial units operating there experienced only a modest sales decline. Our North American roofing business struggled, as a result of exiting unprofitable projects during the year, combined with a steep drop in demand from the public sector due to spending constraints attributable to cutbacks by federal, state and local governments," stated Sullivan.
As-reported net sales for RPM's consumer segment grew 22.4% to $461.6 million from $377.0 million in the fiscal 2012 fourth quarter. Organic sales were up 9.6% and foreign exchange translation was unfavorable 0.5%, while acquisition growth added 13.3%. As-reported consumer segment EBIT decreased 3.0% in fiscal 2013 from $60.3 million to $58.5 million, which reflected the impact of facility closings within the Rust-Oleum Group, including a Testors factory in Rockford, Illinois and a factory in Roosendaal, The Netherlands. Both of these actions were taken to eliminate overhead in Rust-Oleum's hobby and European businesses. On an as-adjusted basis, consumer segment EBIT improved 29.2% to $78.0 million from $60.3 million in the fourth quarter of fiscal 2012.
"Our traditional consumer product lines are benefiting from continued gains in market share, along with the ongoing recovery in the North American housing market. Further, our newer consumer products, many of which are sold at price points beyond our traditional lines for both our retail partners and us, continue to enjoy brisk retail take away. The consumer segment also benefited from strong performance by three recently acquired businesses: Kirker and Synta in fiscal 2013 and Hi-Chem towards the end of fiscal 2012," stated Sullivan.
Cash Flow and Financial Position
For fiscal 2013, cash from operations increased 25.0% to $368.5 million, compared to $294.9 million in fiscal 2012. Capital expenditures during the year were $91.4 million, while depreciation was
$55.7 million. Total debt at the end of fiscal 2013 was $1.37 billion, compared to $1.12 billion at the end of fiscal 2012. RPM's net (of cash) debt-to-total capitalization ratio was 46.2%, compared to 40.3% at May 31, 2012. Free cash flow increased 43.5% in fiscal 2013 to $159.4 million, from $111.1 million a year ago.
"We are comfortable with RPM's capital position. Free cash flow was very strong and will continue to help fund our acquisition program, internal growth initiatives and a growing cash dividend. In addition, we enhanced our capital structure during the second quarter of fiscal 2013 when we sold $300 million aggregate principal amount of 3.450% Notes due November 15, 2022, thereby lowering the effective average interest rate on our long-term debt from 6.1% to 5.0%. Proceeds from this offering were used to repay a portion of outstanding borrowings under RPM's revolving credit facility. At May 31, 2013, RPM had $1.1 billion in liquidity, including cash and long-term committed available credit, which we believe easily covers financing requirements for any of the acquisition candidates that are on our horizon," Sullivan stated.
Fiscal 2013 Consolidated Sales and Earnings
On an as-reported basis, fiscal 2013 consolidated net sales increased 8.0% to $4.08 billion from $3.78 billion in fiscal 2012. Consolidated EBIT decreased 36.8% to $250.6 million from $396.1 million in fiscal 2012. Net income declined 54.3% to $98.6 million from $215.9 million in fiscal 2012. Diluted earnings per share fell 55.2% to $0.74 from $1.65 a year ago.
Fiscal 2013 Adjustments
Pre-tax adjustments during the 2013 fiscal year included the following:
On an as-adjusted basis, RPM's EBIT grew 7.9% to $421.7 million from $390.9 million in fiscal 2012. As-adjusted net income increased 14.5% to $241.3 million in fiscal 2013 from $210.7 million a year ago, and as-adjusted earnings per share increased 13.0% to $1.82 per share from $1.61 per share in fiscal 2012.
Fiscal 2013 Segment Sales and Earnings
On an as-reported basis, sales for RPM's industrial segment increased 4.0% to $2.64 billion from $2.54 billion in fiscal 2012. Organic sales decreased 0.2% and foreign exchange translation was unfavorable 1.5%, with acquisition growth contributing 5.8%. As-reported industrial segment EBIT declined 38.1% to $174.9 million from $282.4 million in fiscal 2012. As-adjusted industrial segment EBIT decreased 0.7% to $275.4 million from $277.2 million in fiscal 2012.
As-reported consumer segment sales for fiscal 2013 increased 16.1% to $1.44 billion from $1.24 billion reported last year. Organic sales increased by 6.6% and acquisition growth added 10.0%, which were partially offset by unfavorable foreign currency translation of 0.5%. As-reported consumer segment EBIT increased 19.1%, to $190.6 million from $160.1 million a year ago. As-adjusted consumer segment EBIT grew 31.2% to $210.1 million from $160.1 million in fiscal 2012.
Business Outlook
"We anticipate 5% to 7% growth in consolidated net sales, with the consumer segment trending towards the higher end of the range and the industrial segment trending towards the lower end. Net income is expected to increase 9% to 13%, resulting in diluted earnings per share in the range of $1.98 to $2.05 for fiscal 2014. This expectation is predicated on continued robust growth within our consumer segment, as a result of continued recovery in the North American housing market, market share gains and market acceptance of new products at higher price points than our traditional consumer product lines. In the industrial segment, we expect modest overall growth, with stronger performances by our businesses serving the North American commercial construction market. We anticipate that the roofing division and our European businesses will continue to experience deterioration through the first half of fiscal 2014, with improving performance during the second half, resulting in fairly flat year-over-year performance for these businesses," Sullivan stated.
Webcast and Conference Call Information
Management will host a conference call to further discuss these results beginning at 10:00 a.m. EDT today. The call can be accessed by dialing 866-270-6057 or 617-213-8891 for international callers. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode.
For those unable to listen to the live call, a replay will be available from approximately 1 p.m. EDT today until 11:59 p.m. EDT on July 29, 2013. The replay can be accessed by dialing 888-286-8010 or 617-801-6888 for international callers. The access code is 49666464. The call also will be available both live and for replay, and as a written transcript, via the RPM web site at www.rpminc.com.
About RPM
RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Universal Sealants and Euco. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors. Additional details can be found at www.RPMinc.com and by following RPM on Twitter at www.twitter.com/RPMintl.
For more information, contact Barry M. Slifstein, vice president – investor relations and planning, at 330-273-5090 or bslifstein@rpminc.com.
This press release 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 actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) risks related to the adequacy of our contingent liability reserves; (j) risks and uncertainties associated with the SPHC bankruptcy proceedings; and (k) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2012, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
SOURCE RPM International Inc.
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