RPM International Inc. Files 10-Q for Period Ending November 30, 2023

TL;DR

<b>RPM International Inc. filed its Q2 2024 10-Q report on January 4, 2024, detailing financial performance for the period ending November 30, 2023.</b>

AI Summary

RPM INTERNATIONAL INC/DE/ (RPM) filed a Quarterly Report (10-Q) with the SEC on January 4, 2024. RPM International Inc. filed a 10-Q report for the period ending November 30, 2023. The filing covers the second quarter of the fiscal year. The company is incorporated in Delaware (DE). The SIC code for the company is 2851 (Paints, Varnishes, Lacquers, Enamels & Allied Products). The filing was made on January 4, 2024.

Why It Matters

For investors and stakeholders tracking RPM INTERNATIONAL INC/DE/, this filing contains several important signals. This 10-Q filing provides investors with updated financial statements and management's discussion of results for the second quarter of fiscal year 2024. The report includes segment-specific data, offering insights into the performance of RPM's various business groups like Specialty Products, Consumer, Performance Coatings, and Construction Products.

Risk Assessment

Risk Level: medium — RPM INTERNATIONAL INC/DE/ shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the absence of specific financial performance data in the provided text prevents a more precise risk assessment.

Analyst Insight

Review the detailed financial statements and segment performance within the full 10-Q filing to assess RPM International's current financial health and operational trends.

Key Numbers

• 20231130 — Period End Date (Conformed period of report)
• 20240104 — Filing Date (Filed as of date)
• 0000110621 — Central Index Key (Company identifier)
• 2851 — SIC Code (Industry classification)

Key Players & Entities

• RPM INTERNATIONAL INC/DE/ (company) — Filer name
• 20231130 (date) — Conformed period of report
• 20240104 (date) — Filed as of date
• 0000110621 (company) — Central Index Key
• 2851 (industry) — Standard Industrial Classification
• DE (jurisdiction) — State of Incorporation
• MEDINA (location) — Business Address City
• OH (location) — Business Address State

Forward-Looking Statements

• RPM International Inc. will continue to report on the progress and impact of its 'Margin Achievement Plan 2025' in future filings. (RPM INTERNATIONAL INC/DE/) — high confidence, target: 2024-05-31

FAQ

Risk Factors

• Restructuring Charges [medium — regulatory]: The filing references restructuring charges, indicating potential operational adjustments or reorganizations.
• Selling, General and Administrative Expense [medium — operational]: The filing includes Selling, General and Administrative Expenses, which are key operational costs.

Key Dates

• 2024-01-04: 10-Q Filing — Report for the period ending November 30, 2023

Glossary

RestructuringCharges

Costs associated with significant reorganizations or closures of business units. (Indicates potential strategic shifts or cost-saving measures impacting profitability.)

SellingGeneralAndAdministrativeExpense

Expenses incurred in the normal course of business, not directly related to production. (Key indicator of operational efficiency and cost management.)

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 RPM New York Stock Exchange Indic

Filing Documents

• rpm-20231130.htm (10-Q) — 3040KB
• rpm-ex31_1.htm (EX-31.1) — 10KB
• rpm-ex31_2.htm (EX-31.2) — 10KB
• rpm-ex32_1.htm (EX-32.1) — 4KB
• rpm-ex32_2.htm (EX-32.2) — 4KB
• 0000950170-24-001796.txt (&nbsp;) — 12871KB
• rpm-20231130_lab.xml (EX-101.LAB) — 506KB
• rpm-20231130_def.xml (EX-101.DEF) — 198KB
• rpm-20231130_pre.xml (EX-101.PRE) — 371KB
• rpm-20231130.xsd (EX-101.SCH) — 58KB
• rpm-20231130_cal.xml (EX-101.CAL) — 63KB
• rpm-20231130_htm.xml (XML) — 3353KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements: 3 Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Stockholders&#x2019; Equity 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2. Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sale of Equity Securities and Use of Proceeds 34 Item 6. Exhibits 35

Signatures

Signatures 36 * As used herein, the terms &#x201c;RPM&#x201d; and the &#x201c;Company&#x201d; refer to RPM International Inc. and its subsidiaries, unless the context indicates otherwise. 2

&#x2013; FINANC IAL INFORMATION

PART I. &#x2013; FINANC IAL INFORMATION

FINANCI AL STATEMENTS

ITEM 1. FINANCI AL STATEMENTS RPM INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED B ALANCE SHEETS (Unaudited) (In thousands, except per share amounts) November 30, 2023 May 31, 2023 Assets Current Assets Cash and cash equivalents $ 262,746 $ 215,787 Trade accounts receivable (less allowances of $ 57,448 and $ 49,482 , respectively) 1,233,340 1,503,040 Inventories 1,102,815 1,135,496 Prepaid expenses and other current assets 320,106 329,845 Total current assets 2,919,007 3,184,168 Property, Plant and Equipment, at Cost 2,407,579 2,332,916 Allowance for depreciation ( 1,154,468 ) ( 1,093,440 ) Property, plant and equipment, net 1,253,111 1,239,476 Other Assets Goodwill 1,311,653 1,293,588 Other intangible assets, net of amortization 533,659 554,991 Operating lease right-of-use assets 324,272 329,582 Deferred income taxes 25,201 15,470 Other 170,474 164,729 Total other assets 2,365,259 2,358,360 Total Assets $ 6,537,377 $ 6,782,004 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 650,771 $ 680,938 Current portion of long-term debt 5,548 178,588 Accrued compensation and benefits 204,921 257,328 Accrued losses 34,881 26,470 Other accrued liabilities 358,234 347,477 Total current liabilities 1,254,355 1,490,801 Long-Term Liabilities Long-term debt, less current maturities 2,246,834 2,505,221 Operating lease liabilities 278,028 285,524 Other long-term liabilities 298,257 267,111 Deferred income taxes 97,349 90,347 Total long-term liabilities 2,920,468 3,148,203 Contingencies and Accrued Losses (Note 13) Stockholders' Equity Preferred stock, par value $ 0.01 ; authorized 50,000 shares; no ne issued &#x2014; &#x2014; Common stock, par value $ 0.01 ; authorized 300,000 shares; issued 145,708 and outstanding 128,872 as of November 30, 2023; is

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 &#x2014; CONSOLIDATION, NONCONTROLLING INTERESTS AND BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (&#x201c;GAAP&#x201d;) for interim financial information and the instructions to Form 10-Q. In our opinion, all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation have been included for the three- and six-month periods ended November 30, 2023, and November 30, 2022. For further information, refer to the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended May 31, 2023. Our financial statements include all of our majority-owned subsidiaries. We account for our investments in less-than-majority-owned joint ventures, for which we have the ability to exercise significant influence, under the equity method. Effects of transactions between related companies are eliminated in consolidation. Noncontrolling interests are presented in our Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our Consolidated Financial Statements. Additionally, our Consolidated Financial Statements include 100 % of a controlled subsidiary&#x2019;s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control. Our business is dependent on external weather factors. Historically, we have experienced strong sales and net income in our first, second and fourth fiscal quarters comprising the three-m

View Full Filing

View this 10-Q filing on SEC EDGAR