RPM Reports Increased Sales in Second Quarter of Fiscal 2021
MEDINA, OH – Paint and coatings manufacturer RPM International Inc. announced sales, earnings and cash from operations for its fiscal 2021 second quarter ended Nov. 30, 2020. The company reported fiscal 2021 second-quarter net sales were a record $1.49 billion, up 6.0% over the $1.40 billion reported a year ago. Net income was up 65.7% to $127.7 million versus $77.0 million in the year-ago period. Income before income taxes (IBT) was $167.0 million, up 64.1% compared to $101.8 million reported in the prior year’s second quarter. RPM’s consolidated earnings before interest and taxes (EBIT) were up 49.8% to $178.7 million compared to $119.3 million reported in the year-ago period.
The fiscal 2021 second quarter included $18.6 million in charges for restructuring related to the company’s MAP to Growth operating improvement plan and other charges, as well as a $2.0 million charge for the resolution of a legacy investigation by the Securities and Exchange Commission (SEC). The same period of fiscal 2020 included charges of $34.4 million for restructuring and acquisition-related costs. Excluding these charges, RPM’s adjusted EBIT was up 29.7% to $199.3 million compared to $153.7 million during the year-ago period. The company has excluded the impact of gains and losses from marketable securities from adjusted EPS, explaining that their inherent volatility is outside of management’s control and cannot be predicted with any level of certainty. These investments resulted in a net pre-tax gain of $7.5 million for the second quarter of fiscal 2021 and $5.9 million during the same quarter last year. Excluding the restructuring and other charges, as well as investment gains and losses, adjusted diluted EPS increased 39.5% to $1.06 compared to $0.76 in fiscal 2020.