RPM Reports Third-Quarter and Nine-Month Results

Apr 16, 2001, 01:00 ET from RPM, Inc.

    MEDINA, Ohio, April 16 /PRNewswire/ -- RPM, Inc. (NYSE:   RPM) today
 reported a net loss of $7.0 million, or $0.07 per diluted share, for its third
 fiscal quarter ended February 28, 2001, compared to net income of
 $3.7 million, or $0.04 per diluted share, earned a year ago. Sales decreased
 to $404 million from $411 million in the year-ago period.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010126/RPMLOGO )
     For the nine months, sales increased 3 percent, to $1.455 billion from
 $1.407 billion a year ago.  Net income of $38.7 million, or $0.38 per diluted
 share, compared with $31.4 million, or $0.29 per diluted share reported for
 the first nine months of the 2000 fiscal year.  The prior year results
 included a pre-tax restructuring charge of $45 million.
     RPM indicated its third-quarter results were in line with expectations.
 The third quarter began with extremely cold temperatures, extending far south,
 which impacted overall sales.  The generally soft retail environment and high
 costs involved with the restructuring of our Wood Finishes Group further
 contributed to the loss in a generally weak quarter (December-February).  The
 third quarter and nine-month results also reflected the loss of sales and
 income from business units sold during the previous fiscal year, along with
 higher interest costs and unfavorable foreign exchange differences.
     RPM indicated that despite economic slowdown, it expects to report strong
 improvement in its fourth quarter ending May 31, 2001 compared to last year's
 fourth quarter.  The fiscal-year results will be in the range of the consensus
 of earnings estimates, although the weak economy has caused many project
 delays, and overall fiscal year earnings will likely fall below the $0.73 per
 diluted share reported last year pre-restructuring.
     RPM announced that after the quarter end it divested the commercial unit
 of DAP.  The proceeds were used to reduce long-term debt.  RPM plans to divest
 additional non-core business, with the proceeds to be used to further reduce
 long-term debt.
     At its meeting on April 2, 2001, RPM's Board of Directors declared a
 regular quarterly dividend of $0.125 per share, payable April 30, 2001, to
 shareholders of record on April 13, 2001.
     RPM, Inc. is a world leader in specialty coatings serving both industrial
 and consumer markets.  RPM's industrial products include roofing systems,
 sealants, corrosion control coatings, floor coatings and specialty chemicals.
 Its consumer products are used by professionals and do-it-yourselfers for
 home, automotive and boat maintenance and by hobbyists.  Leading industrial
 brands include Stonhard, Tremco, Carboline, Day-Glo, Euco and Dryvit, while
 leading consumer brands include Rust-Oleum, Zinsser, DAP, Flecto and Bondo.
     For more information, contact Glenn R. Hasman, RPM, Inc. vice president-
 finance and communications, at 330-273-8820.
     This press release contains "forward-looking" statements based on
 management's expectations and beliefs concerning future events.  Forward-
 looking statements are necessarily subject to risks, uncertainties and other
 factors, many of which are outside the control of the Company that could cause
 actual results to differ materially from such statements. These uncertainties
 and other factors include risks related to the Company's restructuring and
 consolidation program and its ability to realize the benefits from its
 restructuring and consolidation efforts; changes in the results of operations
 due to economic conditions or unforeseen factors; sales of non-core product
 lines or businesses; overall economic conditions within and among the
 Company's domestic and international coatings markets; unusual weather
 conditions that might adversely affect sales; and such other risks and
 uncertainties described from time to time in the Company's reports filed with
 the Securities and Exchange Commission.  The foregoing list is not exhaustive,
 and the Company disclaims any obligation to subsequently revise any forward-
 looking statements to reflect events or circumstances after the date of such
 statements.
 
                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                    (Unaudited)
                        In thousands, except per share data
 
                              Nine Months Ended          Three Months Ended
                          February 28, February 29,   February 28, February 29,
                              2001        2000           2001         2000
 
     Net Sales            $1,454,559  $1,407,357        $403,665     $411,398
     Cost of Sales           824,336     792,835         237,863      237,115
 
     Gross Profit           $630,223    $614,522        $165,802     $174,283
     Selling, General &
      Administrative
        Expenses             516,647     480,412         159,668      155,508
     Restructuring Charge          -      45,000               -            -
 
     Interest Expense, Net    51,156      35,958          17,453       12,451
 
     Income Before
       Income Taxes          $62,420     $53,152        ($11,319)      $6,324
     Provision for
       Income Taxes           23,720      21,793          (4,301)       2,593
 
     Net Income              $38,700     $31,359         ($7,018)      $3,731
 
     Basic Earnings
       per Share               $0.38       $0.29          ($0.07)       $0.04
 
     Diluted Earnings
       per Share               $0.38       $0.29          ($0.07)       $0.04
 
     Average Shares
       Outstanding -
         Basic               102,199     108,068         102,209      106,466
 
     Average Shares
       Outstanding -
         Diluted             102,208     108,219         102,216      106,510
 
 
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                    (Unaudited)
                        In thousands, except per share data
 
                                                 February 28,      February 29,
                                                     2001              2000
     Assets
 
           Current Assets                          $766,455          $677,754
           Property, Plant & Equipment
            (net)                                   374,057           391,763
           Other Assets                             927,226           951,000
 
              Total Assets                       $2,067,738        $2,020,517
 
     Liabilities and Shareholders' Equity
 
           Current Liabilities                     $358,924          $299,592
           Long-Term Debt                           969,846           877,411
           Other Liabilities                        107,149           162,806
 
              Total Liabilities                  $1,435,919        $1,339,809
           Shareholders' Equity                     631,819           680,708
 
              Total Liabilities  &
                Shareholders' Equity             $2,067,738        $2,020,517
 
 
     Current Ratio                                    2.1:1             2.3:1
 
     Shareholders' Equity per Share                   $6.18             $6.30
 
     Working Capital                               $407,531          $378,162
 
 

SOURCE RPM, Inc.
    MEDINA, Ohio, April 16 /PRNewswire/ -- RPM, Inc. (NYSE:   RPM) today
 reported a net loss of $7.0 million, or $0.07 per diluted share, for its third
 fiscal quarter ended February 28, 2001, compared to net income of
 $3.7 million, or $0.04 per diluted share, earned a year ago. Sales decreased
 to $404 million from $411 million in the year-ago period.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010126/RPMLOGO )
     For the nine months, sales increased 3 percent, to $1.455 billion from
 $1.407 billion a year ago.  Net income of $38.7 million, or $0.38 per diluted
 share, compared with $31.4 million, or $0.29 per diluted share reported for
 the first nine months of the 2000 fiscal year.  The prior year results
 included a pre-tax restructuring charge of $45 million.
     RPM indicated its third-quarter results were in line with expectations.
 The third quarter began with extremely cold temperatures, extending far south,
 which impacted overall sales.  The generally soft retail environment and high
 costs involved with the restructuring of our Wood Finishes Group further
 contributed to the loss in a generally weak quarter (December-February).  The
 third quarter and nine-month results also reflected the loss of sales and
 income from business units sold during the previous fiscal year, along with
 higher interest costs and unfavorable foreign exchange differences.
     RPM indicated that despite economic slowdown, it expects to report strong
 improvement in its fourth quarter ending May 31, 2001 compared to last year's
 fourth quarter.  The fiscal-year results will be in the range of the consensus
 of earnings estimates, although the weak economy has caused many project
 delays, and overall fiscal year earnings will likely fall below the $0.73 per
 diluted share reported last year pre-restructuring.
     RPM announced that after the quarter end it divested the commercial unit
 of DAP.  The proceeds were used to reduce long-term debt.  RPM plans to divest
 additional non-core business, with the proceeds to be used to further reduce
 long-term debt.
     At its meeting on April 2, 2001, RPM's Board of Directors declared a
 regular quarterly dividend of $0.125 per share, payable April 30, 2001, to
 shareholders of record on April 13, 2001.
     RPM, Inc. is a world leader in specialty coatings serving both industrial
 and consumer markets.  RPM's industrial products include roofing systems,
 sealants, corrosion control coatings, floor coatings and specialty chemicals.
 Its consumer products are used by professionals and do-it-yourselfers for
 home, automotive and boat maintenance and by hobbyists.  Leading industrial
 brands include Stonhard, Tremco, Carboline, Day-Glo, Euco and Dryvit, while
 leading consumer brands include Rust-Oleum, Zinsser, DAP, Flecto and Bondo.
     For more information, contact Glenn R. Hasman, RPM, Inc. vice president-
 finance and communications, at 330-273-8820.
     This press release contains "forward-looking" statements based on
 management's expectations and beliefs concerning future events.  Forward-
 looking statements are necessarily subject to risks, uncertainties and other
 factors, many of which are outside the control of the Company that could cause
 actual results to differ materially from such statements. These uncertainties
 and other factors include risks related to the Company's restructuring and
 consolidation program and its ability to realize the benefits from its
 restructuring and consolidation efforts; changes in the results of operations
 due to economic conditions or unforeseen factors; sales of non-core product
 lines or businesses; overall economic conditions within and among the
 Company's domestic and international coatings markets; unusual weather
 conditions that might adversely affect sales; and such other risks and
 uncertainties described from time to time in the Company's reports filed with
 the Securities and Exchange Commission.  The foregoing list is not exhaustive,
 and the Company disclaims any obligation to subsequently revise any forward-
 looking statements to reflect events or circumstances after the date of such
 statements.
 
                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                    (Unaudited)
                        In thousands, except per share data
 
                              Nine Months Ended          Three Months Ended
                          February 28, February 29,   February 28, February 29,
                              2001        2000           2001         2000
 
     Net Sales            $1,454,559  $1,407,357        $403,665     $411,398
     Cost of Sales           824,336     792,835         237,863      237,115
 
     Gross Profit           $630,223    $614,522        $165,802     $174,283
     Selling, General &
      Administrative
        Expenses             516,647     480,412         159,668      155,508
     Restructuring Charge          -      45,000               -            -
 
     Interest Expense, Net    51,156      35,958          17,453       12,451
 
     Income Before
       Income Taxes          $62,420     $53,152        ($11,319)      $6,324
     Provision for
       Income Taxes           23,720      21,793          (4,301)       2,593
 
     Net Income              $38,700     $31,359         ($7,018)      $3,731
 
     Basic Earnings
       per Share               $0.38       $0.29          ($0.07)       $0.04
 
     Diluted Earnings
       per Share               $0.38       $0.29          ($0.07)       $0.04
 
     Average Shares
       Outstanding -
         Basic               102,199     108,068         102,209      106,466
 
     Average Shares
       Outstanding -
         Diluted             102,208     108,219         102,216      106,510
 
 
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                    (Unaudited)
                        In thousands, except per share data
 
                                                 February 28,      February 29,
                                                     2001              2000
     Assets
 
           Current Assets                          $766,455          $677,754
           Property, Plant & Equipment
            (net)                                   374,057           391,763
           Other Assets                             927,226           951,000
 
              Total Assets                       $2,067,738        $2,020,517
 
     Liabilities and Shareholders' Equity
 
           Current Liabilities                     $358,924          $299,592
           Long-Term Debt                           969,846           877,411
           Other Liabilities                        107,149           162,806
 
              Total Liabilities                  $1,435,919        $1,339,809
           Shareholders' Equity                     631,819           680,708
 
              Total Liabilities  &
                Shareholders' Equity             $2,067,738        $2,020,517
 
 
     Current Ratio                                    2.1:1             2.3:1
 
     Shareholders' Equity per Share                   $6.18             $6.30
 
     Working Capital                               $407,531          $378,162
 
 SOURCE  RPM, Inc.

RELATED LINKS

http://www.rpminc.com