SEC Document


SUPPLEMENTAL SEGMENT INFORMATION

IN THOUSANDS

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     November 30,     November 30,  
     2017     2016     2017     2016  

Net Sales:

        

Industrial Segment

   $ 702,905     $ 633,429     $ 1,432,673     $ 1,309,269  

Consumer Segment

     415,431       373,774       842,575       773,661  

Specialty Segment

     197,080       183,567       385,562       359,903  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,315,416     $ 1,190,770     $ 2,660,810     $ 2,442,833  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes:

        

Industrial Segment

        

Income Before Income Taxes (a)

   $ 67,696     $ 50,291     $ 156,598     $ 139,557  

Interest (Expense), Net (b)

     (2,513     (1,906     (5,067     (3,743
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (c)

     70,209       52,197       161,665       143,300  

Charge to exit Flowcrete Middle East (d)

     —         12,275       —         12,275  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT

   $ 70,209     $ 64,472     $ 161,665     $ 155,575  
  

 

 

   

 

 

   

 

 

   

 

 

 

Consumer Segment

        

Income (Loss) Before Income Taxes (a)

   $ 45,085     $ (140,575   $ 117,453     $ (70,487

Interest (Expense) Income, Net (b)

     (143     (19     (339     (22
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (c)

     45,228       (140,556     117,792       (70,465

Kirker impairment (e)

     —         188,298       —         188,298  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT

   $ 45,228     $ 47,742     $ 117,792     $ 117,833  
  

 

 

   

 

 

   

 

 

   

 

 

 

Specialty Segment

        

Income Before Income Taxes (a)

   $ 34,439     $ 31,160     $ 67,606     $ 61,664  

Interest Income, Net (b)

     78       137       198       290  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (c)

   $ 34,361     $ 31,023     $ 67,408     $ 61,374  
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate/Other

        

(Expense) Before Income Taxes (a)

   $ (38,039   $ (47,733   $ (77,192   $ (89,116

Interest (Expense), Net (b)

     (20,079     (18,701     (39,769     (35,954
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (c)

   $ (17,960   $ (29,032   $ (37,423   $ (53,162
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated

        

Income (Loss) Before Income Taxes (a)

   $ 109,181     $ (106,857   $ 264,465     $ 41,618  

Interest (Expense), Net (b)

     (22,657     (20,489     (44,977     (39,429
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (c)

     131,838       (86,368     309,442       81,047  

Charge to exit Flowcrete Middle East (d)

     —         12,275       —         12,275  

Kirker impairment (e)

     —         188,298       —         188,298  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT

   $ 131,838     $ 114,205     $ 309,442     $ 281,620  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 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.
(b) Interest income (expense), net includes the combination of interest income (expense) and investment income (expense), net.
(c) 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 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, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. 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.
(d) Charges related to Flowcrete decision to exit the Middle East.
(e) Reflects the impact of goodwill and other intangible asset impairment charge of $188.3 million related to our Kirker reporting unit.

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