SEC Document

RPM INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

NOTE 12 — EARNINGS PER SHARE

The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the two-class method for the three and nine month periods ended February 28, 2018 and 2017.  For the three months ended February 28, 2018 and 2017, and the nine months ended February 28, 2017, basic weighted-average shares outstanding and basic net income available to common shareholders and basic weighted average common shares were used in calculating diluted earnings per share under the two-class method, as that method resulted in the most-dilutive earnings per share.  

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

February 28,

 

 

February 28,

 

 

February 28,

 

 

February 28,

 

(In thousands, except per share amounts)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Numerator for earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to RPM International Inc.

   stockholders

 

$

40,227

 

 

$

11,928

 

 

$

252,106

 

 

$

53,771

 

Less:  Allocation of earnings and dividends to

   participating securities

 

 

(530

)

 

 

(232

)

 

 

(3,373

)

 

 

(847

)

Net income available to common shareholders -

   basic

 

 

39,697

 

 

 

11,696

 

 

 

248,733

 

 

 

52,924

 

Add:  Undistributed earnings reallocated to unvested

   shareholders

 

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

Add:  Income effect of contingently issuable shares

 

 

 

 

 

 

 

 

 

 

4,351

 

 

 

 

 

Net income available to common shareholders -

   diluted

 

$

39,697

 

 

$

11,696

 

 

$

253,091

 

 

$

52,924

 

Denominator for basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 

131,178

 

 

 

130,677

 

 

 

131,195

 

 

 

130,657

 

Average diluted options

 

 

 

 

 

 

 

 

 

 

540

 

 

 

 

 

Additional shares issuable assuming conversion of

   convertible securities (1)

 

 

 

 

 

 

 

 

 

 

3,922

 

 

 

 

 

Total shares for diluted earnings per share (2)

 

 

131,178

 

 

 

130,677

 

 

 

135,657

 

 

 

130,657

 

Earnings Per Share of Common Stock Attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RPM International Inc. Stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share of Common Stock

 

$

0.30

 

 

$

0.09

 

 

$

1.90

 

 

$

0.41

 

Diluted Earnings Per Share of Common Stock

 

$

0.30

 

 

$

0.09

 

 

$

1.87

 

 

$

0.41

 

 

(1)

Represents the number of shares that would be issued if our contingently convertible notes were converted.  We include these shares in the calculation of diluted EPS as the conversion of the notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock.  

(2)

Restricted shares totaling 48,212 for the three and nine months ended February 28, 2018 were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were no restricted shares identified as being anti-dilutive for the three and nine months ended February 28, 2017.  In addition, stock appreciation rights (SARs) totaling 600,000 for the three and nine months ended February 28, 2018 and 2017 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive.

 

 

 

16



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