424B5
RPM INTERNATIONAL INC/DE/ filed this Form 424B5 on 12/06/2017
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  to service debt, fund capital expenditures and otherwise meet cash needs, respectively. The following table contains a reconciliation of EBIT and EBITDA to the respective GAAP measures:

 

     Fiscal Years Ended May 31,     Three Months
Ended
August 31,
 
     2013     2014     2015     2016     2017     2016     2017  
     (In millions)     (Unaudited)  

Income before income taxes

   $ 176.9     $ 424.5     $ 453.3     $ 483.5     $ 244.3     $ 148.5     $ 155.3  

Interest expense

     79.8       80.9       87.6       91.7       97.0       22.7       26.8  

Investment expense (income), net

     (6.2     (15.7     (18.6     (10.4     (14.0     (3.8     (4.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     250.5       489.7       522.3       564.8       327.3       167.4       177.6  

Depreciation and amortization

     86.3       90.1       99.2       111.0       116.8       28.8       31.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 336.8     $ 579.8     $ 621.5     $ 675.8     $ 444.1     $ 196.2     $ 209.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest (expense)

     (79.8     (80.9     (87.6     (91.7     (97.0     (22.7     (26.8

Investment (expense) income, net

     6.2       15.7       18.6       10.4       14.0       3.8       4.5  

(Provision) benefit for income taxes

     (67.0     (118.5     (225.0     (126.0     (59.6     (35.1     (38.4

Changes in operating assets, liabilities and other

     172.3       (118.0     2.9       6.2       84.6       (135.7     (174.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash from operating activities

   $ 368.5     $ 278.1     $ 330.4     $ 474.7     $ 386.1     $ 6.5     $ (26.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(c) EBITDA margin represents the percentage of EBITDA to net sales. See footnote (b) above for a reconciliation of EBITDA to cash from operating activities.

 

(d) Working capital is defined as the excess of total current assets over total current liabilities.

 

(e) Fiscal year 2013 reflects (i) revised cost estimates and exit costs related to our industrial segment totaling $11.0 million, (ii) the write-off of our various investments in Kemrock Industries and Exports Ltd. totaling $78.6 million, (iii) the proposed settlement between our Building Solutions Group and the U.S. General Services Administration for $65.1 million, (iv) the strategic repositioning of certain operations in Brazil for $6.1 million and (v) restructuring expense for $23.9 million.

 

(f) Reconciliation of income before income taxes to EBIT (as adjusted) and EBITDA (as adjusted):

 

     Fiscal Years Ended May 31,     Three Months
Ended
August 31,
 
     2013     2014     2015     2016     2017     2016     2017  
     (In millions)     (Unaudited)  

Income before income taxes

   $ 176.9     $ 424.5     $ 453.3     $ 483.5     $ 244.3     $ 148.5     $ 155.3  

Adjustments for one-time items

     184.8 (e)      —           —           (14.5 )(h)     215.6 (i)      —           —      

Interest expense

     79.8       80.9       87.6       91.7       97.0       22.7       26.8  

Investment expense (income), net

     (19.9  )(g)      (15.7     (18.6     (10.4     (14.0     (3.8     (4.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBIT, as adjusted

     421.6       489.7       522.3       550.3       542.9       167.4       177.6  

Depreciation and amortization

     86.3       90.1       99.2       111.0       116.8       28.8       31.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA, as adjusted

   $ 507.9     $ 579.8     $ 621.5     $ 661.3     $ 659.7     $ 196.2     $ 209.0  

 

(g) Fiscal year 2013 investment expense (income), net reflects the write-off of $13.7 million of Kemrock FCCB convertible bonds issued by Kemrock Industries and Exports Ltd.

 

(h) Reflects the reversal of contingent obligations for earnout targets that were not met at our Kirker reporting unit.

 

(i) Fiscal year 2017 adjustment removes the impact of (i) $12.3 million in charges related to Flowcrete’s decision to exit the Middle East, (ii) $15.0 million in severance expense, and (iii) $188.3 million of goodwill and other intangible asset impairment charges related to our Kirker reporting unit.

 



 

S-10

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