424B5
RPM INTERNATIONAL INC/DE/ filed this Form 424B5 on 12/08/2017
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Table of Contents
     Fiscal Years Ended May 31,     Three Months
Ended
August 31,
 
     2013(e)     2014     2015     2016     2017     2016     2017  
     (In millions, except per share amounts and percentages)     (Unaudited)  

Other Data:

              

EBIT(b)

   $ 250.5     $ 489.7     $ 522.3     $ 564.8     $ 327.3     $ 167.4     $ 177.6  

EBITDA(b)

     336.8       579.8       621.5       675.8       444.1       196.2       209.0  

EBITDA margin(c)

     8.3     13.2     13.5     14.0     9.0     15.7     15.5

EBITDA, as adjusted(e),(f)

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

EBITDA margin, as adjusted(c),(e)

     12.5     13.2     13.5     13.7     13.3     15.7     15.5

Depreciation and amortization

   $ 86.3     $ 90.1     $ 99.2     $ 111.0     $ 116.8     $ 28.8     $ 31.4  

Cash flows from operating activities

     368.5       278.1       330.4       474.7       386.1       6.5       (26.1

Cash flows (used in) investing activities

     (477.4     (149.7     (559.5     (165.9     (339.7     (34.5     (68.5

Cash flows from (used in) financing activities

     138.1       (137.2     110.2       (206.1     36.0       (43.8     (31.1

Effect of exchange rate changes on cash and cash equivalents

     (1.6     (1.9     (39.3     (12.3     2.9       1.1       11.3  

Capital expenditures

     (91.4     (93.8     (85.4     (117.2     (126.1     (17.0     (17.5

 

     As of May 31,      As of August 31,  
     2013      2014      2015      2016      2017      2016      2017  
     (In millions)      (Unaudited)  

Balance Sheet Data:

                    

Cash and cash equivalents

   $ 343.6      $ 332.9      $ 174.7      $ 265.2      $ 350.5      $ 194.5      $ 236.2  

All other current assets, excluding cash and cash equivalents

     1,540.3        1,726.6        1,922.1        1,870.2        2,046.9        1,900.6        2,126.8  

Working capital(d)

     955.9        1,122.4        1,193.6        1,133.2        1,162.0        1,211.5        1,267.8  

Property, plant and equipment, net

     492.4        532.8        589.6        629.5        742.7        632.5        755.9  

Total assets

     4,110.0        4,365.7        4,680.1        4,765.0        5,090.4        4,726.9        5,108.9  

Current and long-term debt

     1,362.9        1,338.9        1,641.9        1,640.0        2,090.1        1,656.7        2,122.3  

Stockholders’ equity

     1,200.9        1,382.8        1,291.4        1,372.3        1,436.1        1,435.4        1,559.1  

 

(a) Selling, general and administrative expenses include research and development and other operating expenses.

 

(b)

EBIT is defined as earnings (loss) before interest and taxes, while EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization. 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, operating income as determined in accordance with GAAP, since EBIT omits the impact of interest and taxes in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. We evaluate our liquidity based on cash flows from operating, investing and financing activities, as defined by GAAP, but also look to EBITDA as a supplemental liquidity measure, because we find it useful to understand and evaluate our capacity, excluding the impact of interest, taxes, and non-cash depreciation and amortization charges, for servicing our debt and otherwise meeting our cash needs, prior to our consideration of the impacts of other potential sources and uses of cash, such as working capital items. We believe that EBITDA is useful to investors for these purposes as well. EBITDA should not be considered an alternative to, or more meaningful than, cash flows from operating activities, as determined in accordance with GAAP, since it omits the impact of interest, taxes and changes in working capital that use/provide cash (such as receivables, payables and inventories) as well as the sources/uses of cash associated with changes in other balance sheet items (such as long-term loss accruals and deferred items). Since EBITDA excludes depreciation and amortization, EBITDA does not reflect any cash requirements for the replacement of the assets being depreciated and amortized, which assets will often have to be replaced in the future. Further, EBITDA, since it also does not reflect the impact of debt service, cash dividends or capital expenditures, does not represent how much discretionary cash we have available for other purposes. Nonetheless, EBIT and EBITDA are key measures expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that these measures are critical to the capital markets’ analysis of (i) our segments’ core operating performance, and (ii) our ability

 



 

S-9

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