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Investor Frequently Asked Questions
1.What were RPM’s fiscal 2018 first-quarter results?
2.What were RPM’s fiscal 2018 first-quarter segment sales and earnings?
3.What is the status of RPM's capital structure, cash flow and liquidity?
4.What is RPM's business outlook?
5.What is RPM's long-range strategic plan?
6.Does RPM plan to continue to grow through acquisitions?
7.What is RPM's dividend record?
8.When is the RPM annual stockholders' meeting?
9.When will your annual report and proxy be mailed?
10.How many RPM shares are outstanding?
11.How many employees does RPM have?
12.Are RPM products sold in other countries?
13.Can I buy stock directly through the company?
14.Does RPM have a Dividend Reinvestment Plan?
15.Who should I contact regarding questions on my RPM account or to find out how many shares I own?
16.How often is stock purchased through the Dividend Reinvestment Plan?
17.Can I make voluntary cash payments by having my checking or savings account automatically debited?
18.Can my cash dividend check be direct deposited into my bank account?
1.What were RPM’s fiscal 2018 first-quarter results?
 

RPM reported record sales, net income and earnings per diluted share for its fiscal 2018 first quarter ended August 31, 2017. Fiscal 2018 first-quarter net sales of $1.35 billion increased 7.5% over the $1.25 billion reported a year ago. First-quarter net income was up 3.2% to $116.4 million from $112.8 million in the year-ago period, and diluted earnings per share of $0.86 were up 3.6% from $0.83 in the fiscal 2017 first quarter. Income before income taxes (IBT) increased 4.6% to $155.3 million from $148.5 million in the fiscal 2017 first quarter. RPM's consolidated earnings before interest and taxes (EBIT) increased 6.1% to $177.6 million from $167.4 million reported in the fiscal 2017 first quarter.

Further details of RPM's most recent financial results can be found in the company's earnings news releases, as well as in its 10-K, 10-Q and other periodic filings with the Securities and Exchange Commission.


2.What were RPM’s fiscal 2018 first-quarter segment sales and earnings?
 

Industrial segment net sales increased 8.0%, to $729.8 million from $675.8 million reported a year ago, with 3.2% in organic growth, while acquisitions added 4.3%. Foreign currency translation increased sales by 0.5%. Industrial segment EBIT increased 0.4% to $91.5 million from $91.1 million in the fiscal 2017 first quarter.

RPM’s consumer segment reported a 6.8% increase in sales to $427.1 million from $399.9 million in the fiscal 2017 first quarter. Organic sales declined 1.2%, while acquisition growth contributed 8.1%. Foreign currency translation reduced sales by 0.1%. Consumer segment EBIT improved 3.5% to $72.6 million from $70.1 million in the fiscal 2017 first quarter.  

RPM’s specialty segment had sales growth of 6.9%, to $188.5 million from $176.3 million in the fiscal 2017 first quarter. Organic growth contributed 3.0%, while acquisition growth was 4.1%. Foreign currency translation was a negative 0.2%. Specialty segment EBIT was up 8.9% to $33.0 million from $30.4 million in the fiscal 2017 first quarter.

Further details of RPM's most recent financial results can be found in the company's earnings news releases, as well as in its 10-K, 10-Q and other periodic filings with the Securities and Exchange Commission.


3.What is the status of RPM's capital structure, cash flow and liquidity?
 

During the fiscal 2018 first quarter, cash used from operations was $26.1 million compared to cash provided by operations of $6.5 million a year ago. Capital expenditures were $17.5 million in the quarter, compared to $17.0 million in the year-ago period.  

Total debt at August 31, 2017 of $2.12 billion compares to $2.09 billion at May 31, 2017 and $1.66 billion at the end of last year’s first quarter. Net (of cash) debt-to-total capital was 54.7%, versus 50.5% at the end of last year’s first quarter and 54.8% at the end of the prior fiscal year. Liquidity, including cash, was $1.0 billion, compared to $976.0 million a year ago and $1.15 billion at May 31, 2017.


4.What is RPM's business outlook?
 

As indicated in RPM’s fiscal 2018 first-quarter earnings release, management believes that the severe hurricane season will initially hinder sales in the second quarter, but provide higher than originally expected sales in the back half as communities in the devastated Texas, Florida and Caribbean regions begin the rebuilding process. On the raw material front, the hurricanes will perpetuate the already higher raw material cost environment well into the second quarter before moderating. Price increase actions should offset a large portion of the raw material increases.

In addition, the company will continue to incur expenses relating to the ongoing integration of Flowcrete and Euclid into the newly formed Euclid Group. Management is very focused on driving improved operating leverage throughout the entire industrial segment, which will involve future re-alignments to generate additional cost savings and efficiencies.

As a result of these factors across RPM’s businesses, sales growth guidance for the balance of fiscal 2018 in the industrial and consumer segments is in the mid-single-digit range and specialty in the low- to mid-single-digit range. The company is maintaining its full-year EPS guidance of $2.85 to $2.95 per diluted share.


5.What is RPM's long-range strategic plan?
 

RPM has embarked on a five-year strategic plan, set to conclude on May 31, 2020. RPM’s revenue target is for $7 billion in annual sales at that time, with a somewhat higher improvement in net income and diluted earnings per share. Execution of this plan will include:

  • - Continuing to grow organically by maintaining RPM’s disciplined planning process, increasing its internal growth investments and capitalizing on its strong position in maintenance and repair
  • - Continuing its acquisition program focused on synergistic product lines and entrepreneurial freestanding businesses
  • - Accelerating international expansion
  • - Leveraging sales growth to the bottom line, driving continued income, cash flow and dividend growth

6.Does RPM plan to continue to grow through acquisitions?
 

Yes. RPM continues to be active in pursuing acquisitions of free-standing entrepreneurial companies and product lines that complement its portfolio of specialty coatings and sealants businesses. Over the last 30 years, RPM has completed more than 170 acquisitions, with over 70 of these transactions being completed during the last decade.

On July 21, 2017, RPM acquired Key Resin Company, a manufacturer of polymer flooring and coating systems with a strong position in terrazzo flooring systems. Key Resin has annual sales of approximately $25 million.

RPM’s acquisition philosophy, initiated by Thomas C. Sullivan, who ran RPM as chairman and CEO from 1971 until his retirement from those positions in 2002 and remained on the board as chairman emeritus until his retirement at the annual meeting in 2016, is very entrepreneurial in nature. RPM seeks good companies, creates an atmosphere where the founders and managers stay with their companies, and provides them with resources to grow their businesses. This entrepreneurial culture has been a key attraction to business owners in the industry, as demonstrated by the fact that today about one-third of RPM’s operating companies are managed by their founders, second- or third-generation family members or the managers they trusted to lead their companies. View this video to learn more about RPM’s approach to acquisitions.


7.What is RPM's dividend record?
 

RPM has increased the cash dividend paid to its stockholders for 44 consecutive years, placing it in an elite category of less than a half percent of all publicly traded U.S. companies. Only 41 of the 19,000 U.S. public companies have consecutively paid an increasing annual dividend for this period of time or longer, according to the Mergent Handbook of Dividend Achievers.

RPM’s last dividend increase was on October 5, 2017, when the board of directors raised RPM's quarterly cash dividend to $0.32 per common share, a 6.7% increase over the previous quarterly dividend rate of $0.30 per common share.

Annually increasing its dividend is a long-standing RPM hallmark. Given current uncertain economic conditions, the company is pleased that its strong cash flow has allowed it to continue this practice and deliver stockholders a positive cash return on their investment. For the ten-year and period ended May 31, 2017, RPM's return to shareholders has outperformed the S&P 500 Index by 70% and its current peer group by 28%, including the assumed reinvestment of dividends. RPM's annual dividend growth has been a critical element of its ability to significantly outperform both this broad market index and its peer group, and to deliver value to RPM shareholders.


8.When is the RPM annual stockholders' meeting?
 

RPM's annual meeting of shareholders is typically held the first week in October. The next meeting will be held Thursday, October 4, 2018 at 2:00 p.m. ET.

IMPORTANT! Please note there is a new venue for 2018:

Crowne Plaza Cleveland Airport Hotel
7230 Engle Road
Middleburg Heights, OH 44130


9.When will your annual report and proxy be mailed?
 

With the fiscal year ending on May 31, the annual report and proxy are typically mailed in late August each year. If you would like a copy of the current annual report, you may request one through the Information Request section of this website.


10.How many RPM shares are outstanding?
 As of August 31, 2017, RPM's actual shares outstanding were 133.5 million, while average shares outstanding for computation of fiscal 2017 basic and diluted earnings per share were 131.2 million and 135.7 million, respectively.

11.How many employees does RPM have?
 RPM's operating companies employ more than 14,000 people worldwide, plus hundreds of independent sales and technical representatives.

12.Are RPM products sold in other countries?
 Products manufactured by RPM's numerous operating companies are sold in approximately 170 countries and territories.

13.Can I buy stock directly through the company?
 

Yes, RPM does offer direct purchase of its stock through the Direct Stock Purchase Plan administered by Wells Fargo. Your initial purchase of RPM stock must be at least $200. After that, additional shares can be purchased, commission-free, at a minimum of $25 and a maximum of $5,000 per month. Contact Wells Fargo at 1-800-988-5238 for an enrollment form or download one from Shareowner Online.


14.Does RPM have a Dividend Reinvestment Plan?
 

Yes. RPM maintains a Dividend Reinvestment Plan whereby cash dividends, plus additional investment of up to $5,000 per month, may be invested in additional RPM shares at no commission cost or service fee. Details of the Plan are available online or by contacting RPM at 1-800-776-4488 or Wells Fargo at 1-800-988-5238 (or 651-450-4064 outside the U.S.). Only shareholders of record may participate in the Plan. Shares owned by you but held by your broker in "street name" must be transferred into your name before you can enroll in the plan.


15.Who should I contact regarding questions on my RPM account or to find out how many shares I own?
 

Please contact our stock transfer agent, Wells Fargo Bank, at 1-800-988-5238 (or 651-450-4064 outside the U.S.), and they will be happy to assist you. You can also obtain information online at www.shareowneronline.com.


16.How often is stock purchased through the Dividend Reinvestment Plan?
 RPM stock is purchased within five days of receipt of your check. Timing of your cash payment should be made accordingly. Your check should be made payable to Shareowner Services and mailed to: Wells Fargo Shareowner Services, P.O. Box 64854, St. Paul, MN 55164-0854. Certified/overnight mail can be sent to: Wells Fargo Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100. The same amount of money need not be invested each month and there is no obligation to make voluntary cash payment each month.

17.Can I make voluntary cash payments by having my checking or savings account automatically debited?
 Yes. This service allows you to arrange for automatic monthly or quarterly investments in RPM stock by taking the funds directly from your checking or savings account and investing them in RPM stock. There is no cost to you for this service. To initiate automatic deductions, contact Wells Fargo Bank at 1-800-988-5238 (or 651-450-4064 outside the U.S.) to request an authorization form to be completed by you and mailed to Wells Fargo Bank.

18.Can my cash dividend check be direct deposited into my bank account?
 Yes. Shareholders of record may have their dividends electronically deposited directly into their checking or savings account through the Direct Deposit Program at no charge. For information regarding this service, please contact Wells Fargo Bank at 1-800-988-5238 (or 651-450-4064 outside the U.S.).



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