RPM Reports Record Fiscal 2025 First-Quarter Results
-
Record first-quarter net income of
$227.7 million , record diluted EPS of$1.77 , and record EBIT of$303.9 million -
Record first-quarter adjusted diluted EPS of
$1.84 increased 12.2% over prior year and record adjusted EBIT increased 6.3% to$328.3 million -
First-quarter net sales of
$1.97 billion , down 2.1% from the prior year -
Strong first-quarter cash provided by operating activities of
$248.1 million - Fiscal 2025 second-quarter outlook calls for flat sales growth and mid-single digit adjusted EBIT growth
- Fiscal 2025 full-year outlook is unchanged with revenue growth of low-single digits and adjusted EBIT growth of mid-single digits to low-double digits
First-Quarter 2025 Consolidated Results
Consolidated | |||||||||||
Three Months Ended |
|
|
|
||||||||
$ in 000s except per share data |
|
|
|
|
|
|
|||||
2024 |
|
2023 |
|
$ Change |
% Change |
||||||
|
$ |
1,968,789 |
$ |
2,011,857 |
$ |
(43,068 |
) |
(2.1 |
%) |
||
Net Income Attributable to RPM Stockholders |
|
227,692 |
|
201,082 |
|
26,610 |
|
13.2 |
% |
||
Diluted Earnings Per Share (EPS) |
|
1.77 |
|
1.56 |
|
0.21 |
|
13.5 |
% |
||
Income Before Income Taxes (IBT) |
|
290,451 |
|
269,154 |
|
21,297 |
|
7.9 |
% |
||
Earnings Before Interest and Taxes (EBIT) |
|
303,859 |
|
288,533 |
|
15,326 |
|
5.3 |
% |
||
Adjusted EBIT(1) |
|
328,342 |
|
309,014 |
|
19,328 |
|
6.3 |
% |
||
Adjusted Diluted EPS(1) |
|
1.84 |
|
1.64 |
|
0.20 |
|
12.2 |
% |
||
(1) Excludes certain items that are not indicative of RPM's ongoing operations. See tables below titled Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. |
Volume growth at CPG and PCG and slightly positive overall pricing were more than offset by foreign currency translation headwinds and volume declines at
Geographically, sales declined modestly in
Sales included a 0.9% organic decline, a 0.1% decline from divestitures net of acquisitions, and a 1.1% decline from foreign currency translation.
Selling, general and administrative expenses decreased as MAP 2025-enabled actions to streamline expenses were partially offset by targeted investments in growth initiatives.
Fiscal 2025 first-quarter adjusted EBIT was a record, driven by MAP 2025, including the commodity cycle recovery, plant consolidations and SG&A streamlining; and improved fixed-cost leverage at businesses with volume growth. In
Record first-quarter adjusted diluted EPS, grew at a faster rate than adjusted EBIT, and was driven by reduced interest expense from debt paydowns of
First-Quarter 2025 Segment Sales and Earnings
|
||||||||||
Three Months Ended |
|
|
|
|||||||
$ in 000s |
|
|
|
|
|
|
||||
2024 |
|
2023 |
|
$ Change |
% Change |
|||||
|
$ |
793,991 |
$ |
782,789 |
$ |
11,202 |
1.4 |
% |
||
Income Before Income Taxes |
|
156,998 |
|
140,452 |
|
16,546 |
11.8 |
% |
||
EBIT |
|
157,464 |
|
143,848 |
|
13,616 |
9.5 |
% |
||
Adjusted EBIT(1) |
|
159,904 |
|
144,597 |
|
15,307 |
10.6 |
% |
||
(1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. |
CPG achieved record first-quarter sales led by turnkey roofing systems and wall systems serving both new high-performance construction projects and renovations. This growth is in addition to strong results in the prior-year period when sales increased 10.8%.
Sales included 2.2% organic growth, 0.4% growth from acquisitions, and a 1.2% decline from foreign currency translation.
Record first-quarter adjusted EBIT was driven by improved fixed-cost leverage from volume growth, MAP 2025 benefits, and a focus on selling higher margin products and services.
|
|||||||||||
Three Months Ended |
|
|
|
||||||||
$ in 000s |
|
|
|
|
|
|
|||||
2024 |
|
2023 |
|
$ Change |
% Change |
||||||
|
$ |
371,759 |
$ |
378,513 |
$ |
(6,754 |
) |
(1.8 |
%) |
||
Income Before Income Taxes |
|
64,292 |
|
44,821 |
|
19,471 |
|
43.4 |
% |
||
EBIT |
|
63,819 |
|
43,697 |
|
20,122 |
|
46.0 |
% |
||
Adjusted EBIT(1) |
|
64,592 |
|
59,051 |
|
5,541 |
|
9.4 |
% |
||
(1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. |
PCG achieved positive first-quarter organic sales led by the flooring business, which benefited from its focus on maintenance and restoration, and specified solutions for high-performance new construction projects. Emerging markets also contributed to growth. Organic growth was more than offset by the prior divestiture of a non-core European service business and foreign currency translation.
Sales included 1.8% organic growth, a 2.0% decline from divestitures, and a 1.6% decline from foreign currency translation.
Record first-quarter adjusted EBIT was driven by MAP 2025 benefits and improved fixed-cost leverage from higher volumes.
|
|||||||||||
Three Months Ended |
|
|
|
||||||||
$ in 000s |
|
|
|
|
|
|
|||||
2024 |
|
2023 |
|
$ Change |
% Change |
||||||
|
$ |
174,565 |
$ |
180,951 |
$ |
(6,386 |
) |
(3.5 |
%) |
||
Income Before Income Taxes |
|
15,203 |
|
16,397 |
|
(1,194 |
) |
(7.3 |
%) |
||
EBIT |
|
15,290 |
|
16,298 |
|
(1,008 |
) |
(6.2 |
%) |
||
Adjusted EBIT(1) |
|
18,112 |
|
17,894 |
|
218 |
|
1.2 |
% |
||
(1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. |
SPG’s first-quarter sales decline was driven by soft specialty residential OEM end-market demand and a decline in the disaster restoration businesses as high customer inventories muted the impact of storm activity during the quarter. Partially offsetting this decline, food coatings and additives generated growth from new business wins and a small acquisition made during the quarter.
Sales included a 4.8% organic decline and 1.3% growth from an acquisition.
First-quarter adjusted EBIT increased as a result of MAP 2025 benefits, partially offset by underabsorption from lower volumes.
|
|||||||||||
Three Months Ended |
|
|
|
||||||||
$ in 000s |
|
|
|
|
|
|
|||||
2024 |
|
2023 |
|
$ Change |
% Change |
||||||
|
$ |
628,474 |
$ |
669,604 |
$ |
(41,130 |
) |
(6.1 |
%) |
||
Income Before Income Taxes |
|
108,150 |
|
131,829 |
|
(23,679 |
) |
(18.0 |
%) |
||
EBIT |
|
108,407 |
|
131,079 |
|
(22,672 |
) |
(17.3 |
%) |
||
Adjusted EBIT(1) |
|
116,214 |
|
121,167 |
|
(4,953 |
) |
(4.1 |
%) |
||
(1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. |
The Consumer Group’s first-quarter sales decline was driven by weaker DIY takeaway at retail stores, customer destocking and the rationalization of lower-margin products. This was partially offset by growth in international markets, which benefited from successful targeted marketing campaigns.
Sales included a 5.0% organic decline and a 1.1% decline from foreign currency translation.
Although first-quarter adjusted EBIT declined due to lower sales and unfavorable fixed-cost absorption from lower volumes, adjusted EBIT margin expanded, driven by MAP 2025 benefits and the rationalization of lower-margin products.
Cash Flow and Financial Position
During the first three months of fiscal 2025:
-
Cash provided by operating activities was
$248.1 million , driven by improved profitability and working capital efficiency, both of which were enabled by MAP 2025 initiatives. This compares to$359.2 million in the prior-year period when there was a large working capital release from internal destocking initiatives. - Operating working capital as a percentage of sales improved by 250 basis points to 22.7% compared to 25.2% in the prior-year period, driven by MAP 2025 working capital efficiency initiatives.
-
Capital expenditures were
$50.7 million compared to$52.2 million during the prior-year period. This includes investments in a new production facility inBelgium that is expected to open in the second quarter of fiscal 2025. It will be managed by SPG, supply resins to all four segments and external customers, and serve to improve supply chain resiliency and lower costs. -
The company returned
$76.4 million to stockholders through cash dividends and share repurchases.
As of
-
Total debt was
$2.05 billion compared to$2.51 billion a year ago, with the$453.1 million reduction driven by improved cash flow being used to repay higher-cost debt. -
Total liquidity, including cash and committed revolving credit facilities, was
$1.44 billion , compared to$1.23 billion a year ago.
Business Outlook
“The economic outlook for the second quarter remains mixed with continued growth in high-performance building construction and renovation, and softness in residential end markets. While we are optimistic that lower interest rates will eventually lead to a rebound in residential markets, it is too early to say precisely when growth will return. As we have demonstrated, no matter the economic backdrop, we will focus on controlling what we can, including executing on MAP 2025 initiatives to leverage the power of RPM to capture growth opportunities, expand margins and structurally improve cash flow,” Sullivan concluded.
The company expects the following in the fiscal 2025 second quarter:
- Consolidated sales to be flat compared to prior-year record results.
- CPG sales to increase in the low-single-digit percentage range compared to prior-year record results.
- PCG sales to be flat compared to prior-year record results.
- SPG sales to decline in the low-single-digit percentage range compared to prior-year results.
-
Consumer Group sales to decline in the low-single-digit percentage range compared to prior-year results. - Consolidated adjusted EBIT to increase in the mid-single-digit percentage range compared to prior-year record results.
The company outlook for full-year fiscal 2025 remains unchanged with:
- Consolidated sales increasing in the low-single-digit percentage range compared to prior-year record results.
- Consolidated adjusted EBIT increasing in the mid-single- to low-double-digit percentage range compared to prior-year record results.
Earnings Webcast and Conference Call Information
Management will host a conference call to discuss these results beginning at
For those unable to listen to the live call, a replay will be available from
About RPM
For more information, contact
From Fortune ©2024
Use of Non-GAAP Financial Information
To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in
Use of Key Performance Indicator Metric
To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in
Forward-Looking Statements
This press release contains “forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global and regional markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the viability of banks and other financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solvents, and other natural gas- and oil-based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, and the risks of failing to meet any other objectives of our improvement plans; (j) risks related to the adequacy of our contingent liability reserves; (k) risks relating to a public health crisis similar to the Covid pandemic; (l) risks related to acts of war similar to the Russian invasion of
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
|
|
|
||||||
|
2024 |
|
|
|
2023 |
|
||
|
$ |
1,968,789 |
|
$ |
2,011,857 |
|
||
Cost of Sales |
|
1,132,116 |
|
|
1,183,240 |
|
||
Gross Profit |
|
836,673 |
|
|
828,617 |
|
||
Selling, General & Administrative Expenses |
|
526,146 |
|
|
531,032 |
|
||
Restructuring Expense |
|
7,202 |
|
|
6,498 |
|
||
Interest Expense |
|
24,434 |
|
|
31,818 |
|
||
Investment (Income), Net |
|
(11,026 |
) |
|
(12,439 |
) |
||
Other (Income) Expense, Net |
|
(534 |
) |
|
2,554 |
|
||
Income Before Income Taxes |
|
290,451 |
|
|
269,154 |
|
||
Provision for Income Taxes |
|
61,897 |
|
|
67,841 |
|
||
Net Income |
|
228,554 |
|
|
201,313 |
|
||
Less: Net Income Attributable to Noncontrolling Interests |
|
862 |
|
|
231 |
|
||
Net Income Attributable to |
$ |
227,692 |
|
$ |
201,082 |
|
||
Earnings per share of common stock attributable to | ||||||||
|
||||||||
Basic |
$ |
1.78 |
|
$ |
1.57 |
|
||
Diluted |
$ |
1.77 |
|
$ |
1.56 |
|
||
Average shares of common stock outstanding - basic |
|
127,691 |
|
|
127,633 |
|
||
Average shares of common stock outstanding - diluted |
|
128,420 |
|
|
128,771 |
|
SUPPLEMENTAL SEGMENT INFORMATION | ||||||||
IN THOUSANDS | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
|
|
|
||||||
|
2024 |
|
|
|
2023 |
|
||
|
||||||||
CPG Segment |
$ |
793,991 |
|
$ |
782,789 |
|
||
PCG Segment |
|
371,759 |
|
|
378,513 |
|
||
SPG Segment |
|
174,565 |
|
|
180,951 |
|
||
Consumer Segment |
|
628,474 |
|
|
669,604 |
|
||
Total |
$ |
1,968,789 |
|
$ |
2,011,857 |
|
||
Income Before Income Taxes: | ||||||||
CPG Segment | ||||||||
Income Before Income Taxes (a) |
$ |
156,998 |
|
$ |
140,452 |
|
||
Interest (Expense), Net (b) |
|
(466 |
) |
|
(3,396 |
) |
||
EBIT (c) |
|
157,464 |
|
|
143,848 |
|
||
MAP initiatives (d) |
|
2,440 |
|
|
749 |
|
||
Adjusted EBIT |
$ |
159,904 |
|
$ |
144,597 |
|
||
PCG Segment | ||||||||
Income Before Income Taxes (a) |
$ |
64,292 |
|
$ |
44,821 |
|
||
Interest Income, Net (b) |
|
473 |
|
|
1,124 |
|
||
EBIT (c) |
|
63,819 |
|
|
43,697 |
|
||
MAP initiatives (d) |
|
773 |
|
|
15,354 |
|
||
Adjusted EBIT |
$ |
64,592 |
|
$ |
59,051 |
|
||
SPG Segment | ||||||||
Income Before Income Taxes (a) |
$ |
15,203 |
|
$ |
16,397 |
|
||
Interest (Expense) Income, Net (b) |
|
(87 |
) |
|
99 |
|
||
EBIT (c) |
|
15,290 |
|
|
16,298 |
|
||
MAP initiatives (d) |
|
3,059 |
|
|
2,719 |
|
||
(Gain) on sale of a business (e) |
|
(237 |
) |
|
(1,123 |
) |
||
Adjusted EBIT |
$ |
18,112 |
|
$ |
17,894 |
|
||
Consumer Segment | ||||||||
Income Before Income Taxes (a) |
$ |
108,150 |
|
$ |
131,829 |
|
||
Interest (Expense) Income, Net (b) |
|
(257 |
) |
|
750 |
|
||
EBIT (c) |
|
108,407 |
|
|
131,079 |
|
||
MAP initiatives (d) |
|
7,807 |
|
|
380 |
|
||
Business interruption insurance recovery (f) |
|
- |
|
|
(10,292 |
) |
||
Adjusted EBIT |
$ |
116,214 |
|
$ |
121,167 |
|
||
Corporate/Other | ||||||||
(Loss) Before Income Taxes (a) |
$ |
(54,192 |
) |
$ |
(64,345 |
) |
||
Interest (Expense), Net (b) |
|
(13,071 |
) |
|
(17,956 |
) |
||
EBIT (c) |
|
(41,121 |
) |
|
(46,389 |
) |
||
MAP initiatives (d) |
|
10,641 |
|
|
12,694 |
|
||
Adjusted EBIT |
$ |
(30,480 |
) |
$ |
(33,695 |
) |
||
TOTAL CONSOLIDATED | ||||||||
Income Before Income Taxes (a) |
$ |
290,451 |
|
$ |
269,154 |
|
||
Interest (Expense) |
|
(24,434 |
) |
|
(31,818 |
) |
||
Investment Income, Net |
|
11,026 |
|
|
12,439 |
|
||
EBIT (c) |
|
303,859 |
|
|
288,533 |
|
||
MAP initiatives (d) |
|
24,720 |
|
|
31,896 |
|
||
(Gain) on sale of a business (e) |
|
(237 |
) |
|
(1,123 |
) |
||
Business interruption insurance recovery (f) |
|
- |
|
|
(10,292 |
) |
||
Adjusted EBIT |
$ |
328,342 |
|
$ |
309,014 |
|
(a) |
The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles in |
||||||||
(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, with Adjusted EBIT provided for the purpose of adjusting for items impacting earnings that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT, or adjusted EBIT, as a performance evaluation measure because Interest Income (Expense), Net is essentially related to corporate functions, 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 and investment income or expense 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) |
Reflects restructuring and other charges, which have been incurred in relation to our Margin Acceleration Plan ("MAP to Growth") and our Margin Achievement Plan ("MAP 2025"), together MAP initiatives, as follows: - Restructuring and other related expense, net: Includes charges incurred related to headcount reductions, facility closures and asset impairments recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled - Exited product lines: Reflects inventory write-offs in the prior year related to the discontinuation of certain product lines within our SPG segment. This resulted from ongoing product line rationalization efforts in connection with our MAP initiatives and were recorded within "Cost of Sales". - ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP systems across the organization to four ERP platforms, one per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been incurred in all segments, including Corporate/Other, and have been recorded within "SG&A". - Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to implement technologies and processes to drive improved sales mix and salesforce effectiveness and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments and recorded within "SG&A". All of this spend is in support of stated MAP goals with the most significant expense incurred within our Corporate/Other segment. Included below is a reconciliation of the TOTAL CONSOLIDATED MAP initiatives. |
||||||||
Three Months Ended |
|||||||||
|
|
|
|||||||
2024 |
|
2023 |
|||||||
Restructuring and other related expense, net |
$ |
10,754 |
$ |
16,427 |
|||||
Exited product line |
|
- |
|
47 |
|||||
ERP consolidation plan |
|
4,944 |
|
3,143 |
|||||
Professional fees |
|
9,022 |
|
12,279 |
|||||
MAP initiatives |
$ |
24,720 |
$ |
31,896 |
|||||
(e) |
Reflects gains associated with post-closing adjustments for the sale of the non-core furniture warranty business in the SPG segment in fiscal 2023 which have been recorded in "SG&A". | ||||||||
(f) |
Business interruption insurance recovery at our Consumer segment related to lost sales and incremental costs incurred during fiscal 2021 and 2022 as a result of an explosion at the plant of a significant alkyd resin supplier, which has been recorded in "SG&A". |
SUPPLEMENTAL INFORMATION | ||||||||||
RECONCILIATION OF "REPORTED" TO "ADJUSTED" AMOUNTS | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended |
||||||||||
|
|
|
||||||||
|
2024 |
|
|
|
2023 |
|
||||
Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): | ||||||||||
Reported Earnings per Diluted Share |
$ |
1.77 |
|
$ |
1.56 |
|
||||
MAP initiatives (d) |
|
0.15 |
|
|
0.19 |
|
||||
(Gain) on sale of a business (e) |
|
- |
|
|
(0.01 |
) |
||||
Business interruption insurance recovery (f) |
|
- |
|
|
(0.06 |
) |
||||
Investment returns (g) |
|
(0.03 |
) |
|
(0.04 |
) |
||||
Income tax adjustment (h) |
|
(0.05 |
) |
|
- |
|
||||
Adjusted Earnings per Diluted Share (i) |
$ |
1.84 |
|
$ |
1.64 |
|
(d) |
Reflects restructuring and other charges, which have been incurred in relation to our Margin Acceleration Plan ("MAP to Growth") and our Margin Achievement Plan ("MAP 2025"), together MAP initiatives, as follows: - Restructuring and other related expense, net: Includes charges incurred related to headcount reductions, facility closures and asset impairments recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled - Exited product lines: Reflects inventory write-offs in the prior year related to the discontinuation of certain product lines within our SPG segment. This resulted from ongoing product line rationalization efforts in connection with our MAP initiatives and were recorded within "Cost of Sales". - ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP systems across the organization to four ERP platforms, one per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been incurred in all segments, including Corporate/Other, and have been recorded within "SG&A". - Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to implement technologies and processes to drive improved sales mix and salesforce effectiveness and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments and recorded within "SG&A". All of this spend is in support of stated MAP goals with the most significant expense incurred within our Corporate/Other segment. |
(e) |
Reflects gains associated with post-closing adjustments for the sale of the non-core furniture warranty business in the SPG segment in fiscal 2023 which have been recorded in "SG&A". |
(f) |
Business interruption insurance recovery at our Consumer segment related to lost sales and incremental costs incurred during fiscal 2021 and 2022 as a result of an explosion at the plant of a significant alkyd resin supplier, which has been recorded in "SG&A". |
(g) |
Investment returns include realized net gains and losses on sales of investments and unrealized net gains and losses on equity securities, which are adjusted due to their inherent volatility. Management does not consider these gains and losses, which cannot be predicted with any level of certainty, to be reflective of the Company's core business operations. |
(h) |
|
(i) |
Adjusted Diluted EPS is provided for the purpose of adjusting diluted earnings per share for items impacting earnings that are not considered by management to be indicative of ongoing operations. |
CONSOLIDATED BALANCE SHEETS | ||||||||||||
IN THOUSANDS | ||||||||||||
(Unaudited) | ||||||||||||
|
|
|
||||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents |
$ |
231,555 |
|
$ |
240,586 |
|
$ |
237,379 |
|
|||
Trade accounts receivable |
|
1,393,283 |
|
|
1,475,470 |
|
|
1,468,208 |
|
|||
Allowance for doubtful accounts |
|
(49,106 |
) |
|
(56,584 |
) |
|
(48,763 |
) |
|||
Net trade accounts receivable |
|
1,344,177 |
|
|
1,418,886 |
|
|
1,419,445 |
|
|||
Inventories |
|
1,003,459 |
|
|
1,117,441 |
|
|
956,465 |
|
|||
Prepaid expenses and other current assets |
|
319,107 |
|
|
335,065 |
|
|
282,059 |
|
|||
Total current assets |
|
2,898,298 |
|
|
3,111,978 |
|
|
2,895,348 |
|
|||
Property, Plant and Equipment, at Cost |
|
2,568,792 |
|
|
2,372,532 |
|
|
2,515,847 |
|
|||
Allowance for depreciation |
|
(1,219,084 |
) |
|
(1,127,209 |
) |
|
(1,184,784 |
) |
|||
Property, plant and equipment, net |
|
1,349,708 |
|
|
1,245,323 |
|
|
1,331,063 |
|
|||
Other Assets | ||||||||||||
|
|
1,315,790 |
|
|
1,300,833 |
|
|
1,308,911 |
|
|||
Other intangible assets, net of amortization |
|
504,562 |
|
|
541,994 |
|
|
512,972 |
|
|||
Operating lease right-of-use assets |
|
365,972 |
|
|
324,655 |
|
|
331,555 |
|
|||
Deferred income taxes |
|
36,563 |
|
|
19,907 |
|
|
33,522 |
|
|||
Other |
|
178,982 |
|
|
170,587 |
|
|
173,172 |
|
|||
Total other assets |
|
2,401,869 |
|
|
2,357,976 |
|
|
2,360,132 |
|
|||
Total Assets |
$ |
6,649,875 |
|
$ |
6,715,277 |
|
$ |
6,586,543 |
|
|||
Liabilities and Stockholders' Equity | ||||||||||||
Current Liabilities | ||||||||||||
Accounts payable |
$ |
693,519 |
|
$ |
684,075 |
|
$ |
649,650 |
|
|||
Current portion of long-term debt |
|
6,779 |
|
|
6,885 |
|
|
136,213 |
|
|||
Accrued compensation and benefits |
|
180,785 |
|
|
170,333 |
|
|
297,249 |
|
|||
Accrued losses |
|
32,440 |
|
|
28,753 |
|
|
32,518 |
|
|||
Other accrued liabilities |
|
369,060 |
|
|
378,601 |
|
|
350,434 |
|
|||
Total current liabilities |
|
1,282,583 |
|
|
1,268,647 |
|
|
1,466,064 |
|
|||
Long-Term Liabilities | ||||||||||||
Long-term debt, less current maturities |
|
2,045,387 |
|
|
2,498,426 |
|
|
1,990,935 |
|
|||
Operating lease liabilities |
|
316,064 |
|
|
279,632 |
|
|
281,281 |
|
|||
Other long-term liabilities |
|
234,368 |
|
|
287,087 |
|
|
214,816 |
|
|||
Deferred income taxes |
|
119,946 |
|
|
98,649 |
|
|
121,222 |
|
|||
Total long-term liabilities |
|
2,715,765 |
|
|
3,163,794 |
|
|
2,608,254 |
|
|||
Total liabilities |
|
3,998,348 |
|
|
4,432,441 |
|
|
4,074,318 |
|
|||
Stockholders' Equity | ||||||||||||
Preferred stock; none issued |
|
- |
|
|
- |
|
|
- |
|
|||
Common stock (outstanding 128,702; 128,962; 128,629) |
|
1,287 |
|
|
1,290 |
|
|
1,286 |
|
|||
Paid-in capital |
|
1,156,977 |
|
|
1,133,941 |
|
|
1,150,751 |
|
|||
|
|
(897,686 |
) |
|
(812,041 |
) |
|
(864,502 |
) |
|||
Accumulated other comprehensive (loss) |
|
(540,590 |
) |
|
(593,189 |
) |
|
(537,290 |
) |
|||
Retained earnings |
|
2,929,439 |
|
|
2,551,142 |
|
|
2,760,639 |
|
|||
|
|
2,649,427 |
|
|
2,281,143 |
|
|
2,510,884 |
|
|||
Noncontrolling interest |
|
2,100 |
|
|
1,693 |
|
|
1,341 |
|
|||
Total equity |
|
2,651,527 |
|
|
2,282,836 |
|
|
2,512,225 |
|
|||
Total Liabilities and Stockholders' Equity |
$ |
6,649,875 |
|
$ |
6,715,277 |
|
$ |
6,586,543 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
IN THOUSANDS | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
|
|
|
||||||
|
2024 |
|
|
|
2023 |
|
||
Cash Flows From Operating Activities: | ||||||||
Net income |
$ |
228,554 |
|
$ |
201,313 |
|
||
Adjustments to reconcile net income to net | ||||||||
cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
46,185 |
|
|
43,539 |
|
||
Deferred income taxes |
|
(4,646 |
) |
|
2,295 |
|
||
Stock-based compensation expense |
|
6,226 |
|
|
9,118 |
|
||
Net (gain) on marketable securities |
|
(5,971 |
) |
|
(6,451 |
) |
||
Net loss on sales of assets and businesses |
|
- |
|
|
3,263 |
|
||
Other |
|
(70 |
) |
|
5,100 |
|
||
Changes in assets and liabilities, net of effect | ||||||||
from purchases and sales of businesses: | ||||||||
Decrease in receivables |
|
78,011 |
|
|
87,712 |
|
||
(Increase) decrease in inventory |
|
(43,991 |
) |
|
22,281 |
|
||
(Increase) in prepaid expenses and other |
|
(37,620 |
) |
|
(14,277 |
) |
||
current and long-term assets | ||||||||
Increase in accounts payable |
|
52,152 |
|
|
18,840 |
|
||
(Decrease) in accrued compensation and benefits |
|
(116,792 |
) |
|
(88,460 |
) |
||
(Decrease) increase in accrued losses |
|
(123 |
) |
|
2,211 |
|
||
Increase in other accrued liabilities |
|
46,144 |
|
|
72,726 |
|
||
Cash Provided By Operating Activities |
|
248,059 |
|
|
359,210 |
|
||
Cash Flows From Investing Activities: | ||||||||
Capital expenditures |
|
(50,742 |
) |
|
(52,201 |
) |
||
Acquisition of businesses, net of cash acquired |
|
(6,223 |
) |
|
(4,026 |
) |
||
Purchase of marketable securities |
|
(11,394 |
) |
|
(16,235 |
) |
||
Proceeds from sales of marketable securities |
|
4,188 |
|
|
9,443 |
|
||
Other |
|
90 |
|
|
1,502 |
|
||
Cash (Used For) Investing Activities |
|
(64,081 |
) |
|
(61,517 |
) |
||
Cash Flows From Financing Activities: | ||||||||
Additions to long-term and short-term debt |
|
37,807 |
|
|
852 |
|
||
Reductions of long-term and short-term debt |
|
(131,809 |
) |
|
(193,085 |
) |
||
Cash dividends |
|
(58,892 |
) |
|
(54,065 |
) |
||
Repurchases of common stock |
|
(17,500 |
) |
|
(12,500 |
) |
||
Shares of common stock returned for taxes |
|
(15,396 |
) |
|
(14,833 |
) |
||
Other |
|
(162 |
) |
|
(712 |
) |
||
Cash (Used For) Financing Activities |
|
(185,952 |
) |
|
(274,343 |
) |
||
Effect of Exchange Rate Changes on Cash and | ||||||||
Cash Equivalents |
|
(3,850 |
) |
|
1,449 |
|
||
Net Change in Cash and Cash Equivalents |
|
(5,824 |
) |
|
24,799 |
|
||
Cash and Cash Equivalents at Beginning of Period |
|
237,379 |
|
|
215,787 |
|
||
Cash and Cash Equivalents at End of Period |
$ |
231,555 |
|
$ |
240,586 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241002995963/en/
Source: