UPDATE: RPM International (RPM) Misses Q3 EPS Views; Updates on Outlook

April 6, 2016 6:49 AM EDT

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(Updated - April 6, 2016 6:54 AM EDT)

RPM International (NYSE: RPM) reported Q3 EPS of $14, $0.01 worse than the analyst estimate of $0.15. Revenue for the quarter came in at $988.6 million versus the consensus estimate of $994.64 million.

For the first nine months of fiscal 2016, cash from operations was $223.8 million, compared to $24.1 million in the first nine months of fiscal 2015. Capital expenditures during the current nine-month period of $54.8 million compare to $47.3 million over the same time in fiscal 2015. Total debt at the end of the first nine months of fiscal 2016 was $1.75 billion, compared to $1.87 billion a year ago and $1.66 billion at the end of fiscal 2015. RPM's net (of cash) debt-to-total capitalization ratio was 55.3%, compared to 57.2% at February 28, 2015. During the first nine months of fiscal 2016, RPM repurchased 800,000 shares of its stock in the open market at a cost of $35.1 million.

Business Outlook

"For the fourth quarter of our fiscal year, we expect consumer segment sales to grow in the mid-single-digit range. Benefits from recent market share gains and new product placements that just began impacting sales in the third quarter this year are expected to continue adding incremental sales into fiscal 2017. In our industrial segment, we expect solid growth for businesses serving the U.S. commercial construction markets to be somewhat offset by results from businesses serving the global energy sector. In our specialty segment businesses, sales growth in the mid- to upper-single-digit range will be predominately organically driven.

"While the negative impact of currency translation is diminishing slightly on a sequential basis, it will continue to challenge us. In addition, during last year's fiscal fourth quarter, the company reversed a Synta earn-out accrual in the amount of $9.9 million, impacting EPS favorably by $0.05 per share. Taking into account all of these factors, we are maintaining our guidance for fiscal 2016 full-year results of $2.50 per diluted share," chairman and CEO Frank Sullivan stated.

For earnings history and earnings-related data on RPM International (RPM) click here.



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