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 RPM Reports Record Results for Fiscal 2018 First Quarter
   Wednesday, October 04, 2017 6:45:00 AM ET

--Net income up 3%

--Full-year EPS guidance maintained

RPM International Inc. (RPM ) today reported record sales, net income and earnings per diluted share for its fiscal 2018 first quarter ended August 31, 2017, despite continued strong headwinds from rising raw material costs.

First-Quarter Results

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.

"We derived significant benefits from the nine acquisitions made in fiscal 2017, along with our selling, general and administrative (SG&A) cost reduction actions taken last year. Rising raw material costs negatively impacted gross profit margins. As a result, we instituted price increases, which began to take effect late in the quarter. After three years of foreign currency headwinds attributable to the strengthening U.S. dollar, currency translation was essentially neutral this quarter," stated Frank C. Sullivan, RPM chairman and chief executive officer.

First-Quarter Segment Sales and Earnings

The company’s 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.

"Our industrial segment results reflect a combination of higher raw material costs, unfavorable product mix, higher distribution expense and disappointing results from a struggling Latin America. Our European and Canadian businesses performed very well in the quarter. North American commercial construction markets, which have bolstered the industrial segment’s performance over the past several years, have become a bit choppy, with some areas performing well and others showing weakness. Our businesses serving the oil and gas industries were down in the mid-single digits, compared to double-digit declines over the past three years. We expect sales at those businesses to turn positive in the second half of this fiscal year," stated Sullivan.

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.

"Our growth in consumer is being driven by Touch n’ Foam and SPS, both of which were acquired in the third quarter of fiscal 2017. Even though the residential housing market remains solid, overall organic growth in the U.S. paint category, across the industry, has been softer over the last couple of quarters," stated Sullivan.

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.

"Many of our specialty business units had solid performance in the quarter, led by a surge at our restoration equipment unit, which was partially due to immediate response efforts to Hurricane Harvey. Our powder coatings, wood finishes and wood preservatives businesses also performed well in the quarter. The segment was able to more than offset higher raw material costs through SG&A savings resulting from actions taken in the prior fiscal year," Sullivan stated.

Cash Flow and Financial Position

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.

Business Outlook

"Sales during the first quarter were in line with our expectations and revenue growth was very balanced across all three segments. We believe 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. Our price increase actions should offset a large portion of the raw material increases. Additionally, we continue to incur expenses relating to the ongoing integration of Flowcrete and Euclid into the newly formed Euclid Group. We are also 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 our businesses, our sales growth guidance for the balance of fiscal 2018 in our industrial and consumer segments is in the mid-single-digit range and specialty in the low- to mid-single-digit range. We are maintaining our full-year EPS guidance of $2.85 to $2.95 per diluted share," stated Sullivan.

Webcast and Conference Call Information

Management will host a conference call to discuss the quarter’s results beginning at 10:00 a.m. EDT today. The call can be accessed by dialing 888-771-4371 or 847-585-4405 for international callers. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode. The call may also be accessed via the RPM website at www.RPMinc.com.

For those unable to listen to the live call, a replay will be available from approximately 12:30 p.m. EDT on October 4, 2017 until 11:59 p.m. EDT on October 11, 2017. The replay can be accessed by dialing 888-843-7419 or 630-652-3042 for international callers. The access code is 45605381. The call also will be available both live and for replay, and as a written transcript, via the RPM web site at www.RPMinc.com.

About RPM

RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services across three segments. RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and other construction chemicals. Industrial companies include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Euclid Chemical and RPM Belgium Vandex. RPM’s consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Rust-Oleum, DAP, Zinsser, Varathane and Testors. RPM’s specialty products include industrial cleaners, colorants, exterior finishes, specialty OEM coatings, edible coatings, restoration services equipment and specialty glazes for the pharmaceutical and food industries. Specialty segment companies include Day-Glo, Dryvit, RPM Wood Finishes, Mantrose-Haeuser, Legend Brands, Kop-Coat and TCI. Additional details can be found at www.rpminc.com and by following RPM on Twitter at www.twitter.com/RPMintl.

For more information, contact Barry M. Slifstein, vice president - investor relations, at 330-273-5090 or bslifstein@rpminc.com.

Use of Non-GAAP Financial Information

To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States ("GAAP") in this earnings release, we use EBIT, a non-GAAP financial measure. EBIT is defined as earnings (loss) before interest and taxes. 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, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest 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. See the financial statement section of this earnings release for a reconciliation of EBIT to income before income taxes.

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 markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals 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) risks related to the adequacy of our contingent liability reserves; and (j) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2017, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

 
CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT PER SHARE DATA
(Unaudited)
                                                                                                                            
                                                                                                                                                                                                                             
                                                                                                                                                                                                                             
                                                                                                                                                                                                                             
                                                                                                                                                                                              Three Months Ended
                                                                                                                                                                                                  August 31,
                                                                                                                              --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                      2017                                                                                          2016
                                                                                                                              ----------------------------------------------------                                          ----------------------------------------------------
                                                                                                                                                                                                                             
Net Sales                                                                                                                                        $ 1,345,394                                                                                   $ 1,252,063
Cost of sales                                                                                                                     773,386                                                 700,021  
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
Gross profit                                                                                                                                         572,008                                                                                       552,042
Selling, general & administrative expenses                                                                                                           394,409                                                                                       384,085
Interest expense                                                                                                                                      26,773                                                                                        22,778
Investment (income), net                                                                                                                              (4,453 )                                                                                      (3,838 )
Other (income) expense, net                                                                                                            (5 )                                                                      542  
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
Income before income taxes                                                                                                                           155,284                                                                                       148,475
Provision for income taxes                                                                                                         38,381                                                  35,081  
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
Net income                                                                                                                                           116,903                                                                                       113,394
Less: Net income attributable to noncontrolling interests                                                                             487                                                     625  
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
Net income attributable to RPM International Inc. Stockholders                                                                                   $   116,416                                                                $   112,769  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                             
Earnings per share of common stock attributable to
   RPM International Inc. Stockholders:
Basic                                                                                                                                            $      0.87                                                                $      0.85  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
Diluted                                                                                                                                          $      0.86                                                                $      0.83  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                             
Average shares of common stock outstanding - basic                                                                                131,236                                                 130,600  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
Average shares of common stock outstanding - diluted                                                                              135,720                                                 135,241  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                             
                                                                                                                                                                                                                             
                                                                                                                                                                                                                             
SUPPLEMENTAL SEGMENT INFORMATION
IN THOUSANDS
(Unaudited)
                                                                                                                                                                                                                             
                                                                                                                                                                                                                             
                                                                                                                                                                                              Three Months Ended
                                                                                                                                                                                                  August 31,
                                                                                                                              --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                      2017                                                                                          2016
                                                                                                                              ----------------------------------------------------                                          ----------------------------------------------------
Net Sales:
   Industrial Segment                                                                                                                            $   729,768                                                                                   $   675,840
   Consumer Segment                                                                                                                                  427,144                                                                                       399,887
   Specialty Segment                                                                                                              188,482                                                 176,336  
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total                                                                                                                                      $ 1,345,394                                                                $ 1,252,063  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                             
Income Before Income Taxes (a):
   Industrial Segment
      Income Before Income Taxes (a)                                                                                                             $    88,902                                                                                   $    89,266
      Interest (Expense), Net (b)                                                                                                  (2,554 )                                                                   (1,837 )
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
      EBIT (c)                                                                                                                                   $    91,456                                                                $    91,103  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
   Consumer Segment
      Income Before Income Taxes (a)                                                                                                             $    72,368                                                                                   $    70,088
      Interest (Expense), Net (b)                                                                                                    (196 )                                                                       (3 )
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
      EBIT (c)                                                                                                                                   $    72,564                                                                $    70,091  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
   Specialty Segment
      Income Before Income Taxes (a)                                                                                                             $    33,167                                                                                   $    30,504
      Interest Income, Net (b)                                                                                                        120                                                     153  
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
      EBIT (c)                                                                                                                                   $    33,047                                                                $    30,351  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
   Corporate/Other
      (Expense) Before Income Taxes (a)                                                                                                          $   (39,153 )                                                                                 $   (41,383 )
      Interest (Expense), Net (b)                                                                                                 (19,690 )                                                                  (17,253 )
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
      EBIT (c)                                                                                                                                   $   (19,463 )                                                                                 $   (24,130 )
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
      Consolidated
         Income Before Income Taxes (a)                                                                                                          $   155,284                                                                                   $   148,475
         Interest (Expense), Net (b)                                                                                              (22,320 )                                                                  (18,940 )
                                                                                                                              -------------------- --------- --------------------                                           -------------------- --------- --------------------
         EBIT (c)                                                                                                                                $   177,604                                                                $   167,415  
                                                                                                                              ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                                                            
(a)   The presentation includes a reconciliation of Income (Loss) Before
                         Income Taxes, a measure defined by Generally Accepted Accounting
                         Principles in the United States (GAAP), to EBIT.
(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. 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, income before income taxes as
                         determined in accordance with GAAP, since EBIT omits the impact of
                         interest 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.
                          
                                                                                                                                                                                
CONSOLIDATED BALANCE SHEETS
IN THOUSANDS
(Unaudited)
                                                                                                                                                                                                                                                                                                                       
                                                                                                                                             August 31, 2017                                                                               August 31, 2016                                                                                May 31, 2017
                                                                                                                          ----------------------------------------------------                                          ----------------------------------------------------                                          ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                       
Assets
Current Assets
      Cash and cash equivalents                                                                                                              $   236,191                                                                                   $   194,470                                                                                   $   350,497
      Trade accounts receivable                                                                                           1,060,147                                                                                     960,575                                                                                       1,039,468
      Allowance for doubtful accounts                                                                                     (45,063)                                                                                      (27,940)                                                                                      (44,138)
                                                                                                                          -------------------------------------------------                                             -------------------------------------------------                                             -------------------------------------------------
      Net trade accounts receivable                                                                                                            1,015,084                                                                                       932,635                                                                                       995,330
      Inventories                                                                                                                                851,312                                                                                       728,597                                                                                       788,197
      Prepaid expenses and other current assets                                                                               260,361                                                 239,383                                                 263,412  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total current assets                                                                                                  2,362,948                                               2,095,085                                               2,397,436  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                       
Property, Plant and Equipment, at Cost                                                                                                         1,526,565                                                                                     1,362,075                                                                                     1,484,579
      Allowance for depreciation                                                                                             (770,692 )                                                                 (729,584 )                                                                 (741,893 )
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Property, plant and equipment, net                                                                                      755,873                                                 632,491                                                 742,686  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
Other Assets
      Goodwill                                                                                                                                 1,169,083                                                                                     1,222,659                                                                                     1,143,913
      Other intangible assets, net of amortization                                                                                               587,274                                                                                       563,225                                                                                       573,092
      Deferred income taxes, non-current                                                                                                          22,126                                                                                        20,206                                                                                        19,793
      Other                                                                                                                   211,612                                                 193,233                                                 213,529  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total other assets                                                                                                    1,990,095                                               1,999,323                                               1,950,327  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                       
Total Assets                                                                                                                                 $ 5,108,916                                                                $ 4,726,899                                                                $ 5,090,449  
                                                                                                                          ==================== ========= ====================                                           ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                       
Liabilities and Stockholders’ Equity
Current Liabilities
      Accounts payable                                                                                                                       $   469,954                                                                                   $   430,475                                                                                   $   534,718
      Current portion of long-term debt                                                                                                          254,061                                                                                         4,201                                                                                       253,645
      Accrued compensation and benefits                                                                                                          115,124                                                                                       106,145                                                                                       181,084
      Accrued losses                                                                                                                              26,406                                                                                        32,969                                                                                        31,735
      Other accrued liabilities                                                                                               229,602                                                 309,813                                                 234,212  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total current liabilities                                                                                             1,095,147                                                 883,603                                               1,235,394  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                       
Long-Term Liabilities
      Long-term debt, less current maturities                                                                                                  1,868,229                                                                                     1,652,529                                                                                     1,836,437
      Other long-term liabilities                                                                                                                491,677                                                                                       699,822                                                                                       482,491
      Deferred income taxes                                                                                                    91,660                                                  53,381                                                  97,427  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total long-term liabilities                                                                                           2,451,566                                               2,405,732                                               2,416,355  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
         Total liabilities                                                                                                  3,546,713                                               3,289,335                                               3,651,749  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Commitments and contingencies
Stockholders’ Equity
      Preferred stock; none issued
      Common stock (outstanding 133,537; 133,377; 133,563)                                                                                         1,335                                                                                         1,334                                                                                         1,336
      Paid-in capital                                                                                                                            961,956                                                                                       930,123                                                                                       954,491
      Treasury stock, at cost                                                                                                                   (223,567 )                                                                                    (213,379 )                                                                                    (218,222 )
      Accumulated other comprehensive (loss)                                                                                                    (429,382 )                                                                                    (506,251 )                                                                                    (473,986 )
      Retained earnings                                                                                                     1,248,769                                               1,223,611                                               1,172,442  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
         Total RPM International Inc. stockholders’ equity                                                                                     1,559,111                                                                                     1,435,438                                                                                     1,436,061
      Noncontrolling interest                                                                                                   3,092                                                   2,126                                                   2,639  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
         Total equity                                                                                                       1,562,203                                               1,437,564                                               1,438,700  
                                                                                                                          -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total Liabilities and Stockholders’ Equity                                                                                                   $ 5,108,916                                                                $ 4,726,899                                                                $ 5,090,449  
                                                                                                                          ==================== ========= ====================                                           ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                       
CONSOLIDATED STATEMENTS OF CASH FLOWS
IN THOUSANDS
(Unaudited)
                                                                                                                                                                                                     
                                                                                                                                                                                Three Months Ended
                                                                                                                                                                                    August 31,
                                                                                                                            --------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                   2017                                                                    2016
                                                                                                                            ---------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                     
Cash Flows From Operating Activities:
  Net income                                                                                                                                   $  116,903                                                              $ 113,394
  Adjustments to reconcile net income to net
      cash provided by (used for) operating activities:
        Depreciation                                                                                                                               19,893                                                                 17,679
        Amortization                                                                                                                               11,483                                                                 11,121
        Deferred income taxes                                                                                                                       9,815                                                                   (434 )
        Stock-based compensation expense                                                                                                            7,465                                                                  8,171
        Other non-cash interest expense                                                                                                             1,422                                                                  2,481
        Realized (gain) on sales of marketable securities                                                                                          (2,861 )                                                               (2,584 )
        Other                                                                                                                                        (140 )                                                                   18
  Changes in assets and liabilities, net of effect
      from purchases and sales of businesses:
        Decrease in receivables                                                                                                                     1,646                                                                 28,663
        (Increase) in inventory                                                                                                                   (46,771 )                                                              (42,763 )
        (Increase) in prepaid expenses and other
            current and long-term assets                                                                                                          (10,865 )                                                              (18,206 )
        (Decrease) in accounts payable                                                                                                            (72,688 )                                                              (70,598 )
        (Decrease) in accrued compensation and benefits                                                                                           (69,008 )                                                              (77,738 )
        (Decrease) in accrued losses                                                                                                               (5,765 )                                                               (2,021 )
        Increase in other accrued liabilities                                                                                                      20,147                                                                 38,015
        Other                                                                                                                   (6,765 )                                             1,302  
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
            Cash (Used For) Provided By Operating Activities                                                                   (26,089 )                                             6,500  
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
Cash Flows From Investing Activities:
  Capital expenditures                                                                                                                            (17,533 )                                                              (16,957 )
  Acquisition of businesses, net of cash acquired                                                                                                 (36,169 )                                                              (17,274 )
  Purchase of marketable securities                                                                                                               (56,275 )                                                              (13,099 )
  Proceeds from sales of marketable securities                                                                                                     40,792                                                                 12,602
  Other                                                                                                                            702                              272  
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
            Cash (Used For) Investing Activities                                                                               (68,483 )                                           (34,456 )
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
Cash Flows From Financing Activities:
  Additions to long-term and short-term debt                                                                                                       19,125                                                                 91,669
  Reductions of long-term and short-term debt                                                                                                        (760 )                                                              (76,973 )
  Cash dividends                                                                                                                                  (40,089 )                                                              (36,529 )
  Shares of common stock repurchased and returned for taxes                                                                                        (5,346 )                                                              (17,105 )
  Payments of acquisition-related contingent consideration                                                                                         (3,258 )                                                               (4,033 )
  Other                                                                                                                           (747 )                                              (866 )
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
            Cash (Used For) Financing Activities                                                                               (31,075 )                                           (43,837 )
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                     
Effect of Exchange Rate Changes on Cash and
  Cash Equivalents                                                                                                              11,341                            1,111  
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                     
Net Change in Cash and Cash Equivalents                                                                                                          (114,306 )                                                              (70,682 )
                                                                                                                                                                                                     
Cash and Cash Equivalents at Beginning of Period                                                                               350,497                          265,152  
                                                                                                                            -------------------- -------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                     
Cash and Cash Equivalents at End of Period                                                                                                     $  236,191                                           $ 194,470  
                                                                                                                            ==================== ======== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                  

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20171004005483r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20171004005483/en/

SOURCE: RPM International Inc."> <Property FormalName="PrimaryTwitterHandle" Value="@rpmintl

RPM International Inc. 
Barry M. Slifstein, 330-273-5090 
vice president - investor relations 
bslifstein@rpminc.com.


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