RPM International Inc.'s (RPM) Q3 2022 Earnings Call Transcript

For the period ending February 28, 2022

April 6, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to RPM International’s Conference Call for the Fiscal 2022 Third Quarter. Today’s call is being recorded. This call is also being webcast and can be accessed live or replayed on the RPM website at www.rpminc.com.

Comments made on this call may include forward-looking statements based on current expectations that involve risks and uncertainties, which could cause actual results to differ materially. For more information on these risks and uncertainties, please review RPM’s reports filed with the SEC.

During this conference call, references may be made to non-GAAP financial measures. To assist you in understanding these non-GAAP terms, RPM has posted reconciliations to the most directly comparable GAAP financial measures on the RPM website.

Following today’s presentation, there will be a question-and-answer session. [Operator Instructions] Please note that only financial analysts will be permitted to ask questions.

At this time, I’d now like to turn the call over to RPM’s Chairman and CEO, Mr. Frank Sullivan, for opening remarks. Please go ahead, sir.

Frank Sullivan

Good morning. Welcome to the RPM International Inc. investor call for our fiscal 2022 third quarter. Joining me on today’s call is Rusty Gordon, RPM’s Vice President and Chief Financial Officer; and Mike Laroche, our Vice President, Controller and Chief Accounting Officer.

I’ll share a broad commentary on our consolidated performance for the quarter, Mike will provide details on our financial results and Rusty will conclude with our formal remarks and our outlook for the fourth quarter of fiscal 2022, after which we’ll take your questions.

Please note that our comments will be on an as adjusted basis and all comparisons are to the third quarter of fiscal 2021 unless otherwise indicated. We provided a supplemental slide presentation to support our comments on this call. It can be accessed in the Presentations and Webcasts section of the RPM website at www.rpminc.com.

For the third quarter of our fiscal 2022 RPM generated record consolidated EBIT and sales despite a difficult comparison to the prior year. These results were driven by our associates worldwide who persevere despite an extremely challenging operating environment, including ongoing raw material and labor shortages, Omicron-related disruptions that were particularly acute in the third quarter, as well as material, wage and freight cost inflation.