In This Story
RPM International Inc. (RPM+0.41%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing details RPM's financial performance, including net sales of $1,845.3 million for the second quarter, a 3% increase from the previous year. The increase in sales is attributed to organic growth and acquisitions, partially offset by foreign currency impacts.
Gross profit margin for the quarter was 41.4%, slightly down from 41.7% in the same period last year. This decline is primarily due to unfavorable sales mix and labor inflation, despite savings from restructuring initiatives.
Selling, General, and Administrative (SG&A) expenses increased to $529.8 million, representing 28.7% of net sales, compared to 29.2% in the prior year. The increase was driven by higher bad debt expenses, professional fees, and merit increases.
The company recorded restructuring charges of $7.6 million related to its Margin Achievement Plan 2025, aimed at improving margins through process streamlining and efficiency improvements.
Net income for the quarter was $183.5 million, compared to $145.8 million in the prior year. The effective income tax rate for the quarter was 13.9%, reflecting adjustments to deferred income taxes.
Cash provided by operating activities was $527.5 million for the first six months of fiscal 2025, down from $767.8 million in the prior year, primarily due to changes in working capital.
The company repurchased 134,731 shares of its common stock during the quarter at an average price of $135.47 per share, as part of its ongoing stock repurchase program.
RPM's liquidity, including cash and cash equivalents and available credit, stood at $1.50 billion as of November 30, 2024.
The filing also discusses RPM's compliance with financial covenants under its revolving credit facility and details about its accounts receivable securitization program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the RPM International Inc. quarterly 10-Q report dated January 7, 2025. To report an error, please email earnings@qz.com.