RPM International (RPM) 4 Jan 192019 Q2 Earnings call transcript

Company Profile

Participants

Frank Sullivan	Chairman and CEO
Russell Gordon	VP and CFO
Kristine Schulze	Senior Director of Financial Reporting
Steve Byrne	Bank of America Merrill Lynch
John McNulty	BMO Capital Markets
Jason Rogers	Great Lakes Review
Rosemarie Morbelli	Gabelli & Company
Ghansham Panjabi	Robert W. Baird
Arun Viswanathan	RBC Capital Markets
Kevin McCarthy	Vertical Research Partners
Vincent Andrews	Morgan Stanley
Michael Sison	KeyBanc Capital Markets Inc.
Michael Harrison	Seaport Global Securities
Kevin Hocevar	Northcoast Research
Jeff Zekauskas	JPMorgan

Call transcript

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Operator

Good morning and welcome to RPM International's Conference Call for the Fiscal 2019 Second 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 be materially different.

For more information on these risks and uncertainties, please review RPM’s reports filed with the SEC.

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

opening Instructions] Frank Following today's be At Please permitted that to will remarks. the presentation, this be Chairman Sullivan, time, financial will CEO, ask like RPM’s Please to call sir. session. analysts turn ahead, a only to note question-and-answer there for [Operator Mr. questions. I and go would over

Frank Sullivan

Thank you, RPM ended for XXXX Brendan. Good welcome to quarter morning our International the and November second call Inc. XXXX. XX, investor fiscal

our Financial Rusty On answer providing results. and an followed the Officer; will our a Then on year. and broad are Rusty progress with run she'll of of to the today balance we'll and Schulze, through After perspective quarter Chief and be I questions. improvement off call detail the Gordon, our which, Reporting. RPM’s in be provide who’ll for some our kick by more the operating Financial happy Kristine me plan Vice your second by Kristine President Director numbers report outlook and call Senior

of at which to balance balanced various value between sales initiative. Europe, between focus across quarter segments resulted second a growth From foreign Growth roofing, Current reflecting is translation sales our maintaining we of our international our Near MAP XXXX spread which fairly demonstrates grant also experienced was this on year's exchange. also the well of currency sales segments, Dryvit geographic growth obviously growth to a the in We acquisitions, and all three consumer a Growth the X%. of top-line wet was X% Organic disappointing foreign disappointing weather operating acquisition the use. our record quarter. approach initiatives sales. was $X.XXX in temporary. our organic solid segment as exterior include an foreign and Tremco reduced weather while evenly sales For and quarter, we generated billion, and related increase pursue last impact result fall exchange believe with deliberately and organic by strategic X.X% second unfavorable across particularly standpoint, aggravated products of impact most we businesses, our over unfavorable

Our by profit raw the costs once impacted margin was material in quarter again. gross

coming been for businesses have combat that half As the gap level price mentioned raw increases will in fiscal on margins further six last and now and increases, cost on off businesses pressure cost will to quarters. been that the the have rising We consecutive which instituting quarter put increases negotiated the our material be in anticipate that year by instituted our price material our margins, will our been back with of have close months. raw

rein to quarter sales on over control continue quarter. in an improvement expenses points ratio Better of We of basis the during an adjusted SG&A to led cost second year XXX adjusted last to basis. the

improvement operating Growth make we continue to MAP plan, our to progress. Regarding good

terms vendors This we're and and where and and manufacturing supply starting chain moving led forward of manufacturing positions. our quarter the negotiating announced initiatives eliminated consolidate and to center more began additional pricing. closures to XXX five We procurement number plant the we on transition another we're favorable

by fiscal result operations the management. cash a year, our capital improved improved XX%, of from XXXX of During half first direct working

Reporting. the solid bottom to improvement initiative. top-line come line pleased from implement price to our are improving Financial anticipated Director Kristine call I’d we Senior Schulze, MAP to to as experience like growth, to with the over ratio our turn RPM's expect our we results now we to an were cost Growth While raw of benefits margin to disappointing, continue material the and

Kristine Schulze

and Frank everyone. good Thanks, morning,

our During million. onetime other quarter, totaling $XX.X and second we restructuring charges recorded fiscal XXXX

release, related restructuring component consolidation on these as detailed remaining $XX from I operations fiscal MAP second is professional and severance, ERP charges, earnings nearly to review the resulted now to further largest and Growth will adjustments fees our with Of in of to $X associated expenses for our our consolidation basis. adjusted these MAP XXXX our were to million initiative. is an As amount of manufacturing the nearly initiatives. $X quarter related Growth relates million million results

sales acquisitions by last foreign second Organic the $XX.X billion, quarter which $X.XX of currency sales million, second X% increase our up was a year's X.X%, were and translations X%. added During X.X% record over which grew quarter. solid offset a was

Our earnings challenges, investment which new losses, material foreign standard included factors, exchange were of U.S. costs the impacted and a from the dollar. strengthening continued raw impact resulting unfavorable by accounting several

of the As in persisted last with continued we cost anticipated call, we other on quarter. material silicones, continue and while resins, and epoxy quarter's modestly. challenges asphalt, second headwinds acrylic the to cans to packaging rise particular experience significant raw In

However, institute we our narrow to gap successfully continue on the increases to and able were margins. price

and that X.X%. product to contributed million, Sales our organic an in to higher our also X.X% margins. acquisitions unfavorable and slide an in reflecting mix noted segment $XXX Industrial the We contributes additional growth of inbound increased freight X.X%

admixture particularly our account record wettest which affected North performance in X.X%. and quarter. sales soft the the segment approximately despite achieved of coating, currency segment which our American sales, Foreign business, this sealants products. International for half repair on autumn of our providing Industrial by roofing reduced U.S., in corrosion-control business. commercial were benefited second in The This solid concrete and the construction from was impact businesses translation sales,

between and made toward of of costs fairly sales increased exchange EBIT segment In the which growth $XX.X split three organic sales X% on last in unfavorable of the X.X%, On Adjusted second good from evenly progress improvement quarter. X.X% segment, bottom operating progress our announced with million and to initiative foreign by material our impacted X.X%. year’s raw closure plants. in this which growth higher Consumer increased production was results. segment, included line, acquisition the We consolidated

new Foreign POS United the Organic Adjusted by market. segment. in wet largest the penetration, currency aided helped offset was instituted sales performance States, in segment's the was account exceptionally which by $XX.X resulting growth to in weather EBIT quarter first from Consumer increases the million. late margin translation core reduced X.X%. Price sales fill erosion

Organic segment raw year announced improvements, We quarter. translation disasters, of material leading improvements. X.X% manufacturing was by Driving in acquisition natural driven colorants. extends However, Operational had business second year’s during equipment to primarily are manufacturer the be X.X%, working of made resulted as fourth a better segment results one from $XX.X the that below growth EBIT capital impact comparison was the to concrete announced and responded made costs year. continued than a expected Hurricane but of levels contributed coatings, since modestly tough last were well, foreign Also, segment year to acquisition a facility product additional restoration quarter. challenge. the Harvey began from quarter that continued as be line was organic we which unfavorable coatings the prior while of forms Specialty September last our pace. a to manufacturing recent million the sales and grew this the for progress growth during by second of Dryvit elevated fluorescent sales, Performance closure currency Nudura, X.X% X.X%. facility. strong a closure brisk during wood businesses of to our This insulated with growth offerings. this our at it in one Specialty MAP powdered providing sales to one. Growth Adjusted was of was

by approximately our By XX, was on redemption, fiscal with utilizing During $X.X a of the some XXXX repurchased dividends to notes XXXX, which going to our mostly being line stock over debt repurchases. neutral XX, November XXXX. XXXX. this our share to remainder have million call outlook $X.X of a through while capital the our our shares, share us diluted in impact performance X.XX% to RPM. senior redeem of cash quarter, for for details related convertible XXXX, in due forward Rusty, stock, November on will combination enabled stockholders now through is reducing XX, our $XX turn to million May by On I'll which the plan the note, of completed we our the return billion and common for count

Russell Gordon

Christine. our margin. remain on We MAP XXX plan, our Thanks, in a targeting executing focused to improvement operating basis improvement Growth, operating point

billion As intent share return in capital XX, XXXX, to through May stockholders $X.X to dividends and a combination our XX, on of repurchases. XXXX by we announced November we

In XX through million addition previously we November approximately mentioned redemptions have to of our stock common bond XXXX. convertible the XX, repurchased

center-led plants, manufacturing quarter of the of of our the manufacturing during completed functions. the we closure transition our actions fiscal second positions and XXX start five announced to procurement include XXXX reduction Additional and

projections segment, terms. and commercial digit our Day. the benefits to optimize expect gas inventory, of regards provided used we mid-single at recovery range, Industrial long-term manufacturing pricing and began oil single-digit from fiscal and we We steady recent to the XX, sales year advertising share range. we market full activity that the segment fiscal it sales also segment, grow outlook sales In product a processes, initiatives on and construction In our forward growth to as anticipate are from assets sales expect number the our implement the low Consumer and to upper November we we tactics in the more maintaining and in single-digit while range in consolidate our negotiate Specialty up resulting new mid XXXX stepped Investor payment in In our reduce Accordingly, placements. to gains support growth market. to for supply XXXX, vendors to our chain favorable moving improve

have remaining FX in in challenge. an our negotiated March fiscal on of February digit this for comment growth be remain and to We will the a implemented range we third which increases year. operating the recently, with XXXX. revenue forward low perspective From look quarter additional mid-single are as should headwinds expectations I to price now scheduled

We seeing later accounting anticipated February on in is year's million and last will securities categories are sales And expect gains goals were approximately share the industry impact a the we on flow of the per quarter unrealized larger be front reached. $X.X incentive important one, of $X.X to prior These early anticipate when FIFO raw our on in for as a which to and approximately of result period items items securities, of the the versus purchasing current days ended be following; lower clear the negative which targeted items $X $X for to marketable reported earnings. number under benefit benefits in we Due year. is of rate RPM Number method were case of raw material anticipate compensation our that became year the tax of the million benefits to range accounting the losses an quarter the equity to income from December typically on reflected not equities the While due if see combination certain competitors. last the we different when non-operating it significantly three, two, the in an XXXX. into of in number our would long-term year's inventory, million. third with this to that this XX% XX, XX activities year-over-year tax beginning to basis third LIFO means year now three certain be is than gains earnings are and quarter statement reversed requires million that we earnings during we comparison material third adverse the note softness and market while in are realized it we declines standard, to new a

range expectations of EPS these to items quarter continuing per $X.XX result likely costs share. Taken challenges the to in material $X.XX of non-operating together, are third and raw in

are which future. good early we innings we the prospects making the Although our in has the are restructuring for efforts, us progress of about excited

picture few With I'll work of will the making. call turn associated to that, through the quarters, back initiative continue provide to and a the adjust are Frank. we next the clear progress plan the charges over As to we over we out

Frank Sullivan

year, met spring to Growth Rusty. you, MAP the I'd with off report in agreement with XXXX starting assess two new XXXX the the formed like of do of In Thank a to added XXXX. our October settlement early and accomplished? an XXXX we early What XX. was review a kicked Management. the in perspective, opportunity November plant obviously closures June program From quarter communicated team three Operating MAP closures announced to brief November timeline. full reached announced then We Growth we initiative summer manufacturing Committee five we Program second Growth first communication the of quarter closures investor in have and which and our was directors; an RPM over plant made Elliott design. times leadership the to Improvement the our two A last and second to to plant the five of including on of XXXX. initiative quarter on had to additional Board XXXX in MAP in global fiscal we in

and we strategic addressed an a end terms. vendors believe to have announced We This insourcing had quarter material procurement billion offices. and $X the the of approximately of of of process comment met perspective are nine costs closure $XXX have perspective, of in spend. on pricing make is an completing with $X.X today, By XX I'd we as the like warehouses on plants. addressable represent who nine closure meeting expect with to what addressable also specifics. is the with or discuss and February, second driving From of our some the or approximately billion million related to manufacturing of a spend from a we've raw

top second up couple which A raw include this second and XX% of which quarter these fiscal XX%. the resins were of silicones, to materials up epoxy specifics were of year XX prior the Our are XX%. year year-over-year up quarter

more point and The better happy And X%. in second sequentially we any more have across ever of XX the versus had. the materials specifics, top addressing see take improvements we questions. your first purchasing and costs a be we've timely is to of With quarter, manufacturing categories the data down initiatives. operating also additional than quarter Without those comments, direct that's hands would result our we now our

Operator

Thank you, sir.

Byrne. [Operator session. go America, Steve begin question-and-answer from now Bank the will And ahead. we of Please We Instructions] have

Frank Sullivan

morning, Good Steve.

Steve Byrne

Growth just to from hit your going savings Good seems wanted MAP it whether program not or morning. I target to margin be adequate EBIT see XX% to to cost projected your are in of hit end a a that margin little fiscal margin the is you're right in track that of Is on that like -- XXXX? now. it XX% your bit by still deeper hole to given

Frank Sullivan

Sure.

look he with some be able be As feel to longer for good those we Rusty MAP on we our We do April to back Growth expect way actually be right thing position it's mentioned, call a targets to flow. rearview way in a right to that to term to other provides categories. our detail. keep also in focused communication do detail and do in Once the think commented, I starting the instance able have pretty about been We'll people And to on handle our to as provide mirror more same actually also manufacturing insights. program. the the completed want to execution

every in track on that we're far so category focusing we're And on.

Steve Byrne

on your of Baltimore one have was investor one but seems useful to into drilling just initiative, all Growth at And your on in well? your different to headquartered merits Is of be on includes the as infrastructure a businesses. potential the the city. wanted these a commercial headquarters hear back all the integration office table just of high down I comment question businesses, event every certainly you Frank is them level And that MAP that that for this to one and of of the in views all

Frank Sullivan

marketing as in it our relates as perspective sales RPM. entrepreneurial to approach that's we're structure for big successful a from and commented, the believers been So we

year that see product I sales not of quarter benefit the organic we development in and activities. is consolidating or and growth this of long-term marketing any generating reflective our force that this think we're do

some new promotions very consolidating groups that progress and focused G&A systems been partners keenly the with you the happy in more accounting have tell we ERP hires that on operations much manufacturing are November of there. can much Alex internal we've with that. the we perspective and and side our four of have progress some terms outlined flip the in we're target on details good April. we very on I in team on that and on again making and the on are XXth into we're with working We'll On and

in have G&A the enthusiasm On side, to same the outside the we terms didn't seem resources. of

number the we So additional firms a other we with opportunities engaged for to help combination area of firm talked and of in an have also us G&A the outsourcing. have to consolidation and

that So we on in accelerate and continuing ways it. both original or we program enhance to are advance the ball the can

Steve Byrne

you. Thank

Operator

we Markets McNulty. John go Please Capital ahead. BMO From have

Frank Sullivan

Good morning, John.

John McNulty

morning. Good taking Frank. Thanks my for Hey, question.

just and $XX the I recovering the catching for the was you and if of And pretty to You that at I raw range. in fall one Wave was spoke the it baskets commodity like Day the I prices through. but kind saves. seen looked commodity XXXX which up whether went here. And somewhere materials raw raw X, guess a was materials XXXX, million to dramatically remember Investor the the where $XX basket pricing scheduled X on we've procurement Wave cycle essentially think know the spell million was of

So, how a years question if kind is couple do are see of look I of may the you think you looking originally of earlier now that expected. in you at guess, right your like of than what materials much raw terms commodities

Frank Sullivan

to I get which Wave it when from over the would is to a which $XX a ago, end was $XX back million to we would So we now the the as a still million that X, to refer number highlighted $XX minute hit. is we're there between year-over-year May ultimately and and believe Growth really MAP that how And and pretty of procurement I getting to cycle significantly. XX, approach initiative different say to as we of recovery hit agnostic we're X approximately to and million pretty what savings I made guess, Wave commodity XXXX. would comments just be it highlighted much can

XX highlighted the top in relative to we were last his year top increase and materials materials extreme material not year. up are the Rusty XX facing outlook, quarter expect Second as third going X%. a That's significant going couple down quarter the third highlighted of raw XX%. this examples, we're be year-over-year sequentially a I the still to to quarter

whether up are are dynamics be and some other softening direction. commodity propylene We are That right are or as Wave categories things seeing or certain There had other suggests some improvements categories. the we should underlying what oil certainly moving in still certainly going cycle the prices in that the coming before X. it's

So we data on what ought the the commodity cycle anyways. entire to improvements procurement the to track and also to from benefit benefit to be We're internally in industry. changes coming be with working between difference relationship able those structural would

John McNulty

thanks for light at terms some it, I'm the I all? of know the there? full was under and guess on energy demand you'd color. the areas for been that if on in of any guidance pressure, there's for year Got may hope market -- kind you to what seasonally right I was but the now, what I there you guess it's quarter the coming on trends where guess in you're has indicated change seeing with some And side, there wondering there sales one And the markets what give as know I be you're update industrial you an guess I us a I then seeing in of can

Frank Sullivan

I whether the a relating, second both cladding whether in of results disappointment in is again think very wet drive weak fall. our been had all has a which was terms exterior which related it, quarter Tremco that business, industrial strong very roofing lot business biggest Yes, was of our

I'm related Europe, terms said of negatively coatings I seems that revenue We particular of organic you that to based more and obviously the which real that's corrosion-control But also exterior weather sure in temporary. exceeded disappointment we solid Industrial -- think a categories on the in in floor of think impacted, when in our categories we as in saw was not segment. Consumer some too growth for together, is temporary. slowing be The area challenging weakness. international coatings, I construction products our of down kind challenges us and all international, which average that the put some segment that lot had weather in

good subsequent the about material increases pretty we about are we as good cost pretty that, executed. the raw making and So feel progress and feel we're quarters price between

John McNulty

as know just Great. I along? just progressing? give question And I a that's to that's can curious then update the seasonally on last Home guess, one rollout, relatively how you but Depot us be moving period, week it's how an Again,

Frank Sullivan

weather across most of away I that take belief the that's has all in consumer of a year categories relatively Sure, of been some lot there's been we're think flat related.

We finishes the up category. in continue market to and wood some pick share interior stains

expectations. exceeding expectations, of we're couple well ahead our are that the replaced. We our regions, brand of we in we're exceeding And a customer's

to great So that a start. program off is

that categories relates pricing underway. some price commitments reviews it review some as new those negotiations As with we came had in category were to line will spring, the know across our from pickups, major new pursuing those us call all all wins which and folks pickups of certain categories increases That category price and this line are of analyzed. precluded on happen some or until appropriate

John McNulty

color. for the much Great, thanks very

Frank Sullivan

Thank you.

Operator

Rogers. From Great Jason have ahead. go Please Review, Lakes we

Jason Rogers

and expectation the Would going forward? quantify you benefit you increase Yes. be experienced price quarter able the to in the

Frank Sullivan

About on the a quarter think you'll I quarters. and the see and X%. coming X% in growing same the bit little

Jason Rogers

progress perhaps there? consolidation your discuss ERP with for the implementation And I in interested the could was you timeline and

Frank Sullivan

don't think until our the of MAP Growth I Yes, programs. completed to that we'll end have

of XXXX spring into or looking XXXX. the you're of even So December

we group. because where construction consumer categories did -- path four and We're people in XXX steady then So that specialty in we have so core chose SAP, and are Microsoft products SAP performance fiscal did we D by those, systems are we coatings The our and to. our with Bond solid LN very our comfortable of the consolidating end XXXX year. progress, making the in

really slow progress. it's so And

smaller by represent be end the operations. will the with completed what We neighborhood of of be XX% international think XXXX revenues. of will somewhere the XX% our December substantially to I should in tailors

Jason Rogers

this, very implementing All early be at the performance daily but that's were feedback on early too wondered you ask plants. I if right, helpful. standards to getting you're And any may then the

Frank Sullivan

Absolutely.

mention relates that the exceed is that, us November side and the we are operating access incredibly had the seeing the the and what metrics businesses are the than improvement leadership fit metrics. as I We that one to and -- plant across plant are events and laid from are we second we to progress floor are and measuring XX benefits we of of it closures have what which plants. to measuring And XXth, through and last improvement. about, had consistent accurate program that we hands. And consolidation operating our our by we month instituting are In improvement we aside are quarter. are of continuous across and manufacturing our in plant more events, data talked month the instituting meet will is that or helpful. that are the side on quarter we we've It's it relates more largest we ever the three thing call the we those real performance we more our next and and that's procurement focused timely we're to current doing makes in marching be improvement comfortable plants we targets plants and as the will both I'd And out at

Jason Rogers

amount an could as in I fiscal you a squeeze just for If share for fiscal target question, XXXX for right. CapEx estimate of XXXX? a All have as well numbers if repurchase

Frank Sullivan

our XXs I'd expect to is XX. November for a low that this today. the in be a and year. up the to are we we forth last return flat repurchase it committed capital would hesitant fiscal much of of in repurchase I And but to put So And stock where out to of were share be stock targets terms of put target, to mid we repurchases, we'll very XXXX certainly I over think slightly be our the

Jason Rogers

right, much. All thanks very

Frank Sullivan

you. Thank

Operator

go From Rosemarie Gabelli have & Company Morbelli. Please we ahead.

Rosemarie Morbelli

everyone. I Thank you through wondering on Frank, into outside a if or kind have project, growth that it you. if are the disruptive. you operations, of of morning, be MAP you result your has disruption assuming going than weather your some as would are resulted impact. which I'm Good seeing to anticipated was

Frank Sullivan

we're sales front. on Yes, aware I'm the not that seeing disruption

some think areas some we've is realized. we're instance that doing than there Europe, a bigger some for work reorganization, were got do in we where I couple perhaps to and where opportunities

right so areas we've disruptive this revenue so And had the leaders across continuing we're right And that to certainly to I moving can RPM. think changes in be leadership get we're we in and in But the is some for be certain focused. general, and the places see program that can properly enthusiasm pretty solid growth.

Rosemarie Morbelli

feeling offset what it? most give doing us for feel are and impact expressed you which of to Okay. new XX. steps versus And those can Any the a looking at November Europe on have areas you better down, slowing you are

Frank Sullivan

of pretty seeing the universal. We're it Europe think all in slowdown our is I business almost categories. across

relatively and quarter have what expect happening get manufacturing number the in U.S. and to us balance including would work in of weather impact talk that in the feel executed think But we is hindsight pretty the growth we is related see Europe of I in is temporary. second year. And beyond flat we'll a the that, for be unlike So revenues on again G&A areas some in I Europe terms operations in a RPM. more consolidation realized intense and we as also some across in in focus the position detail. of to things a

Rosemarie Morbelli

last one if may I one. you. Thank And ask

are your costs price achieve increases? that As you do coming down, can raw material still think you

Frank Sullivan

consumer component up in XX%. there. They were the like critical as down some for softening, coming up are continues quarter. is prices DAF the there material Raw Tremco first categories not are instance said, our They're XX% DIY which silicone, materials I in certain raw those and year-over-year issues second be and in for quarter business X% our business to versus a capacity

some in issues. real areas, today some So other or packaging the and packaging see steel in continuing a is to related situation some rigid packaging price raw particularly mixed we're areas material improvement bag. There's to but

So it's really category a mixed by it category. bag of and is volatility

a And of areas number and increases XX to so we're and we across price try continuing there a that. And where key a is manage period. been one dealing month silicone are with have multiple

Rosemarie Morbelli

you. thank Okay,

Operator

And the we ahead. go Mitch have Frank line. Please on

Frank Sullivan

Good morning, Frank.

Unidentified Analyst

franchise And Frank. off on QB. first morning, congratulations finding a Good

Frank Sullivan

Yes, thank We're much. you Cleveland fans Browns Ohio. happy in very

Unidentified Analyst

Absolutely.

Sorry.

Frank Sullivan

to next come visit you we game a say going Just welcome to year.

Unidentified Analyst

the bit guys very definitely and late at quarter in you I the It obviously pretty fiscal the anything in laid quarter a guys or where negatively that November that the Growth. Hey, here. may was after the obviously miss well an to the schedule. and I thought quarter wondering closed look late Investor happened MAP came impacted during was? consensus out you happened the went I good have there that late I such results than second will in earnings will. of quarter a in XXth, was Day lighter

Frank Sullivan

second anyone was that have. one, part No, other decided of two of coming I'll volatility was year tell in or mistake reason. the for changes in that that the Again expense think cards mistake that's of a should the quarter the third reason million there a in and part The was to of we us turnaround was guidance And didn't million else. been in that plan. be to related I or that were that provide I would year-over-year. the we XX% for specific at the simple math not and very in anticipate hasn't -- going not our The think, something provide And consensus it part $XX we was in look suggest when all our to to guidance. hindsight decided charges we internal not was you or all XX% was things relative maybe this up our the quarter tax $XX

a so that. like other And couple items

first us. much for to accounting apparently second of it quarter that banks quarter that a The securities item portion have a in and every the now portfolio marketable the have requirement if like you equity to mark and the was a was change non-event you market

we pre-tax A year was year this is had gain. the dollar gains where portfolios I took a think million of what and a we This XXX% captive challenge terms And most $X attributed recovered know that'll this the the year this million almost a be $X.X than shortfall $XX been a to would so last million X our six better can million I or in wise then of written-off we be impairments in think it impairments. that hit. was EPS or XXXX reversal in had recovery. to more the from insurance And year. quarters a last went we communicate through and item. non-operating in and had by quarter. We of XXXX as of XXXX It of had third end in of you market XXXX is

have Just captive way a our to levels to that, been insurance insurance. on some very smart manage certain color companies give for us of

record only mark-to-market, if million you tax historically realized Our no to that total This million equity. consequences. actually it's is realized $XXX case, not if portfolio In that $XX losses. a mark you there's this gain market a it loss, or would about but is to or has component gains of

we're hide off question. last reason market issues. we'll explain that alone answers from hopefully is your why and that so that year. EPS below And And separate that and the That item our

provide to I certainly in at the numbers maybe on us And mistake our think feel progress happened people quarter in that’s we or we would quarter in the good quarter out third was the nothing think about couple quarter I in initiative, and looking with a the and in Growth making the sense. and differently that guided happen have I progress hindsight as guidance, good will third the coming and and what's MAP at us, it our second think makes makes projections change we're peers looking second actually reasons, a making for not that XXth. that in there's November to we're outlined our

Unidentified Analyst

commentary negative sort Thank you regarding That's And you'd the color weather impact. lot of was of there. extremely thought for a of kind And helpful. you so was temporary impact. the that indicated that much a there

comes we some Is how a thinking in that we quarter the make regard recovery spring for about? when, you're fiscal should pent-up of about thinking kind be demand. event, a up around So fourth and that as

Frank Sullivan

been not with year, There's I painting a the of categories. if in issues of the very suspect it's that couple highlight areas year. our dealing it's the that not We've segment will. been a the for been upside, painting will in other unique us, last most you possible fall weather to Consumer folks good wet exterior for

spring consumer that. you'll pent-up businesses a have in so there's we think of and I lot see reasonable the if demand a

I strong backlog Tremco growth in think potential a coatings, got roofing good we've there. the restoration continued there's

will there's our roofing And But the be been in upside of impacts nice our of have some systems and related and products, tell. time to the that so products consumer construction terms negative it'd temporary. indication that weather our every of lot Dryvit a see products

Unidentified Analyst

Thanks helpful. Frank. so much, Very

Frank Sullivan

you Thank

Operator

From have ahead. we Please go Baird, Panjabi. Ghansham

Frank Sullivan

Good Ghansham. morning,

Ghansham Panjabi

you. Hi, everyone. Good to Year morning. Happy New

Frank Sullivan

Happy New Year.

Ghansham Panjabi

to seeing a as did? I well. the how Frank do with industrial weakness down deceleration that'll of and a through are from we us given in regions prices guess Europe quarter as actually sequential overseas to industrial exactly weather? of some On the the standpoint? year-over-year Frank. other from some back in think And should Thanks, in you new there exposure and markets, give volume thinking expect be or sort Mitch’s, recovery you just of then going offset the what sense energy Thanks. in Can question the you Europe? Was a

Frank Sullivan

Sure.

in to was Latin that flat. continues And challenged disappointing, as our Europe acquisitions, excluding Industrial be was well. segment, the America So

to a earlier those We And whole highlighted drive I some are organic lot two X%. organic helps right significant as don't the most growth obviously regionally for the for of there us America. of see solid. Europe strong that be strength elements pretty America real segment North up is so And in growth areas now. about continue outside North of

don't as relative than in tell, things to there's we the can second program. far MAP to half big disaster, driver any that year, the of other be of to the And Growth it's so not performance a as improved going drive our think but I we would

Ghansham Panjabi

your And think then cost, to just quarter for that price from going just The it price pricing. did Got on and focusing purely kind of thought question to where raw come in back it. second my you cost, would relative vantage about your then And basis? point initial expectations? what reasonable to businesses year-over-year second margin our consolidated during parity a the on kind of is materials

Frank Sullivan

in that's that's I and I Consumer our been in packaging but raw big true mentioned think So segment, price increases Specialty headway other the certain and segment. cost making of it's it, terms our our part Industrial in we're in a silicone not segment and of material been categories.

more of by So last that and spring. good is and like eased there partisan have up some we're more price as continuing annualized. across the along I earlier are make there's mentioned our line we have to silicone [ph] units. some entirety this wins commitments But review because more that came which now would our year, segment And consumer in base make customer categories relationship tilted also segment progress expect that to on Consumer packaging not progress towards intensive are and others we to with

April also to be in a they than my up provide to our results we'll because accurate see see we've you difference better benefits position more have in raw of data our show those a are. of and later of fingertips to past. I FIFO materials we're larger They between in LIFO data And think to that accounting. starting tell starting better ease what our because the at at our able will than and had some structural in will the more competitors in today be the changes. somewhat level and But we'll certainly we we're

Ghansham Panjabi

you and Thank wishes much, best terrific. so for Frank year. Okay, the

Frank Sullivan

you. thank Ghansham,

Operator

From Arun RBC Please Capital go ahead Viswanathan. Markets, we have

Arun Viswanathan

morning, Good thanks. Great, guys.

your them there guess, where those of relative results some that just those Just you I'm costs also there did curious or that the hurt extra on potentially is wanted to understand extra I And that kind was guys front expected softness? margin you guess in margins? expectations, incurred come to on industrial, I then some

Frank Sullivan

our on to more think disappointment industrial I in the related the revenue was side.

that of experience Industrial weather growth there. the about of of North as is Europe. segment talked as related results our not Some and flat we XX% well in America did items we outside

us. for challenge a was that so And

margin coming in quarters. are good the I our We translational FX places progress internationally largest in side certain making negatively is that'll certainly also on both perspective. exposure us transactional Industrial think again segment. up And impacted in and FX and the our -- show

Arun Viswanathan

see missed that. off the Apologies you I rate so from XX% And understand ups, rate, that then here first just just to tax two quick follow to do it wanted expect if on?

Frank Sullivan

That's correct.

quarter fourth that's we would about and see taxes. third where The

Arun Viswanathan

sales adjust there margin you Do be maintaining some that you to greater be achievable Okay, could of talked in that at would where of growth bit relatively that see less kind result thought little level potentially slowing great. Day you improvement? And as you growth i.e., that was view for secondly, improvement. would the would that maybe and still of that below points Investor that cause then potentially a -- required it about basis or that's margin a XXX

Frank Sullivan

control, we think, quarter growth X% in range. we between X.X% the that or acquisitions And For did, were we we and in the that things I fact see organic as relatively in achievable. the

that think targets we don't expect by are are to through a of minus to marketing be or in but weakening I time Foreign the The that'll market we time acquisition exchange our of But the generate and as of where focused foreign speak sales dollar that and to points. activity will well as anybody's the as we feel a pretty exchange months be direction and possible nose market stock as the see negatively and our stream ability those but plus grindstone that doable. them people to and meaningful, that regular growth the variable quarters. on very the our control. go, be X swings guess impacted over by customers, will knows we coming dollar Who today, good wouldn't we the organic combination our about seems But the keeping tell.

Arun Viswanathan

Got it, thank you.

Frank Sullivan

Thank you.

Operator

McCarthy. Kevin have ahead. we Please Partners Research go Vertical From

Frank Sullivan

Good morning, Kevin.

Kevin McCarthy

Good morning. How are you?

Frank Sullivan

Thank Good. you.

Kevin McCarthy

as Couple reinstated guidance. of questions, earnings you've

some range narrow to a to As very your you move earnings that guess, as of better this you key guidance, top of from now have several just your to level level point at or the fiscal turns And for be are it materially what guidance. the Growth I I'm if with at near-term harder execution? than you might laying that impressed are through bottom. swing worse range that the of I a now on you look $X.XX the to Can the could regard of be as that quarter the your what from you're out irrespective of out comment third factor the know MAP visibility variables earnings? months right predict and materially

Frank Sullivan

that variables and some this, So will that question. be of The related. some be of I think -- the of tired but revenues will people weather will be great

as think to seem certainly there be we which seems to is, far And a that don't a this on I third separated obvious out goes down the year our we exchange also to the We'll pre-tax operating in carve had then that impact settling to million where we So gains out and in basis control. a how pretty variable figure little will from again market. be foreign $X.X shape mentioned good quarter. we bit. Last variable to that but the think so see it's I as it mark will what third the results I core be

Russell Gordon

like More $X.X million.

Frank Sullivan

the it end we’ll millions and up More of stays is. dollars losses certainly some year market like of with of this if level $X.X million where

could be variables, you material revenues our consumer segment, get a third and there. into gets swing separate a particularly variables of to a and really the item of difference shipments Consumer lot pushed non-operating Those that you So will February a we make if that a all weather the January in a consumer ends particularly the sure an the February I in quarter in That's quarter. be means address. in our big think the strong in times are spring get year quarter big fourth lot accounts there third this early specifically a makes a to after weak big February we'll are of

growing think of have we're well I biggest savings then where FX, generate revenues I it I and the from. in. level continuing is So and think might would come variable the very expenses we're And in we restructuring that that's other see pretty to confident down a pinned

Kevin McCarthy

second to you fiscal that That's between impact, how aggregate or really and quarter regard have might with quantified in to impact attempted helpful. consumer? the the have weather industrial the And and quantify split

Frank Sullivan

used weather. the that I product of my were have products exterior disappointing that other products. categories internal consumer results Tremco related top in And than are businesses some don't roofing, off I to plan knowing shortfalls mentioned had three head, the our Kevin, we we and to that of our believe Dryvit those

Kevin McCarthy

one, last I if And may.

that a back year-over-year coming so quarter the looking May to Just the to ahead basis compare you guidance, to position be do positively a you would on feel in as bottom on line.

Frank Sullivan

Yes.

Kevin McCarthy

Very good, much. thanks very

Frank Sullivan

you. Thank

Operator

Andrews. From go ahead. Morgan Please we have Stanley, Vincent

Vincent Andrews

for XQ four up like XQ. that things would guidance, had of to wrong wrong in the quarter extend on you logical then all apparently ahead were comments Frank XQ well. about probably wrong appreciate now and just as terms to and I and I'd question just got including -- that that obviously we've myself Does follow seem XQ we XQ XQ of have Thanks. we

specifically of consensus with comfort for kind number just the your I’m quarter. the about asking So more actual fourth

Frank Sullivan

I the position to now. Yes, don't for a think we're provide in fourth guidance quarter

have we third be position And will provided on reasonable think the on provide into the same the guidance. to will of in then year quarter. fourth we look a next we April call that better type provide think more I as the I we specific guidance quarter then in

like that hindsight all knowing all not level given be right some high not the the As in the us hindsight it But charges did and of restructuring do not the it variabilities certainly and that. help have to would of on we providing to thing seem I mentioned timing guidance.

in mistake we for Certainly were year in what happening be will of its in it year the quarter. think issues was on saw third relative improve. related, was tax but this of quarter. as where was lot I part expectations what math hiccup year And so we to and guidance that the never communication our and last the performance second of and And our a we'll quarter or a its versus communications that industry around third some much

Vincent Andrews

I the and candor appreciate enough Fair that that. on

Just an or -- did that the of November September a a the that well? actually and that issue wet was couple weather, as with follow primarily was October other issue hurricanes ups,

Frank Sullivan

a terms on or got was Tremco great times. to or good on we projects record. It a fall a And of it of and would of work. put the a flow of is off more fall number frustrating business, or that takeaway backlog that -- roofing good delayed order versus just Dryvit measuring again or relative were second was our consumer And more certain in wettest anecdotal We've period all for what And we which are categories thought interrupted lot in it's the a mentioned specifically. record exterior same time is on wettest then true and it record a fall exterior frustration was happen the related.

Vincent Andrews

maybe us helpful. would tell last fourth what be headwind And one, think FX you just fourth roughly just or you the quarters the will in if that one Okay. quick third and could third -- be

Frank Sullivan

to to at rate say be it Yes, weaken a would Fed that's that it of a little starting little in percentage dollar than QX. is say, what increases. relative number the stick hard a easing on it's point the points would a X sales would on probably think count I’d was hope I I to model. that, less bit in this but I can you bit that that's off further

And where And quite probably expect. but I it as on is maybe depending won't be what things negative. X% so would -- go

Vincent Andrews

Okay, thanks very much. Appreciate all the comments.

Frank Sullivan

you. Thank

Operator

From Sison. go have KeyBanc ahead. Mike Please we

Michael Sison

Happy guys, Hey New Year.

Frank Sullivan

Mike. you. Thank Hey,

Michael Sison

I see want you maybe some tailwinds earnings fourth quarter think the know for terms as don't of positives give about that specific year-over-year fourth quarter, you'll talk the about guidance, you growth? you of the but can When in to

Frank Sullivan

Sure.

will internal act Growth we've think that be the announcement external. announced internally something this earlier period it's plant an can cases in other on in will to requirements, meaningful first where So the it and some once some quarter we five savings in start just announced as I one We fourth be MAP quickly commented to closures realized. go obviously I have cases quarter [ph]

save dollars. operations of have a -- to So key we vendors having terms end improvements there, and January volume we've work trigger of or the to there's for in many days. more negotiations quarter. been that feel some benefits lot the February. starting consolidation do point in end dates ceased and aren't in XX comfortable XX of good communicating the but But that in The feel the at some terms of of so pricing having fourth with Obviously meaningful you're And we our about instances those. in

marketplace. as secondly some changes for think into our quarter got all of of a There the Consumer was number I year segment activity us gains shook competitive in last the terms disappointing in a positively summer was market That share reasons. very lot and for different a we in months. of early out

the fourth on positively in results well. reflect our that as think And will so, quarter I

those think year-over-year driving principal we I positive as the are quarter. categories see a be what fourth that will

Michael Sison

the areas then up, is Any that still focus any focused for you just be quick going you think couple particularly of over you're environment, to Right. And follow quarters? update acquisition in RPM. core about one on the acquiring talked on a next

Frank Sullivan

and line picked can what expanded what done some particular nice side in exciting called more force sales smaller completed mirror acquisition. a a railcar a And focused start strat category a mole for particularly last that's but We line in a sales They're on another of of a of turning in force up Rust-Oleum for the product a category we've into And if year Rust-Oleum, industrial pockets a consumer. quarter focused growth. terms [ph] relatively people. deals, good that's really completed people technology this that's pretty this line. We with carb that's cleaning We into product the carb product in was on we to we've of and small XXX driving control. And revenues. real a nice area dozen line

more deals we of there we're somewhere $XXX November to the don't find a opportunities But that. XX, deal to and is so flow for million our pretty still any be the out multiple looking what $XXX which bigger working we're I up deals. flow in than to year made is expect deal like And million that. like solid communicated in more hard

Michael Sison

Great, thank you.

Operator

Seaport go Michael Securities Global From Please Harrison. ahead. we have

Michael Harrison

Hey, good morning.

Frank Sullivan

Good morning.

Michael Harrison

compliment contribution the impact pretty looks acquisition not that the the guessing Kind related know you theme the the a does have there, Dryvit exterior did I Nudura was that saw. of but with that quarter. to in I'm that's Nudura sticking mention but from it solid that weather Dryvit,

So Nudura you business? you a just million about of maybe the talk to mentioned potential little revenue understand the performance annual us can and that help bit the quarter contribution in that when $XX acquired you relative

Frank Sullivan

great how around areas Sure, March that related that to and particularly where we opportunity to can you When durability, future as larger relationship form structure It of as Nudura. and was think how concrete insulated is strategy, you concerns And, a energy it part good challenge in. base. and specified how growth at Tremco bullish much drive and changes we're greater effective we the the and promoting in big about a our excited to Nudura, about look typically at opportunities to and areas. category we're get exciting and as And it. got the most efficiency the Nudura We're one code revenue and there of is it we for events promote into very of also look elements audience. is the their product to that products synergy the multiple it -- construction group. be with and amounts. what There -- long about greater real very in good RPM has, are just of would we've building get very opportunities the and Nudura be with get is sealants in we're synergy weather believe they're fit out us our a But

Michael Harrison

consumer it the advertising on mentioned then like also expectations. you but within weighing wondering consumer how that my the just shortfall on least basis? material, And business, margin consumer of the advertising in Right. raw year-over-year the spend the at spend to increasing biggest of lot much was was additional seems A maybe margin kind had a relative

Frank Sullivan

don't a quarter $X Yes, that I is the it's big up know and… about in it difference, million,

Russell Gordon

$XXX,XXX.

Frank Sullivan

$XXX,XXX. no $XXX,XXX,

on restructuring cutting. a the light was up in we're the improvement only and that category cost it's not year-over-year of in that it quarter and up So million $XXX,XXX But a focus it's year. on $X

we're as categories the use we stores people areas the we and in in lot light customers related. coming certain think leader get in promoting we been But to spring it, I we as what's believe takeaway in do have well, to get fact and lot and the disappointing people weather the In into of these of promote need is to a Particularly major continue get to that. consumer work in our a with these of categories. as

Rusty, So was that's $XXX,XXX quarter. an area me, on, that we obviously the have in deliberately not corrected cut up or focused it

quarter. number this a not big So that's

Michael Harrison

count you of one it Rusty, convertible of looks the quarter. that I from just the the until Got quarter. like share convertible for And bond accounting quick for diluted around redeem excluded was for, quarter. share end then the purposes of in But terms it. the a the know didn’t end that Is that correct? counts entire the

Russell Gordon

to including financial because that But Yes, unvested numbers of set we're using on so has as it We're then, set using adjusted count. not in and numbers, method not the EPS benefit share method. get we're quarters. from non-GAAP convert. adjusted redemption the does before treasury redeemed the statements class share a convertible days equity two see in share the And future going the of count, we end. method shares for second did a the the on quarter the lower we the $X.XX we’re as shares the much because quarter in higher count, of set for the it awards GAAP with the include of we're class two because three And

Michael Harrison

to count of using for end we was the ask the And question so the quarter that be better maybe is the should what a QX? share at way diluted

Russell Gordon

the X.X terms in it for about will million down count for of of impact share Yes, QX, be the shares convertible. the

$X.XX. annualized And quarter. would the range it down be then million on the in we for basis $X.XX XXX an So to up should pick

Michael Harrison

Okay, thanks very much.

Operator

ahead. Research From go have Please we Northcoast Kevin Hocevar.

Frank Sullivan

Good morning.

Kevin Hocevar

morning. everybody. Hey, morning good Good

discussion give locked you've in pricing realized? something maybe wondering you it that consumer the On could to all being the agreements pricing February-March it timeframe. like you've the had clarity some if segments, sounds where Just is for you've pricing Is focused is on degree? across that some in

Frank Sullivan

consumer products businesses pricing earlier Sure, in consumer certain across But increases We year. product in base. areas have has as our for happening the a year our line year ago the specialty some expiring competitive price we locked customer in much periods in locked a XX-month new our those a throughout of our reviews are significant in been and this and and in commitments the of where categories we were period. part had And or spring. did

Kevin Hocevar

other just want $X.XX Growth the number sure is a all to charges. and just non-GAAP I MAP EPS, $X.XX to make you. excludes And the that to that restructuring Got

Frank Sullivan

that in exclusive we in Yes, again the the is the report detail third charges will that the of obviously whatever when we'll And quarter. quarter. highlight be

Kevin Hocevar

great. very you much. Thank Okay,

Frank Sullivan

Thank you.

Operator

go we JPMorgan Zekauskas. Please ahead. Jeff From have

Jeff Zekauskas

much. very Thanks

for was taxes these and in also $XX changes tax swing about there flows in of deferred marketable taxes discuss And by positive your deferred cash months realized change six months those the in the million driving the deferred flow. year-over-year. particular? million Can unrealized Your $XX in there what's for a six the year? Are cash for $XX or improved an securities positive And about permanent what you impermanent? million, but was are

Frank Sullivan

what tax adjustment our us income year because tax rate quarter. line big cash in the Last which you're cash would flow, tax year, second call this some for quarter million. legal the project. the of the Jeff, might second big XX% benefits allowed of last get Sure. a And line entity use remember only project to And of last to $XX our some the on realignment in on was of you impact non-tax year, deferred number that's seeing an above I really net up

by impacted that result basically that where of that's our a tax amount were to a foreign resulted we able improved from So of utilization reserve item specific large flip of as APBXX that. credits

marketable year question that. Your this securities a in change we on line. the are showing next was And

million. We capitalized. cash we've get our flow. companies, year of $XX we're over use this cash captive because was positive able mentioned net Frank actually of a insurance our which our in have marketable a to proceeds captives from been That from move to able And for result before bit sales securities were a as operations

the at the activity rebalance our lines we more prior look investment each you portfolio. quarter normal securities year that's on If marketable as

Jeff Zekauskas

in why tax about XX% And for to XX% now the third reasonable in in was think the you're rate is be your So rate tax it's your why quarter. bit. little tax or rate XXXX a a I plus quarter. more talking Like minus closer XX% understand high. for of theory that this that I forecast don't shouldn't a so

Russell Gordon

U.S. the statutory The XX% rate. is actually

Jeff Zekauskas

Exactly….

Frank Sullivan

for the of of a is or time tax will likely business quarter-by-quarter States. The and because foreign the that with favorably first meaningfully the now than of it's jurisdictional higher be so jurisdictional mix most operations the our rate, outside combination ever tax of United better rate mix a third U.S.

So up other end tax U.S. world would rate, us which developed years below for highest rate in past where actual is unlike the least statutory in you was the companies and somewhat the an at world. the

likely to higher you're Now tax see a rate.

Russell Gordon

have also the of Federal taxes too we XX%. of top state included And on

Frank Sullivan

the part than But because we jurisdictional foreign the and rates tax of U.S. our income of higher up biggest where is. now average rate the our tax tend to and

the of that enjoying. we're I benefit So all that's think reform tax

Jeff Zekauskas

are tax high your jurisdictions? What rate

Frank Sullivan

now. of the the right we the United head which my of top in world. in outside answer every that can't developing States country do off can tell you I business almost But I it's

Jeff Zekauskas

much. great. Okay, Thank so you

Operator

go ahead. Please from From Lakes Rogers. up follow Jason Review have we a Great

Jason Rogers

reduction quick X.X diluted second count follow-up. you share XXX the Appreciate, million Rusty. the not quarter the around the why that then third? the a taking had one If $XXX.X I count share for in million the a million from in convertible share should did and was be just include

Russell Gordon

It because on either earnings the or depends the that’s know the don't the we treasury are during method the what could Christine would depend quarter. dilutive one that for pick NI on Yes, third we use sure earnings. the X-class We method. most right, so

but shares X.X count to be and there's we share that we’ve that used you redeemed So shares for season on, diluted we'll in be the and million due treasury uncertain of can sure tell we're not under low We're a method there. exactly earnings bit to the just is which quarter the aren't those nature a sure third the point. our at method

Jason Rogers

Okay, you. thank

Frank Sullivan

welcome. You're

Operator

Morbelli. From go a have from Please ahead. Gabelli we Rosemarie & Company, follow-up

Rosemarie Morbelli

This Thank you. is for Rusty.

long As volatility numbers your to the the it that not of as mark is basis volatility at regarding the take much on it to market so portfolio, operations to eliminating of at all of adjust an apples securities we item. why of so possible is look apples the there out

Frank Sullivan

adjustment third and to and with carve work and our It’s how what the that we to. of it just minuses on aspire we results. certainly permanent work out item a quarter then would that auditors to operating in it do and non-operating make We and need so that's a be we and our address pluses will it'll

Rosemarie Morbelli

assuming impact And the no that on it's it has we I basis. quarter, there a item Okay, was the thanks per I what rate -- tax share your the second is corporate idea at assuming what am and Frank. have if look I'm is of not that impact a rate. on it

Frank Sullivan

gain EPS the in or were the accounting recognize losses. is and part being your line insurance the past year-over-year item I realized and to a -- That's or you captive It’s to you companies to that flat of and they you loss again as the alone things if difference $X.XX on meet where the would quarter. in was why mentioned aggravating that offset reg have between liquidate insurance the would only manage gains like needs

to mark you because tax but not not Now deductible. realized they're market, they're

until sell an have and unrealized $X million those And tax so you deductible realized hit, actually securities if have actually an effectively it's you not loss.

So your really of whammy line. it's in bottom double terms a

in we're and to way future to periods. it carve address work appropriate figure again, out it to out So the then going results our of

Rosemarie Morbelli

properly, the sure from you of making I second reported have this get $X.XX $X.XX just instead operations So adjusted then would in quarter?

Frank Sullivan

looking of simplistic at I way think it. the that's

right. I think that's

Rosemarie Morbelli

kind that to the in you the that Yes, impact item at numbers? quarter And I from like do $X.XX have $X.XX, incorporated in an simple. looking third some those of particular

Frank Sullivan

down gains between end close a up negative on points items year-over-year know or won't between about and million in the stock $X somewhere the we and quarter this until have we year But the points anticipated now a whether realized the X,XXX in between. market impact Yes, and the an basis prior we year. the the actual number is or in loss we quarter X,XXX those of

Rosemarie Morbelli

thank you. Okay,

Operator

you. Thank

will it to back closing for We now Sullivan turn Frank remarks.

Frank Sullivan

a Call. drive New you our Year and to XXXX have great talking execute appreciate Thank environment. to of Thank months commitment a the call more progress competitive look Thanks. Growth Happy the Happy importantly, solid many to questions as and everybody we growth to valuable, our coming April I'd participation Thank continue Brandon. your today. Year generate the more you you, your Investor around New our your very like and continuing to in will associates challenging Most RPM in they’re you, RPM. much for and a MAP forward world we to also our in we all to updating and day. in on thank

Operator

this Thank today's Thank for you. concludes conference. joining. gentlemen, and Ladies you

may now You disconnect.

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