RPM International (RPM) 8 Apr 202020 Q3 Earnings call transcript

Company Profile

Participants

Frank Sullivan	Chairman and Chief Executive Officer
Matt Ratajczak	Vice President, Global Tax and Treasurer
Rusty Gordon	Vice President and Chief Financial Officer
John McNulty	BMO Capital Markets
Frank Mitsch	Fermium Research
Rosemarie Morbelli	G. Research
Steve Byrne	Bank of America
Ghansham Panjabi	Baird
Silke Kueck	JP Morgan
Vincent Andrews	Morgan Stanley
Mike Harrison	Seaport Global Securities
Josh Spector	UBS
Arun Viswanathan	RBC Capital Markets
Kevin McCarthy	Vertical Research
Kevin Hocevar	Northcoast Research

Call transcript

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Operator

Welcome to the RPM International Conference Call for the Fiscal 2020 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 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

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

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

Frank Sullivan

to the ended you, International Good Vanessa. and welcome fiscal quarter Thank call investor third our February RPM for morning Inc. XXXX. XXXX XX,

call Rusty Global Relations and Ratajczak, President me also and the On and Vice functions. our with is today Investor Tax Gordon, RPM's Matt our Officer; Financial are Treasury, Vice of President who Chief heading

we results After our by to managing MAP COVID-XX over discuss I'll how Matt, update call start the quarter through provide program. call quarter XXXX who for Rusty, on followed then our the the and business and walk improvement that, I'll outlook will pandemic, the who operating the through he'll our end. by I'll to fourth be third in year turn Growth an are will detail discussing

call dealing that like to during pandemic, resulting thank you with families’ time. know you and good York this and and your being personal I'd your area. today and our wish New for in City our RPM health in all we investors and of analysts from your professional First, especially continuing disruptions COVID-XX are you lives the from challenging interest on the for

our communities of of our our business protect to members, to been control of and health the success associates to serve the and have customers to virus wellbeing family spread priorities our by continuity and our RPM, operations. At the and their local maintaining support the

it many across commend comes and like they've XX,XXX associates When and these own their health every continue done to of to each our safe for world the their to and around operations. have protocols the work entry embraced all for we've day. and and high them that for social established our symptoms and precautions I'd of screening really priorities Our protecting been to incredible prior facilities cleaning practicing touch aggressively distancing to more our areas, three people taking in have disinfecting COVID-XX in good our weeks. We're keep than facilities hygiene, by families,

protocols the Xth, coronavirus. cases had As have have confirmed cleaned been of affected by XX,XXX people, times cases, at reopen the of quarantined we shutdown informed In have XX of an our employees them facilities disinfected, then locations, down and that appropriate to various shut appropriate enacted our thoroughly these following period. April we affected they all and

our our distribution of hygiene and or any terms and communities, infection disruption. from monitoring reporting we manufacturing health home, the are In of and working associates

Concrobium be needs. operations could are operation examples ambulance air service in disinfected time of are quickly. virus. the free healthcare-first another also and so to that one has help finishes few its and to to Rust-Oleum a sanitizer community, to These responders. case, our how We're fogger In it a bottles responders donating of converting thousands they're of for donated products it's materials our In been first and case, local distillery, hand that the to local to stem responding plastic providing helicopters group the especially and it return wood sourced spread just supplied product to our

global is building to strong suppliers in materials, As economy. having of specialty position that the a RPM pandemic one weather the is and toll of the coatings the world's COVID-XX largest on

for Many of our recession and capital business liquidity. and many flow, are of well-positioned structure and billion repair this relatively in a during We deemed which essential uncertainty used cases activities resistant. are period $X.X are are solid cash in projects, maintenance taking and with are construction, our adjust action products to strong

few world, exceptions, able the with continue to around centers. companies have RPM plants to been a and operate distribution their

American our plants international have exceptions, of while with few are today operational, plants due fact, a government number North all a In been nearly to of our closed mandates.

projects. A large our for remain spending in of a seems essential those American number DIY categories. is to for inflation customers, key homes, and such in more Raw number as potential With retail, cost there considered and their home are DIY of people in currently construction, and hardware increased time moderating North product be open infrastructure, also material activity business. our

diligently and our operations supply distribution work strong customer global chain demand. to associates meet continue Our to remains and

We globe continue the as to operations our situation be proactive around in in the taking evolves. actions

like It I'd momentum program. to gaining our steadily MAP each restructuring Growth has been quarter. discuss to Now,

de-layering This quarter strong different product Restructuring consolidating excellent rationalizing levels activities our no as include and growth, by earnings is enacting bottom-line demonstrated lines. management improvements strong results, and plants, of organic record generation. cash our facilities, at production manufacturing leverage operational

XX SG&A. early in fourth we of the brings closure plants totaling beginning to last realized originally $X two million manufacturing, Growth XX $XX the and to from $XX quarter third the were million, procurement and the savings Versus that basis, a out from in the program. MAP from MAP third for the million year targeted During the quarter, plants Growth at total we on of of came which additional of announced $X incremental our closure consolidated to million quarter which

also our slows the activity, it impacting and ahead, Looking program. pandemic COVID-XX to business economic Growth MAP as is

require some on Limits there temporarily halt be completion ERP virtually, out additional our facilities While required have presence of to travel us our offices. with of improvement some those implementations and particularly our at operating the carried plants can that improvements physical dealing to and access and some activities. are many, a initiatives of manufacturing

from ultimate such, in goals their be our As of out timeline original to will MAP the we terms extending achievement. Growth

point, too a new uncertainty is objectives. reaching date there this our At much set to for

the as can timeline. once see, effectively. conditions, into more our we in results, are executing As again, we people MAP to our clarity very Growth will third our MAP Growth new initiatives gain our business our you markets But quarter on communicate stabilize to and

turn Ratajczak now over our for the call third Matt for quarter. the detailed review results to of a I'll

Matt Ratajczak

Thanks, will Frank, be everyone. adjusted that as basis. comments good an on morning, and my Note

the it $X.XX of sales Acquisitions was billion, consolidated an third sales a net when $X.X the growth each During sales we painting results This X.X% million. compared of $X.X while same of and foreign months headwind million, during the billion winter exchange fiscal our of increase generates that quarter, growth quarter, $XX.X typically because activity solid was the quarter to modest X.X% slow. construction Organic contributed which top-line X.X% generated during million. sales by $X.XX X% or third was during most the or is reduced or falls reported XXXX. year

Adjusted share of increase were per to $X.XX, diluted compared the $X.XX XX.X% quarter. earnings ago in year an the

compared interest up under reported $XX.X third XX.X% adjusted due program. results to were Growth $XX.X excellent million, in to consolidated the taxes, before earnings in our XXXX MAP largely to initiatives fiscal to restructuring EBIT, were Our million quarter. These bottom-line

Our also earnings benefited raw moderating and material from pricing costs.

X% Growth to and our X.X% Group $XX.X X.X% at segments. were Sales strong increased now Turning our Acquisitions Construction primarily or or was organic contributed million. million. in $XXX.X Products million. $X.X to

products Sales concrete was our innovative or roofing generated $X.X sales with by fastest X.X% waterproofing gains million. and the admixtures introduction in share being market currency driven the and below-grade Foreign translation growth new businesses. by growth reduced of

to EBIT million raw third $X.X Products EBIT savings, Adjusted million pricing, adjusted costs, largely Construction of from loss and during Growth segment material year's in improvement This favorable the moderating impact increased was $X.X Map last leverage volume. a of sales to quarter. higher attributed

were Group segment reported growth was in Coatings businesses the Organic in maintenance million. slowed bridge mixed. million, during year's the Performance million $XXX.X $XXX.X Sales our government was from X% Its third highway the in particularly constraints, by were Sales $X.X up budget or last quarter. growth X.X% and we UK.

Continental unit business sharply, coatings operations structure. market grew marine new increased a European its and protective its management share by global driven and However,

last a quarter. $X.X EBIT of Acquisitions X.X% third XX.X% of foreign or Segment added $XX.X while during million $X.X million million. year's a X.X% was headwind $XX.X exchange or to adjusted from increased sales million,

higher of in the Our basis focus Growth as margin initiatives to significant drove and a well service as XXX business rationalization segment. adjusted points improvement margin products on offerings Map EBIT

to patch DIY enabled achieved robust, was home The In complete $XXX.X or consumers increasing repair increased and by was gains quarter. projects. no growth X.X% and share North There $XX.X market and sales fastest were improvement America acquisitions that to sealants, X% million. the more million, our during unseasonably the lines. caulks, in weather impact Organic sales driven from product in Group, Consumer winter warm

Map our inflation $XX.X was and Growth This over raw or Group sales translation reduced were EBIT driven in the an Consumer currency the certain Foreign and offset year. by million, $X.X by in performance million. improvement operating bottom-line mix. was channel savings materials partially increase by of from XX.X% Adjusted prior plan X.X% to

Products successfully the in peers wood a top-line, market. the Group’s Specialty business On outperformed coatings challenging its

sales to water restoration due the to significant weather exceptionally America. when faced prior products a in of comparison high events difficult the However, damage segment’s demand was year North

sales fluorescent our foreign decreased or translation were $XXX.X million X.X% acquisitions. million. by sales businesses. Sales edible benefited OEM pigments, and Organic nail reduced also X.X% The $X.X in and coatings Segment currency from down were polish X.X%. segment sales

mitigate year. our improvement than same quarter, million Adjusted operating $XX.X from on impact declining the EBIT the to of program in during the adjusted was $XX.X which the sales earnings. lower reported was had last volume helped million EBIT period Savings

In measures cost new addition, and processes place we to and cutting reignite have are new management implementing in growth.

provide some Now, comments and liquidity. cash flow on our I'll

XXXX, cash cash cash million initiatives. to nine capital million first of $XXX.X million, months the million higher result to ago. to overall For months earnings, of with use months working $XXX.X $XXX.X the during of flow fiscal during increase operations improved compared Free improved coupled to XXXX. first XXX% is the increase metrics. of compared million due nine XXXX, improvement $XX.X as of grew a operating of of a was improved to by source of and a first This a working capital management nine fiscal year of from million fiscal $XXX cash $XXX.X This

securing a increased borrowed liquidity our are a both of of and Further, options and maturities staggered under flexibility nicely facility. month rate debt our liquidity November financial The euro access our after closing We the credit revolving with term our maturity to in proceeds for receivables Next, credit and balance and swapped few pay improved have multiple the we portfolio fixed $XXX profile. out our to by in The million by facilities. liquidity accounts million immediately of long-term three-year of $XXX approximately the revolving two our short-term used scheduled on next on X.X%. we February, comments interest down were loans. XXXX, to

XXXX, Frank committed and February Finally, our revolving at cash as credit including billion. stated, liquidity was facilities XX, total $X.X

repurchase share for our and on details for fiscal of Rusty the remainder to XXXX. over outlook program call the turn now I'll the

Rusty Gordon

Thanks, Matt.

the the fiscal our XXXX $XX during coupled the the approximately million million goal part quarter, in established is Growth million and of to fiscal $X our $XXX stock. we MAP notes point that quarters the we end As our November billion shares. subsequent repurchased third of when of of we In of with exceeded convertible program, addition halfway $XXX XXXX, of common repurchased our the of to XXXX. March cash of This three we redemption goal in to of first repurchasing

were suspended buyback resulting from COVID-XX we we recent this uncertainty on goal, making While have program. pandemic, macroeconomic good given progress share our the

for over Coatings a fourth was Specialty up Construction X%, was which X% the sales Performance off Looking prior and was increased strongest to Products March. is ahead, X% by quarter seasonally Consolidated increased month good Group year, declined our Consumer Group sales led and X%, up the segment the X%. start in the

impacted we of Today, XX% open having financial be expect to America, we COVID-XX our global where However, North uncertainty nearly is companies, all our like the in plants disruption sales. our economy. by of most and results the on are generate

of been international to generate X% shut have of mandates facilities down world. plants government our Some RPM approximately around These the due sales.

weeks, impact days quarter and While our May. in these to various to ranging from are fourth durations, sales likely they at are shutdowns April

to products segment innovative that Construction it. and The solutions is its large Security’s has In momentum our behind has of Essential continue Infrastructure the Critical Department of been Homeland hospital our robust list. healthcare the very will strong number offerings. clients system and U.S. Products Group, Construction a has demand on and require Workforce for segment Advisory

and other was During schools this up by work. sales Tremco unexpected during a to in March, moving support roofing restoration month shutdown good planned able facility

be We Coatings boost systems. our At seeing a our anticipate hygienic sales Performance Group, in results mixed. seamless for will flooring

more to that However, at the our drop a there or in and portion than annually, gas tied in maybe risk indirectly pricing little a prolonged directly markets, control be those fireproofing markets. $XXX should million of oil sales corrosion coatings and are in

takeaway Consumer mid single-digits, in Group monitoring with area. closely strong our has at POS investment are been to and the growth consumer this brands, we in for high So, and North the hardware professional disinfecting in which coronavirus. are business. unit majority America our open are segment effective and The sales of DIY of cleaning some particularly remain home retailers against the for where

As and their more benefit interest spending should homes time consumer and more in and continue projects, shelter in place, repair, are cleaning improving time in they to which home maintenance, the segment. have

Products outlook the Group, mixed. In is our Specialty

and companies our will business our their as of such the of networks. be coatings Some closures by distributor marine slowed retail

government should is trend shifting products continue seeing On the and disinfecting equipment demand appears and manufactures coming is its is and COVID-XX May. base obviously a restoration that months. current the rapidly over is peak services may changing. as the in it other us information or which this available According fluid situation crisis to contractor April its to hand, This spiking Legend projections, to reach cleaning Brands the

here results and are XX%. that down be will we to This our by sales XX% April sit fourth March quarter XX% today, revenue to year-over-year. counterbalanced we our assumes drops strong As consolidated XX% in May of anticipate

the With fourth prior around are crisis, withdrawing fiscal earnings said, full-year our guidance given the uncertainties for that of quarter being we XXXX. and this

continue impacts the and will situation the We long-term COVID-XX. short assess and of to

by MAP to program, reduction Growth and capital and for we benefits We this of in are program since are us cash in has manage taking to capital, year. expenditures timing The flow capital see working have resulting spending. fortunate actions discretionary regard, this to improved been improved cash aggressive flow margins reducing our the working starting

position. we in we significant which a us Additionally, a liquidity will keep sheet, Matt strong financial have and as Frank balance and mentioned, anticipate solid

formal comments. concludes This our

take be will your now We pleased questions. to

Operator

Thank you.

from will have our John BMO begin we first We the instructions]. And with now question question-and-answer session. Capital. [Operator McNulty

John McNulty

I just be the first one outlook. So, guess the would revenue on

to doesn't a of April of commentary to on the sound XX%, that XX% look, each guidance tough around the But So, and at would necessarily looking divisions, now. like down kind as forecast quite like some trending try maybe Rusty's it of looking May market commentary as to bad it's indicate. it's

at be when four puts the there and where spots. there? you takes I when should you the looking see down think versus where about where some pressures that guess, that? I XX% about the And of guess biggest XX% So, are we segments, bright maybe thinking to kind you're may be How

Frank Sullivan

Sure.

of So, first behoove with to anybody it optimistic an outlook. all, doesn't forecasting do

think but to appropriately of so it's a had done hard being assumptions down from tell day-to-day. literally XX% April cast, I with and been our And to XX% negative conservative May

will and is of the mandate Probably that of details, be construction United have the manufacturing UK, all a of our are get really in an of will certain reopened. reopened. facilities of we Most a couple that’s looks in of this see Norway businesses mix. in now that We our spikes it's parts in pretty closed outside Interestingly, continent have government closed won't of is good, multi-week The a Europe in plant into for various weeks. of less period our Italy little the some are but products period We primary plants half I shutdowns. in than and because But by day over States. impact things had that then closed interesting plant the now are slowdowns. a flow order some you'll negative

in America locations in other two in Latin every closed India, major We are as they're small also facility and There's Africa. our and few almost South so be a plants South to and but manufacturing in inconsequential.

of As that said, up annualized X% Rusty our all when basis, an revenues. you on add it's about

of So impact it's that will at the not the end end the range. range of whether bottom that top And and we're of big. determine reopening

we're that challenges disruption is demand yet. us got for seeing in industry assembly but exists industry news be underlying some yet good We're the hospitality the even now around industries. has Obviously, that seeing the that not challenging. has will some the the side think auto I that not demand challenges,

in million which aware that's our market, more We annualized Coatings the of revenue. primary little Performance gas, that is very than one of and oil are across Group possibility a and for $XXX

expectation so, And year, will coming our is in quarters the and be to Hopefully that's area under question. that pressure. an responsive your that's

John McNulty

the be was you had the then us little I -- a wave as you those at to Map were to that? this to Growth an going what pushed X are that's us maybe be No, it guess of helpful. clarity, that to and bag you roll kind in. definitely and guess of some year, cutting would full then to going this for what year to in cost of chunk kind can point? benefit bit was there Is about next Wave give where were I you wave kind things may get there percent in. guess way decent in off gears think you going buckets And are the already to update a programs, Yes. as actually can and X coming you I year give get shifting a X

Frank Sullivan

Sure.

I quarter this, I Growth, it as have are that is as there's and everybody. pandemic you can quarters are the that and see things a before the this minus things planned, executing we we is a in plus minus. subsequent The can so working. in tell be horribly And to trite, mean this and this my to But to don't impactful you from relates perspective, obviously coronavirus Map to

capital they come then We cycle. would realized in later the had that talked and about quickly improvements working

now. You're those seeing

to is impact a positive in Growth little its that a so, it's execution being a bit disappointing program And disrupted. Map that

On were a instances there the of other where things the I of one those. of lucky certain and hand, number think are is this timing

implementations it's centralizing process been, of conversion than the do that to and our what piece in cycle area Map stronger by come bigger close two-thirds procurement G&A across purchasing last the we certainly Our ever and to completed. is less every cash probably globally, manufacturing of two-thirds across -- ERP because Growth will once the we've wanted than in have the affected to are

And set medium put some our and in they be disciplines next gains So, the will the the areas and that off benefit implementations been require disrupted XX the that over complete because we to it's continuous have are had continue ERP accelerating. most made But XX plants. good to getting program and we is that solidified to completing into a been a smaller and the really improvement instances presence. was those us, that also will physical have months,

of Rusty we be of that as of business showing ground, and in sectors XX-day And mandated summer most both provided in and be happens you is it'll if how government both we've as United the March. to disruptive April quarter-after-quarter, our the as repeat get what shutdown but the believe if interesting it be the will in and April months, disruptions. believe economy and comment period, obviously -- details see it impacted relates the and you period of will state-by-state, and reopening March you that States, is, what be May on you into meaningfully globally make the a terms anticipation see negatively to will speed. The May. I that been what read that, will appear last does

Operator

question next Fermium have We Frank with our Research. Mitsch from

Frank Mitsch

color on what the to obviously underpinning is declines XX% What assumptions -- a was and in the good and decline? that starts start. of commercial that, April off year really in terms housing your and May is expected construction to May in are activity April that and your sales I appreciate underpinning XX%

Frank Sullivan

I answer that So, can't question.

We've that. plants at to We done of have the perspective affected looked haven't gone is globally. into our from a macro each What businesses. we talk

principally We've Metro the some it of Jersey surprisingly, we quarantined had affected they’ve facilities -- in manufacturing and have disinfected been of cleaned New We closed New and Jersey the people brought York the people. kind States. United plant. area plants in and We’ve shutdowns. had back. Not We’ve North

to So, bottom-up we we've But done it's once getting rhythm understanding you've to through. done to not work. is when good of twice, of assessment back a process a What their time, people been have and through the or begin quarantine and cycle and the company-by-company that a an you develop really go cycle, force. cleaning it sales

there's that home, areas, DIY and DIY will more to consumer not least benefit to the businesses seems contractor be at shift consumer but in there a do-it-for-me people our so temporarily from DIY been only And for instance. at

new element sealant that's only business construction impacted by The of DAP be the caulks residential would and of DIY business. consumer our our segment

the but and this projects stops in in in an be our what well tech, of of Performance spotty Construction done solid, Group building to and We're will, impacted. that's see continues perform Coatings order and haven’t with Products that We food areas in roofing off. means, analysis customer that's through of would cycles put flow that I big good The some area a consumer bases beverage, being Group. think, that but in then

and order big impact. not flow challenge think And done is very as to that And so than the by understand and coming market say as and earlier, about we only we're business have unit I that gas. answering a business the to the I real this bottom-up questions trying concerned I'm specifically other unit said your oil

Frank Mitsch

difficulties I Understood. there. understand

in of and want impact exponentially know hardware are of that has trend. seeing get you're very a -- terms your gone I'm terms I expand be you higher, distancing, share wondering negative that home a that. And speaking mention seeing Depot if wondering though that the having social Let time upon DIY I are the and business? you any the even data the was I of did there centers if consumers, mean me getting kind in, in in Consumer positive shift is what you or of could on you impact a what should have gain any at stores, instantaneous business. market then to you you Home

Frank Sullivan

is sure, I'm orders about have yes. answer through are instituted rigorous people their wouldn't to of many more roof. some how Interestingly enough the regiments individual talk into We customers they'll let online the our that customers, but stores.

online in a could hundreds we product certain And or it categories, so, X,XXX. week, get be orders XX might where or XX

And so, major fulfilling more that we extent. through to we're of is a our Amazon. than retail and through that retailers do business major online actually We our customers do number through lesser a

growing. then is has Our in some consumer business Watco DIY which particularly have the Amazon business which catalog. is And kind U.S. Europe, was in MRO. we because as part of business, negatively than shutdowns, a an of the temporary more UK impacted, in a of called our It been business

Now across single-digit, it's month double-digit segment literally Consumer XXX%. MRO high you're All-in-all online a we seeing a business. through a over almost a well. smaller our customer is POS piece the catalog of up their low March, And to that, last entirety base. the but had online an It's business as of shift

Operator

And our G. with we Rosemarie Morbelli have Research. next question from

Rosemarie Morbelli

Thank morning, year are just the touch and eliminating? I everyone. amount you. end that will you CapEx Good on what do which could lower think you be wondering projects by the whether Frank, was which you the are --

Frank Sullivan

CapEx. this year about was $XXX goal our So, in spend million to

level CapEx of million. closer be cash flow about finished X $XX a of really year-over-year the I higher to months, strong with Notably, through million. we'll think that included $XXX year, we a when

flow So, strong that we're sense of the cash generating. gives that a you

$XX we're in about back need budgeting that's depending our areas $XXX compare year, the CapEx. program million further, next was compare we we but interrupting or this that that plan. in to I circumstances, Growth growing. the think if And million, time, million back preliminary without on by $XX For negatively current be, point our And that or our Map at

Rosemarie Morbelli

in you talking there? in of out your And how about North coming Okay. Yes, utilization? What altogether. much is they facilities or capacity open, when the operating Thanks. most America the U.S. of but are business -- are is

Frank Sullivan

say, Rosemarie. hard It's to very

comments in or either to I think in release, we each Rusty's our press business. highlighted circumstantial it's

categories So, particularly another Mean if -- small industrial, have a of you're one and paint, a Kutter in is is them there project, cleaner -- repair, patch, the exactly, don't I product. is them anti-bacterial Green Krud our

We but through are that. Those three to COVID-XX. approved the there constraints surfaces we're that certified cleaning products and have cleaning through continuing as for relative to are materials, the is Rust-Oleum roof raw do

coatings business, of talk put marine total, which that's as our $XX SBU boats is side and smaller million is business Specialty that repair maybe a in normally do in but our Group. sizes, part Products flip marine shipyards business large The about In their yachts a we closed. recoating for many and and/or and maintenance of are wouldn't retailers product that and to perspective, revenue

or XX%. at months, a that's that's so impacted business as time much few But will be be period that And few a where revenues weeks point might another tell. this as temporary and whether lasts another for

Rosemarie Morbelli

XX%, another your and on sneak could down With is business linked that QX revenues think one marine the may I I what and be if XX% being in. bottom-line the down impact And to

has that wrong, it not margin? am a I if very high

Frank Sullivan

businesses. taxes. we're at that's in the capital example focus. apply and our CARES things deferral One said, deferrals, that two are few spending, Rusty very like of flow looking that much advantage that the we're point, We're really Act generation cash is of a as suspending -- of drive a larger cutbacks to reductions, looking things at don't taking We this FICA guidance. expense expense Sure. And at and

quarter. or the of about than or revenue think the declines. we're we earnings, income earnings share in allow any have bottom-line would a not to per But for face will projections MAP in generate better to to Growth that I otherwise that, us the talk beyond around program position really

Operator

Byrne have we And our of Bank question next Steve with America. from

Steve Byrne

lag first? you home consumer how which see and by frequency and big from box answer the sales just centers one your What's the receive on data that you me let products time

Frank Sullivan

that in certain pretty get businesses consumer that most I'm weekly information categories a Sure. our on basis.

Steve Byrne

look And in any can restocking into of forward as that the or are commensurate you you couple home orders do they for or inventory tell with stock change placing centers sense next months? not that's these whether levels

Frank Sullivan

week-by-week. It literally is

your I So, that of talk are attention learning things because paying some and we how end day, is And have of dynamics say of leader terms other interesting home. -- relative from to work to spot There'll us, at to paying if day, any. about infections, that to. we're on for all there the be meeting in question a we senior the COVID every new

us. as also statistics what's our they're and But And Fortunately, operations. they order New actually going day about impact. Jersey not for every talk impacting talk other been we And have they've show, been mostly area the in on, our many sporadic. flow we about

So, that. into circumstantial. good some have It's we very insight

our retail a early of for of POS customers are we April part forecast part early April what or here. the the of in showing would Some solid

are actually do of we Some has and the below them think their more stores March, that does levels to flow traffic demand. in limit we into that decisions with were where are showing with than it deliberate to

then it's very as lastly, And I indicated earlier, spotty.

well. true Legend We disinfecting that as Brands our can are the That's make. business we and selling all products cleaning with

categories, and about maybe And sense so, the we'll product that some July an can needle. really better in that's we what's different what of the by area a DIY moving detail have say

Steve Byrne

volume? the X% in fiscal And organic in outlook moderating posted the comment you given that for And quarter growth raws? Consumer on mostly that the segment, you’ve is third price can that on

Frank Sullivan

It's volume. Sure. mostly

packaging material Construction Performance part been challenges in to Coatings there of and Consumer because you a less areas. facing now in Group, given the The in some Group Consumer one saw, some our raw in in which and sorry biggest been there, the are abating. we've business our little I'm -- was has certain unique the As Products strong volume bottom-line our leverage

three really of growth the all Products those been has unit segments, in Consumer solid. so, Products, and And Construction volume

unit months In than because growth volume actual some the show, closing categories Group, been pairing international or lower margin the been product and Performance in Coatings businesses. better in lower deliberate breakeven back nine through numbers margin has very they've

Coatings basis million in Consumer. to that's $XX on So, and indicated, disproportionately as our deliberately Products million this Performance in we've been or we annualized close Group not shed $XX in And our Construction Group reorganization. an

businesses don't overseas margin that coming meet in is criteria. some our Although, some with there consumer

And very so, it's been organic solid growth.

Operator

Panjabi next Ghansham our question Baird. have We with from

Ghansham Panjabi

from obviously projects, gradually want of curious Clearly that? relates customers et even a Frank, dynamic you think going segment it adapting starts will we to future if to customer new are same impacted normal, impacting towards how and initiatives. about should I'm to open for standpoint, Growth cetera? the as be the by some up. dynamic, make to capital are this about be just -- can qualification of as sort Hey employee Map economy products you to some your of your you this mobility presumably it comments your call How

Frank Sullivan

Sure.

But little Products -- in And Growth. so you business, a so there’s it's we're of more part to in our and circumstantial. be strong, segment while our reduction of of Construction I to I think in that of major think period and RPM, because again, in question, that, projects. Map our of billion fortunate that are if But will general capital benefits of by probably $XXX where industrial than or industrial oil of do there a been every certainly is where the both for we've capital gas, your and about spending, which revenues think driven $X.X time a million, spending, outside

Stonhard major it, areas hope polymer timing. Stonhard that we order requirements anecdote with to the this was It to fab City well. seems half. in in We up got that's the in going that we hospital anticipated that why the that as will applicators do the time relative under for temporary contractor be order. to over of the been got York. needed. then gives including And plants, I hygienic Park to pretty presence But application were that hospitals, hospital together and flooring do strong a got our strict it Central beverage is segment think spot spaces quickly, that New not you we bed and number of Because good relatively New temporary true. in need news of sense if set there put well. economy the so a by be material Interesting food, cut York going in business cast are hospital, going a in provider the was was facilities leading globally, has Our portion the to think business real that flooring of and of of a

there XX tear it opposed that's to restoration we XX Our cost that roof. competition restoration another these and coating think the to roof a roofing the of Tremco roofing a because Surely, old off be materials I replacing ripping there. I at and that years, leader as high business roof off, new and will we're But America, with or out old year third of long-term seeing enhanced for old sector projects, We be and and good for more and they've our apply XX% North Tremco roofing has replacement. off roof play life then able reroofing. at that business don't a been of an being a XX the extend on OEM that the the performing has very in in us been space. what leader is impact been in XX negative in say the to rip dry of will

circumstantial. at the filibustering pretty We've and lot and at cutting do industrial spending, it's we've $X.X looked by But be in call to of problem. same here, good looked think gas, in without will because so ours a driven going oil the And position. and a will clearly cases, a a others we're be we're I billion capital that

Ghansham Panjabi

a what with Growth don't back dampened to some strength of the before be financial crisis, I momentum costs. Obviously, you you're position and Frank, saw the And started think you it But business completely kind decremental understandable. the know was in to to that material give by there. want MAP guidance, margin as lower initial to extent raw the to of

then? transpired And -- think disruption Will a to the customers will working that you you to So, be given it should back extent operating year inventory about just do up fluid as yourselves benefit how of this then stock environment, part capital or kind capital. more or safety a second, as risk curious of the build as what your still be working about to expect supplying little you your we think bit has been? that

Frank Sullivan

Sure.

go ‘XX and on when our any finished fiscal May better. started to we June ‘XX, year fiscal recession have ‘XX our ‘XX. year not ‘XX in ‘XX fiscal We of XX So, our the and you of great modeled back year could

much pretty year best income then down ever. X% crisis and adjusted the financial to that our of XX%. sales We off than and had when okay. beginning we little people net was cash In period So, a more started flow feel the modeled of our were our time,

and recovered a by -- XXXX, basis. adjusted X% and income In on fiscal XX% EPS basis earnings sales about up net consolidated on an was

many And so, and we was had the with had. V recovery recovery inconsistent that a not that strong people kind of

to cash and our we in combination better think quarters. some volume, contributor build Growth as I to Map a conversion the in of capital stock safety areas, think while think, cycle a will cash through Growth. thanks do I reduced timing will now, working cases see the is some Map do you coming few of to in a up I generation to

performance, people not economies is us contrary terms this shorter will in perspective. of has to a businesses than V RPM U hospitality which and this some for serve I and I see better longer impact conservatively recovery entrepreneurial everybody, for I've depending and this global for as others I see not and But has we're for instance, at a see well big of unique relative terms industries and U As do a expect, products. U we I cleaning for But some of our looking know and a our is some expectations get be into a we been commented, V. still and all new certain I negative here. devastating But we flexibility, alive helpful nature we us, our think been what the picture think -- will of on how bottom-up, for improved to pandemic, year on do, in suit well of a to the our you relative and look to -- a to fiscal customers for the QX.

Operator

our we with from next have question Silke And Kueck JPMorgan.

Silke Kueck

unemployed of spend maybe was really February that will May XX% there XX% do could business what that, it like quarter. is similar like why terms financial at pay for people like like the of be Consumer Consumer they had the of to February like April. of your of in both it the then a in in wondering, volumes divisions, And sort that guidance and 'XX. But May construction, third in February and is the and couldn't a in The in the the sense. XX% And happened by industrial is a was feels quarter down of maybe now didn't of do on XX%, which like going like in look results. now rent crisis and or people your happened exercise, in is which a lot Coatings if some and business a is like people where volumes XX% was money. had in down the if I the down part like May happened quarter. XX% similar was is, And I similar And it something what one of that look your growth organic quarters the things you makes sort at Performance business, business, were

the really the X% else is, one model well down is when so, XX% everything to than of all and this stuck And be down rather XX%, that XX%? into we down segments Consumer questions is like should saying

Frank Sullivan

-- Sure. I from I crisis. the is think financial different am this

And so, the We in I have by three had front then. don't details back me of segment. segments

shooting aisle literally like be quarter, customers, our were talking down the home anecdotally Walmart I And the specific to big not Consumer cannons in third can't including about of that. tell our can But you so, hitting and segment we centers anybody. tanked. And

think financial time consumers very is fear stopped a the to at the to they're And period eased I some that to going during their go That was nothing crisis, so come and there very up short of ATM out. quickly. going everything. And buying for point

made time recover, even economic comment categories, eased, speak does be a what Silke V are for think subdued. do We're basis, different somewhat it I anybody. we very even to that where but segment restrictions and I activity a anticipate there will as were seeing period in I based recovery steady we're for different. think the on earlier, will pretty seeing from on be now do be these product is us economies not business will that but ago a which mandated there I government a activity think of year do as we spiky

Silke Kueck

-- So, then a but just don't of and understand. to trying believer I more to you're if mean you looked this at that criticize,

said there's a as construction, terms view of your probably So, group a like and side? less a headwind would performance be from view, businesses lot in volumes lot and like negative than quarter May consumer -- on there your you of lot point more more

Frank Sullivan

days So, Consumer year-over-year expectation I is That think than overflow, that's in of it impacts one for record because our us seeing the is other our days The of there correct. right segment Group will the spikiest in now less May quarter, in our segments. crickets. negative Products is that Construction and then be we're

spiky, hard very so know. And to it's it's so

Silke Kueck

a then on And just question product of MAP -- program. clarification Growth the

run If one like million the way for rate you $XX year. savings and $XX at in it? does million $XX in the the quarter, to analyze that or year-over-year are say Is million look third savings the realize

Rusty Gordon

quarter. Yes, the each change to the year-over-year $XX million we're savings talking incremental those of are savings and

used quarter analysts to to found for we and in discuss more it we savings increments. cumulative would be helpful the past, Our report the the

Frank Sullivan

Yes.

to of so, $XXX back in our goal savings. million original And

the the on are for the G&A G&A manufacturing of down. and terms In that the But fees, procurement track fees fees, fees. we slowed

XXX hurt We both has the in been original plant anticipate. million plant has are XX through ways didn't offsets Slower growth us. some goals. out $XXX have of of to manufacturing the relative and to us we're closures that. FX ahead our procurement hurt -- of we There But million XX. piece

in our rationalizations. the by plants continuous We’re of business The activity million to this through our million improvement $XX this, goals we're with product done $XX exceed original time line will or meaningfully. either

improvement. and tens improvement out So, we the manufacturing we if of will and roughly to between half and continuous Growth of more that have $XX consolidation of split targeted the impact continuing. consolidation of will have footprint the from goals incrementally continuous time of in efforts you MAP by footprint millions area We'll we're the recall, done, achieve be of the dollars million

of and guys restructuring embedded. three all those But well lowest exceedingly what's momentum, gone bit have little -- trite The quite a the the year us program light again, year pretty well you was hanging happening of our pointed has So disruptive. one well the a easiest year build. they're and fruit. disappointment it's and that momentum a two has continuing to as My momentum statement been been for biggest in world out, was in now in going is, with

Operator

And we Andrews have with next from Vincent our Morgan question Stanley.

Vincent Andrews

that in to range so for ask, fourth organic get true So, kind looking M&A can exchange and the you're we guidance, you just there want of to the sales for for? just foreign have quarter was what that in the impact

Frank Sullivan

into Yes, a the are we talked to again, developing country other we the FX leadership currencies that account to swings nuts. I and FX, that's day senior and in mentioned take question. team great every are And, trying

$XXX of total. in So, in remind plus million impacts. about that's revenues you're XX% that XX%, Latin I would America negative seeing folks

Rusty Gordon

Yes.

Frank Sullivan

which not and but of And can it's the and the other are versus the see then bigger the pound, so, huge, you -- strength euro and Canadian the dollar dollar currencies.

will acquisition quarters be acquisition -- very so will activity but and at as a don't the offset this offset activity for be So, we impact. quarter, saw X% X% the in you not anticipate certainly by negative positive in prior FX or some think modest we more decidedly be third are by that guidance We quarter, X% fourth anticipating FX. been the in acquisition -- will has

Vincent Andrews

target? think we it’s if that mind So, to X% in is in that ballpark, keeping the X% moving for like FX, a

Frank Sullivan

that would guess Yes, be right now. our best

math. that's good think who I knows. But

Vincent Andrews

want to Okay. thing. one And other then to just I'd clarify like

the concerns tell or obviously I revenue a broader and opportunity easy -- of we to all of revenue can CapEx We about about? subset there is buckets, of there's concerned through trying concerns DIY Consumer, about quite same some customer the sustainability you debate as to good spend you're just or million as oil want all in I'm called million another trying out exposed it. a understand just just and or other the that make clearly oil concerned there industrial gas? -- gas aren't you've less think industrial tied and forward that slightly as to can and But that Is of where to sure whatever. pull You areas to there reason. $XXX CapEx the $XXX for revenue at Or

Frank Sullivan

I spending pleasure Then anecdotal. were it's revenues the they shutdown mostly mentioned better what our think most. And instance these that to ride industrial than Yes. smaller spending in ones biggest to paying marines of provided yachts, as maintenance boatyards, but anticipate say, Those the we'll of business and we've are I be base pots the half appropriate two at customer we point their look, ago. their to that's attention is we're could two capital the marine and think investors of coatings are to. that through out fourth it's for why we or to an the big a year color a some business, big because quarter

happy modest the in if on as related is there that recovery is guess little have retailers and flow spike circumstances, we health business. shutdowns anybody's the economic their It's boatyards what's when and a a to water up, impact those a of as a from boats of or in put open coronavirus on very those been back order to whether depending to everybody bit

unit monitoring questions. assess paying those same call -- just attention big unit we're So should today we're areas to in that well. and as highlighted try the to think investors we're we business business the we've and by But

Operator

next Seaport We Mike Harrison Securities. Global our with question from have

Mike Harrison

started bit in a the or are you've lines Can on $XX You been think, similar already other Consumer. where or in give on segments are you to mentioned, of those segments? actions you million And lap in margin actions kind those think million I actions? just sense those $XX in Have to including other business. when yet actions primarily you where of shedding lower referenced some you you and worth Performance I of product come some a start little those

Frank Sullivan

the product So, eliminated, outside we will that we're on and or million those, we done come to their closed come to time lines on And there's $XX in another $XX bit by more. yes, that Products a or to would but and with MAP is probably impact be and started I Growth $XX that businesses have to Coatings program, our mostly the anticipate Group. future Performance our of million the maybe of the that would answer either little Construction our million Group

little in some away and overseas it would some segment. a be our Specialty operations principally bit in -- Consumer far So

Mike Harrison

the of just areas stock the until what guess take are lifted? more then should or is, disrupted back that the it travel once that are stay-at-home can of ramp on that just, activities to are that move lifted, you'll get things or behind think order work, And you terms MAP and some as the we delay the are in it so could the after longer And will of issue orders back and forward to delayed, I those still Growth, people being waiting can be time to freely? second then you up what is stay-at-home

Frank Sullivan

Sure.

of the from was on dollar, three four to so Growth about MAP related million down all were Growth probably or we I'll basis. And facilities bucks That's $XX program, million and or an And MAP to our or about fees. flow cash our in in that year weeks ago, In spending to upwards $X manufacturing down outside annualized $X we million of very fees consulting locations. quickly a perspective first highlight first. in hired

our includes a don't that employee, and contractors. non-essential And that plants so if me, you outside you belong in are includes

go smaller who so to good plant idea. helping And to plants and come plant improvement who consultants that our with from us of plant wasn't idea having a from other the were continuous

call, been of kind people these So our team the manufacturing were improvement and have what events to working been with facilities getting now to continuous sized that the mid-to-smaller fit and we institute, down halted. disciplines have

The idea ready to on have are to the I they're eager ready I be turn going. when and can you to to will all get to halted. the activity, over going back can on is activities we with we you, have payments. work that light consultants second activities thing that. their eager green when consolidation ERP the generated we get consolidation would and halted be let's that no be same world true three-year assure we All paybacks are, a back I say, period. But to accounting halted we because assure their the will those are, that fees be some extent that

payback a which you, has years programs so And into a but three all flow people would are generation. good longer that payout, can tell financially, thinking cash because stopped halted. liquidity don't or is to that if were see of and practically on a and in that capital of inside things is good IRR, the activities been have and personally some that And than cash we companies two our a because I going still even some have payout about of is the we do structure, we been a year, those activity, the put can't facilities both remotely,

reducing with canceled all contract the outside So do planned and could like They're in delayed. large million $XX $XXX,XXX small things we or an by more like $XX million or consultant. with belief that every being things $XX,XXX CapEx or

Operator

with We have Spector from Josh our next UBS. question

Josh Spector

seeing you Just some you on know which start where point to if, could the would material some you through front, of not big material you're declines. is, raw to I it expect a And stays about on moderating color was of increases? savings that, talked more wondering if I where what P&L? related to the guys raw provide see those more oil kind inflation, if is flow necessarily

Frank Sullivan

great question. a It’s

is, the of tightening initially in silicones, certain that, availability One one side we in that flip ease deflation maybe seeing and over happening and category. raw so, was that certain pressure was The material And categories to seemed some pricing what's year some were -- would and raw see relief globally, or last pressure. off. I has pricing so we'll that some finally because some metal category categories categories, in material defying was of that anticipate, the with packaging

been we There they versus see decreases cost if prices a today. where settle So in where around it's that categories categories. area, solvent oil will sit will doubt is that circumstantial are, into and sustained being be resin with different no that some they there some

Josh Spector

as segments, segment? decline look materials segments how the to to the the we I and in that, converse industrial And expect to different in pricing if quickly to guess would would react how construction react that, related slow and across raw prices meaningfully, were Consumer you maybe

Frank Sullivan

point It's this to time. say really hard in at

make X.X to of over years We able X.X and at last half. the But we year mix cyclical needed We to supply, this it, industries spikiness and product back year and most have a of that are -- point, need of we've were holding on increase. that pricing been raw working have be we nimble that of had to with focused We're need material effect to of on supply are the the not them that sure a a where order fill flows. across to because been chains because more they it's and it, in they ago. really customers rates, availability our when terms where

question, We I have where that's quarter will and think unfold that answer or have another -- two. that to So we don't good don't for don't a really are that, a good today. I

Operator

Thank you.

from Capital with question is Arun RBC next Our Markets. Viswanathan

Arun Viswanathan

look that I international your wanted guess, just are commentary I at when your locations closed. to you of some understand,

right way Is sales the QX guess Construction and in your the I expect decline greatest think we in Products that should So about industrial? it? to both

Frank Sullivan

Yes.

Construction exposure Performance what formerly to is our segment markets Group, our -- or as our Products a of has we've at greatest but of another. North were of We've and operations was brightness the Coatings seeing European year. have been outside our quite in seeing half for and quarters there Group had America So weak communicating been time demand last couple one been -- some closed Industrial of spots our has not Europe

aggressive we've has countries government there than more mandated seen closures been North various Europe So in in America. in

Performance commented those and businesses. Coatings Group And predominantly America India. I so, Products as throughout Latin And Construction are and earlier, it's true

Arun Viswanathan

And I noted it guys amount maybe just by affected kind so Is take have XX% to was And that some are you is kind I thinking it X% down? to I potentially customers is guess that you of or just of trying X% about a or to understand plant guys already time guess whole how how the that does the of think down, inventory? this lost, do -- is service inventory stops is effectively works, relate that, hand mean for is I that on plant it of sales you are do the lost? your potentially you when that closed plants. that

Frank Sullivan

as or correct. No, mean categories have depletion the can on inventory for the long particular or problematic XX that, without it's After inventory XX of one we no, But disruption much circumstantial depending very in versus that's others. on and your to certain formula product nature we different closedowns based I as color plants. be on days. hand business, can cover

Norway with marine of Coatings shifts. Performance that two people We shift We not. quarantined a working days, and of We shift in coating single that said, had the an the been that's closed a plant in plant back closed. a It's the aggressively individual single part -- for a reopened. was disinfected the and split that I the our into Group, shift. was we As infected brought infection had two shift that it plant was other were

And could you plant plant by so a I give circumstance.

between we who for didn't in is tell more for contractor plus shifts, in understand last that plant time as coronavirus plant people is how closed with it was have six and appropriate do and then plant how the to infections, was we a plant. the think XX diagnosed and repair in a are or to that that at-home when Interestingly, prior, what New hotspots actually days effective. know a currently clean cleaning becoming back much there We has the six plants they've New cleaning to York, Metropolitan close operating the and affected time into to all are period. where have closed plant efforts and we to we can area days in had who It's a our bring the because we're days and and the are from he any Jersey had not United been States XX-day I been that's closing -- days. it been affected plant, companies days. shifts, We're XX the a been had all it nimble equipment all how segregate contractor XX

more that's back government you get mandates understand Inventory the probably which to big in how then what know, part. quickly and you Having So hour. plays a a understanding very than business need circumstantial. can protocol by it's but you

That know couple in could set don't So for instance, have and our two we've occurred reopenings. in another yet. we're had closure India of and reopen closed we then extended they're be other been in closures countries major weeks. to plants have in and There that

Arun Viswanathan

Okay.

So I guess it down are the all depends on plants how long for.

up. I guess, follow So to just

So should about the keep there days is levels maybe varies plants, least that of we is to at XX through at maybe So also you assume or do or it? maybe XX a typically, can shutdown day the that that it's so? or that inventory if kind right think manage various you I guess, way

Frank Sullivan

product It varies your days. business XX of by business, categories. but unique that, by we customers, ability think begin of impact negatively for in do particularly I more all to XX get a that supply to period to But in businesses, you almost could our after

Arun Viswanathan

Okay, thanks.

so to take much up Sorry time.

Frank Sullivan

days Yes, we parts the but we circumstances closures of of more, do nor XX any or this at world. in not be anticipate, point, different anywhere seen have could different

Arun Viswanathan

just supply lastly, chain. on And similarly Great. the

of about any that So factored of of the kind supply of sourcing Do some any Is Asia the other from maybe for into a raws years and not much about Has your are that side issues chain expect expecting had of raws. maybe costs? input that? how MMA with you statement as tailwind some thinking you your or back, of I couple a you transpired? out know

Frank Sullivan

a a are to issue product Yes. need Cleaning an we surprise, every cases be we commented need which and pay what was that day. past get relative We an explosive we we silicone, try some be what this In weeks materials earlier to an cannot and issue get to attention today. demand. okay allocations. to back, not seems -- meet cleaning on few and raw I product should

that a some that to of category so a our is pay we lot. consumer businesses. And attention impacts product That

our not meeting those demand same certain of Brands be in So equipment circumstances, material of The makes ahead business in filter may is and supply. products because cleaning industrial disinfecting HEPA raw products and categories in are Legend but true are years, the prior that get significantly we raw before more materials. if could filters could all this of sold hospitals, products and more was that happened, including and we those that sell

Operator

Vertical McCarthy question our have next from Research. We with Kevin

Kevin McCarthy

on margins. subject bit to wanted little of the a more just probe I decremental

across look of of then handle the these to during would portfolio, end that to on normal there get the sales might take and you ratios businesses to either this take As stand having versus variances some a bottom-line fixed the of how Trying you spectrum? of larger variable out than are that we on costs down unusual period dislocation. as

Frank Sullivan

in general that across Obviously Sure. its that's that in our every point. If certain segment. I than in don't would business Specialty breakeven has own truer it's be true segments know particularly others, RPM.

but margins. our fluorescent than average lower Specialty other EBIT or color And like that average had businesses than you so segment higher gross Day-Glo business businesses or have margins,

a there. do they fixed so point And have

in Specialty quarters Growth having been were somewhat Those we've challenges couple revenue our Group. for last of You're would been worse to already seeing it in Products not that that the numbers have the the in MAP programs.

between on depending but variable lot P&L high our general, level of businesses. obviously two-thirds you and raw in is Construction and sales be Group, which, high Performance of XX% represent variability Group, in look level pretty Coatings our the and selling and fixed one-third variable there look business, of are across or of But fixed between to variability are XX-XX split you our when across variable costs a costs Products a which may material probably our a

Kevin McCarthy

is I you there or pause Have view hit what having multiples your of then, expect that wanted with suspended a current I some on example? see ask, for to you share repurchases do, you companies lower as the M&A? the lot And opportunities Frank, well button do know, will

Frank Sullivan

hit well, have on button we that. pause Sure, the

all We are is to and/or at can of stock, to and I ever been done I our looking But that and looking at new to those transactions, be of but transactions a repurchasing our couple our think see, working it's of our do flow will generation in what cash we're acquisitions had operations, smaller terms other as items. with than businesses timing were that to sized and terms you everything think in devoted cash maintaining debt. else continuing and flow better devoted dividend been, on repaying

Operator

you. thank And

with last have Kevin from Hocevar Research. our Northcoast We question

Kevin Hocevar

for me squeezing Thanks in.

U.S. and different they're in places of has -- different in the how impacted obviously you differently activity. prohibiting have coronavirus degrees times As the terms responded and construction different the and states at

the of construction terms So like your as visibility we are any have in you prohibitive York, the terms that can there. look like have of most -- in you if construction places visibility other of curious restrictions versus where prohibitive there states and at in are markets do How less place? country doing the parts New end separate between Michigan any is regions Just that? different

Frank Sullivan

Sure.

other are most the state For aware aware activity The in which infrastructure that the Security construction essential. The in days, states up And eased. the is part, running construction I'm PPE this the on be on places, worked of America. most following was construction Security in happening it the within Pennsylvania guidelines states. guidelines activity North the or than state was qualify different of, construction. I Pennsylvania what protocols Governor's of halting industry Department believe Homeland was as focus as following general now construction and a about social and Pennsylvania. XX relates is with distancing of And office I'm throughout harshest other to that had particularly and could And week Department to talk Homeland the activity of and construction and original that the

sitting I here of of Quebec The is is areas, the somewhat. America, When most. of of know, less a you're protocols. outside certain activity a doing been similar I construction eased outdoors, business think far a or PPE and and is Province North number saw today also as as as than in there in rest social truer is roofing allowing as In distancing maintenance We or order has our you're USL activity and there it's long Canada activity that your concern.

I If protocols, you're doing flooring all you mentioned work and can again, business. maintain those a it's spiky

get One in requires all activity that for activity is the it's do. of and/or facilities for the of institutional have universities, that it and in we shutdown do and reasons manufacturing those we're closure seeing operation areas business that allowing floors. replacement to of a roofing, facilities, schools Whether of the business spiky particular in are manufacturing construction some and rehab

so, report and when been spiky fourth final. quarter. quarter fourth the summer we in But work we'll for we'll perhaps it's results have results into pulling whether or some beneficial our that's see And very the us July is

Kevin Hocevar

back those themselves project this Home Depot doing near think of DIY -- normal when believe And give place, I orders small a this to they're then -- phenomenon stay-at-home as is more you're you term your seeing going and on what's strength that people for in to the looking for is are do to a things contractors side, the thoughts that do, mean sense there, something orders that are or/and or people you and the there. your while last in home as coming a maybe themselves? things don't get want maybe could is look Just us to lifted a trend that we have

Frank Sullivan

depends. Sure. It really

in will be they is home do There it Netflix, the home shift nice them. they come so normal, now back can get some it somewhat and and for spiky rate XX%, negatively world if a project It doing things a people to to meaningful we're to how slower will. at that believe to of United because back period DIY would level of people seeing be that's and States, XX%, and in think are would depends activity day, they're And contractors opposed quickly advances doesn't the you as this at that the a it our time goes having unemployment over outside or POS the of decided save they happen, business that decorating I that want. instance to which of repair will normal. -- perhaps saying, a impact people for This medical when think, themselves some on revert I that sustained without think more and for small if time. gets watching tired paint when

or this related to and what's fall to quickly But coming medical work the to all are. get and that's can of the outcomes impact of this relative summer coronavirus to what circumstantial treatments how and vaccines the people back

Operator

Thank call for you. now over will remarks. I back Sullivan the Frank to turn closing

Frank Sullivan

They grow very restructuring continued their to associates our effectively. you thank Vanessa. very have to world MAP much, the around the business efforts. Growth out our carrying like Thank program while I'd for to

customers frontline particular, protect Now the benefit like who work RPM health, and they're our courageously keeping These finding to to their every of in of maintain their men to associates show and and running distribution demonstrating by all associates, manufacturing the thank are incredible our resilience facilities up In business ways women our our centers. also and communities support day our to I'd operations. shareholders.

call and we on in very all the results we Thank in meantime, look much today updating you to we'd families today's health manage and call for and for good to our day. through happiness wish year-end We as forward and fiscal July. quarter XXXX extraordinary a this In our time. you participating and on your have great you being like you fourth thank

Operator

our Thank thank concludes We conference. you, ladies your This for participation. and you gentlemen.

now You disconnect. may

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