RPM International (RPM) 26 Jul 232023 Q4 Earnings call transcript

Company Profile

Participants

Matt Schlarb	Senior Director, Investor Relations
Frank Sullivan	Chairman & Chief Executive Officer
Michael Laroche	Vice President, Controller & Chief Accounting Officer
Rusty Gordon	Vice President & Chief Financial Officer
John McNulty	BMO
David Huang	Deutsche Bank
Mike Harrison	Seaport Research Partners
Jeff Zekauskas	JPMorgan
Vincent Andrews	Morgan Stanley
Steve Byrne	Bank of America
Ghansham Panjabi	Baird
Josh Spector	UBS
Mike Sison	Wells Fargo
John Roberts	Credit Suisse
Frank Mitsch	Fermium Research
Aleksey Yefremov	KeyBanc Capital Markets
Kevin McCarthy	Vertical Research Partners
Arun Viswanathan	RBC Capital Markets

Call transcript

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Operator

Good morning and welcome to the RPM International's Fiscal Fourth Quarter and Full Year 2023 Earnings Conference Call. All participants will be in a listen only mode. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Matt Schlarb, Senior Director of Investor Relations. Please go ahead sir.

Matt Schlarb

welcome fourth International's results. quarter and the call Joe XXXX fiscal and you, to conference RPM for Thank full year call recorded. is Today's being

CEO; is and or RPM call Gordon, Controller, Michael accessed and today's are live Officer. Sullivan, replayed webcast President, Chairman Joining website This and Accounting call be Frank Laroche, Vice the Vice being at Financial Chief and President Chief Officer; also www.rpminc.com. and on RPM's Rusty can

on may results call that include different. this current on based which actual expectations risks statements cause made to uncertainties, and Comments involve forward-looking materially could be

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

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

will our quarter the an Also XXXX comments basis note fiscal to of be please are all fourth and on indicated. comparisons otherwise that as-adjusted unless

provided presentation have and supplemental slide be the section in the our It call. RPM to can of a comments Webcasts at Presentations this www.rpminc.com. accessed We on website support

this would time, turn to call to At Frank. like over the I

Frank Sullivan

Thanks everyone. morning Matt. Good

I'm provide begin a start which balance sheet performance will going the slide business three. provide with details We'll will Mike For following the fourth those results, financial by Matt and slides high-level our after discussing to for quarter, on update. our and

outlook remarks our prepared conclude after we'll Rusty Finally, your our to with questions. be which will pleased answer

adjusted top the achieved fourth slide quarter last sales the quarter consecutive we of fourth we on in three, generated that of and sixth on of you quarter in growth the year. Starting the record strong see can EBIT

cash uncertainty, these from cash The MAP same operating which from flow normalize prioritize XXXX inventories million, generated benefits to strong primarily in results, management, $XXX resulted we flow record fourth economic to million by reduce of initiatives cash the In debt time, allowed achieved the quarter and our we time nearly $XXX generation quarter. operations flow P&L the of us initiative. we over through during Importantly, cash flow. record at

the of an important achieving played Moving role our agility businesses slide results. record to four, these in demonstrated

several solutions and to which in business repositioned the example for the an industry. of infrastructure fastest-growing engineered are reshoring on focus As construction projects, our sectors

repair, our Our find of sales strategic volume maintenance by pockets a service build focus where sectors growth compounded offset agility new on helped differentiated and and teams model, declines to the in were destocking. of other construction customer decline our

our demand program operational quickly our than so our holding heading respond XXXX inventories leaner picks our consumer customers can up. We through usually have agility MAP warm months were improved when normal demand the we to also changes. into In group,

were these quarter we is As in in consumer able an was orders. there typical the takeaway to and quickly fill late increase

impact on Destocking was inflation, normalize volume in manufacturing. of in OEM our particularly We Products the cost and faced put declines continued in had the our serving pronounced this profitability a profitability. place Specialty which segment driver from at businesses we inventory Group to additional initiatives headwinds SPG FX, particularly

Turning to slide five.

serve. in headwinds. currency growth in despite teens significantly area in These sales regions to at to investing digits emerging was infrastructure by we geography. single growth high strongest that Sales high between foreign well-positioned where are Looking are range markets an

improving in grew nearly more FX conditions. sign Europe the after challenging economic X%, than a declined the excluding performance year of quarter, but first of headwinds, Europe

division Group the up adjusted and We in in sales Roofing half in XXXX Tremco Despite X%, for our a improving was year XX%. with the Construction nearly Europe. one finished particular challenging the EBITDA results RPM driving with second performance fiscal solid improving Products

cycling cost price/mix new down and XXXX us; from a and raw The highs. materials year. dynamics our finally historic now mostly disruptions with destocking, inventory challenges improving customer fiscal These to behind chain an strong of major indicate supply start dynamic

to results to to over the cover our call financial turn in like more the now I'd Mike detail. quarter in

Michael Laroche

Thanks, billion, was X.X% record. growth acquisitions $XX.X quarter contributed FX X.X% or fourth $X.XX Frank. $XX.X X.X% million, which slide by Consolidated Organic X.X% sales sales X. or to a of sales Starting sales increased and decreased to million. $X.X net million. divestitures was on or

to historical the MAP prior record year. Consolidated chain and a adjusted XXXX disruptions supply sales margins driven of increases, benefits was million. towards The EBIT and fourth $XXX.X by averages quarter following increased was growth consumer the X.X% recovering

declining took and cost also in SPG volumes, in segments. We actions the reduction quarter with CPG primarily businesses in fourth the

a pronounced to more share higher compared $X.XX they these quarter fourth QX was modest had actions The interest primarily the on by profitability impact Adjusted going diluted forward. were $X.XX XXXX. in a impact driven While per of will decrease have expense. earnings

Turning slide to segment on results X.

X.X% admixture sales Our X.X%. net $XXX the sales was reducing quarter Products Construction achieved fourth Group translation concrete capital growth with increases and led prior currency reshoring foreign X% contributing strength slightly related sales by benefited repair products, Organic spending. which and acquisitions and of record infrastructure and growth was million, year period. by in Sales up from pricing from

negative maintenance for increased structures, was weak the sectors, construction residential strategic differentiated destocking. new impact and service on its systems and roofing commercial focus of Demand benefited repair restoration parking for in model. which facades customer included from which certain and Demand

more million, Pricing internal to increase reduce and reduced $XXX.X from fixed period. of leverage volumes and benefits Adjusted XXXX cost inventory. increases was X.X% from the initiatives lower EBIT than year MAP offset an prior

I As we quarter. CPG reduction in took actions at mentioned cost fourth the

a record by Revenue achieved X.X% sales grew million. another and projects. $XXX.X infrastructure reshoring Organic the slide, was Performance capital to increased driven XX.X%, X.X% and net demand engineered added foreign X.X% solutions and currency acquisition sales translation segment's On EBIT. adjusted the for Group Sales were of for the quarter next headwind. Coatings strong

These sales The are $XX.X on was contributed of strong prior and pricing top EBIT XX.X% a also fourth growth. year increase XX.X%. to of grew by the benefits. EBIT million. Increased growth strong increased demand energy quarter segment's XXXX when adjusted MAP a to results driven record Adjusted and

million. the year sales divestitures translation period currency foreign sales X.X% prior to Turning a acquisitions Specialty declined by and reduced XX.X% of slide declined headwind to $XXX.X Organic net was X. of Products sales from XX%, X.X%. Group

OEM weak a fiscal restoration reduction to a which manufacturing destocking. in of due sales disaster had customer faced during it progress strong made was comparison its to quarter the in demand our microchip chain challenging segment activity, fourth business supply was compounded quarter by resolving XXXX, issues. as when This the

SPG third from sales increased quarter, furniture fiscal of comparisons the faced challenging divestiture more of that the During XXXX. warranty non-core SPG XX.X%. in the quarter also business

or million to compared year and a decline lower prior of $XX.X related Unfavorable the EBIT resolution million a also leverage EBIT. impacted a decline $X.X adjusted fixed cost period. SPG legal XX.X% matter and to expense the of was adjusted drove the mix product negatively

inventory concentration was by most has initiatives. RPM's of normalization highest intercompany Since SPG impacted sales, it the

We with also align to took cost demand actions the during levels resources quarter.

Moving sales to headwind slide to currency X.X%, in Group record grew Organic sales acquisitions Consumer million. increases XX. X%. X.X% was from continued translation fourth contributed $XXX.X inflation. The group increased a sales to a The of benefited X.X% response pricing of consumer quarter and foreign

quarter. as declined in lower was Volumes consumer the takeaway

described the the of increased Frank earlier, demand helped end limit quarter as the our at declines. to However, respond quickly volume ability to

expect had offense. products abrasives. and playing market. in continue we space we We aerosol And gained we paints the shelf market to innovation to Additionally, some to summer, offer share over the and as to return wins new

the increase of million. Adjusted increases the chain increased supply The MAP were EBIT of approaching to drivers the following sales $XXX.X as solid initiatives, of key resulted implementation margins and prior XXXX in XX.X% successful in as averages disruptions well historical year. profitability

like update. cash and to turn the I'd a business call over to to over Now, go sheet the provide balance and flow Matt

Matt Schlarb

Mike. you, Thank

mentioned cash progress flow on seen and quarter As XX. in we earlier, our prioritized Frank the slide during be results can the

versus from reducing inventory role MAP to building enabled million continue structural fourth add inventories and and important in our inventories the operations million in quarter. We management from chain. to an in fourth improvements make XXXX. This to progress cash million by the played resiliency We of flow $XXX.X generating during $XXX.X also year, quarter were in by we both record reduced prior quarter supply the inventory $XX.X

chain capital we the million debt investments debt improved quarter. reduced by $XXX in We supply during working with these funded so fourth as nearly our

to $XX.X million We and return in during shareholders two bringing in continued areas $XXX.X cash to fourth also have $XX.X full share dividends million the fiscal to combined repurchases million. our in quarter. paid these We a total year

to well of Gare them. Moving how ability businesses XXXX the closed positioned In to the a in Paris be in station of highlight several times six to busiest train our selected its and few Europe, infrastructure solutions the durability, are Flowcrete repairs during day. I'll of Nord maintenance for station the flooring provide engineered projects, easy and du continent's systems for the Olympics We've because installed is slide each XX. hours spoken CPG's about advance

At hydroelectric Manitoba, fire and off-site Northern protection resistant PCG's withstand because system variable fire there's required component weather intumescent conditions plant specifications be two epoxy applied that chosen able in of can material was to was Carboline the Canada.

waterproofing ability Tremco Harbor provide to membrane was of CPG system and of has selected that be Australia, temperatures because a within variety and Sydney weather of a cure tower can hour in In to installed resistance. installation Bridge its an repair the waterproof

to many provided examples projects solution slide have the This shows infrastructure a of few projects. where we engineered

as XXXX investments growth. to to expect global We year build fiscal and infrastructure benefiting continue maintain in

like Now, turn I'd the outlook. cover to the Rusty over to to call

Rusty Gordon

slide We'll Thanks start on Matt. XX.

to to we we saw expected are of look the continue. in demand trends forward QX many As the first quarter

expected a Pricing we increases to quarter normalization is a headwinds with FX, of are than customer including lower continue, MAP this lap destocking, benefits standpoint inventory some to internal to positive, while last expected initiatives inflation impact are abate. pricing fourth larger the summer. profitability From and XXXX still QX but year-over-year implemented be expected several past as

increase in first year sales XX%. account EBIT expect grew consolidated prior adjusted into to to in the and and This top and would single-digit adjusted this comparison, the record a consecutive strong and all low range. XX% adjusted Taking when range sales increased EBIT high sales quarter EBIT for of represent of increase quarter, single-digit the on seventh the is we

expected single-digit is segment is expected to percentage sales percentage increase increase the high is percentage in is percentage range. the decrease the single-digit range. SPG increase range. in the and in CPG the by For expected PCG single-digit first low expected low consumer in range to quarter, mid-single-digit to in to

XX, limited about on offset being and potential makes volatility position end-market year remains full weakness Moving focus demand engineered is the construction as That our reshoring infrastructure our strong projects commercial and challenging. in we'll repair by expectation if maintenance and to longer-term a downturn forecasting there to able solutions for providing that and visibility think sectors. slide we be said, is

initiatives to expand XXXX MAP Additionally, we our help margins. expect to leverage

will consolidated Our current will sales there in to and EBIT mid-teen growth the growth the double-digit range. mid-single-digit achieve we economic expectation adjusted is growth be percentage low in and modest range

of assumes outlook Growth expect not This that year, fiscal occurred recession FX the to the pressures strongest XXXX. the segment, will to unfavorable By by in that less in half the of the XXXX. will is be as following inflation second continue second for much expected challenging year we of half of we destocking a comparisons and impact ease. enter in year fiscal aided

commercial we infrastructure stabilization maintenance on again, expect uncertainty from as admixtures, concrete in focus benefit reshoring we restoration. residential in gains continued building Once continued sector as on in the roofing with and well CPG in continued At share our momentum and construction.

driven momentum continued expect growth after energy as in faces even strong infrastructure markets, challenging we comparisons in year PCG, segment strength year of XXXX. a and by the reshoring, At fiscal

back We stabilizes. the abate in expect benefit easy of from headwinds and half comparisons year to destocking demand as the SPG

than year XXXX. the expect but we transfer, year to provided half the lower we XXXX. volume The I to and level stabilize effective at the fiscal a with the a benefit year year Consumer, at from just outlook At of prior of made is in prior continued beginning from business decline second a pricing, fiscal the

the small This annual shifting segment. businesses that transferred of see to from had been revenue, of On is PCG. segment international our about relatively part June CPG million you'll $XXX with to the a this of the XXXX. the provide comparability, in This concludes reflected financials will prepared for on ease I XXXX, CPG a In impact October, few PCG previously Xst quarter in prior of our XXXX we first outlook period just basis. change QX FY Again, and provided is remarks. fiscal our old reporting, starting the recast

your be will We now pleased to questions. answer

Operator

begin now with Please the come question will And from [Operator question-and-answer our session We McNulty John with will Instructions] question. go your first ahead BMO.

John McNulty

was for And results. taking to bit it better guess, understand things I question. guess, for really I some dig Frank. on to my morning, a Thanks business Congratulations Good up one than quarter solid better to into reasonable were you into numbers. a as I be of wanted the expectations maybe when the coming under better result putting factors a there this and sales were a that total – construction expected

help can in destocking – it you better expectations? was different from you expected of stronger guess that relative the less – – and certain of to to us in you construction about I was original characterize beat or in got think kind progress? what terms was just I demand as things sectors, was the clarity on you would guess your how what

Frank Sullivan

Sure.

experienced that the do than with quarter bullwhip it starting of think our we've experience construction had Rusty ever across QX, was inventory more including talking the products. we more the calling was in effect destocking and about in of and we to second businesses segments certainly that pronounced I has things seen what been and

some it spring. honestly, happened think in in construction this normalized inventory channels significant coming there levels the And across most as of years but position. more certainly in And but in is distribution once the case our chunk quite inventory our of products. improvements I this made more destocking the of particularly was we come to businesses, big a There hesitation

stronger weather and seems resulted in and the improved early finish, summer. schools, related Roofing in up as seasonal be all so in of schools economic as And normal which of activity also May division a the continuing our June, and out in to picked to led early parts kind the pickup

of levels the strength construction And only some but or really end more positive business. the the So to a to of in than not in towards QX way. up in starting are Construction inventory, destocking normalized parts skinnier business products in cases think our occurred Products other quarter the I show our usual

John McNulty

Got it.

material can little into guide method, longer a about XXXX accounting takes go Okay. space. I wanted roll material to you No kind so as I your through. progresses I accelerating just FIFO raw deflation help clear. was to helpful how second deflation. are think and you to that's like it's thing the It on you us bit it looks in dig through I kind and or guess, increasing of across guess the of raw guess, a that year? fiscal the theme guys

Matt Schlarb

Matt. is this Yes John. Sure,

material first So our we're as expect quarter probably the throughout be what move bit see we in we the to a to we think we'll expecting And little in benefit range. have the about of deflation. as on mid-single-digit it year, P&L from raw down then

for looking and things of We TiOX that's raw just the some sticky in labor still inflation are in and that's packaging it rising we're the for Now how and have forecast like at materials like that's but our included year. materials.

Frank Sullivan

industry, increase as there raw materials that, John. our in margin. typical of elements been when I price. to the we us we So get this dramatically cycle a is add they as is time begin two we between particularly, down, and increase that to as the And more did can One then has as and for up pick comes lost experienced, would lag as

so And are beginning of at the that. stages we

Just levels to margin aren't still of pre-COVID consumer, of activity. our pick one back segments we on to

margins. there's those to So come more recovering in

also from only with cost more price and XXXX. margin which to Secondly, benefits costs, XXXX. not million in we'll our improving good real continue $XXX-some improvement fiscal benefits see had to are fiscal We'll from gross or really for relative raw material continue but MAP mix

fiscal by and the masked of volumes production they year the lower shutdowns adjustments. were And half in half we unabsorption XXXX inventory second hits second deliberate took of the in and the by

improvement things so solid demonstrate those And pretty to two gross combine some fiscal should margin in XXXX.

John McNulty

Great. Thanks in color. for the back will very get I much queue.

Operator

David Our next go Huang question question. ahead from come Please Deutsche with Bank. with will

David Huang

Hey, Good morning. great.

do will I construction, bottom? you those commercial Just And I the recover? construction expect on guess commercial the do when hit guess, activities think you

Frank Sullivan

really banking read regional for have and and the headlines that -- in does of Yes. insight I which tightening that banking market good commercial about right don't critical now providers projects. everyone construction into been have we credit the we else same

activity anticipate we in not the commercial provided So any construction guidance does per rebound or se. pickup

I spent on construction. up to been to focus As have facade forces by Construction are different really Matt and sales maintenance back able dollars and Group again. Products driven adjust that's the and repair commented being And picking the and where decision restoration different dollars our really and commented is commercial the and normal our of making activity roofing

in insight it's that pickup not whether So construction a soon. we have space into but hospitality office we commercial good do anticipate don't or anytime

David Huang

Okay. assuming comment a can if maybe there any full of year on guidance a the for Can there MAP. additional if you recession is recession. achieve mild levers I not And guidance? guess you're there's I I you to then low is the your know guess But end that pull

Frank Sullivan

Sure.

very have know in of promotion some an consumer. I marketing I advertising activities just concern that's in QX SG&A up our you particular folks. deliberately XX% year. last in We a from tell and number businesses in a growing invested example of was can

there supply mind was last promoting we in challenges the was stores no activity advertising we or and to deflated to drive because had in point couldn't or people some year supply Keep sufficiently. abnormally that chain

category that XX%. is year full the For up

And so promotional we dollars. and those rebuilding in marketing particular consumer of across businesses a advertising and lot are our

back. we progresses we There areas what we anticipate can discretionary are the economic other see cut challenges where year beyond as

sure doors, or in volume five market And in go businesses, OEM, so housing recessionary last the construction you we businesses terms in of feel into the four of us. will serve that in to months about that's commercial certain that talked kitchen just particularly, our cabinets, we things tell certainly there. that that I OEM

mitigated is that we're starting it is to out positivity and progress of yet of a the we though being us not year we're hit come one of most construction residential Contrary XXXX. which for to it. for a as seeing commercial headwind construction, So was in hopefully area throughout pickup

David Huang

you. Thank Okay.

Operator

Seaport Harrison next our And Mike Partners. will with Research go question from come Please ahead.

Frank Sullivan

Mike. morning, Good

Mike Harrison

Hi. Good the there follow year. to up resi to comments morning. construction. the on I on Congrats on a finish nice your wanted

business, it you and called repair seeing as well residential as in You resi I color small bit the more Can as for guess, new on that markets your stabilization as maintenance XXXX. out potential and trends you're the positive both a give residential a little side, a relates projects? to in

Frank Sullivan

Sure.

XXXX they we've and a our homes, their price where declined. is to in in was new particular So headline rates become for the went. as if if share but has Nudura home interest sell residential more going of a exposed they're construction somewhat because summer in a the in year for higher where middle instance they a residential the value year they for their growing struggling in of fiscal kind products and Canada to maybe and US construction products it higher construction not starting group rising people concerns on facades price believe we I stuck for it, only about in to you for we sizable of were of last in And And put -- get have pay trap share some with a the of were and the ICF there. that entire

turnover housing So slow you saw down.

the trends, of of rate construction we funny We long-term see underserved are residential dynamic a versus it's that But in changing. demand. by terms because

the and we Nudura that, think residential in and new a homebuilders us products high sealants the stabilization you XXXX combination should follow that serve lines comps in coatings and a product that see starts so as into anticipation of pickup easier as for are and profit And a well. like I of go

Mike Harrison

then a And you to going in maybe a those All cost heaviest destocking what's you more when your maybe give business. impacts Can normalize? you're expected also impact. destocking seeing guess are and fixed if right. internal little the you stabilize I be just on us customer bit of can where specialty detail lot is This on or to help where seem understand seeing

Frank Sullivan

Sure.

cabins. our tends stains well. OEM serve doors, and still that into elements go the actually into especially as So, go housing to market kitchen again, manufacture wood We finishes residential that

share again, which off We kitchen then have to go Woodworking, particularly residential in which hotter dramatically year. Amish was into with cooled nice cabinets it's into go We last or wood. and whether or sector, a in COVID furniture the specialty tends the RV

Group there. of specialty all meaningfully. starting raw or have And chemical of So of experiencing and those Products business more negative trend the DayGlo company material with supplier. same chemical if what's this is just a more when also follow the really part in we're you a happening specialty commodity been down our is it's environment deflationary Specialty

business annually was but $XX RPM that And and million business, the the $XX that at good SPG and will protection to then about lastly, business, revenues found next furniture million about revenue in It's annualize a we divested lost a not but was Guardian margin this that but of that high-margin home meaningfully for spring, $XX core higher very year. million. But average. warranty than revenues --

Mike Harrison

All right. much. very Thanks

Frank Sullivan

you. Thank

Operator

our Please from Zekauskas with ahead. And go Jeff question will next come JPMorgan.

Frank Sullivan

Good morning, Jeff.

Jeff Zekauskas

always Sherwin, think listen case PPG about should And want they to And don't good be. time, on Thanks you the to somewhere of of much. points. are and look Sherwin-Williams them period When margins they're when you very of results XXX a longer this over between, gross quarter focused in and what Hi, margin basis gross XX be up their morning. at know their I XX. I the

you hundred And with XX% close to days are I to a RPM, old quarter. in low the your that. don't be of basis up something in this XXs, used gross points maybe like know margins And the couple

about why you How expansion that get about you to you And this or great? gross targets margin gross do have talk you back the Can isn't feel in Can number? XX% company. coatings your a exactly not you're Now do XX% margin gross the future? margin?

Frank Sullivan

an it's 'XX RPM Sure. area question a significant Jeff, MAP great for of goals. and and our that's focus

gross of reset freight were you it profitability incorporated XXXX for a we years of were is to we come so our accounting first for most raised and We couple have of out margin than it a this our number aware prior, SG&A, about of high. questions how differently so So, all, SG&A peers. of in in

all the changed in XXXX by accounting that cost of sold. freight for our we into goods So, of incorporating

readjusted be that forever -- So, and XX%, correct XX%. used gross that peak so to our about to I -- represented peaked margin XX basis, on close you're equivalent in it the XX.X%, almost is think

the that's about so where peak our gross accounting to think that right for were margins And way allocation on an basis adjusted change.

We to have initiative. ways in set XXXX XX% our of a we MAP Clearly, target go. have

making are original and whole inflation We progress rapidly in the chain then relative good like the and back industry the really to of rising the had did challenges. initiative supply step MAP discontinuity significant

versus we're coatings We they're on FIFO LIFO. on similar are but to accounting peers, Sherwin-Williams experiencing dynamics our a and

So show in P&L, XX benefits later. our typically, our would up days to XX

nicely are About comment revenues And different so, our but by is which dynamics of more correct. different cycles you lastly, Products I the that. economic business And see than pure-play coatings companies. would made RPM's expect here XX% you profitable, driven Construction to and

Jeff Zekauskas

inventories, lower, that. for you will the inventories Are your about came right when capital. to now Thank working higher your level? and difficult think be from really just lastly, tell? Okay. Do too then down inventories you a it's or at you year benefited or you level think And the of

Frank Sullivan

sense of just be. it other there's needs is our to with or One areas the and So you sound the in our year working our is over is about, talked the focus. great so two profits, last been to Board capital. gross And like discussions which you've that strategy we of capital working where party not some

peers elements market. probably our in about I We success of are talk broader -- versus different the our can

are capital, we a In laggard. working

And four should be consistent of three points so there the capital next XXX of basis RPM years. working on or basis XXX to over improvement a out

working about, RPM even we We I We improvement the consumer turn years to took back about the we in turn Street than our business. right experienced quarter, absorption to three on things communicate were to and not to that this we're we're but not able a it production attitudinally and were hits off -- think the maybe so, better And that ago. different capital or concerned it's able four demonstrated the do. internally

the And by will operations to take absorption aligning capital working we continue hits and of see efficiency operations, if our more you our improve.

that's last think gotten that's attention the also a X.X over lot I smart our question area years so, with very of a an Board. And in

of an MAP basis You're curve. program our are cycle but again, good to is significantly benefits where peers, seeing it's the behind XXX and the or we 'XX XXX in the And cash more versus there area conversion QX, come. the points

Jeff Zekauskas

Great. Thank you, so much.

Frank Sullivan

you. Thank

Operator

And from next our Stanley. question will with come Please ahead. Morgan go Vincent Andrews

Vincent Andrews

Thank Good everyone. morning you.

the terms the about point what selling sale to the of little what seasonally picking give sort you're versus in of tie actually wanted seeing up about as you're Just past together your of Can quarter comments have demand in progressed. you consumer you us in? a color as

point quarter that are sort down us their was are that what narrowing customers help doing low understand sale to still between gap the if I customers is but your just think is what improving running you said last of and it digits doing? And is mid-single of

Frank Sullivan

or a function and XXXX. single-digits in throughout consumer it businesses spring. patterns. low changes was it unit consumer of sales last our takeaway of high quarter product in And last were of year. double-digits Sure. negative consumer takeaway that the the and most The of were first was spending this volume unit of we consumer in positive rest negative lines volume experienced And or fiscal Part

inventory our you destocking chain adjustments disruptions our chain about types things DIY within supply for and/or relative and about of less challenges businesses. read post headlines inventory and to stuff including can more COVID. was aggressive Again experiences the in consumer all supply Part areas it of

supply and into fourth in doesn't think quarter quarters. And from rightsizing lot were happened of lot consumer. in consumer won't chains own the our I we that takeaway things It lot still customer But the improved prior two last those destocking chain spring by issues so while a us. of that time that it in or a And from future we a the product the inventory behind supply to got of was mean the the relative corrected. have negative see was

would So, week-by-week picking consumer consumer easier products and because we'll we're also the up because some we're be of some in new be part annualizing of seeing part introducing to expect what I we're terms sometime in us this market of share seeing negative and gains the takeaway. comps fall positive in

Vincent Andrews

of on Okay. on sort just to going that of you to first could want shape residual XXXX that's up follow the handoff fiscal specific be fiscal year? And comment XXXX residual kind a the maybe in segments system the the like between if the it seems bit there's I of year of the maybe destocking the if of the in half price a and

And of of of presumably the the right like back then about to think been half EBIT more then deflation you're you're way the anticipating see about. the to year recovery of the the shape fiscal a it volume line seems the and less then quarter? that we've Is more and to going pricing talking that

Rusty Gordon

here. that's right is Yes, Rusty Vincent. This

of in up comps The of fiscal obviously double we XXXX fiscal with up first the half EBIT have digits in range difficult first mid-XX% half sales and more XXXX.

made production. as in well the suffer we half back under-absorption course from to We back as conscious effort the XXXX of throttle of did a

in So, easier we some as see expect XXXX fiscal pickup on that we will as a do growth as result comparisons. yes the face goes we

Vincent Andrews

much. very you Thank

Operator

ahead question America. your next Bank from come of Byrne will with question. our Steve go Please with And

Frank Sullivan

Steve. morning Good

Steve Byrne

segments what's broadly and million businesses of This between reshoring infrastructure the CPG given benefit And Good could level more sales in commercial logic morning Frank. think more of behind of PCG within do and both these where businesses those is maybe that? from you combining segments? at the of drive that? two least potential $XXX What potentially cross-selling you a between there at having logic them

Frank Sullivan

Sure. another And of sharp again strategic kind really question.

India, East, particularly, Middle the small world, Group operations Products So, our our more Southeast investment relatively of Asia. the Performance needing in had in like elements Construction places and Coatings Africa, developed and PCG, and Group

approach. rather platform it a alone, go done taking what we've is And than

a is a and the PCG have South management But of gentleman dynamics sharp leader runs We out there success success the his Boonzaier. platform of named Grant their and particularly his a group. because the He there leader team is team, they Africa, have business had a the group had years for original businesses repair products South products. construction Tremco and Euclid there And platform our were Rust-Oleum they've that which for Carboline and so Stonhard. Africa then for many the concrete in there become of that

they that in taken Construction are the taken Group have construction Southeast East the in We've combined is Products as those the developing operating model Construction and again we suggesting and on businesses part Asia products the a PCG, you're Products Middle of in India group group and basis more and business in Africa, and Grant countries.

And in We India of will report are and in Asia businesses investing serve facilities that those in Grant Boonzaier. lines. multiple all product new will Southeast to now

the have Products reporting shifted PCG. consider to of Construction they reporting platform to our from group world that's So part to the developing approach what we and

in drive a that, So on of their synergies this margins primary million on if I on guidance. quickly improving would that cost, driver expect make expanding have synergies they more We comment revenues consolidated Last would or that's effect there. no it own way results will unit than whatsoever and on of our the revenues. $XXX operated in to shift

Steve Byrne

to on power you product remind And believe leader Home me provide in them. positions have paint And still gains? Depot with consumer, this and pricing these aerosol as can I maybe guidance you them Okay. of do share more particular I is about you ask have and/or in categories one to it's are enabling that more category you a Frank, enabling in

Frank Sullivan

we is and leader we think customer that major in of in which you and channel. with So The every customers every our is Paint category major only are Stores. first of would of partners paint the small-project our gather retail can one great all are Sherwin-Williams exception you in all, easily that

understanding we profitability. are so analyzing partner and And a consumer takeaway in

many drives the years And is our brands. drive continues and been so What new that's products and really true doesn't that strength profitability for profitability. of innovation,

into we're and one now, a It's introduced first stop just spring Rust-Oleum patented. it this advertising thrust category. It example, for their cap. five was spray in introduced primary so And

that one tip. in see You'll five patented spray

will and new of number So a benefits a or a consumer down be unique taking to will a in and and that a spray, it of or product product introduced pretty more light fan a spray product. fan to can be introduced the like narrow consumer adjust a allows get up the across a spray, spray, consumer has it that DAP products one of putting line. the foam a -- two-component heavy Pro

player supplier We're become we to as a so ceiling intend products been major in far which a that well. and popcorn for has space coming out with dominated other some single spray by

more understanding than strength that So I maintain the of innovation and and product introductions it's brands us allows terms we relationship our or have of dynamics. consumer to levels price customers the size so the the think new business with in of

Steve Byrne

you. Thank

Operator

Please next Panjabi question Ghansham go will our ahead. And Baird. with from come

Frank Sullivan

morning, Good Ghansham.

Ghansham Panjabi

Good Frank. morning,

quarter, qualify This a Frank environment So operating you the as was in old-fashioned last April. current basically recession. good back

your whole, to the or -- you thoughts as home either ago? current but residential months your you to on updated qualify as categories new backdrop, you relative better on that curious what three worse what how construction a touched are Just would saw other maybe or any

Frank Sullivan

three that months digits looking mid when months back for as Well, and specialty products negative is high a it market ago and unit prior, group serve us. when North to -- of terms that in volume residential a April, you're to in like products are elements negative sat in there recession we consumer construction group of single three the the felt was Sure. America and your sure takeaway

the companies of of the portfolio. exception our the Group improvement rest Products With seen we have Specialty in

uptick five And in rest which signs were summer Roofing dynamics for market the going division residential and anticipate waterproofing. the of construction for And so saw see negative end Products different better of our the an it while much a than modest Group quarter we a and still Construction We into six the months. consumer or was that, actually it's challenges particularly in we of bunch the the period at year. of we're the in this are more changing takeaway, the by driven

lights operating So a few we green few just is in -- lights than are how four or nicer which and a places yellow three turning where to red felt we even quickly were better ago. our adjust we're I place way as And than MAP credit months we say, to to did to people in is ability I used program these it be. because I'd as be our lastly, a into lights our dynamics guess

Ghansham Panjabi

the relates when significant then prior segment relative to they And to to to that the the the year-over-year. in drove it the What were it. margin specifically? that fourth declining quarters construction as upside there and increase fourth quarter few Got specific quarter

Frank Sullivan

distribution I in destocking earlier seems my here. anticipation but within inventory our and like direction. that right that also and our internally Much was some supply corrected and on comment with And there for and consumer to challenges chain things construction products have the internally across itself. We were think were dealing moving

is until quarter. as their and The in say, question our had first May. that And experience held we we held it we was showing we at, our pricing up the in everybody a, I inventory discount. a positive or were enter needed And boost breath you whether June. trend continuing they let's if and to were that And think discipline. And that held started hinting we some going few distributors May can product

Ghansham Panjabi

question. And it. final just Got one then

you're relates delta it XXXX operating contribution or operating for also towards you as leverage? terms would from to the what is is fiscal leverage year purely to it guidance, fiscal Is construct MAP, have versus your guiding the of delta raw towards year Xx your a typically deflation? sales relative materials So in basically you're guiding XXXX between what

Frank Sullivan

prices cycle went cycle during It's our experienced I they industry this did catching commented this with behind as we're a particularly as we curve up you quickly up. as of terms When combination of as earlier. look our at and both the in material raw

deflation we the versus versus so of were prior experiencing year. the few period time to the businesses But profile we're first our and pre-COVID. the prior we back for margin not are in now a And in that

work so there. got And to we've do

will positively right doing we're cost hard other MAP the and be fiscal part was the the a we're of of benefits we're So as We that price talked million see And plus starting about to that in it It things and industry. talked about find. $XXX is it on benefits of mix to talking XXXX. our about the ground. we benefits moving

internally. of lower to $XX marketwise, had second gross unabsorbed production P&L of but in year half a profit volume hits of last our our as We inventories in also the million in result the shutdowns right-size

see in to margin of working that environment, to we're add covered lot MAP MAP those benefits get so expansion. for those rising you'll hard to and to back which benefits start open a And that a volume unit

dynamics, the we growth be will what modest year. relatively the meaningful margin those revenue half for anticipate expansion, So first pretty on are of at that two to drive the a least

Ghansham Panjabi

you, Thank Frank Got it.

Operator

And from our Spector ahead. with come will Josh next UBS. question Please go

Frank Sullivan

Josh. morning., Good

Josh Spector

Just -- Hi, morning. Hi, – a good

quick a Just of follow-ups. couple

you for first the First, talk pricing what's your fourth just can -- quarter? assumption the in quarter? what was And

Rusty Gordon

Sure.

first would selling quarter, and the increases lapping be quarter, expect pricing various have increases the of for benefits, the and course, quarter XX% that of in to fourth modest price catch-up do going days when in product selling in we it were up get the inflation. price to at most rampant XXXX. In between of terms lines, segment, had price more major done in first continue the we it just in we year And will last impact. an was RPM the X% consumer more saw the still anniversary of somewhat But that than We diminish we'll modest. because

Josh Spector

through actually underabsorption I Thanks. half roll-through the quarter and on first the comments to what's expect Thanks. you of talking that you And the inventory, baking just, just further cost impact your for you or you're impact? ramping that or that into first up just And the efforts? are about is guide quantum construction into larger get believe that first the under-absorption, I specialty guess, half. made maybe some when and

Frank Sullivan

Yes, XXXX. to than I were they be them XXXX don't in expect fiscal in larger

half. be positive to particularly have unabsorption, everywhere. will second of unabsorption volume level some they'll have some unit until down we're the fact, of In in where still But And level we're levels. still continuing inventory adjust smaller we we'll

$XX had unabsorbed year, have to challenges. we into earlier, bump million $XX XXXX, on we more than full But do. we million substantially or economic As in the would costs, we fiscal have less unanticipated I that some of unless commented

Josh Spector

Got it. you. Thank

Operator

next Wells with come Sison our Please ahead. go from And question Mike will Fargo.

Mike Sison

guys. Hi,

Frank Sullivan

Mike Hi,

Mike Sison

and quarter outlook. nice a on again Congrats,

Wave going As all lot $XXX math, the of million of it doesn't growth. of XXXX is or your two So, if for you're like kind looks I seem growth to something in I like some, like like did It then there's XXXX right? a that it's deflation have number. savings. in for versus MAP recall, And and volume it so some

math a conservative. So, like it the Is right? bit your -- I mean outlook am be little seems could I there doing

Rusty Gordon

and outlook, as the masked didn't that be terms we And declines in we QX MAP were because to around see benefits see mentioned, of outlook will volume as by the is to for get they last turn then in start underabsorption. year, modest QX. Well, into Frank we

compared to So reason, the the did we an last the months, outlook for better have first in year that in total actually where full is nine quarter.

Frank Sullivan

that earlier. commented to this add Sure. Mike, And and would I we on -- just

have. Some of them all have time, performance peers of not of over type our same had a period but of the strong

growth, including lot was unit In XX%. adjusted volume EBIT X% QX, were up up and XX% sales Our sales up was of XX%. last and were year a EBIT QX of up

So records. -- and those were all-time

year. So, the of climb, we in got half some big mountains to the first

what slowly the we in that year be but more to growth mentioned, dynamics we're and Rusty the growth, we and the going more sales comparison modest reasons EBIT had with big confident, we're that of think that growing modest just to and prior for numbers. generating see I we're out where

And October that's and couple what the volume November bottom we in a -- And were solid boy was year, as of MAP-driven and really of January high-fiving spring. everywhere and fell in then, out starting unit December, growth the of leverage was we all in in businesses last and good. we because our communicated our

combination five a earlier, mentioned than were I ago. as improving economics. a it's And four or agile think organization I maybe years we more of

Mike Sison

Okay. Thank you.

Frank Sullivan

Thank you.

Operator

And John Suisse. Credit ahead. go Roberts our will come next Please question from with

Frank Sullivan

Morning, John.

John Roberts

share? any I the data comments share or you shortage on that lost the new think, category during Back product consumer, some the growth of you to regained something have pandemic. suggest because Morning. alkyd your Do might some on versus you growth

Rusty Gordon

Yeah.

paint picked this have share at a center major small-project up home We spring.

has you're So, share project to. that's up us paint referring for in what gone if small

Frank Sullivan

Yeah. Home Universal, spray elimination and what is this their was business year, paint a more product one almost some We've and We which products. in of portion for our of lost that channels other Baird lost making entirety the Depot. -- parts cases was to reposition of instance been of able are we to transition. of from last In high-performing category is it news up in in we that the

major And shelf as Rusty some other said, share we on with retailers. picked up

to addressing. playing a back year chain business. our challenges. in were we our that operating we're supply So, ago offense consumer we had Boy, had We own challenges

to a corrected. the issues at been as customer. as with loss I share market much had Those have anything that think major do

on to lot capacity than spending take enough on more more business advertising have a more online. normal We some promotion and TV in our

we playing And in new to just ago. having and be terms going introducing offense a after of volume aggressive products, we're ways didn't share the in that so, year

John Roberts

thought prices I probably those then, energy pulled highlighted the had customers PCG, energy back. think And with I on the lower customers you

Frank Sullivan

We're in whether still growth there some energy offshore enough, production. and markets gas the seeing solid it's a fracking. has been resurgence Interestingly in

area the the thought, solid suggest least people there's been be business. geopolitical energy some in persisting for year prices while a will are with to I that slowdowns the in next us that oil so, volatility relatively at than continue China where to and for issues And companies per longer se think

John Roberts

Thank you.

Operator

question Fermium Please Research. Frank Mitsch ahead. come with from our next will And go

Frank Sullivan

Frank. Hey,

Frank Mitsch

Good good been inventory days flow. down ahead conference Hey call Rusty. delivered the the but Hey, of you nauseam, Last well. on cash obviously discussed Frank. come has Frank. obviously as were in that. Hey, your terms debt said morning, And net And best morning. quarter this at has that question

buybacks current last bought M&A in versus about So you cash How question the it the back thinking million are couple environment? $XX.X of you quarters. use of pegs the

Rusty Gordon

that. with of smaller the with into we the the acquisitions acquisitions. if couple and terms of of last will all course potential been couple with over Yeah years modest The bigger been of being run has share be COVID it last repurchase, use before in whack. of economic uncertainties out years doing multiples over We've biggest

in level acquisitions acquisitions result share relatively of the a the But ability know we're you prices repurchase. have small, are enlarge of those expectations light. the very inflated the we you from in pay. And to come disciplined as have If we As stay correct. minimal will

Frank Sullivan

Sure.

think be would expect opportunistic year share would So, I dynamics. we market next of relative somewhat then maybe to repurchases million and directionally $XX

debt favoring transactions. reduction small be will We in

get discipline dropped for markets on the year that And part from from two M&A of global M&A a buy well small a sellers on earnings dramatically. scale and The smaller And globally to again two I both deals midsized to side been on as or deals. good ago as of big think the have mid-market was ago. big year multiples expectations or there's

And rate incremental cost general, to you'll of in environment capital. see I cost think at some a capitulation of relative and interest also higher point but capital the higher the

think M&A of were the valuations relatively I some undisciplined.

zero. for true was Some private incremental practically a of of because capital cost of that came of equity, time not That's anymore. out your period

debt if will our -- stock. so, improve reduce modestly cash repurchased sheet balance to can we flow utilize And certainly free we

balance our consecutive sheet our right to when they will for price. XXth opportunities of October, milestone, up the I nice advantage our that year in be think then that a dividend position it's increase likely when Board and we'll at the meets show take

Frank Mitsch

you helpful. the FX seeing quarter, What first Europe, bit weeks your seven that here And for or a Europe? so are that little Frank What are region? we you quarter. Very are Got in ex fourth the up actually indicated was you. into in expectations

Frank Sullivan

great on that and and it's and we direction. saw It's is sales that's seeing uptick row. five in I a you're that. positive at modest we're of modest appreciate continuing. Sure. like terms us quarters earnings of the and a in modest, question, or QX in picking for six It's And modest, Europe end the hurt it's up everything an but

direction. expansion. right seeing So we're moving seeing margin sales the in We're

it seen but reorganization a one executives actually accelerating have there responsibility which we dynamic and the MAP Europe our in and some on Europe, for take that in which focus America. there quarters. of in is -- moving some of six growth We're revenue programs five or haven't lagging for done I call expansion wouldn't the North the a doing Europe, is top margin we've And also MAP underlying a positive initiatives and

points would of a future we're of time none the a three excited my two or for light growth whip there's shoots over row. we've about a going years, volatile six years. seen like into excited get five Normally, I when we're a three months we'll three-month all last and size -- in to given it trend about feels or trend So, ever that get we've or the projected the in it's or and that And last us than have guess key the the of two seen lot caveat I would of experienced of of a all more seeing. period to that be us

Frank Mitsch

you. Got so Thanks much.

Operator

next come question will KeyBanc Aleksey our Capital Markets. And from ahead. Yefremov Please with go

Aleksey Yefremov

on talked end this Thanks. in but you Hey Frank, you just some uplift this mentioned Good seeing historically calendar wins in infrastructure everyone. mostly acceleration XXXX, more you think think I morning, about the the in Are in US call. market particular? of I

Frank Sullivan

there's We significant sector benefits specialty in of long We're We've there. onshoring investments areas. fireproofing coatings into other provider are seeing seeing and a from the flooring tech and been onshoring.

us. And so that is benefiting

You're marine areas different highway good investment. seeing you're seeing pretty where

markets. all participate those so in we And

build, positive the $X.X going Performance for over track our a money because but And of of little amount flow hard Construction a hesitant, I'm of is. Group. to it's our through, it's what portions period in And it's to Products that infrastructure and Coatings bit a tailwind trillion Group where certainly all time

Aleksey Yefremov

question disciplined in then to on is been far? areas especially How on Thanks, another projects And Frank. competitive pricing. the environment, have has you bid where it so

Frank Sullivan

hold been able price, of to our been where been we've have Historically, Sure. most more our not pass-throughs. The of commodity true categories that most to and businesses. has on

value in catch and and have in of portion So, areas well. up commodity thought lot silicone Group silicones, the it in Products that's a had moderated silicone rose the of prices price, silicones, dramatically. sell more it prices through, And our to silicone of as on DAP We have in package kind prices and dropped, our true our of we space of some Construction as we business.

I is pretty Probably would go you there. down the in up highly highway where portion area prices tell only we've other competitive seen historically, the and of infrastructure

some prices the of so you'll raw down core up based go And on materials to go see those underlying and systems.

than hold point. on been But and that's what price, historically, this we're other that able at to we've doing

said I and continue would got margin some expect the up, As pick that I foreseeable to for lost we've to future.

Aleksey Yefremov

Frank. Thanks,

Operator

And Vertical with our come Research ahead. from Kevin question Partners. Please next McCarthy will go

Frank Sullivan

morning, Kevin. Good

Kevin McCarthy

Good morning. How are you?

Frank Sullivan

you. Thank Good.

Kevin McCarthy

To come benefit of sounds the to It generation. from reduction cash back of ongoing have some like subject you inventory.

XXXX be to comment capital your as extract working So year? that as capital able the expenditure well you for you the fiscal on budget can might in

Frank Sullivan

year for The the CapEx Rusty. budget

Rusty Gordon

with we line in were fiscal in be will it where Yes, XXXX.

Frank Sullivan

which hindsight our rather or The sales I to million XXX the improving next earlier, four I XXX goal in capital, capital as the by points achievements a then we years. And a Yes. is comment over working basis our working report other on than so. percent I'd made $XXX of or think, have of three

simple And we bit math so XXX better year a call if just do basis maybe the do than that. a can little it, you points

percent apply on should top on a profit revenue that points if generate profitability. what generate cash to be get that margin you would you sense can a we our XXX sales, as growth basis XXX we and flow the good of able But pretty of of or additional based

a good XXXX initiatives, function is doing a our underperformer this the better team us it's we the that and And an and of really in getting job fact are on more area. MAP efficient

are had we gaining with that to our had up the have we we're more our to and efficiencies we and today MS-XXX disciplines than we past. approach in what something have a have for RPM our peers approach and we ago. versus years now it's relative the operations at there So, is That's not that challenge center-led the five

Kevin McCarthy

helpful. I the That's comments. very appreciate

Frank Sullivan

Thanks, Kevin.

Operator

Please Instructions] next Viswanathan here go [Operator ahead. Markets. with question Arun Our RBC come from will Capital

Frank Sullivan

Arun. Good morning,

Arun Viswanathan

for and Congrats Good my favorable Thanks here. outlook on question. strong the morning. results the taking

better in are to bigger if of bit you And that infrastructure of it and positive expect listening your see, the Thanks. moves maybe MAP that in in like slightly your gains further as be couple a well. forward were it sounds holding each you some own price and would a And how activity that were to is a improvements price well. cost So top kind as maybe there reshoring better Is some as there weak drivers? or drivers comments, X? that of little categories accurate recovery parts commercial those maybe then other then

Frank Sullivan

Sure.

effect solid got stable is more right. business So we're our supply and result you broadly more I think bullwhip I activity ever businesses before. add or a that of chain of we challenge seeing some that that would seen saw inventory across the this than we've

they and And of that's it's a because excess both the corrected during adjustments that But of here And biggest having people corrected. still perfectly? the there's is places time or there so chain that stuff supply where Yes. couldn't overbought period corrected. wrong get has been our inventory wrong in inventories And been been will chunk RPM No. and with occur? the at

now So think area, demand consumer the construction improving we negative here today. an market normalized that's although we as there sit an is modestly a still serving improving takeaway in it's

are those the dynamics. so And

right. I think that's

internal recession have the substantially in lastly, in the nice and and unit we the we capabilities see And experience year volume that cash of what half in drive for positive challenges we then flow the better the you'll improvement volume this forward unit the year. year expansion. we a margin of that if positive to RPM substantially If assuming easier half going the comps leverage So undertook versus second underlying second dynamics. avoid businesses have we

So those think are about the the dynamics to year. for

Arun Viswanathan

out would in fiscal addressed sorry should about we million? you But 'XX flow 'XX million already fiscal gains, you And in if And million of the remaining $XX that through then did maybe this. MAP provide less what an the than actual how be Great. will or number actually $XXX dollar if $XXX something on P&L? flows or then the to it's think say and that it

Frank Sullivan

more fiscal the a Day than Investor a on The million original provided we for guide $XXX little year ago 'XX. was

that's the of ongoing as other some And come. realize we In words, on it it if throughout is year an the sustainable basis.

'XX. report plan. have given rate will so I where on again realize But get in through to on P&L $XXX on it $XXX would at if fiscal million we by rate we That's the through the we'll a our expect in year. we year. achieved over that And during we'll as expect the a run of the the million quarterly end flow to hit But $XXX of we our run -- our year momentum basis a targets, the I would on least and to P&L million. are And

Arun Viswanathan

you. Thank Great.

Frank Sullivan

Thank you.

Operator

to And concludes closing this for question-and-answer session. remarks. our over I'd any the Sullivan conference Frank back turn like to

Frank Sullivan

of outlook our our of you summer and activity MAP thank We're participation first updating our the have the again Enjoy improving look together your the and business RPM call We quarter balance October. results day. with combination rest Joe for XXXX when in in effective of everybody excited throughout dividend talking you our about for program. the we're our year, to a on dynamics today. your execution on and you, about great Thank forward to and

Operator

The for conference concluded. Thank attending very presentation. much you now has today's

disconnect now lines. your You may

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