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RPM pays down debt using record $651.9 million cash from operations
By Devika Patel
Knoxville, Tenn., April 7 – RPM International Inc. produced record cash from operations of $651.9 million in the first nine months of fiscal 2021, a 71% increase when compared to $381.2 million during the first nine months of fiscal 2020. These funds are being used to pay down debt.
“Our balance sheet remains strong and we’ve strategically deployed our record cash flow to reduce debt,” vice president of global tax and treasurer Matthew T. Ratajczak said on the company’s third quarter ended Feb. 28 earnings conference call on Wednesday.
“Simultaneously, we are completing acquisitions and making investments to improve the efficiency of our operations,” Ratajczak said.
The company’s top executive echoed Ratajczak’s remarks.
“Our balance sheet is stronger than ever,” chairman and chief executive officer Frank C. Sullivan stated in a Wednesday press release.
“Thanks to our margin and working capital improvements through our MAP to Growth program, we have generated record cash flow, which has been strategically managed to reduce debt,” Sullivan said.
Total debt at the end of the first nine months of fiscal 2021 was $2.31 billion, compared to $2.56 billion a year ago and $2.54 billion at the end of fiscal 2020.
The company’s calculated net leverage ratio was 2.13x on Feb. 28, which was an improvement as compared to 2.9x a year ago.
At Feb. 28, total liquidity was $1.43 billion and included cash of $249.2 million and $1.18 billion in committed available credit.
RPM is a Medina, Ohio-based company that manufactures and markets specialty chemical products for industrial and consumer markets.
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