RPM INTERNATIONAL INC/DE/ Earnings Per Share Disclosure
NOTE L — EARNINGS PER SHARE
The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the years ended May 31, 2025, 2024 and 2023:
Year Ended May 31, |
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2025 |
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2024 |
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2023 |
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(In thousands, except per share amounts) |
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Numerator for earnings per share: |
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Net income attributable to RPM International Inc. stockholders |
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$ |
688,688 |
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$ |
588,397 |
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$ |
478,691 |
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Less: Allocation of earnings and dividends to participating securities |
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(2,625 |
) |
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(2,630 |
) |
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(2,156 |
) |
Net income available to common shareholders - basic |
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686,063 |
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585,767 |
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476,535 |
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Reverse: Allocation of earnings and dividends to participating securities |
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- |
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- |
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2,156 |
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Add: Undistributed earnings reallocated to unvested shareholders |
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9 |
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8 |
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- |
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Net income available to common shareholders - diluted |
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$ |
686,072 |
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$ |
585,775 |
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$ |
478,691 |
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Denominator for basic and diluted earnings per share: |
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Basic weighted average common shares |
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127,570 |
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127,767 |
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127,507 |
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Average diluted options and awards |
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634 |
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573 |
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1,309 |
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Total shares for diluted earnings per share (1) |
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128,204 |
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128,340 |
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128,816 |
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Earnings Per Share of Common Stock Attributable to |
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RPM International Inc. Stockholders: |
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Basic Earnings Per Share of Common Stock |
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$ |
5.38 |
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$ |
4.58 |
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$ |
3.74 |
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Method used to calculate basic earnings per share |
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Two-Class |
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Two-Class |
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Two-Class |
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Diluted Earnings Per Share of Common Stock |
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$ |
5.35 |
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$ |
4.56 |
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$ |
3.72 |
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Method used to calculate diluted earnings per share |
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Two-Class |
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Two-Class |
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Treasury |
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About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.