From the Farm: Boxer's name of ‘greatness' lives on with Sullivan's Steakhouse locations
Yes, I've been craving a prime cut of steak.
However, I've avoided temptation with a green substitute of flavorful salads, always drizzled with a zesty dressing, and yes, resisting any urge to drench my layers of leafy lunch and dinner landscapes.
The end of Lent means a steak dinner awaits my next restaurant escape.
During my Chicagoland travels, I recently noticed a favorite steak menu dining location, Sullivan's Steakhouse in Lincolnshire, Illinois, near the Marriott Lincolnshire Theatre and Resort, had disappeared.
After a few telephone calls and some research, I found it closed in late 2018.
In a previous column, I'd written about that location. Published in November 2011, I wrote it was one of '20 locations around the country, including restaurants in Indianapolis, Chicago and Naperville.' At that time, I'd interviewed Mark S. Mednansky, CEO of the Del Frisco's Restaurant Group, which was the restaurant chain's parent company.
Fortunately, I also reconnected with Matt Coover, who was previously part of the management of the Lincolnshire location and is now general manager and a managing partner of the Sullivan's Naperville location, anchored downtown along the tranquil riverwalk stretch. Today, there are 14 Sullivan's Steakhouse locations around the country, including the Indianapolis and Naperville locations, and the restaurant chain is now under the umbrella of A Dividend Restaurant Group.
Coover was a guest last week on my Thursday radio show on WJOB 1230 AM, and he shared more about the history and recent menu highlights of Sullivan's Steakhouses, the first of which opened in 1996 in Austin, Texas.
The restaurant's name was chosen to honor and brand with the late, great boxer John L. Sullivan, a named that filled the sports section of every newspaper at the turn of the century, starting in the late 1800s when he reigned as the first heavyweight champion of 'gloved boxing' for a decade from 1882 to 1982. Dubbed in the press as 'the Boston Strong Boy,' a nod to his Boston roots, one of his most famous bouts had him going 75 rounds against rival Jake Kilrain, prompting Sullivan to declare: 'I want fighting, not foot racing.'
'He was simply the best at what he did,' Coover said, describing fighter Sullivan.
'And that's what we hold to as our motto, too. Being the best for our steaks, dining and menus.'
Coover said Sullivan's era lives on both with a signature cocktail bearing his name served at the restaurant's bar and also with the signature jazz music played at all locations to complement the rich and elegant turn-of-the-century paneling, light fixtures and dining room décor. Boxer Sullivan, who was originally contemplating becoming a priest as encouraged by his parents, retired and spent his later life as a lecturer before his early passing at age 59 in 1918.
Some of the parade of steak cuts offered on the Sullivan's menu included a 35-day dry-aged 28 ounce 'Tomahawk Ribeye,' a bone-in 'cowboy cut' 22-ounce ribeye and a 14-ounce bone-in filet mignon, as well as what's billed as 'the rarest of all beef,' the 'A5 Wagyu Strip' sold at market value price.
More information, menus and history are found at www.sullivanssteakhouse.com.
Coover reminded me they also have a fresh seafood selection available, including oysters, crab legs, shrimp and other fare. His favorite 'pair and share' idea currently is a popular 'two for $199 menu, featuring a 32-ounce Prime Porterhouse, two cold water lobster tails and a bottle of Caymus-Suisin Grand Durif wine.'
I asked Coover for the restaurant's simple house salad dressing recipe, an easy and delicious blend of flavors accented with a hint of honey.
Columnist Philip Potempa has published four cookbooks and is a radio host on WJOB 1230 AM. He can be reached at PhilPotempa@gmail.com or mail your questions: From the Farm, PO Box 68, San Pierre, Ind. 46374.
Sullivan's Balsamic Vinaigrette
Makes 2 cups
1/2 cup balsamic vinegar
1 tablespoon Dijon mustard
1 1/2 cups extra virgin olive oil
1 heaping teaspoon honey
Salt and pepper to taste
Directions:
In a large bowl, mix vinegar and mustard until well combined.
Slowly drizzle in olive oil, whisking vigorously to emulsify.
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For those unable to listen to the live call, a replay will be available from July 24, 2025, until July 31, 2025. The replay can be accessed by dialing 1-877-344-7529 or 1-412-317-0088 for international callers. The access code is 2426392. The call also will be available for replay and as a written transcript via the RPM website at About RPM RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across four reportable segments: consumer, construction products, performance coatings and specialty products. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum, DAP, The Pink Stuff, Zinsser, Varathane, DayGlo, Legend Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and workplaces to infrastructure and precious landmarks, RPM's brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 17,200 individuals worldwide. Visit to learn more. For more information, contact Matt Schlarb, Vice President – Investor Relations & Sustainability, at 330-220-6064 or mschlarb@ Use of Non-GAAP Financial Information To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States ('GAAP') in this earnings release, we use EBIT, adjusted EBIT and adjusted earnings per share, which are all non-GAAP financial measures. EBIT is defined as earnings (loss) before interest and taxes, with adjusted EBIT and adjusted earnings per share provided for the purpose of adjusting for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest income (expense), net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets' analysis of our segments' core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. See the financial statement section of this earnings release for a reconciliation of EBIT and adjusted EBIT to income before income taxes, and adjusted earnings per share to earnings per share. We have not provided a reconciliation of our first-quarter fiscal 2026 or full-year fiscal 2026 adjusted EBIT guidance because material terms that impact such measure are not in our control and/or cannot be reasonably predicted, and therefore a reconciliation of such measure is not available without unreasonable effort. Use of Key Performance Indicator Metric To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States ('GAAP') in this earnings release, we use the key performance indicator ('KPI') metric of operating working capital as a percentage of sales, which is defined as the net amount of net trade accounts receivable plus inventories less accounts payable, all divided by trailing twelve-month net sales. We evaluate the working capital investment needs of our business to support current operations as well as future changes in business activity. For that reason, we believe operating working capital as a percentage of sales is also useful to investors as a metric in their investment decisions. Forward-Looking Statements This press release contains 'forward-looking statements' relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global and regional markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the viability of banks and other financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solvents, and other natural gas- and oil-based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) changes in global trade policies, including the adoption or expansion of tariffs and trade barriers; (h) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (i) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (j) the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, and the risks of failing to meet any other objectives of our improvement plans; (k) risks related to the adequacy of our contingent liability reserves; (l) risks relating to a public health crisis similar to the Covid pandemic; (m) risks related to acts of war similar to the Russian invasion of Ukraine; (n) risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; (o) risks related to our or our third parties' use of technology including artificial intelligence, data breaches and data privacy violations; (p) the shift to remote work and online purchasing and the impact that has on residential and commercial real estate construction; and (q) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Form 10-K for the year ended May 31, 2024, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the filing date of this press release. SUPPLEMENTAL SEGMENT INFORMATION IN THOUSANDS (Unaudited) Three Months Ended Year Ended May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Net Sales: CPG Segment $ 809,913 $ 762,174 $ 2,767,428 $ 2,702,466 PCG Segment 399,208 365,555 1,491,695 1,462,460 SPG Segment 181,315 177,975 699,469 712,402 Consumer Segment 691,539 702,459 2,414,052 2,457,949 Total $ 2,081,975 $ 2,008,163 $ 7,372,644 $ 7,335,277 Income Before Income Taxes: CPG Segment Income Before Income Taxes (a) $ 153,455 $ 131,429 $ 426,028 $ 385,339 Interest (Expense), Net (b) (588 ) (551 ) (2,494 ) (5,170 ) EBIT (c) 154,043 131,980 428,522 390,509 MAP initiatives (d) 3,871 6,526 10,327 12,694 Acquisition-related costs (e) 194 - 453 - Adjusted EBIT $ 158,108 $ 138,506 $ 439,302 $ 403,203 PCG Segment Income Before Income Taxes (a) $ 54,711 $ 46,589 $ 225,594 $ 199,951 Interest Income, Net (b) 580 889 2,335 4,642 EBIT (c) 54,131 45,700 223,259 195,309 MAP initiatives (d) 3,128 2,829 6,840 20,233 Acquisition-related costs (e) 515 - 1,012 - Adjusted EBIT $ 57,774 $ 48,529 $ 231,111 $ 215,542 SPG Segment (Loss) Income Before Income Taxes (a) $ (10,763 ) $ 7,439 $ 26,391 $ 43,784 Interest (Expense) Income, Net (b) (126 ) (89 ) (439 ) 204 EBIT (c) (10,637 ) 7,528 26,830 43,580 MAP initiatives (d) 3,159 3,063 10,100 11,179 (Gain) on sale of assets and a business, net (f) - - (237 ) (1,206 ) Legal contingency adjustment on a divested business (h) 5,777 - 6,059 3,953 Goodwill and intangible asset impairments (i) 13,080 - 13,080 - Adjusted EBIT $ 11,379 $ 10,591 $ 55,832 $ 57,506 Consumer Segment Income Before Income Taxes (a) $ 113,441 $ 113,146 $ 357,900 $ 408,200 Interest (Expense) Income, Net (b) (129 ) (58 ) (585 ) 2,561 EBIT (c) 113,570 113,204 358,485 405,639 MAP initiatives (d) 6,339 8,591 28,464 9,840 Acquisition-related costs (e) 2,561 - 2,561 - (Gain) on sale of assets and a business, net (f) - (3,627 ) - (3,627 ) Business interruption insurance recovery (g) - - - (11,128 ) Adjusted EBIT $ 122,470 $ 118,168 $ 389,510 $ 400,724 Corporate/Other (Loss) Before Income Taxes (a) $ (62,468 ) $ (59,325 ) $ (243,153 ) $ (249,437 ) Interest (Expense), Net (b) (22,395 ) (18,886 ) (71,261 ) (75,232 ) EBIT (c) (40,073 ) (40,439 ) (171,892 ) (174,205 ) MAP initiatives (d) 4,719 10,195 32,168 38,827 Adjusted EBIT $ (35,354 ) $ (30,244 ) $ (139,724 ) $ (135,378 ) TOTAL CONSOLIDATED Income Before Income Taxes (a) $ 248,376 $ 239,278 $ 792,760 $ 787,837 Interest (Expense) (25,939 ) (27,276 ) (96,543 ) (117,969 ) Investment Income, Net 3,281 8,581 24,099 44,974 EBIT (c) 271,034 257,973 865,204 860,832 MAP initiatives (d) 21,216 31,204 87,899 92,773 Acquisition-related costs (e) 3,270 - 4,026 - (Gain) on sale of assets and a business, net (f) - (3,627 ) (237 ) (4,833 ) Business interruption insurance recovery (g) - - - (11,128 ) Legal contingency adjustment on a divested business (h) 5,777 - 6,059 3,953 Goodwill and intangible asset impairments (i) 13,080 - 13,080 - Adjusted EBIT $ 314,377 $ 285,550 $ 976,031 $ 941,597 (a) The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles in the United States (GAAP), to EBIT and Adjusted EBIT. (b) Interest Income (Expense), Net includes the combination of Interest Income (Expense) and Investment Income (Expense), Net. (c) EBIT is defined as earnings (loss) before interest and taxes, with Adjusted EBIT provided for the purpose of adjusting for items impacting earnings that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT, or adjusted EBIT, as a performance evaluation measure because Interest Income (Expense), Net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets' analysis of our segments' core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. (d) Reflects restructuring and other charges, which have been incurred in relation to our Margin Acceleration Plan ("MAP to Growth") and our Margin Achievement Plan ("MAP 2025"), together MAP initiatives, as follows: - Restructuring and other related expense, net: Includes charges incurred related to headcount reductions, facility closures and asset impairments recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled $6.8 million and $15.9 million for the quarters ended May 31, 2025 and May 31, 2024 respectively, and $25.0 million and $30.0 million for the year ended May 31, 2025 and May 31, 2024 respectively. Other related expenses include inventory write-offs in connection with restructuring activities recorded in "Cost of Sales", accelerated depreciation and amortization recorded within "Cost of Sales" or "Selling, General, & Administrative Expenses ("SG&A")" depending on the nature of the expense as well as the prior year loss on sale and increase in our allowance for doubtful accounts resulting from of the divestiture of the non-core Universal Sealant's Bridgecare service business within our PCG segment. - Exited product lines: Sale of inventory that had previously been reserved for as a result of prior product line rationalization initiatives at PCG partially offset by inventory write-offs related to the discontinuation of certain product lines within our SPG segment. These amounts resulted from ongoing product line rationalization efforts in connection with our MAP initiatives and were recorded in "Cost of Sales". - ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP systems across the organization to four ERP platforms, one per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been incurred in all segments, as well as Corporate/Other, and have been recorded within "SG&A". - Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to implement technologies and processes to drive improved sales mix and salesforce effectiveness and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments and recorded within "SG&A". All of this spend is in support of stated MAP goals with the most significant expense incurred within Corporate/Other. Included below is a reconciliation of the TOTAL CONSOLIDATED MAP initiatives. May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Exited product line - - - (248 ) (e) Acquisition costs reflect amounts included in 'Cost of Sales' for inventory step-ups. (f) Reflects gains associated with post-closing adjustments for the sale of the non-core furniture warranty business in the SPG segment in fiscal 2023 which have been recorded in "SG&A". In addition to this, the prior year reflects the sale of a property within our Consumer segment which has also been recorded in 'SG&A'. (g) Business interruption insurance recovery at our Consumer segment related to lost sales and incremental costs incurred during fiscal 2021 and 2022 as a result of an explosion at the plant of a significant alkyd resin supplier, which has been recorded in "SG&A". (h) Represents incremental expense related to an adverse legal ruling from a case associated with a business that was divested in fiscal 2023. (i) Reflects $11.4 million of goodwill impairment recorded in "Goodwill Impairment" and $1.7 million of intangible asset impairment recorded in "SG&A". Both charges are related to the Color Group reporting unit in our SPG Segment due to the continued softness in OEM markets and underperformance in our growth initiatives associated with this reporting unit. Expand SUPPLEMENTAL INFORMATION (Unaudited) Three Months Ended Year Ended May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 1.76 $ 1.40 $ 5.35 $ 4.56 MAP initiatives (d) 0.16 0.19 0.56 0.56 Acquisition-related costs (e) 0.02 - 0.02 - (Gain) on sale of assets and a business, net (f) - (0.02 ) - (0.03 ) Business interruption insurance recovery (g) - - - (0.07 ) Legal contingency adjustment on a divested business (h) 0.03 - 0.04 0.02 Goodwill and intangible asset impairments (i) 0.09 - 0.09 - Investment returns (j) - (0.01 ) (0.02 ) (0.12 ) Income tax adjustments (k) (0.34 ) - (0.74 ) 0.02 Adjusted Earnings per Diluted Share (l) $ 1.72 $ 1.56 $ 5.30 $ 4.94 (d) Reflects restructuring and other charges, which have been incurred in relation to our Margin Acceleration Plan ("MAP to Growth") and our Margin Achievement Plan ("MAP 2025"), together MAP initiatives, as follows: - Restructuring and other related expense, net: Includes charges incurred related to headcount reductions, facility closures and asset impairments recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled $6.8 million and $15.9 million for the quarters ended May 31, 2025 and May 31, 2024 respectively, and $25.0 million and $30.0 million for the year ended May 31, 2025 and May 31, 2024 respectively. Other related expenses include inventory write-offs in connection with restructuring activities recorded in "Cost of Sales", accelerated depreciation and amortization recorded within "Cost of Sales" or "Selling, General, & Administrative Expenses ("SG&A")" depending on the nature of the expense as well as the prior year loss on sale and increase in our allowance for doubtful accounts resulting from of the divestiture of the non-core Universal Sealant's Bridgecare service business within our PCG segment. - Exited product lines: Sale of inventory that had previously been reserved for as a result of prior product line rationalization initiatives at PCG partially offset by inventory write-offs related to the discontinuation of certain product lines within our SPG segment. These amounts resulted from ongoing product line rationalization efforts in connection with our MAP initiatives and were recorded in "Cost of Sales". - ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP systems across the organization to four ERP platforms, one per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been incurred in all segments, as well as Corporate/Other, and have been recorded within "SG&A". - Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to implement technologies and processes to drive improved sales mix and salesforce effectiveness and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments and recorded within "SG&A". All of this spend is in support of stated MAP goals with the most significant expense incurred within Corporate/Other. (e) Acquisition costs reflect amounts included in 'Cost of Sales' for inventory step-ups. (f) Reflects gains associated with post-closing adjustments for the sale of the non-core furniture warranty business in the SPG segment in fiscal 2023 which have been recorded in "SG&A". In addition to this, the prior year reflects the sale of a property within our Consumer segment which has also been recorded in 'SG&A'. (g) Business interruption insurance recovery at our Consumer segment related to lost sales and incremental costs incurred during fiscal 2021 and 2022 as a result of an explosion at the plant of a significant alkyd resin supplier, which has been recorded in "SG&A". (h) Represents incremental expense related to an adverse legal ruling from a case associated with a business that was divested in fiscal 2023. We strongly disagree with the legal ruling and have filed an appeal. (i) Reflects $11.4 million of goodwill impairment recorded in "Goodwill Impairment" and $1.7 million of intangible asset impairment recorded in "SG&A". Both charges are related to the Color Group reporting unit in our SPG Segment due to the continued softness in OEM markets and underperformance in our growth initiatives associated with this reporting unit. (j) Investment returns include realized net gains and losses on sales of investments and unrealized net gains and losses on equity securities, which are adjusted due to their inherent volatility. Management does not consider these gains and losses, which cannot be predicted with any level of certainty, to be reflective of the Company's core business operations. (k) The adjustment for the current three-month period and year ended May 31, 2025, includes incremental benefits of the U.S. deduction for foreign derived intangible income and the foreign tax rate differential associated with certain global capital structure initiatives completed during the period. Additionally, the year-to-date adjustment includes adjustments to U.S. foreign tax credits recognized because of global cash redeployment and debt optimization projects, as well as other adjustments to our net deferred tax asset related to U.S. foreign tax credit carryforwards resulting from our reassessment of income tax positions following developments in U.S. income tax case law. For fiscal year 2024, the adjustment relates to income taxes associated with the fiscal year 2023 sale of the furniture warranty business. (l) Adjusted Diluted EPS is provided for the purpose of adjusting diluted earnings per share for items impacting earnings that are not considered by management to be indicative of ongoing operations. Expand CONSOLIDATED BALANCE SHEETS IN THOUSANDS (Unaudited) May 31, 2025 May 31, 2024 Assets Current Assets Cash and cash equivalents $ 302,137 $ 237,379 Trade accounts receivable 1,551,953 1,468,208 Allowance for doubtful accounts (42,844 ) (48,763 ) Net trade accounts receivable 1,509,109 1,419,445 Inventories 1,036,475 956,465 Prepaid expenses and other current assets 322,577 282,059 Total current assets 3,170,298 2,895,348 Property, Plant and Equipment, at Cost 2,738,373 2,515,847 Allowance for depreciation (1,264,974 ) (1,184,784 ) Property, plant and equipment, net 1,473,399 1,331,063 Other Assets Goodwill 1,617,626 1,308,911 Other intangible assets, net of amortization 780,826 512,972 Operating lease right-of-use assets 370,399 331,555 Deferred income taxes 147,436 33,522 Other 215,965 173,172 Total other assets 3,132,252 2,360,132 Total Assets $ 7,775,949 $ 6,586,543 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 755,889 $ 649,650 Current portion of long-term debt 7,691 136,213 Accrued compensation and benefits 287,398 297,249 Accrued losses 36,701 32,518 Other accrued liabilities 379,768 350,434 Total current liabilities 1,467,447 1,466,064 Long-Term Liabilities Long-term debt, less current maturities 2,638,922 1,990,935 Operating lease liabilities 317,334 281,281 Other long-term liabilities 241,117 214,816 Deferred income taxes 224,347 121,222 Total long-term liabilities 3,421,720 2,608,254 Total liabilities 4,889,167 4,074,318 Stockholders' Equity Preferred stock; none issued - - Common stock (outstanding 128,269; 128,629) 1,283 1,286 Paid-in capital 1,177,796 1,150,751 Treasury stock, at cost (953,856 ) (864,502 ) Accumulated other comprehensive (loss) (533,631 ) (537,290 ) Retained earnings 3,193,764 2,760,639 Total RPM International Inc. stockholders' equity 2,885,356 2,510,884 Noncontrolling interest 1,426 1,341 Total equity 2,886,782 2,512,225 Total Liabilities and Stockholders' Equity $ 7,775,949 $ 6,586,543 Expand CONSOLIDATED STATEMENTS OF CASH FLOWS IN THOUSANDS (Unaudited) Year Ended May 31, May 31, 2025 2024 Cash Flows From Operating Activities: Net income $ 690,327 $ 589,442 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 193,840 171,251 Goodwill Impairment 11,352 - Deferred income taxes (104,507 ) (5,638 ) Stock-based compensation expense 27,042 25,925 Net (gain) on marketable securities (4,997 ) (19,914 ) Net (gain) on sales of assets and businesses - (971 ) Other 1,269 2,226 Changes in assets and liabilities, net of effect from purchases and sales of businesses: (Increase) decrease in receivables (55,037 ) 82,895 (Increase) decrease in inventory (34,458 ) 179,843 (Increase) decrease in prepaid expenses and other (62,669 ) 23,426 current and long-term assets Increase (decrease) in accounts payable 84,074 (24,439 ) (Decrease) increase in accrued compensation and benefits (17,130 ) 39,891 Increase in accrued losses 3,899 5,958 Increase in other accrued liabilities 35,185 52,410 Cash Provided By Operating Activities 768,190 1,122,305 Cash Flows From Investing Activities: Capital expenditures (229,930 ) (213,970 ) Acquisition of businesses, net of cash acquired (595,770 ) (15,549 ) Purchase of marketable securities (85,793 ) (32,981 ) Proceeds from sales of marketable securities 87,093 46,689 Proceeds from sales of assets and businesses, net - 6,921 Other (1,134 ) 2,450 Cash (Used For) Investing Activities (825,534 ) (206,440 ) Cash Flows From Financing Activities: Additions to long-term and short-term debt 478,111 - Reductions of long-term and short-term debt (9,008 ) (575,408 ) Cash dividends (255,563 ) (231,883 ) Repurchases of common stock (69,999 ) (54,978 ) Shares of common stock returned for taxes (18,686 ) (24,548 ) Payment of acquisition-related contingent consideration (1,122 ) (1,142 ) Other (1,796 ) (2,075 ) Cash Provided By (Used For) Financing Activities 121,937 (890,034 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 165 (4,239 ) Net Change in Cash and Cash Equivalents 64,758 21,592 Expand
CNBC
15-07-2025
- CNBC
CNBC Transcript: United States Commerce Secretary Howard Lutnick Speaks with CNBC's Brian Sullivan on 'Halftime Report' Today
WHEN: Today, Tuesday, July 15, 2025 WHERE: CNBC's "Halftime Report" Following is the unofficial transcript of a CNBC interview with United States Commerce Secretary Howard Lutnick on CNBC's "Halftime Report" (M-F, 12PM-1PM ET) today, Tuesday, July 15. Following is a link to video on All references must be sourced to CNBC. BRIAN SULLIVAN: Yes, we're here at the Senator David McCormick Innovation and Energy Summit at Carnegie Mellon University in Pittsburgh, Pennsylvania. President Donald Trump is scheduled to be here later this afternoon to host a roundtable. You have got many companies here. You have got Amazon. You have got Alphabet. You have got BlackRock and many others. ExxonMobil is here as well, along with members of the Cabinet, including your next guest. That is the secretary of commerce, Howard Lutnick. Secretary Lutnick, thank you for making some time with us here. I mean, what a hell of an event that has been put together in a very short amount of time. We did interview the secretary of energy, speaking to the secretary of the interior. What is commerce's role in the energy and A.I. infrastructure build-out? What do you -- where do you direct the money and the knowledge base in this scheme? U.S. COMMERCE SECRETARY HOWARD LUTNICK: So, the NIST is part of commerce, the National Institute of Standards and Technology. So the key is, we set the standards for A.I. So we have got the A.I. Standards and Innovation Institute as part of the Department of Commerce. So we're the driver of A.I. standards and also cryptography standards and also cyber standards. So those are the key pieces inside of Commerce. SULLIVAN: So, Commerce, and you will forgive my lack of knowledge about the inner workings— LUTNICK: Well, but you're with me now. So it's OK. SULLIVAN: I literally have no idea. I should -- our D.C. team probably understands this a lot better than I do. So you're setting the rules of the road that will also shape investment. LUTNICK: Correct. SULLIVAN: So, all the stuff they talk about on "Halftime Report" every day, all the companies in A.I., they're going to have to follow rules that you and your team are ultimately going to mold. LUTNICK: Correct. So we try to set the guardrails to make sure that the American standards are the standards the world uses, right? That's what we want. We want everyone to use our technology stack, our way of thinking about A.I. and let the world be balanced on ours. Now, really, it's a competition between the American standards and the Chinese standards. So we're out there working hard to make sure that our standards, our foundation, if you will, is what the world uses for A.I. SULLIVAN: Well, I'm watching CNBC, as well as being on CNBC, and I'm looking at Nvidia getting a deal to be allowed to sell certain chips and do more business into China. That's coming from this administration. Is that a change of heart? LUTNICK: Well, it's funny, because the Biden administration allowed China to buy these chips last year. So, then we held it up, and then, in the magnets deal with the Chinese, we told them that we would start to resell them. So, remember, these are an older chip. Biden had had them available, and we rethought it. But now that Nvidia came out with their newest chip -- you realize the newest chip is called the Blackwell. Then they have the H200 and H100. This is like the fourth one down. So the fourth one down, we want to keep China using it. We want to keep having the Chinese use the American technology stack because they still rely upon it. And that's key. So we try to play that balance. We don't sell them our best stuff, not our second best stuff, not even our third best. I think fourth best is where we have come out that we're cool. SULLIVAN: Well, fourth best has given the stock a 4.5 percent pop today and an over— LUTNICK: Well, they can sell a lot of those chips. SULLIVAN: Well, you got an over $4 trillion market cap, right, which then, when Nvidia rises, it's kind of the tide that lifts a lot of different boats. You look at the Nasdaq. It's up today. But some would argue, why are we giving China any access to chips? How do we square that? LUTNICK: So the idea is the Chinese are more than capable of building their own, right? So you want to keep one step ahead of what they can build so they keep buying our chips, because, remember, developers are the key to technology. You want the world's developers to use your tech. So Nvidia is driven to make sure all the developers of the world are still using their technology. So you want to sell the Chinese enough that their developers get addicted to the American technology stack. And that's the thinking. Donald Trump is on it. He thinks about it. And we have designed the platform model with Nvidia. Remember, we talk to our companies. SULLIVAN: Yes. LUTNICK: The Biden administration sort of hated American companies, and the Trump administration loves them. SULLIVAN: You can't say that. LUTNICK: Oh, come on. They tried to break them up and all this sort of stuff. The Trump administration— SULLIVAN: There was lawsuits on Amazon -- Alphabet, but— LUTNICK: The Trump administration embraces technology companies and we want to work with them and understand them and help them succeed. SULLIVAN: Let's talk about permitting. We're going to hear from the secretary of the interior in "Power Lunch." I know that's not your purview. That's his. Permitting is everything, because you can get $20 billion invested in the data center here in Pennsylvania, but unless you have a power line to go from the power plant to the data center, it's worthless. So, when we look at permitting, we think, OK, we want to build power lines. That's steel, aluminum and copper. There's some new fears of tariffs on those exact things. Does that hurt or slow down our ability to invest in A.I. infrastructure if there are tariffs on the stuff we need to build that stuff? LUTNICK: So let's think steel for a minute. We have all seen a steel blast furnace. SULLIVAN: We are in Pittsburgh. I think it's fairly— LUTNICK: You know what a blast furnace looks like, right? SULLIVAN: Yes. LUTNICK: It looks like pouring molten lava, right? That's what -- right? You have to use so much power to melt that iron ore, right? And the Chinese and the Japanese and the Koreans give that power for free or virtually for free to their steel companies. And then they dump steel on us and put our domestic steel companies out of business. And that's what's happened for years and decades, to the point where if all you do is import steel and all you do is import aluminum and all you do is import copper, how are you going to fight a war? We need steel to be made domestically. And so Donald Trump is saying, I'm going to take that government subsidy off the table. I'm going to put tariffs in to make it equal, so Americans build steel here so that if we want to fight a war, we can make our own ships, our own missiles. And that's the key to Donald Trump's thinking, national security here on our shores. SULLIVAN: But it's not -- I mean, these are raw materials, right, and minerals. Like it's not just building it. It's about being able to mine it out and take out the iron ore, take out the stuff, the copper from the ground. LUTNICK: Oh, yes. We don't charge tariffs on the raw material. We charge a tariff on the finished good. SULLIVAN: Yes. LUTNICK: The whole idea is, you can bring in the dirt, if you will, but when you try to melt that dirt in a refinery and make a blast furnace, that is the output that we want to make sure we protect American— SULLIVAN: So, let's just -- let's role-play using like a fake example, because I don't want to talk about any specific companies. So let's say Sullivan Copper comes to Howard Lutnick and says, well, Mr. Secretary, I'd like to spend a billion dollars, open some new copper mines, but I got 10 years in the permitting line. LUTNICK: Oh, we have got to break that. SULLIVAN: I will spend the money. I will spend the money, but it's worthless. I can't -- you and I talked about this in Phoenix, Arizona, at TSMC a few months ago. LUTNICK: We have got to break it. We broke it. SULLIVAN: There is that logjam where it doesn't matter. We have $90 billion in commitments being made here at this thing, but none of that money will go anywhere if that last mile is not fixed. And that's all I hear from companies is that last mile is the problem. How do we solve that? LUTNICK: Well, President Trump is on it. That's why he talks about the EPA. That's why we talk about permitting and regulation. We're going to make sure that the states that embrace production now, now, during this Trump administration, they're the ones who are going to get the investment. And if you're playing an old school, slow-rolling everybody, then other states are going to be successful. So the key is -- you're right. We have got to get those permits out the door. But the key is onshore. SULLIVAN: Yes. LUTNICK: Get that investment here. And then those states are going to want it to work and they're going to clear the path. SULLIVAN: Let's talk about something, but I don't want you to tell anybody. It's just between you and I. LUTNICK: OK, just between you and me. SULLIVAN: All right, just between you and I. In the next hour, we're going to be speaking with the governor of Pennsylvania, Josh Shapiro, probably a front-runner for the 2028 nomination. Who knows? He's a Democrat. Don't tell anybody. But he's a Democrat. Is he on board? Is he playing? Are we able to cross party lines? Because energy and A.I., that should all be bipartisan, should it not? Shouldn't everybody want to win at A.I. for the United States, regardless of party affiliation? LUTNICK: Look, the Democrats tried to close ANWR. They closed ANWR, right, the big oil in Alaska that's ours. They closed -- they closed coal plants, right? They close them, whereas President Trump calls it what, clean, beautiful coal, right? We need -- we need power. We need investments. And we think everyone should be on board. And if a governor is not on board, he's going to hurt his state. He's going to hurt his employees. SULLIVAN: Is Pennsylvania on board? We're here. We're here at Carnegie Mellon. And it's a beautiful day. We're in Pittsburgh. Is -- steel, right? LUTNICK: They have got the tools. Pennsylvania's got the tools to win. SULLIVAN: Water? Power? LUTNICK: Does the governor drive that permitting to make people successful who want to invest here? The government -- a state government has got to make sure that they embrace Donald Trump's vision of onshoring, reshoring and building America. And if they don't, those companies are going to find a nice red state to invest in. SULLIVAN: Well, we are going to ask him in the next hour. That will be live. So Governor Shapiro will join us as well. LUTNICK: Pennsylvania's a red state. Don't forget. It went for Donald Trump. It went for Donald Trump. SULLIVAN: But it's a mix. It's got a Democratic governor and maybe the most important county in America, Erie, just north -- kind of go a little bit northwest-ish of here. We're going to hit that. Stock market, Mr. Secretary, keeps going up. It feels like the market's not believing that the worst of the tariffs is going to happen, something, again, you and I talked about in Phoenix and you have talked about on CNBC with others before. Is the market getting it right? Because a lot of investors are watching the market go up, up, up. LUTNICK: President Trump is smashing down the barriers that have held American business back for 80 years. Tariffs were on America. So when we tried to sell elsewhere, there were tariffs. And when they tried to sell here, no tariffs. So our industries went overseas. President Trump is reversing that trend, zero tariffs away. Those are the deals he's made. Vietnam, he announced Indonesia just this morning, no tariffs there. They pay tariffs here, switching the asymmetry our way. Let's bring industry back. And that's going to unleash our farmers, our ranchers, our fishermen, and our industries are going to blow out. And that is what the stock market understands. Donald Trump understands business in America. SULLIVAN: You said in Phoenix that we had -- you had a deal in your hand. You wouldn't tell us who. You wouldn't tell -- I tried, but you wouldn't tell me who the deal was with. Turns out it was with the U.K. Are you confident we can get these big, the big ones, the big deals done? LUTNICK: I have them done. The question is, President Trump drives the strongest bargain. He's the dealmaker. He makes the deals. This morning, he was on with the president of Indonesia, and he makes the deals. That's how this administration works. We let the greatest dealmaker who's ever been in that office, he makes the deals. SULLIVAN: Commerce Secretary Howard Lutnick. "I have the deals done." I have a feeling that could move the -- I think that's going to move the market. LUTNICK: I'm good with that. SULLIVAN: We shall see. I know you have got a panel. The president's going to be here in a couple of hours. Still got a long way to go. Really appreciate your time today, sir. LUTNICK: Pleasure.
