CoSy/NYSBC:RPM(RPOW)
Founded as RepublicPowderedMetals
From NYSBC.Ac<90.10 :
==========================ø TUE.JUL,1990.7.24 ø===========================
|11:33| |12:15| NASDAQ RPOW | RPM 14th yr | Tom | JimKarman ,Exec VP 43rd
consec yr record sales EarnöShare 445M .18 | Cash Div up | Gene Walden 100
best stocks | best mngmtn of decade | eurobonds issued | Specialty coatings
for existing structures GM Saturn plant New Const | .1 export | 65M lisense
& JV not in sales figs. 35 plants | 2500 employees , .25 participate in
stock purchaser Niche mkts -- Hi performance hi margin | Kop-Coat marine
sales .15 ö yr | 600 direct sales people |
Income .17 ö yr | sold 60M lines not meeting performance
EöS .12 ö yr | 24M shares 22k holders | 8th most held by invest clubs
ROI .17 | compound RoR .25 since '74 |
Jay | 20 op units | strict planning | 6 corp staff runnin ó.5B co
3day presidents meeting | Intro | op plan specific sec , core ?s | Key
objecive ltr | 3 mos to perpare | Medina Ohio | 2 mo to eval |
During yr talk w 1öwk | rev 68 ’ ö yr |
.6 | water proofing | maintanance |
.24 over past 16 yrs | Financial CEO of Decade | Bondex Radon gas blocking
orig : Waterproofing
Corosion control CarboLine
Specalty chems | Dry adhisives for stamps
Hobby & leasures | Wolman | Zspar Zinzzar
Outside dirs | lean corp mgt | always keep mgt of acqs. 'buying in'
|13:26| ?s Combined Sales forces - No multiply sales paths | ongoing business
w Hungary Yugo & Poland | expect international | including Pacific Rim
Qualify | have 24 market makers on NASDAQ | Mona commodity & raw material
prices ? | stay in Hi niche mkts | Structure deals 10 - 20 M | notes back to
sellers | larger bank debt | eurobond converatable | not stock for stock
because consider equity most expensive capital | when saturation point of
managers abilities | 20 mgrs , some covering more than 1 co.
Strong Outside Dirs | look @ each co individually.
14 in corp office | not a dime of corp service charge |
Major competition : local good small co. | too service oriented for bigs
K-Marts , Ace running tight & competitive , co-op ads
Joel: exposure to past history of aquired co's e.g. : asbestos
work w Johnson&Higgins | Internal audit ? WoodardClied environmental audit
Qtry audit - send in outside auditors || R&D ~5M ö yr | 1 vp of tech
2ce ö yr meeting environmental meetings - cross fertalizing - suppliers
Union Carbide etc do much R&D | Radon blocking was internal devel by 3 cos
inexpensive |13:50|
From NY.StockBrokersClub :
==========================ø TUE.JUL,1991.7.23 ø===========================
|8:56| c> to confirm | 'on list don't worry abt it.' |12:46|
Earning .1 | GM Saturn ma | .1 export | +/ 20 OpCos
sales .16 over last 10 yr | one of most active on Nasdaq | 22k shareholders
25 mkt makers | avg return .17 | Goal .15 growth per yr | 1.15 *5 |>| 2.01
Cash div | .25 since '74 | 44 record yrs
Jay: Corp office still 12 people | 4 questions to pres's : Productivity
analysis | < 2 page Pres report | mo trav | Jay Sales , Jim Fin
Planning meetings over 2 mo | bottoms up - listening & revision
Plan B if .1 op income | talks w each wk. | visit 1öQ | Dick @ wolman ?
TomSullivan Chmn | Board meeting 1öQ | he been w 2 >B$ cos | 2000 employees
|13:3| Film |13:17| Jim : Indust Q0 , consumer Q3 | even out Q earnings |
Rustolium Europe | Holderbank mfg in 75 cos mex | incentives to op co pres
Bonus pool , everyone > 40k | translates into stock options | loaded w
incentives | exceptional talents can get options |
sell off comodities | coatings adhesives & sealants - every op co
understands language of others. | aq for synergy | creeping competition
looked to Thommson | Wolman vs processed lumber | mkt share small |
Compititons Ameron , Prat lambert , Thomsons |
Aqs bring in Capital | Aq software ? 'can`t even turn one on' | prods ~
patented |13:32| JimKarman ('59) & Tom ex-MiamiU. | John (Jay) Morris ex
ArmstrongWorldIndustries
==========================ø TUE.JUL,1993ë7ë27 ø===========================
|11:22| |13:4| lost notes to bomb DOS | > 175M RoW | Shareholder
reinvestment support | bought Bondo | 1.25 annual tot return | never borowed
for ops , only acqs .| free cash flow 60M | Eurobond dilution - .025 |
Foreign Ops : .09 of sales | .2 international exposure , bought Rustolium
Europe | Europe slow | Midwest floods ? big future busn | .6 maintan , .4
hobby | everybody needs somebody`s product | China : Goal for `94 , how get
paid | Bulgaria , IMF | LatAmer : Trade barriers | Intnagables write off , ~
1E6 ö yr , 10-40 yr writeoff | Goodwill because ~ cap intensive
4 ’ .12 |>| 0.48 ö 17.75 |>| 0.03
==========================ø TUE.JUL,1994ë7ë26 ø===========================
NYSBC |12:41| Pres Jim : & Jay (S&) 47 record yrs of earning ö 1 shares
sales .06 815M frm 768 , earning .33 52.6 vs 39.4 , ö share : .26 ,
.93$ vs .74 | Bought : Stonhart Polymer floors & Rustolium US | 180th
Fortune earnings - in 500 in sales | 15 independent units reporting to 6
mngrs | GM Saturn plant | .2 of ops export or overseas | 30 on corp staff
45 plants 4000 employees , 1.0 in esop .3 each mo | 75k dealer chnls
Earnings .18 ö yr for past 10 | EöS .12 for 10 yrs | 42k individual
shareholders | rank #4 among indiv investors | RoEq ~ .17 | div 20 yrs
double each 5yrs | cmmpndd RoRtrn .25 since `84 | confident of future
Jim : in fisc 95ë2 | op plan : intro , move blocked mng from on co to another
Pres ltr 2pgs | Plans Mid nov , done by Feb | Apr-May sign-off | expect
Prezs to make plan >< .01 | TomSulivan - acqs | plans refed continually
Plan B guidelines | raw material shortages ? | every yr since `47 | now
reaching 1B$| .24 since `74 | 815E6 ö 4000 |>| 203750 | corossion off
shore sulfer mine | DayGlo | 250m$ overseas - some < JVs | office in
Singapore | Oct AnnMeet | Acqd 30 cos oveer 25 yrs | never borrow for acqs
90 mil for aq ? ||13:21| ? R&D small 1 tek dir works w suppliers | Rustolium
mngt : got out Furgason family - used second level - MikeTeller runs
Rustolium | marine Industrial coats - no | divestitures - sell comodity
prods | I: why price in 16s ? ~ 20 ’ earnings - cyclicality of Ro mkt | pay
for retail shelf space - work hard for it | Div | .13 ’ 4 |>| 0.52
ô .52 ö 18 16 |>| 0.0289 0.0325 |
============================: TUE.JUL,970722 :============================
|12:33| Tom Sulivan Chmn & Jim |12:43| 10 yrs since been here usually
conflict w WDC meeting . exciting News | Video : 50 consec yrs
100k - 57M in 70s | experienced outside board | yrly centralized planning
300M in 80s | 90s 1.3B$ | Tremco acq . : complement other units ,
consolidated several grps | Carboline DayGlo | Div each yr since 70s .
Tot Ann return | 1000 75 11 53k s 930k | 100 best stocks in US & world .
3 plan : acq . borrow only for acqs - convert to prefered | ;rustbond
encapsulating paint . Testor paint pouch spray paint systems | RoW just .2
aim for .25 by 2000 .
Tremco England & SE Asia |12:54| exciting 12 mo : completed yr ago prgs.
mfg in VIM countries . 50M$ return on 11M cost . Reorganizing RepPowder
D ö Cap to .61 - lowered moody | have lowered to .57 or .37 if count
convertable as eq | bought 200M$ for 120M - 5-6 x Op Earnings . 9 new 30 yr
old talents . W/In .01 of yr ago budet . sales .2 earn .14 . 2ö3 growth
from core busn | not change style | Preminent in Maintanence .
AGR >> .15 over last decade . have divested 250M$ non core Cos .
Margin .059 this yr . ex Trimco : .061 |
eps .12 | .33 1 | Shareholder gain | 24 yrs div increas + stock divs .
fallen behind S&P in last 5 yrs . traded 1.2 now .85 of S&P avg PöE
Since `74 .21 avg Tot return . |13:4| ?s | recognized maintance Roofs &
floors . Zinzer Rustolium Bondo | 7 ops accnt for .75 of tot mkt . run by
40 yrOlds | Ted : internal vs acqs grow ? been ~ .5 .5 . expect internal to
dominate as get larger | Acqs ? have resources to do can do anything we want
| 50 on 11 M in SA , Russia , SE Asia . Past Pres of HolderBank MaxArmstrong
- become global | SA ? politics more stable | acqs offer buy | argentena ,
Brazil | MikeStorm : Tremco just costing $$s ? now broke even including
expenses . expect it to add .05 ö shares . bought 300M sold Squiggle for 107
M . kept 200M$ Cdn retail leaders . gross profit .65 . Sealants .0 , ours .2
. plan to bring theirs up to ours . waterproofing co as big as any |
HenryLucander : grooming talent for Russia & other ? Local People - offer
.25 of Co . Several have been long time licensees for > 20yrs | 20 op cos .
overlap ? have some internal competiton . Ted : crossFertalization | David :
Roofer chose Products ? Tremco does schools . go to aplicator not contractor
| stop stock divs to let price go up ? studies show people like #s in 12 -
18 range . most boring stock | Lew? : stik to core or create sizzle ?
Reverting from rubber to BUR w felt . Arosol sprays compact color tubes .
Chic outlawd aerosols . environ frendly pkg | NAFTA impact ? clearly has
helpd in CD & MX . expect to be general win | stok divs 1 53 in 20 yrs |
not far out of Mkt ? right | Larry : S&P project : .12 nxt 5 yrs ? w/i goals
| rumer abt tender for SherwinWill |13:29|
|14:13| Afterward speaking w Pres JamesKarman : Stonehard Flooring follows US
multinationals as the build facilities around the world | East Europe big
mkt for Dryvit Outsulation | Medina OH Headquarters staff still just 30 .
most increase in Environmental and other regulatatory specialists | Tremco
bought frm Goodrich has much room for head count cutting . Is being done .
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