MYE Myers Industries Inc

Strong Signature Systems performance improves second quarter results

Actions taken in the second quarter to reduce costs and leverage productivity gains; executing against previously communicated target of $7M-$9M in annualized cost savings by 2025

Full-year guidance lowered to $1.05 - $1.20 for adjusted earnings per share, primarily due to continued demand pressure in Recreational Vehicle, Marine, and Automotive Aftermarket end markets

Myers Industries Inc. (NYSE: MYE), a leading manufacturer of a wide range of polymer and metal products and distributor for tire, wheel, and under-vehicle service industry, today announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Financial Highlights

• Net sales of $220.2 million compared with $208.5 million in the prior-year period
• Net Income of $10.3 million, compared with $10.6 million in the prior-year period
• Adjusted EBITDA of $38.9 million, compared with $24.7 million in the prior-year period
• GAAP gross margin of 34.3%, up 150 basis points versus the prior-year period
• Adjusted gross margin of 36.1%, up 320 basis points versus the prior-year period
• GAAP net income per diluted share of $0.28 compared with $0.29 in the prior-year period
• Adjusted earnings per diluted share of $0.39 compared with $0.35 in the prior-year period
• Cash flow provided by operations of $14.3 million and free cash flow of $9.9 million

Myers Industries President and CEO Mike McGaugh commented, “Our second-quarter results reflect the Company’s first full quarter with Signature Systems. This business is benefiting from worldwide investments in Infrastructure and helped drive both sequential and year-over-year revenue growth and margin expansion. Signature’s performance outpaced the demand headwinds in the Recreational Vehicle (RV), Marine, and Automotive Aftermarket end markets.”

“We continue to focus on growing our Storage, Handling & Protection portfolio, most notably our four power brands: Akro-Mils, Buckhorn, Scepter, and Signature Systems. We believe our increased participation in the Military and Infrastructure end markets will provide meaningful growth for our Company over the next several years.

At the same time, we are taking actions to reduce costs and increase productivity in the Engineered Solutions and Automotive Aftermarket portfolios. These actions include the consolidation of three distribution centers in our Myers Tire Supply business, as well as today’s announcement of the consolidation of our Atlantic, Iowa, rotational molding facility into our other rotational molding plants in Indiana. We are able to reduce our footprint and reduce our cost structure, due to the productivity gains we’ve achieved. We expect these closures to be completed in 2025 and deliver approximately $5 million in cost savings in 2025 as well.

Our ongoing productivity-improvement and cost-reduction initiatives will help us navigate the cyclical demand conditions in the RV, Marine, and Automotive Aftermarket end markets while positioning the Company favorably for when these conditions revert to historical levels of demand.”

McGaugh concluded, “As a result of continued trough-like demand conditions in these end markets, we believe it is prudent to lower our full-year adjusted earnings per share guidance to a range of $1.05 to $1.20.

Myers’ consistent and disciplined execution of our Three-Horizon strategy and the expansion of our portfolio of branded products enabled us to achieve the highest quarterly adjusted EBITDA margin of the past decade. Despite the near-term demand softness in select end markets, we remain excited about the ongoing transformation of Myers Industries as we execute against our long-term strategy to build a portfolio of businesses with high margin, branded products that Move, Store, and Protect.”

Second Quarter 2024 Financial Summary

 

 

Quarter Ended June 30,

(Dollars in thousands, except per share data)

 

2024

 

2023

 

% Inc (Dec)

Net sales

 

$220,236

 

$208,453

 

5.7%

Gross profit

 

$75,517

 

$68,410

 

10.4%

Gross margin

 

34.3%

 

32.8%

 

 

Operating income

 

$23,728

 

$16,142

 

47.0%

Net income

 

$10,279

 

$10,605

 

(3.1)%

Net income per diluted share

 

$0.28

 

$0.29

 

(3.4)%

 

 

 

 

 

 

 

Adjusted operating income

 

$28,826

 

$19,027

 

51.5%

Adjusted net income

 

$14,561

 

$12,928

 

12.6%

Adjusted earnings per diluted share

 

$0.39

 

$0.35

 

11.4%

Adjusted EBITDA

 

$38,893

 

$24,704

 

57.4%

Net sales were $220.2 million, an increase of $11.8 million, or 5.7%, compared with $208.5 million for the second quarter of 2023. The increase in net sales was driven by contributions from the recent acquisition of Signature Systems, partially offset by lower pricing and volumes in both the Material Handling and Distribution segments.

Gross profit increased $7.1 million, or 10.4%, to $75.5 million, driven by performance at Signature Systems, favorable product mix and lower material costs, partially offset by lower pricing and volume, as well as adjusting items related to acquisition and restructuring expenses. Gross margin improved 150 basis points to 34.3% compared with 32.8% for the second quarter of 2023. On an adjusted basis, gross profit increased 320 basis points to 36.1% from 32.9%. Selling, general and administrative expenses decreased $0.7 million year-over-year, or 1.3%, to $51.7 million. SG&A as a percentage of sales decreased to 23.5%, compared with 25.8% in the first quarter of 2024 and 25.1% in the same period last year, driven in part by lower incentive compensation accruals, reflecting Myers’ full-year outlook and cost-saving initiatives. Net income per diluted share was $0.28, compared with $0.29 for the second quarter of 2023. Adjusted earnings per diluted share were $0.39, compared with $0.35 for the second quarter of 2023.

Second Quarter 2024 Segment Results

(Dollar amounts in the segment tables below are reported in millions)

Material Handling

 

Net Sales

 

Op Income

 

Op Income Margin

 

Adj EBITDA

 

Adj EBITDA Margin

Q2 2024 Results

$166.0

 

$28.7

 

17.3%

 

$41.5

 

25.0%

Q2 2023 Results

$143.3

 

$24.8

 

17.3%

 

$29.9

 

20.8%

$ Increase (decrease) vs prior year

$22.7

 

$3.9

 

 

 

$11.6

 

 

% Increase (decrease) vs prior year

15.9%

 

15.6%

 

+0bps

 

39.0%

 

+420bps

Items in this table may not recalculate due to rounding

 

Net sales for the Material Handling segment were $166.0 million, an increase of $22.7 million, or 15.9%, compared with $143.3 million for the second quarter of 2023. Sales from the addition of Signature Systems were partly offset by decreases, primarily in Recreational Vehicle and Marine, but also Food & Beverage and Consumer end markets.

Operating income increased 15.6% to $28.7 million, compared with $24.8 million in the second quarter of 2023. Operating income margin of 17.3% was flat compared with the second quarter of 2023. Adjusted EBITDA increased 39.0% to $41.5 million, compared with $29.9 million in the second quarter of 2023. SG&A expenses increased year-over-year, primarily due to incremental SG&A from Signature, partially offset by lower expenses for professional services and incentive compensation. Adjusted EBITDA margin improved by 420 basis points, primarily attributed to the Signature acquisition, partially offset by lower sales volume and pricing in the legacy business.

Distribution

 

Net Sales

 

Op Income

 

Op Income Margin

 

Adj EBITDA

 

Adj EBITDA Margin

Q2 2024 Results

$54.3

 

$2.2

 

4.0%

 

$3.8

 

6.9%

Q2 2023 Results

$65.2

 

$3.4

 

5.2%

 

$4.7

 

7.2%

$ Increase (decrease) vs prior year

($10.9)

 

($1.2)

 

 

 

($0.9)

 

 

% Increase (decrease) vs prior year

(16.7)%

 

(35.9)%

 

-120bps

 

(20.1)%

 

-30bps

Items in this table may not recalculate due to rounding

 

 

 

 

 

 

 

 

 

Operating income decreased $1.2 million to $2.2 million, compared with $3.4 million for the second quarter of 2023. Adjusted EBITDA decreased 20.1% to $3.8 million, compared with $4.7 million in the second quarter of 2023. The decrease in operating income and adjusted EBITDA was primarily due to lower volume and pricing, offset partially by favorable sales mix and material costs. SG&A expenses decreased year-over-year, primarily due to lower payroll costs and lower variable selling expenses. The Distribution segment's operating income margin was 4.0% compared with 5.2% for the second quarter of 2023. The Distribution segment’s adjusted EBITDA margin was 6.9%, compared with 7.2% for the second quarter of 2023. The Distribution Segment continues to implement pricing and cost actions to counter cost inflation and improve margin.

Balance Sheet & Cash Flow

As of June 30, 2024, the Company’s cash on hand totaled $37.3 million. Total debt as of June 30, 2024, was $409.0 million. Under the terms of the Company’s loan agreement, its net leverage ratio was 2.6x and it had $231.4 million of availability under its revolving credit facility as of June 30, 2024. For the second quarter of 2024, cash flow provided by operations was $14.3 million and free cash flow was $9.9 million, compared with cash flow provided by operations of $22.9 million and free cash flow of $16.7 million for the second quarter of 2023. The decrease in free cash flow was driven primarily by increased interest expense and investment in working capital, partially offset by contributions from Signature. Capital expenditures for the second quarter of 2024 were $4.4 million, compared with $6.1 million for the second quarter of 2023.

2024 Outlook

Based on current exchange rates, market outlook and business forecast, the Company is providing the following outlook for fiscal 2024:

• Net sales growth of 5% to 10%
• Net income per diluted share in the range of $0.76 to $0.91
• Adjusted earnings per diluted share in the range of $1.05 to $1.20
• Capital expenditures in the range of $30 million to $35 million
• Effective tax rate to approximate 26%

Myers will continue to monitor market conditions and provide updates throughout the year.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, August 1, 2024, at 8:30 a.m. ET. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.netroadshow.com/events/login?show=ca1ab624&confId=68382. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (U.S. Local) 1-929-458-6194 or (U.S. Toll-Free) 1-866-813-9403 Access Code: 408754.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross margin, adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

About Myers Industries

Myers Industries Inc., based in Akron, Ohio, is a manufacturer of sustainable plastic and metal products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel, and under-vehicle service industry in the United States. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company’s actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements.

Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.

M-INV

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

June 30, 2024

 

 

June 30, 2023

 

Net sales

 

$

220,236

 

 

$

208,453

 

 

$

427,338

 

 

$

424,192

 

Cost of sales

 

 

144,719

 

 

 

140,043

 

 

 

287,552

 

 

 

284,717

 

Gross profit

 

 

75,517

 

 

 

68,410

 

 

 

139,786

 

 

 

139,475

 

Selling, general and administrative expenses

 

 

51,661

 

 

 

52,351

 

 

 

105,118

 

 

 

104,432

 

(Gain) loss on disposal of fixed assets

 

 

128

 

 

 

(83

)

 

 

61

 

 

 

(56

)

Operating income (loss)

 

 

23,728

 

 

 

16,142

 

 

 

34,607

 

 

 

35,099

 

Interest expense, net

 

 

9,006

 

 

 

1,790

 

 

 

15,085

 

 

 

3,436

 

Income (loss) before income taxes

 

 

14,722

 

 

 

14,352

 

 

 

19,522

 

 

 

31,663

 

Income tax expense (benefit)

 

 

4,443

 

 

 

3,747

 

 

 

5,740

 

 

 

8,082

 

Net income (loss)

 

$

10,279

 

 

$

10,605

 

 

$

13,782

 

 

$

23,581

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

 

$

0.29

 

 

$

0.37

 

 

$

0.64

 

Diluted

 

$

0.28

 

 

$

0.29

 

 

$

0.37

 

 

$

0.64

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

37,179,658

 

 

 

36,761,916

 

 

 

37,043,913

 

 

 

36,663,345

 

Diluted

 

 

37,312,394

 

 

 

36,892,177

 

 

 

37,257,302

 

 

 

36,874,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

June 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

37,345

 

 

$

30,290

 

Trade accounts receivable, net

 

 

129,775

 

 

 

113,907

 

Other accounts receivable, net

 

 

9,050

 

 

 

14,726

 

Inventories, net

 

 

105,796

 

 

 

90,844

 

Other current assets

 

 

13,577

 

 

 

6,854

 

Total Current Assets

 

 

295,543

 

 

 

256,621

 

Property, plant, & equipment, net

 

 

135,251

 

 

 

107,933

 

Right of use asset - operating leases

 

 

31,751

 

 

 

27,989

 

Goodwill and intangible assets, net

 

 

474,685

 

 

 

140,521

 

Deferred income taxes

 

 

209

 

 

 

209

 

Other assets

 

 

14,194

 

 

 

8,358

 

Total Assets

 

$

951,633

 

 

$

541,631

 

Liabilities & Shareholders' Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

93,097

 

 

$

79,050

 

Accrued expenses

 

 

44,137

 

 

 

53,523

 

Operating lease liability - short-term

 

 

6,223

 

 

 

5,943

 

Finance lease liability - short-term

 

 

609

 

 

 

593

 

Long-term debt - current portion

 

 

19,603

 

 

 

25,998

 

Total Current Liabilities

 

 

163,669

 

 

 

165,107

 

Long-term debt

 

 

380,450

 

 

 

31,989

 

Operating lease liability - long-term

 

 

25,003

 

 

 

22,352

 

Finance lease liability - long-term

 

 

8,306

 

 

 

8,615

 

Other liabilities

 

 

17,543

 

 

 

12,108

 

Deferred income taxes

 

 

62,110

 

 

 

8,660

 

Total Shareholders' Equity

 

 

294,552

 

 

 

292,800

 

Total Liabilities & Shareholders' Equity

 

$

951,633

 

 

$

541,631

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

10,279

 

 

$

10,605

 

 

$

13,782

 

 

$

23,581

 

Adjustments to reconcile net income to net cash provided by (used for) operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,067

 

 

 

5,677

 

 

 

18,564

 

 

 

11,295

 

Amortization of deferred financing costs

 

 

544

 

 

 

78

 

 

 

775

 

 

 

156

 

Amortization of acquisition-related inventory step-up

 

 

1,342

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Non-cash stock-based compensation expense

 

 

(135

)

 

 

2,488

 

 

 

547

 

 

 

4,392

 

(Gain) loss on disposal of fixed assets

 

 

128

 

 

 

(83

)

 

 

61

 

 

 

(56

)

Other

 

 

170

 

 

 

3,319

 

 

 

164

 

 

 

2,492

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable - trade and other, net

 

 

248

 

 

 

11,915

 

 

 

8,212

 

 

 

15,096

 

Inventories

 

 

(2,145

)

 

 

4,048

 

 

 

(1,959

)

 

 

(4,730

)

Prepaid expenses and other current assets

 

 

(5,528

)

 

 

(5,048

)

 

 

(4,643

)

 

 

(3,828

)

Accounts payable and accrued expenses

 

 

(623

)

 

 

(10,147

)

 

 

(5,343

)

 

 

240

 

Net cash provided by (used for) operating activities

 

 

14,347

 

 

 

22,852

 

 

 

34,617

 

 

 

48,638

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(4,417

)

 

 

(6,125

)

 

 

(10,124

)

 

 

(15,216

)

Acquisition of business, net of cash acquired

 

 

578

 

 

 

—

 

 

 

(348,312

)

 

 

(160

)

Proceeds from sale of property, plant, and equipment

 

 

9

 

 

 

109

 

 

 

84

 

 

 

142

 

Net cash provided by (used for) investing activities

 

 

(3,830

)

 

 

(6,016

)

 

 

(358,352

)

 

 

(15,234

)

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) from revolving credit facility

 

 

4,000

 

 

 

(9,800

)

 

 

(7,000

)

 

 

(15,000

)

Proceeds from Term Loan A

 

 

—

 

 

 

—

 

 

 

400,000

 

 

 

—

 

Repayments of Term Loan A

 

 

(5,000

)

 

 

—

 

 

 

(5,000

)

 

 

—

 

Repayments of senior unsecured notes

 

 

—

 

 

 

—

 

 

 

(38,000

)

 

 

—

 

Payments on finance lease

 

 

(149

)

 

 

(129

)

 

 

(292

)

 

 

(258

)

Cash dividends paid

 

 

(5,022

)

 

 

(5,022

)

 

 

(10,367

)

 

 

(10,296

)

Proceeds from issuance of common stock

 

 

350

 

 

 

437

 

 

 

2,758

 

 

 

1,569

 

Shares withheld for employee taxes on equity awards

 

 

(100

)

 

 

(34

)

 

 

(1,974

)

 

 

(2,033

)

Deferred financing fees

 

 

—

 

 

 

—

 

 

 

(9,172

)

 

 

—

 

Net cash provided by (used for) financing activities

 

 

(5,921

)

 

 

(14,548

)

 

 

330,953

 

 

 

(26,018

)

Foreign exchange rate effect on cash

 

 

19

 

 

 

163

 

 

 

(163

)

 

 

167

 

Net increase (decrease) in cash

 

 

4,615

 

 

 

2,451

 

 

 

7,055

 

 

 

7,553

 

Beginning Cash

 

 

32,730

 

 

 

28,241

 

 

 

30,290

 

 

 

23,139

 

Ending Cash

 

$

37,345

 

 

$

30,692

 

 

$

37,345

 

 

$

30,692

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended June 30, 2024

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

166,008

 

 

$

54,265

 

 

$

220,273

 

 

$

(37

)

 

$

220,236

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,279

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

75,517

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,711

 

Add: Acquisition-related inventory step-up

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,342

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79,570

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

28,701

 

 

 

2,179

 

 

 

30,880

 

 

 

(7,152

)

 

 

23,728

 

Operating income margin

 

 

17.3

%

 

 

4.0

%

 

 

14.0

%

 

n/a

 

 

 

10.8

%

Add: Restructuring expenses and other adjustments

 

 

2,223

 

 

 

755

 

 

 

2,978

 

 

 

—

 

 

 

2,978

 

Add: Acquisition and integration costs

 

 

207

 

 

 

—

 

 

 

207

 

 

 

471

 

 

 

678

 

Add: Acquisition-related inventory step-up

 

 

1,342

 

 

 

—

 

 

 

1,342

 

 

 

—

 

 

 

1,342

 

Add: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

100

 

 

 

100

 

Adjusted operating income (loss)(1)

 

 

32,473

 

 

 

2,934

 

 

 

35,407

 

 

 

(6,581

)

 

 

28,826

 

Adjusted operating income margin

 

 

19.6

%

 

 

5.4

%

 

 

16.1

%

 

n/a

 

 

 

13.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

9,023

 

 

 

830

 

 

 

9,853

 

 

 

214

 

 

 

10,067

 

Adjusted EBITDA

 

$

41,496

 

 

$

3,764

 

 

$

45,260

 

 

$

(6,367

)

 

$

38,893

 

Adjusted EBITDA margin

 

 

25.0

%

 

 

6.9

%

 

 

20.5

%

 

n/a

 

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gross profit adjustments of $4,053 and SG&A adjustments of $1,045

 

(2) Includes environmental charges of $800 net of probable insurance recoveries of $700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30, 2023

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

143,295

 

 

$

65,173

 

 

$

208,468

 

 

$

(15

)

 

$

208,453

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,605

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68,410

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

180

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68,590

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

24,828

 

 

 

3,398

 

 

 

28,226

 

 

 

(12,084

)

 

 

16,142

 

Operating income margin

 

 

17.3

%

 

 

5.2

%

 

 

13.5

%

 

n/a

 

 

 

7.7

%

Add: Restructuring expenses and other adjustments

 

 

275

 

 

 

—

 

 

 

275

 

 

 

—

 

 

 

275

 

Add: Acquisition and integration costs

 

 

—

 

 

 

111

 

 

 

111

 

 

 

—

 

 

 

111

 

Add: Executive severance costs

 

 

—

 

 

 

410

 

 

 

410

 

 

 

289

 

 

 

699

 

Add: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,800

 

 

 

1,800

 

Adjusted operating income (loss)(1)

 

 

25,103

 

 

 

3,919

 

 

 

29,022

 

 

 

(9,995

)

 

 

19,027

 

Adjusted operating income margin

 

 

17.5

%

 

 

6.0

%

 

 

13.9

%

 

n/a

 

 

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,755

 

 

 

790

 

 

 

5,545

 

 

 

132

 

 

 

5,677

 

Adjusted EBITDA

 

$

29,858

 

 

$

4,709

 

 

$

34,567

 

 

$

(9,863

)

 

$

24,704

 

Adjusted EBITDA margin

 

 

20.8

%

 

 

7.2

%

 

 

16.6

%

 

n/a

 

 

 

11.9

%

 

 

(1) Includes gross profit adjustments of $180 and SG&A adjustments of $2,705

 

(2) Includes environmental charges of $1,900 net of probable insurance recoveries of $100

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Six Months Ended June 30, 2024

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

318,233

 

 

$

109,159

 

 

$

427,392

 

 

$

(54

)

 

$

427,338

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,782

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139,786

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,952

 

Add: Acquisition-related inventory step-up

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,457

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147,195

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

50,957

 

 

 

2,784

 

 

 

53,741

 

 

 

(19,134

)

 

 

34,607

 

Operating income margin

 

 

16.0

%

 

 

2.6

%

 

 

12.6

%

 

n/a

 

 

 

8.1

%

Add: Restructuring expenses and other adjustments

 

 

2,464

 

 

 

755

 

 

 

3,219

 

 

 

—

 

 

 

3,219

 

Add: Acquisition and integration costs

 

 

305

 

 

 

—

 

 

 

305

 

 

 

3,783

 

 

 

4,088

 

Add: Acquisition-related inventory step-up

 

 

4,457

 

 

 

—

 

 

 

4,457

 

 

 

—

 

 

 

4,457

 

Less: Insurance recovery of legal fees

 

 

(702

)

 

 

—

 

 

 

(702

)

 

 

—

 

 

 

(702

)

Less: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(200

)

 

 

(200

)

Adjusted operating income (loss)(1)

 

 

57,481

 

 

 

3,539

 

 

 

61,020

 

 

 

(15,551

)

 

 

45,469

 

Adjusted operating income margin

 

 

18.1

%

 

 

3.2

%

 

 

14.3

%

 

n/a

 

 

 

10.6

%

Add: Depreciation and amortization

 

 

16,548

 

 

 

1,603

 

 

 

18,151

 

 

 

413

 

 

 

18,564

 

Adjusted EBITDA

 

$

74,029

 

 

$

5,142

 

 

$

79,171

 

 

$

(15,138

)

 

$

64,033

 

Adjusted EBITDA margin

 

 

23.3

%

 

 

4.7

%

 

 

18.5

%

 

n/a

 

 

 

15.0

%

 

 

(1) Includes gross profit adjustments of $7,409 and SG&A adjustments of $3,453

 

(2) Includes environmental charges of $800 net of probable insurance recoveries of $1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

295,857

 

 

$

128,358

 

 

$

424,215

 

 

$

(23

)

 

$

424,192

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,581

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139,475

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

282

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139,757

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

50,179

 

 

 

5,635

 

 

 

55,814

 

 

 

(20,715

)

 

 

35,099

 

Operating income margin

 

 

17.0

%

 

 

4.4

%

 

 

13.2

%

 

n/a

 

 

 

8.3

%

Add: Restructuring expenses and other adjustments

 

 

696

 

 

 

179

 

 

 

875

 

 

 

10

 

 

 

885

 

Add: Acquisition and integration costs

 

 

—

 

 

 

220

 

 

 

220

 

 

 

126

 

 

 

346

 

Add: Executive severance costs

 

 

—

 

 

 

410

 

 

 

410

 

 

 

289

 

 

 

699

 

Add: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,300

 

 

 

2,300

 

Adjusted operating income (loss)(1)

 

 

50,875

 

 

 

6,444

 

 

 

57,319

 

 

 

(17,990

)

 

 

39,329

 

Adjusted operating income margin

 

 

17.2

%

 

 

5.0

%

 

 

13.5

%

 

n/a

 

 

 

9.3

%

Add: Depreciation and amortization

 

 

9,354

 

 

 

1,663

 

 

 

11,017

 

 

 

278

 

 

 

11,295

 

Adjusted EBITDA

 

$

60,229

 

 

$

8,107

 

 

$

68,336

 

 

$

(17,712

)

 

$

50,624

 

Adjusted EBITDA margin

 

 

20.4

%

 

 

6.3

%

 

 

16.1

%

 

n/a

 

 

 

11.9

%

 

 

(1) Includes gross profit adjustments of $282 and SG&A adjustments of $3,948

 

(2) Includes environmental charges of $3,500 net of probable insurance recoveries of $1,200

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Adjusted operating income (loss) reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

23,728

 

 

$

16,142

 

 

$

34,607

 

 

$

35,099

 

Restructuring expenses and other adjustments

 

 

2,978

 

 

 

275

 

 

 

3,219

 

 

 

885

 

Acquisition and integration costs

 

 

678

 

 

 

111

 

 

 

4,088

 

 

 

346

 

Acquisition-related inventory step-up

 

 

1,342

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(702

)

 

 

—

 

Executive severance costs

 

 

—

 

 

 

699

 

 

 

—

 

 

 

699

 

Environmental reserves, net

 

 

100

 

 

 

1,800

 

 

 

(200

)

 

 

2,300

 

Adjusted operating income (loss)

 

$

28,826

 

 

$

19,027

 

 

$

45,469

 

 

$

39,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

10,279

 

 

$

10,605

 

 

$

13,782

 

 

$

23,581

 

Income tax expense (benefit)

 

 

4,443

 

 

 

3,747

 

 

 

5,740

 

 

 

8,082

 

Interest expense, net

 

 

9,006

 

 

 

1,790

 

 

 

15,085

 

 

 

3,436

 

Operating income (loss)

 

 

23,728

 

 

 

16,142

 

 

 

34,607

 

 

 

35,099

 

Depreciation and amortization

 

 

10,067

 

 

 

5,677

 

 

 

18,564

 

 

 

11,295

 

Restructuring expenses and other adjustments

 

 

2,978

 

 

 

275

 

 

 

3,219

 

 

 

885

 

Acquisition and integration costs

 

 

678

 

 

 

111

 

 

 

4,088

 

 

 

346

 

Acquisition-related inventory step-up

 

 

1,342

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(702

)

 

 

—

 

Executive severance costs

 

 

—

 

 

 

699

 

 

 

—

 

 

 

699

 

Environmental reserves, net

 

 

100

 

 

 

1,800

 

 

 

(200

)

 

 

2,300

 

Adjusted EBITDA

 

$

38,893

 

 

$

24,704

 

 

$

64,033

 

 

$

50,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

14,347

 

 

$

22,852

 

 

$

34,617

 

 

$

48,638

 

Capital expenditures

 

 

(4,417

)

 

 

(6,125

)

 

 

(10,124

)

 

 

(15,216

)

Free cash flow

 

$

9,930

 

 

$

16,727

 

 

$

24,493

 

 

$

33,422

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

Adjusted net income (loss) reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

10,279

 

 

$

10,605

 

 

$

13,782

 

 

$

23,581

 

 

Income tax expense (benefit)

 

 

4,443

 

 

 

3,747

 

 

 

5,740

 

 

 

8,082

 

 

Income (loss) before income taxes

 

 

14,722

 

 

 

14,352

 

 

 

19,522

 

 

 

31,663

 

 

Restructuring expenses and other adjustments

 

 

2,978

 

 

 

275

 

 

 

3,219

 

 

 

885

 

 

Acquisition and integration costs

 

 

678

 

 

 

111

 

 

 

4,088

 

 

 

346

 

 

Acquisition-related inventory step-up

 

 

1,342

 

 

 

—

 

 

 

4,457

 

 

 

—

 

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(702

)

 

 

—

 

 

Executive severance costs

 

 

—

 

 

 

699

 

 

 

—

 

 

 

699

 

 

Environmental reserves, net

 

 

100

 

 

 

1,800

 

 

 

(200

)

 

 

2,300

 

 

Adjusted income (loss) before income taxes

 

 

19,820

 

 

 

17,237

 

 

 

30,384

 

 

 

35,893

 

 

Income tax expense, as adjusted (1)

 

 

(5,259

)

 

 

(4,309

)

 

 

(7,900

)

 

 

(8,973

)

 

Adjusted net income (loss)

 

$

14,561

 

 

$

12,928

 

 

$

22,484

 

 

$

26,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per diluted share reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common diluted share

 

$

0.28

 

 

$

0.29

 

 

$

0.37

 

 

$

0.64

 

 

Restructuring expenses and other adjustments

 

 

0.08

 

 

 

0.00

 

 

 

0.09

 

 

 

0.02

 

 

Acquisition and integration costs

 

 

0.02

 

 

 

0.00

 

 

 

0.11

 

 

 

0.01

 

 

Acquisition-related inventory step-up

 

 

0.04

 

 

 

—

 

 

 

0.12

 

 

 

—

 

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(0.02

)

 

 

—

 

 

Executive severance costs

 

 

—

 

 

 

0.02

 

 

 

—

 

 

 

0.02

 

 

Environmental reserves, net

 

 

0.00

 

 

 

0.05

 

 

 

(0.01

)

 

 

0.06

 

 

Adjusted effective income tax rate impact

 

 

(0.03

)

 

 

(0.01

)

 

 

(0.06

)

 

 

(0.02

)

 

Adjusted earnings per diluted share(2)

 

$

0.39

 

 

$

0.35

 

 

$

0.60

 

 

$

0.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items in this table may not recalculate due to rounding

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2024 is 26% and in 2023 is 25%.

(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE

(UNAUDITED)

 

 

Full Year 2024 Guidance

 

 

Low

 

 

High

 

GAAP diluted net income per common share

$

0.76

 

 

$

0.91

 

Add: Net restructuring expenses and other adjustments

 

0.14

 

 

 

0.14

 

Add: Acquisition and integration costs (3)

 

0.25

 

 

 

0.25

 

Less: Insurance recovery of legal fees

 

(0.02

)

 

 

(0.02

)

Less: Environmental reserves, net

 

(0.01

)

 

 

(0.01

)

Less: Adjusted effective income tax rate impact (1)

 

(0.07

)

 

 

(0.07

)

Adjusted earnings per diluted share (2)

$

1.05

 

 

$

1.20

 

 

 

 

 

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2024 is 26%.

 

(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding.

 

(3) Includes acquisition-related inventory step-up costs

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801624582/en/

Meghan Beringer, Senior Director Investor Relations, 252-536-5651