MYE Myers Industries Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 1, 2024

 

Myers Industries, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

Ohio		001-8524		34-0778636
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

1293 South Main Street, Akron, Ohio 44301

(Address of Principal Executive Offices, and Zip Code)

(330) 253-5592

Registrant’s Telephone Number, Including Area Code

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, without par value		MYE		The New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition.

On August 1, 2024, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the second quarter ended June 30, 2024. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, a copy of the presentation which will be discussed during the Company’s earnings conference call at 8:30 a.m. Eastern Time on August 1, 2024, is available on the Investor Relations section of the Company’s website at www.myersindustries.com. Information about the Company’s earnings conference call can be found in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”), except as may be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

As described in “Item 2.02 Results of Operations and Financial Condition” above, on August 1, 2024, the Company issued a press release announcing earnings results for the second quarter ended June 30, 2024. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, a copy of the presentation which will be discussed during the Company’s earnings conference call at 8:30 a.m. Eastern Time on August 1, 2024, is available on the Investor Relations section of the Company’s website at www.myersindustries.com. Information about the Company’s earnings conference call can be found in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description
99.1		Press Release, dated August 1, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Myers Industries, Inc.
	By:		/s/ Grant E. Fitz
			Grant E. Fitz
			Executive Vice President and Chief Financial Officer
Date: August 1, 2024

 

 

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Exhibit 99.1

 

 

Myers Industries Announces Second Quarter 2024 Results

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

 

August 1, 2024, Akron, Ohio - 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

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.

 

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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%		+0	bps		39.0%		+420	bps

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.

 

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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)%		-120	bps		(20.1)%		-30	bps

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:

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.

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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.

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

M-INV

Source: Myers Industries, Inc.

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

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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

 

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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

 

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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.

 

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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

 

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v3.24.2.u1

Document and Entity Information	Aug. 01, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 01, 2024
Entity Registrant Name	Myers Industries, Inc.
Entity Central Index Key	0000069488
Entity Emerging Growth Company	false
Securities Act File Number	001-8524
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-0778636
Entity Address, Address Line One	1293 South Main Street
Entity Address, City or Town	Akron
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44301
City Area Code	330
Local Phone Number	253-5592
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, without par value
Trading Symbol	MYE
Security Exchange Name	NYSE

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