Self-Help Initiatives and Myers Business System
Drive Solid Operating Performance
Company Initiates Fiscal Year 2024 Outlook and
Expects Improved Profitability as Compared to Prior Year
Myers to Host Investor & Analyst Day Event
in New York City on March 19, 2024
Myers Industries, Inc. (NYSE: MYE), a leading manufacturer of a
wide range of polymer and metal products and distributor for the
tire, wheel, and under-vehicle service industry, today announced
results for the fourth quarter and full year ended December 31,
2023.
In reviewing the 2023 financial results, Myers Industries’
President and CEO Mike McGaugh commented, “Although our results
were not what we originally planned to deliver in 2023, we remain
encouraged by the resiliency of many of our business units despite
continued cyclical headwinds in several of our key end markets.
Demonstrating the strength of our diverse portfolio, 2023 marked a
year of continued progress and still yielded one of the top years
in the history of our company for adjusted earnings per share,
adjusted EBITDA, and revenue. Further, year over year operating
cash flow generation increased by $13.6 million and free cash flow
generation increased by $15.0 million, as we continue to benefit
from early implementation of the Myers Business System to help
drive Operational Excellence.”
Fourth Quarter 2023 Financial
Highlights
- Net sales of $191.1 million compared to $212.8 million in the
prior year period
- Gross margin of 30.0%, down 60 basis points versus the prior
year period
- GAAP net income per diluted share of $0.34 compared to $0.36 in
the prior year period
- Adjusted earnings per diluted share of $0.29 compared to $0.32
in the prior year period
- Cash flow provided by operations was $15.4 million and free
cash flow was $11.8 million
Full Year 2023 Financial
Highlights
- Net sales of $813.1 million compared to $899.5 million in the
prior year period
- Gross margin of 31.9%, up 40 basis points versus the prior year
period
- GAAP net income per diluted share of $1.32 compared to $1.64 in
the prior year period
- Adjusted earnings per diluted share of $1.39 compared to $1.68
in the prior year period
- Cash flow provided by operations was $86.2 million and free
cash flow was $63.3 million
- Subsequent to fiscal year end, closed on acquisition of
Signature Systems, enhancing Myers' long-term margin and EPS growth
profiles
Myers Industries’ President and CEO Mike McGaugh continued, “In
closing 2023, our Material Handling segment delivered respectable
fourth quarter financial results with continued strong margins
in-spite of demand headwinds in RV, Marine, and Consumer
end-markets. We continue to see results from our Operational
Excellence and Commercial Excellence initiatives, what we call our
Self-Help programs. As a result, when these cyclical end markets
improve, we expect to benefit more than we have historically."
“Our Distribution segment performance in 2023 was disappointing
and not reflective of our expectations for this business. Our
fourth quarter results were unfavorably impacted due to a
short-term decline in sales volume and revenue, primarily a
transition effect of our Distribution sales organization
realignment, which was implemented in the third quarter of 2023. We
expect our Distribution segment to demonstrate future revenue
growth and improved profitability as we build on the scale and
reach achieved from the Mohawk acquisition and begin to realize the
benefits from our sales organization improvements.”
“We continue to be excited about the growth and innovation
projects in our Material Handling segment, many of which have a
long-term growth runway. In particular, we see strong growth
opportunities in Military cases, Industrial boxes, and our
e-commerce sales channel. We also continue to be pleased with our
progress on our Sustainability efforts, as highlighted in our third
annual ESG report to be released this week.”
McGaugh continued, “We’ve made another significant step forward
in expanding our branded product portfolio, increasing our
end-market diversification by acquiring Signature Systems. This
business is less cyclical than our traditional portfolio of
businesses, but it has similar cash flow generation potential, and
it moves us into faster growing markets with greater tail winds. We
believe Signature Systems is a catalyst for Myers’ transformation
and a growth engine for the Company.”
McGaugh concluded, “In 2023, we continued to improve our
company; quite frankly, it is unrecognizable from the one I joined
in the spring of 2020. We are confident that the progress we’ve
made in our Commercial Excellence and Operational Excellence over
the past few years, coupled with our leading brands in diverse end
markets and our acquisition of Signature System, will serve as a
solid foundation for meaningful shareholder value creation as we
advance through our three-horizon strategy.”
Fourth Quarter 2023 Financial
Summary
Quarter Ended December
31,
(Dollars in thousands, except per share
data)
2023
2022
% Inc (Dec)
Net sales
$191,077
$212,840
(10.2)%
Gross profit
$57,232
$65,074
(12.1)%
Gross margin
30.0%
30.6%
Operating income
$18,603
$17,022
9.3%
Net income
$12,539
$13,428
(6.6)%
Net income per diluted share
$0.34
$0.36
(5.6)%
Adjusted operating income
$15,893
$16,485
(3.6)%
Adjusted net income
$10,889
$11,797
(7.7)%
Adjusted earnings per diluted share
$0.29
$0.32
(9.4)%
Adjusted EBITDA
$21,775
$22,101
(1.5)%
Net sales were $191.1 million, a decrease of $21.8 million, or
10.2%, compared with $212.8 million for the fourth quarter of 2022.
The decrease was the result of lower volume/pricing in certain
targeted areas in the Material Handling segment and lower volume in
Distribution.
Gross profit decreased $7.8 million, or 12.1% to $57.2 million,
as the contribution from lower raw material costs was not enough to
offset lower volumes and pricing. Gross margin declined 60 basis
points to 30.0% compared with 30.6% for the fourth quarter of 2022.
Selling, general and administrative expenses decreased $8.7
million, or 18.3% to $38.7 million due to lower professional
services and incentive compensation. SG&A as a percentage of
sales decreased to 20.3%, compared with 22.3% in the same period
last year. Net income per diluted share was $0.34, compared with
$0.36 for the fourth quarter of 2022. Adjusted earnings per diluted
share were $0.29, compared with $0.32 for the fourth quarter of
2022.
Fourth Quarter 2023 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
Q4 2023 Results
$126.9
$29.9
23.6%
$28.4
22.4%
Q4 2022 Results
$142.2
$20.9
14.7%
$25.5
18.0%
$ Increase (decrease) vs prior year
($15.3)
$9.1
$2.9
% Increase (decrease) vs prior year
(10.8)%
43.5%
+890bps
11.2%
+440bps
Items in this table may not recalculate
due to rounding
Net sales for the Material Handling segment were $126.9 million,
a decrease of $15.3 million, or 10.8%, compared with $142.2 million
for the fourth quarter of 2022. Net sales decreased in the vehicle,
food & beverage and consumer end markets, with the greatest
reduction in demand for RV products, marine products, agriculture,
and fuel container products, due in part to a slower hurricane
season. Operating income increased 43.5% to $29.9 million, compared
with $20.9 million in the fourth quarter of 2022. Operating income
margin increased to 23.6% compared with 14.7% for the fourth
quarter of 2022. Adjusted EBITDA margin improved by 440 basis
points, primarily attributed to self-help initiatives, but
partially dampened by a decrease in sales volume and pricing.
Adjusted EBITDA increased 11.2% to $28.4 million, compared with
$25.5 million in the fourth quarter of 2022. SG&A expenses were
lower year-over-year, primarily due to a decrease in professional
services and an insurance recovery of legal fees.
Distribution
Net Sales
Op Income
Op Income Margin
Adj EBITDA
Adj EBITDA Margin
Q4 2023 Results
$64.2
$0.3
0.5%
$1.2
1.8%
Q4 2022 Results
$70.6
$3.4
4.8%
$5.0
7.0%
$ Increase (decrease) vs prior year
($6.4)
($3.1)
($3.8)
% Increase (decrease) vs prior year
(9.1)%
(90.0)%
-430bps
(76.4)%
-520bps
Items in this table may not recalculate
due to rounding
Net sales for the Distribution segment were $64.2 million, a
decrease of $6.4 million, or 9.1%, compared with $70.6 million for
the fourth quarter of 2022. Operating income decreased $3.1 million
to $0.3 million, compared with $3.4 million for the fourth quarter
of 2022. Adjusted EBITDA decreased 76.4% to $1.2 million, compared
with $5.0 million in the fourth quarter of 2022. The decrease in
operating income and adjusted EBITDA was primarily due to lower
volume and an unfavorable sale mix. The decrease in SG&A
expenses was primarily the result of lower incentive compensation.
The Distribution segment's operating income margin was 0.5%
compared with 4.8% for the fourth quarter of 2022. The Distribution
segment’s adjusted EBITDA margin was 1.8%, compared with 7.0% for
the fourth quarter of 2022. The Distribution Segment continues to
implement pricing actions to counter cost inflation and improve
margin.
Full Year 2023 Financial
Summary
Year Ended December
31,
(Dollars in thousands, except per share
data)
2023
2022
% Inc (Dec)
Net sales
$
813,067
$
899,547
(9.6
)%
Gross profit
$
259,086
$
283,366
(8.6
)%
Gross margin
31.9
%
31.5
%
Operating income
$
72,405
$
83,941
(13.7
)%
Net income
$
48,867
$
60,267
(18.9
)%
Net income per diluted share
$
1.32
$
1.64
(19.5
)%
Adjusted operating income
$
75,261
$
87,947
(14.4
)%
Adjusted net income
$
51,684
$
61,662
(16.2
)%
Adjusted earnings per diluted share
$
1.39
$
1.68
(17.3
)%
Adjusted EBITDA
$
98,047
$
109,163
(10.2
)%
Net sales for the full year of 2023 were $813.1 million, a
decrease of $86.5 million, or 9.6%, compared with $899.5 million
for the full year of 2022. The decrease was the result of lower
volume and pricing in certain areas in the Material Handling
segment, partially offset by higher sales in the Distribution
segment largely from incremental sales of $23.1 million from Mohawk
Rubber acquisition.
Gross profit decreased $24.3 million, or 8.6% to $259.1 million,
as the contribution from lower raw material costs was not enough to
offset lower volumes and pricing. Gross margin expanded 40 basis
points to 31.9% compared with 31.5% for the full year of 2022.
Selling, general and administrative expenses decreased $12.6
million, or 6.3% to $186.9 million due to lower incentive
compensation, commissions and facility costs. SG&A as a
percentage of sales increased to 23.0%, compared with 22.2% in the
same period last year. Net income per diluted share was $1.32,
compared with $1.64 for the full year of 2022. Adjusted earnings
per diluted share were $1.39, compared with $1.68 for the full year
of 2022.
Full Year 2023 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
Full Year 2023 Results
$555.3
$100.1
18.0%
$113.8
20.5%
Full Year 2022 Results
$647.6
$104.1
16.1%
$122.9
19.0%
$ Increase (decrease) vs prior year
($92.4)
($4.0)
($9.1)
% Increase (decrease) vs prior year
(14.3)%
(3.8)%
+190bps
(7.4)%
+150bps
Items in this table may not recalculate
due to rounding
Net sales for the Material Handling segment were $555.3 million,
a decrease of $92.4 million, or 14.3%, compared with $647.6 million
for the full year of 2022. Net sales decreased in the vehicle,
industrial, food & beverage and consumer end markets, with the
greatest reduction in demand for RV products, marine, construction
products, and fuel container products, due in part to a slower
hurricane season. Operating income decreased 3.8% to $100.1
million, compared with $104.1 million in the full year of 2022.
Operating income margin increased to 18.0% compared with 16.1% for
the full year of 2022. Adjusted EBITDA margin improved by 150 basis
points, primarily attributed to self-help initiatives, but
partially dampened by a decrease in sales volume. Adjusted EBITDA
decreased 7.4% to $113.8 million, compared with $122.9 million in
the full year of 2022. Lower sales volume and pricing more than
offset lower raw material costs. SG&A expenses were lower
year-over-year, primarily due to a decrease in professional
services and insurance recovery of legal fees.
Distribution
Net Sales
Op Income
Op Income Margin
Adj EBITDA
Adj EBITDA Margin
Full Year 2023 Results
$257.9
$11.0
4.3%
$15.9
6.2%
Full Year 2022 Results
$252.0
$15.9
6.3%
$19.7
7.8%
$ Increase (decrease) vs prior year
$5.9
($4.9)
($3.9)
% Increase (decrease) vs prior year
2.3%
(30.9)%
-200bps
(19.6)%
-160bps
Items in this table may not recalculate
due to rounding
Net sales for the Distribution segment were $257.9 million, an
increase of $5.9 million, or 2.3%, compared with $252.0 million for
the full year of 2022. Operating income decreased $4.9 million to
$11.0 million, compared with $15.9 million for the full year of
2022. Adjusted EBITDA decreased 19.6% to $15.9 million, compared
with $19.7 million in the full year of 2022. The decrease in
operating income and adjusted EBITDA was primarily due to lower
volume/mix and higher SG&A. The increase in SG&A expenses
was primarily the result of the Mohawk Rubber acquisition and
higher salaries. The Distribution segment's operating income margin
was 4.3% compared with 6.3% for the full year of 2022. The
Distribution segment’s adjusted EBITDA margin was 6.2%, compared
with 7.8% for the full year of 2022. The Distribution Segment
continues to implement pricing actions to counter cost inflation
and improve margin.
Balance Sheet & Cash
Flow
As of December 31, 2023, the Company’s cash on hand totaled
$30.3 million. Total debt as of December 31, 2023 was $67.2
million.
For the fourth quarter of 2023, cash flow provided by operations
was $15.4 million and free cash flow was $11.8 million, compared
with cash flow provided by operations of $21.9 million and free
cash flow of $15.2 million for the fourth quarter of 2022. For the
full year of 2023, cash flow provided by operations was $86.2
million and free cash flow was $63.3 million, compared with cash
flow provided by operations of $72.6 million and free cash flow of
$48.3 million for the full year of 2022. The increase in cash flow
was driven primarily by a decrease in working capital. Capital
expenditures for the fourth quarter of 2023 were $3.6 million,
compared with $6.7 million for the fourth quarter of 2022. Capital
expenditures for the full year of 2023 were $22.9 million, compared
with $24.3 million for the full year of 2022.
Closing of Previously Announced
Acquisition of Signature Systems
On February 8, 2024, the Company announced that it completed its
acquisition of Signature Systems (“Signature”), which was
previously announced on January 2, 2024.
The cash transaction of $350 million was funded through an
Amendment to Myers’ existing $250 million revolving credit facility
and a new $400 million 5-year senior secured term loan A facility.
The term loan A facility was upsized by $50.0 million since the
Signature Systems transaction was initially announced. As of
closing, the Company’s net leverage ratio was approximately 3.0x,
which is within management’s target range. Future financial results
of Signature Systems are expected to be disclosed within Myers’
Material Handling segment.
Chief Financial Officer Grant Fitz commented, “As a reminder,
this transaction is expected to be neutral to slightly dilutive to
US GAAP EPS in fiscal year 2024, but we anticipate Signature will
deliver earnings accretion of between $0.20 and $0.30 in 2025, and
between $0.40 and $0.50 in 2026, with the potential for additional
meaningful earnings accretion beyond 2026. We also expect
annualized run-rate operational and cost synergies of $8 million
will be fully captured by 2025,with additional synergies to be
realized once Signature has an opportunity to leverage the Myers
Business System. Finally, we remind investors that we anticipate
reducing our net leverage ratio below 2.0x within two years of
closing of this transaction, which would enable continued
acquisitive growth.
2024 Investor Day
The Company will host an Investor and Analyst Day on Tuesday,
March 19th, 2024 at The Harvard Club in New York City. The event
will feature a showcase of Myers’ diverse product portfolio and
will be accompanied by presentations from members of Myers’
executive management that will outline the Company’s long-term
strategy and outlook.
2024 Outlook
Based on current exchange rates, market outlook, and business
forecast, the Company provided the following outlook for fiscal
2024:
- Net sales growth of 15% - 20%
- Net income per diluted share in the range of $1.03 to
$1.23*
- Adjusted earnings per diluted share range of $1.30 to
$1.45*
- Capital expenditures to be in the range of $35 to $40
million
- Effective tax rate to approximate 25%
* Subject to completion of purchase accounting for the February
8, 2024 acquisition of Signature Systems, which could have positive
or negative impact on EPS metrics related to depreciation and
amortization.
We will continue to monitor market conditions and provide
updates as we progress throughout the year
Conference Call Details
The Company will host an earnings conference call and webcast
for investors and analysts on Tuesday, March 5, 2024, at 8:30 a.m.
EDT. 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=fc15d634&confId=59274
.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: (US Local) 1-929-458-6194 or
(US Toll-Free) 1-866-813-9403 Access Code: 269707.
Use of Non-GAAP Financial
Measures
The Company uses certain non-GAAP measures in this release.
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. 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 contains “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; impacts from the novel
coronavirus (“COVID-19”) pandemic; 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, 2022. 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
Year Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net sales
$
191,077
$
212,840
$
813,067
$
899,547
Cost of sales
133,845
147,766
553,981
616,181
Gross profit
57,232
65,074
259,086
283,366
Selling, general and administrative
expenses
38,746
47,423
186,876
199,489
(Gain) loss on disposal of fixed
assets
(117
)
26
(195
)
(667
)
Other (income) expenses
—
603
—
603
Operating income (loss)
18,603
17,022
72,405
83,941
Interest expense, net
1,374
1,654
6,349
5,731
Income (loss) before income
taxes
17,229
15,368
66,056
78,210
Income tax expense (benefit)
4,690
1,940
17,189
17,943
Net income (loss)
$
12,539
$
13,428
$
48,867
$
60,267
Net income (loss) per common
share:
Basic
$
0.34
$
0.37
$
1.33
$
1.66
Diluted
$
0.34
$
0.36
$
1.32
$
1.64
Weighted average common shares
outstanding:
Basic
36,840,253
36,495,362
36,744,560
36,411,389
Diluted
37,142,056
36,853,237
37,095,568
36,790,839
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
December 31, 2023
December 31, 2022
Assets
Current Assets
Cash
$
30,290
$
23,139
Trade accounts receivable, net
113,907
126,184
Other accounts receivable, net
14,726
7,532
Inventories, net
90,844
93,351
Other current assets
6,854
7,001
Total Current Assets
256,621
257,207
Property, plant, & equipment, net
107,933
101,566
Right of use asset - operating leases
27,989
28,908
Deferred income taxes
209
129
Other assets
148,879
154,824
Total Assets
$
541,631
$
542,634
Liabilities & Shareholders'
Equity
Current Liabilities
Accounts payable
$
79,050
$
73,536
Accrued expenses
53,523
57,531
Operating lease liability - short-term
5,943
6,177
Finance lease liability - short-term
593
518
Long-term debt - current portion
25,998
-
Total Current Liabilities
165,107
137,762
Long-term debt
31,989
93,962
Operating lease liability - long-term
22,352
22,786
Finance lease liability - long-term
8,615
8,919
Other liabilities
12,108
15,270
Deferred income taxes
8,660
7,508
Total Shareholders' Equity
292,800
256,427
Total Liabilities & Shareholders'
Equity
$
541,631
$
542,634
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Quarter Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Cash Flows From Operating
Activities
Net income
$
12,539
$
13,428
$
48,867
$
60,267
Adjustments to reconcile net income to net
cash provided by (used for) operating activities
Depreciation and amortization
5,882
5,616
22,786
21,216
Amortization of deferred financing
costs
79
78
313
441
Non-cash stock-based compensation
expense
1,593
2,268
6,671
7,436
(Gain) loss on disposal of fixed
assets
(117
)
26
(195
)
(667
)
Deferred taxes
1,039
2,072
1,039
2,072
Other
(1,529
)
1,228
944
1,520
Cash flows provided by (used for) working
capital
Accounts receivable - trade and other,
net
(11,108
)
(4,874
)
2,656
(23,625
)
Inventories
5,535
14,971
2,630
7,955
Prepaid expenses and other current
assets
2,204
3,503
151
(1,409
)
Accounts payable and accrued expenses
(717
)
(16,454
)
310
(2,585
)
Net cash provided by (used for) operating
activities
15,400
21,862
86,172
72,621
Cash Flows From Investing
Activities
Capital expenditures
(3,563
)
(6,677
)
(22,855
)
(24,292
)
Acquisition of business, net of cash
acquired
—
(3,373
)
(160
)
(27,626
)
Proceeds from sale of property, plant, and
equipment
116
12
258
1,537
Net cash provided by (used for) investing
activities
(3,447
)
(10,038
)
(22,757
)
(50,381
)
Cash Flows From Financing
Activities
Net borrowings (repayments) from revolving
credit facility
(2,000
)
(4,000
)
(36,000
)
3,000
Payments on finance lease
(139
)
(126
)
(542
)
(500
)
Cash dividends paid
(4,974
)
(4,925
)
(20,240
)
(19,797
)
Proceeds from issuance of common stock
390
261
2,338
2,320
Shares withheld for employee taxes on
equity awards
(17
)
(1
)
(2,072
)
(451
)
Deferred financing fees
—
(171
)
—
(889
)
Net cash provided by (used for) financing
activities
(6,740
)
(8,962
)
(56,516
)
(16,317
)
Foreign exchange rate effect on cash
309
(147
)
252
(439
)
Net increase (decrease) in cash
5,522
2,715
7,151
5,484
Beginning Cash
24,768
20,424
23,139
17,655
Ending Cash
$
30,290
$
23,139
$
30,290
$
23,139
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME
AND EBITDA (UNAUDITED)
(Dollars in thousands)
Quarter Ended December 31,
2023
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
126,918
$
64,182
$
191,100
$
(23
)
$
191,077
Net income
12,539
Net income margin
6.6
%
Gross profit
57,232
Add: Restructuring expenses and other
adjustments
240
Adjusted gross profit
57,472
Gross margin as adjusted
30.1
%
Operating income (loss)
29,931
339
30,270
(11,667
)
18,603
Operating income margin
23.6
%
0.5
%
15.8
%
n/a
9.7
%
Add: Restructuring expenses and other
adjustments
231
61
292
—
292
Add: Acquisition and integration costs
—
79
79
2,619
2,698
Less: Insurance recovery of legal
fees(3)
(6,700
)
—
(6,700
)
—
(6,700
)
Add: Environmental reserves, net(2)
—
—
—
1,000
1,000
Adjusted operating income (loss)(1)
23,462
479
23,941
(8,048
)
15,893
Adjusted operating income margin
18.5
%
0.7
%
12.5
%
n/a
8.3
%
Add: Depreciation and amortization
4,922
692
5,614
268
5,882
Adjusted EBITDA
$
28,384
$
1,171
$
29,555
$
(7,780
)
$
21,775
Adjusted EBITDA margin
22.4
%
1.8
%
15.5
%
n/a
11.4
%
(1) Includes gross profit adjustments of
$240 and SG&A adjustments of $(2,950)
(2) Includes environmental charges of
$2,700 net of probable insurance recoveries of $1,700
(3) Includes total insurance recovery of
$10,000 net of recoverable expenses incurred in the current year of
$3,300
Quarter Ended December 31,
2022
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
142,235
$
70,614
$
212,849
$
(9
)
$
212,840
Net income
13,428
Net income margin
6.3
%
Gross profit
65,074
Add: Restructuring expenses and other
adjustments
94
Adjusted gross profit
65,168
Gross margin as adjusted
30.6
%
Operating income (loss)
20,863
3,393
24,256
(7,234
)
17,022
Operating income margin
14.7
%
4.8
%
11.4
%
n/a
8.0
%
Add: Restructuring expenses and other
adjustments
94
—
94
—
94
Add: Acquisition and integration costs
—
106
106
60
166
Add: Impairment of investment in legacy
joint venture
—
603
603
—
603
Less: Environmental reserves, net(2)
—
—
—
(1,400
)
(1,400
)
Adjusted operating income (loss)(1)
20,957
4,102
25,059
(8,574
)
16,485
Adjusted operating income margin
14.7
%
5.8
%
11.8
%
n/a
7.7
%
Add: Depreciation and amortization
4,575
860
5,435
181
5,616
Adjusted EBITDA
$
25,532
$
4,962
$
30,494
$
(8,393
)
$
22,101
Adjusted EBITDA margin
18.0
%
7.0
%
14.3
%
n/a
10.4
%
(1) Includes gross profit adjustments of
$94 and SG&A adjustments of $(631)
(2) Includes environmental charges of
$4,600 net of probable insurance recoveries of $6,000
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME
AND EBITDA (UNAUDITED)
(Dollars in thousands)
Year Ended December 31,
2023
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
555,259
$
257,875
$
813,134
$
(67
)
$
813,067
Net income
48,867
Net income margin
6.0
%
Gross profit
259,086
Add: Restructuring expenses and other
adjustments
829
Adjusted gross profit
259,915
Gross margin as adjusted
32.0
%
Operating income (loss)
100,088
10,967
111,055
(38,650
)
72,405
Operating income margin
18.0
%
4.3
%
13.7
%
n/a
8.9
%
Add: Executive severance costs
—
410
410
289
699
Add: Restructuring expenses and other
adjustments
1,456
914
2,370
166
2,536
Add: Acquisition and integration costs
—
376
376
2,745
3,121
Less: Insurance recovery of legal
fees(3)
(6,700
)
—
(6,700
)
—
(6,700
)
Add: Environmental reserves, net(2)
—
—
—
3,200
3,200
Adjusted operating income (loss)(1)
94,844
12,667
107,511
(32,250
)
75,261
Adjusted operating income margin
17.1
%
4.9
%
13.2
%
n/a
9.3
%
Add: Depreciation and amortization
18,917
3,197
22,114
672
22,786
Adjusted EBITDA
$
113,761
$
15,864
$
129,625
$
(31,578
)
$
98,047
Adjusted EBITDA margin
20.5
%
6.2
%
15.9
%
n/a
12.1
%
(1) Includes gross profit adjustments of
$829 and SG&A adjustments of $2,027
(2) Includes environmental charges of
$6,500 net of probable insurance recoveries of $3,300
(3) Includes total insurance recovery of
$10,000 net of recoverable expenses incurred in the current period
of $3,300
Year Ended December 31,
2022
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
647,619
$
251,966
$
899,585
$
(38
)
$
899,547
Net income
60,267
Net income margin
6.7
%
Gross profit
283,366
Add: Restructuring expenses and other
adjustments
744
Adjusted gross profit
284,110
Gross margin as adjusted
31.6
%
Operating income (loss)
104,079
15,862
119,941
(36,000
)
83,941
Operating income margin
16.1
%
6.3
%
13.3
%
n/a
9.3
%
Add: Restructuring expenses and other
adjustments
744
—
744
—
744
Add: Acquisition and integration costs
—
377
377
621
998
Add: Loss on sale of assets
261
—
261
—
261
Add: Impairment of investment in legacy
joint venture
—
603
603
—
603
Add: Environmental reserves, net(2)
—
—
—
1,400
1,400
Adjusted operating income (loss)(1)
105,084
16,842
121,926
(33,979
)
87,947
Adjusted operating income margin
16.2
%
6.7
%
13.6
%
n/a
9.8
%
Add: Depreciation and amortization
17,814
2,889
20,703
513
21,216
Adjusted EBITDA
$
122,898
$
19,731
$
142,629
$
(33,466
)
$
109,163
Adjusted EBITDA margin
19.0
%
7.8
%
15.9
%
n/a
12.1
%
(1) Includes gross profit adjustments of
$744 and SG&A adjustments of $3,262
(2) Includes environmental charges of
$7,400 net of probable insurance recoveries of $6,000
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
ADJUSTED OPERATING INCOME,
ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)
(Dollars in thousands)
Quarter Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Adjusted operating income (loss)
reconciliation:
Operating income (loss)
$
18,603
$
17,022
$
72,405
$
83,941
Executive severance costs
—
—
699
—
Restructuring expenses and other
adjustments
292
94
2,536
744
Acquisition and integration costs
2,698
166
3,121
998
Insurance recovery of legal fees
(6,700
)
—
(6,700
)
—
Loss on sale of assets
—
—
—
261
Impairment of investment in legacy joint
venture
—
603
—
603
Environmental reserves, net
1,000
(1,400
)
3,200
1,400
Adjusted operating income (loss)
$
15,893
$
16,485
$
75,261
$
87,947
Adjusted EBITDA reconciliation:
Net income (loss)
$
12,539
$
13,428
$
48,867
$
60,267
Income tax expense (benefit)
4,690
1,940
17,189
17,943
Interest expense, net
1,374
1,654
6,349
5,731
Operating income (loss)
18,603
17,022
72,405
83,941
Depreciation and amortization
5,882
5,616
22,786
21,216
Executive severance costs
—
—
699
—
Restructuring expenses and other
adjustments
292
94
2,536
744
Acquisition and integration costs
2,698
166
3,121
998
Insurance recovery of legal fees
(6,700
)
—
(6,700
)
—
Loss on sale of assets
—
—
—
261
Impairment of investment in legacy joint
venture
—
603
—
603
Environmental reserves, net
1,000
(1,400
)
3,200
1,400
Adjusted EBITDA
$
21,775
$
22,101
$
98,047
$
109,163
Free cash flow reconciliation:
Net cash provided by (used for) operating
activities
$
15,400
$
21,862
$
86,172
$
72,621
Capital expenditures
(3,563
)
(6,677
)
(22,855
)
(24,292
)
Free cash flow
$
11,837
$
15,185
$
63,317
$
48,329
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 December
31,
Year Ended December
31,
2023
2022
2023
2022
Adjusted net income (loss)
reconciliation:
Net income (loss)
$
12,539
$
13,428
$
48,867
$
60,267
Income tax expense (benefit)
4,690
1,940
17,189
17,943
Income (loss) before income taxes
17,229
15,368
66,056
78,210
Executive severance costs
—
—
699
—
Restructuring expenses and other
adjustments
292
94
2,536
744
Acquisition and integration costs
2,698
166
3,121
998
Insurance recovery of legal fees
(6,700
)
—
(6,700
)
—
Loss on sale of assets
—
—
—
261
Impairment of investment in legacy joint
venture
—
603
—
603
Environmental reserves, net
1,000
(1,400
)
3,200
1,400
Adjusted income (loss) before income
taxes
14,519
14,831
68,912
82,216
Income tax expense, as adjusted (1)
(3,630
)
(3,034
)
(17,228
)
(20,554
)
Adjusted net income (loss)
$
10,889
$
11,797
$
51,684
$
61,662
Adjusted earnings per diluted share
reconciliation:
Net income (loss) per common diluted
share
$
0.34
$
0.36
$
1.32
$
1.64
Executive severance costs
—
—
0.02
—
Restructuring expenses and other
adjustments
0.00
0.00
0.06
0.02
Acquisition and integration costs
0.07
0.01
0.08
0.03
Insurance recovery of legal fees
(0.18
)
—
(0.18
)
—
Loss on sale of assets
—
—
—
0.01
Impairment of investment in legacy joint
venture
—
0.02
—
0.02
Environmental reserves, net
0.03
(0.04
)
0.09
0.04
Adjusted effective income tax rate
impact
0.03
(0.03
)
(0.00
)
(0.07
)
Adjusted earnings per diluted share(2)
$
0.29
$
0.32
$
1.39
$
1.68
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 2023
is 25% and in 2022 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
$
1.03
$
1.23
Add: Net restructuring expenses and other
adjustments
0.04
0.04
Add: Acquisition and integration costs
0.32
0.26
Less: Adjusted effective income tax rate
impact (1)
(0.09
)
(0.08
)
Adjusted earnings per diluted share
(2)
$
1.30
$
1.45
(1) Income taxes are calculated using the
normalized effective tax rate for each year. The rate used in 2024
is 25%.
(2) Adjusted earnings per diluted share is
calculated using the weighted average common shares
outstanding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305108379/en/
Meghan Beringer, Senior Director Investor Relations,
252-536-5651
Myers Industries (NYSE:MYE)
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