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
Myers Industries (NYSE:MYE)
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