MYE Myers Industries Inc

Improved gross margins and adjusted EBITDA driven by strong performance of Signature Systems

Ongoing demand headwinds within certain end markets expected for the remainder of 2024

Continued focus on cost reduction; additional $15 million of annualized run rate cost savings targeted by 2025

Full-year guidance revised to $0.92 - $1.02 for adjusted earnings per share

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 third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

• Net sales of $205.1 million compared with $197.8 million in the prior-year period
• Net Income (loss) of $(10.9) million, compared to $12.7 million in the prior-year period inclusive of a non-cash goodwill impairment charge of $22.0 million
• Adjusted EBITDA of $30.7 million, compared to $25.6 million in the prior-year period
• GAAP gross margin of 31.8%, up 30 basis points versus the prior-year period
• Adjusted gross margin of 32.4%, up 70 basis points versus the prior-year period
• GAAP net income (loss) per diluted share of $(0.29) compared with $0.34 in the prior-year period
• Adjusted earnings per diluted share of $0.25 compared with $0.38 in the prior-year period
• Cash flow provided by operations of $17.3 million and free cash flow of $10.1 million
• Additional debt paydown of $13 million

Dave Basque, Myers Industries Interim President and CEO, commented “This quarter’s results were driven by continued strong performance from our Signature Systems acquisition, growth in our military end market, the initial benefits of our cost cutting initiatives and reduced variable compensation. These benefits mitigated some broader macro-economic challenges in the RV and Marine and new headwinds in the Food and Beverage end markets.

“During the quarter, we diligently focused on our cost containment actions which we now estimate will lead to an additional $15 million in annualized cost savings. These cost savings are incremental to our original target of $7 million to $9 million and are expected to be driven by labor savings, manufacturing efficiencies, continued footprint optimization and other savings initiatives. We will continue to implement cost actions to help mitigate the impact of revenue headwinds in key end markets.

“We have taken additional action to address the underperformance of our Distribution business, starting with naming Jeff Baker as President, Distribution. Since assuming this role on September 30, Jeff and his team have systematically identified plans to close sales coverage gaps and win back customers, add digital sales channels, improve the customer experience and implement further efficiency improvements.

“We are updating our outlook and expect full year adjusted earnings per share to be in the range of $0.92 to $1.02. We continue to have confidence in the growth and earnings potential of our four power brands as demand recovers in affected end markets, and we remain focused on improving operations in the near-term to navigate choppy macro-economic conditions.”

Third Quarter 2024 Financial Summary

 

 

Quarter Ended September 30,

 

(Dollars in thousands, except per share data)

 

2024

 

 

2023

 

 

% Inc (Dec)

 

Net sales

 

$

205,067

 

 

$

197,798

 

 

 

3.7

%

Gross profit

 

$

65,130

 

 

$

62,379

 

 

 

4.4

%

Gross margin

 

 

31.8

%

 

 

31.5

%

 

 

 

Operating income (loss)

 

$

(4,764

)

 

$

18,703

 

 

 

(125.5

)%

Net income (loss)

 

$

(10,878

)

 

$

12,747

 

 

 

(185.3

)%

Net income (loss) per diluted share

 

$

(0.29

)

 

$

0.34

 

 

 

(185.3

)%

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

$

20,539

 

 

$

20,039

 

 

 

2.5

%

Adjusted net income

 

$

9,212

 

 

$

13,875

 

 

 

(33.6

)%

Adjusted earnings per diluted share

 

$

0.25

 

 

$

0.38

 

 

 

(34.2

)%

Adjusted EBITDA

 

$

30,735

 

 

$

25,648

 

 

 

19.8

%

Net sales were $205.1 million, an increase of $7.3 million, or 3.7%, compared with $197.8 million for the third quarter of 2023. The increase in net sales was driven by contributions from the recent acquisition of Signature Systems, partially offset by lower volumes and pricing in both the Material Handling and Distribution segments.

Gross profit increased $2.8 million, or 4.4%, to $65.1 million, driven by performance at Signature Systems and favorable product mix, partially offset by lower pricing and volume, as well as higher material and other cost inflation. Gross margin improved 30 basis points to 31.8% compared with 31.5% for the third quarter of 2023. On an adjusted basis, gross margin increased 70 basis points to 32.4% from 31.7%. Selling, general and administrative expenses were $47.7 million, an increase of $4.0 million, primarily due to the addition of Signature and partially offset by lower incentive compensation expense. SG&A as a percent of sales was 23.3% vs 22.1% in the prior year in part due to the executive severance recorded in the quarter. The company also recorded a $22.0 million non-cash goodwill impairment charge related to goodwill from prior rotational molding acquisitions. Net income per diluted share was ($0.29), compared with $0.34 for the third quarter of 2023. Adjusted earnings per diluted share were $0.25, compared with $0.38 for the third quarter of 2023.

Third 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

Q3 2024 Results

$150.7

 

$0.9

 

0.6%

 

$33.5

 

22.2%

Q3 2023 Results

$132.5

 

$20.0

 

15.1%

 

$25.1

 

19.0%

$ Increase (decrease) vs prior year

$18.2

 

($19.1)

 

 

 

$8.3

 

 

% Increase (decrease) vs prior year

13.8%

 

(95.6)%

 

-1,450bps

 

33.0%

 

+320bps

Items in this table may not recalculate due to rounding

Net sales for the Material Handling segment were $150.7 million, an increase of $18.2 million, or 13.8%, compared with $132.5 million for the third quarter of 2023. Sales from the addition of Signature Systems were partly offset by sales declines, primarily in Seed boxes and within Food and Beverage end markets.

Operating income was $0.9 million compared with $20.0 million in the third quarter of 2023 primarily due to the non-cash goodwill impairment and the lower sales volume and pricing in the legacy business, partially offset by the Signature acquisition. Material Handling’s operating income margin of 0.6%, or 15.2% excluding the non-cash goodwill impairment, compared to 15.1% in the third quarter of 2023. Adjusted EBITDA increased 33.0% to $33.5 million, compared with $25.1 million in the third quarter of 2023. SG&A expenses increased year-over-year, primarily due to incremental SG&A from Signature, partly offset by lower incentive compensation. Adjusted EBITDA margin improved by 320 basis points, primarily attributed to the Signature acquisition, partially offset by higher material costs and lower sales volume and pricing in the legacy business. A $22.0 million non-cash goodwill impairment charge is included in the third quarter 2024 GAAP results of the Material Handling segment.

Distribution

 

Net Sales

 

Op Income

 

Op Income

Margin

 

Adj EBITDA

 

Adj

EBITDA

Margin

Q3 2024 Results

$54.4

 

$2.1

 

3.9%

 

$3.2

 

5.8%

Q3 2023 Results

$65.3

 

$5.0

 

7.6%

 

$6.6

 

10.1%

$ Increase (decrease) vs prior year

($11.0)

 

($2.9)

 

 

 

($3.4)

 

 

% Increase (decrease) vs prior year

(16.8)%

 

(57.3)%

 

-370bps

 

(51.8)%

 

-430bps

Items in this table may not recalculate due to rounding

Net sales for the Distribution segment were $54.4 million, a decrease of $11.0 million, or 16.8%, compared with $65.3 million for the third quarter of 2023. The decrease was primarily driven by lower volume and pricing, partially offset by improved SG&A costs.

Operating income decreased $2.9 million to $2.1 million, compared with $5.0 million for the third quarter of 2023. Adjusted EBITDA decreased to $3.2 million, compared with $6.6 million in the third quarter of 2023. The decrease in operating income and adjusted EBITDA was primarily due to lower volume and pricing, as well as higher material costs. SG&A expenses decreased year-over-year, primarily due to lower payroll costs. The Distribution segment's operating income margin was 3.9% compared with 7.6% for the third quarter of 2023. The Distribution segment’s adjusted EBITDA margin was 5.8%, compared with 10.1% for the third quarter of 2023.

Balance Sheet & Cash Flow

As of September 30, 2024, the Company’s cash on hand totaled $29.7 million. Total debt as of September 30, 2024, was $396.2 million. Under the terms of the Company’s loan agreement, its net leverage ratio was 2.7x and it had $239.4 million of availability under its revolving credit facility as of September 30, 2024. For the third quarter of 2024, cash flow provided by operations was $17.3 million and free cash flow was $10.1 million, compared with cash flow provided by operations of $22.1 million and free cash flow of $18.1 million for the third quarter of 2023. The decrease in free cash flow was driven primarily by the timing of disbursements. Capital expenditures for the third quarter of 2024 were $7.2 million compared with $4.1 million for the third 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 0% to 5% compared to prior guidance of 5% to 10%
• Net income per diluted share in the range of $0.11 to $0.21 compared to prior guidance of $0.76 to $0.91
• Adjusted earnings per diluted share in the range of $0.92 to $1.02 compared to prior guidance of $1.05 to $1.20
• Capital expenditures in the range of $28 million to $32 million compared to prior guidance 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 Monday, November 4, 2024, at 4:30 p.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=2acccce1&confId=72128. 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 and use access code 818386.

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

 

 

Nine Months Ended

 

 

 

September 30,

2024

 

 

September 30,

2023

 

 

September 30,

2024

 

 

September 30,

2023

 

Net sales

 

$

205,067

 

 

$

197,798

 

 

$

632,405

 

 

$

621,990

 

Cost of sales

 

 

139,937

 

 

 

135,419

 

 

 

427,489

 

 

 

420,136

 

Gross profit

 

 

65,130

 

 

 

62,379

 

 

 

204,916

 

 

 

201,854

 

Selling, general and administrative expenses

 

 

47,686

 

 

 

43,698

 

 

 

152,804

 

 

 

148,130

 

(Gain) loss on disposal of fixed assets

 

 

192

 

 

 

(22

)

 

 

253

 

 

 

(78

)

Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

Operating income (loss)

 

 

(4,764

)

 

 

18,703

 

 

 

29,843

 

 

 

53,802

 

Interest expense, net

 

 

8,091

 

 

 

1,539

 

 

 

23,176

 

 

 

4,975

 

Income (loss) before income taxes

 

 

(12,855

)

 

 

17,164

 

 

 

6,667

 

 

 

48,827

 

Income tax expense (benefit)

 

 

(1,977

)

 

 

4,417

 

 

 

3,763

 

 

 

12,499

 

Net income (loss)

 

$

(10,878

)

 

$

12,747

 

 

$

2,904

 

 

$

36,328

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.29

)

 

$

0.35

 

 

$

0.08

 

 

$

0.99

 

Diluted

 

$

(0.29

)

 

$

0.34

 

 

$

0.08

 

 

$

0.98

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

37,220,456

 

 

 

36,811,296

 

 

 

37,102,761

 

 

 

36,712,662

 

Diluted

 

 

37,220,456

 

 

 

36,979,880

 

 

 

37,250,512

 

 

 

36,972,384

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

September 30, 2024

 

December 31, 2023

 

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash

 

$

29,710

 

$

30,290

 

Trade accounts receivable, net

 

 

122,723

 

 

113,907

 

Other accounts receivable, net

 

 

8,495

 

 

14,726

 

Inventories, net

 

 

105,103

 

 

90,844

 

Other current assets

 

 

9,215

 

 

6,854

 

Total Current Assets

 

 

275,246

 

 

256,621

 

Property, plant, & equipment, net

 

 

134,641

 

 

107,933

 

Right of use asset - operating leases

 

 

30,550

 

 

27,989

 

Goodwill and intangible assets, net

 

 

450,967

 

 

140,521

 

Deferred income taxes

 

 

210

 

 

209

 

Other assets

 

 

13,385

 

 

8,358

 

Total Assets

 

$

904,999

 

$

541,631

 

Liabilities & Shareholders' Equity

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable

 

$

79,279

 

$

79,050

 

Accrued expenses

 

 

47,392

 

 

53,523

 

Operating lease liability - short-term

 

 

6,422

 

 

5,943

 

Finance lease liability - short-term

 

 

615

 

 

593

 

Long-term debt - current portion

 

 

19,624

 

 

25,998

 

Total Current Liabilities

 

 

153,332

 

 

165,107

 

Long-term debt

 

 

367,854

 

 

31,989

 

Operating lease liability - long-term

 

 

23,738

 

 

22,352

 

Finance lease liability - long-term

 

 

8,151

 

 

8,615

 

Other liabilities

 

 

19,079

 

 

12,108

 

Deferred income taxes

 

 

57,206

 

 

8,660

 

Total Shareholders' Equity

 

 

275,639

 

 

292,800

 

Total Liabilities & Shareholders' Equity

 

$

904,999

 

$

541,631

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,878

)

 

$

12,747

 

 

$

2,904

 

 

$

36,328

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,196

 

 

 

5,609

 

 

 

28,760

 

 

 

16,904

 

Amortization of deferred financing costs

 

 

543

 

 

 

78

 

 

 

1,318

 

 

 

234

 

Amortization of acquisition-related inventory step-up

 

 

—

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Non-cash stock-based compensation expense

 

 

190

 

 

 

686

 

 

 

737

 

 

 

5,078

 

(Gain) loss on disposal of fixed assets

 

 

192

 

 

 

(22

)

 

 

253

 

 

 

(78

)

Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

Other

 

 

386

 

 

 

(19

)

 

 

550

 

 

 

2,473

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable - trade and other, net

 

 

7,434

 

 

 

(1,332

)

 

 

15,646

 

 

 

13,764

 

Inventories

 

 

574

 

 

 

1,825

 

 

 

(1,385

)

 

 

(2,905

)

Prepaid expenses and other current assets

 

 

2,975

 

 

 

1,775

 

 

 

(1,668

)

 

 

(2,053

)

Accounts payable and accrued expenses

 

 

(16,301

)

 

 

787

 

 

 

(21,644

)

 

 

1,027

 

Net cash provided by (used for) operating activities

 

 

17,327

 

 

 

22,134

 

 

 

51,944

 

 

 

70,772

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(7,178

)

 

 

(4,076

)

 

 

(17,302

)

 

 

(19,292

)

Acquisition of business, net of cash acquired

 

 

—

 

 

 

—

 

 

 

(348,312

)

 

 

(160

)

Proceeds from sale of property, plant, and equipment

 

 

28

 

 

 

—

 

 

 

112

 

 

 

142

 

Net cash provided by (used for) investing activities

 

 

(7,150

)

 

 

(4,076

)

 

 

(365,502

)

 

 

(19,310

)

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) from revolving credit facility

 

 

(8,000

)

 

 

(19,000

)

 

 

(15,000

)

 

 

(34,000

)

Proceeds from Term Loan A

 

 

—

 

 

 

—

 

 

 

400,000

 

 

 

—

 

Repayments of Term Loan A

 

 

(5,000

)

 

 

—

 

 

 

(10,000

)

 

 

—

 

Repayments of senior unsecured notes

 

 

—

 

 

 

—

 

 

 

(38,000

)

 

 

—

 

Payments on finance lease

 

 

(150

)

 

 

(145

)

 

 

(442

)

 

 

(403

)

Cash dividends paid

 

 

(5,025

)

 

 

(4,970

)

 

 

(15,392

)

 

 

(15,266

)

Proceeds from issuance of common stock

 

 

295

 

 

 

379

 

 

 

3,053

 

 

 

1,948

 

Shares withheld for employee taxes on equity awards

 

 

(53

)

 

 

(22

)

 

 

(2,027

)

 

 

(2,055

)

Deferred financing fees

 

 

—

 

 

 

—

 

 

 

(9,172

)

 

 

—

 

Net cash provided by (used for) financing activities

 

 

(17,933

)

 

 

(23,758

)

 

 

313,020

 

 

 

(49,776

)

Foreign exchange rate effect on cash

 

 

121

 

 

 

(224

)

 

 

(42

)

 

 

(57

)

Net increase (decrease) in cash

 

 

(7,635

)

 

 

(5,924

)

 

 

(580

)

 

 

1,629

 

Beginning Cash

 

 

37,345

 

 

 

30,692

 

 

 

30,290

 

 

 

23,139

 

Ending Cash

 

$

29,710

 

 

$

24,768

 

 

$

29,710

 

 

$

24,768

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended September 30, 2024

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

150,718

 

 

$

54,384

 

 

$

205,102

 

 

$

(35

)

 

$

205,067

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,878

)

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-5.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65,130

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,211

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

66,341

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

886

 

 

 

2,131

 

 

 

3,017

 

 

 

(7,781

)

 

 

(4,764

)

Operating income margin

 

 

0.6

%

 

 

3.9

%

 

 

1.5

%

 

n/a

 

 

 

-2.3

%

Add: Executive severance costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,405

 

 

 

1,405

 

Add: Restructuring expenses and other adjustments

 

 

1,396

 

 

 

220

 

 

 

1,616

 

 

 

417

 

 

 

2,033

 

Add: Acquisition and integration costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

349

 

 

 

349

 

Add: Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

 

 

22,016

 

Less: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(500

)

 

 

(500

)

Adjusted operating income (loss)(1)

 

 

24,298

 

 

 

2,351

 

 

 

26,649

 

 

 

(6,110

)

 

 

20,539

 

Adjusted operating income margin

 

 

16.1

%

 

 

4.3

%

 

 

13.0

%

 

n/a

 

 

 

10.0

%

Add: Depreciation and amortization

 

 

9,158

 

 

 

823

 

 

 

9,981

 

 

 

215

 

 

 

10,196

 

Adjusted EBITDA

 

$

33,456

 

 

$

3,174

 

 

$

36,630

 

 

$

(5,895

)

 

$

30,735

 

Adjusted EBITDA margin

 

 

22.2

%

 

 

5.8

%

 

 

17.9

%

 

n/a

 

 

 

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gross profit adjustments of $1,211, impairment charges of $22,016 and SG&A adjustments of $2,076

 

(2) Includes environmental charges of $200 net of probable insurance recoveries of $700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2023

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

132,484

 

 

$

65,335

 

 

$

197,819

 

 

$

(21

)

 

$

197,798

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,747

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,379

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

307

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,686

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

19,978

 

 

 

4,993

 

 

 

24,971

 

 

 

(6,268

)

 

 

18,703

 

Operating income margin

 

 

15.1

%

 

 

7.6

%

 

 

12.6

%

 

n/a

 

 

 

9.5

%

Add: Restructuring expenses and other adjustments

 

 

529

 

 

 

674

 

 

 

1,203

 

 

 

156

 

 

 

1,359

 

Add: Acquisition and integration costs

 

 

—

 

 

 

77

 

 

 

77

 

 

 

—

 

 

 

77

 

Less: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(100

)

 

 

(100

)

Adjusted operating income (loss)(1)

 

 

20,507

 

 

 

5,744

 

 

 

26,251

 

 

 

(6,212

)

 

 

20,039

 

Adjusted operating income margin

 

 

15.5

%

 

 

8.8

%

 

 

13.3

%

 

n/a

 

 

 

10.1

%

Add: Depreciation and amortization

 

 

4,641

 

 

 

842

 

 

 

5,483

 

 

 

126

 

 

 

5,609

 

Adjusted EBITDA

 

$

25,148

 

 

$

6,586

 

 

$

31,734

 

 

$

(6,086

)

 

$

25,648

 

Adjusted EBITDA margin

 

 

19.0

%

 

 

10.1

%

 

 

16.0

%

 

n/a

 

 

 

13.0

%

 

 

(1) Includes gross profit adjustments of $307 and SG&A adjustments of $1,029

 

(2) Includes environmental charges of $300 net of probable insurance recoveries of $400

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

468,951

 

 

$

163,543

 

 

$

632,494

 

 

$

(89

)

 

$

632,405

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,904

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

204,916

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,163

 

Add: Acquisition-related inventory step-up

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,457

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

213,536

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

51,843

 

 

 

4,915

 

 

 

56,758

 

 

 

(26,915

)

 

 

29,843

 

Operating income margin

 

 

11.1

%

 

 

3.0

%

 

 

9.0

%

 

n/a

 

 

 

4.7

%

Add: Executive severance costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,405

 

 

 

1,405

 

Add: Restructuring expenses and other adjustments

 

 

3,860

 

 

 

975

 

 

 

4,835

 

 

 

417

 

 

 

5,252

 

Add: Acquisition and integration costs

 

 

305

 

 

 

—

 

 

 

305

 

 

 

4,132

 

 

 

4,437

 

Add: Acquisition-related inventory step-up

 

 

4,457

 

 

 

—

 

 

 

4,457

 

 

 

—

 

 

 

4,457

 

Add: Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

 

 

22,016

 

Less: Insurance recovery of legal fees

 

 

(702

)

 

 

—

 

 

 

(702

)

 

 

—

 

 

 

(702

)

Less: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(700

)

 

 

(700

)

Adjusted operating income (loss)(1)

 

 

81,779

 

 

 

5,890

 

 

 

87,669

 

 

 

(21,661

)

 

 

66,008

 

Adjusted operating income margin

 

 

17.4

%

 

 

3.6

%

 

 

13.9

%

 

n/a

 

 

 

10.4

%

Add: Depreciation and amortization

 

 

25,706

 

 

 

2,426

 

 

 

28,132

 

 

 

628

 

 

 

28,760

 

Adjusted EBITDA

 

$

107,485

 

 

$

8,316

 

 

$

115,801

 

 

$

(21,033

)

 

$

94,768

 

Adjusted EBITDA margin

 

 

22.9

%

 

 

5.1

%

 

 

18.3

%

 

n/a

 

 

 

15.0

%

 

 

(1) Includes gross profit adjustments of $8,620, impairment charges of $22,016 and SG&A adjustments of $5,529

 

(2) Includes environmental charges of $1,000 net of probable insurance recoveries of $1,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

428,341

 

 

$

193,693

 

 

$

622,034

 

 

$

(44

)

 

$

621,990

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,328

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

201,854

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

589

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

202,443

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

70,157

 

 

 

10,628

 

 

 

80,785

 

 

 

(26,983

)

 

 

53,802

 

Operating income margin

 

 

16.4

%

 

 

5.5

%

 

 

13.0

%

 

n/a

 

 

 

8.6

%

Add: Restructuring expenses and other adjustments

 

 

1,225

 

 

 

853

 

 

 

2,078

 

 

 

166

 

 

 

2,244

 

Add: Acquisition and integration costs

 

 

—

 

 

 

297

 

 

 

297

 

 

 

126

 

 

 

423

 

Add: Executive severance costs

 

 

—

 

 

 

410

 

 

 

410

 

 

 

289

 

 

 

699

 

Add: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,200

 

 

 

2,200

 

Adjusted operating income (loss)(1)

 

 

71,382

 

 

 

12,188

 

 

 

83,570

 

 

 

(24,202

)

 

 

59,368

 

Adjusted operating income margin

 

 

16.7

%

 

 

6.3

%

 

 

13.4

%

 

n/a

 

 

 

9.5

%

Add: Depreciation and amortization

 

 

13,995

 

 

 

2,505

 

 

 

16,500

 

 

 

404

 

 

 

16,904

 

Adjusted EBITDA

 

$

85,377

 

 

$

14,693

 

 

$

100,070

 

 

$

(23,798

)

 

$

76,272

 

Adjusted EBITDA margin

 

 

19.9

%

 

 

7.6

%

 

 

16.1

%

 

n/a

 

 

 

12.3

%

 

 

(1) Includes gross profit adjustments of $589 and SG&A adjustments of $4,977

 

(2) Includes environmental charges of $3,800 net of probable insurance recoveries of $1,600

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

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

(Dollars in thousands)

 

 

 

Quarter Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Adjusted operating income (loss) reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(4,764

)

 

$

18,703

 

 

$

29,843

 

 

$

53,802

 

Restructuring expenses and other adjustments

 

 

2,033

 

 

 

1,359

 

 

 

5,252

 

 

 

2,244

 

Acquisition and integration costs

 

 

349

 

 

 

77

 

 

 

4,437

 

 

 

423

 

Acquisition-related inventory step-up

 

 

—

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(702

)

 

 

—

 

Executive severance costs

 

 

1,405

 

 

 

—

 

 

 

1,405

 

 

 

699

 

Environmental reserves, net

 

 

(500

)

 

 

(100

)

 

 

(700

)

 

 

2,200

 

Adjusted operating income (loss)

 

$

20,539

 

 

$

20,039

 

 

$

66,008

 

 

$

59,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,878

)

 

$

12,747

 

 

$

2,904

 

 

$

36,328

 

Income tax expense (benefit)

 

 

(1,977

)

 

 

4,417

 

 

 

3,763

 

 

 

12,499

 

Interest expense, net

 

 

8,091

 

 

 

1,539

 

 

 

23,176

 

 

 

4,975

 

Operating income (loss)

 

 

(4,764

)

 

 

18,703

 

 

 

29,843

 

 

 

53,802

 

Depreciation and amortization

 

 

10,196

 

 

 

5,609

 

 

 

28,760

 

 

 

16,904

 

Restructuring expenses and other adjustments

 

 

2,033

 

 

 

1,359

 

 

 

5,252

 

 

 

2,244

 

Acquisition and integration costs

 

 

349

 

 

 

77

 

 

 

4,437

 

 

 

423

 

Acquisition-related inventory step-up

 

 

—

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(702

)

 

 

—

 

Executive severance costs

 

 

1,405

 

 

 

—

 

 

 

1,405

 

 

 

699

 

Environmental reserves, net

 

 

(500

)

 

 

(100

)

 

 

(700

)

 

 

2,200

 

Adjusted EBITDA

 

$

30,735

 

 

$

25,648

 

 

$

94,768

 

 

$

76,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

17,327

 

 

$

22,134

 

 

$

51,944

 

 

$

70,772

 

Capital expenditures

 

 

(7,178

)

 

 

(4,076

)

 

 

(17,302

)

 

 

(19,292

)

Free cash flow

 

$

10,149

 

 

$

18,058

 

 

$

34,642

 

 

$

51,480

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Adjusted net income (loss) reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,878

)

 

$

12,747

 

 

$

2,904

 

 

$

36,328

 

Income tax expense (benefit)

 

 

(1,977

)

 

 

4,417

 

 

 

3,763

 

 

 

12,499

 

Income (loss) before income taxes

 

 

(12,855

)

 

 

17,164

 

 

 

6,667

 

 

 

48,827

 

Restructuring expenses and other adjustments

 

 

2,033

 

 

 

1,359

 

 

 

5,252

 

 

 

2,244

 

Acquisition and integration costs

 

 

349

 

 

 

77

 

 

 

4,437

 

 

 

423

 

Acquisition-related inventory step-up

 

 

—

 

 

 

—

 

 

 

4,457

 

 

 

—

 

Impairment charges

 

 

22,016

 

 

 

—

 

 

 

22,016

 

 

 

—

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(702

)

 

 

—

 

Executive severance costs

 

 

1,405

 

 

 

—

 

 

 

1,405

 

 

 

699

 

Environmental reserves, net

 

 

(500

)

 

 

(100

)

 

 

(700

)

 

 

2,200

 

Adjusted income (loss) before income taxes

 

 

12,448

 

 

 

18,500

 

 

 

42,832

 

 

 

54,393

 

Income tax expense, as adjusted (1)

 

 

(3,236

)

 

 

(4,625

)

 

 

(11,136

)

 

 

(13,598

)

Adjusted net income (loss)

 

$

9,212

 

 

$

13,875

 

 

$

31,696

 

 

$

40,795

 

 

Adjusted earnings per diluted share reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common diluted share

 

$

(0.29

)

 

$

0.34

 

 

$

0.08

 

 

$

0.98

 

Restructuring expenses and other adjustments

 

 

0.05

 

 

 

0.04

 

 

 

0.14

 

 

 

0.06

 

Acquisition and integration costs

 

 

0.01

 

 

 

0.00

 

 

 

0.12

 

 

 

0.01

 

Acquisition-related inventory step-up

 

 

—

 

 

 

—

 

 

 

0.12

 

 

 

—

 

Impairment charges

 

 

0.59

 

 

 

—

 

 

 

0.59

 

 

 

—

 

Insurance recovery of legal fees

 

 

—

 

 

 

—

 

 

 

(0.02

)

 

 

—

 

Executive severance costs

 

 

0.04

 

 

 

—

 

 

 

0.04

 

 

 

0.02

 

Environmental reserves, net

 

 

(0.01

)

 

 

(0.00

)

 

 

(0.02

)

 

 

0.06

 

Adjusted effective income tax rate impact

 

 

(0.14

)

 

 

(0.01

)

 

 

(0.20

)

 

 

(0.03

)

Adjusted earnings per diluted share(2)

 

$

0.25

 

 

$

0.38

 

 

$

0.85

 

 

$

1.10

 

 

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

$

0.11

 

 

$

0.21

 

Add: Net restructuring expenses and other adjustments

 

0.21

 

 

 

0.21

 

Add: Acquisition and integration costs (3)

 

0.25

 

 

 

0.25

 

Add: Impairment charges

 

0.59

 

 

 

0.59

 

Add: Executive severance

 

0.04

 

 

 

0.04

 

Less: Insurance recovery of legal fees

 

(0.02

)

 

 

(0.02

)

Less: Environmental reserves, net

 

(0.02

)

 

 

(0.02

)

Less: Adjusted effective income tax rate impact (1)

 

(0.24

)

 

 

(0.24

)

Adjusted earnings per diluted share (2)

$

0.92

 

 

$

1.02

 

 

 

 

 

 

 

(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/20241104971000/en/

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