MYE 8-K
Myers Industries Inc (MYE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 1, 2023, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the third quarter ended September 30, 2023. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, a copy of the presentation which will be discussed during the Company’s earnings conference call at 8:30 a.m. Eastern Time on November 1, 2023, is available on the Investor Relations section of the Company’s website at www.myersindustries.com. Information about the Company’s earnings conference call can be found in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”), except as may be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
As described in “Item 2.02 Results of Operations and Financial Condition” above, on November 1, 2023, the Company issued a press release announcing earnings results for the third quarter ended September 30, 2023. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, a copy of the presentation which will be discussed during the Company’s earnings conference call at 8:30 a.m. Eastern Time on November 1, 2023, is available on the Investor Relations section of the Company’s website at www.myersindustries.com. Information about the Company’s earnings conference call can be found in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Myers Industries, Inc. |
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By: |
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/s/ Grant E. Fitz |
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Grant E. Fitz |
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Executive Vice President and Chief Financial Officer |
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Date: November 1, 2023 |
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Exhibit 99.1
Myers Industries Announces Third Quarter 2023 Results
Further Implementation of Myers Business System Supports Gross Margin Expansion
Improving Balance Sheet Strength with Additional Debt Reduction
November 1, 2023, Akron, Ohio - 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 third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights
Myers Industries’ President and CEO Mike McGaugh said "In the third quarter, we continue to see the real value of the Myers Business System in driving strong business results, in-spite of continued significant revenue headwinds in several of our key markets. We are managing our business well, as we expanded year-over-year adjusted gross margin for the seventh consecutive quarter while also expanding adjusted EBITDA margin and generating healthy cash flows. These results are strong indications that our Myers Business System and our other self-help initiatives continue to deliver solid results. During the period we saw weakness within our consumer-facing verticals and a less active hurricane season year over year, both of which adversely affected our Material Handling segment. Our Distribution segment posted improved profitability and remains well positioned to capitalize on anticipated longer-term market tailwinds in the tire repair industry. We are keenly focused on protecting profitability by improving our cost structures across both segments as we continue to make investments for the future. We are optimizing our plants in aligning capacity to consistently match production levels, controlling costs, and driving new commercial excellence programs. Through these dedicated efforts, we lessened the total impact of current headwinds, allowing for the Company to continue progressing against its long-term strategic and financial objectives."
McGaugh continued “During the quarter, we generated elevated levels of free cash flow, which allowed us to further strengthen our balance sheet and pay down debt. We will continue to evaluate a number of opportunities within our M&A pipeline and will opportunistically deploy capital towards attractive growth opportunities when they make strategic sense. We look forward to driving future shareholder value through strong execution against our long-term growth strategy and by maintaining strong profitability through all economic conditions.”
1
Third Quarter 2023 Financial Summary
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Quarter Ended September 30, |
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(Dollars in thousands, except per share data) |
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2023 |
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2022 |
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% Inc |
Net sales |
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$197,798 |
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$228,065 |
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(13.3)% |
Gross profit |
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$62,379 |
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$71,648 |
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(12.9)% |
Gross margin |
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31.5% |
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31.4% |
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Operating income |
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$18,703 |
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$19,897 |
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(6.0)% |
Net income |
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$12,747 |
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$13,671 |
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(6.8)% |
Net income per diluted share |
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$0.34 |
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$0.37 |
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(8.1)% |
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Adjusted operating income |
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$20,039 |
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$22,013 |
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(9.0)% |
Adjusted net income |
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$13,875 |
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$15,018 |
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(7.6)% |
Adjusted earnings per diluted share |
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$0.38 |
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$0.41 |
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(7.3)% |
Adjusted EBITDA |
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$25,648 |
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$27,172 |
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(5.6)% |
Net sales were $197.8 million, a decrease of $30.3 million, or 13.3%, compared with $228.1 million for the third quarter of 2022. The decrease was the result of lower volume/mix and lower pricing in certain targeted areas in the Material Handling segment.
Gross profit decreased $9.3 million, or 12.9% to $62.4 million, as the contribution from lower raw material costs was not enough to offset lower volumes and pricing. Gross margin expanded 10 basis points to 31.5% compared with 31.4% for the third quarter of 2022. Selling, general and administrative expenses decreased $8.1 million, or 15.6% to $43.7 million due to lower incentive compensation and facility costs. SG&A as a percentage of sales decreased to 22.1%, compared with 22.7% in the same period last year. Net income per diluted share was $0.34, compared with $0.37 for the third quarter of 2022. Adjusted earnings per diluted share were $0.38, compared with $0.41 for the third quarter of 2022.
Third Quarter 2023 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
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Net Sales |
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Op Income |
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Op Income Margin |
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Adj EBITDA |
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Adj EBITDA Margin |
Q3 2023 Results |
$132.5 |
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$20.0 |
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15.1% |
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$25.1 |
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19.0% |
Q3 2022 Results |
$155.7 |
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$24.0 |
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15.4% |
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$28.4 |
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18.3% |
$ Increase (decrease) vs prior year |
($23.2) |
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($4.0) |
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($3.3) |
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% Increase (decrease) vs prior year |
(14.9)% |
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(16.6)% |
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-30 bps |
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(11.6)% |
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+70 bps |
Items in this table may not recalculate due to rounding
Net sales for the Material Handling segment were $132.5 million, a decrease of $23.2 million, or 14.9%, compared with $155.7 million for the third quarter of 2022. Net sales decreased in the vehicle, industrial, food & beverage and consumer end markets, with the greatest reduction in demand for RV products, construction products, and fuel container products, due in part to a slower hurricane season. Operating income decreased 16.6% to $20.0 million, compared with $24.0 million in the third quarter of 2022. Operating income margin decreased to 15.1% compared with 15.4% for the third quarter of 2022. Adjusted EBITDA margin improved by 70 basis points, primarily attributed to self-help initiatives, but partially dampened by a decrease in sales volume. Adjusted EBITDA decreased 11.6% to $25.1 million, compared with $28.4 million in the third quarter of 2022. Lower sales volume, pricing and an unfavorable mix more than offset lower raw material costs. SG&A expenses were lower year-over-year, primarily due to a decrease in facility costs and lower incentive compensation.
2
Distribution
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Net Sales |
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Op Income |
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Op Income Margin |
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Adj EBITDA |
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Adj EBITDA Margin |
Q3 2023 Results |
$65.3 |
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$5.0 |
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7.6% |
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$6.6 |
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10.1% |
Q3 2022 Results |
$72.4 |
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$4.9 |
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6.8% |
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$6.0 |
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8.3% |
$ Increase (decrease) vs prior year |
($7.1) |
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$0.1 |
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$0.6 |
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% Increase (decrease) vs prior year |
(9.8)% |
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1.9% |
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+80 bps |
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9.4% |
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+180 bps |
Items in this table may not recalculate due to rounding
Net sales for the Distribution segment were $65.3 million, a decrease of $7.1 million, or 9.8%, compared with $72.4 million for the third quarter of 2022. Operating income increased $0.1 million to $5.0 million, compared with $4.9 million for the third quarter of 2022. Adjusted EBITDA increased 9.4% to $6.6 million, compared with $6.0 million in the third quarter of 2022. The increase in operating income and adjusted EBITDA was primarily due to an increase in prices and lower product costs. The decrease in SG&A expenses was primarily the result of lower incentive compensation. The Distribution segment's operating income margin was 7.6% compared with 6.8% for the third quarter of 2022. The Distribution segment’s adjusted EBITDA margin was 10.1%, compared with 8.3% for the third quarter of 2022. The Distribution Segment continues to implement pricing actions to counter cost inflation and improve margin.
Balance Sheet & Cash Flow
As of September 30, 2023, the Company’s cash on hand totaled $24.8 million. Total debt as of September 30, 2023 was $69.3 million.
For the third quarter of 2023, cash flow provided by operations was $22.1 million and free cash flow was $18.1 million, compared with cash flow provided by operations of $16.5 million and free cash flow of $9.8 million for the third quarter of 2022. The increase in cash flow was driven primarily by a decrease in working capital. Capital expenditures for the third quarter of 2023 were $4.1 million, compared with $6.7 million for the third quarter of 2022.
2023 Outlook
Based on current exchange rates, market outlook, and business forecast, the Company revised its outlook for fiscal 2023, and currently forecasts:
3
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, November 1, 2023, 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=3cf4c0ee&confId=53778 . 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.
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.
Contact: Rich Pasela, Manager, Investor Relations and Treasury, 330-761-6284
M-INV
Source: Myers Industries, Inc.
4
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except share and per share data)
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Quarter Ended |
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Nine Months Ended |
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September 30, 2023 |
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September 30, 2022 |
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September 30, 2023 |
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September 30, 2022 |
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Net sales |
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$ |
197,798 |
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$ |
228,065 |
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$ |
621,990 |
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$ |
686,707 |
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Cost of sales |
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135,419 |
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156,417 |
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420,136 |
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468,415 |
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Gross profit |
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62,379 |
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71,648 |
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201,854 |
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218,292 |
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Selling, general and administrative expenses |
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43,698 |
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51,756 |
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148,130 |
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152,066 |
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(Gain) loss on disposal of fixed assets |
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(22 |
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(5 |
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(78 |
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(693 |
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Operating income (loss) |
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18,703 |
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19,897 |
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53,802 |
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66,919 |
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Interest expense, net |
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1,539 |
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1,719 |
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4,975 |
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4,077 |
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Income (loss) before income taxes |
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17,164 |
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18,178 |
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48,827 |
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62,842 |
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Income tax expense (benefit) |
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4,417 |
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4,507 |
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12,499 |
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16,003 |
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Net income (loss) |
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$ |
12,747 |
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$ |
13,671 |
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$ |
36,328 |
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$ |
46,839 |
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Net income (loss) per common share: |
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Basic |
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$ |
0.35 |
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$ |
0.37 |
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$ |
0.99 |
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$ |
1.29 |
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Diluted |
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$ |
0.34 |
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$ |
0.37 |
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$ |
0.98 |
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$ |
1.28 |
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Weighted average common shares outstanding: |
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Basic |
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36,811,296 |
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36,472,378 |
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36,712,662 |
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36,383,398 |
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Diluted |
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36,979,880 |
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36,717,153 |
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36,972,384 |
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36,678,955 |
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5
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
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September 30, 2023 |
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December 31, 2022 |
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Assets |
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Current Assets |
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Cash |
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$ |
24,768 |
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$ |
23,139 |
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Accounts receivable, net |
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117,362 |
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133,716 |
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Inventories, net |
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96,230 |
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93,351 |
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Other current assets |
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9,051 |
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7,001 |
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Total Current Assets |
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247,411 |
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257,207 |
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Property, plant, & equipment, net |
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106,936 |
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101,566 |
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Right of use asset - operating leases |
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27,384 |
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28,908 |
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Deferred income taxes |
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129 |
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129 |
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Other assets |
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149,261 |
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154,824 |
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Total Assets |
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$ |
531,121 |
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$ |
542,634 |
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Liabilities & Shareholders' Equity |
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Current Liabilities |
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Accounts payable |
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$ |
80,760 |
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$ |
73,536 |
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Accrued expenses |
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50,940 |
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57,531 |
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Operating lease liability - short-term |
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5,604 |
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6,177 |
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Finance lease liability - short-term |
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581 |
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518 |
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Long-term debt - current portion |
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25,994 |
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— |
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Total Current Liabilities |
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163,879 |
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137,762 |
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Long-term debt |
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33,987 |
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93,962 |
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Operating lease liability - long-term |
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22,023 |
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22,786 |
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Finance lease liability - long-term |
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8,766 |
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8,919 |
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Other liabilities |
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10,284 |
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15,270 |
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Deferred income taxes |
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9,961 |
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7,508 |
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Total Shareholders' Equity |
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282,221 |
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256,427 |
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Total Liabilities & Shareholders' Equity |
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$ |
531,121 |
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$ |
542,634 |
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6
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
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Quarter Ended September 30, |
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Nine Months Ended September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Cash Flows From Operating Activities |
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Net income |
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$ |
12,747 |
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$ |
13,671 |
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$ |
36,328 |
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$ |
46,839 |
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Adjustments to reconcile net income to net cash |
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Depreciation and amortization |
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5,609 |
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5,159 |
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16,904 |
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15,600 |
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Amortization of deferred financing costs |
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78 |
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121 |
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234 |
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363 |
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Non-cash stock-based compensation expense |
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686 |
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1,308 |
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5,078 |
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5,168 |
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(Gain) loss on disposal of fixed assets |
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(22 |
) |
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(5 |
) |
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(78 |
) |
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(693 |
) |
Other |
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(19 |
) |
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(406 |
) |
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2,473 |
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292 |
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Cash flows provided by (used for) working capital |
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Accounts receivable |
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(1,332 |
) |
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2,449 |
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13,764 |
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(18,751 |
) |
Inventories |
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1,825 |
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243 |
|
|
|
(2,905 |
) |
|
|
(7,016 |
) |
Prepaid expenses and other current assets |
|
|
1,775 |
|
|
|
790 |
|
|
|
(2,053 |
) |
|
|
(4,912 |
) |
Accounts payable and accrued expenses |
|
|
787 |
|
|
|
(6,870 |
) |
|
|
1,027 |
|
|
|
13,869 |
|
Net cash provided by (used for) operating activities |
|
|
22,134 |
|
|
|
16,460 |
|
|
|
70,772 |
|
|
|
50,759 |
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(4,076 |
) |
|
|
(6,672 |
) |
|
|
(19,292 |
) |
|
|
(17,615 |
) |
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(160 |
) |
|
|
(24,253 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
— |
|
|
|
26 |
|
|
|
142 |
|
|
|
1,525 |
|
Net cash provided by (used for) investing activities |
|
|
(4,076 |
) |
|
|
(6,646 |
) |
|
|
(19,310 |
) |
|
|
(40,343 |
) |
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net borrowings (repayments) from revolving credit facility |
|
|
(19,000 |
) |
|
|
(6,000 |
) |
|
|
(34,000 |
) |
|
|
7,000 |
|
Payments on finance lease |
|
|
(145 |
) |
|
|
(125 |
) |
|
|
(403 |
) |
|
|
(374 |
) |
Cash dividends paid |
|
|
(4,970 |
) |
|
|
(4,938 |
) |
|
|
(15,266 |
) |
|
|
(14,872 |
) |
Proceeds from issuance of common stock |
|
|
379 |
|
|
|
221 |
|
|
|
1,948 |
|
|
|
2,059 |
|
Shares withheld for employee taxes on equity awards |
|
|
(22 |
) |
|
|
(103 |
) |
|
|
(2,055 |
) |
|
|
(450 |
) |
Deferred financing fees |
|
|
— |
|
|
|
(718 |
) |
|
|
— |
|
|
|
(718 |
) |
Net cash provided by (used for) financing activities |
|
|
(23,758 |
) |
|
|
(11,663 |
) |
|
|
(49,776 |
) |
|
|
(7,355 |
) |
Foreign exchange rate effect on cash |
|
|
(224 |
) |
|
|
(161 |
) |
|
|
(57 |
) |
|
|
(292 |
) |
Net increase (decrease) in cash |
|
|
(5,924 |
) |
|
|
(2,010 |
) |
|
|
1,629 |
|
|
|
2,769 |
|
Beginning Cash |
|
|
30,692 |
|
|
|
22,434 |
|
|
|
23,139 |
|
|
|
17,655 |
|
Ending Cash |
|
$ |
24,768 |
|
|
$ |
20,424 |
|
|
$ |
24,768 |
|
|
$ |
20,424 |
|
7
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter Ended September 30, 2022 |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
155,658 |
|
|
$ |
72,416 |
|
|
$ |
228,074 |
|
|
$ |
(9 |
) |
|
$ |
228,065 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,671 |
|
||||
Net income margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71,648 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
260 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71,908 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.5 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
23,962 |
|
|
|
4,899 |
|
|
|
28,861 |
|
|
|
(8,964 |
) |
|
|
19,897 |
|
Operating income margin |
|
|
15.4 |
% |
|
|
6.8 |
% |
|
|
12.7 |
% |
|
n/a |
|
|
|
8.7 |
% |
|
Add: Restructuring expenses and other adjustments |
|
|
260 |
|
|
|
— |
|
|
|
260 |
|
|
|
— |
|
|
|
260 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
271 |
|
|
|
271 |
|
|
|
85 |
|
|
|
356 |
|
Add: Environmental reserves, net(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,500 |
|
|
|
1,500 |
|
Adjusted operating income (loss)(1) |
|
|
24,222 |
|
|
|
5,170 |
|
|
|
29,392 |
|
|
|
(7,379 |
) |
|
|
22,013 |
|
Adjusted operating income margin |
|
|
15.6 |
% |
|
|
7.1 |
% |
|
|
12.9 |
% |
|
n/a |
|
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Add: Depreciation and amortization |
|
|
4,215 |
|
|
|
851 |
|
|
|
5,066 |
|
|
|
93 |
|
|
|
5,159 |
|
Adjusted EBITDA |
|
$ |
28,437 |
|
|
$ |
6,021 |
|
|
$ |
34,458 |
|
|
$ |
(7,286 |
) |
|
$ |
27,172 |
|
Adjusted EBITDA margin |
|
|
18.3 |
% |
|
|
8.3 |
% |
|
|
15.1 |
% |
|
n/a |
|
|
|
11.9 |
% |
|
|
|
|||||||||||||||||||
(1) Includes gross profit adjustments of $260 and SG&A adjustments of $1,856 |
|
|||||||||||||||||||
(2) Includes environmental charges of $1,500 net of probable insurance recoveries of $0 |
|
|||||||||||||||||||
8
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: Executive severance costs |
|
|
— |
|
|
|
410 |
|
|
|
410 |
|
|
|
289 |
|
|
|
699 |
|
Add: Restructuring expenses and other adjustments |
|
|
1,225 |
|
|
|
853 |
|
|
|
2,078 |
|
|
|
166 |
|
|
|
2,244 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
297 |
|
|
|
297 |
|
|
|
126 |
|
|
|
423 |
|
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 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Nine Months Ended September 30, 2022 |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
505,384 |
|
|
$ |
181,352 |
|
|
$ |
686,736 |
|
|
$ |
(29 |
) |
|
$ |
686,707 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,839 |
|
||||
Net income margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
218,292 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
650 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
218,942 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.9 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
83,216 |
|
|
|
12,469 |
|
|
|
95,685 |
|
|
|
(28,766 |
) |
|
|
66,919 |
|
Operating income margin |
|
|
16.5 |
% |
|
|
6.9 |
% |
|
|
13.9 |
% |
|
n/a |
|
|
|
9.7 |
% |
|
Add: Restructuring expenses and other adjustments |
|
|
650 |
|
|
|
— |
|
|
|
650 |
|
|
|
— |
|
|
|
650 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
271 |
|
|
|
271 |
|
|
|
561 |
|
|
|
832 |
|
Add: Loss on sale of assets |
|
|
261 |
|
|
|
— |
|
|
|
261 |
|
|
|
— |
|
|
|
261 |
|
Add: Environmental reserves, net(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,800 |
|
|
|
2,800 |
|
Adjusted operating income (loss)(1) |
|
|
84,127 |
|
|
|
12,740 |
|
|
|
96,867 |
|
|
|
(25,405 |
) |
|
|
71,462 |
|
Adjusted operating income margin |
|
|
16.6 |
% |
|
|
7.0 |
% |
|
|
14.1 |
% |
|
n/a |
|
|
|
10.4 |
% |
|
Add: Depreciation and amortization |
|
|
13,239 |
|
|
|
2,029 |
|
|
|
15,268 |
|
|
|
332 |
|
|
|
15,600 |
|
Adjusted EBITDA |
|
$ |
97,366 |
|
|
$ |
14,769 |
|
|
$ |
112,135 |
|
|
$ |
(25,073 |
) |
|
$ |
87,062 |
|
Adjusted EBITDA margin |
|
|
19.3 |
% |
|
|
8.1 |
% |
|
|
16.3 |
% |
|
n/a |
|
|
|
12.7 |
% |
|
|
|
|||||||||||||||||||
(1) Includes gross profit adjustments of $650 and SG&A adjustments of $3,893 |
|
|||||||||||||||||||
(2) Includes environmental charges of $2,800 net of probable insurance recoveries of $0 |
|
|||||||||||||||||||
9
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)
(Dollars in thousands, except per share data)
|
|
Quarter Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Adjusted operating income (loss) reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
$ |
18,703 |
|
|
$ |
19,897 |
|
|
$ |
53,802 |
|
|
$ |
66,919 |
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
699 |
|
|
|
— |
|
Restructuring expenses and other adjustments |
|
|
1,359 |
|
|
|
260 |
|
|
|
2,244 |
|
|
|
650 |
|
Acquisition and integration costs |
|
|
77 |
|
|
|
356 |
|
|
|
423 |
|
|
|
832 |
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
Environmental reserves, net |
|
|
(100 |
) |
|
|
1,500 |
|
|
|
2,200 |
|
|
|
2,800 |
|
Adjusted operating income (loss) |
|
$ |
20,039 |
|
|
$ |
22,013 |
|
|
$ |
59,368 |
|
|
$ |
71,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
12,747 |
|
|
$ |
13,671 |
|
|
$ |
36,328 |
|
|
$ |
46,839 |
|
Income tax expense (benefit) |
|
|
4,417 |
|
|
|
4,507 |
|
|
|
12,499 |
|
|
|
16,003 |
|
Interest expense, net |
|
|
1,539 |
|
|
|
1,719 |
|
|
|
4,975 |
|
|
|
4,077 |
|
Operating income (loss) |
|
|
18,703 |
|
|
|
19,897 |
|
|
|
53,802 |
|
|
|
66,919 |
|
Depreciation and amortization |
|
|
5,609 |
|
|
|
5,159 |
|
|
|
16,904 |
|
|
|
15,600 |
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
699 |
|
|
|
— |
|
Restructuring expenses and other adjustments |
|
|
1,359 |
|
|
|
260 |
|
|
|
2,244 |
|
|
|
650 |
|
Acquisition and integration costs |
|
|
77 |
|
|
|
356 |
|
|
|
423 |
|
|
|
832 |
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
Environmental reserves, net |
|
|
(100 |
) |
|
|
1,500 |
|
|
|
2,200 |
|
|
|
2,800 |
|
Adjusted EBITDA |
|
$ |
25,648 |
|
|
$ |
27,172 |
|
|
$ |
76,272 |
|
|
$ |
87,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Free cash flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by (used for) operating activities |
|
$ |
22,134 |
|
|
$ |
16,460 |
|
|
$ |
70,772 |
|
|
$ |
50,759 |
|
Capital expenditures |
|
|
(4,076 |
) |
|
|
(6,672 |
) |
|
|
(19,292 |
) |
|
|
(17,615 |
) |
Free cash flow |
|
$ |
18,058 |
|
|
$ |
9,788 |
|
|
$ |
51,480 |
|
|
$ |
33,144 |
|
10
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, |
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
||||
Adjusted net income (loss) reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
12,747 |
|
|
$ |
13,671 |
|
|
$ |
36,328 |
|
|
$ |
46,839 |
|
|
Income tax expense (benefit) |
|
|
4,417 |
|
|
|
4,507 |
|
|
|
12,499 |
|
|
|
16,003 |
|
|
Income (loss) before income taxes |
|
|
17,164 |
|
|
|
18,178 |
|
|
|
48,827 |
|
|
|
62,842 |
|
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
699 |
|
|
|
— |
|
|
Restructuring expenses and other adjustments |
|
|
1,359 |
|
|
|
260 |
|
|
|
2,244 |
|
|
|
650 |
|
|
Acquisition and integration costs |
|
|
77 |
|
|
|
356 |
|
|
|
423 |
|
|
|
832 |
|
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
|
Environmental reserves, net |
|
|
(100 |
) |
|
|
1,500 |
|
|
|
2,200 |
|
|
|
2,800 |
|
|
Adjusted income (loss) before income taxes |
|
|
18,500 |
|
|
|
20,294 |
|
|
|
54,393 |
|
|
|
67,385 |
|
|
Income tax expense, as adjusted (1) |
|
|
(4,625 |
) |
|
|
(5,276 |
) |
|
|
(13,598 |
) |
|
|
(17,520 |
) |
|
Adjusted net income (loss) |
|
$ |
13,875 |
|
|
$ |
15,018 |
|
|
$ |
40,795 |
|
|
$ |
49,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted earnings per diluted share reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) per common diluted share |
|
$ |
0.34 |
|
|
$ |
0.37 |
|
|
$ |
0.98 |
|
|
$ |
1.28 |
|
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
Restructuring expenses and other adjustments |
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
Acquisition and integration costs |
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
Environmental reserves, net |
|
|
(0.00 |
) |
|
|
0.04 |
|
|
|
0.06 |
|
|
|
0.08 |
|
|
Adjusted effective income tax rate impact |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
|
Adjusted earnings per diluted share(2) |
|
$ |
0.38 |
|
|
$ |
0.41 |
|
|
$ |
1.10 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 26%. |
|||||||||||||||||
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period. |
|||||||||||||||||
11
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE
(UNAUDITED)
|
Full Year 2023 Guidance |
|
|||||
|
Low |
|
|
High |
|
||
GAAP diluted net income per common share |
$ |
1.20 |
|
|
$ |
1.28 |
|
Add: Executive severance costs |
|
0.02 |
|
|
|
0.02 |
|
Add: Net restructuring expenses and other adjustments |
|
0.11 |
|
|
|
0.07 |
|
Add: Acquisition and integration costs |
|
0.01 |
|
|
|
0.01 |
|
Add: Environmental reserves, net |
|
0.06 |
|
|
|
0.06 |
|
Less: Adjusted effective income tax rate impact (1) |
|
(0.05 |
) |
|
|
(0.04 |
) |
Adjusted earnings per diluted share (2) |
$ |
1.35 |
|
|
$ |
1.40 |
|
|
|
|
|
|
|
||
(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2023 is 25%. |
|
||||||
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding. |
|
||||||
12