8-K
MYERS INDUSTRIES INC (MYE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 1, 2023
Myers Industries, Inc.
(Exact Name of Registrant as Specified in Charter)
| Ohio | 001-8524 | 34-0778636 |
|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
1293 South Main Street, Akron, Ohio 44301
(Address of Principal Executive Offices, and Zip Code)
(330) 253-5592
Registrant’s Telephone Number, Including Area Code
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, without par value | MYE | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On March 1, 2023, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the fourth quarter and full year ended December 31, 2022. 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 March 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 March 1, 2023, the Company issued a press release announcing earnings results for the fourth quarter and full year ended December 31, 2022. 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 March 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<br><br>Number | Description |
|---|---|
| 99.1 | Press Release, dated March 1, 2023 |
| 104 | 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.
| Myers Industries, Inc. | ||
|---|---|---|
| By: | /s/ Monica P. Vinay | |
| Monica P. Vinay | ||
| Interim Chief Financial Officer | ||
| Date: March 1, 2023 |
EX-99
Exhibit 99.1
Myers Industries Announces Fourth Quarter and Full Year 2022 Results
Record Top-and-Bottom Line Results Delivered for Four Consecutive Quarters
Outlook for Sustained Revenue Growth in Fiscal 2023
March 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 fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights:
• Net sales of $213 million, up 7% versus prior year period
• GAAP EPS of $0.36; Adjusted EPS of $0.32, up 39% versus prior year period
• Cash flow provided by operations of $22 million and free cash flow of $15 million
Full Year 2022 Financial Highlights:
• Net sales of $900 million, up 18% versus prior year period; Organic net sales up 10%
• GAAP EPS of $1.64; Adjusted EPS of $1.68, up 73% versus prior year period
• Cash flow provided by operations of $73 million and free cash flow of $48 million
Myers Industries President and CEO Mike McGaugh said, "2022 was a strong year as Myers posted record results in each quarter with robust top- and bottom-line growth, serving as proof that our 3-Horizon strategy is working. We continued to generate healthy margins and strong cash flow from the initiatives we took throughout 2022. In addition to improving the company, we also made two acquisitions during the year, adding scale to our Distribution Segment with Mohawk Rubber and enhancing our Material Handling Segment with the addition of a rotational molding facility in Decatur, Georgia. Our team continues to do a nice job growing and transforming the company."
McGaugh continued, "While recognizing that 2022 was a year of record results, I’m excited about Myers’ future, because I continue to believe that the company still has significant unrealized potential. We can see the opportunity and we have the right people in place to capture it. We are now working to institutionalize our improvements into an operating system. In 2023, we will implement the "Myers Operating System" to make sure our improvements are ingrained, lasting and scalable. The Myers Operating System will drive standard work processes across the company, ensuring that best practices are applied across all of our legacy business units as well as our new acquisitions. I am confident the Myers Operating System will further Myers on its journey to become a world class company. I believe there is still a long runway for our company and significant value creation opportunity for our shareholders."
Fourth Quarter 2022 Financial Summary
| Quarter Ended December 31, | |||
|---|---|---|---|
| (Dollars in thousands, except per share data) | 2022 | 2021 | % Inc<br>(Dec) |
| Net sales | $212,840 | $199,579 | 6.6% |
| Gross profit | $65,074 | $51,816 | 25.6% |
| Gross margin | 30.6% | 26.0% | |
| Operating income | $17,022 | $10,750 | 58.3% |
| Net income: | |||
| Net income | $13,428 | $7,255 | 85.1% |
| Net income per diluted share | $0.36 | $0.20 | 80.0% |
| Adjusted operating income | $16,485 | $12,468 | 32.2% |
| Adjusted net income: | |||
| Net income | $11,797 | $8,369 | 41.0% |
| Net income per diluted share | $0.32 | $0.23 | 39.1% |
| Adjusted EBITDA | $22,101 | $17,601 | 25.6% |
Net sales for the fourth quarter of 2022 were $212.8 million, an increase of $13.3 million, or 6.6%, compared with $199.6 million for the fourth quarter of 2021, primarily driven by incremental sales of $17 million from the Mohawk Rubber acquisition in the Distribution Segment. On an organic basis, higher pricing was offset by lower volume/mix.
Gross profit increased $13.3 million, or 25.6% to $65.1 million, primarily due to continued benefits from pricing actions, lower material costs and the Mohawk Rubber acquisition, partially offset by lower volume and a change in sales mix. While we continue to experience cost inflation, we were able to successfully offset it through our self-help initiatives, including cost reductions. Gross margin expanded to 30.6% compared with 26.0% for the fourth quarter of 2021. Selling, general and administrative expenses increased $6.1 million, or 14.8% to $47.4 million due to the Mohawk Rubber acquisition, higher variable selling expenses, salaries, and incentive compensation. SG&A as a percentage of sales increased to 22.3%, compared with 20.7% in the same period last year. Net income per diluted share was $0.36, compared with $0.20 for the fourth quarter of 2021. Adjusted earnings per diluted share were $0.32, compared with $0.23 for the fourth quarter of 2021.
Fourth Quarter 2022 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
| Net Sales | Op Income | Adj Op Income | Adj Op Income Margin | |
|---|---|---|---|---|
| Q4 2022 Results | $142.2 | $20.9 | $21.0 | 14.7% |
| Q4 2021 Results | $147.3 | $12.3 | $13.2 | 9.0% |
| Increase (decrease) vs prior year | (3.4)% | 69.7% | 58.4% | +570 bps |
Net sales for the Material Handling Segment during the fourth quarter of 2022 were $142.2 million, a decrease of $5.0 million, or 3.4%, compared with $147.3 million for the fourth quarter of 2021. Net sales increases in the food and beverage and consumer markets were more than offset by decreases in the vehicle and industrial markets. Operating income increased 69.7% to $20.9 million, compared with $12.3 million in 2021. Adjusted operating income increased 58.4% to $21.0 million, compared with $13.2 million in 2021. Contributions from pricing actions and lower material costs more than offset lower sales volume and a change in sales mix. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to increased variable selling expenses and higher incentive compensation costs. The Material Handling Segment’s adjusted operating income margin increased 570 basis points to 14.7%, compared with 9.0% for the fourth quarter of 2021.
Distribution
| Net Sales | Op Income | Adj Op Income | Adj Op Income Margin | |
|---|---|---|---|---|
| Q4 2022 Results | $70.6 | $3.4 | $4.1 | 5.8% |
| Q4 2021 Results | $52.3 | $5.4 | $5.4 | 10.3% |
| Increase (decrease) vs prior year | 35.0% | (37.2)% | (24.0)% | -450 bps |
Net sales for the Distribution Segment during the fourth quarter of 2022 were $70.6 million, an increase of $18.3 million, or 35.0%, compared with $52.3 million for the fourth quarter of 2021. Excluding the incremental $17 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 2%. Operating income decreased 37.2% to $3.4 million, compared with $5.4 million in 2021. Adjusted operating income decreased 24.0% to $4.1 million, compared to $5.4 million in 2021. The contribution from higher pricing wasn't enough to offset higher product costs and increased SG&A expenses year-over-year. The increase in SG&A expenses was primarily the result of the Mohawk Rubber acquisition and higher variable selling and incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 5.8%, compared with 10.3% for the fourth quarter of 2021. The Distribution Segment continues to implement price increases to offset cost inflation.
Full Year 2022 Financial Summary
| Year Ended December 31, | |||
|---|---|---|---|
| (Dollars in thousands, except per share data) | 2022 | 2021 | % Inc<br>(Dec) |
| Net sales | $899,547 | $761,435 | 18.1% |
| Gross profit | $283,366 | $211,421 | 34.0% |
| Gross margin | 31.5% | 27.8% | |
| Operating income | $83,941 | $49,301 | 70.3% |
| Net income: | |||
| Net income | $60,267 | $33,538 | 79.7% |
| Net income per diluted share | $1.64 | $0.92 | 78.3% |
| Adjusted operating income | $87,947 | $51,949 | 69.3% |
| Adjusted net income: | |||
| Net income | $61,662 | $35,328 | 74.5% |
| Net income per diluted share | $1.68 | $0.97 | 73.2% |
| Adjusted EBITDA | $109,163 | $72,371 | 50.8% |
Net sales for the full year of 2022 were $899.5 million, an increase of $138.1 million, or 18.1%, compared with $761.4 million for the full year of 2021, driven by strong sales in both the Material Handling and Distribution segments. Excluding the incremental $64 million of net sales from the Trilogy Plastics and Mohawk Rubber acquisitions, organic net sales increased 10% primarily due to higher pricing.
Gross profit increased $71.9 million, or 34.0% to $283.4 million, primarily due to the contribution from pricing actions and the Trilogy Plastics and Mohawk Rubber acquisitions, partially offset by cost inflation and unfavorable volume/mix. Gross margin improved to 31.5% compared with 27.8% for the full year of 2021. Selling, general and administrative expenses increased $36.0 million, or 22.0% to $199.5 million, reflecting the Mohawk Rubber and Trilogy Plastics acquisitions, higher salaries and incentive compensation costs, increased variable selling expenses and higher repairs and maintenance costs, partly due to inflation. SG&A as a percentage of sales increased to 22.2% for the full year, compared with 21.5% last year. Net income per diluted share was $1.64, compared with $0.92 for the full year of 2021. Adjusted earnings per diluted share were $1.68, compared with $0.97 for the full year of 2021.
Full Year 2022 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
| Net Sales | Op Income | Adj Op Income | Adj Op Income Margin | |
|---|---|---|---|---|
| Full Year 2022 Results | $647.6 | $104.1 | $105.1 | 16.2% |
| Full Year 2021 Results | $564.1 | $62.2 | $62.4 | 11.1% |
| Increase (decrease) vs prior year | 14.8% | 67.4% | 68.4% | +510 bps |
Net sales for the Material Handling Segment for the full year of 2022 were $647.6 million, an increase of $83.6 million, or 14.8%, compared with $564.1 million for the full year of 2021. Excluding the incremental $24 million of net sales from the Trilogy Plastics acquisition, organic net sales increased 11%. Organic net sales increases in the food and beverage and industrial markets were partially offset by declines in the vehicle and consumer end markets. Operating income increased 67.4% to $104.1 million, compared with $62.2 million in 2021. Adjusted operating income increased 68.4% to $105.1 million, compared with $62.4 million in 2021. Contributions from higher pricing and supply chain initiatives during the year were partially offset by unfavorable volume/mix and increased labor costs. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to the Trilogy Plastics acquisition, higher salaries and incentive compensation costs, increased selling expenses and higher repairs and maintenance costs. The Material Handling Segment’s adjusted operating income margin was 16.2%, compared with 11.1% for the full year of 2021.
Distribution
| Net Sales | Op Income | Adj Op Income | Adj Op Income Margin | |
|---|---|---|---|---|
| Full Year 2022 Results | $252.0 | $15.9 | $16.8 | 6.7% |
| Full Year 2021 Results | $197.4 | $15.4 | $16.0 | 8.1% |
| Increase (decrease) vs prior year | 27.6% | 2.8% | 5.6% | -140 bps |
Net sales for the Distribution Segment for the full year of 2022 were $252.0 million, an increase of $54.6 million, or 27.6%, compared with $197.4 million for the full year of 2021. Excluding the incremental $40 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 7%, primarily due to higher pricing. Operating income increased 2.8% to $15.9 million, compared with $15.4 million in 2021. Adjusted operating income increased 5.6% to $16.8 million, compared with $16.0 million in 2021. Contributions from pricing actions were offset by higher product costs and an increase in SG&A expenses. The increase in SG&A expenses was primarily the result of the Mohawk Rubber acquisition and higher salaries and incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 6.7%, compared with 8.1% for the full year of 2021. The Distribution Segment continues to implement price increases to offset cost inflation.
Balance Sheet & Cash Flow
As of December 31, 2022, the Company’s cash on hand totaled $23.1 million. Total debt as of December 31, 2022 was $103.4 million.
For the full year of 2022, cash flow provided by operations was $72.6 million and free cash flow was $48.3 million, compared with cash flow provided by operations of $44.9 million and free cash flow of $27.0 million for the full year of 2021. The increase in cash flow was driven primarily by higher earnings. Capital expenditures for the full year of 2022 were $24.3 million, compared with $17.9 million for the full year of 2021.
2023 Outlook
Based on current exchange rates, market outlook, and business forecast, the Company provided the following outlook for fiscal 2023:
• Net sales growth in the low-to-mid single digit range
• Diluted EPS in the range of $1.51 to $1.81; adjusted diluted EPS in the range of $1.55 to $1.85
• Capital expenditures in the range of $25 to $30 million
• Effective tax rate to approximate 25%
We will continue to monitor market conditions and provides updates as we progress throughout the year.
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, March 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=f2ae53b8&confId=47227. Upon registering, each participant will receive access details via email. The live webcast of the conference call can be accessed from the Investor Relations section of the Company's website at www.myersindustries.com. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. Investors can access a replay of the teleconference at (US Local) 1-929-458-6194, (US Toll-Free) 1-866-813-9403. The Access Code is 093105.
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 income (loss) before taxes, adjusted net income, adjusted earnings per diluted share, 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 “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “will”, “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company's control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: residual impacts from the COVID-19 pandemic on our business, conditions, customers and capital position; the impact of the current inflationary environment on local, national and global economic conditions; raw material availability, increases in raw material costs, or other production costs and impacts of other price increases, 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; and other important factors detailed previously and from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q. Such reports are available on the Securities and Exchange Commission's public reference facilities and its website at www.sec.gov and on the Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.
Contact: Monica Vinay, Interim CFO and Vice President, Investor Relations & Treasurer, (330) 761-6212
M-INV
Source: Myers Industries, Inc.
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except share and per share data)
| Quarter Ended | Year Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||
| Net sales | $ | 212,840 | $ | 199,579 | $ | 899,547 | $ | 761,435 | |||
| Cost of sales | 147,766 | 147,763 | 616,181 | 550,014 | |||||||
| Gross profit | 65,074 | 51,816 | 283,366 | 211,421 | |||||||
| Selling, general and administrative expenses | 47,423 | 41,302 | 199,489 | 163,502 | |||||||
| (Gain) loss on disposal of fixed assets | 26 | (236 | ) | (667 | ) | (1,382 | ) | ||||
| Other (income) expenses | 603 | — | 603 | — | |||||||
| Operating income (loss) | 17,022 | 10,750 | 83,941 | 49,301 | |||||||
| Interest expense, net | 1,654 | 1,158 | 5,731 | 4,208 | |||||||
| Income (loss) before income taxes | 15,368 | 9,592 | 78,210 | 45,093 | |||||||
| Income tax expense (benefit) | 1,940 | 2,337 | 17,943 | 11,555 | |||||||
| Net income (loss) | $ | 13,428 | $ | 7,255 | $ | 60,267 | $ | 33,538 | |||
| Net income (loss) per common share: | |||||||||||
| Basic | $ | 0.37 | $ | 0.20 | $ | 1.66 | $ | 0.93 | |||
| Diluted | $ | 0.36 | $ | 0.20 | $ | 1.64 | $ | 0.92 | |||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 36,495,362 | 36,242,600 | 36,411,389 | 36,138,571 | |||||||
| Diluted | 36,853,237 | 36,447,287 | 36,790,839 | 36,358,969 |
MYERS INDUSTRIES, INC.
SALES AND EARNINGS BY SEGMENT (UNAUDITED)
(Dollars in thousands)
| Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||
| Net sales | ||||||||||||||||||
| Material Handling | $ | 142,235 | $ | 147,284 | (3.4 | )% | $ | 647,619 | $ | 564,068 | 14.8 | % | ||||||
| Distribution | 70,614 | 52,308 | 35.0 | % | 251,966 | 197,427 | 27.6 | % | ||||||||||
| Inter-company Sales | (9 | ) | (13 | ) | - | (38 | ) | (60 | ) | - | ||||||||
| Total | $ | 212,840 | $ | 199,579 | 6.6 | % | $ | 899,547 | $ | 761,435 | 18.1 | % | ||||||
| Operating income (loss) | ||||||||||||||||||
| Material Handling | $ | 20,863 | $ | 12,292 | 69.7 | % | $ | 104,079 | $ | 62,187 | 67.4 | % | ||||||
| Distribution | 3,393 | 5,399 | (37.2 | )% | 15,862 | 15,428 | 2.8 | % | ||||||||||
| Corporate | (7,234 | ) | (6,941 | ) | - | (36,000 | ) | (28,314 | ) | - | ||||||||
| Total | $ | 17,022 | $ | 10,750 | 58.3 | % | $ | 83,941 | $ | 49,301 | 70.3 | % | ||||||
| Adjusted operating income (loss) | ||||||||||||||||||
| Material Handling | $ | 20,957 | $ | 13,229 | 58.4 | % | $ | 105,084 | $ | 62,407 | 68.4 | % | ||||||
| Distribution | 4,102 | 5,399 | (24.0 | )% | 16,842 | 15,955 | 5.6 | % | ||||||||||
| Corporate | (8,574 | ) | (6,160 | ) | - | (33,979 | ) | (26,413 | ) | - | ||||||||
| Total | $ | 16,485 | $ | 12,468 | 32.2 | % | $ | 87,947 | $ | 51,949 | 69.3 | % | ||||||
| Adjusted operating income margin | ||||||||||||||||||
| Material Handling | 14.7 | % | 9.0 | % | 16.2 | % | 11.1 | % | ||||||||||
| Distribution | 5.8 | % | 10.3 | % | 6.7 | % | 8.1 | % | ||||||||||
| Corporate | n/a | n/a | n/a | n/a | ||||||||||||||
| Total | 7.7 | % | 6.2 | % | 9.8 | % | 6.8 | % | ||||||||||
| Adjusted EBITDA | ||||||||||||||||||
| Material Handling | $ | 25,532 | $ | 17,658 | 44.6 | % | $ | 122,898 | $ | 80,210 | 53.2 | % | ||||||
| Distribution | 4,962 | 5,994 | (17.2 | )% | 19,731 | 18,163 | 8.6 | % | ||||||||||
| Corporate | (8,393 | ) | (6,051 | ) | - | (33,466 | ) | (26,002 | ) | - | ||||||||
| Total | $ | 22,101 | $ | 17,601 | 25.6 | % | $ | 109,163 | $ | 72,371 | 50.8 | % | ||||||
| Adjusted EBITDA margin | ||||||||||||||||||
| Material Handling | 18.0 | % | 12.0 | % | 19.0 | % | 14.2 | % | ||||||||||
| Distribution | 7.0 | % | 11.5 | % | 7.8 | % | 9.2 | % | ||||||||||
| Corporate | n/a | n/a | n/a | n/a | ||||||||||||||
| Total | 10.4 | % | 8.8 | % | 12.1 | % | 9.5 | % |
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 142,235 | $ | 70,614 | $ | 212,849 | $ | (9 | ) | $ | 212,840 | ||||
| Gross profit | 65,074 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 94 | |||||||||||||
| Adjusted gross profit | 65,168 | |||||||||||||
| Gross margin | 30.6 | % | ||||||||||||
| Operating income (loss) | 20,863 | 3,393 | 24,256 | (7,234 | ) | 17,022 | ||||||||
| Add: Acquisition and integration costs | — | 106 | 106 | 60 | 166 | |||||||||
| Add: Restructuring expenses and other adjustments | 94 | — | 94 | — | 94 | |||||||||
| Add: Impairment of investment in legacy joint venture | — | 603 | 603 | — | 603 | |||||||||
| Less: Environmental reserves, net(2) | — | — | — | (1,400 | ) | (1,400 | ) | |||||||
| Adjusted operating income (loss)(1) | 20,957 | 4,102 | 25,059 | (8,574 | ) | 16,485 | ||||||||
| Adjusted operating income margin | 14.7 | % | 5.8 | % | 11.8 | % | n/a | 7.7 | % | |||||
| Add: Depreciation and amortization | 4,575 | 860 | 5,435 | 181 | 5,616 | |||||||||
| Adjusted EBITDA | 25,532 | $ | 4,962 | $ | 30,494 | $ | (8,393 | ) | $ | 22,101 | ||||
| Adjusted EBITDA margin | 18.0 | % | 7.0 | % | 14.3 | % | n/a | 10.4 | % | |||||
| (1) Includes gross profit adjustments of 94 and SG&A adjustments of (631) | ||||||||||||||
| (2) Includes environmental charges of 4,600 net of expected insurance recoveries of 6,000 | ||||||||||||||
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 147,284 | $ | 52,308 | $ | 199,592 | $ | (13 | ) | $ | 199,579 | ||||
| Gross profit | 51,816 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 620 | |||||||||||||
| Add: Acquisition and integration costs | 317 | |||||||||||||
| Adjusted gross profit | 52,753 | |||||||||||||
| Gross margin as adjusted | 26.4 | % | ||||||||||||
| Operating income (loss) | 12,292 | 5,399 | 17,691 | (6,941 | ) | 10,750 | ||||||||
| Add: Environmental charges | — | — | — | 700 | 700 | |||||||||
| Add: Restructuring expenses and other adjustments | 620 | — | 620 | — | 620 | |||||||||
| Add: Acquisition and integration costs | 317 | — | 317 | 81 | 398 | |||||||||
| Adjusted operating income (loss)(1) | 13,229 | 5,399 | 18,628 | (6,160 | ) | 12,468 | ||||||||
| Adjusted operating income margin | 9.0 | % | 10.3 | % | 9.3 | % | n/a | 6.2 | % | |||||
| Add: Depreciation and amortization | 4,429 | 595 | 5,024 | 109 | 5,133 | |||||||||
| Adjusted EBITDA | 17,658 | $ | 5,994 | $ | 23,652 | $ | (6,051 | ) | $ | 17,601 | ||||
| Adjusted EBITDA margin | 12.0 | % | 11.5 | % | 11.9 | % | n/a | 8.8 | % | |||||
| (1) Includes gross profit adjustments of 937 and SG&A adjustments of 781 |
All values are in US Dollars.
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 647,619 | $ | 251,966 | $ | 899,585 | $ | (38 | ) | $ | 899,547 | ||||
| Gross profit | 283,366 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 744 | |||||||||||||
| Adjusted gross profit | 284,110 | |||||||||||||
| Gross margin as adjusted | 31.6 | % | ||||||||||||
| Operating income (loss) | 104,079 | 15,862 | 119,941 | (36,000 | ) | 83,941 | ||||||||
| Add: Acquisition and integration costs | — | 377 | 377 | 621 | 998 | |||||||||
| Add: Restructuring expenses and other adjustments | 744 | — | 744 | — | 744 | |||||||||
| Add: Loss on sale of assets | 261 | — | 261 | — | 261 | |||||||||
| Add: Impairment of investment in legacy joint venture | — | 603 | 603 | — | 603 | |||||||||
| Add: Environmental reserves, net(2) | — | — | — | 1,400 | 1,400 | |||||||||
| Adjusted operating income (loss)(1) | 105,084 | 16,842 | 121,926 | (33,979 | ) | 87,947 | ||||||||
| Adjusted operating income margin | 16.2 | % | 6.7 | % | 13.6 | % | n/a | 9.8 | % | |||||
| Add: Depreciation and amortization | 17,814 | 2,889 | 20,703 | 513 | 21,216 | |||||||||
| Adjusted EBITDA | 122,898 | $ | 19,731 | $ | 142,629 | $ | (33,466 | ) | $ | 109,163 | ||||
| Adjusted EBITDA margin | 19.0 | % | 7.8 | % | 15.9 | % | n/a | 12.1 | % | |||||
| (1) Includes gross profit adjustments of 744 and SG&A adjustments of 3,262 | ||||||||||||||
| (2) Includes environmental charges of 7,400 net of expected insurance recoveries of 6,000 | ||||||||||||||
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 564,068 | $ | 197,427 | $ | 761,495 | $ | (60 | ) | $ | 761,435 | ||||
| Gross profit | 211,421 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 867 | |||||||||||||
| Add: Acquisition and integration costs | 348 | |||||||||||||
| Adjusted gross profit | 212,636 | |||||||||||||
| Gross margin as adjusted | 27.9 | % | ||||||||||||
| Operating income (loss) | 62,187 | 15,428 | 77,615 | (28,314 | ) | 49,301 | ||||||||
| Add: Severance costs | — | 527 | 527 | 318 | 845 | |||||||||
| Add: Acquisition and integration costs | 348 | — | 348 | 883 | 1,231 | |||||||||
| Add: Restructuring expenses and other adjustments | 867 | — | 867 | — | 867 | |||||||||
| Less: Gain on sale of assets | (995 | ) | — | (995 | ) | — | (995 | ) | ||||||
| Add: Environmental charges | — | — | — | 700 | 700 | |||||||||
| Adjusted operating income (loss)(1) | 62,407 | 15,955 | 78,362 | (26,413 | ) | 51,949 | ||||||||
| Adjusted operating income margin | 11.1 | % | 8.1 | % | 10.3 | % | n/a | 6.8 | % | |||||
| Add: Depreciation and amortization | 17,803 | 2,208 | 20,011 | 411 | 20,422 | |||||||||
| Adjusted EBITDA | 80,210 | $ | 18,163 | $ | 98,373 | $ | (26,002 | ) | $ | 72,371 | ||||
| Adjusted EBITDA margin | 14.2 | % | 9.2 | % | 12.9 | % | n/a | 9.5 | % | |||||
| (1) Includes gross profit adjustments of 1,215 and SG&A adjustments of 1,433 |
All values are in US Dollars.
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)
(Dollars in thousands, except per share data)
| Quarter Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Operating income (loss) | $ | 17,022 | $ | 10,750 | $ | 83,941 | $ | 49,301 | ||||
| Add: Severance costs | — | — | — | 845 | ||||||||
| Add: Restructuring expenses and other adjustments | 94 | 620 | 744 | 867 | ||||||||
| Add: Acquisition and integration costs | 166 | 398 | 998 | 1,231 | ||||||||
| Add/(Less): Loss (gain) on sale of assets | — | — | 261 | (995 | ) | |||||||
| Add: Impairment of investment in legacy joint venture | 603 | — | 603 | — | ||||||||
| Add/(Less): Environmental reserves, net | (1,400 | ) | 700 | 1,400 | 700 | |||||||
| Adjusted operating income (loss) | 16,485 | 12,468 | 87,947 | 51,949 | ||||||||
| Less: Interest expense, net | (1,654 | ) | (1,158 | ) | (5,731 | ) | (4,208 | ) | ||||
| Adjusted income (loss) before taxes | 14,831 | 11,310 | 82,216 | 47,741 | ||||||||
| Less: Income tax expense(1) | (3,034 | ) | (2,941 | ) | (20,554 | ) | (12,413 | ) | ||||
| Adjusted net income (loss) | $ | 11,797 | $ | 8,369 | $ | 61,662 | $ | 35,328 | ||||
| Adjusted earnings per diluted share(2) | $ | 0.32 | $ | 0.23 | $ | 1.68 | $ | 0.97 | ||||
| (1) Income taxes are calculated using the normalized effective tax rate for each year. The full year rate used in 2022 is 25% and 2021 is 26%. | ||||||||||||
| (2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period. |
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
| December 31, 2022 | December 31, 2021 | |||
|---|---|---|---|---|
| Assets | ||||
| Current Assets | ||||
| Cash | $ | 23,139 | $ | 17,655 |
| Accounts receivable, net | 133,716 | 100,691 | ||
| Income tax receivable | - | 2,517 | ||
| Inventories, net | 93,351 | 93,551 | ||
| Prepaid expenses and other current assets | 7,001 | 5,500 | ||
| Total Current Assets | 257,207 | 219,914 | ||
| Property, plant, & equipment, net | 101,566 | 92,049 | ||
| Right of use asset - operating leases | 28,908 | 29,285 | ||
| Deferred income taxes | 129 | 106 | ||
| Other assets | 154,824 | 143,195 | ||
| Total Assets | $ | 542,634 | $ | 484,549 |
| Liabilities & Shareholders' Equity | ||||
| Current Liabilities | ||||
| Accounts payable | $ | 73,536 | $ | 81,690 |
| Accrued expenses | 57,531 | 44,969 | ||
| Operating lease liability - short-term | 6,177 | 5,341 | ||
| Finance lease liability - short-term | 518 | 500 | ||
| Total Current Liabilities | 137,762 | 132,500 | ||
| Long-term debt | 93,962 | 90,945 | ||
| Operating lease liability - long-term | 22,786 | 23,815 | ||
| Finance lease liability - long-term | 8,919 | 9,437 | ||
| Other liabilities | 15,270 | 13,086 | ||
| Deferred income taxes | 7,508 | 5,441 | ||
| Total Shareholders' Equity | 256,427 | 209,325 | ||
| Total Liabilities & Shareholders' Equity | $ | 542,634 | $ | 484,549 |
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Cash Flows From Operating Activities | ||||||
| Net income | $ | 60,267 | $ | 33,538 | ||
| Adjustments to reconcile net income to net cash<br> provided by (used for) operating activities | ||||||
| Depreciation and amortization | 21,216 | 20,422 | ||||
| Amortization of deferred financing costs | 441 | 463 | ||||
| Non-cash stock-based compensation expense | 7,436 | 3,196 | ||||
| Gain on disposal of fixed assets | (667 | ) | (1,382 | ) | ||
| Deferred taxes | 2,072 | 2,826 | ||||
| Other | 1,520 | (1,403 | ) | |||
| Cash flows provided by (used for) working capital | ||||||
| Accounts receivable | (23,625 | ) | (15,273 | ) | ||
| Inventories | 7,955 | (24,885 | ) | |||
| Prepaid expenses and other current assets | (1,409 | ) | (676 | ) | ||
| Accounts payable and accrued expenses | (2,585 | ) | 28,088 | |||
| Net cash provided by (used for) operating activities | 72,621 | 44,914 | ||||
| Cash Flows From Investing Activities | ||||||
| Capital expenditures | (24,292 | ) | (17,867 | ) | ||
| Acquisition of business, net of cash acquired | (27,626 | ) | (35,758 | ) | ||
| Proceeds from sale of property, plant, and equipment | 1,537 | 3,336 | ||||
| Net cash provided by (used for) investing activities | (50,381 | ) | (50,289 | ) | ||
| Cash Flows From Financing Activities | ||||||
| Borrowings on revolving credit facility | 1,264,200 | 886,600 | ||||
| Repayments on revolving credit facility | (1,261,200 | ) | (833,600 | ) | ||
| Repayments of long-term debt | — | (40,000 | ) | |||
| Payments on finance lease | (500 | ) | (402 | ) | ||
| Cash dividends paid | (19,797 | ) | (19,596 | ) | ||
| Proceeds from issuance of common stock | 2,320 | 3,793 | ||||
| Shares withheld for employee taxes on equity awards | (451 | ) | (888 | ) | ||
| Deferred financing fees | (889 | ) | (1,095 | ) | ||
| Net cash provided by (used for) financing activities | (16,317 | ) | (5,188 | ) | ||
| Foreign exchange rate effect on cash | (439 | ) | (83 | ) | ||
| Net increase (decrease) in cash | 5,484 | (10,646 | ) | |||
| Cash at January 1 | 17,655 | 28,301 | ||||
| Cash at December 31 | $ | 23,139 | $ | 17,655 |
MYERS INDUSTRIES, INC.
RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY
(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS
(UNAUDITED)
(Dollars in thousands)
| YTD | YTD | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | December 31, 2021 | ||||||||||
| Net cash provided by (used for) operating activities | $ | 72,621 | $ | 44,914 | |||||||
| Capital expenditures | (24,292 | ) | (17,867 | ) | |||||||
| Free cash flow | $ | 48,329 | $ | 27,047 | |||||||
| YTD | YTD | Quarter | |||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2022 | |||||||||
| Net cash provided by (used for) operating activities | $ | 72,621 | - | $ | 50,759 | = | $ | 21,862 | |||
| Capital expenditures | (24,292 | ) | - | (17,615 | ) | = | (6,677 | ) | |||
| Free cash flow | $ | 48,329 | - | $ | 33,144 | = | $ | 15,185 | |||
| YTD | YTD | Quarter | |||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2021 | |||||||||
| Net cash provided by (used for) operating activities | $ | 44,914 | - | $ | 13,544 | = | $ | 31,370 | |||
| Capital expenditures | (17,867 | ) | - | (14,264 | ) | = | (3,603 | ) | |||
| Free cash flow | $ | 27,047 | - | $ | (720 | ) | = | $ | 27,767 |
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
(UNAUDITED)
| Full Year 2023 Guidance | ||||
|---|---|---|---|---|
| Low | High | |||
| GAAP diluted net income per common share | $ | 1.51 | $ | 1.81 |
| Add: Net restructuring expenses and other adjustments | 0.03 | 0.03 | ||
| Add: Acquisition and integration costs | 0.01 | 0.01 | ||
| Adjusted diluted earnings per share | $ | 1.55 | $ | 1.85 |