Earnings Call Transcript - MYE Q4 2022

Operator, Operator

Hello, everyone, and welcome to the Myers Industries Fourth Quarter 2022 Earnings Call. My name is Bruno and I will be operating your call today. I will now hand over to your host, Monica Vinay. Please go ahead.

Monica Vinay, Interim CFO and VP of Investor Relations

Thank you. Good morning and thank you for joining us. I am Monica Vinay, Interim Chief Financial Officer and Vice President of Investor Relations and Treasurer at Myers Industries. Joining me today is Mike McGaugh, our President and Chief Executive Officer. Earlier this morning, we issued a press release outlining the financial results for the fourth quarter and full-year of 2022. We have also posted a PowerPoint presentation to accompany today’s prepared remarks. If you’ve not yet received a copy of either the press release or the PowerPoint, you can access it on our website at www.myersindustries.com, under the Investor Relations tab. This call is also being webcasted on our website and will be archived along with the transcript of the call shortly after this event. Please turn to slide two of the PowerPoint presentation for our safe-harbor disclosures. I would like to remind you that we may make some forward-looking statements during this call. These comments are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and involve risks, uncertainties and other factors, which may cause results to differ materially from those expressed or implied in these statements. Also please be advised that certain non-GAAP financial measures such as adjusted gross profit, adjusted operating income, adjusted EBITDA and adjusted EPS may be discussed on this call. Further information concerning these risks, uncertainties and other factors is set forth in the company’s periodic SEC filings and may be found in the company’s 10-K and 10-Q filings. Please turn to slide three of our presentation, I’m now pleased to turn the call over to Mike McGaugh.

Mike McGaugh, President and CEO

Thank you, Monica. Good morning, everyone, and welcome to our fourth quarter and full-year 2022 earnings call. I'm excited to report another consecutive quarter of record top and bottom-line results, making 2022 a record year for Myers. This included annual revenue growth of 18% or 10% on an organic basis, adjusted EBITDA growth of 51% and adjusted EPS growth of 73%. Our team executed at a high level throughout the year and delivered on our promises. I'm proud of our team and believe that we have only just begun on our journey towards becoming a world-class enterprise. Over the past few years, we've made remarkable progress on our transformation. This is a direct result of our entire team's commitment to our three Horizon strategy. This strategy is probably a clear sense of direction and a common purpose and will continue to serve as the foundation for company-wide growth and operational excellence. We're approaching the completion of Horizon 1 and our goals of reaching $1 billion in revenue and a run rate of 15% EBITDA margins remain in focus. In 2022, we made good progress against these goals as we saw strong sales across the majority of our product lines and business units. Additionally, we continue to benefit from the numerous self-help initiatives taken over the past 2.5 years, which included developing our pricing excellence team to ensure we capture the true value of our high-quality products, and optimizing our supply chain and manufacturing plants to improve productivity and output, while becoming more competitive on our cost. What I feel good about is we did this while implementing a culture of servant leadership along with the culture of aggressive goal setting and execution. We can be excellent servant leaders while we drive aggressive performance improvement. Please turn to slide four, where we have a more detailed outline of the full-year results. We achieved net sales of $900 million, which was an 18% increase compared to the prior year. Adjusted gross profit was $284.1 million, up 34%, compared to 2021 and our adjusted gross margin expanded by 370 basis points during the year. In spite of a choppy macroeconomic backdrop, which included strained supply chains, elevated raw material costs in a difficult labor market, our strong results in Q4 and in 2022 are clear proof points that our strategy is working. Now I'll turn the call over to Monica for a review of our fourth quarter financial results and full-year 2023 outlook.

Monica Vinay, Interim CFO and VP of Investor Relations

Thank you, Mike. Please turn to slide five for a summary of our fourth quarter results. On a quarterly basis, we delivered record top and bottom-line results. Our fourth quarter net sales were up $13.3 million or 6.6%, compared to the fourth quarter of 2021, primarily due to incremental sales from the Mohawk Rubber acquisition and our Distribution segment. On an organic basis, the contribution from higher pricing was offset by a decline in volume mix. Quarterly adjusted gross profit increased $12.4 million or 23.5%, which was primarily driven by pricing actions, supply chain management and the contributions from the Mohawk Rubber acquisition. These were partially offset by lower volume and a change in sales mix. Adjusted gross margin for the quarter increased 420 basis points to 30.6%, compared with 26.4% in the fourth quarter of 2021. Through self-help initiatives, including price increases and cost reductions, we were able to counteract the effects of cost inflation. Fourth quarter adjusted operating income increased $4 million or 32.2%, compared to the prior year as a result of higher gross profit, partially offset by higher SG&A. SG&A expenses increased $6.1 million or 14.8% to $47.4 million. The increase in SG&A was primarily due to the Mohawk Rubber acquisition and higher variable selling expenses, salaries, and incentive compensation costs. SG&A as a percentage of sales increased to 22.3%, compared with 20.7% in the same period last year. Adjusted EBITDA was $22.1 million in Q4, an increase of $4.5 million or 25.6%, compared to the prior year period. Adjusted EBITDA margin expanded 160 basis points to 10.4% for the fourth quarter, compared with 8.8% in the same period last year. Lastly, adjusted EPS was $0.32, an increase of $0.09 or 39.1%. Please turn to slide six for an overview of our segment performance for the fourth quarter. For the Material Handling segment, net sales decreased $5.1 million or 3.4%, compared to the prior year. Net sales increases in the food and beverage and consumer markets were more than offset by decreases in the vehicle and industrial markets, due to decreased demand and some customer destocking at year-end. Material Handling adjusted operating income increased $7.8 million or 58.4% to $21 million. This was due to the ongoing benefits from strategic pricing actions and self-help initiatives which were partially offset by lower volume and a change in sales mix. Additionally, SG&A expenses were higher primarily due to increased variable selling expenses and higher incentive compensation costs. Net sales for the distribution segment increased by $18.3 million or 35% year-over-year. Excluding the incremental $17 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 2%, due primarily to higher pricing. Distribution segment adjusted operating income decreased 24% to $4.1 million. The contribution from higher pricing wasn't enough to offset higher product costs and higher SG&A expenses year-over-year. The increase in SG&A expenses was primarily due to the Mohawk Rubber acquisition and higher variable selling and incentive compensation expenses. The distribution segment continues to implement price increases to offset escalating product costs. Turning to slide seven. For the full-year of 2022, free cash flow was $48.3 million, compared to $27 million for the full-year of 2021. The increase in cash flow was primarily the result of higher earnings. Working capital as a percentage of net sales increased 190 basis points, compared to the same period last year, due primarily to an increase in accounts receivable, driven by higher sales and a change in sales mix. On a sequential basis, working capital as a percent of net sales was flat to prior quarters. Capital expenditures for the full-year of 2022 were $24.3 million and cash on hand at year-end was $23.1 million. We have a strong balance sheet and our capital structure continues to support our long-term growth plans with debt to adjusted EBITDA of 0.9 times. Turning now to slide eight for our outlook for fiscal year 2023. Net sales are anticipated to increase in the low to mid-single-digit range, due primarily to incremental sales from the Mohawk Rubber acquisition in the distribution segment. As a reminder, we acquired Mohawk at the beginning of June 2022, and annual net sales at the time of acquisition were approximately $65 million. For the Material Handling segment, we are currently forecasting sales to be comparable to last year, due to continued soft demand in the vehicle, marine and select pockets of our consumer end markets. We will continue to closely monitor the market conditions and provide updates as we progress throughout the year. While we do not provide quarterly guidance, for the first two quarters of 2023 on a top line basis, we expect that the incremental sales from the Mohawk acquisition in the distribution segment will offset continued softness in the RV and consumer markets in the Material Handling segment. The corresponding change in the mix of products sold will unfavorably impact margins, as compared to the prior year, but will result in stronger margins as compared to the fourth quarter of 2022. SG&A expenses are expected to approximate 22% of net sales primarily reflecting continued investments in our people, processes and operational efficiencies. Below operating income, we are projecting approximately $6.5 million of interest expense and an effective tax rate of 25% for the year. Our guidance reflects a weighted average share count of 36.9 million shares, taking these assumptions into account, we expect an adjusted EPS range of $1.55 to $1.85 per share. Other key assumptions impacting EBITDA and cash flow include depreciation and amortization expenses of approximately $23 million and capital expenditures in the range of $25 million to $30 million. CapEx is expected to trend higher than in past years as we continue to invest in growth capabilities and drive operational flexibility and efficiencies. We expect free cash flow to continue to benefit from our self-help initiatives and result in another year of strong cash flow generation. I'd like to thank the entire Myers team for delivering outstanding results in 2022. And with that, I'll turn the call back over to Mike to provide an update on our strategy.

Mike McGaugh, President and CEO

Thank you, Monica. Please turn to slide nine. This year has been remarkable in both the financial and strategic successes we achieved. We have consistency in our direction and in our purpose. I outlined our long-term vision in mid-year 2020. This road map has been simple, consistent and clear, and we continue to execute against it. I have confidence in our direction and in our company. We're building a solid foundation for Myers to accelerate its long-term growth. And in Horizon 2, we'll build on that momentum as we continue to grow the company. Before I walk through our execution update, I'd like to highlight, as I have in past calls, our resilience as a company, particularly in a choppy economy. For a small-cap company, we're well diversified. We have deliberately pursued niche technologies, niche end markets and niche customer applications. The resulting diversification makes us surprisingly resilient to a downturn in one end market or another. This approach, coupled with the injection of large-cap talent at a company that had been under-managed over the past decade, provides us a lot of opportunity to improve our earnings and our financial results over the next years. Now back to the update on the execution of our strategy. As I mentioned on prior calls, slide 10 outlines the strategic pillars of our strategy. These pillars provide the framework for successful execution of our strategy, and I'd like to take a few minutes to walk through our progress on slide 11. Starting with organic growth. We achieved 10% organic growth during 2022, due to strong demand in select end markets throughout the year, as well as benefits from previously announced strategic pricing actions. While we expect some macroeconomic choppiness in 2023, we anticipate continued revenue growth and enhanced flow-through to the bottom line. At Myers, we focus on customer-driven innovation, how we can take existing products and extend them, make them higher performing or make them fit better with our customers' aspirations and needs. We're careful not to chase moonshots or work on innovation projects that are not tied to a specific customer need or request. This is a disciplined approach to innovation, and it's paying off with specific targeted customer wins. Shifting on to strategic M&A. As I mentioned earlier, we completed two acquisitions during the year, both of which were on target and on strategy. Over the past 2.5 years, we've been refining and improving our M&A strategy and our integration processes. As we complete these acquisitions, we learn, we find new ways and better ways to improve how we identify, pursue and integrate acquisitions. I'd like to remind our investors that our game plan has been intentional and deliberate. We deliberately elected to acquire a few smaller, less complicated companies, so that we can learn and refine our processes with lower risk and less difficulty. This approach has paid off. We now have a better developed, more robust integration playbook and process that suits us well as we start to prepare to open our aperture and pursue larger targets. Our M&A pipeline is promising, and our team is ready to act. Quite frankly, we are right where we want to be. We're hitting stride financially, we're producing results, we have preserved our balance sheet flexibility and we believe the choppiness in the economy will provide good buying opportunities. We are ready. We're engaging with prospects, but we won't overpay and we won't become over-romanticized with the particular deal. We'll be patient, we'll be deliberate. As I said before on these calls, we view every shareholder dollar trusted with us to be a privilege and not a right. Now shifting on to our third pillar, operational excellence. I'm pleased with the improvements we've made this year as we've significantly increased the efficiency of our manufacturing facilities. We're uncovering additional capacity; we're finding and tapping the hidden factory that I've spoken to in the past calls. We expect this to continue in this direction and expect to maintain and improve upon this in the years to come. In 2023, we'll institutionalize many of these advancements we've made across the four pillars into an operating system, the Myers operating system. Similar to our One Myers culture, this system will be applied and integrated across all business units and work processes. I'm confident in deploying such an operating system. I've done it at prior companies. It worked well, and it produced results. Our Myers operating system will drive standard work processes across the company, ensuring that best practices are applied across all of our legacy businesses, as well as our new acquisitions. By crystallizing what we do well, by standardizing our work, by developing and implementing an operating system, we will be able to scale our best practices, improve our results, grow the company faster and institutionalize a high-performing culture. On that note, I'd like to speak to our fourth and final pillar, having a high-performing culture here at Myers. In 2022, we continued to implement and ingrain our One Myers culture. As we work together as one integrated company, we continue to see significant improvements to our businesses and to the company as a whole. We have a culture that combines a servant leader mindset with an aggressive approach towards performance improvement, stretch goals and business growth. This has made Myers a rewarding place to work, attracting an influx of exceptional talent. I've spoken to this before, and it's a winning formula for us. It's one of the things that's driving our transformation and differentiates us, bringing large-cap talent into a small-cap company. Large-cap trained employees and leaders are intrigued by Myers' potential, and they want to be a part of a growth and transformation story. This potential, this growth in transformation is exciting for the type of employees that we seek to have here at Myers. Over the next months, you'll see us roll out with more clarity on how we will position the company around the markets we serve and the solutions we provide. We believe that a market and solutions-based approach will provide us more latitude, will provide us a bigger sandbox in which to grow the company. Over the past years, we moved from being a holding company to being an integrated one. We took the first step by focusing the company around the technologies we use to manufacture products. This is a good interim step, but it's not our final destination. We're going to turn the dial once more and increase our focus on end markets and solutions. This will begin the next phase for Myers as we continue to position the company to maximize growth and shareholder value creation. Before we open up for questions, I want to emphasize my excitement for what's ahead and celebrate the many achievements we made in the past 2.5 years. While Myers will celebrate its 90th anniversary this year, the past few years were transformational for our company, introducing a new era of growth and entrepreneurship for Myers Industries. We view ourselves as founders. Founders of a 90-year-old industrial firm that's as agile and adaptive as a start-up company, founders of what Myers will be in the future in just a few short years. Our results so far are proof that our dedication to a simple, a consistent strategy is working. This company is diversified, has resilience and has a myriad of opportunities to grow. We are well on our way to becoming a world-class company, and I look forward to sharing more updates on our progress as we go forward. Before I close, I'd like to thank all of the associates of Myers Industries, who helped make 2022 a record year. Thank you all. With that, we'll now turn the call over to questions.

Operator, Operator

Operator Instructions Our first question is from Lance Vitanza from Cowen. Lance, your line is now open. Please go ahead.

Lance Vitanza, Analyst

Sorry, guys. Can you hear me now?

Operator, Operator

Yes. We can hear you loud and clear.

Lance Vitanza, Analyst

Hello? Yes, hi. Thanks for taking my questions. Let me begin with the outlook and then we can discuss the M&A opportunity. Mike, there's no doubt you've done an excellent job this year since joining Myers, but it seems like you ended the year on a somewhat disappointing note with no organic sales growth forecasted for 2023. This is a significant shift from the pace during the first nine months of 2022. Is this due to a weakening economy? Can you share what indicators we should look for to determine when there might be an improvement in the outlook? Additionally, if we consider Horizon 2 of your strategy, aiming for $2 billion in sales over the next few years, I believe you mentioned that growth would be approximately two-thirds from M&A and one-third organic. Do you still believe it’s possible to achieve that level of organic growth? If so, what gives you confidence in that?

Mike McGaugh, President and CEO

Yes, let me break it down a bit. I’ll have Monica provide some specific details, and I can discuss the overall direction. I'm confident in the company, in Material Handling, and in the Distribution segment. We're going to see positive results from the Mohawk acquisition in distribution, which I’m excited about. Regarding growth and volume, there are a few key points. Agriculture is strong, and we expect that strength to persist, which is a high-margin segment for us. The vehicle side, including recreational vehicles and marine products, softened in the latter part of the year, but we anticipate some recovery in the second half of 2023, although there is currently some weakness there. The consumer side also remains soft, particularly for high-ticket discretionary items. We've previously discussed how our premium products are experiencing lower demand. Overall, our volume outlook for the first half of 2023 aligns with what we observed in the fourth quarter. We see strong agriculture, a balanced industrial sector, a balanced auto aftermarket with potential upside, some turbulence on the consumer side, and continued struggles for high-ticket discretionary items. This volatility is part of why our guidance range is wider for the year. I remain very optimistic about the company as we are making significant improvements and starting from a low baseline, with considerable upside potential. Nonetheless, the variability in the markets gives us time to fine-tune our operations. For the longer-term view of 2023, 2024, and 2025, I maintain a positive outlook. In terms of mergers and acquisitions, we aim for a two-thirds, one-third split between M&A and organic growth. We are focused on acquiring companies that produce proprietary products in durable plastics and related areas. I’ve hinted at how we plan to evaluate our offerings in terms of markets and solutions, which we will discuss further in due time. The majority of our growth strategy will continue to center on acquisitions. Given the current economic volatility and higher interest rates, many financial buyers are stepping back, and being a strategic buyer with a strong balance sheet puts us in an excellent position to grow through acquisitions. While I don’t expect to see rising sale prices for companies, I believe we can secure fair prices for quality businesses, likely with more scale than our prior acquisitions. However, we won’t become overly attached to any one deal or overpay. I still have confidence in our goal of hitting the $2 billion mark in 2026 while maintaining mid-teen EBITDA margins. That plan remains intact, despite the uncertainties we are facing in our end markets over the next couple of quarters. Monica, do you have anything to add?

Monica Vinay, Interim CFO and VP of Investor Relations

Yes. And Lance, I want to remind you that during 2021 and throughout COVID, we experienced a significant surge in the recreational vehicle and marine sectors, as well as in some areas of consumer discretionary spending. Those were exceptionally strong quarters in 2021 and even into early 2022. Currently, things are somewhat unstable, as Mike mentioned, but they are beginning to stabilize. It's just a matter of figuring out where they will settle.

Lance Vitanza, Analyst

There's been a bit of a digestion of the above-average growth we've experienced, possibly a reset on the growth rates, leading to a more normalized growth rate starting in 2024 and beyond. I'm not seeking specific guidance, but that's the impression I'm getting. I believe you are doing everything possible given the conditions of the end markets, which is crucial. Mike, you've addressed most of my questions regarding M&A, but I have one more. If the right deal were to come up today, do you feel you have the operational capacity to integrate another transaction? It's been less than a year since Mohawk, so should we expect any M&A activity to be more likely in the latter half of 2023?

Mike McGaugh, President and CEO

We definitely have the capability to pursue acquisitions. We've spent the past three years establishing a solid process for building our deal pipeline, negotiating favorable deals for our shareholders, and effectively integrating those deals to achieve both cost and growth synergies. Recently, we made acquisitions in distribution and rotational molding, including a facility in Decatur, Georgia. Last year, we executed two acquisitions — one in each of those areas — which allowed us to refine our integration processes. Our team and advisors are prepared, and we are actively discussing potential opportunities, although we will approach them cautiously. The market conditions in 2023 appear favorable for identifying a deal that aligns with our objectives and what we've communicated to our shareholders. I have a lot of confidence in our readiness. With my extensive background in integrations and having brought in experienced personnel, I believe we are in a strong position to continue transforming the company this year.

Lance Vitanza, Analyst

Well, that's great to hear. We look forward to that. We'd love to see you continue to be acquisitive. Obviously, the deals have to make sense as I'm sure that they would. But be great to see the company grow through M&A as well. So with that, thanks guys very much for taking the questions. I’ll just jump back in the queue.

Mike McGaugh, President and CEO

Yes. Thanks, Lance.

Monica Vinay, Interim CFO and VP of Investor Relations

Thanks, Lance.

Operator, Operator

Operator Instructions Our next question is from Steve Barger from KeyCorp. Steve, your line is now open. Please go ahead.

Steve Barger, Analyst

Thanks. Mike, it seems like you've already put a lot of workflow improvements in for sales, purchasing and operations. How much of an incremental change is the Myers operating system going to be? And what kind of results do you expect it can produce?

Mike McGaugh, President and CEO

Yes, Steve, that's a great question. Generally, we would rate ourselves around six out of ten, maybe seven, or sometimes four or five in certain areas. We’ve brought in a lot of external expertise in manufacturing, purchasing, pricing, finance processes, and sales and marketing. However, we need to better integrate and utilize these capabilities. We are approximately halfway to achieving this. The next half focuses on packaging and leveraging these improvements across all our businesses for value creation. As we look to scale with acquisitions, it is crucial to have these processes well-documented and refined. I've brought in many seasoned experts who are very skilled, and we've emphasized the importance of crystallizing these procedures so they can be replicated independently of individual staff. This effort is about ensuring the durability and continuity of our strengths, which are vital to our organization's identity, allowing us to apply them effectively to new acquisitions. So, in summary, we are about halfway to where I believe we should be.

Steve Barger, Analyst

And I know this will be a continual process, but how long does it take to get from halfway to 80% or 90%?

Mike McGaugh, President and CEO

Yes, our focus for 2023 and 2024 is clear. We have a lot of documentation on our plans. As a smaller company, we need to be careful not to take on too much at once, as we don’t want to compromise our quality. We prefer to execute three initiatives well each year rather than spreading ourselves too thin with many more. Our main efforts include solidifying our operating system and implementing a stronger IT infrastructure with updated systems. In addition, we are establishing our M&A technology center to enhance our expertise in mergers and acquisitions. These elements—M&A expertise, the operating system, and IT renewal—will position us for greater success in acquiring companies beyond just plastic and metal products. We believe we have the right team to achieve this. Our goal is to grow from around $1 billion to somewhere between $3 billion and $4 billion or even more. Achieving this growth relies on these three core components, and we plan to discuss our progress in future calls.

Steve Barger, Analyst

Well, since you brought it up, what would you contemplate outside the scope of plastic or metal products?

Mike McGaugh, President and CEO

You know, so if you look at our business, and Steve, if you look at it and we're really more in the storage and handling business. So we make high-performance branded products that move, store and organize. So if we look at our businesses in that lens rather than as a Buckhorn or Ecomills lens, you get some confidence in other things we can do in the storage and handling world or an auto aftermarket. Auto aftermarket, we make and sell high-quality repair and replacement parts for passenger cars, commercial vehicles, heavy equipment. We can broaden that scope. We do some of that. Well, but what else could we do that? And then again, designed and engineered products, designed and engineered solutions. We do a lot in that space on the engineered product side, design product side. What else can we do to bring high-performance value-added products to our customers. So those three silos and Steve, I'll talk more about it in the future, it's exciting. Because it takes all this operational excellence work, we're doing, and it really expands our horizons without getting us into some esoteric end markets. We're really trying to strike the right balance of opening the aperture, but also sticking to our roots and know-how. And we think by taking the operating system, IT updates, ERP update and then an expertise center on M&A, I think those are the three pieces of the ingredients that are really going to help the company fly. I'm really excited about it.

Steve Barger, Analyst

Yes, I'm looking forward to hearing more about that. Your team did a nice job driving the 370 basis points of gross margin expansion from the inflation mitigation efforts. As you think about mix and the consumer products, the trends that you talked about, do you think you can hold gross margin where it was last year? Or is that likely to come down a little bit as you work through the first half of the year? And I think the good question is about the full year, but just as you think about the cadence?

Mike McGaugh, President and CEO

Yes. Monica, would you like to address that?

Monica Vinay, Interim CFO and VP of Investor Relations

Yes, Steve, our focus and goal is to further expand gross margins in 2023, obviously not to the extent that we did in 2022, but we're maintaining prices wherever possible and we'll continue to pursue operational efficiencies to drive further margin expansion.

Mike McGaugh, President and CEO

Yes, Steve, there was some variability in the distribution margins. This was largely due to the recent acquisition of a significant market player, Mohawk, which involves several months of integration of two IT and ERP systems along with a large sales force. Consequently, we experienced a slight increase in our cost of goods, reflected in the 7% EBITDA. However, at the beginning of the year, we announced substantial price increases in the distribution segment, and I anticipate these will positively impact our financials in the first and second quarters. Overall, I feel optimistic about the margins and outlook for distribution. Additionally, in the Material Handling sector, we produce high-quality niche products and maintain a strong reputation and service level, allowing us to sustain our position, particularly as polyethylene prices stabilize. I believe we will continue to see growth in this area.

Steve Barger, Analyst

As my last question, should I expect that Distribution will outgrow this year due to the weakness in the first half? Or could Material Handling recover in the second half and surpass Distribution?

Mike McGaugh, President and CEO

I'll turn to Monica for the details. There are a few uncertainties in those end markets, Steve. I feel fairly optimistic about distribution. Now, Monica, please go ahead.

Monica Vinay, Interim CFO and VP of Investor Relations

Yes. I would say, currently, just based on the choppiness, we're outside of Mohawk, we're looking for distribution to still grow organically in the low single-digit range, low to mid-single, like just like our outlook. Whereas Material Handling is more likely to be comparable to last year, as I said in the remarks.

Steve Barger, Analyst

Alright. Great, thanks.

Mike McGaugh, President and CEO

Thanks, Steve.

Operator, Operator

We currently have no further questions. I will now hand back to our speaker for final comments, Monica Vinay. Please go ahead.

Monica Vinay, Interim CFO and VP of Investor Relations

We appreciate your interest in Myers Industries. Thanks for joining us, and have a great day.

Operator, Operator

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines. Thank you.