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): August 1, 2024
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 communications 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 communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications 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 August 1, 2024, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the second quarter ended June 30, 2024. 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 August 1, 2024, 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 August 1, 2024, the Company issued a press release announcing earnings results for the second quarter ended June 30, 2024. 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 August 1, 2024, 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 August 1, 2024 |
| 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/ Grant E. Fitz | |
| Grant E. Fitz | ||
| Executive Vice President and Chief Financial Officer | ||
| Date: August 1, 2024 |
EX-99.1
Exhibit 99.1
Myers Industries Announces Second Quarter 2024 Results
Strong Signature Systems performance improves second quarter results
Actions taken in the second quarter to reduce costs and leverage productivity gains; executing against previously communicated target of $7M-$9M in annualized cost savings by 2025
Full-year guidance lowered to $1.05 - $1.20 for adjusted earnings per share, primarily due to continued demand pressure in Recreational Vehicle, Marine, and Automotive Aftermarket end markets
August 1, 2024, Akron, Ohio - Myers Industries Inc. (NYSE: MYE), a leading manufacturer of a wide range of polymer and metal products and distributor for tire, wheel, and under- vehicle service industry, today announced results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights
- Net sales of $220.2 million compared with $208.5 million in the prior-year period
- Net Income of $10.3 million, compared with $10.6 million in the prior-year period
- Adjusted EBITDA of $38.9 million, compared with $24.7 million in the prior-year period
- GAAP gross margin of 34.3%, up 150 basis points versus the prior-year period
- Adjusted gross margin of 36.1%, up 320 basis points versus the prior-year period
- GAAP net income per diluted share of $0.28 compared with $0.29 in the prior-year period
- Adjusted earnings per diluted share of $0.39 compared with $0.35 in the prior-year period
- Cash flow provided by operations of $14.3 million and free cash flow of $9.9 million
Myers Industries President and CEO Mike McGaugh commented, “Our second-quarter results reflect the Company’s first full quarter with Signature Systems. This business is benefiting from worldwide investments in Infrastructure and helped drive both sequential and year-over-year revenue growth and margin expansion. Signature’s performance outpaced the demand headwinds in the Recreational Vehicle (RV), Marine, and Automotive Aftermarket end markets."
“We continue to focus on growing our Storage, Handling & Protection portfolio, most notably our four power brands: Akro-Mils, Buckhorn, Scepter, and Signature Systems. We believe our increased participation in the Military and Infrastructure end markets will provide meaningful growth for our Company over the next several years.
At the same time, we are taking actions to reduce costs and increase productivity in the Engineered Solutions and Automotive Aftermarket portfolios. These actions include the consolidation of three distribution centers in our Myers Tire Supply business, as well as today’s announcement of the consolidation of our Atlantic, Iowa, rotational molding facility into our other rotational molding plants in Indiana. We are able to reduce our footprint and reduce our cost structure, due to the productivity gains we’ve achieved. We expect these closures to be completed in 2025 and deliver approximately $5 million in cost savings in 2025 as well.
Our ongoing productivity-improvement and cost-reduction initiatives will help us navigate the cyclical demand conditions in the RV, Marine, and Automotive Aftermarket end markets while positioning the Company favorably for when these conditions revert to historical levels of demand.”
McGaugh concluded, “As a result of continued trough-like demand conditions in these end markets, we believe it is prudent to lower our full-year adjusted earnings per share guidance to a range of $1.05 to $1.20.
Myers’ consistent and disciplined execution of our Three-Horizon strategy and the expansion of our portfolio of branded products enabled us to achieve the highest quarterly adjusted EBITDA margin of the past decade. Despite the near-term demand softness in select end markets, we remain excited about the ongoing transformation of Myers Industries as we execute against our long-term strategy to build a portfolio of businesses with high margin, branded products that Move, Store, and Protect.”
Second Quarter 2024 Financial Summary
| Quarter Ended June 30, | |||
|---|---|---|---|
| (Dollars in thousands, except per share data) | 2024 | 2023 | % Inc<br>(Dec) |
| Net sales | $220,236 | $208,453 | 5.7% |
| Gross profit | $75,517 | $68,410 | 10.4% |
| Gross margin | 34.3% | 32.8% | |
| Operating income | $23,728 | $16,142 | 47.0% |
| Net income | $10,279 | $10,605 | (3.1)% |
| Net income per diluted share | $0.28 | $0.29 | (3.4)% |
| Adjusted operating income | $28,826 | $19,027 | 51.5% |
| Adjusted net income | $14,561 | $12,928 | 12.6% |
| Adjusted earnings per diluted share | $0.39 | $0.35 | 11.4% |
| Adjusted EBITDA | $38,893 | $24,704 | 57.4% |
Net sales were $220.2 million, an increase of $11.8 million, or 5.7%, compared with $208.5 million for the second quarter of 2023. The increase in net sales was driven by contributions from the recent acquisition of Signature Systems, partially offset by lower pricing and volumes in both the Material Handling and Distribution segments.
Gross profit increased $7.1 million, or 10.4%, to $75.5 million, driven by performance at Signature Systems, favorable product mix and lower material costs, partially offset by lower pricing and volume, as well as adjusting items related to acquisition and restructuring expenses. Gross margin improved 150 basis points to 34.3% compared with 32.8% for the second quarter of 2023. On an adjusted basis, gross profit increased 320 basis points to 36.1% from 32.9%. Selling, general and administrative expenses decreased $0.7 million year-over-year, or 1.3%, to $51.7 million. SG&A as a percentage of sales decreased to 23.5%, compared with 25.8% in the first quarter of 2024 and 25.1% in the same period last year, driven in part by lower incentive compensation accruals, reflecting Myers’ full-year outlook and cost-saving initiatives. Net income per diluted share was $0.28, compared with $0.29 for the second quarter of 2023. Adjusted earnings per diluted share were $0.39, compared with $0.35 for the second quarter of 2023.
Second Quarter 2024 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
| Net Sales | Op Income | Adj EBITDA | |||
|---|---|---|---|---|---|
| Q2 2024 Results | $166.0 | 28.7 | 41.5 | ||
| Q2 2023 Results | $143.3 | 24.8 | 29.9 | ||
| $ Increase (decrease) vs prior year | $22.7 | 3.9 | 11.6 | ||
| % Increase (decrease) vs prior year | 15.9% | 15.6% | bps | 39.0% | bps |
All values are in US Dollars.
Items in this table may not recalculate due to rounding
Net sales for the Material Handling segment were $166.0 million, an increase of $22.7 million, or 15.9%, compared with $143.3 million for the second quarter of 2023. Sales from the addition of Signature Systems were partly offset by decreases, primarily in Recreational Vehicle and Marine, but also Food & Beverage and Consumer end markets.
Operating income increased 15.6% to $28.7 million, compared with $24.8 million in the second quarter of 2023. Operating income margin of 17.3% was flat compared with the second quarter of 2023. Adjusted EBITDA increased 39.0% to $41.5 million, compared with $29.9 million in the second quarter of 2023. SG&A expenses increased year-over-year, primarily due to incremental SG&A from Signature, partially offset by lower expenses for professional services and incentive compensation. Adjusted EBITDA margin improved by 420 basis points, primarily attributed to the Signature acquisition, partially offset by lower sales volume and pricing in the legacy business.
Distribution
| Net Sales | Op Income | Adj EBITDA | |||
|---|---|---|---|---|---|
| Q2 2024 Results | $54.3 | 2.2 | 3.8 | ||
| Q2 2023 Results | $65.2 | 3.4 | 4.7 | ||
| $ Increase (decrease) vs prior year | ($10.9) | (1.2) | (0.9) | ||
| % Increase (decrease) vs prior year | (16.7)% | (35.9)% | bps | (20.1)% | bps |
All values are in US Dollars.
Items in this table may not recalculate due to rounding
Operating income decreased $1.2 million to $2.2 million, compared with $3.4 million for the second quarter of 2023. Adjusted EBITDA decreased 20.1% to $3.8 million, compared with $4.7 million in the second quarter of 2023. The decrease in operating income and adjusted EBITDA was primarily due to lower volume and pricing, offset partially by favorable sales mix and material costs. SG&A expenses decreased year-over-year, primarily due to lower payroll costs and lower variable selling expenses. The Distribution segment's operating income margin was 4.0% compared with 5.2% for the second quarter of 2023. The Distribution segment’s adjusted EBITDA margin was 6.9%, compared with 7.2% for the second quarter of 2023. The Distribution Segment continues to implement pricing and cost actions to counter cost inflation and improve margin.
Balance Sheet & Cash Flow
As of June 30, 2024, the Company’s cash on hand totaled $37.3 million. Total debt as of June 30, 2024, was $409.0 million. Under the terms of the Company’s loan agreement, its net leverage ratio was 2.6x and it had $231.4 million of availability under its revolving credit facility as of June 30, 2024. For the second quarter of 2024, cash flow provided by operations was $14.3 million and free cash flow was $9.9 million, compared with cash flow provided by operations of $22.9 million and free cash flow of $16.7 million for the second quarter of 2023. The decrease in free cash flow was driven primarily by increased interest expense and investment in working capital, partially offset by contributions from Signature. Capital expenditures for the second quarter of 2024 were $4.4 million, compared with $6.1 million for the second quarter of 2023.
2024 Outlook
Based on current exchange rates, market outlook and business forecast, the Company is providing the following outlook for fiscal 2024:
- Net sales growth of 5% to 10%
- Net income per diluted share in the range of $0.76 to $0.91
- Adjusted earnings per diluted share in the range of $1.05 to $1.20
- Capital expenditures in the range of $30 million to $35 million
- Effective tax rate to approximate 26%
Myers will continue to monitor market conditions and provide updates throughout the year.
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on Thursday, August 1, 2024, at 8:30 a.m. ET. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.netroadshow.com/events/login?show=ca1ab624&confId=68382. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (U.S. Local) 1-929-458-6194 or (U.S. Toll-Free) 1-866-813-9403 Access Code: 408754.
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross margin, adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.
About Myers Industries
Myers Industries Inc., based in Akron, Ohio, is a manufacturer of sustainable plastic and metal products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel, and under-vehicle service industry in the United States. Visit www.myersindustries.com to learn more.
Caution on Forward-Looking Statements
Statements in this release include “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company’s actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements.
Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.
Contact: Meghan Beringer, Senior Director Investor Relations, 252-536-5651
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 | Six Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||
| Net sales | $ | 220,236 | $ | 208,453 | $ | 427,338 | $ | 424,192 | ||
| Cost of sales | 144,719 | 140,043 | 287,552 | 284,717 | ||||||
| Gross profit | 75,517 | 68,410 | 139,786 | 139,475 | ||||||
| Selling, general and administrative expenses | 51,661 | 52,351 | 105,118 | 104,432 | ||||||
| (Gain) loss on disposal of fixed assets | 128 | (83 | ) | 61 | (56 | ) | ||||
| Operating income (loss) | 23,728 | 16,142 | 34,607 | 35,099 | ||||||
| Interest expense, net | 9,006 | 1,790 | 15,085 | 3,436 | ||||||
| Income (loss) before income taxes | 14,722 | 14,352 | 19,522 | 31,663 | ||||||
| Income tax expense (benefit) | 4,443 | 3,747 | 5,740 | 8,082 | ||||||
| Net income (loss) | $ | 10,279 | $ | 10,605 | $ | 13,782 | $ | 23,581 | ||
| Net income (loss) per common share: | ||||||||||
| Basic | $ | 0.28 | $ | 0.29 | $ | 0.37 | $ | 0.64 | ||
| Diluted | $ | 0.28 | $ | 0.29 | $ | 0.37 | $ | 0.64 | ||
| Weighted average common shares outstanding: | ||||||||||
| Basic | 37,179,658 | 36,761,916 | 37,043,913 | 36,663,345 | ||||||
| Diluted | 37,312,394 | 36,892,177 | 37,257,302 | 36,874,084 |
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
| June 30, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Assets | ||||
| Current Assets | ||||
| Cash | $ | 37,345 | $ | 30,290 |
| Trade accounts receivable, net | 129,775 | 113,907 | ||
| Other accounts receivable, net | 9,050 | 14,726 | ||
| Inventories, net | 105,796 | 90,844 | ||
| Other current assets | 13,577 | 6,854 | ||
| Total Current Assets | 295,543 | 256,621 | ||
| Property, plant, & equipment, net | 135,251 | 107,933 | ||
| Right of use asset - operating leases | 31,751 | 27,989 | ||
| Goodwill and intangible assets, net | 474,685 | 140,521 | ||
| Deferred income taxes | 209 | 209 | ||
| Other assets | 14,194 | 8,358 | ||
| Total Assets | $ | 951,633 | $ | 541,631 |
| Liabilities & Shareholders' Equity | ||||
| Current Liabilities | ||||
| Accounts payable | $ | 93,097 | $ | 79,050 |
| Accrued expenses | 44,137 | 53,523 | ||
| Operating lease liability - short-term | 6,223 | 5,943 | ||
| Finance lease liability - short-term | 609 | 593 | ||
| Long-term debt - current portion | 19,603 | 25,998 | ||
| Total Current Liabilities | 163,669 | 165,107 | ||
| Long-term debt | 380,450 | 31,989 | ||
| Operating lease liability - long-term | 25,003 | 22,352 | ||
| Finance lease liability - long-term | 8,306 | 8,615 | ||
| Other liabilities | 17,543 | 12,108 | ||
| Deferred income taxes | 62,110 | 8,660 | ||
| Total Shareholders' Equity | 294,552 | 292,800 | ||
| Total Liabilities & Shareholders' Equity | $ | 951,633 | $ | 541,631 |
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Cash Flows From Operating Activities | ||||||||||||
| Net income | $ | 10,279 | $ | 10,605 | $ | 13,782 | $ | 23,581 | ||||
| Adjustments to reconcile net income to net cash<br> provided by (used for) operating activities | ||||||||||||
| Depreciation and amortization | 10,067 | 5,677 | 18,564 | 11,295 | ||||||||
| Amortization of deferred financing costs | 544 | 78 | 775 | 156 | ||||||||
| Amortization of acquisition-related inventory step-up | 1,342 | — | 4,457 | — | ||||||||
| Non-cash stock-based compensation expense | (135 | ) | 2,488 | 547 | 4,392 | |||||||
| (Gain) loss on disposal of fixed assets | 128 | (83 | ) | 61 | (56 | ) | ||||||
| Other | 170 | 3,319 | 164 | 2,492 | ||||||||
| Cash flows provided by (used for) working capital | ||||||||||||
| Accounts receivable - trade and other, net | 248 | 11,915 | 8,212 | 15,096 | ||||||||
| Inventories | (2,145 | ) | 4,048 | (1,959 | ) | (4,730 | ) | |||||
| Prepaid expenses and other current assets | (5,528 | ) | (5,048 | ) | (4,643 | ) | (3,828 | ) | ||||
| Accounts payable and accrued expenses | (623 | ) | (10,147 | ) | (5,343 | ) | 240 | |||||
| Net cash provided by (used for) operating activities | 14,347 | 22,852 | 34,617 | 48,638 | ||||||||
| Cash Flows From Investing Activities | ||||||||||||
| Capital expenditures | (4,417 | ) | (6,125 | ) | (10,124 | ) | (15,216 | ) | ||||
| Acquisition of business, net of cash acquired | 578 | — | (348,312 | ) | (160 | ) | ||||||
| Proceeds from sale of property, plant, and equipment | 9 | 109 | 84 | 142 | ||||||||
| Net cash provided by (used for) investing activities | (3,830 | ) | (6,016 | ) | (358,352 | ) | (15,234 | ) | ||||
| Cash Flows From Financing Activities | ||||||||||||
| Net borrowings (repayments) from revolving credit facility | 4,000 | (9,800 | ) | (7,000 | ) | (15,000 | ) | |||||
| Proceeds from Term Loan A | — | — | 400,000 | — | ||||||||
| Repayments of Term Loan A | (5,000 | ) | — | (5,000 | ) | — | ||||||
| Repayments of senior unsecured notes | — | — | (38,000 | ) | — | |||||||
| Payments on finance lease | (149 | ) | (129 | ) | (292 | ) | (258 | ) | ||||
| Cash dividends paid | (5,022 | ) | (5,022 | ) | (10,367 | ) | (10,296 | ) | ||||
| Proceeds from issuance of common stock | 350 | 437 | 2,758 | 1,569 | ||||||||
| Shares withheld for employee taxes on equity awards | (100 | ) | (34 | ) | (1,974 | ) | (2,033 | ) | ||||
| Deferred financing fees | — | — | (9,172 | ) | — | |||||||
| Net cash provided by (used for) financing activities | (5,921 | ) | (14,548 | ) | 330,953 | (26,018 | ) | |||||
| Foreign exchange rate effect on cash | 19 | 163 | (163 | ) | 167 | |||||||
| Net increase (decrease) in cash | 4,615 | 2,451 | 7,055 | 7,553 | ||||||||
| Beginning Cash | 32,730 | 28,241 | 30,290 | 23,139 | ||||||||
| Ending Cash | $ | 37,345 | $ | 30,692 | $ | 37,345 | $ | 30,692 |
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 166,008 | $ | 54,265 | $ | 220,273 | $ | (37 | ) | $ | 220,236 | ||||
| Net income | 10,279 | |||||||||||||
| Net income margin | 4.7 | % | ||||||||||||
| Gross profit | 75,517 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 2,711 | |||||||||||||
| Add: Acquisition-related inventory step-up | 1,342 | |||||||||||||
| Adjusted gross profit | 79,570 | |||||||||||||
| Gross margin as adjusted | 36.1 | % | ||||||||||||
| Operating income (loss) | 28,701 | 2,179 | 30,880 | (7,152 | ) | 23,728 | ||||||||
| Operating income margin | 17.3 | % | 4.0 | % | 14.0 | % | n/a | 10.8 | % | |||||
| Add: Restructuring expenses and other adjustments | 2,223 | 755 | 2,978 | — | 2,978 | |||||||||
| Add: Acquisition and integration costs | 207 | — | 207 | 471 | 678 | |||||||||
| Add: Acquisition-related inventory step-up | 1,342 | — | 1,342 | — | 1,342 | |||||||||
| Add: Environmental reserves, net(2) | — | — | — | 100 | 100 | |||||||||
| Adjusted operating income (loss)(1) | 32,473 | 2,934 | 35,407 | (6,581 | ) | 28,826 | ||||||||
| Adjusted operating income margin | 19.6 | % | 5.4 | % | 16.1 | % | n/a | 13.1 | % | |||||
| Add: Depreciation and amortization | 9,023 | 830 | 9,853 | 214 | 10,067 | |||||||||
| Adjusted EBITDA | 41,496 | $ | 3,764 | $ | 45,260 | $ | (6,367 | ) | $ | 38,893 | ||||
| Adjusted EBITDA margin | 25.0 | % | 6.9 | % | 20.5 | % | n/a | 17.7 | % | |||||
| (1) Includes gross profit adjustments of 4,053 and SG&A adjustments of 1,045 | ||||||||||||||
| (2) Includes environmental charges of 800 net of probable insurance recoveries of 700 | ||||||||||||||
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 143,295 | $ | 65,173 | $ | 208,468 | $ | (15 | ) | $ | 208,453 | ||||
| Net income | 10,605 | |||||||||||||
| Net income margin | 5.1 | % | ||||||||||||
| Gross profit | 68,410 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 180 | |||||||||||||
| Adjusted gross profit | 68,590 | |||||||||||||
| Gross margin as adjusted | 32.9 | % | ||||||||||||
| Operating income (loss) | 24,828 | 3,398 | 28,226 | (12,084 | ) | 16,142 | ||||||||
| Operating income margin | 17.3 | % | 5.2 | % | 13.5 | % | n/a | 7.7 | % | |||||
| Add: Restructuring expenses and other adjustments | 275 | — | 275 | — | 275 | |||||||||
| Add: Acquisition and integration costs | — | 111 | 111 | — | 111 | |||||||||
| Add: Executive severance costs | — | 410 | 410 | 289 | 699 | |||||||||
| Add: Environmental reserves, net(2) | — | — | — | 1,800 | 1,800 | |||||||||
| Adjusted operating income (loss)(1) | 25,103 | 3,919 | 29,022 | (9,995 | ) | 19,027 | ||||||||
| Adjusted operating income margin | 17.5 | % | 6.0 | % | 13.9 | % | n/a | 9.1 | % | |||||
| Add: Depreciation and amortization | 4,755 | 790 | 5,545 | 132 | 5,677 | |||||||||
| Adjusted EBITDA | 29,858 | $ | 4,709 | $ | 34,567 | $ | (9,863 | ) | $ | 24,704 | ||||
| Adjusted EBITDA margin | 20.8 | % | 7.2 | % | 16.6 | % | n/a | 11.9 | % | |||||
| (1) Includes gross profit adjustments of 180 and SG&A adjustments of 2,705 | ||||||||||||||
| (2) Includes environmental charges of 1,900 net of probable insurance recoveries of 100 |
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 | 318,233 | $ | 109,159 | $ | 427,392 | $ | (54 | ) | $ | 427,338 | ||||
| Net income | 13,782 | |||||||||||||
| Net income margin | 3.2 | % | ||||||||||||
| Gross profit | 139,786 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 2,952 | |||||||||||||
| Add: Acquisition-related inventory step-up | 4,457 | |||||||||||||
| Adjusted gross profit | 147,195 | |||||||||||||
| Gross margin as adjusted | 34.4 | % | ||||||||||||
| Operating income (loss) | 50,957 | 2,784 | 53,741 | (19,134 | ) | 34,607 | ||||||||
| Operating income margin | 16.0 | % | 2.6 | % | 12.6 | % | n/a | 8.1 | % | |||||
| Add: Restructuring expenses and other adjustments | 2,464 | 755 | 3,219 | — | 3,219 | |||||||||
| Add: Acquisition and integration costs | 305 | — | 305 | 3,783 | 4,088 | |||||||||
| Add: Acquisition-related inventory step-up | 4,457 | — | 4,457 | — | 4,457 | |||||||||
| Less: Insurance recovery of legal fees | (702 | ) | — | (702 | ) | — | (702 | ) | ||||||
| Less: Environmental reserves, net(2) | — | — | — | (200 | ) | (200 | ) | |||||||
| Adjusted operating income (loss)(1) | 57,481 | 3,539 | 61,020 | (15,551 | ) | 45,469 | ||||||||
| Adjusted operating income margin | 18.1 | % | 3.2 | % | 14.3 | % | n/a | 10.6 | % | |||||
| Add: Depreciation and amortization | 16,548 | 1,603 | 18,151 | 413 | 18,564 | |||||||||
| Adjusted EBITDA | 74,029 | $ | 5,142 | $ | 79,171 | $ | (15,138 | ) | $ | 64,033 | ||||
| Adjusted EBITDA margin | 23.3 | % | 4.7 | % | 18.5 | % | n/a | 15.0 | % | |||||
| (1) Includes gross profit adjustments of 7,409 and SG&A adjustments of 3,453 | ||||||||||||||
| (2) Includes environmental charges of 800 net of probable insurance recoveries of 1,000 | ||||||||||||||
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 295,857 | $ | 128,358 | $ | 424,215 | $ | (23 | ) | $ | 424,192 | ||||
| Net income | 23,581 | |||||||||||||
| Net income margin | 5.6 | % | ||||||||||||
| Gross profit | 139,475 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 282 | |||||||||||||
| Adjusted gross profit | 139,757 | |||||||||||||
| Gross margin as adjusted | 32.9 | % | ||||||||||||
| Operating income (loss) | 50,179 | 5,635 | 55,814 | (20,715 | ) | 35,099 | ||||||||
| Operating income margin | 17.0 | % | 4.4 | % | 13.2 | % | n/a | 8.3 | % | |||||
| Add: Restructuring expenses and other adjustments | 696 | 179 | 875 | 10 | 885 | |||||||||
| Add: Acquisition and integration costs | — | 220 | 220 | 126 | 346 | |||||||||
| Add: Executive severance costs | — | 410 | 410 | 289 | 699 | |||||||||
| Add: Environmental reserves, net(2) | — | — | — | 2,300 | 2,300 | |||||||||
| Adjusted operating income (loss)(1) | 50,875 | 6,444 | 57,319 | (17,990 | ) | 39,329 | ||||||||
| Adjusted operating income margin | 17.2 | % | 5.0 | % | 13.5 | % | n/a | 9.3 | % | |||||
| Add: Depreciation and amortization | 9,354 | 1,663 | 11,017 | 278 | 11,295 | |||||||||
| Adjusted EBITDA | 60,229 | $ | 8,107 | $ | 68,336 | $ | (17,712 | ) | $ | 50,624 | ||||
| Adjusted EBITDA margin | 20.4 | % | 6.3 | % | 16.1 | % | n/a | 11.9 | % | |||||
| (1) Includes gross profit adjustments of 282 and SG&A adjustments of 3,948 | ||||||||||||||
| (2) Includes environmental charges of 3,500 net of probable insurance recoveries of 1,200 |
All values are in US Dollars.
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)
(Dollars in thousands)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Adjusted operating income (loss) reconciliation: | ||||||||||||
| Operating income (loss) | $ | 23,728 | $ | 16,142 | $ | 34,607 | $ | 35,099 | ||||
| Restructuring expenses and other adjustments | 2,978 | 275 | 3,219 | 885 | ||||||||
| Acquisition and integration costs | 678 | 111 | 4,088 | 346 | ||||||||
| Acquisition-related inventory step-up | 1,342 | — | 4,457 | — | ||||||||
| Insurance recovery of legal fees | — | — | (702 | ) | — | |||||||
| Executive severance costs | — | 699 | — | 699 | ||||||||
| Environmental reserves, net | 100 | 1,800 | (200 | ) | 2,300 | |||||||
| Adjusted operating income (loss) | $ | 28,826 | $ | 19,027 | $ | 45,469 | $ | 39,329 | ||||
| Adjusted EBITDA reconciliation: | ||||||||||||
| Net income (loss) | $ | 10,279 | $ | 10,605 | $ | 13,782 | $ | 23,581 | ||||
| Income tax expense (benefit) | 4,443 | 3,747 | 5,740 | 8,082 | ||||||||
| Interest expense, net | 9,006 | 1,790 | 15,085 | 3,436 | ||||||||
| Operating income (loss) | 23,728 | 16,142 | 34,607 | 35,099 | ||||||||
| Depreciation and amortization | 10,067 | 5,677 | 18,564 | 11,295 | ||||||||
| Restructuring expenses and other adjustments | 2,978 | 275 | 3,219 | 885 | ||||||||
| Acquisition and integration costs | 678 | 111 | 4,088 | 346 | ||||||||
| Acquisition-related inventory step-up | 1,342 | — | 4,457 | — | ||||||||
| Insurance recovery of legal fees | — | — | (702 | ) | — | |||||||
| Executive severance costs | — | 699 | — | 699 | ||||||||
| Environmental reserves, net | 100 | 1,800 | (200 | ) | 2,300 | |||||||
| Adjusted EBITDA | $ | 38,893 | $ | 24,704 | $ | 64,033 | $ | 50,624 | ||||
| Free cash flow reconciliation: | ||||||||||||
| Net cash provided by (used for) operating activities | $ | 14,347 | $ | 22,852 | $ | 34,617 | $ | 48,638 | ||||
| Capital expenditures | (4,417 | ) | (6,125 | ) | (10,124 | ) | (15,216 | ) | ||||
| Free cash flow | $ | 9,930 | $ | 16,727 | $ | 24,493 | $ | 33,422 |
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED)
(Dollars in thousands, except per share data)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Adjusted net income (loss) reconciliation: | ||||||||||||
| Net income (loss) | $ | 10,279 | $ | 10,605 | $ | 13,782 | $ | 23,581 | ||||
| Income tax expense (benefit) | 4,443 | 3,747 | 5,740 | 8,082 | ||||||||
| Income (loss) before income taxes | 14,722 | 14,352 | 19,522 | 31,663 | ||||||||
| Restructuring expenses and other adjustments | 2,978 | 275 | 3,219 | 885 | ||||||||
| Acquisition and integration costs | 678 | 111 | 4,088 | 346 | ||||||||
| Acquisition-related inventory step-up | 1,342 | — | 4,457 | — | ||||||||
| Insurance recovery of legal fees | — | — | (702 | ) | — | |||||||
| Executive severance costs | — | 699 | — | 699 | ||||||||
| Environmental reserves, net | 100 | 1,800 | (200 | ) | 2,300 | |||||||
| Adjusted income (loss) before income taxes | 19,820 | 17,237 | 30,384 | 35,893 | ||||||||
| Income tax expense, as adjusted (1) | (5,259 | ) | (4,309 | ) | (7,900 | ) | (8,973 | ) | ||||
| Adjusted net income (loss) | $ | 14,561 | $ | 12,928 | $ | 22,484 | $ | 26,920 | ||||
| Adjusted earnings per diluted share reconciliation: | ||||||||||||
| Net income (loss) per common diluted share | $ | 0.28 | $ | 0.29 | $ | 0.37 | $ | 0.64 | ||||
| Restructuring expenses and other adjustments | 0.08 | 0.00 | 0.09 | 0.02 | ||||||||
| Acquisition and integration costs | 0.02 | 0.00 | 0.11 | 0.01 | ||||||||
| Acquisition-related inventory step-up | 0.04 | — | 0.12 | — | ||||||||
| Insurance recovery of legal fees | — | — | (0.02 | ) | — | |||||||
| Executive severance costs | — | 0.02 | — | 0.02 | ||||||||
| Environmental reserves, net | 0.00 | 0.05 | (0.01 | ) | 0.06 | |||||||
| Adjusted effective income tax rate impact | (0.03 | ) | (0.01 | ) | (0.06 | ) | (0.02 | ) | ||||
| Adjusted earnings per diluted share(2) | $ | 0.39 | $ | 0.35 | $ | 0.60 | $ | 0.73 | ||||
| Items in this table may not recalculate due to rounding | ||||||||||||
| (1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2024 is 26% and in 2023 is 25%. | ||||||||||||
| (2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period. |
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE
(UNAUDITED)
| Full Year 2024 Guidance | ||||||
|---|---|---|---|---|---|---|
| Low | High | |||||
| GAAP diluted net income per common share | $ | 0.76 | $ | 0.91 | ||
| Add: Net restructuring expenses and other adjustments | 0.14 | 0.14 | ||||
| Add: Acquisition and integration costs (3) | 0.25 | 0.25 | ||||
| Less: Insurance recovery of legal fees | (0.02 | ) | (0.02 | ) | ||
| Less: Environmental reserves, net | (0.01 | ) | (0.01 | ) | ||
| Less: Adjusted effective income tax rate impact (1) | (0.07 | ) | (0.07 | ) | ||
| Adjusted earnings per diluted share (2) | $ | 1.05 | $ | 1.20 | ||
| (1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2024 is 26%. | ||||||
| (2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding. | ||||||
| (3) Includes acquisition-related inventory step-up costs |