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 6, 2025
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 March 6, 2025, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the fourth quarter ended December 31, 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 March 6, 2025, 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 6, 2025, the Company issued a press release announcing earnings results for the fourth quarter ended December 31, 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 March 6, 2025, 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 6, 2025 |
| 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: March 6, 2025 |
EX-99.1
Exhibit 99.1
Myers Industries Announces Fourth Quarter and Full Year 2024 Results
Fourth Quarter Net Sales Increased by 7% Led by Material Handling Business with Margin Expansion
New Leadership Initiates “Focused Transformation” Centered on Optimizing Business Structure, Delivering Results, Improving Cost Competitiveness and Enabling Growth Opportunities. Commits to Deliver Annualized Cost Savings, Primarily in SG&A, of $20 Million by Year-end 2025.
Board Authorizes a New $10 Million 2025 Share Repurchase Program Enabling Meaningful Capital Return to Shareholders while Investing in Growth
March 6, 2025, Akron, Ohio - Myers Industries Inc. (NYSE: MYE), a leading manufacturer of products that protect the world from the ground up, today announced results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights vs. Prior Year
- Net sales of $203.9 million compared with $191.1 million
- Gross margin of 32.3%, up 230 basis points
- GAAP net income per diluted share of $0.11 compared with $0.34
- Adjusted earnings per diluted share of $0.19 compared with $0.29
- Adjusted EBITDA of $27.5 million, compared to $21.8 million
- Additional debt paydown of $13 million in the fourth quarter
Full Year 2024 Financial Highlights vs. Prior Year
- Net sales of $836.3 million compared with $813.1 million
- Gross margin of 32.4%, up 50 basis points
- GAAP net income per diluted share of $0.19 compared with $1.32
- Adjusted earnings per diluted share of $1.04 compared with $1.39
- Adjusted EBITDA of $122.2 million, compared to $98.0 million
- Cash flow provided by operations of $79.3 million and free cash flow of $54.9 million
- Reduced total debt by $26 million since March 31, 2024 after the acquisition of Signature Systems
Myers Industries’ new President and CEO Aaron Schapper commented, “During my first two months with Myers, I have met with many members of our organization and have been impressed with and encouraged by their dedication and desire to drive improvement. There are tremendous opportunities here and I am confident that we will build a brighter future working together. To begin this journey, we are launching a process to refine our strategy to create value and deliver results. We are acting with a sense of urgency to ensure we deliver on our commitments and drive improved results. Going forward, we will prioritize high-value opportunities while implementing a strategic and disciplined cost optimization plan. I am excited about the opportunity we have at Myers to improve our businesses and position the Company for growth.”
Schapper added, “In closing 2024, we reported solid fourth quarter financial results with margin growth led by our Signature and Scepter brands, demonstrating the valuable assets we have within our portfolio. Building on these results, we are launching our 'Focused Transformation' program with a target to implement $20 million of annualized cost savings, primarily in SG&A, by year-end 2025. Equally important, we will conduct a comprehensive review of the Myers portfolio, focusing on where we can add the most value while highlighting the unique differentiators that set us apart from our peers. I look forward to sharing a more detailed plan for performance improvement soon.”
Myers also announced that the Board approved the 2025 Share Repurchase Program under which the Company is authorized to repurchase up to $10 million of common stock. The 2025 Share Repurchase Program replaces the Company’s previously authorized 2013 share repurchase program and becomes effective March 10. Schapper added, “This Program reflects our confidence in the strength of our business and our commitment to return cash to shareholders as part of our disciplined capital allocation framework.”
Fourth Quarter 2024 Financial Summary
| Quarter Ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 2024 | 2023 | % Inc<br>(Dec) | ||||||
| Net sales | $ | 203,876 | $ | 191,077 | 6.7 | % | |||
| Gross profit | $ | 65,889 | $ | 57,232 | 15.1 | % | |||
| Gross margin | 32.3 | % | 30.0 | % | |||||
| Operating income | $ | 14,637 | $ | 18,603 | (21.3 | )% | |||
| Net income | $ | 4,297 | $ | 12,539 | (65.7 | )% | |||
| Net income per diluted share | $ | 0.11 | $ | 0.34 | (67.6 | )% | |||
| Adjusted operating income | $ | 17,637 | $ | 15,893 | 11.0 | % | |||
| Adjusted net income | $ | 7,308 | $ | 10,889 | (32.9 | )% | |||
| Adjusted earnings per diluted share | $ | 0.19 | $ | 0.29 | (34.5 | )% | |||
| Adjusted EBITDA | $ | 27,470 | $ | 21,775 | 26.2 | % |
Net sales were $203.9 million, an increase of $12.8 million, or 6.7%, compared with $191.1 million for the fourth quarter of 2023. The increase in net sales was fueled by contributions from the acquisition of Signature Systems, and consumer fuel can sales, both of which benefited from hurricane recovery efforts, and partially offset by weaker Distribution Segment volumes and lower cyclical seed box sales in our Food and Beverage end market.
Gross profit increased $8.7 million, or 15.1%, to $65.9 million, driven by performance at Signature Systems and favorable product mix, partially offset by lower pricing and volume. Gross margin improved 230 basis points to 32.3% compared with 30.0% for the fourth quarter of 2023. Selling, general and administrative expenses (“SG&A”) were $51.3 million and increased year-over-year, primarily due to incremental SG&A from Signature inclusive of their intangible amortization and insurance recovery that reduced legal fees in the prior year, partially offset by lower incentive compensation. SG&A as a percent of sales was 25.2% vs 20.3% in the prior year.
Fourth Quarter 2024 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
| Net Sales | Op Income | Adj EBITDA | |||
|---|---|---|---|---|---|
| Q4 2024 Results | $152.7 | 25.9 | 34.7 | ||
| Q4 2023 Results | $126.9 | 29.9 | 28.4 | ||
| $ Increase (decrease) vs prior year | $25.8 | (4.0) | 6.3 | ||
| % Increase (decrease) vs prior year | 20.3% | (13.4)% | bps | 22.3% | 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 $152.7 million, an increase of $25.8 million, or 20.3%, compared with $126.9 million for the fourth quarter of 2023. Sales from the addition of Signature Systems were partly offset by cyclical sales declines, primarily in Seed boxes within the Food and Beverage end markets.
Operating income was $25.9 million compared with $29.9 million in the fourth quarter of 2023 primarily due to the lower sales volume and pricing in the Buckhorn business, and more than offset by the Signature acquisition. Material Handling’s operating income margin was 17.0% compared with 23.6% in the fourth quarter of 2023 due to SG&A expenses that increased year-over-year, primarily due to incremental SG&A from Signature inclusive of their intangible amortization and insurance recovery that reduced legal fees in the prior year, partially offset by lower incentive compensation. Adjusted EBITDA increased 22.3% to $34.7 million, compared with $28.4 million in the fourth quarter of 2023 primarily attributed to the Signature acquisition, partially offset by higher material costs and lower sales volume and pricing in the legacy business.
Distribution
| Net Sales | Op Income | Adj EBITDA | |||
|---|---|---|---|---|---|
| Q4 2024 Results | $51.2 | (1.6) | (0.3) | ||
| Q4 2023 Results | $64.2 | 0.3 | 1.2 | ||
| $ Increase (decrease) vs prior year | ($13.0) | (1.9) | (1.5) | ||
| % Increase (decrease) vs prior year | (20.2)% | NM | bps | NM | bps |
All values are in US Dollars.
Items in this table may not recalculate due to rounding
Net sales for the Distribution segment were $51.2 million, a decrease of $13.0 million, or 20.2%, compared with $64.2 million for the fourth quarter of 2023. The decrease was primarily driven by lower volume and pricing.
Operating income decreased $1.9 million to $(1.6) million, compared with $0.3 million for the fourth quarter of 2023. Adjusted EBITDA decreased to $(0.3) million, compared with $1.2 million in the fourth quarter of 2023. The decrease in operating income and adjusted EBITDA was primarily due to lower volume and pricing. SG&A expenses decreased year-over-year, primarily due to lower payroll costs. The Distribution segment's operating income margin was (3.0)% compared with 0.5% for the fourth quarter of 2023. The Distribution segment’s adjusted EBITDA margin was (0.6)%, compared with 1.8% for the fourth quarter of 2023.
Full Year 2024 Financial Summary
| Year Ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 2024 | 2023 | % Inc<br>(Dec) | ||||||
| Net sales | $ | 836,281 | $ | 813,067 | 2.9 | % | |||
| Gross profit | $ | 270,805 | $ | 259,086 | 4.5 | % | |||
| Gross margin | 32.4 | % | 31.9 | % | |||||
| Operating income | $ | 44,480 | $ | 72,405 | (38.6 | )% | |||
| Net income | $ | 7,201 | $ | 48,867 | (85.3 | )% | |||
| Net income per diluted share | $ | 0.19 | $ | 1.32 | (85.6 | )% | |||
| Adjusted operating income | $ | 83,645 | $ | 75,261 | 11.1 | % | |||
| Adjusted net income | $ | 39,004 | $ | 51,684 | (24.5 | )% | |||
| Adjusted earnings per diluted share | $ | 1.04 | $ | 1.39 | (25.2 | )% | |||
| Adjusted EBITDA | $ | 122,238 | $ | 98,047 | 24.7 | % |
Net sales were $836.3 million, an increase of $23.2 million, or 2.9%, compared with $813.1 million for full year 2023. The increase in net sales was driven by contributions from the acquisition of Signature Systems, partially offset by lower volumes and pricing in both the Material Handling and Distribution segments.
Gross profit increased $11.7 million, or 4.5%, to $270.8 million, driven by performance at Signature Systems and favorable product mix, partially offset by lower volume and pricing as well as the impact from acquisition-related inventory step-up amortization, higher costs of restructuring and unfavorable cost productivity. Gross margin improved 50 basis points to 32.4% compared with 31.9% full year 2023. SG&A expenses were $204.1 million, an increase of $17.2 million, primarily due to the addition of Signature and partially offset by lower compensation expenses. SG&A as a percent of sales was 24.4% vs 23.0% in the prior year due to costs related to the acquisition. The company also recorded a $22.0 million non-cash goodwill impairment charge in the third quarter for the full carrying value of goodwill
related to prior rotational molding acquisitions.
Full Year 2024 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
| Net Sales | Op Income | Adj EBITDA | |||
|---|---|---|---|---|---|
| Full Year 2024 Results | $621.7 | 77.8 | 142.2 | ||
| Full Year 2023 Results | $555.3 | 100.1 | 113.8 | ||
| $ Increase (decrease) vs prior year | $66.4 | (22.3) | 28.4 | ||
| % Increase (decrease) vs prior year | 12.0% | (22.3)% | bps | 25.0% | 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 $621.7 million, an increase of $66.4 million, or 12.0%, compared with $555.3 million in 2023. Sales from the addition of Signature Systems were partly offset by decreased volumes and lower pricing. Operating income was $77.8 million compared with $100.1 million in 2023. The decline was primarily driven by lower pricing and volume as well as a $22.0 million non-cash goodwill impairment in the third quarter, partially offset by the Signature acquisition. Material Handling’s operating income margin was 12.5%, compared with 18.0% in 2023. Adjusted EBITDA increased 25.0% to $142.2 million, compared with $113.8 million in 2023. SG&A expenses increased year-over-year, primarily due to incremental SG&A from Signature inclusive of their intangible amortization and insurance recovery that reduced legal fees in the prior year, partially offset by lower incentive compensation. Adjusted EBITDA margin improved by 240 basis points, primarily attributed to the Signature acquisition, partially offset by higher material costs and lower sales volume and pricing in the legacy business.
Distribution
| Net Sales | Op Income | Adj EBITDA | |||
|---|---|---|---|---|---|
| Full Year 2024 Results | $214.8 | 3.4 | 8.0 | ||
| Full Year 2023 Results | $257.9 | 11.0 | 15.9 | ||
| $ Increase (decrease) vs prior year | ($43.1) | (7.6) | (7.9) | ||
| % Increase (decrease) vs prior year | (16.7)% | (69.3)% | bps | (49.5)% | bps |
All values are in US Dollars.
Items in this table may not recalculate due to rounding
Net sales for the Distribution segment were $214.8 million, a decrease of $43.1 million, or 16.7%, compared with $257.9 million in the prior year. The decrease was primarily driven by lower volume as well as slightly lower pricing. Operating income decreased $7.6 million to $3.4 million, compared with $11.0 million for full-year 2023. Adjusted EBITDA decreased to $8.0 million, compared with $15.9 million in 2023. The decrease in operating income and adjusted EBITDA was primarily due to lower volume and pricing. SG&A expenses decreased year-over-year, primarily due to lower incentive costs. The Distribution segment's operating income margin was 1.6% compared with 4.3% for 2023, and adjusted EBITDA margin was 3.7%, compared with 6.2% in the prior year.
Balance Sheet & Cash Flow
As of December 31, 2024, the Company’s cash on hand totaled $32.2 million and the Company’s total debt was $383.6 million. Debt reduction continues to be a capital allocation priority for the Company. The Company reduced its total debt by $26 million since March 31, 2024, which was the quarter that Signature Systems was acquired, and Myers recapitalized the Company in order to complete the acquisition. Under the terms of the Company’s loan agreement, its net leverage ratio was 2.7x with $244.7 million of availability under its revolving credit facility as of December 31, 2024.
For the fourth quarter of 2024, cash flow provided by operations was $27.3 million and free cash flow was $20.2 million, compared with cash flow provided by operations of $15.4 million and free cash flow of $11.8 million for the fourth quarter of 2023. The increase in free cash flow was driven primarily by strong accounts receivable collections and inventory reduction. Capital expenditures for the fourth quarter of 2024 were $7.1 million compared with $3.6 million for the fourth quarter of 2023.
For the full year of 2024, cash flow provided by operations was $79.3 million and free cash flow was $54.9 million, compared with cash flow provided by operations of $86.2 million and free cash flow of $63.3 million for the full year of 2023. The decrease in cash flow was driven primarily by reductions in accounts receivable and inventory, partly offset by reductions in accounts payable. Capital expenditures for the full year of 2024 were $24.4 million, compared with $22.9 million for the full year of 2023.
2025 Guidance
Schapper stated "As we launch our 'Focused Transformation' program, we are committed to a culture of accountability and transparency. While we complete an assessment of our business and key strategies with a focus on driving long-term growth, we are temporarily suspending our practice of issuing formal annual guidance until we are able to provide a detailed outlook based upon our completed evaluation. We are encouraged by the overall sales trajectory of our business and confident in our ability to continue driving margin improvement in 2025."
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on Thursday, March 6, 2025, 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=02f7baf5&confId=76932. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (U.S. Local) 1-929-458-6194 or (U.S. Toll-Free) 1-866-813-9403 and use access code 461896.
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 | Year Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||
| Net sales | $ | 203,876 | $ | 191,077 | $ | 836,281 | $ | 813,067 | |||
| Cost of sales | 137,987 | 133,845 | 565,476 | 553,981 | |||||||
| Gross profit | 65,889 | 57,232 | 270,805 | 259,086 | |||||||
| Selling, general and administrative expenses | 51,304 | 38,746 | 204,108 | 186,876 | |||||||
| (Gain) loss on disposal of fixed assets | (52 | ) | (117 | ) | 201 | (195 | ) | ||||
| Impairment charges | — | — | 22,016 | — | |||||||
| Operating income (loss) | 14,637 | 18,603 | 44,480 | 72,405 | |||||||
| Interest expense, net | 7,761 | 1,374 | 30,937 | 6,349 | |||||||
| Income (loss) before income taxes | 6,876 | 17,229 | 13,543 | 66,056 | |||||||
| Income tax expense (benefit) | 2,579 | 4,690 | 6,342 | 17,189 | |||||||
| Net income (loss) | $ | 4,297 | $ | 12,539 | $ | 7,201 | $ | 48,867 | |||
| Net income (loss) per common share: | |||||||||||
| Basic | $ | 0.12 | $ | 0.34 | $ | 0.19 | $ | 1.33 | |||
| Diluted | $ | 0.11 | $ | 0.34 | $ | 0.19 | $ | 1.32 | |||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 37,255,837 | 36,840,253 | 37,141,030 | 36,744,560 | |||||||
| Diluted | 37,444,040 | 37,142,056 | 37,403,518 | 37,095,568 |
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
| December 31, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Assets | ||||
| Current Assets | ||||
| Cash | $ | 32,222 | $ | 30,290 |
| Trade accounts receivable, net | 109,372 | 113,907 | ||
| Other accounts receivable, net | 12,654 | 14,726 | ||
| Inventories, net | 97,001 | 90,844 | ||
| Other current assets | 8,058 | 6,854 | ||
| Total Current Assets | 259,307 | 256,621 | ||
| Property, plant, & equipment, net | 137,564 | 107,933 | ||
| Right of use asset - operating leases | 30,561 | 27,989 | ||
| Goodwill and intangible assets, net | 421,853 | 140,521 | ||
| Deferred income taxes | 205 | 209 | ||
| Other assets | 11,325 | 8,358 | ||
| Total Assets | $ | 860,815 | $ | 541,631 |
| Liabilities & Shareholders' Equity | ||||
| Current Liabilities | ||||
| Accounts payable | $ | 71,049 | $ | 79,050 |
| Accrued expenses | 49,196 | 53,523 | ||
| Operating lease liability - short-term | 6,597 | 5,943 | ||
| Finance lease liability - short-term | 621 | 593 | ||
| Long-term debt - current portion | 19,649 | 25,998 | ||
| Total Current Liabilities | 147,112 | 165,107 | ||
| Long-term debt | 355,310 | 31,989 | ||
| Operating lease liability - long-term | 23,700 | 22,352 | ||
| Finance lease liability - long-term | 7,994 | 8,615 | ||
| Other liabilities | 15,303 | 12,108 | ||
| Deferred income taxes | 33,884 | 8,660 | ||
| Total Shareholders' Equity | 277,512 | 292,800 | ||
| Total Liabilities & Shareholders' Equity | $ | 860,815 | $ | 541,631 |
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
| Quarter Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Cash Flows From Operating Activities | ||||||||||||
| Net income (loss) | $ | 4,297 | $ | 12,539 | $ | 7,201 | $ | 48,867 | ||||
| Adjustments to reconcile net income (loss) to net cash<br> provided by (used for) operating activities | ||||||||||||
| Depreciation and amortization | 9,833 | 5,882 | 38,593 | 22,786 | ||||||||
| Amortization of deferred financing costs | 599 | 79 | 1,917 | 313 | ||||||||
| Amortization of acquisition-related inventory step-up | — | — | 4,457 | — | ||||||||
| Non-cash stock-based compensation expense | 923 | 1,593 | 1,660 | 6,671 | ||||||||
| (Gain) loss on disposal of fixed assets | (52 | ) | (117 | ) | 201 | (195 | ) | |||||
| Impairment charges | — | — | 22,016 | — | ||||||||
| Deferred taxes | (6,048 | ) | 1,039 | (6,048 | ) | 1,039 | ||||||
| Other | (847 | ) | (1,529 | ) | (297 | ) | 944 | |||||
| Cash flows provided by (used for) working capital | ||||||||||||
| Accounts receivable - trade and other, net | 11,176 | (11,108 | ) | 26,822 | 2,656 | |||||||
| Inventories | 7,612 | 5,535 | 6,227 | 2,630 | ||||||||
| Prepaid expenses and other current assets | 1,143 | 2,204 | (525 | ) | 151 | |||||||
| Accounts payable and accrued expenses | (1,288 | ) | (717 | ) | (22,932 | ) | 310 | |||||
| Net cash provided by (used for) operating activities | 27,348 | 15,400 | 79,292 | 86,172 | ||||||||
| Cash Flows From Investing Activities | ||||||||||||
| Capital expenditures | (7,133 | ) | (3,563 | ) | (24,435 | ) | (22,855 | ) | ||||
| Acquisition of business, net of cash acquired | — | — | (348,312 | ) | (160 | ) | ||||||
| Proceeds from sale of property, plant, and equipment | 130 | 116 | 242 | 258 | ||||||||
| Net cash provided by (used for) investing activities | (7,003 | ) | (3,447 | ) | (372,505 | ) | (22,757 | ) | ||||
| Cash Flows From Financing Activities | ||||||||||||
| Net borrowings (repayments) from revolving credit facility | (5,000 | ) | (2,000 | ) | (20,000 | ) | (36,000 | ) | ||||
| Proceeds from Term Loan A | — | — | 400,000 | — | ||||||||
| Repayments of Term Loan A | (8,000 | ) | — | (18,000 | ) | — | ||||||
| Repayments of senior unsecured notes | — | — | (38,000 | ) | — | |||||||
| Payments on finance lease | (151 | ) | (139 | ) | (593 | ) | (542 | ) | ||||
| Cash dividends paid | (5,040 | ) | (4,974 | ) | (20,432 | ) | (20,240 | ) | ||||
| Proceeds from issuance of common stock | 289 | 390 | 3,342 | 2,338 | ||||||||
| Shares withheld for employee taxes on equity awards | (23 | ) | (17 | ) | (2,050 | ) | (2,072 | ) | ||||
| Deferred financing fees | — | — | (9,172 | ) | — | |||||||
| Net cash provided by (used for) financing activities | (17,925 | ) | (6,740 | ) | 295,095 | (56,516 | ) | |||||
| Foreign exchange rate effect on cash | 92 | 309 | 50 | 252 | ||||||||
| Net increase (decrease) in cash | 2,512 | 5,522 | 1,932 | 7,151 | ||||||||
| Beginning Cash | 29,710 | 24,768 | 30,290 | 23,139 | ||||||||
| Ending Cash | $ | 32,222 | $ | 30,290 | $ | 32,222 | $ | 30,290 |
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 | 152,704 | $ | 51,225 | $ | 203,929 | $ | (53 | ) | $ | 203,876 | ||||
| Net income | 4,297 | |||||||||||||
| Net income margin | 2.1 | % | ||||||||||||
| Gross profit | 65,889 | |||||||||||||
| Less: Restructuring expenses and other adjustments | (157 | ) | ||||||||||||
| Adjusted gross profit | 65,732 | |||||||||||||
| Gross margin as adjusted | 32.2 | % | ||||||||||||
| Operating income (loss) | 25,924 | (1,552 | ) | 24,372 | (9,735 | ) | 14,637 | |||||||
| Operating income margin | 17.0 | % | -3.0 | % | 12.0 | % | n/a | 7.2 | % | |||||
| Add: Restructuring expenses and other adjustments | 7 | 427 | 434 | 1,854 | 2,288 | |||||||||
| Add: Acquisition and integration costs | — | — | — | 212 | 212 | |||||||||
| Add: Environmental reserves, net(2) | — | — | — | 500 | 500 | |||||||||
| Adjusted operating income (loss)(1) | 25,931 | (1,125 | ) | 24,806 | (7,169 | ) | 17,637 | |||||||
| Adjusted operating income margin | 17.0 | % | -2.2 | % | 12.2 | % | n/a | 8.7 | % | |||||
| Add: Depreciation and amortization | 8,793 | 822 | 9,615 | 218 | 9,833 | |||||||||
| Adjusted EBITDA | 34,724 | $ | (303 | ) | $ | 34,421 | $ | (6,951 | ) | $ | 27,470 | |||
| Adjusted EBITDA margin | 22.7 | % | -0.6 | % | 16.9 | % | n/a | 13.5 | % | |||||
| (1) Includes gross profit adjustments of (157) and SG&A adjustments of 3,157 | ||||||||||||||
| (2) Includes environmental charges of 2,100 net of probable insurance recoveries of 1,600 | ||||||||||||||
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 126,918 | $ | 64,182 | $ | 191,100 | $ | (23 | ) | $ | 191,077 | ||||
| Net income | 12,539 | |||||||||||||
| Net income margin | 6.6 | % | ||||||||||||
| Gross profit | 57,232 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 240 | |||||||||||||
| Adjusted gross profit | 57,472 | |||||||||||||
| Gross margin as adjusted | 30.1 | % | ||||||||||||
| Operating income (loss) | 29,931 | 339 | 30,270 | (11,667 | ) | 18,603 | ||||||||
| Operating income margin | 23.6 | % | 0.5 | % | 15.8 | % | n/a | 9.7 | % | |||||
| Add: Restructuring expenses and other adjustments | 231 | 61 | 292 | — | 292 | |||||||||
| Add: Acquisition and integration costs | — | 79 | 79 | 2,619 | 2,698 | |||||||||
| Less: Insurance recovery of legal fees(3) | (6,700 | ) | — | (6,700 | ) | — | (6,700 | ) | ||||||
| Add: Environmental reserves, net(2) | — | — | — | 1,000 | 1,000 | |||||||||
| Adjusted operating income (loss)(1) | 23,462 | 479 | 23,941 | (8,048 | ) | 15,893 | ||||||||
| Adjusted operating income margin | 18.5 | % | 0.7 | % | 12.5 | % | n/a | 8.3 | % | |||||
| Add: Depreciation and amortization | 4,922 | 692 | 5,614 | 268 | 5,882 | |||||||||
| Adjusted EBITDA | 28,384 | $ | 1,171 | $ | 29,555 | $ | (7,780 | ) | $ | 21,775 | ||||
| Adjusted EBITDA margin | 22.4 | % | 1.8 | % | 15.5 | % | n/a | 11.4 | % | |||||
| (1) Includes gross profit adjustments of 240 and SG&A adjustments of (2,950) | ||||||||||||||
| (2) Includes environmental charges of 2,700 net of probable insurance recoveries of 1,700 | ||||||||||||||
| (3) Includes total insurance recovery of 10,000 net of recoverable expenses incurred in the current year of 3,300 |
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 | 621,655 | $ | 214,768 | $ | 836,423 | $ | (142 | ) | $ | 836,281 | ||||
| Net income | 7,201 | |||||||||||||
| Net income margin | 0.9 | % | ||||||||||||
| Gross profit | 270,805 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 4,006 | |||||||||||||
| Add: Acquisition-related inventory step-up | 4,457 | |||||||||||||
| Adjusted gross profit | 279,268 | |||||||||||||
| Gross margin as adjusted | 33.4 | % | ||||||||||||
| Operating income (loss) | 77,767 | 3,363 | 81,130 | (36,650 | ) | 44,480 | ||||||||
| Operating income margin | 12.5 | % | 1.6 | % | 9.7 | % | n/a | 5.3 | % | |||||
| Add: Executive severance costs | — | — | — | 1,405 | 1,405 | |||||||||
| Add: Restructuring expenses and other adjustments | 3,867 | 1,402 | 5,269 | 2,271 | 7,540 | |||||||||
| Add: Acquisition and integration costs | 305 | — | 305 | 4,344 | 4,649 | |||||||||
| Add: Acquisition-related inventory step-up | 4,457 | — | 4,457 | — | 4,457 | |||||||||
| Add: Impairment charges | 22,016 | — | 22,016 | — | 22,016 | |||||||||
| Less: Insurance recovery of legal fees | (702 | ) | — | (702 | ) | — | (702 | ) | ||||||
| Less: Environmental reserves, net(2) | — | — | — | (200 | ) | (200 | ) | |||||||
| Adjusted operating income (loss)(1) | 107,710 | 4,765 | 112,475 | (28,830 | ) | 83,645 | ||||||||
| Adjusted operating income margin | 17.3 | % | 2.2 | % | 13.4 | % | n/a | 10.0 | % | |||||
| Add: Depreciation and amortization | 34,499 | 3,248 | 37,747 | 846 | 38,593 | |||||||||
| Adjusted EBITDA | 142,209 | $ | 8,013 | $ | 150,222 | $ | (27,984 | ) | $ | 122,238 | ||||
| Adjusted EBITDA margin | 22.9 | % | 3.7 | % | 18.0 | % | n/a | 14.6 | % | |||||
| (1) Includes gross profit adjustments of 8,463, impairment charges of 22,016 and SG&A adjustments of 8,686 | ||||||||||||||
| (2) Includes environmental charges of 3,100 net of probable insurance recoveries of 3,300 | ||||||||||||||
| Distribution | Segment Total | Corporate & Other | Total | |||||||||||
| Net sales | 555,259 | $ | 257,875 | $ | 813,134 | $ | (67 | ) | $ | 813,067 | ||||
| Net income | 48,867 | |||||||||||||
| Net income margin | 6.0 | % | ||||||||||||
| Gross profit | 259,086 | |||||||||||||
| Add: Restructuring expenses and other adjustments | 829 | |||||||||||||
| Adjusted gross profit | 259,915 | |||||||||||||
| Gross margin as adjusted | 32.0 | % | ||||||||||||
| Operating income (loss) | 100,088 | 10,967 | 111,055 | (38,650 | ) | 72,405 | ||||||||
| Operating income margin | 18.0 | % | 4.3 | % | 13.7 | % | n/a | 8.9 | % | |||||
| Add: Executive severance costs | — | 410 | 410 | 289 | 699 | |||||||||
| Add: Restructuring expenses and other adjustments | 1,456 | 914 | 2,370 | 166 | 2,536 | |||||||||
| Add: Acquisition and integration costs | — | 376 | 376 | 2,745 | 3,121 | |||||||||
| Less: Insurance recovery of legal fees(3) | (6,700 | ) | — | (6,700 | ) | — | (6,700 | ) | ||||||
| Add: Environmental reserves, net(2) | — | — | — | 3,200 | 3,200 | |||||||||
| Adjusted operating income (loss)(1) | 94,844 | 12,667 | 107,511 | (32,250 | ) | 75,261 | ||||||||
| Adjusted operating income margin | 17.1 | % | 4.9 | % | 13.2 | % | n/a | 9.3 | % | |||||
| Add: Depreciation and amortization | 18,917 | 3,197 | 22,114 | 672 | 22,786 | |||||||||
| Adjusted EBITDA | 113,761 | $ | 15,864 | $ | 129,625 | $ | (31,578 | ) | $ | 98,047 | ||||
| Adjusted EBITDA margin | 20.5 | % | 6.2 | % | 15.9 | % | n/a | 12.1 | % | |||||
| (1) Includes gross profit adjustments of 829 and SG&A adjustments of 2,027 | ||||||||||||||
| (2) Includes environmental charges of 6,500 net of probable insurance recoveries of 3,300 | ||||||||||||||
| (3) Includes total insurance recovery of 10,000 net of recoverable expenses incurred in the current year of 3,300 |
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 December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Adjusted operating income (loss) reconciliation: | ||||||||||||
| Operating income (loss) | $ | 14,637 | $ | 18,603 | $ | 44,480 | $ | 72,405 | ||||
| Executive severance costs | — | — | 1,405 | 699 | ||||||||
| Restructuring expenses and other adjustments | 2,288 | 292 | 7,540 | 2,536 | ||||||||
| Acquisition and integration costs | 212 | 2,698 | 4,649 | 3,121 | ||||||||
| Acquisition-related inventory step-up | — | — | 4,457 | — | ||||||||
| Impairment charges | — | — | 22,016 | — | ||||||||
| Insurance recovery of legal fees | — | (6,700 | ) | (702 | ) | (6,700 | ) | |||||
| Environmental reserves, net | 500 | 1,000 | (200 | ) | 3,200 | |||||||
| Adjusted operating income (loss) | $ | 17,637 | $ | 15,893 | $ | 83,645 | $ | 75,261 | ||||
| Adjusted EBITDA reconciliation: | ||||||||||||
| Net income (loss) | $ | 4,297 | $ | 12,539 | $ | 7,201 | $ | 48,867 | ||||
| Income tax expense (benefit) | 2,579 | 4,690 | 6,342 | 17,189 | ||||||||
| Interest expense, net | 7,761 | 1,374 | 30,937 | 6,349 | ||||||||
| Operating income (loss) | 14,637 | 18,603 | 44,480 | 72,405 | ||||||||
| Depreciation and amortization | 9,833 | 5,882 | 38,593 | 22,786 | ||||||||
| Executive severance costs | — | — | 1,405 | 699 | ||||||||
| Restructuring expenses and other adjustments | 2,288 | 292 | 7,540 | 2,536 | ||||||||
| Acquisition and integration costs | 212 | 2,698 | 4,649 | 3,121 | ||||||||
| Acquisition-related inventory step-up | — | — | 4,457 | — | ||||||||
| Impairment charges | — | — | 22,016 | — | ||||||||
| Insurance recovery of legal fees | — | (6,700 | ) | (702 | ) | (6,700 | ) | |||||
| Environmental reserves, net | 500 | 1,000 | (200 | ) | 3,200 | |||||||
| Adjusted EBITDA | $ | 27,470 | $ | 21,775 | $ | 122,238 | $ | 98,047 | ||||
| Free cash flow reconciliation: | ||||||||||||
| Net cash provided by (used for) operating activities | $ | 27,348 | $ | 15,400 | $ | 79,292 | $ | 86,172 | ||||
| Capital expenditures | (7,133 | ) | (3,563 | ) | (24,435 | ) | (22,855 | ) | ||||
| Free cash flow | $ | 20,215 | $ | 11,837 | $ | 54,857 | $ | 63,317 |
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 December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Adjusted net income (loss) reconciliation: | ||||||||||||
| Net income (loss) | $ | 4,297 | $ | 12,539 | $ | 7,201 | $ | 48,867 | ||||
| Income tax expense (benefit) | 2,579 | 4,690 | 6,342 | 17,189 | ||||||||
| Income (loss) before income taxes | 6,876 | 17,229 | 13,543 | 66,056 | ||||||||
| Executive severance costs | — | — | 1,405 | 699 | ||||||||
| Restructuring expenses and other adjustments | 2,288 | 292 | 7,540 | 2,536 | ||||||||
| Acquisition and integration costs | 212 | 2,698 | 4,649 | 3,121 | ||||||||
| Acquisition-related inventory step-up | — | — | 4,457 | — | ||||||||
| Impairment charges | — | — | 22,016 | — | ||||||||
| Insurance recovery of legal fees | — | (6,700 | ) | (702 | ) | (6,700 | ) | |||||
| Environmental reserves, net | 500 | 1,000 | (200 | ) | 3,200 | |||||||
| Adjusted income (loss) before income taxes | 9,876 | 14,519 | 52,708 | 68,912 | ||||||||
| Income tax expense, as adjusted (1) | (2,568 | ) | (3,630 | ) | (13,704 | ) | (17,228 | ) | ||||
| Adjusted net income (loss) | $ | 7,308 | $ | 10,889 | $ | 39,004 | $ | 51,684 | ||||
| Adjusted earnings per diluted share reconciliation: | ||||||||||||
| Net income (loss) per common diluted share | $ | 0.11 | $ | 0.34 | $ | 0.19 | $ | 1.32 | ||||
| Executive severance costs | — | — | 0.04 | 0.02 | ||||||||
| Restructuring expenses and other adjustments | 0.06 | 0.00 | 0.20 | 0.06 | ||||||||
| Acquisition and integration costs | 0.01 | 0.07 | 0.13 | 0.08 | ||||||||
| Acquisition-related inventory step-up | — | — | 0.12 | — | ||||||||
| Impairment charges | — | — | 0.59 | — | ||||||||
| Insurance recovery of legal fees | — | (0.18 | ) | (0.02 | ) | (0.18 | ) | |||||
| Environmental reserves, net | 0.01 | 0.03 | (0.01 | ) | 0.09 | |||||||
| Adjusted effective income tax rate impact | 0.00 | 0.03 | (0.20 | ) | (0.00 | ) | ||||||
| Adjusted earnings per diluted share(2) | $ | 0.19 | $ | 0.29 | $ | 1.04 | $ | 1.39 | ||||
| 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. |