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Myers Industries Announces Third Consecutive Quarter of Record Results

Strong Execution Drives Record Top and Bottom Line Results

Reiterates Full Year Fiscal 2022 Revenue Outlook and Raises Earnings Outlook

Myers Industries, Inc. (NYSE: MYE), a leading manufacturer of a wide range of polymer and metal products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial Highlights

  • Net sales increased 14% to $228.1 million, compared with $200.1 million for the third quarter of 2021
  • On an organic basis, net sales increased 4% compared with the third quarter of 2021
  • Earnings per diluted share increased 68% to $0.37, compared with $0.22 for the third quarter of 2021
  • Adjusted earnings per diluted share increased 78% to $0.41, compared with $0.23 for the third quarter of 2021
  • Adjusted EBITDA increased 57% to $27.2 million, compared with $17.3 million for the third quarter of 2021
  • Cash flow provided by operations was $16.5 million and free cash flow was $9.8 million, compared with cash flow used for operations of $7.8 million and negative free cash flow of $13.8 million for the third quarter of 2021

Myers Industries' President and CEO Mike McGaugh said, "I'm pleased to report a third consecutive quarter of record performance, highlighted by solid top-line growth, consistent execution by our team, and continued year-over-year margin expansion. During the third quarter, we made further progress against our 3-horizon strategy. We saw meaningful benefits from our value-based pricing actions and sales and operations process improvements, which mitigated most of the effects of ongoing inflationary and macro-environmental headwinds. Our sustained performance over several quarters, and across a variety of economic conditions, supports our confidence that we can continue to successfully execute on our transformation across future market and economic cycles."

McGaugh continued, "Given the resilience of our business model and another quarter of record results, we are raising our earnings outlook for 2022. We are revising our adjusted EPS range from $1.40 - $1.60 to $1.50 - $1.70. Our net sales expectations remain the same, with growth in the high teens range year-over-year. We are near the successful completion of Horizon One of our strategy and our strategic work to begin execution of Horizon Two is under way. Within that next phase, we expect to broaden our focus around plastic durable goods, as well as adjacencies with competitive moats and large format products."

Third Quarter 2022 Financial Summary

 

 

Quarter Ended September 30,

(Dollars in thousands, except per share data)

 

2022

 

2021

 

% Inc

(Dec)

Net sales

 

$228,065

 

$200,058

 

14.0%

Gross profit

 

$71,648

 

$54,198

 

32.2%

Gross margin

 

31.4%

 

27.1%

 

 

Operating income

 

$19,897

 

$11,817

 

68.4%

Net income:

 

 

 

 

 

 

Net income

 

$13,671

 

$7,903

 

73.0%

Net income per diluted share

 

$0.37

 

$0.22

 

68.2%

 

 

 

 

 

 

 

Adjusted operating income

 

$22,013

 

$12,528

 

75.7%

Adjusted net income:

 

 

 

 

 

 

Net income

 

$15,018

 

$8,489

 

76.9%

Net income per diluted share

 

$0.41

 

$0.23

 

78.3%

Adjusted EBITDA

 

$27,172

 

$17,286

 

57.2%

Net sales were $228.1 million, an increase of $28.0 million, or 14.0%, compared with $200.1 million for the third quarter of 2021, driven by sales increases in both the Material Handling and Distribution segments. Excluding the incremental $19.4 million of net sales from the Trilogy Plastics and Mohawk Rubber acquisitions, organic net sales increased 4.3%. Favorable pricing of 11% was partially offset by a decrease in volume/mix of 6%.

Gross profit increased $17.5 million, or 32.2% to $71.6 million, primarily due to the increased contribution from pricing actions and the Mohawk Rubber and Trilogy Plastics acquisitions, partially offset by a change in sales mix and lower volume. Gross margin was 31.4% compared with 27.1% for the third quarter of 2021. Selling, general and administrative expenses increased $9.2 million, or 21.7% to $51.8 million due to cost inflation, the Mohawk Rubber and Trilogy Plastics acquisitions, higher salaries, commissions and incentive compensation costs and a charge for estimated environmental liabilities. SG&A as a percentage of sales increased to 22.7%, compared with 21.3% in the same period last year. Net income per diluted share was $0.37, compared with $0.22 for the third quarter of 2021. Adjusted earnings per diluted share were $0.41, compared with $0.23 for the third quarter of 2021.

Third Quarter 2022 Segment Results

(Dollar amounts in the segment tables below are reported in millions)

Material Handling

 

Net

Sales

 

Op Income

 

Adj Op

Income

 

Adj Op

Income

Margin

Q3 2022 Results

$155.7

 

$24.0

 

$24.2

 

15.6%

Q3 2021 Results

$149.7

 

$15.1

 

$15.2

 

10.2%

Increase (decrease) vs prior year

4.0%

 

59.0%

 

58.9%

 

+540 bps

Net sales for the Material Handling Segment were $155.7 million, an increase of $6.0 million, or 4.0%, compared with $149.7 million for the third quarter of 2021. Excluding the incremental $2.9 million of net sales from the Trilogy Plastics acquisition, organic net sales increased 2.1%. Organic net sales increases in the food and beverage and industrial markets were partially offset by lower sales in the consumer and recreational vehicle markets. Operating income increased 59.0% to $24.0 million, compared with $15.1 million in 2021. Adjusted operating income increased 58.9% to $24.2 million, compared with $15.2 million in 2021. Contributions from pricing actions more than offset a change in sales mix and lower volume. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to cost inflation, the Trilogy Plastics acquisition, higher salaries, incentive compensation costs and variable selling expenses. The Material Handling Segment’s adjusted operating income margin increased 540 basis points to 15.6%, compared with 10.2% for the third quarter of 2021.

Distribution

 

Net

Sales

 

Op Income

 

Adj Op

Income

 

Adj Op

Income

Margin

Q3 2022 Results

$72.4

 

$4.9

 

$5.2

 

7.1%

Q3 2021 Results

$50.4

 

$4.4

 

$4.4

 

8.7%

Increase vs prior year

43.6%

 

11.9%

 

18.1%

 

-160 bps

Net sales for the Distribution Segment were $72.4 million, an increase of $22.0 million, or 43.6%, compared with $50.4 million for the third quarter of 2021. Excluding the incremental $16.6 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 10.8%. Operating income increased 11.9% to $4.9 million, compared with $4.4 million in 2021. The contribution from higher pricing and increased volume was partially offset by an increase in product costs and higher SG&A expenses year-over-year. The increase in SG&A expenses was primarily the result of cost inflation, the Mohawk Rubber acquisition and higher variable selling and incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 7.1%, compared with 8.7% for the third quarter of 2021.

Balance Sheet & Cash Flow

As of September 30, 2022, the Company’s cash on hand totaled $20.4 million. Total debt as of September 30, 2022 was $107.5 million.

For the third quarter of 2022, cash flow provided by operations was $16.5 million and free cash flow was $9.8 million, compared with cash flow used for operations of $7.8 million and negative free cash flow of $13.8 million for the third quarter of 2021. The increase in cash flow was driven primarily by higher earnings. Capital expenditures for the third quarter of 2022 were $6.7 million, compared with $6.0 million for the third quarter of 2021.

2022 Outlook

Based on current exchange rates, market outlook, and business forecast, the Company updated its outlook for fiscal 2022, and currently forecasts:

  • Net sales growth in the high teens range with approximately 45% of the increase due to the acquisitions of Trilogy Plastics and Mohawk Rubber
  • Diluted EPS in the range of $1.39 to $1.59; adjusted diluted EPS in the range of $1.50 to $1.70
  • Capital expenditures to be in the range of $25 to $28 million
  • Effective tax rate to approximate 26%

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Tuesday, October 27, 2022, at 8:30 a.m. EDT. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://netroadshow.com/events/login?show=8517ab78&confid=43045. Upon registering, each participant will receive access details via email. The live webcast of the conference call can be accessed from the Investor Relations section of the Company's website at www.myersindustries.com. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. Investors can access a replay of the teleconference at (866) 813-9403, (Canada) 1-226-828-7578 or (all other locations) +44-204-525-0658. The Access Code is 834780.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted income (loss) before taxes, adjusted net income, adjusted earnings per diluted share, and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

About Myers Industries

Myers Industries, Inc. is a manufacturer of sustainable plastic and metal products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel, and under-vehicle service industry in the United States. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “will”, “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company's control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: impacts from the COVID-19 pandemic on our business, conditions, customers and capital position; the impact of COVID-19 on local, national and global economic conditions; the effects of various governmental responses to the COVID-19 pandemic, raw material availability, increases in raw material costs, or other production costs; impacts of price increases, risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities, or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; impact of the U.S. elections impacts on the regulatory landscape, capital markets, and responses to and management of the COVID-19 pandemic including further economic stimulus from the federal government; and other important factors detailed previously and from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q. Such reports are available on the Securities and Exchange Commission's public reference facilities and its website at www.sec.gov and on the Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

M-INV

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30,

2022

 

 

September 30,

2021

 

 

September 30,

2022

 

 

September 30,

2021

 

Net sales

 

$

228,065

 

 

$

200,058

 

 

$

686,707

 

 

$

561,856

 

Cost of sales

 

 

156,417

 

 

 

145,860

 

 

 

468,415

 

 

 

402,251

 

Gross profit

 

 

71,648

 

 

 

54,198

 

 

 

218,292

 

 

 

159,605

 

Selling, general and administrative expenses

 

 

51,756

 

 

 

42,531

 

 

 

152,066

 

 

 

122,200

 

(Gain) loss on disposal of fixed assets

 

 

(5

)

 

 

(150

)

 

 

(693

)

 

 

(1,146

)

Operating income (loss)

 

 

19,897

 

 

 

11,817

 

 

 

66,919

 

 

 

38,551

 

Interest expense, net

 

 

1,719

 

 

 

1,056

 

 

 

4,077

 

 

 

3,050

 

Income (loss) before income taxes

 

 

18,178

 

 

 

10,761

 

 

 

62,842

 

 

 

35,501

 

Income tax expense (benefit)

 

 

4,507

 

 

 

2,858

 

 

 

16,003

 

 

 

9,218

 

Net income (loss)

 

$

13,671

 

 

$

7,903

 

 

$

46,839

 

 

$

26,283

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.37

 

 

$

0.22

 

 

$

1.29

 

 

$

0.73

 

Diluted

 

$

0.37

 

 

$

0.22

 

 

$

1.28

 

 

$

0.72

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,472,378

 

 

 

36,195,560

 

 

 

36,383,398

 

 

 

36,103,894

 

Diluted

 

 

36,717,153

 

 

 

36,402,276

 

 

 

36,678,955

 

 

 

36,328,765

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

% Change

 

 

2022

 

 

2021

 

 

% Change

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

155,658

 

 

$

149,664

 

 

 

4.0

%

 

$

505,384

 

 

$

416,784

 

 

 

21.3

%

Distribution

 

 

72,416

 

 

 

50,413

 

 

 

43.6

%

 

$

181,352

 

 

$

145,119

 

 

 

25.0

%

Inter-company Sales

 

 

(9

)

 

 

(19

)

 

 

-

 

 

$

(29

)

 

$

(47

)

 

 

-

 

Total

 

$

228,065

 

 

$

200,058

 

 

 

14.0

%

 

$

686,707

 

 

$

561,856

 

 

 

22.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

23,962

 

 

$

15,066

 

 

 

59.0

%

 

$

83,216

 

 

$

49,895

 

 

 

66.8

%

Distribution

 

 

4,899

 

 

 

4,377

 

 

 

11.9

%

 

 

12,469

 

 

 

10,029

 

 

 

24.3

%

Corporate

 

 

(8,964

)

 

 

(7,626

)

 

 

-

 

 

 

(28,766

)

 

 

(21,373

)

 

 

-

 

Total

 

$

19,897

 

 

$

11,817

 

 

 

68.4

%

 

$

66,919

 

 

$

38,551

 

 

 

73.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

24,222

 

 

$

15,242

 

 

 

58.9

%

 

$

84,127

 

 

$

49,178

 

 

 

71.1

%

Distribution

 

 

5,170

 

 

 

4,377

 

 

 

18.1

%

 

 

12,740

 

 

 

10,556

 

 

 

20.7

%

Corporate

 

 

(7,379

)

 

 

(7,091

)

 

 

-

 

 

 

(25,405

)

 

 

(20,253

)

 

 

-

 

Total

 

$

22,013

 

 

$

12,528

 

 

 

75.7

%

 

$

71,462

 

 

$

39,481

 

 

 

81.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

15.6

%

 

 

10.2

%

 

 

 

 

 

16.6

%

 

 

11.8

%

 

 

 

Distribution

 

 

7.1

%

 

 

8.7

%

 

 

 

 

 

7.0

%

 

 

7.3

%

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

Total

 

 

9.7

%

 

 

6.3

%

 

 

 

 

 

10.4

%

 

 

7.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

28,437

 

 

$

19,379

 

 

 

46.7

%

 

$

97,366

 

 

$

62,552

 

 

 

55.7

%

Distribution

 

 

6,021

 

 

 

4,900

 

 

 

22.9

%

 

 

14,769

 

 

 

12,169

 

 

 

21.4

%

Corporate

 

 

(7,286

)

 

 

(6,993

)

 

 

-

 

 

 

(25,073

)

 

 

(19,952

)

 

 

-

 

Total

 

$

27,172

 

 

$

17,286

 

 

 

57.2

%

 

$

87,062

 

 

$

54,769

 

 

 

59.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

18.3

%

 

 

12.9

%

 

 

 

 

 

19.3

%

 

 

15.0

%

 

 

 

Distribution

 

 

8.3

%

 

 

9.7

%

 

 

 

 

 

8.1

%

 

 

8.4

%

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

Total

 

 

11.9

%

 

 

8.6

%

 

 

 

 

 

12.7

%

 

 

9.7

%

 

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended September 30, 2022

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

155,658

 

 

$

72,416

 

 

$

228,074

 

 

$

(9

)

 

$

228,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,648

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

260

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,908

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

23,962

 

 

 

4,899

 

 

 

28,861

 

 

 

(8,964

)

 

 

19,897

 

Add: Acquisition and integration costs

 

 

 

 

 

271

 

 

 

271

 

 

 

85

 

 

 

356

 

Add: Restructuring expenses and other adjustments

 

 

260

 

 

 

 

 

 

260

 

 

 

 

 

 

260

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

1,500

 

 

 

1,500

 

Adjusted operating income (loss)(1)

 

 

24,222

 

 

 

5,170

 

 

 

29,392

 

 

 

(7,379

)

 

 

22,013

 

Adjusted operating income margin

 

 

15.6

%

 

 

7.1

%

 

 

12.9

%

 

n/a

 

 

 

9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,215

 

 

 

851

 

 

 

5,066

 

 

 

93

 

 

 

5,159

 

Adjusted EBITDA

 

$

28,437

 

 

$

6,021

 

 

$

34,458

 

 

$

(7,286

)

 

$

27,172

 

Adjusted EBITDA margin

 

 

18.3

%

 

 

8.3

%

 

 

15.1

%

 

n/a

 

 

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gross profit adjustments of $260 and SG&A adjustments of $1,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2021

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

149,664

 

 

$

50,413

 

 

$

200,077

 

 

$

(19

)

 

$

200,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,198

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

145

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,374

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

15,066

 

 

 

4,377

 

 

 

19,443

 

 

 

(7,626

)

 

 

11,817

 

Add: Restructuring expenses and other adjustments

 

 

145

 

 

 

 

 

 

145

 

 

 

 

 

 

145

 

Add: Acquisition and integration costs

 

 

31

 

 

 

 

 

 

31

 

 

 

535

 

 

 

566

 

Adjusted operating income (loss)(1)

 

 

15,242

 

 

 

4,377

 

 

 

19,619

 

 

 

(7,091

)

 

 

12,528

 

Adjusted operating income margin

 

 

10.2

%

 

 

8.7

%

 

 

9.8

%

 

n/a

 

 

 

6.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,137

 

 

 

523

 

 

 

4,660

 

 

 

98

 

 

 

4,758

 

Adjusted EBITDA

 

$

19,379

 

 

$

4,900

 

 

$

24,279

 

 

$

(6,993

)

 

$

17,286

 

Adjusted EBITDA margin

 

 

12.9

%

 

 

9.7

%

 

 

12.1

%

 

n/a

 

 

 

8.6

%

 

 

(1) Includes gross profit adjustments of $176 and SG&A adjustments of $535

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Nine Months Ended September 30, 2022

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

505,384

 

 

$

181,352

 

 

$

686,736

 

 

$

(29

)

 

$

686,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

218,292

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

650

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

218,942

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

83,216

 

 

 

12,469

 

 

 

95,685

 

 

 

(28,766

)

 

 

66,919

 

Add: Acquisition and integration costs

 

 

 

 

 

271

 

 

 

271

 

 

 

561

 

 

 

832

 

Add: Restructuring expenses and other adjustments

 

 

650

 

 

 

 

 

 

650

 

 

 

 

 

 

650

 

Add: Loss on sale of assets

 

 

261

 

 

 

 

 

 

261

 

 

 

 

 

 

261

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

2,800

 

 

 

2,800

 

Adjusted operating income (loss)(1)

 

 

84,127

 

 

 

12,740

 

 

 

96,867

 

 

 

(25,405

)

 

 

71,462

 

Adjusted operating income margin

 

 

16.6

%

 

 

7.0

%

 

 

14.1

%

 

n/a

 

 

 

10.4

%

Add: Depreciation and amortization

 

 

13,239

 

 

 

2,029

 

 

 

15,268

 

 

 

332

 

 

 

15,600

 

Adjusted EBITDA

 

$

97,366

 

 

$

14,769

 

 

$

112,135

 

 

$

(25,073

)

 

$

87,062

 

Adjusted EBITDA margin

 

 

19.3

%

 

 

8.1

%

 

 

16.3

%

 

n/a

 

 

 

12.7

%

 

 

(1) Includes gross profit adjustments of $650 and SG&A adjustments of $3,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2021

 

 

 

Material

Handling

 

 

Distribution

 

 

Segment

Total

 

 

Corporate &

Other

 

 

Total

 

Net sales

 

$

416,784

 

 

$

145,119

 

 

$

561,903

 

 

$

(47

)

 

$

561,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

159,605

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

247

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

159,883

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

49,895

 

 

 

10,029

 

 

 

59,924

 

 

 

(21,373

)

 

 

38,551

 

Add: Severance costs

 

 

 

 

 

527

 

 

 

527

 

 

 

318

 

 

 

845

 

Add: Restructuring expenses and other adjustments

 

 

247

 

 

 

 

 

 

247

 

 

 

 

 

 

247

 

Add: Acquisition and integration costs

 

 

31

 

 

 

 

 

 

31

 

 

 

802

 

 

 

833

 

Less: Gain on sale of assets

 

 

(995

)

 

 

 

 

 

(995

)

 

 

 

 

 

(995

)

Adjusted operating income (loss)(1)

 

 

49,178

 

 

 

10,556

 

 

 

59,734

 

 

 

(20,253

)

 

 

39,481

 

Adjusted operating income margin

 

 

11.8

%

 

 

7.3

%

 

 

10.6

%

 

n/a

 

 

 

7.0

%

Add: Depreciation and amortization

 

 

13,374

 

 

 

1,613

 

 

 

14,987

 

 

 

301

 

 

 

15,288

 

Adjusted EBITDA

 

$

62,552

 

 

$

12,169

 

 

$

74,721

 

 

$

(19,952

)

 

$

54,769

 

Adjusted EBITDA margin

 

 

15.0

%

 

 

8.4

%

 

 

13.3

%

 

n/a

 

 

 

9.7

%

 

 

(1) Includes gross profit adjustments of $278 and SG&A adjustments of $651

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

Quarter Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating income (loss)

 

$

19,897

 

 

$

11,817

 

 

$

66,919

 

 

$

38,551

 

Add: Severance costs

 

 

 

 

 

 

 

 

 

 

 

845

 

Add: Restructuring expenses and other adjustments

 

 

260

 

 

 

145

 

 

 

650

 

 

 

247

 

Add: Acquisition and integration costs

 

 

356

 

 

 

566

 

 

 

832

 

 

 

833

 

Add: Loss on sale of assets

 

 

 

 

 

 

 

 

261

 

 

 

 

Less: Gain on sale of assets

 

 

 

 

 

 

 

 

 

 

 

(995

)

Add: Environmental charges

 

 

1,500

 

 

 

 

 

 

2,800

 

 

 

 

Adjusted operating income (loss)

 

 

22,013

 

 

 

12,528

 

 

 

71,462

 

 

 

39,481

 

Less: Interest expense, net

 

 

(1,719

)

 

 

(1,056

)

 

 

(4,077

)

 

 

(3,050

)

Adjusted income (loss) before taxes

 

 

20,294

 

 

 

11,472

 

 

 

67,385

 

 

 

36,431

 

Less: Income tax expense(1)

 

 

(5,276

)

 

 

(2,983

)

 

 

(17,520

)

 

 

(9,472

)

Adjusted net income (loss)

 

$

15,018

 

 

$

8,489

 

 

$

49,865

 

 

$

26,959

 

Adjusted earnings per diluted share(2)

 

$

0.41

 

 

$

0.23

 

 

$

1.36

 

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2022 and 2021 is 26%.

(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

September 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

20,424

 

 

$

17,655

 

Accounts receivable, net

 

 

128,839

 

 

 

100,691

 

Income tax receivable

 

 

 

 

 

2,517

 

Inventories, net

 

 

108,158

 

 

 

93,551

 

Prepaid expenses and other current assets

 

 

10,491

 

 

 

5,500

 

Total Current Assets

 

 

267,912

 

 

 

219,914

 

Property, plant, & equipment, net

 

 

97,898

 

 

 

92,049

 

Right of use asset - operating leases

 

 

29,809

 

 

 

29,285

 

Deferred income taxes

 

 

105

 

 

 

106

 

Other assets

 

 

154,000

 

 

 

143,195

 

Total Assets

 

$

549,724

 

 

$

484,549

 

Liabilities & Shareholders' Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

97,131

 

 

$

81,690

 

Accrued expenses

 

 

49,528

 

 

 

44,969

 

Operating lease liability - short-term

 

 

6,155

 

 

 

5,341

 

Finance lease liability - short-term

 

 

513

 

 

 

500

 

Total Current Liabilities

 

 

153,327

 

 

 

132,500

 

Long-term debt

 

 

97,961

 

 

 

90,945

 

Operating lease liability - long-term

 

 

23,666

 

 

 

23,815

 

Finance lease liability - long-term

 

 

9,050

 

 

 

9,437

 

Other liabilities

 

 

13,691

 

 

 

13,086

 

Deferred income taxes

 

 

7,052

 

 

 

5,441

 

Total Shareholders' Equity

 

 

244,977

 

 

 

209,325

 

Total Liabilities & Shareholders' Equity

 

$

549,724

 

 

$

484,549

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

Cash Flows From Operating Activities

 

 

 

 

 

 

Net income

 

$

46,839

 

 

$

26,283

 

Adjustments to reconcile net income to net cash

provided by (used for) operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

15,963

 

 

 

15,631

 

Non-cash stock-based compensation expense

 

 

5,168

 

 

 

2,601

 

Gain on disposal of fixed assets

 

 

(693

)

 

 

(1,146

)

Other

 

 

292

 

 

 

(2,096

)

Cash flows provided by (used for) working capital

 

 

 

 

 

 

Accounts receivable

 

 

(18,751

)

 

 

(29,528

)

Inventories

 

 

(7,016

)

 

 

(21,827

)

Prepaid expenses and other current assets

 

 

(4,912

)

 

 

(2,378

)

Accounts payable and accrued expenses

 

 

13,869

 

 

 

26,004

 

Net cash provided by (used for) operating activities

 

 

50,759

 

 

 

13,544

 

Cash Flows From Investing Activities

 

 

 

 

 

 

Capital expenditures

 

 

(17,615

)

 

 

(14,264

)

Acquisition of business, net of cash acquired

 

 

(24,253

)

 

 

(35,473

)

Proceeds from sale of property, plant, and equipment

 

 

1,525

 

 

 

3,051

 

Net cash provided by (used for) investing activities

 

 

(40,343

)

 

 

(46,686

)

Cash Flows From Financing Activities

 

 

 

 

 

 

Net borrowings from revolving credit facility

 

 

7,000

 

 

 

73,400

 

Repayments of long-term debt

 

 

 

 

 

(40,000

)

Payments on finance lease

 

 

(374

)

 

 

(281

)

Cash dividends paid

 

 

(14,872

)

 

 

(14,701

)

Proceeds from issuance of common stock

 

 

2,059

 

 

 

3,235

 

Shares withheld for employee taxes on equity awards

 

 

(450

)

 

 

(853

)

Deferred financing fees

 

 

(718

)

 

 

(1,095

)

Net cash provided by (used for) financing activities

 

 

(7,355

)

 

 

19,705

 

Foreign exchange rate effect on cash

 

 

(292

)

 

 

(35

)

Net increase (decrease) in cash

 

 

2,769

 

 

 

(13,472

)

Cash at January 1

 

 

17,655

 

 

 

28,301

 

Cash at September 30

 

$

20,424

 

 

$

14,829

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

 

 

 

YTD

 

 

YTD

 

 

 

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

 

Net cash provided by (used for) operating activities

 

$

50,759

 

 

$

13,544

 

 

 

 

Capital expenditures

 

 

(17,615

)

 

 

(14,264

)

 

 

 

Free cash flow

 

$

33,144

 

 

$

(720

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

September 30, 2022

 

 

June 30, 2022

 

 

September 30, 2022

 

Net cash provided by (used for) operating activities

 

$

50,759

 

-

$

34,299

 

=

$

16,460

 

Capital expenditures

 

 

(17,615

)

-

 

(10,943

)

=

 

(6,672

)

Free cash flow

 

$

33,144

 

-

$

23,356

 

=

$

9,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

September 30, 2021

 

 

June 30, 2021

 

 

September 30, 2021

 

Net cash provided by (used for) operating activities

 

$

13,544

 

-

$

21,301

 

=

$

(7,757

)

Capital expenditures

 

 

(14,264

)

-

 

(8,220

)

=

 

(6,044

)

Free cash flow

 

$

(720

)

-

$

13,081

 

=

$

(13,801

)

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED DILUTED EARNINGS PER SHARE

(UNAUDITED)

 

 

Full Year 2022 Guidance

 

 

Low

 

 

High

 

GAAP diluted net income per common share

$

1.39

 

 

$

1.59

 

Add: Net restructuring expenses and other adjustments

 

0.03

 

 

 

0.03

 

Add: Acquisition and integration costs

 

0.02

 

 

 

0.02

 

Add: Environmental charges

 

0.06

 

 

 

0.06

 

Adjusted diluted earnings per share

$

1.50

 

 

$

1.70

 

 

Contacts

Monica Vinay, Interim CFO and Vice President, Investor Relations & Treasurer, (330) 761-6212

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