Self-Help Initiatives Sustain Gross Margin
Profile
Continuing to Invest in Growth and
Capabilities, while Prudently Managing Costs
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 second quarter ended June 30, 2023.
Second Quarter 2023 Financial
Highlights
- Net sales of $208.5 million compared to $233.2 million in the
prior year period
- Gross margin of 32.8%, up 80 basis points versus the prior year
period
- GAAP net income per diluted share of $0.29 compared to $0.43 in
the prior year period
- Adjusted earnings per diluted share of $0.35 compared to $0.45
in the prior year period
- Cash flow provided by operations was $22.9 million and free
cash flow was $16.7 million
Myers Industries’ President and CEO Mike McGaugh said “I am
pleased with our business’s ability to maintain gross margins and
navigate a more complex operating environment during the second
quarter while facing macro-economic and inflationary headwinds. Our
self-help initiatives drove further margin expansion, allowing us
to continue making capital investments in our plants and
investments in our M&A and Commercial Excellence processes and
capabilities. We are working to drive a more variable cost
structure and we are well positioned to meet the demand when key
markets recover. We also see strong demand for our agriculture and
military products, and our e-commerce initiative has strong
momentum. There are also very good dynamics for the tire market
given the growth of electric vehicles, which bodes well for our
Distribution segment, where we are refocusing our sales and
sourcing structure, and integrating our Mohawk acquisition to
enable us to better capture this market opportunity.
Recognizing softer demand in our RV and Marine end markets, we
have taken meaningful cost reduction actions to mitigate bottom
line impact. We adjusted operating costs to match production
requirements and increased efficiencies, including deactivating one
of our Roto Molding facilities. As we drive targeted cost
containment initiatives in our businesses that serve the RV and
Marine industries, we continue to evaluate consolidating
opportunities and decreasing capacity where needed, while retaining
an appropriate level of reserved capacity to activate when market
conditions improve.
We are continuing to invest in our people and processes for
future growth, while also working to better align our manufacturing
and SG&A costs to match current market conditions. Given the
current macro challenges, we have elected to lower our revenue
guidance for the full year; however, due to our demonstrated
ability to deliver operational improvements, price increases and
self-help measures, we believe our earnings capability will be
resilient and we are maintaining our adjusted EPS guidance.
We continue to maintain a strong balance sheet, supported by
consistent free cash generation. We also continue to develop and
evaluate a strong pipeline of potential acquisition opportunities,
while exercising discipline in evaluating those opportunities,
including walking away when the economics aren't right."
McGaugh concluded "We have the right strategy and the right team
to continue to execute and further transform Myers into a
high-growth, world class organization while delivering significant
value to our stakeholders.”
Second Quarter 2023 Financial
Summary
Quarter Ended June 30,
(Dollars in thousands, except per share
data)
2023
2022
% Inc (Dec)
Net sales
$208,453
$233,156
(10.6)%
Gross profit
$68,410
$74,716
(8.4)%
Gross margin
32.8%
32.0%
Operating income
$16,142
$22,617
(28.6)%
Net income
$10,605
$15,831
(33.0)%
Net income per diluted share
$0.29
$0.43
(32.6)%
Adjusted operating income
$19,027
$23,618
(19.4)%
Adjusted net income
$12,928
$16,581
(22.0)%
Adjusted earnings per diluted share
$0.35
$0.45
(22.2)%
Adjusted EBITDA
$24,704
$28,860
(14.4)%
Net sales were $208.5 million, a decrease of $24.7 million, or
10.6%, compared with $233.2 million for the second quarter of 2022.
The decrease was the result of lower sales in the Material Handling
segment, partially offset by higher sales in the Distribution
segment largely from incremental sales of $9.3 million from the
Mohawk Rubber acquisition. On an organic basis, the contribution
from higher pricing in the Distribution segment was more than
offset by lower volumes in both segments.
Gross profit decreased $6.3 million, or 8.4% to $68.4 million,
as the contribution from lower raw material costs and the Mohawk
Rubber acquisition was not enough to offset lower volumes. Gross
margin expanded 80 basis points to 32.8% compared with 32.0% for
the second quarter of 2022. Selling, general and administrative
expenses were flat for the second quarter of 2023 compared to the
same period last year. SG&A as a percentage of sales increased
to 25.1%, compared with 22.4% in the same period last year. After
removing the adjusting items, SG&A was down year over year by
$1.7 million. SG&A also included $1.3 million of consulting
expense that was used to increase and strengthen Myers capabilities
as the company moves into the Horizon-2 strategy. Net income per
diluted share was $0.29, compared with $0.43 for the second quarter
of 2022. Adjusted earnings per diluted share were $0.35, compared
with $0.45 for the second quarter of 2022.
Second Quarter 2023 Segment
Results
(Dollar amounts in the segment tables below are reported in
millions)
Material Handling
Net Sales
Op Income
Op Income Margin
Adj EBITDA
Adj EBITDA Margin
Q2 2023 Results
$143.3
$24.8
17.3%
$29.9
20.8%
Q2 2022 Results
$173.1
$28.0
16.2%
$32.5
18.8%
$ Increase (decrease) vs prior year
($29.8)
($3.2)
($2.7)
% Increase (decrease) vs prior year
(17.2)%
(11.4)%
+110 bps
(8.2)%
+200 bps
Items in this table may not recalculate
due to rounding
Net sales for the Material Handling segment were $143.3 million,
a decrease of $29.8 million, or 17.2%, compared with $173.1 million
for the second quarter of 2022. Net sales decreased in the vehicle,
industrial and consumer end markets, led by reduced demand for RV
and marine products, as well as being impacted by the timing of
food & beverage sales. Operating income decreased 11.4% to
$24.8 million, compared with $28.0 million in the second quarter of
2022. Operating income margin improved to 17.3% compared with 16.2%
for the second quarter of 2022. Adjusted EBITDA margin improved by
200 basis points, primarily attributed to self-help initiatives,
partially dampened by a decrease in sales volume. Adjusted EBITDA
decreased 8.2% to $29.9 million, compared with $32.5 million in the
second quarter of 2022. Lower sales volume and pricing more than
offset lower raw material costs and a favorable mix. SG&A
expenses were lower year-over-year, primarily due to a decrease in
legal fees and lower salaries.
Distribution
Net Sales
Op Income
Op Income Margin
Adj EBITDA
Adj EBITDA Margin
Q2 2023 Results
$65.2
$3.4
5.2%
$4.7
7.2%
Q2 2022 Results
$60.1
$4.3
7.1%
$4.9
8.1%
$ Increase (decrease) vs prior year
$5.1
($0.9)
($0.2)
% Increase (decrease) vs prior year
8.5%
(20.4)%
-190 bps
(3.7)%
-90 bps
Items in this table may not recalculate
due to rounding
Net sales for the Distribution segment were $65.2 million, an
increase of $5.1 million, or 8.5%, compared with $60.1 million for
the second quarter of 2022. Excluding the incremental $9.3 million
of net sales from the Mohawk Rubber acquisition, organic net sales
decreased 6.9%. Operating income decreased $0.9 million to $3.4
million, compared with $4.3 million for the second quarter of 2022.
Adjusted EBITDA decreased 3.7% to $4.7 million, compared with $4.9
million in the second quarter of 2022. The decrease in operating
income and adjusted EBITDA was primarily due to an increase in
product costs and higher SG&A expenses. The increase in
SG&A expenses was primarily the result of the Mohawk Rubber
acquisition and higher salaries. The Distribution segment's
operating income margin was 5.2% compared with 7.1% for the second
quarter of 2022. The Distribution segment’s adjusted EBITDA margin
was 7.2%, compared with 8.1% for the second quarter of 2022. The
Distribution Segment continues to integrate the Mohawk Rubber
acquisition and is implementing pricing actions to counter cost
inflation and improve margin.
Balance Sheet & Cash
Flow
As of June 30, 2023, the Company’s cash on hand totaled $30.7
million. Total debt as of June 30, 2023 was $88.2 million.
For the second quarter of 2023, cash flow provided by operations
was $22.9 million and free cash flow was $16.7 million, compared
with cash flow provided by operations of $27.0 million and free
cash flow of $21.1 million for the second quarter of 2022. The
decrease in cash flow was driven primarily by lower earnings.
Capital expenditures for the second quarter of 2023 were $6.1
million, compared with $5.9 million for the second quarter of
2022.
2023 Outlook
Based on current exchange rates, market outlook, and business
forecast, the Company revised its outlook for fiscal 2023, and
currently forecasts:
- Net sales decline in the mid single digit range
- Net income per diluted share in the range of $1.41 to
$1.73
- Maintain adjusted earnings per diluted share range of $1.55 to
$1.85
- Capital expenditures to be in the range of $25 to $30
million
- Effective tax rate to approximate 25%
We will continue to monitor market conditions and provide
updates as we progress throughout the year.
Conference Call Details
The Company will host an earnings conference call and webcast
for investors and analysts on Tuesday, August 3, 2023, at 8:30 a.m.
EDT. The call is anticipated to last less than one hour and may be
accessed using the following online participation registration
link:
https://www.netroadshow.com/events/login?show=95bfe4bb&confId=52763.
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: (US Local) 1-929-458-6194 or (US Toll-Free)
1-866-813-9403.
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 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. 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 contains “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; impacts from the novel
coronavirus (“COVID-19”) pandemic; 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, 2022. 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.
M-INV
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, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Net sales
$
208,453
$
233,156
$
424,192
$
458,642
Cost of sales
140,043
158,440
284,717
311,998
Gross profit
68,410
74,716
139,475
146,644
Selling, general and administrative
expenses
52,351
52,320
104,432
100,310
(Gain) loss on disposal of fixed
assets
(83
)
(221
)
(56
)
(688
)
Operating income (loss)
16,142
22,617
35,099
47,022
Interest expense, net
1,790
1,211
3,436
2,358
Income (loss) before income
taxes
14,352
21,406
31,663
44,664
Income tax expense (benefit)
3,747
5,575
8,082
11,496
Net income (loss)
$
10,605
$
15,831
$
23,581
$
33,168
Net income (loss) per common
share:
Basic
$
0.29
$
0.43
$
0.64
$
0.91
Diluted
$
0.29
$
0.43
$
0.64
$
0.91
Weighted average common shares
outstanding:
Basic
36,761,916
36,397,547
36,663,345
36,338,907
Diluted
36,892,177
36,623,495
36,874,084
36,577,192
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
June 30, 2023
December 31, 2022
Assets
Current Assets
Cash
$
30,692
$
23,139
Accounts receivable, net
116,771
133,716
Inventories, net
98,238
93,351
Other current assets
10,919
7,001
Total Current Assets
256,620
257,207
Property, plant, & equipment, net
106,635
101,566
Right of use asset - operating leases
27,518
28,908
Deferred income taxes
129
129
Other assets
151,808
154,824
Total Assets
$
542,710
$
542,634
Liabilities & Shareholders'
Equity
Current Liabilities
Accounts payable
$
81,744
$
73,536
Accrued expenses
50,349
57,531
Operating lease liability - short-term
5,691
6,177
Finance lease liability - short-term
534
518
Long-term debt - current portion
25,989
—
Total Current Liabilities
164,307
137,762
Long-term debt
52,986
93,962
Operating lease liability - long-term
21,982
22,786
Finance lease liability - long-term
8,645
8,919
Other liabilities
11,414
15,270
Deferred income taxes
8,954
7,508
Total Shareholders' Equity
274,422
256,427
Total Liabilities & Shareholders'
Equity
$
542,710
$
542,634
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Quarter Ended June 30,
Six Months Ended June
30,
2023
2022
2023
2022
Cash Flows From Operating
Activities
Net income
$
10,605
$
15,831
$
23,581
$
33,168
Adjustments to reconcile net income to net
cash provided by (used for) operating activities
Depreciation and amortization
5,677
5,241
11,295
10,441
Amortization of deferred financing
costs
78
121
156
242
Non-cash stock-based compensation
expense
2,488
2,133
4,392
3,860
Gain on disposal of fixed assets
(83
)
(221
)
(56
)
(688
)
Other
3,319
177
2,492
698
Cash flows provided by (used for) working
capital
Accounts receivable
11,915
10,694
15,096
(21,200
)
Inventories
4,048
(1,279
)
(4,730
)
(7,259
)
Prepaid expenses and other current
assets
(5,048
)
(6,316
)
(3,828
)
(5,702
)
Accounts payable and accrued expenses
(10,147
)
626
240
20,739
Net cash provided by (used for) operating
activities
22,852
27,007
48,638
34,299
Cash Flows From Investing
Activities
Capital expenditures
(6,125
)
(5,883
)
(15,216
)
(10,943
)
Acquisition of business, net of cash
acquired
—
(24,253
)
(160
)
(24,253
)
Proceeds from sale of property, plant, and
equipment
109
423
142
1,499
Net cash provided by (used for) investing
activities
(6,016
)
(29,713
)
(15,234
)
(33,697
)
Cash Flows From Financing
Activities
Net borrowings (repayments) from revolving
credit facility
(9,800
)
11,500
(15,000
)
13,000
Payments on finance lease
(129
)
(125
)
(258
)
(249
)
Cash dividends paid
(5,022
)
(4,995
)
(10,296
)
(9,934
)
Proceeds from issuance of common stock
437
1,367
1,569
1,838
Shares withheld for employee taxes on
equity awards
(34
)
(3
)
(2,033
)
(347
)
Net cash provided by (used for) financing
activities
(14,548
)
7,744
(26,018
)
4,308
Foreign exchange rate effect on cash
163
(180
)
167
(131
)
Net increase (decrease) in cash
2,451
4,858
7,553
4,779
Beginning Cash
28,241
17,576
23,139
17,655
Ending Cash
$
30,692
$
22,434
$
30,692
$
22,434
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME
AND EBITDA (UNAUDITED)
(Dollars in thousands)
Quarter Ended June 30,
2023
Material Handling
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: Executive severance costs
—
410
410
289
699
Add: Restructuring expenses and other
adjustments
275
—
275
—
275
Add: Acquisition and integration costs
—
111
111
—
111
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
Quarter Ended June 30,
2022
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
173,090
$
60,075
$
233,165
$
(9
)
$
233,156
Net income
15,831
Net income margin
6.8
%
Gross profit
74,716
Add: Restructuring expenses and other
adjustments
—
Adjusted gross profit
74,716
Gross margin as adjusted
32.0
%
Operating income (loss)
28,034
4,269
32,303
(9,686
)
22,617
Operating income margin
16.2
%
7.1
%
13.9
%
n/a
9.7
%
Add: Acquisition and integration costs
—
—
—
401
401
Add: Environmental reserves, net(2)
—
—
—
600
600
Adjusted operating income (loss)(1)
28,034
4,269
32,303
(8,685
)
23,618
Adjusted operating income margin
16.2
%
7.1
%
13.9
%
n/a
10.1
%
Add: Depreciation and amortization
4,507
621
5,128
114
5,242
Adjusted EBITDA
$
32,541
$
4,890
$
37,431
$
(8,571
)
$
28,860
Adjusted EBITDA margin
18.8
%
8.1
%
16.1
%
n/a
12.4
%
(1) Includes SG&A adjustments of
$1,001
(2) Includes environmental charges of $600
net of probable insurance recoveries of $0
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME
AND EBITDA (UNAUDITED)
(Dollars in thousands)
Six Months Ended June 30,
2023
Material Handling
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: Executive severance costs
—
410
410
289
699
Add: Restructuring expenses and other
adjustments
696
179
875
10
885
Add: Acquisition and integration costs
—
220
220
126
346
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
Six Months Ended June 30,
2022
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
349,726
$
108,936
$
458,662
$
(20
)
$
458,642
Net income
33,168
Net income margin
7.2
%
Gross profit
146,644
Add: Restructuring expenses and other
adjustments
390
Adjusted gross profit
147,034
Gross margin as adjusted
32.1
%
Operating income (loss)
59,254
7,570
66,824
(19,802
)
47,022
Operating income margin
16.9
%
6.9
%
14.6
%
n/a
10.3
%
Add: Restructuring expenses and other
adjustments
390
—
390
—
390
Add: Acquisition and integration costs
—
—
—
476
476
Add: Loss on sale of assets
261
—
261
—
261
Add: Environmental reserves, net(2)
—
—
—
1,300
1,300
Adjusted operating income (loss)(1)
59,905
7,570
67,475
(18,026
)
49,449
Adjusted operating income margin
17.1
%
6.9
%
14.7
%
n/a
10.8
%
Add: Depreciation and amortization
9,023
1,179
10,202
239
10,441
Adjusted EBITDA
$
68,928
$
8,749
$
77,677
$
(17,787
)
$
59,890
Adjusted EBITDA margin
19.7
%
8.0
%
16.9
%
n/a
13.1
%
(1) Includes gross profit adjustments of
$390 and SG&A adjustments of $2,037
(2) Includes environmental charges of
$1,300 net of probable insurance recoveries of $0
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
ADJUSTED OPERATING INCOME,
ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)
(Dollars in thousands, except
per share data)
Quarter Ended June 30,
Six Months Ended June
30,
2023
2022
2023
2022
Adjusted operating income (loss)
reconciliation:
Operating income (loss)
$
16,142
$
22,617
$
35,099
$
47,022
Executive severance costs
699
—
699
—
Restructuring expenses and other
adjustments
275
—
885
390
Acquisition and integration costs
111
401
346
476
Loss on sale of assets
—
—
—
261
Environmental reserves, net
1,800
600
2,300
1,300
Adjusted operating income (loss)
$
19,027
$
23,618
$
39,329
$
49,449
Adjusted EBITDA reconciliation:
Net income (loss)
$
10,605
$
15,831
$
23,581
$
33,168
Income tax expense (benefit)
3,747
5,575
8,082
11,496
Interest expense, net
1,790
1,211
3,436
2,358
Operating income (loss)
16,142
22,617
35,099
47,022
Depreciation and amortization
5,677
5,242
11,295
10,441
Executive severance costs
699
—
699
—
Restructuring expenses and other
adjustments
275
—
885
390
Acquisition and integration costs
111
401
346
476
Loss on sale of assets
—
—
—
261
Environmental reserves, net
1,800
600
2,300
1,300
Adjusted EBITDA
$
24,704
$
28,860
$
50,624
$
59,890
Free cash flow reconciliation:
Net cash provided by (used for) operating
activities
$
22,852
$
27,007
$
48,638
$
34,299
Capital expenditures
(6,125
)
(5,883
)
(15,216
)
(10,943
)
Free cash flow
$
16,727
$
21,124
$
33,422
$
23,356
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,
2023
2022
2023
2022
Adjusted net income (loss)
reconciliation:
Net income (loss)
$
10,605
$
15,831
$
23,581
$
33,168
Income tax expense (benefit)
3,747
5,575
8,082
11,496
Income (loss) before income taxes
14,352
21,406
31,663
44,664
Executive severance costs
699
—
699
—
Restructuring expenses and other
adjustments
275
—
885
390
Acquisition and integration costs
111
401
346
476
Loss on sale of assets
—
—
—
261
Environmental reserves, net
1,800
600
2,300
1,300
Adjusted income (loss) before income
taxes
17,237
22,407
35,893
47,091
Income tax expense, as adjusted (1)
(4,309
)
(5,826
)
(8,973
)
(12,244
)
Adjusted net income (loss)
$
12,928
$
16,581
$
26,920
$
34,847
Adjusted earnings per diluted share
reconciliation:
Net income (loss) per common diluted
share
$
0.29
$
0.43
$
0.64
$
0.91
Executive severance costs
0.02
—
0.02
—
Restructuring expenses and other
adjustments
0.00
—
0.02
0.01
Acquisition and integration costs
0.00
0.01
0.01
0.01
Loss on sale of assets
—
—
—
0.01
Environmental reserves, net
0.05
0.02
0.06
0.04
Adjusted effective income tax rate
impact
(0.01
)
(0.01
)
(0.02
)
(0.03
)
Adjusted earnings per diluted share(2)
$
0.35
$
0.45
$
0.73
$
0.95
(1) Income taxes are calculated using the
normalized effective tax rate for each year. The rate used in 2023
is 25% and in 2022 is 26%.
(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 2023
Guidance
Low
High
GAAP diluted net income per common
share
$
1.41
$
1.73
Add: Executive severance costs
0.02
0.02
Add: Net restructuring expenses and other
adjustments
0.10
0.07
Add: Acquisition and integration costs
0.01
0.01
Add: Environmental reserves, net
0.06
0.06
Less: Adjusted effective income tax rate
impact (1)
(0.05
)
(0.04
)
Adjusted earnings per diluted share
(2)
$
1.55
$
1.85
(1) Income taxes are calculated using the
normalized effective tax rate for each year. The rate used in 2023
is 25%.
(2) Adjusted earnings per diluted share is
calculated using the weighted average common shares
outstanding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230803614171/en/
Rich Pasela, Manager, Investor Relations and Treasury,
330-761-6284
Myers Industries (NYSE:MYE)
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