Exhibit 99.1
Myers Industries Reports 2022 Second Quarter Results
Achieves Record Quarterly Results and Drives Seventh Consecutive Quarter of Double-Digit Top-Line Expansion
Raises Full Year Fiscal 2022 Outlook for both Revenue and Earnings
August 2, 2022, Akron, Ohio - 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, 2022.
Second Quarter 2022 Financial Highlights
Myers Industries President and CEO Mike McGaugh said, “I am pleased to report this quarter’s record performance, highlighted by our seventh consecutive quarter of double-digit top-line expansion. Our results have been driven by consistent and meaningful progress against our 3-horizon strategy, which has proven to be a successful roadmap for Myers’ transformation. Our self-help initiatives, value-based pricing actions, and contributions from our strategic acquisitions have led to strong financial performance. During the quarter, we continued to execute our strategy by acquiring an additional rotational molding facility, expanding our capability into the south-eastern U.S. In addition, we added to our Distribution Segment by acquiring Mohawk Rubber, a leader in the auto-aftermarket space. We believe that both of these acquisitions will allow us to continue to improve our ability to provide excellent service and value to our customers. Our sustained performance over the past quarters provides additional proof points of our ability to execute on our transformation.”
McGaugh concluded, “As a result of our second quarter results, we are raising our top- and bottom-line outlook for 2022. Net sales growth, including the Trilogy and Mohawk acquisitions, is expected to be in the high teens range year over year and we are increasing our adjusted EPS range from $1.30 - $1.50 to $1.40 - $1.60. We continue to see improvements in our base business, and we believe there is still substantial runway for continued earnings growth over the long term. We are at an exciting time in Myers’ transformation into a world-class company that delivers world-class financial performance. Our team, our morale, our momentum, have never been better.”
1
Second Quarter 2022 Financial Summary
|
|
Quarter Ended June 30, |
||||
(Dollars in thousands, except per share data) |
|
2022 |
|
2021 |
|
% Inc |
Net sales |
|
$233,156 |
|
$187,369 |
|
24.4% |
Gross profit |
|
$74,716 |
|
$54,994 |
|
35.9% |
Gross margin |
|
32.0% |
|
29.4% |
|
|
Operating income |
|
$22,617 |
|
$15,869 |
|
42.5% |
Net income: |
|
|
|
|
|
|
Net income |
|
$15,831 |
|
$11,075 |
|
42.9% |
Net income per diluted share |
|
$0.43 |
|
$0.30 |
|
43.3% |
|
|
|
|
|
|
|
Adjusted operating income |
|
$23,618 |
|
$15,100 |
|
56.4% |
Adjusted net income: |
|
|
|
|
|
|
Net income |
|
$16,581 |
|
$10,435 |
|
58.9% |
Net income per diluted share |
|
$0.45 |
|
$0.29 |
|
55.2% |
Adjusted EBITDA |
|
$28,860 |
|
$20,470 |
|
41.0% |
Net sales were $233.2 million, an increase of $45.8 million, or 24.4%, compared with $187.4 million for the second quarter of 2021, driven by strong sales in both the Material Handling and Distribution segments. Excluding the incremental $16.3 million of net sales from the Trilogy Plastics and Mohawk Rubber acquisitions, organic net sales increased 16%. Favorable pricing of 17% was partially offset by a decrease in volume/mix of 1%.
Gross profit increased $19.7 million, or 35.9% to $74.7 million, primarily due to the increased contribution from pricing actions and the Mohawk Rubber and Trilogy Plastics acquisitions. Partially offsetting these contributions were increased labor costs and sales mix. Gross margin was 32.0% compared with 29.4% for the second quarter of 2021. Selling, general and administrative expenses increased $12.2 million, or 30.4% to $52.3 million, reflecting the Mohawk Rubber and Trilogy Plastics acquisitions, higher salaries, benefits, and incentive compensation costs, increased freight and other variable selling expenses, higher facility costs and increased professional services fees. SG&A as a percentage of sales increased to 22.4%, compared with 21.4% in the same period last year, primarily due to inflation. Net income per diluted share was $0.43, compared with $0.30 for the second quarter of 2021. Adjusted earnings per diluted share were $0.45, compared with $0.29 for the second quarter of 2021.
Second 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 |
Q2 2022 Results |
$173.1 |
|
$28.0 |
|
$28.0 |
|
16.2% |
Q2 2021 Results |
$137.2 |
|
$17.9 |
|
$17.0 |
|
12.4% |
Increase (decrease) vs prior year |
26.1% |
|
56.6% |
|
64.8% |
|
+380 bps |
Net sales for the Material Handling Segment were $173.1 million, an increase of $35.9 million, or 26.1%, compared with $137.2 million for the second quarter of 2021. Excluding the incremental $10.3 million of net sales from the Trilogy Plastics acquisition, organic net sales increased 19%. Favorable price of 20% was partially offset by a decline in volume/mix of 1%. Organic net sales increased in the industrial, food and beverage, and vehicle end markets. Operating income increased 56.6% to $28.0 million, compared with $17.9 million in 2021. Adjusted operating income increased 64.8% to $28.0 million, compared with $17.0 million in 2021. Contributions from pricing actions more than offset increased labor costs and a change in sales mix. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to the Trilogy Plastics acquisition, higher salaries, benefits and incentive compensation costs, increased freight and other variable selling expenses, and higher facility costs. The Material Handling Segment’s adjusted operating income margin increased 380 basis points to 16.2%, compared with 12.4% for the second quarter of 2021.
2
Distribution
|
Net Sales |
|
Op Income |
|
Adj Op Income |
|
Adj Op Income Margin |
Q2 2022 Results |
$60.1 |
|
$4.3 |
|
$4.3 |
|
7.1% |
Q2 2021 Results |
$50.2 |
|
$4.2 |
|
$4.2 |
|
8.4% |
Increase vs prior year |
19.8% |
|
1.3% |
|
1.3% |
|
-130 bps |
Net sales for the Distribution Segment were $60.1 million, an increase of $9.9 million, or 19.8%, compared with $50.2 million for the second quarter of 2021. Excluding the incremental $6.0 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 8% due mostly to favorable price. Operating income increased 1.3% to $4.3 million, compared with $4.2 million in 2021. The contribution from higher pricing 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 the Mohawk Rubber acquisition and higher variable selling expenses. The Distribution Segment’s adjusted operating income margin was 7.1%, compared with 8.4% for the second quarter of 2021.
Balance Sheet & Cash Flow
As of June 30, 2022, the Company’s cash on hand totaled $22.4 million. Total debt as of June 30, 2022 was $113.6 million.
For the second quarter of 2022, cash flow provided by operations was $27.0 million and free cash flow was $21.1 million, compared with cash flow provided by operations of $14.7 million and free cash flow of $11.7 million for the second quarter of 2021. The increase in cash flow was driven by higher earnings, partially offset by an increase in working capital. The increase in working capital was primarily the result of the Trilogy Plastics and Mohawk Rubber acquisitions, the effects of inflation, higher accounts receivable balances driven by higher sales, and an increase in inventory levels to mitigate supply chain disruptions and to better serve our customers. Capital expenditures for the second quarter of 2022 were $5.9 million, compared with $3.0 million for the second 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:
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on Tuesday, August 2, 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://ige.netroadshow.com/registration/q4inc/11279/myers-industries-second-quarter-2022-earnings-call/.
Upon registering, each participant will be provided with call details and a registrant ID that will be used to track call attendance. Reminders will also be sent to registered participants 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; international callers use +44-204-525-0658. The Access Code is 118475. The teleconference replay will be available through August 9, 2022.
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.
3
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.
Contact: Monica Vinay, Vice President, Investor Relations & Treasurer, (330) 761-6212
M-INV
Source: Myers Industries, Inc.
4
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, 2022 |
|
|
June 30, 2021 |
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
||||
Net sales |
|
$ |
233,156 |
|
|
$ |
187,369 |
|
|
$ |
458,642 |
|
|
$ |
361,798 |
|
Cost of sales |
|
|
158,440 |
|
|
|
132,375 |
|
|
|
311,998 |
|
|
|
256,391 |
|
Gross profit |
|
|
74,716 |
|
|
|
54,994 |
|
|
|
146,644 |
|
|
|
105,407 |
|
Selling, general and administrative expenses |
|
|
52,320 |
|
|
|
40,121 |
|
|
|
100,310 |
|
|
|
79,669 |
|
(Gain) loss on disposal of fixed assets |
|
|
(221 |
) |
|
|
(996 |
) |
|
|
(688 |
) |
|
|
(996 |
) |
Operating income (loss) |
|
|
22,617 |
|
|
|
15,869 |
|
|
|
47,022 |
|
|
|
26,734 |
|
Interest expense, net |
|
|
1,211 |
|
|
|
999 |
|
|
|
2,358 |
|
|
|
1,994 |
|
Income (loss) before income taxes |
|
|
21,406 |
|
|
|
14,870 |
|
|
|
44,664 |
|
|
|
24,740 |
|
Income tax expense (benefit) |
|
|
5,575 |
|
|
|
3,795 |
|
|
|
11,496 |
|
|
|
6,360 |
|
Net income (loss) |
|
$ |
15,831 |
|
|
$ |
11,075 |
|
|
$ |
33,168 |
|
|
$ |
18,380 |
|
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.43 |
|
|
$ |
0.31 |
|
|
$ |
0.91 |
|
|
$ |
0.51 |
|
Diluted |
|
$ |
0.43 |
|
|
$ |
0.30 |
|
|
$ |
0.91 |
|
|
$ |
0.51 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
36,397,547 |
|
|
|
36,122,792 |
|
|
|
36,338,907 |
|
|
|
36,058,061 |
|
Diluted |
|
|
36,623,495 |
|
|
|
36,336,448 |
|
|
|
36,577,192 |
|
|
|
36,296,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
5
MYERS INDUSTRIES, INC.
SALES AND EARNINGS BY SEGMENT (UNAUDITED)
(Dollars in thousands)
|
|
Quarter Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
||||||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Material Handling |
|
$ |
173,090 |
|
|
$ |
137,227 |
|
|
|
26.1 |
% |
|
$ |
349,726 |
|
|
$ |
267,120 |
|
|
|
30.9 |
% |
Distribution |
|
|
60,075 |
|
|
|
50,156 |
|
|
|
19.8 |
% |
|
$ |
108,936 |
|
|
$ |
94,706 |
|
|
|
15.0 |
% |
Inter-company Sales |
|
|
(9 |
) |
|
|
(14 |
) |
|
|
- |
|
|
$ |
(20 |
) |
|
$ |
(28 |
) |
|
|
- |
|
Total |
|
$ |
233,156 |
|
|
$ |
187,369 |
|
|
|
24.4 |
% |
|
$ |
458,642 |
|
|
$ |
361,798 |
|
|
|
26.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Material Handling |
|
$ |
28,034 |
|
|
$ |
17,902 |
|
|
|
56.6 |
% |
|
$ |
59,254 |
|
|
$ |
34,829 |
|
|
|
70.1 |
% |
Distribution |
|
|
4,269 |
|
|
|
4,214 |
|
|
|
1.3 |
% |
|
|
7,570 |
|
|
|
5,652 |
|
|
|
33.9 |
% |
Corporate |
|
|
(9,686 |
) |
|
|
(6,247 |
) |
|
|
- |
|
|
|
(19,802 |
) |
|
|
(13,747 |
) |
|
|
- |
|
Total |
|
$ |
22,617 |
|
|
$ |
15,869 |
|
|
|
42.5 |
% |
|
$ |
47,022 |
|
|
$ |
26,734 |
|
|
|
75.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Material Handling |
|
$ |
28,034 |
|
|
$ |
17,009 |
|
|
|
64.8 |
% |
|
$ |
59,905 |
|
|
$ |
33,936 |
|
|
|
76.5 |
% |
Distribution |
|
|
4,269 |
|
|
|
4,214 |
|
|
|
1.3 |
% |
|
|
7,570 |
|
|
|
6,179 |
|
|
|
22.5 |
% |
Corporate |
|
|
(8,685 |
) |
|
|
(6,123 |
) |
|
|
- |
|
|
|
(18,026 |
) |
|
|
(13,162 |
) |
|
|
- |
|
Total |
|
$ |
23,618 |
|
|
$ |
15,100 |
|
|
|
56.4 |
% |
|
$ |
49,449 |
|
|
$ |
26,953 |
|
|
|
83.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating income margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Material Handling |
|
|
16.2 |
% |
|
|
12.4 |
% |
|
|
|
|
|
17.1 |
% |
|
|
12.7 |
% |
|
|
|
||
Distribution |
|
|
7.1 |
% |
|
|
8.4 |
% |
|
|
|
|
|
6.9 |
% |
|
|
6.5 |
% |
|
|
|
||
Corporate |
|
n/a |
|
|
n/a |
|
|
|
|
|
n/a |
|
|
n/a |
|
|
|
|
||||||
Total |
|
|
10.1 |
% |
|
|
8.1 |
% |
|
|
|
|
|
10.8 |
% |
|
|
7.4 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Material Handling |
|
$ |
32,541 |
|
|
$ |
21,727 |
|
|
|
49.8 |
% |
|
$ |
68,928 |
|
|
$ |
43,173 |
|
|
|
59.7 |
% |
Distribution |
|
|
4,890 |
|
|
|
4,761 |
|
|
|
2.7 |
% |
|
|
8,749 |
|
|
|
7,269 |
|
|
|
20.4 |
% |
Corporate |
|
|
(8,571 |
) |
|
|
(6,018 |
) |
|
|
- |
|
|
|
(17,787 |
) |
|
|
(12,959 |
) |
|
|
- |
|
Total |
|
$ |
28,860 |
|
|
$ |
20,470 |
|
|
|
41.0 |
% |
|
$ |
59,890 |
|
|
$ |
37,483 |
|
|
|
59.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Material Handling |
|
|
18.8 |
% |
|
|
15.8 |
% |
|
|
|
|
|
19.7 |
% |
|
|
16.2 |
% |
|
|
|
||
Distribution |
|
|
8.1 |
% |
|
|
9.5 |
% |
|
|
|
|
|
8.0 |
% |
|
|
7.7 |
% |
|
|
|
||
Corporate |
|
n/a |
|
|
n/a |
|
|
|
|
|
n/a |
|
|
n/a |
|
|
|
|
||||||
Total |
|
|
12.4 |
% |
|
|
10.9 |
% |
|
|
|
|
|
13.1 |
% |
|
|
10.4 |
% |
|
|
|
||
6
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
|
|
Quarter Ended June 30, 2022 |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
173,090 |
|
|
$ |
60,075 |
|
|
$ |
233,165 |
|
|
$ |
(9 |
) |
|
$ |
233,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,716 |
|
||||
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
28,034 |
|
|
|
4,269 |
|
|
|
32,303 |
|
|
|
(9,686 |
) |
|
|
22,617 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
401 |
|
|
|
401 |
|
Add: Environmental charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
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 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter Ended June 30, 2021 |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
137,227 |
|
|
$ |
50,156 |
|
|
$ |
187,383 |
|
|
$ |
(14 |
) |
|
$ |
187,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,994 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,096 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
17,902 |
|
|
|
4,214 |
|
|
|
22,116 |
|
|
|
(6,247 |
) |
|
|
15,869 |
|
Add: Restructuring expenses and other adjustments |
|
|
102 |
|
|
|
— |
|
|
|
102 |
|
|
|
— |
|
|
|
102 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
124 |
|
Less: Gain on sale of assets |
|
|
(995 |
) |
|
|
— |
|
|
|
(995 |
) |
|
|
— |
|
|
|
(995 |
) |
Adjusted operating income (loss)(1) |
|
|
17,009 |
|
|
|
4,214 |
|
|
|
21,223 |
|
|
|
(6,123 |
) |
|
|
15,100 |
|
Adjusted operating income margin |
|
|
12.4 |
% |
|
|
8.4 |
% |
|
|
11.3 |
% |
|
n/a |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Add: Depreciation and amortization |
|
|
4,718 |
|
|
|
547 |
|
|
|
5,265 |
|
|
|
105 |
|
|
|
5,370 |
|
Adjusted EBITDA |
|
$ |
21,727 |
|
|
$ |
4,761 |
|
|
$ |
26,488 |
|
|
$ |
(6,018 |
) |
|
$ |
20,470 |
|
Adjusted EBITDA margin |
|
|
15.8 |
% |
|
|
9.5 |
% |
|
|
14.1 |
% |
|
n/a |
|
|
|
10.9 |
% |
|
|
|
|||||||||||||||||||
(1) Includes gross profit adjustments of $102 and SG&A adjustments of ($871) |
|
|||||||||||||||||||
7
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
476 |
|
|
|
476 |
|
Add: Restructuring expenses and other adjustments |
|
|
390 |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
|
|
390 |
|
Add: Loss on sale of assets |
|
|
261 |
|
|
|
— |
|
|
|
261 |
|
|
|
— |
|
|
|
261 |
|
Add: Environmental charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
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 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Six Months Ended June 30, 2021 |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
267,120 |
|
|
$ |
94,706 |
|
|
$ |
361,826 |
|
|
$ |
(28 |
) |
|
$ |
361,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
105,407 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
105,509 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
34,829 |
|
|
|
5,652 |
|
|
|
40,481 |
|
|
|
(13,747 |
) |
|
|
26,734 |
|
Add: Severance costs |
|
|
— |
|
|
|
527 |
|
|
|
527 |
|
|
|
318 |
|
|
|
845 |
|
Add: Restructuring expenses and other adjustments |
|
|
102 |
|
|
|
— |
|
|
|
102 |
|
|
|
— |
|
|
|
102 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
267 |
|
|
|
267 |
|
Less: Gain on sale of assets |
|
|
(995 |
) |
|
|
— |
|
|
|
(995 |
) |
|
|
— |
|
|
|
(995 |
) |
Adjusted operating income (loss)(1) |
|
|
33,936 |
|
|
|
6,179 |
|
|
|
40,115 |
|
|
|
(13,162 |
) |
|
|
26,953 |
|
Adjusted operating income margin |
|
|
12.7 |
% |
|
|
6.5 |
% |
|
|
11.1 |
% |
|
n/a |
|
|
|
7.4 |
% |
|
Add: Depreciation and amortization |
|
|
9,237 |
|
|
|
1,090 |
|
|
|
10,327 |
|
|
|
203 |
|
|
|
10,530 |
|
Adjusted EBITDA |
|
$ |
43,173 |
|
|
$ |
7,269 |
|
|
$ |
50,442 |
|
|
$ |
(12,959 |
) |
|
$ |
37,483 |
|
Adjusted EBITDA margin |
|
|
16.2 |
% |
|
|
7.7 |
% |
|
|
13.9 |
% |
|
n/a |
|
|
|
10.4 |
% |
|
|
|
|||||||||||||||||||
(1) Includes gross profit adjustments of $102 and SG&A adjustments of $117 |
|
|||||||||||||||||||
8
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 June 30, |
|
|
Six Months Ended June 30, |
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
||||
Operating income (loss) |
|
$ |
22,617 |
|
|
$ |
15,869 |
|
|
$ |
47,022 |
|
|
$ |
26,734 |
|
|
Add: Severance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
845 |
|
|
Add: Restructuring expenses and other adjustments |
|
|
— |
|
|
|
102 |
|
|
|
390 |
|
|
|
102 |
|
|
Add: Acquisition and integration costs |
|
|
401 |
|
|
|
124 |
|
|
|
476 |
|
|
|
267 |
|
|
Add: Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
261 |
|
|
|
— |
|
|
Less: Gain on sale of assets |
|
|
— |
|
|
|
(995 |
) |
|
|
— |
|
|
|
(995 |
) |
|
Add: Environmental charges |
|
|
600 |
|
|
|
— |
|
|
|
1,300 |
|
|
|
— |
|
|
Adjusted operating income (loss) |
|
|
23,618 |
|
|
|
15,100 |
|
|
|
49,449 |
|
|
|
26,953 |
|
|
Less: Interest expense, net |
|
|
(1,211 |
) |
|
|
(999 |
) |
|
|
(2,358 |
) |
|
|
(1,994 |
) |
|
Adjusted income (loss) before taxes |
|
|
22,407 |
|
|
|
14,101 |
|
|
|
47,091 |
|
|
|
24,959 |
|
|
Less: Income tax expense(1) |
|
|
(5,826 |
) |
|
|
(3,666 |
) |
|
|
(12,244 |
) |
|
|
(6,489 |
) |
|
Adjusted net income (loss) |
|
$ |
16,581 |
|
|
$ |
10,435 |
|
|
$ |
34,847 |
|
|
$ |
18,470 |
|
|
Adjusted earnings per diluted share(2) |
|
$ |
0.45 |
|
|
$ |
0.29 |
|
|
$ |
0.95 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(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. |
|||||||||||||||||
9
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
||
Assets |
|
|
|
|
|
|
||
Current Assets |
|
|
|
|
|
|
||
Cash |
|
$ |
22,434 |
|
|
$ |
17,655 |
|
Accounts receivable, net |
|
|
132,002 |
|
|
|
100,691 |
|
Income tax receivable |
|
|
— |
|
|
|
2,517 |
|
Inventories, net |
|
|
108,902 |
|
|
|
93,551 |
|
Prepaid expenses and other current assets |
|
|
11,301 |
|
|
|
5,500 |
|
Total Current Assets |
|
|
274,639 |
|
|
|
219,914 |
|
Property, plant, & equipment, net |
|
|
94,945 |
|
|
|
92,049 |
|
Right of use asset - operating leases |
|
|
29,052 |
|
|
|
29,285 |
|
Deferred income taxes |
|
|
106 |
|
|
|
106 |
|
Other assets |
|
|
155,270 |
|
|
|
143,195 |
|
Total Assets |
|
$ |
554,012 |
|
|
$ |
484,549 |
|
Liabilities & Shareholders' Equity |
|
|
|
|
|
|
||
Current Liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
104,314 |
|
|
$ |
81,690 |
|
Accrued expenses |
|
|
49,454 |
|
|
|
44,969 |
|
Operating lease liability - short-term |
|
|
5,774 |
|
|
|
5,341 |
|
Finance lease liability - short-term |
|
|
509 |
|
|
|
500 |
|
Total Current Liabilities |
|
|
160,051 |
|
|
|
132,500 |
|
Long-term debt |
|
|
103,956 |
|
|
|
90,945 |
|
Operating lease liability - long-term |
|
|
23,242 |
|
|
|
23,815 |
|
Finance lease liability - long-term |
|
|
9,179 |
|
|
|
9,437 |
|
Other liabilities |
|
|
13,863 |
|
|
|
13,086 |
|
Deferred income taxes |
|
|
6,463 |
|
|
|
5,441 |
|
Total Shareholders' Equity |
|
|
237,258 |
|
|
|
209,325 |
|
Total Liabilities & Shareholders' Equity |
|
$ |
554,012 |
|
|
$ |
484,549 |
|
10
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
|
|
Six Months Ended June 30, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Cash Flows From Operating Activities |
|
|
|
|
|
|
||
Net income |
|
$ |
33,168 |
|
|
$ |
18,380 |
|
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
10,683 |
|
|
|
10,752 |
|
Non-cash stock-based compensation expense |
|
|
3,860 |
|
|
|
1,829 |
|
Gain on disposal of fixed assets |
|
|
(688 |
) |
|
|
(996 |
) |
Other |
|
|
698 |
|
|
|
(907 |
) |
Cash flows provided by (used for) working capital |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(21,200 |
) |
|
|
(15,250 |
) |
Inventories |
|
|
(7,259 |
) |
|
|
(13,411 |
) |
Prepaid expenses and other current assets |
|
|
(5,702 |
) |
|
|
(4,814 |
) |
Accounts payable and accrued expenses |
|
|
20,739 |
|
|
|
25,718 |
|
Net cash provided by (used for) operating activities |
|
|
34,299 |
|
|
|
21,301 |
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(10,943 |
) |
|
|
(8,220 |
) |
Acquisition of business, net of cash acquired |
|
|
(24,253 |
) |
|
|
(1,223 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
1,499 |
|
|
|
2,848 |
|
Net cash provided by (used for) investing activities |
|
|
(33,697 |
) |
|
|
(6,595 |
) |
Cash Flows From Financing Activities |
|
|
|
|
|
|
||
Net borrowings from revolving credit facility |
|
|
13,000 |
|
|
|
19,900 |
|
Repayments of long-term debt |
|
|
— |
|
|
|
(40,000 |
) |
Payments on finance lease |
|
|
(249 |
) |
|
|
(161 |
) |
Cash dividends paid |
|
|
(9,934 |
) |
|
|
(9,809 |
) |
Proceeds from issuance of common stock |
|
|
1,838 |
|
|
|
2,420 |
|
Shares withheld for employee taxes on equity awards |
|
|
(347 |
) |
|
|
(748 |
) |
Deferred financing fees |
|
|
— |
|
|
|
(1,095 |
) |
Net cash provided by (used for) financing activities |
|
|
4,308 |
|
|
|
(29,493 |
) |
Foreign exchange rate effect on cash |
|
|
(131 |
) |
|
|
29 |
|
Net increase (decrease) in cash |
|
|
4,779 |
|
|
|
(14,758 |
) |
Cash at January 1 |
|
|
17,655 |
|
|
|
28,301 |
|
Cash at June 30 |
|
$ |
22,434 |
|
|
$ |
13,543 |
|
11
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 |
|
|
|
|
|||
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
|
|
|||
Net cash provided by (used for) operating activities |
|
$ |
34,299 |
|
|
$ |
21,301 |
|
|
|
|
|
Capital expenditures |
|
|
(10,943 |
) |
|
|
(8,220 |
) |
|
|
|
|
Free cash flow |
|
$ |
23,356 |
|
|
$ |
13,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
YTD |
|
|
YTD |
|
|
Quarter |
|
|||
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
June 30, 2022 |
|
|||
Net cash provided by (used for) operating activities |
|
$ |
34,299 |
|
- |
$ |
7,292 |
|
= |
$ |
27,007 |
|
Capital expenditures |
|
|
(10,943 |
) |
- |
|
(5,060 |
) |
= |
|
(5,883 |
) |
Free cash flow |
|
$ |
23,356 |
|
- |
$ |
2,232 |
|
= |
$ |
21,124 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
YTD |
|
|
YTD |
|
|
Quarter |
|
|||
|
|
June 30, 2021 |
|
|
March 31, 2021 |
|
|
June 30, 2021 |
|
|||
Net cash provided by (used for) operating activities |
|
$ |
21,301 |
|
- |
$ |
6,588 |
|
= |
$ |
14,713 |
|
Capital expenditures |
|
|
(8,220 |
) |
- |
|
(5,238 |
) |
= |
|
(2,982 |
) |
Free cash flow |
|
$ |
13,081 |
|
- |
$ |
1,350 |
|
= |
$ |
11,731 |
|
12
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 |
$ |
1.33 |
|
|
$ |
1.53 |
|
Add: Net restructuring expenses and other adjustments |
|
0.02 |
|
|
|
0.02 |
|
Add: Acquisition and integration costs |
|
0.02 |
|
|
|
0.02 |
|
Add: Environmental charges |
|
0.03 |
|
|
|
0.03 |
|
Adjusted diluted earnings per share |
$ |
1.40 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
||
13