EX-99.1 2 mye-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

img184536972_0.jpg 

 

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

Net sales increased 24% to $233.2 million, compared with $187.4 million for the second quarter of 2021
On an organic basis, net sales increased 16% compared with the second quarter of 2021
Earnings per diluted share increased 43% to $0.43, compared with $0.30 for the second quarter of 2021
Adjusted earnings per diluted share increased 55% to $0.45, compared with $0.29 for the second quarter of 2021
Adjusted EBITDA increased 41% to $28.9 million, compared with $20.5 million for the second quarter of 2021
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

 

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
(Dec)

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:

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 $1.33 to $1.53; adjusted diluted EPS in the range of $1.40 to $1.60
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, 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
   provided by (used for) operating activities

 

 

 

 

 

 

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