Myers Industries Announces Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

Myers Industries (NYSE: MYE) reported robust financial performance for Q4 and the full year 2022, highlighting significant growth. Q4 net sales reached $213 million, a 7% increase year-over-year, while full-year sales totaled $900 million, an 18% rise. GAAP EPS for Q4 was $0.36, up 80%, with adjusted EPS at $0.32, a 39% increase. The company generated $22 million in cash flow from operations. Notable acquisitions in 2022 strengthened its Distribution and Material Handling segments. For 2023, Myers anticipates low-to-mid single-digit sales growth and diluted EPS between $1.51 and $1.81.

Positive

• Q4 2022 net sales increased by 7% to $213 million.
• Full-year 2022 sales rose by 18% to $900 million.
• GAAP EPS for Q4 was $0.36, a significant increase of 80%.
• Adjusted EPS for Q4 was $0.32, up 39% year-over-year.
• The company generated $22 million in cash flow from operations in Q4.

Negative

• SG&A expenses increased by 14.8% due to acquisitions and higher variable costs.
• Distribution segment operating income fell by 37.2% despite a 35% increase in net sales.

Record Top-and-Bottom Line Results Delivered for Four Consecutive Quarters

Outlook for Sustained Revenue Growth in Fiscal 2023

AKRON, Ohio--(BUSINESS WIRE)-- 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 fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022 Financial Highlights:

• Net sales of $213 million, up 7% versus prior year period
• GAAP EPS of $0.36; Adjusted EPS of $0.32, up 39% versus prior year period
• Cash flow provided by operations of $22 million and free cash flow of $15 million

Full Year 2022 Financial Highlights:

• Net sales of $900 million, up 18% versus prior year period; Organic net sales up 10%
• GAAP EPS of $1.64; Adjusted EPS of $1.68, up 73% versus prior year period
• Cash flow provided by operations of $73 million and free cash flow of $48 million

Myers Industries President and CEO Mike McGaugh said, "2022 was a strong year as Myers posted record results in each quarter with robust top- and bottom-line growth, serving as proof that our 3-Horizon strategy is working. We continued to generate healthy margins and strong cash flow from the initiatives we took throughout 2022. In addition to improving the company, we also made two acquisitions during the year, adding scale to our Distribution Segment with Mohawk Rubber and enhancing our Material Handling Segment with the addition of a rotational molding facility in Decatur, Georgia. Our team continues to do a nice job growing and transforming the company."

McGaugh continued, "While recognizing that 2022 was a year of record results, I’m excited about Myers’ future, because I continue to believe that the company still has significant unrealized potential. We can see the opportunity and we have the right people in place to capture it. We are now working to institutionalize our improvements into an operating system. In 2023, we will implement the "Myers Operating System" to make sure our improvements are ingrained, lasting and scalable. The Myers Operating System will drive standard work processes across the company, ensuring that best practices are applied across all of our legacy business units as well as our new acquisitions. I am confident the Myers Operating System will further Myers on its journey to become a world class company. I believe there is still a long runway for our company and significant value creation opportunity for our shareholders."

Fourth Quarter 2022 Financial Summary

		Quarter Ended December 31,
(Dollars in thousands, except per share data)		2022		2021		% Inc (Dec)
Net sales		$212,840		$199,579		6.6%
Gross profit		$65,074		$51,816		25.6%
Gross margin		30.6%		26.0%
Operating income		$17,022		$10,750		58.3%
Net income:
Net income		$13,428		$7,255		85.1%
Net income per diluted share		$0.36		$0.20		80.0%
Adjusted operating income		$16,485		$12,468		32.2%
Adjusted net income:
Net income		$11,797		$8,369		41.0%
Net income per diluted share		$0.32		$0.23		39.1%
Adjusted EBITDA		$22,101		$17,601		25.6%

Net sales for the fourth quarter of 2022 were $212.8 million, an increase of $13.3 million, or 6.6%, compared with $199.6 million for the fourth quarter of 2021, primarily driven by incremental sales of $17 million from the Mohawk Rubber acquisition in the Distribution Segment. On an organic basis, higher pricing was offset by lower volume/mix.

Gross profit increased $13.3 million, or 25.6% to $65.1 million, primarily due to continued benefits from pricing actions, lower material costs and the Mohawk Rubber acquisition, partially offset by lower volume and a change in sales mix. While we continue to experience cost inflation, we were able to successfully offset it through our self-help initiatives, including cost reductions. Gross margin expanded to 30.6% compared with 26.0% for the fourth quarter of 2021. Selling, general and administrative expenses increased $6.1 million, or 14.8% to $47.4 million due to the Mohawk Rubber acquisition, higher variable selling expenses, salaries, and incentive compensation. SG&A as a percentage of sales increased to 22.3%, compared with 20.7% in the same period last year. Net income per diluted share was $0.36, compared with $0.20 for the fourth quarter of 2021. Adjusted earnings per diluted share were $0.32, compared with $0.23 for the fourth quarter of 2021.

Fourth 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
Q4 2022 Results	$142.2		$20.9		$21.0		14.7%
Q4 2021 Results	$147.3		$12.3		$13.2		9.0%
Increase (decrease) vs prior year	(3.4)%		69.7%		58.4%		+570 bps

Net sales for the Material Handling Segment during the fourth quarter of 2022 were $142.2 million, a decrease of $5.0 million, or 3.4%, compared with $147.3 million for the fourth quarter of 2021. Net sales increases in the food and beverage and consumer markets were more than offset by decreases in the vehicle and industrial markets. Operating income increased 69.7% to $20.9 million, compared with $12.3 million in 2021. Adjusted operating income increased 58.4% to $21.0 million, compared with $13.2 million in 2021. Contributions from pricing actions and lower material costs more than offset lower sales volume 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 increased variable selling expenses and higher incentive compensation costs. The Material Handling Segment’s adjusted operating income margin increased 570 basis points to 14.7%, compared with 9.0% for the fourth quarter of 2021.

Distribution

	Net Sales		Op Income		Adj Op Income		Adj Op Income Margin
Q4 2022 Results	$70.6		$3.4		$4.1		5.8%
Q4 2021 Results	$52.3		$5.4		$5.4		10.3%
Increase vs prior year	35.0%		(37.2)%		(24.0)%		-450 bps

Net sales for the Distribution Segment during the fourth quarter of 2022 were $70.6 million, an increase of $18.3 million, or 35.0%, compared with $52.3 million for the fourth quarter of 2021. Excluding the incremental $17 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 2%. Operating income decreased 37.2% to $3.4 million, compared with $5.4 million in 2021. Adjusted operating income decreased 24.0% to $4.1 million, compared to $5.4 million in 2021. The contribution from higher pricing wasn't enough to offset higher product costs and increased 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 and incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 5.8%, compared with 10.3% for the fourth quarter of 2021. The Distribution Segment continues to implement price increases to offset cost inflation.

Full Year 2022 Financial Summary

		Year Ended December 31,
(Dollars in thousands, except per share data)		2022		2021		% Inc (Dec)
Net sales		$899,547		$761,435		18.1%
Gross profit		$283,366		$211,421		34.0%
Gross margin		31.5%		27.8%
Operating income		$83,941		$49,301		70.3%
Net income:
Net income		$60,267		$33,538		79.7%
Net income per diluted share		$1.64		$0.92		78.3%
Adjusted operating income		$87,947		$51,949		69.3%
Adjusted net income:
Net income		$61,662		$35,328		74.5%
Net income per diluted share		$1.68		$0.97		73.2%
Adjusted EBITDA		$109,163		$72,371		50.8%

Net sales for the full year of 2022 were $899.5 million, an increase of $138.1 million, or 18.1%, compared with $761.4 million for the full year of 2021, driven by strong sales in both the Material Handling and Distribution segments. Excluding the incremental $64 million of net sales from the Trilogy Plastics and Mohawk Rubber acquisitions, organic net sales increased 10% primarily due to higher pricing.

Gross profit increased $71.9 million, or 34.0% to $283.4 million, primarily due to the contribution from pricing actions and the Trilogy Plastics and Mohawk Rubber acquisitions, partially offset by cost inflation and unfavorable volume/mix. Gross margin improved to 31.5% compared with 27.8% for the full year of 2021. Selling, general and administrative expenses increased $36.0 million, or 22.0% to $199.5 million, reflecting the Mohawk Rubber and Trilogy Plastics acquisitions, higher salaries and incentive compensation costs, increased variable selling expenses and higher repairs and maintenance costs, partly due to inflation. SG&A as a percentage of sales increased to 22.2% for the full year, compared with 21.5% last year. Net income per diluted share was $1.64, compared with $0.92 for the full year of 2021. Adjusted earnings per diluted share were $1.68, compared with $0.97 for the full year of 2021.

Full Year 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
Full Year 2022 Results	$647.6		$104.1		$105.1		16.2%
Full Year 2021 Results	$564.1		$62.2		$62.4		11.1%
Increase (decrease) vs prior year	14.8%		67.4%		68.4%		+510 bps

Net sales for the Material Handling Segment for the full year of 2022 were $647.6 million, an increase of $83.6 million, or 14.8%, compared with $564.1 million for the full year of 2021. Excluding the incremental $24 million of net sales from the Trilogy Plastics acquisition, organic net sales increased 11%. Organic net sales increases in the food and beverage and industrial markets were partially offset by declines in the vehicle and consumer end markets. Operating income increased 67.4% to $104.1 million, compared with $62.2 million in 2021. Adjusted operating income increased 68.4% to $105.1 million, compared with $62.4 million in 2021. Contributions from higher pricing and supply chain initiatives during the year were partially offset by unfavorable volume/mix and increased labor costs. 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 and incentive compensation costs, increased selling expenses and higher repairs and maintenance costs. The Material Handling Segment’s adjusted operating income margin was 16.2%, compared with 11.1% for the full year of 2021.

Distribution

	Net Sales		Op Income		Adj Op Income		Adj Op Income Margin
Full Year 2022 Results	$252.0		$15.9		$16.8		6.7%
Full Year 2021 Results	$197.4		$15.4		$16.0		8.1%
Increase vs prior year	27.6%		2.8%		5.6%		-140 bps

Net sales for the Distribution Segment for the full year of 2022 were $252.0 million, an increase of $54.6 million, or 27.6%, compared with $197.4 million for the full year of 2021. Excluding the incremental $40 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 7%, primarily due to higher pricing. Operating income increased 2.8% to $15.9 million, compared with $15.4 million in 2021. Adjusted operating income increased 5.6% to $16.8 million, compared with $16.0 million in 2021. Contributions from pricing actions were offset by higher product costs and an increase in SG&A expenses. The increase in SG&A expenses was primarily the result of the Mohawk Rubber acquisition and higher salaries and incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 6.7%, compared with 8.1% for the full year of 2021. The Distribution Segment continues to implement price increases to offset cost inflation.

Balance Sheet & Cash Flow

As of December 31, 2022, the Company’s cash on hand totaled $23.1 million. Total debt as of December 31, 2022 was $103.4 million.

For the full year of 2022, cash flow provided by operations was $72.6 million and free cash flow was $48.3 million, compared with cash flow provided by operations of $44.9 million and free cash flow of $27.0 million for the full year of 2021. The increase in cash flow was driven primarily by higher earnings. Capital expenditures for the full year of 2022 were $24.3 million, compared with $17.9 million for the full year of 2021.

2023 Outlook

Based on current exchange rates, market outlook, and business forecast, the Company provided the following outlook for fiscal 2023:

• Net sales growth in the low-to-mid single digit range
• Diluted EPS in the range of $1.51 to $1.81; adjusted diluted EPS in the range of $1.55 to $1.85
• Capital expenditures in the range of $25 to $30 million
• Effective tax rate to approximate 25%

We will continue to monitor market conditions and provides 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 Wednesday, March 1, 2023, at 8:30 a.m. EST. 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=f2ae53b8&confId=47227. Upon registering, each participant will receive access details via email. The live webcast of the conference call can be accessed from the Investor Relations section of the Company's website at www.myersindustries.com. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. Investors can access a replay of the teleconference at (US Local) 1-929-458-6194, (US Toll-Free) 1-866-813-9403. The Access Code is 093105.

Use of Non-GAAP Financial Measures

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

About Myers Industries

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

Caution on Forward-Looking Statements

Statements in this release include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “will”, “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company's control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: residual impacts from the COVID-19 pandemic on our business, conditions, customers and capital position; the impact of the current inflationary environment on local, national and global economic conditions; raw material availability, increases in raw material costs, or other production costs and impacts of other 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; and other important factors detailed previously and from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q. Such reports are available on the Securities and Exchange Commission's public reference facilities and its website at www.sec.gov and on the Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

M-INV

MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data)
		Quarter Ended								Year Ended
		December 31, 2022				December 31, 2021				December 31, 2022				December 31, 2021
Net sales		$	212,840			$	199,579			$	899,547			$	761,435
Cost of sales			147,766				147,763				616,181				550,014
Gross profit			65,074				51,816				283,366				211,421
Selling, general and administrative expenses			47,423				41,302				199,489				163,502
(Gain) loss on disposal of fixed assets			26				(236	)			(667	)			(1,382	)
Other (income) expenses			603				—				603				—
Operating income (loss)			17,022				10,750				83,941				49,301
Interest expense, net			1,654				1,158				5,731				4,208
Income (loss) before income taxes			15,368				9,592				78,210				45,093
Income tax expense (benefit)			1,940				2,337				17,943				11,555
Net income (loss)		$	13,428			$	7,255			$	60,267			$	33,538
Net income (loss) per common share:
Basic		$	0.37			$	0.20			$	1.66			$	0.93
Diluted		$	0.36			$	0.20			$	1.64			$	0.92
Weighted average common shares outstanding:
Basic			36,495,362				36,242,600				36,411,389				36,138,571
Diluted			36,853,237				36,447,287				36,790,839				36,358,969

MYERS INDUSTRIES, INC. SALES AND EARNINGS BY SEGMENT (UNAUDITED) (Dollars in thousands)
		Quarter Ended December 31,												Year Ended December 31,
		2022				2021				% Change				2022				2021				% Change
Net sales
Material Handling		$	142,235			$	147,284				(3.4	)%		$	647,619			$	564,068				14.8	%
Distribution			70,614				52,308				35.0	%			251,966				197,427				27.6	%
Inter-company Sales			(9	)			(13	)			-				(38	)			(60	)			-
Total		$	212,840			$	199,579				6.6	%		$	899,547			$	761,435				18.1	%
Operating income (loss)
Material Handling		$	20,863			$	12,292				69.7	%		$	104,079			$	62,187				67.4	%
Distribution			3,393				5,399				(37.2	)%			15,862				15,428				2.8	%
Corporate			(7,234	)			(6,941	)			-				(36,000	)			(28,314	)			-
Total		$	17,022			$	10,750				58.3	%		$	83,941			$	49,301				70.3	%
Adjusted operating income (loss)
Material Handling		$	20,957			$	13,229				58.4	%		$	105,084			$	62,407				68.4	%
Distribution			4,102				5,399				(24.0	)%			16,842				15,955				5.6	%
Corporate			(8,574	)			(6,160	)			-				(33,979	)			(26,413	)			-
Total		$	16,485			$	12,468				32.2	%		$	87,947			$	51,949				69.3	%
Adjusted operating income margin
Material Handling			14.7	%			9.0	%							16.2	%			11.1	%
Distribution			5.8	%			10.3	%							6.7	%			8.1	%
Corporate		n/a				n/a								n/a				n/a
Total			7.7	%			6.2	%							9.8	%			6.8	%
Adjusted EBITDA
Material Handling		$	25,532			$	17,658				44.6	%		$	122,898			$	80,210				53.2	%
Distribution			4,962				5,994				(17.2	)%			19,731				18,163				8.6	%
Corporate			(8,393	)			(6,051	)			-				(33,466	)			(26,002	)			-
Total		$	22,101			$	17,601				25.6	%		$	109,163			$	72,371				50.8	%
Adjusted EBITDA margin
Material Handling			18.0	%			12.0	%							19.0	%			14.2	%
Distribution			7.0	%			11.5	%							7.8	%			9.2	%
Corporate		n/a				n/a								n/a				n/a
Total			10.4	%			8.8	%							12.1	%			9.5	%

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)
		Quarter Ended December 31, 2022
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	142,235			$	70,614			$	212,849			$	(9	)		$	212,840
Gross profit																			65,074
Add: Restructuring expenses and other adjustments																			94
Adjusted gross profit																			65,168
Gross margin																			30.6	%
Operating income (loss)			20,863				3,393				24,256				(7,234	)			17,022
Add: Acquisition and integration costs			—				106				106				60				166
Add: Restructuring expenses and other adjustments			94				—				94				—				94
Add: Impairment of investment in legacy joint venture			—				603				603				—				603
Less: Environmental reserves, net(2)			—				—				—				(1,400	)			(1,400	)
Adjusted operating income (loss)(1)			20,957				4,102				25,059				(8,574	)			16,485
Adjusted operating income margin			14.7	%			5.8	%			11.8	%		n/a					7.7	%
Add: Depreciation and amortization			4,575				860				5,435				181				5,616
Adjusted EBITDA		$	25,532			$	4,962			$	30,494			$	(8,393	)		$	22,101
Adjusted EBITDA margin			18.0	%			7.0	%			14.3	%		n/a					10.4	%
(1) Includes gross profit adjustments of $94 and SG&A adjustments of $(631)
(2) Includes environmental charges of $4,600 net of expected insurance recoveries of $6,000
		Quarter Ended December 31, 2021
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	147,284			$	52,308			$	199,592			$	(13	)		$	199,579
Gross profit																			51,816
Add: Restructuring expenses and other adjustments																			620
Add: Acquisition and integration costs																			317
Adjusted gross profit																			52,753
Gross margin as adjusted																			26.4	%
Operating income (loss)			12,292				5,399				17,691				(6,941	)			10,750
Add: Environmental charges			—				—				—				700				700
Add: Restructuring expenses and other adjustments			620				—				620				—				620
Add: Acquisition and integration costs			317				—				317				81				398
Adjusted operating income (loss)(1)			13,229				5,399				18,628				(6,160	)			12,468
Adjusted operating income margin			9.0	%			10.3	%			9.3	%		n/a					6.2	%
Add: Depreciation and amortization			4,429				595				5,024				109				5,133
Adjusted EBITDA		$	17,658			$	5,994			$	23,652			$	(6,051	)		$	17,601
Adjusted EBITDA margin			12.0	%			11.5	%			11.9	%		n/a					8.8	%
(1) Includes gross profit adjustments of $937 and SG&A adjustments of $781

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)
		Year Ended December 31, 2022
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	647,619			$	251,966			$	899,585			$	(38	)		$	899,547
Gross profit																			283,366
Add: Restructuring expenses and other adjustments																			744
Adjusted gross profit																			284,110
Gross margin as adjusted																			31.6	%
Operating income (loss)			104,079				15,862				119,941				(36,000	)			83,941
Add: Acquisition and integration costs			—				377				377				621				998
Add: Restructuring expenses and other adjustments			744				—				744				—				744
Add: Loss on sale of assets			261				—				261				—				261
Add: Impairment of investment in legacy joint venture			—				603				603				—				603
Add: Environmental reserves, net(2)			—				—				—				1,400				1,400
Adjusted operating income (loss)(1)			105,084				16,842				121,926				(33,979	)			87,947
Adjusted operating income margin			16.2	%			6.7	%			13.6	%		n/a					9.8	%
Add: Depreciation and amortization			17,814				2,889				20,703				513				21,216
Adjusted EBITDA		$	122,898			$	19,731			$	142,629			$	(33,466	)		$	109,163
Adjusted EBITDA margin			19.0	%			7.8	%			15.9	%		n/a					12.1	%
(1) Includes gross profit adjustments of $744 and SG&A adjustments of $3,262
(2) Includes environmental charges of $7,400 net of expected insurance recoveries of $6,000
		Year Ended December 31, 2021
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	564,068			$	197,427			$	761,495			$	(60	)		$	761,435
Gross profit																			211,421
Add: Restructuring expenses and other adjustments																			867
Add: Acquisition and integration costs																			348
Adjusted gross profit																			212,636
Gross margin as adjusted																			27.9	%
Operating income (loss)			62,187				15,428				77,615				(28,314	)			49,301
Add: Severance costs			—				527				527				318				845
Add: Acquisition and integration costs			348				—				348				883				1,231
Add: Restructuring expenses and other adjustments			867				—				867				—				867
Less: Gain on sale of assets			(995	)			—				(995	)			—				(995	)
Add: Environmental charges			—				—				—				700				700
Adjusted operating income (loss)(1)			62,407				15,955				78,362				(26,413	)			51,949
Adjusted operating income margin			11.1	%			8.1	%			10.3	%		n/a					6.8	%
Add: Depreciation and amortization			17,803				2,208				20,011				411				20,422
Adjusted EBITDA		$	80,210			$	18,163			$	98,373			$	(26,002	)		$	72,371
Adjusted EBITDA margin			14.2	%			9.2	%			12.9	%		n/a					9.5	%
(1) Includes gross profit adjustments of $1,215 and SG&A adjustments of $1,433

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 December 31,								Year Ended December 31,
		2022				2021				2022				2021
Operating income (loss)		$	17,022			$	10,750			$	83,941			$	49,301
Add: Severance costs			—				—				—				845
Add: Restructuring expenses and other adjustments			94				620				744				867
Add: Acquisition and integration costs			166				398				998				1,231
Add/(Less): Loss (gain) on sale of assets			—				—				261				(995	)
Add: Impairment of investment in legacy joint venture			603				—				603				—
Add/(Less): Environmental reserves, net			(1,400	)			700				1,400				700
Adjusted operating income (loss)			16,485				12,468				87,947				51,949
Less: Interest expense, net			(1,654	)			(1,158	)			(5,731	)			(4,208	)
Adjusted income (loss) before taxes			14,831				11,310				82,216				47,741
Less: Income tax expense(1)			(3,034	)			(2,941	)			(20,554	)			(12,413	)
Adjusted net income (loss)		$	11,797			$	8,369			$	61,662			$	35,328
Adjusted earnings per diluted share(2)		$	0.32			$	0.23			$	1.68			$	0.97
(1) Income taxes are calculated using the normalized effective tax rate for each year. The full year rate used in 2022 is 25% and 2021 is 26%.
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Dollars in thousands)
		December 31, 2022				December 31, 2021
Assets
Current Assets
Cash		$	23,139			$	17,655
Accounts receivable, net			133,716				100,691
Income tax receivable			-				2,517
Inventories, net			93,351				93,551
Prepaid expenses and other current assets			7,001				5,500
Total Current Assets			257,207				219,914
Property, plant, & equipment, net			101,566				92,049
Right of use asset - operating leases			28,908				29,285
Deferred income taxes			129				106
Other assets			154,824				143,195
Total Assets		$	542,634			$	484,549
Liabilities & Shareholders' Equity
Current Liabilities
Accounts payable		$	73,536			$	81,690
Accrued expenses			57,531				44,969
Operating lease liability - short-term			6,177				5,341
Finance lease liability - short-term			518				500
Total Current Liabilities			137,762				132,500
Long-term debt			93,962				90,945
Operating lease liability - long-term			22,786				23,815
Finance lease liability - long-term			8,919				9,437
Other liabilities			15,270				13,086
Deferred income taxes			7,508				5,441
Total Shareholders' Equity			256,427				209,325
Total Liabilities & Shareholders' Equity		$	542,634			$	484,549

MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands)
		Year Ended December 31,
		2022				2021
Cash Flows From Operating Activities
Net income		$	60,267			$	33,538
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization			21,216				20,422
Amortization of deferred financing costs			441				463
Non-cash stock-based compensation expense			7,436				3,196
Gain on disposal of fixed assets			(667	)			(1,382	)
Deferred taxes			2,072				2,826
Other			1,520				(1,403	)
Cash flows provided by (used for) working capital
Accounts receivable			(23,625	)			(15,273	)
Inventories			7,955				(24,885	)
Prepaid expenses and other current assets			(1,409	)			(676	)
Accounts payable and accrued expenses			(2,585	)			28,088
Net cash provided by (used for) operating activities			72,621				44,914
Cash Flows From Investing Activities
Capital expenditures			(24,292	)			(17,867	)
Acquisition of business, net of cash acquired			(27,626	)			(35,758	)
Proceeds from sale of property, plant, and equipment			1,537				3,336
Net cash provided by (used for) investing activities			(50,381	)			(50,289	)
Cash Flows From Financing Activities
Borrowings on revolving credit facility			1,264,200				886,600
Repayments on revolving credit facility			(1,261,200	)			(833,600	)
Repayments of long-term debt			—				(40,000	)
Payments on finance lease			(500	)			(402	)
Cash dividends paid			(19,797	)			(19,596	)
Proceeds from issuance of common stock			2,320				3,793
Shares withheld for employee taxes on equity awards			(451	)			(888	)
Deferred financing fees			(889	)			(1,095	)
Net cash provided by (used for) financing activities			(16,317	)			(5,188	)
Foreign exchange rate effect on cash			(439	)			(83	)
Net increase (decrease) in cash			5,484				(10,646	)
Cash at January 1			17,655				28,301
Cash at December 31		$	23,139			$	17,655

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
		December 31, 2022				December 31, 2021
Net cash provided by (used for) operating activities		$	72,621			$	44,914
Capital expenditures			(24,292	)			(17,867	)
Free cash flow		$	48,329			$	27,047
		YTD				YTD				Quarter
		December 31, 2022				September 30, 2022				December 31, 2022
Net cash provided by (used for) operating activities		$	72,621		-	$	50,759		=	$	21,862
Capital expenditures			(24,292	)	-		(17,615	)	=		(6,677	)
Free cash flow		$	48,329		-	$	33,144		=	$	15,185
		YTD				YTD				Quarter
		December 31, 2021				September 30, 2021				December 31, 2021
Net cash provided by (used for) operating activities		$	44,914		-	$	13,544		=	$	31,370
Capital expenditures			(17,867	)	-		(14,264	)	=		(3,603	)
Free cash flow		$	27,047		-	$	(720	)	=	$	27,767

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED)
	Full Year 2023 Guidance
	Low				High
GAAP diluted net income per common share	$	1.51			$	1.81
Add: Net restructuring expenses and other adjustments		0.03				0.03
Add: Acquisition and integration costs		0.01				0.01
Adjusted diluted earnings per share	$	1.55			$	1.85

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005139/en/

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

Source: Myers Industries, Inc.

FAQ

What were Myers Industries' Q4 2022 results?

Myers Industries reported Q4 2022 net sales of $213 million, a 7% increase, with a GAAP EPS of $0.36.

How did Myers Industries perform in full-year 2022?

For the full year 2022, Myers Industries reported net sales of $900 million, an 18% increase, with GAAP EPS of $1.64.

What is the earnings outlook for Myers Industries in 2023?

Myers Industries expects low-to-mid single-digit net sales growth and diluted EPS between $1.51 and $1.81.

What acquisitions did Myers Industries make in 2022?

Myers Industries made two key acquisitions in 2022, enhancing its Distribution Segment with Mohawk Rubber and its Material Handling Segment with a new facility.

What was the cash flow from operations for Myers Industries in Q4 2022?

In Q4 2022, Myers Industries generated $22 million in cash flow from operations.