Myers Industries Announces Third Quarter 2023 Results

Rhea-AI Summary

Myers Industries, Inc. reported net sales of $197.8 million for Q3 2023, a decrease of 13.3% compared to the prior year period. Gross margin increased by 10 basis points to 31.5%. GAAP net income per diluted share was $0.34, while adjusted earnings per diluted share were $0.38. Cash flow provided by operations was $22.1 million and free cash flow was $18.1 million. The Material Handling segment saw a decrease in net sales and operating income, while the Distribution segment experienced a decrease in net sales but an increase in operating income. The company's cash on hand was $24.8 million and total debt was $69.3 million as of September 30, 2023. The company revised its outlook for fiscal 2023, expecting a decline in net sales and adjusted earnings per diluted share.

Positive

• Gross margin increased by 10 basis points to 31.5%.
• Cash flow provided by operations was $22.1 million and free cash flow was $18.1 million.
• The Distribution segment's operating income margin increased to 7.6%.
• The company's cash on hand was $24.8 million and total debt was $69.3 million as of September 30, 2023.

Negative

• Net sales decreased by 13.3% compared to the prior year period.
• GAAP net income per diluted share decreased to $0.34.
• The Material Handling segment saw a decrease in net sales and operating income.

Further Implementation of Myers Business System Supports Gross Margin Expansion

Improving Balance Sheet Strength with Additional Debt Reduction

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 third quarter ended September 30, 2023.

Third Quarter 2023 Financial Highlights

• Net sales of $197.8 million compared to $228.1 million in the prior year period
• Gross margin of 31.5%, up 10 basis points versus the prior year period
• GAAP net income per diluted share of $0.34 compared to $0.37 in the prior year period
• Adjusted earnings per diluted share of $0.38 compared to $0.41 in the prior year period
• Cash flow provided by operations was $22.1 million and free cash flow was $18.1 million

Myers Industries’ President and CEO Mike McGaugh said "In the third quarter, we continue to see the real value of the Myers Business System in driving strong business results, in-spite of continued significant revenue headwinds in several of our key markets. We are managing our business well, as we expanded year-over-year adjusted gross margin for the seventh consecutive quarter while also expanding adjusted EBITDA margin and generating healthy cash flows. These results are strong indications that our Myers Business System and our other self-help initiatives continue to deliver solid results. During the period we saw weakness within our consumer-facing verticals and a less active hurricane season year over year, both of which adversely affected our Material Handling segment. Our Distribution segment posted improved profitability and remains well positioned to capitalize on anticipated longer-term market tailwinds in the tire repair industry. We are keenly focused on protecting profitability by improving our cost structures across both segments as we continue to make investments for the future. We are optimizing our plants in aligning capacity to consistently match production levels, controlling costs, and driving new commercial excellence programs. Through these dedicated efforts, we lessened the total impact of current headwinds, allowing for the Company to continue progressing against its long-term strategic and financial objectives."

McGaugh continued “During the quarter, we generated elevated levels of free cash flow, which allowed us to further strengthen our balance sheet and pay down debt. We will continue to evaluate a number of opportunities within our M&A pipeline and will opportunistically deploy capital towards attractive growth opportunities when they make strategic sense. We look forward to driving future shareholder value through strong execution against our long-term growth strategy and by maintaining strong profitability through all economic conditions.”

Third Quarter 2023 Financial Summary

		Quarter Ended September 30,
(Dollars in thousands, except per share data)		2023		2022		% Inc (Dec)
Net sales		$197,798		$228,065		(13.3)%
Gross profit		$62,379		$71,648		(12.9)%
Gross margin		31.5%		31.4%
Operating income		$18,703		$19,897		(6.0)%
Net income		$12,747		$13,671		(6.8)%
Net income per diluted share		$0.34		$0.37		(8.1)%
Adjusted operating income		$20,039		$22,013		(9.0)%
Adjusted net income		$13,875		$15,018		(7.6)%
Adjusted earnings per diluted share		$0.38		$0.41		(7.3)%
Adjusted EBITDA		$25,648		$27,172		(5.6)%

Net sales were $197.8 million, a decrease of $30.3 million, or 13.3%, compared with $228.1 million for the third quarter of 2022. The decrease was the result of lower volume/mix and lower pricing in certain targeted areas in the Material Handling segment.

Gross profit decreased $9.3 million, or 12.9% to $62.4 million, as the contribution from lower raw material costs was not enough to offset lower volumes and pricing. Gross margin expanded 10 basis points to 31.5% compared with 31.4% for the third quarter of 2022. Selling, general and administrative expenses decreased $8.1 million, or 15.6% to $43.7 million due to lower incentive compensation and facility costs. SG&A as a percentage of sales decreased to 22.1%, compared with 22.7% in the same period last year. Net income per diluted share was $0.34, compared with $0.37 for the third quarter of 2022. Adjusted earnings per diluted share were $0.38, compared with $0.41 for the third quarter of 2022.

Third Quarter 2023 Segment Results

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

Material Handling

	Net Sales		Op Income		Op Income Margin		Adj EBITDA		Adj EBITDA Margin
Q3 2023 Results	$132.5		$20.0		15.1%		$25.1		19.0%
Q3 2022 Results	$155.7		$24.0		15.4%		$28.4		18.3%
$ Increase (decrease) vs prior year	($23.2)		($4.0)				($3.3)
% Increase (decrease) vs prior year	(14.9)%		(16.6)%		-30 bps		(11.6)%		+70 bps
Items in this table may not recalculate due to rounding

Net sales for the Material Handling segment were $132.5 million, a decrease of $23.2 million, or 14.9%, compared with $155.7 million for the third quarter of 2022. Net sales decreased in the vehicle, industrial, food & beverage and consumer end markets, with the greatest reduction in demand for RV products, construction products, and fuel container products, due in part to a slower hurricane season. Operating income decreased 16.6% to $20.0 million, compared with $24.0 million in the third quarter of 2022. Operating income margin decreased to 15.1% compared with 15.4% for the third quarter of 2022. Adjusted EBITDA margin improved by 70 basis points, primarily attributed to self-help initiatives, but partially dampened by a decrease in sales volume. Adjusted EBITDA decreased 11.6% to $25.1 million, compared with $28.4 million in the third quarter of 2022. Lower sales volume, pricing and an unfavorable mix more than offset lower raw material costs. SG&A expenses were lower year-over-year, primarily due to a decrease in facility costs and lower incentive compensation.

Distribution

	Net Sales		Op Income		Op Income Margin		Adj EBITDA		Adj EBITDA Margin
Q3 2023 Results	$65.3		$5.0		7.6%		$6.6		10.1%
Q3 2022 Results	$72.4		$4.9		6.8%		$6.0		8.3%
$ Increase (decrease) vs prior year	($7.1)		$0.1				$0.6
% Increase (decrease) vs prior year	(9.8)%		1.9%		+80 bps		9.4%		+180 bps
Items in this table may not recalculate due to rounding

Net sales for the Distribution segment were $65.3 million, a decrease of $7.1 million, or 9.8%, compared with $72.4 million for the third quarter of 2022. Operating income increased $0.1 million to $5.0 million, compared with $4.9 million for the third quarter of 2022. Adjusted EBITDA increased 9.4% to $6.6 million, compared with $6.0 million in the third quarter of 2022. The increase in operating income and adjusted EBITDA was primarily due to an increase in prices and lower product costs. The decrease in SG&A expenses was primarily the result of lower incentive compensation. The Distribution segment's operating income margin was 7.6% compared with 6.8% for the third quarter of 2022. The Distribution segment’s adjusted EBITDA margin was 10.1%, compared with 8.3% for the third quarter of 2022. The Distribution Segment continues to implement pricing actions to counter cost inflation and improve margin.

Balance Sheet & Cash Flow

As of September 30, 2023, the Company’s cash on hand totaled $24.8 million. Total debt as of September 30, 2023 was $69.3 million.

For the third quarter of 2023, cash flow provided by operations was $22.1 million and free cash flow was $18.1 million, compared with cash flow provided by operations of $16.5 million and free cash flow of $9.8 million for the third quarter of 2022. The increase in cash flow was driven primarily by a decrease in working capital. Capital expenditures for the third quarter of 2023 were $4.1 million, compared with $6.7 million for the third quarter of 2022.

2023 Outlook

Based on current exchange rates, market outlook, and business forecast, the Company revised its outlook for fiscal 2023, and currently forecasts:

• Net sales decline in the mid to high single digit range
• Net income per diluted share in the range of $1.20 to $1.28
• Lowered adjusted earnings per diluted share range of $1.35 to $1.40
• Capital expenditures to be in the range of $25 to $30 million
• Effective tax rate to approximate 25%

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, November 1, 2023, at 8:30 a.m. EDT. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.netroadshow.com/events/login?show=3cf4c0ee&confId=53778 . Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (US Local) 1-929-458-6194 or (US Toll-Free) 1-866-813-9403.

Use of Non-GAAP Financial Measures

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

About Myers Industries

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

Caution on Forward-Looking Statements

Statements in this release include contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company’s actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements.

Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; impacts from the novel coronavirus (“COVID-19”) pandemic; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.

M-INV

MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except share and per share data)
		Quarter Ended								Nine Months Ended
		September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
Net sales		$	197,798			$	228,065			$	621,990			$	686,707
Cost of sales			135,419				156,417				420,136				468,415
Gross profit			62,379				71,648				201,854				218,292
Selling, general and administrative expenses			43,698				51,756				148,130				152,066
(Gain) loss on disposal of fixed assets			(22	)			(5	)			(78	)			(693	)
Operating income (loss)			18,703				19,897				53,802				66,919
Interest expense, net			1,539				1,719				4,975				4,077
Income (loss) before income taxes			17,164				18,178				48,827				62,842
Income tax expense (benefit)			4,417				4,507				12,499				16,003
Net income (loss)		$	12,747			$	13,671			$	36,328			$	46,839
Net income (loss) per common share:
Basic		$	0.35			$	0.37			$	0.99			$	1.29
Diluted		$	0.34			$	0.37			$	0.98			$	1.28
Weighted average common shares outstanding:
Basic			36,811,296				36,472,378				36,712,662				36,383,398
Diluted			36,979,880				36,717,153				36,972,384				36,678,955

MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
		September 30, 2023				December 31, 2022
Assets
Current Assets
Cash		$	24,768			$	23,139
Accounts receivable, net			117,362				133,716
Inventories, net			96,230				93,351
Other current assets			9,051				7,001
Total Current Assets			247,411				257,207
Property, plant, & equipment, net			106,936				101,566
Right of use asset - operating leases			27,384				28,908
Deferred income taxes			129				129
Other assets			149,261				154,824
Total Assets		$	531,121			$	542,634
Liabilities & Shareholders' Equity
Current Liabilities
Accounts payable		$	80,760			$	73,536
Accrued expenses			50,940				57,531
Operating lease liability - short-term			5,604				6,177
Finance lease liability - short-term			581				518
Long-term debt - current portion			25,994				—
Total Current Liabilities			163,879				137,762
Long-term debt			33,987				93,962
Operating lease liability - long-term			22,023				22,786
Finance lease liability - long-term			8,766				8,919
Other liabilities			10,284				15,270
Deferred income taxes			9,961				7,508
Total Shareholders' Equity			282,221				256,427
Total Liabilities & Shareholders' Equity		$	531,121			$	542,634

MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
		Quarter Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Cash Flows From Operating Activities
Net income		$	12,747			$	13,671			$	36,328			$	46,839
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization			5,609				5,159				16,904				15,600
Amortization of deferred financing costs			78				121				234				363
Non-cash stock-based compensation expense			686				1,308				5,078				5,168
(Gain) loss on disposal of fixed assets			(22	)			(5	)			(78	)			(693	)
Other			(19	)			(406	)			2,473				292
Cash flows provided by (used for) working capital
Accounts receivable			(1,332	)			2,449				13,764				(18,751	)
Inventories			1,825				243				(2,905	)			(7,016	)
Prepaid expenses and other current assets			1,775				790				(2,053	)			(4,912	)
Accounts payable and accrued expenses			787				(6,870	)			1,027				13,869
Net cash provided by (used for) operating activities			22,134				16,460				70,772				50,759
Cash Flows From Investing Activities
Capital expenditures			(4,076	)			(6,672	)			(19,292	)			(17,615	)
Acquisition of business, net of cash acquired			—				—				(160	)			(24,253	)
Proceeds from sale of property, plant, and equipment			—				26				142				1,525
Net cash provided by (used for) investing activities			(4,076	)			(6,646	)			(19,310	)			(40,343	)
Cash Flows From Financing Activities
Net borrowings (repayments) from revolving credit facility			(19,000	)			(6,000	)			(34,000	)			7,000
Payments on finance lease			(145	)			(125	)			(403	)			(374	)
Cash dividends paid			(4,970	)			(4,938	)			(15,266	)			(14,872	)
Proceeds from issuance of common stock			379				221				1,948				2,059
Shares withheld for employee taxes on equity awards			(22	)			(103	)			(2,055	)			(450	)
Deferred financing fees			—				(718	)			—				(718	)
Net cash provided by (used for) financing activities			(23,758	)			(11,663	)			(49,776	)			(7,355	)
Foreign exchange rate effect on cash			(224	)			(161	)			(57	)			(292	)
Net increase (decrease) in cash			(5,924	)			(2,010	)			1,629				2,769
Beginning Cash			30,692				22,434				23,139				17,655
Ending Cash		$	24,768			$	20,424			$	24,768			$	20,424

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
		Quarter Ended September 30, 2023
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	132,484			$	65,335			$	197,819			$	(21	)		$	197,798
Net income																			12,747
Net income margin																			6.4	%
Gross profit																			62,379
Add: Restructuring expenses and other adjustments																			307
Adjusted gross profit																			62,686
Gross margin as adjusted																			31.7	%
Operating income (loss)			19,978				4,993				24,971				(6,268	)			18,703
Operating income margin			15.1	%			7.6	%			12.6	%		n/a					9.5	%
Add: Restructuring expenses and other adjustments			529				674				1,203				156				1,359
Add: Acquisition and integration costs			—				77				77				—				77
Less: Environmental reserves, net(2)			—				—				—				(100	)			(100	)
Adjusted operating income (loss)(1)			20,507				5,744				26,251				(6,212	)			20,039
Adjusted operating income margin			15.5	%			8.8	%			13.3	%		n/a					10.1	%
Add: Depreciation and amortization			4,641				842				5,483				126				5,609
Adjusted EBITDA		$	25,148			$	6,586			$	31,734			$	(6,086	)		$	25,648
Adjusted EBITDA margin			19.0	%			10.1	%			16.0	%		n/a					13.0	%
(1) Includes gross profit adjustments of $307 and SG&A adjustments of $1,029
(2) Includes environmental charges of $300 net of probable insurance recoveries of $400
		Quarter Ended September 30, 2022
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	155,658			$	72,416			$	228,074			$	(9	)		$	228,065
Net income																			13,671
Net income margin																			6.0	%
Gross profit																			71,648
Add: Restructuring expenses and other adjustments																			260
Adjusted gross profit																			71,908
Gross margin as adjusted																			31.5	%
Operating income (loss)			23,962				4,899				28,861				(8,964	)			19,897
Operating income margin			15.4	%			6.8	%			12.7	%		n/a					8.7	%
Add: Restructuring expenses and other adjustments			260				—				260				—				260
Add: Acquisition and integration costs			—				271				271				85				356
Add: Environmental reserves, net(2)			—				—				—				1,500				1,500
Adjusted operating income (loss)(1)			24,222				5,170				29,392				(7,379	)			22,013
Adjusted operating income margin			15.6	%			7.1	%			12.9	%		n/a					9.7	%
Add: Depreciation and amortization			4,215				851				5,066				93				5,159
Adjusted EBITDA		$	28,437			$	6,021			$	34,458			$	(7,286	)		$	27,172
Adjusted EBITDA margin			18.3	%			8.3	%			15.1	%		n/a					11.9	%
(1) Includes gross profit adjustments of $260 and SG&A adjustments of $1,856
(2) Includes environmental charges of $1,500 net of probable insurance recoveries of $0

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
		Nine Months Ended September 30, 2023
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	428,341			$	193,693			$	622,034			$	(44	)		$	621,990
Net income																			36,328
Net income margin																			5.8	%
Gross profit																			201,854
Add: Restructuring expenses and other adjustments																			589
Adjusted gross profit																			202,443
Gross margin as adjusted																			32.5	%
Operating income (loss)			70,157				10,628				80,785				(26,983	)			53,802
Operating income margin			16.4	%			5.5	%			13.0	%		n/a					8.6	%
Add: Executive severance costs			—				410				410				289				699
Add: Restructuring expenses and other adjustments			1,225				853				2,078				166				2,244
Add: Acquisition and integration costs			—				297				297				126				423
Add: Environmental reserves, net(2)			—				—				—				2,200				2,200
Adjusted operating income (loss)(1)			71,382				12,188				83,570				(24,202	)			59,368
Adjusted operating income margin			16.7	%			6.3	%			13.4	%		n/a					9.5	%
Add: Depreciation and amortization			13,995				2,505				16,500				404				16,904
Adjusted EBITDA		$	85,377			$	14,693			$	100,070			$	(23,798	)		$	76,272
Adjusted EBITDA margin			19.9	%			7.6	%			16.1	%		n/a					12.3	%
(1) Includes gross profit adjustments of $589 and SG&A adjustments of $4,977
(2) Includes environmental charges of $3,800 net of probable insurance recoveries of $1,600
		Nine Months Ended September 30, 2022
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	505,384			$	181,352			$	686,736			$	(29	)		$	686,707
Net income																			46,839
Net income margin																			6.8	%
Gross profit																			218,292
Add: Restructuring expenses and other adjustments																			650
Adjusted gross profit																			218,942
Gross margin as adjusted																			31.9	%
Operating income (loss)			83,216				12,469				95,685				(28,766	)			66,919
Operating income margin			16.5	%			6.9	%			13.9	%		n/a					9.7	%
Add: Restructuring expenses and other adjustments			650				—				650				—				650
Add: Acquisition and integration costs			—				271				271				561				832
Add: Loss on sale of assets			261				—				261				—				261
Add: Environmental reserves, net(2)			—				—				—				2,800				2,800
Adjusted operating income (loss)(1)			84,127				12,740				96,867				(25,405	)			71,462
Adjusted operating income margin			16.6	%			7.0	%			14.1	%		n/a					10.4	%
Add: Depreciation and amortization			13,239				2,029				15,268				332				15,600
Adjusted EBITDA		$	97,366			$	14,769			$	112,135			$	(25,073	)		$	87,062
Adjusted EBITDA margin			19.3	%			8.1	%			16.3	%		n/a					12.7	%
(1) Includes gross profit adjustments of $650 and SG&A adjustments of $3,893
(2) Includes environmental charges of $2,800 net of probable insurance recoveries of $0

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)
(Dollars in thousands, except per share data)
		Quarter Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Adjusted operating income (loss) reconciliation:
Operating income (loss)		$	18,703			$	19,897			$	53,802			$	66,919
Executive severance costs			—				—				699				—
Restructuring expenses and other adjustments			1,359				260				2,244				650
Acquisition and integration costs			77				356				423				832
Loss on sale of assets			—				—				—				261
Environmental reserves, net			(100	)			1,500				2,200				2,800
Adjusted operating income (loss)		$	20,039			$	22,013			$	59,368			$	71,462
Adjusted EBITDA reconciliation:
Net income (loss)		$	12,747			$	13,671			$	36,328			$	46,839
Income tax expense (benefit)			4,417				4,507				12,499				16,003
Interest expense, net			1,539				1,719				4,975				4,077
Operating income (loss)			18,703				19,897				53,802				66,919
Depreciation and amortization			5,609				5,159				16,904				15,600
Executive severance costs			—				—				699				—
Restructuring expenses and other adjustments			1,359				260				2,244				650
Acquisition and integration costs			77				356				423				832
Loss on sale of assets			—				—				—				261
Environmental reserves, net			(100	)			1,500				2,200				2,800
Adjusted EBITDA		$	25,648			$	27,172			$	76,272			$	87,062
Free cash flow reconciliation:
Net cash provided by (used for) operating activities		$	22,134			$	16,460			$	70,772			$	50,759
Capital expenditures			(4,076	)			(6,672	)			(19,292	)			(17,615	)
Free cash flow		$	18,058			$	9,788			$	51,480			$	33,144

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED)
(Dollars in thousands, except per share data)
		Quarter Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Adjusted net income (loss) reconciliation:
Net income (loss)		$	12,747			$	13,671			$	36,328			$	46,839
Income tax expense (benefit)			4,417				4,507				12,499				16,003
Income (loss) before income taxes			17,164				18,178				48,827				62,842
Executive severance costs			—				—				699				—
Restructuring expenses and other adjustments			1,359				260				2,244				650
Acquisition and integration costs			77				356				423				832
Loss on sale of assets			—				—				—				261
Environmental reserves, net			(100	)			1,500				2,200				2,800
Adjusted income (loss) before income taxes			18,500				20,294				54,393				67,385
Income tax expense, as adjusted (1)			(4,625	)			(5,276	)			(13,598	)			(17,520	)
Adjusted net income (loss)		$	13,875			$	15,018			$	40,795			$	49,865
Adjusted earnings per diluted share reconciliation:
Net income (loss) per common diluted share		$	0.34			$	0.37			$	0.98			$	1.28
Executive severance costs			—				—				0.02				—
Restructuring expenses and other adjustments			0.04				0.01				0.06				0.02
Acquisition and integration costs			0.00				0.01				0.01				0.02
Loss on sale of assets			—				—				—				0.01
Environmental reserves, net			(0.00	)			0.04				0.06				0.08
Adjusted effective income tax rate impact			(0.01	)			(0.02	)			(0.03	)			(0.04	)
Adjusted earnings per diluted share(2)		$	0.38			$	0.41			$	1.10			$	1.36
Items in this table may not recalculate due to rounding
(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2023 is 25% and in 2022 is 26%.
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE
(UNAUDITED)
	Full Year 2023 Guidance
	Low				High
GAAP diluted net income per common share	$	1.20			$	1.28
Add: Executive severance costs		0.02				0.02
Add: Net restructuring expenses and other adjustments		0.11				0.07
Add: Acquisition and integration costs		0.01				0.01
Add: Environmental reserves, net		0.06				0.06
Less: Adjusted effective income tax rate impact (1)		(0.05	)			(0.04	)
Adjusted earnings per diluted share (2)	$	1.35			$	1.40
(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2023 is 25%.
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231101721364/en/

Rich Pasela, Manager, Investor Relations and Treasury, 330-761-6284

Source: Myers Industries, Inc.

FAQ

What were Myers Industries' net sales for Q3 2023?

Myers Industries reported net sales of $197.8 million for Q3 2023.

What was the company's gross margin for Q3 2023?

The company's gross margin increased by 10 basis points to 31.5% for Q3 2023.

What was the adjusted earnings per diluted share for Q3 2023?

The adjusted earnings per diluted share for Q3 2023 were $0.38.

What was the cash flow provided by operations for Q3 2023?

The cash flow provided by operations for Q3 2023 was $22.1 million.

What was the total debt of Myers Industries as of September 30, 2023?

Myers Industries had a total debt of $69.3 million as of September 30, 2023.