Myers Industries Reports 2020 Fourth Quarter and Full Year Results

Rhea-AI Summary

Myers Industries (NYSE: MYE) reported its Q4 and full-year 2020 results, highlighting a 17.7% increase in Q4 net sales to $137.5 million, bolstered by the Elkhart Plastics acquisition. However, annual net sales fell 1% to $510.4 million. GAAP income per diluted share from continuing operations was $0.08 in Q4 and $1.02 for the year. Gross profit margin for Q4 decreased to 29% due to rising costs. The company generated $46.5 million in cash flow from operations and aims for long-term growth with its 'One Myers' strategy.

Positive

• Acquisition of Elkhart Plastics contributed incremental sales of $11.8 million in Q4.
• Net sales growth of 17.7% in Q4 compared to the same quarter in 2019, indicating recovery momentum.
• Generated $46.5 million in cash flow from continuing operations for the full year.

Negative

• Annual net sales decreased by 1.0% compared to 2019, indicating potential challenges.
• Gross profit margin for Q4 decreased to 29.0% from 33.6% year-over-year, affected by higher costs.

Myers Industries, Inc. (NYSE: MYE), a manufacturer of polymer 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, 2020.

Fourth Quarter and Full Year 2020 Financial Highlights

• Fourth quarter and full year results include the acquisition of Elkhart Plastics completed in November 2020
• GAAP income per diluted share from continuing operations was $0.08 for the fourth quarter and $1.02 for the full year, compared with $0.16 and $0.68, respectively, for the fourth quarter and full year of 2019
• Adjusted income per diluted share from continuing operations was $0.11 for the fourth quarter and $0.85 for the full year, compared with $0.12 and $0.78, respectively, for the fourth quarter and full year of 2019
• Net sales for the fourth quarter increased 17.7% to $137.5 million, compared with $116.8 million for the fourth quarter of 2019; net sales for the full year decreased 1.0% to $510.4 million, compared with $515.7 million for the full year of 2019
• Gross profit margin was 29.0% for the fourth quarter and 33.7% for the full year, compared with 33.6% and 33.2%, respectively for the fourth quarter and full year of 2019
• Generated cash flow from continuing operations of $46.5 million, and free cash flow of $33.1 million for the full year of 2020

“While our organization was not immune to the effects of the global pandemic in 2020, recovery momentum accelerated over the course of the year and culminated in strong fourth quarter top-line growth of 8% on an organic basis and 18% including our recent acquisition,” said Mike McGaugh, President and Chief Executive Officer of Myers Industries. “We are executing against our long-term strategic plan and completed the acquisition of Elkhart Plastics during the quarter. We’ve already begun to integrate the Elkhart team into the Myers organization and believe our combination will bring new opportunities in the rotational molding industry.”

Mr. McGaugh continued, “We enter 2021 with strong top-line momentum, and a clear long-term vision to transform Myers into a high-growth, customer-centric innovator of engineered plastic solutions. Our ‘One Myers’ strategy remains focused on our four strategic pillars. These include: 1) driving organic growth through sales and commercial excellence, innovation, and eCommerce; 2) complementing our organic growth through bolt-on acquisitions within existing plastics technologies that can expand our opportunities in current and adjacent markets; 3) committing to operational excellence through additional self-help initiatives in purchasing, pricing and SG&A optimization; and 4) developing a high-performance mindset and culture. We have just begun our journey and we believe we have the right strategy to drive long-term value for all of our stakeholders.”

Fourth Quarter 2020 Financial Summary

Net sales for the fourth quarter of 2020, which included $11.8 million of incremental sales from the Elkhart acquisition, were $137.5 million, an increase of $20.7 million, or 17.7%, compared with $116.8 million for the fourth quarter of 2019. The increase was the result of higher sales in both the Material Handling and Distribution Segments. Gross profit increased $0.6 million to $39.8 million, compared with $39.2 million for the fourth quarter of 2019. Gross profit margin decreased to 29.0% compared with 33.6% last year. The gross margin decrease was primarily due to an unfavorable price to cost relationship, higher repairs and maintenance costs, higher employee benefit costs and an unfavorable product mix. Selling, general and administrative (SG&A) expenses increased to

FAQ

What were Myers Industries' net sales for Q4 2020?

Net sales for Q4 2020 were $137.5 million, a 17.7% increase compared to Q4 2019.

How did Myers Industries perform financially in 2020?

The company reported a GAAP income per diluted share of $1.02 for the full year 2020.

What strategic initiatives is Myers Industries focusing on post-acquisition?

Myers is emphasizing organic growth, bolt-on acquisitions, operational excellence, and a high-performance culture.

What impact did the Elkhart Plastics acquisition have on Myers Industries' Q4 2020 results?

The acquisition contributed $11.8 million in incremental sales during Q4 2020.

How did gross profit margin change for Myers Industries in Q4 2020?

The gross profit margin fell to 29.0% in Q4 2020 from 33.6% in Q4 2019.