Myers Industries Reports 2021 Third Quarter Results

Rhea-AI Summary

Myers Industries (NYSE: MYE) reported a 51.3% increase in net sales for Q3 2021, totaling $200.1 million, driven by acquisitions and strong demand across various markets. However, net income per diluted share decreased to $0.22 from $0.24 year-over-year, reflecting inflationary pressures and margin compression due to rising raw material and labor costs. The company is committed to mitigating these challenges while maintaining high service levels. For 2021, net sales growth is expected to be in the mid-to-high 40% range.

Positive

• Net sales increased by 51.3% to $200.1 million in Q3 2021.
• Organic net sales grew 20%, with 7% from volume/mix and 13% from favorable pricing.
• The Material Handling Segment saw a net sales increase of 72.5%.

Negative

• Net income per diluted share decreased by 8.3% year-over-year.
• Gross margin fell to 27.1% from 35.6% due to increased raw material costs.
• Negative free cash flow of $13.8 million, down from positive free cash flow of $16.2 million in Q3 2020.

Sales Increased 51% Including Acquisitions, 20% on an Organic Basis

AKRON, Ohio--(BUSINESS WIRE)-- Myers Industries, Inc. (NYSE: MYE), a leading manufacturer of a wide range of polymer products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the third quarter ended September 30, 2021.

Third Quarter 2021 Financial Highlights

• Net sales increased $67.8 million, or 51.3% to $200.1 million, including $40.8 million, or 30.9% from the Elkhart and Trilogy acquisitions, compared with $132.3 million for the third quarter of 2020
• Net income per diluted share was $0.22, compared with $0.24 for the third quarter of 2020
• Adjusted earnings per diluted share was $0.23, compared with $0.30 for the third quarter of 2020

Myers Industries’ President and CEO, Mike McGaugh said, “Demand across all of our core end markets remains strong and our team continues to execute at a high level, which helped us deliver double-digit top-line growth this quarter. While our revenue performance and competitive position continue to build momentum, we were not immune to the continued inflationary headwinds that are affecting the cost structures of many businesses across the globe. This resulted in margin compression in parts of our business due to increased raw material, labor, and supply chain costs. We are actively working to mitigate these challenges and will continue to adjust price as necessary and prioritize operating excellence initiatives in order to offset their impacts in the coming quarters. Additionally, to support robust sales trends and a growing pipeline, we chose to invest more heavily this period to ensure we maintain high service levels. When coupled with strong sales later in the quarter, higher raw material costs, and the timing of certain cash payments, these investments negatively impacted cash flow. We are confident in our ability to generate positive cash flow on an annual basis and expect to do so again this year.”

McGaugh added, “We are confident in the continued success of our ‘One Myers’ strategy and are pleased with the progress we have made. Since the launch of the strategy one year ago, we have executed and integrated the strategic acquisitions of both Elkhart and Trilogy, which bolstered the already leading rotational molding position of our Material Handling Segment. These strategic actions, combined with our focused expansion efforts across all of our businesses, generated double-digit sales growth in each of the last four quarters. We have also made considerable improvements to our supply chain capabilities and overall operating efficiency, all while continuing to cultivate a high-performance culture.”

McGaugh concluded, “Our ‘One Myers’ strategy positions us well for continued momentum in 2022. The operating discipline we’re developing as we navigate this challenging cost environment should put us in a strong position to drive long-term profitable growth. I look forward to continued momentum as we close out the year and believe our journey has just begun.”

Third Quarter 2021 Financial Summary

		Quarter Ended September 30,
		2021		2020		Inc (Dec)
		(Dollars in millions, except per share data)
Net sales		$200.1		$132.3		51.3%
Operating income		$11.8		$13.1		(10.1)%
Adjusted operating income		$12.5		$15.6		(19.5)%
Adjusted operating income margin		6.3%		11.8%		-550 bps
Net income		$7.9		$8.7		(9.0)%
Adjusted net income		$8.5		$10.6		(20.1)%
Net income per diluted share		$0.22		$0.24		(8.3)%
Adjusted earnings per diluted share		$0.23		$0.30		(23.3)%

Net sales for the third quarter of 2021 were $200.1 million, an increase of $67.8 million, or 51.3%, compared with $132.3 million for the third quarter of 2020, driven by increases in both the Material Handling and Distribution segments. Excluding the incremental $40.8 million of net sales from the Elkhart and Trilogy acquisitions, organic net sales increased 20%, 7% due to higher volume/mix and 13% due to favorable price.

Gross profit increased $7.1 million, or 15.2% to $54.2 million, primarily due to the increased contribution from volume/mix and the Elkhart and Trilogy acquisitions. Partially offsetting these contributions were higher raw material costs, including a $1.6 million increase to the LIFO inventory reserve, and increased labor costs, which were not fully recovered by pricing actions and led to an unfavorable price-to-cost relationship for the quarter. As a result, gross margin was 27.1% compared with 35.6% for the third quarter of 2020. Selling, general and administrative expenses increased $8.6 million, or 25.4% to $42.5 million, reflecting the Elkhart and Trilogy acquisitions, higher salaries, benefits, and incentive compensation costs and increased professional fees. SG&A as a percentage of sales declined to 21.3% in the third quarter, compared with 25.7% in the same period last year. Net income per diluted share was $0.22, compared with $0.24 for the third quarter of 2020. Adjusted earnings per diluted share were $0.23, compared with $0.30 for the third quarter of 2020.

Third Quarter 2021 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
Q3 2021 Results	$149.7		$15.1		$15.2		10.2%
Increase (decrease) vs prior year	72.5%		(3.4)%		(7.6)%		-880 bps

Net sales for the Material Handling Segment during the third quarter of 2021 were $149.7 million, an increase of $62.9 million, or 72.5%, compared with $86.8 million for the third quarter of 2020. Excluding the incremental $40.8 million of net sales from the Elkhart and Trilogy acquisitions, organic net sales increased 7% due to higher volume/mix, 18% due to favorable price and 1% due to foreign currency exchange. Organic net sales increased in the vehicle, industrial, and food and beverage end markets. Operating income decreased 3.4% to $15.1 million, compared with $15.6 million in 2020. Adjusted operating income decreased 7.6% to $15.2 million, compared with $16.5 million in 2020. Contributions from the increase in volume/mix during the quarter were more than offset by higher raw material costs, including a $1.0 million increase to the LIFO inventory reserve, and increased labor costs, which were not fully recovered by pricing actions and led to an unfavorable price-to-cost relationship for the quarter. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to the Elkhart and Trilogy acquisitions and higher salaries, benefits, and incentive compensation costs. The Material Handling Segment’s adjusted operating income margin was 10.2%, compared with 19.0% for the third quarter of 2020.

Distribution

	Net Sales		Op Income		Adj Op Income		Adj Op Income Margin
Q3 2021 Results	$50.4		$4.4		$4.4		8.7%
Increase (decrease) vs prior year	10.8%		(14.0)%		(14.0)%		-250 bps

Net sales for the Distribution Segment during the third quarter of 2021 were $50.4 million, an increase of $4.9 million, or 10.8%, compared with $45.5 million for the third quarter of 2020. The increase was driven by higher volume/mix across both equipment and supplies and pricing actions. Operating income decreased to $4.4 million, compared with $5.1 million in 2020. Contributions from higher volume/mix and pricing actions were more than offset by an increase in SG&A expenses year-over-year. The increase in SG&A expenses was primarily the result of higher salaries, benefits, and incentive compensation costs and increased selling expenses. The Distribution Segment’s adjusted operating income margin was 8.7%, compared with 11.2% for the third quarter of 2020.

Balance Sheet & Cash Flow

As of September 30, 2021, the Company’s cash on hand totaled $14.8 million, compared to $28.3 million on December 31, 2020. Total debt as of September 30, 2021, was $121.4 million.

During the third quarter, cash flow used for operations was $7.8 million resulting in negative free cash flow of $13.8 million, compared with cash flow provided by operations of $19.5 million and free cash flow of $16.2 million for the third quarter of 2020. The decrease in free cash flow was primarily due to higher working capital, which was driven by increases in accounts receivable and inventory and a decrease in accounts payable, and higher capital expenditures. The Company expects working capital trends to turn favorable in the fourth quarter.

2021 Outlook

The Company updated its outlook for fiscal 2021, and currently forecasts:

• Net sales growth in the mid-to-high 40% range, with slightly more than half of the increase due to the Elkhart and Trilogy acquisitions
• Diluted EPS in the range of $0.86 to $1.01; adjusted diluted EPS in the range of $0.90 to $1.05
• Capital expenditures to approximate $16 to $19 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 Thursday, November 4, 2021, 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.incommglobalevents.com/registration/q4inc/9083/myers-industries-2021-third-quarter-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 (226) 828-7578. The Access Code is 465029. The teleconference replay will be available through November 11, 2021.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross profit margin, 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 polymer 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: 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, 2020 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.

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, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Net sales		$	200,058			$	132,258			$	561,856			$	372,902
Cost of sales			145,860				85,191				402,251				240,779
Gross profit			54,198				47,067				159,605				132,123
Selling, general and administrative expenses			42,531				33,927				122,200				95,360
Gain on disposal of fixed assets			(150	)			—				(1,146	)			(7	)
Gain on sale of notes receivable			—				—				—				(11,924	)
Operating income (loss)			11,817				13,140				38,551				48,694
Interest expense, net			1,056				1,204				3,050				3,467
Income (loss) before income taxes			10,761				11,936				35,501				45,227
Income tax expense (benefit)			2,858				3,251				9,218				11,448
Net income (loss)		$	7,903			$	8,685			$	26,283			$	33,779
Net income (loss) per common share:
Basic		$	0.22			$	0.24			$	0.73			$	0.94
Diluted		$	0.22			$	0.24			$	0.72			$	0.94
Weighted average common shares outstanding:
Basic			36,195,560				35,796,247				36,103,894				35,764,822
Diluted			36,402,276				35,943,129				36,328,765				35,938,186

MYERS INDUSTRIES, INC.
SALES AND EARNINGS BY SEGMENT (UNAUDITED)
(Dollars in thousands)
		Quarter Ended September 30,												Nine Months Ended September 30,
		2021				2020				% Change				2021				2020				% Change
Net sales
Material Handling		$	149,664			$	86,769				72.5	%		$	416,784			$	251,700				65.6	%
Distribution			50,413				45,517				10.8	%		$	145,119			$	121,253				19.7	%
Inter-company Sales			(19	)			(28	)			-			$	(47	)		$	(51	)			-
Total		$	200,058			$	132,258				51.3	%		$	561,856			$	372,902				50.7	%
Operating income (loss)
Material Handling		$	15,066			$	15,593				(3.4	)%		$	49,895			$	46,556				7.2	%
Distribution			4,377				5,091				(14.0	)%			10,029				8,577				16.9	%
Corporate			(7,626	)			(7,544	)			-				(21,373	)			(6,439	)			-
Total		$	11,817			$	13,140				(10.1	)%		$	38,551			$	48,694				(20.8	)%
Adjusted operating income (loss)
Material Handling		$	15,242			$	16,498				(7.6	)%		$	49,178			$	47,461				3.6	%
Distribution			4,377				5,091				(14.0	)%			10,556				8,594				22.8	%
Corporate			(7,091	)			(6,032	)			-				(20,253	)			(16,567	)			-
Total		$	12,528			$	15,557				(19.5	)%		$	39,481			$	39,488				(0.0	)%
Adjusted operating income margin
Material Handling			10.2	%			19.0	%							11.8	%			18.9	%
Distribution			8.7	%			11.2	%							7.3	%			7.1	%
Corporate		n/a				n/a								n/a				n/a
Total			6.3	%			11.8	%							7.0	%			10.6	%
Adjusted EBITDA
Material Handling		$	19,379			$	19,888				(2.6	)%		$	62,552			$	61,011				2.5	%
Distribution			4,900				5,647				(13.2	)%			12,169				10,354				17.5	%
Corporate			(6,993	)			(5,933	)			-				(19,952	)			(16,270	)			-
Total		$	17,286			$	19,602				(11.8	)%		$	54,769			$	55,095				(0.6	)%
Adjusted EBITDA margin
Material Handling			12.9	%			22.9	%							15.0	%			24.2	%
Distribution			9.7	%			12.4	%							8.4	%			8.5	%
Corporate		n/a				n/a								n/a				n/a
Total			8.6	%			14.8	%							9.7	%			14.8	%

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
		Quarter Ended September 30, 2021
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	149,664			$	50,413			$	200,077			$	(19	)		$	200,058
Gross profit																			54,198
Add: Restructuring expenses and other adjustments																			145
Adjusted gross profit																			54,343
Gross margin as adjusted																			27.2	%
Operating income (loss)			15,066				4,377				19,443				(7,626	)			11,817
Add: Acquisition and integration costs			31				—				31				535				566
Add: Restructuring expenses and other adjustments			145				—				145				—				145
Adjusted operating income (loss)(1)			15,242				4,377				19,619				(7,091	)			12,528
Adjusted operating income margin			10.2	%			8.7	%			9.8	%		n/a					6.3	%
Add: Depreciation and amortization			4,137				523				4,660				98				4,758
Adjusted EBITDA		$	19,379			$	4,900			$	24,279			$	(6,993	)		$	17,286
Adjusted EBITDA margin			12.9	%			9.7	%			12.1	%		n/a					8.6	%
(1) Includes gross profit adjustments of $176 and SG&A adjustments of $535
		Quarter Ended September 30, 2020
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	86,769			$	45,517			$	132,286			$	(28	)		$	132,258
Gross profit																			47,067
Gross margin																			35.6	%
Operating income (loss)			15,593				5,091				20,684				(7,544	)			13,140
Add: Severance costs			905				—				905				1,512				2,417
Adjusted operating income (loss)(1)			16,498				5,091				21,589				(6,032	)			15,557
Adjusted operating income margin			19.0	%			11.2	%			16.3	%		n/a					11.8	%
Add: Depreciation and amortization			3,390				556				3,946				99				4,045
Adjusted EBITDA		$	19,888			$	5,647			$	25,535			$	(5,933	)		$	19,602
Adjusted EBITDA margin			22.9	%			12.4	%			19.3	%		n/a					14.8	%
(1) Includes SG&A adjustments of $2,417

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)
(Dollars in thousands)
		Nine Months Ended September 30, 2021
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	416,784			$	145,119			$	561,903			$	(47	)		$	561,856
Gross profit																			159,605
Add: Restructuring expenses and other adjustments																			247
Adjusted gross profit																			159,852
Gross margin as adjusted																			28.5	%
Operating income (loss)			49,895				10,029				59,924				(21,373	)			38,551
Add: Severance costs			—				527				527				318				845
Add: Acquisition and integration costs			31				—				31				802				833
Add: Restructuring expenses and other adjustments			247				—				247				—				247
Less: Gain on sale of assets			(995	)			—				(995	)			—				(995	)
Adjusted operating income (loss)(1)			49,178				10,556				59,734				(20,253	)			39,481
Adjusted operating income margin			11.8	%			7.3	%			10.6	%		n/a					7.0	%
Add: Depreciation and amortization			13,374				1,613				14,987				301				15,288
Adjusted EBITDA		$	62,552			$	12,169			$	74,721			$	(19,952	)		$	54,769
Adjusted EBITDA margin			15.0	%			8.4	%			13.3	%		n/a					9.7	%
(1) Includes gross profit adjustments of $278 and SG&A adjustments of $651
		Nine Months Ended September 30, 2020
		Material Handling				Distribution				Segment Total				Corporate & Other				Total
Net sales		$	251,700			$	121,253			$	372,953			$	(51	)		$	372,902
Gross profit																			132,123
Gross margin																			35.4	%
Operating income (loss)			46,556				8,577				55,133				(6,439	)			48,694
Add: Severance costs			905				—				905				1,512				2,417
Add: Restructuring expenses and other adjustments			—				—				—				249				249
Add: Acquisition and integration costs			—				17				17				35				52
Less: Lawn and Garden sale of note/release of lease guarantee liability			—				—				—				(11,924	)			(11,924	)
Adjusted operating income (loss)(1)			47,461				8,594				56,055				(16,567	)			39,488
Adjusted operating income margin			18.9	%			7.1	%			15.0	%		n/a					10.6	%
Add: Depreciation and amortization			13,550				1,760				15,310				297				15,607
Adjusted EBITDA		$	61,011			$	10,354			$	71,365			$	(16,270	)		$	55,095
Adjusted EBITDA margin			24.2	%			8.5	%			19.1	%		n/a					14.8	%
(1) Includes SG&A adjustments of $2,718

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 September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Operating income (loss)		$	11,817			$	13,140			$	38,551			$	48,694
Add: Severance costs			—				2,417				845				2,417
Add: Restructuring expenses and other adjustments			145				—				247				249
Add: Acquisition and integration costs			566				—				833				52
Less: Gain on sale of assets			—				—				(995	)			—
Less: Lawn and Garden sale of note/release of lease guarantee liability			—				—				—				(11,924	)
Adjusted operating income (loss)			12,528				15,557				39,481				39,488
Less: Interest expense, net			(1,056	)			(1,204	)			(3,050	)			(3,467	)
Adjusted income (loss) before taxes			11,472				14,353				36,431				36,021
Less: Income tax expense(1)			(2,983	)			(3,732	)			(9,472	)			(9,365	)
Adjusted net income (loss)		$	8,489			$	10,621			$	26,959			$	26,656
Adjusted earnings per diluted share(2)		$	0.23			$	0.30			$	0.74			$	0.74
(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2021 and 2020 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)
		September 30, 2021				December 31, 2020
Assets
Current Assets
Cash		$	14,829			$	28,301
Accounts receivable, net			116,150				83,701
Income tax receivable			—				1,049
Inventories, net			90,378				65,919
Prepaid expenses and other current assets			7,201				4,760
Total Current Assets			228,558				183,730
Property, plant, & equipment, net			90,496				73,953
Right of use asset - operating leases			30,532				18,390
Deferred income taxes			84				84
Other assets			145,123				123,858
Total Assets		$	494,793			$	400,015
Liabilities & Shareholders' Equity
Current Liabilities
Accounts payable		$	78,552			$	61,150
Accrued expenses			43,629				36,744
Operating lease liability - short-term			5,369				4,359
Finance lease liability - short-term			495				—
Long-term debt - current portion			—				39,994
Total Current Liabilities			128,045				142,247
Long-term debt			111,339				37,582
Operating lease liability - long-term			24,989				13,755
Finance lease liability - long-term			9,563				—
Other liabilities			12,523				14,373
Deferred income taxes			2,809				2,958
Total Shareholders' Equity			205,525				189,100
Total Liabilities & Shareholders' Equity		$	494,793			$	400,015

MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
		Nine Months Ended September 30,
		2021				2020
Cash Flows From Operating Activities
Net income		$	26,283			$	33,779
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation			11,524				10,400
Amortization			4,107				5,507
Non-cash stock-based compensation expense			2,601				2,763
Gain on disposal of fixed assets			(1,146	)			(7	)
Gain on sale of notes receivable			—				(11,924	)
Other			(2,096	)			2,382
Cash flows provided by (used for) working capital
Accounts receivable			(29,528	)			(14,266	)
Inventories			(21,827	)			(3,939	)
Prepaid expenses and other current assets			(2,378	)			(1,728	)
Accounts payable and accrued expenses			26,004				8,367
Net cash provided by (used for) operating activities			13,544				31,334
Cash Flows From Investing Activities
Capital expenditures			(14,264	)			(8,955	)
Acquisition of business			(35,473	)			(716	)
Proceeds from sale of property, plant, and equipment			3,051				—
Proceeds from sale of notes receivable			—				1,200
Net cash provided by (used for) investing activities			(46,686	)			(8,471	)
Cash Flows From Financing Activities
Net borrowings from revolving credit facility			73,400				—
Repayments of long-term debt			(40,000	)			—
Payments on finance lease			(281	)			—
Cash dividends paid			(14,701	)			(14,570	)
Proceeds from issuance of common stock			3,235				367
Shares withheld for employee taxes on equity awards			(853	)			(416	)
Deferred financing fees			(1,095	)			—
Net cash provided by (used for) financing activities			19,705				(14,619	)
Foreign exchange rate effect on cash			(35	)			(25	)
Net (decrease) increase in cash			(13,472	)			8,219
Cash at January 1			28,301				75,527
Cash at September 30		$	14,829			$	83,746

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				Quarter
		September 30, 2021				June 30, 2021				September 30, 2021
Net cash provided by (used for) operating activities		$	13,544		-	$	21,301		=	$	(7,757	)
Capital expenditures			(14,264	)	-		(8,220	)	=		(6,044	)
Free cash flow		$	(720	)	-	$	13,081		=	$	(13,801	)
		YTD				YTD				Quarter
		September 30, 2020				June 30, 2020				September 30, 2020
Net cash provided by (used for) operating activities		$	31,334		-	$	11,785		=	$	19,549
Capital expenditures			(8,955	)	-		(5,589	)	=		(3,366	)
Free cash flow		$	22,379		-	$	6,196		=	$	16,183

MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
(UNAUDITED)
	Full Year 2021 Guidance
	Low				High
GAAP diluted net income per common share	$	0.86			$	1.01
Add: Net restructuring expenses and other adjustments		0.02				0.02
Add: Acquisition and integration costs		0.02				0.02
Adjusted diluted earnings per share	$	0.90			$	1.05

M-INV

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104005154/en/

Monica Vinay

Vice President, Investor Relations & Treasurer

(330) 761-6212

Source: Myers Industries, Inc.

FAQ

What were Myers Industries' Q3 2021 net sales?

Net sales for Q3 2021 were $200.1 million, a 51.3% increase.

How has inflation impacted Myers Industries in Q3 2021?

Inflation led to margin compression and decreased net income per diluted share.

What is the forecast for Myers Industries' sales growth in 2021?

The company expects net sales growth in the mid-to-high 40% range.

What was the impact of acquisitions on Myers Industries in Q3 2021?

Acquisitions contributed $40.8 million to net sales.

What is the adjusted earnings per diluted share for Myers Industries in Q3 2021?

Adjusted earnings per diluted share were $0.23.