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Myers Industries Announces Fourth Quarter and Full Year 2022 Results

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

Outlook for Sustained Revenue Growth in Fiscal 2023

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

 

 

 

 

 

 

 

 

Contacts

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

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