Myers Industries Reports 2019 Fourth Quarter and Full Year Results

Nachrichtenquelle: Business Wire (engl.)
03.03.2020, 12:30  |  131   |   |   

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, 2019.

Fourth Quarter and Full Year 2019 Financial Highlights

  • GAAP income per diluted share from continuing operations was $0.16 for the fourth quarter and $0.68 for the full year, compared with income of $0.09 and a loss of $0.05 (after $33.3 million of pre-tax charges related to the Company’s Lawn and Garden business, which was sold in 2015), respectively, for the fourth quarter and full year of 2018
  • Adjusted income per diluted share from continuing operations was $0.12 for the fourth quarter and $0.78 for the full year, compared with $0.13 and $0.76, respectively, for the fourth quarter and full year of 2018
  • Net sales for the fourth quarter decreased 15.6% to $116.8 million, compared with $138.4 million for the fourth quarter of 2018; net sales for the full year decreased 9.0% to $515.7 million, compared with $566.7 million for the full year of 2018
  • Gross margin increased to 33.6% for the fourth quarter and 33.2% for the full year, compared with 30.4% and 31.6%, respectively for the fourth quarter and full year of 2018
  • Generated cash flow from continuing operations of $47.0 million and free cash flow of $36.7 million for the full year of 2019
  • Completed acquisition of Tuffy Manufacturing for $18 million in August 2019

“During 2019, our team delivered improved bottom line performance and continued margin expansion, despite being challenged by a number of headwinds across our businesses and a leadership change,” said Andrean Horton, Interim President and Chief Executive Officer of Myers Industries. “Importantly, the Distribution Segment continued to successfully execute on its transformation plan, integrated the recent Tuffy acquisition and increased sales and adjusted EBITDA margin. In our Material Handling Segment, we continued to drive margin improvement despite softness in key end markets across the business, including a shift in agricultural demand, wet weather conditions in our consumer market and a weaker vehicle market. While we expect some of these uncertainties will carry into 2020, we do see opportunity as we gain traction in some of our adjacent markets.

“Our teams remain committed to meeting our customers’ needs, operating with an above-average safety record and building an engaged and focused culture. In the fourth quarter, our Board of Directors commenced a search to identify a permanent CEO and our goal is to conclude this process as quickly as possible. We continue to focus on achieving our strategic objectives and generating profitable growth for our shareholders.”

Fourth Quarter 2019 Financial Summary

Net sales for the 2019 fourth quarter decreased $21.6 million or 15.6% to $116.8 million, compared with $138.4 million for the fourth quarter of 2018. The decrease was the result of significant challenges across key markets in the Material Handling Segment. Gross profit decreased to $39.2 million, compared with $42.1 million in 2018. However, gross profit margin increased to 33.6% compared with 30.4% last year as favorable price-cost margin and productivity improvements more than offset the lower sales volume during the quarter. Selling, general and administrative expenses decreased $4.6 million to $30.3 million, compared with $35.0 million in 2018, due primarily to lower compensation costs and savings from the transformation initiatives in the Distribution Segment. GAAP income per diluted share from continuing operations was $0.16, compared to $0.09 for the fourth quarter of 2018. Adjusted income per diluted share from continuing operations was $0.12, compared to $0.13 for the fourth quarter of 2018.

Net sales in the Material Handling Segment (consumer, food and beverage, industrial and vehicle end markets) for the fourth quarter of 2019 were $73.4 million, a decrease of $26.1 million or 26.2%, compared with $99.6 million in 2018. The decrease was due to sales declines across all end markets, but primarily in the Company’s food and beverage (lower seed box sales) end market. For the fourth quarter, adjusted EBITDA declined to $14.0 million, compared with $19.3 million in 2018. The lower volume was partially offset by favorable price-cost margin, productivity improvements and lower variable incentive compensation costs. The Material Handling Segment’s adjusted EBITDA margin for the fourth quarter was 19.1% compared to 19.4% for the fourth quarter of 2018.

Net sales in the Distribution Segment (auto aftermarket end market) for the fourth quarter of 2019 were $43.4 million, an increase of $4.6 million or 11.8%, compared with $38.8 million in 2018. The increase was due mostly to incremental sales from the August 2019 acquisition of Tuffy Manufacturing, Inc. Fourth quarter adjusted EBITDA increased to $3.8 million compared with $0.6 million in 2018, due primarily to savings from the segment’s transformation initiatives and the Tuffy acquisition. The Distribution Segment’s adjusted EBITDA margin for the fourth quarter was 8.8% compared to 1.6% for the fourth quarter of 2018.

Full Year 2019 Financial Summary

Net sales for the full year 2019 decreased $51.0 million or 9.0% to $515.7 million, compared with $566.7 million in 2018. Gross profit decreased to $171.3 million, compared with $179.3 million in 2018. However, gross profit margin increased 160 basis points to 33.2%. Favorable price-cost margin and productivity improvements more than offset the lower sales volume and a $3.5 million charge taken during the third quarter of 2019 for estimated product replacement costs. Selling, general and administrative expenses decreased to $133.1 million, compared with $139.3 million in 2018, due primarily to lower compensation costs and savings from the transformation initiatives in the Distribution Segment. GAAP income per diluted share from continuing operations was $0.68, compared with a loss of $0.05 for the full year of 2018, when the Company recognized $33.3 million of charges related to its Lawn and Garden business which was sold in 2015. Adjusted income per diluted share from continuing operations was $0.78, compared with $0.76 in 2018.

Net sales in the Material Handling Segment for the full year of 2019 were $356.4 million, a decrease of $60.8 million or 14.6%, compared with 2018. The decrease was due to lower sales across all end markets, but primarily in the Company’s food and beverage (lower seed box sales) end market. The segment’s adjusted EBITDA declined 8.9% to $75.5 million for the full year of 2019, compared with $82.8 million in 2018. The lower sales volume and charge for estimated product replacement costs were partially offset by favorable price-cost margin, productivity improvements and lower variable incentive compensation costs. The Material Handling Segment’s adjusted EBITDA margin for the full year increased 130 basis points to 21.2%, compared with 19.9% in 2018.

Net sales in the Distribution Segment for the full year of 2019 were $159.3 million, an increase of $9.7 million or 6.5%, compared with 2018, mostly due to incremental sales from the August 2019 Tuffy acquisition. The segment’s adjusted EBITDA increased 60.0% to $12.7 million compared with $7.9 million in 2018, due primarily to savings from the segment’s transformation initiatives and the Tuffy acquisition. The Distribution Segment’s adjusted EBITDA margin for the full year increased 270 basis points to 8.0%, compared with 5.3% in 2018.

2020 Outlook

The Company anticipates that total revenue will be up mid-single digits year-over-year. The Company anticipates that approximately half of the sales increase will come from incremental sales due to the August 2019 Tuffy acquisition, while the other half of the sales increase will come from the continued transformation in Distribution and improving demand in select markets in Material Handling, including food processing. The Company anticipates depreciation and amortization to be approximately $21 million, net interest expense to be approximately $4 million, and the effective tax rate to be approximately 27%. GAAP income per diluted share from continuing operations is estimated to be in the range of $1.05 to $1.15 and adjusted income per diluted share from continuing operations is estimated to be in the range of $0.85 to $0.95. As previously disclosed, during the first quarter of 2020, the Company will recognize a pre-tax gain of approximately $11.9 million as a result of a sale of notes and release of a lease guarantee liability. The pre-tax gain will be excluded from adjusted earnings. Both the GAAP and adjusted earnings outlooks are based on a diluted share count of 36 million shares. Capital expenditures are anticipated to be approximately $15 million.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Tuesday, March 3, 2020, at 8:30 a.m. ET. The call is anticipated to last approximately one hour and may be accessed by dialing: (US) 833-233-3452 or (Int’l) 647-689-4129. The Conference ID # is 6763017. Callers are asked to sign on at least five minutes in advance. The live webcast of the conference call can be accessed from the Investor Relations section of the Company's website at www.myersindustries.com. Click on the Investor Relations tab to access the webcast. 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. To listen to the telephone replay, callers should dial: (US) 800-585-8367 or (Int’l) 416-621-4642. The Conference ID # is 6763017.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted income per diluted share from continuing operations, operating income as adjusted, income from continuing operations as adjusted, EBITDA as adjusted, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, 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 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 “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: 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; and other risks as detailed in the Company's 10-K and other reports filed with the Securities and Exchange Commission. 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

 

Year Ended

 

 

December 31,
2019

 

December 31,
2018

 

December 31,
2019

 

December 31,
2018

Net sales

 

$

116,818

 

 

$

138,388

 

 

$

515,698

 

 

$

566,735

 

Cost of sales

 

 

77,587

 

 

 

96,292

 

 

 

344,386

 

 

 

387,442

 

Gross profit

 

 

39,231

 

 

 

42,096

 

 

 

171,312

 

 

 

179,293

 

Selling, general and administrative expenses

 

 

30,338

 

 

 

34,975

 

 

 

133,130

 

 

 

139,335

 

(Gain) loss on disposal of fixed assets

 

 

87

 

 

 

88

 

 

 

 

 

 

(8

)

Impairment charges

 

 

 

 

 

 

 

 

916

 

 

 

308

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

33,331

 

Operating income (loss)

 

 

8,806

 

 

 

7,033

 

 

 

37,266

 

 

 

6,327

 

Interest expense, net

 

 

1,024

 

 

 

1,103

 

 

 

4,083

 

 

 

4,938

 

Income (loss) from continuing operations before income taxes

 

 

7,782

 

 

 

5,930

 

 

 

33,183

 

 

 

1,389

 

Income tax expense (benefit)

 

 

2,035

 

 

 

2,804

 

 

 

8,968

 

 

 

3,037

 

Income (loss) from continuing operations

 

 

5,747

 

 

 

3,126

 

 

 

24,215

 

 

 

(1,648

)

Income (loss) from discontinued operations, net of income tax

 

 

(9

)

 

 

(788

)

 

 

118

 

 

 

(1,701

)

Net income (loss)

 

$

5,738

 

 

$

2,338

 

 

$

24,333

 

 

$

(3,349

)

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.16

 

 

$

0.09

 

 

$

0.68

 

 

$

(0.05

)

Diluted

 

$

0.16

 

 

$

0.09

 

 

$

0.68

 

 

$

(0.05

)

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

(0.02

)

 

$

 

 

$

(0.05

)

Diluted

 

$

 

 

$

(0.02

)

 

$

 

 

$

(0.05

)

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.16

 

 

$

0.07

 

 

$

0.68

 

 

$

(0.10

)

Diluted

 

$

0.16

 

 

$

0.07

 

 

$

0.68

 

 

$

(0.10

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,611,892

 

 

 

35,355,863

 

 

 

35,491,958

 

 

 

33,426,855

 

Diluted

 

 

35,724,633

 

 

 

35,576,611

 

 

 

35,653,147

 

 

 

33,426,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended December 31,

 

Year Ended December 31,

 

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

73,444

 

 

$

99,578

 

 

 

(26.2

)%

 

$

356,407

 

 

$

417,199

 

 

 

(14.6

)%

Distribution

 

 

43,392

 

 

 

38,821

 

 

 

11.8

%

 

 

159,349

 

 

 

149,636

 

 

 

6.5

%

Inter-company Sales

 

 

(18

)

 

 

(11

)

 

 

-

 

 

 

(58

)

 

 

(100

)

 

 

-

 

Total

 

$

116,818

 

 

$

138,388

 

 

 

(15.6

)%

 

$

515,698

 

 

$

566,735

 

 

 

(9.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

8,963

 

 

$

13,083

 

 

 

(31.5

)%

 

$

53,144

 

 

$

57,948

 

 

 

(8.3

)%

Distribution

 

 

3,153

 

 

 

371

 

 

 

749.9

%

 

 

10,076

 

 

 

7,441

 

 

 

35.4

%

Corporate

 

 

(3,310

)

 

 

(6,421

)

 

 

-

 

 

 

(25,954

)

 

 

(59,062

)

 

 

-

 

Total

 

$

8,806

 

 

$

7,033

 

 

 

25.2

%

 

$

37,266

 

 

$

6,327

 

 

 

489.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

8,963

 

 

$

13,501

 

 

 

(33.6

)%

 

$

54,232

 

 

$

58,871

 

 

 

(7.9

)%

Distribution

 

 

3,171

 

 

 

371

 

 

 

754.6

%

 

 

11,215

 

 

 

6,776

 

 

 

65.5

%

Corporate

 

 

(4,995

)

 

 

(6,220

)

 

 

-

 

 

 

(23,404

)

 

 

(25,222

)

 

 

-

 

Total

 

$

7,139

 

 

$

7,652

 

 

 

(6.7

)%

 

$

42,043

 

 

$

40,425

 

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

12.2

%

 

 

13.6

%

 

 

 

 

 

 

15.2

%

 

 

14.1

%

 

 

 

 

Distribution

 

 

7.3

%

 

 

1.0

%

 

 

 

 

 

 

7.0

%

 

 

4.5

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

6.1

%

 

 

5.5

%

 

 

 

 

 

 

8.2

%

 

 

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

14,029

 

 

$

19,318

 

 

 

(27.4

)%

 

$

75,470

 

 

$

82,816

 

 

 

(8.9

)%

Distribution

 

 

3,798

 

 

 

631

 

 

 

501.9

%

 

 

12,716

 

 

 

7,945

 

 

 

60.0

%

Corporate

 

 

(4,890

)

 

 

(6,120

)

 

 

-

 

 

 

(22,991

)

 

 

(24,796

)

 

 

-

 

Total

 

$

12,937

 

 

$

13,829

 

 

 

(6.5

)%

 

$

65,195

 

 

$

65,965

 

 

 

(1.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

19.1

%

 

 

19.4

%

 

 

 

 

 

 

21.2

%

 

 

19.9

%

 

 

 

 

Distribution

 

 

8.8

%

 

 

1.6

%

 

 

 

 

 

 

8.0

%

 

 

5.3

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

11.1

%

 

 

10.0

%

 

 

 

 

 

 

12.6

%

 

 

11.6

%

 

 

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended December 31, 2019

 

 

Material
Handling

 

Distribution

 

Segment
Total

 

Corporate
& Other

 

Total

GAAP Net sales

 

$

73,444

 

 

$

43,392

 

 

$

116,836

 

 

$

(18

)

 

$

116,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

39,231

 

 

 

 

 

 

39,231

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

39,231

 

 

 

 

 

 

39,231

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

33.6

%

 

n/a

 

 

 

33.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

8,963

 

 

 

3,153

 

 

 

12,116

 

 

 

(3,310

)

 

 

8,806

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

265

 

 

 

265

 

Add: Tuffy acquisition costs

 

 

 

 

 

18

 

 

 

18

 

 

 

81

 

 

 

99

 

Less: CEO stock award reversal

 

 

 

 

 

 

 

 

 

 

 

(2,031

)

 

 

(2,031

)

Operating income (loss) as adjusted

 

 

8,963

 

 

 

3,171

 

 

 

12,134

 

 

 

(4,995

)

 

 

7,139

 

Operating income margin as adjusted

 

 

12.2

%

 

 

7.3

%

 

 

10.4

%

 

n/a

 

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

5,066

 

 

 

627

 

 

 

5,693

 

 

 

105

 

 

 

5,798

 

Less: Depreciation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as adjusted

 

$

14,029

 

 

$

3,798

 

 

$

17,827

 

 

$

(4,890

)

 

$

12,937

 

EBITDA margin as adjusted

 

 

19.1

%

 

 

8.8

%

 

 

15.3

%

 

n/a

 

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31, 2018

 

 

Material
Handling

 

Distribution

 

Segment
Total

 

Corporate
& Other

 

Total

GAAP Net sales

 

$

99,578

 

 

$

38,821

 

 

$

138,399

 

 

$

(11

)

 

$

138,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

42,096

 

 

 

 

 

 

42,096

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

171

 

 

 

 

 

 

171

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

42,267

 

 

 

 

 

 

42,267

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

30.5

%

 

n/a

 

 

 

30.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

13,083

 

 

 

371

 

 

 

13,454

 

 

 

(6,421

)

 

 

7,033

 

Add: Restructuring expenses and other adjustments(1)

 

 

418

 

 

 

 

 

 

418

 

 

 

201

 

 

 

619

 

Operating income (loss) as adjusted

 

 

13,501

 

 

 

371

 

 

 

13,872

 

 

 

(6,220

)

 

 

7,652

 

Operating income margin as adjusted

 

 

13.6

%

 

 

1.0

%

 

 

10.0

%

 

n/a

 

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

5,883

 

 

 

260

 

 

 

6,143

 

 

 

100

 

 

 

6,243

 

Less: Depreciation adjustments

 

 

(66

)

 

 

 

 

 

(66

)

 

 

 

 

 

(66

)

EBITDA as adjusted

 

$

19,318

 

 

$

631

 

 

$

19,949

 

 

$

(6,120

)

 

$

13,829

 

EBITDA margin as adjusted

 

 

19.4

%

 

 

1.6

%

 

 

14.4

%

 

n/a

 

 

 

10.0

%

(1) Includes gross profit adjustments of $171 and SG&A adjustments of $448

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

 

Year Ended December 31, 2019

 

 

Material
Handling

 

Distribution

 

Segment
Total

 

Corporate
& Other

 

Total

GAAP Net sales

 

$

356,407

 

 

$

159,349

 

 

$

515,756

 

 

$

(58

)

 

$

515,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

171,312

 

 

 

 

 

 

171,312

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

172

 

 

 

 

 

 

172

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

171,484

 

 

 

 

 

 

171,484

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

33.2

%

 

n/a

 

 

 

33.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

53,144

 

 

 

10,076

 

 

 

63,220

 

 

 

(25,954

)

 

 

37,266

 

Add: Restructuring expenses and other adjustments(1)

 

 

172

 

 

 

865

 

 

 

1,037

 

 

 

265

 

 

 

1,302

 

Add: Tuffy acquisition costs

 

 

 

 

 

274

 

 

 

274

 

 

 

316

 

 

 

590

 

Add: Asset impairment

 

 

916

 

 

 

 

 

 

916

 

 

 

 

 

 

916

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

4,000

 

 

 

4,000

 

Less: CEO stock award reversal

 

 

 

 

 

 

 

 

 

 

 

(2,031

)

 

 

(2,031

)

Operating income (loss) as adjusted

 

 

54,232

 

 

 

11,215

 

 

 

65,447

 

 

 

(23,404

)

 

 

42,043

 

Operating income margin as adjusted

 

 

15.2

%

 

 

7.0

%

 

 

12.7

%

 

n/a

 

 

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

21,282

 

 

 

1,501

 

 

 

22,783

 

 

 

413

 

 

 

23,196

 

Less: Depreciation adjustments

 

 

(44

)

 

 

 

 

 

(44

)

 

 

 

 

 

(44

)

EBITDA as adjusted

 

$

75,470

 

 

$

12,716

 

 

$

88,186

 

 

$

(22,991

)

 

$

65,195

 

EBITDA margin as adjusted

 

 

21.2

%

 

 

8.0

%

 

 

17.1

%

 

n/a

 

 

 

12.6

%

(1) Includes gross profit adjustments of $172 and SG&A adjustments of $1,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

Material
Handling

 

Distribution

 

Segment
Total

 

Corporate
& Other

 

Total

GAAP Net sales

 

$

417,199

 

 

$

149,636

 

 

$

566,835

 

 

$

(100

)

 

$

566,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

179,293

 

 

 

 

 

 

179,293

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

746

 

 

 

 

 

 

746

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

180,039

 

 

 

 

 

 

180,039

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

31.8

%

 

n/a

 

 

 

31.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

57,948

 

 

 

7,441

 

 

 

65,389

 

 

 

(59,062

)

 

 

6,327

 

Add: Restructuring expenses and other adjustments(1)

 

 

1,131

 

 

 

 

 

 

1,131

 

 

 

 

 

 

1,131

 

Add: Charges related to 2015 sale of Lawn & Garden business(2)

 

 

 

 

 

 

 

 

 

 

 

33,331

 

 

 

33,331

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

201

 

 

 

201

 

Add: Asset impairment

 

 

 

 

 

 

 

 

 

 

 

308

 

 

 

308

 

Add: Loss (gain) on sale of assets

 

 

(208

)

 

 

(665

)

 

 

(873

)

 

 

 

 

 

(873

)

Operating income (loss) as adjusted

 

 

58,871

 

 

 

6,776

 

 

 

65,647

 

 

 

(25,222

)

 

 

40,425

 

Operating income margin as adjusted

 

 

14.1

%

 

 

4.5

%

 

 

11.6

%

 

n/a

 

 

 

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

24,158

 

 

 

1,169

 

 

 

25,327

 

 

 

426

 

 

 

25,753

 

Less: Depreciation adjustments

 

 

(213

)

 

 

 

 

 

(213

)

 

 

 

 

 

(213

)

EBITDA as adjusted

 

$

82,816

 

 

$

7,945

 

 

$

90,761

 

 

$

(24,796

)

 

$

65,965

 

EBITDA margin as adjusted

 

 

19.9

%

 

 

5.3

%

 

 

16.0

%

 

n/a

 

 

 

11.6

%

(1) Includes gross profit adjustments of $746 and SG&A adjustments of $385

 

(2) Includes $23,008 for provision for loss on note receivable and $10,323 for lease guarantee

 

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,

 

 

2019

 

2018

 

2019

 

2018

GAAP Operating income (loss)

 

$

8,806

 

 

$

7,033

 

 

$

37,266

 

 

$

6,327

 

Add: Restructuring expenses and other adjustments

 

 

265

 

 

 

619

 

 

 

1,302

 

 

 

1,131

 

Add: Tuffy acquisition costs

 

 

99

 

 

 

 

 

 

590

 

 

 

 

Less: CEO stock award reversal

 

 

(2,031

)

 

 

 

 

 

(2,031

)

 

 

 

Add: Asset impairments

 

 

 

 

 

 

 

 

916

 

 

 

308

 

Add: Environmental charges

 

 

 

 

 

 

 

 

4,000

 

 

 

201

 

Add: Charges related to 2015 sale of Lawn & Garden business(1)

 

 

 

 

 

 

 

 

 

 

 

33,331

 

Add: Loss (gain) on sale of assets

 

 

 

 

 

 

 

 

 

 

 

(873

)

Operating income as adjusted

 

 

7,139

 

 

 

7,652

 

 

 

42,043

 

 

 

40,425

 

Less: Interest expense, net

 

 

(1,024

)

 

 

(1,103

)

 

 

(4,083

)

 

 

(4,938

)

Income before taxes as adjusted

 

 

6,115

 

 

 

6,549

 

 

 

37,960

 

 

 

35,487

 

Less: Income tax expense(2)

 

 

(1,651

)

 

 

(1,781

)

 

 

(10,249

)

 

 

(9,652

)

Income from continuing operations as adjusted

 

$

4,464

 

 

$

4,768

 

 

$

27,711

 

 

$

25,835

 

Adjusted earnings per diluted share from continuing operations(3)

 

$

0.12

 

 

$

0.13

 

 

$

0.78

 

 

$

0.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes $23,008 for provision for loss on note receivable and $10,323 for lease guarantee.

 

(2) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2019 is 27% and in 2018 was 27.2%.

 

(3) Adjusted earnings per diluted share for year ended December 31, 2018 was calculated using 33,825,370 shares.

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

December 31, 2019

 

December 31, 2018

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

75,527

 

$

58,894

Accounts receivable, net

 

 

62,279

 

 

72,939

Income tax receivable

 

 

142

 

 

4,892

Inventories, net

 

 

44,260

 

 

43,596

Prepaid expenses and other current assets

 

 

2,834

 

 

2,534

Total Current Assets

 

 

185,042

 

 

182,855

Property, plant, & equipment, net

 

 

54,964

 

 

65,460

Right of use asset - operating leases

 

 

5,901

 

 

Deferred income taxes

 

 

5,807

 

 

5,270

Other assets

 

 

101,425

 

 

95,060

Total Assets

 

$

353,139

 

$

348,645

Liabilities & Shareholders' Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

46,867

 

$

60,849

Accrued expenses

 

 

33,701

 

 

36,574

Operating lease liability - short-term

 

 

2,057

 

 

Total Current Liabilities

 

 

82,625

 

 

97,423

Long-term debt

 

 

77,176

 

 

76,790

Operating lease liability - long-term

 

 

4,074

 

 

Other liabilities

 

 

22,582

 

 

19,794

Total Shareholders' Equity

 

 

166,682

 

 

154,638

Total Liabilities & Shareholders' Equity

 

$

353,139

 

$

348,645

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Year Ended December 31,

 

 

2019

 

2018

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

24,333

 

 

$

(3,349

)

Income (loss) from discontinued operations, net of income taxes

 

 

118

 

 

 

(1,701

)

Income (loss) from continuing operations

 

 

24,215

 

 

 

(1,648

)

Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

15,120

 

 

 

17,638

 

Amortization

 

 

8,463

 

 

 

8,485

 

Accelerated depreciation associated with restructuring activities

 

 

 

 

 

16

 

Non-cash stock-based compensation expense

 

 

1,715

 

 

 

4,257

 

(Gain) loss on disposal of fixed assets

 

 

 

 

 

(8

)

Provision for loss on note receivable

 

 

 

 

 

23,008

 

Lease guarantee contingency

 

 

 

 

 

10,323

 

Deferred taxes

 

 

(922

)

 

 

(9,450

)

Interest income accrued on note receivable

 

 

 

 

 

(361

)

Impairment charges

 

 

916

 

 

 

308

 

Other

 

 

583

 

 

 

457

 

Payments on performance based compensation

 

 

(413

)

 

 

(1,249

)

Other long-term liabilities

 

 

3,578

 

 

 

180

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

Accounts receivable

 

 

12,479

 

 

 

4,927

 

Inventories

 

 

2,222

 

 

 

3,151

 

Prepaid expenses and other current assets

 

 

(243

)

 

 

(353

)

Accounts payable and accrued expenses

 

 

(20,687

)

 

 

713

 

Net cash provided by (used for) operating activities - continuing operations

 

 

47,026

 

 

 

60,394

 

Net cash provided by (used for) operating activities - discontinued operations

 

 

7,297

 

 

 

858

 

Net cash provided by (used for) operating activities

 

 

54,323

 

 

 

61,252

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(10,294

)

 

 

(5,123

)

Acquisition of business

 

 

(18,000

)

 

 

 

Proceeds from sale of property, plant and equipment

 

 

7,537

 

 

 

2,633

 

Net cash provided by (used for) investing activities - continuing operations

 

 

(20,757

)

 

 

(2,490

)

Net cash provided by (used for) investing activities - discontinued operations

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

 

(20,757

)

 

 

(2,490

)

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

Net repayments of credit facility

 

 

 

 

 

(74,557

)

Cash dividends paid

 

 

(19,316

)

 

 

(17,862

)

Proceeds from issuance of common stock

 

 

3,336

 

 

 

2,853

 

Proceeds from public offering of common stock, net of equity issuance costs

 

 

 

 

 

79,522

 

Shares withheld for employee taxes on equity awards

 

 

(1,008

)

 

 

(714

)

Net cash provided by (used for) financing activities - continuing operations

 

 

(16,988

)

 

 

(10,758

)

Net cash provided by (used for) financing activities - discontinued operations

 

 

 

 

 

 

Net cash provided by (used for) financing activities

 

 

(16,988

)

 

 

(10,758

)

Foreign exchange rate effect on cash

 

 

55

 

 

 

(289

)

Net increase in cash and restricted cash

 

 

16,633

 

 

 

47,715

 

Cash and restricted cash at January 1

 

 

58,894

 

 

 

11,179

 

Cash and restricted cash at December 31

 

$

75,527

 

 

$

58,894

 

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, 2019

 

December 31, 2018

 

 

 

 

Net cash provided by (used for) operating activities - continuing operations

 

$

47,026

 

 

$

60,394

 

 

 

 

 

Capital expenditures

 

 

(10,294

)

 

 

(5,123

)

 

 

 

 

Free cash flow

 

$

36,732

 

 

$

55,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

YTD

 

Quarter

 

 

December 31, 2019

 

September 30, 2019

 

December 31, 2019

Net cash provided by (used for) operating activities - continuing operations

 

$

47,026

 

-

$

39,492

 

=

$

7,534

 

Capital expenditures

 

 

(10,294

)

-

 

(5,669

)

=

 

(4,625

)

Free cash flow

 

$

36,732

 

-

$

33,823

 

=

$

2,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

YTD

 

Quarter

 

 

December 31, 2018

 

September 30, 2018

 

December 31, 2018

Net cash provided by (used for) operating activities - continuing operations

 

$

60,394

 

-

$

41,121

 

=

$

19,273

 

Capital expenditures

 

 

(5,123

)

-

 

(3,560

)

=

 

(1,563

)

Free cash flow

 

$

55,271

 

-

$

37,561

 

=

$

17,710

 

 

Myers Industries Aktie jetzt ab 0€ handeln - auf Smartbroker.de



Diesen Artikel teilen

0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Meistgelesene Nachrichten des Autors

Titel
Titel
Titel
Titel