Myers Industries Reports 2020 Third Quarter Results

Nachrichtenquelle: Business Wire (engl.)
29.10.2020, 11:30  |  146   |   |   

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 third quarter ended September 30, 2020.

Third Quarter 2020 Financial Highlights

  • GAAP income per diluted share from continuing operations was $0.24, compared with $0.15 for the third quarter of 2019
  • Adjusted income per diluted share from continuing operations was $0.30, compared with $0.15 for the third quarter of 2019
  • Net sales were $132.3 million, up 5.4% compared with $125.5 million for the third quarter of 2019
  • Gross margin increased to 35.6%, compared with 31.5% for the third quarter of 2019
  • Cash flow from continuing operations was $19.5 million and free cash flow was $16.2 million, compared with $23.3 million and $22.1 million, respectively, for the third quarter of 2019

“We are very pleased with our performance for the third quarter, which exceeded our expectations and was an improvement over last year. We successfully capitalized on the strong demand in our consumer end market, which was driven in part by an active hurricane season,” said Mike McGaugh, President and Chief Executive Officer of Myers Industries. “Additionally, as a result of continued momentum in our auto aftermarket end market, our Distribution Segment increased sales by 10%, increased adjusted operating income by 41%, and delivered an adjusted EBITDA margin of 12.4%.”

Strategic Vision Unveiled

Myers also announced today the unveiling of a new, multi-phased strategic vision. The current phase, “Horizon 1,” runs through 2023 and is focused on strengthening the Company through organic growth initiatives, commercial and operational excellence, pursuing bolt-on acquisitions in value added plastics molding, and driving a high-performance culture. Executing on this new strategy will transform the Company’s Material Handling Segment into a high-growth, customer centric innovator of engineered plastic solutions, while continuing to optimize and grow its Distribution Segment.

McGaugh continued, “I joined Myers just over six months ago at a critical time when our markets were under pressure and the world was in the early stages of the pandemic. I’m pleased to report that we were able to develop and align on a path forward for the company. I am confident that this plan will advance our ability to accelerate growth, further improve our operations, and deliver continued financial strength and flexibility. Our vision is to transform Myers into a high-growth, customer-centric innovator of engineered plastic solutions. In addition, we are building a ”One Myers” culture and mindset that drive alignment, centralize key functions, and enable the successful execution of our long-term vision.”

Third Quarter 2020 Financial Summary

Net sales for the third quarter of 2020 were $132.3 million, an increase of $6.8 million, or 5.4%, compared with $125.5 million for the third quarter of 2019. The increase was the result of higher sales in both the Material Handling and Distribution Segments. Gross profit increased $7.5 million to $47.1 million, compared with $39.6 million for the third quarter of 2019. Gross profit margin increased to 35.6% compared with 31.5% last year. The increase was due primarily to higher sales volume and favorable price-cost margin. Additionally, third quarter 2019 gross profit included a $3.5 million charge for estimated product replacement costs. Selling, general and administrative (SG&A) expenses increased to $33.9 million, compared with $31.5 million for the third quarter of 2019, due primarily to executive severance costs and higher incentive compensation costs, partially offset by lower depreciation and amortization expense. GAAP income per diluted share from continuing operations was $0.24, compared with $0.15 for the third quarter of 2019. Adjusted income per diluted share from continuing operations was $0.30, compared with $0.15 for the third quarter of 2019.

Segment Results

Net sales in the Material Handling Segment (consumer, food and beverage, industrial and vehicle end markets) for the third quarter of 2020 were $86.8 million, an increase of $2.7 million or 3.2%, compared with $84.1 million for the third quarter of 2019. The sales increase was due primarily to higher sales volumes in the Company’s consumer end market as a result of heightened storm activity. For the third quarter of 2020, operating income for this segment increased 50.1% to $15.6 million, compared with $10.4 million in 2019. Adjusted operating income increased 58.9% to $16.5 million, compared with $10.4 million in 2019. The increase was due primarily to higher sales volume and favorable price-cost margin. Additionally, third quarter 2019 operating income included a $3.5M charge for estimated product replacement costs. As a result, the Material Handling Segment’s adjusted operating income margin increased to 19.0%, compared with 12.3% for the third quarter of 2019.

Net sales in the Distribution Segment (auto aftermarket end market) for the third quarter of 2020 were $45.5 million, an increase of $4.1 million, or 10.0%, compared with $41.4 million for the third quarter of 2019. Incremental sales from the Tuffy acquisition completed in August 2019 contributed $2.9 million to the increase. Third quarter operating income for this segment increased 50.5% to $5.1 million, compared with $3.4 million in 2019. Adjusted operating income increased 41.3% to $5.1 million, compared with $3.6 million in 2019, primarily due to higher sales volume and cost reductions. The Distribution Segment’s adjusted operating income margin was 11.2%, compared with 8.7% for the third quarter of 2019.

2020 Outlook

The Company has revised its outlook for 2020 revenue. The Company now expects full-year revenue to decline in the low-to-mid single digits, which is a slight improvement from its previous guidance of a decline in the mid-to-high single digit range. The Company does not expect the events that drove sales in the consumer end market to recur in the fourth quarter. The Company is maintaining its previous guidance that depreciation and amortization will be approximately $21 million, net interest expense will be approximately $4 million and capital expenditures will be approximately $15 million. The Company continues to estimate that the effective tax rate will be approximately 26%.

“As we look to the future, we remain committed to successfully managing through these challenging times, while building a company and “One Myers” team that will become stronger and more aligned than ever before,” added McGaugh.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, October 29, 2020, 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: http://www.directeventreg.com/registration/event/3792583. 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. 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 3792583.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Operating income (loss) as adjusted, operating income margin as adjusted, earnings before interest, taxes, depreciation and amortization (EBITDA) as adjusted, EBITDA margin as adjusted, income before taxes as adjusted, income from continuing operations as adjusted, adjusted earnings per diluted share from continuing operations, 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; 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 upcoming 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, 2019 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, 2020

 

 

September 30, 2019

 

 

September 30, 2020

 

 

September 30, 2019

 

Net sales

 

$

132,258

 

 

$

125,480

 

 

$

372,902

 

 

$

398,880

 

Cost of sales

 

 

85,191

 

 

 

85,894

 

 

 

240,779

 

 

 

266,799

 

Gross profit

 

 

47,067

 

 

 

39,586

 

 

 

132,123

 

 

 

132,081

 

Selling, general and administrative expenses

 

 

33,927

 

 

 

31,515

 

 

 

95,360

 

 

 

102,792

 

(Gain) Loss on disposal of fixed assets

 

 

 

 

 

11

 

 

 

(7

)

 

 

(87

)

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

916

 

Gain on sale of notes receivable

 

 

 

 

 

 

 

 

(11,924

)

 

 

 

Operating income (loss)

 

 

13,140

 

 

 

8,060

 

 

 

48,694

 

 

 

28,460

 

Interest expense, net

 

 

1,204

 

 

 

993

 

 

 

3,467

 

 

 

3,059

 

Income (loss) from continuing operations before income taxes

 

 

11,936

 

 

 

7,067

 

 

 

45,227

 

 

 

25,401

 

Income tax expense (benefit)

 

 

3,251

 

 

 

1,848

 

 

 

11,448

 

 

 

6,933

 

Income (loss) from continuing operations

 

 

8,685

 

 

 

5,219

 

 

 

33,779

 

 

 

18,468

 

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

 

 

 

 

 

 

 

 

 

 

 

127

 

Net income (loss)

 

$

8,685

 

 

$

5,219

 

 

$

33,779

 

 

$

18,595

 

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

0.15

 

 

$

0.94

 

 

$

0.52

 

Diluted

 

$

0.24

 

 

$

0.15

 

 

$

0.94

 

 

$

0.52

 

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

 

 

$

 

 

$

 

Diluted

 

$

 

 

$

 

 

$

 

 

$

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

0.15

 

 

$

0.94

 

 

$

0.52

 

Diluted

 

$

0.24

 

 

$

0.15

 

 

$

0.94

 

 

$

0.52

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,796,247

 

 

 

35,495,157

 

 

 

35,764,822

 

 

 

35,451,980

 

Diluted

 

 

35,943,129

 

 

 

35,759,032

 

 

 

35,938,186

 

 

 

35,823,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

% Change

 

 

2020

 

 

2019

 

 

% Change

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

86,769

 

 

$

84,110

 

 

 

3.2

%

 

$

251,700

 

 

$

282,963

 

 

 

(11.0

)%

Distribution

 

 

45,517

 

 

 

41,388

 

 

 

10.0

%

 

 

121,253

 

 

 

115,957

 

 

 

4.6

%

Inter-company Sales

 

 

(28

)

 

 

(18

)

 

 

-

 

 

 

(51

)

 

 

(40

)

 

 

-

 

Total

 

$

132,258

 

 

$

125,480

 

 

 

5.4

%

 

$

372,902

 

 

$

398,880

 

 

 

(6.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

15,593

 

 

$

10,385

 

 

 

50.1

%

 

$

46,556

 

 

$

44,181

 

 

 

5.4

%

Distribution

 

 

5,091

 

 

 

3,382

 

 

 

50.5

%

 

 

8,577

 

 

 

6,923

 

 

 

23.9

%

Corporate

 

 

(7,544

)

 

 

(5,707

)

 

 

-

 

 

 

(6,439

)

 

 

(22,644

)

 

 

-

 

Total

 

$

13,140

 

 

$

8,060

 

 

 

63.0

%

 

$

48,694

 

 

$

28,460

 

 

 

71.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

16,498

 

 

$

10,385

 

 

 

58.9

%

 

$

47,461

 

 

$

45,269

 

 

 

4.8

%

Distribution

 

 

5,091

 

 

 

3,603

 

 

 

41.3

%

 

 

8,594

 

 

 

8,045

 

 

 

6.8

%

Corporate

 

 

(6,032

)

 

 

(5,472

)

 

 

-

 

 

 

(16,567

)

 

 

(18,409

)

 

 

-

 

Total

 

$

15,557

 

 

$

8,516

 

 

 

82.7

%

 

$

39,488

 

 

$

34,905

 

 

 

13.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

19.0

%

 

 

12.3

%

 

 

 

 

 

 

18.9

%

 

 

16.0

%

 

 

 

 

Distribution

 

 

11.2

%

 

 

8.7

%

 

 

 

 

 

 

7.1

%

 

 

6.9

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

11.8

%

 

 

6.8

%

 

 

 

 

 

 

10.6

%

 

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

19,888

 

 

$

15,444

 

 

 

28.8

%

 

$

61,011

 

 

$

61,441

 

 

 

(0.7

)%

Distribution

 

 

5,647

 

 

 

3,952

 

 

 

42.9

%

 

 

10,354

 

 

 

8,919

 

 

 

16.1

%

Corporate

 

 

(5,933

)

 

 

(5,385

)

 

 

-

 

 

 

(16,270

)

 

 

(18,100

)

 

 

-

 

Total

 

$

19,602

 

 

$

14,011

 

 

 

39.9

%

 

$

55,095

 

 

$

52,260

 

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

22.9

%

 

 

18.4

%

 

 

 

 

 

 

24.2

%

 

 

21.7

%

 

 

 

 

Distribution

 

 

12.4

%

 

 

9.5

%

 

 

 

 

 

 

8.5

%

 

 

7.7

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

14.8

%

 

 

11.2

%

 

 

 

 

 

 

14.8

%

 

 

13.1

%

 

 

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended September 30, 2020

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

GAAP Net sales

 

$

86,769

 

 

$

45,517

 

 

$

132,286

 

 

$

(28

)

 

$

132,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

47,067

 

 

 

 

 

 

47,067

 

Gross profit margin

 

 

 

 

 

 

 

 

 

 

35.6

%

 

n/a

 

 

 

35.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

15,593

 

 

 

5,091

 

 

 

20,684

 

 

 

(7,544

)

 

 

13,140

 

Add: Severance costs

 

 

905

 

 

 

 

 

 

905

 

 

 

1,512

 

 

 

2,417

 

Operating income (loss) as adjusted

 

 

16,498

 

 

 

5,091

 

 

 

21,589

 

 

 

(6,032

)

 

 

15,557

 

Operating income margin as adjusted

 

 

19.0

%

 

 

11.2

%

 

 

16.3

%

 

n/a

 

 

 

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

3,390

 

 

 

556

 

 

 

3,946

 

 

 

99

 

 

 

4,045

 

EBITDA as adjusted

 

$

19,888

 

 

$

5,647

 

 

$

25,535

 

 

$

(5,933

)

 

$

19,602

 

EBITDA margin as adjusted

 

 

22.9

%

 

 

12.4

%

 

 

19.3

%

 

n/a

 

 

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2019

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

GAAP Net sales

 

$

84,110

 

 

$

41,388

 

 

$

125,498

 

 

$

(18

)

 

$

125,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

39,586

 

 

 

 

 

 

39,586

 

Gross profit margin

 

 

 

 

 

 

 

 

 

 

31.5

%

 

n/a

 

 

 

31.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

10,385

 

 

 

3,382

 

 

 

13,767

 

 

 

(5,707

)

 

 

8,060

 

Less: Restructuring expenses and other adjustments

 

 

 

 

 

(36

)

 

 

(36

)

 

 

 

 

 

(36

)

Add: Tuffy acquisition costs

 

 

 

 

 

257

 

 

 

257

 

 

 

235

 

 

 

492

 

Operating income (loss) as adjusted

 

 

10,385

 

 

 

3,603

 

 

 

13,988

 

 

 

(5,472

)

 

 

8,516

 

Operating income margin as adjusted

 

 

12.3

%

 

 

8.7

%

 

 

11.1

%

 

n/a

 

 

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

5,059

 

 

 

349

 

 

 

5,408

 

 

 

87

 

 

 

5,495

 

EBITDA as adjusted

 

$

15,444

 

 

$

3,952

 

 

$

19,396

 

 

$

(5,385

)

 

$

14,011

 

EBITDA margin as adjusted

 

 

18.4

%

 

 

9.5

%

 

 

15.5

%

 

n/a

 

 

 

11.2

%

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Nine Months Ended September 30, 2020

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

GAAP Net sales

 

$

251,700

 

 

$

121,253

 

 

$

372,953

 

 

$

(51

)

 

$

372,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

132,123

 

 

 

 

 

 

132,123

 

Gross profit margin

 

 

 

 

 

 

 

 

 

 

35.4

%

 

n/a

 

 

 

35.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP 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: Tuffy acquisition costs

 

 

 

 

 

17

 

 

 

17

 

 

 

35

 

 

 

52

 

Less: Lawn and Garden sale of note/release of lease guarantee liability

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

 

 

(11,924

)

Operating income (loss) as adjusted

 

 

47,461

 

 

 

8,594

 

 

 

56,055

 

 

 

(16,567

)

 

 

39,488

 

Operating income margin as adjusted

 

 

18.9

%

 

 

7.1

%

 

 

15.0

%

 

n/a

 

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

13,550

 

 

 

1,760

 

 

 

15,310

 

 

 

297

 

 

 

15,607

 

EBITDA as adjusted

 

$

61,011

 

 

$

10,354

 

 

$

71,365

 

 

$

(16,270

)

 

$

55,095

 

EBITDA margin as adjusted

 

 

24.2

%

 

 

8.5

%

 

 

19.1

%

 

n/a

 

 

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

GAAP Net sales

 

$

282,963

 

 

$

115,957

 

 

$

398,920

 

 

$

(40

)

 

$

398,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

132,081

 

 

 

 

 

 

132,081

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

172

 

 

 

 

 

 

172

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

132,253

 

 

 

 

 

 

132,253

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

33.2

%

 

n/a

 

 

 

33.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

44,181

 

 

 

6,923

 

 

 

51,104

 

 

 

(22,644

)

 

 

28,460

 

Add: Restructuring expenses and other adjustments(1)

 

 

172

 

 

 

865

 

 

 

1,037

 

 

 

 

 

 

1,037

 

Add: Tuffy acquisition costs

 

 

 

 

 

257

 

 

 

257

 

 

 

235

 

 

 

492

 

Add: Asset impairment

 

 

916

 

 

 

 

 

 

916

 

 

 

 

 

 

916

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

4,000

 

 

 

4,000

 

Operating income (loss) as adjusted

 

 

45,269

 

 

 

8,045

 

 

 

53,314

 

 

 

(18,409

)

 

 

34,905

 

Operating income margin as adjusted

 

 

16.0

%

 

 

6.9

%

 

 

13.4

%

 

n/a

 

 

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

16,216

 

 

 

874

 

 

 

17,090

 

 

 

309

 

 

 

17,399

 

Less: Depreciation adjustments

 

 

(44

)

 

 

 

 

 

(44

)

 

 

 

 

 

(44

)

EBITDA as adjusted

 

$

61,441

 

 

$

8,919

 

 

$

70,360

 

 

$

(18,100

)

 

$

52,260

 

EBITDA margin as adjusted

 

 

21.7

%

 

 

7.7

%

 

 

17.6

%

 

n/a

 

 

 

13.1

%

(1) Includes gross profit adjustments of $172 and SG&A adjustments of $865

 

 

 

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,

 

 

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 

GAAP Operating income (loss)

 

$

13,140

 

 

$

8,060

 

 

$

48,694

 

 

$

28,460

 

 

Add: Severance costs

 

 

2,417

 

 

 

 

 

 

2,417

 

 

 

 

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

(36

)

 

 

249

 

 

 

1,037

 

 

Add: Tuffy acquisition costs

 

 

 

 

 

492

 

 

 

52

 

 

 

492

 

 

Less: Lawn and Garden sale of note/release of lease guarantee liability

 

 

 

 

 

 

 

 

(11,924

)

 

 

 

 

Add: Asset impairment

 

 

 

 

 

 

 

 

 

 

 

916

 

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

4,000

 

 

Operating income as adjusted

 

 

15,557

 

 

 

8,516

 

 

 

39,488

 

 

 

34,905

 

 

Less: Interest expense, net

 

 

(1,204

)

 

 

(993

)

 

 

(3,467

)

 

 

(3,059

)

 

Income before taxes as adjusted

 

 

14,353

 

 

 

7,523

 

 

 

36,021

 

 

 

31,846

 

 

Less: Income tax expense(1)

 

 

(3,732

)

 

 

(2,031

)

 

 

(9,365

)

 

 

(8,598

)

 

Income from continuing operations as adjusted

 

$

10,621

 

 

$

5,492

 

 

$

26,656

 

 

$

23,248

 

 

Adjusted earnings per diluted share from continuing operations

 

$

0.30

 

 

$

0.15

 

 

$

0.74

 

 

$

0.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2020 is 26% and in 2019 is 27%.

 

 

 

 

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

$

83,746

 

 

$

75,527

 

Accounts receivable, net

 

 

75,539

 

 

 

62,279

 

Income tax receivable

 

 

 

 

 

142

 

Inventories, net

 

 

48,137

 

 

 

44,260

 

Prepaid expenses and other current assets

 

 

4,553

 

 

 

2,834

 

Total Current Assets

 

 

211,975

 

 

 

185,042

 

Property, plant, & equipment, net

 

 

53,945

 

 

 

54,964

 

Right of use asset - operating leases

 

 

4,935

 

 

 

5,901

 

Deferred income taxes

 

 

178

 

 

 

5,807

 

Other assets

 

 

95,350

 

 

 

101,425

 

Total Assets

 

$

366,383

 

 

$

353,139

 

Liabilities & Shareholders' Equity

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

47,562

 

 

$

46,867

 

Accrued expenses

 

 

35,663

 

 

 

33,701

 

Operating lease liability - short-term

 

 

1,786

 

 

 

2,057

 

Long-term debt - current portion

 

 

39,975

 

 

 

 

Total Current Liabilities

 

 

124,986

 

 

 

82,625

 

Long-term debt

 

 

37,501

 

 

 

77,176

 

Operating lease liability - long-term

 

 

3,365

 

 

 

4,074

 

Other liabilities

 

 

12,933

 

 

 

22,582

 

Total Shareholders' Equity

 

 

187,598

 

 

 

166,682

 

Total Liabilities & Shareholders' Equity

 

$

366,383

 

 

$

353,139

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

33,779

 

 

$

18,595

 

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

 

 

 

 

 

127

 

Income (loss) from continuing operations

 

 

33,779

 

 

 

18,468

 

Adjustments to reconcile income (loss) from continuing operations to net cash

provided by (used for) operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

10,400

 

 

 

11,505

 

Amortization

 

 

5,507

 

 

 

6,183

 

Non-cash stock-based compensation expense

 

 

2,763

 

 

 

3,348

 

Gain on disposal of fixed assets

 

 

(7

)

 

 

(87

)

Gain on sale of notes receivable

 

 

(11,924

)

 

 

 

Impairment charges

 

 

 

 

 

916

 

Other

 

 

844

 

 

 

441

 

Payments on long-term performance based compensation

 

 

 

 

 

(413

)

Other long-term liabilities

 

 

1,538

 

 

 

3,388

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(14,266

)

 

 

9,775

 

Inventories

 

 

(3,939

)

 

 

2,386

 

Prepaid expenses and other current assets

 

 

(1,728

)

 

 

(877

)

Accounts payable and accrued expenses

 

 

8,367

 

 

 

(15,541

)

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

 

 

31,334

 

 

 

39,492

 

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

 

 

 

 

 

7,297

 

Net cash provided by (used for) operating activities

 

 

31,334

 

 

 

46,789

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(8,955

)

 

 

(5,669

)

Acquisition of business

 

 

(716

)

 

 

(18,000

)

Proceeds from sale of property, plant and equipment

 

 

 

 

 

7,514

 

Proceeds from sale of notes receivable

 

 

1,200

 

 

 

 

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

 

 

(8,471

)

 

 

(16,155

)

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

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

 

(8,471

)

 

 

(16,155

)

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

Cash dividends paid

 

 

(14,570

)

 

 

(14,524

)

Proceeds from issuance of common stock

 

 

367

 

 

 

755

 

Shares withheld for employee taxes on equity awards

 

 

(416

)

 

 

(985

)

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

 

 

(14,619

)

 

 

(14,754

)

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

 

 

 

 

 

 

Net cash provided by (used for) financing activities

 

 

(14,619

)

 

 

(14,754

)

Foreign exchange rate effect on cash

 

 

(25

)

 

 

40

 

Net increase in cash

 

 

8,219

 

 

 

15,920

 

Cash at January 1

 

 

75,527

 

 

 

58,894

 

Cash at September 30

 

$

83,746

 

 

$

74,814

 

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

 

 

 

 

 

 

 

September 30, 2020

 

 

September 30, 2019

 

 

 

 

 

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

 

$

31,334

 

 

$

39,492

 

 

 

 

 

Capital expenditures

 

 

(8,955

)

 

 

(5,669

)

 

 

 

 

Free cash flow

 

$

22,379

 

 

$

33,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

September 30, 2020

 

 

June 30, 2020

 

 

September 30, 2020

 

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

 

$

31,334

 

-

$

11,785

 

=

$

19,549

 

Capital expenditures

 

 

(8,955

)

-

 

(5,589

)

=

 

(3,366

)

Free cash flow

 

$

22,379

 

-

$

6,196

 

=

$

16,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

September 30, 2019

 

 

June 30, 2019

 

 

September 30, 2019

 

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

 

$

39,492

 

-

$

16,173

 

=

$

23,319

 

Capital expenditures

 

 

(5,669

)

-

 

(4,406

)

=

 

(1,263

)

Free cash flow

 

$

33,823

 

-

$

11,767

 

=

$

22,056

 

 

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Disclaimer

Myers Industries Reports 2020 Third Quarter Results 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 third quarter ended September 30, 2020. Third Quarter 2020 Financial …

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