Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q3 2019 Earnings Presentation
16 slides from Myers Industries's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
MYERS INDUSTRIES, INC. Third Quarter 2019 Earnings Presentation 21 54 91 142 184 230 56 67 73 Font Color Exhibit 99.2
Slide 2: Safe Harbor Statement & Non-GAAP Measures
Safe Harbor Statement & Non-GAAP Measures Statements in this presentation 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”,
Slide 3: 2019 Q3 Overview
2019 Q3 Overview Challenges Achievements Completed acquisition of Tuffy Manufacturing Industries, Inc. in August 2019 for $18M Aligns with our strategy focused on growing in key niche markets Extends Myers Tire Supply ‘s position as a leader in the Commercial Fleet market Distribution Segment transf
Slide 4: Q3 Financial Summary
Q3 Financial Summary Operating Highlights Net sales down 7.2%, compared to Q3 2018 Material Handling down $13.6M (-13.9%) Distribution up $3.8M (+10.2%) Adj. gross profit margin expanded to 31.5% from 31.3% Favorable price-cost margin offset lower volume and $3.5M charge recorded for estimated produ
Slide 5: Q3 Segment Results
Q3 Segment Results Material Handling Segment Highlights Net sales down 13.9% vs. Q3 2018 Consumer end market down mid-single digits due to anticipated continued softer demand in our Consumer end market Food and Beverage market down double digits due primarily to lower seed box sales year-over-year I
Slide 6: Balance Sheet and Cash Flow
Working Capital as a % of TTM Sales Balance Sheet and Cash Flow Cash Flow ($M) and Cash Flow as % of Sales Total Debt ($M) and Debt to Adj. EBITDA Operating Cash Flow Free Cash Flow (FCF) 8.5% 8.8% 9.9% 9.6% 1.2x Q3 Highlights Free cash flow generation of $22.1M, compared to $12.7M last year, due to
Slide 7: 2019 Operating Framework
2018 % of Total Sales 2019 Operating Framework High-single digits Double digits High-single digits Low-single digits Mid-single digits Expecting decline from unusually high demand in prior year season as well as challenging growing conditions in the current season; anticipating increased sales to fo
Slide 8: 2019 Updated Outlook
2019 Updated Outlook Net sales growth:~ Down high-single digits D&A: ~ $24M Net interest expense:~ $4M Effective tax rate (normalized):~ 27% Diluted share count:~ 36M Diluted EPS:$0.65 - $0.70 Adjusted diluted EPS: $0.75 - $0.80 Capital expenditures: ~ $10M
Slide 9: Appendix
Appendix
Slide 10: Reconciliation of Non-GAAP Measures: Gross Profit, Operating Income and EBITDA
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)
Slide 11: Reconciliation of Non-GAAP Measures: Gross Profit, Operating Income and EBITDA
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)
Slide 12: Reconciliation of Non-GAAP Measures: Income and Earnings Per Diluted Share
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data)
Slide 13: Reconciliation of Free Cash Flow to Operating Cash Flow
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS (UNAUDITED) (Dollars in thousands)
Slide 14: Reconciliation of Non-GAAP Measures: Adjusted EBITDA and Debt
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA AND DEBT (UNAUDITED) (Dollars in thousands)
Slide 15: Reconciliation of Non-GAAP Measures: Working Capital
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES WORKING CAPITAL (UNAUDITED) (Dollars in thousands)
Slide 16: Slide 16