Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q3 2024 Earnings Presentation
23 slides from Myers Industries's earnings presentation, Nov 4, 2024
Slide 1: 2024 Third Quarter Results
2024 Third Quarter Results November 4, 2024
Slide 2: Safe Harbor Statement & Non-GAAP Measures
Safe Harbor Statement & Non-GAAP Measures Statements in this presentation contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans,
Slide 3: Today's Speakers
Today’s Speakers Dave Basque Grant Fitz Interim President and Chief Executive Vice President and Chief Executive Officer Financial Officer Meghan Beringer Sr. Director, Investor Relations 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 808-2885 mberinger@myersind.com www.myersind.com 3
Slide 4: Third Quarter 2024 Performance Review
Third Quarter 2024 Performance Review ❑ Signature Systems and Scepter contributed to Q3 results ➢ Adjusted gross margin of 32.4%, up 70 basis points versus the prior-year period ➢ Scepter’s sales increased nearly 60% for the quarter compared to Q3 2023 ❑ Soft demand continues in key end markets due
Slide 5: Our Strategic Lens
Our Strategic Lens Material Handling Distribution Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Branded, high-performance Designed and tailored solutions High quality repair and products that move, store and that meet our customers’ replacement parts for protect unique n
Slide 6: Progress since Q2 Earnings Call
Progress since Q2 Earnings Call Grow Maximize Value Storage, Handling & Engineered Automotive Protection Solutions Aftermarket Material Handling Segment Distribution Segment ❑ Continued strong growth in Infrastructure and Military ❑ Appointed a new leadership team for Distribution with end-markets t
Slide 7: Expanding our Market Reach
Expanding our Market Reach ❑ Given their ability to float, mats were used by our customers to support recent storm restoration efforts ❑ Expanding customer base with new customers contributing over 20% of revenue in 2024 7
Slide 8: Expanding our Market Reach
Expanding our Market Reach Military End Market Revenue Powered Fueling Station Well positioned for long term, double-digit Prestigious 2024 Pro Tool Innovation growth in the Military end market Award Winner $40M $25M $10M 2023 Actual 2024 Forecast Projected 2025 8
Slide 9: Q3 Financial Performance
Q3 Financial Performance (In $ millions except EPS) Q3 ’24 Q3 ’23 % Change Net Sales $205.1 $197.8 3.7% Adj. Gross Profit $66.3 $62.7 5.8% Adj. Gross Margin 32.4% 31.7% +700 bps Adj. Op Income $20.5 $20.0 2.5% Adj. Op Income Margin 10.0% 10.1% -10 bps Adj. EBITDA $30.7 $25.6 19.8% Adj. EBITDA Margin
Slide 10: Q3 Financial Performance by Segment
Q3 Financial Performance Material Handling Distribution (In $ millions) Q3 ’24 Q3 ’23 % Change (In $ millions) Q3 ‘24 Q3 ’23 % Change Net Sales $150.7 $132.5 13.8% Net Sales $54.4 $65.3 (16.8)% Adj Op Income $24.3 $20.5 18.5% Adj Op Income $2.4 $5.7 (59.1)% Adj Op Income Margin 16.1% 15.5% +60 bps A
Slide 11: Accelerating Action
Accelerating Action Annualized Cost Improvement Plan $15M ➢ Initiatives will help mitigate revenue headwinds ➢ Incremental to our the $8M in synergies from the Signature Systems acquisition $9M These proactive steps will improve our cost competitiveness and position Myers for longer term growth once
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Highlights Net Debt ($M) and Net Leverage Ratio1 ❑ Delivered operating cash flow of $17.3 million and free cash flow of $10.1 million $394.5 $390.1 $385.1 ❑ Cash balance of $29.7M at quarter-end. Net leverage of 2.7x following the acquisition of Signature Systems financed
Slide 13: Leveraging Myers Cashflow Generation
Leveraging Myers Cashflow Generation Capital Allocation Priorities ❑ Paydown Debt - projected cashflow will allow for continued paydown of debt, targeting the Net Leverage Ratio1 to be ~2x by the end of next year ❑ Strong balance sheet - maintain ample liquidity via $30M cash on hand at the end of Q
Slide 14: Full Year Fiscal 2024 Outlook
Full Year Fiscal 2024 Outlook ($ in Millions except EPS) Prior Outlook Current Outlook Net Sales Growth 5% - 10% 0% - 5% Diluted EPS $0.76 - $0.91 $0.11 - $0.21 Adjusted Diluted EPS $1.05 - $1.20 $0.92 - $1.02 Capital Expenditures $30M - $35M $28M - $32M Effective Tax Rate ~26% ~26% Other Items ❑ De
Slide 15: Commitment Moving Forward
Commitment Moving Forward ❑ Executing on our long-term strategy ❑ Delivering on our further commitment to implement $15M of new annualized costs savings to help mitigate end market headwinds ❑ Stabilizing the Distribution business ❑ Increasing our participation in attractive, high growth end markets
Slide 16: Appendix
INDUSTRIES 16
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Quarter Ended September 30, 2024 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 150,
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Quarter Ended September 30, 2023 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 132,
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED) (Dollars in thousands) Quarter Ended September 30, 2024 2023 Adjusted operating income (loss) reconciliation: Operating i
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data) Quarter Ended September 30, 2024 2023 Adjusted net income (loss) reconciliati
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES WORKING CAPITAL (UNAUDITED) (Dollars in thousands) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net sales $ 212,840 $ 215,739 $ 208,453 $ 197,798 $ 191,077 $ 207,102 $ 220,236
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) Full Year 2024 Guidance Low High GAAP diluted net income per common share $0.11 $0.21 Add: Net restructuring expenses and ot
Slide 23: Meghan Beringer
Meghan Beringer Senior Director Investor Relations Myers Industries, Inc. 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 808-2885 mberinger@myersind.com www.myersind.com 23