Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q1 2024 Earnings Presentation
29 slides from Myers Industries's earnings presentation, May 7, 2024
Slide 1: 2024 First Quarter Results
2024 First Quarter Results May 7, 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: Our Long-Term Vision
Our Long-Term Vision Horizon 3 2026 - 2029 Horizon 2 2023 - 2026 Horizon 1 Continued execution 2020 - 2023 of Horizons 1 & 2 Continued execution + of Horizon 1 Enterprise-level M&A Self Help, Organic + with Global focus Growth, Bolt-On M&A Enterprise-level M&A with North America • Expand globally vi
Slide 4: Horizon 2 Strategic Imperatives
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Source: Investor Day, March 19, 2024 4
Slide 5: Horizon 2: Our Strategic Lens
Horizon 2: Our Strategic Lens Material Handling Distribution Storage, Handling & Engineered Automotive Protection Solutions Aftermarket Branded, high-performance products Designed and tailored solutions that High-quality repair and replacement that move, store and protect meet our customers’ unique
Slide 6: Our Company is Driven by Power Brands
Our Company is Driven by 4 Power Brands ~80% of pro forma profits are represented by these 4 brands Source: Investor Day, March 19, 2024 6
Slide 7: First Quarter 2024 Key Highlights
First Quarter 2024 Key Highlights ❑ Newly acquired Signature Systems delivered strong results ❑ Anticipated near-term challenges in key end-markets ❑ Accelerating identified opportunities in Self-Help Playbook while continuing to execute 3 Horizon Strategy ❑ Management maintains full-year 2024 outlo
Slide 8: Horizon 2 Strategic Imperatives
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Source: Investor Day, March 19, 2024 8
Slide 9: Auto Aftermarket – near term demand headwinds
Auto Aftermarket – near term demand headwinds ❑ Lower DIY and DIFM (do-it-for-me) card data indicating lower spend in auto aftermarket product and service providers ❑ Low Commercial tire shipment volumes persist ❑ Retail/Consumer tire spend lags amidst higher prices DIY & DIFM Barclay Card Spend, T1
Slide 10: Maximize Value Portfolio: Using Improved Efficiency to Lower Cost
Maximize Value Portfolio: Using Improved Efficiency to Lower Cost Efficiency gains to enable $7-9 million in new annualized cost savings: ❑ Consolidated Mohawk and Myers Tire Supply ERP systems, enabling improved operating efficiency ❑ Productivity gains are unleashing the Hidden Factory ❑ …as a res
Slide 11: Horizon 2 Strategic Imperatives
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Source: Investor Day, March 19, 2024 11
Slide 12: Protecting the World from the Ground Up
Protecting the World from the Ground Up Ground Protection Turf Protection 12
Slide 13: Scepter Military – Storage, Handling, & Protection
Scepter Military – Storage, Handling, & Protection Value created by driving Material Substitution to a better solution Military Ammunition Scepter Military Steel / Wood • Heavy Duty Plastic • 17%-35% Lighter • Weather / Impact Resistant • UN / NATO Qualified 13
Slide 14: Scepter Powered Fueling Station
Scepter Powered Fueling Station Convenience of a gas pump on the job, in the field, or at home Target Audiences ➢ Pro User – Construction/Infrastructure ➢ Landscape Company ➢ DIYer ➢ Power Sports Enthusiasts Features/Benefits ➢ Simple, Intuitive Controls ➢ Powered On-the-Go with AA / Accessory Cabl
Slide 15: Q1 2024 Financial Summary
Q1 2024 Financial Summary (In $ millions except EPS) Q1 ’24 Q1 ‘23 % Change Net Sales $207.1 $215.7 (4.0)% Adj. Gross Profit $67.6 $71.2 (5.0)% Adj. Gross Margin 32.7% 33.0% -30 bps Adj. Op Income $16.6 $20.3 (18.0)% Adj. Op Income Margin 8.0% 9.4% -140 bps Adj. EBITDA $25.1 $25.9 (3.0)% Adj. EBITDA
Slide 16: Q1 2024 Financial Summary by Segment
Q1 2024 Financial Summary Material Handling Distribution (In $ millions) Q1 ’24 Q1 ’23 % Change (In $ millions) Q1 ‘24 Q1 ‘23 % Change Net Sales $152.2 $152.6 (0.2)% Net Sales $54.9 $63.2 (13.1)% Adj Op Income $25.0 $25.8 (3.0)% Adj Op Income $0.6 $2.5 (76.0)% Adj Op Income Margin 16.4% 16.9% -50 bp
Slide 17: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Highlights Total Debt ($M) and Leverage ❑ Delivered operating cash flow of $20.3 million and free cash flow of $14.6 million Term Loan A Fin Lease Revolver Senior Notes $409.7 Note: Under the ❑ Cash balance of $32.7M at quarter-end. Leverage ratio terms of the TLA increas
Slide 18: Full Year Fiscal 2024 Outlook
Full Year Fiscal 2024 Outlook Maintain current outlook, guiding to lower end of the range for Revenue, Diluted EPS and Adjusted Diluted EPS ($ in Millions except EPS) Current Outlook Net Sales Growth 15% - 20% Diluted EPS $1.05 - $1.22 Adjusted Diluted EPS $1.30 - $1.45 Capital Expenditures $35M - $
Slide 19: Summary
Summary ❑ Built foundation in Horizon One ❑ Transformation accelerating in Horizon Two ❑ Signature Systems is a catalyst ❑ Storage, Handling & Protection portfolio is a significant value driver 19
Slide 20: Appendix
INDUSTRIES 20
Slide 21: 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 March 31, 2024 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 152,225
Slide 22: 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 March 31, 2023 Material Segment Corporate & Handling Distribution Total Other Total Net sales $ 152,562
Slide 23: 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 March 31, 2024 2023 Adjusted operating income (loss) reconciliation: Operating incom
Slide 24: 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 March 31, 2024 2023 Adjusted net income (loss) reconciliation:
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA AND DEBT (UNAUDITED) (Dollars in thousands) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Income (loss) from continuing operations $ 15,831 $ 13,671 $ 13,428 $ 1
Slide 26: 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) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net sales $ 233,156 $ 228,065 $ 212,840 $ 215,739 $ 208,453 $ 197,798 $ 191,077
Slide 27: 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 $1.05 $1.22 Add: Net restructuring expenses and ot
Slide 28: Unleashing the Value
Unleashing the Value Material Handling Distribution Corporate Storage, Handling Engineered Automotive Leverage Scale & Protection Solutions Aftermarket Branded, Contract Industrial Centers of High Value Manufacturing Distribution Excellence Target Adj. EBITDA 30 - 35+% 8 - 15% 8 - 12% Margin 28
Slide 29: 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 29