Myers Industries, Inc. · NYSE:MYE
Myers Industries — FY2017 Earnings Presentation
19 slides from Myers Industries's earnings presentation, Mar 6, 2018
Slide 1: Fourth-Quarter & Full-Year Earnings Presentation
March 6, 2018 – Fourth-Quarter & Full-Year Earnings Presentation MYERS INDUSTRIES, INC. Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial results may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators and
Slide 3: Agenda
Agenda 2017 Year-In-Review Financial Results Balance Sheet & Cash Flow 2018 Outlook 2018 Key Assumptions Appendix
Slide 4: 2017 Year-In-Review
2017 Year-In-Review Challenges Achievements Distribution showing progress, but at a slow rate Myers Tire Supply sales declined 6% year-over-year; sales in 2H 2017 improved sequentially vs. 1H 2017 Myers Tires Supply 2H 2017 profitability negatively impacted by investments in SG&A Patch Rubber sales
Slide 5: Q4 Financial Summary – GAAP
Q4 Financial Summary – GAAP % Sales 24.1% 27.3% % Sales 27.3% 28.6% % Sales 2.9% 1.1% Operating income increased $2.6M Gross profit higher $3.0M SG&A higher $0.1M Loss on fixed asset disposal $0.3M Net sales increased 13.6% Material Handling up $20.7M (26%) due to growth in key niche markets, partia
Slide 6: Q4 Financial Summary – Adjusted (Non-GAAP)
Q4 Financial Summary – Adjusted (Non-GAAP) % Sales 23.3% 26.5% % Sales 27.6% 28.6% % Sales 4.0% 2.0% Adj. operating income increased $3.2M Higher gross profit $3.4M Lower SG&A $0.1M Loss on fixed asset disposal $0.3M Net sales increased 13.6% Material Handling up $20.7M (26%) due to growth in niche
Slide 7: Q4 Segment Results
Q4 Segment Results Material Handling Distribution Adjusted $8.8 $4.8 $1.3 $3.0 GAAP Adjusted GAAP Reflects results from continuing operations; In $millions except per-share figures Net sales increased 26% Double-digit sales growth in food and beverage due to higher demand in agriculture and market s
Slide 8: 2017 Financial Summary – GAAP
2017 Financial Summary – GAAP % Sales 24.8% 24.8% % Sales 28.8% 30.3% % Sales 4.5% 5.1% Operating income declined $2.5M Gross profit lower $4.4M SG&A higher $2.9M Gain on sale of assets $4.1M; lower impairment charges of $0.8M Net sales increased 2.4% Material Handling increased $27.4M (7.5%) due to
Slide 9: 2017 Financial Summary – Adjusted (Non-GAAP)
2017 Financial Summary – Adjusted (Non-GAAP) % Sales 24.3% 24.3% % Sales 30.2% 30.3% % Sales 5.8% 6.0% Adj. operating income declined $0.3M Higher gross profit $3.1M Higher SG&A $2.9M Loss on asset disposals $0.4M Adj. gross profit increased $3.1M Higher sales volume and favorable sales mix Pricing
Slide 10: 2017 Segment Results
2017 Segment Results Material Handling Distribution Adjusted $44.1 $40.9 $9.1 $12.8 GAAP Adjusted GAAP Reflects results from continuing operations; In $millions except per-share figures Net sales declined 8.3% Planned exit of low margin product line at Patch Rubber business Myers Tire Supply sales d
Slide 11: Balance Sheet & Cash Flow
WORKING CAPITAL AS A % OF TTM SALES BALANCE SHEET Balance Sheet & Cash Flow 2017 2016 Cash 2.5 $ 2.4 $ Debt 151.0 189.5 Net Debt 148.5 $ 187.1 $ TTM Adjusted EBITDA 60.3 $ 63.6 $ Net Debt-to-Adj. EBITDA 2.5x 2.9x In $millions 9% Target 7.6% 3.8% 9.5% 10.3% FREE CASH FLOW 2017 2016 Operating Cash fro
Slide 12: 2018 Outlook
2018 Outlook 2016 2017 Market as a % of Net Sales 2018 Operating Framework Flat High single digits High single digits Flat Low single digits Expect increased demand from agriculture and food processing markets Anticipating growth in market share will be offset by 2017 unusual hurricane volume Strong
Slide 13: 2018 Key Assumptions
Net Sales: Up low-to-mid single-digits Capital expenditures:$10 - $12 million Net interest expense: $7 - $8 million D&A: $26 - $28 million Effective tax rate (normalized):25% 2018 Key Assumptions
Slide 14: Appendix
APPENDIX MYERS:
Slide 15: Reconciliation of Non-GAAP Measures: Gross Profit
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: Gross profit excluding the items above in the text of this presentation and in thi
Slide 16: Reconciliation of Non-GAAP Measures: SG&A
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: Selling, general and administrative expenses exclu
Slide 17: Reconciliation of Non-GAAP Measures: Income Before Taxes by Segment
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED) (Dollars in thousands, except per share data) Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items above in the
Slide 18: Reconciliation of Non-GAAP Measures: EBITDA and Adjusted EBITDA
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES EBITDA AND ADJUSTED EBITDA (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: EBITDA and EBITDA as adjusted are financial measures that Myers Industries, Inc.
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