Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q4 2023 Earnings Presentation
22 slides from Myers Industries's earnings presentation, Mar 5, 2024
Slide 1: Earnings Call Presentation
Earnings Call Presentation Fourth Quarter and Full Year 2023 March 5, 2024
Slide 2: Safe Harbor Statement & Non-GAAP Measures
Safe Harbor Statement & Non-GAAP Measures Statements in this release include contains “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 pl
Slide 3: Full Year 2023 Key Highlights
Full Year 2023 Key Highlights 2023 marked a year of continued progress in spite of cyclical end market declines and yielded one of the highest adjusted earnings per share, adjusted EBITDA and revenue in recent years Strong cash flow generation and a solid balance sheet enhance financial flexibilit
Slide 4: Full Year 2023 Financial Summary
Full Year 2023 Financial Summary (In $ millions except EPS) 2023 2022 % Change Net Sales $813.1 $899.5 -9.6% Adj Gross Profit 259.9 284.1 -8.5% Adj Gross Margin 32.0% 31.6% +40 bps Adj Op Income 75.3 87.9 -14.4% Adj Op Income Margin 9.3% 9.8% -50 bps Adj EBITDA 98.0 109.2 -10.2% Adj EBITDA Margin 12
Slide 5: Q4 2023 Financial Summary
Q4 2023 Financial Summary (In $ millions except EPS) Q4 '23 Q4 '22 % Change Net Sales $191.1 $212.8 -10.2% Adj Gross Profit 57.5 65.2 -11.8% Adj Gross Margin 30.1% 30.6% -50 bps Adj Op Income 15.9 16.5 -3.6% Adj Op Income Margin 8.3% 7.7% +60 bps Adj EBITDA 21.8 22.1 -1.5% Adj EBITDA Margin 11.4% 10
Slide 6: Q4 2023 Segment Results
Q4 2023 Segment Results Material Handling Distribution (In $ millions) Q4 '23 Q4 '22 % Change (In $ millions) Q4 '23 Q4 '22 % Change Net Sales $126.9 $142.2 -10.8% Net Sales $64.2 $70.6 -9.1% Adj Op Income 23.5 21.0 12.0% Adj Op Income 0.5 4.1 -88.3% Adj Op Income Margin 18.5% 14.7% +380 bps Adj Op
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Highlights Total Debt ($M) and Leverage Quarterly free cash flow of $11.8M; Capital expenditures were $3.6M Fin Lease Revolver Senior Notes Working capital as percentage was flat YoY $103.4 $98.1 $88.2 Cash balance at the end of Q4 was $30.3M; $69.3 $67.2 debt to ad
Slide 8: Full Year Fiscal 2024 Outlook
Full Year Fiscal 2024 Outlook Current Outlook Net Sales Growth 15% - 20% Diluted EPS $1.03 - $1.23* Adjusted Diluted EPS $1.30 - $1.45* Capital Expenditures $35M - $40M Effective Tax Rate ~25% Other Items Depreciation and amortization expected to be ~$42M Net interest expense to be ~$33M Dilut
Slide 9: 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 10: Strategic Pillars for Horizon One
Strategic Pillars for Horizon One Strategic Objective: Transform Material Handling Segment into a high-growth, customer-centric innovator of engineered plastic solutions, while continuing to optimize and grow Distribution Segment 1 2 3 4 Organic Strategic Operational High-Performing Growth M&A Excel
Slide 11: Progress Against Pillars
Progress Against Pillars 1 Diversifying into Military and Industrial end-markets to overcome Consumer and RV end-market softness Organic Growth Continued growth in eCommerce and large accounts in Auto-Aftermarket Innovation and sales gains in Industrial boxes to balance potential Seed box decl
Slide 12: Appendix
INDUSTRIES 12
Slide 13: 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) Year Ended December 31, 2023 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 555,259
Slide 14: 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) Year Ended December 31, 2022 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 647,619
Slide 15: 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 December 31, 2023 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 126,9
Slide 16: 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 December 31, 2022 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 142,2
Slide 17: 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Adjusted operating income (
Slide 18: 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Adjust
Slide 19: 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) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Income (loss) from continuing operations $ 17,337 $ 15,831 $ 13,671 $ 1
Slide 20: 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) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net sales $ 225,486 $ 233,156 $ 228,065 $ 212,840 $ 215,739 $ 208,453 $ 197,798
Slide 21: 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 $1.03 $1.23 Add: Net restructuring expenses and ot
Slide 22: Meghan Beringer
Meghan Beringer Senior Director Investor Relations Myers Industries, Inc. 1293 S. Main Street, Akron, Ohio 44301 Tel: (252) 536-5651 mberinger@myersind.com www.myersind.com 22