Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q1 2023 Earnings Presentation
19 slides from Myers Industries's earnings presentation, May 4, 2023
Slide 1: Earnings Call Presentation
Earnings Call Presentation First Quarter 2023 May 4, 2023
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 “will”, “expect”, “be
Slide 3: Q1 2023 Key Takeaways
Q1 2023 Key Takeaways ❑ Self help initiatives and effective cost management drove gross margin expansion ▪ Proactive measures taken to address inflationary pressures mostly offset impact of lower sales in the quarter ▪ Adjusted gross margin expanded 90 basis points to 33% ❑ Customer demand remains m
Slide 4: Q1 2023 Financial Summary
Q1 2023 Financial Summary (In $ millions except EPS) Q1 '23 Q1 '22 % Change Net Sales $215.7 $225.5 -4.3% Adj Gross Profit 71.2 72.3 -1.6% Adj Gross Margin 33.0% 32.1% +90 bps Adj Op Income 20.3 25.8 -21.4% Adj Op Income Margin 9.4% 11.5% -210 bps Adj EBITDA 25.9 31.0 -16.5% Adj EBITDA Margin 12.0%
Slide 5: Q1 2023 Segment Results
Q1 2023 Segment Results Material Handling Distribution (In $ millions) Q1 '23 Q1 '22 % Change (In $ millions) Q1 '23 Q1 '22 % Change Net Sales $152.6 $176.6 -13.6% Net Sales $63.2 $48.9 29.3% Adj Op Income 25.8 31.9 -19.1% Adj Op Income 2.5 3.3 -23.5% Adj Op Income Margin 16.9% 18.0% -110 bps Adj Op
Slide 6: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ❑ Quarterly free cash flow of $16.7M; capital Total Debt ($M) and Leverage expenditures were $9.1M Fin Lease Revolver Senior Notes ❑ Working capital as percentage of sales $113.6 $107.5 $102.3 $103.4 $98.1 lower due primarily to the contribution from self-help initiatives
Slide 7: Full Year Fiscal 2023 Outlook
Full Year Fiscal 2023 Outlook Current Prior Outlook Outlook Low-Mid Single Low-Mid Single Net Sales Growth Digits Digits Diluted EPS $1.50 - $1.80 $1.51 - $1.81 Adjusted Diluted EPS $1.55 - $1.85 $1.55 - $1.85 Capital Expenditures $25M - $30M $25M - $30M Effective Tax Rate ~25% ~25% Other Items ❑ De
Slide 8: 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 9: 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 10: Progress Against Pillars
Progress Against Pillars 1 ❑ In Material Handling, winning new accounts in Industrial and Food & Beverage end markets to replace sales declines driven by soft demand in Organic RV, Marine, and Consumer end markets. Growth ❑ In Distribution, implementing price increases to improve margins; Driving sh
Slide 11: Appendix
INDUSTRIES 11
Slide 12: 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 Corporate & Handling Distribution Segment Total Other Total Net s a l es $ 152,5
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) Quarter Ended March 31, 2022 Material Corporate & Handling Distribution Segment Total Other Total Net s a l es $ 176,6
Slide 14: 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, except per share data) Quarter Ended March 31, 2023 2022 Adjusted operating income (loss) reconcil
Slide 15: 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, 2023 2022 Adjusted net income (loss) reconciliation:
Slide 16: 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 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Income (loss) from continuing operations $ 11,075 $ 7,903 $ 7,255 $ 17,
Slide 17: 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 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net sales $ 187,369 $ 200,058 $ 199,579 $ 225,486 $ 233,156 $ 228,065 $ 212,840
Slide 18: 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 2023 Guidance Low High GAAP diluted net income per common share $ 1.50 $ 1.80 Add: Net restructuring expenses and
Slide 19: Monica Vinay
Monica Vinay Interim CFO VP Investor Relations & Treasurer Myers Industries, Inc. 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 701-2805 mvinay@myersind.com www.myersind.com 19