Myers Industries, Inc. · NYSE:MYE

Myers Industries — Q3 2016 Earnings Presentation

15 slides from Myers Industries's earnings presentation, Nov 8, 2016

  1. Slide 1: Myers Industries, Inc. Third Quarter Earnings Presentation

    Exhibit 99.2 MYERS INDUSTRIES, INC. NOVEMBER 8, 2016 – THIRDQUARTER EARNINGS PRESENTATION

  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

  3. Slide 3: Q3 2016 Summary

    Q3 2016 SUMMARY » Q3 sales in line with expectations » Net sales $132.7M, a decrease of 6% to prior year » Continued difficult capital spending environment in several key markets » Distribution sales initiative still in early innings; making progress » Gross margin reduction of 230 basis points to 2

  4. Slide 4: Q3 GAAP Financial Summary

    Q3 GAAP FINANCIAL SUMMARY IN $MILLIONSEXCEPT RATIOS ANDPERCENTAGES Q3 Q3 CONTINUING OPERATIONS 2015 2016 NETSALES $ 141.7 $ 132.7 - 6.3%; -6.7% organic GROSSPROFIT $ 41.7 $ 35.9 - 230 bps GROSSMARGIN 29.4% 27.1% SG&A $ 39.1 $ 32.9 15.8%improvement OPERATING INCOME $ 2.6 $ 3.0 + 50bps OPERATING MARGI

  5. Slide 5: Q3 Adjusted Financial Summary

    Q3 ADJUSTED FINANCIAL SUMMARY IN $MILLIONSEXCEPT RATIOS ANDPERCENTAGES Q3 Q3 CONTINUING OPERATIONS 2015 2016 NETSALES $ 141.7 $ 132.7 - 6.3%; -6.7% organic ADJ. GROSS PROFIT $ 42.4 $ 35.9 - 290 bps GROSSMARGIN 30.0% 27.1% ADJ. SG&A $ 36.6 $ 32.0 12.4% improvement ADJ. OPERATING INCOME $ 5.9 $ 3.9 -

  6. Slide 6: Balance Sheet & Cash Flow

    BALANCE SHEET & CASH FLOW BALANCE SHEET WORKING CAPITAL AS A % OF SALES 09/30/15 09/30/16 12.8% Cash $ 5.2 $ 5.5 Debt 214.7 197.9 Net Debt $ 209.5 $ 192.4 10.2% Adjusted TTM EBITDA $ 74.1 $ 65.8 9.1% Net Debt-to-Adj. EBITDA 2.8x 2.9x See appendix for reconciliations from GAAP to adjusted results YTD

  7. Slide 7: Q3 2016 Segment Results

    Q3 2016 SEGMENT RESULTS MATERIAL HANDLING DISTRIBUTION $100.0 $92.5 $89.9 $10.0 $60.0 $10.0 $49.2 $80.0 $7.4 $8.0 $50.0 $42.8 $8.0 $40.0 $60.0 $6.0 $5.6 $6.0 $4.4 $30.0 $40.0 $4.0 $3.3 $4.0 $20.0 $20.0 $2.0 $10.0 $2.0 $0.0 $0.0 $0.0 $0.0 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3 2015 Q3 201

  8. Slide 8: 2016 Outlook and Strategy Update

    2016 OUTLOOK AND STRATEGY UPDATE Outlook » Holding prior outlook; Q4 & FY revenue expected PERCENT OF2015 SALES MYE 2016 GROWTH OUTLOOK to be down mid-to-high single digits CONSUMER MID » Continued weakness in capital spending in both 12% SINGLEDIGITS segments » Steady sales run rate in Distribution

  9. Slide 9: Appendix

    APPENDIX

  10. Slide 10: 2016 Key Assumptions

    2016 KEY ASSUMPTIONS » Capital expenditures: $12 -$14 million » Net interest expense: $8 -$9 million » D&A: $34 -$35 million » Effective tax rate (normalized):36% 10

  11. Slide 11: Reconciliation of Non-GAAP Measures

    RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands) Quarter Ended For the nine months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Gross profit as re

  12. Slide 12: Reconciliation of Non-GAAP Measures

    RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands) Quarter Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016

  13. Slide 13: Reconciliation of Non-GAAP Measures

    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) *Income taxes are calculated using the normalized effective tax rate for each year. The normalized

  14. Slide 14: Reconciliation of Non-GAAP Measures

    RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands) Quarter Ended TTM 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 Net Income as Reported Continuing Operations $ 1,489 $ 2,622 $

  15. Slide 15: Slide 15

Myers Industries — Q3 2016 Earnings Presentation on 6ix