Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q2 2018 Earnings Presentation
15 slides from Myers Industries's earnings presentation, Jul 30, 2018
Slide 1: Second Quarter 2018 Earnings Presentation
Exhibit 99.2 MYERS INDUSTRIES, INC. Second Quarter 2018 Earnings Presentation
Slide 2: Safe Harbor Statement & Non-GAAP Measures
SAFEHARBORSTATEMENT & NON-GAAP MEASURES 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 curre
Slide 3: 2018 Q2 Overview
2018 Q2 OVERVIEW Achievements Challenges Generated free cash flow of $13.3M or 9.4% of - Distribution Segment continues to make progress, sales but at a slow rate Strong commercial execution in Material » Year-over-year sales decline continued in Q2 Handling niche markets » New Consumer customer win
Slide 4: Q2 Financial Summary
Q2 FINANCIAL SUMMARY Operating Highlights GAAP Financial Highlights » Net sales up 3.9% (In $ millions except EPS) Q2 '18 V to PY » Material Handling up $7.1M (+7.4%) Net Sales $ 140.6 3.9% » Distribution down $1.8M (-4.5%) Gross Profit 48.0 25.3% Gross Profit Margin 34.1% +580 bps » Gross profit in
Slide 5: Q2 Segment Results
Q2 SEGMENT RESULTS Material Handling Segment Highlights Material Handling Financial Highlights » Consumer up double-digits due to timing of orders, new customer wins and market share gains (In $ millions) Q2 '18 V to PY » Double-digit sales growth in Food & Beverage due to higher agriculture and foo
Slide 6: Balance Sheet and Cash Flow
BALANCE SHEETANDCASHFLOW Q2 Highlights Net Debt ($M) and Net Debt to Adj. EBITDA » Strong free cash flow generation of $13.3M; YTD free cash flow of $24.9M $168.3 $155.1 $148.5 » Reduced net debt by $101.6M $141.3 » Raised net proceeds of $79.5M through sale of common stock 3.0x TARGET <2x 2.7x 2.5x
Slide 7: 2018 Outlook
2018 OUTLOOK 2016 2017 2018 Operating Framework Low single Anticipating growth in market share will be digits partially offset by 2017 unusual hurricane volume High single Expect increased demand from agriculture digits and food processing markets Strong RV market YTD, but pace slowing High single f
Slide 8: Appendix
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Slide 9: 2018 Key Assumptions
2018 KEYASSUMPTIONS » Net sales: Up low-to-mid-single digits » Capital expenditures: $10 -$12 million » Net interest expense: $4 -$6 million » D&A: $26 -$28 million » Effective tax rate (normalized): ~25% 9
Slide 10: Reconciliation of Non-GAAP Measures
RECONCILIATION OFNON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Quarter Ended June 30,2018 Material Segment Corporate & Handling Distribution Total Other Total GAAP Net sales $ 103,13
Slide 11: Reconciliation of Non-GAAP Measures
RECONCILIATION OFNON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Quarter Ended June 30,2017 Material Segment Corporate & Handling Distribution Total Other Total GAAP Net sales $ 96,026
Slide 12: Reconciliation of Non-GAAP Measures
RECONCILIATION OFNON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data) QuarterEndedJune30, SixMonthsEndedJune30, 2018 2017 2018 2017 GAAP Operating income $ 13,111 $ 5,968
Slide 13: Reconciliation of Non-GAAP Measures
RECONCILIATION OFNON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIESCONTINUING – OPERATIONS (UNAUDITED) (Dollars in thousands) YTD YTD QTD June30, 2018 March 31, 2018 June30, 2018 Net cashprovidedby(usedfor) operating
Slide 14: Reconciliation of Non-GAAP Measures
RECONCILIATION OFNON-GAAP MEASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA (UNAUDITED) (Dollars in thousands) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Income from continuing operations $ 580 $ (899) $ 3,458 $ 2,482 $ 3,083 $ 1,821 $
Slide 15: MYERS
MYERS INDUSTRIES, INC.