Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q2 2023 Earnings Presentation
19 slides from Myers Industries's earnings presentation, Aug 3, 2023
Slide 1: Earnings Call Presentation Second Quarter 2023
Earnings Call Presentation Second Quarter 2023 August 3, 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: Q2 2023 Key Takeaways
Q2 2023 Key Takeaways Strong commitment to long-term strategy continues to sustain gross margin performance despite broader macroeconomic constraints Adjusted gross margin expanded 90 basis points to 32.9% year-over-year Mixed demand across end markets contributed to year-over-year sales decli
Slide 4: Q2 2023 Financial Summary
Q2 2023 Financial Summary (In $ millions except EPS) Q2 '23 Q2 '22 % Change Net Sales $208.5 $233.2 -10.6% Adj Gross Profit 68.6 74.7 -8.2% Gross Margin 32.9% 32.0% +90 bps Adj Op Income 19.0 23.6 -19.4% Op Income Margin 9.1% 10.1% -100 bps Adj EBITDA 24.7 28.9 -14.4% EBITDA Margin 11.9% 12.4% -50 b
Slide 5: Q2 2023 Segment Results
Q2 2023 Segment Results Material Handling Distribution Q2 '23 Q2 '22 % Change Q2 '23 Q2 '22 % Change (In $ millions) (In $ millions) Net Sales $143.3 $173.1 -17.2% Net Sales $65.2 $60.1 8.5% Adj Op Income 25.1 28.0 -10.5% Adj Op Income 3.9 4.3 -8.2% Adj Op Income Adj Op Income Margin 17.5% 16.2% +13
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 $6.1M Fin Lease Revolver Senior Notes Working capital as a percentage of sales $113.6 $107.5 $103.4 was lower due primarily to the contribution $98.1 $88.2 from self-help initia
Slide 7: Full Year Fiscal 2023 Outlook
Full Year Fiscal 2023 Outlook Current Prior Outlook Outlook Low-Mid Single Net Sales Growth (Decline) (Mid Single Digits) Digits Diluted EPS $1.41 - $1.73 $1.50 - $1.80 Adjusted Diluted EPS $1.55 - $1.85 $1.55 - $1.85 Capital Expenditures $25M - $30M $25M - $30M Effective Tax Rate ~25% ~25% Other It
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 Building sales in Industrial, Food & Beverage, and Military end markets, Organic offsetting soft demand in RV, Marine, and Consumer end markets Growth Expanding margins in Auto Aftermarket through improved pricing and cost reductions in SG&A and materials, while securi
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) 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) 13
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) 14
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) 15
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) 16
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) 17
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) 18
Slide 19: Rich Pasela
Rich Pasela Manager, Investor Relations & Treasury Myers Industries, Inc. 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 761-6284 rpasela@myersind.com www.myersind.com 19