Myers Industries, Inc. · NYSE:MYE
Myers Industries — 2024 Seaport Research Partners Annual Summer Investor Conference
33 slides from Myers Industries's conference presentation, Aug 20, 2024
Slide 1: 2024 Seaport Research Partners Annual Summer Investor Conference
2024 Seaport Research Partners Annual Summer Investor Conference August 20, 2024
Slide 2: Safe Harbor Statement & Non-GAAP Measures
Safe Harbor Statement & Non-GAAP Measures Statements in this presentation contain “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 plans,
Slide 3: Today's Speakers
Today’s Speakers Mike McGaugh Grant Fitz President and Chief Executive Officer Executive Vice President and Chief Financial Officer Meghan Beringer Sr. Director, Investor Relations 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 808-2885 mberinger@myersind.com www.myersind.com 3
Slide 4: Our Long-Term Vision
Our Long-Term Vision Current Phase 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 • Expa
Slide 5: Horizon 2 Strategic Imperatives
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Source: Investor Day, March 19, 2024 5
Slide 6: Horizon 2: Our Strategic Lens
Horizon 2: Our Strategic Lens Material Handling Distribution Storage, Handling & Engineered Automotive Protection Solutions Aftermarket Branded, high-performance products Designed and tailored solutions that High-quality repair and replacement that move, store and protect meet our customers’ unique
Slide 7: Horizon 2: Our Strategic Lens
Horizon 2: Our Strategic Lens Material Handling Distribution Storage, Handling & Engineered Automotive Protection Solutions Aftermarket Branded, high-performance products Designed and tailored solutions that High-quality repair and replacement parts that move, store and protect meet our customers’ u
Slide 8: Significant Runway for Shareholder Value Creation
Significant Runway for Shareholder Value Creation Material Handling Distribution Storage, Handling & Automotive Engineered Solutions Protection Aftermarket Peers Market Multiple 18 – 20X 8 – 9X 10 – 12X Target Adj. EBITDA Margin 30 – 35+ % 8 – 15% 8 – 12% CY23 Pro forma Revenue $459M $206M $258M CY2
Slide 9: Our Company is Driven by Power Brands
Our Company is Driven by 4 Power Brands ~80% of pro forma profits are represented by these 4 brands Source: Investor Day, March 19, 2024 9
Slide 10: Progress Since Q1 Earnings Release
Progress Since Q1 Earnings Release Grow Maximize Value Storage, Handling & Engineered Automotive Protection Solutions Aftermarket ❑ Signature Systems performance exceeding ❑ Productivity gains enable fixed cost reductions: expectations ➢ May 28, 2024: announcing consolidation of three ❑ Continued st
Slide 11: Horizon 2 Strategic Imperatives
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Source: Investor Day, March 19, 2024 11
Slide 12: Protecting the World from the Ground Up
Protecting the World from the Ground Up Ground Protection Turf Protection 12
Slide 13: Durable Long-Term Growth
Durable Long-Term Growth ❑ Realizing new business in the Infrastructure end markets with utilities and their residual businesses ❑ ~$560B committed under Infrastructure Investment & Jobs Act ❑ ~$400B committed under Inflation Reduction Act ❑ Diamond Track Industrial Mats ➢ Introduced in Q4 2023 ➢ Ra
Slide 14: Scepter Military – Storage, Handling, & Protection
Scepter Military – Storage, Handling, & Protection Value created by driving Material Substitution to a better solution Military Ammunition Scepter Military Steel / Wood • Heavy Duty Plastic • 17%-35% Lighter • Weather / Impact Resistant • UN / NATO Qualified 14
Slide 15: Durable Long-Term Growth for Military
Durable Long-Term Growth for Military Military End Market Revenue $40M $25M $10M 2023 Actual 2024 Forecast Projected 2025 ❑ Military Opportunity (Military Casings) ➢ Products are certified by NATO and US DoD ➢ Capacity increased with additional re-built press install to match new contracts and deman
Slide 16: Second Quarter 2024 Performance Highlights
Second Quarter 2024 Performance Highlights ❑ Signature Systems acquisition bolstered Q2 results ➢ Adjusted EBITDA of $38.9 million, as compared with $24.7 million in prior-year period ➢ Adjusted EBITDA Margin of 17.7%, as compared with 11.9% in prior-year period ➢ Adjusted EPS of $0.39, as compared
Slide 17: Q2 2024 Financial Summary
Q2 2024 Financial Summary (In $ millions except EPS) Q2 ’24 Q2 ’23 % Change Net Sales $220.2 $208.5 5.7% Adj. Gross Profit $79.6 $68.6 16.0% Adj. Gross Margin 36.1% 32.9% +320 bps Adj. Op Income $28.8 $19.0 51.5% Adj. Op Income Margin 13.1% 9.1% +400 bps Adj. EBITDA $38.9 $24.7 57.4% Adj. EBITDA Mar
Slide 18: Q2 2024 Financial Summary
Q2 2024 Financial Summary Material Handling Distribution (In $ millions) Q2 ’24 Q2 ’23 % Change (In $ millions) Q2 ‘24 Q2 ’23 % Change Net Sales $166.0 $143.3 15.9% Net Sales $54.3 $65.2 (16.7)% Adj Op Income $32.5 $25.1 29.4% Adj Op Income $2.9 $3.9 (25.1)% Adj Op Income Margin 19.6% 17.5% +210 bps
Slide 19: Self-Help Actions
Self-Help Actions Status on $7-9M in Annualized Cost Improvements $9M $9M $7M Low Target Current Estimate High Target Initiatives include: ❑ Consolidated asset footprint (~$5M of annualized savings) ➢ Three Myers Tire Supply Distribution Centers (DC) into existing DCs ➢ Atlantic, Iowa rotational mol
Slide 20: Signature Systems Acquisition
Signature Systems Acquisition Status on $8M in Signature Synergies $8M $8M Target Current Synergies Estimate Synergies include productivity and operational improvements, material savings and other savings initiatives Ahead of planned synergy savings in 2024 and working to achieve the targeted synerg
Slide 21: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Highlights Net Debt ($M) and Net Leverage Ratio1 ❑ Delivered operating cash flow of $14.3 million and free cash flow of $9.9 million $394.5 $390.1 ❑ Cash balance of $37.3M at quarter-end. Net leverage ratio remained at 2.6x following the acquisition of Signature Systems f
Slide 22: Leveraging Myers Cashflow Generation
Leveraging Myers Cashflow Generation Capital Allocation Priorities ❑ Paydown Debt - projected cashflow will allow for continued paydown of debt, with the Net Leverage Ratio1 to be under 2x within two years of closing the Signature transaction ❑ Strong balance sheet - maintain ample liquidity via $37
Slide 23: Full Year Fiscal 2024 Outlook
Full Year Fiscal 2024 Outlook ($ in Millions except EPS) Prior Outlook Current Outlook Net Sales Growth 15% - 20% 5% - 10% Diluted EPS $1.05 - $1.22 $0.76 - $0.91 Adjusted Diluted EPS $1.30 - $1.45 $1.05 - $1.20 Capital Expenditures $35M - $40M $30M - $35M Effective Tax Rate ~25% ~26% Other Items ❑
Slide 24: Historical Adjusted Net Income vs Share Price
Historical Adjusted Net Income vs Share Price $30 $25 $20 $15 $10 $62 $52 $35 $26 $28 $31 $5 $14 $15 2016 2017 2018 2019 2020 2021 2022 2023 2024 $- Guidance* See appendix for non-GAAP reconciliations. Share price date range is 1/4/2016 – 8/16/2024 24 * Guidance is illustrative and based of adjusted
Slide 25: Moving Forward in Horizon 2 of Our Strategy
Moving Forward in Horizon 2 of Our Strategy ❑ Improving cost and efficiency to Maximize Value in Engineered Solutions and Automotive Aftermarket portfolios ❑ Growing the branded product portfolio in Storage, Handling and Protection ❑ Improving Myers profitability, delivering strong adjusted EBITDA m
Slide 26: Appendix
INDUSTRIES 26
Slide 27: 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 June 30, 2024 Material Segment Corporate & Handling Distribution Total Other Total Net sales $ 166,008 $
Slide 28: 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 June 30, 2023 Material Segment Corporate & Handling Distribution Total Other Total Net sales $ 143,295 $
Slide 29: 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 June 30, 2024 2023 Adjusted operating income (loss) reconciliation: Operating income
Slide 30: 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 June 30, 2024 2023 Adjusted net income (loss) reconciliation: N
Slide 31: 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) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $ Net sales $ 228,065 $ 215,739 $ 208,453 $ 197,798 $ 191,077 $ 207,102 $ 220,23
Slide 32: 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 $0.76 $0.91 Add: Net restructuring expenses and ot
Slide 33: Meghan Beringer
Meghan Beringer Senior Director Investor Relations Myers Industries, Inc. 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 808-2885 mberinger@myersind.com www.myersind.com 33
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