Myers Industries, Inc. · NYSE:MYE
Myers Industries — Investor Presentation (September 2017)
20 slides from Myers Industries's investor presentation, Sep 11, 2017
Slide 1: Investor Presentation – September 2017
Investor Presentation – September 2017 MYERS INDUSTRIES, INC. Exhibit 99.1
Slide 2: Forward Looking Statements
F ORWARD L OOKING S TATEMENTS 2 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 indi
Slide 3: Key Investment Considerations
K EY I NVESTMENT C ONSIDERATIONS 3 » New management team executing a solid plan » Clear strategy to drive shareholder value » Safety and efficiency in everything we do » Niche market focus » Flexible operations » Strong cash flow growth » Act like owners » Diverse end markets present long-term oppor
Slide 4: Myers Overview
M YERS O VERVIEW 4 4 29% 13% 30% 2016 F INANCIAL M ETRICS 1 2016 S ALES P RODUCT P ORTFOLIO BY E N D M ARKET Reflects continuing operations. See appendix for non-GAAP reconciliations. SALES OPERATING MARGIN ADJUSTED OPERATING MARGIN 16% 12% $558M 5.2% 2.9% MATERIAL HANDLING Industry leading manufact
Slide 5: Balance Sheet & Cash Flow
5 B ALANCE S HEET & C ASH F LOW Net Debt ($M) and Net Debt to Adj. EBITDA 1 FCF ($M) and FCF as a % of Sales 1 Working Capital as a % of TTM Sales $27.6 $25.6 $21.2 $21.3 4% 4% 4% 8.1% 7.8% 8.0% 2.9x 3.1x 2.9x 2.9x 2.9x 2.9x » Implementing asset-light and lean operations » Disciplined approach to wo
Slide 6: Material Handling Overview
M ATERIAL H ANDLING O VERVIEW 6 2016 F INANCIAL M ETRICS 1 6 2016 S ALES P RODUCT P ORTFOLIO 42% 18% BY E N D M ARKET Reflects continuing operations. See appendix for non-GAAP reconciliations. SALES OPERATING MARGIN ADJUSTED OPERATING MARGIN Industrial Food & Beverage Vehicle Consumer $388M 9.9% 7.6
Slide 7: Distribution Overview
100% D ISTRIBUTION O VERVIEW 7 7 2016 F INANCIAL M ETRICS 1 2016 S ALES P RODUCT P ORTFOLIO BY E N D M ARKET Reflects continuing operations. See appendix for non-GAAP reconciliations. SALES $171M 7.5% Tire Changing Equipment Tire Changing Equipment Inventory Management Systems Industry leading distr
Slide 8: Market Indicators
8 M ARKET I NDICATORS 8 US O UTDOOR P OWER E QUIPMENT S HIPMENTS (M ILLIONS OF U NITS ) US N ET F ARM I NCOME ($B) T IRE D EMAND I NDEX 1 RV S HIPMENTS (T HOUSANDS OF U NITS ) (1) An index reading above 50 implies that the broader market expanded on a YOY basis, while a reading below 50 indicates th
Slide 9: Strategic Vision
S TRATEGIC V ISION 9 Niche Market Focus • #1 or #2 in each served market • Strong brands • Customer intimacy Flexible Operations • Simplify • 80/20 and lean • Process focus; value-add only Strong Cash Flow Growth Safety and Efficiency in Everything We Do Act Like Owners
Slide 10: Business Model
B USINESS M ODEL 10 » Build sustainable Niche Market Focus Flexible Operations Strong Cash Flow Growth competitive advantages » Step 1: Market segmentation » Step 2: Sell more of existing products » Step 3: Innovate to expand share » Step 1: Simplify and focus » Step 2: Restructure » Step 3: Lean im
Slide 11: 2017 – 2018 Initiatives
2017 – 2018 I NITIATIVES 11 • Sales force effectiveness - MTS sales process and pricing process • Innovation - Scepter new product launch • Reduce Material Handling ops footprint • Continue 80/20 & lean implementation • Focus on debt repayment • Early stages of acquisition funnel • High cash flow/as
Slide 12: How We Win: Niche Market Growth Strategy
H OW W E W IN : N ICHE M ARKET G ROWTH S TRATEGY 12 Niche Market Focus Define the market segment Orient the organization Penetrate the market segment with existing products Innovate Expand Invested in market research in all 5 key end markets in 2016 Established 7 dedicated cross functional teams in
Slide 13: How We Win: Changing The Operating Model
H OW W E W IN : C HANGING T HE O PERATING M ODEL 13 » Investing $10M to reduce the operating footprint » Annual savings of approximately $10M » Material Handling » Consolidation of factory footprint across several businesses » Strategic sourcing partners to produce certain volume » Focus in-house on
Slide 14: Long-Term Financial Targets
14 L ONG -T ERM F INANCIAL T ARGETS K EY M ETRICS 2016 1 2018 2020 14 Adj. Op Inc. Margin 5% >8% >10% Free Cash Flow/Sales 4% >7% >9% Working Capital/Sales 8% <9% <9% Adjusted EBITDA $64M >$70M >$80M Net Debt to Adj. EBITDA 2.9 <2.0 <2.0 Reflects actual results of continuing operations. See appendix
Slide 15: Key Investment Considerations
K EY I NVESTMENT C ONSIDERATIONS 15 » New management team executing a solid plan » Clear strategy to drive shareholder value » Safety and efficiency in everything we do » Niche market focus » Flexible operations » Strong cash flow growth » Act like owners » Diverse end markets present long-term oppo
Slide 16: Myers Industries, Inc.
MYERS INDUSTRIES, INC.
Slide 17: Reconciliation of Non-GAAP Measures
17 R ECONCILIATION OF N ON -GAAP M EASURES MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED) (Dollars in thousands, except per share data) Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items above
Slide 18: Reconciliation of Non-GAAP Measures
18 R ECONCILIATION OF N ON -GAAP M EASURES MYERS INDUSTRIES, INC. RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES - CONTINUING OPERATIONS (UNAUDITED) (Dollars in thousands) YTD June 2014 2015 2016 2017 Net cash provided by (used for) operating activities
Slide 19: Reconciliation of Non-GAAP Measures
19 R ECONCILIATION OF N ON -GAAP M EASURES ` 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 Net Income as Reported Continuing Operations 10,925 $ $ (125) $ (3,336) $ 5,684 $ $ (1,247) $ 3,128 $ 2,012 $ Add: tax expense 6,350 (151) 2,446 3,429 2,255 1,783 Ad
Slide 20: Myers Industries, Inc.
MYERS INDUSTRIES, INC.
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