Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q3 2018 Earnings Presentation
16 slides from Myers Industries's earnings presentation, Nov 6, 2018
Slide 1: Third Quarter 2018 Earnings Presentation
MYERS INDUSTRIES, INC. Third Quarter 2018 Earnings Presentation Exhibit 99.2
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 “expect”, “believe”,
Slide 3: 2018 Q3 Overview
2018 Q3 Overview Challenges Achievements Distribution Segment continues to underperform to expectations Sales decline of 6.1% YOY Decline primarily due to lower equipment and international sales Implementing strategic review and broader actions to increase sales force effectiveness and reduce costs
Slide 4: Q3 Financial Summary
Q3 Financial Summary Operating Highlights Net sales up 0.1% Material Handling up $2.5M (+2.6%) Distribution down $2.4M (-6.1%) Adj. Gross profit increased $1.3M to 31.3% Favorable price and mix, partially offset by higher raw material costs Savings from 2017 restructuring initiatives partially offse
Slide 5: Q3 Segment Results
Q3 Segment Results Material Handling Segment Highlights Sales to Industrial market up double-digits Sales to the Vehicle market up low-single-digits driven by increased sales to the automotive and marine OEM markets offset by decline in RV market Sales to Consumer market down mid-single-digits; unus
Slide 6: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) and Cash Flow as % of Sales Net Debt ($M) and Net Debt to Adj. EBITDA Target <9% Working Capital as a % of TTM Sales Operating Cash Flow Free Cash Flow (FCF) FCF Target >7% 8.8% 8.6% 9.6% 9.9% Q3 Highlights Strong free cash flow generation of $12.7M, 9.4% o
Slide 7: 2018 Outlook
2018 Outlook 2016 2017 2018 Operating Framework - UPDATE Low single digits High single digits Mid single digits Low single digits Mid to high single digits Year-to-date, experienced increased demand from ag and food processing markets; expecting more normalized demand in Q4 Growth in market share pa
Slide 8: Strategic Actions for Distribution Segment
Actions over last few years have not yielded improvement in results Executing a broader set of actions to transform the business: Strategic pivot in go-to-market strategy, moving from a single channel to multi-channel sales model, including an enhanced e-commerce platform Optimizing our logistics an
Slide 9: Appendix
Appendix
Slide 10: 2018 Key Assumptions
2018 Key Assumptions Net sales:Flat to up low-single-digits Capital expenditures:$6 - $8 million Net interest expense: $4 - $6 million D&A: ~$26 million Effective tax rate (normalized):~25%
Slide 11: 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)
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) Material Handling Distribution Segment Total Corporate & Other Total GAAP Net sales 95,192 $ 40,004 $ 135,196 $ (83) $
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-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)
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS (UNAUDITED) (Dollars in thousands)
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA (UNAUDITED) (Dollars in thousands)
Slide 16: Slide 16