Myers Industries, Inc. · NYSE:MYE
Myers Industries — 2024 KeyBanc Capital Markets Industrials and Basic Materials Conference
37 slides from Myers Industries's conference presentation, May 29, 2024
Slide 1: 2024 KeyBanc Capital Markets Industrials and Basic Materials Conference
2024 KeyBanc Capital Markets Industrials and Basic Materials Conference May 29, 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 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 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: Adjusted EPS Drivers for 2024
Adjusted EPS Drivers for 2024 $1.60 Potential Tailwinds $1.50 + Strong Signature growth $1.40 Adjusted EPS + Military growth $1.30 Guidance + E-commerce growth $1.20 $1.30 - $1.45 + Announced cost reductions $1.10 + Timing of delayed Seed box order Adjusted EPS $1.00 $0.90 + Active Hurricane season
Slide 11: Progress since Q1 Earnings Release
Progress since Q1 Earnings Release Grow Maximize Value Storage, Handling & Engineered Automotive Protection Solutions Aftermarket ❑ Signature progress exceeding expectations ❑ On May 28, 2024, announced consolidation of three Distribution Centers (DCs) to yield ~$2.5M in ❑ Continued strong growth in
Slide 12: Horizon 2 Strategic Imperatives
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket Source: Investor Day, March 19, 2024 12
Slide 13: Protecting the World from the Ground Up
Protecting the World from the Ground Up Ground Protection Turf Protection 13
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: First Quarter 2024 Key Highlights
First Quarter 2024 Key Highlights ❑ Newly acquired Signature Systems delivered strong results ❑ Anticipated near-term challenges in key end-markets ❑ Accelerating identified opportunities in Self-Help Playbook while continuing to execute 3 Horizon Strategy ❑ Management maintains full-year 2024 outlo
Slide 16: Q1 2024 Financial Summary
Q1 2024 Financial Summary (In $ millions except EPS) Q1 ’24 Q1 ‘23 % Change Net Sales $207.1 $215.7 (4.0)% Adj. Gross Profit $67.6 $71.2 (5.0)% Adj. Gross Margin 32.7% 33.0% -30 bps Adj. Op Income $16.6 $20.3 (18.0)% Adj. Op Income Margin 8.0% 9.4% -140 bps Adj. EBITDA $25.1 $25.9 (3.0)% Adj. EBITDA
Slide 17: Q1 2024 Financial Summary
Q1 2024 Financial Summary Material Handling Distribution (In $ millions) Q1 ’24 Q1 ’23 % Change (In $ millions) Q1 ‘24 Q1 ‘23 % Change Net Sales $152.2 $152.6 (0.2)% Net Sales $54.9 $63.2 (13.1)% Adj Op Income $25.0 $25.8 (3.0)% Adj Op Income $0.6 $2.5 (76.0)% Adj Op Income Margin 16.4% 16.9% -50 bp
Slide 18: Key Drivers for 2024
Key Drivers for 2024 2024 Revenue Guidance Walk Adjusted EPS Guidance Adj. EPS Guidance 15 – 20% $1.30 - $1.45 Revenue Growth Guidance % YoY Change Also assumes Distribution stabilization and RV and Marine end-markets remain at trough levels in back-half of the year $0.21 Q1 YoY Signature Military A
Slide 19: Self Help Playbook: Accelerating Additional $7-9M in New Cost Initiatives
Self Help Playbook: Accelerating Additional $7-9M in New Cost Initiatives ❑ The team is working diligently on identifying and implementing $7-9M of new annualized run-rate cost initiatives as well as implementing the $8M of annualized Signature synergies, for a total of $15M - $17M of annualized sav
Slide 20: Signature Update
Signature Update ❑ Continue to see strong infrastructure end-market demand ❑ Signature integration progressing well and ahead of schedule ❑ Synergy plan is being implemented and expected to be at an annualized rate of $8M of savings by 2025 ❑ Signature capital plan is being executed, with additional
Slide 21: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Highlights Total Debt ($M) and Leverage ❑ Delivered operating cash flow of $20.3 million and free cash flow of $14.6 million Term Loan A Fin Lease Revolver Senior Notes $409.7 Note: Under the ❑ Cash balance of $32.7M at quarter-end. Leverage ratio terms of the TLA increas
Slide 22: Implemented Swap to Mitigate Interest Rate Risk
Implemented Swap to Mitigate Interest Rate Risk ❑ Entered a swap to mitigate variable interest rate risk of Amended Loan Agreement ❑ Notional amount : $200 million (50% of Term Loan A), reducing proportionally with scheduled amortization payments ❑ Fixed rate: 4.606% + applicable margin ❑ Perfectly
Slide 23: Full Year Fiscal 2024 Outlook
Full Year Fiscal 2024 Outlook Maintain current outlook, guiding to lower end of the range for Revenue, Diluted EPS and Adjusted Diluted EPS ($ in Millions except EPS) Current Outlook Net Sales Growth 15% - 20% Diluted EPS $1.05 - $1.22 Adjusted Diluted EPS $1.30 - $1.45 Capital Expenditures $35M - $
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 – 5/23/2024 24 * Guidance is illustrative and based of adjusted
Slide 25: Summary
Summary ❑ Built foundation in Horizon One ❑ Transformation accelerating in Horizon Two ❑ Signature Systems is a catalyst ❑ Storage, Handling & Protection portfolio is a significant value driver 25
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 March 31, 2024 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 152,225
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 March 31, 2023 Material Segment Corporate & Handling Distribution Total Other Total Net sales $ 152,562
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 March 31, 2024 2023 Adjusted operating income (loss) reconciliation: Operating incom
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 March 31, 2024 2023 Adjusted net income (loss) reconciliation:
Slide 31: 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) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Income (loss) from continuing operations $ 15,831 $ 13,671 $ 13,428 $ 1
Slide 32: 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) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net sales $ 233,156 $ 228,065 $ 212,840 $ 215,739 $ 208,453 $ 197,798 $ 191,077
Slide 33: 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 $1.05 $1.22 Add: Net restructuring expenses and ot
Slide 34: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Conversion ($M) 2016 2017 2018 2019 2020 2021 2022 2023 TTM* Net sales - continuing operations $ 534.4 $ 547.0 $ 566.7 $ 515.7 $ 510.4 $ 761.4 $ 899.5 $ 813.1 $ 804.4 Net income (loss) from
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Net Income ($M) 2016 2017 2018 2019 2020 2021 2022 2023 TTM* Net income (loss) from continuing operations $ 11.3 $ 10.8 $ (1.6) $ 24.2 $ 36.8 $ 33.5 $ 60.3 $ 48.9 $ 39.4 Income tax expense (benefit) 7.4 4.9 3.0 9.0 12.1 11.6 17.9 17.2 14.2 Income (loss) f
Slide 36: Unleashing the Value
Unleashing the Value Material Handling Distribution Corporate Storage, Handling Engineered Automotive Leverage Scale & Protection Solutions Aftermarket Branded, Contract Industrial Centers of High Value Manufacturing Distribution Excellence Target Adj. EBITDA 30 - 35+% 8 - 15% 8 - 12% Margin 36
Slide 37: 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 37
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