Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q2 2024 Earnings Presentation
26 slides from Myers Industries's earnings presentation, Aug 1, 2024
Slide 1: 2024 Second Quarter Results
2024 Second Quarter Results August 1, 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: 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 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 Strategic Imperatives: Grow, Maximize Value
Horizon 2 Strategic Imperatives Maximize Grow Value Storage, Handling Engineered Automotive & Protection Solutions Aftermarket 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 Designed and tailored solutions High quality repair and products that move, store and that meet our customers’ replacement parts for prote
Slide 7: 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 8: Storage, Handling & Protection: Power Brands
Storage, Handling & Protection: Power Brands ~80% of pro forma profits are represented by these 4 brands Source: Investor Day, March 19, 2024 8
Slide 9: 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 10: Q2 2024 Financial Summary by Segment
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 11: 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 12: Signature Systems Acquisition
Signature Systems Acquisition Status on $8M in Signature Synergies $8M $8M Target Current Synergies Estimate Synergies include productivity and operational improvements, material savings and other savings initiatives Ahead of planned synergy savings in 2024 and working to achieve the targeted synerg
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Highlights Net Debt ($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 14: 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 $37
Slide 15: Full Year Fiscal 2024 Outlook
Full Year Fiscal 2024 Outlook ($ 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 16: 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 17: 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 18: 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 19: Appendix
INDUSTRIES 19
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 $ 212,840 $ 215,739 $ 208,453 $ 197,798 $ 191,077 $ 207,102
Slide 25: 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 26: 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 26