Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q3 2023 Earnings Presentation
20 slides from Myers Industries's earnings presentation, Nov 1, 2023
Slide 1: Earnings Call Presentation Third Quarter 2023
Earnings Call Presentation Third Quarter 2023 November 1, 2023
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 “will”, “expect”, “be
Slide 3: Q3 2023 Key Takeaways
Q3 2023 Key Takeaways Maintained strong gross margin performance by staying committed to long-term Three Horizon strategy Self Help focus of Horizon 1 is providing earnings resilience in a choppy demand environment Adjusted gross margin expanded 20 basis points to 31.7% year-over-year Adjust
Slide 4: Q3 2023 Financial Summary
Q3 2023 Financial Summary (In $ millions except EPS) Q3 '23 Q3 '22 % Change Net Sales $197.8 $228.1 -13.3% Adj Gross Profit 62.7 71.9 -12.8% Adj Gross Margin 31.7% 31.5% +20 bps Adj Op Income 20.0 22.0 -9.0% Op Income Margin 10.1% 9.7% +40 bps Adj EBITDA 25.6 27.2 -5.6% EBITDA Margin 13.0% 11.9% +11
Slide 5: Q3 2023 Segment Results
Q3 2023 Segment Results Material Handling Distribution % % Q3 '23 Q3 '22 Q3 '23 Q3 '22 (In $ millions) Change (In $ millions) Change Net Sales $132.5 $155.7 -14.9% Net Sales $65.3 $72.4 -9.8% Adj Op Income 20.5 24.2 -15.3% Adj Op Income 5.7 5.2 11.1% Adj Op Income Margin 15.5% 15.6% -10 bps Adj Op I
Slide 6: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Quarterly free cash flow of $18.1M; capital Total Debt ($M) and Leverage expenditures were $4.1M Fin Lease Revolver Senior Notes Working capital as a percentage of sales was lower due primarily to the contribution from self help $107.5 $103.4 $98.1 initiatives and str
Slide 7: Full Year 2023 Fiscal Outlook
Full Year 2023 Fiscal Outlook Prior Current Outlook Outlook Net Sales Growth (Decline) (Mid-to High-Single Digits) (Mid-Single Digits) Diluted EPS $1.20 - $1.28 $1.41 - $1.73 Adjusted Diluted EPS $1.35 - $1.40 $1.55 - $1.85 Capital Expenditures $25M - $30M $25M - $30M Effective Tax Rate ~25% ~25% Ot
Slide 8: 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 9: Strategic Pillars for Horizon One
Strategic Pillars for Horizon One Strategic Objective: Transform Material Handling Segment into a high-growth, customer-centric innovator of engineered plastic solutions, while continuing to optimize and grow Distribution Segment 1 2 3 4 Organic Strategic Operational High-Performing Growth M&A Excel
Slide 10: Progress Against Pillars
Progress Against Pillars 1 Diversifying into Military and Industrial end-markets to overcome Consumer and RV end-market softness Organic Growth Continued growth in eCommerce and large accounts in Auto-Aftermarket Innovation and sales gains in Industrial boxes to balance potential Seed box decl
Slide 11: Myers Business System
Myers Business System Standardizing Work Processes Purchasing Self Help Pricing Excellence SG&A Discipline Supply Chain Operational Manufacturing Excellence Asset Management Organic Target Account Plans Market Plans Growth 11
Slide 12: Appendix
Appendix 12
Slide 13: 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 September 30, 2023 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 132,
Slide 14: 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 September 30, 2022 Material Corporate & Handling Distribution Segment Total Other Total Net sales $ 155,
Slide 15: 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Adjusted operating
Slide 16: 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 September 30, Nine Months Ended September 30, 2023 2022 2023 20
Slide 17: 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) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Income (loss) from continuing operations $ 7,255 $ 17,337 $ 15,831 $ 13
Slide 18: 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) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net sales $ 199,579 $ 225,486 $ 233,156 $ 228,065 $ 212,840 $ 215,739 $ 208,453
Slide 19: 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 2023 Guidance Low High GAAP diluted net income per common share $1.20 $1.28 Add: Executive severance costs 0.02 0.
Slide 20: Rich Pasela, Investor Relations
Rich Pasela Manager, Investor Relations & Treasury Myers Industries, Inc. 1293 S. Main Street, Akron, Ohio 44301 Tel: (330) 761-6284 rpasela@myersind.com www.myersind.com 20