Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q4 2019 Earnings Presentation
20 slides from Myers Industries's earnings presentation, Mar 3, 2020
Slide 1: Fourth Quarter & Full Year 2019 Earnings Presentation
MYERS INDUSTRIES, INC. Fourth Quarter & Full Year 2019 Earnings Presentation 21 54 91 142 184 230 56 67 73 Font Color 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: 2019 Full Year Overview
2019 Full Year Overview Challenges Achievements Distribution Segment transformation actions delivered results Sales increased 6.5% compared to 2018 Increase was 1.7% excluding the Tuffy acquisition Adjusted EBITDA margin increased 270 bps to 8.0% Completed acquisition of Tuffy Manufacturing Industri
Slide 4: Q4 2019 Financial Summary
Q4 2019 Financial Summary Operating Highlights Net sales down 15.6%, compared to Q4 2018 Material Handling down $26.1M (-26.2%) Distribution up $4.6M (+11.8%) Adjusted gross profit margin expanded to 33.6% from 30.5% Favorable price-cost margin and productivity improvements Adjusted op income down 6
Slide 5: Q4 Segment Results
Material Handling Segment Net sales down 26.2% vs. Q4 2018 Food and Beverage end market down double digits due to lower seed box sales Consumer end market down mid-teens due to continued soft demand for fuel containers Industrial end market down mid-teens due to a weak overall demand environment Veh
Slide 6: Balance Sheet and Cash Flow
Working Capital as a % of TTM Sales Balance Sheet and Cash Flow Cash Flow ($M) and Cash Flow as % of Sales Total Debt ($M) and Debt to Adj. EBITDA Operating Cash Flow Free Cash Flow (FCF) 7.1% 9.8% 9.1% 10.7% 1.2x 2019 Highlights Free cash flow generation of $36.7M, compared to $55.3M last year Decr
Slide 7: 2020 Fiscal Year Sales Outlook
2019 % of Total Sales 2020 Expectations Low-single digits High-single digits Low-single digits Low-single digits Low-teens Anticipate increased demand from seed box customers following soft prior year season; expect continued higher sales to food processing customers Expect sales of fuel containers
Slide 8: 2020 Fiscal Year Guidance
2020 Fiscal Year Guidance Net sales growth:~ Up mid-single digits D&A: ~ $21M Net interest expense:~ $4M Effective tax rate (normalized):~ 27% Diluted share count:~ 36M Diluted EPS:$1.05 - $1.15 Adjusted diluted EPS: $0.85 - $0.95 Capital expenditures: ~ $15M
Slide 9: Appendix
Appendix
Slide 10: 2019 Full Year Financial Summary
2019 Full Year Financial Summary Operating Highlights Net sales down 9.0%, compared to 2018 Material Handling down $60.8M (-14.6%) Distribution up $9.7M (+6.5%) Adjusted gross profit margin expanded to 33.3% from 31.8% Favorable price-cost margin and productivity gains offset lower volume and $3.5M
Slide 11: 2019 Full Year Segment Results
2019 Full Year Segment Results Material Handling Financial Highlights Distribution Financial Highlights Results reflect continuing operations. See appendix for non-GAAP reconciliations. Distribution Segment Net sales up 6.5% vs. 2018 Sales up 1.7% excluding Tuffy acquisition Adjusted EBITDA up $4.8
Slide 12: Reconciliation of Non-GAAP Financial Measures: Gross Profit, Operating Income and EBITDA
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 13: Reconciliation of Non-GAAP Financial Measures: Gross Profit, Operating Income and EBITDA
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 14: Reconciliation of Non-GAAP Financial Measures: Income and Earnings Per Diluted Share
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 15: Reconciliation of Non-GAAP Financial Measures: Gross Profit, Operating Income and EBITDA
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 16: Reconciliation of Non-GAAP Financial Measures: Income and Earnings Per Diluted Share
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 17: Reconciliation of Free Cash Flow to GAAP Operating Cash Flow
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 18: Reconciliation of Non-GAAP Financial Measures: Adjusted EBITDA and Debt
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA AND DEBT (UNAUDITED) (Dollars in thousands)
Slide 19: Reconciliation of Non-GAAP Financial Measures: Working Capital
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES WORKING CAPITAL (UNAUDITED) (Dollars in thousands)
Slide 20: Slide 20