Myers Industries, Inc. · NYSE:MYE
Myers Industries — Q4 2018 Earnings Presentation
22 slides from Myers Industries's earnings presentation, Feb 28, 2019
Slide 1: Fourth Quarter & Full Year 2018 Earnings Presentation
MYERS INDUSTRIES, INC. Fourth Quarter & Full Year 2018 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: 2018 Overview
2018 Overview Challenges Achievements Generated annual free cash flow of $55.3M or 9.8% of sales, an increase of 28% Net working capital 3.8% at year-end Double-digit sales growth in our Food & Beverage market, leading to an increase in net sales of 6.6% in Material Handling and 3.6% overall Launche
Slide 4: Q4 Financial Summary
Q4 Financial Summary Operating Highlights Net sales down 1.2%, compared to Q4 2017 Material Handling down $2.0M (-2.0%) Distribution up $0.2M (+0.6%) Adj. Gross profit increased $3.6M to 30.5% Favorable price, partially offset by lower volume and unfavorable mix Savings from 2017 restructuring initi
Slide 5: Q4 Segment Results
Q4 Segment Results Material Handling Segment Highlights Net sales down 2.0% vs. Q4 2017 Sales to Consumer market down double-digits due primarily to high hurricane related volume in 2017 Sales to Food & Beverage market down mid-single-digits due to higher comps from high seed box demand in Q4 2017 S
Slide 6: Balance Sheet and Cash Flow
Target <9% Working Capital as a % of TTM Sales Balance Sheet and Cash Flow Cash Flow ($M) and Cash Flow as % of Sales Net Debt ($M) and Net Debt to Adj. EBITDA Operating Cash Flow Free Cash Flow (FCF) FCF Target > 7% 9.8% 7.9% 10.7% 9.0% 2018 Highlights Free cash flow generation of $55.3M, a 28% inc
Slide 7: Distribution strategic initiatives
Strategic initiatives focused on 3 key areas: Shifting go-to-market strategy to enhance sales effectiveness Expanding strategic accounts team focused on large key accounts Building inside sales team to focus on smaller, harder to reach accounts Segmenting sales organization to better align with mark
Slide 8: 2019 Fiscal Year Outlook: Operating Framework
2018 2019 Operating Framework Mid-single digits Mid- teens Mid-single digits Low-single digits Low-to-mid- single digits Expecting decline from unusually high demand in 2018 and competitive pressure; anticipating increased sales to food processing customers Growth from new product launch and market
Slide 9: 2019 Full Year Guidance
2019 Full Year Guidance Net sales growth: ~ Flat D&A: ~ $25M Net interest expense: ~ $5M Effective tax rate (normalized): ~ 27% Diluted share count: ~ 36M Diluted EPS$0.75 - $0.85 Capital expenditures: ~ $10M
Slide 10: Financial Targets
Financial Targets Adjusted Op Income Margin Free Cash Flow/Sales Working Capital/Sales Total Debt-to-Adjusted-EBITDA Adjusted EBITDA Long-term Financial Targets 2018 Targets >8% >7% <9% <2.0x >$70M 2018 Actual 7.1% 9.8% ü 3.8% ü 1.2x ü $66M 2020 Targets >10% >9% <9% <2.0x >$80M ~One year behind in a
Slide 11: Appendix
Appendix
Slide 12: 2018 Financial Summary
2018 Financial Summary Operating Highlights Net sales up 3.6%, compared to 2017 Material Handling up $25.9M (+6.6%) Distribution down $6.8M (-4.3%) Adj. Gross profit increased $15.0M to 31.8% Favorable price and volume, partially offset by unfavorable customer mix Savings from 2017 restructuring ini
Slide 13: 2018 Segment Results
2018 Segment Results Material Handling Financial Highlights Distribution Financial Highlights Results reflect continuing operations. See appendix for non-GAAP reconciliations. Distribution Segment Highlights Net sales down 4.3% vs. 2017 Decline primarily due to lower equipment and international sale
Slide 14: Reconciliation of Non-GAAP 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 15: Reconciliation of Non-GAAP 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 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 17: Reconciliation of Non-GAAP 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 18: Reconciliation of Non-GAAP 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 19: 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 20: Reconciliation of Non-GAAP Measures: Adjusted EBITDA and Net Debt
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA AND NET DEBT (UNAUDITED) (Dollars in thousands)
Slide 21: Reconciliation of Non-GAAP Measures: Working Capital
Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES WORKING CAPITAL (UNAUDITED) (Dollars in thousands)
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