Fourth Quarter Sales Increased 45% Including
Acquisitions, 28% on an Organic Basis
Outlook for Strong Revenue Growth and Increased
Profitability in Fiscal 2022
Myers Industries, Inc. (NYSE: MYE), a leading manufacturer of a
wide range of polymer products and distributor for the tire, wheel,
and under-vehicle service industry, today announced results for the
fourth quarter and full year ended December 31, 2021.
Fourth Quarter and Full Year 2021
Financial Highlights
- Net sales for the fourth quarter increased 45% to $199.6
million, compared with $137.5 million for the fourth quarter of
2020; net sales for the full year increased 49% to $761.4 million,
compared with $510.4 million for the full year of 2020
- On an organic basis, net sales for the fourth quarter increased
28% compared with the fourth quarter of 2020 and net sales for the
full year increased 25% compared with the full year of 2020
- Net income per diluted share for the fourth quarter increased
150% to $0.20, compared with $0.08 for the fourth quarter of 2020;
net income per diluted share for the full year decreased 10% to
$0.92, compared with $1.02 for the full year of 2020 (net income
for the full year of 2020 included $11.9 million of pre-tax income
from the sale of notes and release of lease guarantee liability
related to the Company's Lawn and Garden business that was sold in
2015)
- Adjusted earnings per diluted share for the fourth quarter
increased 109% to $0.23, compared with $0.11 for the fourth quarter
of 2020; adjusted earnings per diluted share for the full year
increased 14% to $0.97, compared with $0.85 for the full year of
2020
- Adjusted EBITDA for the fourth quarter increased 55% to $17.6
million, compared with $11.3 million for the fourth quarter of
2020; adjusted EBITDA for the full year increased 9% to $72.3
million, compared with $66.4 million for the full year of 2020
- Cash flow from continuing operations was $44.9 million and free
cash flow was $27.0 million for the full year of 2021
Myers Industries’ President and CEO, Mike McGaugh said, “2021
was a strong and important year for Myers. We experienced strong
organic revenue growth. We successfully integrated two
high-performing acquisitions. In addition, we are proud to tell you
that the revitalization of Myers’ sales, marketing, and operational
capabilities is taking place across all of Myers. The
transformation of Myers is ongoing. We continue to see robust
demand for our products across our end markets and are confident
that our ‘One Myers’ strategy, based on an integrated company
approach, will help us fulfill this demand.
Throughout 2021, our team worked hard and smartly to offset cost
pressures that temporarily depressed near-term margins. That
included pricing actions and implementing a value-based approach to
pricing, which delivered a favorable price-to-cost relationship
during the fourth quarter. We believe our significant infusion of
operational and commercial talent over the past two years and our
new processes and approach to doing business will make these
improvements lasting. This will put us in a strong position to
drive margins and profitability in 2022 and beyond.”
McGaugh concluded, “During the fourth quarter, we continued the
integration of our recent acquisitions, Elkhart Plastics and
Trilogy Plastics. These acquisitions have exceeded our expectations
by bringing scale, and capability, and an improved ability to
deliver value to Myers’ customers. It’s exciting and gratifying to
see the progress on our acquisitions, as well as the commercial and
operational improvements across our company. Looking forward, we
remain focused on maintaining our strong momentum, executing the
“One Myers” integrated strategy, and delivering improved results.
We have a strong team comprised of long-serving Myers' associates
and over two dozen new high-horsepower members, a robust demand for
our differentiated products, sustained top-line momentum, a healthy
balance sheet, and a high cash-generating business model, all of
which are working together to drive growth and position the
business for long-term success. We look forward to continued
execution in 2022 and believe we have only scratched the surface of
our long-term potential.”
Fourth Quarter 2021 Financial
Summary
Quarter Ended December 31,
2021
2020
Inc (Dec)
(Dollars in millions, except per
share data)
Net sales
$199.6
$137.5
45.2%
Operating income
$10.8
$4.9
121.4%
Adjusted operating income
$12.5
$6.4
94.4%
Adjusted operating income margin
6.2%
4.7%
+150 bps
Net income
$7.3
$3.0
142.6%
Adjusted net income
$8.4
$3.8
117.9%
Net income per diluted share
$0.20
$0.08
150.0%
Adjusted earnings per diluted share
$0.23
$0.11
109.1%
Net sales for the fourth quarter of 2021 were $199.6 million, an
increase of $62.1 million, or 45.2%, compared with $137.5 million
for the fourth quarter of 2020, driven by strong sales in both the
Material Handling and Distribution segments. Excluding the
incremental $23.3 million of net sales from the Elkhart and Trilogy
acquisitions, organic net sales increased 28%, with 19% due to
favorable pricing and 9% due to higher volume/mix .
Gross profit increased $12.0 million, or 30.1% to $51.8 million,
primarily due to the increased contribution from pricing actions,
sales volume, and the Elkhart and Trilogy acquisitions. Partially
offsetting these contributions were higher raw material costs,
increased labor and other manufacturing costs, and an unfavorable
sales mix. Although the contribution from pricing actions more than
offset higher raw material costs, which led to a favorable
price-to-cost relationship for the quarter, gross margin was 26.0%
compared with 29.0% for the fourth quarter of 2020 due to the
higher labor and other manufacturing costs and unfavorable sales
mix. Selling, general and administrative expenses increased $6.3
million, or 18.1% to $41.3 million, reflecting the Elkhart and
Trilogy acquisitions, which accounted for approximately half of the
increase, higher salaries, benefits, incentive compensation costs,
and increased professional fees. SG&A as a percentage of sales
declined to 20.7% in the fourth quarter, compared with 25.4% in the
same period last year. Net income per diluted share was $0.20,
compared with $0.08 for the fourth quarter of 2020. Adjusted
earnings per diluted share were $0.23, compared with $0.11 for the
fourth quarter of 2020.
Fourth Quarter 2021 Segment
Results
(Dollar amounts in the segment tables below are reported in
millions)
Material Handling
Net Sales
Op Income
Adj Op Income
Adj Op Income Margin
Q4 2021 Results
$147.3
$12.3
$13.2
9.0%
Q4 2020 Results
$92.2
$8.5
$9.1
9.8%
Increase (decrease) vs prior year
59.8%
44.3%
45.8%
-80 bps
Net sales for the Material Handling Segment during the fourth
quarter of 2021 were $147.3 million, an increase of $55.1 million,
or 59.8%, compared with $92.2 million for the fourth quarter of
2020. Excluding the incremental $23.3 million of net sales from the
Elkhart and Trilogy acquisitions, organic net sales increased 25%
due to favorable price, 9% due to higher volume/mix, and 1% due to
foreign currency exchange. Organic net sales increased in the food
and beverage, industrial, vehicle, and consumer end markets.
Operating income increased 44.3% to $12.3 million, compared with
$8.5 million in 2020. Adjusted operating income increased 45.8% to
$13.2 million, compared with $9.1 million in 2020. Contributions
from pricing actions and the increase in sales volume during the
quarter were partially offset by higher raw material costs,
increased labor and other manufacturing costs, and an unfavorable
sales mix. The contribution from pricing actions more than offset
higher raw material costs, which led to a favorable price-to-cost
relationship for the quarter. Additionally, SG&A expenses were
higher year-over-year. The increase in SG&A expenses was
primarily due to the Elkhart and Trilogy acquisitions and higher
salaries, benefits, and incentive compensation costs. The Material
Handling Segment’s adjusted operating income margin was 9.0%,
compared with 9.8% for the fourth quarter of 2020.
Distribution
Net Sales
Op Income
Adj Op Income
Adj Op Income Margin
Q4 2021 Results
$52.3
$5.4
$5.4
10.3%
Q4 2020 Results
$45.3
$3.6
$3.6
7.9%
Increase vs prior year
15.5%
50.8%
50.8%
+240 bps
Net sales for the Distribution Segment during the fourth quarter
of 2021 were $52.3 million, an increase of $7.0 million, or 15.5%,
compared with $45.3 million for the fourth quarter of 2020. The
increase was driven by higher volume/mix across both equipment and
supplies and pricing actions. Operating income increased 50.8% to
$5.4 million, compared with $3.6 million in 2020. Contributions
from pricing actions and higher volume/mix were partially offset by
an increase in SG&A expenses year-over-year. The increase in
SG&A expenses was primarily the result of higher salaries,
benefits, and incentive compensation costs. The Distribution
Segment’s adjusted operating income margin was 10.3%, compared with
7.9% for the fourth quarter of 2020.
Full Year 2021 Financial
Summary
Year Ended December 31,
2021
2020
Inc (Dec)
(Dollars in millions, except per
share data)
Net sales
$761.4
$510.4
49.2%
Operating income
$49.3
$53.6
(7.9)%
Adjusted operating income
$51.9
$45.9
13.2%
Adjusted operating income margin
6.8%
9.0%
-220 bps
Net income
$33.5
$36.8
(8.8)%
Adjusted net income
$35.3
$30.5
15.8%
Net income per diluted share
$0.92
$1.02
(9.8)%
Adjusted earnings per diluted share
$0.97
$0.85
14.1%
Net sales for the full year of 2021 were $761.4 million, an
increase of $251.1 million, or 49.2%, compared with $510.4 million
for the full year of 2020, driven by strong sales in both the
Material Handling and Distribution segments. Excluding the
incremental $122.2 million of net sales from the Elkhart and
Trilogy acquisitions, organic net sales increased 25%, with 14% due
to higher volume/mix, 10% due to favorable pricing, and 1% due to
foreign currency exchange.
Gross profit increased $39.5 million, or 22.9% to $211.4
million, primarily due to the increased contribution from pricing
actions, volume/mix and the Elkhart and Trilogy acquisitions.
Partially offsetting these contributions were higher raw material
costs, including a $2.0 million incremental charge to increase the
LIFO inventory reserve, which were not fully recovered by pricing
actions and led to an unfavorable price-to-cost relationship for
the year. Gross margin declined to 27.8% compared with 33.7% for
the full year of 2020 as a result of the unfavorable price-to-cost
relationship, higher labor and other manufacturing costs, and an
unfavorable sales mix. Selling, general and administrative expenses
increased $33.2 million, or 25.5% to $163.5 million, reflecting the
Elkhart and Trilogy acquisitions, higher salaries, benefits,
incentive compensation costs, and increased professional fees.
SG&A as a percentage of sales declined to 21.5% for the full
year, compared with 25.5% last year. Net income per diluted share
was $0.92, compared with $1.02 for the full year of 2020, which
included $0.24 from the sale of notes and release of lease
guarantee liability related to the Company’s Lawn and Garden
business sold in 2015. Adjusted earnings per diluted share were
$0.97, compared with $0.85 for the full year of 2020.
Full Year 2021 Segment
Results
(Dollar amounts in the segment tables below are reported in
millions)
Material Handling
Net Sales
Op Income
Adj Op Income
Adj Op Income Margin
Full Year 2021 Results
$564.1
$62.2
$62.4
11.1%
Full Year 2020 Results
$343.9
$55.1
$56.5
16.4%
Increase (decrease) vs prior year
64.0%
12.9%
10.4%
-530 bps
Net sales for the Material Handling Segment for the full year of
2021 were $564.1 million, an increase of $220.2 million, or 64.0%,
compared with $343.9 million for the full year of 2020. Excluding
the incremental $122.2 million of net sales from the Elkhart and
Trilogy acquisitions, organic net sales increased 14% due to higher
volume/mix, 14% due to favorable price and 1% due to foreign
currency exchange. Organic net sales increased in the vehicle, food
and beverage, industrial, and consumer end markets. Operating
income increased 12.9% to $62.2 million, compared with $55.1
million in 2020. Adjusted operating income increased 10.4% to $62.4
million, compared with $56.5 million in 2020. Contributions from
the increase in volume/mix and pricing during the quarter were
partially offset by higher raw material costs, including a $0.9
million incremental charge to increase the LIFO inventory reserve,
increased labor costs, and an unfavorable sales mix. Additionally,
SG&A expenses were higher year-over-year. The increase in
SG&A expenses was primarily due to the Elkhart and Trilogy
acquisitions, higher salaries, benefits, incentive compensation
costs, and increased professional fees. The Material Handling
Segment’s adjusted operating income margin was 11.1%, compared with
16.4% for the full year of 2020.
Distribution
Net Sales
Op Income
Adj Op Income
Adj Op Income Margin
Full Year 2021 Results
$197.4
$15.4
$16.0
8.1%
Full Year 2020 Results
$166.5
$12.2
$12.2
7.3%
Increase vs prior year
18.5%
26.9%
31.1%
+80 bps
Net sales for the Distribution Segment for the full year of 2022
were $197.4 million, an increase of $30.9 million, or 18.5%,
compared with $166.5 million for the full year of 2020. The
increase was driven by higher volume/mix across both equipment and
supplies and pricing actions. Operating income increased 26.9% to
$15.4 million, compared with $12.2 million in 2020. Adjusted
operating income increased 31.1% to $16.0 million, compared with
$12.2 million in 2020. Contributions from higher volume/mix and
pricing actions were partially offset by an increase in SG&A
expenses year-over-year. The increase in SG&A expenses was
primarily the result of higher salaries, benefits, incentive
compensation costs, and increased selling expenses. The
Distribution Segment’s adjusted operating income margin was 8.1%,
compared with 7.3% for the full year of 2020.
Balance Sheet & Cash
Flow
As of December 31, 2021, the Company’s cash on hand totaled
$17.7 million, compared to $28.3 million as of December 31, 2020.
Total debt as of December 31, 2021, was $100.9 million.
For the full year of 2021, cash flow provided by operations was
$44.9 million and free cash flow was $27.0 million, compared with
cash flow provided by operations of $46.5 million and free cash
flow of $33.1 million for the full year of 2020. Capital
expenditures for the full year of 2021 were $17.9 million, compared
with $13.4 million for the full year of 2020.
2022 Outlook
Based on current exchange rates, market outlook and business
forecast, the Company provided the following outlook for fiscal
2022:
- Net sales growth in the high single digit to low double digit
range, with approximately one quarter of the increase due to the
acquisition of Trilogy Plastics
- Diluted EPS in the range of $1.18 to $1.38; adjusted diluted
EPS in the range of $1.20 to $1.40
- Capital expenditures to be in the range of $25 to $28
million
- Effective tax rate to approximate 26%
Conference Call Details
The Company will host an earnings conference call and webcast
for investors and analysts on Thursday, March 10, 2022, at 8:30
a.m. EDT. The call is anticipated to last less than one hour and
may be accessed using the following online participation
registration link:
https://www.incommglobalevents.com/registration/q4inc/10107/myers-industries-2021-fourth-quarter-earnings-call/.
Upon registering, each participant will be provided with call
details and a registrant ID that will be used to track call
attendance. Reminders will also be sent to registered participants
via email. The live webcast of the conference call can be accessed
from the Investor Relations section of the Company's website at
www.myersindustries.com. Webcast
attendees will be in a listen-only mode. An archived replay of the
call will also be available on the site shortly after the event.
Investors can access a replay of the teleconference at (866)
813-9403; international callers use (226) 828-7578. The Access Code
is 06717. The teleconference replay will be available through March
17, 2022.
Use of Non-GAAP Financial
Measures
The Company uses certain non-GAAP measures in this release.
Adjusted gross profit, adjusted gross profit margin, adjusted
operating income (loss), adjusted operating income margin, adjusted
earnings before interest, taxes, depreciation and amortization
(EBITDA), adjusted EBITDA margin, adjusted income (loss) before
taxes, adjusted net income, adjusted earnings per diluted share,
and free cash flow are non-GAAP financial measures and are intended
to serve as a supplement to results provided in accordance with
accounting principles generally accepted in the United States.
Myers Industries believes that such information provides an
additional measurement and consistent historical comparison of the
Company’s performance. A reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP measures is available
in this news release.
About Myers Industries
Myers Industries, Inc. is a manufacturer of polymer products for
industrial, agricultural, automotive, commercial, and consumer
markets. The Company is also the largest distributor of tools,
equipment and supplies for the tire, wheel, and under-vehicle
service industry in the United States. Visit www.myersindustries.com to learn more.
Caution on Forward-Looking
Statements
Statements in this release 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”, “believe”,
“project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”,
“target”, “goal”, “view” and similar expressions identify
forward-looking statements. These statements are based on
management's current views and assumptions of future events and
financial performance and involve a number of risks and
uncertainties, many outside of the Company's control that could
cause actual results to materially differ from those expressed or
implied. Risks and uncertainties include: impacts from the COVID-19
pandemic on our business, conditions, customers and capital
position; the impact of COVID-19 on local, national and global
economic conditions; the effects of various governmental responses
to the COVID-19 pandemic, raw material availability, increases in
raw material costs, or other production costs; impacts of price
increases, risks associated with our strategic growth initiatives
or the failure to achieve the anticipated benefits of such
initiatives; unanticipated downturn in business relationships with
customers or their purchases; competitive pressures on sales and
pricing; changes in the markets for the Company’s business
segments; changes in trends and demands in the markets in which the
Company competes; operational problems at our manufacturing
facilities, or unexpected failures at those facilities; future
economic and financial conditions in the United States and around
the world; inability of the Company to meet future capital
requirements; claims, litigation and regulatory actions against the
Company; changes in laws and regulations affecting the Company;
impact of the U.S. elections impacts on the regulatory landscape,
capital markets, and responses to and management of the COVID-19
pandemic including further economic stimulus from the federal
government; and other important factors detailed previously and
from time to time in the Company’s filings with the Securities and
Exchange Commission, including the Company’s Annual Report on Form
10-K for the year ended December 31, 2021 and subsequent Quarterly
Reports on Form 10-Q. Such reports are available on the Securities
and Exchange Commission's public reference facilities and its
website at www.sec.gov and on the
Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries
undertakes no obligation to publicly update or revise any
forward-looking statements contained herein. These statements speak
only as of the date made.
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except
share and per share data)
Quarter Ended
Year Ended
December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
Net sales
$
199,579
$
137,467
$
761,435
$
510,369
Cost of sales
147,763
97,630
550,014
338,409
Gross profit
51,816
39,837
211,421
171,960
Selling, general and administrative
expenses
41,302
34,971
163,502
130,331
(Gain) loss on disposal of fixed
assets
(236
)
10
(1,382
)
3
Gain on sale of notes receivable
—
—
—
(11,924
)
Operating income (loss)
10,750
4,856
49,301
53,550
Interest expense, net
1,158
1,221
4,208
4,688
Income (loss) before income
taxes
9,592
3,635
45,093
48,862
Income tax expense (benefit)
2,337
645
11,555
12,093
Net income (loss)
$
7,255
$
2,990
$
33,538
$
36,769
Net income (loss) per common
share:
Basic
$
0.20
$
0.08
$
0.93
$
1.03
Diluted
$
0.20
$
0.08
$
0.92
$
1.02
Weighted average common shares
outstanding:
Basic
36,242,600
35,848,726
36,138,571
35,785,798
Diluted
36,447,287
36,017,750
36,358,969
35,916,630
MYERS INDUSTRIES, INC.
SALES AND EARNINGS BY SEGMENT
(UNAUDITED)
(Dollars in thousands)
Quarter Ended December
31,
Year Ended December
31,
2021
2020
% Change
2021
2020
% Change
Net sales
Material Handling
$
147,284
$
92,184
59.8
%
$
564,068
$
343,884
64.0
%
Distribution
52,308
45,291
15.5
%
$
197,427
$
166,544
18.5
%
Inter-company Sales
(13
)
(8
)
-
$
(60
)
$
(59
)
-
Total
$
199,579
$
137,467
45.2
%
$
761,435
$
510,369
49.2
%
Operating income (loss)
Material Handling
$
12,292
$
8,516
44.3
%
$
62,187
$
55,072
12.9
%
Distribution
5,399
3,580
50.8
%
15,428
12,157
26.9
%
Corporate
(6,941
)
(7,240
)
-
(28,314
)
(13,679
)
-
Total
$
10,750
$
4,856
121.4
%
$
49,301
$
53,550
(7.9
)%
Adjusted operating income
(loss)
Material Handling
$
13,229
$
9,072
45.8
%
$
62,407
$
56,533
10.4
%
Distribution
5,399
3,580
50.8
%
15,955
12,174
31.1
%
Corporate
(6,160
)
(6,240
)
-
(26,413
)
(22,807
)
-
Total
$
12,468
$
6,412
94.4
%
$
51,949
$
45,900
13.2
%
Adjusted operating income
margin
Material Handling
9.0
%
9.8
%
11.1
%
16.4
%
Distribution
10.3
%
7.9
%
8.1
%
7.3
%
Corporate
n/a
n/a
n/a
n/a
Total
6.2
%
4.7
%
6.8
%
9.0
%
Adjusted EBITDA
Material Handling
$
17,658
$
13,356
32.2
%
$
80,210
$
74,367
7.9
%
Distribution
5,994
4,120
45.5
%
18,163
14,474
25.5
%
Corporate
(6,051
)
(6,141
)
-
(26,002
)
(22,411
)
-
Total
$
17,601
$
11,335
55.3
%
$
72,371
$
66,430
8.9
%
Adjusted EBITDA margin
Material Handling
12.0
%
14.5
%
14.2
%
21.6
%
Distribution
11.5
%
9.1
%
9.2
%
8.7
%
Corporate
n/a
n/a
n/a
n/a
Total
8.8
%
8.2
%
9.5
%
13.0
%
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME
AND EBITDA (UNAUDITED)
(Dollars in thousands)
Quarter Ended December 31,
2021
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
147,284
$
52,308
$
199,592
$
(13
)
$
199,579
Gross profit
51,816
Add: Restructuring expenses and other
adjustments
620
Add: Acquisition and integration costs
317
Adjusted gross profit
52,753
Gross margin as adjusted
26.4
%
Operating income (loss)
12,292
5,399
17,691
(6,941
)
10,750
Add: Acquisition and integration costs
317
—
317
81
398
Add: Restructuring expenses and other
adjustments
620
—
620
—
620
Add: Environmental charges
—
—
—
700
700
Adjusted operating income (loss)(1)
13,229
5,399
18,628
(6,160
)
12,468
Adjusted operating income margin
9.0
%
10.3
%
9.3
%
n/a
6.2
%
Add: Depreciation and amortization
4,429
595
5,024
109
5,133
Adjusted EBITDA
$
17,658
$
5,994
$
23,652
$
(6,051
)
$
17,601
Adjusted EBITDA margin
12.0
%
11.5
%
11.9
%
n/a
8.8
%
(1) Includes gross profit adjustments of
$937 and SG&A adjustments of $781
Quarter Ended December 31,
2020
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
92,184
$
45,291
$
137,475
$
(8
)
$
137,467
Gross profit
39,837
Add: Acquisition and integration costs
552
Adjusted gross profit
40,389
Gross margin as adjusted
29.4
%
Operating income (loss)
8,516
3,580
12,096
(7,240
)
4,856
Add: Acquisition and integration costs
556
—
556
500
1,056
Add: Environmental charges
—
—
—
500
500
Adjusted operating income (loss)(1)
9,072
3,580
12,652
(6,240
)
6,412
Adjusted operating income margin
9.8
%
7.9
%
9.2
%
n/a
4.7
%
Add: Depreciation and amortization
4,284
540
4,824
99
4,923
Adjusted EBITDA
$
13,356
$
4,120
$
17,476
$
(6,141
)
$
11,335
Adjusted EBITDA margin
14.5
%
9.1
%
12.7
%
n/a
8.2
%
(1) Includes gross profit adjustments of
$552 and SG&A adjustments of $1,004
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
GROSS PROFIT, OPERATING INCOME
AND EBITDA (UNAUDITED)
(Dollars in thousands)
Year Ended December 31,
2021
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
564,068
$
197,427
$
761,495
$
(60
)
$
761,435
Gross profit
211,421
Add: Restructuring expenses and other
adjustments
867
Add: Acquisition and integration costs
348
Adjusted gross profit
212,636
Gross margin as adjusted
27.9
%
Operating income (loss)
62,187
15,428
77,615
(28,314
)
49,301
Add: Severance costs
—
527
527
318
845
Add: Acquisition and integration costs
348
—
348
883
1,231
Add: Restructuring expenses and other
adjustments
867
—
867
—
867
Less: Gain on sale of assets
(995
)
—
(995
)
—
(995
)
Add: Environmental charges
—
—
—
700
700
Adjusted operating income (loss)(1)
62,407
15,955
78,362
(26,413
)
51,949
Adjusted operating income margin
11.1
%
8.1
%
10.3
%
n/a
6.8
%
Add: Depreciation and amortization
17,803
2,208
20,011
411
20,422
Adjusted EBITDA
$
80,210
$
18,163
$
98,373
$
(26,002
)
$
72,371
Adjusted EBITDA margin
14.2
%
9.2
%
12.9
%
n/a
9.5
%
(1) Includes gross profit adjustments of
$1,215 and SG&A adjustments of $1,433
Year Ended December 31,
2020
Material Handling
Distribution
Segment Total
Corporate & Other
Total
Net sales
$
343,884
$
166,544
$
510,428
$
(59
)
$
510,369
Gross profit
171,960
Add: Acquisition and integration costs
552
Adjusted gross profit
172,512
Gross margin as adjusted
33.8
%
Operating income (loss)
55,072
12,157
67,229
(13,679
)
53,550
Add: Severance costs
905
—
905
1,512
2,417
Add: Restructuring expenses and other
adjustments
—
—
—
249
249
Add: Acquisition and integration costs
556
17
573
535
1,108
Add: Environmental charges
—
—
—
500
500
Less: Lawn and Garden sale of note/release
of lease guarantee liability
—
—
—
(11,924
)
(11,924
)
Adjusted operating income (loss)(1)
56,533
12,174
68,707
(22,807
)
45,900
Adjusted operating income margin
16.4
%
7.3
%
13.5
%
n/a
9.0
%
Add: Depreciation and amortization
17,834
2,300
20,134
396
20,530
Adjusted EBITDA
$
74,367
$
14,474
$
88,841
$
(22,411
)
$
66,430
Adjusted EBITDA margin
21.6
%
8.7
%
17.4
%
n/a
13.0
%
(1) Includes gross profit adjustments of
$552 and SG&A adjustments of ($8,202)
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
INCOME AND EARNINGS PER
DILUTED SHARE (UNAUDITED)
(Dollars in thousands, except
per share data)
Quarter Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Operating income (loss)
$
10,750
$
4,856
$
49,301
$
53,550
Add: Severance costs
—
—
845
2,417
Add: Restructuring expenses and other
adjustments
620
—
867
249
Add: Acquisition and integration costs
398
1,056
1,231
1,108
Less: Gain on sale of assets
—
—
(995
)
—
Less: Lawn and Garden sale of note/release
of lease guarantee liability
—
—
—
(11,924
)
Add: Environmental charges
700
500
700
500
Adjusted operating income (loss)
12,468
6,412
51,949
45,900
Less: Interest expense, net
(1,158
)
(1,221
)
(4,208
)
(4,688
)
Adjusted income (loss) before taxes
11,310
5,191
47,741
41,212
Less: Income tax expense(1)
(2,941
)
(1,350
)
(12,413
)
(10,715
)
Adjusted net income (loss)
$
8,369
$
3,841
$
35,328
$
30,497
Adjusted earnings per diluted share(2)
$
0.23
$
0.11
$
0.97
$
0.85
(1) Income taxes are calculated using the
normalized effective tax rate for each year. The rate used in 2021
and 2020 is 26%.
(2) Adjusted earnings per diluted share is
calculated using the weighted average common shares outstanding for
the respective period.
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(Dollars in thousands)
December 31, 2021
December 31, 2020
Assets
Current Assets
Cash
$
17,655
$
28,301
Accounts receivable, net
100,691
83,701
Income tax receivable
2,517
1,049
Inventories, net
93,551
65,919
Prepaid expenses and other current
assets
5,500
4,760
Total Current Assets
219,914
183,730
Property, plant, & equipment, net
92,049
73,953
Right of use asset - operating leases
29,285
18,390
Deferred income taxes
106
84
Other assets
143,195
123,858
Total Assets
$
484,549
$
400,015
Liabilities & Shareholders'
Equity
Current Liabilities
Accounts payable
$
81,690
$
61,150
Accrued expenses
44,969
36,744
Operating lease liability - short-term
5,341
4,359
Finance lease liability - short-term
500
—
Long-term debt - current portion
—
39,994
Total Current Liabilities
132,500
142,247
Long-term debt
90,945
37,582
Operating lease liability - long-term
23,815
13,755
Finance lease liability - long-term
9,437
—
Other liabilities
13,086
14,373
Deferred income taxes
5,441
2,958
Total Shareholders' Equity
209,325
189,100
Total Liabilities & Shareholders'
Equity
$
484,549
$
400,015
MYERS INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Year Ended December
31,
2021
2020
Cash Flows From Operating
Activities
Net income
$
33,538
$
36,769
Adjustments to reconcile net income to net
cash provided by (used for) operating activities
Depreciation and amortization
20,885
20,930
Non-cash stock-based compensation
expense
3,196
3,534
(Gain) loss on disposal of fixed
assets
(1,382
)
3
Gain on sale of notes receivable
—
(11,924
)
Deferred taxes
2,826
8,732
Other
(1,403
)
4,225
Cash flows provided by (used for) working
capital
Accounts receivable
(15,273
)
(11,589
)
Inventories
(24,885
)
(7,868
)
Prepaid expenses and other current
assets
(676
)
(969
)
Accounts payable and accrued expenses
28,088
4,664
Net cash provided by (used for) operating
activities
44,914
46,507
Cash Flows From Investing
Activities
Capital expenditures
(17,867
)
(13,421
)
Acquisition of business
(35,758
)
(63,334
)
Proceeds from sale of property, plant, and
equipment
3,336
2
Proceeds from sale of notes receivable
—
1,200
Net cash provided by (used for) investing
activities
(50,289
)
(75,553
)
Cash Flows From Financing
Activities
Net borrowings from revolving credit
facility
53,000
—
Repayments of long-term debt
(40,000
)
—
Payments on finance lease
(402
)
—
Cash dividends paid
(19,596
)
(19,425
)
Proceeds from issuance of common stock
3,793
1,732
Shares withheld for employee taxes on
equity awards
(888
)
(623
)
Deferred financing fees
(1,095
)
—
Net cash provided by (used for) financing
activities
(5,188
)
(18,316
)
Foreign exchange rate effect on cash
(83
)
136
Net (decrease) increase in cash
(10,646
)
(47,226
)
Cash at January 1
28,301
75,527
Cash at December 31
$
17,655
$
28,301
MYERS INDUSTRIES, INC.
RECONCILIATION OF FREE CASH
FLOW TO GAAP NET CASH PROVIDED BY
(USED FOR) OPERATING
ACTIVITIES – CONTINUING OPERATIONS
(UNAUDITED)
(Dollars in thousands)
YTD
YTD
December 31, 2021
December 31, 2020
Net cash provided by (used for) operating
activities
$
44,914
$
46,507
Capital expenditures
(17,867
)
(13,421
)
Free cash flow
$
27,047
$
33,086
YTD
YTD
Quarter
December 31, 2021
September 30, 2021
December 31, 2021
Net cash provided by (used for) operating
activities
$
44,914
-
$
13,544
=
$
31,370
Capital expenditures
(17,867
)
-
(14,264
)
=
(3,603
)
Free cash flow
$
27,047
-
$
(720
)
=
$
27,767
YTD
YTD
Quarter
December 31, 2020
September 30, 2020
December 31, 2020
Net cash provided by (used for) operating
activities
$
46,507
-
$
31,334
=
$
15,173
Capital expenditures
(13,421
)
-
(8,955
)
=
(4,466
)
Free cash flow
$
33,086
-
$
22,379
=
$
10,707
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
ADJUSTED DILUTED EARNINGS PER
SHARE
(UNAUDITED)
Full Year 2022
Guidance
Low
High
GAAP diluted net income per common
share
$
1.18
$
1.38
Add: Net restructuring expenses and other
adjustments
0.02
0.02
Adjusted diluted earnings per share
$
1.20
$
1.40
M-INV
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220310005077/en/
Monica Vinay Vice President, Investor Relations & Treasurer
(330) 761-6212
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