Increased Demand and Focused Execution Drive Continued Strong Sales Growth

Sales Increased 32% on an Organic Basis, 58% Including Elkhart Acquisition

Recent Acquisition of Trilogy Plastics and Updated Corporate Brand Identity Reinforces “One Myers” Strategic Vision

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 second quarter ended June 30, 2021.

Second Quarter 2021 Financial Highlights

  • Net sales increased $69.0 million, or 58.3% to $187.4 million, including $30.9 million, or 26.1% from the Elkhart Plastics acquisition, compared with $118.4 million for the second quarter of 2020
  • Net income per diluted share was $0.30, compared with $0.23 for the second quarter of 2020
  • Adjusted earnings per diluted share was $0.29, compared with $0.23 for the second quarter of 2020
  • Cash flow from operations was $14.7 million and free cash flow was $11.7 million, compared with $6.8 million and $3.7 million, respectively, for the second quarter of 2020

Myers Industries’ President and CEO, Mike McGaugh, said, “The team’s ability to strategically manage the dynamic macro environment over the past few months is indicative of our overall strong operational performance during the first half of 2021. We continued to see increased demand from our core end-markets, which led to higher volumes across our business. Despite strong volume growth, our second quarter results were impacted by continued raw material inflation, which did outpace our price increases. We’ve continued to take incremental pricing actions to offset these unprecedented increases in raw material costs.”

McGaugh added, “Additionally, we continue to make progress in achieving our ‘One Myers’ strategic vision. Earlier this week, we announced the acquisition of Trilogy Plastics which comes after the successful integration of the Elkhart business over the last nine months. We are very excited to welcome the Trilogy team to the Myers family and are eager to move forward together as a leading producer of high-quality molded plastic products. We believe this combination will bring additional opportunities in the rotational molding industry and allow us to continue to raise the standard of commercial excellence and customer service within our industry.”

McGaugh concluded, “We also recently unveiled our updated corporate brand identity. This new visual identity is another important step in our strategic transformation. We look forward to continuing to advance our culture towards our ‘One Myers’ initiative while further driving our values of integrity, optimism, customer focus and can-do spirit throughout our operations.”

Second Quarter 2021 Financial Summary

 

 

Quarter Ended June 30,

 

 

2021

 

2020

 

Inc (Dec)

 

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

Net sales

 

$187.4

 

$118.4

 

58.3%

 

 

 

 

 

 

 

Operating income

 

$15.9

 

$12.3

 

29.5%

Adjusted operating income

 

$15.1

 

$12.3

 

23.2%

Adjusted operating income margin

 

8.1%

 

10.4%

 

-230 bps

 

 

 

 

 

 

 

Net income

 

$11.1

 

$8.4

 

32.3%

Adjusted net income

 

$10.4

 

$8.2

 

27.5%

 

 

 

 

 

 

 

Net income per diluted share

 

$0.30

 

$0.23

 

30.4%

Adjusted earnings per diluted share

 

$0.29

 

$0.23

 

26.1%

Net sales for the second quarter of 2021 were $187.4 million, an increase of $69.0 million, or 58.3%, compared with $118.4 million for the second quarter of 2020, driven by increases in both the Material Handling and Distribution segments. Excluding the $30.9 million net sales impact from the Elkhart acquisition, organic net sales increased 26% due to higher volume/mix, 5% due to favorable price and 1% due to foreign currency exchange.

Gross profit increased $12.4 million, or 29.2% to $55.0 million, primarily due to the increased contribution from volume/mix and the Elkhart Plastics acquisition. Partially offsetting these contributions were higher raw material costs, primarily resin, which were not fully recovered by pricing actions and led to an unfavorable price-to-cost relationship for the quarter. As a result, gross margin was 29.4% compared with 36.0% for the second quarter of 2020. Selling, general and administrative expenses increased $9.8 million, or 32.3% to $40.1 million, reflecting the Elkhart Plastics acquisition, higher salaries and incentive compensation and an increase in legal fees, partially offset by lower amortization expense. SG&A as a percentage of sales declined to 21.4% in the second quarter, compared with 25.6% in the same period last year. Net income per diluted share was $0.30, compared with $0.23 for the second quarter of 2020. Adjusted earnings per diluted share were $0.29, compared with $0.23 for the second quarter of 2020.

Second 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

Q2 2021 Results

$137.2

 

$17.9

 

$17.0

 

12.4%

Increase (decrease) vs prior year

69.7%

 

13.3%

 

7.7%

 

-710 bps

Net sales for the second quarter of 2021 were $137.2 million, an increase of $56.4 million, or 69.7%, compared with $80.9 million for the second quarter of 2020. Excluding the $30.9 million net sales impact from the Elkhart acquisition, organic net sales increased 24% due to higher volume/mix, 6% due to favorable price and 2% due to foreign currency exchange. Sales increased in the vehicle, industrial, food and beverage, and consumer end markets. Operating income increased 13.3% to $17.9 million, compared with $15.8 million in 2020. Adjusted operating income increased to $17.0 million, compared with $15.8 million in 2020. The increase was primarily due to increased volume/mix and the Elkhart Plastics acquisition. Partially offsetting these contributions were higher raw material costs, primarily resin, which were not fully recovered by pricing actions and led to an unfavorable 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 Plastics acquisition, higher salaries and incentive compensation costs, increased travel costs and higher legal fees, partially offset by a decrease in amortization expense. The Material Handling Segment’s adjusted operating income margin was 12.4%, compared with 19.5% for the second quarter of 2020.

Distribution

 

Net Sales

 

Op Income

 

Adj Op Income

 

Adj Op Income Margin

Q2 2021 Results

$50.2

 

$4.2

 

$4.2

 

8.4%

Increase vs prior year

33.6%

 

157.6%

 

157.6%

 

+400 bps

Net sales for the second quarter of 2021 were $50.2 million, an increase of $12.6 million, or 33.6%, compared with $37.5 million for the second quarter of 2020. The increase was driven by higher volume/mix across both equipment and supplies. Operating income increased to $4.2 million, compared with $1.6 million in 2020. The increase in operating income was largely due to contributions from higher volume/mix, partially offset by higher incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 8.4%, compared with 4.4% for the second quarter of 2020.

2021 Outlook

The Company updated its outlook for fiscal 2021, and currently forecasts:

  • Net sales growth in the mid 40% range, with approximately half due to the Elkhart and Trilogy acquisitions
  • Diluted EPS in the range of $0.86 to $1.01; adjusted diluted EPS in the range of $0.90 to $1.05
  • Capital expenditures to approximate $15 to $18 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, August 5, 2021, 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/viewer/13353/myers-industries-2021-second-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. Click on the Investor Relations tab to access the webcast. 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. To access a replay of the event, please use the following link: https://www.incommglobalevents.com/replay/6525/myers-industries-2021-second-quarter-earnings-call/. The access code is 253552.

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, 2020 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

 

 

Six Months Ended

 

 

 

June 30, 2021

 

 

June 30, 2020

 

 

June 30, 2021

 

 

June 30, 2020

 

Net sales

 

$

187,369

 

 

$

118,394

 

 

$

361,798

 

 

$

240,644

 

Cost of sales

 

 

132,375

 

 

 

75,821

 

 

 

256,391

 

 

 

155,588

 

Gross profit

 

 

54,994

 

 

 

42,573

 

 

 

105,407

 

 

 

85,056

 

Selling, general and administrative expenses

 

 

40,121

 

 

 

30,317

 

 

 

79,669

 

 

 

61,433

 

Gain on disposal of fixed assets

 

 

(996

)

 

 

 

 

 

(996

)

 

 

(7

)

Gain on sale of notes receivable

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

Operating income (loss)

 

 

15,869

 

 

 

12,256

 

 

 

26,734

 

 

 

35,554

 

Interest expense, net

 

 

999

 

 

 

1,194

 

 

 

1,994

 

 

 

2,263

 

Income (loss) before income taxes

 

 

14,870

 

 

 

11,062

 

 

 

24,740

 

 

 

33,291

 

Income tax expense (benefit)

 

 

3,795

 

 

 

2,694

 

 

 

6,360

 

 

 

8,197

 

Net income (loss)

 

$

11,075

 

 

$

8,368

 

 

$

18,380

 

 

$

25,094

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

 

$

0.23

 

 

$

0.51

 

 

$

0.70

 

Diluted

 

$

0.30

 

 

$

0.23

 

 

$

0.51

 

 

$

0.70

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,122,792

 

 

 

35,774,241

 

 

 

36,058,061

 

 

 

35,749,110

 

Diluted

 

 

36,336,448

 

 

 

35,920,465

 

 

 

36,296,003

 

 

 

35,899,521

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

% Change

 

 

2021

 

 

2020

 

 

% Change

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

137,227

 

 

$

80,855

 

 

 

69.7

%

 

$

267,120

 

 

$

164,931

 

 

 

62.0

%

Distribution

 

 

50,156

 

 

 

37,541

 

 

 

33.6

%

 

$

94,706

 

 

$

75,736

 

 

 

25.0

%

Inter-company Sales

 

 

(14

)

 

 

(2

)

 

 

-

 

 

$

(28

)

 

$

(23

)

 

 

-

 

Total

 

$

187,369

 

 

$

118,394

 

 

 

58.3

%

 

$

361,798

 

 

$

240,644

 

 

 

50.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

17,902

 

 

$

15,796

 

 

 

13.3

%

 

$

34,829

 

 

$

30,963

 

 

 

12.5

%

Distribution

 

 

4,214

 

 

 

1,636

 

 

 

157.6

%

 

 

5,652

 

 

 

3,486

 

 

 

62.1

%

Corporate

 

 

(6,247

)

 

 

(5,176

)

 

 

-

 

 

 

(13,747

)

 

 

1,105

 

 

 

-

 

Total

 

$

15,869

 

 

$

12,256

 

 

 

29.5

%

 

$

26,734

 

 

$

35,554

 

 

 

(24.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

17,009

 

 

$

15,796

 

 

 

7.7

%

 

$

33,936

 

 

$

30,963

 

 

 

9.6

%

Distribution

 

 

4,214

 

 

 

1,636

 

 

 

157.6

%

 

 

6,179

 

 

 

3,503

 

 

 

76.4

%

Corporate

 

 

(6,123

)

 

 

(5,176

)

 

 

-

 

 

 

(13,162

)

 

 

(10,535

)

 

 

-

 

Total

 

$

15,100

 

 

$

12,256

 

 

 

23.2

%

 

$

26,953

 

 

$

23,931

 

 

 

12.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

12.4

%

 

 

19.5

%

 

 

 

 

 

 

12.7

%

 

 

18.8

%

 

 

 

 

Distribution

 

 

8.4

%

 

 

4.4

%

 

 

 

 

 

 

6.5

%

 

 

4.6

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

8.1

%

 

 

10.4

%

 

 

 

 

 

 

7.4

%

 

 

9.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

21,727

 

 

$

20,926

 

 

 

3.8

%

 

$

43,173

 

 

$

41,123

 

 

 

5.0

%

Distribution

 

 

4,761

 

 

 

2,244

 

 

 

112.2

%

 

 

7,269

 

 

 

4,706

 

 

 

54.5

%

Corporate

 

 

(6,018

)

 

 

(5,077

)

 

 

-

 

 

 

(12,959

)

 

 

(10,336

)

 

 

-

 

Total

 

$

20,470

 

 

$

18,093

 

 

 

13.1

%

 

$

37,483

 

 

$

35,493

 

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

15.8

%

 

 

25.9

%

 

 

 

 

 

 

16.2

%

 

 

24.9

%

 

 

 

 

Distribution

 

 

9.5

%

 

 

6.0

%

 

 

 

 

 

 

7.7

%

 

 

6.2

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

10.9

%

 

 

15.3

%

 

 

 

 

 

 

10.4

%

 

 

14.7

%

 

 

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended June 30, 2021

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

137,227

 

 

$

50,156

 

 

$

187,383

 

 

$

(14

)

 

$

187,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,994

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

55,096

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

17,902

 

 

 

4,214

 

 

 

22,116

 

 

 

(6,247

)

 

 

15,869

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

124

 

 

 

124

 

Add: Restructuring expenses and other adjustments (1)

 

 

102

 

 

 

 

 

 

102

 

 

 

 

 

 

102

 

Less: Gain on sale of assets

 

 

(995

)

 

 

 

 

 

(995

)

 

 

 

 

 

(995

)

Adjusted operating income (loss)

 

 

17,009

 

 

 

4,214

 

 

 

21,223

 

 

 

(6,123

)

 

 

15,100

 

Adjusted operating income margin

 

 

12.4

%

 

 

8.4

%

 

 

11.3

%

 

n/a

 

 

 

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,718

 

 

 

547

 

 

 

5,265

 

 

 

105

 

 

 

5,370

 

Adjusted EBITDA

 

$

21,727

 

 

$

4,761

 

 

$

26,488

 

 

$

(6,018

)

 

$

20,470

 

Adjusted EBITDA margin

 

 

15.8

%

 

 

9.5

%

 

 

14.1

%

 

n/a

 

 

 

10.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gross profit adjustment of $102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30, 2020

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

80,855

 

 

$

37,541

 

 

$

118,396

 

 

$

(2

)

 

$

118,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,573

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

15,796

 

 

 

1,636

 

 

 

17,432

 

 

 

(5,176

)

 

 

12,256

 

Operating income margin

 

 

19.5

%

 

 

4.4

%

 

 

14.7

%

 

n/a

 

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

5,130

 

 

 

608

 

 

 

5,738

 

 

 

99

 

 

 

5,837

 

EBITDA

 

$

20,926

 

 

$

2,244

 

 

$

23,170

 

 

$

(5,077

)

 

$

18,093

 

EBITDA margin

 

 

25.9

%

 

 

6.0

%

 

 

19.6

%

 

n/a

 

 

 

15.3

%

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Six Months Ended June 30, 2021

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

267,120

 

 

$

94,706

 

 

$

361,826

 

 

$

(28

)

 

$

361,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105,407

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105,509

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

34,829

 

 

 

5,652

 

 

 

40,481

 

 

 

(13,747

)

 

 

26,734

 

Add: Severance costs

 

 

 

 

 

527

 

 

 

527

 

 

 

318

 

 

 

845

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

267

 

 

 

267

 

Add: Restructuring expenses and other adjustments (1)

 

 

102

 

 

 

 

 

 

102

 

 

 

 

 

 

102

 

Less: Gain on sale of assets

 

 

(995

)

 

 

 

 

 

(995

)

 

 

 

 

 

(995

)

Adjusted Operating income (loss)

 

 

33,936

 

 

 

6,179

 

 

 

40,115

 

 

 

(13,162

)

 

 

26,953

 

Adjusted operating income margin

 

 

12.7

%

 

 

6.5

%

 

 

11.1

%

 

n/a

 

 

 

7.4

%

Add: Depreciation and amortization

 

 

9,237

 

 

 

1,090

 

 

 

10,327

 

 

 

203

 

 

 

10,530

 

Adjusted EBITDA

 

$

43,173

 

 

$

7,269

 

 

$

50,442

 

 

$

(12,959

)

 

$

37,483

 

Adjusted EBITDA margin

 

 

16.2

%

 

 

7.7

%

 

 

13.9

%

 

n/a

 

 

 

10.4

%

 

 

(1) Includes gross profit adjustment of $102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2020

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

164,931

 

 

$

75,736

 

 

$

240,667

 

 

$

(23

)

 

$

240,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

85,056

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

30,963

 

 

 

3,486

 

 

 

34,449

 

 

 

1,105

 

 

 

35,554

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

249

 

 

 

249

 

Add: Acquisition and integration costs

 

 

 

 

 

17

 

 

 

17

 

 

 

35

 

 

 

52

 

Less: Lawn and Garden sale of note/release of lease guarantee liability

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

 

 

(11,924

)

Adjusted operating income (loss)

 

 

30,963

 

 

 

3,503

 

 

 

34,466

 

 

 

(10,535

)

 

 

23,931

 

Adjusted operating income margin

 

 

18.8

%

 

 

4.6

%

 

 

14.3

%

 

n/a

 

 

 

9.9

%

Add: Depreciation and amortization

 

 

10,160

 

 

 

1,203

 

 

 

11,363

 

 

 

199

 

 

 

11,562

 

Adjusted EBITDA

 

$

41,123

 

 

$

4,706

 

 

$

45,829

 

 

$

(10,336

)

 

$

35,493

 

Adjusted EBITDA margin

 

 

24.9

%

 

 

6.2

%

 

 

19.0

%

 

n/a

 

 

 

14.7

%

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

Operating income (loss)

 

$

15,869

 

 

$

12,256

 

 

$

26,734

 

 

$

35,554

 

 

Add: Severance costs

 

 

 

 

 

 

 

 

845

 

 

 

 

 

Add: Restructuring expenses and other adjustments

 

 

102

 

 

 

 

 

 

102

 

 

 

249

 

 

Add: Acquisition and integration costs

 

 

124

 

 

 

 

 

 

267

 

 

 

52

 

 

Less: Gain on sale of assets

 

 

(995

)

 

 

 

 

 

(995

)

 

 

 

 

Less: Lawn and Garden sale of note/release of lease guarantee liability

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

 

Adjusted operating income (loss)

 

 

15,100

 

 

 

12,256

 

 

 

26,953

 

 

 

23,931

 

 

Less: Interest expense, net

 

 

(999

)

 

 

(1,194

)

 

 

(1,994

)

 

 

(2,263

)

 

Adjusted income (loss) before taxes

 

 

14,101

 

 

 

11,062

 

 

 

24,959

 

 

 

21,668

 

 

Less: Income tax expense(1)

 

 

(3,666

)

 

 

(2,876

)

 

 

(6,489

)

 

 

(5,634

)

 

Adjusted net income (loss)

 

$

10,435

 

 

$

8,186

 

 

$

18,470

 

 

$

16,034

 

 

Adjusted earnings per diluted share

 

$

0.29

 

 

$

0.23

 

 

$

0.51

 

 

$

0.45

 

 

(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)

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

$

13,543

 

 

$

28,301

 

Accounts receivable, net

 

 

98,610

 

 

 

83,701

 

Income tax receivable

 

 

 

 

 

1,049

 

Inventories, net

 

 

79,482

 

 

 

65,919

 

Prepaid expenses and other current assets

 

 

9,576

 

 

 

4,760

 

Total Current Assets

 

 

201,211

 

 

 

183,730

 

Property, plant, & equipment, net

 

 

83,981

 

 

 

73,953

 

Right of use asset - operating leases

 

 

22,834

 

 

 

18,390

 

Deferred income taxes

 

 

84

 

 

 

84

 

Other assets

 

 

122,365

 

 

 

123,858

 

Total Assets

 

$

430,475

 

 

$

400,015

 

Liabilities & Shareholders' Equity

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

81,614

 

 

$

61,150

 

Accrued expenses

 

 

40,210

 

 

 

36,744

 

Operating lease liability - short-term

 

 

4,833

 

 

 

4,359

 

Finance lease liability - short-term

 

 

491

 

 

 

 

Long-term debt - current portion

 

 

 

 

 

39,994

 

Total Current Liabilities

 

 

127,148

 

 

 

142,247

 

Long-term debt

 

 

57,833

 

 

 

37,582

 

Operating lease liability - long-term

 

 

17,778

 

 

 

13,755

 

Finance lease liability - long-term

 

 

9,688

 

 

 

 

Other liabilities

 

 

14,174

 

 

 

14,373

 

Deferred income taxes

 

 

1,873

 

 

 

2,958

 

Total Shareholders' Equity

 

 

201,981

 

 

 

189,100

 

Total Liabilities & Shareholders' Equity

 

$

430,475

 

 

$

400,015

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

Net income

 

$

18,380

 

 

$

25,094

 

Adjustments to reconcile net income to net cash

provided by (used for) operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

8,142

 

 

 

7,243

 

Amortization

 

 

2,610

 

 

 

4,518

 

Non-cash stock-based compensation expense

 

 

1,829

 

 

 

1,346

 

Gain on disposal of fixed assets

 

 

(996

)

 

 

(7

)

Gain on sale of notes receivable

 

 

 

 

 

(11,924

)

Other

 

 

(702

)

 

 

407

 

Other long-term liabilities

 

 

(205

)

 

 

478

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(15,250

)

 

 

(9,672

)

Inventories

 

 

(13,411

)

 

 

(5,453

)

Prepaid expenses and other current assets

 

 

(4,814

)

 

 

(2,926

)

Accounts payable and accrued expenses

 

 

25,718

 

 

 

2,681

 

Net cash provided by (used for) operating activities

 

 

21,301

 

 

 

11,785

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(8,220

)

 

 

(5,589

)

Acquisition of business

 

 

(1,223

)

 

 

(691

)

Proceeds from sale of property, plant and equipment

 

 

2,848

 

 

 

 

Proceeds from sale of notes receivable

 

 

 

 

 

1,200

 

Net cash provided by (used for) investing activities

 

 

(6,595

)

 

 

(5,080

)

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

Net borrowings from revolving credit facility

 

 

19,900

 

 

 

 

Repayments of long-term debt

 

 

(40,000

)

 

 

 

Payments on finance lease

 

 

(161

)

 

 

 

Cash dividends paid

 

 

(9,809

)

 

 

(9,736

)

Proceeds from issuance of common stock

 

 

2,420

 

 

 

235

 

Shares withheld for employee taxes on equity awards

 

 

(748

)

 

 

(362

)

Deferred financing fees

 

 

(1,095

)

 

 

 

Net cash provided by (used for) financing activities

 

 

(29,493

)

 

 

(9,863

)

Foreign exchange rate effect on cash

 

 

29

 

 

 

(47

)

Net decrease in cash

 

 

(14,758

)

 

 

(3,205

)

Cash at January 1

 

 

28,301

 

 

 

75,527

 

Cash at June 30

 

$

13,543

 

 

$

72,322

 

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

 

 

 

 

 

 

 

June 30, 2021

 

 

June 30, 2020

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

21,301

 

 

$

11,785

 

 

 

 

 

Capital expenditures

 

 

(8,220

)

 

 

(5,589

)

 

 

 

 

Free cash flow

 

$

13,081

 

 

$

6,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

June 30, 2021

 

 

March 31, 2021

 

 

June 30, 2021

 

Net cash provided by (used for) operating activities

 

$

21,301

 

-

$

6,588

 

=

$

14,713

 

Capital expenditures

 

 

(8,220

)

-

 

(5,238

)

=

 

(2,982

)

Free cash flow

 

$

13,081

 

-

$

1,350

 

=

$

11,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

June 30, 2020

 

 

March 31, 2020

 

 

June 30, 2020

 

Net cash provided by (used for) operating activities

 

$

11,785

 

-

$

5,027

 

=

$

6,758

 

Capital expenditures

 

 

(5,589

)

-

 

(2,490

)

=

 

(3,099

)

Free cash flow

 

$

6,196

 

-

$

2,537

 

=

$

3,659

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED DILUTED EARNINGS PER SHARE

(UNAUDITED)

 

 

Full Year 2021 Guidance

 

 

Low

 

 

High

 

GAAP diluted net income per common share

$

0.86

 

 

$

1.01

 

Add: Net restructuring expenses and other adjustments

 

0.02

 

 

 

0.02

 

Add: Acquisition and integration costs

 

0.02

 

 

 

0.02

 

Adjusted diluted earnings per share

$

0.90

 

 

$

1.05

 

 

Monica Vinay Vice President, Investor Relations & Treasurer (330) 761-6212

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