MYE
$14.03
Myers Industries
$.34
2.48%
Earnings Details
1st Quarter March 2020
Wednesday, May 6, 2020 6:30:00 AM
Tweet Share Watch
Summary

Myers Industries Beats but Guides Lower

Myers Industries (MYE) reported 1st Quarter March 2020 earnings of $0.22 per share on revenue of $122.3 million. The consensus earnings estimate was $0.19 per share on revenue of $136.7 million. The Earnings Whisper number was $0.16 per share. Revenue fell 12.1% compared to the same quarter a year ago.

The company said it expects 2020 revenue of approximately $464.1 million. The company's previous guidance was revenue of approximately $541.5 million and the current consensus estimate is revenue of $518.3 million for the year ending December 31, 2020.

Myers Industries Inc manufactures a range of polymer products for industrial, agricultural, automotive, commercial and consumer markets. It also manufactures plastic reusable material handling containers and pallets.

Results
Reported Earnings
$0.22
Earnings Whisper
$0.16
Consensus Estimate
$0.19
Reported Revenue
$122.3 Mil
Revenue Estimate
$136.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Myers Industries Reports 2020 First Quarter Results

Gross margin improves despite lower sales;

Company updates 2020 annual revenue outlook and withdraws annual EPS guidance

AKRON, Ohio--(BUSINESS WIRE)--Myers Industries, Inc. (NYSE: MYE), a manufacturer of polymer products and distributor for the tire, wheel and under-vehicle service industry, today announced results for the first quarter ended March 31, 2020.

First Quarter 2020 Financial Highlights

  • GAAP income per diluted share from continuing operations was $0.47, including $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 (sold in 2015), compared with $0.19 for the first quarter of 2019
  • Adjusted income per diluted share from continuing operations was $0.22, compared with $0.23 for the first quarter of 2019
  • Net sales decreased 12.1% to $122.3 million, compared with $139.1 million for the first quarter of 2019
  • Gross margin increased to 34.8%, compared with 32.7% for the first quarter of 2019
  • Cash flow from continuing operations was $5.0 million and free cash flow was $2.5 million, compared with $5.3 million and $2.4 million, respectively, for the first quarter of 2019

“During the first quarter, our teams continued to perform well, delivering gross margin expansion despite a decline in sales due to the softening of several end markets,” said Mike McGaugh, President and Chief Executive Officer of Myers Industries. “As I step into my role as the new CEO of Myers, we will continue to execute our strategic objectives, while maintaining our focus on minimizing the impact of COVID-19. Our primary concern is the safety and well-being of our employees and their families, our communities, our customers, and our suppliers. We have implemented operational protocols at each of our locations providing our sites with detailed guidelines and procedures for responding to the COVID-19 pandemic, consistent with federal, state and local requirements. The Myers teams remain committed to meeting our customers’ needs during this unprecedented time of uncertainty and have quickly adapted to ensure our customers get the essential products they need.”

Mr. McGaugh continued, “As we navigate the current environment, we are well-positioned with a strong balance sheet, including $73.2 million in cash at the end of the quarter, and have sufficient liquidity to support our operations. We have conducted scenario planning and developed contingency plans that we will continue to adjust, as needed, to help mitigate any potential risks and capitalize on opportunities in the months ahead.”

First Quarter 2020 Financial Summary

Net sales for the first quarter of 2020 decreased $16.9 million, or 12.1% to $122.3 million, compared with $139.1 million for the first quarter of 2019. The decrease was the result of sales declines across key markets in the Material Handling Segment. Gross profit decreased to $42.5 million, compared with $45.6 million for the first quarter of 2019. However, gross profit margin increased to 34.8% compared with 32.7% last year as favorable price-cost margin more than offset the lower sales volume during the quarter. Selling, general and administrative expenses decreased $3.4 million to $31.1 million, compared with $34.5 million in the first quarter of 2019, due primarily to lower compensation costs and savings from the transformation initiatives in the Distribution Segment. GAAP income per diluted share from continuing operations was $0.47 (including $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, which was sold in 2015), compared with $0.19 for the first quarter of 2019. Adjusted income per diluted share from continuing operations was $0.22, compared with $0.23 for the first quarter of 2019.

Segment Results

Net sales in the Material Handling Segment (consumer, food and beverage, industrial and vehicle end markets) for the first quarter of 2020 were $84.1 million, a decrease of $18.9 million or 18.3%, compared with $103.0 million for the first quarter of 2019. Sales declines in the Company’s food and beverage, vehicle and industrial end markets were only partially offset by a sales increase in the Company’s consumer end market. For the first quarter of 2020, operating income for this segment declined 6.4% to $15.2 million, compared with $16.2 million in 2019. Adjusted operating income declined 12.3% to $15.2 million, compared with $17.3 million in 2019. The lower volume was partially offset by favorable price-cost margin and lower variable incentive compensation costs. The Material Handling Segment’s adjusted operating income margin was 18.0%, compared with 16.8% for the first quarter of 2019.

Net sales in the Distribution Segment (auto aftermarket end market) for the first quarter of 2020 were $38.2 million, an increase of $2.0 million, or 5.6%, compared with $36.2 million in 2019. Incremental sales from the August 2019 acquisition of Tuffy Manufacturing Industries, Inc. led to the improvement. First quarter operating income for this segment increased to $1.9 million, compared with $0.2 million in 2019. Adjusted operating income increased to $1.9 million, compared with $1.1 million in 2019. The increase in adjusted operating income was due primarily to savings from the segment’s transformation initiatives. The Distribution Segment’s adjusted operating income margin was 4.9%, compared with 3.1% for the first quarter of 2019.

2020 Outlook

“As a result of the uncertainty related to the duration and extent of the potential impacts of COVID-19, and the lack of visibility we have going forward due to how quickly things are changing, we are withdrawing our 2020 earnings per share guidance that we provided during our fourth quarter 2019 earnings call,” said Mr. McGaugh. “That being said, we will continue to provide quarterly updates regarding sales trends and our revised outlook for end markets.”

The Company now expects total revenue to decline approximately 10% year-over-year in 2020, down from its previous guidance of a mid-single-digit percentage increase. The Company also anticipates that sales will be down approximately 20% year-over-year in the second quarter, with approximately 60% of the decline in the second quarter coming from continued sales decreases in the Company’s food and beverage, industrial and vehicle end markets. The remainder of the decline is expected to come from sales decreases in the auto aftermarket end market, where sales dropped off significantly in the last couple weeks of March and continued to decline in the second quarter. The Company is still anticipating that depreciation and amortization will be approximately $21 million, net interest expense will be approximately $4 million, the effective tax rate will be approximately 27%, and capital expenditures will be approximately $15 million.

“In spite of the short-term headwinds due to the COVID-19 pandemic, I remain optimistic about Myers’ longer-term growth prospects. We are a solid, well-operated company with a strong balance sheet. I believe these attributes will be a tailwind for Myers as the economy begins to re-start, and we continue to focus on executing our strategies to deliver profitable revenue growth,” said Mr. McGaugh.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, May 6, 2020, at 8:30 a.m. EDT. The call is anticipated to last approximately one hour and may be accessed by dialing: (US) 833-513-0562 or (Int’l) 236-714-2198. The Conference ID # is 6894555. Callers are asked to sign on at least five minutes in advance. 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 listen to the telephone replay, callers should dial: (US) 800-585-8367 or (Int’l) 416-621-4642. The Conference ID # is 6894555.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted income per diluted share from continuing operations, operating income as adjusted, income from continuing operations as adjusted, EBITDA as adjusted, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS 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, and 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 “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: disease outbreaks such as COVID-19 and the impacts stemming from any such outbreaks including supply chain disruptions, operational disruptions, full or partial facility closures, and other similar impacts, raw material availability, increases in raw material costs, or other production costs; 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; and other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 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

 

 

 

March 31, 2020

 

March 31, 2019

 

Net sales

 

$

122,250

 

 

$

139,115

 

 

Cost of sales

 

 

79,767

 

 

 

93,556

 

 

Gross profit

 

 

42,483

 

 

 

45,559

 

 

Selling, general and administrative expenses

 

 

31,116

 

 

 

34,468

 

 

Gain on disposal of fixed assets

 

 

(7

)

 

 

(43

)

 

Impairment charges

 

 

 

 

 

916

 

 

Gain on sale of notes receivable

 

 

(11,924

)

 

 

 

 

Operating income (loss)

 

 

23,298

 

 

 

10,218

 

 

Interest expense, net

 

 

1,069

 

 

 

1,049

 

 

Income (loss) from continuing operations before income taxes

 

 

22,229

 

 

 

9,169

 

 

Income tax expense (benefit)

 

 

5,503

 

 

 

2,526

 

 

Income (loss) from continuing operations

 

 

16,726

 

 

 

6,643

 

 

Income (loss) from discontinued operations, net of income tax

 

 

 

 

 

127

 

 

Net income (loss)

 

$

16,726

 

 

$

6,770

 

 

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.47

 

 

$

0.19

 

 

Diluted

 

$

0.47

 

 

$

0.19

 

 

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

 

 

Diluted

 

$

 

 

$

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.47

 

 

$

0.19

 

 

Diluted

 

$

0.47

 

 

$

0.19

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

35,723,979

 

 

 

35,388,989

 

 

Diluted

 

 

35,828,428

 

 

 

35,694,830

 

 

 

 

 

 

 

 

 

 

 

 

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended March 31,

 

 

 

 

2020

 

2019

 

% Change

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

84,076

 

 

$

102,951

 

 

 

(18.3

)%

 

Distribution

 

 

38,195

 

 

 

36,174

 

 

 

5.6

%

 

Inter-company Sales

 

 

(21

)

 

 

(10

)

 

 

-

 

 

Total

 

$

122,250

 

 

$

139,115

 

 

 

(12.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

15,167

 

 

$

16,207

 

 

 

(6.4

)%

 

Distribution

 

 

1,850

 

 

 

213

 

 

 

768.5

%

 

Corporate

 

 

6,281

 

 

 

(6,202

)

 

 

-

 

 

Total

 

$

23,298

 

 

$

10,218

 

 

 

128.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

15,167

 

 

$

17,295

 

 

 

(12.3

)%

 

Distribution

 

 

1,867

 

 

 

1,114

 

 

 

67.6

%

 

Corporate

 

 

(5,359

)

 

 

(6,202

)

 

 

-

 

 

Total

 

$

11,675

 

 

$

12,207

 

 

 

(4.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

18.0

%

 

 

16.8

%

 

 

 

 

 

Distribution

 

 

4.9

%

 

 

3.1

%

 

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

Total

 

 

9.6

%

 

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

20,197

 

 

$

22,821

 

 

 

(11.5

)%

 

Distribution

 

 

2,463

 

 

 

1,376

 

 

 

79.0

%

 

Corporate

 

 

(5,260

)

 

 

(6,092

)

 

 

-

 

 

Total

 

$

17,400

 

 

$

18,105

 

 

 

(3.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

24.0

%

 

 

22.2

%

 

 

 

 

 

Distribution

 

 

6.4

%

 

 

3.8

%

 

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

Total

 

 

14.2

%

 

 

13.0

%

 

 

 

 

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended March 31, 2020

 

 

Material

Handling

 

Distribution

 

Segment

Total

 

Corporate

& Other

 

Total

GAAP Net sales

 

$

84,076

 

 

$

38,195

 

 

$

122,271

 

 

$

(21

)

 

$

122,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

42,483

 

 

 

 

 

 

42,483

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

42,483

 

 

 

 

 

 

42,483

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

34.7

%

 

n/a

 

 

 

34.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

15,167

 

 

 

1,850

 

 

 

17,017

 

 

 

6,281

 

 

 

23,298

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

249

 

 

 

249

 

Add: Tuffy acquisition costs

 

 

 

 

 

17

 

 

 

17

 

 

 

35

 

 

 

52

 

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

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

 

 

(11,924

)

Operating income (loss) as adjusted

 

 

15,167

 

 

 

1,867

 

 

 

17,034

 

 

 

(5,359

)

 

 

11,675

 

Operating income margin as adjusted

 

 

18.0

%

 

 

4.9

%

 

 

13.9

%

 

n/a

 

 

 

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

5,030

 

 

 

596

 

 

 

5,626

 

 

 

99

 

 

 

5,725

 

EBITDA as adjusted

 

$

20,197

 

 

$

2,463

 

 

$

22,660

 

 

$

(5,260

)

 

$

17,400

 

EBITDA margin as adjusted

 

 

24.0

%

 

 

6.4

%

 

 

18.5

%

 

n/a

 

 

 

14.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31, 2019

 

 

Material

Handling

 

Distribution

 

Segment

Total

 

Corporate

& Other

 

Total

GAAP Net sales

 

$

102,951

 

 

$

36,174

 

 

$

139,125

 

 

$

(10

)

 

$

139,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

 

45,559

 

 

 

 

 

 

45,559

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

172

 

 

 

 

 

 

172

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

 

45,731

 

 

 

 

 

 

45,731

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

 

32.9

%

 

n/a

 

 

 

32.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

 

16,207

 

 

 

213

 

 

 

16,420

 

 

 

(6,202

)

 

 

10,218

 

Add: Restructuring expenses and other adjustments(1)

 

 

172

 

 

 

901

 

 

 

1,073

 

 

 

 

 

 

1,073

 

Add: Asset impairment

 

 

916

 

 

 

 

 

 

916

 

 

 

 

 

 

916

 

Operating income (loss) as adjusted

 

 

17,295

 

 

 

1,114

 

 

 

18,409

 

 

 

(6,202

)

 

 

12,207

 

Operating income margin as adjusted

 

 

16.8

%

 

 

3.1

%

 

 

13.2

%

 

n/a

 

 

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

5,570

 

 

 

262

 

 

 

5,832

 

 

 

110

 

 

 

5,942

 

Less: Depreciation adjustments

 

 

(44

)

 

 

 

 

 

(44

)

 

 

 

 

 

(44

)

EBITDA as adjusted

 

$

22,821

 

 

$

1,376

 

 

$

24,197

 

 

$

(6,092

)

 

$

18,105

 

EBITDA margin as adjusted

 

 

22.2

%

 

 

3.8

%

 

 

17.4

%

 

n/a

 

 

 

13.0

%

(1) Includes gross profit adjustments of $172 and SG&A adjustments of $901

 

 

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 March 31,

 

 

 

2020

 

2019

 

GAAP Operating income (loss)

 

$

23,298

 

 

$

10,218

 

 

Add: Restructuring expenses and other adjustments

 

 

249

 

 

 

1,073

 

 

Add: Tuffy acquisition costs

 

 

52

 

 

 

 

 

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

 

 

(11,924

)

 

 

 

 

Add: Asset impairment

 

 

 

 

 

916

 

 

Operating income as adjusted

 

 

11,675

 

 

 

12,207

 

 

Less: Interest expense, net

 

 

(1,069

)

 

 

(1,049

)

 

Income before taxes as adjusted

 

 

10,606

 

 

 

11,158

 

 

Less: Income tax expense(1)

 

 

(2,864

)

 

 

(3,013

)

 

Income from continuing operations as adjusted

 

$

7,742

 

 

$

8,145

 

 

Adjusted earnings per diluted share from continuing operations

 

$

0.22

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2020 and 2019 is 27%.

 

 

 

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

March 31, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

$

73,214

 

 

$

75,527

 

Accounts receivable, net

 

 

65,255

 

 

 

62,279

 

Income tax receivable

 

 

 

 

 

142

 

Inventories, net

 

 

49,127

 

 

 

44,260

 

Prepaid expenses and other current assets

 

 

3,036

 

 

 

2,834

 

Total Current Assets

 

 

190,632

 

 

 

185,042

 

Property, plant, & equipment, net

 

 

54,038

 

 

 

54,964

 

Right of use asset - operating leases

 

 

5,355

 

 

 

5,901

 

Deferred income taxes

 

 

716

 

 

 

5,807

 

Other assets

 

 

98,126

 

 

 

101,425

 

Total Assets

 

$

348,867

 

 

$

353,139

 

Liabilities & Shareholders' Equity

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

49,456

 

 

$

46,867

 

Accrued expenses

 

 

28,559

 

 

 

33,701

 

Operating lease liability - short-term

 

 

1,803

 

 

 

2,057

 

Long-term debt - current portion

 

 

39,937

 

 

 

 

Total Current Liabilities

 

 

119,755

 

 

 

82,625

 

Long-term debt

 

 

37,338

 

 

 

77,176

 

Operating lease liability - long-term

 

 

3,778

 

 

 

4,074

 

Other liabilities

 

 

11,773

 

 

 

22,582

 

Total Shareholders' Equity

 

 

176,223

 

 

 

166,682

 

Total Liabilities & Shareholders' Equity

 

$

348,867

 

 

$

353,139

 

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended March 31,

 

 

2020

 

2019

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

16,726

 

 

$

6,770

 

Income (loss) from discontinued operations, net of income taxes

 

 

 

 

 

127

 

Income (loss) from continuing operations

 

 

16,726

 

 

 

6,643

 

Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

3,553

 

 

 

4,012

 

Amortization

 

 

2,271

 

 

 

2,026

 

Non-cash stock-based compensation expense

 

 

653

 

 

 

958

 

Gain on disposal of fixed assets

 

 

(7

)

 

 

(43

)

Gain on sale of notes receivable

 

 

(11,924

)

 

 

 

Impairment charges

 

 

 

 

 

916

 

Other

 

 

241

 

 

 

100

 

Payments on long-term performance based compensation

 

 

 

 

 

(413

)

Other long-term liabilities

 

 

(104

)

 

 

379

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(3,524

)

 

 

1,200

 

Inventories

 

 

(5,209

)

 

 

1,207

 

Prepaid expenses and other current assets

 

 

(218

)

 

 

733

 

Accounts payable and accrued expenses

 

 

2,569

 

 

 

(12,417

)

Net cash provided by (used for) operating activities - continuing operations

 

 

5,027

 

 

 

5,301

 

Net cash provided by (used for) operating activities - discontinued operations

 

 

 

 

 

7,297

 

Net cash provided by (used for) operating activities

 

 

5,027

 

 

 

12,598

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(2,490

)

 

 

(2,933

)

Acquisition of business

 

 

(691

)

 

 

 

Proceeds from sale of property, plant and equipment

 

 

 

 

 

4,486

 

Proceeds from sale of notes receivable

 

 

1,200

 

 

 

 

Net cash provided by (used for) investing activities - continuing operations

 

 

(1,981

)

 

 

1,553

 

Net cash provided by (used for) investing activities - discontinued operations

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

 

(1,981

)

 

 

1,553

 

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

Cash dividends paid

 

 

(4,899

)

 

 

(4,940

)

Proceeds from issuance of common stock

 

 

125

 

 

 

146

 

Shares withheld for employee taxes on equity awards

 

 

(362

)

 

 

(974

)

Net cash provided by (used for) financing activities - continuing operations

 

 

(5,136

)

 

 

(5,768

)

Net cash provided by (used for) financing activities - discontinued operations

 

 

 

 

 

 

Net cash provided by (used for) financing activities

 

 

(5,136

)

 

 

(5,768

)

Foreign exchange rate effect on cash

 

 

(223

)

 

 

39

 

Net (decrease) increase in cash

 

 

(2,313

)

 

 

8,422

 

Cash at January 1

 

 

75,527

 

 

 

58,894

 

Cash at March 31

 

$

73,214

 

 

$

67,316

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

 

 

 

QTD

 

QTD

 

 

 

 

March 31, 2020

 

March 31, 2019

 

 

Net cash provided by (used for) operating activities - continuing operations

 

$

5,027

 

 

$

5,301

 

 

 

Capital expenditures

 

 

(2,490

)

 

 

(2,933

)

 

 

Free cash flow

 

$

2,537

 

 

$

2,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Source: Myers Industries, Inc.