MYE
$18.03
Myers Industries
$.25
1.41%
Earnings Details
2nd Quarter June 2019
Tuesday, July 30, 2019 6:30:00 AM
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Summary

Myers Industries Reaffirms

Myers Industries (MYE) reported 2nd Quarter June 2019 earnings of $0.27 per share on revenue of $134.3 million. The consensus earnings estimate was $0.25 per share on revenue of $138.5 million. Revenue fell 4.5% compared to the same quarter a year ago.

The company said it continues to expect 2019 earnings of $0.75 to $0.85 per share. The current consensus earnings estimate is $0.81 per share for the year ending December 31, 2019.

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
$0.27
Earnings Whisper
-
Consensus Estimate
$0.25
Reported Revenue
$134.3 Mil
Revenue Estimate
$138.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Myers Industries Reports 2019 Second Quarter Results

Updates Full-Year Outlook

AKRON, Ohio--(BUSINESS WIRE)--Myers Industries, Inc. (NYSE: MYE), a manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets, today announced results for the second quarter ended June 30, 2019.

Second Quarter 2019 Business Highlights

  • GAAP income per diluted share from continuing operations was $0.18, compared to $0.26 for the second quarter of 2018; adjusted income per diluted share from continuing operations was $0.27, or flat compared to the second quarter of 2018
  • Net sales decreased 4.5% compared to the second quarter of 2018
  • Gross profit margin expanded 90 bps to 35.0%
  • Operating income decreased 22.3%; adjusted operating income increased 6.0%
  • Generated cash flow from continuing operations of $10.9 million and free cash flow of $9.4 million

Updated Full-Year Outlook

  • Full-year 2019 net sales are now expected to be down low-to-mid-single digits due primarily to weakness in consumer end market demand
  • GAAP income per diluted share from continuing operations is now expected to be in the range of $0.62 to $0.72 for 2019, primarily as a result of a $4 million charge in the second quarter of 2019 for estimated environmental liabilities
  • Outlook for adjusted income per diluted share from continuing operations remains in the range of $0.75 to $0.85 for 2019

“Second-quarter adjusted earnings were in line with our expectations, despite softer than anticipated demand in our consumer end market. Net sales were down 4.5% due primarily to continued weakness in the Recreational Vehicle (RV) market and softer than anticipated spring seasonal demand in our consumer end market. We expanded our gross margin to 35.0% and increased adjusted operating income by 6% as volume declines were more than offset by cost discipline, selective price increases and execution of our Distribution Segment transformation,” said Dave Banyard, President and Chief Executive Officer of Myers Industries.

Mr. Banyard continued, “Within our Distribution Segment, we continued to make progress on the transformation. We grew sales for the third consecutive quarter and increased adjusted EBITDA by 16%. With this quarter’s performance, we are on track to meet our Distribution Segment EBITDA margin goal of 10% by the end of 2020.”

 

Quarter Ended June 30,

 

Six Months Ended June 30,

(Dollars in thousands, except per share data)

2019

2018

% Inc
(Dec)

 

2019

2018

% Inc
(Dec)

Net sales

$

134,285

 

$

140,560

 

(4.5

)%

$

273,400

 

$

293,128

 

(6.7

)%

Gross profit

$

46,936

 

$

47,991

 

(2.2

)%

$

92,495

 

$

95,106

 

(2.7

)%

Gross profit margin

 

35.0

%

 

34.1

%

 

 

 

33.8

%

 

32.4

%

 

 

Operating income

$

10,182

 

$

13,111

 

(22.3

)%

$

20,400

 

$

25,133

 

(18.8

)%

Income from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

$

6,606

 

$

8,608

 

(23.3

)%

$

13,249

 

$

16,363

 

(19.0

)%

Income per diluted share

$

0.18

 

$

0.26

 

(30.8

)%

$

0.37

 

$

0.51

 

(27.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as adjusted(1)

$

14,182

 

$

13,381

 

6.0

%

$

26,389

 

$

24,880

 

6.1

%

Income from continuing operations as adjusted(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

$

9,610

 

$

9,051

 

6.2

%

$

17,756

 

$

16,446

 

8.0

%

Income per diluted share

$

0.27

 

$

0.27

 

0.0

%

$

0.50

 

$

0.51

 

(2.0

)%

EBITDA as adjusted

$

20,145

 

$

19,931

 

1.1

%

$

38,249

 

$

37,978

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Detail regarding the adjustments is provided on the Reconciliations of Non-GAAP Financial Measures included in this release.

Second quarter 2019 net sales decreased $6.3 million or 4.5% (4.2% excluding currency fluctuation) to $134.3 million, compared to the second quarter of 2018. The decrease was the result of a sales decline in the Material Handling Segment. Gross profit decreased $1.1 million to $46.9 million, compared to the second quarter of 2018. Gross profit margin increased 90 basis points to 35.0%. Favorable price-cost margin offset lower sales volume and an unfavorable sales mix during the quarter. Selling, general and administrative expenses increased $2.3 million to $36.8 million, compared to the second quarter of 2018, due mostly to a $4 million charge for estimated environmental liabilities related to the New Idria Mercury Mine, which was partially offset by lower variable compensation and benefit costs and savings from the Distribution Segment’s transformation initiatives. GAAP income per diluted share from continuing operations was $0.18, compared to $0.26 for the second quarter of 2018. Adjusted income per diluted share from continuing operations was $0.27, which was flat compared to the second quarter of 2018.

Segment Results

Net sales in the Material Handling Segment for the second quarter of 2019 decreased $7.2 million or 7.0% (6.7% excluding currency fluctuation) compared to the second quarter of 2018. The decrease in net sales was primarily due to sales decreases in the Company’s vehicle (RV market decline) and consumer (lower fuel can sales) end markets. The segment’s adjusted EBITDA declined 1.0% to $23.2 million for the 2019 second quarter, compared to $23.4 million in 2018. Favorable price-cost margin mostly offset the impact of the lower sales volume and unfavorable sales mix. Material Handling EBITDA margin increased 150 basis points to 24.2%.

Net sales in the Distribution Segment for the second quarter of 2019 increased $0.9 million or 2.4% compared to the second quarter of 2018. The segment’s adjusted EBITDA increased 16.3% to $3.6 million compared to the second quarter of 2018, due primarily to savings from the segment’s transformation plan and higher sales volume. The Company continues to execute its transformation plan, which includes enhancements in its go-to-market strategy, the implementation of 80/20 to drive improved contribution margins, and optimization of its logistics and overhead costs, with a goal to expand Distribution Segment EBITDA margin to 10% by the end of 2020. Distribution EBITDA margin increased 120 basis points to 9.4%.

2019 Outlook

For the full-year 2019, the Company now anticipates that total revenue year-over-year will be down low-to-mid-single digits on a constant currency basis versus its previous expectation of flat year-over-year revenue. While the Company anticipates full-year sales growth in its auto aftermarket and industrial end markets, it expects that growth to be more than offset by lower year-over-year demand in its food and beverage, consumer and vehicle end markets.

“The important spring selling season for outdoor power equipment was unusually weak due to the historic wet weather conditions experienced across much of the country. This sluggish start to the year took a toll on our consumer end market demand, which we anticipate will continue to be weak in the third quarter and will not recover by year-end. While we expect to offset some of the decline with our new product launch, this incremental revenue will not be enough to overcome the market decline, so we are adjusting our full-year sales outlook,” said Mr. Banyard.

Mr. Banyard continued, “At this point, we are cautious about the state of demand for the rest of the year. Seasonally, the fourth quarter is less affected by our consumer end market; however, demand in our food and beverage end market remains uncertain due to the late planting season in the U.S. farming sector. Despite these top-line challenges, our focus on improving operating margins by optimizing pricing, executing on various cost and productivity initiatives and delivering on our Distribution Segment transformation plan is expected to lead to growth in our adjusted operating margins in 2019.”

The Company expects depreciation and amortization to be approximately $25 million, net interest expense to be approximately $5 million, and the effective tax rate to be approximately 27%. GAAP income per diluted share from continuing operations is now estimated to be in the range of $0.62 to $0.72, which is updated from its previous estimates in the range of $0.70 to $0.80, primarily as a result of a $4 million charge in the second quarter for estimated environmental liabilities. The Company continues to expect adjusted income per diluted share from continuing operations to be in the range of $0.75 to $0.85, based on a fully diluted share count of 36 million shares. Capital expenditures are anticipated to be approximately $10 million.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Tuesday, July 30, at 8:30 a.m. ET. The call is anticipated to last approximately one hour and may be accessed by dialing: (US) 833-233-3452 or (Int’l) 647-689-4129. The Conference ID # is 9864717. 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 9864717.

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 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 an international 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 “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: 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 risks as detailed in the Company's 10-K and other reports filed with the Securities and Exchange Commission. 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, 2019

 

June 30, 2018

 

 

June 30, 2019

 

June 30, 2018

Net sales

 

$

134,285

 

 

$

140,560

 

 

$

273,400

 

 

$

293,128

 

Cost of sales

 

 

87,349

 

 

 

92,569

 

 

 

180,905

 

 

 

198,022

 

Gross profit

 

 

46,936

 

 

 

47,991

 

 

 

92,495

 

 

 

95,106

 

Selling, general and administrative expenses

 

 

36,809

 

 

 

34,506

 

 

 

71,277

 

 

 

69,979

 

(Gain) loss on disposal of fixed assets

 

 

(55

)

 

 

66

 

 

 

(98

)

 

 

(314

)

Impairment charges

 

 

 

 

 

308

 

 

 

916

 

 

 

308

 

Operating income

 

 

10,182

 

 

 

13,111

 

 

 

20,400

 

 

 

25,133

 

Interest expense, net

 

 

1,017

 

 

 

1,313

 

 

 

2,066

 

 

 

2,952

 

Income from continuing operations before income taxes

 

 

9,165

 

 

 

11,798

 

 

 

18,334

 

 

 

22,181

 

Income tax expense

 

 

2,559

 

 

 

3,190

 

 

 

5,085

 

 

 

5,818

 

Income from continuing operations

 

 

6,606

 

 

 

8,608

 

 

 

13,249

 

 

 

16,363

 

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

 

 

 

 

 

 

 

 

127

 

 

 

(911

)

Net income

 

$

6,606

 

 

$

8,608

 

 

$

13,376

 

 

$

15,452

 

Income per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

 

$

0.26

 

 

$

0.37

 

 

$

0.52

 

Diluted

 

$

0.18

 

 

$

0.26

 

 

$

0.37

 

 

$

0.51

 

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

 

 

$

 

 

$

(0.03

)

Diluted

 

$

 

 

$

 

 

$

 

 

$

(0.03

)

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

 

$

0.26

 

 

$

0.37

 

 

$

0.49

 

Diluted

 

$

0.18

 

 

$

0.26

 

 

$

0.37

 

 

$

0.48

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,471,795

 

 

 

32,606,838

 

 

 

35,430,392

 

 

 

31,561,194

 

Diluted

 

 

35,743,563

 

 

 

33,084,540

 

 

 

35,753,054

 

 

 

32,081,350

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

Quarter Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

95,902

 

 

$

103,130

 

 

 

(7.0

)%

 

$

198,853

 

 

$

219,939

 

 

 

(9.6

)%

Distribution

 

 

38,395

 

 

 

37,477

 

 

 

2.4

%

 

 

74,569

 

 

 

73,258

 

 

 

1.8

%

Inter-company Sales

 

 

(12

)

 

 

(47

)

 

 

-

 

 

 

(22

)

 

 

(69

)

 

 

-

 

Total

 

$

134,285

 

 

$

140,560

 

 

 

(4.5

)%

 

$

273,400

 

 

$

293,128

 

 

 

(6.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

17,589

 

 

$

17,323

 

 

 

1.5

%

 

$

33,796

 

 

$

34,053

 

 

 

(0.8

)%

Distribution

 

 

3,328

 

 

 

2,786

 

 

 

19.5

%

 

 

3,541

 

 

 

4,524

 

 

 

(21.7

)%

Corporate

 

 

(10,735

)

 

 

(6,998

)

 

 

-

 

 

 

(16,937

)

 

 

(13,444

)

 

 

-

 

Total

 

$

10,182

 

 

$

13,111

 

 

 

(22.3

)%

 

$

20,400

 

 

$

25,133

 

 

 

(18.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

17,589

 

 

$

17,285

 

 

 

1.8

%

 

$

34,884

 

 

$

34,157

 

 

 

2.1

%

Distribution

 

 

3,328

 

 

 

2,786

 

 

 

19.5

%

 

 

4,442

 

 

 

3,859

 

 

 

15.1

%

Corporate

 

 

(6,735

)

 

 

(6,690

)

 

 

-

 

 

 

(12,937

)

 

 

(13,136

)

 

 

-

 

Total

 

$

14,182

 

 

$

13,381

 

 

 

6.0

%

 

$

26,389

 

 

$

24,880

 

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

18.3

%

 

 

16.8

%

 

 

 

 

 

 

17.5

%

 

 

15.5

%

 

 

 

 

Distribution

 

 

8.7

%

 

 

7.4

%

 

 

 

 

 

 

6.0

%

 

 

5.3

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

10.6

%

 

 

9.5

%

 

 

 

 

 

 

9.7

%

 

 

8.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

23,177

 

 

$

23,407

 

 

 

(1.0

)%

 

$

45,997

 

 

$

46,391

 

 

 

(0.8

)%

Distribution

 

 

3,591

 

 

 

3,087

 

 

 

16.3

%

 

 

4,967

 

 

 

4,469

 

 

 

11.1

%

Corporate

 

 

(6,623

)

 

 

(6,563

)

 

 

-

 

 

 

(12,715

)

 

 

(12,882

)

 

 

-

 

Total

 

$

20,145

 

 

$

19,931

 

 

 

1.1

%

 

$

38,249

 

 

$

37,978

 

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

24.2

%

 

 

22.7

%

 

 

 

 

 

 

23.1

%

 

 

21.1

%

 

 

 

 

Distribution

 

 

9.4

%

 

 

8.2

%

 

 

 

 

 

 

6.7

%

 

 

6.1

%

 

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

 

Total

 

 

15.0

%

 

 

14.2

%

 

 

 

 

 

 

14.0

%

 

 

13.0

%

 

 

 

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

June 30, 2019

 

December 31, 2018

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

75,205

 

$

58,894

Accounts receivable, net

 

 

73,120

 

 

72,939

Income tax receivable

 

 

 

 

4,892

Inventories

 

 

42,341

 

 

43,596

Prepaid expenses and other current assets

 

 

4,600

 

 

2,534

Total Current Assets

 

 

195,266

 

 

182,855

Property, plant, & equipment, net

 

 

57,216

 

 

65,460

Right of use asset - operating leases

 

 

5,983

 

 

Deferred income taxes

 

 

6,490

 

 

5,270

Other assets

 

 

88,041

 

 

95,060

Total Assets

 

$

352,996

 

$

348,645

Liabilities & Shareholders' Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

52,827

 

$

60,849

Accrued expenses

 

 

31,738

 

 

36,574

Operating lease liability - short-term

 

 

2,000

 

 

Total Current Liabilities

 

 

86,565

 

 

97,423

Long-term debt

 

 

76,983

 

 

76,790

Operating lease liability - long-term

 

 

4,225

 

 

Other liabilities

 

 

22,813

 

 

19,794

Total Shareholders' Equity

 

 

162,410

 

 

154,638

Total Liabilities & Shareholders' Equity

 

$

352,996

 

$

348,645

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

Six Months Ended June 30,

 

 

2019

 

2018

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

Net income

 

$

13,376

 

 

$

15,452

 

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

 

 

127

 

 

 

(911

)

Income from continuing operations

 

 

13,249

 

 

 

16,363

 

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

 

 

 

 

 

 

 

 

Depreciation

 

 

8,051

 

 

 

9,042

 

Amortization

 

 

4,046

 

 

 

4,315

 

Accelerated depreciation associated with restructuring activities

 

 

 

 

 

16

 

Non-cash stock-based compensation expense

 

 

2,220

 

 

 

2,305

 

(Gain) loss on disposal of fixed assets

 

 

(98

)

 

 

(314

)

Impairment charges

 

 

916

 

 

 

308

 

Other

 

 

340

 

 

 

(215

)

Payments on performance based compensation

 

 

(413

)

 

 

(1,249

)

Other long-term liabilities

 

 

3,514

 

 

 

(63

)

Cash flows provided by (used for) working capital

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(56

)

 

 

9,106

 

Inventories

 

 

1,450

 

 

 

(2,454

)

Prepaid expenses and other current assets

 

 

(2,041

)

 

 

(1,807

)

Accounts payable and accrued expenses

 

 

(15,005

)

 

 

(8,130

)

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

 

 

16,173

 

 

 

27,223

 

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

 

 

7,297

 

 

 

981

 

Net cash provided by (used for) operating activities

 

 

23,470

 

 

 

28,204

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(4,406

)

 

 

(2,318

)

Proceeds from sale of property, plant and equipment

 

 

7,514

 

 

 

2,633

 

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

 

 

3,108

 

 

 

315

 

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

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

 

3,108

 

 

 

315

 

Cash Flows From Financing Activities

 

 

 

 

 

 

 

 

Net borrowing (repayments) on credit facility

 

 

 

 

 

(72,491

)

Cash dividends paid

 

 

(9,733

)

 

 

(8,287

)

Proceeds from issuance of common stock

 

 

365

 

 

 

875

 

Proceeds from public offering of common stock, net of equity issuance costs

 

 

 

 

 

79,522

 

Shares withheld for employee taxes on equity awards

 

 

(978

)

 

 

(371

)

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

 

 

(10,346

)

 

 

(752

)

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

 

 

 

 

 

 

Net cash provided by (used for) financing activities

 

 

(10,346

)

 

 

(752

)

Foreign exchange rate effect on cash

 

 

79

 

 

 

(6

)

Net increase in cash and restricted cash

 

 

16,311

 

 

 

27,761

 

Cash and restricted cash at January 1

 

 

58,894

 

 

 

11,179

 

Cash and restricted cash at June 30

 

$

75,205

 

 

$

38,940

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

Quarter Ended June 30, 2019

 

Material
Handling

Distribution

Segment
Total

Corporate
& Other

Total

GAAP Net sales

$

95,902

 

$

38,395

 

$

134,297

 

$

(12

)

$

134,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

46,936

 

 

 

 

46,936

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as adjusted

 

 

 

 

 

 

 

46,936

 

 

 

 

46,936

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

34.9

%

n/a

 

 

35.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

17,589

 

 

3,328

 

 

20,917

 

 

(10,735

)

 

10,182

 

Add: Environmental charges

 

 

 

 

 

 

 

4,000

 

 

4,000

 

Operating income (loss) as adjusted

 

17,589

 

 

3,328

 

 

20,917

 

 

(6,735

)

 

14,182

 

Operating income margin as adjusted

 

18.3

%

 

8.7

%

 

15.6

%

n/a

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

5,588

 

 

263

 

 

5,851

 

 

112

 

 

5,963

 

Less: Depreciation adjustments

 

 

 

 

 

 

 

 

 

 

EBITDA as adjusted

$

23,177

 

$

3,591

 

$

26,768

 

$

(6,623

)

$

20,145

 

EBITDA margin as adjusted

 

24.2

%

 

9.4

%

 

19.9

%

n/a

 

 

15.0

%

 

 

 

 

Quarter Ended June 30, 2018

 

Material
Handling

Distribution

Segment
Total

Corporate
& Other

Total

GAAP Net sales

$

103,130

 

$

37,477

 

$

140,607

 

$

(47

)

$

140,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

47,991

 

 

 

 

47,991

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

170

 

 

 

 

170

 

Gross profit as adjusted

 

 

 

 

 

 

 

48,161

 

 

 

 

48,161

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

34.3

%

n/a

 

 

34.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

17,323

 

 

2,786

 

 

20,109

 

 

(6,998

)

 

13,111

 

Add: Restructuring expenses and other adjustments(1)

 

170

 

 

 

 

170

 

 

 

 

170

 

Add: Asset impairment

 

 

 

 

 

 

 

308

 

 

308

 

Add: Loss (gain) on sale of assets

 

(208

)

 

 

 

(208

)

 

 

 

(208

)

Operating income (loss) as adjusted

 

17,285

 

 

2,786

 

 

20,071

 

 

(6,690

)

 

13,381

 

Operating income margin as adjusted

 

16.8

%

 

7.4

%

 

14.3

%

n/a

 

 

9.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

6,188

 

 

301

 

 

6,489

 

 

127

 

 

6,616

 

Less: Depreciation adjustments

 

(66

)

 

 

 

(66

)

 

 

 

(66

)

EBITDA as adjusted

$

23,407

 

$

3,087

 

$

26,494

 

$

(6,563

)

$

19,931

 

EBITDA margin as adjusted

 

22.7

%

 

8.2

%

 

18.8

%

n/a

 

 

14.2

%

(1) Includes gross profit adjustments of $170

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

Six Months Ended June 30, 2019

 

Material
Handling

 

Distribution

 

Segment
Total

 

Corporate
& Other

 

Total

GAAP Net sales

$

198,853

 

 

$

74,569

 

 

$

273,422

 

 

$

(22

)

 

$

273,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

92,495

 

 

 

 

 

 

92,495

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

172

 

 

 

 

 

 

172

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

92,667

 

 

 

 

 

 

92,667

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

33.9

%

 

n/a

 

 

 

33.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

33,796

 

 

 

3,541

 

 

 

37,337

 

 

 

(16,937

)

 

 

20,400

 

Add: Restructuring expenses and other adjustments(1)

 

172

 

 

 

901

 

 

 

1,073

 

 

 

 

 

 

1,073

 

Add: Asset impairment

 

916

 

 

 

 

 

 

916

 

 

 

 

 

 

916

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

4,000

 

 

 

4,000

 

Operating income (loss) as adjusted

 

34,884

 

 

 

4,442

 

 

 

39,326

 

 

 

(12,937

)

 

 

26,389

 

Operating income margin as adjusted

 

17.5

%

 

 

6.0

%

 

 

14.4

%

 

n/a

 

 

 

9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

11,157

 

 

 

525

 

 

 

11,682

 

 

 

222

 

 

 

11,904

 

Less: Depreciation adjustments

 

(44

)

 

 

 

 

 

(44

)

 

 

 

 

 

(44

)

EBITDA as adjusted

$

45,997

 

 

$

4,967

 

 

$

50,964

 

 

$

(12,715

)

 

$

38,249

 

EBITDA margin as adjusted

 

23.1

%

 

 

6.7

%

 

 

18.6

%

 

n/a

 

 

 

14.0

%

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

 

 

Six Months Ended June 30, 2018

 

Material
Handling

 

Distribution

 

Segment
Total

 

Corporate
& Other

 

Total

GAAP Net sales

$

219,939

 

 

$

73,258

 

 

$

293,197

 

 

$

(69

)

 

$

293,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross profit

 

 

 

 

 

 

 

 

 

95,106

 

 

 

 

 

 

95,106

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

289

 

 

 

 

 

 

289

 

Gross profit as adjusted

 

 

 

 

 

 

 

 

 

95,395

 

 

 

 

 

 

95,395

 

Gross profit margin as adjusted

 

 

 

 

 

 

 

 

 

32.5

%

 

n/a

 

 

 

32.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating income (loss)

 

34,053

 

 

 

4,524

 

 

 

38,577

 

 

 

(13,444

)

 

 

25,133

 

Add: Restructuring expenses and other adjustments(1)

 

312

 

 

 

 

 

 

312

 

 

 

 

 

 

312

 

Add: Asset impairment

 

 

 

 

 

 

 

 

 

 

308

 

 

 

308

 

Add: Loss (gain) on sale of assets

 

(208

)

 

 

(665

)

 

 

(873

)

 

 

 

 

 

(873

)

Operating income (loss) as adjusted

 

34,157

 

 

 

3,859

 

 

 

38,016

 

 

 

(13,136

)

 

 

24,880

 

Operating income margin as adjusted

 

15.5

%

 

 

5.3

%

 

 

13.0

%

 

n/a

 

 

 

8.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

12,316

 

 

 

610

 

 

 

12,926

 

 

 

254

 

 

 

13,180

 

Less: Depreciation adjustments

 

(82

)

 

 

 

 

 

(82

)

 

 

 

 

 

(82

)

EBITDA as adjusted

$

46,391

 

 

$

4,469

 

 

$

50,860

 

 

$

(12,882

)

 

$

37,978

 

EBITDA margin as adjusted

 

21.1

%

 

 

6.1

%

 

 

17.3

%

 

n/a

 

 

 

13.0

%

(1) Includes gross profit adjustments of $289 and SG&A adjustments of $23

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,

 

2019

 

2018

 

2019

 

 

2018

GAAP Operating income

$

10,182

 

 

$

13,111

 

 

$

20,400

 

 

$

25,133

 

Add: Restructuring expenses and other adjustments

 

 

 

 

170

 

 

 

1,073

 

 

 

312

 

Add: Asset impairments

 

 

 

 

308

 

 

 

916

 

 

 

308

 

Add: Environmental charges

 

4,000

 

 

 

 

 

 

4,000

 

 

 

 

Add: Loss (gain) on sale of assets

 

 

 

 

(208

)

 

 

 

 

 

(873

)

Operating income as adjusted

 

14,182

 

 

 

13,381

 

 

 

26,389

 

 

 

24,880

 

Less: Interest expense, net

 

(1,017

)

 

 

(1,313

)

 

 

(2,066

)

 

 

(2,952

)

Income before taxes as adjusted

 

13,165

 

 

 

12,068

 

 

 

24,323

 

 

 

21,928

 

Less: Income tax expense(1)

 

(3,555

)

 

 

(3,017

)

 

 

(6,567

)

 

 

(5,482

)

Income from continuing operations as adjusted

$

9,610

 

 

$

9,051

 

 

$

17,756

 

 

$

16,446

 

Adjusted earnings per diluted share from continuing operations

$

0.27

 

 

$

0.27

 

 

$

0.50

 

 

$

0.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2019 is 27% and in 2018 was 25%.

 

 

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, 2019

 

June 30, 2018

 

 

 

 

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

 

$

16,173

 

 

$

27,223

 

 

 

 

 

Capital expenditures

 

 

(4,406

)

 

 

(2,318

)

 

 

 

 

Free cash flow

 

$

11,767

 

 

$

24,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

YTD

 

Quarter

 

 

June 30, 2019

 

March 31, 2019

 

June 30, 2019

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

 

$

16,173

 

-

$

5,301

 

=

$

10,872

 

Capital expenditures

 

 

(4,406

)

-

 

(2,933

)

=

 

(1,473

)

Free cash flow

 

$

11,767

 

-

$

2,368

 

=

$

9,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

YTD

 

Quarter

 

 

June 30, 2018

 

March 31, 2018

 

June 30, 2018

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

 

$

27,223

 

-

$

12,838

 

=

$

14,385

 

Capital expenditures

 

 

(2,318

)

-

 

(1,206

)

=

 

(1,112

)

Free cash flow

 

$

24,905

 

-

$

11,632

 

=

$

13,273

 

 

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

 

Source: Myers Industries, Inc.