Myers Industries Reports 2021 Fourth Quarter and Full Year Results

3.10.22

Fourth Quarter Sales Increased 45% Including Acquisitions, 28% on an Organic Basis

Outlook for Strong Revenue Growth and Increased Profitability in Fiscal 2022

Myers Industries, Inc. (NYSE: MYE), a leading manufacturer of a wide range of polymer products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter and Full Year 2021 Financial Highlights

  • Net sales for the fourth quarter increased 45% to $199.6 million, compared with $137.5 million for the fourth quarter of 2020; net sales for the full year increased 49% to $761.4 million, compared with $510.4 million for the full year of 2020
  • On an organic basis, net sales for the fourth quarter increased 28% compared with the fourth quarter of 2020 and net sales for the full year increased 25% compared with the full year of 2020
  • Net income per diluted share for the fourth quarter increased 150% to $0.20, compared with $0.08 for the fourth quarter of 2020; net income per diluted share for the full year decreased 10% to $0.92, compared with $1.02 for the full year of 2020 (net income for the full year of 2020 included $11.9 million of pre-tax income from the sale of notes and release of lease guarantee liability related to the Company's Lawn and Garden business that was sold in 2015)
  • Adjusted earnings per diluted share for the fourth quarter increased 109% to $0.23, compared with $0.11 for the fourth quarter of 2020; adjusted earnings per diluted share for the full year increased 14% to $0.97, compared with $0.85 for the full year of 2020
  • Adjusted EBITDA for the fourth quarter increased 55% to $17.6 million, compared with $11.3 million for the fourth quarter of 2020; adjusted EBITDA for the full year increased 9% to $72.3 million, compared with $66.4 million for the full year of 2020
  • Cash flow from continuing operations was $44.9 million and free cash flow was $27.0 million for the full year of 2021

Myers Industries’ President and CEO, Mike McGaugh said, “2021 was a strong and important year for Myers. We experienced strong organic revenue growth. We successfully integrated two high-performing acquisitions. In addition, we are proud to tell you that the revitalization of Myers’ sales, marketing, and operational capabilities is taking place across all of Myers. The transformation of Myers is ongoing. We continue to see robust demand for our products across our end markets and are confident that our ‘One Myers’ strategy, based on an integrated company approach, will help us fulfill this demand.

Throughout 2021, our team worked hard and smartly to offset cost pressures that temporarily depressed near-term margins. That included pricing actions and implementing a value-based approach to pricing, which delivered a favorable price-to-cost relationship during the fourth quarter. We believe our significant infusion of operational and commercial talent over the past two years and our new processes and approach to doing business will make these improvements lasting. This will put us in a strong position to drive margins and profitability in 2022 and beyond.”

McGaugh concluded, “During the fourth quarter, we continued the integration of our recent acquisitions, Elkhart Plastics and Trilogy Plastics. These acquisitions have exceeded our expectations by bringing scale, and capability, and an improved ability to deliver value to Myers’ customers. It’s exciting and gratifying to see the progress on our acquisitions, as well as the commercial and operational improvements across our company. Looking forward, we remain focused on maintaining our strong momentum, executing the “One Myers” integrated strategy, and delivering improved results. We have a strong team comprised of long-serving Myers' associates and over two dozen new high-horsepower members, a robust demand for our differentiated products, sustained top-line momentum, a healthy balance sheet, and a high cash-generating business model, all of which are working together to drive growth and position the business for long-term success. We look forward to continued execution in 2022 and believe we have only scratched the surface of our long-term potential.”

Fourth Quarter 2021 Financial Summary

 

 

Quarter Ended December 31,

 

 

 

2021

 

2020

 

Inc (Dec)

 

 

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

Net sales

 

$199.6

 

$137.5

 

45.2%

 

 

 

 

 

 

 

 

 

Operating income

 

$10.8

 

$4.9

 

121.4%

 

Adjusted operating income

 

$12.5

 

$6.4

 

94.4%

 

Adjusted operating income margin

 

6.2%

 

4.7%

 

+150 bps

 

 

 

 

 

 

 

 

 

Net income

 

$7.3

 

$3.0

 

142.6%

 

Adjusted net income

 

$8.4

 

$3.8

 

117.9%

 

 

 

 

 

 

 

 

 

Net income per diluted share

 

$0.20

 

$0.08

 

150.0%

 

Adjusted earnings per diluted share

 

$0.23

 

$0.11

 

109.1%

 

Net sales for the fourth quarter of 2021 were $199.6 million, an increase of $62.1 million, or 45.2%, compared with $137.5 million for the fourth quarter of 2020, driven by strong sales in both the Material Handling and Distribution segments. Excluding the incremental $23.3 million of net sales from the Elkhart and Trilogy acquisitions, organic net sales increased 28%, with 19% due to favorable pricing and 9% due to higher volume/mix .

Gross profit increased $12.0 million, or 30.1% to $51.8 million, primarily due to the increased contribution from pricing actions, sales volume, and the Elkhart and Trilogy acquisitions. Partially offsetting these contributions were higher raw material costs, increased labor and other manufacturing costs, and an unfavorable sales mix. Although the contribution from pricing actions more than offset higher raw material costs, which led to a favorable price-to-cost relationship for the quarter, gross margin was 26.0% compared with 29.0% for the fourth quarter of 2020 due to the higher labor and other manufacturing costs and unfavorable sales mix. Selling, general and administrative expenses increased $6.3 million, or 18.1% to $41.3 million, reflecting the Elkhart and Trilogy acquisitions, which accounted for approximately half of the increase, higher salaries, benefits, incentive compensation costs, and increased professional fees. SG&A as a percentage of sales declined to 20.7% in the fourth quarter, compared with 25.4% in the same period last year. Net income per diluted share was $0.20, compared with $0.08 for the fourth quarter of 2020. Adjusted earnings per diluted share were $0.23, compared with $0.11 for the fourth quarter of 2020.

Fourth Quarter 2021 Segment Results

(Dollar amounts in the segment tables below are reported in millions)

Material Handling

 

Net
Sales

 

Op
Income

 

Adj Op
Income

 

Adj Op
Income
Margin

Q4 2021 Results

$147.3

 

$12.3

 

$13.2

 

9.0%

Q4 2020 Results

$92.2

 

$8.5

 

$9.1

 

9.8%

Increase (decrease) vs prior year

59.8%

 

44.3%

 

45.8%

 

-80 bps

Net sales for the Material Handling Segment during the fourth quarter of 2021 were $147.3 million, an increase of $55.1 million, or 59.8%, compared with $92.2 million for the fourth quarter of 2020. Excluding the incremental $23.3 million of net sales from the Elkhart and Trilogy acquisitions, organic net sales increased 25% due to favorable price, 9% due to higher volume/mix, and 1% due to foreign currency exchange. Organic net sales increased in the food and beverage, industrial, vehicle, and consumer end markets. Operating income increased 44.3% to $12.3 million, compared with $8.5 million in 2020. Adjusted operating income increased 45.8% to $13.2 million, compared with $9.1 million in 2020. Contributions from pricing actions and the increase in sales volume during the quarter were partially offset by higher raw material costs, increased labor and other manufacturing costs, and an unfavorable sales mix. The contribution from pricing actions more than offset higher raw material costs, which led to a favorable price-to-cost relationship for the quarter. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to the Elkhart and Trilogy acquisitions and higher salaries, benefits, and incentive compensation costs. The Material Handling Segment’s adjusted operating income margin was 9.0%, compared with 9.8% for the fourth quarter of 2020.

Distribution

 

Net
Sales

 

Op
Income

 

Adj Op
Income

 

Adj Op
Income
Margin

Q4 2021 Results

$52.3

 

$5.4

 

$5.4

 

10.3%

Q4 2020 Results

$45.3

 

$3.6

 

$3.6

 

7.9%

Increase vs prior year

15.5%

 

50.8%

 

50.8%

 

+240 bps

Net sales for the Distribution Segment during the fourth quarter of 2021 were $52.3 million, an increase of $7.0 million, or 15.5%, compared with $45.3 million for the fourth quarter of 2020. The increase was driven by higher volume/mix across both equipment and supplies and pricing actions. Operating income increased 50.8% to $5.4 million, compared with $3.6 million in 2020. Contributions from pricing actions and higher volume/mix were partially offset by an increase in SG&A expenses year-over-year. The increase in SG&A expenses was primarily the result of higher salaries, benefits, and incentive compensation costs. The Distribution Segment’s adjusted operating income margin was 10.3%, compared with 7.9% for the fourth quarter of 2020.

Full Year 2021 Financial Summary

 

 

Year Ended December 31,

 

 

 

2021

 

2020

 

Inc (Dec)

 

 

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

Net sales

 

$761.4

 

$510.4

 

49.2%

 

 

 

 

 

 

 

 

 

Operating income

 

$49.3

 

$53.6

 

(7.9)%

 

Adjusted operating income

 

$51.9

 

$45.9

 

13.2%

 

Adjusted operating income margin

 

6.8%

 

9.0%

 

-220 bps

 

 

 

 

 

 

 

 

 

Net income

 

$33.5

 

$36.8

 

(8.8)%

 

Adjusted net income

 

$35.3

 

$30.5

 

15.8%

 

 

 

 

 

 

 

 

 

Net income per diluted share

 

$0.92

 

$1.02

 

(9.8)%

 

Adjusted earnings per diluted share

 

$0.97

 

$0.85

 

14.1%

 

Net sales for the full year of 2021 were $761.4 million, an increase of $251.1 million, or 49.2%, compared with $510.4 million for the full year of 2020, driven by strong sales in both the Material Handling and Distribution segments. Excluding the incremental $122.2 million of net sales from the Elkhart and Trilogy acquisitions, organic net sales increased 25%, with 14% due to higher volume/mix, 10% due to favorable pricing, and 1% due to foreign currency exchange.

Gross profit increased $39.5 million, or 22.9% to $211.4 million, primarily due to the increased contribution from pricing actions, volume/mix and the Elkhart and Trilogy acquisitions. Partially offsetting these contributions were higher raw material costs, including a $2.0 million incremental charge to increase the LIFO inventory reserve, which were not fully recovered by pricing actions and led to an unfavorable price-to-cost relationship for the year. Gross margin declined to 27.8% compared with 33.7% for the full year of 2020 as a result of the unfavorable price-to-cost relationship, higher labor and other manufacturing costs, and an unfavorable sales mix. Selling, general and administrative expenses increased $33.2 million, or 25.5% to $163.5 million, reflecting the Elkhart and Trilogy acquisitions, higher salaries, benefits, incentive compensation costs, and increased professional fees. SG&A as a percentage of sales declined to 21.5% for the full year, compared with 25.5% last year. Net income per diluted share was $0.92, compared with $1.02 for the full year of 2020, which included $0.24 from the sale of notes and release of lease guarantee liability related to the Company’s Lawn and Garden business sold in 2015. Adjusted earnings per diluted share were $0.97, compared with $0.85 for the full year of 2020.

Full Year 2021 Segment Results

(Dollar amounts in the segment tables below are reported in millions)

Material Handling

 

Net
Sales

 

Op
Income

 

Adj Op
Income

 

Adj Op
Income
Margin

Full Year 2021 Results

$564.1

 

$62.2

 

$62.4

 

11.1%

Full Year 2020 Results

$343.9

 

$55.1

 

$56.5

 

16.4%

Increase (decrease) vs prior year

64.0%

 

12.9%

 

10.4%

 

-530 bps

Net sales for the Material Handling Segment for the full year of 2021 were $564.1 million, an increase of $220.2 million, or 64.0%, compared with $343.9 million for the full year of 2020. Excluding the incremental $122.2 million of net sales from the Elkhart and Trilogy acquisitions, organic net sales increased 14% due to higher volume/mix, 14% due to favorable price and 1% due to foreign currency exchange. Organic net sales increased in the vehicle, food and beverage, industrial, and consumer end markets. Operating income increased 12.9% to $62.2 million, compared with $55.1 million in 2020. Adjusted operating income increased 10.4% to $62.4 million, compared with $56.5 million in 2020. Contributions from the increase in volume/mix and pricing during the quarter were partially offset by higher raw material costs, including a $0.9 million incremental charge to increase the LIFO inventory reserve, increased labor costs, and an unfavorable sales mix. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to the Elkhart and Trilogy acquisitions, higher salaries, benefits, incentive compensation costs, and increased professional fees. The Material Handling Segment’s adjusted operating income margin was 11.1%, compared with 16.4% for the full year of 2020.

Distribution

 

Net
Sales

 

Op
Income

 

Adj Op
Income

 

Adj Op
Income
Margin

Full Year 2021 Results

$197.4

 

$15.4

 

$16.0

 

8.1%

Full Year 2020 Results

$166.5

 

$12.2

 

$12.2

 

7.3%

Increase vs prior year

18.5%

 

26.9%

 

31.1%

 

+80 bps

Net sales for the Distribution Segment for the full year of 2022 were $197.4 million, an increase of $30.9 million, or 18.5%, compared with $166.5 million for the full year of 2020. The increase was driven by higher volume/mix across both equipment and supplies and pricing actions. Operating income increased 26.9% to $15.4 million, compared with $12.2 million in 2020. Adjusted operating income increased 31.1% to $16.0 million, compared with $12.2 million in 2020. Contributions from higher volume/mix and pricing actions were partially offset by an increase in SG&A expenses year-over-year. The increase in SG&A expenses was primarily the result of higher salaries, benefits, incentive compensation costs, and increased selling expenses. The Distribution Segment’s adjusted operating income margin was 8.1%, compared with 7.3% for the full year of 2020.

Balance Sheet & Cash Flow

As of December 31, 2021, the Company’s cash on hand totaled $17.7 million, compared to $28.3 million as of December 31, 2020. Total debt as of December 31, 2021, was $100.9 million.

For the full year of 2021, cash flow provided by operations was $44.9 million and free cash flow was $27.0 million, compared with cash flow provided by operations of $46.5 million and free cash flow of $33.1 million for the full year of 2020. Capital expenditures for the full year of 2021 were $17.9 million, compared with $13.4 million for the full year of 2020.

2022 Outlook

Based on current exchange rates, market outlook and business forecast, the Company provided the following outlook for fiscal 2022:

  • Net sales growth in the high single digit to low double digit range, with approximately one quarter of the increase due to the acquisition of Trilogy Plastics
  • Diluted EPS in the range of $1.18 to $1.38; adjusted diluted EPS in the range of $1.20 to $1.40
  • Capital expenditures to be in the range of $25 to $28 million
  • Effective tax rate to approximate 26%

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, March 10, 2022, at 8:30 a.m. EDT. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.incommglobalevents.com/registration/q4inc/10107/myers-industries-2021-fourth-quarter-earnings-call/. Upon registering, each participant will be provided with call details and a registrant ID that will be used to track call attendance. Reminders will also be sent to registered participants via email. The live webcast of the conference call can be accessed from the Investor Relations section of the Company's website at www.myersindustries.com.Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. Investors can access a replay of the teleconference at (866) 813-9403; international callers use (226) 828-7578. The Access Code is 06717. The teleconference replay will be available through March 17, 2022.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross profit margin, adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted income (loss) before taxes, adjusted net income, adjusted earnings per diluted share, and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

About Myers Industries

Myers Industries, Inc. is a manufacturer of polymer products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel, and under-vehicle service industry in the United States. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “will”, “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company's control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: impacts from the COVID-19 pandemic on our business, conditions, customers and capital position; the impact of COVID-19 on local, national and global economic conditions; the effects of various governmental responses to the COVID-19 pandemic, raw material availability, increases in raw material costs, or other production costs; impacts of price increases, risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities, or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; impact of the U.S. elections impacts on the regulatory landscape, capital markets, and responses to and management of the COVID-19 pandemic including further economic stimulus from the federal government; and other important factors detailed previously and from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q. Such reports are available on the Securities and Exchange Commission's public reference facilities and its website at www.sec.gov and on the Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)

 

 

 

Quarter Ended

 

 

Year Ended

 

 

 

December 31,
2021

 

 

December 31,
2020

 

 

December 31,
2021

 

 

December 31,
2020

 

Net sales

 

$

199,579

 

 

$

137,467

 

 

$

761,435

 

 

$

510,369

 

Cost of sales

 

 

147,763

 

 

 

97,630

 

 

 

550,014

 

 

 

338,409

 

Gross profit

 

 

51,816

 

 

 

39,837

 

 

 

211,421

 

 

 

171,960

 

Selling, general and administrative expenses

 

 

41,302

 

 

 

34,971

 

 

 

163,502

 

 

 

130,331

 

(Gain) loss on disposal of fixed assets

 

 

(236

)

 

 

10

 

 

 

(1,382

)

 

 

3

 

Gain on sale of notes receivable

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

Operating income (loss)

 

 

10,750

 

 

 

4,856

 

 

 

49,301

 

 

 

53,550

 

Interest expense, net

 

 

1,158

 

 

 

1,221

 

 

 

4,208

 

 

 

4,688

 

Income (loss) before income taxes

 

 

9,592

 

 

 

3,635

 

 

 

45,093

 

 

 

48,862

 

Income tax expense (benefit)

 

 

2,337

 

 

 

645

 

 

 

11,555

 

 

 

12,093

 

Net income (loss)

 

$

7,255

 

 

$

2,990

 

 

$

33,538

 

 

$

36,769

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.20

 

 

$

0.08

 

 

$

0.93

 

 

$

1.03

 

Diluted

 

$

0.20

 

 

$

0.08

 

 

$

0.92

 

 

$

1.02

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,242,600

 

 

 

35,848,726

 

 

 

36,138,571

 

 

 

35,785,798

 

Diluted

 

 

36,447,287

 

 

 

36,017,750

 

 

 

36,358,969

 

 

 

35,916,630

 

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

% Change

 

 

2021

 

 

2020

 

 

% Change

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

147,284

 

 

$

92,184

 

 

 

59.8

%

 

$

564,068

 

 

$

343,884

 

 

 

64.0

%

Distribution

 

 

52,308

 

 

 

45,291

 

 

 

15.5

%

 

$

197,427

 

 

$

166,544

 

 

 

18.5

%

Inter-company Sales

 

 

(13

)

 

 

(8

)

 

 

-

 

 

$

(60

)

 

$

(59

)

 

 

-

 

Total

 

$

199,579

 

 

$

137,467

 

 

 

45.2

%

 

$

761,435

 

 

$

510,369

 

 

 

49.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

12,292

 

 

$

8,516

 

 

 

44.3

%

 

$

62,187

 

 

$

55,072

 

 

 

12.9

%

Distribution

 

 

5,399

 

 

 

3,580

 

 

 

50.8

%

 

 

15,428

 

 

 

12,157

 

 

 

26.9

%

Corporate

 

 

(6,941

)

 

 

(7,240

)

 

 

-

 

 

 

(28,314

)

 

 

(13,679

)

 

 

-

 

Total

 

$

10,750

 

 

$

4,856

 

 

 

121.4

%

 

$

49,301

 

 

$

53,550

 

 

 

(7.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

13,229

 

 

$

9,072

 

 

 

45.8

%

 

$

62,407

 

 

$

56,533

 

 

 

10.4

%

Distribution

 

 

5,399

 

 

 

3,580

 

 

 

50.8

%

 

 

15,955

 

 

 

12,174

 

 

 

31.1

%

Corporate

 

 

(6,160

)

 

 

(6,240

)

 

 

-

 

 

 

(26,413

)

 

 

(22,807

)

 

 

-

 

Total

 

$

12,468

 

 

$

6,412

 

 

 

94.4

%

 

$

51,949

 

 

$

45,900

 

 

 

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

9.0

%

 

 

9.8

%

 

 

 

 

 

11.1

%

 

 

16.4

%

 

 

 

Distribution

 

 

10.3

%

 

 

7.9

%

 

 

 

 

 

8.1

%

 

 

7.3

%

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

Total

 

 

6.2

%

 

 

4.7

%

 

 

 

 

 

6.8

%

 

 

9.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

17,658

 

 

$

13,356

 

 

 

32.2

%

 

$

80,210

 

 

$

74,367

 

 

 

7.9

%

Distribution

 

 

5,994

 

 

 

4,120

 

 

 

45.5

%

 

 

18,163

 

 

 

14,474

 

 

 

25.5

%

Corporate

 

 

(6,051

)

 

 

(6,141

)

 

 

-

 

 

 

(26,002

)

 

 

(22,411

)

 

 

-

 

Total

 

$

17,601

 

 

$

11,335

 

 

 

55.3

%

 

$

72,371

 

 

$

66,430

 

 

 

8.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

 

12.0

%

 

 

14.5

%

 

 

 

 

 

14.2

%

 

 

21.6

%

 

 

 

Distribution

 

 

11.5

%

 

 

9.1

%

 

 

 

 

 

9.2

%

 

 

8.7

%

 

 

 

Corporate

 

n/a

 

 

n/a

 

 

 

 

 

n/a

 

 

n/a

 

 

 

 

Total

 

 

8.8

%

 

 

8.2

%

 

 

 

 

 

9.5

%

 

 

13.0

%

 

 

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Quarter Ended December 31, 2021

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

Net sales

 

$

147,284

 

 

$

52,308

 

 

$

199,592

 

 

$

(13

)

 

$

199,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,816

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

620

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

317

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52,753

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

12,292

 

 

 

5,399

 

 

 

17,691

 

 

 

(6,941

)

 

 

10,750

 

Add: Acquisition and integration costs

 

 

317

 

 

 

 

 

 

317

 

 

 

81

 

 

 

398

 

Add: Restructuring expenses and other adjustments

 

 

620

 

 

 

 

 

 

620

 

 

 

 

 

 

620

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

700

 

 

 

700

 

Adjusted operating income (loss)(1)

 

 

13,229

 

 

 

5,399

 

 

 

18,628

 

 

 

(6,160

)

 

 

12,468

 

Adjusted operating income margin

 

 

9.0

%

 

 

10.3

%

 

 

9.3

%

 

n/a

 

 

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,429

 

 

 

595

 

 

 

5,024

 

 

 

109

 

 

 

5,133

 

Adjusted EBITDA

 

$

17,658

 

 

$

5,994

 

 

$

23,652

 

 

$

(6,051

)

 

$

17,601

 

Adjusted EBITDA margin

 

 

12.0

%

 

 

11.5

%

 

 

11.9

%

 

n/a

 

 

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gross profit adjustments of $937 and SG&A adjustments of $781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31, 2020

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

Net sales

 

$

92,184

 

 

$

45,291

 

 

$

137,475

 

 

$

(8

)

 

$

137,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39,837

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

552

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,389

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

8,516

 

 

 

3,580

 

 

 

12,096

 

 

 

(7,240

)

 

 

4,856

 

Add: Acquisition and integration costs

 

 

556

 

 

 

 

 

 

556

 

 

 

500

 

 

 

1,056

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

500

 

Adjusted operating income (loss)(1)

 

 

9,072

 

 

 

3,580

 

 

 

12,652

 

 

 

(6,240

)

 

 

6,412

 

Adjusted operating income margin

 

 

9.8

%

 

 

7.9

%

 

 

9.2

%

 

n/a

 

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,284

 

 

 

540

 

 

 

4,824

 

 

 

99

 

 

 

4,923

 

Adjusted EBITDA

 

$

13,356

 

 

$

4,120

 

 

$

17,476

 

 

$

(6,141

)

 

$

11,335

 

Adjusted EBITDA margin

 

 

14.5

%

 

 

9.1

%

 

 

12.7

%

 

n/a

 

 

 

8.2

%

 

 

(1) Includes gross profit adjustments of $552 and SG&A adjustments of $1,004

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

 

 

 

Year Ended December 31, 2021

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

Net sales

 

$

564,068

 

 

$

197,427

 

 

$

761,495

 

 

$

(60

)

 

$

761,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

211,421

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

867

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

348

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

212,636

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

62,187

 

 

 

15,428

 

 

 

77,615

 

 

 

(28,314

)

 

 

49,301

 

Add: Severance costs

 

 

 

 

 

527

 

 

 

527

 

 

 

318

 

 

 

845

 

Add: Acquisition and integration costs

 

 

348

 

 

 

 

 

 

348

 

 

 

883

 

 

 

1,231

 

Add: Restructuring expenses and other adjustments

 

 

867

 

 

 

 

 

 

867

 

 

 

 

 

 

867

 

Less: Gain on sale of assets

 

 

(995

)

 

 

 

 

 

(995

)

 

 

 

 

 

(995

)

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

700

 

 

 

700

 

Adjusted operating income (loss)(1)

 

 

62,407

 

 

 

15,955

 

 

 

78,362

 

 

 

(26,413

)

 

 

51,949

 

Adjusted operating income margin

 

 

11.1

%

 

 

8.1

%

 

 

10.3

%

 

n/a

 

 

 

6.8

%

Add: Depreciation and amortization

 

 

17,803

 

 

 

2,208

 

 

 

20,011

 

 

 

411

 

 

 

20,422

 

Adjusted EBITDA

 

$

80,210

 

 

$

18,163

 

 

$

98,373

 

 

$

(26,002

)

 

$

72,371

 

Adjusted EBITDA margin

 

 

14.2

%

 

 

9.2

%

 

 

12.9

%

 

n/a

 

 

 

9.5

%

 

 

(1) Includes gross profit adjustments of $1,215 and SG&A adjustments of $1,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2020

 

 

 

Material
Handling

 

 

Distribution

 

 

Segment
Total

 

 

Corporate
& Other

 

 

Total

 

Net sales

 

$

343,884

 

 

$

166,544

 

 

$

510,428

 

 

$

(59

)

 

$

510,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

171,960

 

Add: Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

552

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

172,512

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

55,072

 

 

 

12,157

 

 

 

67,229

 

 

 

(13,679

)

 

 

53,550

 

Add: Severance costs

 

 

905

 

 

 

 

 

 

905

 

 

 

1,512

 

 

 

2,417

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

249

 

 

 

249

 

Add: Acquisition and integration costs

 

 

556

 

 

 

17

 

 

 

573

 

 

 

535

 

 

 

1,108

 

Add: Environmental charges

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

500

 

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

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

 

 

(11,924

)

Adjusted operating income (loss)(1)

 

 

56,533

 

 

 

12,174

 

 

 

68,707

 

 

 

(22,807

)

 

 

45,900

 

Adjusted operating income margin

 

 

16.4

%

 

 

7.3

%

 

 

13.5

%

 

n/a

 

 

 

9.0

%

Add: Depreciation and amortization

 

 

17,834

 

 

 

2,300

 

 

 

20,134

 

 

 

396

 

 

 

20,530

 

Adjusted EBITDA

 

$

74,367

 

 

$

14,474

 

 

$

88,841

 

 

$

(22,411

)

 

$

66,430

 

Adjusted EBITDA margin

 

 

21.6

%

 

 

8.7

%

 

 

17.4

%

 

n/a

 

 

 

13.0

%

 

 

(1) Includes gross profit adjustments of $552 and SG&A adjustments of ($8,202)

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Operating income (loss)

 

$

10,750

 

 

$

4,856

 

 

$

49,301

 

 

$

53,550

 

 

Add: Severance costs

 

 

 

 

 

 

 

 

845

 

 

 

2,417

 

 

Add: Restructuring expenses and other adjustments

 

 

620

 

 

 

 

 

 

867

 

 

 

249

 

 

Add: Acquisition and integration costs

 

 

398

 

 

 

1,056

 

 

 

1,231

 

 

 

1,108

 

 

Less: Gain on sale of assets

 

 

 

 

 

 

 

 

(995

)

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

(11,924

)

 

Add: Environmental charges

 

 

700

 

 

 

500

 

 

 

700

 

 

 

500

 

 

Adjusted operating income (loss)

 

 

12,468

 

 

 

6,412

 

 

 

51,949

 

 

 

45,900

 

 

Less: Interest expense, net

 

 

(1,158

)

 

 

(1,221

)

 

 

(4,208

)

 

 

(4,688

)

 

Adjusted income (loss) before taxes

 

 

11,310

 

 

 

5,191

 

 

 

47,741

 

 

 

41,212

 

 

Less: Income tax expense(1)

 

 

(2,941

)

 

 

(1,350

)

 

 

(12,413

)

 

 

(10,715

)

 

Adjusted net income (loss)

 

$

8,369

 

 

$

3,841

 

 

$

35,328

 

 

$

30,497

 

 

Adjusted earnings per diluted share(2)

 

$

0.23

 

 

$

0.11

 

 

$

0.97

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2021 and 2020 is 26%.

(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

 

 

December 31, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

17,655

 

 

$

28,301

 

Accounts receivable, net

 

 

100,691

 

 

 

83,701

 

Income tax receivable

 

 

2,517

 

 

 

1,049

 

Inventories, net

 

 

93,551

 

 

 

65,919

 

Prepaid expenses and other current assets

 

 

5,500

 

 

 

4,760

 

Total Current Assets

 

 

219,914

 

 

 

183,730

 

Property, plant, & equipment, net

 

 

92,049

 

 

 

73,953

 

Right of use asset - operating leases

 

 

29,285

 

 

 

18,390

 

Deferred income taxes

 

 

106

 

 

 

84

 

Other assets

 

 

143,195

 

 

 

123,858

 

Total Assets

 

$

484,549

 

 

$

400,015

 

Liabilities & Shareholders' Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

81,690

 

 

$

61,150

 

Accrued expenses

 

 

44,969

 

 

 

36,744

 

Operating lease liability - short-term

 

 

5,341

 

 

 

4,359

 

Finance lease liability - short-term

 

 

500

 

 

 

 

Long-term debt - current portion

 

 

 

 

 

39,994

 

Total Current Liabilities

 

 

132,500

 

 

 

142,247

 

Long-term debt

 

 

90,945

 

 

 

37,582

 

Operating lease liability - long-term

 

 

23,815

 

 

 

13,755

 

Finance lease liability - long-term

 

 

9,437

 

 

 

 

Other liabilities

 

 

13,086

 

 

 

14,373

 

Deferred income taxes

 

 

5,441

 

 

 

2,958

 

Total Shareholders' Equity

 

 

209,325

 

 

 

189,100

 

Total Liabilities & Shareholders' Equity

 

$

484,549

 

 

$

400,015

 

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

Cash Flows From Operating Activities

 

 

 

 

 

 

Net income

 

$

33,538

 

 

$

36,769

 

Adjustments to reconcile net income to net cash
provided by (used for) operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

20,885

 

 

 

20,930

 

Non-cash stock-based compensation expense

 

 

3,196

 

 

 

3,534

 

(Gain) loss on disposal of fixed assets

 

 

(1,382

)

 

 

3

 

Gain on sale of notes receivable

 

 

 

 

 

(11,924

)

Deferred taxes

 

 

2,826

 

 

 

8,732

 

Other

 

 

(1,403

)

 

 

4,225

 

Cash flows provided by (used for) working capital

 

 

 

 

 

 

Accounts receivable

 

 

(15,273

)

 

 

(11,589

)

Inventories

 

 

(24,885

)

 

 

(7,868

)

Prepaid expenses and other current assets

 

 

(676

)

 

 

(969

)

Accounts payable and accrued expenses

 

 

28,088

 

 

 

4,664

 

Net cash provided by (used for) operating activities

 

 

44,914

 

 

 

46,507

 

Cash Flows From Investing Activities

 

 

 

 

 

 

Capital expenditures

 

 

(17,867

)

 

 

(13,421

)

Acquisition of business

 

 

(35,758

)

 

 

(63,334

)

Proceeds from sale of property, plant, and equipment

 

 

3,336

 

 

 

2

 

Proceeds from sale of notes receivable

 

 

 

 

 

1,200

 

Net cash provided by (used for) investing activities

 

 

(50,289

)

 

 

(75,553

)

Cash Flows From Financing Activities

 

 

 

 

 

 

Net borrowings from revolving credit facility

 

 

53,000

 

 

 

 

Repayments of long-term debt

 

 

(40,000

)

 

 

 

Payments on finance lease

 

 

(402

)

 

 

 

Cash dividends paid

 

 

(19,596

)

 

 

(19,425

)

Proceeds from issuance of common stock

 

 

3,793

 

 

 

1,732

 

Shares withheld for employee taxes on equity awards

 

 

(888

)

 

 

(623

)

Deferred financing fees

 

 

(1,095

)

 

 

 

Net cash provided by (used for) financing activities

 

 

(5,188

)

 

 

(18,316

)

Foreign exchange rate effect on cash

 

 

(83

)

 

 

136

 

Net (decrease) increase in cash

 

 

(10,646

)

 

 

(47,226

)

Cash at January 1

 

 

28,301

 

 

 

75,527

 

Cash at December 31

 

$

17,655

 

 

$

28,301

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

 

 

 

YTD

 

 

YTD

 

 

 

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

 

Net cash provided by (used for) operating activities

 

$

44,914

 

 

$

46,507

 

 

 

 

Capital expenditures

 

 

(17,867

)

 

 

(13,421

)

 

 

 

Free cash flow

 

$

27,047

 

 

$

33,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

December 31, 2021

 

 

September 30, 2021

 

 

December 31, 2021

 

Net cash provided by (used for) operating activities

 

$

44,914

 

-

$

13,544

 

=

$

31,370

 

Capital expenditures

 

 

(17,867

)

-

 

(14,264

)

=

 

(3,603

)

Free cash flow

 

$

27,047

 

-

$

(720

)

=

$

27,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD

 

 

YTD

 

 

Quarter

 

 

 

December 31, 2020

 

 

September 30, 2020

 

 

December 31, 2020

 

Net cash provided by (used for) operating activities

 

$

46,507

 

-

$

31,334

 

=

$

15,173

 

Capital expenditures

 

 

(13,421

)

-

 

(8,955

)

=

 

(4,466

)

Free cash flow

 

$

33,086

 

-

$

22,379

 

=

$

10,707

 

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED DILUTED EARNINGS PER SHARE

(UNAUDITED)

 

Full Year 2022 Guidance

 

 

Low

 

 

High

 

GAAP diluted net income per common share

$

1.18

 

 

$

1.38

 

Add: Net restructuring expenses and other adjustments

 

0.02

 

 

 

0.02

 

Adjusted diluted earnings per share

$

1.20

 

 

$

1.40

 

 

 

 

 

 

 

 M-INV

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

Source: Myers Industries, Inc.