Core Insights - Myers Industries, based in Akron, Ohio, is viewed as a compelling investment opportunity due to a recent surge in share price following a stronger-than-expected Q4 earnings report, consistent dividend payouts, and the launch of its "Focused Transformation" program aimed at growth and efficiency [1][5][15] Financial Performance - The Q4 2024 earnings report revealed adjusted earnings per share (EPS) of 19 cents and GAAP EPS of 11 cents, both exceeding the estimated 10 cents [2] - Net sales increased by 6.7% to $203.9 million, slightly above the projected $203.10 million, with gross margin expanding to 32.3% and adjusted EBITDA rising by 26.2% to $27.5 million, indicating improved operational efficiency [3] - The Material Handling segment saw a 20.3% increase in net sales to $152.7 million, while the Distribution segment experienced a 20.2% decline to $51.2 million due to volume and pricing pressures [4] Strategic Initiatives - The "Focused Transformation" program aims to enhance long-term performance, optimize business structure, improve cost competitiveness, and enable sustainable growth, targeting a $20 million reduction in SG&A expenses by 2025 [6][7] - A comprehensive business portfolio review is underway to identify value creation opportunities, with a focus on high-value opportunities and disciplined cost optimization [7] Dividend and Shareholder Value - Myers Industries has a consistent commitment to returning value to shareholders, with a current dividend yield of approximately 4.40% and an annual dividend of $0.54 per share [8][9] - The trailing dividend payout ratio is high at approximately 125%, but analysts project it to decrease to around 46.2% as earnings grow, enhancing sustainability [10] Market Reaction and Analyst Outlook - Following the positive earnings release, the stock price surged by approximately 27%, indicating strong investor confidence in the company's strategic initiatives [12] - Analysts maintain a Hold rating on the stock, with a consensus price target of $22.00, suggesting a potential upside of over 75% [13][14]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2024 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO ________ COMMISSION FILE NUMBER 001-08524 MYERS INDUSTRIES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Myers Industries, Inc. (NYSE:MYE) Q4 2024 Earnings Conference Call March 6, 2025 8:30 AM ET Company Participants Meghan Beringer – Senior Director-Investor Relations Aaron Schapper – President and Chief Executive Officer Grant Fitz – Executive Vice President and Chief Financial Officer Conference Call Participants William Dezellem – Tieton Capital Management Operator Hello, and welcome to the Myers 2024 Fourth Quarter and Full Year Results. My name is Elliot and I'll be your coordinator today. [Operator Ins ...

March 6, 2025 Q4 2024 Results Protecting the World from the Ground Up 1 Today's Speakers Aaron Schapper President and Chief Executive Officer Grant Fitz Executive Vice President and Chief Financial Officer Meghan Beringer Senior Director, Investor Relations 2 Safe Harbor Statement & Non-GAAP Measures Statements in this presentation contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regardin ...

Financial Performance - Fourth quarter net sales increased by 6.7% to $203.9 million compared to $191.1 million in Q4 2023, driven by the acquisition of Signature Systems and consumer fuel can sales[7]. - Full year 2024 net sales reached $836.3 million, a 2.9% increase from $813.1 million in 2023, primarily due to contributions from Signature Systems[13]. - Net sales for Q4 2024 were $203.9 million, up from $191.1 million in Q4 2023, while full year sales increased to $836.3 million from $813.1 million[28]. - Net sales for the year ended December 31, 2024, reached $836,281, an increase from $813,067 in 2023, representing a growth of approximately 2.6%[34]. Profitability Metrics - Gross margin improved by 230 basis points to 32.3% in Q4 2024, up from 30.0% in Q4 2023, with gross profit increasing by 15.1% to $65.9 million[8]. - GAAP net income per diluted share decreased to $0.11 in Q4 2024 from $0.34 in Q4 2023, reflecting a decline of 67.6%[7]. - The company reported a net income of $4.3 million for Q4 2024, down from $12.5 million in Q4 2023, with diluted earnings per share of $0.11[28]. - Net income for Q4 2024 was $4,297, a decrease of 65.7% compared to $12,539 in Q4 2023[30]. - Net income margin for 2024 was 0.9%, a decrease from 6.0% in 2023, highlighting a significant decline in profitability[34]. - Adjusted earnings per diluted share for 2024 was $1.04, compared to $1.39 in 2023, showing a decrease of about 25.2%[36]. Cash Flow and Debt Management - For Q4 2024, cash flow from operations was $27.3 million and free cash flow was $20.2 million, representing increases of 77.9% and 71.2% respectively compared to Q4 2023[18]. - For the full year 2024, cash flow from operations was $79.3 million and free cash flow was $54.9 million, down from $86.2 million and $63.3 million in 2023[19]. - As of December 31, 2024, the Company had cash on hand of $32.2 million and total debt of $383.6 million, with a net leverage ratio of 2.7x[17]. - The Company reduced total debt by $26 million since March 31, 2024, following the acquisition of Signature Systems[17]. - The company reported a net cash provided by operating activities of $79,292 for 2024, compared to $86,172 in 2023, showing a decrease of approximately 8.5%[35]. Operational Efficiency - SG&A expenses for the full year 2024 increased to $204.1 million, up from $186.9 million in 2023, primarily due to the addition of Signature Systems[14]. - The company plans to implement a "Focused Transformation" program targeting $20 million in annualized cost savings by year-end 2025, primarily in SG&A[6]. - Operating income for Q4 2024 was $14,637, with an operating income margin of 7.2%[32]. - Operating income margin for 2024 was 5.3%, down from 8.9% in 2023, indicating a decrease in operational efficiency[34]. Capital Expenditures - Capital expenditures for Q4 2024 were $7.1 million, an increase from $3.6 million in Q4 2023, and total capital expenditures for 2024 were $24.4 million compared to $22.9 million in 2023[19]. - Capital expenditures in Q4 2024 totaled $7,133, compared to $3,563 in Q4 2023[30]. Future Outlook - The Company plans to temporarily suspend formal annual guidance while assessing its business and strategies, but remains optimistic about sales growth and margin improvement in 2025[20].

Company Overview - Myers Industries operates in the material handling products sector and distributes auto aftermarket tools and equipment [1] - The company consists of various independent subsidiaries and follows an active acquisition strategy [1] Investment Strategy - The focus is on companies that pay healthy dividends while waiting for capital appreciation [1] - The investment approach targets undervalued shares with high potential for capital appreciation driven by foreseeable catalysts [1] - The strategy emphasizes businesses that reward shareholders through both dividends and capital growth [1] Industry Focus - The analyst has a professional background in the HVAC industry, which influences their coverage of related stocks [1]

Financial Data and Key Metrics Changes - Net sales for Q3 2024 were $205.1 million, an increase of $7.3 million or 3.7% compared to Q3 2023, driven by the Signature acquisition and strong demand for Scepter products [20] - Adjusted gross profit was $66.3 million, up $3.7 million or 5.8% year-over-year, with adjusted gross margin increasing to 32.4% from 31.7% [21] - Operating income decreased to a loss of $4.8 million, compared to $18.7 million in Q3 2023, primarily due to a $22 million non-cash goodwill impairment charge [23] - Adjusted EBITDA rose to $30.7 million from $25.6 million in the prior year, with an adjusted EBITDA margin of 15% compared to 13% [25] Business Line Data and Key Metrics Changes - Material Handling Segment net sales increased to $18.2 million, a 13.8% rise year-over-year, with adjusted EBITDA increasing by 33% to $33.5 million [26][27] - Distribution Segment net sales decreased by $11 million or 16.8% to $54.4 million, with adjusted EBITDA down 51.8% to $3.2 million [28] Market Data and Key Metrics Changes - Demand headwinds were noted in recreational vehicles, marine, automotive aftermarket, and food and beverage markets, with customers delaying capital spending [9] - The military end market for Scepter is projected to exceed $25 million in sales for 2024, with expectations of reaching $40 million next year [51] Company Strategy and Development Direction - The company is focused on growing its power brands and optimizing costs in engineered products, with a strategic lens on its storage handling and protection portfolio [12][39] - New cost-cutting initiatives aim for $15 million in annualized savings, in addition to previous targets, to strengthen the cost position and mitigate revenue headwinds [10][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates cautious customer spending behavior to continue into 2025, prompting a reduction in full-year guidance for adjusted earnings per diluted share to $0.92 to $1.02 [11][36] - The company remains committed to executing strategic priorities and driving growth, particularly in high-growth markets like military and infrastructure [38][40] Other Important Information - Free cash flow for Q3 2024 was $10.1 million, down from $18.1 million in Q3 2023, with capital expenditures of $7.2 million [32][33] - The company paid down $13 million in debt during the quarter, maintaining a focus on reducing leverage [11][34] Q&A Session Summary Question: Focus areas for the new CEO - The CEO is focused on growing power brands and optimizing costs in engineered products [43] Question: Surprises in power brand performance - Continued headwinds in RV, marine, and automotive aftermarket, with additional challenges in the food and beverage market [44][45] Question: EPS guidance and distribution margins - Expectation of mixed margins across segments, with potential for positive margins in distribution [49][50] Question: E-commerce strategy updates - Growth in e-commerce, particularly through Amazon, with new product lines being launched [55] Question: Distribution team capabilities - The new distribution team has industry relationships and is actively recruiting to fill gaps [59] Question: Cost-cutting measures impact on Q3 results - Most cost-cutting measures were implemented in Q3, with more impact expected in Q4 and 2025 [64][65] Question: Strategic rationale for the distribution business - Distribution is a key part of the company's heritage, with efforts focused on returning it to profitability [66]

TM mvers INDUSTRIES 2024 Third Quarter Results November 4, 2024 Safe Harbor Statement & Non-GAAP Measures Statements in this presentation contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company's financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as "will," "believ ...

Financial Performance - Net sales for the quarter ended September 30, 2024, were $205.1 million, an increase of $7.3 million or 3.7% compared to the same quarter in 2023[117]. - The Material Handling Segment's net sales increased by $18.2 million or 13.8% for the quarter ended September 30, 2024, primarily due to $20.7 million from the acquisition of Signature[118]. - The Distribution Segment's net sales decreased by $11.0 million or 16.8% for the quarter ended September 30, 2024, mainly due to lower volume of $9.5 million and lower pricing of $1.5 million[119]. - For the nine months ended September 30, 2024, net sales were $632.4 million, an increase of $10.4 million or 1.7% compared to the same period in 2023[126]. - The Material Handling Segment's net sales for the nine months ended September 30, 2024, increased by $40.6 million or 9.5%, driven by $71.8 million from the acquisition of Signature[127]. - The Distribution Segment's net sales decreased by $30.2 million or 15.6% for the nine months ended September 30, 2024, primarily due to lower volume of $27.2 million[128]. Profitability - Gross profit for the quarter ended September 30, 2024, was $65.1 million, an increase of $2.8 million or 4.4% compared to the same period in 2023, with a gross margin of 31.8%[120]. - Gross profit for the nine months ended September 30, 2024, was $204.9 million, an increase of $3.1 million or 1.5% compared to the same period in 2023, with a gross margin of 32.4%[129]. Expenses - Selling, general and administrative (SG&A) expenses for the quarter ended September 30, 2024, were $47.7 million, an increase of $4.0 million or 9.1% compared to the prior year[121]. - Selling, general and administrative (SG&A) expenses increased to $152.8 million for the nine months ended September 30, 2024, up $4.7 million or 3.2% from the prior year, primarily due to $21.1 million of incremental SG&A from the acquisition of Signature[130]. Impairment and Interest - The company recorded a $22.0 million non-cash impairment charge for the full carrying value of goodwill in the rotational molding reporting unit during the quarter ended September 30, 2024[123]. - Net interest expense for the quarter ended September 30, 2024, was $8.1 million, an increase of $6.6 million or 425.7% compared to the same quarter in 2023[124]. - Net interest expense surged to $23.2 million for the nine months ended September 30, 2024, an increase of $18.2 million or 365.8% compared to $5.0 million in the same period in 2023, driven by higher borrowings related to the Signature acquisition[132]. Cash Flow and Investments - Net cash provided by operating activities decreased to $51.9 million for the nine months ended September 30, 2024, down from $70.8 million in the same period in 2023, primarily due to changes in working capital[136]. - Net cash used for investing activities was $365.5 million for the nine months ended September 30, 2024, significantly higher than $19.3 million in the same period in 2023, mainly due to the $348.3 million acquisition of Signature[137]. - Cash provided by financing activities was $313.0 million for the nine months ended September 30, 2024, compared to cash used of $49.8 million in the same period in 2023, reflecting proceeds from a new term loan facility[138]. Debt and Compliance - As of September 30, 2024, the company had $29.7 million in cash and $239.4 million available under the Amended Loan Agreement, with outstanding debt totaling $396.2 million[135]. - The company maintained compliance with all debt covenants, with an interest coverage ratio of 5.52 and a net leverage ratio of 2.72 as of September 30, 2024[147]. - The company incurred $9.2 million in fees related to the amendment and restatement of the Loan Agreement in February 2024, which facilitated the acquisition of Signature[141]. Interest Rate Sensitivity - The Company’s annual variable interest expense would change by approximately $2.0 million with a 1% change in market interest rates based on current debt levels as of September 30, 2024[150]. - The annual fixed rate interest expense on the fair value of the interest rate swap would change by approximately $6.8 million with a 1% change in market interest rates based on current debt levels as of September 30, 2024[151]. Currency and Material Costs - The net foreign currency exposure related to operations in Canada and the United Kingdom is generally less than $1 million[152]. - The Company currently has no derivative contracts to hedge changes in raw material pricing, particularly for plastic resins[153]. - Significant future increases in the cost of plastic resin could have a material adverse impact on the Company's financial position, results of operations, or cash flows[153].

Financial Performance - Net sales for Q3 2024 were $205.1 million, an increase of 3.7% from $197.8 million in Q3 2023[2] - Net income for Q3 2024 was $(10.9) million, compared to $12.7 million in the prior-year period, impacted by a $22.0 million non-cash goodwill impairment charge[2] - Adjusted EBITDA for Q3 2024 was $30.7 million, up 19.8% from $25.6 million in Q3 2023[2] - Material Handling segment net sales increased by 13.8% to $150.7 million, while operating income decreased significantly to $0.9 million[7][8] - Distribution segment net sales decreased by 16.8% to $54.4 million, with operating income dropping to $2.1 million[9][10] - Net sales for the quarter ended September 30, 2024, were $205,067 thousand, a 3.2% increase from $197,798 thousand for the same period in 2023[20] - Gross profit for the quarter was $65,130 thousand, compared to $62,379 thousand in the prior year, reflecting a gross margin improvement[20] - Operating loss for the quarter was $(4,764) thousand, a significant decline from operating income of $18,703 thousand in the same quarter last year[20] - Net loss for the quarter was $(10,878) thousand, compared to net income of $12,747 thousand in the prior year[20] - Adjusted operating income for Q3 2024 was $20,539,000, compared to $20,039,000 in Q3 2023, reflecting a year-over-year increase of 2.5%[27] - Adjusted EBITDA for Q3 2024 reached $30,735,000, up from $25,648,000 in Q3 2023, representing a 19.5% increase[27] - Free cash flow for Q3 2024 was $10,149,000, compared to $18,058,000 in Q3 2023, indicating a decrease of 43.8%[27] - Net income for Q3 2024 was a loss of $10,878,000, contrasting with a profit of $12,747,000 in Q3 2023[28] - Adjusted net income for Q3 2024 was $9,212,000, down from $13,875,000 in Q3 2023, a decline of 33.5%[28] Cost Management - The company is targeting an additional $15 million in annualized cost savings by 2025, on top of the original target of $7 million to $9 million[3] - Selling, general and administrative expenses increased to $47,686 thousand from $43,698 thousand, reflecting higher operational costs[20] - The company incurred restructuring expenses and other adjustments totaling $1,211 thousand during the quarter[23] - Restructuring expenses and other adjustments totaled $2,033,000 in Q3 2024, compared to $1,359,000 in Q3 2023[27] Debt and Cash Flow - Cash flow provided by operations was $17.3 million, down from $22.1 million in Q3 2023, with free cash flow at $10.1 million compared to $18.1 million[11] - Total debt as of September 30, 2024, was $396.2 million, with a net leverage ratio of 2.7x[11] - Long-term debt rose significantly to $367,854 thousand from $31,989 thousand at the end of 2023, reflecting increased leverage[21] - Current liabilities decreased to $153,332 thousand from $165,107 thousand, showing improved short-term financial health[21] - Cash flows from operating activities showed a net cash outflow of $16,301 thousand for the quarter, compared to an inflow of $787 thousand in the previous year[22] - Ending cash balance as of September 30, 2024, was $29,710 thousand, an increase from $24,768 thousand at the end of September 2023[22] Impairment and Asset Management - The company reported impairment charges of $22,016 thousand for the quarter, indicating potential asset write-downs[20] - Impairment charges for Q3 2024 amounted to $22,016,000, with no corresponding charges in Q3 2023[27] - The company reported impairment charges of $22,016 thousand during the quarter[23] Guidance and Projections - Full-year adjusted earnings per share guidance has been revised to a range of $0.92 to $1.02, down from previous guidance of $1.05 to $1.20[12] - The adjusted effective income tax rate for 2024 is projected at 26%[29]