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Myers Industries(MYE) - 2024 Q2 - Quarterly Results
MYEMyers Industries(MYE)2024-08-01 11:02

Financial Performance - Net sales for Q2 2024 were 220.2million,anincreaseof5.7220.2 million, an increase of 5.7% compared to 208.5 million in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was 38.9million,up57.438.9 million, up 57.4% from 24.7 million in the prior-year period[2] - GAAP gross margin improved by 150 basis points to 34.3% compared to 32.8% in Q2 2023[4] - Material Handling segment net sales increased by 15.9% to 166.0million,withoperatingincomerisingby15.6166.0 million, with operating income rising by 15.6% to 28.7 million[5] - Distribution segment net sales decreased by 16.7% to 54.3million,withoperatingincomedown35.954.3 million, with operating income down 35.9% to 2.2 million[6] - Operating income increased to 23,728thousandforthequarter,comparedto23,728 thousand for the quarter, compared to 16,142 thousand in the same quarter last year, reflecting a growth of 47.1%[15] - Net income for the quarter was 10,279thousand,slightlydownfrom10,279 thousand, slightly down from 10,605 thousand in the prior year, resulting in a diluted earnings per share of 0.28[15]−AdjustedEBITDAforthesamequarterwas0.28[15] - Adjusted EBITDA for the same quarter was 38,893 thousand, with an adjusted EBITDA margin of 17.7%[18] - The company reported a net income of 10,279thousand,translatingtoanetincomemarginof4.710,279 thousand, translating to a net income margin of 4.7%[18] - For the six months ended June 30, 2024, net sales reached 427,338 thousand, with an adjusted gross profit of 147,195thousand,reflectingagrossmarginof34.4147,195 thousand, reflecting a gross margin of 34.4%[20] - The company’s net income for the six months ended June 30, 2023, was 23,581 thousand, with a net income margin of 5.6%[21] - Adjusted EBITDA for the six months ended June 30, 2023, was 50,624thousand,withanadjustedEBITDAmarginof11.950,624 thousand, with an adjusted EBITDA margin of 11.9%[21] Cost Management and Guidance - The company expects to achieve 7 million to 9millioninannualizedcostsavingsby2025throughvariousproductivityinitiatives[1]−Full−yearadjustedearningspershareguidancehasbeenloweredtoarangeof9 million in annualized cost savings by 2025 through various productivity initiatives[1] - Full-year adjusted earnings per share guidance has been lowered to a range of 1.05 to 1.20duetocontinueddemandpressureinkeymarkets[1]−Fullyear2024adjustedearningsperdilutedshareguidanceissetbetween1.20 due to continued demand pressure in key markets[1] - Full year 2024 adjusted earnings per diluted share guidance is set between 1.05 and 1.20[24]CashFlowandCapitalExpenditures−CashflowprovidedbyoperationsforQ22024was1.20[24] Cash Flow and Capital Expenditures - Cash flow provided by operations for Q2 2024 was 14.3 million, down from 22.9millioninQ22023[7]−Capitalexpendituresfor2024areprojectedtobebetween22.9 million in Q2 2023[7] - Capital expenditures for 2024 are projected to be between 30 million and 35million[8]−Thecompanyreportedcapitalexpendituresof35 million[8] - The company reported capital expenditures of 4,417 thousand for the quarter, compared to 6,125thousandintheprioryear[17]−FreecashflowforQ22024was6,125 thousand in the prior year[17] - Free cash flow for Q2 2024 was 9,930,000, down from 16,727,000inQ22023,indicatingadecreaseof40.816,727,000 in Q2 2023, indicating a decrease of 40.8%[22] - The company reported net cash provided by operating activities of 14,347,000 for Q2 2024, down from 22,852,000inQ22023,adecreaseof37.222,852,000 in Q2 2023, a decrease of 37.2%[22] Balance Sheet and Leverage - Total assets as of June 30, 2024, were 951,633 thousand, a significant increase from 541,631thousandattheendof2023[16]−Currentassetsroseto541,631 thousand at the end of 2023[16] - Current assets rose to 295,543 thousand, up from 256,621thousandattheendof2023,drivenbyincreasesincashandtradeaccountsreceivable[16]−Long−termdebtincreasedto256,621 thousand at the end of 2023, driven by increases in cash and trade accounts receivable[16] - Long-term debt increased to 380,450 thousand from 31,989thousand,indicatingasubstantialriseinleverage[16]−Thecompanyhasanetleverageratioof2.6xand31,989 thousand, indicating a substantial rise in leverage[16] - The company has a net leverage ratio of 2.6x and 231.4 million available under its revolving credit facility as of June 30, 2024[7] Restructuring and Environmental Reserves - The company incurred restructuring expenses and other adjustments totaling 2,711thousandinthequarterendedJune30,2024[18]−Environmentalreservesnetofprobableinsurancerecoveriesamountedto2,711 thousand in the quarter ended June 30, 2024[18] - Environmental reserves net of probable insurance recoveries amounted to 200 thousand for the six months ended June 30, 2024[20] - Environmental reserves, net for Q2 2024 were 100,000,downfrom100,000, down from 1,800,000 in Q2 2023, indicating a significant reduction[23] Adjusted Metrics - Adjusted operating income for Q2 2024 was 28,826,000,upfrom28,826,000, up from 19,027,000 in Q2 2023, representing a 51.5% increase[22] - Adjusted EBITDA for Q2 2024 reached 38,893,000,comparedto38,893,000, compared to 24,704,000 in Q2 2023, marking a 57.3% growth[22] - Adjusted net income for Q2 2024 was 14,561,000,comparedto14,561,000, compared to 12,928,000 in Q2 2023, reflecting a 12.6% increase[23] - Adjusted earnings per diluted share for Q2 2024 was 0.39,upfrom0.39, up from 0.35 in Q2 2023, which is a 11.4% increase[23] Risks and Caution - The company has expressed caution regarding future performance due to various risks, including raw material costs and competitive pressures[13]