Myers Industries(MYE) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for the quarter ended June 30, 2024, were $220.2 million, an increase of$11.8 million or 5.7% compared to the same quarter in 2023[101]. - The Material Handling Segment net sales increased by $22.7 million or 15.9$31.7 million from the acquisition of Signature[102]. - The Distribution Segment net sales decreased by $10.9 million or 16.7$9.8 million[102]. - For the six months ended June 30, 2024, net sales were $427.3 million, an increase of$3.1 million or 0.7% compared to the same period in 2023[107]. - The acquisition of Signature on February 8, 2024, contributed approximately $51.1 million in incremental sales for the six months ended June 30, 2024[107]. Profitability - Gross profit for the quarter ended June 30, 2024, was$75.5 million, an increase of $7.1 million or 10.4$139.8 million, a slight increase of $0.3 million or 0.2$51.7 million, a decrease of $0.7 million or 1.3$105.1 million, an increase of $0.7 million or 0.7$9.0 million, an increase of $7.2 million or 403.1$1.8 million in the same quarter of 2023[105]. - Net interest expense for the six months ended June 30, 2024 was $15.1 million, an increase of$11.6 million or 339% compared to $3.4 million for the same period in 2023[111]. - The effective tax rate for the quarter ended June 30, 2024, was 30.2$34.6 million for the six months ended June 30, 2024, down from $48.6 million in the same period in 2023[114]. - Net cash used for investing activities was$358.4 million for the six months ended June 30, 2024, compared to $15.2 million in the same period in 2023, primarily due to the acquisition of Signature for$348.3 million[115]. - Cash provided by financing activities was $331.0 million for the six months ended June 30, 2024, compared to cash used of$26.0 million in the same period in 2023[116]. Financial Position - As of June 30, 2024, the Company had $37.3 million in cash and$231.4 million available under the Amended Loan Agreement[113]. - The Company’s interest coverage ratio was 8.03, well above the required minimum of 3.00 to 1[124]. - The net leverage ratio was 2.64, below the maximum limit of 4.00 to 1[124]. - The Company entered into an interest rate swap agreement with a notional value of $200.0 million to mitigate variable interest rate risk[122]. Raw Material and Economic Risks - The Company relies on commodity raw materials, primarily plastic resins and natural gas, for its operations[129]. - There are no current derivative contracts in place to hedge against changes in raw material pricing[129]. - The Company may enter into forward buy positions for certain utility costs, which were not material as of June 30, 2024[129]. - Significant future increases in the cost of plastic resin could adversely impact the Company's financial position[129]. - Changes in the general economic environment may also have a material adverse effect on the Company's results of operations or cash flows[129].