Myers Industries(MYE) - 2024 Q3 - Quarterly Results

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]