Myers Industries(US:MYE)2025-10-30 11:05Financial Performance - Net sales for Q3 2025 were $205.4 million, a slight increase of 0.2% compared to $205.1 million in Q3 2024[3]. - Gross profit increased by 5.3% to $68.6 million, up from $65.1 million in the same quarter last year, resulting in a gross margin of 33.4%[3]. - Operating income turned positive at $17.7 million, compared to a loss of $4.8 million in Q3 2024, primarily due to a prior year goodwill impairment charge[3][9]. - Adjusted net income rose by 7.7% to $9.9 million, with adjusted earnings per diluted share increasing to $0.26 from $0.25[3]. - Net income for the quarter ended September 30, 2025, was $7,088 thousand, compared to a net loss of $10,878 thousand in the same quarter of 2024, marking a significant turnaround[21]. - Net sales for the nine months ended September 30, 2025, were $621.768 million, a slight decrease from $632.405 million in the same period of 2024[25]. - Net income for the nine months ended September 30, 2025, was $23.598 million, compared to $2.904 million in 2024, resulting in a net income margin of 3.8%[25]. Cash Flow and Liquidity - Free cash flow improved significantly to $21.5 million, compared to $10.1 million in Q3 2024, reflecting better working capital management[2]. - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $64,200 thousand, up from $51,944 thousand in the same period of 2024, representing a year-over-year increase of 23.5%[21]. - Free cash flow for the nine months ended September 30, 2025, was $48.265 million, an increase from $34.642 million in 2024[26]. - The net cash provided by financing activities for the nine months ended September 30, 2025, was $(32,987) thousand, compared to $313,020 thousand in the same period of 2024, indicating a significant decrease in cash inflow[21]. - Total liquidity stood at $292.7 million, including $244.7 million available under the revolving credit facility and $48.0 million in cash[10]. Segment Performance - The Material Handling segment reported net sales of $153.5 million, a 1.9% increase from $150.7 million in Q3 2024, with an operating income margin of 17.3%[4]. - The Distribution segment experienced a decline in net sales to $52.0 million, down 4.4% from $54.4 million in Q3 2024, with a significant drop in operating income margin[5]. Cost Management and Restructuring - The company has identified $19 million in structural cost reductions and aims for annualized savings of $20 million by the end of 2025[2]. - The company incurred restructuring expenses and other adjustments totaling $9.663 million for the nine months ended September 30, 2025[26]. Assets and Liabilities - Total assets increased to $864,071 thousand as of September 30, 2025, compared to $860,815 thousand at December 31, 2024, reflecting a growth of 0.3%[20]. - Long-term debt decreased to $331,698 thousand as of September 30, 2025, from $355,310 thousand at December 31, 2024, indicating a reduction of approximately 6.6%[20]. - Accounts payable increased to $81,569 thousand as of September 30, 2025, from $71,049 thousand at December 31, 2024, reflecting a rise of 14.1%[20]. - The company’s total current assets rose to $286,794 thousand as of September 30, 2025, up from $259,307 thousand at December 31, 2024, representing a growth of 10.6%[20]. Adjusted Metrics - Adjusted EBITDA for the quarter was $30,595 thousand, with an adjusted EBITDA margin of 14.9%, compared to $30,735 thousand and a margin of 15.0% in the prior year[23]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $92.043 million, down from $94.768 million in 2024, with an adjusted EBITDA margin of 14.8%[26]. - Adjusted operating income for the nine months ended September 30, 2025, was $62.391 million, compared to $66.008 million in 2024, reflecting an adjusted operating income margin of 10.0%[26]. - Adjusted net income for the nine months ended September 30, 2025, was $29.707 million, compared to $31.696 million in 2024[27]. - Adjusted earnings per diluted share for the nine months ended September 30, 2025, was $0.79, down from $0.85 in 2024[27].