Myers Industries(US:MYE)2021-05-06 20:16Financial Performance - Net sales for the quarter ended March 31, 2021, were $174.4 million, an increase of $52.2 million or 43% compared to the same period in 2020[91]. - The Material Handling Segment net sales increased by $45.8 million or 54%, driven by higher volume/mix and incremental sales from the Elkhart Plastics acquisition[92]. - The Distribution Segment net sales increased by $6.4 million or 17%, primarily due to higher volume[93]. - Gross profit for the quarter was $50.4 million, a 19% increase from $42.5 million in the same quarter of 2020, with gross profit margin decreasing to 28.9% from 34.8%[94]. Expenses and Costs - Selling, General and Administrative (SG&A) expenses rose to $39.5 million, an increase of 27% compared to the prior year, primarily due to the Elkhart Plastics acquisition and higher incentive compensation[95]. - Net interest expense decreased by 7% to $1.0 million, attributed to lower borrowing rates and reduced borrowings[97]. - The effective tax rate increased to 26.0% from 24.8% due to higher non-deductible expenses[98]. Liquidity and Cash Flow - As of March 31, 2021, the Company had $16.7 million in cash and $211.2 million available under the Loan Agreement, indicating strong liquidity[99]. - Net cash provided by operating activities was $6.6 million, up from $5.0 million in the same period in 2020, reflecting higher sales volume[100]. Capital Expenditures and Debt - The Company expects full-year 2021 capital expenditures to be approximately $15 million, with $5.2 million spent in the first quarter[101]. - As of March 31, 2021, the Company has $38 million in Senior Unsecured Notes outstanding, with maturities of $26 million due on January 15, 2024, and $12 million due on January 15, 2026[106]. - The Company is in compliance with all debt covenants, with an interest coverage ratio of 15.66 (required minimum 3.00) and a leverage ratio of 1.19 (maximum allowed 3.25) as of March 31, 2021[107]. Market Risks - If market interest rates increase by 1%, the Company's annual interest expense would increase by approximately $0.3 million[109]. - The Company's foreign currency exposure ranges from $1 million to $3 million, primarily due to U.S. dollar sales from Canadian operations[110]. - The Company currently has no derivative contracts to hedge commodity price risks, particularly for plastic resins used in manufacturing[111].