Myers Industries(MYE) - 2022 Q1 - Quarterly Report

Financial Performance - Net sales for the quarter ended March 31, 2022, were $225.5 million, an increase of $51.1 million or 29.3% compared to the same quarter in 2021[90]. - The Material Handling Segment net sales increased by $46.7 million or 36.0%, driven by higher pricing of $31.0 million and incremental sales from the acquisition of Trilogy[91]. - Gross profit for the quarter ended March 31, 2022, was $71.9 million, a 42.7% increase compared to $50.4 million in the same quarter of 2021, with a gross profit margin of 31.9%[93]. Expenses - Selling, general and administrative (SG&A) expenses were $48.0 million, an increase of $8.4 million or 21.3% compared to the prior year, primarily due to higher salaries and facility costs[94]. - Net interest expense increased to $1.1 million, a 15.3% rise compared to the same quarter in 2021, attributed to higher average outstanding borrowings[95]. Tax and Compliance - The effective tax rate for the quarter was 25.5%, a slight decrease from 26.0% in the same quarter of 2021[96]. - The Company was in compliance with all debt covenants, with an interest coverage ratio of 21.04 and a leverage ratio of 1.16 as of March 31, 2022[104]. Liquidity and Cash Flow - As of March 31, 2022, the Company had $17.6 million in cash and $191.8 million available under its Loan Agreement, indicating strong liquidity[97]. - Net cash provided by operating activities was $7.3 million for the quarter, up from $6.6 million in the same period in 2021[98]. - Capital expenditures for the quarter were $5.1 million, with full-year expectations of approximately $25 million to $28 million[99]. Interest Rate and Currency Exposure - The Company has floating interest rate financing arrangements, and a 1% increase in market interest rates would raise annual variable interest expenses by approximately $0.5 million[106]. - The net foreign currency exposure from operations in Canada generally ranges from $1 million to $3 million, with no foreign currency arrangements in place as of March 31, 2022[107]. Raw Material Pricing Risks - The Company currently has no derivative contracts to hedge against changes in raw material pricing, particularly for plastic resins[108]. - Significant future increases in the cost of plastic resin could materially adversely impact the Company's financial position, results of operations, or cash flows[108].