Myers Industries(US:MYE)2023-08-03 20:05Financial Performance - Net sales for the quarter ended June 30, 2023, were $208.5 million, a decrease of $24.7 million or 10.6% compared to the same quarter in 2022[100]. - For the six months ended June 30, 2023, total net sales were $424.2 million, a decrease of $34.5 million or 7.5% compared to the same period in 2022[107]. - The Material Handling Segment reported net sales of $143.3 million, a decrease of $29.8 million or 17.2% year-over-year, primarily due to lower volume/mix[101]. - The Distribution Segment saw an increase in net sales of $5.1 million or 8.5%, driven by $9.3 million from the acquisition of Mohawk and higher pricing[102]. - The Material Handling Segment's net sales for the six months decreased by $53.9 million or 15.4%, primarily due to lower volume/mix[108]. - The Distribution Segment's net sales increased by $19.4 million or 17.8%, supported by higher pricing and incremental sales from the Mohawk acquisition[109]. Profitability - Gross profit for the quarter decreased by $6.3 million or 8.4%, with a gross margin of 32.8%, up from 32.0% in the prior year[103]. - Gross profit for the six months ended June 30, 2023, was $139.5 million, a decrease of $7.2 million or 4.9%, with a gross margin of 32.9%[110]. - Income before income taxes decreased to $31.7 million for the six months ended June 30, 2023, down from $44.7 million in 2022[113]. Expenses - Selling, general and administrative (SG&A) expenses were $52.4 million, a slight increase of 0.1% compared to the same period last year[104]. - SG&A expenses for the six months ended June 30, 2023 were $104.4 million, an increase of $4.1 million or 4.1% compared to the same period in 2022[111]. - Net interest expense increased by $0.6 million or 47.8% to $1.8 million, attributed to a higher weighted-average borrowing rate[105]. - Net interest expense for the six months ended June 30, 2023 was $3.4 million, an increase of $1.1 million or 45.7% compared to $2.4 million in the same period in 2022[112]. Cash Flow - Net cash provided by operating activities increased to $48.6 million for the six months ended June 30, 2023, compared to $34.3 million in the same period in 2022[115]. - Net cash used by investing activities was $15.2 million for the six months ended June 30, 2023, a decrease from $33.7 million in the same period in 2022[116]. - Cash used by financing activities was $26.0 million for the six months ended June 30, 2023, compared to cash provided of $4.3 million in 2022[117]. Financial Position - As of June 30, 2023, the Company had $30.7 million in cash and $203.3 million available under the Loan Agreement[114]. - The Company’s interest coverage ratio was 15.68, significantly above the required minimum of 3.00 to 1[122]. Capital Expenditures - The Company expects full year 2023 capital expenditures to be approximately $25 million to $30 million[116].