Attached files
| file | filename |
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| EX-99.1 - EX-99.1 - MYERS INDUSTRIES INC | d72913dex991.htm |
| 8-K - FORM 8-K - MYERS INDUSTRIES INC | d72913d8k.htm |
 October 29, 2015
| Myers Industries, Inc. Third Quarter 2015 Earnings Presentation Exhibit 99.2 |
 2 Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial
results may be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and are based on current
indicators and expectations. Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we "believe," "expect," or "anticipate" will occur, and other similar
statements), you must remember that our expectations may not be correct,
even though we believe they are reasonable. We do not guarantee
that the transactions and events described will happen as described (or that they will happen at all). You should review this presentation with the understanding that actual future results may be materially
different from what we expect. Many of the factors that will determine these
results are beyond our ability to control or predict. You are
cautioned not to put undue reliance on any forward-looking statement. We do not intend, and undertake no obligation, to update these forward-looking statements. These statements involve a number of risks and
uncertainties that could cause actual results to differ materially from those expressed
or implied in the applicable statements. Such risks
include: (1) Changes in the markets for the Company’s business
segments (2) Changes in trends and demands in the markets in which the
Company competes (3) Unanticipated downturn in business relationships with
customers or their purchases (4) Competitive pressures on sales and
pricing (5) Raw material availability, increases in raw material costs, or
other production costs (6) Harsh weather conditions
(7) Future economic and financial conditions in the United States and around the
world (8) Inability of the Company to meet future capital
requirements (9) Claims, litigation and regulatory actions against the
Company (10) Changes in laws and regulations affecting the
Company (11) The Company’s ability to execute the components of its
Strategic Business Evolution process Myers Industries, Inc. encourages
investors to learn more about these risk factors. A detailed explanation of these factors is available in the Company’s publicly filed quarterly and annual reports, which can be found online at
www.myersind.com and at the SEC.gov web site.
Safe Harbor Statement |
  Third Quarter 2015 Financial Summary
3 • Net sales decreased due to continued weak demand in the Material Handling Segment’s agricultural end market and currency fluctuation. • Gross profit margin increased due to strategic pricing actions and ongoing cost reduction activities. • SG&A decreased primarily as a result of $3.0M of transaction costs in Q3 2014 related to acquisition of Scepter and a $3.0M accrual for patent infringement lawsuit. These reductions were offset by an environmental reserve of $1.3M and the acceleration of stock compensation expense in Q3 2015 of $1.4M, which led to a $0.03 reduction to adjusted income per diluted share from continuing operations during the quarter. Note: All figures except ratios and percents are $Millions Continuing Operations Q3 Q3 % Highlights 2015 2014 Change Net sales $141.7 $162.1 (12.6)% Gross profit margin 29.4% 24.7% SG&A $39.1 $42.6 (8.3)% Income from continuing ops - adjusted¹ $2.8 $2.3 21.5% Effective tax rate 25.7% 31.9% Income per diluted share from continuing ops - adjusted¹ $0.09 $0.07 28.6% ¹ See Reconciliation of Non-GAAP measures on slide 9 |
       2015
YTD Financial Summary 4
Notes: All figures are $Millions
Free cash flow = cash flow from operations – capital expenditures Continuing Operations Nine Months Ended Nine Months Ended Cash September 30, September 30, Highlights 2015 2014 Cash provided by (used for) continuing operations $7.1 ($2.8) Capital expenditures $17.7 $10.9 Free cash flow ($10.5) ($13.7) Dividends $12.6 $11.6 Balance Sheet September 30, December 31, Highlights 2015 2014 Long-term debt $214.7 $236.4 Debt - net of cash $209.5 $231.8 |
 • Excluding currency fluctuations, net sales decreased 10.9% compared to Q3 2014. The decline in Material Handling net sales was primarily due to decreased sales to the agricultural end market due to lower demand and the previously disclosed customer acceleration of approximately $5.0 million of orders that occurred in Q2 2015. • Adjusted income before taxes (IBT) increased versus Q3 2014 due mostly to reductions in labor and overhead costs and pricing actions. Third Quarter Results – Material Handling 5 $ Millions See Reconciliation of Non-GAAP measures on slide 9 $92.5 $112.3 $0 $20 $40 $60 $80 $100 $120 Q3 2015 Q3 2014 Net Sales $8.6 $8.3 $0 $2 $4 $6 $8 $10 Q3 2015 Q3 2014 IBT - Adjusted |
 • The decrease in Distribution net sales as compared to Q3 of last year was the result of decreased demand in some of the segment’s geographic markets, partially due to a stronger dollar. • Reduced operating costs and lower SG&A expenses led to the 32.6% increase in adjusted income before taxes (IBT) year- over-year. Third Quarter Results – Distribution 6 $ Millions See Reconciliation of Non-GAAP measures on slide 9 $49.2 $49.9 $40 $42 $44 $46 $48 $50 $52 Q3 2015 Q3 2014 Net Sales $5.7 $4.3 $0 $1 $2 $3 $4 $5 $6 $7 Q3 2015 Q3 2014 IBT - Adjusted |
 Outlook/Guidance
• Challenging market conditions in agricultural end market expected to continue but
seeing some positive signs
• Decreased corn production and low crop prices are expected to continue to decrease demand
for agricultural storage containers, but we are encouraged by a planned
increase in orders from a larger customer in that end market and
look forward to the prospect of an improved 2016 •
Stronger sales to food processing and automotive end markets that began in Q3
are expected to continue in Q4 and 2016
• Fourth quarter and full year 2016 results should benefit from recent and upcoming new
product introductions
• Legacy material handling product re-introductions • New product introductions by Scepter of trigger-control and vented hi-flo gas cans
• Maintenance and cleaning of bulk boxes by Buckhorn • Vending machine program in the Distribution Segment • Capital expenditures for continuing operations in 2015 are expected to be
approximately $25 -
$30 million • Approximately 70% of Capital Expenditures will be used for growth and productivity projects
• Anticipate effective tax rate for full year 2015 will be approximately 32.5%
• A result of shift to more international earnings with a full year of Scepter in our results
• Free cash flow is estimated to be between $25 - $30 million • Capital allocation priorities will remain both opportunistic and balanced
7 |
 Appendix 8 |
 Reconciliation of Non-GAAP Measures
9 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT (UNAUDITED)
(Dollars in millions, except per share data)
Quarter Ended September 30,
Nine Months Ended September 30,
2015
2014
2015
2014
Material
Handling
Income (loss) from continuing operations before
income taxes as reported
$
7.4
$
(0.4)
$
41.6
$
23.9
Patent infringement lawsuit
—
3.0
(3.0)
3.0
Transaction costs -
Scepter acquisition
—
2.9
—
2.9
Inventory step-up Scepter acquisition
—
2.3
—
2.3
Restructuring expenses and other
adjustments 1.2
0.5
1.8
1.1
Income from continuing operations before
income taxes as adjusted
8.6
8.3
40.4
33.2
Distribution
Income from continuing operations before
income taxes as reported
5.6
4.1
13.6
12.7
Restructuring expenses and other
adjustments 0.1
0.2
0.2
1.0
Income from continuing operations before
income taxes as adjusted
5.7
4.3
13.8
13.7
Corporate
and
interest
expense
(Loss) before income taxes as reported
(12.1)
(9.0)
(33.1)
(25.0)
Environmental reserve
1.3
—
1.3
—
Transaction costs, professional and legal fees
and other adjustments
0.7
0.1
2.4
0.7
Corporate and interest expense as adjusted
(10.1)
(8.9)
(29.4)
(24.3)
Continuing
Operations
Income (loss) from continuing operations before
income taxes as reported
0.9
(5.3)
22.1
11.6
Total of all adjustments above
3.3
9.0
2.7
11.0
Income from continuing operations before
income taxes as adjusted
4.2
3.7
24.8
22.6
Income taxes*
1.4
1.4
8.0
8.3
Income from continuing operations as
adjusted $
2.8
$
2.3
$
16.8
$
14.3
Adjusted earnings per diluted share from
continuing operations
$
0.09
$
0.07
$
0.54
$
0.43
*Income taxes calculated using the normalized effective
tax rate for each year. release and in this reconciliation chart is a
non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from the unaudited Consolidated Financial Statements. The Company believes that
the excluded items are not primarily
related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information
regarding a company's operating
profitability. Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as
a substitute for net income (loss), income
(loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company's method for calculating income (loss) excluding these items may not be comparable to methods used by other
companies. Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items mentioned above in the text of this |
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