Business Wire | May 6, 2021 06:30AM EDT

Myers Industries Reports 2021 First Quarter Results

May 06, 2021

AKRON, Ohio--(BUSINESS WIRE)--May 06, 2021--Myers Industries, Inc. (NYSE: MYE), a manufacturer of polymer products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the first quarter ended March 31, 2021.

First Quarter 2021 Financial Highlights

* Net sales increased $52.2 million, or 42.7% to $174.4 million, including $27.1 million, or 22.2% from the Elkhart Plastics acquisition, compared with $122.3 million for the first quarter of 2020 * Net income per diluted share was $0.20, compared with $0.47 for the first quarter of 2020, which included $0.24 from the sale of notes and release of lease guarantee liability related to the Company's Lawn and Garden business sold in 2015 * Adjusted earnings per diluted share was $0.22 in both the first quarter of 2021 and 2020 * Cash flow from operations was $6.6 million and free cash flow was $1.4 million, compared with $5.0 million and $2.5 million, respectively, for the first quarter of 2020 * Company announced two price increases during the first quarter in response to higher raw material costs

President and CEO, Mike McGaugh said, "Our strong start to 2021, combined with the successful implementation of two price increases, and a seamless onboarding of Elkhart Plastics, fortifies my optimism on our ability to create value for all of our stakeholders. The healthy demand across our core end-markets points to encouraging signs of a sustainable economic recovery. Strong demand was reflected as well in our recently acquired Elkhart Plastics business, which contributed $27 million to our top-line. I'm pleased with our team's ability to quickly integrate the business, as well as with the progress we're collectively realizing to identify both cost and growth synergies.

"As a result of our growing confidence around the strength of the economic recovery and our business momentum, we are raising our sales guidance and expect to be at the higher end of our earnings guidance for 2021. We are mitigating the impact of elevated raw material costs and will be diligent in taking action to protect and ultimately expand our margins, as evidenced by the two price increases announced over the last few months.

"I joined Myers just over a year ago and I'm extremely proud of the progress we've made in executing against our One Myers strategy. We've added new expertise and experience to our senior leadership team, optimized our corporate structure, and reinvested in our equipment and labor force to make Myers more efficient and more commercially focused. We also completed our first acquisition, which so far has exceeded our expectations and set the blueprint for future integrations. Our One Myers strategy has achieved early success and I look forward to updating our investors on our progress as we continue through 2021 and beyond. We've only just begun."

First Quarter 2021 Financial Summary

Quarter Ended March 31,

% Inc 2021 2020 (Dec)

(Dollars in millions, except per share data)



Net sales $174.4 $122.3 42.7%



Operating income $10.9 $23.3 (53.4)%

Adjusted operating income $11.9 $11.7 1.5%



Net income $7.3 $16.7 (56.3)%

Adjusted net income $8.0 $7.7 3.8%



Net income per diluted share $0.20 $0.47 (57.4)%

Adjusted earnings per diluted $0.22 $0.22 0.0%share

Net sales for the first quarter of 2021 were $174.4 million, an increase of $52.2 million, or 42.7%, compared with $122.3 million for the first quarter of 2020, driven by increases in both the Material Handling and Distribution Segments. Excluding the $27.1 million net sales impact from the Elkhart acquisition, organic net sales increased 20% due to higher volume/mix and 1% due to favorable pricing and foreign currency exchange.

Gross profit increased $7.9 million, or 18.7% to $50.4 million, primarily due to the increased contribution from sales volume and the Elkhart Plastics acquisition, which was partially offset by an unfavorable price to cost relationship, an unfavorable sales mix, and higher manufacturing costs during the quarter. Gross margin was 28.9% compared with 34.8% for the first quarter of 2020. Selling, general and administrative expenses increased $8.4 million, or 27.1% to $39.5 million, reflecting the Elkhart Plastics acquisition, higher incentive compensation costs, increased legal fees, and higher selling expenses. SG&A as a percentage of sales declined to 22.7% in the first quarter, compared with 25.5% in the same period last year. Net income per diluted share was $0.20, compared with $0.47 for the first quarter of 2020, which included $0.24 from the sale of notes and release of lease guarantee liability related to the Company's Lawn and Garden business sold in 2015. Adjusted earnings per diluted share were $0.22, which was flat compared with the first quarter of 2020.

First Quarter 2021 Segment Results

(Dollar amounts in the segment tables below are reported in millions)

Material Handling

Net Op Adj Op Adj Op Sales Income Income Income Margin

Q1 2021 Results $129.9 $16.9 $16.9 13.0%

Increase (decrease) vs prior year 54.5% 11.6% 11.6% -500 bps

Net sales for the first quarter of 2021 were $129.9 million, an increase of $45.8 million, or 54.5%, compared with $84.1 million for the first quarter of 2020. The increase was primarily due to the incremental $27.1 million of sales from the Elkhart Plastics acquisition completed in late 2020 and higher organic volume/mix. Sales increased in the food and beverage, vehicle, consumer, and industrial end markets. Operating income increased 11.6% to $16.9 million, compared with $15.2 million in 2020. Contributions from the higher volume and Elkhart Plastics acquisition were partially offset by an unfavorable price to cost relationship, an unfavorable sales mix, higher manufacturing expenses, higher incentive compensation costs, and increased legal fees. The Material Handling Segment's adjusted operating income margin was 13%, compared with 18% for the first quarter of 2020.

Distribution

Net Op Adj Op Adj Op Sales Income Income Income Margin

Q1 2021 Results $44.6 $1.4 $2.0 4.4%

Increase (decrease) vs prior year 16.6% (22.3)% 5.2% -50 bps

Net sales for the first quarter of 2021 were $44.6 million, an increase of $6.4 million, or 16.6%, compared with $38.2 million for the first quarter of 2020, driven by higher volume/mix. Volume was up primarily due to increased sales of both supplies and equipment. Operating income decreased to $1.4 million, compared with $1.9 million in 2020. Adjusted operating income increased to $2.0 million, compared with $1.9 million in 2020. The increase in adjusted operating income was due primarily to the higher sales volume, partially offset by an unfavorable sales mix, an unfavorable price to cost relationship, and higher incentive compensation costs. The Distribution Segment's adjusted operating income margin was 4.4%, compared with 4.9% for the first quarter of 2020.

2021 Outlook

The Company updated and raised its net sales outlook for fiscal 2021 and currently forecasts:

* Net sales growth in the high 30% range, including impact of the Elkhart Plastics acquisition * Diluted EPS in the range of $0.87 to $1.02; adjusted diluted EPS in the range of $0.90 to $1.05 * Capital expenditures to approximate $15 million * Effective tax rate to approximate 26%

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, May 6, 2021, at 8:30 a.m. EDT. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: http://www.directeventreg.com/registration/event/5283649. Upon registering, each participant will be provided with call details and a registrant ID that will be used to track call attendance. Reminders will also be sent to registered participants via email. The live webcast of the conference call can be accessed from the Investor Relations section of the Company's website at www.myersindustries.com. Click on the Investor Relations tab to access the webcast. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (US) 800-585-8367 or (Int'l) 416-621-4642. The Conference ID # is 5283649.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross profit margin, adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted income (loss) before taxes, adjusted net income, adjusted earnings per diluted share, and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company's performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

About Myers Industries

Myers Industries, Inc. is a manufacturer of polymer products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel, and under-vehicle service industry in the United States. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed "forward-looking." Words such as "will," "expect," "believe," "project," "plan," "anticipate," "intend," "objective," "outlook," "target," "goal," "view" and similar expressions identify forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company's control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: impacts from the COVID-19 pandemic on our business, conditions, customers and capital position; the impact of COVID-19 on local, national and global economic conditions; the effects of various governmental responses to the COVID-19 pandemic, raw material availability, increases in raw material costs, or other production costs; impacts of price increases, risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company's business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities, or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; impact of the U.S. elections impacts on the regulatory landscape, capital markets, and responses to and management of the COVID-19 pandemic including further economic stimulus from the federal government; and other important factors detailed previously and from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q. Such reports are available on the Securities and Exchange Commission's public reference facilities and its website at www.sec.gov and on the Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)



Quarter Ended

March 31, 2021 March 31, 2020

Net sales $ 174,429 $ 122,250

Cost of sales 124,016 79,767

Gross profit 50,413 42,483

Selling, general and administrative expenses 39,548 31,116

Gain on disposal of fixed assets - (7 )

Gain on sale of notes receivable - (11,924 )

Operating income (loss) 10,865 23,298

Interest expense, net 995 1,069

Income (loss) before income taxes 9,870 22,229

Income tax expense (benefit) 2,565 5,503

Net income (loss) $ 7,305 $ 16,726

Net income (loss) per common share:

Basic $ 0.20 $ 0.47

Diluted $ 0.20 $ 0.47

Weighted average common shares outstanding:

Basic 35,993,331 35,723,979

Diluted 36,290,831 35,828,428

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

Quarter Ended March 31,

2021

2020

% Change

Net sales

Material Handling

$

129,893

$

84,076

54.5

%

Distribution

44,550

38,195

16.6

%

Inter-company Sales

(14

)

(21

)

-

Total

$

174,429

$

122,250

42.7

%

Operating income (loss)

Material Handling

$

16,927

$

15,167

11.6

%

Distribution

1,438

1,850

(22.3

)%

Corporate

(7,500

)

6,281

-

Total

$

10,865

$

23,298

(53.4

)%

Adjusted operating income (loss)

Material Handling

$

16,927

$

15,167

11.6

%

Distribution

1,965

1,867

5.2

%

Corporate

(7,038

)

(5,359

)

-

Total

$

11,854

$

11,675

1.5

%

Adjusted operating income margin

Material Handling

13.0

%

18.0

%

Distribution

4.4

%

4.9

%

Corporate

n/a

n/a

Total

6.8

%

9.6

%

Adjusted EBITDA

Material Handling

$

21,446

$

20,197

6.2

%

Distribution

2,508

2,463

1.8

%

Corporate

(6,939

)

(5,260

)

-

Total

$

17,015

$

17,400

(2.2

)%

Adjusted EBITDA margin

Material Handling

16.5

%

24.0

%

Distribution

5.6

%

6.4

%

Corporate

n/a

n/a

Total

9.8

%

14.2

%

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

Quarter Ended March 31,

2021 2020 % Change

Net sales

Material Handling $ 129,893 $ 84,076 54.5 %

Distribution 44,550 38,195 16.6 %

Inter-company Sales (14 ) (21 ) -

Total $ 174,429 $ 122,250 42.7 %



Operating income (loss)

Material Handling $ 16,927 $ 15,167 11.6 %

Distribution 1,438 1,850 (22.3 )%

Corporate (7,500 ) 6,281 -

Total $ 10,865 $ 23,298 (53.4 )%



Adjusted operating income (loss)

Material Handling $ 16,927 $ 15,167 11.6 %

Distribution 1,965 1,867 5.2 %

Corporate (7,038 ) (5,359 ) -

Total $ 11,854 $ 11,675 1.5 %



Adjusted operating income margin

Material Handling 13.0 % 18.0 %

Distribution 4.4 % 4.9 %

Corporate n/a n/a

Total 6.8 % 9.6 %



Adjusted EBITDA

Material Handling $ 21,446 $ 20,197 6.2 %

Distribution 2,508 2,463 1.8 %

Corporate (6,939 ) (5,260 ) -

Total $ 17,015 $ 17,400 (2.2 )%



Adjusted EBITDA margin

Material Handling 16.5 % 24.0 %

Distribution 5.6 % 6.4 %

Corporate n/a n/a

Total 9.8 % 14.2 %

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

Quarter Ended March 31, 2021

Material Handling

Distribution

Segment Total

Corporate & Other

Total

Net sales

$

129,893

$

44,550

$

174,443

$

(14

)

$

174,429

Gross profit

50,413

Gross margin

28.9

%

Operating income (loss)

16,927

1,438

18,365

(7,500

)

10,865

Add: Severance costs

-

527

527

318

845

Add: Elkhart acquisition and integration costs

-

-

-

144

144

Adjusted operating income (loss)

16,927

1,965

18,892

(7,038

)

11,854

Adjusted operating income margin

13.0

%

4.4

%

10.8

%

n/a

6.8

%

Add: Depreciation and amortization

4,519

543

5,062

99

5,161

Adjusted EBITDA

$

21,446

$

2,508

$

23,954

$

(6,939

)

$

17,015

Adjusted EBITDA margin

16.5

%

5.6

%

13.7

%

n/a

9.8

%

Quarter Ended March 31, 2020

Material Handling

Distribution

Segment Total

Corporate & Other

Total

Net sales

$

84,076

$

38,195

$

122,271

$

(21

)

$

122,250

Gross profit

42,483

Gross margin

34.8

%

Operating income (loss)

15,167

1,850

17,017

6,281

23,298

Add: Restructuring expenses and other adjustments

-

-

-

249

249

Add: Tuffy acquisition costs

-

17

17

35

52

Less: Lawn and Garden sale of note/release of lease guarantee liability

-

-

-

(11,924

)

(11,924

)

Adjusted operating income (loss)

15,167

1,867

17,034

(5,359

)

11,675

Adjusted operating income margin

18.0

%

4.9

%

13.9

%

n/a

9.6

%

Add: Depreciation and amortization

5,030

596

5,626

99

5,725

Adjusted EBITDA

$

20,197

$

2,463

$

22,660

$

(5,260

)

$

17,400

Adjusted EBITDA margin

24.0

%

6.4

%

18.5

%

n/a

14.2

%

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)



Quarter Ended March 31, 2021

Material Distribution Segment Corporate Total Handling Total & Other

Net sales $ 129,893 $ 44,550 $ 174,443 $ (14 ) $ 174,429



Gross profit 50,413

Gross margin 28.9 %



Operating 16,927 1,438 18,365 (7,500 ) 10,865 income (loss)

Add:Severance - 527 527 318 845 costs

Add: Elkhartacquisitionand - - - 144 144 integrationcosts

Adjustedoperating 16,927 1,965 18,892 (7,038 ) 11,854 income (loss)

Adjustedoperating 13.0 % 4.4 % 10.8 % n/a 6.8 %income margin



Add:Depreciation 4,519 543 5,062 99 5,161 andamortization

Adjusted $ 21,446 $ 2,508 $ 23,954 $ (6,939 ) $ 17,015 EBITDA

Adjusted 16.5 % 5.6 % 13.7 % n/a 9.8 %EBITDA margin



Quarter Ended March 31, 2020

Material Distribution Segment Corporate Total Handling Total & Other

Net sales $ 84,076 $ 38,195 $ 122,271 $ (21 ) $ 122,250



Gross profit 42,483

Gross margin 34.8 %



Operating 15,167 1,850 17,017 6,281 23,298 income (loss)

Add:Restructuringexpenses and - - - 249 249 otheradjustments

Add: Tuffyacquisition - 17 17 35 52 costs

Less: Lawnand Gardensale of note/release of - - - (11,924 ) (11,924 )leaseguaranteeliability

Adjustedoperating 15,167 1,867 17,034 (5,359 ) 11,675 income (loss)

Adjustedoperating 18.0 % 4.9 % 13.9 % n/a 9.6 %income margin



Add:Depreciation 5,030 596 5,626 99 5,725 andamortization

Adjusted $ 20,197 $ 2,463 $ 22,660 $ (5,260 ) $ 17,400 EBITDA

Adjusted 24.0 % 6.4 % 18.5 % n/a 14.2 %EBITDA margin

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

Quarter Ended March 31,

2021

2020

Operating income (loss)

$

10,865

$

23,298

Add: Severance costs

845

-

Add: Restructuring expenses and other adjustments

-

249

Add: Tuffy acquisition costs

-

52

Add: Elkhart acquisition and integration costs

144

-

Less: Lawn and Garden sale of note/release of lease guarantee liability

-

(11,924

)

Adjusted operating income (loss)

11,854

11,675

Less: Interest expense, net

(995

)

(1,069

)

Adjusted income (loss) before taxes

10,859

10,606

Less: Income tax expense(1)

(2,823

)

(2,864

)

Adjusted net income (loss)

$

8,036

$

7,742

Adjusted earnings per diluted share

$

0.22

$

0.22

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2021 is 26% and in 2020 is 27%.

(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)



Quarter Ended March 31,

2021 2020

Operating income (loss) $ 10,865 $ 23,298

Add: Severance costs 845 -

Add: Restructuring expenses and other adjustments - 249

Add: Tuffy acquisition costs - 52

Add: Elkhart acquisition and integration costs 144 -

Less: Lawn and Garden sale of note/release of lease - (11,924 )guarantee liability

Adjusted operating income (loss) 11,854 11,675

Less: Interest expense, net (995 ) (1,069 )

Adjusted income (loss) before taxes 10,859 10,606

Less: Income tax expense^(1) (2,823 ) (2,864 )

Adjusted net income (loss) $ 8,036 $ 7,742

Adjusted earnings per diluted share $ 0.22 $ 0.22



(1) Income taxes are calculated using the normalized effective tax rate foreach year. The rate used in 2021 is 26% and in 2020 is 27%.

(2) Adjusted earnings per diluted share is calculated using the weightedaverage common shares outstanding for the respective period.

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

March 31, 2021

December 31, 2020

Assets

Current Assets

Cash

$

16,666

$

28,301

Accounts receivable, net

94,619

83,701

Income tax receivable

-

1,049

Inventories, net

69,848

65,919

Prepaid expenses and other current assets

9,614

4,760

Total Current Assets

190,747

183,730

Property, plant, & equipment, net

83,220

73,953

Right of use asset - operating leases

20,820

18,390

Deferred income taxes

84

84

Other assets

125,410

123,858

Total Assets

$

420,281

$

400,015

Liabilities & Shareholders' Equity

Current Liabilities

Accounts payable

$

69,933

$

61,150

Accrued expenses

39,001

36,744

Operating lease liability - short-term

4,269

4,359

Finance lease liability - short-term

487

-

Long-term debt - current portion

-

39,994

Total Current Liabilities

113,690

142,247

Long-term debt

70,928

37,582

Operating lease liability - long-term

16,300

13,755

Finance lease liability - long-term

9,812

-

Other liabilities

14,303

14,373

Deferred income taxes

995

2,958

Total Shareholders' Equity

194,253

189,100

Total Liabilities & Shareholders' Equity

$

420,281

$

400,015

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)



March 31, 2021 December 31, 2020

Assets

Current Assets

Cash $ 16,666 $ 28,301

Accounts receivable, net 94,619 83,701

Income tax receivable - 1,049

Inventories, net 69,848 65,919

Prepaid expenses and other current 9,614 4,760 assets

Total Current Assets 190,747 183,730

Property, plant, & equipment, net 83,220 73,953

Right of use asset - operating leases 20,820 18,390

Deferred income taxes 84 84

Other assets 125,410 123,858

Total Assets $ 420,281 $ 400,015

Liabilities & Shareholders' Equity

Current Liabilities

Accounts payable $ 69,933 $ 61,150

Accrued expenses 39,001 36,744

Operating lease liability - short-term 4,269 4,359

Finance lease liability - short-term 487 -

Long-term debt - current portion - 39,994

Total Current Liabilities 113,690 142,247

Long-term debt 70,928 37,582

Operating lease liability - long-term 16,300 13,755

Finance lease liability - long-term 9,812 -

Other liabilities 14,303 14,373

Deferred income taxes 995 2,958

Total Shareholders' Equity 194,253 189,100

Total Liabilities & Shareholders' $ 420,281 $ 400,015 Equity

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

Three Months Ended March 31,

2021

2020

Cash Flows From Operating Activities

Net income

$

7,305

$

16,726

Adjustments to reconcile net income to net cash provided by (used for) operating activities

Depreciation

3,966

3,553

Amortization

1,295

2,271

Non-cash stock-based compensation expense

1,153

653

Gain on disposal of fixed assets

-

(7

)

Gain on sale of notes receivable

-

(11,924

)

Other

(1,288

)

241

Other long-term liabilities

8

(104

)

Cash flows provided by (used for) working capital

Accounts receivable

(10,901

)

(3,524

)

Inventories

(3,861

)

(5,209

)

Prepaid expenses and other current assets

(4,854

)

(218

)

Accounts payable and accrued expenses

13,765

2,569

Net cash provided by (used for) operating activities

6,588

5,027

Cash Flows From Investing Activities

Capital expenditures

(5,238

)

(2,490

)

Acquisition of business

(1,223

)

(691

)

Proceeds from sale of notes receivable

-

1,200

Net cash provided by (used for) investing activities

(6,461

)

(1,981

)

Cash Flows From Financing Activities

Net borrowings from revolving credit facility

33,000

-

Repayments of long-term debt

(40,000

)

-

Payments on finance lease

(40

)

-

Cash dividends paid

(4,906

)

(4,899

)

Proceeds from issuance of common stock

1,900

125

Shares withheld for employee taxes on equity awards

(663

)

(362

)

Deferred financing fees

(1,095

)

-

Net cash provided by (used for) financing activities

(11,804

)

(5,136

)

Foreign exchange rate effect on cash

42

(223

)

Net decrease in cash

(11,635

)

(2,313

)

Cash at January 1

28,301

75,527

Cash at March 31

$

16,666

$

73,214

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)



Three Months Ended March 31,

2021 2020

Cash Flows From Operating Activities

Net income $ 7,305 $ 16,726

Adjustments to reconcile net income to net cash provided by (used for) operating activities

Depreciation 3,966 3,553

Amortization 1,295 2,271

Non-cash stock-based compensation expense 1,153 653

Gain on disposal of fixed assets - (7 )

Gain on sale of notes receivable - (11,924 )

Other (1,288 ) 241

Other long-term liabilities 8 (104 )

Cash flows provided by (used for) working capital

Accounts receivable (10,901 ) (3,524 )

Inventories (3,861 ) (5,209 )

Prepaid expenses and other current assets (4,854 ) (218 )

Accounts payable and accrued expenses 13,765 2,569

Net cash provided by (used for) operating 6,588 5,027 activities

Cash Flows From Investing Activities

Capital expenditures (5,238 ) (2,490 )

Acquisition of business (1,223 ) (691 )

Proceeds from sale of notes receivable - 1,200

Net cash provided by (used for) investing (6,461 ) (1,981 )activities

Cash Flows From Financing Activities

Net borrowings from revolving credit facility 33,000 -

Repayments of long-term debt (40,000 ) -

Payments on finance lease (40 ) -

Cash dividends paid (4,906 ) (4,899 )

Proceeds from issuance of common stock 1,900 125

Shares withheld for employee taxes on equity awards (663 ) (362 )

Deferred financing fees (1,095 ) -

Net cash provided by (used for) financing (11,804 ) (5,136 )activities

Foreign exchange rate effect on cash 42 (223 )

Net decrease in cash (11,635 ) (2,313 )

Cash at January 1 28,301 75,527

Cash at March 31 $ 16,666 $ 73,214

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES - CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

QTD

QTD

March 31, 2021

March 31, 2020

Net cash provided by (used for) operating activities

$

6,588

$

5,027

Capital expenditures

(5,238

)

(2,490

)

Free cash flow

$

1,350

$

2,537

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES - CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)



QTD QTD

March 31, March 31, 2021 2020

Net cash provided by (used for) operating $ 6,588 $ 5,027 activities

Capital expenditures (5,238 ) (2,490 )

Free cash flow $ 1,350 $ 2,537

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED DILUTED EARNINGS PER SHARE

(UNAUDITED)

Full Year 2021 Guidance

Low

High

GAAP diluted net income per common share

$

0.87

$

1.02

Add: Restructuring expenses and other adjustments

0.02

0.02

Add: Acquisition and integration costs

0.01

0.01

Adjusted diluted earnings per share

$

0.90

$

1.05

View source version on businesswire.com: https://www.businesswire.com/news/home/20210506005196/en/

CONTACT: Monica Vinay, Vice President, Investor Relations & Treasurer, (330) 761-6212