In This Article:
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Net Sales: $206.8 million, flat year over year.
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Adjusted Gross Margin: Increased 80 basis points to 33.5%.
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Adjusted Operating Income: Improved to $18.7 million, with a margin of 9% of sales.
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Adjusted EBITDA Margin: Expanded 170 basis points.
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Diluted Adjusted EPS: $0.22, up from $0.21 in 2024.
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Material Handling Net Sales: Increased 3.6% year over year.
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Material Handling Adjusted EBITDA: Increased 11.7% to $36.3 million, with a 160 basis point increase in margin to 23%.
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Distribution Net Sales: Decreased 10.3% due to lower volume and pricing.
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Operating Cash Flow: Lower due to increased working capital.
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CapEx: $8.1 million allocated for organic growth.
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Total Liquidity: $267 million, including $231.7 million under revolving credit and $35.3 million cash on hand.
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Share Repurchase: $1 million in shares repurchased, with $9 million remaining under authorization.
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Net Leverage Ratio: 2.8 times, targeting 1.5 to 2.5 times.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Myers Industries Inc (NYSE:MYE) reported improved margins due to effective cost control, leading to an increase in EPS.
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The company achieved $12 million in cost synergies from the Signature acquisition, surpassing the initial target of $8 million.
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Myers Industries Inc (NYSE:MYE) has a predominantly US-based supply chain, providing resilience against tariff-driven disruptions.
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The Focused Transformation program is showing early signs of improvement, with a commitment to $20 million in annualized cost savings by year-end 2025.
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The company launched a $10 million share repurchase plan, demonstrating a commitment to returning cash to shareholders.
Negative Points
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First quarter revenue was flat year over year, with growth in Material Handling offset by softness in the Distribution segment.
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Free cash flow was lower than expected due to increased working capital and inventory build-up in anticipation of tariffs.
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The Distribution segment experienced a 10.3% decrease in net sales due to lower volume and pricing.
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The Vehicle end market, including RV and marine, is expected to decline due to economic uncertainty and tariff impacts.
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Operating cash flow was negatively impacted by timing issues with accounts receivable and proactive inventory purchases.
Q & A Highlights
Q: Can you provide more details on the impact of tariffs on your Distribution business and how price-sensitive your customers are? A: Dan Hoehn, Vice President & Corporate Controller, explained that the Central America piece is a small part of the Distribution business, so tariffs are not expected to have a material effect. Customers are price-sensitive, but Myers is prepared to adjust pricing and has alternative suppliers to mitigate impacts. Aaron Schapper, CEO, added that they are in a good position with their supply chain and pricing strategies.