In This Article:
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Net Sales: $205.1 million, a 3.7% increase compared to Q3 2023.
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Adjusted Gross Profit: $66.3 million, a 5.8% increase from Q3 2023.
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Adjusted Gross Margin: 32.4%, up from 31.7% in 2023.
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SG&A Expenses: $47.7 million, a 9.1% increase year-over-year.
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Operating Income: Loss of $4.8 million compared to $18.7 million in Q3 2023.
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Adjusted Operating Income: $20.5 million, up from $20 million in Q3 2023.
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Adjusted EBITDA: $30.7 million, up from $25.6 million in the prior year quarter.
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Adjusted EBITDA Margin: 15%, compared to 13% in Q3 2023.
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Diluted Adjusted EPS: $0.25, down from $0.38 in Q3 2023.
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Material Handling Segment Sales: Increased by 13.8% to $18.2 million.
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Distribution Segment Sales: Decreased by 16.8% to $54.4 million.
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Free Cash Flow: $10.1 million, down from $18.1 million in Q3 2023.
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Capital Expenditures: $7.2 million for the quarter.
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Debt Paydown: $13 million during the quarter.
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Updated Full-Year Guidance: Adjusted EPS range of $0.92 to $1.02.
Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The acquisition of Signature Systems and strong performance from Scepter contributed to sales, gross margin, and adjusted EBITDA growth.
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Scepter sales increased by about 60% year-over-year, driven by military contracts and hurricane recovery efforts.
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The company is implementing cost-cutting initiatives expected to yield $15 million in annualized savings, in addition to previously announced savings plans.
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Myers Industries Inc (NYSE:MYE) paid down $13 million in debt during the quarter, demonstrating a commitment to reducing leverage.
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The e-commerce channel is growing faster than the industry average, supporting future growth for Myers Industries Inc (NYSE:MYE).
Negative Points
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Demand headwinds persist in several end markets, including recreational vehicles, marine, and automotive aftermarket.
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Reduced demand in the food and beverage end market as customers delay capital spending due to macroeconomic conditions.
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Operating income decreased to a loss of $4.8 million compared to $18.7 million in Q3 2023, primarily due to a $22 million non-cash goodwill impairment charge.
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Net sales for the distribution segment decreased by 16.8% year-over-year, driven by lower volume and pricing.
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The company reduced its full-year guidance for adjusted earnings per diluted share, reflecting softer demand in several end markets.
Q & A Highlights
Q: As the new Interim CEO, what have you been focusing on, and where do you see the biggest impact? A: Dave Basque, Interim President and CEO, stated that the focus has been on growing the company's power brands and optimizing costs, particularly in the engineered products business. Plans are being developed to achieve these objectives.