Myers Industries Inc., a manufacturer of polymer and metal products and distributor for tire, wheel and under-vehicle service industry, announced results for the third quarter ended Sept. 30.
Third Quarter 2024 Financial Highlights
- Net sales of $205.1 million compared with $197.8 million in the prior-year period
- Net income (loss) of $(10.9) million, compared to $12.7 million in the prior-year period inclusive of a non-cash goodwill impairment charge of $22.0 million
- Adjusted EBITDA of $30.7 million, compared to $25.6 million in the prior-year period
- GAAP gross margin of 31.8%, up 30 basis points versus the prior-year period
- Adjusted gross margin of 32.4%, up 70 basis points versus the prior-year period
- GAAP net income (loss) per diluted share of $(0.29) compared with $0.34 in the prior-year period
- Adjusted earnings per diluted share of $0.25 compared with $0.38 in the prior-year period
- Cash flow provided by operations of $17.3 million and free cash flow of $10.1 million
- Additional debt paydown of $13 million
Dave Basque, Myers Industries interim president and CEO, said, “This quarter’s results were driven by continued strong performance from our Signature Systems acquisition, growth in our military end market, the initial benefits of our cost cutting initiatives and reduced variable compensation. These benefits mitigated some broader macro-economic challenges in the RV and marine and new headwinds in the food and beverage end markets.
“During the quarter, we diligently focused on our cost containment actions which we now estimate will lead to an additional $15 million in annualized cost savings. These cost savings are incremental to our original target of $7 million to $9 million and are expected to be driven by labor savings, manufacturing efficiencies, continued footprint optimization and other savings initiatives. We will continue to implement cost actions to help mitigate the impact of revenue headwinds in key end markets.
“We have taken additional action to address the underperformance of our distribution business, starting with naming Jeff Baker as president, distribution. Since assuming this role on Sept. 30, Jeff and his team have systematically identified plans to close sales coverage gaps and win back customers, add digital sales channels, improve the customer experience and implement further efficiency improvements.
“We are updating our outlook and expect full year adjusted earnings per share to be in the range of $0.92 to $1.02. We continue to have confidence in the growth and earnings potential of our four power brands as demand recovers in affected end markets, and we remain focused on improving operations in the near-term to navigate choppy macro-economic conditions.”
View the full report here.
