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Sep 30, 2023

Myers Industries Q3 2023 Earnings Report

Reported mixed results with revenue decline offset by gross margin expansion and debt reduction.

Key Takeaways

Myers Industries reported a decrease in net sales by 13.3% to $197.8 million, but expanded gross margin by 10 basis points to 31.5%. GAAP net income per diluted share was $0.34, while adjusted earnings per diluted share were $0.38. The company generated $18.1 million in free cash flow and reduced debt.

Net sales decreased by 13.3% year-over-year to $197.8 million.

Gross margin increased by 10 basis points year-over-year to 31.5%.

GAAP net income per diluted share was $0.34, compared to $0.37 in the prior year period.

Free cash flow was $18.1 million for the quarter.

Total Revenue
$198M
Previous year: $228M
-13.3%
EPS
$0.38
Previous year: $0.41
-7.3%
Gross Margin
31.5%
Previous year: 31.4%
+0.3%
Gross Profit
$62.4M
Previous year: $71.6M
-12.9%
Cash and Equivalents
$24.8M
Previous year: $20.4M
+21.3%
Free Cash Flow
$18.1M
Previous year: $9.8M
+84.7%
Total Assets
$531M
Previous year: $550M
-3.4%

Myers Industries

Myers Industries

Myers Industries Revenue by Segment

Forward Guidance

The Company revised its outlook for fiscal 2023, and currently forecasts: Net sales decline in the mid to high single digit range, Net income per diluted share in the range of $1.20 to $1.28, lowered adjusted earnings per diluted share range of $1.35 to $1.40, Capital expenditures to be in the range of $25 to $30 million and Effective tax rate to approximate 25%.

Positive Outlook

  • Net sales decline in the mid to high single digit range
  • Net income per diluted share in the range of $1.20 to $1.28
  • Lowered adjusted earnings per diluted share range of $1.35 to $1.40
  • Capital expenditures to be in the range of $25 to $30 million
  • Effective tax rate to approximate 25%

Revenue & Expenses

Visualization of income flow from segment revenue to net income