Myers Industries Announces Fourth Quarter and Full Year 2023 Results
Self-Help Initiatives and Myers Business System Drive Solid Operating Performance
Company Initiates Fiscal Year 2024 Outlook and Expects Improved Profitability as Compared to Prior Year
Myers to Host Investor & Analyst Day Event in
In reviewing the 2023 financial results, Myers Industries’ President and CEO
Fourth Quarter 2023 Financial Highlights
-
Net sales of
$191.1 million compared to$212.8 million in the prior year period - Gross margin of 30.0%, down 60 basis points versus the prior year period
-
GAAP net income per diluted share of
$0.34 compared to$0.36 in the prior year period -
Adjusted earnings per diluted share of
$0.29 compared to$0.32 in the prior year period -
Cash flow provided by operations was
$15.4 million and free cash flow was$11.8 million
Full Year 2023 Financial Highlights
-
Net sales of
$813.1 million compared to$899.5 million in the prior year period - Gross margin of 31.9%, up 40 basis points versus the prior year period
-
GAAP net income per diluted share of
$1.32 compared to$1.64 in the prior year period -
Adjusted earnings per diluted share of
$1.39 compared to$1.68 in the prior year period -
Cash flow provided by operations was
$86.2 million and free cash flow was$63.3 million - Subsequent to fiscal year end, closed on acquisition of Signature Systems, enhancing Myers' long-term margin and EPS growth profiles
Myers Industries’ President and CEO
“Our Distribution segment performance in 2023 was disappointing and not reflective of our expectations for this business. Our fourth quarter results were unfavorably impacted due to a short-term decline in sales volume and revenue, primarily a transition effect of our Distribution sales organization realignment, which was implemented in the third quarter of 2023. We expect our Distribution segment to demonstrate future revenue growth and improved profitability as we build on the scale and reach achieved from the
“We continue to be excited about the growth and innovation projects in our Material Handling segment, many of which have a long-term growth runway. In particular, we see strong growth opportunities in Military cases, Industrial boxes, and our e-commerce sales channel. We also continue to be pleased with our progress on our Sustainability efforts, as highlighted in our third annual ESG report to be released this week.”
McGaugh continued, “We’ve made another significant step forward in expanding our branded product portfolio, increasing our end-market diversification by acquiring Signature Systems. This business is less cyclical than our traditional portfolio of businesses, but it has similar cash flow generation potential, and it moves us into faster growing markets with greater tail winds. We believe Signature Systems is a catalyst for Myers’ transformation and a growth engine for the Company.”
McGaugh concluded, “In 2023, we continued to improve our company; quite frankly, it is unrecognizable from the one I joined in the spring of 2020. We are confident that the progress we’ve made in our Commercial Excellence and Operational Excellence over the past few years, coupled with our leading brands in diverse end markets and our acquisition of Signature System, will serve as a solid foundation for meaningful shareholder value creation as we advance through our three-horizon strategy.”
Fourth Quarter 2023 Financial Summary
|
|
Quarter Ended |
||||
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
% Inc
|
Net sales |
|
|
|
|
|
(10.2)% |
Gross profit |
|
|
|
|
|
(12.1)% |
Gross margin |
|
30.0% |
|
30.6% |
|
|
Operating income |
|
|
|
|
|
9.3% |
Net income |
|
|
|
|
|
(6.6)% |
Net income per diluted share |
|
|
|
|
|
(5.6)% |
|
|
|
|
|
|
|
Adjusted operating income |
|
|
|
|
|
(3.6)% |
Adjusted net income |
|
|
|
|
|
(7.7)% |
Adjusted earnings per diluted share |
|
|
|
|
|
(9.4)% |
Adjusted EBITDA |
|
|
|
|
|
(1.5)% |
Net sales were
Gross profit decreased
Fourth Quarter 2023 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
|
|
|
Op Income |
|
Op Income Margin |
|
Adj EBITDA |
|
Adj EBITDA Margin |
Q4 2023 Results |
|
|
|
|
23.6% |
|
|
|
22.4% |
Q4 2022 Results |
|
|
|
|
14.7% |
|
|
|
18.0% |
$ Increase (decrease) vs prior year |
( |
|
|
|
|
|
|
|
|
% Increase (decrease) vs prior year |
(10.8)% |
|
43.5% |
|
+890bps |
|
11.2% |
|
+440bps |
Items in this table may not recalculate due to rounding |
Net sales for the Material Handling segment were
Distribution
|
|
|
Op Income |
|
Op Income Margin |
|
Adj EBITDA |
|
Adj EBITDA Margin |
Q4 2023 Results |
|
|
|
|
0.5% |
|
|
|
1.8% |
Q4 2022 Results |
|
|
|
|
4.8% |
|
|
|
7.0% |
$ Increase (decrease) vs prior year |
( |
|
( |
|
|
|
( |
|
|
% Increase (decrease) vs prior year |
(9.1)% |
|
(90.0)% |
|
-430bps |
|
(76.4)% |
|
-520bps |
Items in this table may not recalculate due to rounding |
Net sales for the Distribution segment were
Full Year 2023 Financial Summary
|
Year Ended |
|||||||
(Dollars in thousands, except per share data) |
|
2023 |
|
|
2022 |
|
% Inc
|
|
Net sales |
$ |
813,067 |
|
$ |
899,547 |
|
(9.6 |
)% |
Gross profit |
$ |
259,086 |
|
$ |
283,366 |
|
(8.6 |
)% |
Gross margin |
|
31.9 |
% |
|
31.5 |
% |
|
|
Operating income |
$ |
72,405 |
|
$ |
83,941 |
|
(13.7 |
)% |
Net income |
$ |
48,867 |
|
$ |
60,267 |
|
(18.9 |
)% |
Net income per diluted share |
$ |
1.32 |
|
$ |
1.64 |
|
(19.5 |
)% |
|
|
|
|
|||||
Adjusted operating income |
$ |
75,261 |
|
$ |
87,947 |
|
(14.4 |
)% |
Adjusted net income |
$ |
51,684 |
|
$ |
61,662 |
|
(16.2 |
)% |
Adjusted earnings per diluted share |
$ |
1.39 |
|
$ |
1.68 |
|
(17.3 |
)% |
Adjusted EBITDA |
$ |
98,047 |
|
$ |
109,163 |
|
(10.2 |
)% |
Net sales for the full year of 2023 were
Gross profit decreased
Full Year 2023 Segment Results
(Dollar amounts in the segment tables below are reported in millions)
Material Handling
|
|
|
Op Income |
|
Op Income Margin |
|
Adj EBITDA |
|
Adj EBITDA Margin |
Full Year 2023 Results |
|
|
|
|
18.0% |
|
|
|
20.5% |
Full Year 2022 Results |
|
|
|
|
16.1% |
|
|
|
19.0% |
$ Increase (decrease) vs prior year |
( |
|
( |
|
|
|
( |
|
|
% Increase (decrease) vs prior year |
(14.3)% |
|
(3.8)% |
|
+190bps |
|
(7.4)% |
|
+150bps |
Items in this table may not recalculate due to rounding |
Net sales for the Material Handling segment were
Distribution
|
|
|
Op Income |
|
Op Income Margin |
|
Adj EBITDA |
|
Adj EBITDA Margin |
Full Year 2023 Results |
|
|
|
|
4.3% |
|
|
|
6.2% |
Full Year 2022 Results |
|
|
|
|
6.3% |
|
|
|
7.8% |
$ Increase (decrease) vs prior year |
|
|
( |
|
|
|
( |
|
|
% Increase (decrease) vs prior year |
2.3% |
|
(30.9)% |
|
-200bps |
|
(19.6)% |
|
-160bps |
Items in this table may not recalculate due to rounding |
Net sales for the Distribution segment were
Balance Sheet & Cash Flow
As of
For the fourth quarter of 2023, cash flow provided by operations was
Closing of Previously Announced Acquisition of Signature Systems
On
The cash transaction of
Chief Financial Officer
2024 Investor Day
The Company will host an Investor and Analyst Day on
2024 Outlook
Based on current exchange rates, market outlook, and business forecast, the Company provided the following outlook for fiscal 2024:
- Net sales growth of 15% - 20%
-
Net income per diluted share in the range of
$1.03 to$1.23 * -
Adjusted earnings per diluted share range of
$1.30 to$1.45 * -
Capital expenditures to be in the range of
$35 to$40 million - Effective tax rate to approximate 25%
* Subject to completion of purchase accounting for the
We will continue to monitor market conditions and provide updates as we progress throughout the year
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. Adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), 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
About
Caution on Forward-Looking Statements
Statements in this release include contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; 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
M-INV
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) |
||||||||||||||||
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
191,077 |
|
|
$ |
212,840 |
|
|
$ |
813,067 |
|
|
$ |
899,547 |
|
Cost of sales |
|
|
133,845 |
|
|
|
147,766 |
|
|
|
553,981 |
|
|
|
616,181 |
|
Gross profit |
|
|
57,232 |
|
|
|
65,074 |
|
|
|
259,086 |
|
|
|
283,366 |
|
Selling, general and administrative expenses |
|
|
38,746 |
|
|
|
47,423 |
|
|
|
186,876 |
|
|
|
199,489 |
|
(Gain) loss on disposal of fixed assets |
|
|
(117 |
) |
|
|
26 |
|
|
|
(195 |
) |
|
|
(667 |
) |
Other (income) expenses |
|
|
— |
|
|
|
603 |
|
|
|
— |
|
|
|
603 |
|
Operating income (loss) |
|
|
18,603 |
|
|
|
17,022 |
|
|
|
72,405 |
|
|
|
83,941 |
|
Interest expense, net |
|
|
1,374 |
|
|
|
1,654 |
|
|
|
6,349 |
|
|
|
5,731 |
|
Income (loss) before income taxes |
|
|
17,229 |
|
|
|
15,368 |
|
|
|
66,056 |
|
|
|
78,210 |
|
Income tax expense (benefit) |
|
|
4,690 |
|
|
|
1,940 |
|
|
|
17,189 |
|
|
|
17,943 |
|
Net income (loss) |
|
$ |
12,539 |
|
|
$ |
13,428 |
|
|
$ |
48,867 |
|
|
$ |
60,267 |
|
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.34 |
|
|
$ |
0.37 |
|
|
$ |
1.33 |
|
|
$ |
1.66 |
|
Diluted |
|
$ |
0.34 |
|
|
$ |
0.36 |
|
|
$ |
1.32 |
|
|
$ |
1.64 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
36,840,253 |
|
|
|
36,495,362 |
|
|
|
36,744,560 |
|
|
|
36,411,389 |
|
Diluted |
|
|
37,142,056 |
|
|
|
36,853,237 |
|
|
|
37,095,568 |
|
|
|
36,790,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Dollars in thousands) |
||||||||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current Assets |
|
|
|
|
|
|
||
Cash |
|
$ |
30,290 |
|
|
$ |
23,139 |
|
Trade accounts receivable, net |
|
|
113,907 |
|
|
|
126,184 |
|
Other accounts receivable, net |
|
|
14,726 |
|
|
|
7,532 |
|
Inventories, net |
|
|
90,844 |
|
|
|
93,351 |
|
Other current assets |
|
|
6,854 |
|
|
|
7,001 |
|
Total Current Assets |
|
|
256,621 |
|
|
|
257,207 |
|
Property, plant, & equipment, net |
|
|
107,933 |
|
|
|
101,566 |
|
Right of use asset - operating leases |
|
|
27,989 |
|
|
|
28,908 |
|
Deferred income taxes |
|
|
209 |
|
|
|
129 |
|
Other assets |
|
|
148,879 |
|
|
|
154,824 |
|
Total Assets |
|
$ |
541,631 |
|
|
$ |
542,634 |
|
Liabilities & Shareholders' Equity |
|
|
|
|
|
|
||
Current Liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
79,050 |
|
|
$ |
73,536 |
|
Accrued expenses |
|
|
53,523 |
|
|
|
57,531 |
|
Operating lease liability - short-term |
|
|
5,943 |
|
|
|
6,177 |
|
Finance lease liability - short-term |
|
|
593 |
|
|
|
518 |
|
Long-term debt - current portion |
|
|
25,998 |
|
|
|
- |
|
Total Current Liabilities |
|
|
165,107 |
|
|
|
137,762 |
|
Long-term debt |
|
|
31,989 |
|
|
|
93,962 |
|
Operating lease liability - long-term |
|
|
22,352 |
|
|
|
22,786 |
|
Finance lease liability - long-term |
|
|
8,615 |
|
|
|
8,919 |
|
Other liabilities |
|
|
12,108 |
|
|
|
15,270 |
|
Deferred income taxes |
|
|
8,660 |
|
|
|
7,508 |
|
Total Shareholders' Equity |
|
|
292,800 |
|
|
|
256,427 |
|
Total Liabilities & Shareholders' Equity |
|
$ |
541,631 |
|
|
$ |
542,634 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) |
||||||||||||||||
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
12,539 |
|
|
$ |
13,428 |
|
|
$ |
48,867 |
|
|
$ |
60,267 |
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
5,882 |
|
|
|
5,616 |
|
|
|
22,786 |
|
|
|
21,216 |
|
Amortization of deferred financing costs |
|
|
79 |
|
|
|
78 |
|
|
|
313 |
|
|
|
441 |
|
Non-cash stock-based compensation expense |
|
|
1,593 |
|
|
|
2,268 |
|
|
|
6,671 |
|
|
|
7,436 |
|
(Gain) loss on disposal of fixed assets |
|
|
(117 |
) |
|
|
26 |
|
|
|
(195 |
) |
|
|
(667 |
) |
Deferred taxes |
|
|
1,039 |
|
|
|
2,072 |
|
|
|
1,039 |
|
|
|
2,072 |
|
Other |
|
|
(1,529 |
) |
|
|
1,228 |
|
|
|
944 |
|
|
|
1,520 |
|
Cash flows provided by (used for) working capital |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable - trade and other, net |
|
|
(11,108 |
) |
|
|
(4,874 |
) |
|
|
2,656 |
|
|
|
(23,625 |
) |
Inventories |
|
|
5,535 |
|
|
|
14,971 |
|
|
|
2,630 |
|
|
|
7,955 |
|
Prepaid expenses and other current assets |
|
|
2,204 |
|
|
|
3,503 |
|
|
|
151 |
|
|
|
(1,409 |
) |
Accounts payable and accrued expenses |
|
|
(717 |
) |
|
|
(16,454 |
) |
|
|
310 |
|
|
|
(2,585 |
) |
Net cash provided by (used for) operating activities |
|
|
15,400 |
|
|
|
21,862 |
|
|
|
86,172 |
|
|
|
72,621 |
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(3,563 |
) |
|
|
(6,677 |
) |
|
|
(22,855 |
) |
|
|
(24,292 |
) |
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
(3,373 |
) |
|
|
(160 |
) |
|
|
(27,626 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
116 |
|
|
|
12 |
|
|
|
258 |
|
|
|
1,537 |
|
Net cash provided by (used for) investing activities |
|
|
(3,447 |
) |
|
|
(10,038 |
) |
|
|
(22,757 |
) |
|
|
(50,381 |
) |
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net borrowings (repayments) from revolving credit facility |
|
|
(2,000 |
) |
|
|
(4,000 |
) |
|
|
(36,000 |
) |
|
|
3,000 |
|
Payments on finance lease |
|
|
(139 |
) |
|
|
(126 |
) |
|
|
(542 |
) |
|
|
(500 |
) |
Cash dividends paid |
|
|
(4,974 |
) |
|
|
(4,925 |
) |
|
|
(20,240 |
) |
|
|
(19,797 |
) |
Proceeds from issuance of common stock |
|
|
390 |
|
|
|
261 |
|
|
|
2,338 |
|
|
|
2,320 |
|
Shares withheld for employee taxes on equity awards |
|
|
(17 |
) |
|
|
(1 |
) |
|
|
(2,072 |
) |
|
|
(451 |
) |
Deferred financing fees |
|
|
— |
|
|
|
(171 |
) |
|
|
— |
|
|
|
(889 |
) |
Net cash provided by (used for) financing activities |
|
|
(6,740 |
) |
|
|
(8,962 |
) |
|
|
(56,516 |
) |
|
|
(16,317 |
) |
Foreign exchange rate effect on cash |
|
|
309 |
|
|
|
(147 |
) |
|
|
252 |
|
|
|
(439 |
) |
Net increase (decrease) in cash |
|
|
5,522 |
|
|
|
2,715 |
|
|
|
7,151 |
|
|
|
5,484 |
|
Beginning Cash |
|
|
24,768 |
|
|
|
20,424 |
|
|
|
23,139 |
|
|
|
17,655 |
|
Ending Cash |
|
$ |
30,290 |
|
|
$ |
23,139 |
|
|
$ |
30,290 |
|
|
$ |
23,139 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) |
|||||||||||||||
|
Quarter Ended |
|
|||||||||||||
|
Material Handling |
|
Distribution |
|
Segment Total |
|
Corporate & Other |
|
Total |
|
|||||
Net sales |
$ |
126,918 |
|
$ |
64,182 |
|
$ |
191,100 |
|
$ |
(23 |
) |
$ |
191,077 |
|
Net income |
|
|
|
|
|
|
|
|
|
12,539 |
|
||||
Net income margin |
|
|
|
|
|
|
|
|
|
6.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
57,232 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
240 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
57,472 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
30.1 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
29,931 |
|
|
339 |
|
|
30,270 |
|
|
(11,667 |
) |
|
18,603 |
|
Operating income margin |
|
23.6 |
% |
|
0.5 |
% |
|
15.8 |
% |
n/a |
|
|
9.7 |
% |
|
Add: Restructuring expenses and other adjustments |
|
231 |
|
|
61 |
|
|
292 |
|
|
— |
|
|
292 |
|
Add: Acquisition and integration costs |
|
— |
|
|
79 |
|
|
79 |
|
|
2,619 |
|
|
2,698 |
|
Less: Insurance recovery of legal fees(3) |
|
(6,700 |
) |
|
— |
|
|
(6,700 |
) |
|
— |
|
|
(6,700 |
) |
Add: Environmental reserves, net(2) |
|
— |
|
|
— |
|
|
— |
|
|
1,000 |
|
|
1,000 |
|
Adjusted operating income (loss)(1) |
|
23,462 |
|
|
479 |
|
|
23,941 |
|
|
(8,048 |
) |
|
15,893 |
|
Adjusted operating income margin |
|
18.5 |
% |
|
0.7 |
% |
|
12.5 |
% |
n/a |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Add: Depreciation and amortization |
|
4,922 |
|
|
692 |
|
|
5,614 |
|
|
268 |
|
|
5,882 |
|
Adjusted EBITDA |
$ |
28,384 |
|
$ |
1,171 |
|
$ |
29,555 |
|
$ |
(7,780 |
) |
$ |
21,775 |
|
Adjusted EBITDA margin |
|
22.4 |
% |
|
1.8 |
% |
|
15.5 |
% |
n/a |
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Includes gross profit adjustments of |
|
||||||||||||||
(2) Includes environmental charges of |
|
||||||||||||||
(3) Includes total insurance recovery of |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Quarter Ended |
|
|||||||||||||
|
Material Handling |
|
Distribution |
|
Segment Total |
|
Corporate & Other |
|
Total |
|
|||||
Net sales |
$ |
142,235 |
|
$ |
70,614 |
|
$ |
212,849 |
|
$ |
(9 |
) |
$ |
212,840 |
|
Net income |
|
|
|
|
|
|
|
|
|
13,428 |
|
||||
Net income margin |
|
|
|
|
|
|
|
|
|
6.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
65,074 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
94 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
65,168 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
30.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
20,863 |
|
|
3,393 |
|
|
24,256 |
|
|
(7,234 |
) |
|
17,022 |
|
Operating income margin |
|
14.7 |
% |
|
4.8 |
% |
|
11.4 |
% |
n/a |
|
|
8.0 |
% |
|
Add: Restructuring expenses and other adjustments |
|
94 |
|
|
— |
|
|
94 |
|
|
— |
|
|
94 |
|
Add: Acquisition and integration costs |
|
— |
|
|
106 |
|
|
106 |
|
|
60 |
|
|
166 |
|
Add: Impairment of investment in legacy joint venture |
|
— |
|
|
603 |
|
|
603 |
|
|
— |
|
|
603 |
|
Less: Environmental reserves, net(2) |
|
— |
|
|
— |
|
|
— |
|
|
(1,400 |
) |
|
(1,400 |
) |
Adjusted operating income (loss)(1) |
|
20,957 |
|
|
4,102 |
|
|
25,059 |
|
|
(8,574 |
) |
|
16,485 |
|
Adjusted operating income margin |
|
14.7 |
% |
|
5.8 |
% |
|
11.8 |
% |
n/a |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Add: Depreciation and amortization |
|
4,575 |
|
|
860 |
|
|
5,435 |
|
|
181 |
|
|
5,616 |
|
Adjusted EBITDA |
$ |
25,532 |
|
$ |
4,962 |
|
$ |
30,494 |
|
$ |
(8,393 |
) |
$ |
22,101 |
|
Adjusted EBITDA margin |
|
18.0 |
% |
|
7.0 |
% |
|
14.3 |
% |
n/a |
|
|
10.4 |
% |
|
|
|
||||||||||||||
(1) Includes gross profit adjustments of |
|||||||||||||||
(2) Includes environmental charges of |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) |
||||||||||||||||||||
|
|
Year Ended |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
555,259 |
|
|
$ |
257,875 |
|
|
$ |
813,134 |
|
|
$ |
(67 |
) |
|
$ |
813,067 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,867 |
|
||||
Net income margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259,086 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
829 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259,915 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
100,088 |
|
|
|
10,967 |
|
|
|
111,055 |
|
|
|
(38,650 |
) |
|
|
72,405 |
|
Operating income margin |
|
|
18.0 |
% |
|
|
4.3 |
% |
|
|
13.7 |
% |
|
n/a |
|
|
|
8.9 |
% |
|
Add: Executive severance costs |
|
|
— |
|
|
|
410 |
|
|
|
410 |
|
|
|
289 |
|
|
|
699 |
|
Add: Restructuring expenses and other adjustments |
|
|
1,456 |
|
|
|
914 |
|
|
|
2,370 |
|
|
|
166 |
|
|
|
2,536 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
376 |
|
|
|
376 |
|
|
|
2,745 |
|
|
|
3,121 |
|
Less: Insurance recovery of legal fees(3) |
|
|
(6,700 |
) |
|
|
— |
|
|
|
(6,700 |
) |
|
|
— |
|
|
|
(6,700 |
) |
Add: Environmental reserves, net(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,200 |
|
|
|
3,200 |
|
Adjusted operating income (loss)(1) |
|
|
94,844 |
|
|
|
12,667 |
|
|
|
107,511 |
|
|
|
(32,250 |
) |
|
|
75,261 |
|
Adjusted operating income margin |
|
|
17.1 |
% |
|
|
4.9 |
% |
|
|
13.2 |
% |
|
n/a |
|
|
|
9.3 |
% |
|
Add: Depreciation and amortization |
|
|
18,917 |
|
|
|
3,197 |
|
|
|
22,114 |
|
|
|
672 |
|
|
|
22,786 |
|
Adjusted EBITDA |
|
$ |
113,761 |
|
|
$ |
15,864 |
|
|
$ |
129,625 |
|
|
$ |
(31,578 |
) |
|
$ |
98,047 |
|
Adjusted EBITDA margin |
|
|
20.5 |
% |
|
|
6.2 |
% |
|
|
15.9 |
% |
|
n/a |
|
|
|
12.1 |
% |
|
|
|
|||||||||||||||||||
(1) Includes gross profit adjustments of |
|
|||||||||||||||||||
(2) Includes environmental charges of |
|
|||||||||||||||||||
(3) Includes total insurance recovery of |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Year Ended |
|
|||||||||||||||||
|
|
Material Handling |
|
|
Distribution |
|
|
Segment Total |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net sales |
|
$ |
647,619 |
|
|
$ |
251,966 |
|
|
$ |
899,585 |
|
|
$ |
(38 |
) |
|
$ |
899,547 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,267 |
|
||||
Net income margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.7 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
283,366 |
|
||||
Add: Restructuring expenses and other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
744 |
|
||||
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
284,110 |
|
||||
Gross margin as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
104,079 |
|
|
|
15,862 |
|
|
|
119,941 |
|
|
|
(36,000 |
) |
|
|
83,941 |
|
Operating income margin |
|
|
16.1 |
% |
|
|
6.3 |
% |
|
|
13.3 |
% |
|
n/a |
|
|
|
9.3 |
% |
|
Add: Restructuring expenses and other adjustments |
|
|
744 |
|
|
|
— |
|
|
|
744 |
|
|
|
— |
|
|
|
744 |
|
Add: Acquisition and integration costs |
|
|
— |
|
|
|
377 |
|
|
|
377 |
|
|
|
621 |
|
|
|
998 |
|
Add: Loss on sale of assets |
|
|
261 |
|
|
|
— |
|
|
|
261 |
|
|
|
— |
|
|
|
261 |
|
Add: Impairment of investment in legacy joint venture |
|
|
— |
|
|
|
603 |
|
|
|
603 |
|
|
|
— |
|
|
|
603 |
|
Add: Environmental reserves, net(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,400 |
|
|
|
1,400 |
|
Adjusted operating income (loss)(1) |
|
|
105,084 |
|
|
|
16,842 |
|
|
|
121,926 |
|
|
|
(33,979 |
) |
|
|
87,947 |
|
Adjusted operating income margin |
|
|
16.2 |
% |
|
|
6.7 |
% |
|
|
13.6 |
% |
|
n/a |
|
|
|
9.8 |
% |
|
Add: Depreciation and amortization |
|
|
17,814 |
|
|
|
2,889 |
|
|
|
20,703 |
|
|
|
513 |
|
|
|
21,216 |
|
Adjusted EBITDA |
|
$ |
122,898 |
|
|
$ |
19,731 |
|
|
$ |
142,629 |
|
|
$ |
(33,466 |
) |
|
$ |
109,163 |
|
Adjusted EBITDA margin |
|
|
19.0 |
% |
|
|
7.8 |
% |
|
|
15.9 |
% |
|
n/a |
|
|
|
12.1 |
% |
|
|
|
|||||||||||||||||||
(1) Includes gross profit adjustments of |
|
|||||||||||||||||||
(2) Includes environmental charges of |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED) (Dollars in thousands) |
||||||||||||||||
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Adjusted operating income (loss) reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
$ |
18,603 |
|
|
$ |
17,022 |
|
|
$ |
72,405 |
|
|
$ |
83,941 |
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
699 |
|
|
|
— |
|
Restructuring expenses and other adjustments |
|
|
292 |
|
|
|
94 |
|
|
|
2,536 |
|
|
|
744 |
|
Acquisition and integration costs |
|
|
2,698 |
|
|
|
166 |
|
|
|
3,121 |
|
|
|
998 |
|
Insurance recovery of legal fees |
|
|
(6,700 |
) |
|
|
— |
|
|
|
(6,700 |
) |
|
|
— |
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
Impairment of investment in legacy joint venture |
|
|
— |
|
|
|
603 |
|
|
|
— |
|
|
|
603 |
|
Environmental reserves, net |
|
|
1,000 |
|
|
|
(1,400 |
) |
|
|
3,200 |
|
|
|
1,400 |
|
Adjusted operating income (loss) |
|
$ |
15,893 |
|
|
$ |
16,485 |
|
|
$ |
75,261 |
|
|
$ |
87,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
12,539 |
|
|
$ |
13,428 |
|
|
$ |
48,867 |
|
|
$ |
60,267 |
|
Income tax expense (benefit) |
|
|
4,690 |
|
|
|
1,940 |
|
|
|
17,189 |
|
|
|
17,943 |
|
Interest expense, net |
|
|
1,374 |
|
|
|
1,654 |
|
|
|
6,349 |
|
|
|
5,731 |
|
Operating income (loss) |
|
|
18,603 |
|
|
|
17,022 |
|
|
|
72,405 |
|
|
|
83,941 |
|
Depreciation and amortization |
|
|
5,882 |
|
|
|
5,616 |
|
|
|
22,786 |
|
|
|
21,216 |
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
699 |
|
|
|
— |
|
Restructuring expenses and other adjustments |
|
|
292 |
|
|
|
94 |
|
|
|
2,536 |
|
|
|
744 |
|
Acquisition and integration costs |
|
|
2,698 |
|
|
|
166 |
|
|
|
3,121 |
|
|
|
998 |
|
Insurance recovery of legal fees |
|
|
(6,700 |
) |
|
|
— |
|
|
|
(6,700 |
) |
|
|
— |
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
Impairment of investment in legacy joint venture |
|
|
— |
|
|
|
603 |
|
|
|
— |
|
|
|
603 |
|
Environmental reserves, net |
|
|
1,000 |
|
|
|
(1,400 |
) |
|
|
3,200 |
|
|
|
1,400 |
|
Adjusted EBITDA |
|
$ |
21,775 |
|
|
$ |
22,101 |
|
|
$ |
98,047 |
|
|
$ |
109,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Free cash flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by (used for) operating activities |
|
$ |
15,400 |
|
|
$ |
21,862 |
|
|
$ |
86,172 |
|
|
$ |
72,621 |
|
Capital expenditures |
|
|
(3,563 |
) |
|
|
(6,677 |
) |
|
|
(22,855 |
) |
|
|
(24,292 |
) |
Free cash flow |
|
$ |
11,837 |
|
|
$ |
15,185 |
|
|
$ |
63,317 |
|
|
$ |
48,329 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data) |
|||||||||||||||||
|
|
Quarter Ended |
|
|
Year Ended |
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
||||
Adjusted net income (loss) reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
12,539 |
|
|
$ |
13,428 |
|
|
$ |
48,867 |
|
|
$ |
60,267 |
|
|
Income tax expense (benefit) |
|
|
4,690 |
|
|
|
1,940 |
|
|
|
17,189 |
|
|
|
17,943 |
|
|
Income (loss) before income taxes |
|
|
17,229 |
|
|
|
15,368 |
|
|
|
66,056 |
|
|
|
78,210 |
|
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
699 |
|
|
|
— |
|
|
Restructuring expenses and other adjustments |
|
|
292 |
|
|
|
94 |
|
|
|
2,536 |
|
|
|
744 |
|
|
Acquisition and integration costs |
|
|
2,698 |
|
|
|
166 |
|
|
|
3,121 |
|
|
|
998 |
|
|
Insurance recovery of legal fees |
|
|
(6,700 |
) |
|
|
— |
|
|
|
(6,700 |
) |
|
|
— |
|
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
|
Impairment of investment in legacy joint venture |
|
|
— |
|
|
|
603 |
|
|
|
— |
|
|
|
603 |
|
|
Environmental reserves, net |
|
|
1,000 |
|
|
|
(1,400 |
) |
|
|
3,200 |
|
|
|
1,400 |
|
|
Adjusted income (loss) before income taxes |
|
|
14,519 |
|
|
|
14,831 |
|
|
|
68,912 |
|
|
|
82,216 |
|
|
Income tax expense, as adjusted (1) |
|
|
(3,630 |
) |
|
|
(3,034 |
) |
|
|
(17,228 |
) |
|
|
(20,554 |
) |
|
Adjusted net income (loss) |
|
$ |
10,889 |
|
|
$ |
11,797 |
|
|
$ |
51,684 |
|
|
$ |
61,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted earnings per diluted share reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) per common diluted share |
|
$ |
0.34 |
|
|
$ |
0.36 |
|
|
$ |
1.32 |
|
|
$ |
1.64 |
|
|
Executive severance costs |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
Restructuring expenses and other adjustments |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
Acquisition and integration costs |
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.03 |
|
|
Insurance recovery of legal fees |
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.18 |
) |
|
|
— |
|
|
Loss on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
Impairment of investment in legacy joint venture |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
Environmental reserves, net |
|
|
0.03 |
|
|
|
(0.04 |
) |
|
|
0.09 |
|
|
|
0.04 |
|
|
Adjusted effective income tax rate impact |
|
|
0.03 |
|
|
|
(0.03 |
) |
|
|
(0.00 |
) |
|
|
(0.07 |
) |
|
Adjusted earnings per diluted share(2) |
|
$ |
0.29 |
|
|
$ |
0.32 |
|
|
$ |
1.39 |
|
|
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Items in this table may not recalculate due to rounding |
|
|
|||||||||||||||
(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2023 is 25% and in 2022 is 25%. |
|||||||||||||||||
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) |
|||||||
|
Full Year 2024 Guidance |
|
|||||
|
Low |
|
|
High |
|
||
GAAP diluted net income per common share |
$ |
1.03 |
|
|
$ |
1.23 |
|
Add: Net restructuring expenses and other adjustments |
|
0.04 |
|
|
|
0.04 |
|
Add: Acquisition and integration costs |
|
0.32 |
|
|
|
0.26 |
|
Less: Adjusted effective income tax rate impact (1) |
|
(0.09 |
) |
|
|
(0.08 |
) |
Adjusted earnings per diluted share (2) |
$ |
1.30 |
|
|
$ |
1.45 |
|
|
|
|
|
|
|
||
(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2024 is 25%. |
|
||||||
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305108379/en/
Source: