MARCH 9, 2017 – FOURTH QUARTER & FULL YEAR EARNINGS PRESENTATION MYERS INDUSTRIES, INC.
MYERS INDUSTRIES, INC.s2.q4cdn.com/555961355/files/doc_presentations/2016/Q4... · 2017-03-09 · Statements in this presentation concerning the Company’s goals, strategies,
MARCH 9 2017 ndash FOURTH QUARTER amp FULL YEAR EARNINGS PRESENTATION MYERS INDUSTRIES INC
SAFE HARBOR STATEMENT
Statements in this presentation concerning the Companyrsquos goals strategies and expectations for business and financial results may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators and expectations Any statement that is not of historical fact may be deemed ldquoforward-lookingrdquo Words such as ldquoexpectrdquo ldquobelieverdquo ldquoprojectrdquo ldquoplanrdquo ldquoanticipaterdquo ldquointendrdquo ldquoobjectiverdquo ldquogoalrdquo ldquoviewrdquo and similar expressions identify forward-looking statements These statements are based on managementrsquos current views and assumptions of future events and financial performance and involve a number of risks and uncertainties many outside the Companyrsquos control that could cause actual results to materially differ from those expressed or implied You are cautioned not to put undue reliance on any forward-looking statement We do not intend and undertake no obligation to update these forward-looking statements Such risks include (1) Raw material availability increases in raw material costs or other production costs (2) Risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives (3) Unanticipated downturn in business relationships with customers or their purchases (4) Competitive pressures on sales and pricing (5) Changes in the markets for the Companyrsquos business segments (6) Changes in trends and demands in the markets in which the Company competes (7) Unexpected failures at our manufacturing facilities (8) Future economic and financial conditions in the United States and around the world (9) Inability of the Company to meet future capital requirements (10) Claims litigation and regulatory actions against the Company (11) Changes in laws and regulations affecting the Company (12) Other risks as detailed in the Companyrsquos 10-K and other reports filed with the Securities Exchange Commission Myers Industries Inc encourages investors to learn more about these risk factors A detailed explanation of these factors is available in the Companyrsquos publicly filed quarterly and annual reports which can be found online at wwwmyersindustriescom and at the SECgov web site
Statements in this presentation speak only as of the date made
Free cash flow calculated as cash flow from continuing operations less capital expenditures
$045
$005
2015
2016
Diluted EPS
$6015
$5581
2015
2016
Net Sales
5
2016 FINANCIAL SUMMARY ndash GAAP REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
$1783
$1646
2015
2016
Gross Profit
$309
$162
2015
2016
Operating Income
$1474
$1386
2015
2016
SGampA Expenses Sales
248
245
Sales
295
296
Sales
29
51
Operating income declined $147MM bull Lower gross profit $14MM bull Favorable SGampA $9MM bull Impairment charge $10MM mostly Brazil
SGampA decreased $88MM bull Cost reductions at both the segment and corporate level bull One-time costs $1MM lower YOY
Net sales declined 72 67 at constant currency bull Material Handling down $26MM (64) bull Distribution down $17MM (90)
Gross profit declined $137MM flat as of sales bull Lower volumemix bull Operational inefficiencies bull One-time costs $16MM lower due to prior year restructuring
6
2016 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$057
$044
2015
2016
Adj Diluted EPS
$6015
$5581
2015
2016
Net Sales
$1799
$1647
2015
2016
Adj Gross Profit
Adjusted Gross Profit declined $152MM 40 bps bull Lower sales volume and an unfavorable product mix due to the
decrease in Agriculture sales bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 72 67 at constant currency bull Material Handling down $26MM driven by lower Agriculture sales bull Distribution down $17MM due to lower sales of equipment and
Adj SGampA declined $79M bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
243
238
Sales
295
299
Sales
52
61
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
SAFE HARBOR STATEMENT
Statements in this presentation concerning the Companyrsquos goals strategies and expectations for business and financial results may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators and expectations Any statement that is not of historical fact may be deemed ldquoforward-lookingrdquo Words such as ldquoexpectrdquo ldquobelieverdquo ldquoprojectrdquo ldquoplanrdquo ldquoanticipaterdquo ldquointendrdquo ldquoobjectiverdquo ldquogoalrdquo ldquoviewrdquo and similar expressions identify forward-looking statements These statements are based on managementrsquos current views and assumptions of future events and financial performance and involve a number of risks and uncertainties many outside the Companyrsquos control that could cause actual results to materially differ from those expressed or implied You are cautioned not to put undue reliance on any forward-looking statement We do not intend and undertake no obligation to update these forward-looking statements Such risks include (1) Raw material availability increases in raw material costs or other production costs (2) Risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives (3) Unanticipated downturn in business relationships with customers or their purchases (4) Competitive pressures on sales and pricing (5) Changes in the markets for the Companyrsquos business segments (6) Changes in trends and demands in the markets in which the Company competes (7) Unexpected failures at our manufacturing facilities (8) Future economic and financial conditions in the United States and around the world (9) Inability of the Company to meet future capital requirements (10) Claims litigation and regulatory actions against the Company (11) Changes in laws and regulations affecting the Company (12) Other risks as detailed in the Companyrsquos 10-K and other reports filed with the Securities Exchange Commission Myers Industries Inc encourages investors to learn more about these risk factors A detailed explanation of these factors is available in the Companyrsquos publicly filed quarterly and annual reports which can be found online at wwwmyersindustriescom and at the SECgov web site
Statements in this presentation speak only as of the date made
Free cash flow calculated as cash flow from continuing operations less capital expenditures
$045
$005
2015
2016
Diluted EPS
$6015
$5581
2015
2016
Net Sales
5
2016 FINANCIAL SUMMARY ndash GAAP REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
$1783
$1646
2015
2016
Gross Profit
$309
$162
2015
2016
Operating Income
$1474
$1386
2015
2016
SGampA Expenses Sales
248
245
Sales
295
296
Sales
29
51
Operating income declined $147MM bull Lower gross profit $14MM bull Favorable SGampA $9MM bull Impairment charge $10MM mostly Brazil
SGampA decreased $88MM bull Cost reductions at both the segment and corporate level bull One-time costs $1MM lower YOY
Net sales declined 72 67 at constant currency bull Material Handling down $26MM (64) bull Distribution down $17MM (90)
Gross profit declined $137MM flat as of sales bull Lower volumemix bull Operational inefficiencies bull One-time costs $16MM lower due to prior year restructuring
6
2016 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$057
$044
2015
2016
Adj Diluted EPS
$6015
$5581
2015
2016
Net Sales
$1799
$1647
2015
2016
Adj Gross Profit
Adjusted Gross Profit declined $152MM 40 bps bull Lower sales volume and an unfavorable product mix due to the
decrease in Agriculture sales bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 72 67 at constant currency bull Material Handling down $26MM driven by lower Agriculture sales bull Distribution down $17MM due to lower sales of equipment and
Adj SGampA declined $79M bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
243
238
Sales
295
299
Sales
52
61
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Free cash flow calculated as cash flow from continuing operations less capital expenditures
$045
$005
2015
2016
Diluted EPS
$6015
$5581
2015
2016
Net Sales
5
2016 FINANCIAL SUMMARY ndash GAAP REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
$1783
$1646
2015
2016
Gross Profit
$309
$162
2015
2016
Operating Income
$1474
$1386
2015
2016
SGampA Expenses Sales
248
245
Sales
295
296
Sales
29
51
Operating income declined $147MM bull Lower gross profit $14MM bull Favorable SGampA $9MM bull Impairment charge $10MM mostly Brazil
SGampA decreased $88MM bull Cost reductions at both the segment and corporate level bull One-time costs $1MM lower YOY
Net sales declined 72 67 at constant currency bull Material Handling down $26MM (64) bull Distribution down $17MM (90)
Gross profit declined $137MM flat as of sales bull Lower volumemix bull Operational inefficiencies bull One-time costs $16MM lower due to prior year restructuring
6
2016 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$057
$044
2015
2016
Adj Diluted EPS
$6015
$5581
2015
2016
Net Sales
$1799
$1647
2015
2016
Adj Gross Profit
Adjusted Gross Profit declined $152MM 40 bps bull Lower sales volume and an unfavorable product mix due to the
decrease in Agriculture sales bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 72 67 at constant currency bull Material Handling down $26MM driven by lower Agriculture sales bull Distribution down $17MM due to lower sales of equipment and
Adj SGampA declined $79M bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
243
238
Sales
295
299
Sales
52
61
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Free cash flow calculated as cash flow from continuing operations less capital expenditures
$045
$005
2015
2016
Diluted EPS
$6015
$5581
2015
2016
Net Sales
5
2016 FINANCIAL SUMMARY ndash GAAP REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
$1783
$1646
2015
2016
Gross Profit
$309
$162
2015
2016
Operating Income
$1474
$1386
2015
2016
SGampA Expenses Sales
248
245
Sales
295
296
Sales
29
51
Operating income declined $147MM bull Lower gross profit $14MM bull Favorable SGampA $9MM bull Impairment charge $10MM mostly Brazil
SGampA decreased $88MM bull Cost reductions at both the segment and corporate level bull One-time costs $1MM lower YOY
Net sales declined 72 67 at constant currency bull Material Handling down $26MM (64) bull Distribution down $17MM (90)
Gross profit declined $137MM flat as of sales bull Lower volumemix bull Operational inefficiencies bull One-time costs $16MM lower due to prior year restructuring
6
2016 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$057
$044
2015
2016
Adj Diluted EPS
$6015
$5581
2015
2016
Net Sales
$1799
$1647
2015
2016
Adj Gross Profit
Adjusted Gross Profit declined $152MM 40 bps bull Lower sales volume and an unfavorable product mix due to the
decrease in Agriculture sales bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 72 67 at constant currency bull Material Handling down $26MM driven by lower Agriculture sales bull Distribution down $17MM due to lower sales of equipment and
Adj SGampA declined $79M bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
243
238
Sales
295
299
Sales
52
61
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
$045
$005
2015
2016
Diluted EPS
$6015
$5581
2015
2016
Net Sales
5
2016 FINANCIAL SUMMARY ndash GAAP REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
$1783
$1646
2015
2016
Gross Profit
$309
$162
2015
2016
Operating Income
$1474
$1386
2015
2016
SGampA Expenses Sales
248
245
Sales
295
296
Sales
29
51
Operating income declined $147MM bull Lower gross profit $14MM bull Favorable SGampA $9MM bull Impairment charge $10MM mostly Brazil
SGampA decreased $88MM bull Cost reductions at both the segment and corporate level bull One-time costs $1MM lower YOY
Net sales declined 72 67 at constant currency bull Material Handling down $26MM (64) bull Distribution down $17MM (90)
Gross profit declined $137MM flat as of sales bull Lower volumemix bull Operational inefficiencies bull One-time costs $16MM lower due to prior year restructuring
6
2016 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$057
$044
2015
2016
Adj Diluted EPS
$6015
$5581
2015
2016
Net Sales
$1799
$1647
2015
2016
Adj Gross Profit
Adjusted Gross Profit declined $152MM 40 bps bull Lower sales volume and an unfavorable product mix due to the
decrease in Agriculture sales bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 72 67 at constant currency bull Material Handling down $26MM driven by lower Agriculture sales bull Distribution down $17MM due to lower sales of equipment and
Adj SGampA declined $79M bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
243
238
Sales
295
299
Sales
52
61
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
6
2016 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$057
$044
2015
2016
Adj Diluted EPS
$6015
$5581
2015
2016
Net Sales
$1799
$1647
2015
2016
Adj Gross Profit
Adjusted Gross Profit declined $152MM 40 bps bull Lower sales volume and an unfavorable product mix due to the
decrease in Agriculture sales bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 72 67 at constant currency bull Material Handling down $26MM driven by lower Agriculture sales bull Distribution down $17MM due to lower sales of equipment and
Adj SGampA declined $79M bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
243
238
Sales
295
299
Sales
52
61
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
7
2016 SEGMENT RESULTS
Material Handling Distribution
$4140
$3875
2015
2016
Net Sales
Net sales down 64 56 at constant currency bull Weak capital spending environment in Food amp Beverage market bull ~2 of sales decline attributable to strategic rationalization of low-margin
products bull Strong growth in Vehicle market due to increased passenger automotive
and RV demand
$498
$296
2015
2016
Operating Income
Adj Operating profit declined $118MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes offset by SGampA
reductions
Adjusted
$382
$500
$1876
$1707
2015
2016
Net Sales
Net sales down 90 bull Decline due to decreased sales of equipment and retread products
partially offset by increased Industrial sales bull New sales model implementation completed
$161
$128
2015
2016
Operating Income
Adj Operating Income declined $38MM bull Lower sales volume partially offset by a favorable mix of supplies vs
equipment bull Operational inefficiencies offset by SGampA cost reductions
$128
$166
GAAP Adjusted GAAP
See appendix for reconciliations from GAAP to adjusted results
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
8
BALANCE SHEET amp CASH FLOW
ANNUAL CASH FLOW
WORKING CAPITAL AS A OF SALES
58
36
81
2014 2015 2016
MAINTAINED FREE CASH FLOW THROUGH DISCIPLINED APPROACH TO CAPEX
$518
$(242)
$276
$494
$(237)
$256 $337
$(125)
$212
Cash from Cont Ops CapEx Free Cash Flow
2014 2015 2016
See appendix for reconciliations from GAAP to adjusted results
BALANCE SHEET
2015 2016
Cash 73 $ 79 $ Debt 1919 1895
Net Debt 1845 $ 1816 $
Adjusted EBITDA 715 $ 636 $
Net Debt-to-Adj EBITDA 26x 29x
IN $MILLIONS
IN $MILLIONS
OF ANNUAL SALES
9
2017 OUTLOOK
Consumer
Vehicle
Industrial
Auto Aftermarket
Food amp Beverage
2015 2016 Market of Net Sales
2017 Operating Framework
Low single digits
High single digits
Low single digits
Flat
Low single digits
Continued decline in demand from Agriculture markets
Anticipating growth in market share due to new customer wins
Strong demand growth expected to continue
Experiencing slow but stable growth in Industrial markets
Expecting growth due to an improved sales process and strengthening demand
FORECASTING FLAT SALES IN 2017 ON A CONSTANT CURRENCY BASIS
raquo Net Sales Flat (ex-currency)
raquo Capital expenditures $10 - $12 million
raquo Net interest expense $8 - $9 million
raquo DampA $32 - $34 million
raquo Effective tax rate (normalized) 36
10
2017 KEY ASSUMPTIONS
STRATEGIC VISION
11
Safety and Efficiency in Everything We Do
Act Like Owners
Niche Market Focus bull 1 or 2 in each served market bull Strong brands bull Customer intimacy
Flexible Operations bull Simplify bull 8020 and lean bull Process focus value-add only
Strong Cash Flow Growth
BUSINESS MODEL
12
raquoBuild sustainable competitive advantages
Niche Market Focus raquo Step 1 Market Segmentation raquo Step 2 Sell more of existing products raquo Step 3 Innovate to expand share
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
bull Sales force effectiveness - MTS sales process and
pricing process bull Innovation
- Scepter new product launch
bull Reduce Material Handling ops footprint
bull Continue 8020 amp lean implementation
bull Focus on debt repayment bull Early stages of acquisition
funnel bull High cash flowasset light
businesses
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Niche Market Focus
HOW WE WIN NICHE MARKET GROWTH STRATEGY
14
bull Invested in market research in all 5 key end markets in 2016
Define the market segment
bull Established 7 dedicated cross functional teams in 2016
Orient the organization
bull Investing in systems and pricing tools in 2017
Penetrate the market segment with existing products
bull Investing in RampD at Scepter other companies to follow
Innovate
bull Find next market segment to expand safety and efficiency offering
Expand
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
HOW WE WIN CHANGING THE OPERATING MODEL
15
raquo Investing asymp$10M to reduce the operating footprint raquo Annual savings of approximately $10M raquo Material Handling
raquo Consolidation of factory footprint across several businesses raquo Strategic sourcing partners to produce certain volume raquo Focus in-house on high value products raquo Complete by Q4 2017
raquo Myers Industries corporate raquo Reduced headcount by 15 - completed in Q4 2016
raquo Amended and extended loan agreement raquo Similar terms to prior agreement with 3 year extension
raquo Filling MampA pipeline raquo Market segments less than $1B raquo Low exposure to customer capital spending raquo Asset light business model
Flexible Operations
Strong Cash Flow Growth
LONG-TERM FINANCIAL TARGETS
FINANCIAL TARGETS 2016 2018 2020
Adj Op Inc Margin 5 gt8 gt10
Free Cash FlowSales 4 gt7 gt9
Working CapitalSales 8 lt9 lt9
Leverage Ratio 29 lt20 lt20
Adj EBITDA $64MM gt$70MM gt$80MM
16
Free cash flow calculated as cash flow from continuing operations less capital expenditures
QampA
APPENDIX
$000
($004)
Q4 2015
Q4 2016
Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
19
Q4 FINANCIAL SUMMARY ndash GAAP
$403
$360
Q4 2015
Q4 2016
Gross Profit
Gross Profit declined $43MM 120 bps bull Lower sales volume bull One-time costs $05MM lower YOY due to prior year restructuring
Net Sales declined 66 vs prior year 73 at constant currency bull Material Handling down $58MM (62) bull Distribution down $30MM (73)
$18
$09
Q4 2015
Q4 2016
Operating Income
$384
$351
Q4 2015
Q4 2016
SGampA Expenses
SGampA declined $33MM bull Cost reductions at both the segment and corporate level bull One-time costs $14MM lower YOY
Sales
270
276
Sales
277
289
Sales
07
13
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
$006
$000
Q4 2015
Q4 2016
Adj Diluted EPS
$1392
$1301
Q4 2015
Q4 2016
Net Sales
20
Q4 FINANCIAL SUMMARY ndash ADJUSTED (NON-GAAP)
$408
$360
Q4 2015
Q4 2016
Adj Gross Profit
Adj Gross Profit declined $48MM 160 bps bull Lower sales volume bull Operational inefficiencies due mostly to lower sales volume
Net Sales decline of 66 73 at constant currency bull Material Handling down $58MM driven by lower Agriculture sales bull Distribution down $30MM due to lower sales of equipment and
retread products
$47
$19
Q4 2015
Q4 2016
Adj Operating Income
$361
$342
Q4 2015
Q4 2016
Adj SGampA Expenses
Adj SGampA declined $19MM bull Cost reductions at both the segment and corporate level
See appendix for reconciliations from GAAP to adjusted results
Sales
263
259
Sales
277
293
Sales
15
34
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
21
Q4 SEGMENT RESULTS
Material Handling Distribution
$935
$877
Q4 2015
Q4 2016
Net Sales
$81
$34
Q4 2015
Q4 2016
Operating Income Adjusted
$42
$97
$457
$424
Q4 2015
Q4 2016
Net Sales
$26
$30
Q4 2015
Q4 2016
Operating Income
$30
$29
GAAP Adjusted GAAP
Net sales declined 73 bull Lower sales of equipment and retread products bull Increased sales of industrial products
Net sales declined 62 72 at constant currency bull Continued decline in Agriculture sales bull Strong Food amp Beverage sales in Brazil bull Growth in Vehicle market due to increased sales to the
recreational vehicle market
Adj operating income declined $55MM bull Lower volume and an unfavorable mix due to decreased Agriculture sales bull Operational inefficiencies due to lower sales volumes partially offset by
SGampA reductions
Adj operating income increased $01MM bull Lower sales volume offset by a positive mix of supplies vs equipment
REFLECTS RESULTS FROM CONTINUING OPERATIONS IN $MILLIONS EXCEPT PER-SHARE FIGURES
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
22
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP The Companys method for calculating gross profit excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Gross profit as reported 36015$ 40254$ 164640$ 178278$ Restructuring expenses and other adjustments in cost of salesMaterial Handling segment 22 563 22 1620 Distribution segment - - - -
Gross profit as adjusted 36037$ 40817$ 164662$ 179898$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
23
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSOLIDATED SELLING GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data Selling general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that selling general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses selling general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities Selling general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling general and administrative expenses prepared in accordance with GAAP The Companys method for calculating selling general and administrative expenses excluding these items may not be comparable to methods used by other companies
December 31 2016 December 31 2015 December 31 2016 December 31 2015
Selling general and administrative expenses as reported 35128$ 38430$ 138598$ 147417$ Restructuring expenses and other adjustments in selling general and administrative expensesMaterial Handling segment (788) (972) 1255 1345 Distribution segment - (312) - (507) Corporate (186) (1059) (4352) (4830)
Selling general and administrative expenses as adjusted 34154$ 36087$ 135501$ 143425$
Quarter Ended For the Twelve Months Ended
NonGAAP Rec GP
NonGAAP RecSGampA
TTM EBITDA 2016
TTM EBIDTA 2015
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
Quarter Ended
TTM
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
24
RECONCILIATION OF NON-GAAP MEASURES MYERS INDUSTRIES INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in thousands except per share data)
Note on Reconciliation of Income and Earnings Data Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries Inc calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that the excluded items are not primarily related to core operational activities The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a companys operating profitability Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP The Companys method for calculating income (loss) excluding these items may not be comparable to methods used by other companies
Income taxes are calculated using the normalized effective tax rate for each year The normalized rate used in 2016 is 36 and the normalized rate used in 2017 is 375
2016 2015 2016 2015
Material HandlingOperating income as reported 3431$ 8140$ 29583$ 49762$
Litigation reserve reversal - - - (3010) Asset impairments - - 9874 - Reduction to contingent liability - (2335) Restructuring expenses and other adjustments 810 1535 1102 3285
Operating income as adjusted 4241 9675 38224 50037
DistributionOperating income as reported 3031 2557 12834 16114
Restructuring expenses and other adjustments - 312 - 507 Operating income as adjusted 3031 2869 12834 16621
Corporate ExpenseCorporate expense as reported (5575) (8873) (26249) (35015)
CFO severance related costs - - 2011 - Environmental reserve - 200 2155 1466 Professional legal fees and other adjustments 186 859 186 3364
Corporate expense as adjusted (5389) (7814) (21897) (30185)
Continuing OperationsOperating income as reported 887 1824 16168 30861
Total of all adjustments above 996 2906 12993 5612 Operating income as adjusted 1883 4730 29161 36473
Interest expense net (2086) (2100) (8173) (8999) Income (loss) before taxes as adjusted (203) 2630 20988 27474
Income tax expense 76 (939) (7871) (9808) Income (loss) from continuing operations as adjusted (127)$ 1691$ 13117$ 17666$
Adjusted earnings (loss) per diluted share from continuing operations (000)$ 006$ 044$ 057$
Q uarter Ended December 31 Year Ended December 31
Rollforward - Dates
Summary_T1
FS_Statement_Of_Operation
FS_Sales_And_Earnings_T1
FS_Income_Loss
FS_Financial_Position
FS_Cash_Flow
LT Financial Objectives
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Quarter Ended
Year Ended
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Dec-15
Net Income as Reported Continuing Operations
$ 2622
$ 10925
$ 631
$ (125)
$ 14053
Add tax expense
1392
6350
218
(151)
7809
Add net interest expense
2702
2467
1730
2100
8999
Add depreciation
6489
6801
5926
5496
24712
Add amortization
2638
2641
2575
2413
10267
EBITDA
15843
29184
11080
9733
65840
Add one-time unusual charges
1950
(2561)
3317
2906
5612
EBITDA as Adjusted
17793
26623
14397
12639
71452
Depreciation
YTD
6489
13290
19216
24712
QTD
6489
6801
5926
5496
Amortization
YTD
2638
5279
7854
10267
QTD
2638
2641
2575
2413
EBITDA in SYSTEM
15729
29066
10964
9616
Amortization of Loan Fees
117
116
116
117
EBITDA above
15846
29182
11080
9733
Quarter Ended
TTM
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-16
Net Income as Reported Continuing Operations
$ (3336)
$ 5684
$ 424
$ (1247)
$ 1525
Add tax expense
2446
3429
547
48
6470
Add net interest expense
2019
2053
2015
2086
8173
Add depreciation
6000
6283
6182
6142
24607
Add amortization
2499
2482
2447
2430
9858
EBITDA
9628
19931
11615
9459
50633
Add one-time unusual charges
10556
544
897
996
12993
EBITDA as Adjusted
20184
20475
12512
10455
63626
Depreciation
YTD
6000
12283
18465
24607
QTD
6000
6283
6182
6142
Amortization
YTD
2499
4981
7428
9858
QTD
2499
2482
2447
2430
EBITDA in SYSTEM
9511
19814
11499
8844
Amortization of Loan Fees
117
117
117
117
EBITDA above
9628
19931
11616
8961
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Selling general and administrative expenses as reported
$ 35128
$ 38430
$ 138598
$ 147417
Restructuring expenses and other adjustments in selling general and administrative expenses
Material Handling segment
(788)
(972)
1255
1345
Distribution segment
-
(312)
-
(507)
Corporate
(186)
(1059)
(4352)
(4830)
Selling general and administrative expenses as adjusted
$ 34154
$ 36087
$ 135501
$ 143425
Net Sales
130069
139194
558067
601538
GAAP
270
276
248
245
Adjusted
263
259
243
238
Quarter Ended
For the Twelve Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
Gross profit as reported
$ 36015
$ 40254
$ 164640
$ 178278
Restructuring expenses and other adjustments in cost of sales
Material Handling segment
22
563
22
1620
Distribution segment
-
-
-
-
Gross profit as adjusted
$ 36037
$ 40817
$ 164662
$ 179898
Financial Objective
2016
2018
2020
Operating Profit Margin
5
gt8
gt10
Free Cash FlowSales
4
gt7
gt9
Working CapitalSales
8
lt9
lt9
Leverage Ratio
29
lt20
lt20
EBITDA
$64MM
gt$70MM
gt$80MM
Year Ended December 31
Year Ended December 31
2016
2015
2016
2015
Cash Flows From Operating Activities
Net income
$ mdash
$ mdash
$ 1057
$ 17762
Income (loss) from discontinued operations net of income taxes
mdash
mdash
(468)
3709
Income from continuing operations
mdash
mdash
1525
14053
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation
mdash
mdash
24607
24712
Amortization
mdash
mdash
9858
10267
Non-cash stock-based compensation expense
mdash
mdash
3357
4934
mdash
mdash
mdash
mdash
mdash
mdash
mdash
mdash
Deferred taxes
mdash
mdash
(243)
(315)
Excess tax benefit from stock-based compensation
mdash
mdash
(64)
(38)
Impairment charges
mdash
mdash
9874
mdash
Other
mdash
mdash
653
762
Payments on performance based compensation
mdash
mdash
(1794)
(1303)
Accrued interest income on note receivable
mdash
mdash
(1268)
(1060)
Other long-term liabilities
mdash
mdash
(579)
1106
Cash flows provided by (used for) working capital
Accounts receivable
mdash
13
4311
3499
Inventories
mdash
49
9720
5271
Prepaid expenses and other assets
mdash
mdash
1083
573
Accounts payable and accrued expenses
mdash
mdash
(27319)
(13107)
Net cash provided by (used for) operating activities - continuing operations
mdash
63
33721
49354
Net cash provided by (used for) operating activities - discontinued operations
mdash
24
mdash
(11622)
Net cash provided by (used for) operating activities
mdash
86
33721
37732
21198
25627
(4429)
Cash Flows From Investing Activities
Capital expenditures
mdash
mdash
(12523)
(23727)
Acquisition of business net of cash acquired
mdash
48
mdash
mdash
Proceeds from sale of property plant and equipment
mdash
mdash
468
1261
Proceeds (payments) related to sale of business
mdash
48
(4034)
70762
Net cash provided by (used for) investing activities - continuing operations
mdash
mdash
(16089)
48296
Net cash provided by (used for) investing activities - discontinued operations
mdash
48
mdash
(581)
Net cash provided by (used for) investing activities
(16089)
47715
Cash Flows From Financing Activities
mdash
17
Proceeds from long-term debt
mdash
mdash
mdash
mdash
Net borrowing (repayments) on credit facility
mdash
mdash
(3804)
(37110)
Cash dividends paid
mdash
mdash
(16221)
(16675)
Proceeds from issuance of common stock
mdash
mdash
3374
2924
Excess tax benefit from stock-based compensation
mdash
mdash
64
38
Repurchase of common stock
mdash
17
mdash
(30023)
Shares withheld for employee taxes on equity awards
mdash
mdash
(1166)
(975)
Deferred financing costs
mdash
17
mdash
mdash
Net cash provided by (used for) financing activities - continuing operations
mdash
mdash
(17753)
(81821)
Net cash provided by (used for) financing activities - discontinued operations
mdash
151
mdash
mdash
Net cash provided by (used for) financing activities
mdash
mdash
(17753)
(81821)
Foreign exchange rate effect on cash
$ mdash
$ 151
665
(958)
Net increase (decrease) in cash
544
2668
Cash at January 1
7344
4676
Cash at December 31
$ 7888
$ 7344
- 0
- 0
December 31 2016
December 31 2015
Assets
Current Assets
Cash
$ 7888
$ 7344
Restricted cash
8635
8627
Accounts receivable net
73818
77633
Inventories
46023
54738
Other
4787
5966
Total Current Assets
141151
154308
Other Assets
129051
143710
Property Plant amp Equipment Net
111482
130773
Total Assets
$ 381684
$ 428791
Liabilities amp Shareholders Equity
Current Liabilities
Accounts payable
$ 48988
$ 71310
Accrued expenses
30324
45502
Total Current Liabilities
79312
116812
Long-term debt net
189522
191881
Other liabilities
9235
12354
Deferred income taxes
10582
10041
Total Shareholders Equity
93033
97703
Total Liabilities amp Shareholders Equity
$ 381684
$ 428791
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
2016
2015
Material Handling
Operating income as reported
$ 3431
$ 8140
$ 29583
$ 49762
- 0
- 0
- 0
- 0
Severance
Litigation reserve reversal
- 0
- 0
-0
(3010)
Asset impairments
- 0
- 0
9874
- 0
Reduction to contingent liability
- 0
(2335)
Restructuring expenses and other adjustments
810
1535
1102
3285
Operating income as adjusted
4241
9675
38224
50037
Distribution
Operating income as reported
3031
2557
12834
16114
- 0
- 0
- 0
- 0
Severance
- 0
Restructuring expenses and other adjustments
- 0
312
-0
507
Operating income as adjusted
3031
2869
12834
16621
Corporate Expense
Corporate expense as reported
(5575)
(8873)
(26249)
(35015)
- 0
- 0
- 0
- 0
CFO severance related costs
- 0
- 0
2011
-0
Environmental reserve
- 0
200
2155
1466
Professional legal fees and other adjustments
186
859
186
3364
Corporate expense as adjusted
(5389)
(7814)
(21897)
(30185)
Continuing Operations
Operating income as reported
887
1824
16168
30861
- 0
- 0
- 0
- 0
Total of all adjustments above
996
2906
12993
5612
Operating income as adjusted
1883
4730
29161
36473
Interest expense net
(2086)
(2100)
(8173)
(8999)
- 0
- 0
- 0
- 0
Income (loss) before taxes as adjusted
(203)
2630
20988
27474
Income tax expense
76
(939)
(7871)
(9808)
Income (loss) from continuing operations as adjusted
$ (127)
$ 1691
$ 13117
$ 17666
Adjusted earnings (loss) per diluted share from continuing operations
$ (000)
$ 006
$ 044
$ 057
Basic
29961579
29856894
29750378
30616485
- 0
- 0
- 0
- 0
Diluted
29961579
29856894
29967912
30943693
- 0
- 0
- 0
- 0
Quarter Ended December 31
Year Ended December 31
2016
2015
Change
2016
2015
Change
Net Sales
Material Handling
$ 87671
$ 93496
(62)
$ 387513
$ 414030
(64)
Distribution
42412
45728
(73)
170660
187637
(90)
Inter-company Sales
(19)
(30)
- 0
(111)
(129)
- 0
Total
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Operating Income
Material Handling
$ 3431
$ 8140
(579)
$ 29583
$ 49762
(406)
Distribution
3031
2557
185
12834
16114
(204)
Corporate
(5575)
(8873)
- 0
(26249)
(35015)
- 0
Total
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
$ 87078
$ 93496
-686
$ 129463
$ 139194
-699
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
For the Quarter Ended
For the Year Ended
Nine Months Ended
December 31 2016
December 31 2015
December 31 2016
December 31 2015
September 30 2015
September 30 2014
Net sales
$ 130064
$ 139194
$ 558062
$ 601538
$ 462344
$ 465378
Cost of sales
94049
98940
393422
423260
324320
340814
Gross profit
36015
40254
164640
178278
138024
124564
277
289
- 0
- 0
- 0
- 0
Selling general and administrative expenses
35128
38430
138598
147417
108987
107073
-60
-60
Impairment charges
-
-
9874
-
(881900)
Operating income
887
1824
16168
30861
29037
17491
248
- 0
- 0
- 0
- 0
Interest expense net
2086
2100
8173
8999
6899
5888
245
Income (loss) from continuing operations before income taxes
(1199)
(276)
7995
21862
22138
11603
- 0
- 0
- 0
- 0
Income tax expense (benefit)
48
(151)
6470
7809
7960
4131
Income (loss) from continuing operations
(1247)
(125)
1525
14053
$ 14178
$ 7472
- 0
- 0
- 0
- 0
Income (loss) from discontinued operations net of income taxes
(211)
896
(468)
3709
$ 2813
$ (3786)
Net income (loss)
$ (1458)
$ 771
$ 1057
$ 17762
$ 16991
$ 3686
- 0
- 0
- 0
- 0
Income (loss) per common share from continuing operations
Basic
$ (004)
$ - 0
$ 005
$ 046
Diluted
$ (004)
$ - 0
$ 005
$ 045
Income (loss) per common share from discontinued operations
Basic
$ (001)
$ 003
$ (002)
$ 012
Diluted
$ (001)
$ 003
$ (002)
$ 012
Net income (loss) per common share
Basic
$ (005)
$ 003
$ 003
$ 058
Diluted
$ (005)
$ 003
$ 003
$ 057
Weighted average common shares outstanding
Basic
29961579
29856894
29750378
30616485
Diluted
29961579
29856894
29967912
30943693
Tax rate
-40
547
81
36
07
13
-06
-10
-01
Quarter Ended December 31
Year Ended December 31
2016
2015
Increase(Decrease)
2016
2015
Increase(Decrease)
(Dollars in thousands except per share data)
Net sales
$ 130064
$ 139194
(66)
$ 558062
$ 601538
(72)
Gross profit
$ 36015
$ 40254
(105)
$ 164640
$ 178278
(76)
Gross profit margin
277
289
295
296
Operating income
$ 887
$ 1824
(514)
$ 16168
$ 30861
(476)
Income from continuing operations
Income (loss)
$ (1247)
$ (125)
8976
$ 1525
$ 14053
(891)
Income (loss) per diluted share
$ (004)
$ mdash
(1000)
$ 005
$ 045
(889)
Gross profit as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Gross profit margin as adjusted(1)
ERRORREF
ERRORREF
ERRORREF
ERRORREF
Operating income as adjusted(1)
$ 1883
$ 4730
(602)
$ 29161
$ 36473
(200)
Income from continuing operations as adjusted(1)
Income (loss)
$ (127)
$ 1691
(1075)
$ 13117
$ 17666
(258)
Income (loss) per diluted share
$ mdash
$ 006
(1000)
$ 044
$ 057
(228)
$ 130064
$ 139194
52
61
-66
Operating income
$ 887
$ 1824
$ 16168
$ 30861
One time adjustments
996
2906
$ 12993
$ 5612
Operating income as adjusted(1)
1883
4730
$ 29161
$ 36473
Interest expense
(2086)
(2100)
$ (8173)
$ (8999)
Taxes
76
(939)
$ (7871)
$ (9808)
Income from continuing operations as adjusted(1)
$ (127)
$ 1691
$ 13117
$ 17666
-1075
-258
- 0
- 0
- 0
- 0
Only Update Highlighted Fields to Roll-forward the Excel Table
Description
Period Date
Reporting Period
4
1
Q1
Q2
Q3
FYE
Current Year
2016
2
March 31
June 30
September 30
December 31
Current Period Month amp Date (Month Date)
December 31
3
Prior Year End Month amp Date (Month Date)
December 31
4
Previous Year
2015
For the Year Ended
For the Quarter Ended
As of December 31
Qtr Month Ended (Six Months Ended or Nine Months Ended)
Year Ended
Months Ended (Six Nine or Twelve)
Twelve
Months Ended (six nine or twelve)
twelve
Three Month Ended and Current Period (Three Months Ended June 30)
For the Three Months Ended December 31
Month Ended changing month (Six or Nine Months Ended June 30)
For the Year Ended December 31
Ended Period Date (Ended March 31)
Ended December 31
For the Months Ended (For the Six Months)
For the twelve months ended
December 31 2016
December 31 2015
December 31 2015
For the year ended
Twelve Months Ended
Twelve Months Ended December 31
Year Ended December 31
Quarter Ended December 31
Years Ended
fourth
Fourth
Narrative Period Dates
Description
Name Range
three months ended December 31 2016 and 2015
Period_1
twelve months ended December 31 2016 and 2015
Period_2
three and twelve months ended December 31 2016
Period_3
December 31 2016
Period_4
2015
Period_5
December 31 2015
Period_6
twelve months ended December 31 2015
Period_7
2016
Period_8
three months ended December 31 2015
Period_9
twelve months ended December 31 2016
Period_10
8-K Filing Date
March 9 2017
Earnings Call Date
March 9 2017
25
RECONCILIATION OF NON-GAAP MEASURES
MYERS INDUSTRIES INC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands)
Note on Reconciliation of Income and Earnings Data EBITDA as adjusted is a financial measure that Myers Industries Inc calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations The Company believes that EBITDA as adjusted provides useful information regarding a companys operating profitability Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss) income (loss) before taxes or other consolidated income data prepared in accordance with GAAP The Companys method for calculating EBITDA as adjusted may not be comparable to methods used by other companies
