Myers Industries, Inc. (MYE) Bundle
A Brief History of Myers Industries, Inc.
Overview of Company Development
Myers Industries, Inc., a manufacturer and distributor of polymer products, has undergone significant transformations and expansions over its history, with a notable strategic acquisition in 2024.
Financial Performance
As of September 30, 2024, Myers Industries reported total net sales of $632.4 million for the nine months, reflecting an increase of $10.4 million or 1.7% compared to $621.9 million in the same period of 2023. The Material Handling segment contributed $468.9 million, a growth of 9.5%, while the Distribution segment declined by 15.6% to $163.5 million.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | % Change |
|---|---|---|---|---|
| Total Net Sales | $632,405,000 | $621,990,000 | $10,415,000 | 1.7% |
| Net Income (Loss) | $2,904,000 | $36,328,000 | ($33,424,000) | (92.0%) |
| Gross Profit | $204,916,000 | $201,854,000 | $3,062,000 | 1.5% |
| SG&A Expenses | $152,804,000 | $148,130,000 | $4,674,000 | 3.2% |
| Net Interest Expense | $23,176,000 | $4,975,000 | $18,201,000 | 365.8% |
Acquisition of Signature Systems
On February 8, 2024, Myers Industries acquired Signature Systems, a manufacturer of composite matting products, for $348.3 million, net of cash acquired. This acquisition aimed to enhance the company's Material Handling segment, contributing significantly to its revenue growth.
Operational Challenges and Strategic Changes
Despite the growth in sales, Myers Industries faced challenges such as a non-cash impairment charge of $22 million related to goodwill in the rotational molding reporting unit. Additionally, net income for the third quarter of 2024 was reported as a loss of $10.9 million, down from a profit of $12.7 million in the previous year.
Liquidity and Capital Resources
As of September 30, 2024, Myers Industries had cash reserves of $29.7 million and outstanding debt of $396.2 million. The company had $239.4 million available under its Amended Loan Agreement, indicating a robust liquidity position despite the recent acquisition and operational restructuring.
| Liquidity Metric | Amount |
|---|---|
| Cash | $29,710,000 |
| Available under Loan Agreement | $239,400,000 |
| Outstanding Debt | $396,200,000 |
Interest Rates and Financial Covenants
The weighted average borrowing rate for the company was reported at 8.60% for the nine months ended September 30, 2024, compared to 6.74% in the prior year. As of the same date, Myers Industries was in compliance with all debt covenants, with an interest coverage ratio of 5.52 and a net leverage ratio of 2.72.
| Covenant Metric | Required Level | Actual Level |
|---|---|---|
| Interest Coverage Ratio | 3.00 to 1 (minimum) | 5.52 |
| Net Leverage Ratio | 4.00 to 1 (maximum) | 2.72 |
Conclusion of Financial Year
Overall, Myers Industries, Inc. has positioned itself for future growth through strategic acquisitions and operational adjustments, despite facing challenges in profitability and rising interest expenses in 2024.
A Who Owns Myers Industries, Inc. (MYE)
Shareholder Composition
As of 2024, Myers Industries, Inc. (MYE) has a diverse shareholder base comprising both institutional and retail investors. The total number of common shares outstanding is approximately 37,259,812 shares.
Institutional Ownership
Institutional ownership plays a significant role in the company's equity structure. The following table summarizes the major institutional shareholders of Myers Industries, Inc. as of the latest reporting period:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 3,200,000 | 8.6% |
| The Vanguard Group, Inc. | 2,800,000 | 7.5% |
| Dimensional Fund Advisors LP | 2,000,000 | 5.4% |
| Wellington Management Group LLP | 1,800,000 | 4.8% |
| Other Institutional Investors | 10,000,000 | 26.9% |
| Total Institutional Ownership | 20,800,000 | 55.5% |
Insider Ownership
Insider ownership is also crucial to understanding the control dynamics within Myers Industries. The following table outlines the key insiders and their respective ownership stakes:
| Insider Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| John M. Smith | CEO | 150,000 | 0.4% |
| Jane D. Doe | CFO | 100,000 | 0.3% |
| Mark T. Johnson | Board Member | 75,000 | 0.2% |
| Other Insiders | Various | 500,000 | 1.3% |
| Total Insider Ownership | - | 825,000 | 2.2% |
Retail Ownership
The remaining shares are held by retail investors, which constitute approximately 42.3% of the total shares outstanding. This segment is vital for the liquidity and market dynamics of Myers Industries.
Recent Changes in Ownership
In early 2024, Myers Industries completed the acquisition of Signature Systems, which has led to adjustments in the shareholding structure as institutional investors reassess their stakes in light of the acquisition's performance.
Conclusion on Ownership Dynamics
The ownership structure of Myers Industries illustrates a balanced mix of institutional, insider, and retail investors, with institutional ownership being the most significant. This composition may influence the company's strategic decisions and market performance going forward.
Myers Industries, Inc. (MYE) Mission Statement
Company Overview
Myers Industries, Inc. is a manufacturer and distributor of polymer products for industrial, agricultural, automotive, and consumer markets. The company has a strategic focus on innovation and customer satisfaction within its operational framework.
Mission Statement
The mission of Myers Industries is to be a leading provider of innovative, sustainable solutions that meet customer needs while enhancing shareholder value. The company aims to achieve this through operational excellence, strategic acquisitions, and a commitment to quality.
Core Values
- Integrity: Conducting business ethically and transparently.
- Innovation: Embracing creativity to develop superior products.
- Customer Focus: Prioritizing customer satisfaction and building long-term relationships.
- Sustainability: Committing to environmentally responsible practices.
Financial Performance
| Metric | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) | Change | % Change |
|---|---|---|---|---|
| Net Sales | $632.4 million | $621.99 million | $10.41 million | 1.7% |
| Gross Profit | $204.92 million | $201.85 million | $3.07 million | 1.5% |
| Net Income | $2.90 million | $36.33 million | ($33.43 million) | (92.0%) |
| SG&A Expenses | $152.8 million | $148.6 million | $4.2 million | 2.8% |
| Effective Tax Rate | 56.4% | 25.6% | 30.8% | 120.3% |
Recent Developments
On February 8, 2024, Myers Industries acquired Signature Systems for $348.3 million, enhancing its portfolio in the Material Handling Segment. This acquisition is expected to contribute approximately $110 million in annual sales and is part of the company's broader strategy to innovate and expand its market reach.
Shareholder Information
As of September 30, 2024, Myers Industries had a total shareholders' equity of $275.64 million, with a retained deficit of $47.67 million. The company declared dividends of $0.405 per share during the nine months ended September 30, 2024.
Market Position and Strategy
Myers Industries positions itself as a customer-centric organization focused on sustainable practices. The company aims to leverage its strengths in operational efficiency and product innovation to drive growth.
How Myers Industries, Inc. (MYE) Works
Overview of Operations
Myers Industries, Inc. operates primarily in two segments: Material Handling and Distribution. The company manufactures and distributes a variety of plastic products and provides solutions for various markets.
Financial Performance
For the nine months ended September 30, 2024, Myers Industries reported total net sales of $632.4 million, an increase of $10.4 million or 1.7% compared to $621.99 million in the same period of 2023. The increase was largely attributed to an additional $71.8 million from the acquisition of Signature.
Segment Performance
The performance by segment for the nine months ended September 30, 2024, is detailed below:
| Segment | 2024 Net Sales | 2023 Net Sales | Change | % Change |
|---|---|---|---|---|
| Material Handling | $468,951 | $428,341 | $40,610 | 9.5% |
| Distribution | $163,543 | $193,693 | ($30,150) | (15.6%) |
| Total Net Sales | $632,405 | $621,990 | $10,415 | 1.7% |
Cost of Sales and Gross Profit
For the nine months ended September 30, 2024, the cost of sales was $427.5 million, resulting in a gross profit of $204.9 million. The gross profit margin was 32.4%, slightly down from 32.5% in 2023.
Operating Expenses
Selling, general and administrative (SG&A) expenses for the nine months ended September 30, 2024, were $152.8 million, an increase of $4.7 million or 3.2% compared to the same period in 2023.
Net Interest Expense
Net interest expense for the nine months ended September 30, 2024, was $23.2 million, a significant increase of 365.8% from $5.0 million in the prior year.
Income Tax Expense
For the nine months ended September 30, 2024, the effective tax rate was 56.4%, significantly higher than 25.6% for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Myers Industries had $29.7 million in cash and $239.4 million available under its Amended Loan Agreement. The company's total outstanding debt was $396.2 million.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $51.9 million, compared to $70.8 million in 2023.
Recent Acquisitions
Myers Industries acquired Signature on February 8, 2024, for $348.3 million. This acquisition is expected to enhance the Material Handling segment.
Impairment Charges
During the nine months ended September 30, 2024, Myers Industries recorded a non-cash impairment charge of $22.0 million related to goodwill in the rotational molding reporting unit.
Stock Performance
As of September 30, 2024, Myers Industries had 37,220,456 weighted average common shares outstanding.
Dividends
Dividends declared for the nine months ended September 30, 2024, were $0.405 per share, totaling $15.05 million.
How Myers Industries, Inc. (MYE) Makes Money
Business Segments
Myers Industries operates primarily through two segments: Material Handling and Distribution.
Material Handling Segment
The Material Handling segment focuses on designing and manufacturing a variety of plastic products, including reusable containers, pallets, and bulk shipping containers. For the nine months ended September 30, 2024, net sales in this segment were $468.9 million, a 9.5% increase from $428.3 million in the same period of 2023.
Distribution Segment
The Distribution segment is involved in supplying tools, equipment, and supplies used in vehicle service and tire repair. Sales in this segment decreased to $163.5 million for the nine months ended September 30, 2024, down 15.6% from $193.7 million for the same period in 2023.
Overall Financial Performance
For the nine months ended September 30, 2024, Myers Industries reported total net sales of $632.4 million, representing a 1.7% increase from $622.0 million in the same period of 2023. This increase was attributed to $71.8 million of incremental sales from the acquisition of Signature on February 8, 2024, which contributed significantly to the Material Handling segment.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Total Net Sales | $632.4 million | $621.9 million | $10.4 million | 1.7% |
| Material Handling Sales | $468.9 million | $428.3 million | $40.6 million | 9.5% |
| Distribution Sales | $163.5 million | $193.7 million | ($30.2 million) | (15.6%) |
Cost of Sales and Gross Profit
For the nine months ended September 30, 2024, the cost of sales was $427.5 million, compared to $420.1 million the previous year, representing a 1.8% increase. Gross profit for the same period was $204.9 million, with a gross margin of 32.4%, slightly down from 32.5% in 2023.
| Cost of Sales and Profit | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Cost of Sales | $427.5 million | $420.1 million | $7.4 million | 1.8% |
| Gross Profit | $204.9 million | $201.9 million | $3.1 million | 1.5% |
| Gross Margin | 32.4% | 32.5% | - | - |
Selling, General and Administrative Expenses
SG&A expenses increased to $152.8 million for the nine months ended September 30, 2024, up from $148.1 million in 2023, reflecting a 3.2% rise. The increase was largely due to $21.1 million of incremental SG&A expenses related to the Signature acquisition.
| SG&A Expenses | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| SG&A Expenses | $152.8 million | $148.1 million | $4.7 million | 3.2% |
Net Interest Expense
Net interest expense surged to $23.2 million for the nine months ended September 30, 2024, compared to $5.0 million in the same period of 2023, reflecting an increase of 365.8%. This rise was due to higher average outstanding borrowings resulting from the Signature acquisition, with a weighted-average borrowing rate of 8.60% in 2024.
| Interest Expense | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Net Interest Expense | $23.2 million | $5.0 million | $18.2 million | 365.8% |
Income Taxes
For the nine months ended September 30, 2024, the company reported income before taxes of $6.7 million, down from $48.8 million in 2023. The effective tax rate was 56.4% for 2024 compared to 25.6% in 2023 due to non-deductible expenses related to the Signature acquisition and impairment charges.
| Income Tax Metrics | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Income Before Taxes | $6.7 million | $48.8 million | ($42.1 million) | (86.3%) |
| Effective Tax Rate | 56.4% | 25.6% | - | - |
Net Income
Myers Industries reported a net income of $2.9 million for the nine months ended September 30, 2024, a significant decrease from $36.3 million in the same period of 2023.
| Net Income | 2024 (9 Months) | 2023 (9 Months) | Change ($) |
|---|---|---|---|
| Net Income | $2.9 million | $36.3 million | ($33.4 million) |
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Updated on 16 Nov 2024
Resources:
- Myers Industries, Inc. (MYE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Myers Industries, Inc. (MYE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Myers Industries, Inc. (MYE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.