Myers Industries, a leading manufacturer of a wide range of polymer products and distributor for the tire, wheel and under-vehicle service industry, has announced results for the first quarter ended March 31, 2022.

First Quarter 2022 Financial Highlights

• Net sales increased 29% to $225.5 million, compared with $174.4 million for the first quarter of 2021
• On an organic basis, net sales increased 23% compared with the first quarter of 2021
• Net income per diluted share increased 135% to $0.47, compared with $0.20 for the first quarter of 2021
• Adjusted earnings per diluted share increased 127% to $0.50, compared with $0.22 for the first quarter of 2021
• Adjusted EBITDA increased 82% to $31.0 million, compared with $17.0 million for the first quarter of 2021
• Cash flow from continuing operations was $7.3 million and free cash flow was $2.2 million

Myers Industries President and CEO, Mike McGaugh said, “We are successfully executing our strategy. We continue delivering on the key elements of Horizon 1: Self-help, Organic Growth, and Bolt On M&A. As a result of this focus, our results continue to improve. We are pleased to report that the first quarter of 2022 was a record earnings quarter for Myers. Our commitment to the ‘One Myers’ strategic vision has fundamentally changed the way we do business and has unified our organization. The results are clear: we drove our sixth consecutive quarter of double-digit top-line expansion, supported by strong organic sales and sustained benefits from the acquisitions of both Elkhart Plastics and Trilogy Plastics. We have continued our efforts to be an excellent partner to our customers. As a result, we have generated the second quarter of margin expansion while growing sales. This consistent performance, across a variety of economic conditions, supports our growing confidence that we can continue to improve the earnings profile of the company across future market and economic cycles.”

McGaugh concluded, “The strong results from the first quarter have led us to raise our outlook for 2022, including increasing our adjusted EPS range from $1.20 – $1.40 to $1.30 – $1.50. The quarter’s results exemplify the benefits and outcomes stemming from disciplined efforts to execute our ‘One Myers’ approach. The progress to date is encouraging, and I believe we are only just at the beginning of our journey. In conclusion, I believe that this quarter demonstrates the potential significant shareholder value creation that is possible through the execution of our long-term strategy as we transform Myers into a great company.”

Net sales were $225.5 million, an increase of $51.1 million, or 29.3%, compared with $174.4 million for the first quarter of 2021, driven by strong sales in both the Material Handling and Distribution segments. Excluding the incremental $10.9 million of net sales from the Trilogy Plastics acquisition, organic net sales increased 23%, with 20% due to favorable pricing and 3% due to higher volume/mix.

Gross profit increased $21.5 million, or 42.7% to $71.9 million, primarily due to the increased contribution from pricing actions, sales volume, and the Trilogy Plastics acquisition. Partially offsetting these contributions were higher raw material costs, increased labor costs, and an unfavorable sales mix. The contribution from pricing actions more than offset higher raw material costs, which led to a favorable price-to-cost relationship for the quarter and gross margin of 31.9% compared with 28.9% for the first quarter of 2021. Selling, general and administrative expenses increased $8.4 million, or 21.3% to $48.0 million, reflecting the Trilogy Plastics acquisition, higher salaries, benefits, and incentive compensation costs, increased variable selling expenses, and higher facility costs. SG&A as a percentage of sales declined to 21.3%, compared with 22.7% in the same period last year. Net income per diluted share was $0.47, compared with $0.20 for the first quarter of 2021. Adjusted earnings per diluted share were $0.50, compared with $0.22 for the first quarter of 2021.

2022 Outlook 
Based on current exchange rates, market outlook, and business forecast, the Company updated its outlook for fiscal 2022, and currently forecasts:

• Net sales growth in the low to mid double-digit range with approximately one quarter of the increase due to the acquisition of Trilogy Plastics
• Diluted EPS in the range of $1.28 to $1.48; adjusted diluted EPS in the range of $1.30 to $1.50
• Capital expenditures to be in the range of $25 to $28 million
• Effective tax rate to approximate 26%