Myers Industries, Inc. has announced results for the second quarter ending June 30, which show net sales decreased 4.5% compared to the second quarter of 2018.
Other second-quarter 2019 business highlights include:
- GAAP income per diluted share from continuing operations was $0.18, compared to $0.26 for the second quarter of 2018; adjusted income per diluted share from continuing operations was $0.27, or flat compared to the second quarter of 2018.
- Gross profit margin expanded 90 bps to 35%.
- Operating income decreased 22.3%; adjusted operating income increased 6%.
- Generated cash flow from continuing operations of $10.9 million and free cash flow of $9.4 million.
Updated Full-Year Outlook
Full-year 2019 net sales are now expected to be down low-to-mid-single digits due primarily to weakness in consumer end-market demand. GAAP income per diluted share from continuing operations is now expected to be in the range of $0.62 to $0.72 for 2019, primarily as a result of a $4 million charge in the second quarter of 2019 for estimated environmental liabilities. The outlook for adjusted income per diluted share from continuing operations remains in the range of $0.75 to $0.85 for 2019.
“Second-quarter adjusted earnings were in line with our expectations, despite softer than anticipated demand in our consumer end market. Net sales were down 4.5% due primarily to continued weakness in the Recreational Vehicle (RV) market and softer than anticipated spring seasonal demand in our consumer end market. We expanded our gross margin to 35.0% and increased adjusted operating income by 6% as volume declines were more than offset by cost discipline, selective price increases and execution of our Distribution Segment transformation,” said Dave Banyard, president and chief executive officer of Myers Industries. “Within our Distribution Segment, we continued to make progress on the transformation. We grew sales for the third consecutive quarter and increased adjusted EBITDA by 16%. With this quarter’s performance, we are on track to meet our Distribution Segment EBITDA margin goal of 10% by the end of 2020.”
Second-quarter 2019 net sales decreased $6.3 million or 4.5% (4.2% excluding currency fluctuation) to $134.3 million, compared to the second quarter of 2018. The decrease was the result of a sales decline in the material handling segment.
Gross profit decreased $1.1 million to $46.9 million, compared to the second quarter of 2018. Gross profit margin increased 90 basis points to 35%. Favorable price-cost margin offset lower sales volume and an unfavorable sales mix during the quarter.
Selling, general and administrative expenses increased $2.3 million to $36.8 million, compared to the second quarter of 2018, due mostly to a $4 million charge for estimated environmental liabilities related to the New Idria Mercury Mine, which was partially offset by lower variable compensation and benefit costs and savings from the distribution segment’s transformation initiatives.
GAAP income per diluted share from continuing operations was $0.18, compared to $0.26 for the second quarter of 2018. Adjusted income per diluted share from continuing operations was $0.27, which was flat compared to the second quarter of 2018.
