Myers Industries, a manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets, has announced results for the third quarter ended Sept. 30, 2018.
Third Quarter 2018 business highlights include:
- GAAP net loss per diluted share from continuing operations of 60 cents, compared to net income per diluted share from continuing operations of 10 cents in the third quarter of 2017
- Adjusted net income per diluted share from continuing operations of 15 cents, compared to 10 cents in the third quarter of 2017
- Net sales were roughly flat compared to the third quarter of 2017
- Gross profit margin of 31.1% compared to 29% in the third quarter of 2017
- Generated cash from continuing operations of $13.9 million and free cash flow of $12.7 million
- The company recognized $33.3 million of charges related to the 2015 sale of its Lawn and Garden business – a non-cash, pre-tax charge of $23 million for a promissory note as well as a pre-tax charge of $10.3 million for a potential obligation under a lease guarantee
- The company expects that net sales for fiscal year 2018 will be flat to up low-single-digits compared to 2017
“Our third quarter financial performance reflects the seasonality we typically experience in the second half of the year. However, as indicated in our release issued on Oct. 4, 2018, our results were further impacted by a slowdown in the RV market and lower-than-expected sales in the Distribution Segment. Despite this, we were able to deliver strong free cash flow in the quarter of $12.7 million and 18% growth in adjusted operating income year-over-year,” said Dave Banyard, president and CEO of Myers Industries.
“As a result of the continued performance challenges in our Distribution Segment, we have begun implementing actions designed to reduce costs and improve the long-term performance of the segment,” added Banyard. “These actions are focused on increasing sales and contribution margins through broad organizational change within the segment, including adjusting our go-to-market strategy, rationalizing our product offering, and streamlining our supply chain and logistics. These actions are our top priority as we execute our long-term strategy focused on niche markets, flexible operations and strategic M&A.”
For fiscal year 2018, the company anticipates that total revenue will be flat to up low-single-digits on a constant currency basis compared to the prior year. Myers expects capital expenditures to be in the range of $6 million to $8 million. Net interest expense is forecast to be between $4 million and $6 million. Depreciation and amortization is forecast to be approximately $26 million. The Tax Cuts and Jobs Act will benefit the company through a decrease in its effective tax rate, which is expected to be approximately 25% compared to approximately 36% in 2017.