Myers Industries Reports Q4 and Full-Year 2024 Financial Results
Myers Industries Inc. a leading manufacturer dedicated to developing products that protect and enhance the environment from the ground up, has announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported solid revenue growth, operational improvements, and strategic initiatives to drive future performance.
Fourth Quarter 2024 Financial Performance Compared to 2023
In the final quarter of 2024, Myers Industries demonstrated strong top-line growth, supported by strategic acquisitions and operational efficiencies. Key financial highlights include:
- Net Sales: Increased to $203.9 million from $191.1 million, reflecting a 6.7% rise. This growth was primarily driven by increased demand in the Material Handling segment and contributions from the Signature Systems acquisition.
- Gross Margin: Improved by 230 basis points to 32.3%, demonstrating enhanced operational efficiency and better cost management.
- GAAP Net Income per Diluted Share: Decreased to $0.11 from $0.34. This decline was attributed to one-time costs, including acquisition-related expenses and restructuring initiatives.
- Adjusted Earnings per Diluted Share: Declined to $0.19 from $0.29, reflecting higher SG&A expenses and lower pricing in some segments.
- Adjusted EBITDA: Increased to $27.5 million from $21.8 million, reflecting operational improvements and cost optimization strategies.
- Debt Reduction: Paid down an additional $13 million of debt during the quarter, reinforcing the company’s commitment to financial discipline.
Full Year 2024 Financial Highlights Compared to 2023
For the full fiscal year, Myers Industries reported steady revenue growth and strategic improvements in its cost structure:
- Net Sales: Rose to $836.3 million from $813.1 million, marking a 2.9% increase.
- Gross Margin: Increased by 50 basis points to 32.4%, reflecting improved pricing strategies and operational efficiencies.
- GAAP Net Income per Diluted Share: Dropped to $0.19 from $1.32 due to higher costs associated with acquisitions and restructuring efforts.
- Adjusted Earnings per Diluted Share: Declined to $1.04 from $1.39, primarily due to cost pressures in the Distribution segment.
- Adjusted EBITDA: Grew to $122.2 million from $98.0 million, reflecting improvements in the Material Handling segment and the benefits of strategic acquisitions.
- Cash Flow from Operations: Amounted to $79.3 million, with a free cash flow of $54.9 million, supporting ongoing investments in business growth.
- Debt Reduction: Total debt was reduced by $26 million since March 31, 2024, following the acquisition of Signature Systems.
CEO Commentary and Strategic Direction
Aaron Schapper, the newly appointed President and CEO, emphasized the company’s focus on long-term strategic growth.
“During my initial months at Myers, I have been impressed by the team’s commitment and drive to improve. There are substantial opportunities within our company, and I am confident in our ability to enhance value and achieve strong results. We are launching a strategic refinement process to prioritize high-value opportunities while executing a disciplined cost optimization plan,” Schapper stated.
To enhance efficiency and profitability, Schapper introduced the ‘Focused Transformation’ program, targeting $20 million in annualized cost savings by the end of 2025. The initiative will focus on SG&A expense reductions and optimizing operational workflows.
Share Repurchase Program
To reinforce shareholder confidence, Myers Industries’ Board of Directors approved the 2025 Share Repurchase Program, authorizing up to $10 million in common stock buybacks. This new initiative replaces the previous 2013 program and takes effect on March 10, 2025.
“This share repurchase program demonstrates our confidence in the strength of our business and our commitment to returning value to shareholders,” Schapper added.
Fourth Quarter 2024 Segment Performance
Material Handling Segment
- Net Sales: Increased 20.3% to $152.7 million from $126.9 million, primarily driven by the Signature Systems acquisition and strong demand in core product lines.
- Operating Income: Declined to $25.9 million from $29.9 million, reflecting pricing challenges and integration costs associated with acquisitions.
- Adjusted EBITDA: Grew to $34.7 million from $28.4 million, benefiting from cost efficiencies and improved supply chain management.
Despite revenue growth, profitability pressures stemmed from lower pricing in some legacy business areas and higher input costs.
Distribution Segment
- Net Sales: Declined 20.2% to $51.2 million from $64.2 million, as demand softened in key markets.
- Operating Income: Decreased to a loss of $1.6 million from $0.3 million, largely due to weaker volume and pricing pressure.
- Adjusted EBITDA: Declined to $(0.3) million from $1.2 million, reflecting margin compression and ongoing restructuring initiatives.
Full Year 2024 Segment Performance
Material Handling Segment
- Net Sales: Increased 12.0% to $621.7 million from $555.3 million, reflecting strong demand and acquisition-related contributions.
- Operating Income: Declined to $77.8 million from $100.1 million, primarily due to a $22.0 million non-cash goodwill impairment charge.
- Adjusted EBITDA: Rose to $142.2 million from $113.8 million, demonstrating operational efficiency gains and enhanced cost control.
Distribution Segment
- Net Sales: Declined 16.7% to $214.8 million from $257.9 million, as the segment faced ongoing pricing and volume challenges.
- Operating Income: Decreased to $3.4 million from $11.0 million, reflecting cost pressures.
- Adjusted EBITDA: Declined to $8.0 million from $15.9 million, impacted by margin erosion and restructuring costs.
Balance Sheet & Cash Flow
As of December 31, 2024:
- Cash on Hand: $32.2 million.
- Total Debt: $383.6 million.
- Net Leverage Ratio: 2.7x, with $244.7 million available under the company’s revolving credit facility.
In Q4 2024, Myers generated $27.3 million in cash flow from operations and $20.2 million in free cash flow, marking improvements over Q4 2023 figures of $15.4 million and $11.8 million, respectively.
For the full year, cash flow from operations was $79.3 million, while free cash flow stood at $54.9 million. Capital expenditures for 2024 were $24.4 million, compared to $22.9 million in 2023.
2025 Outlook
Schapper announced that while Myers Industries is optimistic about its sales trajectory and margin improvement potential, the company has decided to temporarily suspend formal annual guidance as it refines its strategic approach.
“Our ‘Focused Transformation’ program is aimed at long-term growth. As we refine our key strategies, we will ensure greater accountability and transparency in our operations,” Schapper concluded.
Conference Call Details
The Myers company will hold an earnings conference call and webcast for investors and analysts on Thursday, March 6, 2025.
Myers Industries remains committed to operational improvements, disciplined cost management, and enhancing shareholder value through Myers strategic investments and capital allocation initiatives.
