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February 25, 2016 | Myers Industries, Inc.
Fourth Quarter & Full Year 2015
Earnings Presentation
2
Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial
results may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995
and are based on current indicators and expectations. Whenever you read a statement that is not simply a statement of
historical fact (such as when we describe what we "believe," "expect," or "anticipate" will occur, and other similar
statements), you must remember that our expectations may not be correct, even though we believe they are
reasonable. We do not guarantee that the transactions and events described will happen as described (or that they will
happen at all). You should review this presentation with the understanding that actual future results may be materially
different from what we expect. Many of the factors that will determine these results are beyond our ability to control or
predict. You are cautioned not to put undue reliance on any forward-looking statement. We do not intend, and
undertake no obligation, to update these forward-looking statements. These statements involve a number of risks and
uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable
statements. Such risks include:
(1) Changes in the markets within the Company’s business segments
(2) Changes in trends and demands in the markets in which the Company competes
(3) Unanticipated downturn in business relationships with customers or their purchases
(4) Competitive pressures on sales and pricing
(5) Raw material availability, increases in raw material costs, or other production costs
(6) Harsh weather conditions
(7) Future economic and financial conditions in the United States and around the world
(8) Inability of the Company to meet future capital requirements
(9) Claims, litigation and regulatory actions against the Company
(10) Changes in laws and regulations affecting the Company
(11) The Company’s ability to execute the components of its Strategic Business Evolution process
Myers Industries, Inc. encourages investors to learn more about these risk factors. A detailed explanation of these
factors is available in the Company’s publicly filed quarterly and annual reports, which can be found online at
www.myersind.com and at the SEC.gov web site.
Safe harbor statement
1. Summary
2. Financial Results
3. Segment Results
4. Summary & Outlook
5. Q&A
6. Appendix
3
Agenda
Summary
4
2015 summary
Fourth quarter:
• Consistent with Q3 results; below expectations
• Food and beverage end market was up sequentially; down YOY
• Auto aftermarket and Brazilian end markets softened in the quarter
• Commercial initiatives are taking longer than planned
• Favorable input costs and solid operational cost improvements
Full year:
• Adjusted EPS increased 8% to $0.57
• Net sales flat on a constant currency basis
• Incremental sales from Scepter acquisition offset lower sales in Ag end market
• Adjusted gross margin increased 350 basis points to 29.9%
• Free cash flow decreased from $27.6M to $25.6M
• Returned $46.7 million to shareholders through share repurchases and dividends
• Share repurchases of $30.0 million and dividends of $16.7 million
• Reduced net debt 20% to $186M
5Challenging end markets; improved margins and reduced debt
Financial Results
6
Fourth quarter 2015 financial summary
7Flat sequential performance with Q3
In $millions except ratios and percentages
(1) See appendix of this presentation for reconciliations from GAAP to Adjusted results.
Q4 Q4
Continuing Operations 2014 2015
Net Sales $158.3 $139.2 -(9)% constant currency
Adj. Gross Profit¹ $37.5 $40.8
Gross Margin 23.7% 29.3% +560 bps
Adj. SG&A¹ $31.4 $36.1 +15% increase
Adj. Operating Income $6.1 $4.7
Net Interest Expense $2.6 $2.1
Adj. Income from Continuing
Ops before Income Taxes $3.5 $2.6
Income Tax Expense $1.1 $0.9
Adjusted Income from
Continuing Ops¹ $2.4 $1.7
Adj. EPS from Continuing
Ops¹ $0.08 $0.06 -(25)% decline
Full year 2015 financial summary
8Operational improvements delivering higher margins
In $millions except ratios and percentages
(1) See appendix of this presentation for reconciliations from GAAP to Adjusted results.
FY FY
Continuing Operations 2014 2015
Net Sales $623.6 $601.5 Flat constant currency
Adj. Gross Profit¹ $164.7 $179.9
Gross Margin 26.4% 29.9% +350 bps
Adj. SG&A¹ $130.0 $143.4 +10% increase
Adj. Operating Income $34.7 $36.5
Net Interest Expense $8.5 $9.0
Adj. Income from Continuing
Ops before Income Taxes $26.2 $27.5
Income Tax Expense $8.9 $9.8
Adjusted Income from
Continuing Ops¹ $17.3 $17.7
Adj. EPS from Continuing
Ops¹ $0.53 $0.57 +8% increase
Balance sheet & cash flow
9Steady cash flow and solid financial position
10.4%
3.9%
5.4%
4.8%
2012 2013 2014 2015
Working Capital as a % of Sales
12/31/14 12/31/15
Cash 4.7$ 7.3$
Debt 236.4 193.0
Net Debt 231.7$ 185.7$
Adjusted EBITDA 65.9$ 71.5$
Net Debt-to-Adj. EBITDA(1)
3.5 2.6
(1) Calculation differs from one used for covenant compliance.
Segment Results
10
Material Handling results
11
$ Millions
Q4 summary Full-year summary
• Sales down (15%); down (10%) in CC
• Ag volume down DD; index pricing a contributor
• Completed facility rationalization in US and
restructured Brazilian operations
• Awarded $4.5 million new customer contracts for
auto & mfg reusable containers
• Launched 2 new pallets and 2 new totes for
distribution customers
• Sales down (4%); flat in CC
• Ag volume down DD; offset by Scepter acq
• Secured long term contracts with key Ag
customers; launched mobile cleaning service
• 2016 focus:
• Product launch and project wins
• Brazil operations
• Commercial process improvements
$ Millions
$432.1 $414.0
$42.3
$50.1
$0
$10
$20
$30
$40
$50
$60
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Net Sales Adjusted Income Before
Taxes
FY 2014 FY 2015
$110.1
$93.5 $9.0 $9.6
$0
$2
$4
$6
$8
$10
$12
$0
$20
$40
$60
$80
$100
$120
Net Sales Adjusted Income Before
Taxes
Q4 2014 Q4 2015
Solid cost improvements; focus on commercial actions
• Sales down 5%:
• Soft U.S. markets and headwind from
strong U.S. dollar
• Product sourcing and pricing actions offset
some of volume impact
• 30% increase in vending machine
installations
• Introduced new sales force process
Distribution results
12
$ Millions
Q4 summary Full-year summary
• Sales down 2%
• Mixed U.S. markets; strong US dollar and
Canada branch closure in 2014
• Launched new E-commerce system;
expanded channel for highway marking
• 2016 focus:
• Execute on sales force tools
• Strategic marketing activities
• New product introductions
$ Millions
$48.3 $45.7
$3.3
$2.9
$0
$1
$2
$3
$4
$0
$10
$20
$30
$40
$50
$60
Net Sales Adjusted Income Before
Taxes
Q4 2014 Q4 2015
$191.9 $187.6
$17.0 $16.6
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$0
$50
$100
$150
$200
$250
Net Sales Adjusted Income Before
Taxes
FY 2014 FY 2015
Foundation for growth is in place
Summary & Outlook
13
2015 in review:
• Completed strategic re-alignment with sale of Lawn & Garden
• Challenging year commercially
• Ag market and Brazil down significantly
• Solid operational execution
First impressions:
• On boarding process:
• Q1 – Listen and learn
• Q2 – Strategic planning
• Myers Industries strengths
• Great collection of brands
• Good ideas for growth; need better execution
• Focus for 2016
• Execute on growth initiatives within each brand
• Understand end markets and planning ahead of changes
• Develop enterprise strategy
14
CEO summary
Transition from re-alignment to growth
2016 outlook
• Served markets expected to be flat to
down low single digits
• Revenue growth initiatives for each
business within their niche:
• Sales team initiative in Distribution
• New products at Scepter
• Customer project wins at Buckhorn
• Strategic pricing
• Margin growth initiatives focused on:
• Input cost management
• Productivity improvements
• Strategic pricing
• SG&A review
• Capital allocation priorities:
• Capex to maintain and grow
• Dividend
• Pay down debt
15Mixed market signals; focus on execution
Consumer
12%
Vehicle
13%
Food & Beverage
16%
Auto
Aftermarket
30%
Industrial
29%
Percent of 2015 Sales
Low
single digits
Low
single digits
Low to mid-
single digits
Flat to down
low single
digits
Low to mid-
single digits
2016 Growth Outlook
Q&A
16
Appendix
17
2016 key assumptions
• Capital expenditures are expected to be $17 - $22
million
• Approximately 55% will be used for growth and
productivity projects
• Interest expense forecasted to be $9 - $10 million
• Depreciation and amortization forecasted to be $35 -
$37 million
• Anticipate effective tax rate for fiscal 2016 will be 35%
18
Reconciliation of non-GAAP measures
19
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSDENSED CONSOLIDATED GROSS PROFIT (UNAUDITED)
(Dollars in thousands)
Note on Reconciliation of Income and Earnings Data: Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP
financial measure that Myers Industries, Inc. calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of
Operations. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that gross profit excluding items that
are not primarily related to core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses gross
profit excluding these items as well as other financial measures in connection with its decision-making activities. Gross profit excluding these items should not be considered in
isolation or as a substitute for gross profit prepared in accordance with GAAP. The Company's method for calculating gross profit excluding these items may not be comparable
to methods used by other companies.
December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Gross profit as reported 40,254$ 36,715$ 178,278$ 161,279$
Restructuring expenses and other adjustments in cost of sales
Material Handling segment 563 799 1,620 3,261
Distribution segment - - - 182
Gross profit as adjusted 40,817$ 37,514$ 179,898$ 164,722$
For the Quarter Ended For the Year Ended
Reconciliation of non-GAAP measures
20
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSDENSED CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED)
(Dollars in thousands)
Note on Reconciliation of Income and Earnings Data: Selling, general and administrative expenses excluding the items above in the text of this presentation and in
this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above using GAAP amounts from the
unaudited Condensed Consolidated Statement of Operations. The Company believes that the excluded items are not primarily related to core operational activities.
The Company believes that selling, general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as
providing useful information regarding a company's operating profitability. Management uses selling, general and administrative expenses excluding these items as well
as other financial measures in connection with its decision-making activities. Selling, general and administrative expenses excluding these items should not be
considered in isolation or as a substitute for selling, general and administrative expenses prepared in accordance with GAAP. The Company's method for calculating
selling, general and administrative expenses excluding these items may not be comparable to methods used by other companies.
December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Selling, general and administrative expenses as reported 38,430$ 31,588$ 147,417$ 138,661$
Restructuring expenses and other adjustments in selling, general and
administrative expenses
Material Handling segment (972) (233) 1,345 (7,117)
Distribution segment (312) - (507) (830)
Corporate (1,058) - (4,830) (730)
Selling, general and administrative expenses as adjusted 36,087$ 31,355$ 143,425$ 129,984$
For the Quarter Ended For the Year Ended
Reconciliation of non-GAAP measures
21
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in millions, except per share data)
Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial
measure that Myers Industries, Inc. calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations. The
Company believes that the excluded items are not primarily related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to
core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses income (loss) excluding these items as well
as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss)
prepared in accordance with GAAP. The Company's method for calculating income (loss) excluding these items may not be comparable to methods used by other companies.
*Income taxes are calculated using the normalized effective tax rate for each year. Using the year-end 2015 effective tax rate, adjusted earnings per diluted share from continuing
operations would have been $0.12, $0.30 and $0.09 for the first, second and third quarters of 2015 respectively.
2015 2014 2015 2014
Material Handling
Income from continuing operations before income taxes as reported 8.1$ 8.0$ 49.8$ 31.9$
Patent infringement lawsuit - 0.2 (3.0) 3.3
Transaction costs - Scepter acquisition - - - 2.9
Inventory step-up - Scepter acquisition - - - 2.3
Restructuring expenses and other adjustments 1.5 0.8 3.3 2.0
Income from continuing operations before income taxes as adjusted 9.6 9.0 50.1 42.3
Distribution
Income from continuing operations before income taxes as reported 2.6 3.3 16.1 16.0
Restructuring expenses and other adjustments 0.3 - 0.5 1.0
Income from continuing operations before income taxes as adjusted 2.9 3.3 16.6 17.0
Corporate and Interest Expense
Corporate and interest expense as reported (11.0) (8.9) (44.0) (33.8)
Environmental reserve 0.2 - 1.5 -
Transaction costs, professional and legal fees and other adjustments 0.9 - 3.3 0.7
Corporate and interest expense as adjusted (9.9) (8.9) (39.2) (33.1)
Continuing Operations
Income from continuing operations before income taxes as reported (0.3) 2.5 21.9 14.1
Total of all adjustments above 2.9 1.0 5.6 12.1
Income from continuing operations before income taxes as adjusted 2.6 3.5 27.5 26.2
Income taxes* (0.9) (1.1) (9.8) (8.9)
Income from continuing operations as adjusted 1.7$ 2.4$ 17.7$ 17.3$
Adjusted earnings per diluted share from continuing operations 0.06$ 0.08$ 0.57$ 0.53$
Quarter Ended
December 31,
Year Ended
December 31,
Reconciliation of non-GAAP measures
22
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
COMBINED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands)
Note on Reconciliation of Income and Earnings Data: EBITDA as adjusted is a financial measure that Myers Industries, Inc. calculates according
to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment
and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations. The Company believes that EBITDA as adjusted
provides useful information regarding a company's operating profitability. Management uses EBITDA as adjusted as well as other financial
measures in connection with its decision-making activities. EBITDA as adjusted should not be considered in isolation or as a substitute for net
income (loss), income (loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company's method for
calculating EBITDA as adjusted may not be comparable to methods used by other companies.
December 31, 2015 December 31, 2014
Income from continuing operations as adjusted(1)
17.7$ 17.3$
Add: income tax expense(1)
9.8 8.9
Add: interest expense 9.0 8.5
Add: depreciation 24.7 24.2
Add: amortization 10.3 7.0
EBITDA as adjusted 71.5$ 65.9$
For the Year Ended
(1) From the Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes by Segment (Unaudited) included in this presentation.
Q4 2015 earnings conference call presentation 24 2_16_final

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Q4 2015 earnings conference call presentation 24 2_16_final

  • 1. February 25, 2016 | Myers Industries, Inc. Fourth Quarter & Full Year 2015 Earnings Presentation
  • 2. 2 Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial results may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators and expectations. Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we "believe," "expect," or "anticipate" will occur, and other similar statements), you must remember that our expectations may not be correct, even though we believe they are reasonable. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You should review this presentation with the understanding that actual future results may be materially different from what we expect. Many of the factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statement. We do not intend, and undertake no obligation, to update these forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. Such risks include: (1) Changes in the markets within the Company’s business segments (2) Changes in trends and demands in the markets in which the Company competes (3) Unanticipated downturn in business relationships with customers or their purchases (4) Competitive pressures on sales and pricing (5) Raw material availability, increases in raw material costs, or other production costs (6) Harsh weather conditions (7) Future economic and financial conditions in the United States and around the world (8) Inability of the Company to meet future capital requirements (9) Claims, litigation and regulatory actions against the Company (10) Changes in laws and regulations affecting the Company (11) The Company’s ability to execute the components of its Strategic Business Evolution process Myers Industries, Inc. encourages investors to learn more about these risk factors. A detailed explanation of these factors is available in the Company’s publicly filed quarterly and annual reports, which can be found online at www.myersind.com and at the SEC.gov web site. Safe harbor statement
  • 3. 1. Summary 2. Financial Results 3. Segment Results 4. Summary & Outlook 5. Q&A 6. Appendix 3 Agenda
  • 5. 2015 summary Fourth quarter: • Consistent with Q3 results; below expectations • Food and beverage end market was up sequentially; down YOY • Auto aftermarket and Brazilian end markets softened in the quarter • Commercial initiatives are taking longer than planned • Favorable input costs and solid operational cost improvements Full year: • Adjusted EPS increased 8% to $0.57 • Net sales flat on a constant currency basis • Incremental sales from Scepter acquisition offset lower sales in Ag end market • Adjusted gross margin increased 350 basis points to 29.9% • Free cash flow decreased from $27.6M to $25.6M • Returned $46.7 million to shareholders through share repurchases and dividends • Share repurchases of $30.0 million and dividends of $16.7 million • Reduced net debt 20% to $186M 5Challenging end markets; improved margins and reduced debt
  • 7. Fourth quarter 2015 financial summary 7Flat sequential performance with Q3 In $millions except ratios and percentages (1) See appendix of this presentation for reconciliations from GAAP to Adjusted results. Q4 Q4 Continuing Operations 2014 2015 Net Sales $158.3 $139.2 -(9)% constant currency Adj. Gross Profit¹ $37.5 $40.8 Gross Margin 23.7% 29.3% +560 bps Adj. SG&A¹ $31.4 $36.1 +15% increase Adj. Operating Income $6.1 $4.7 Net Interest Expense $2.6 $2.1 Adj. Income from Continuing Ops before Income Taxes $3.5 $2.6 Income Tax Expense $1.1 $0.9 Adjusted Income from Continuing Ops¹ $2.4 $1.7 Adj. EPS from Continuing Ops¹ $0.08 $0.06 -(25)% decline
  • 8. Full year 2015 financial summary 8Operational improvements delivering higher margins In $millions except ratios and percentages (1) See appendix of this presentation for reconciliations from GAAP to Adjusted results. FY FY Continuing Operations 2014 2015 Net Sales $623.6 $601.5 Flat constant currency Adj. Gross Profit¹ $164.7 $179.9 Gross Margin 26.4% 29.9% +350 bps Adj. SG&A¹ $130.0 $143.4 +10% increase Adj. Operating Income $34.7 $36.5 Net Interest Expense $8.5 $9.0 Adj. Income from Continuing Ops before Income Taxes $26.2 $27.5 Income Tax Expense $8.9 $9.8 Adjusted Income from Continuing Ops¹ $17.3 $17.7 Adj. EPS from Continuing Ops¹ $0.53 $0.57 +8% increase
  • 9. Balance sheet & cash flow 9Steady cash flow and solid financial position 10.4% 3.9% 5.4% 4.8% 2012 2013 2014 2015 Working Capital as a % of Sales 12/31/14 12/31/15 Cash 4.7$ 7.3$ Debt 236.4 193.0 Net Debt 231.7$ 185.7$ Adjusted EBITDA 65.9$ 71.5$ Net Debt-to-Adj. EBITDA(1) 3.5 2.6 (1) Calculation differs from one used for covenant compliance.
  • 11. Material Handling results 11 $ Millions Q4 summary Full-year summary • Sales down (15%); down (10%) in CC • Ag volume down DD; index pricing a contributor • Completed facility rationalization in US and restructured Brazilian operations • Awarded $4.5 million new customer contracts for auto & mfg reusable containers • Launched 2 new pallets and 2 new totes for distribution customers • Sales down (4%); flat in CC • Ag volume down DD; offset by Scepter acq • Secured long term contracts with key Ag customers; launched mobile cleaning service • 2016 focus: • Product launch and project wins • Brazil operations • Commercial process improvements $ Millions $432.1 $414.0 $42.3 $50.1 $0 $10 $20 $30 $40 $50 $60 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Net Sales Adjusted Income Before Taxes FY 2014 FY 2015 $110.1 $93.5 $9.0 $9.6 $0 $2 $4 $6 $8 $10 $12 $0 $20 $40 $60 $80 $100 $120 Net Sales Adjusted Income Before Taxes Q4 2014 Q4 2015 Solid cost improvements; focus on commercial actions
  • 12. • Sales down 5%: • Soft U.S. markets and headwind from strong U.S. dollar • Product sourcing and pricing actions offset some of volume impact • 30% increase in vending machine installations • Introduced new sales force process Distribution results 12 $ Millions Q4 summary Full-year summary • Sales down 2% • Mixed U.S. markets; strong US dollar and Canada branch closure in 2014 • Launched new E-commerce system; expanded channel for highway marking • 2016 focus: • Execute on sales force tools • Strategic marketing activities • New product introductions $ Millions $48.3 $45.7 $3.3 $2.9 $0 $1 $2 $3 $4 $0 $10 $20 $30 $40 $50 $60 Net Sales Adjusted Income Before Taxes Q4 2014 Q4 2015 $191.9 $187.6 $17.0 $16.6 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $0 $50 $100 $150 $200 $250 Net Sales Adjusted Income Before Taxes FY 2014 FY 2015 Foundation for growth is in place
  • 14. 2015 in review: • Completed strategic re-alignment with sale of Lawn & Garden • Challenging year commercially • Ag market and Brazil down significantly • Solid operational execution First impressions: • On boarding process: • Q1 – Listen and learn • Q2 – Strategic planning • Myers Industries strengths • Great collection of brands • Good ideas for growth; need better execution • Focus for 2016 • Execute on growth initiatives within each brand • Understand end markets and planning ahead of changes • Develop enterprise strategy 14 CEO summary Transition from re-alignment to growth
  • 15. 2016 outlook • Served markets expected to be flat to down low single digits • Revenue growth initiatives for each business within their niche: • Sales team initiative in Distribution • New products at Scepter • Customer project wins at Buckhorn • Strategic pricing • Margin growth initiatives focused on: • Input cost management • Productivity improvements • Strategic pricing • SG&A review • Capital allocation priorities: • Capex to maintain and grow • Dividend • Pay down debt 15Mixed market signals; focus on execution Consumer 12% Vehicle 13% Food & Beverage 16% Auto Aftermarket 30% Industrial 29% Percent of 2015 Sales Low single digits Low single digits Low to mid- single digits Flat to down low single digits Low to mid- single digits 2016 Growth Outlook
  • 18. 2016 key assumptions • Capital expenditures are expected to be $17 - $22 million • Approximately 55% will be used for growth and productivity projects • Interest expense forecasted to be $9 - $10 million • Depreciation and amortization forecasted to be $35 - $37 million • Anticipate effective tax rate for fiscal 2016 will be 35% 18
  • 19. Reconciliation of non-GAAP measures 19 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSDENSED CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: Gross profit excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities. Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP. The Company's method for calculating gross profit excluding these items may not be comparable to methods used by other companies. December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Gross profit as reported 40,254$ 36,715$ 178,278$ 161,279$ Restructuring expenses and other adjustments in cost of sales Material Handling segment 563 799 1,620 3,261 Distribution segment - - - 182 Gross profit as adjusted 40,817$ 37,514$ 179,898$ 164,722$ For the Quarter Ended For the Year Ended
  • 20. Reconciliation of non-GAAP measures 20 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONSDENSED CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: Selling, general and administrative expenses excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that selling, general and administrative expenses excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses selling, general and administrative expenses excluding these items as well as other financial measures in connection with its decision-making activities. Selling, general and administrative expenses excluding these items should not be considered in isolation or as a substitute for selling, general and administrative expenses prepared in accordance with GAAP. The Company's method for calculating selling, general and administrative expenses excluding these items may not be comparable to methods used by other companies. December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Selling, general and administrative expenses as reported 38,430$ 31,588$ 147,417$ 138,661$ Restructuring expenses and other adjustments in selling, general and administrative expenses Material Handling segment (972) (233) 1,345 (7,117) Distribution segment (312) - (507) (830) Corporate (1,058) - (4,830) (730) Selling, general and administrative expenses as adjusted 36,087$ 31,355$ 143,425$ 129,984$ For the Quarter Ended For the Year Ended
  • 21. Reconciliation of non-GAAP measures 21 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED) (Dollars in millions, except per share data) Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items above in the text of this presentation and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above using GAAP amounts from the unaudited Condensed Consolidated Statement of Operations. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for income (loss) prepared in accordance with GAAP. The Company's method for calculating income (loss) excluding these items may not be comparable to methods used by other companies. *Income taxes are calculated using the normalized effective tax rate for each year. Using the year-end 2015 effective tax rate, adjusted earnings per diluted share from continuing operations would have been $0.12, $0.30 and $0.09 for the first, second and third quarters of 2015 respectively. 2015 2014 2015 2014 Material Handling Income from continuing operations before income taxes as reported 8.1$ 8.0$ 49.8$ 31.9$ Patent infringement lawsuit - 0.2 (3.0) 3.3 Transaction costs - Scepter acquisition - - - 2.9 Inventory step-up - Scepter acquisition - - - 2.3 Restructuring expenses and other adjustments 1.5 0.8 3.3 2.0 Income from continuing operations before income taxes as adjusted 9.6 9.0 50.1 42.3 Distribution Income from continuing operations before income taxes as reported 2.6 3.3 16.1 16.0 Restructuring expenses and other adjustments 0.3 - 0.5 1.0 Income from continuing operations before income taxes as adjusted 2.9 3.3 16.6 17.0 Corporate and Interest Expense Corporate and interest expense as reported (11.0) (8.9) (44.0) (33.8) Environmental reserve 0.2 - 1.5 - Transaction costs, professional and legal fees and other adjustments 0.9 - 3.3 0.7 Corporate and interest expense as adjusted (9.9) (8.9) (39.2) (33.1) Continuing Operations Income from continuing operations before income taxes as reported (0.3) 2.5 21.9 14.1 Total of all adjustments above 2.9 1.0 5.6 12.1 Income from continuing operations before income taxes as adjusted 2.6 3.5 27.5 26.2 Income taxes* (0.9) (1.1) (9.8) (8.9) Income from continuing operations as adjusted 1.7$ 2.4$ 17.7$ 17.3$ Adjusted earnings per diluted share from continuing operations 0.06$ 0.08$ 0.57$ 0.53$ Quarter Ended December 31, Year Ended December 31,
  • 22. Reconciliation of non-GAAP measures 22 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES COMBINED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: EBITDA as adjusted is a financial measure that Myers Industries, Inc. calculates according to the schedule above using amounts from the unaudited Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes By Segment and GAAP amounts from the unaudited Condensed Consolidated Statement of Operations. The Company believes that EBITDA as adjusted provides useful information regarding a company's operating profitability. Management uses EBITDA as adjusted as well as other financial measures in connection with its decision-making activities. EBITDA as adjusted should not be considered in isolation or as a substitute for net income (loss), income (loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company's method for calculating EBITDA as adjusted may not be comparable to methods used by other companies. December 31, 2015 December 31, 2014 Income from continuing operations as adjusted(1) 17.7$ 17.3$ Add: income tax expense(1) 9.8 8.9 Add: interest expense 9.0 8.5 Add: depreciation 24.7 24.2 Add: amortization 10.3 7.0 EBITDA as adjusted 71.5$ 65.9$ For the Year Ended (1) From the Reconciliation of Non-GAAP Financial Measures Income (Loss) Before Taxes by Segment (Unaudited) included in this presentation.