Myers Industries Inc (MYE, Financial), a leading manufacturer of polymer and metal products, announced its third quarter 2023 results on November 1, 2023. Despite significant revenue headwinds in several key markets, the company continued to generate healthy cash flows and strengthen its balance sheet.
Financial Highlights
Net sales for the quarter were $197.8 million, down 13.3% from $228.1 million in the prior year period. The decrease was primarily due to lower volume/mix and lower pricing in the Material Handling segment. Gross profit decreased 12.9% to $62.4 million, while gross margin expanded 10 basis points to 31.5% compared to the prior year period. The company reported a GAAP net income per diluted share of $0.34, down from $0.37 in the prior year period. Adjusted earnings per diluted share were $0.38, compared to $0.41 in the prior year period.
Segment Performance
The Material Handling segment reported net sales of $132.5 million, a decrease of 14.9% compared to the prior year period. The Distribution segment reported net sales of $65.3 million, a decrease of 9.8% compared to the prior year period. Despite the decrease in net sales, both segments reported improved profitability.
Balance Sheet and Cash Flow
As of September 30, 2023, the company had cash on hand totaling $24.8 million and total debt of $69.3 million. Cash flow provided by operations was $22.1 million and free cash flow was $18.1 million, up from $9.8 million in the prior year period. The increase in cash flow was primarily driven by a decrease in working capital.
Outlook for 2023
Based on current market outlook and business forecast, the company expects a decline in net sales in the mid to high single-digit range for fiscal 2023. The company also expects net income per diluted share in the range of $1.20 to $1.28 and capital expenditures to be in the range of $25 to $30 million.
Despite the challenges, Myers Industries Inc (MYE, Financial) remains focused on improving its cost structures and making strategic investments for the future. The company's strong balance sheet and healthy cash flows indicate its resilience in the face of current market headwinds.
Explore the complete 8-K earnings release (here) from Myers Industries Inc for further details.
