Myers Industries(US:MYE)2021-11-04 20:10Financial Performance - Net sales for the quarter ended September 30, 2021 were $200.1 million, an increase of $67.8 million or 51.3% compared to the same quarter in 2020[107]. - For the nine months ended September 30, 2021, total net sales were $561.9 million, an increase of $189.0 million or 50.7% compared to the same period in 2020[114]. Segment Performance - The Material Handling Segment net sales increased by $62.9 million or 72.5%, driven by $40.8 million from acquisitions and higher pricing of $15.6 million[108]. - The Distribution Segment net sales increased by $4.9 million or 10.8%, attributed to higher volume/mix of $2.8 million and higher pricing of $2.1 million[109]. - The Material Handling Segment net sales for the nine months increased by $165.1 million or 65.6%, with $98.9 million from acquisitions and higher pricing of $22.0 million[115]. Profitability - Gross profit for the quarter was $54.2 million, a 15.2% increase, but the gross profit margin decreased to 27.1% from 35.6% due to higher raw material and labor costs[110]. - Gross profit for the nine months was $159.6 million, a 20.8% increase, but the gross profit margin decreased to 28.4% from 35.4% due to rising costs[117]. Expenses - Selling, general and administrative (SG&A) expenses rose to $42.5 million, an increase of 25.4%, primarily due to incremental costs from acquisitions and higher salaries[111]. - SG&A expenses for the nine months ended September 30, 2021 were $122.2 million, an increase of $26.8 million or 28.1% compared to the same period in the prior year[118]. Interest and Tax - Net interest expense decreased by 12.3% to $1.1 million, attributed to a lower weighted-average borrowing rate of 4.24%[112]. - Net interest expense for the nine months ended September 30, 2021 was $3.1 million, a decrease of $0.4 million or 12.0% compared to $3.5 million in the same period in 2020[121]. - The effective tax rate for the nine months ended September 30, 2021 was 26.0%, up from 25.3% in the same period in 2020[122]. Cash Flow and Financing - Net cash provided by operating activities was $13.5 million for the nine months ended September 30, 2021, down from $31.3 million in the same period in 2020[124]. - Net cash used by investing activities was $46.7 million for the nine months ended September 30, 2021, compared to $8.5 million in the same period in 2020[125]. - Cash provided by financing activities was $19.7 million for the nine months ended September 30, 2021, compared to $14.6 million used for financing activities in the same period in 2020[126]. - As of September 30, 2021, the Company had $14.8 million of cash and $170.8 million available under the Loan Agreement[123]. - The Company’s interest coverage ratio was 17.43, significantly above the required minimum of 3.00 to 1 as of September 30, 2021[131]. Future Expectations - The company expects to see incremental benefits from pricing actions implemented in response to rising raw material costs throughout the year[107]. - The Company expects full year 2021 capital expenditures to be approximately $16 million to $19 million[125]. - The Company has not entered into any interest rate swaps or derivative instruments to fix the interest rate on its financing arrangements[133].