Myers Industries(MYE) - 2023 Q1 - Quarterly Report

Financial Performance - Net sales for the quarter ended March 31, 2023 were $215.7 million, a decrease of $9.7 million or 4.3% compared to the same quarter in 2022[96]. - The Material Handling Segment reported a net sales decrease of $24.1 million or 13.6%, while the Distribution Segment saw an increase of $14.3 million or 29.3% due to the acquisition of Mohawk[96][98]. - Gross profit for the quarter was $71.1 million, a decrease of $0.9 million or 1.2%, with a gross profit margin improvement to 32.9% from 31.9% year-over-year[99]. Expenses - Selling, general and administrative (SG&A) expenses increased by $4.1 million or 8.5%, primarily due to incremental expenses from the Mohawk acquisition[100]. - Net interest expense rose to $1.6 million, an increase of $0.5 million or 43.5%, attributed to a higher weighted-average borrowing rate[101]. Taxation - The effective tax rate decreased to 25.0% from 25.5% year-over-year, primarily due to lower state taxes[102]. Cash Flow and Liquidity - Net cash provided by operating activities was $25.8 million, significantly up from $7.3 million in the same period last year[104]. - Capital expenditures for the quarter were $9.1 million, with full-year expectations of approximately $25 million to $30 million[105]. - Cash used by financing activities was $11.5 million, with net repayments of the credit facility totaling $5.2 million[106]. - As of March 31, 2023, the Company had $28.2 million in cash and $193.5 million available under the Loan Agreement, indicating strong liquidity[103]. Financial Instruments and Risks - The Company has no off-balance sheet arrangements that are expected to materially affect its financial condition as of March 31, 2023[112]. - If market interest rates increase by one percent, the Company's annual variable interest expense would increase by approximately $0.5 million[113]. - The Company's net foreign currency exposure is generally less than $1 million, with no foreign currency arrangements or contracts in place as of March 31, 2023[114]. - The Company currently has no derivative contracts to hedge changes in raw material pricing, particularly for plastic resins[115].