Record Q1 for Myers Industries

Ohio, US-based plastics manufacturer Myers Industries released its 2022 first-quarter financial results on Thursday, reporting significant year-over-year increases in net sales, gross earnings and net profits.

For the quarter ended March 31, 2022, the parent to the Scepter and Ameri-Kart plastic fuel tank brands reported net sales of US$225.5m, representing a 29% year-over-year increase from 2021 first-quarter sales of $174.4m. Excluding an incremental $10.9m in net sales from the company’s Trilogy Plastics acquisition, organic net sales increased by 23%, attributed mainly to favourable pricing and higher volumes.

Reporting by segment, the company’s material handling segment, which includes its Scepter and Ameri-Kart leisure marine fuel tank business, led all others with net sales of $176.6m, marking a 36% YoY gain over 2021 Q1 sales of $129.8m. Operating income for the segment increased by 84.4% to $31.2m.

Selling, general and administrative expenses increased by 21.3% year-over-year to $48m, reflecting factors including costs related to the Trilogy Plastics acquisition, higher wages and benefits, and higher facility costs.

Gross margin for the quarter increased to 31.9% from 28.9% in the prior Q1, leading to a gross profit of $71.9m and a 42.7% YoY increase over the gross profit of $50.4m reported for the previous first quarter.

Operating income of $24.4m increased by 124.6% above income of $10.8m for the prior Q1. Net income was reported as $17.3m, marking a 137% year-over-year increase over 2021 first-quarter net income of $7.3m.

“We drove our sixth consecutive quarter of double-digit top-line expansion”

– Myers Industries CEO Mike McGaugh

“We are pleased to report that the first quarter of 2022 was a record earnings quarter,” said Myers Industries president and CEO, Mike McGaugh. “We drove our sixth consecutive quarter of double-digit top-line expansion, supported by strong organic sales and sustained benefits from the acquisitions of both Elkhart Plastics and Trilogy Plastics. As a result, we have generated the second quarter of margin expansion while growing sales.”

The strong results combined with growing demand led Myers to raise its guidance for the 2022 fiscal year. In a call with analysts SVP/CFO Sonal Robinson said revenue gains attributed to the Trilogy acquisition, combined with continued organic growth, leave the company bullish on the plastics market.

“We now anticipate our net sales to increase in the low to mid- double-digit range, versus our previous outlook of a high single- to low double-digit range,” said Robinson. “Significant pricing actions taken throughout 2021, combined with healthy, underlying demand across most of our end markets, are expected to drive growth in 2022. We are raising our full-year adjusted EPS outlook from a range of $1.20 to $1.40 per share, to a range of $1.30 to $1.50 per share. At the mid-point of that range, this reflects more than a 40% increase over our 2021 adjusted EPS.”