MYE - Earnings call 3 2023 | Myers Industries, Inc.

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Operator

Hello, everyone, and welcome to the Myers Industries Inc. Quarter 3 2023 Earnings Call. My name is Carla, and I will be your operator for today's call.

Following today's prepared remarks, there will be a Q&A session. [Operator Instructions] I will now hand over to your host, Grant Fitz, Executive Vice President and Chief Financial Officer of Myers Industries, to begin.

Grant Fitz

Mike President is Officer. Chief today me McGaugh, and our Executive Joining

in industry. are Vegas a the with quarter Show, and Las here press customers of very the suppliers We financial in third Aftermarket release at outlining both results we this Earlier morning, SEMA the Auto and XXXX. a issued exciting for meeting

We prepared remarks. have also posted a presentation to accompany today's

website filings. McGaugh. Slide our the now safe we release company's to and I adjusted adjusted and at based profit, call in you These received implied on Private Also, event. the or to and expectations be management's in to Reform not this harbor risks, be factors, remind may uncertainties under also turn and make gross income, you yet harbor may other advised a comments I'm that like them to after safe transcript Please Mike copy SEC expressed during discussed the of XX-Q EPS involve call. be to and the on are EBITDA, statements forth results is either be to is measures, company's factors for provisions disclosures. please on access may are information X as turn would which have periodic the along Please this archived adjusted in financial cause differ Relations uncertainties such that our presentation. PowerPoint, the our Slide forward-looking Investor of this some those current call the www.myersindustries.com Act Such may from X you the on the Further will statements call tab. that shortly statements. set can If of pursuant filings with materially of other call. over XXXX. of pleased Litigation or website This made risks, our Securities and these to non-GAAP concerning adjusted found webcast certain being PowerPoint the of operating turn XX-K these

Michael McGaugh

to The operational offset headwinds. excellence. our focus a us These quarter's near-term results have efforts commercial macroeconomic helped are and testament on

pleased of I'm seventh gross on have a margin result, we basis. delivered a our report consecutive to that adjusted As year-over-year quarter expansion

expanded In addition, margin adjusted EBITDA quarter. also this

gross of several excellence initiatives, Our continue is results. efforts, result proactive operations optimization initiatives generate These margin including and cost EBITDA margin and improved and to a resilience manufacturing sales containment planning. operational

demand, believe quarter's are particularly third we more are that ahead. continue our growth significant oriented, opportunities While top in was by softer end impacted consumer markets to line that there organic

historically we strategic Due reach In engaged can to in continued evaluating our leverage that operational to upon balance down and improvements, our an by debt, financial improving sheet, paying growth remain to and allowing inorganic already accelerate to us free addition balance our cash have strong and flow opportunities commercial build ratios. objectives. we sheet low proactively

fits the strategy We move for that opportunities evaluate continue potential with shareholders. ensuring discipline, our to and a our is right acquisition M&A

to criteria continue acquisitions. process, deal that strengthen and ensure flow, we are refine approach, disciplined our bolt-on target learnings this the embracing While recent our capture M&A of met our

as strong sheet positioned come a balance capabilities, reasonable cash more flow at price good valuation. with market We well and just to are targets

be we will said I've disciplined patient. before, and As

is is we structure the and We will right the deal right. so have the will capability time and do when to act

to call the quarter. through pass Now results Grant financial I will our the to walk for back

Grant Fitz

our results. for summary a X Please of turn Slide third to quarter

decline, calmer both verticals was third the segments lower demand experiencing sales hurricane of Handling Our consumer-facing lower to marine levels $XX.X sales or Material quarter million down the the This RV, to within a primarily across and net XX.X% with were our segment quarter Mike XX.X% business said, to season.Despite the third consecutive quarter quarter to gross as compared XXXX. due in the power XX.X% XXXX. a with addition the testament margin quarter expansion third seventh and basis Myers of This to sales of the increased XX our system. gross compared adjusted in marked with points for is, adjusted margin year-over-year

$X.X is quarterly price both decreased containment $X.X challenging gross segments macroeconomic offset million the were segment to not due million Our enough and decreases efforts adjusted and incentive in environment. or a expenses profit inflationary distribution in our to SG&A compared the facility as XX.X% lower XX.X% which increases efforts. cost decreased strategic year-over-year volume as SG&A basis XX same containment and of year. costs, sales in decreased with were a decrease percentage XX.X% points cost compensation, and of labor to result of last The the period part

year Third operating to the prior million profit, quarter, X.X% margin or million compared EBITDA to decreased the lower not result year basis the XX% points quarter period. decrease period Adjusted by the $X.X or was increased X% XX.X% EBITDA a as year. quarter third adjusted third offset compared $X prior SG&A the last with a Adjusted of $XX.X income of gross compared XXX to reductions. the in fully for in million same

was compared same $X.XX to EPS in $X.XX period the adjusted last Lastly, year.

Next, overview segment's third X to an our Slide please performance turn for of for quarter. the

sales compared sales or offset points RV, margin Handling's sales volumes. sales in due as year. $X.X year-over-year, adjusted period. or lower I to million by by segment markets, and $XX.X of basis $XX.X result increased the net prior $X.X margin segment, earlier. primarily decrease EBITDA driven Handling Distribution volume. for to marine XX.X% Material adjusted million a end The the XX% EBITDA or to but Net X.X% the consumer-facing The million XX.X% million, decreased initiatives, decreased decreased to the increase was ago XX year was the lower mentioned to compared demand softer self-help For or partially Material

spite $X.X result the distribution actions the through costs, largely distributions SG&A X.X% business of in year-over-year decline. lower the as with or improved and pricing due cost million initiatives. structure, increased Given adjusted revenue improved model million lower improve to year-over-year a lower EBITDA our $X.X self-help to labor improving to through structures organizational pricing, and the back-office Along year-over-year go-to-market of expenses were our

XXXX of Capital basis for Turning percent to the the last quarter to $X.X $XX.X points period stronger a in the primarily for XX primarily third cash decreased expenditures million. X. million totaled at and was quarter result XXXX million lower cash the working The Slide to quarter sales net cash due cash compared third was the same flow on of compared hand million of $XX.X collections. year, of were quarter for end Working increase as the Free to third XXXX. of $X.X capital capital. flow

continues with strategy to debt strong EBITDA sheet and to support balance adjusted Our Horizon our remains the X.Xx. of

XXXX. turn update for Slide to please fiscal the an Now for outlook our X on year

and macro the between digits. mid- to high seen softer demand revised continued single the several guidance markets, across we we've end our top Given challenges decline now to line

also As guidance we are lowering bottom a $X.XX $X.XX and this, adjusted our EPS diluted to of per EPS. diluted result to line for $X.XX

retain balance cash by is to consistent supported strong continue which generation. free sheet, We a

$XX year, in and capital tax full effective the For to approximate of we to be rate an expect million XX%. expenditures the million $XX to range

system from business and more the headwinds. improvements tangible the our business through run to Myers current combat our efficiently seeing to optimizing efforts macroeconomic operations remain are focused on We

expansion. that bottom are critical support creating significant capabilities significant future value, We support line growth and

call will turn to the Mike. I back Now

Michael McGaugh

areas focus a reference long-term each X Slide of use to our Please strategy, of X-Horizon to the where strategic X, highlighting we for Slide the execution. Horizon. pillars view drive alignment turn X and we key provides

this of Horizon revenue to $X billion As the EBITDA highlighted deliver is a performance an organization's of on target to XX%. the first the believe slide, reach. is the margin within of strategic continue objective at I

However, this expensive, delayed to Horizon coupled with either One believe near-term realization end of we the term. achieve decision near performance market companies to were target not target. I weakness, that or off-strategy that our can our in too this has acquire continue

pillars, these Before critical foundation are One. of we milestones shifting to successfully the and the take First strategic, Horizon reiterate building the this importance Two to The Myers Horizon Horizon our are of I to Three. of and actions want and progress reaching financial operational in against

Starting to would margin in color recent of lieu our challenging across in see provide conditions. meaningful on market XX. we've I Objectives. and still runway Slide what against expansion both organic We to quarter Turning One segments with for more the our revenue Horizon like accomplished growth.

Material production and the artillery to products military-related of our rearmament segment, Handling to Within continue worldwide. increased levels due experience demand militaries strengthening

We meaningful shortly. have a more to new recently received purchase and receive order expect

market We expect by the reduction military gap electrification. the caused to in growth due size to multiyear the can fuel bridge of the

shell then over gas the to to per X% our expect to X expect I cover year this the casing next size, EBITDA X% can growth to some. We and in years. reduce X military gap market

seed growth into and sales boxes injection in supplement automotive industrial, molding box agriculture to structural and decline sales in any XXXX equipment we our business, sales, food going phone cool new expect in its and Buckhorn our XXXX. Second,

will that growth performance see Third, material putting its more segments, our which In company's forward. due e-commerce third distribution the XXXX. real building a rates driver, markets an be significant about vehicles time segment, replacement. tire substantial market require segment increase will this demand distribution near handling above year-over-year, grow businesses Distribution We're diversification throughout have the place and this ensuring vehicle of going to products heavier are and megatrend, the the quarter at term.Myer's and for in is repairs excited and to that tire the electric grew in we end in organic significant seeing business frequent intermediate because stronger even and our we ensure resilient. maintenance EBITDA as financial electric we blocks opportunity for business We're

cars along have distribution has now average segments, business the to in in the aging both addition, to embedded expect tire attractive size, distribution is in continues and anticipate to this Across driving for opportunities acquisitions Myers and Myers road which fleet We highlight strategic business good even deliver Shifting organic the Tuffy company. In and in in are tire this is that with and we innovation. repairs, our performance It's beginning that supporting increase M&A. strategy communicated remain growth both past. more sales increase for of with become dedicated we other The future. to an the and investments the Mohawk the on scale the we to will and a supply. industry-leading high-quality, of business, important have of auto and age

strong us has opportunities. capabilities. flow Our processes past geographic the have our us and improve executed balance acquisitions delivered many growth, expansion, inorganic flexible and Along bolt-on years. scale the over generation and revenue cash X X learn these and provides evaluate acquisitions ability helping providing sheet to while growth with Myers EBITDA and

to ability more into Horizon companies, or company's we learnings One, acquisitions. on capabilities Based valuation. acquire obtained As the confident the right experience right larger impactful on the in will at enter right focus our in Horizon I'm Two, we and the

Moving third on excellence. to operational the pillar,

We control are during largely and keenly Myers operational margins improvements focused are the System as our system. demand. XX. reduction business us to The Myers efforts choppy measures in times out and enable on these self-help protect this to cost Most of as in supply turn our delivered driving build profitability. other procurement to well notably, pillar These Business results, initiatives. and Please meaningful Slide chain within

best and world-class mentioned I EPS into driving our delivering institutionalizing in a a growth vital company. are DNA practices and lasting As Myer's of industrial transformation ensuring component a they of is part Myers diversified before, sustainable

high-performing to important pillars, and most our our last our on one culture. of Moving

This of focused the talent Myers. meaningfully We Myers who who company. continue to caliber new world-class size value have we our well additions punch as the making legacy as are and grow at above to want in the on includes of weight performers

of customers, higher be to and and Our to. company all closing, to their produce in Myers values the ability I'm spite I'd living cap our like shareholders and has thank end companies careers model us model our in how of of proud has This leaders have level for hire have the and of than allows of a associates for operated proven our results access most its XXXX employ to for traditionally communities. a to talent and our capstone individuals to to access breakthrough. small in In our delivering challenged solid uneven market demand. at

inorganic over the to and the shareholder We will are ultimately deliver organic call questions. I'd With that, attractive opportunities, well future like which positioned to capitalize operator to turn on for returns. growth

Operator

question is Our from Vitanza first Instructions] Cowen. from [Operator Lance

Lance Vitanza

first the off revenue the start tough with X outlook. over better. Let's worse, gotten stuff, revenue the not trends declines, year-over-year quarters, The have

guess, for range imagine. quarter getting given broadly, or X%, or sales Given the the improve although, thinking by wide fair? to I it should and you that I I'm the can question. I that, fourth thinking would year guess seeing you're be is revenue XX%, X%, down the full surprised there We how really in about EPS what the point would the is more quarter, that trends I anything the quarter? keep that narrowness fourth I range, that guidance for answers us guess fourth Or suggest just can't simply forever. is in guess, Is they specifically of

Grant Fitz

it very months. probably to feel at. standpoint, markets don't is markets. to continue little to open. start business. big terms have the really in the What is where we to Those what you've be for those recover. we're be situation headwinds set head about get that need my Myers to hit guidance little transparent we more we will to for around tenancy Certainly, the is just I've looking that are in a big bit maybe quarter start see I set at objectives want be bit think the From I marine out now on say conservative able aren't on level and in to for X where hands The that general, a this been to I My think area within company. that in I is I us. of first question at. my to markets would we're a the we RV when to meet is

we've couple at months, over looking to up we've picking they see projecting some had, look of been at next are that If in last start you the of that to XXXX. the analysts that

year. we'll We probably on through marine conservative and go 'XX. we RV goes would expect still how bit more little flat then see into that that in are be the probably see that being as I a that next we'll we segments quarter, would continuing fourth the and

full orders is see a pretty positive activity QX, typically, commitment, about hurricane In this. that have be firm fourth We on significant something Then some $X.XX our The is and fourth We did going those which do do year. will per third in generate we're impacts on the in We start to have year we that going the impact orders, to some don't other quarter. of but have now starting of talked share. also, Certainly, that we did just on about, military for first a with with we're some where have a hurricanes got expectation year. aren't firm in very a news could a piece orders to season. this hurricane as play really quarter. until Essentially, pick the strong rest calmer have casing military change business, earnings quarter situation I into up of next I'll were The Mike issue the basis, things it. too. well, timing of the we've let comment as a that a the come shell

our structure, a starting if really of that's have. on excited really a of there would seen end just some don't we've to the ups some Certainly, done I indication than we blocks of you am has to future. the Certainly, level nice quite I what set and their as really blocks, I cost I this have up overall think is in that. be other distribution building put We've and overall what some working give Mike, will look really is QX to think know well are downs. the stable terms higher comments? markets I year. job business. our I are pretty in to say What some think other up foundational margin we EBITDA starting take about it's that

Michael McGaugh

We the the caveating that materialize. about end on with being having didn't range, guidance which lower talked quarter last traditional prior season, of a hurricane

been the on a also orders We got for note, orders. shift to some begin the positive we've next had orders and have confirmed, bit will military a timing year. that good be of going us. a That of is In firm very a business

issues We out into into Buckhorn a it. our would shifted business I next mold have the add well of revenue That's was as in repair that couple to Seabox also, Grant did of first and one third point year. another That's quarter some on other we factor. of has fourth

Lance Vitanza

way of third is the better really margin there My question the Myer's across is ability any going able to it follow-up, and fully that have follow-up, you Or know with going board, to first both news, impairing we but be still outstanding yourself upside? just these been to you actions, I performance is the quarter guess don't itself the in as is, know recover.We the so know segments. in risk all a to. markets leaving participate behind there to the aggressive when, end Myers speak? will. eventually they We APA, to putting participate Are they're

Michael McGaugh

to a on This with is something try find balance we the daily right basis.

upside output decisions volume that's rotomolding making consolidate optionality. we're we S&OP the not on of impacting and plants, footprint, capacity. plants preserving are the for our the and a example, we taking in more out, that's If our We We some how past getting and existing how it's about factory few run hidden that better, assets. of but do better, the our better our schedule cost business, talked growth to

marketing to Ohio. an be area On go the development. great and have that function commercial Milford, sales and actually product side, resourced. We marketing our innovation, to guns continues new well into continue we on That's consolidated

look, is, across then I An technologies innovation and already the fruit. molding each if out we're Buckhorn in seeing between actually collaboration boxes innovation mentioned, that mentioned as It's that the also material 'XX, and box coming automotive of that fruit efforts catalyzing got of that and food, I the that's already business. think bear are bearing example before, sales on, some I business. seed or potentially handling we've industrial 'XX cool

a organic on lot opportunity Just side. general of in good the

Lance Vitanza

is sales CapEx just on face given the follow-up certainly the sales all to mean stronger than I free thinking in about but to you just talk the and working should not capital, for, conceptually, continued revenue does pick really to the don't cash for strength capital it CapEx think use had we expected, continue up, are Could necessarily your me important, feel grow those. fourth they about and eventually we mostly expect appear where me function It related performance. Then you're just capital continue cash is me in there be about for working weakness. that you source just free cash the either and the surprising not of reversal quarter, should from to we With last but you'll get very or was of When going what durable it capital. cash they dismiss was goes working flow, outlook to some XXXX? the and flow just how sales of weak, be working a a working to capital? as then

Michael McGaugh

pass I'll I'll contextually, over and to just Lance, handle it Yes. then Grant.

capital. We helped discipline We basis. collections, are you times. the Ultimately, particularly manage catalyze putting Similarly, weekly how accounts aspects of choppy working review a a on results we and other that's how what's and that receivable the significant and on daily we it focus. manage see. a effort is time of amount It in around

results will those think continue. I

you generator. I be want do to that? on build a Grant, will cash Myers flow think good continue to

Grant Fitz

Yes.

cash receivable I've will for across free I comment One pleasantly their the is Lance, levels been would as see company, very organization the well of surprised good too. that we things continue some to manage to and is board that to center costs inventory the flow focused. very as their that From the continue They about, I've business. keep cash the well, that that say joined Mike's standpoint, front

manages it's of get that historically. very some. benefit be that I probably I the consistent of cash. I QX is We a like terms hydraulics, did been a of cash think our in think going and out as the help did percent from larger payment working business capital as pretty TTM what sales its of its overall are how strong works the call the in company Certainly, to to

Operator

from take from Instructions] Barger KeyBanc. now next question We Steve our will [Operator

Christian Zyla

growth first that Or actually retrench in Steve Christian try and internal focus Zyla continue is revenue you M&A This do to and you on infrastructure Barger. just is for accelerate starting to invest slowing, controls? question to process? My on are with cost

Michael McGaugh

sales area Well, that of I That's about X.X in to course, brought focus I ability of what the M&A in but the investment We've cost Myers marketing, this, on part the last over even us years one pursuing choppy is productivity. on and we is cost, the invest with and That the talked That investment is business and self-help. to talked and talk the opportunities. reliance gives is Lance, system. company this about we times. also this commercial, about that is think latitude we the

We that our are are maintain discipline acquire a move this. talk lot us focus about and strategy to on companies forward. continuing to We and

We eat. companies more profile have companies You I make that don't but comes we would want we that There's could or solid higher-quality you into not EBITDA of to fewer better to question. that than as we can acquire acquisitions. number that. a there Again, today. EBITDA rather out strategy. or do what a We that off accretive acquire do do attractive as not want the is valuation attractive are are

We starting see valuations are to now into back focus. come

were over high. still the to they XX I last XX months, think

fair That the piece, over at is acquire more we've are is companies missing got going think Christian the great months, we what's generation. on got we valuations. last going been be balance next last belief year. operations. great to cash sheet. XX environment in attractive, advantaged We've flow to great got and Our be we're to XX Grant? an where can valuable more a We've We target

Grant Fitz

I more Production time the system, Coming having reiterate Christian, in Myers business is equated to industry. called said, just from I'll and that going just It's our Yes. things business. automotive core the think, how the is part be standardize, Toyota a what to some of often the spent what team. will of efficient Mike I the the within that automotive, fundamental cost continuous make improvement. going version do simplify, Myers DNA continue is drive our just That, we of forward System. part

our to looking of not at capacity markets that always have are come when don't determine we when the we low a don't do we because able back, get trying and market we're a production of to is balance level capacity want what's size what the where at meet to are the Additionally, want they to we're right get situation to we a that. to then good demand. with We in like

Our does that that. think market Mike's I a to to going ops about To managing comment good team really do up is M&A. on pick just start overall. job the through

We the slowed year pretty firms how or sidelines. need things I on will private dramatically do where so activity down think As it maybe you a the develop. to equity has sitting see M&A plus a know, ago. are lot from was that of

a of will may We companies buildup are We over getting X next X are pace looking market some in to be than degree, at at not coming certainly the years the the probably been that what have to overpaying. higher past. a to

we've we to has are to that versus we some to and check box some accretive not have just sellers there be just to Those starting hit very going companies question, what will the profile opportunistic. buyers what acquisitions. that be Without companies strong going buy will differences our been are between business. tighten and we think I We're willing wanted the are buy for think to to very pay.

Christian Zyla

the the the expectation like because seem on don't can do too just look of XXXX, few just quarterly give first think the of you XXXX think you growth over you guess forward When I for be look What expectations? rate. reset want know about maybe looking few to in I you next if far of comments quarters? next to run half look just high-level running segments quarters, terms guidance. over we the ultimately ahead an organic

expectations in on Just any thoughts 'XX? maybe

Michael McGaugh

to just from and recall, boats Consumer share as be about. down, flower discretionary, soft of lot think, the continue takes $XXX, be RV pontoon consumer. piece, may I up marine, the it as off $XXX the is you going stay business of but mailbox. continue auto away intrigued a are aftermarket we wallet RVs, XXXX. to The make bottom inflation think, some and pots, we're That to going planters, I to, of of decorative very

choppiness there, on where are we that prepared about standpoint go optimistic from the there's shops your there, consequences revenue aging best the turnover and strategy big excited following large bit That's why service doing right with of There's sorted you got road. quite auto, year got from large Myers now depress that because good some national the in some the revenue. next those at revenue, We electric right on business, Las national lift, merger little autos of have us. to of We're on off still here. sales reps is on at a we're Show. There's Those going are business trends the and of frankly, tire will are strategy I'm the a as for we've distribution accounts. to as into Mohawk sales supply. Tire going some about getting reps, and vehicles between the accounts Again, the SEMA that. and consolidation volume to year. temporarily the the out is some then focusing Vegas well call customers, This to drive five because the be national morning the distribution seems which attendance

that's think a I real opportunity.

'XX, would Just you overall add? revenue on the, you outlook call what for it Grant the else the on hydraulics,

Grant Fitz

but on the with views little I and lot earlier, a about different there, think out mean of that. Yes. is bit what's still I RV question happen Marine going on we it talked a to Mark big

are to be fundamentals to going use year. quite really again, stay now tend hydraulics. we're I'll we're part Myers. little business of that the in think the a probably least next it's trial the that conservative term of Overall, going within right I to and compelling The at bit the strong first in for

good got the structure. Overall, that a more become and so history few we've growth. to the cost last years both flow does think our have can in Myers over and We're inorganic we trying I market trends. ebb variable cost of having organic with

we're stay continue driving as to of think growth our on part focused strategy. I to very going organic

Michael McGaugh

just to accordingly. e-commerce, be lot a auto Christian, resourcing actually about there. to talked big The us the casings. spot for we that bright military firm getting Then artillery to it little growth that going we're shell That are I traction bit. are and a continues of aftermarket. up spot, be a

you those not States. the As United world, in business to we around may sold well. was recall, militaries casings doing That actually the but

it last doubled three years. over the fact, two, In had

can orders Now that shown U.S. we're those supply qualified up the and we purchase have and orders. the

Given be in confident are going materialize, casings those we and is the rearmament Ukraine, for the projections we Middle the company. conflict the and that good significant. the shell and the when East, to in our in to don't get the some very know, continue I that artillery the but volume conflict feel quite How military trend

Christian Zyla

the kind of tire talents? Just we you should on about? talking of those be aftermarket see that seeing you optimism auto is where just segment talk for in that function the some the Sticking that distribution? about? improvement Is the that you repair with cost auto margin do margin about initiatives that aftermarket. your and thinking flow-through guys largely are price Can a that repair Or we're in ceilings given

Grant Fitz

I go-to-market and has has talked put It's business improvement. Jim a more price of and who's structure at as on basis. the focus really That's the best really the in of we competitive and see pricing what Gurnee ourselves He's overall, something some bit up little in the about to just new see the on additionally, our work cost cost side, within mix business. good opportunities a He significant Mike been a is still down of of is some he's within brought accounts is leader, pricing. Then that on low take going that getting just working real time we we're cost probably as optimize discipline expertise. to basically to getting, person the significantly to Part double would to margin looked quarter. sales there. bit that while digits worked opportunities good probably the on last have a position of we targeting also corporate within little a a the that larger a get the generating that. seen. of cost Value-based do some the how business from we've both to

we you through I the a the in indication QX EBITDA can to that, decline the that of growth quarter. revenue is good start how of spite had see think certainly,

Operator

We will from Dezellem next take Capital our William Titan now from Management. question

William Dezellem

business, casing displacing artillery you suppliers? the expanding are Or the to Relative simply an incumbent? is military

Michael McGaugh

demand. much It's so much the latter. There's just There's demand. so

that's that to drive and capital the plastic investment capital model by entrenched a space. our We're molded the wood battlefield. Obviously, is dominant that the the ramp upon not, in easier our material. working our significant and to We audience. to demand it's leaders still been and is a balance easier catalyst Mostly meet It's been It's of militaries demand. recycle U.S., us. new found with good points, and a we the just that conflicts investments metal What are Injection incumbents, user. are demand to and and the that metal the we preferred stronger from because evaluating found trying you're product are that outside ensure put to wood. we and return the in driven level. with replacing lighter Those have have but we and effectively to have proof that's other receptive still been

Grant Fitz

I are with military that on the the ready the been I to We've with it's up and getting really testament do where just supplier, the the been standards to just get we think military that point time that a working coming has. not to now thing to great start last easiest is working some orders to that have that engineered product over that demand. secured add, an William, to the in just a the fulfill on other team taken meet we is of and years It's would it's The now that. some

William Dezellem

Or also plastic you and that the suppliers plastic you wood metal source low alternatives? for incumbent finding creating Are are the sole weight are options?

Michael McGaugh

plastic William The metal guys, the are and to part. this a knowledge, creating wood situation. not my is

parts, a are parts. I'll difficult sweet for a we always intensity We difficult It's for in This like is and these complicated level fits moderate militaries. for where actually difficulty, technologies Quite to part We've to barriers been engineering it, really your technology manufacture. are spot. big where because talk we moderately making it. reasonably about That's entry difficulty a call plastic other with about quite and excelled. We competitive frankly, good products branded to our at, be that's lower, decade of that's your higher.

We terms design. continue each improve and to in of cycle and with durability each year

with durable about to As at good qualification sales don't to and a the it. do a part forum like will -- I I That's get talking the of those it's reason it our difficult quite why U.S. actually be the we a this, part for public result, pretty company. job feel that a make, allowed us mind that's in

William Dezellem

If, in do expect very guys for create all? will and to that going Or would plastic in. could plastic this competition ultimately and lighter come not be does to point a therefore, be weight metal desirable, there move you opportunity large is you at wooden fact, some will more the

Michael McGaugh

Yes.

better. always makes a any a sort us will environment, and that's think It competition makes think I -- I inevitably becomes is if more this in, good a thing. good of competition such significant flow opportunity, hey, thing. It

this and very to that Myers, old If incumbents habits short are term, feel technologies think term, metal wood is and suitable all short I product, the hard. about the die our but and I a you for opportunity they're significant at intermediate could For good position. argue fully still a to that product. our this time. durable it's We for customers, product it lot or a to more a premium business. a really point, has I that's sustainable a our step one of at premium sell at payback want take Well, but price one greater point is thing a

Buckhorn As to boxes the there's time, prop sell investment. more against the upfront an example, compelling, our value customer Over but corrugate. initial is structural phone

that's military. will point, continue at the product price why That's feel selling that's user. confident it's a are a We have we but longer-lasting higher -- our engineered to for that higher It's we'll success the better in health.

it right, on. with follow grant more could I'd early I'll conservative meaningful rather suit be underpromise You're opportunity. and a be and overdeliver.

Operator

can We that, call. have no questions registered we With further conclude today's today.

Myers Industries (MYE) 1 Nov 232023 Q3 Earnings call transcript