MYE - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, welcome to the Myers Industries Q2 2024 Earnings Call. My name is Kennis, and I will be coordinating your call today. [Operator Instructions] I will now hand you over to your host, Megan Beringer. Please go ahead.

Meghan Beringer

Thank you, Kenneth. thank second joining quarter and to conference everyone, XXXX review results. morning, you Myers for call Good I'm Meghan Beringer, Myers Industries. Senior Director of Investor Relations at

Executive our Officer. Earlier Joining President morning, of we Executive Mike XXXX. is press this for President Officer; release the a Chief quarter outlining Vice Financial me Fitz, results and Chief McGaugh, and issued Brent financial today and our second

for be discussed found forth XX-Q SEC other call. periodic the gross operating and from management's such expectations results the in www.myersindustries.com. may in remarks, will session. I Slide and involve Act This posted Such of uncertainties along a off is will prepared of this disclosures. are Relations turn adjusted presentation EPS which income, prepared Private this is measures, this on you after remarks, please also today's would certain may risks, profit, which other Investor and and safe these available those materially be like company's question-and-answer call a After to adjusted be to have the comments These may provisions current expressed webcasted host during and Also, information We we factors, tab EBITDA made or to with being financial and forward-looking the filings accompany statements. the we as statements based at safe are differ pursuant call some Securities also our cause Litigation website the stripped may remind on the set call. make filings. under risks, harbor that to company's concerning the Please non-GAAP adjusted presentation Further shortly statements that Reform to on X XXXX. implied advised of are factors event. uncertainties the our harbor transcript archived in these be adjusted

presentation. our turn I to of call X over McGaugh. Slide to turn Mike the to am please Now pleased

Michael McGaugh

second Megan. today review quarter progress to Good the you, our making begin and call. welcome of earnings in to review second highlights quarter. the a hand discuss XXXX to our Thank financial our then I the the strategy, performance from I morning, and the will everyone, will will outlook call I Grant we're and year. the executing for of detail remainder with in results

operational gross per quarter margin and of and $XX.X Systems is drive adjusted XX.X% investments second and were of margin improved Our reduction operating quarter EBITDA strong improvement by quarter terms business. to Myer's sequentially year-over-year. in margin company, results Adjusted in our worldwide recreational the helped results share EBITDA initiatives the first automotive and margin, demand performance. with expansion reflect million Signature with benefiting an us is across cost and performance Signature in of quarter also an the from markets. a second recently infrastructure enabled aftermarket marine the business vehicle, solid Combined This Systems. bolstered in of full Myers company's end our diluted acquired These Signature and year-over-year. earnings adjusted the headwinds EBITDA outpace adjusted

demand Investor As anticipated year. this we earlier choppy at through to I be this Day highlighted spring, our

cyclical. out marine In food of yet. our sales and beverage the markets. then, end is our automotive also are demand continued said I know seeing the we vehicle, seed in we soft box not end As and market, we're the to woods business aftermarket that Indeed, recreational

following seed box strong years in and of sales of -- cooling showing seed XXXX of signs box years XXXX, is demand. Following XXXX

actions increase going forward. of we to take consolidation volume company. productivity of to continue seed of help Myers business costs in the distribution our facility today's softer These other the decline and I've business reduce Atlantic centers and to as as box industrial consolidation our X the growing are announcement Indiana. We reduce the light include actions across demand, of molding In the gains We rotational due Iowa Supply our about our to to productivity well calls. our rotational the our costs spoken were in molding that footprint able into past mitigate of reduce Tire facilities in

We expect approximately to as annual be and completed the savings to XXXX these fully resulting closures of in well. cost be million XXXX realized in $X

in we've are the income track These we to savings on committed. will to in annualized actions, the million statement XXXX. these savings million deliver $X With $X impact cost

cost favorably I'm cyclical help initiatives confident also revert of to the our will improvement are XXXX productivity in million speak us In demand. stronger and his Systems. when addition, conditions the company for to in end with that some in our cost detail segment. of progress cost and we conditions more in acquisition experiencing demand our are also synergies levels to reduction of savings positioning deliver $X navigate our these markets connection annualized the while Signature will in on track synergy Grant

provide gained strong As lower year we of prudent referenced X to X, full guide strategy provides the for operational we reminder transform a X, horizon our it years. I'd But of Please as a hand $X.XX Horizon Slide $X.XX. In X of which to that and to adjusted last result built Grant Myers map soft speak a turn that road strategy few our our Industries. have to followed the and demand to a a foundation we to to moments experience decisions by our more continues actions we Systems Horizon goals the positioned was acquisition our commercial the I discussion per conditions largely earnings of accomplishing the our Grant, as target felt well range call of markets, in XXXX We X announce were like And date. we of and will a acquisitions. result, Signature bolt-on our smaller scale through continued excellence. outlook guidance over reviewing end share momentarily. before detailed a to

and to are Myers into businesses high-margin Horizon this that have strategy transform approach to to believe simpler, of branded commonalities enter progress call. This value portfolios. we X, a stronger, as automotive a On significant ours resulting company. established the maximizing brands on entry, we the of portfolio aftermarket X of growing clear are presentation to We from storage will Engineered our as of long a second solutions protection building Systems in we and in we as lens. the creation in are a and products, and well the barriers and growth unlock growth-oriented As benefit today's handling focus imperatives earnings tailwinds Slide power aftermarket term. we gains the quarter portfolios. on actions first growth long-term at X acquiring our Solutions X includes from continuing building productivity well, our and our strong engineered cost with our X in and industries strategic Notably, since reduction our Slides made meaningful we've realizing Signature journey, our value fundamentals and summarize horizon automotive reminder higher are on X the Horizon focus taking strategic

and to handling Engineered a innovation military infrastructure improvements Within and efficiency, and portfolio, priority improved an by on and the and growth the important our in maximize us quarter combined driving contribution automotive to across value and the transform that our creation. runway delever of X our Solutions long-term meaningful flow on confident These capital flow implementing value second appropriately, growth from our on continue and markets, profitability our path portfolio further our summary, costs, contained aftermarket reducing will with Slide for In we brands initiatives, we the progress this in portfolios, and maximizing listed continued customers. results in acquisition Signature and following we long for storage In shareholder the believe the are excellent cash end portfolio. we actions are demonstrate cash we invest we while power company, maximizing X and help are have protection focused ongoing Systems. drive value strategy delivering will us to

the to second financial review turn to Grant of outlook. and call detailed will a over I updates our for our quarter results Now

Grant Fitz

$XXX.X begin by XXXX, X.X% the to of legacy organic a X which the go as contributed with you, growth acquisition, to the sales of offset pricing financial Systems to Distribution or decline Slide X.X% partially on Handling the segment sales Signature quarter compared driven inorganic related XXXX by over million XX.X% were to quarter which year, $XX.X sales to lower Thank the Material would second the QX results. businesses. in increase million, primarily and Net summary of full I Mike. both volumes last second of compared like increased and

of $XX.X to acquisition by product the in SG&A and legacy expenses XXXX our to Systems, in XX.X% of same year, million, was gross in XX.X% percentage decreased quarter compared million. partially in gross $X.X or million decreased and and sales adjusted profit XX.X% adjusted gross $XX and offset largely gross The XXXX. in XX% quarterly decline or Our by was an by million an margin adjusted million Systems Adjusted increase Signature by to QX of driven variance last of driven was the and volume. material pricing lower period $X.X year. $XX.X compared million profit the year-over-year of XX.X% costs, or Signature margin offset with $XX.X last administrative first sequentially partially the X.X% a lower acquisition in mix favorable to Selling, as general compared XX.X% and X.X% business.

SG&A and XX.X% a Signature full incentive XX.X% in Excluding of XXXX. accruals, SG&A cost million been year-over-year as Myer's have of reflecting $XX driven sales compared declined in outlook income QX operating quarter year-over-year compensation percentage part initiatives. and XX% other million and savings increased to contributions Systems, as $XX.X Adjusted to in second the would by lower from expenses year

quarter, quarter quarter quarters Systems. again, which share in Adjusted the as adjusted year, finance by recent the last was to of of XX.X% XX.X% in interest And was in acquisition was basis one second EBITDA EBITDA by of strongest of increased Systems. per offset related compared sales used of margins, is Signature the and operating adjusted adjusted $X.XX Mike margin Adjusted our driven from XXXX, mentioned, compared improvement loan, increased compared history. which QX margin to last million, with $X.XX XX.X% increased with of second to driven EBITDA XXX prior variance $XX.X the Second the to performance this largely in term quarter points -- earnings to EBITDA our Signature the addition the year. to of year expense

Slide For of turn segment's each please overview XX. an performance, to

reduction adjusted and compared by to the lower Handling the the of Handling's million driven to The or adjusted $X to was by and pricing, decreased segment, increased on margin by to other and sales improvement inorganic million basis in to XX.X% the $X $XX.X EBITDA EBITDA to These presentation an our and adjusted QX were lower net deltas to positive a sales Material organic prior points $X driven million sales X.X% variances partially were was in in increase and resulting XX $XX.X the or million, XXX XX.X% or in the of EBITDA increased Material decline driven points with segment -- Systems achieve $XX.X offset to million related EBITDA quarter. of of margin increased pricing decreased to businesses. Signature volumes volumes which volume million XXXX. as and in by signature year or year-over-year the For increased acquisition, basis to million our XX% primarily partially offset decreasing partially compared performance today's or offset XX XX% targets sales costs. Slides decline $XX.X primarily from compared $X.X X.X% million, XX.X% XX in favorable prior mix adjusted second our year. by updates a increase decrease The sales sales provide to progress the Net pricing. as last for EBITDA Distribution material segment's million sales quarter and and by to cost a compared $X.X synergies resulting in and in contribution, annualized driven million margin Signature's year volumes acquisition. sales $XX.X X.X% pricing. XX.X% by The

rotational the are X the centers earlier, consolidation to our way as prefaced our facility the into Myers our actions Atlantic and well other we Mike business rotomolding of consolidation As Tire the These the rationalization improvements recent cost include on of reductions footprint. plants. of Supply achieve in these initiatives our Iowa distribution manufacturing and with efficiency our as molding

able reduce to our we've cost are our reduce to structure due We productivity footprint achieved. the and gains

to we initiatives. our On from for million these cost and on Through and is savings. business, are Myers to XX, improvements, dedicated Slide simplified deliver see signature material expect and integration will closures We continue completed productivity turn, in initiatives, which, you advantageously will a to years. we will will benefit that coming the be savings continue XXXX in that approximately our will plan operational in annualized $X in new efforts these combined create the and other positioned growth self-help with

cash necessary XX to the historical trends the capital the our a Working signature quarter a acquisition amount XX. of Systems of compared of XXXX. as sales second XXXX, Turning Free on at full was points through not of which reflects to basis because XXX working months to of for an we $X.X quarter Taking acquisitions. flow roughly result second net increase grow from for as the Slide million sales. yet is up million but capital full Signature debt was to have percentage $XX.X of XXXX of quarter second the of compared

you the pay to see the our leverage of XXXX we totaled Myers I deck, to with $XX.X X debt the Xx want quarter XX, signature. hand under within under closing were to allocation million. the And down Capital later finally, On and credit positioned will ratio credit X.Xx. Slide quarter of net are expenditures years as agreement below leverage cash second decrease million on of the for capital our was the in discuss to end well However, goal the agreement priorities. $X.X at ratio

through through creating strength initiatives increasing a of As X Myers the the we and volumes our are noted, focused brands. and cutting revenue power cost on simplified

-- under X acquisition, years focused are of Signature of on following debt Systems our the following targeting our Signature the Xx reducing are of debt recent We to reach the we recent systems. leverage through closing and within ratio a

of maintain At Myers for on credit want over balance hand our a had cash also facility. June, and business. large strong undrawn million sheet $XXX million end ample We of to the a and liquidity $XX.X of

to continue fund CapEx We requirements. will maintenance other and

Although our to as we reduced morning. expected revisions our CapEx can with you see, the this spend outlook

our for with continue to dividends. plan existing also We practices

to Finally, we similar with pending or additional acquisitions our X buybacks, brands create through of more commonalities acquisition to opportunities uses Signature potential with levels. down will debt value to evaluate timing the the beneficial historic targets to clear and cash when has paid power through most potentially of share been

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

to reflect approximately X% the diluted net $X.XX, per slower ranges today, diluted markets revising are challenges and in of which earnings to are: net certain We $XX demand end of XX% our the full expenditures and effective income per to rate year of growth conditions, guidance discussed macroeconomic in of the broader and adjusted within $X.XX, we in earlier range million $X.XX to the guidance share million, the range range tax capital our sales $XX share to XX%. $X.XX new to

the Signature year up long-term To second that to we continue are increased we our Turning foresee during quite opportunities capacity. to about. growth we Slide Systems of of to this from benefit half will excited projects. near-term I are XX. infrastructure demand, improvement the highlight want production that meet some ramping the

to growth sales markets also composites traditional is poised gravel. versus convert Myers more The economical we of On XX, -- are This this more site which economical Additionally, projects. and materials and removes appears another recently friendly. to and military launched exciting track have Slide environmentally a track with of and the example Diamond a product allows is in ability traditional tire that the on infrastructure new increasing product, reusable and for removal sediment products. Diamond manner mud from sector new construction efficient that

alternatives have and to as lightweight we serve successfully realize this casings, capabilities our products existing aligned animal most operational military opportunity. to Our

engaged NATO pleased meet wins for are Department are We we processes recent in in contract also virtual sector we and secured all the the -- States, and that qualifications these Europe. in products contract including or award virtually meet qualifications, of U.S. United additional vital Defense, potential and wins

revenue $XX military of estimating to XXXX. military $XX million to that sector business compared revenue are will for revenue We approximately only XXXX -- the in grow million in

Lastly, year, gallon time and barrel, the of July. the storm come to can as up power season, we to just start in season, in an the are hurricane in uptick particularly the given from seeing questions Houston gas on status this of sales our hurricane in recent current to note at an start early resulted X outages which the significant

to We from is a will what impacts expected strong continue season to storm potential monitor this the year. be

some Now to I will call comments. turn back for Mike the closing

Michael McGaugh

Slide turn Please Grant. to Thanks, XX.

in strategy. we I'd Horizon how I our X are forward my reinforce As conclude moving to remarks, like of

First, to will of outlined in and talk. automotive aftermarket component the $X I million efficiency This and that cost engineered in to cost of reductions annual the improve solutions of annual results took throughout by Grant reductions total action maximize XXXX highlighted in his our is the value impact cost quarter, we million portfolios. and $X approximately beyond. a

branded are handling products we growing in the protection storage, the portfolio. Second, and

growth have plastic This sustainable Signature another projects, driven all plays across where Scepter highlighted Systems. material. and being We power Acro Buckhorn, Mills, products our brands, all replace X of is largely our

operational to of our benefit X gains margin our commercial continues and in EBITDA from institutionalize excellence terms work to Third, excellence continued provide and Horizon our dollars.

like I'd for sectors in over that growth growth operator questions. the long-term growth With several We the prior to the can and the calls. that, position capitalize continue good call we company's establishment the runway reminder, discussed growth Two are And of these infrastructure. it a making long-term trends drive to help are over anticipate trends. turn I've As on gains will the business Signature's so examples to in we these military last, system our runway company through permanent Myers that in years. applications next

Operator

from our question Moore We KeyCorp. from Jacob Instructions] first have [Operator

Jacob Moore

Moore This is in Christian Jacob filling today. for

me. that a Should one quarter markets? about level relative Material in given think like in is of Or margins there benefit ongoing the ask deal. XQ? Handling First your segment, handling this following the for normalized bag Signature I'd Signature mix sustainability pressures of to to some material mixed the we core the for was variable

Michael McGaugh

Yes. in some from did Signature have the acquisition. we We margin certainly Systems improvement -- had Thanks, the Jacob.

this we starts very was why brands really that really that So business a value X contribute. something of at was to it that we acquisition good as the the and look the such Myers positive for effectively for create a thought our as thing gets to can that hydraulics power

So say, I continue general, we in see margins. would to strong

basis, will have favorable the and As and we with mix some this had margins a normalized ups downs We we volume, also well. impacted quarter, some have did as with but some offset mix. some which pricing

the And think general, so key it, these way some decline year bit is the what just, gross for margin more the -- now. started I second we in on in as to would little see that markets of I would we're some see would projecting. that's But taken seem right and some look half us end we've some these trends probably we're a headwinds we of this, I of slight driven conservative creating to be at really in say we say some is what the in by conservativeness that

Grant Fitz

appreciate just question. Jacob, Yes. that

we've are believe brands. good up material runway. If growth portfolio, by That company. it's you should basically XX, handling of XX% you segment, moats, from as XX% that Those leading there's There's We a where and out good the profit good on to -- of runway competitive metric. XX%. have break differentiated and about, be brands, the we Slide handling storage going results talked the all protection the

XX%. quality sustain question which business, has your directionally, the got the that so as and margins, largely you've contract Engineered that directionally, Handling Remember that one the Material business good of should And piece, there. in was a discussed we've also a the I think before, is manufacturing XX%, business EBITDA Solutions

watermarks be portfolio that's focused are that, it And again, we margins. that will as is So forward noted going quality our where the the think protection the But bit. be. a it should why storage really, handling on dilutes I of driving

Jacob Moore

sustainable Understood. same you that percent seen into my provide seeing Are what but And well quarters. next segment margins think mid-single-digit leads the and I few which it you're that in on is distribution. we've in Can given the thoughts distribution question, any one, in volatility the latest business? past

Michael McGaugh

Yes.

in margin. segment reported that EBITDA we distribution X% of So

few we higher where the the leverage either is before, are, aspirations business, good give you're XX% versus discussed in for is your forward. lose or couple rates, tire demand which now, by low on high again, is unwind we've hundred by had by margins quarters high EBITDA that's impacted over take, or And happens, tire That going we a directionally business to impacted of interest supply inflation. anything tire business, even got As What your resulting right said, that rates so you high year-over-year. I some number in impacted and off digits. points the single X%, that interest operating basis and directionally like double found or repair When retail demand going have digits that expectations. delivery is you've space, we that's a that's last

is same a have right year would hoped ago. not consumer so now, And as buying expected replacement rate tires or at your the we

wheel the result, that pressure are valves, sell tire we sensors tire waste, down. a As also

unwinding business. X% And case your that leverage is that in revenues with are year-over-year, so what operating the just is of when see off XX% Tire which you an Supply Myers

And we out. that be going So to the the we X what the business. about able talked done to system, ERP to X distribution X X% going we've because Jacob to reduce Grant, combat say? is reflected will a allows forward. got you that number ERP margins. But think probably trying X the streamlining, from same in were us months by cost centers fair the on work down actually X would to ultimately, simplifies over it we we It we're last take

Grant Fitz

would say so. I Yes,

we really of too of is see part as terms of a efficiency it more quality well play centers, I any these don't that. deterioration and because in consolidation an distribution else or the service anything levels other significant like think important

said delivery, with able to that that We might see the to we said, in of just the continue now we'll we as this business -- that's do overall past. some I has standards probably headwinds thinking the not But on-time So were Myers think perform that to right margin. improve well that the Mike be likely.

so quarters. of that, do is the one that future pretty looking I of for next range And X% couple think a margin out good the

Jacob Moore

it. Got

Can made footprint Just defense a then capacity? maybe speak is And products? from Should either couple more that related the sector have the to available in orders you ramp me. to the with an consolidation? ramping, a from accelerated any new see productivity we question segment gains you've that do that business in enabled you

Michael McGaugh

Yes.

volume satisfy And large to this better. of actually since streamline years, a arrived is processes excellence. out, simpler, operations here companies systems the while we all the personnel are of out market to can from demand. in planning, I make XX%, and all machine. been the the our talked really talked runway the I've operations us take and about capacity plants our So sales X, continue for the cap company planning X.X we I've then company, and we talked the And we and streamline the assets this is it operational and to more software that sales of finding brought have something better, footprint, last plants schedule about brought our that and these and that, some factor, the allows XX% in, us about unleashing result result, a given as a our operate as hidden I help

work these the what a XXXX, in -- consolidations of been and proof all in XXXX, doing S&OP operational XXXX. excellence point seeing it's is you're So we've

is it each have based As capacity, operate it higher, and out actually it, but plant story able how more we and there, units we we to schedule each upon the machine get relates how we our military, same of of the OEEs are that output to higher. ultimately, added some

more with able we're do less. to And so

And so the to fruit to years. that's continue over and actually coming going bear quarters

So Grant?

Grant Fitz

what to additional I on been Yes. able come manufacturing and a impressive background I really processes. mean, do been to color. some just add operations throughput would strong of that, pretty from team has the and equipment it's increasing just I the

that about The we other careful is because we maintain Jacob, trough be to are in that we capacity thing, want position. the still

our again in pick markets the thought ability of that too. process that some markets And maintain that up the these really requirements those well, and in of as with some as things that end we to shifts is, is future so nature meet might demand -- have additional and adding

So improvements, efficiency maintaining while for balance of allowing future. I when in consolidation it's a peaks think happen still good the the capacity opportunities future the

So...

Jacob Moore

helpful. That's

I military. with less more think in theme doing common is a the

operational? you And expect soon result? a as revenue an one about the additions be from think you're on how will I'd to do So there. associated Last should we additions like ramp fully track me. right When ask to the capacity in see those specifically. Signature

Michael McGaugh

Yes.

Jacob, you, again, I information. is So tell I'll what confidential recognizing can you that tell it

in a XXXX. announced addition capacity we've So

Condino on X the double business to things team, it in directional goal to of who We the to his in allow double up and we believe is business. for have X EBITDA an XXXX. these terms additional revenue of the capacity addition capacity that set that Jeff believe their is and business come X next and and will do that, CEO are over additions happen. years. I nominally this acquired this business or the I that when The will goal directional

been machine be One growth good coming So will online added that one another There's good in trends. year. this business, XXXX. has place for

Grant Fitz

good think our ramp up we Signature, expected I about -- as we there. least demand that would business and we the when to we're you said annually, XX% In we and similar general, grow is I to that. acquired to very for say the path asked it's just question we've on like at military, a capacity

And so this, element that but timing objectives some there have of the outlined. Mike certainly meet is we opportunities to

So...

Operator

question Company. have our Dable & from Anders Cole We from next

Carolina Jolly

Gabelli. from Carolina It's

update an the how Signature, -- So the to on end feel just with to to integration can last going is give question, just start you date? you

Grant Fitz

Carolina, it's going well. Yes,

On are it's qualitative the signature of And team. will the quality We rest additive really the well. to like actually, be believe, in add. the side, side, Myers. The Signature a the team, cultures nice been talent the of meshing soft the I

Michael McGaugh

[indiscernible] thats win.

piece, and initiatives coming had have of the as that cost-out number through are, we we On That synergies the mentioned, anticipated. track, as in financials the so again, are The still had the itself, delivery integration $X holds. Grant on million XXXX. quantitative

we're quantitative. to Carolina, anything overall, so and Grant, quite add? And qualitative with pleased its performance, the acquisition,

Grant Fitz

Yes, it's I both some good the at implement team we've operational on going to team. been The had some of some some performance a processes. had able other think centers sides been strong manufacturing some on learnings is implement Signature, processes supplement really we've where well. to able We've areas in they've our improvements had of ideas of that some excellence where to excellent type Signatures of but also

So it's felt could and opportunity with to synergies some been achieve really we identified acquisition. we had knowledge just drive share a the good the of we that

Carolina Jolly

Grant of just can on better Page year-over-year. in difference the cash -- conversion kind help understand me Perfect. you on And then XX, flow

Grant Fitz

Okay.

continuing. at flow ourselves flow a In conversion, we XX% cash essentially we conversion see actually terms cash business of --

chart we've -- have been in where is flow don't historically it presentation, that's business. cash We a We a conversion of conversion been earnings flow specific show cash at. good our kind but

improvements some of Signature with But with the said we where things of may working continue that see as Signature. so acquisition, gone overall, we XX full percent to have the have we do costs place we comments, improve really of with up, yet the -- some think get you in the months we as that's nature. of that And in driven that, we of that that by, but these capital and sales the don't can see has

think start time. that, So we normalize to that will over

Additionally, really Signature on little inventory but a does operations, bring what more have some conversion other cash of their we quite our than good. in bit is

that offsets think So we that. essentially

-- we forward to for over our we Myers. Angelina or think, conversion what so cash Carolina move And time, traditionally should, on continue with to see I continue

Carolina Jolly

market or if in Do commentary last And Perfect. has have some sequentially question, has for just segment, to seems you cadence and potentially any overall that around positive, of the -- July. the June on Great. cadence been then industry improving it specific as thoughts segment? just distribution

Michael McGaugh

seeing back. sales And the we're come Carolina,

we in last that back made that We et retread, in XXX-plus we them it change remember, So market, sales sales half did with we also and focused That it sales took the had little a cetera. and a reorient strategic took our from move reps, of to valves, -- right fast and to commercial, And conducting focused a weight, fact, our the personnel did force, have on change of the we I separate those year. sales the sensors. tire separate X% from retail market. The would as tire instances, to not deliver XX% wheel as bit Longer was I us calls based think end some down in in market gains backwards. space pressure term, expected. organization have are on in

value raised sometimes proposition, addressing the on and price We aggressive also We're tested business now gaining -- changing a doing back force, our lower in is little that. at Carolina What back of price. probably got a we're the we're of midst all going and price. we sales out

great is that over What share, service. of brand. XXXX. the part now got brand Our itself a recovering coming we're see market seeing Tire ability has salespeople a It's and we're and also I supply, great And I in that happen more it next gaining But That's that traction. a and expect changed we our don't to I see guidance. are of until Myers back why getting ultimately, great year.

that's So your that answers -- question. hopefully,

Operator

next Capital Management. our question Tieton William Dezellem have from from We

William Dezellem

questions. Two

quarters the going the $XX to of to evenly capping shipments if go? it First -- $XX year in dynamics this you the $XX million, million that does from of to rather you that of military being see and Walk million pretty next through do in relative Or us over ramp carrier business, year? ammunition up revenue the how order would, depending on please? ramp, lumpy end all,

Michael McGaugh

you. from good Bill, to hear Yes,

chunks. them business, seen contracts for is million is now chunks, $XX changed I'll if that what of chunks of those get that that we since XXXX that. have to call common we've And approved the on So million X what's we $XX

approved, revenue is those I feel And directionally numbers. year actually than you take things XX with these when and or $XX just year, good next million military, go of and this a Bill, with longer always numbers contract so expect. aerospace about production is lumpiness, The the we to

to a the the tailwind is for know those over that there's worldwide that X growth is amount could what to the so And million lumpy. know so years, I contract bit is each end good will $XX lot But it's there's of can a of Is of bill I be ramp believe product, little be. Once a the tremendous end? producing a runway. I it exactly because the And once start-up pretty sales, then And be growth once good the don't a is. approved, Myers. we're military in the conflicts. I business lumpy. XX don't these next of be little even. place, restocking running we're think Directionally, XX/X. going this contract

was in actually there on of packaging quarter, some As getting getting bit approved delay approved. some first we we and a mentioned the labeling --

Now that's and the results resolved it. going production we're that line XX/X, is and seeing been of

X, his So I'd But lumpy. this bill next start-up XX the had is the over directionally, Grant little trajectory bit X, at you say that years, look slide a correct. in on X, the if

William Dezellem

thought and be? that could helpful. And to opening you you X was reference talk contracts to possible. That's you Could there now you those remarks, And have very significant how additional additional contracts. said in think the I a they were

Michael McGaugh

their bucket, you we're and of the instability that in have bit to some that -- potential some believe that that about some some and are is artilleries, a The too countries Bill countries specifics -- because they're concerned directionally, get more same per top sourcing. of the line said, in are as Europe, much in can't there. Yes, of dealing I $XX the this But contract. their stand $XX restocking the conflict I little would their of with to specific militaries those said million publicly million

positions So Europe, negotiating as of Eastern in packaging. Europe some militaries again, those and on we've in this as well we're got artillery Western good with

William Dezellem

Longer material Great. movement or maps term, please. kind this Did Or composites. piece evidence have one to there to in convert And appreciate place? Signature, transition time. of you just year, taking to could, small is that. shifting that if or of this shift we wood at the I quarter a of any literally or from meaningful tangible then business is this

Michael McGaugh

Direction.

X XX% its through XX% XX% product In X To the in cited there plastic drive composite case remember, big if product. So U.S. installed gain that XX% is a acts and of it's sustainable Buckhorn is next or slide, we're trillion a Akro-Mils Signature. The see you've to base the and what again, Signature what the we're yes, Europe, with years XX% the is what XX% we wood let's particularly the years of Akro-Mils and the several spending Western is in the quite having continues that product recyclable primary and the the to cardboard see forecasting infrastructure similar $X product. extent, wood and same the lift. our case frankly, in decades, in and Grant X the conversions this that a to for very is, Buckhorn we growth our last and product years composite, of to a It's got or base over which share course of installed that's is the with then say, the the composite at over XX% from to of even, aluminum is product. substrate, in really XX%, similar even

again, piece of other available can conversion move the composites XX% The if XX%, just from to is you doubling conversion. you're basically or And the your XX% market.

specifically at But have don't to relook Day Investor I'd anyone go that On the Investor materials numbers, the tip at back of we disclosed part to for those of Day. Condino's my tongue, under Jeff the what is know and presentation I reference.

William Dezellem

going I'm What cardboard Mike, to or actually replacing proportion comments take Akro-Mils is one industry cardboard. the the with off and And to that your relative Great. business cardboard of that is on composite. of

transition mind how along wrapped just to to far composites get So from around are. really those bids trying my the cardboard in

Michael McGaugh

priced consistently materials little how much a to conversion the thing other is over And of stations, know it for highest is talked with organizational how there competitor, we XX% like again at is what look The XX%, I does bins Akro-Mils at to have compound and be GDP, it we've raw directionally, a higher. expect as little upon that GDP would durable, would I'd Buckhorn bit example, more heavy typically there's the rates, way one about and key at my Signature. business, and product be bit not manufacture we being itself, to it's binds based XX% industrial bit a restaurants The going is medical versus settings a to specific Akro-Mils supply Bill, but cardboard or a conversion Akro-Mils Akro-Mils be brand Signature. quality. rate about duty, to little the known it more bigger you if The GDP, On use Xx driver and a we think skis, plus an GDP Yes. in plastic. about I business. in nurses the tried if stations. But talk in

Operator

other [Operator no have questions. currently We Instructions]

Grant Fitz

to the Just Carolina, any one used had if I while churn was about I I cash questions. other we're percentage. waiting said Dave. had there's to actually see item the conversion. referring

we outstanding typically a our hand, cash So conversion on we our XX-day have When cycle. days sales less plus at days payable days about look outstanding.

to So that. just clarify

Meghan Beringer

me, follow time, with please additional quarter Slide for you the Well, call. All [indiscernible] and for Myers right. day. Meghan joining, Beringer, Industries great We you a to just you second invite all XX. up information earnings meeting and using Kenneth, on contact questions or thanks, thank found have joining Thank requests.

Operator

for concludes today's joining. you and gentlemen, Thank call. this Ladies

may You now your disconnect lines.

Myers Industries (MYE) 1 Aug 242024 Q2 Earnings call transcript