CORRESP 1 filename1.htm CORRESP

img16598778_0.jpg 

 

May 19, 2023

 

Via EDGAR

Attention: Tracey Houser

U.S. Securities & Exchange Commission

Division of Corporation Finance

100 F Street, N.E.

Washington, D.C. 20549

 

Re: Myers Industries, Inc.

Form 10-K for Fiscal Year Ended December 31, 2022

Filed March 3, 2023

Form 8-K Filed May 4, 2023

Response Letter Dated May 4, 2023

File No. 001-08524

 

Dear Ms. Houser,

 

Set forth below is the response from Myers Industries, Inc. (the “Company”) to an additional comment from the staff (the “Staff”) of the Division of Corporation Finance of the U.S. Securities and Exchange Commission (the “Commission”), dated May 17, 2023 (the “Comment Letter”), in connection with the Staff's review of our prior correspondence filed with the Commission on May 4, 2023, concerning the Staff's review of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and Form 8-K filed May 4, 2023.


For convenience of the Staff’s review, we have set forth below in bold type the additional comment of the Staff in the Comment Letter, with the Company’s response thereto immediately following the Staff's comment.

 

Form 8-K filed May 4, 2023
 

Exhibit 99.1

1.
We note your presentation of Adjusted EBITDA margin at the consolidated level without also presenting the most directly comparable US GAAP measure, or net income margin. As previously requested in comment 1, please expand your presentation of your non-GAAP measures to include a presentation, with equal or greater prominence, of the most directly comparable US GAAP measure as required by Item 10(e)(1)(i)(a) of Regulation S-K. Refer to the second and third bullets of Question 102.10(a) of the Compliance and Disclosure Interpretations on Non-GAAP Financial Measures for additional guidance.

 

Response: We acknowledge the Staff’s comment. In future filings, we will expand our disclosure to present net income margin with equal or greater prominence to consolidated Adjusted EBITDA margin. Below is an excerpt from Exhibit 99.1 of our Form 8-K filed on May 4, 2023 supplemented with the highlighted expanded disclosure to illustrate how we plan to address the Staff's comment in future filings.

 

 

 

Quarter Ended March 31, 2023

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

152,562

 

 

$

63,185

 

 

$

215,747

 

 

$

(8

)

 

$

215,739

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,976

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,065

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,167

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

25,351

 

 

 

2,237

 

 

 

27,588

 

 

 

(8,631

)

 

 

18,957

 

Operating income margin

 

 

16.6

%

 

 

3.5

%

 

 

12.8

%

 

n/a

 

 

 

8.8

%

Add: Acquisition and integration costs

 

 

—

 

 

 

109

 

 

 

109

 

 

 

126

 

 

 

235

 

Add: Restructuring expenses and other adjustments

 

 

421

 

 

 

179

 

 

 

600

 

 

 

10

 

 

 

610

 

Add: Environmental reserves, net(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

500

 

 

 

500

 

Adjusted operating income (loss)(1)

 

 

25,772

 

 

 

2,525

 

 

 

28,297

 

 

 

(7,995

)

 

 

20,302

 

Adjusted operating income margin

 

 

16.9

%

 

 

4.0

%

 

 

13.1

%

 

n/a

 

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,599

 

 

 

873

 

 

 

5,472

 

 

 

146

 

 

 

5,618

 

Adjusted EBITDA

 

$

30,371

 

 

$

3,398

 

 

$

33,769

 

 

$

(7,849

)

 

$

25,920

 

Adjusted EBITDA margin

 

 

19.9

%

 

 

5.4

%

 

 

15.7

%

 

n/a

 

 

 

12.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gross profit adjustments of $102 and SG&A adjustments of $1,243

 

(2) Includes environmental charges of $1,600 net of probable insurance recoveries of $1,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31, 2022

 

 

 

Material Handling

 

 

Distribution

 

 

Segment Total

 

 

Corporate & Other

 

 

Total

 

Net sales

 

$

176,636

 

 

$

48,861

 

 

$

225,497

 

 

$

(11

)

 

$

225,486

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,337

 

Net income margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,928

 

Add: Restructuring expenses and other adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

390

 

Adjusted gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72,318

 

Gross margin as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

31,220

 

 

 

3,301

 

 

 

34,521

 

 

 

(10,116

)

 

 

24,405

 

Operating income margin

 

 

17.7

%

 

 

6.8

%

 

 

15.3

%

 

n/a

 

 

 

10.8

%

Add: Acquisition and integration costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75

 

 

 

75

 

Add: Restructuring expenses and other adjustments

 

 

390

 

 

 

—

 

 

 

390

 

 

 

—

 

 

 

390

 

Add: Loss on sale of assets

 

 

261

 

 

 

—

 

 

 

261

 

 

 

—

 

 

 

261

 

Add: Environmental charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

700

 

 

 

700

 

Adjusted operating income (loss)(1)

 

 

31,871

 

 

 

3,301

 

 

 

35,172

 

 

 

(9,341

)

 

 

25,831

 

Adjusted operating income margin

 

 

18.0

%

 

 

6.8

%

 

 

15.6

%

 

n/a

 

 

 

11.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Depreciation and amortization

 

 

4,516

 

 

 

558

 

 

 

5,074

 

 

 

126

 

 

 

5,200

 

Adjusted EBITDA

 

$

36,387

 

 

$

3,859

 

 

$

40,246

 

 

$

(9,215

)

 

$

31,031

 

Adjusted EBITDA margin

 

 

20.6

%

 

 

7.9

%

 

 

17.8

%

 

n/a

 

 

 

13.8

%

 

 

(1) Includes gross profit adjustments of $390 and SG&A adjustments of $1,036

 

 

 

If you have any questions with respect to the foregoing or require further information, please contact the undersigned at (330) 761-6130.

 

 

Sincerely,

 

/s/ Grant E. Fitz

Grant E. Fitz

Executive Vice President and Chief Financial Officer