AKRON — Myers Industries Inc. reported double-digit gains in earnings and sales for the quarter ended March 31,
Operating income for the period rose 48.1 percent to $12 million on 11.7-percent higher sales of $152.6 million. Net income jumped 120 percent to $6.8 million.
Myers attributed the earnings improvements to the positive effects of higher revenues.
President and CEO Dave Banyard noted that Myers saw "sequential improvements" in key operating metrics each month, and overall improvement in gross margin and operating profit from the fourth quarter of last year.
"Our focus on niche market strategies resulted in a third consecutive quarter of double-digit sales growth in our food and beverage end market," he said. "Increased demand coupled with the positive impact of last year's manufacturing footprint realignment and restructuring initiatives produced significant operating income growth and strong free cash flow generation."
Net sales in the Distribution Segment — which includes Myers Tire Supply — declined 7.2 percent from 2017 to $35.8 million, partially due to the company's planned exit from a low-margin custom product in its Patch Rubber business.
The segment's adjusted EBITDA fell 22.2 percent to $1.4 million.
The organization continues to work to improve sales force effectiveness in its Myers Tire Supply business, the company said.
For fiscal 2018, the company anticipates that revenue will be up low- to mid-single digits, based on strong order backlog but tempered by the non-recurrence of some large, one-time orders delivered in the second half of 2017.
Separately, Myers said its previously announced public offering of 4 million shares of common stock will be priced at $18.50 per share, valuing the offering at $74 million,
The offering is expected to close on or about May 22, subject to the satisfaction of customary closing conditions.
Myers said it intends to use the net proceeds from the offering to fund growth of its business, including through selective acquisitions, to repay a portion of its outstanding indebtedness and for other general corporate purposes.