AKRON — Myers Tire Supply parent Myers Industries Inc.'s adjusted operating income fell 18% to $16.6 million as sales dropped 4% to $207.1 million during the first quarter, ended March 31.
Net income plunged 73% to $3.5 million in the quarter, compared with the prior-year period.
Myers' Distribution unit, which includes Myers Tire Supply and associated businesses, suffered a 59.4% plunge in adjusted EBITDA to $1.4 million, on a 13.1% drop in net sales to $54.9 million, compared with the year-ago period.
Net sales volume and revenue were negatively impacted by demand weakness in the automotive aftermarket, the company said, noting that it continues to implement pricing actions to counter cost inflation and improve margin.
"As I've consistently referenced, we will use our Self-Help playbook, including our operational and commercial excellence tools, to help us weather the current demand challenges in our more cyclical end markets. To that end, we are in the process of identifying decisive actions to further reduce costs and improve performance, targeting $7 million to $9 million in annualized cost improvements. These actions will be in addition to the previously communicated $8 million in synergies projected as part of the Signature Systems acquisition," President and CEO Mike McGaugh said.
Signature Systems engineers, manufactures and distributes composite matting, turf protection systems and portable flooring products for construction projects, large indoor events and outdoor venues.
"We believe the Signature acquisition will continue to serve as a positive pivot point in the transformation of Myers. We also continue to have a cautious outlook for the near term due to demand weakness in the cyclical vehicle and consumer end markets. On balance, our strategy, as rolled out during Investor Day, explains how we will invest in and grow our differentiated business and how we will use cost reduction and efficiency to drive improvement in our less differentiated businesses."
