Myers Industries (MYE) Gabelli Funds 48th Annual Automotive Aftermarket Symposium summary

Company overview and business segments

• Operates two main segments: material handling (plastics manufacturing) and distribution (auto aftermarket supplies), with 10 brands and 2,700 employees across North America and Europe.

• Over 80% of profits come from four power brands: Signature Systems, Akro-Mils, Buckhorn, and Scepter.

• Material handling focuses on storage, protection, and engineering solutions; distribution targets auto repair and heavy equipment markets.

• Revenue has nearly doubled in five years, reaching $824 million for the trailing 12 months.

Recent performance and strategic actions

• Third quarter results were below expectations due to macroeconomic headwinds, especially high interest rates impacting capital purchases.

• $15 million in new annualized cost savings announced to offset market pressures and stabilize the distribution business.

• New leadership in distribution is implementing operational improvements, including center closures, with expected results in coming quarters.

• Continued investment in e-commerce and high-growth sectors like military and infrastructure, with storm season revenue expected to continue into Q4 2024.

Product innovation and growth drivers

• Signature Systems, acquired for $350 million, is delivering strong results with high margins and double-digit growth projections, with new customers contributing over 20% of revenue in 2024.

• Scepter awarded for innovation and expects to exceed $25 million in sales this year and $40 million next year for military containers, positioned for long-term double-digit growth.

• Material substitution (e.g., plastics replacing wood/metal) is a key earnings driver, with products offering recyclability and cost-effectiveness across multiple markets.

• Launch of innovative products like the Scepter Flo 'n Go Powered Fueling Station, targeting professional and consumer markets.

• Akro-Mils and Connect-A-Dock products are expanding in order fulfillment and marine markets, respectively.