Q4 2023 Myers Industries Inc Earnings Call
Operator: Thank you for your patience. The Myers Industries fourth quarter and full year 2023 results will begin shortly. During the presentation, you will have the opportunity to ask a question by pressing star followed by one on your telephone keypad. Thank you. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Hello and welcome to the Myers Industries fourth quarter and full year 2023 results. My name is Harry and I'll be coordinating your call.
Thank you for your patience, the Myers industries fourth quarter and full year 2023 results will begin shortly during the presentation. You will have the opportunity to ask a question about pressing star followed by one on your telephone keypad. Thank you.
[music].
Operator: If you'd like to ask a question during the presentation, you may do so by pressing star one on your telephone keypad. I'll now hand over to our host, Megan Behringer, Myers Industries Senior Director, Investment Relations, to begin. Please go ahead.
Megan Behringer: Thank you, Harry, and good morning, everyone. Thank you for joining Myers' Conference Call to review our 2023 fourth quarter and full year results. Joining me today is Mike McGaugh, our President and Chief Executive Officer, and Grant Fitz, Executive Vice President and Chief Financial Officer. Earlier this morning, we issued a press release outlining our financial results for the fourth quarter and full year 2023. We have also posted a presentation to accompany today's prepared remarks, which is available under the Investor Relations tab at www.myersindustries.com. This call is also being webcast on our website and will be archived along with a transcript of the call shortly after this event. After the prepared remarks, we will have a question and answer session.
Okay.
Okay.
Hello, and welcome to the Myers industries fourth quarter and full year 2023 results. My name is Harry and I'll be coordinating your cool.
If you'd like to ask a question during the presentation you may do so by pressing star one on your telephone keypad.
I'll now hand over to our host Meghan Beringer Myers industries Senior director of Investor Relations to begin. Please go ahead.
Thank you Harry and good morning, everyone. Thank you for joining <unk> conference call to review 2023 fourth quarter and full year results.
Megan Behringer: Please turn to Slide 2 of the presentation for our Safe Harbor Disclosure. I would like to remind you that we may make some forward-looking statements during this call. These comments are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
I mean today, it's Mike.
Our president and Chief Executive Officer, and Grant Smith, Executive Vice President and Chief Financial Officer.
Megan Behringer: Such statements are based on management's current expectations and involve risks, uncertainties, and other factors, which may cause results to differ materially from those expressed or implied in these statements. Also, please be advised that certain non-GAAP financial measures, such as adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted earnings per share, or EPS, may be discussed on this call. Further information concerning these risks, uncertainties, and other factors is set forth in the company's periodic FCC filings and may be found in the company's 10-K and 10-Q filings. Now, please turn to slide three of our presentation. I am pleased to turn the call over to Mike McGaugh. Thank you, Megan.
Earlier. This morning, we issued a press release outlining our financial results for the fourth quarter and full year 2023.
We have also posted a presentation to accompany today's prepared remarks, which is available under the Investor Relations tab at Www Dot Myers industry Dot com.
This call is also being webcast on our website and will be archived along with a transcript of the call. Shortly after this event.
After the prepared remarks, we will host a question and answer session.
Please turn to slide two of the presentation for our Safe Harbor disclosures.
I would like to remind you that we may make some forward looking statements during this call.
These comments are made pursuant to the safe Harbor.
Of the private Securities Litigation Reform Act of 1995 sub.
Michael P. McGaugh: Good morning, everyone, and welcome to our fourth quarter and full year 2023 earnings call. I'll begin with a review of our full year 2023 highlights, but first, I'd like to thank all of our team members whose hard work, dedication, and day-to-day efforts continue to improve the strength of our company. Our team has made incredible progress transforming Myers Industries over the past few years, and that progress is evident in our 2023 results as we delivered improvements in operating performance and free cash flow generation despite cyclical weaknesses in several of our end markets. We first outlined our Three Horizons strategy shortly after I joined Myers Industries in 2020, and since then, much of our team's work has been focused on building a strong foundation for the company.
Such statements are based on management's current expectations and involve risks uncertainties and other factors, which may cause results to differ materially.
As expressed or implied in these statements.
Also please be advised that certain non-GAAP financial measures such as adjusted gross profit adjusted operating income adjusted EBITDA and adjusted earnings per share or EPS may be discussed on this call.
Further information concerning these risks uncertainties and other factors are set forth in the company's periodic SEC filings and maybe found in the company's 10-K and 10-Q filings.
Now please turn to slide three of our presentation.
Michael P. McGaugh: I'm pleased with the progress we've made so far, and I look forward to sharing even more details of our journey at our upcoming Investor Day event on March 19th in New York City. At this event, we will outline our growth strategy for Horizon 2 and the updated long-term outlook for our company. We hope many of you will join us in person at this event.
I'm pleased to turn the call over to Mike Mcgaugh.
Thank you Meghan good morning, everyone and welcome to our fourth quarter and full year 2023 earnings call.
I'll begin with a review of our full year 2023 highlights, but first I'd like to thank all of our team members, whose hard work dedication and day to day efforts continued to improve the strength of our company.
Michael P. McGaugh: Now, on to our full year 2023 highlights. By many measures, I'm pleased with our results for the year. That said, I am less than satisfied that we did not build on the very strong results we achieved in the prior year.
Our team has made incredible progress transforming Myers industries over the past few years.
Progress is evident in our 2023 results as we delivered improvements in operating performance and free cash flow generation. Despite cyclical weaknesses in several of our end markets.
Michael P. McGaugh: Starting with the positive, calendar year 2023 was one of the top years in the history of our company for earnings per share, adjusted EBITDA, and revenue. We grew adjusted gross margin, expanding by 40 basis points year over year to 32%. We improved cash flow, producing $86 million in cash flow from operations and $63 million in free cash flow, a $15 million year-over-year improvement. Due to our team's continued focus on the self-help levers of operational excellence and commercial excellence, we were able to achieve these results despite challenging in-market conditions and macroeconomic and inflationary headwinds. While I'm proud of our team's efforts in the face of a challenging economic environment, I'm disappointed that on several measures, we fell short of our objectives for the year.
We first outlined our three horizons strategy. Shortly after I joined Myers industries in 2020, and since then much of our teams work has been focused on building a strong foundation for the company.
I am pleased with the progress we've made so far and I look forward to sharing even more details of our journey at our upcoming Investor Day event on March 19th in New York City.
At this event, we want liner growth strategy for horizon, two and the updated long term outlook for our company. We hope many of you will join us in person for this event.
Now onto our full year 2023 highlights.
On many measures I'm pleased with our results for the year.
That said I am less than satisfied that we did not build on the very strong results we achieved in the prior year.
Michael P. McGaugh: Compared to prior year results, our revenue declined just under 10% to $813 million, our adjusted EBITDA declined just over 10% to $98 million, and our adjusted EPS declined just over 17% to $1.39 per share. On the heels of a strong 2022, where we grew EBITDA 51% and earnings per share 73% year over year, these 2023 results were disappointing. To improve our results, we continue to implement the operational excellence and commercial excellence techniques and know-how brought to Myers by the experienced leaders I've recruited from large cap companies. Our self-help mindset and measures are now ingrained in our company and are being institutionalized and made permanent in the best practices playbook we call the Myers Business System.
Starting with the positive calendar year 2023 was one of the top years in the history of our company for earnings per share adjusted EBITDA and revenue.
We grew adjusted gross margin expanding at 40 basis points year over year to 32%.
We improved cash flow producing $86 million in cash flow from operations and $63 million in free cash flow of $15 million year over year improvement.
Due to our team's continued focus on the self help levers of operational excellence and commercial excellence, we were able to achieve these results despite challenging end market conditions and macroeconomic and inflationary headwinds.
While I'm proud of our team's efforts in the face of challenging area.
Face of a challenging economic environment I'm disappointed that on several measures we fell short of our objectives for the year.
Compared to prior year results, our revenue declined just under 10% to $813 million.
Michael P. McGaugh: This system raises the floor of our earnings potential during times of soft cyclical in-market demand, as we experienced over the past year. Additionally, the Myers business system is accelerating our transformation by delivering simplified and standardized work processes across our company. As a result, when we are faced with headwinds from our end markets, as we experienced in 2023, our businesses will be even more resilient than they have been historically. We already see many of the benefits of these practices.
Our adjusted EBITDA declined just over 10% to $98 million and our adjusted EPS declined just over 17% to $1 39 per share.
On the heels of a strong 2022, where we grew EBITDA or 51% and earnings per share of 73% year over year. These 2023 results were disappointing.
To improve our results we continued to implement the operational excellence and commercial excellence techniques and Knowhow brought to Myers to the experienced leaders have recruited from large cap companies are.
Michael P. McGaugh: For example, despite cyclical headwinds from RV, marine, and consumer end markets, the material handling segment delivered solid fourth-quarter results with strong margins. Operational excellence initiatives delivered more productivity, liberating more capacity on our assets, what I've referred to in past calls as a hidden factor. This additional production capacity is unlocked by optimizing how we operate and schedule our assets. We expect that this improvement in productivity will allow us to continue to optimize our asset footprint and reduce fixed costs in the future. In our distribution segment, the business did not deliver the results I expected. Fourth quarter results were disappointing, unfavorably impacted by a short-term decline in sales volume and revenue, primarily due to a strategic realignment of the sales organization undertaken in the third quarter. Sales revenue and volume were also negatively impacted in 2023 due to inefficiencies from the lack of a fully integrated ERP system in the segment. However, these inefficiencies have now largely been remedied with the recently completed consolidation of VRP systems for the distribution segment.
Our self help mindset and measures are now ingrained in our company and are being institutionalized and made permanent and the best practices playbook, we called the Myers business system.
This system raises the floor of our earnings potential during times of soft cyclical end market demand as we experienced over the past year.
Other the <unk> business system is accelerating our transformation by delivering simplified and standardized work processes across our company.
As a result, when we are faced with headwinds from our end markets as we experienced in 2023, our businesses will be even more resilient than they have been historically.
We already see many of the benefits of these practices.
For example, despite cyclical headwinds from RV Marine and consumer end markets. The material handling segment delivered solid fourth quarter results were strong margins.
Operational excellence initiatives delivered more productivity liberating more capacity on our assets what I've referred to in past calls as the hidden factory.
This additional production capacity is unlocked by optimizing how we operate and schedule our assets. We expect that this improvement in productivity will allow us to continue to optimize our asset footprint and reduce fixed cost in the future.
In our distribution segment the business did not deliver the results I expected.
Michael P. McGaugh: Longer term, both the Salesforce realignment as well as the newly integrated ERP system will enable Myers to better capitalize on its size, scale, and service level capabilities in this segment. As consolidation occurs in the tire repair industry, and as independent tire service centers are rolled up into national chains, Myers Industries is best positioned to serve these nationwide accounts. The distribution segment will also benefit from the Myers Business System initiatives, just as we are now seeing in the material handling segment. Finally, we announced in early 2024 the acquisition of Signature Systems, which moves us significantly toward our Horizon 1 target of $1 billion in sales at an EBITDA margin of 15% or more and positions us well for Horizon 2. In acquiring Signature, we have added to Myers a differentiated, profitable, high-growth business. Signature represents another important step in achieving even greater in-market diversification and less cyclicality in our overall results. We believe Signature Systems is the catalyst for Myers' transformation and will be a growth engine for the company.
Quarter results were disappointing unfavorably impacted by a short term decline in sales volume in revenue, primarily due to a strategic realignment of the sales organization undertaken in the third quarter.
Sales revenue and volume were also negatively impacted in 2023 due to inefficiencies from the lack of a fully integrated ERP system in the segment.
These inefficiencies have now largely been remediated with the recently completed consolidation of ERP systems for the distribution segment.
Longer term, both the sales force realignment as well as the newly integrated ERP system will enable myers to better capitalize on its size scale and service level capabilities in this segment.
As consolidation occurs on the tire repair industry and its independent tire service centers are rolled up into national chains.
<unk> industries is best positioned to serve these nationwide accounts.
The distribution segment will also benefit from the Myers business system initiatives, just as we are now seeing in the material handling segment.
Finally, we announced in early 2020 for the acquisition of signature systems, which moves the significantly toward our horizon, one target of $1 billion in sales and an EBITDA margin of 15% or more and positions us well for horizon two.
Michael P. McGaugh: I continue to be excited about our growth prospects, many of which have a long-term runway in our material handling segment. Our development programs in military cases and containers, continued strong demand for our industrial products, and the success in our e-commerce sales channel efforts are all solid multi-year growth platforms for Myers. In addition, we expect our distribution segment to demonstrate revenue growth and improve profitability as we begin to realize the benefits from the sales organization improvements and the ERP consolidation. Finally, bringing Signature into the Myers family will open new growth opportunities across broader end markets. Today, our company is unrecognizable from the one I joined in 2020.
In acquiring signature we have added to Myers, a differentiated profitable high growth business.
At your represents another important step in achieving even greater end market diversification and less cyclicality in our overall results. We believe signature systems as the catalyst for Myers transformation. It will be a growth engine for the company.
Continue to be excited about our growth prospects many of which have a long term runway in our material handling segment, our development programs and military cases in containers continued strong demand for our industrial products.
The success in our E Commerce sales channel efforts are all solid multiyear growth platforms for Myers.
Grant E. Fitz: Through Horizon One, we sharpened our acquisition and integration capabilities by deliberately learning from smaller-scale acquisitions. We now have more capability that enables us to pursue larger, more value-creating acquisitions like Signature. Our sustained progress with commercial excellence and operational excellence, which are robust self-help measures, have raised the floor of Myers' earning potential when some end markets are facing trough-like conditions. These key elements of Horizon One will serve as the foundation for long-term shareholder value creation as we advance through our Three Horizons strategy in the coming quarters and years. Now, I'll turn the call over to Grant for a detailed review of our 2023 fourth quarter and full year financial results, as well as more details on our 2024 outlook. Grant?
In addition, we expect our distribution segment to demonstrate revenue growth and improved profitability as we begin to realize the benefits from the sales organization improvements and the ERP consolidation.
Finally, bringing signature to the Meyers family will open new growth opportunities across broader end markets.
Today, our company is unrecognizable from the one I joined in 2020 through.
Through horizon, one, we sharpened our acquisition and integration capabilities by deliberately learning with smaller scale acquisitions.
We now have more capability that enables us to pursue larger more value, creating acquisitions like signature.
Our sustained progress with commercial excellence and operational excellence, which are robust self help measures have raised the floor of myers, earning potential when some end markets are facing trough like conditions.
Grant E. Fitz: Thank you, Mike. Please turn to slide four for a complete summary of the full year 2023 financial results. Net sales were $813.1 million, which decreased $86.5 million, or 9.6% compared to 2022, with the decline primarily driven by lower sales in the material handling segment, partially offset by increased sales in the distribution segment, primarily due to the Mohawk rubber acquisition. Adjusted gross profit was $259.9 million, and adjusted gross margin was 32%, compared to $284.1 million and 31.6% in 2022. On a dollar basis, the gross margin decrease was due to cost containment initiatives and price increases not being significant enough to offset lower volume. Now turn to slide five.
These key elements of Verizon one will serve as the foundation for long term shareholder value creation as we advance through our three horizons strategy in the coming quarters and years.
Now I'll turn the call over to grant for a detailed review of our 2023 fourth quarter and full year financial results as well as more details on our 2024 outlook grant.
Thank you Mike Please turn to slide four for a complete summary of full year 2023 financial results.
Net sales were $813 $1 million, which decreased $86 5 million or nine 6% compared to 2022 with the decline primarily driven by lower sales in the material handling segment, partially offset by increased sales and distribution segment, primarily due to the Mohawk rubber acquisition.
Adjusted gross profit was $259 $9 million and adjusted gross margin was 32% compared to $284 1 million and 31, 6% in 2022.
Grant E. Fitz: Our fourth quarter net sales were down $21.8 million, or 10.2% compared to the fourth quarter of 2022, with lower sales across both segments. Care handling vehicle and market driven by RV and marine, food and beverage, specifically agriculture, and consumer end markets continue to face meaningful headwinds in addition to the distribution segment experiencing lower volume. Adjusted gross profit decreased $7.7 million, or 11.8%, as price increases in the distribution segment and cost containment efforts were not enough to offset volume decreases in both segments due to the challenging macroeconomic and inflationary environment. Adjusted gross margin for the quarter decreased 50 basis points to 30.1%, compared with 30.6% in the fourth quarter of 2022. SG&A expenses decreased $8.7 million quarter over quarter, and SG&A as a percentage of sales decreased to 20.3 percent compared with 22.3 percent in the same period last year. The decrease is a result of lower professional services and incentive compensation.
On a dollar basis. The gross margin decrease was due to cost containment initiatives and price increases not been significant enough to offset lower volumes.
Now turn to slide five.
Our fourth quarter net sales were down $21 8 million or 10, 2% compared to the fourth quarter of 2022 with lower sales across both segments.
Handling vehicle end market, driven by RV, and marine food and beverage, specifically agriculture, and consumer end markets continue to face meaningful headwinds. In addition to the distribution segment experiencing lower volumes adjust.
Adjusted gross profit decreased $7 $7 million or 11, 8% as price increases in the distribution segment and cost containment efforts were not enough to offset volume decreases in both segments due to the challenging macroeconomic and inflationary environment.
Adjusted gross margin for the quarter decreased 50 basis points to 31% compared with 36% in the fourth quarter of 2022.
SG&A expenses decreased $8 $7 million quarter over quarter, and SG&A as a percentage of sales decreased to 23% compared with 22, 3% in the same period last year. The decrease is a result of lower professional services and incentive compensation.
Grant E. Fitz: Fourth quarter adjusted operating income decreased $0.6 million, or 3.6% compared to the prior year as a result of lower gross profit. Adjusted EBITDA was $21.8 million in the fourth quarter, a decrease of 0.3 million, or 1.5% compared to the prior year period. Adjusted EBITDA margin increased 100 basis points to 11.4% for the fourth quarter, compared to 10.4% in the same period last year. Lastly, adjusted EPS was $0.29, compared to $0.32 in the same period last year. Now please turn to slide six for an overview of the performance of our segments for the fourth quarter. For the material handling segment, net sales decreased $15.3 million, or 10.8%, compared to the prior period.
Fourth quarter, adjusted operating income decreased <unk> $6 million or three 6% compared to the prior year as a result of lower gross profit.
Adjusted EBITDA was $21 $8 million in the fourth quarter, a decrease of <unk> 3 million or one 5% compared to the prior year period.
Adjusted EBITDA margin increased 100 basis points to 11, 4% for the fourth quarter compared to 10, 4% in the same period last year.
Lastly, adjusted EPS was <unk> 29 compared to 32.
In the same period last year.
Now please turn to slide six for an overview of the performance of our segments for the fourth quarter for.
For the material handling segment net sales decreased $15 $3 million or 10, 8% compared to the prior period. The decrease was a result of continued demand softness across our diversified end markets with with vehicles, driven by RV and marine food and beverage driven primarily by agriculture and consumer fuel container products.
Grant E. Fitz: The decrease was a result of continued demand softness across our diversified end markets, with vehicles driven by RV and marine, food and beverage driven primarily by agriculture, and consumer fuel container products being especially challenging. The channel handling's adjusted EBITDA increased $2.9 million, or 11.2%, to $28.4 million, and its adjusted EBITDA margin increased to 22.4%, or 440 basis points, compared to the year-ago period. The margin increase was driven by self-help initiatives paired with favorable sales mix, partially offset by lower sales volume and price. Net sales for the distribution segment decreased $6.4 million, or 9.1% year over year, primarily due to lower sales volumes partially offset by favorable prices.
<unk> being especially challenged.
Material handling adjusted EBITDA increased $2 $9 million or 11, 2% to $28 4 million and adjusted EBITDA margin increased to 22, 4% or 440 basis points compared to the year ago period. The margin increase was driven by self help initiatives paired with favorable sale.
Mix, partially offset by lower sales volume and pricing.
Net sales for the distribution segment decreased $6 4 million or nine 1% year over year, primarily due to lower sales volumes, partially offset by favorable pricing.
Grant E. Fitz: Distributions adjusted EBITDA decreased $3.8 million, or 76.4%, to $1.2 million, primarily due to pricing actions being offset by higher product costs and lower sales. Turning to slide seven, free cash flow for the quarter of 2023 was $11.8 million compared to $15.2 million for the fourth quarter of 2022. However, working capital as a percentage of net sales was flat compared to the same period last year.
Distributions adjusted EBITDA decreased $3 $8 million or <unk> 76, 4% to $1 $2 million, primarily due to the pricing actions being offset by higher product costs and lower sales volume.
Turning to slide seven free cash flow for the quarter of 2023 was $11 $8 million compared to $15 $2 million for the fourth quarter of 2022 working capital as a percentage of net sales was flat compared to the same period last year.
Grant E. Fitz: Capital expenditures for the fourth quarter of 2023 were $3.6 million, and cash on hand at the quarter end totaled $30.3 million. For the full year, year-over-year operating cash flow increased by $13.6 million, and free cash flow increased by $15 million. We ended fiscal year 2023 with a debt-to-adjusted EBITDA ratio of 0.7 times, and as you are all well aware, our strong balance sheet enabled us to close on our previously announced $350 million acquisition of Signature Systems on February 8th. The transaction was completed on an all-cash basis and funded through an amendment and restatement of Myers' existing loan agreement, which maintains a $250 million revolving credit facility Pro forma for the signature acquisition as of closing on February 8, the company's net leverage ratio was approximately three times, which is within our previously stated target range.
Expenditures for the fourth quarter of 2023 were $3 $6 million in cash on hand at the quarter and totaled $33 million.
For the full year year over year operating cash flow increased by $13 $6 million and free cash flow increased by $15 million.
We ended fiscal year 2023, with a debt to adjusted EBITDA ratio of one seven times and as you are all well aware our strong balance sheet enabled us to close on our previously announced $350 million acquisition of signature systems on February eight transaction.
And was completed on an all cash basis and funded through an amendment and restatement of Myers existing loan agreement, which maintained at $250 million revolving credit facility, along with a new 400 million dollar five year senior secured term loan a.
Pro forma for the signature acquisition as of closing on February eight the company's net leverage ratio was approximately three times, which is within our previously stated target range and we expect to reduce leverage to two times over the next two years through our balanced capital allocation strategy.
Grant E. Fitz: And we expect to reduce leverage to two times over the next two years as part of our balanced capital allocation strategy. Our combined senior secured loan agreements enhance Myers' overall liquidity profile, and our balance sheet remains flexible to support smaller acquisitions over the near term if acquisitions materialize at the right price. Now please turn to slide 8, where we've provided our outlook for the fiscal year 2024. Starting with Topline, we expect net sales to grow between 15% and 20% during 2024 as compared to the prior year. This growth will be driven largely by the impact of contributions from our recent acquisition of Signature Systems. On an earnings-per-share basis, we expect diluted EPS to be between $1.03 and $1.23 per share, and adjusted EPS will be between $1.30 and $1.45. Of note, these ranges are also inclusive of Signature Systems' Forecasted Financial Results. Capital expenditures in the fiscal year 2024 are expected to be in the range of $35 to $40 million, with an effective tax rate of 25 percent.
Our combined senior secured loan agreements enhance enhances Myers overall liquidity profile and our balance sheet remains flexible to support smaller acquisitions over the near term if acquisitions materialize at the right price now.
Now please turn to slide eight where we have provided.
Look for the fiscal year 2024.
Starting with top line, we expect net sales to grow between 15 and 20% during 2024 as compared to the prior year. This growth will be driven largely by the impact of contributions from our recent acquisition of signature systems.
On an earnings per share basis, we expect diluted EPS will be between $1 <unk>.
And $1 23 per share and adjusted EPS will be between $1 30, and $1 45 of note. These ranges are also inclusive of signature systems forecasted financial results.
Expenditures in the fiscal year 2024 are expected to be in the range of $35 million to $40 million with an effective tax rate of 25% two.
Grant E. Fitz: 2024 will be an exciting year as we return to double-digit revenue growth and work to integrate the signature business. We are focused on controlling what we can't control to improve profitability amidst ongoing cyclical challenges in our end markets, and look forward to discussing both our 2024 and longer-term strategy and outlook with investors at our upcoming Investor Day event later this month. Now, I will turn the call back over to Mike.
2024 will be an exciting year as we returned to double digit revenue growth and work to integrate the signature business. We are focused on controlling what we can control to improve profitability and miss ongoing cyclical challenges in our end markets and look forward to discussing both our 24 2024 and longer term.
<unk> and outlook with investors at our upcoming Investor Day that later this month now I will turn the call back over to Mike Mike.
Michael P. McGaugh: Thank you, Grant. On slides 9 and 10, we have our legacy slides, which provide an overarching view of the Three Horizons strategy, in addition to the strategic pillars of this long-term roadmap. Before we conclude today's call, I'd like to spend a few minutes recapping the success we've achieved on our Horizon One initiatives, which will serve as a good primer for investors and analysts ahead of our investor day later this month. Our strategy is based on four strategic pillars, organic growth. Strategic M&A, Operational Excellence, and having a high-performing culture. Focusing on these pillars over the past several years has created a strong foundation for Myers and positioned us for improved profitability as we begin to execute on Horizon 2. Today I will speak to just two of the pillars, operational excellence and people and culture. I'll speak to all four of the pillars that are on upcoming investor day.
Thank you grant.
On slides nine and 10, we have our legacy slides, which provide an overarching view of the three horizons strategy. In addition to the strategic pillars of this long term roadmap.
Before we conclude today's call I'd like to spend a few minutes recapping. The success, we've achieved on our horizon, one initiatives, which will serve as a good primer for investors and analysts ahead of our Investor Day later this month.
Our strategy is based on four strategic pillars organic growth strategic M&A operational excellence and having a high performing culture.
Focusing on these pillars over the past several years has created a strong foundation for Myers and positioned us for improved profitability as we begin to execute on horizon two.
Today I'll speak to just two of the pillars operational excellence and people and culture.
All forward the pillars that our upcoming Investor day I'd.
Michael P. McGaugh: I'd like to go straight to the operational excellence pillar. One thing I learned during my time at Dow Chemical is that to successfully manage through cyclical end markets, self-help and operational excellence are critical and always bear fruit. Operational excellence is a self-help mechanism that is typically effective in improving a firm's earnings capability, helping raise the earnings floor in trough and near trough conditions and expanding that earnings ceiling when times rebound. Please turn to slide 11.
I'd like to go straight to the operational excellence pillar.
One thing I learned during my time at Dow chemical is that to successfully manage through cyclical end markets self help and operational excellence are critical and always bear fruit.
Operational excellence is a self help mechanism that is typically effective in improving a firm's earnings capability.
<unk> raised the earnings floor, and trough or near trough conditions, and expanding that earnings ceiling when times rebound.
Please turn to slide 11.
Michael P. McGaugh: Operational excellence continues to translate to improved margins through improved purchasing, improved supply chain management, and improved asset management. These functions drove improvements throughout our company during the fourth quarter and in 2023. As an example, our procurement group delivered raw material savings of over $20 million in 2023.
Operational excellence continues to translate to improved margins through improved purchasing improve supply chain management and improved asset management.
These functions drove improvements through our company during the fourth quarter and in 2023.
As an example, our procurement group delivered raw materials savings of over $20 million in 2023.
Michael P. McGaugh: As demonstrated through our margin improvements and greater cash flow generation, we've institutionalized these best practices, which will serve to establish a floor in our earnings capacity during a period of trough or near trough demand scenarios for our RV, marine, and consumer end markets. The work we've done in operational excellence will serve us well as we move the company forward into Horizon 2. As you recall, this is an area where I've deployed several dozen of the hires I've made from large chemical and plastics companies who know operational excellence very well. These outside hires have transformed Myers' capability and continue to strengthen our company. Now moving into the people pillar, the high-performance culture pillar.
As demonstrated through our margin improvement and greater cash flow generation. We've institutionalized these best practices, which will serve to establish a floor in our earnings capacity in a period of trough or near trough demand scenarios for our RV marine and consumer end markets.
The work we've done in operational excellence will serve us well as we move the company forward into horizon two.
As you recall this is an area where I've deployed several dozen of the hires <unk> made from large chemical and plastics companies, who know operational excellence very well. These outside hires have transformed myers capability and continue to strengthen our company.
Now moving into the people pillar the high performing culture pillar pillar.
Michael P. McGaugh: I believe this pillar continues to be a differentiator for Myers when compared to other small to mid-cap companies. Over the past four years, we've hired and deployed dozens of experts in operations, supply chain, purchasing, sales and marketing, and executive management who have the training, expertise, and seasoning from world-class large chemical, plastic, and industrial companies. It is this team and talent that has helped transform the company's runway and potential. This team is the fundamental change at Myers Industries.
I believe this pillar continues to be a differentiator for Myers when compared to other small to mid cap companies.
Over the past four years, we've hired and deployed dozens of experts in operations supply chain purchasing sales and marketing and executive management, who have the training expertise and seasoning from world class large chemical plastic and industrial companies.
Is this team and talent that has helped transform the company's runway and potential.
This team is the fundamental change of Myers industries.
Michael P. McGaugh: Indeed, we are currently facing cyclically soft demand in some of our end markets. However, we have the company running tighter and better. When these cyclical end markets recover, we will recover stronger and faster. This team gives me confidence in our ability to navigate through these trough-like conditions for marine, RV, and consumer. With our organic growth prospects, with our breakthrough acquisition of signature systems, and with our continued fortification of running our base businesses better through operational and commercial excellence, we see significant runway for shareholder value creation in the near, medium, and long term. I look forward to providing more detail on our Horizon 2 strategy and direction, as well as our long-term outlook at our upcoming Investor Day later this month in New York City. With that, I'd like to turn the call over to the operator for questions. Operator?
Indeed, we are currently facing cyclically soft demand in some of our end markets.
However, we have the company running tighter and better.
When the cyclical end markets recover we will recover a stronger and faster.
This team gives me confidence in our ability to navigate through these trough like conditions for marine RV and consumer.
With our organic growth prospects with our breakthrough acquisition of signature systems and with our continued fortification of running our base businesses better through operational and commercial excellence, we see significant runway for shareholder value creation in the near medium and long term.
I look forward to providing more detail on our horizon, two strategy and direction as well as our long term outlook at our upcoming Investor Day. Later this month in New York City with that I'd like to turn the call over to the operator for questions operator.
Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind and would like to withdraw your question from the queue, please press star followed by two.
Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad now if you change your mind I would like to withdraw your question from the queue. Please press star followed by two.
Operator: And finally, when preparing to ask your question, please ensure that your phone is unmuted. And our first question today is from the line of Christian Zyla of Key Corp. Christian, your line is now open. Please go ahead.
And finally, when preparing to ask your question. Please ensure that youll phones on mute locally.
And our first question today is from the line of Christian Silo of Keycorp Christian Your line is now please go ahead.
Christian Zyla: Thank you. Good morning, Mike, Grant, and Megan. Good morning.
Thank you good morning, Mike Grant and Megan.
Good morning, My first question.
Christian Zyla: Hi. My first question. Morning, my first question is, if I look at the sales guidance of 15 to 20%, can you just talk through what is embedded in your guidance? What are you expecting for organic growth versus the addition of signature? And what is the cadence of that?
Good morning, My first question. So if I look at the sales guidance of 15% to 20% can you just talk through what is embedded in your guidance. What are you expecting for organic growth first. The addition of signature and what is the cadence of that.
Grant E. Fitz: 1Q looks to have the toughest comp, so are you thinking 1Q will be the low and then acceleration from there? Yeah, Chris. I would say overall that we've got, you know, we're trying to build a model that we would start to have, you know, some single-digit organic growth, low to single-digit organic growth with our current base businesses. And then we also have the signature acquisition, which we would see anywhere from 10 to 15% growth over the next year. And so within that, we do see that, you know, that we would start to see that accelerate throughout the year, particularly on the organic growth side with the base businesses with the cyclical markets that we're dealing with. But overall, you know, that's really what translates to the guidance that we have right now. Great.
<unk> looks to have the toughest comps. So are you thinking <unk> will be the low and then acceleration from there.
Yeah, Chris I would say overall that we've got we're trying to build a model that we would start to have some single digit organic growth low single digit organic growth with our with our current base businesses. And then then we also have the signature acquisition, which we would see anywhere from a 10% to 15%.
On growth over there over the next next year and so within that we do see that.
We would start to see that.
Accelerating throughout the year, particularly on the organic growth side with the base businesses with the cyclical markets that we're dealing with but overall.
It's really what's what's translates to the guidance that we have right now.
Great and then can you just give us a sense of how much of the quarterly sales were volume.
Grant E. Fitz: And then can you just give us a sense of how much of the quarterly sales were volume for first price? Was price meaningfully higher in distribution, or should we think about the two segments differently? Yeah, price was. It was meaningfully higher in distribution.
First price with price meaningfully higher in distribution or should we think about the two segments differently.
Yes price was.
It was meaningfully higher than distribution.
Grant E. Fitz: You know, what we have essentially is that in our distribution business, we've made some changes as we continue to transform that business, and we have a new leader in that business that is implementing some of the disciplines that we have with our material handling business. In particular, with price, we do see some favorable price that we've been getting something that we see of a meaningful nature for this quarter. And we would expect to see that to continue in the distribution business in our business. Particularly with our material handling, we do have some headwinds with some of the, some of the agricultural business that we have for our large seed boxes.
What we have essentially is that in our distribution business. We've made some changes as we continue to transform that business.
We have a new leader in that business that is implementing some of the disciplines that we've had with our material handling business in particular with price. We do see some favorable price that we've been getting something that we see of a meaningful nature or for this quarter and we would expect to see that to continue in the distribution business in our bid.
Particularly with our material handling we do have some headwinds with.
Some of the.
Some of the agricultural business that we have for large seed boxes, we continue to see some pricing pressures there.
Michael P. McGaugh: We continue to see some pricing pressures there. And so those two have been, to some degree, offsetting each other as we look at the performance of our distribution business and then just some of the headwinds that we have with our material handling business. With that being said, I will say, just from what I've seen in my almost a year now here at Myers, that the team is very disciplined on value-based pricing, and they really leverage this quite effectively across the business. I would say, in particular, we're bringing that into the distribution business now on a more expanded scale. Yeah. And Christian, this is Mike.
So those two have been somewhat to some degree offsetting each other as we look at the performance from from our distribution business and then just some of the headwinds that we have with our material handling business with that being said I will say just from what I've seen with my almost a year now here at Myers that the team is very disciplined on value based pricing.
And they really leverage this quite effectively over across the business.
In particular, we're bringing that into the distribution business now on a more expanded scale Christian.
Christian This is Mike if I can build on a very good question, we had Myers tire supply, which was a sector leader in its space and we made the decision midyear 2022 to acquire Mohawk, which was the next largest competitor.
Michael P. McGaugh: If I can build on it, it's a very good question. You know, we had Myers tire supply, which was a sector leader in its space, and we made the decision mid-year twenty-two to acquire Mohawk, which was the next largest competitor. That was the right strategic move as we've worked over the last twelve to eighteen months to integrate those businesses. We've had to reconfigure the sales model. We really wanted to focus on larger national accounts because that's where the customer base is headed. We wanted to have the right sales organization for the future. Then, additionally, synchronizing multiple ERP systems can often be a bit of a challenge in the near term.
That was the right strategic move as we've worked over the last 12 to 18 months to integrate those businesses. We've had to reconfigure. The sales model, we really wanted to focus on larger national accounts, because thats, where the customer base is headed we wanted to have the right sales organization for the future.
And then additionally, synchronizing our multiple ERP systems can often be a bit of a challenge in the near term and we face that.
Michael P. McGaugh: And we face that. As I mentioned, we've consolidated those ERP systems at the beginning of this year as well. We have now a consolidated, realigned sales organization that's focused on the national accounts. What that does is get the footprint of Mohawk included in Myers tire supply.
As I mentioned, we've consolidated those ERP systems at the beginning of this year as well we have now consolidated our realigned sales organization Thats focused on the national accounts, what that does is the footprint of Mohawk included into Myers tire supply, we have the highest service level and the.
Michael P. McGaugh: We have the highest service level and the best footprint in almost all areas of the nation. That additional service level is going to give us more ability to get the best price. If we outperform in service, our customers' willingness to pay goes up, and that's what we continue to see, and we think that will be a continued trend. At the same time, the size and scope of Myers Tire Supply plus Mohawk actually gives us more purchasing leverage with our suppliers. So if we can get a bit of an increment on price and a bit of an increment on cost, that move will continue to push the EBITDA numbers of the distribution platform into low double digits, as we've said. A little bit of a setback in the back half of this year, particularly in the fourth quarter, for the reasons I mentioned. Obviously, we're disappointed in that, but we're rectifying it. Largely, it has been rectified.
Footprint to almost all areas of the nation.
That's going to have that additional service level is going to give us more ability to get price.
If we outperform and service our customers' willingness to pay goes up and that's what we continue to see and we think that will be a continued trend at the same time the size and scope of Myers tire supply plus Mohawk actually gives us more purchasing leverage with our suppliers. So if we can get a bit of an increment on price and a bit of an incremental cost.
That move will continue to push the EBITDA numbers of the distribution platform.
Low double digits, as we said a little bit of a setback in the back half of this year, particularly in the fourth quarter for the reasons I mentioned, obviously, we're disappointed in that but we're rectifying and largely it's been rectified and so that's still up that interesting business for us given its strong competitive position and I think again that will translate into the margins over the course of 2000.
Michael P. McGaugh: And so that's still an interesting business for us, given its strong competitive position. And I think, again, that will translate into margins over the course of 2024-2025. Great, thanks for that color.
<unk> 24 2025.
Great Thanks for that color.
Michael P. McGaugh: Could you just give us a walkthrough of the end markets and what you're seeing in one category? I think we've seen some indicators that RV and PowerSports may have modestly bounced back from trough levels and shown some sequential improvement. Is that reflected in your business this quarter? I guess, how are you thinking about, you know, those consumer-facing businesses as we progress through the year? And does your guidance have any embedded recovery in those businesses? Yeah, if I can, I'll take a shot at that, and I'll look to Grant.
Could you just give us a walk through of the end markets and what Youre seeing in <unk> I think we've seen some indicators that RV and power sports may have modestly bounced off trough levels and show some sequential improvement is that reflected in your business. This quarter I guess, how are you thinking about those consumer facing businesses as we progress through the year and does your guidance have any.
Embedded recovery in those businesses.
Yes, if I can I'll take a shot at that and I'll look to grant.
Michael P. McGaugh: Then, you know, we know how to operate cyclical businesses. We know how to operate in cyclical industries. And that's where that operational excellence really shines and allows us. Like I talk about, you know, establishing a floor and keeping that floor of our earnings strong. What we're seeing is there is a little bit of a bounce off on RV and Marine. It depends on really who you listen to.
We know how to operate cyclical businesses, we know how to operate in cyclical industries, and Thats, where that operational excellence really shines and allows us like I talk about establishing a floor and keeping that floor of our earnings strong.
What we're seeing is there is a little bit of a bounce off on RV and marine it depends on really who you listen to the numbers are still going to be quite low and those end markets for 'twenty for in my opinion and based on what we see.
Michael P. McGaugh: The numbers are still going to be quite low in those in markets for 24, in my opinion, based on what we see. On the consumer side, there still is a lot of inflation. And when you have discretionary consumer goods, the products we make, whether as I talk about them as planters, mailboxes, or home goods that have a higher price point, or gas cans, which again have experienced inflation, if the consumer can defer those purchases, right now, we're seeing them defer those purchases. Again, I still think that it's cyclical.
On the consumer side, there still is a lot of inflation and when you have discretionary consumer goods the products, we make whether as I talk about it as planters mailboxes are home goods.
That are that have a higher price point or gas cans, which again have experienced inflation. If the consumer can defer those purchases right now we're seeing them defer those purchases and again I don't think that's cyclical.
Michael P. McGaugh: The nice thing that we see is that cyclical end markets do rebound. And the discipline we're imposing on our operations and our commercial aspects and the trough side of the cycle is going to benefit us, and we will recover faster as these things come off the trough. Christian, I'm not terribly bullish on RV and Marine for 2024, but I do think, again, that's a fine business to be in and have a strong competitive position like we do. Grant, would you like to add any color?
The nice thing that we see cyclical end.
<unk> do rebound and the discipline, we are imposing on our on our operations and our commercial aspects and the down and the trough side of the cycle is going to benefit and we will recover faster as these things come off the trough Christian.
Not terribly bullish on RV and marine for 2024, but I do think again, that's a fine business to be in and have a strong competitive position like we do grant would you like to add any color sure I think you've covered it well with marine and RV.
Grant E. Fitz: Sure. I think you covered it well with Marine and RV. I would say just on a couple of things, you know, for the consumer piece with our gas can business, this last year, we had virtually no storm activity, which typically will drive some significant revenue in the back half of the year. And so, you know, I would anticipate, just given historical measures, that we would see some storm activity this year for our consumer business, which would, you know, certainly see an increase organically from the gas can business. Also, as we talked about, you know, our military business, we continue to see that as an end market that we will probably see further growth, particularly with the 155 shell casing that we produced. We're now in a position to be able to produce that, ultimately, for the U.S. military. And that gives us, you know, what we would see as a longer-term headwind for our military business for the company. So, as they replenish those arms globally, that certainly will give us some tailwind as well.
I would say just in a couple of things for the consumer piece with our gas Cam business. This last year, we had virtually no storm activity, which typically will drive some significant revenue in the back half of the year and so I would anticipate just given historical.
Measures that we would see some some storm activity this year for our consumer business that would certainly see an increase.
Organically from the from the gas can business also as we talked about.
Our military business, we continue to see that.
As a as an end market that we will see probably further growth, particularly with the $1 55 shell casing that we produce.
We're now in a position to be able to move to produce that ultimately for the U S military and that gives us what we would see as a longer term headway for the.
For sure.
Sure.
Business for the company, so that we see as they replenish those arms globally that certainly will give us some some tailwind as well too.
Grant E. Fitz: And then the other piece that we don't talk about specifically by end market, but just our e-commerce business continues to grow quite well. You know, year over year, we have had strong growth in our e-commerce business. And that is, you know, that does impact all of our different end markets. But we continue to work on expanding that, and we'll see some growth in that area as well. And then, in general, I do think that the auto tire repair area will continue to see some tailwinds, although that certainly is more of a little bit of a lumpiness depending on, you know, what happens with just some of the general cyclicality with tire sales. But overall, I think we see that as a longer-term tailwind for our business. Yeah. And just Christian, if I can add in one final piece, we're three weeks into owning Signature. But that business, again, doesn't have cyclical characteristics.
And then the other piece that we don't talk about spin.
Specifically by end market, but just our ecommerce business continues to grow quite well.
Year over year, we had strong growth in our ecommerce business and that is that does impact all of our different.
End markets, but we continue to work on expanding that and we will see some some growth in that area as well and then in general.
I do think that the auto.
Higher repair area, we'll continue to see some tailwind although that certainly is more of a.
A little bit of a lumpiness, depending on what happens with just some of the the general cyclicality with tire sales, but overall I think we see that as a longer term tailwind for our business. So yeah, and just a Christian if I can add one final pieces, where we're three weeks into owning signature.
But that business is again doesn't have the cyclical characteristics, it's an infrastructure play.
Michael P. McGaugh: It's an infrastructure play. You've got a trillion dollars of infrastructure spending that's being deployed by the federal government over the next 10 years. Signature has a very strong competitive position and a very attractive profit margin, and we're seeing that business start off very strong. So we continue to have high expectations for that business over the next two and three years, and we're seeing those initial trends again, three, four weeks into owning the company. Thank you guys so much. I really appreciate all the information there.
<unk> got a trillion dollars of infrastructure spending thats being deployed by the federal government over the next 10 years.
Signature has a very strong competitive position in a very attractive profit margin and we're seeing that business start off very strong. So we continue to have.
Strong expectations for that business over the next two years to three years and we're seeing those initial trends again, three or four weeks into the into owning the company.
Thank you guys. So much really appreciate all the information there last question for me can you just quantify the benefit of lower raw materials worth to material handling margins. If I just look at polyethylene prices. For example, those have come down quite a bit in the last year any color as to why that hasnt flown through to grow.
Christian Zyla: Last question from me. Can you just quantify the benefit of lower raw materials costs to material handling margins? If I just look at polyethylene prices, for example, those have come down quite a bit in the last year. Any explanations as to why that hasn't flown through to gross margins? Like is there something else we should be thinking about there?
Margins is there something else, we should be thinking about there. Thank you so much.
Grant E. Fitz: Thank you so much. Yeah, and thanks, Christian, again for your questions. Overall, as I mentioned, in terms of resin prices, we do see benefits with our purchasing team. You know, we've got a really, what I would say, just a very strong purchasing team, one of the best I've seen in my career, certainly. And so we do leverage the lower raw material costs, certainly with resin prices.
Yes, Thanks Christian again for your questions overall as I mentioned in terms of the resin prices, we do see benefits with our purchasing team. We've got a really what I would say this is a very strong purchasing team one of the best I've seen in my career certainly.
So we do leverage the lower raw material costs certainly with.
Grant E. Fitz: But I would say that, as I mentioned earlier, we are seeing some pricing pressure, particularly in the agricultural end market, that has been offsetting some of that. So that's kind of the hydraulic I would think about as we look at that business. And then also with our other parts of our end markets, you know, though we talked about agriculture, we do continue to see some pricing pressure in general across the material handling business. That is providing some additional pressure on margins that we're offsetting with material and other operational savings. Thank you, Chris.
With resin prices.
But I would say that as I mentioned earlier, we are seeing some pricing pressure, particularly in the agricultural end market.
That has been offsetting some of that so that's that's kind of the hydraulic I would think about is as we look at that business and then also with our other parts of our end markets.
Although we've talked about agriculture, we do continue to see some pricing in general across the material handling business that is.
Providing some additional pressure on margins that we're offsetting with material and other operational savings.
Thank you Chris.
Grant E. Fitz: Harriet, I believe we have one more caller. Thank you. Yes, our next question is from the line of Anna C. Jolly of Cabellion Company. Anna, your line is now open. Please go ahead. Hi guys, thanks for taking my questions, Carolina. Two questions.
Right.
Gary I briefly at one more caller thank.
Thank you.
Yes. Our next question is from the line of NFC jewelry of Gabelli <unk> Company. Your line is now open. Please go ahead.
Okay.
Hi, guys. Thanks for taking my questions Carolina.
Two questions. One are you just able to quantify the impact.
Anna C. Jolly: One, are you just able to quantify the impact of the lack of a hurricane season? Yeah, yeah, Carolina. Typically, it's about three million dollars of EBITDA for a landed storm. That's about right. You know, if you look at five to six million dollars in revenue, your drop-through is really high at that point in our production utilization. So it's almost a 50 percent drop-through. So, it's about, you know, three million dollars, about five to six cents a share per landed storm. And so, again, we were out. We didn't have any last year. So, that's a bit of a headwind. And typically, we budget for one that is historically accurate, maybe one and a half.
The last of the hurricane season.
Yes, <unk> typically it's about three.
$3 million of EBITDA for a landed storm.
That's about right. If you look at $5 million to $6 million of revenue you drop through was really high at that point in our production utilization. So it's almost a 50% drop through so its about $3 million up $5.06 a share per landed storm and so again, we were out we didn't have any last year. So that's a bit of a headwind.
Typically we budget for one that historically is accurate, maybe one and a half.
Michael P. McGaugh: But unfortunately, that piece came up short last year. Okay, great. Thank you. And then looking at your dive in, and you've kind of reviewed this, but just looking, if we were to take away the dilution from Signature, when we look at 2024, what do you think of the margin performance, and what are some of the puts and takes there? Yeah, I would say in general, you know, we will continue to use some of our self-help initiatives to offset some of the headwinds that we had talked about, that I talked about earlier, Carolina, in terms of pricing. So I don't see that we'll have any significant changes in margins for our guidance. We continue to manage that part of the business quite well.
But unfortunately.
That piece came up short last year.
Okay, great. Thank you and then looking MTR and guidance.
And you've kind of reviewed but just looking at full year to take away the dilution from signature.
Sure.
When we look at 2024, what do you think of.
The margin per comments and what are kind of some of the puts and takes there.
Yes, I would say in general we will continue to use some of our self help initiatives to offset some of the headwinds that we had talked about.
Talked about earlier.
<unk> not in terms of the pricing. So I don't see that will have any significant changes in margins.
For our guidance, we continue to manage that part of the business I think quite well, we will likely see some improvements with the distribution on pricing that we've talked about is.
Michael P. McGaugh: We will likely see some improvements with the distribution of pricing that we've talked about, as that carries through in 2024. So, I think taking away the signature piece, I would say, historically, our margins would be similar to what we would think about for 2024, and then just the issue that we'll continue to face is just how quickly do some of these cyclical markets recover. And when will we start to see some of that pickup, you know, as some of those markets start to come out of their trough?
As that carries through in 2024.
So I think taken away the signature piece.
I would say historically, our margins would be.
Similar to what we would think about for 2024 and then the.
The issue that we will continue to face is just how quickly some of these cyclical markets recover and when do we start to see some of that pick up.
Some of those.
Markets start to come off of their trough.
Grant E. Fitz: Great, thank you. Thank you, Carolina. Thank you. And we have no further questions on the line for today. So I'd like to hand back to the Myers Industries team for some closing remarks. Well, thank you everyone for joining our call this morning as we reviewed 2023 full results and fourth quarter results. We look forward to seeing you at Investor Day. We welcome any meetings following this call to wrap up any of your questions. Thank you. This concludes today's conference call. Thank you all for joining me. You may now disconnect.
Okay, great. Thank you.
Okay Carolina.
Okay.
Thank you and we have no further questions on the line for today, so I'd like to hand back to the Myers industries team for some closing remarks.
Well. Thank you everyone for joining our call. This morning, as we reviewed 2020 full results and fourth quarter results.
Look forward to seeing you in the Investor day, we welcome any.
Meetings following the call to wrap up any of your questions. Thank you.
This concludes today's conference call. Thank you all for joining you may now disconnect your lines.
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Mhm.
Yeah.