Myers Industries, Inc. (NYSE:MYE) Q4 2023 Earnings Call Transcript

Michael McGaugh: Yeah, yeah, Carolina. Typically, it’s about $3 million of EBITDA for a landed storm. That’s about right. If you look at 5 million to 6 million of revenue, your drop through is really high at that point of production utilization. So it’s almost a 50% drop through. So it’s about, $3 million, about $0.05 to $0.06 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. And typically we budget for one that historically is accurate, it’s maybe one and a half. But unfortunately, that piece came up short last year.

Unidentified Analyst : Okay, great, thank you. And then looking into your guidance, 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 kind of some of the puts and takes there?

Michael McGaugh: Yeah, 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 — that I talked about earlier, Carolina, in terms of the 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, I think quite well. We will likely see some improvements with the distribution on 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 do we start to see some of that pick up — as some of those markets start to come off of their trough.

Unidentified Analyst : Great, thank you.

Michael McGaugh: Thank you, Carolina.

Operator: 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.

Meghan Beringer: 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 in the Investor Day. We welcome any meetings following this call to wrap up any of your questions. Thank you.

Operator: This concludes today’s conference call. Thank you all for joining. You may now disconnect your lines.