Myers Industries (MYE) 1 Mar 232022 Q4 Earnings call transcript

Hello, everyone, and welcome to the Myers Industries Fourth Quarter 2022 Earnings Call. My name is Bruno and I will be operating your call today. [Operator Instructions]

I will now hand over to your host, Monica Vinay. Please go ahead.

you. Thank thank us. and for you morning joining Good I Vice Treasurer President Vinay, Interim at Officer and Chief Financial of Industries. am Monica Myers Investor Relations and

Joining and our Mike me Officer. Executive President today is Chief McGaugh,

for we morning, of release financial and a Earlier the this quarter issued fourth outlining press the results XXXX. full-year

presentation posted prepared accompany remarks. We have to also a PowerPoint today’s

Relations it be you’ve after tab. website under the PowerPoint, or not press the release www.myersindustries.com, also is yet If call with call and at can This received transcript on access being either the our shortly website a the event. of Investor archived copy of on the our you this webcasted along will

remind statements the presentation to make two turn may safe-harbor this you some slide forward-looking management’s factors, Please statements involve to provisions the XXXX. These safe-harbor expressed for pursuant Reform Act Litigation that PowerPoint these made to comments of or are Such during we disclosures. cause of implied may which uncertainties our on are of materially call. risks, to the like in results Private I from would based differ those and expectations and Securities statements. current other

SEC certain factors profit, is that discussed set forth EBITDA other advised and measures be XX-K the adjusted call. be financial filings Further periodic and gross may the this filings. on company’s please Also adjusted EPS as risks, XX-Q these adjusted and uncertainties such adjusted income, found be operating non-GAAP and may information in company’s concerning in

to our Mike turn slide pleased call Please over to of three now I’m to turn presentation, McGaugh. the

call. quarter excited and and XXXX top welcome bottom-line of to record results, Myers. full-year Good report morning, XXXX our to Thank consecutive for everyone, fourth year you, a and making record another quarter I'm earnings Monica.

and growth of on of EPS growth adjusted basis, EBITDA revenue an of This XX% or organic adjusted XX% XX% growth annual included XX%.

proud of delivered year world-class becoming that believe a our begun executed we I'm enterprise. our level team just throughout towards have on a promises. high Our journey the only and at and team our on

Over serve EBITDA the foundation will probably our to the billion and continue direction company-wide goals entire few of our excellence. on clear strategy. transformation. common X is run and to our strategy sense completion and direct made commitment approaching margins we've progress a our years, of as past of focus. This growth three in the in This operational for remain a of revenue result a a and XX% $X is Horizon rate of reaching and team's remarkable purpose We're Horizon

progress In business we our the lines XXXX, against of and saw across units. strong we good made product as these majority goals sales

capture past continue we our numerous Additionally, plants products, true our we years, on benefit which and high-quality over team cost. developing the taken to X.X excellence ensure to the self-help supply of improve initiatives becoming value competitive optimizing more our and to manufacturing our from and the output, while pricing included chain productivity

setting and culture with servant goal We be leaders, culture feel this execution. about I while is we implementing did What of of performance we servant leadership improvement. drive while can excellent along the aggressive a aggressive good

million, was Adjusted Please gross of gross to and to during outline We of XXXX was detailed up results. margin the have our achieved turn where to compared compared XXX full-year million, points $XXX prior year. net a four, adjusted XX%, the slide year. the by we which sales XX% expanded more profit basis an $XXX.X increase,

strategy XXXX supply points which results chains, backdrop, In is material that proof are QX included in working. difficult strained a choppy elevated macroeconomic a our costs in raw strong in labor market, of spite our and clear

Monica? call the over outlook. results of and our review a fourth turn quarter full-year financial XXXX to I'll Now for Monica

our of Mike. you, basis, to Thank Please for delivered results. top summary turn On bottom-line five we and a quarterly results. fourth a record quarter slide

quarter the Distribution pricing quarter to segment. Our organic primarily up basis, X.X%, the volume On from of an or incremental the offset our sales net contribution million decline compared $XX.X were fourth due was by XXXX, higher Rubber and from a to Mohawk mix. fourth acquisition sales in

adjusted compared reductions, XXX primarily partially $XX.X and million and profit offset self-help a counteract increased we basis Rubber Through XX.X% to or volume of contributions Adjusted supply for lower increases from the by fourth Quarterly cost and the chain gross These including the gross change by sales XX.X%, able margin increased effects XX.X%, in of inflation. actions, were were cost Mohawk mix. the pricing in was with points which the XXXX. quarter to initiatives, driven quarter management acquisition. price

costs. and adjusted compensation $X.X in million quarter incentive or percentage XX.X% the as operating XX.X% XX.X%, offset the or result income higher compared Fourth sales with salaries gross million selling The same increase year. profit, increased $X SG&A. the to to compared SG&A last and variable period higher a was of prior expenses, partially acquisition primarily higher of Mohawk increased XX.X%, year as $XX.X SG&A SG&A in by to increased a Rubber expenses due million. to

same Adjusted EBITDA $XX.X in basis points the with compared for to EBITDA XX.X% period the margin prior compared of Adjusted $X.X quarter, the last was or year million million increase to expanded an QX, year. in XX.X%, X.X% fourth period. XXX

an increase EPS $X.XX, of adjusted $X.XX Lastly, or XX.X%. was

an of fourth Please turn our performance the quarter. overview to slide for segment six for

offset year. vehicle customer Material sales or due destocking in food markets, in increases X.X%, decreased demand some to more consumer the segment, compared industrial markets $X.X at decreases prior decreased year-end. the million and the beverage and to and Handling and net Net the sales than For by were

This strategic $X.X self-help was income mix. offset or XX.X% to partially sales the benefits increased due and million. were volume Material $XX adjusted million a which Handling initiatives by change actions operating and from lower to ongoing in pricing

Additionally, SG&A costs. higher to were variable and expenses expenses increased due higher compensation primarily selling incentive

by or $XX.X million increased XX% segment year-over-year. distribution the for sales Net

pricing organic net Distribution Rubber from primarily due higher higher pricing. Excluding wasn't the higher million. X%, expenses to offset increased higher costs million net $X.X the of incremental enough XX% decreased year-over-year. income $XX adjusted sales SG&A operating sales and The acquisition, segment to Mohawk from product contribution to

The Mohawk was Rubber increase The distribution variable and continues implement due higher increases costs. to expenses. selling the expenses segment and escalating price acquisition in to SG&A compensation to incentive primarily offset product

seven. Turning to slide

of For in the The million, the sales and by same of million earnings. flow basis, primarily On due $XX prior points, net cash change was full-year of year, free was primarily period an cash accounts full-year capital higher increase XXXX, of to sales mix. XXXX. sequential a percentage as capital was compared in for as basis a result sales $XX.X Working increase net the higher of XXX increased compared sales the a quarters. to in working a last to receivable, to driven flat percent flow

cash year-end expenditures Capital was $XX.X hand and of at for million million. the $XX.X on XXXX were full-year

strong EBITDA a growth and of structure balance have X.X our support times. We sheet continues long-term debt to to capital our adjusted plans with

from in to our are Net range, sales Rubber outlook the now eight incremental anticipated mid-single-digit the primarily XXXX. year to for for sales fiscal due distribution Turning Mohawk to slide in segment. acquisition low the increase to

were annual acquired Mohawk at June net we approximately acquisition the reminder, $XX time and of a sales XXXX, million. of at the As beginning

end currently continued select vehicle, soft pockets Material consumer marine the be demand we to forecasting to and are due segment, sales in our of markets. to Handling year, the For comparable last

closely continue conditions year. monitor will as We and market progress we to throughout updates the provide the

Mohawk the from we the the the do we in but stronger basis, in for provide will distribution incremental the will a impact as XXXX. will that sales of not the XXXX and result in Handling While guidance, RV on quarters markets margins the compared Material margins, the of year, in quarterly to segment The offset the corresponding acquisition softness compared expect unfavorably two first quarter segment. as consumer prior line continued top to change fourth products in of mix sold

are approximate $X.X for expected expense in of are approximately of XX% operating net income, to sales continued our expenses effective we year. and the efficiencies. projecting investments an tax million primarily processes XX% rate and of reflecting Below operational people, interest SG&A

Our $X.XX count share. million into weighted taking assumptions expect EPS an average shares, adjusted of share per guidance account, we range to $X.XX reflects a XX.X these of

and $XX and than in higher and approximately in capital expenses Other expenditures range as amortization $XX and growth to of EBITDA flexibility years drive million cash depreciation to capabilities of and $XX to key continue trend flow expected in include impacting past million. the million assumptions efficiencies. we is CapEx invest operational

and the entire expect from self-help result Myers in to in like continue to We outstanding results our generation. thank team cash of initiatives I'd for another year flow delivering strong XXXX. flow cash free to benefit

our turn the call an I'll over provide that, on to with to And Mike strategy. update back

both in to Thank nine. you, Please strategic the and we turn has remarkable achieved. successes slide year financial This been Monica.

I and in clear, simple, XXXX. outlined I in have long-term consistent our been to our in has consistency purpose. continue We road have and direction vision it. execute we against mid-year map our momentum confidence and the in And we'll We're accelerate Horizon company. on X, in for in growth. continue our to our we building grow solid long-term a and to as its direction foundation build company. Myers that This

our as through past I walk to choppy a like a calls, company, I our update, in resilience Before economy. in I'd have particularly highlight, execution as

diversified. small well a we're For cap company,

with large-cap in market at opportunity company earnings managed the have to niche the a The or This to technologies, applications. a end talent resilient and approach, the resulting our improve surprisingly results financial past us lot customer years. diversification another. end over over markets of injection provides of niche our under been coupled We decade niche us deliberately pursued downturn had that makes next and a one

back execution on Now the our to update strategy. of the

strategic of strategy. and on slide I a for strategy, slide calls, XX XX. to the walk prior our on our As progress These take successful like few pillars through of minutes pillars framework to execution provide the I'd outlines our mentioned

from growth we due actions. organic in growth. Starting organic throughout year, previously achieved XX% markets the to well as select benefits demand strategic pricing with strong end XXXX, as announced during

revenue to enhanced the we While we some growth flow-through expect continued bottom line. in choppiness and XXXX, macroeconomic anticipate

wins. on them them products moonshots can a or needs. careful This specific fit better we to targeted them, We're with is Myers, request. to chase need not to or with specific At are work take off customer focus paying disciplined extend make aspirations performing tied how customer-driven a innovation and innovation, make higher it's and customer our or on existing we innovation, that approach customers' projects and not

strategic Shifting on M&A. to

strategy. during year, on both As two on earlier, target and were of I completed which mentioned the we acquisitions

Over refining the past X.X our and improving and we've processes. strategy integration years, been our M&A

we learn, we these pursue identify, to ways As we acquisitions. better integrate find new and complete how we ways improve acquisitions, and

refine been a companies, risk our processes and investors elected less larger deliberately We our remind open deliberate. to less and acquire a so our robust I'd and like aperture paid complicated difficulty. better developed, can we to that to we process that smaller, intentional playbook lower plan with This game We prepare off. learn has has that our targets. more well and to integration pursue suits now us have start approach few and as

promising, M&A frankly, we Quite believe our our preserved act. balance we're to stride we sheet opportunities. and We're the choppiness we good right are results, Our to team provide in will pipeline is hitting the and have be. ready is financially, where want producing buying economy we flexibility

but with be We the deal. we'll patient, we We're We'll prospects, with over won't we are ready. deliberate. romanticized and won't become be engaging overpay particular

a I right. trusted with to be we dollar shareholder calls, on these before not privilege view a As us every and said

excellence. made factory the efficiency past tapping shifting to the finding manufacturing as in third hidden pleased we've that additional significantly We're facilities. to spoken increased we've calls. with uncovering our Now and the operational pillar, we're year of on the I've our this capacity; I'm improvements

to in this to expect maintain expect in the and upon improve direction We continue this years to this and come.

well, operating system, institutionalize deploying system. of across and results. operating the in and we'll companies. four to Myers culture, One processes. integrated Similar It such confident business units we've operating into the an this I've system system. our it an done it prior will made advancements XXXX, all these In across worked work applied I'm produced pillars be Myers at many and

crystallizing best the best that are By ensuring businesses, legacy Our work as by Myers scale across applied able what company well operating and implementing faster by high-performing be results, culture. our institutionalize work, the drive operating our processes will acquisitions. company, across we our a as our system developing improve system, will do well standard our and all standardizing to grow practices of new we practices, an

Myers to On note, our In culture. that and speak having to culture here we I'd continue our a One fourth final and like ingrain at high-performing to pillar, implement XXXX, Myers.

to continue see integrated we As improvements as company, a significant whole. together to company and one businesses the work to we our as

aggressive stretch servant combines place exceptional approach goals influx culture with an business towards work, We This growth. talent. to improvement, an made have of and leader Myers rewarding has performance that attracting a mindset a a

and and talent Large-cap into I've It's a by growth Myer's potential, trained potential, at driving transformation be spoken winning type to and to that the bringing This intrigued a large-cap leaders transformation one this is of the Myers. transformation formula they it's this growth things our in us. us, part before, for and a and want exciting that's have of seek to employees we here story. of a small-cap employees are company. differentiates for

approach We will that solutions-based company in provide company. more how around latitude, months, roll which grow markets us out Over clarity bigger will the position we believe the and provide. you'll to the a see us provide serve market more with a will next the the and we on us we solutions sandbox

past to begin to step, We but our the dial maximize as value a focusing step being holding focus our turn and products. will continue an This final company not increase once and good Over the to manufacture a the technologies to growth position integrated on we being end by to the solutions. creation. it's and is the took Myers We're more the moved from first years, going for markets we we company next use interim company around the shareholder one. phase destination. This

celebrate I for the ahead achievements X.X questions, my years. in excitement to what's for emphasize made we and up past open many the we Before want

in Industries. year, Founders industrial founders XX-year-old Myers a this firm will company, of company, past view ourselves be of agile just our few Myers the in While few We era founders. transformational for years. a new its XXth years growth of the anniversary celebrate entrepreneurship Myers as will what and were future a that's introduced as start-up and as short a adaptive for

myriad our that so simple, far consistent resilience results a a diversified, are is opportunities grow. Our to of strategy has This a is working. proof dedication has to company and

to forward sharing We I we look go are more progress a updates on well company, as our world-class to way our on forward. and becoming

I'd Myers to record close, like all. of I of XXXX all helped Before who thank a associates Industries, Thank year. you make the

With questions. that, we'll turn now the to call over Operator?

line go Lance open. from is from your Vitanza Lance, ahead. is Please line now Lance, go question first open. Our Cowen. now your Please Instructions] [Operator ahead. is

Sorry, guys. now? Can you hear me

you loud clear. hear and can We Yes.

question, of Hello? start for the But let Yes, you hi. you a big rather or you've feels since questions. nine no Thanks. change at about I months we'll XXXX, growth then really look the year, Myers, and certainly nine M&A eventually job the just outlook? are it in over course there's first the that taking obviously economy? talk we done no pace Mike, into past Thanks ultimately, of say. in ended order like guess to improvement a Could note the really, I over me to It's months sales with guideposts for in the the organic from the the opportunity. softening look, bit a forecast circle XXXX. the the outlook Is but a on year the low you little can what of that with a great should see arrived kind

talked X one-third had correct to I'm think few Horizon your but next from growth M&A if in and billion you of organic. we sales about $X that over of initially -- please of the about And related roughly wrong, and I question, -- I if me then two-thirds think strategy, think this terms getting years,

of that gives in so, to question is, do can what organic you confidence So you think kind still you that? if growth? And eventually the get

Yes.

try break I'll -- it bit. me little Let up to a

Look, On see segment. the excited lot some have the I've from the and going to -- company. distribution side. some specifics, Mohawk of got about and confidence in We're on the it I in I'll lot Distribution in acquisition and Material to that's Monica got going that. direction. fruit confidence the Handling I'm can on bear supplement to of a speak confidence I've a

be growth think about, the side. see which is sell What recreational couple vehicles is will us. -- that's soft year, overall think the there. weakness market, there that we into in On some you the out, stories that strong, a of of we and that volume some continue that there recovery high-margin ‘XX. will strength boats But segment half in we you it Ag the -- the and it's on a of the the the products to back and vehicle back call we hold, there's side, the some called half and marine and got in vehicle and for the talk

high-ticket we talked consumer items well, items discretionary On some products have continue have and premium And in as price that We've side the that to about those soft. premium at prior a we ticket sell discretionary calls. weaker. been the be of higher

some quarter outlook true a upside be auto saw is the And to balanced to little in aftermarket; Strong bit year. consumer, for first-half think of struggle industrial; ticket XXXX. balanced for is discretionary the the maybe choppy; the still overall going a ag; of directionally so aftermarket, bit high and little what you a from first-half volume auto going -- fourth be I and the

all why of bit the for I'm have look, the company. a levers. right wider range the is, we bullish on on pulling very And that's part year guidance a of our We're

stronger. and upside that's We There's going we're year-over-year, continue execute. We're to from are of company starting base. to -- fundamentally low the a quarter-over-quarter, making a lot

get of time bit dialed However, allows these plants to a And gear end in choppiness markets. there's actually more and down even little our us some in. it

company. very longer-term the ‘XX, ‘XX, I'm ‘XX, And bullish on outlook, so on the

said quarter, three we one quarter. two-thirds, Let's see one-third, M&A.

company. be acquisition-oriented will and an are We

widen little on at really you going prelude at. at markets how that some or want I and of screens looking really have that We'll make a we adjacencies, a our little then a solutions. bit. products that a of are company disciplined durable terms that in a take approach. we're kind talk to start proprietary to going acquire We that call. We bit companies gave plastics tight We about were to of and look proprietary adjacencies in

But is continue acquisition this. to going we really to And again, be share I the hear lion's oriented. think

in via I than we sidelines, company going in know the to. choppiness can companies put where sheet get want really being have rates don't the very clean we the buyers get couldn't I in. companies, on dialed financial some to to on sale in more a more acquisition. likely But balance the we're be I what than of fair the interest be. was strategic position The right are has prices prices we've grow to if scale with We think on a going to to don't necessarily higher processes I higher that of economy, having the past. buyer our better expect quality a think acquired

I not can sight, We're in that's any mid-teens. with I not going -- still to ‘XX, to and very love those still continue focus that and one in deal. and But margins $X the I in going those operations that as to Lance, in have feel mark fall EBITDA we're we said, overpay. hit confident think, billion in But

a these some the couple of I'll of in still all had on uncertainty next that's markets, quarters. curveballs that what little just the think together, end is choppiness of put call bit in of -- I holds we've our

that? you Monica, would add what And to

through cause did COVID, -- quite boom marine vehicle and as recreational Lance, would consumer the we what a in reminder select And discretionary. might Yes. the a just through get and in XXXX I

‘XX were into and even throughout those quarters very early So ‘XX. high

said, going things just now, I choppy, but It's Mike stabilize. they're even to out, are starting kind they're to So determine of trying right as think to yes. where

little normalized growth we've digestion So the of in the growth no maybe think are above what doing XXXX more beyond. a to on a of guidance And giving doubt just looking average reset with growth that's of and guys markets I a of end then bit I'm what starting are And hearing. a can little bit some rate, had, that then rates a and you perhaps everything not conceptually, look, I'm you. the I've for you that

obviously And really so key. that's

right operational sheet another M&A the you of to year, Mike, But than on be I able If have know obviously, today, right, the feel deal you terms a to answered less ago. was balance you only, but -- something. itself more I one presented transaction. my M&A have just do you you feel do do think of questions, most bandwidth maybe front. know of that Mohawk in kind the I well, integrating the

show should extent in of if wondering we we it's to up XXXX? the is that -- should just the be likely or M&A, I'm there thinking So maybe that more back half to

shareholders have years, being Hey, That's We said, the really our being look, the it feel said integrate the and deal on growth. quality took I for a and and do process solid Lance, why we both cost funnel, and building good. three to I get then we the a able deal synergies, capability. able really to first build negotiate let's

into Rota Decatur, And so distribution, we did and And summer also what the we facility in in the business. acquired in as well Georgia Rota Molding. a acquired acquired Molding is we remember, in we

got as a ready. in get company I experienced well And use background in company one not And my ready. very deals those rotational to tighten in of what brought -- very very as screens, opportunity telling a we've integrations. who distribution. And on did last we've we discussions of for shareholders, environment the all so do is got going of we favorable deal out the I've more with are to ‘XX, And we think got year, I to that advisers a in aligns molding, that acquisitions It are a an the number go as remember, we're processes our two lot really fits forward. has we're been of lot -- and integration. you we mean, just staffers, one that us I and would people to and but depends, is done we've our in our our integrations, deal And ahead Lance, confidence. -- when skis. a

I to right need we company. continue and so when the we like we're be, here transform And said, where I think should I think ‘XX to be

hear. that's forward I'm the acquisitive. to company look But Well, to great make as be you to would. to We the great to We'd that. to see as that see love well. deals sure they be have Obviously, continue sense grow through M&A

guys with jump that, just So taking the thanks back very I’ll the much in questions. queue. for

Thanks, Yes. Lance.

Lance. Thanks,

next Our Instructions] from is line Barger go Please is KeyCorp. now from [Operator Steve question Steve, your ahead. open.

for put of system Myers it Mike, a results you operating you've to expect And workflow How an incremental kind much can sales, is seems going purchasing like in it the Thanks. improvements do of lot be? of change operations. and what already produce?

what finance of leverage needed a or it But found it's we out a sales marketing of XX; needed capability the do out together pricing, of more. are functions. five four we outside lot on XX; we out Steve, six was processes, in and XX purchasing, areas and it we all seven good about, manufacturing, to talked package processes. in general, you was to in say, what of And Yes, question. would I some brought we

nominally, -- we're that say I'd so halfway there. we're And

So up businesses one-half is to of the our across of and all creation. this package leverage value remaining

And order of crystallized. companies, really also down, in and need we lock scale to us. wanted Steve, it this to we have as documented we acquire outload to also any we felt, But

so of here. a got And we've experts lot

to know, it the down, is, careers. replicate lock all very who chairs. of good. brought a able people it document of the the kind are need number the I They're people FTE, look, very, to of But you As of of what at I've independent this independent their said be in in we crystallize and twilight it

so we that more of that brought live be them we DNA of And resiliency, I can and they to longevity about our on. acquisitions. part They're good all here, apply is this sure things to really, want continue seamlessly to the

think to And so -- Steve, I'd I’d where halfway just we saying be. say yes, I nominally, should we're

long XX% to I process, to or this XX%? it And will a continual know does from but take be halfway how get

work They'd Yes. I on a yes, smaller in rather well got ‘XX. ourselves. focus and all it chase than or do documentation here. given three – don't one shot, We of We're a That's a ’XX in things want lot our for year We've to because company. XX can't ‘XX rather do and dilute XX ‘XX things.

focused. acquiring codifying, the to renewal operating So and of may products, M&A, two expertise plastic us bringing the pieces, products. calling on three also the going be systems. we're metal are scope technology the acquisition allow outside Those more those with center. our really this what that -- our with more center that a to coupling operating our system, system, expertise mode, IT, coupled in approach companies flanges, updating Those of we're But IT to on are pieces be robust to have IT success an crystallizing M&A in center, M&A

$X or do $X from, the and say, feel XXXX, stool. again, what that. billion year the billion over the doing to plan calls, change, more. that's three frankly. to we're going three we right quite work And XXXX pieces of what's drive And billion subsequent let's us those have $X.X we so billion and who that's -- or the on But talk can the about course that's to people legs because $X if we those of But

or would products? of up, the plastic outside scope you brought since Well, what it contemplate metal you

our it business. storage if so and look business, at at if the know, handling in and you and you Steve, You look more we're really

move, branded that products make we high-performance and store organize. So

high-quality and heavy sell We equipment. a as in and lens world things that? of than vehicles, rather handling aftermarket. parts could We scope. we if broaden we So get can auto can Auto confidence replacement commercial you that storage in do lens, but passenger what or that other our we at the cars, repair make in look do some businesses or Buckhorn aftermarket, an and Ecomills we some Well, for else do that.

and do What product products, do designed solutions. design lot engineered else space high-performance designed on engineered that in product products can customers. again, we then bring the side, our and And to side. We value-added engineered a to

three it updates, more I getting the but And we're strike the in roots excellence company on Steve, it. We're markets. talk about the expertise exciting. end really our center silos IT taking this to and help right of really Because really going doing, trying I'm fly. know-how. it those horizons are and by all to think really also into that some M&A, us think balance our pieces about I'll esoteric without system, So of those ERP it operational three sticking opening the future, are and the to takes aperture, operating the it's update excited expands ingredients we then an the work, and

I'm to hearing forward that. Yes, about more looking

the did expansion driving mitigation from the efforts. team inflation XXX basis a Your nice job of points gross margin

you that about, and think last you about about think where likely And Or but bit through good you little down gross talked do I consumer year? about was the think cadence? can come of year? you the as the full-year, the to work first-half As is you it mix a the you just the question products, margin trends as is that the think hold

Yes.

that? Let -- do hit to me Monica, want you just

be wherever we we margins holding margin we're efficiencies in operational Steve, extent we still in on expansion. that to our going continue -- XXXX, did gross order would continue in ’XX, to the and and Yes, can, focus obviously would further price to we're not expand still goal to drive but further to

Yes. a distribution on you of the Steve, choppiness margins. little bit saw

bought six sales four, to merging IT I months have a -- market sizable Mohawk. and a And -- two you in think that very related large five, more was with business systems of ERP the integration and with that remember, participant force. large

so that EBITDA can based got And that see, of you on X% from a little away our bit. us cost goods

since of robust really announced year in beginning the increases we've some So segment. distribution the price

quarter we'll financials first second those believe to up in I start our and see in show And quarter.

board, products. good side, the there. Handling the distribution the I and on make high-quality So niche the side, the again, And outlook across about feel we on margins Material

as able bit. able been we've to a good good We to that's to polyethylene level, be going continue I to lines hold. reputation, particularly hold, have think -- And a service a we're

I think expansion. have to continue we're some going to

that just Distribution think Handling, through those because back the this I -- I as those can Material -- I Distribution? should two and does Handling just talked half the about that think of in Distribution in weakness things the As -- year, last you and outgrow it up outgrows Or question, for first-half? make Material

markets, Steve. -- for -- look it unknowns good feel are me the bit about -- are there. go Monica pretty I let there in is There in those specifics. distribution. But there's I'll I'm Monica, of unknowns some why you… to end just some A don't ahead,

remarks. of we're to on would we're outside low to the Material for our looking I to organically distribution I Whereas mid-single, comparable currently, the like choppiness, range, said single-digit more low based in just likely Yes. in outlook. last say, Mohawk, still be the year, Handling just to grow is as like

thanks. Alright. Great,

Steve. Thanks,

will I final speaker now questions. We comments, ahead. no currently Please for hand Vinay. further back to have Monica go our

We interest joining in Thanks Industries. day. and appreciate a for have us, great Myers your

today's call. you joining. Thank this gentlemen, concludes for and Ladies

disconnect lines. now you. Thank may You your