Myers Industries (MYE) 3 Aug 232023 Q2 Earnings call transcript

Hello and welcome to today's Myers Industries, Inc. Q2 2023 Earnings Call. My name is Jordan and I'll be coordinating your call today. [Operator Instructions]

I'm now going to hand over to Grant Fitz, Chief Financial Officer at Myers Industries to begin. ahead. go please Grant,

Good Fitz, thank Myers Chief Jordan. us. Industries. for I'm Grant Financial morning you, you and joining Thank Officer at

Executive also the financial Joining President for prepared the we Mike remarks. is of results presentation a Officer. XXXX. to quarter Chief today's We've issued outlining me morning, a Earlier release McGaugh, press second this posted today and our accompany

website release at yet on received be under also them a or the the call transcripts the not either access is PowerPoint, along transcript you've archived Relations If on our Investor of shortly of our www.myersindustries.com the call that. will tab. the can you this copy after with -- website This and webcast being to

to to advised cause nearest such certain adjusted may differ those be from or press non-GAAP the and in be discussed and income, PowerPoint the of Reform for you today's may Safe-Harbor call. and to exhibits on uncertainties to EPS release and management's of X provisions our current to disclosures. These these profit, pursuant the would please statements reconciled Also GAAP financial Slide Litigation statements call other materially to implied we comments Private turn and measures that which adjusted gross are as Act risk, during statements. I EBITDA, are involve remind to the factors adjusted expectations based XXXX. of some expressed Such our like operating make results that adjusted forward-looking the this this presentation. made Safe-Harbor are on Please metric Securities

filings. XX-K factors the periodic the may filings information be found XX-Q concerning SEC other company's is forth set in these company's For uncertainties risks, and in and and

the Please over Mike turn to call turn now our to Slide I'm to McGaugh. presentation, pleased of X

Grant. quarter earnings morning, and second welcome our XXXX you, to Thank everyone Good call.

our how want sectors. to meaningful Industries delighted financial discuss Horizon experience execute here. we technology say considerable industrial, We're to deliver our our His acumen, to take to leadership moment welcome Myers and our new Grant. Welcome, we will you're and Fitz the Before to CFO, glad strategy. organization. automotive and has help a X are quarterly Grant across Grant us contributions performance, I experience

I quarter, comments As for my echo remarks quarters. of past this my prepared few directionally many the

in We face in marine primarily Home continue consumer in and in items and planners end-markets, tanks cans, in recreational to certain as such Goods. headwinds demand discretionary gas high-dollar decorative vehicles,

demand this of through excellence continue largely multi-year are We performance as have quarters, past them and runway these through within will our the initiatives initiatives. what call to our of continue we Just in commercial operational at we Myers. excellence beyond. year impact headwinds self-help we self-help profit-improvement to improvements and a initiatives, drive still execute to These our offset due to long, and control improvements opportunities our

is reducing are to operational excellence more ensuring using Northern out meet and our concrete enhanced cost company. example and excellence capacity soft on our move side and when in X Indiana running consolidate recover. this demand and the This saves molding Across-the-board, improves cost a well-positioned we we're call what to the new of Due This optimal but footprint One move of the variable rotational continue more of to productivity, An our to to a capacity, hidden facility. footprint company. recent take new our us our in efficiency cost-out take single asset made us demand are allowing gains a we've on the the streamline cost drive our is example plants operational cost. when the into we allowed factory. productivity our to in facilities optimize focus structure, markets fashion, we to has found

new over growth with fewer standardize tools serious which help us we and our M&A well faster, another and we're out example, we as business pitch to Myers M&A X best companies. critical Horizon more larger we In are an profit us will scale capabilities, by institutionalize points. execute cutting complicated our capabilities quarter serious in and margins building opportunities. our One will business capabilities to to investing practices integrate the million system best-in-class of our to and towards building example, acquisition and this need past While Both in acquire Horizon invested costs, frameworks, meaningful improve allow $X out other and investing also that about are we serve plans these the we and pursue in-building company X about X. system

approach acquisitions, We balance to decisively a our have and strong are the act disciplined team, world-class right ready a sheet to we and in on are target. focused

we deal and M&A As are disciplined overpay, continue we we be we've we said won't before, in our won't get fever, to approach. will

results. our to Now, let's get

end-markets of given capabilities, our on consistent this our of X quarter demonstrated some the softness our our self-help generation by the in cash our challenging, and but actions execution pursuit resilience and disciplined Second and was in-part general earnings quarter of Horizon XXXX the focus strategy. driven also in

In we partially had Material we actions experienced to across the expand quarter, basis demand us countered we our allowing points softening XX adjusted our quarter by margin Fourth took, end-markets, by driven multiple strategic XX.X%. largely Distribution by in Handling for growth the the to acquisition. the gross segment, our X% Mohawk segment,

example the market, our demand the end-markets we focus be meaningful future. continues boxes profitable. for our our lower demand segment current the in Handling While macroenvironment, continue many seed of One the spots to many experienced and to to agriculture see is due Material strong on bright for

believe is and will channel. be example grow our military is world. what for our the opportunity a A to we cases around to develop investment our and opportunity projects lightweighting effort lasting large our Second focus in Scepter third e-commerce

$XX we'll in-building years million investing in just channel XXXX, anticipate are ago. and sales the X e-commerce approach our this We roughly gross this doubling revenue from capability sales-through

a lead we Distribution change leadership our made Excellence Marketing Jim segment, change President segment. -- Vice Sales, Gurnee, of this naming to our and Commercial In also

job years, deliver done has to performance advancing commercial demonstrated X leadership excellent higher-level. Distribution Jim's an expertise Jim ability past to take capabilities. needed a what's on our the Over precisely results segment to are and Myers'

distribution in EBITDA we have below margins that and and recent leadership expand Our near-term. my expectations improve and will margins Jim's been I'm our confident EBITDA under the

have Just for as Handling, the also future the spots Material we segment. Distribution with of bright

new long-term bullish on of expected the electric the reinvigorated, impact view the and our resulting the for the future in-part tire bullish driven the and We due segment management aligned team. of growth have on a I'm Distribution also growth by industry, due strong vehicles. leadership to

full-year. Grant I'll walk financial Now, pass the expectations results our the to call and quarter through to for for

to I take team job have done a to say business this a reach moment be Myers Mike. tremendous you, business excited Industries. am how to to heights I part of the Thank through want positioning his new and Mike Myers system.

new part at poised honored coming over and have growth Myers and strong of across is that products end-markets, a the geographies that to We here am for be trajectory. platform years I

second a summary X to quarter results. our Slide turn for of Please

primarily the sales net timing end-markets in from to largely softening impacted sales reduced beverage end-market. compared $XX.X well as second demand Our XXXX, seed second were RV XX.X% of due QX segment, food quarter the marine quarter in Handling the the and million of products, for to consumer Material and lower and box or sales which in as down the

pricing volumes from was by an higher segment. Distribution Distribution decline organic sales and this segment Mohawk more $X.X contributions On the both of partially However, in acquisition basis, from lower Distribution Material than were Rubber in segments. by offset incremental Handling million in offset our the

quarterly not and enough volumes. Mohawk as contributions from to adjusted acquisition were $X.X or million Our the offset decreased lower profit raw-material Rubber lower costs the X.X% sales

profit XX% XXXX. points XX.X% gross increased margin the for Adjusted quarter quarter XX gross in with the -- compared to basis second

or to as to quarter $X.X operating gross SG&A adjusting of the income period XX.X% year, million Second last decreased of were year-over-year of sales expenses compared removing prior XX.X% profit. million a in down lower as XX% items, a same compared increased percentage as $X.X percentage result with and sales After year. the a adjusted

$X.X into as acquisition $XX.X strengthen Included of was Adjusted million to million points in in X. Horizon or basis decrease XX.X% in second of for period Myers EBITDA QX second XX million last M&A XX.X% move acquisitions the the decreased margin capabilities, a SG&A expense EBITDA compared potential is compared quarter, $X.X Adjusted with to year. quarter the prior the the we same larger consulting period. in XX.X% to

restructuring compared include charge environmental adjusted remediation, to and EBITDA year. investigation, integration cost was same adjustments cost $X.XX EPS $X.XX last actions. period the acquisition Lastly, through other in

performance quarter. for please an Next, second to for the overview segment turn X our Slide of

the in of of end-market XX.X% orders. beverage and Material or million was the significantly sales. Handling prior and the Material and our impacted the of softening markets decreased This and result end-markets spending the $XX.X the markets Handling industrial segment, sales year. consumer agricultural revenue, timing of overall the timing well and as decrease food consumer as segment in sales net vehicle Declines to For marine compared in RV lower

and Material Handling more lower adjusted increased EBITDA for mix. Distribution Net than X.X% to unfavorable year-over-year. $XX.X raw-material segment and or $X.X offset Lower sales or costs sales million pricing million. sales X.X% the favorable decreased volume $X.X million

X.X% integrate higher Distribution's year-over-year. new sales pricing Rubber expansion. incremental million, primarily $X.X to and acquisition. implementing expenses The kind to of from of X.X%. continues inflation primarily costs margin of we cost to year-over-year, drive to the increase the $X.X or Mohawk Mohawk expenses initiatives million adjusted Distribution and decreased Rubber an Excluding net net in Mohawk segment Rubber SG&A SG&A and million EBITDA higher further result sales and were strategic acquisition, are product the actions $X.X organic due cost as decreased a

a the continued year prior capital of percentage focus of quarter by points result The as cash-flow compared capital was in XX due Slide for last to the the primarily working a was the of quarter second period cash-flow to compared decrease same earnings. basis free the team of Turning for year lower versus million net the $XX.X sales second to XXXX X, to Working decreased improvements. and $XX.X million XXXX.

sequential basis, $X.X of million. and as for cash percent hand second quarter net $XX.X XXXX end quarter were working expenditures million of flat. capital a were a the On sales at totaled on Capital

runway growth times. continues X.X Our our with remained a support to and balance of EBITDA strong debt-to-adjusted sheet

Now please outlook X fiscal update to on turn for year for XXXX. the Slide our an

challenges lower across digit our a top-line to end-markets, to various Given we our that mid-single the guidance decline in the elected seen macro we've range.

$X.XX. However, conditions, profitability in reiterating are we proven range our to guidance of income unfavorable our for of diluted share the in mitigate is earnings to $X.XX per diluted adjusted impact ability the and range net the a share of year to market of with $X.XX $X.XX the per

market we it's that current to of the lower the continue conditions more EPS be If end likely adjusted closer range. will

to continue sheet We balance consistent by generation. is retain which cash a supported strong free

we full-year, in million to of effective $XX the $XX expect approximately of to be range the million tax For capital XX%. and rate expenditures an

strategy, the Myers is organization. transform to gratitude turn and my extend work and headed update call I am am the world-class an the I hard warm part pleased for entire Before to on quarter. I'd a be to very into continued to their effort excited like welcome to Mike I during team company over this where for the of our Myers about

Mike?

Thank you, Slide to X. Grant. turn Please

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element in a Myers First, remains a organic transformation growth company. high-performing, high-growth crucial into

Specific due to and consistent pricing for markets in planning We make preparing our an as training return marketing and our investments critical strengthen sustain products can to relatively value-based to assessments strong us and capabilities our ability market and fact teams. are team, investments our that further cash account third-party capabilities, investment continue and on growth training for education as invest planning, continued ourselves. recovers. the our organic flow as include sales commercial to diversified, target these to in and an We for well providing Myers demand end end accelerated commercial market

Handling we mentioned favorable and believe I our stimulate Distribution in organic that future both Material As will capitalizing growth. segments trends on we're earlier,

As our are example, we for like in efforts segment, projects Handling an lightweighting innovative our pursuing Material growth the military.

impact positive heavier in vehicles. result accelerated vehicle compared pace segment EVs as expect down traditional tires also of where distribution a to electric mandates We an combustion internal our at because

expect both these Myers. We longer-term to to meaningful be for of trends medium tailwinds

do Before landing in account recent a to win that highlight customer want I distribution growth, significant the to leave celebrating target segment, segment. organic I significant new that will bring revenue our the nationwide we're

on deliver positioned we're organizing assessment, second cost outside capabilities and we capture processes that and and due so identify diligence advisers our and quarter, growth opportunities and spent Myer's moving planning. strategic building synergies. well and with effort Now opportunities, pursue we to to as meaningful In those and and worked acquisition larger pillar. to target the time M&A We significant integration capabilities strengthen

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excellence on Now, to the pillar. moving operational

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that On chain of the I've spoken and capacity our the factory are by plants. new and realizing we management asset hidden side, supply uncovered operating about better scheduling and

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we System over years standard Myers mentioned quarterly that in institutionalize gains calls, work X I use we've XXXX processes and doing creating to As the is progress standard a We're two driving system. time X of Horizon at Myers ensure we've business critical Business by Myers. the in is this are financial years our lasting have invested in XXXX and earnings the scalable VMBS business Myer's are The [ph]. made past the to and transforming quarter, our to past continue improvements and we We the system and company the ensuring and made to the part a second Horizon resources sustainable that in X further build X. In believe DNA. to

Distribution as lead segment. the to with second well the culture. strengthened fourth pillar, hiring Turning Gurnee as In have Grant, the high-performing our to of Jim our decision team executive the quarter, the we

Myers leadership we these to With at have significant in very future. With we team, as two convinced into the tenure Myers. drive prepared most moves, well we the shareholder create team and now streamlined strongest I'm value are this my

transformation progress place. strong with be Our we recruiting continues plan key targeting in from far a of and has strategy and ingredient This model and so it. stick of to been Myers to firms talent industrial large-cap

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I To vetting your in investigating, of and in continue Thank our I capabilities and prospective conclude, the I'm I'm for in part is building of committed our in a and this both Business of believe excited for continued future. Myers the are a confident our attractive acquisitions. are on we to we for in and I strategy. Myers I'm proud self-help to being results returns. the the the you initiatives shareholder of interest lifetime that long-term translate disciplined Myers Myers progress System. evaluating approach opportunity opportunity into M&A remain our continue team and in to structure which will believe and support Industries. the

call the over turn I'll that, operator questions. to the With for

first [Operator Instructions] from of Navarrete comes question Cowen. Our Jonnathan

Lance. discuss be for be or benefits us for would in, of exciting, is, of the say, in opportunity first any a and And can on it's half 'XX very more aware second you this see Jonnathan the contracts of let's electrical the are to My there big vehicles? story? XXXX question

Grant. is This

walk little me this through let Just a bit.

industry, of Board company. it first charging public all, and of an I a was -- the in electric a my actually So automotive career company spent on fair so amount also for

on faster. for is vehicles, see vehicle of vehicle and they What that And Embedded drive vehicles. growth, wear at. that's vehicles is engine what weight part electric grow internal there combustion by me. heavier of which tires have, is, bit tire electric now, causes to to of the two that XX% as to torque vehicles wear or from the X% Mike tend to expected are that They tends within vehicle So time the than the out do. -- more growth I a where electric front-end look additionally, vehicles about essentially spent conventional industry things, electric we're also be anywhere out more is increase with right excuse little the space. faster mentioned, that to this down overall X% just in we really the particularly you driven one much outlook torque -- can which the is X% It's

tailwind to be as electric the in So a market. expand real vehicles we continue see vehicle as that overall

And very on so would business be do that, to that -- as replenish industry. I vehicles bodes more the and certainly there focus with this tires what can they replace say it in distribution more because for repair, well will our were does out, and

As far really trend to as as overall an the market for from. that additional see it be we'll opportunities, basically entire we benefit able

distribution from going and so leader standpoint, additional of that good segment from Gurnee brought feel that where our And our and a Jim as for about very in ability the to our that the just market operations. we capture some new it's discipline with

the quarter, And going perhaps quarter, middle end of far second fourth particular seen to to in have are Obviously, were in third some trend and Moving the month during quarter just or quarter? some do I'm right? of there the you a you see Have second in sometimes where some pick markets. you so of the what up end in operating third on the areas into a the the market? quarter the softness soft improve key as conditions market any wondering in seen

Mike. is This

notably some a boxes market the see the We bit expectation see average on activity net-net, back handling you're for And which behind weakness the the be year given season The end may some is with We on be a There's we're There and seed beverage half above-average the sales strong RVs to in see containers that average. that mixed our continued softer right or of we'll So softness consumer gas it's to still our fuel hurricane for do a now, an the and Handling the up But It's storage bag products, tracking in of food make an be cans. of going most the Material end our soft. forecasts have -- on on products Consumer is there. to some an was of company. may next current bit market. nice going the a there, side sale in to on of upside continue of side, some a year bag. Industrial do going some hurricane. from mixed standpoint. X demand that months, we for we wholesale recent a bit

to mentioned, I too, that well that would customer we see, secure just we do add we've as our have contract. larger a distribution do industrial that been as Mike Jonnathan, for business able

So for to positive very that we quickly business we've that that well. continue good then the that in will And opportunity how grow but overall, distribution range. some certainly, provide revenue see also And and upside that we certainly a in that opportunities our the military e-commerce reflected us. business is there the some something we ramp TBD upside momentum is is still with as for provide the will past about that talked some the

that's correct. Yes,

key before to going wondering, little metrics, one bit but lower in revenue type you last So my arise, the a need they can the of have with right? ability poach than to maintain have guidance you maintain will the they And company should key profitability this the order should profitability if still is cost now does to I'm some other levers -- guidance? that what need

opportunity department some there's we've savings we've and standardized Yes, drive continue to gains procurement some had that to there. as

So on continue the material we some to raw runway. side, have to expect

medium-term, and SG&A short the structure some face the to demand we so size that to cost of the savings. also continued be sure given SG&A have right out we SG&A We of on rationalization in

consolidate savings ultimately, manufacturing there's opportunity evaluate as the cost some to additional facilities. we Then

have locations We're on operations we lot quite businesses scheduling in As in of running and What capability output us to actually more is of I and We plants our I've mentioned to out there. but assets but production training allowing sales actually a some actually capacity, flat do talk extensive optimizing about planning. before, and the the hidden have and grid take footprint brought our in capacity we an advantages select that's to and better. factory. combine keep cost our

going cost some consolidation impacting additional our without meaningfully be on to So asset capacity. probably there's

really We're sensitive sure overreact so that; green believe products, be turn. these I don't want throttle that to all capacity we some in seeing great shoots got end and mean we brands. down we We're great our will we select because markets to we have we've markets and too much believe

in positions markets leading our want turn have go to these we're to that and of be end We niche back. things when all so we ready sure

points? additional any Grant,

background you think certainly I the I I business the that in well. new really attracted that waste out in one with and of organization is, my Myers, Myers of I execution this from initiatives. just add improvement it One that well that side me very is just thing coming to is in culture on the of whole and would just And resonates have And the driving covered continuous things strong of embedded system. kind think really

see basis, our just I so continuing I we certain working And those have it's for from that initiatives an of new part on and us on, ongoing say work company. would we're the standard ones DNA although to would opportunities

comes of Barger from Steve question KeyCorp next Our [ph].

had down the you increases contribution know see you've price talk of you the year and and talk staying a the labor elevated, -- do raws with last from increases Can couple just you price This near about Dylan more Can volume from the for about the Steve this and contribution morning. in bit actually is price a quarter? coming year, in other Christian just on I Barger. good [ph] despite future? costs

the product on rose. So distribution cost side, our

to products niche we on we the We Now then in value again our to service have with we for in markets price select go and the create and levels price ability the or need capture products. the select the distribution some where products need select of after our in they have probably And for our to and price hit would some -- side. of provide. that high products it

we an sure, of that's price. focus I area opportunity that raising for to As aggressive is approach more to the brought have a company that

on And the We're increases whilst manage we so yes, the are the needle table. volume. to trying thread

And the that those plans a business of customer then new base? you business wins. elaborate your Can business last in? of What little predominantly quarter, were is wallet or larger those part customers existing you just new share talked bit? And about on a

Yes I also Grant kind do from fresh -- just it and set it eyes so I'll but would speak perspective what is we'll of year. of tag he this has to address my like team to we'll again, given here.

very our competitors. largest really X side, Mohawk that's In the factor the our exceeds serve, good, our a it's On distribution and footprint post we're space, compelling. given one is, by warehouse it that's of or X our to ability

base chains standpoint. from their the we're supply that nationwide with nationwide being of lot Those service who acquired so can are want a deal And by centers match for chains. a what some of finding is consolidates, the customer needs to supplier a tire independents

a very position that. in is with Myers good

service this first stores, into received the ramping. we going that moving actually we ramp quarter provide given the these one of in valuable of won through -- of tire way confirmation of that last it the components, we patches, the that some have, even sensors, and mile we in and all centers. the the year So capabilities, balance their largest the just TPMS tailwind our equipment that's the But of quarter supply the it. It's in because nationwide tire it's the complexity tire valves do the service that to second can to service supply business, providing levels we

X the of next think And well, and business you greatest have tuning we're and level. that they're are you're service consolidation going ability there And X that at excited we so on customer having the have to a serve as to mentioned, tire only of do I drive tires some the those piece over that's about. centers, the are part in professional to we ability, we not the a trend, EVs business years base there. won too a But best I consolidating up also

So that's one.

boxes. you we and for extensions request. customer our purpose indenting. containers of incremental us they and because and in a are various just to new, is, a consumer. need, geared actually to in pretty those new marine But continue That's and being if RV, weakness to line much then I against towards deliver area I've able of product The before the line Another so the customer said even offsetting -- with with volume good invent don't for it. want invent that's do and the that in extensions we comes customer are need more in see and at that

customer even sell. to where or price up their buy continue to they planters, to less necessities, -- see is buy used in have up a ability mailbox a can because we discretionary, sheets, wallet goods We home being the that gas that's

publicly. we that's worldwide been and conflict, active for actually a So about product Ukrainian are now for XX the been militaries is, that's masked the there's and so XX What doing approved casing, in discussed incremental markets. the the good and downturn with by to catalyzed artillery excited on outside rearming rearmament some have United because these States, qualified need drive of now very there we a other to are significant militaries military shell U.S. that's the we the we've been are and innovation, last of governments of years, selling in been right continuing growth, it's the

tailwind for We for and for believe will we that, that us. sizable it a be tailwind us a believe many will be years

gas actually about than it. helps electrification some weakness will you that So excited military have believe and kits we're it's exciting. as offset root. in that It may takes of cover long-term We that the actually more

Grant?

do back of And service to segment, Yes, to the to do what and level -- same we nothing really quantitative just some said learning that to quality just of it of ourselves. Myers you that the just because can't try you work provide. the we struck fact thing this one Mike but me we said add to have the really coming is is they've business in we're when basically the customers that distribution

really in to not building distribution And one that think just also may for And on be segment. so I that although bodes have the customer. e-commerce, add, momentum well we the the specific then the just it opportunities

to just really stress their approach us well. with team traction really amount impressed as continue testing that. for on good been And time and We spent and I've that with and future of opportunities provide that strategy fair really should think have a I

target you upcoming you laid Horizon X that your I'm think do 'XX rate line, I that how plans, 'XX? exciting the your -- Very out there. half seems and your indicates. about first I that what gears I think get out? connect a business ones little if X to bit, take updated sales for I Horizon but know $X the billion a about run that down Switching year, to If should is not... match target guidance guys and is that in excludes sales $XXX achievable million or Horizon we that M&A then somewhere your X Or

basically, that meaningful we're they were had in downturn of directional in consumer. of just terms summer then that's I year they're fair in -- out of I also I XXXX the the COVID targets in the were the softness feel let's a like some midst felt and in but laid question. the those of some some been revenue think the they behind, I downturn downturns Yes, tanks correct. correct. of has still marine that and RV We've say,

distribution. with probably it's are due I way end recessionary about think schedule we it's backfilling think to a hey, But it. to in reasonable which look the Now behind to year directionally at with that in participate, markets some I think again, and backfilling we conditions military, e-commerce, say, it backfilling with a

are the Again, it's -- do quality, far and percent to maybe gap. to harder still a quality. businesses a Again, that as lose be But some these those we standpoint, the EBITDA a and obtainable. confident still lose obtain numbers year. there. we On delayed EBITDA we that able on should company believe our scale, where a we directional bridge some But this on number at company the what volume, that that's -- as revenue, the still I'm it's when can quality little

So, Grant?

try that companies to set it now at have those the been right and in ultimatum revenue looking I've -- that and became targets and just revenue Yes, before hit numbers.

and not I team generation deteriorate capability think they're very cash to the at is or earnings is that business. the going what's disciplined the the Myers capability different within

not I we're getting as team the very had M&A amount spent this. work that X. we quarter the to we we Horizon for shareholders. but space, our are building second so to overpay a process said, M&A blocks a and look disciplined consulting for quite value that having the of strengthened ready with Mike and with feel think really But that And And to on are our work process certainly there. We in is M&A want the position will the going create time really fair to bit we good really the in a that for I going be with

those I So I -- situation, is it continue can that, think been are don't a maybe with process bad think that the it's that -- a as not that to as growth business. discipline follows. for we've the view that but off think a would of Myers year drive got really necessarily And I point I

seeing in targets this. you I'm the too bear. now. It's should we environment we right a sure are asset M&A just Yes, are seeing think the expectations that guys what We're versus like, still value high tough

decision but going it's execute shareholders. Myer the refine going we're right to So our it's capability, decision -- ready build to a our our we're we're We're for just to to going team. build we're to strains, when be going going make to

going relates not the think and those it as to we're for decisions are to I that ultimately acquisitions. rush the so right And long-term

some landscape you efficiencies? those areas about are on on of you just current where chain, if in just on chain And guys then and supply active you pressures. supply can and the been have know talk see I ongoing the in driving contributing production some what focusing initiatives but and that supply continue the self-help you to guys of chain are optimizing really

use, talked in it's a team to call I've salt decades. and our the standardized this Yes, about a for you relentlessly be as I've to that's but in used as the have contract, companies advised, leverage SALT, the single great. needs aggregate it the qualify consistent as with into it's really not at standardize -- time go procurement It's done model the many buy and it that done. of the And and market of grades companies been aggressively suppliers you products most many the the used and or three past. to as relentless titrate a aggregate can. of it's sounds we simple I've focus This I've two, model,

standardize you And in then we what of your available suppliers do additional aggregate and your of our categories, -- after increased value it, you doubled do most suppliers, so most have there's you you the you the And always buy, time qualify really more. of maybe we've number dramatically most buy, there.

you and And then you the the leverage so out it. leverage titrate then go base, you and supply base you

there's pounds side, those our line. the translating good additional given be on that model, America polyethylene You there's actually that get North and savings procurement And in -- lower SALT bottom value penny. some feel the some actually come our just the think we that, ultimately, market we on. last work that looseness those in to some to for to has price. in company We capacity all going think for into And drop

on we some were lines supply if be were chain. limited. worried an because recall, it's other did aggregate any that's There leverage or we restrictions that same there that restrictions thing, we or supply don't an titrate. or see we in may the closures whether In all supplies pandemic, the about. -- cats you the dogs office fittings it's actually severe or or We odd standardize on caps, software have and Asian concerned Now the buy,

loaded up in now. our MTS anymore right an on we inventory That isn't really business. some So issue

down So Mohawk wanted MTS, our again, up we doing the working rich actually because right we service capital inventory. went on between we're what preserve working the combination is did on Distribution so now side and when freeing levels inventory, and to we

actually capital down releasing from Now that a that and side. bleeding into we're on that, we're inventory working year some that

in raw on then relentless seeking expertise. we're And -- that the relentless, our big veterans hopefully but bringing in of So you're that's focus where company procurement. S&OP lot and that's what material got a specific that's on big better, these in We've scheduling plants bringing better, roles our model, running management in roles, our solutions. software, just better roles, asset planning better company them in scheduling

limited by with our increase X/X to a said directionally now able CapEx. capacity We're nameplate I've

the X create, create EPS And running markets, better that even just I'm the year why so with in over choppy I'm can company by the can that's X we or all these mentioned. I've bullish just bullish we end or next components the EBITDA

focus Last recently, the more big segment aftermarket and you question one for the pretty out me. know I tire guys tire volume commercial very replacement came tire on OEMs of but big tire market complete. connect looks comments on dynamics? help and optimism updated volumes with the to your with inventory with you just reported us destocking your be drop just Can those signaled

inventories Yes, it adjustments I the short-term growth again, would trajectories. separate in the really into just coming you our what to industry, say versus have from auto long-term

what trajectory most and that basis. future. the companies overall auto minuses entire some some had up And on tire seeing vehicle tire some industry I can could long-term see inventory supply any just analysts tire the the my the some be for there at think as through more as that are on on just that general, certainly would both you what industry. I look so industry, chain prices. But I industry think national would in focus And really up manage issues within point the and building of And view tire is global of suspect to quarter-over-quarter, the within the they a supply with see changes certainly, as some additional growth with think on -- that support the pluses said we Mike built don't to well I inventory. growth chain similar the there

into more a to going drive question, be more And certainly vehicles will there's momentum tires point, more I electric question to play [indiscernible] it's tire into the volume. comes use, without our at as just some that's be with going physics that more mean

adjustments that a versus So I -- more think longer-term short-term think view. view, are in it's I done it's in my the some of

With line. have the on no that, questions we further

remarks. any So closing team I'll hand the back for to

-- Thank with call look and here, I call for that, up you, it's to It's earnings all future Industries. And for Myers many my very of first our think you conclude calls QX here. to forward coming good everyone. meet can we been

for you joining. This concludes call. today's Thank

disconnect your now may You lines.