Myers Industries Inc. (NYSE:MYE) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET


Myers Industries Inc. (NYSE:MYE) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Myers Industries 2020 Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session [Operator Instructions].

I would now like to hand the conference over to Ms. Monica Vinay. Please go ahead.

Monica Vinay

Thank you. Good morning, welcome to Myers Industries Second Quarter 2020 Earnings call. I'm Monica Vinay, Vice President of Investor Relations and Treasurer at Myers Industries. Joining me today are Mike McGaugh, President and Chief Executive Officer and Kevin Brackman, Executive Vice President, and Chief Financial Officer. Earlier this morning, we issued a news release outlining the financial results for the second quarter of 2020. If you've not yet received a copy of the release, you can access it on our website at, it's under the Investor Relations tab.

This call is also being webcast on our website and will be archived along with the transaction of the call shortly after this event. Before I turn the call over to Mike, 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.

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. Further information concerning these risks, uncertainties and other factors is set forth in the company's periodic SEC filings and may be found in the company's 10-K and 10-Q filings.

I am now pleased to turn the call over to Mike McGaugh.

Michael P. McGaugh

Good morning. Thank you for joining us. First, I want to say how proud I am of our employees, especially how they pulled together to deliver solid results during a challenging quarter while also staying safe. Due to the focus and dedication of our teams, we were able to deliver sales and operating results that were better than we had originally expected. Now, if you turn to slide three of the presentation, we'll share an overview of second quarter 2020. As we noted in today's release, our businesses performed well during the quarter.

We continue to meet our customers' needs, we delivered higher than anticipated sales despite challenges the complexities resulting from the COVID-19 crisis. Sales in our consumer end market increased significantly year-over-year as a result of higher demand for our fuel containers. We were also encouraged by the increase in demand that took place in our auto aftermarket sector, once stay at home restrictions were lifted and more vehicles returned to the road. Our businesses delivered gross margin expansion again this quarter. Adjusted gross profit margin increased to 36% in the second quarter of 2020 compared with 35% a year ago.

This was due to solid operational execution and favorable price-cost margin, which more than offset the