PLASTICS releases statement on Canadian Government’s “Toxic” label
The Canadian government continued its push this week to label plastic a “toxic” material, publishing an order-in-council in the Canada Gazette Part II that opens the door for the creation of rules to officially ban certain types of plastic products. Tony Radoszewski, president and CEO of the Plastics Industry Association (PLASTICS), warned that false labeling could have devasting effects on cross-border trade, jobs in the U.S. and Canada, and working people depending on plastics for safety, convenience, and affordability: “Our two countries are powerful plastics economies. This development is a symbolic gesture to activists and threatens tens of billions of dollars of commerce. The idea that plastic is toxic is the true danger. Such a label could have ramifications far beyond some single-use items. It could fast-track more bans on other consumer products that are fully recyclable. Our main concern should be improving recycling. “Banning a material that has transformed modern medicine in the name of public health is absurd, especially during a pandemic necessitating plastic gloves, masks, ventilators, vaccine packaging, and more. When we’re so close to real solutions, we shouldn’t pursue policies that reverse course on progress and punish ordinary people.” Radoszewski previously penned an op-ed in The Houston Chronicle about the potential effects of a false “toxic” label for plastics. PLASTICS also joined dozens of industries and their employees to urge the Canadian government to reconsider its actions.
Quantum Storage expands to Portland location
Quantum Storage Systems, based in Miami, FL, has opened a new distribution center in the Portland, OR area. This new facility will stock a large variety of the most popular plastic bins and wire shelving items that Quantum provides to its’ distributors. The facility will serve the 13 western states in an attempt to decrease the cost of freight transportation and to increase the speed of delivery to these locations. Purchase orders can be sent directly to the Miami office (orders@quantumstorage.com) and they will be routed to ship from one of their three Quantum distribution centers: Miami, Chicago, and now Portland. “We are trying to get our products stocked in strategic locations that will benefit our distributors and their customers,” said Ed Granger, Quantum Director of Sales. “Lead time is very critical in today’s world, and being able to reduce the cost of transportation is a win/win for everyone,” he added.
Myers Industries Reports 2021 First Quarter results with 21% organic sales increase
Sales increased 21% on an organic basis, 43% including Elkhart acquisition Myers Industries, Inc., a manufacturer of polymer products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the first quarter ended March 31, 2021. First Quarter 2021 Financial Highlights Net sales increased $52.2 million, or 42.7% to $174.4 million, including $27.1 million, or 22.2% from the Elkhart Plastics acquisition, compared with $122.3 million for the first quarter of 2020 Net income per diluted share was $0.20, compared with $0.47 for the first quarter of 2020, which included $0.24 from the sale of notes and release of lease guarantee liability related to the Company’s Lawn and Garden business sold in 2015 Adjusted earnings per diluted share were $0.22 in both the first quarter of 2021 and 2020 Cash flow from operations was $6.6 million and free cash flow was $1.4 million, compared with $5.0 million and $2.5 million, respectively, for the first quarter of 2020 The company announced two price increases during the first quarter in response to higher raw material costs President and CEO, Mike McGaugh said, “Our strong start to 2021, combined with the successful implementation of two price increases, and seamless onboarding of Elkhart Plastics, fortifies my optimism on our ability to create value for all of our stakeholders. The healthy demand across our core end-markets points to encouraging signs of a sustainable economic recovery. Strong demand was reflected as well in our recently acquired Elkhart Plastics business, which contributed $27 million to our top-line. I’m pleased with our team’s ability to quickly integrate the business, as well as with the progress we’re collectively realizing to identify both cost and growth synergies. “As a result of our growing confidence around the strength of the economic recovery and our business momentum, we are raising our sales guidance and expect to be at the higher end of our earnings guidance for 2021. We are mitigating the impact of elevated raw material costs and will be diligent in taking action to protect and ultimately expand our margins, as evidenced by the two price increases announced over the last few months. “I joined Myers just over a year ago and I’m extremely proud of the progress we’ve made in executing against our One Myers strategy. We’ve added new expertise and experience to our senior leadership team, optimized our corporate structure, and reinvested in our equipment and labor force to make Myers more efficient and more commercially focused. We also completed our first acquisition, which so far has exceeded our expectations and set the blueprint for future integrations. Our One Myers strategy has achieved early success and I look forward to updating our investors on our progress as we continue through 2021 and beyond. We’ve only just begun.” First Quarter 2021 Financial Summary Quarter Ended March 31, 2021 2020 % Inc (Dec) (Dollars in millions, except per share data) Net sales $174.4 $122.3 42.7% Operating income $10.9 $23.3 (53.4)% Adjusted operating income $11.9 $11.7 1.5% Net income $7.3 $16.7 (56.3)% Adjusted net income $8.0 $7.7 3.8% Net income per diluted share $0.20 $0.47 (57.4)% Adjusted earnings per diluted share $0.22 $0.22 0.0% Net sales for the first quarter of 2021 were $174.4 million, an increase of $52.2 million, or 42.7%, compared with $122.3 million for the first quarter of 2020, driven by increases in both the Material Handling and Distribution Segments. Excluding the $27.1 million net sales impact from the Elkhart acquisition, organic net sales increased 20% due to higher volume/mix and 1% due to favorable pricing and foreign currency exchange. Gross profit increased $7.9 million, or 18.7% to $50.4 million, primarily due to the increased contribution from sales volume and the Elkhart Plastics acquisition, which was partially offset by an unfavorable price-to-cost relationship, an unfavorable sales mix, and higher manufacturing costs during the quarter. The gross margin was 28.9% compared with 34.8% for the first quarter of 2020. Selling, general and administrative expenses increased $8.4 million, or 27.1% to $39.5 million, reflecting the Elkhart Plastics acquisition, higher incentive compensation costs, increased legal fees, and higher selling expenses. SG&A as a percentage of sales declined to 22.7% in the first quarter, compared with 25.5% in the same period last year. Net income per diluted share was $0.20, compared with $0.47 for the first quarter of 2020, which included $0.24 from the sale of notes and release of lease guarantee liability related to the Company’s Lawn and Garden business sold in 2015. Adjusted earnings per diluted share were $0.22, which was flat compared with the first quarter of 2020. First Quarter 2021 Segment Results (Dollar amounts in the segment tables below are reported in millions) Material Handling Net Sales Op Income Adj Op Income Adj Op Income Margin Q1 2021 Results $129.9 $16.9 $16.9 13.0% Increase (decrease) vs prior year 54.5% 11.6% 11.6% -500 bps Net sales for the first quarter of 2021 were $129.9 million, an increase of $45.8 million, or 54.5%, compared with $84.1 million for the first quarter of 2020. The increase was primarily due to the incremental $27.1 million of sales from the Elkhart Plastics acquisition completed in late 2020 and higher organic volume/mix. Sales increased in the food and beverage, vehicle, consumer, and industrial end markets. Operating income increased 11.6% to $16.9 million, compared with $15.2 million in 2020. Contributions from the higher volume and Elkhart Plastics acquisition were partially offset by an unfavorable price-to-cost relationship, an unfavorable sales mix, higher manufacturing expenses, higher incentive compensation costs, and increased legal fees. The Material Handling Segment’s adjusted operating income margin was 13%, compared with 18% for the first quarter of 2020. Distribution Net Sales Op Income Adj Op Income Adj Op Income Margin Q1 2021 Results $44.6 $1.4 $2.0 4.4% Increase (decrease) vs prior year 16.6% (22.3)% 5.2% -50 bps Net sales for the first quarter of 2021 were $44.6 million, an increase of $6.4 million, or 16.6%, compared with $38.2 million for the first quarter of 2020, driven by higher volume/mix. Volume
Quantum Storage Systems develops Airport Security Nesting bins
Quantum Storage Systems has recently announced the development of their Airport Security Nesting Bins. These polypropylene bins are engineered for rigorous and continuous usage. These bins are often seen used at airport security stations, being loaded and unloaded with personal items that run through airport x-ray machines. The ergonomic built-in handles are designed for easy and comfortable griping. The bins are dishwasher safe and easy to clean with just soap and water. The bins are available in two sizes and are available in Black, Blue, Brown, and Gray. A lid for the FSB-20155R bin can be purchased separately. Bin Model FSB-20155R: 20” x 15” x 5” Bin Model FSB-22177R: 21-1/2” x 17” x 7” Lid Model FSB-L2216 Fits the FSB-20155R only
Tank Holding acquires Rotational Molding Inc. (RMI)
Tank Holding, North America’s largest rotational molder, has acquired California based rotational molder Rotational Molding Inc. RMI designs and manufactures high-quality proprietary products in the bulk laundry and linen carts, material handling bins and containers, refuse and recycling, bulk storage tanks, as well as a variety of other products including outdoor and custom products. “RMI represents an important part of Tank Holding’s overall growth strategy, which is to strengthen leading positions in markets that are adjacent to our legacy core business, where we can leverage our industry knowledge and expertise to create greater value for our customers,” said Greg Wade, CEO of Tank Holding. The RMI acquisition provides additional synergy opportunities with Tank Holding’s other recent acquisitions, Waste & Recycling Plastic Containers, Chem-Tainer, and Meese, who are other major players in similar markets. Together, these market-leading brands and product offerings provide the industry with the broadest product portfolio and the largest footprint of manufacturing facilities. The transaction includes the operations of the facility located in Gardena, California. “Tank Holding is the ideal partner to succeed in our company’s history and accelerate our growth objectives. We are confident they will continue the success for both our customers and employees for the years to come,” said Mario Poma, CEO of Rotational Molding Inc. The RMI announcement represents Tank Holding’s 11th acquisition in the past two years and further enhances the company’s far-reaching portfolio of products to serve a wide variety of end markets through a growing number of distribution channels. Besides being a world leader in the design and manufacturing of polyethylene tank and container products, Tank Holding also maintains major market positions with many other proprietary products, including intermediate bulk containers, insulated material handling bins, laundry and linen carts, refuse containers, and specialty pallets. Tank Holding, which includes the brands of Norwesco, Snyder Industries, Bonar Plastics, Bushman, Chem-tainer, Meese, and Stratis Pallets, owned by Olympus Partners and the management team, currently operates 33 manufacturing plant locations and employs approximately 900 people throughout North America, prior to the RMI acquisition.