MYERS INDUSTRIES INC
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
MYE$26.95+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-04.
0000950170-24-120691
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061811
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 48 current paragraphs.
24 unchanged; 15 reworded; 8 added; 20 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Net sales for the quarter ended March 31, 2025 were $206.8 million, a decrease of $0.4 million or 0.2% compared to the quarter ended March 31, 2024. Net sales decreased due to lower pricing of $6.0 million, lower volume of $0.2 million and the effect of unfavorable currency translation of $0.6 million, partially offset by $6.4 million of incremental sales from the acquisition of Signature on February 8, 2024, included in the Material Handling Segment.
Current report
Net sales in the Material Handling Segment increased $5.4 million or 3.6% for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024. Net sales increased due to $6.4 million of incremental sales from the acquisition of Signature on February 8, 2024 and higher volume of $2.7 million, partially offset by lower pricing of $3.1 million and the effect of unfavorable currency translation of $0.6 million.
Current report
Depreciation and amortization:
Current report
Depreciation and amortization, exclusive of amounts within Cost of sales, increased $0.5 million to $4.5 million for the quarter ended March 31, 2025 as compared to $3.9 million for the quarter ended March 31, 2024. The increase was primarily related to the acquisition of Signature on February 8, 2024.
Current report
Freight out:
Current report
Freight out costs increased $0.4 million to $2.8 million for the quarter ended March 31, 2025 as compared to $2.4 million for the quarter ended March 31, 2024. The increase was primarily related to higher sales volume within the Company's Material Handling segment.
Current report
(Gain) loss on disposal of fixed assets:
Current report
During the quarter ended March 31, 2025 the Company recognized $0.4 million of losses on the disposal of fixed assets primarily related to fixed asset impairments and the disposal of fixed assets in conjunction with the previously announced facility consolidations as described in Note 4. During the quarter ended March 31, 2024 the Company recognized $(0.1) million of gains on the disposal of fixed assets primarily related to the sale of fixed assets in the prior year.
Removed paragraphs (20)
Previous report
Net sales for the quarter ended September 30, 2024 were $205.1 million, an increase of $7.3 million or 3.7% compared to the quarter ended September 30, 2023. Net sales increased due to $20.7 million of incremental sales from the acquisition of Signature on February 8, 2024, included in the Material Handling Segment. Signature's annual sales were approximately $110 million at the time of the acquisition. The increase in net sales was partially offset by lower volume of $11.2 million, lower pricing of $2.1 million and the effect of unfavorable currency translation of $0.2 million.
Previous report
Net sales in the Material Handling Segment increased $18.2 million or 13.8% for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023. Net sales increased due to $20.7 million of incremental sales from the acquisition of Signature on February 8, 2024, partially offset by lower volume of $1.7 million, lower pricing of $0.6 million and the effect of unfavorable currency translation of $0.2 million.
Previous report
Impairment Charges:
Previous report
During the quarter ended September 30, 2024, the Company recorded a $22.0 million non-cash impairment charge, for the full carrying value of goodwill in the rotational molding reporting unit, included in the Material Handling Segment, as discussed in Note 7.
Previous report
The Company’s effective tax rate was 15.4% for the quarter ended September 30, 2024, compared to 25.7% for the quarter ended September 30, 2023. The difference in the effective tax rate compared to the 21% U.S. federal statutory rate was primarily due to non-deductible expenses, which include expenses related to the Signature acquisition, that partially offset the income tax benefit from the current quarter loss before income taxes.
Previous report
Comparison of the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2023
Previous report
Net Sales:
Previous report
Net sales for the nine months ended September 30, 2024 were $632.4 million, an increase of $10.4 million or 1.7% compared to the nine months ended September 30, 2023. Net sales increased due to $71.8 million of incremental sales from the acquisition of Signature on February 8, 2024, included in the Material Handling Segment. Signature's annual sales were approximately $110 million at the time of the acquisition. The increase in net sales was partially offset by lower volume of $47.1 million, lower pricing of $14.0 million and the effect of unfavorable currency translation of $0.3 million.
Previous report
Net sales in the Material Handling Segment increased $40.6 million or 9.5% for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Net sales increased due to $71.8 million of incremental sales from the acquisition of Signature on February 8, 2024, partially offset by lower volume of $19.9 million, lower pricing of $11.0 million and the effect of unfavorable currency translation of $0.3 million.
Previous report
Net sales in the Distribution Segment decreased $30.2 million or 15.6% for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, primarily due to lower volume of $27.2 million and lower pricing of $3.0 million.
Previous report
Cost of Sales & Gross Profit:
Previous report
Selling, General and Administrative Expenses:
Previous report
Selling, general and administrative (“SG&A”) expenses for the nine months ended September 30, 2024 were $152.8 million, an increase of $4.7 million or 3.2% compared to the same period in the prior year. Increases in SG&A expenses for the nine months ended September 30, 2024 were primarily due to $21.1 million of incremental SG&A, including $7.3 million of intangible amortization, from the acquisition of Signature on February 8, 2024 and $1.5 million of higher facility costs, partially offset by $10.1 million of lower incentive compensation, $2.8 million of lower legal and professional fees, excluding acquisition costs, $3.4 million of lower salaries and benefits, $1.1 million of lower commissions and $1.2 million of lower variable selling expenses. Acquisition and integration costs included in SG&A expenses increased $4.0 million due to the Signature acquisition described in Note 3. Additionally, the company incurred $1.3 million of consulting costs for the nine months ended September 30, 2023, to improve its capabilities to screen and execute large acquisitions. Executive severance was $1.4 million for the nine months ended September 30, 2024, compared to $0.7 million for the nine months ended September 30, 2023. Environmental matters, as described in Note 10 resulted in a net $0.7 million recovery for the nine months ended September 30, 2024, which compared to $2.2 million of charges for the nine months ended September 30, 2023.
Previous report
Impairment Charges:
Previous report
During the nine months ended September 30, 2024, the Company recorded a $22.0 million non-cash impairment charge, for the full carrying value of goodwill in the rotational molding reporting unit, included in the Material Handling Segment, as discussed in Note 7.
Previous report
Net Interest Expense:
Previous report
Income Taxes:
Previous report
Seventh Amendment to Loan Agreement
Previous report
On September 29, 2022, the Company entered into a Seventh Amended and Restated Loan Agreement (the “Seventh Amendment”), which amended the Sixth Amended and Restated Loan Agreement (the "Sixth Amendment"), dated March 12, 2021. The Seventh Amendment, among other things, extended the maturity date to September 2027 from March 2024. There was no change to the credit facility's borrowing limit of $250 million.
Previous report
The Amended Loan Agreement is on substantially the same terms as the Loan Agreement, except Amendment No. 1 has amended, among other items, (i) to permit the Signature Systems acquisition, (ii) to modify the maximum leverage ratio to not exceed (x) 4.00 to 1:00 on a “net” basis for an initial “net” leverage ratio holiday period for the immediate fiscal quarter end after the Signature Systems acquisition is consummated and for the three immediately following fiscal quarter ends thereafter and (y) 3.25 to 1.00 on a “net” basis after such “net” leverage ratio holiday period (subject to additional “net” leverage ratio holiday periods at the election of the Company for such periods that are more fully described in the Amended Loan Agreement), (iii) to modify certain negative covenants (including the restricted payment covenant) so that the applicable incurrence tests for such negative covenants is now based on the new “net” leverage ratio level, (iv) to increase the applicable margins for the loans under the Amended Loan Agreement to range between 1.775% to 2.35% for Term SOFR, RFR, SONIA, EURIBOR and CORRA based loans and between 0.775% and 1.35% for base rate loans, in each case based from time to time on the determination of the Company’s then net leverage ratio, (v) to replace the Canadian Dealer Offered Rate (CDOR) as the applicable reference rate with respect to loans denominated in Canadian Dollars to the Canadian Overnight Repo Rate Average (CORRA), and (vi) to amend the scope of collateral securing the obligations under the Amended Loan Agreement to be an “all asset” lien (subject to customary provisions of excluded collateral not subject to the liens).
Reworded paragraphs (15)
Previous wording
Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.
Current wording
Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, significant increases in the cost of raw materials or disruption in the availability of raw materials; operating in a very competitive business environment; changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences; physical and other risks that could disrupt production; risks associated with our ability to develop and market new products; risks associated with protecting our intellectual property rights, including our unpatented proprietary know-how and trade secrets, or in avoiding claims that we infringed on the intellectual property rights of others; price volatility with our common stock; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business or inflationary conditions in the U.S. economy or global markets; risks associated with doing business in foreign countries; inability of the Company to maintain access to credit financing; risks associated with equity ownership concentration; claims, litigation and regulatory actions against the Company; changes in laws (including privacy laws), regulations and standards affecting the Company; current and future environmental and other governmental laws and requirements affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; instability in geographies impacted by political events, trade disputes, war, terrorism and other business interruptions; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
The Company conducts its business activities in two reportable segments: The Material Handling Segment and the Distribution Segment.
Current wording
The Company, a leading manufacturer of products that protect the world from the ground up, conducts its business activities in two reportable segments: The Material Handling Segment and the Distribution Segment.
Previous wording
The Company designs, manufactures, and markets a variety of plastic, metal and rubber products. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, blow molded or compression molded. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, as well as the manufacturing of tire repair and retreading products.
Current wording
The Company designs, manufactures, and markets a variety of plastic, metal and rubber products. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, compression molded or blow molded. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, as well as the manufacturing of tire repair and retreading products.
Previous wording
The Company’s results of operations for the quarter and nine months ended September 30, 2024 are discussed below. The current economic environment includes heightened risks from inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including the conflict between Russia and Ukraine and Israel and Hamas. Such events have increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.
Current wording
The Company’s results of operations for the quarter ended March 31, 2025 are discussed below. The current economic environment includes heightened risks from tariffs, inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including rapidly changing regulations which has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability, tariffs and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.
Previous wording
Net sales in the Distribution Segment decreased $11.0 million or 16.8% for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023, primarily due to lower volume of $9.5 million and lower pricing of $1.5 million.
Current wording
Net sales in the Distribution Segment decreased $5.6 million or 10.3% for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, primarily due to lower pricing of $2.9 million and lower volume of $2.7 million.
Previous wording
Gross profit increased $2.8 million, or 4.4%, for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023, due to the benefits of the acquisition of Signature on February 8, 2024 and favorable mix, partially offset by lower volume and pricing as described under Net Sales above, and higher material costs. Gross margin was 31.8% for the quarter ended September 30, 2024 compared with 31.5% for the quarter ended September 30, 2023.
Current wording
Gross profit increased $4.8 million, or 7.5%, for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, due to the benefits of the acquisition of Signature on February 8, 2024, favorable mix and lower material costs, partially offset by lower volume and pricing as described under Net Sales above, and unfavorable cost productivity. Gross margin was 33.4% for the quarter ended March 31, 2025 compared with 31.0% for the quarter ended March 31, 2024.
Previous wording
Selling, general and administrative (“SG&A”) expenses for the quarter ended September 30, 2024 were $47.7 million, an increase of $4.0 million or 9.1% compared to the same period in the prior year. Increases in SG&A expenses for the third quarter 2024 were primarily due to $8.0 million of incremental SG&A, including $3.1 million of intangible amortization, from the acquisition of Signature on February 8, 2024, $0.9 million of higher facility costs and $0.5 million of higher legal and professional fees, partially offset by $0.1 million of lower variable selling expenses, $4.6 million of lower incentive compensation, $0.7 million of lower commissions, and $0.8 million of lower salaries and benefits. Executive severance was $1.4 million for the quarter ended September 30, 2024. Environmental matters, as described in Note 10 resulted in a net $0.5 million net recovery for the quarter ended September 30, 2024, compared to $0.1 million of net recovery for the quarter ended September 30, 2023.
Current wording
Selling, general and administrative (“SG&A”) expenses for the quarter ended March 31, 2025 were $44.8 million, a decrease of $2.4 million or 5.0% compared to the same period in the prior year. Decreases in SG&A expenses for the quarter ended March 31, 2025 were primarily due to $3.4 million of lower acquisition and integration costs due to the Signature acquisition as described in Note 3, $1.7 million of lower variable selling expenses, $1.1 million of lower legal and professional fees, $1.0 million of lower salaries and benefits, $0.3 million of lower facility costs and $0.2 million of lower commissions, partially offset by $3.0 million of incremental SG&A from the acquisition of Signature on February 8, 2024, $0.6 million of higher incentive compensation and $1.9 million of higher restructuring costs as described in Note 4.
Previous wording
Net interest expense for the quarter ended September 30, 2024 was $8.1 million, an increase of $6.6 million, or 425.7%, compared with $1.5 million for the quarter ended September 30, 2023. The higher net interest expense was due to higher deferred financing fees and average outstanding borrowings as a result of the acquisition of Signature, which was funded through an amendment and restatement of Myers' existing loan agreement discussed below, and a higher weighted-average borrowing rate in the quarter ended September 30, 2024.
Current wording
Net interest expense for the quarter ended March 31, 2025 was $7.4 million, an increase of $1.3 million, or 21.5%, compared with $6.1 million for the quarter ended March 31, 2024. The higher net interest expense was due to higher average outstanding borrowings as a result of the acquisition of Signature, which was funded through an amendment and restatement of Myers' existing loan agreement discussed below, partially offset by a lower weighted-average borrowing rate for the quarter ended March 31, 2025.
Previous wording
The Company’s effective tax rate was 56.4% and 25.6% for the nine months ended September 30, 2024 and 2023, respectively. The increase in the effective tax rate is driven by the fixed non-deductible expenses, including expenses related to the Signature acquisition, on lower income before income taxes plus the tax effect of impairment charges.
Current wording
The Company’s effective tax rate was 26.5% and 27.0% for the quarter ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate is driven by higher fixed non-deductible expenses in the prior year, including expenses related to the Signature acquisition.
Previous wording
The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At September 30, 2024, the Company had $29.7 million of cash, $239.4 million available under the Amended Loan Agreement and outstanding debt of $396.2 million, including the finance lease liability of $8.8 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.
Current wording
The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At March 31, 2025, the Company had $35.3 million of cash, $231.7 million available under the Amended Loan Agreement and outstanding debt of $391.8 million, including the finance lease liability of $8.5 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.
Previous wording
Net cash provided by operating activities was $51.9 million for the nine months ended September 30, 2024, compared to $70.8 million in the same period in 2023. The decrease was primarily due to changes in working capital, primarily due to reductions in accounts payable and accrued expenses. Year to date cash used for working capital was $9.1 million for the nine months ended September 30, 2024, compared to cash generated from working capital of $9.8 million in the prior year to date period, primarily due to reductions in accounts receivable.
Current wording
Net cash provided by operating activities was $10.1 million for the quarter ended March 31, 2025, compared to $20.3 million in the same period in 2024. The decrease was primarily due to changes in working capital, primarily due to increases in accounts receivable and inventories, partially offset by increases in accounts payable. Cash used for working capital was $7.9 million for the quarter ended March 31, 2025, compared to cash generated from working capital of $4.3 million in the prior year to date period.
Previous wording
Net cash used for investing activities was $365.5 million for the nine months ended September 30, 2024 compared to cash used of $19.3 million for the same period in 2023. In 2024, the Company paid $348.3 million to acquire Signature, net of cash acquired and working capital adjustments, as discussed in Note 3. Capital expenditures were $17.3 million and $19.3 million for the nine months ended September 30, 2024 and 2023, respectively. Full year 2024 capital expenditures are expected to be approximately $30 million.
Current wording
Net cash used for investing activities was $8.0 million for the quarter ended March 31, 2025 compared to cash used of $354.5 million for the same period in 2024. In 2024, the Company paid $348.3 million to acquire Signature, net of cash acquired and working capital adjustments, as discussed in Note 3. Capital expenditures were $8.1 million and $5.7 million for the quarter ended March 31, 2025 and 2024, respectively. Full year 2025 capital expenditures are expected to be approximately 3% of revenue.
Previous wording
Cash provided by financing activities was $313.0 million for the nine months ended September 30, 2024 compared to cash used of $49.8 million for the same period in 2023. In 2024, the Company received proceeds of $400 million under a new term loan facility, as described below and repaid $38.0 million of senior unsecured notes, including $26.0 million of senior unsecured notes that matured in January 2024 and the prepayment of $12.0 million of senior unsecured notes in conjunction with the amendment and restatement to the Loan Agreement described below. The company also made scheduled repayments of the Term Loan A totaling $10.0 million. Net borrowings (repayments) of the Company's existing revolving credit facility were $(15.0) million and $(34.0) million for the nine months ended September 30, 2024 and 2023, respectively. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $3.1 million and $1.9 million for the nine months ended September 30, 2024 and 2023, respectively. Cash paid for tax withholdings on vesting of stock compensation totaled $2.0 million and $2.1 million for the nine months ended September 30, 2024 and 2023, respectively. Fees paid for the amendment and restatement to the Loan Agreement in February 2024 totaled $9.2 million. The Company also used cash to pay dividends of $15.4 million and $15.3 million for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Cash provided by financing activities was $1.0 million for the quarter ended March 31, 2025 compared to $336.9 million for the same period in 2024. Net borrowings (repayments) of the Company's revolving credit facility were $13.0 million and $(11.0) million for the quarter ended March 31, 2025 and 2024, respectively. The company also made scheduled repayments of the Term Loan A totaling $5.0 million for the quarter ended March 31, 2025. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $0.3 million and $2.4 million for the quarter ended March 31, 2025 and 2024, respectively. Cash paid for tax withholdings on vesting of stock compensation totaled $0.8 million and $1.9 million for the quarter ended March 31, 2025 and 2024, respectively. The company also used $1.0 million for the repurchase of its common stock, as described in Note 8. In connection with the Signature acquisition in 2024, the Company received proceeds of $400 million under a new term loan facility and repaid $38.0 million of senior unsecured notes in conjunction with an amendment and restatement to the Loan Agreement described below. Fees paid for the amendment and restatement to the Loan Agreement in February 2024 totaled $9.2 million. The Company also used cash to pay dividends of $5.3 million and $5.3 million for the quarter ended March 31, 2025 and 2024, respectively.
Previous wording
On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At September 30, 2024, the remaining notional value of the Company's interest rate swap totaled $195.0 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 11.
Current wording
On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At March 31, 2025, the remaining notional value of the Company's interest rate swap totaled $190.0 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 11.
Previous wording
As of September 30, 2024, $239.4 million was available under the Amended Loan Agreement, after borrowings and the Company had $5.6 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business. Borrowings under the Amended Loan Agreement bear interest at the Term SOFR, RFR, SONIA, EURIBOR and CORRA-based borrowing rates.
Current wording
As of March 31, 2025, $231.7 million was available under the Amended Loan Agreement, after borrowings and the Company had $5.3 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business. Borrowings under the Amended Loan Agreement bear interest at the Term SOFR, RFR, SONIA, EURIBOR and CORRA-based borrowing rates.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Gross profit increased $3.1 million, or 1.5%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, due to the benefits of the acquisition of Signature on February 8, 2024, favorable mix and lower material costs, partially offset by lower volume and pricing as described under Net Sales above, the impact from acquisition-related inventory step-up amortization of $4.5 million and unfavorable cost productivity. Gross margin was 32.4% for the nine months ended September 30, 2024 compared with 32.5% for the nine months ended September 30, 2023.
Previous report — wording carried elsewhere
Net interest expense for the nine months ended September 30, 2024 was $23.2 million, an increase of $18.2 million, or 365.8%, compared with $5.0 million for the nine months ended September 30, 2023. The higher net interest expense was due to higher deferred financing fees and average outstanding borrowings as a result of the acquisition of Signature, which was funded through an amendment and restatement of Myers' existing loan agreement discussed below, and a higher weighted-average borrowing rate for the nine months ended September 30, 2024.