These comments are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Sales were up 43% year-over-year, and this is the strongest growth Myers has obtained in over a decade.
As I mentioned, sales were up 43% year-over-year, driven by strong growth in both the Material Handling and Distribution Segments and a meaningful contribution from the Elkhart acquisition.
Wholesale RV shipments were up 79% in March and are projected to reach a record high in 2021.
On an organic basis, sales were up 21%.
In response to the significant increases in raw material costs, partly due to Winter Storm Uri, we announced an 8% price increase across a broad portfolio of our products effective March 1.
Then in response to continued raw material pressure and a tight supply chain, we announced a second price increase of 9% to 12% effective April 1.
Net sales were up $52 million, an increase of 43%.
Excluding the impact of the Elkhart acquisition, organic net sales increased 21% due to volume mix.
Price and FX accounted for 1% of the net sales growth.
Adjusted gross profit was up $7.9 million, while gross margin decreased from 34.8% in the prior year to 28.9% in the quarter.
As a reminder, we are targeting $4 million to $6 million in annual cost synergies over the course of the upcoming two years.
Adjusted operating income increased slightly to $11.9 million.
Adjusted EBITDA was $17 million, a decline of $400,000 compared to the prior year.
Adjusted EBITDA margin was 9.8%.
And lastly, adjusted earnings per share was $0.22, flat compared to the prior year.
Beginning with Material Handling, net sales increased $46 million or 55%, including the Elkhart acquisition.
On an organic basis, sales were up 22%, driven by strong volume mix.
Price and FX accounted for 1% of the growth.
Material Handling adjusted operating income increased 12% to $16.9 million, driven by higher sales volume and the addition of Elkhart, which were mostly offset by an unfavorable price-to-cost relationship, unfavorable sales mix and higher manufacturing expenses, incentive compensation costs and legal and professional fees.
In the Distribution Segment, sales increased $6 million or 17%, driven by both equipment and consumable sales.
Distribution's adjusted operating income increased 5% to $2 million, primarily as a result of higher sales volume, partially offset by an unfavorable sales mix and unfavorable price-to-cost relationship and higher incentive compensation costs.
Cash provided by operating activities was $6.6 million, an increase of $1.6 million over the prior year, reflecting the benefit of working capital.
Free cash flow decreased $1.1 million to $1.4 million, reflecting an increase in capital expenditures year-over-year.
Cash on hand at quarter end was $16.6 million.
Based on our trailing 12-month adjusted EBITDA of $66 million, leverage was 1.2 times.
In mid-March, we amended and extended our credit facility, upsizing our borrowing capacity from $200 million to $250 million and extending the maturity date to March 2024, ultimately providing greater flexibility in our capital structure.
Reported net sales are anticipated to increase in the high 30% range, including an incremental 10.5 months of sales related to the Elkhart acquisition.
As a reminder, Elkhart's net sales at the time of acquisition were approximately $100 million.
The increase in net sales from our previous guidance, which was mid- to high 20% sales growth, incorporates the strength experienced in the first quarter, along with continued sales momentum expected throughout the year.
SG&A expenses are now expected to approximate 23% of net sales benefiting from larger scale and the increase in our sales outlook.
Below operating income, we are projecting approximately $4 million of interest expense and an effective tax rate of 26%.
Our guidance reflects a weighted average share count of 36.5 million shares.
Taking all of these assumptions into account, we are reaffirming our 2021 outlook for adjusted earnings per share of $0.90 to $1.05 per share with growing confidence of achieving the higher end of the range.
Other key assumptions impacting EBITDA and cash flow include depreciation and amortization expenses of approximately $23 million and capex of approximately $15 million.
On our long-term road map, we're currently in Horizon 1, which is based on three elements: self-help, organic growth and bolt-on M&A.
I've used this approach many times over the past 20 years to kick-start and deliver business transformations.
Once the key elements of Horizon one are in place, we'll move to Horizon 2, where we will execute larger enterprise-level acquisitions.
We continue to expect that when we are ready for Horizon 2, several ideal targets will be coming to market so the timing should work well.
Our long-term vision culminates with Horizon 3, which is focused on growing the company globally.
During Horizon one or 2, we will consider global acquisitions if they have the right strategic fit and are executable, though it will likely be Horizon three before we acquire internationally at scale.
As a reminder, our goal for this channel is to be approximately 10% of sales by the end of 2023, and you can expect to hear more about our progress as we proceed through the year.

Summary:
And lastly, adjusted earnings per share was $0.22, flat compared to the prior year.
Reported net sales are anticipated to increase in the high 30% range, including an incremental 10.5 months of sales related to the Elkhart acquisition.
Taking all of these assumptions into account, we are reaffirming our 2021 outlook for adjusted earnings per share of $0.90 to $1.05 per share with growing confidence of achieving the higher end of the range.