-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IbLRTPl7x456OUyNc8Z6X8UvTRTdgg4VHPYSvPtIxn27h6WWFC6THWSvZnCL6sHc lIqhrsSwZSKz2o4LMl2rTQ== 0000950152-96-002221.txt : 19960513 0000950152-96-002221.hdr.sgml : 19960513 ACCESSION NUMBER: 0000950152-96-002221 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960510 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MYERS INDUSTRIES INC CENTRAL INDEX KEY: 0000069488 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 340778636 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08524 FILM NUMBER: 96559334 BUSINESS ADDRESS: STREET 1: 1293 S MAIN ST CITY: AKRON STATE: OH ZIP: 44301 BUSINESS PHONE: 2162535592 MAIL ADDRESS: STREET 1: 1293 SOUTH MAIN STREET CITY: AKRON STATE: OH ZIP: 44301 FORMER COMPANY: FORMER CONFORMED NAME: MYERS TIRE SUPPLY CO DATE OF NAME CHANGE: 19720609 10-Q 1 MYERS INDUSTRIES 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________ FORM 10-Q (Mark One) | X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 ------------------------------------------- OR |___| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ________________________ Commission file number I-8524 ---------- MYERS INDUSTRIES, INC. ----------------------------------------------------- (Exact name of registrant as specified in its charter) OHIO #34-0778636 - ------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1293 SOUTH MAIN STREET, AKRON, OHIO 44301 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (216) 253-5592 ------------------ Indicate whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No . --------- ---------- Applicable Only to Issuers Involved in Bankruptcy Proceedings During the Preceding Five Years Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes _________. No _________ . As of April 30, 1996, the number of shares outstanding of the issuer's Common Stock was: 16,942,947 ========== 2 -1- PART I - FINANCIAL INFORMATION --------------------------------- MYERS INDUSTRIES, INC. ---------------------- CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION AS OF MARCH 31, 1996 AND DECEMBER 31, 1995 ------------------------------------------------------
March 31, December 31, ASSETS 1996 1995 - ----------- ------------- -------------- CURRENT ASSETS Cash and temporary cash investments $4,626,394 $3,387,562 Accounts receivable-less allowances of $1,834,000 and $1,594,000, respectively 51,872,979 52,501,016 Inventories Finished and in-process products 33,860,446 34,614,735 Raw materials and supplies 6,554,879 6,635,012 ------------ ------------- 40,415,325 41,249,747 Prepaid expenses 3,990,823 3,948,972 ------------ ------------- TOTAL CURRENT ASSETS 100,905,521 101,087,297 OTHER ASSETS Excess of cost over fair value of net assets of companies acquired 16,876,518 17,015,358 Patents and other intangible assets 2,987,979 2,924,256 Other 3,039,937 3,147,213 ------------ ------------- 22,904,434 23,086,827 PROPERTY, PLANT & EQUIPMENT, AT COST Land 2,297,508 1,989,508 Buildings and leasehold improvements 35,363,056 35,325,705 Machinery and equipment 97,709,768 93,646,662 ------------ ------------- 135,370,332 130,961,875 Less allowances for depreciation and amortization 64,115,705 61,532,126 ------------ ------------- 71,254,627 69,429,749 ------------ ------------- $195,064,582 $193,603,873 ============ =============
3 -2- PART I - FINANCIAL INFORMATION ---------------------------------- MYERS INDUSTRIES, INC. ---------------------- CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION AS OF MARCH 31, 1996 AND DECEMBER 31, 1995 ------------------------------------------------------
March 31, December 31, LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1995 - ------------------------------------ ------------- ------------- CURRENT LIABILITIES Accounts payable $15,134,376 $11,865,636 Employee compensation and related items 7,862,735 9,736,457 Accrued expenses Interest 18,573 182,262 Taxes, other than income taxes 1,168,066 1,160,766 Income taxes 3,456,656 1,068,474 Other 7,258,130 7,382,327 Current portion of long-term debt 487,373 976,104 ------------ ------------ TOTAL CURRENT LIABILITIES 35,385,909 32,372,026 LONG-TERM DEBT, less current portion 6,977,329 13,335,191 DEFERRED INCOME TAXES 2,713,306 2,713,106 SHAREHOLDERS' EQUITY Serial Preferred Shares -0- -0- (authorized 1,000,000) Common Shares, without par value 10,300,412 10,014,186 (authorized 30,000,000 shares; outstanding 16,934,291 and 16,906,019, respectively) Additional paid-in capital 111,382,116 111,382,116 Foreign currency translation adjustment (413,460) (393,840) Retained income 28,718,970 24,181,088 ------------ ------------ 149,988,038 145,183,550 ------------ ------------ $195,064,582 $193,603,873 ============ ============
4 -3- PART I - FINANCIAL INFORMATION --------------------------------- MYERS INDUSTRIES, INC. --------------------- CONDENSED STATEMENT OF CONSOLIDATED INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995 --------------------------------------------------
March 31, March 31, 1996 1995 -------------- ------------ Net sales $72,554,256 $67,500,977 Costs and expenses Cost of sales 48,204,214 46,290,759 Operating expenses 15,307,569 14,786,897 Interest expense, net 169,538 99,435 ------------- ----------- Total costs & expenses 63,681,321 61,177,091 Income before income taxes 8,872,935 6,323,886 Income taxes 3,658,000 2,557,000 ------------- ----------- Net income $5,214,935 $3,766,886 ============= =========== Net income per common share* $.31 $.22 Dividends per common share* $.04 $.036 Weighted average number of common shares outstanding* 16,919,909 16,848,448
*Adjusted for the ten percent stock dividend distributed in August, 1995. 5 -4- PART I - FINANCIAL INFORMATION --------------------------------- MYERS INDUSTRIES, INC. ---------------------- STATEMENTS OF CONSOLIDATED CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995 --------------------------------------------------
March 31, March 31 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES ----------- ----------- Net income $5,214,935 $3,766,886 Items not affecting use of cash Depreciation 2,591,579 2,526,747 Amortization of excess of cost over fair value of net assets of companies acquired 138,840 71,340 Amortization of other intangible assets 90,612 75,782 Cash flow provided by (used for) working capital Accounts receivable 628,037 1,185,417 Inventories 834,422 (2,615,626) Prepaid expenses (41,851) 823,661 Accounts payable and accrued expenses 3,502,614 (4,824,786) ---------- ---------- Net cash provided by operating activities 12,959,188 1,009,421 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from issuance of common stock 286,226 262,377 Additions to property, plant and equipment, net (4,416,457) (2,487,709) Cash dividends paid (677,053) (612,604) Other (66,479) (2,018) ---------- ---------- Net cash used for investing activities (4,873,763) (2,839,954) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings - net (6,846,593) 2,824,351 ---------- ---------- Net cash provided by (used for) financing activities (6,846,593) 2,824,351 INCREASE IN CASH AND TEMPORARY CASH INVESTMENTS 1,233,832 993,818 CASH AND TEMPORARY CASH INVESTMENTS JANUARY 1 3,387,562 1,794,703 ---------- ---------- CASH AND TEMPORARY CASH INVESTMENTS MARCH 31 $4,626,394 $2,788,521 ========== ==========
6 -5- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- (1) Statement of Accounting Policy ------------------------------ The accompanying financial statements include the accounts of Myers Industries, Inc. and subsidiaries (Company), and have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's latest annual report on Form 10-K. In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of March 31, 1996 and the results of operations and cash flows for the three months ended March 31, 1996 and 1995. (2) Income Per Share ---------------- Income per share is determined on the basis of the weighted average number of common shares and common stock equivalents outstanding during the period with the 1995 data adjusted for the ten percent stock dividend paid in August, 1995. (3) Supplemental Disclosure of Cash Flow Information ------------------------------------------------ The Company made cash payments for interest expense of $396,982 and $210,954 for the three months ended March 31, 1996 and 1995, respectively. Cash payments for income taxes were $1,269,618 and $329,216 for the three months ended March 31, 1996 and 1995, respectively. 7 -6- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS --------------------------------------------- RESULTS OF OPERATIONS - --------------------- Net sales for the three months ended March 31, 1996 increased $5,053,279 or 7.5 percent over the same period in 1995. The increase was primarily due to the inclusion of Ameri-Kart Corp. which was acquired in June, 1995. Cost of sales for the three month period ended March 31, 1996 increased $1,913,455 or 4.1 percent over the period ended March 31, 1995. This was attributable to the increase in sales. Gross profit, expressed as a percentage of sales, increased to 33.6 percent in 1996 from 31.4 percent for the three month period in 1995 primarily due to lower raw material costs in the Manufacturing segment. Operating expenses increased $520,672 or 3.5 percent for the three month period ended March 31, 1996, as compared to the same period in 1995. Operating expenses, expressed as a percentage of sales, decreased to 21.1 percent as compared to 21.9 percent in 1995 as the result of cost controls and greater fixed expense coverage. Net interest expense for the three month period ended March 31, 1996 increased to $169,538 compared to $99,435 for the same period in 1995. The increase was attributable to both higher average levels of debt and higher interest rates in the current year. Income taxes, expressed as a percentage of income before income taxes, increased to 41.2 percent for the three months ended March 31, 1996, from the 40.4 percent in the same period in 1995. The higher effective tax rate reflects an increase in non-deductible amortization expense and foreign tax rate differences. 8 -7- LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- The Company's financial position continues to be solid. Cash provided from operating activities is the primary source of liquidity and amounted to $12,959,188 for the three month period ended March 31, 1996. During the quarter long-term debt was reduced by $6,357,862 and total debt at March 31, 1995, expressed as a percentage of total capitalization, decreased to 4.7 percent as compared to 9.0 percent at December 31, 1995. Working capital decreased to $65,519,612 at March 31, 1996 from $68,715,271 at December 31, 1995. During the quarter, capital expenditures were $4,416,457. The Company currently anticipates capital expenditures in the range of $15.0 to $20.0 million per year over the next five years, primarily for increased polymer manufacturing capacity. Management believes that anticipated cash flows from operations and available credit facilities will be sufficient to fund capital expenditures and meet its short-term and long-term operating needs. 9 -8- PART II - OTHER INFORMATION --------------------------- MYERS INDUSTRIES, INC. ---------------------- Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27 Financial Data Schedule (b) Form 8-K None SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MYERS INDUSTRIES, INC. May 10, 1996 By: /s/ Gregory J Stodnick - ------------------- ------------------------------- Date Gregory J. Stodnick Vice President-Finance Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer) EX-27 2 EXHIBIT 27 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 0000069488 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 4,626,394 0 53,706,979 1,834,000 40,415,325 100,905,521 135,370,332 64,115,705 195,064,582 35,385,909 0 10,300,412 0 0 139,687,626 195,064,582 72,554,256 72,554,256 48,204,214 56,169,959 7,249,956 240,000 233,293 8,872,935 3,658,000 5,214,935 0 0 0 5,214,935 .31 .31
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