-----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, ERHdBUxN+mXZmrtrSqk/546MfgZP3n2wUdk4pOHW4VtYv4HtNhsVNx7I/4Ll10LA qr8Y8R0JW83ZkP6PJIPStQ== 0000950152-96-004045.txt : 19960814 0000950152-96-004045.hdr.sgml : 19960814 ACCESSION NUMBER: 0000950152-96-004045 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 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: 96609424 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 10-Q 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 June 30, 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 (330) 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 July 31, 1996, the number of shares outstanding of the issuer's Common Stock was: 16,951,234 ========== 2 -1- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION AS OF JUNE 30, 1996 AND DECEMBER 31, 1995 ------------------------------------------------------
June 30, December 31, ASSETS 1996 1995 - ------ ---- ---- CURRENT ASSETS Cash and temporary cash investments $ 4,457,366 $ 3,387,562 Accounts receivable-less allowances of $1,922,000 and $1,594,000, respectively 54,370,594 52,501,016 Inventories Finished and in-process products 31,990,652 34,614,735 Raw materials and supplies 5,535,587 6,635,012 ------------- ------------ 37,526,239 41,249,747 Prepaid expenses 4,173,505 3,948,972 ------------- ------------ TOTAL CURRENT ASSETS 100,527,704 101,087,297 OTHER ASSETS Excess of cost over fair value of net assets of companies acquired 16,737,678 17,015,358 Patents and other intangible assets 2,951,286 2,924,256 Other 2,965,123 3,147,213 ------------- ------------ 22,654,087 23,086,827 PROPERTY, PLANT & EQUIPMENT, AT COST Land 2,462,463 1,989,508 Buildings and leasehold improvements 35,270,432 35,325,705 Machinery and equipment 101,754,484 93,646,662 ------------- ------------ 139,487,379 130,961,875 Less allowances for depreciation and amortization 66,109,231 61,532,126 ------------- ------------ 73,378,148 69,429,749 ------------- ------------ $ 196,559,939 $193,603,873 ============= ============
3 -2- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION AS OF JUNE 30, 1996 AND DECEMBER 31, 1995 ------------------------------------------------------
June 30, December 31, LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1995 - ------------------------------------ ---- ---- CURRENT LIABILITIES Accounts payable $ 16,568,179 $ 11,865,636 Employee compensation and related items 9,092,644 9,736,457 Accrued expenses Interest 25,636 182,262 Taxes, other than income taxes 1,373,730 1,160,766 Income taxes (1,124,858) 1,068,474 Other 7,410,010 7,382,327 Current portion of long-term debt 485,471 976,104 ------------- ------------- TOTAL CURRENT LIABILITIES 33,830,812 32,372,026 LONG-TERM DEBT, less current portion 4,937,430 13,335,191 DEFERRED INCOME TAXES 2,713,135 2,713,106 SHAREHOLDERS' EQUITY Serial Preferred Shares -0- -0- (authorized 1,000,000) Common Shares, without par value 10,443,051 10,014,186 (authorized 30,000,000 shares; outstanding 16,943,387 and 16,906,019, respectively) Additional paid-in capital 111,382,116 111,382,116 Foreign currency translation adjustment (393,827) (393,840) Retained income 33,647,222 24,181,088 ------------- ------------- 155,078,562 145,183,550 ------------- ------------- $ 196,559,939 $ 193,603,873 ============= =============
4 -3- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- CONDENSED STATEMENT OF CONSOLIDATED INCOME ------------------------------------------
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED -------------------------- --------------------------- June 30, June 30, June 30, June 30, 1996 1995 1996 1995 ----------- ----------- ------------ ------------ Net sales $79,951,159 $75,583,986 $152,505,415 $143,084,963 Costs and expenses Cost of sales 54,362,658 52,719,515 102,566,872 99,010,274 Operating expenses 16,036,739 15,344,101 31,344,308 30,130,998 Interest 84,774 148,529 254,312 247,964 ----------- ----------- ------------ ------------ Total costs & expenses 70,484,171 68,212,145 134,165,492 129,389,236 Income before income taxes 9,466,988 7,371,841 18,339,923 13,695,727 Income taxes 3,861,000 3,017,000 7,519,000 5,574,000 ----------- ----------- ------------ ------------ Net income $ 5,605,988 $ 4,354,841 $ 10,820,923 $ 8,121,727 =========== =========== ============ ============ Net income per Common Share* $ .33 $ .26 $ .64 $ .48 Dividends per Common Share* $ .04 $ .04 $ .08 $ .07 Weighted average number of Common Shares outstanding* 16,941,003 16,866,625 16,929,908 16,857,392 - ------------ *Adjusted for the 10 percent stock dividend distributed in August, 1995.
5 -4- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- STATEMENTS OF CONSOLIDATED CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995 -----------------------------------------------
June 30, June 30, 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES ------------- ----------- Net income $ 10,820,923 $ 8,121,727 Items not affecting use of cash Depreciation 5,216,492 5,037,952 Amortization of excess of cost over fair value of net assets of companies acquired 277,680 142,680 Amortization of other intangible assets 238,640 154,042 Cash flow provided by (used for) working capital Accounts receivable (1,869,578) 1,690,884 Inventories 3,723,508 (2,422,013) Prepaid expenses (259,531) 523,252 Accounts payable and accrued expenses 1,949,419 (6,200,951) ------------ ----------- Net cash provided by operating activities 20,097,553 7,047,573 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from issuance of common stock 428,865 403,125 Additions to property, plant and equipment, net (9,164,891) (4,425,729) Cash dividends paid (1,354,789) (1,226,281) Other (48,540) (324,922) ------------ ----------- Net cash used for investing activities (10,139,355) (5,573,807) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings (repayments) - net (8,888,394) 2,731,723 ------------ ----------- INCREASE IN CASH AND TEMPORARY CASH INVESTMENTS 1,069,804 4,205,489 CASH AND TEMPORARY CASH INVESTMENTS JANUARY 1 3,387,562 1,794,703 ------------ ----------- CASH AND TEMPORARY CASH INVESTMENTS JUNE 30 $ 4,457,366 $ 6,000,192 ============ ===========
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 June 30, 1996 and the results of operations and cash flows for the three months and six months ended June 30, 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 $120,674 and $152,431 for the three months ended June 30, 1996 and 1995, respectively. Cash payments for interest expense were $517,656 and $363,385 for the six months ended June 30, 1996 and 1995, respectively. Cash payments for income taxes for the three months ended June 30, 1996 and June 30, 1995 were $8,442,685 and $5,776,229, respectively. For the six month period the payments for income taxes were $9,712,303 for 1996 and $6,105,445 for 1995. 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 June 30, 1996 increased $4,367,173 or 5.8 percent and $9,420,452 or 6.6 percent for the six month period as compared to the same periods in 1995. The increase is primarily attributable to the inclusion of Ameri-Kart Corp. which was acquired in June, 1995. Cost of sales for the three month period ended June 30, 1996 increased $1,643,143 or 3.1 percent and $3,556,598 or 3.6 percent for the six month period ended June 30, 1996. This is the result of greater sales in 1996. Gross profit, expressed as a percentage of sales, increased to 32.0 percent in 1996 from 30.3 percent for the three month period in 1995. For the six month period ended June, 30, 1996, the gross profit increased to 32.7 percent from 30.8 percent for the same period in 1995. The gross profit improvement is primarily due to lower costs of raw material, principally plastic resins, used in the manufacturing segment. Operating expenses increased $692,638 or 4.5 percent for the three month period and $1,213,310 or 4.0 percent for the six month period ended June 30, 1996, compared to the same periods in 1995. Operating expenses, expressed as a percentage of sales, decreased to 20.1 percent from 20.3 percent for the three month period compared to the previous year. For the six month period ended June 30, 1996, the percentage decreased to 20.6 percent compared to 21.1 percent for the same period in 1995 as a result of cost controls and greater fixed expense coverage. Interest expense for the three month period ended June 30, 1996 decreased to $84,774 from $148,529 in 1995 reflecting lower average borrowing levels in the current period. For the six month period interest expense increased to $254,312 in 1996 from $247,964 in 1995 based on the higher debt levels and interest rates in effect during the first quarter of 1996. Income taxes, expressed as a percentage of income before income taxes, were 40.8 percent for the three months ended June 30, 1996 compared to 40.9 percent for the same period in 1995. The effective tax rate for the six months ended June 30, 1996 increased slightly to 41.0 percent from 40.7 percent in 1995 reflecting an increase in non-deductible amortization expense. 8 -7- LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash provided by operating activities is the primary source of liquidity and amounted to $20,097,553 for the six months ended June 30, 1996. Long-term debt was reduced by $8,888,394 during the first six months of 1996 and debt as a percentage of total capitalization decreased to 3.4 percent compared to 9.0 percent at December 31, 1995. Working capital decreased to $66,696,892 at June 25, 1996 from $68,715,271 at December 31, 1995. Capital expenditures for the six months ended June 30, 1996 were $9,164,891. The Company currently anticipates annual capital expenditures in the range of $15.0 to $20.0 million 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 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- The Annual Meeting of Shareholders was held on April 25, 1996. At the Annual Meeting, the election of eight Directors were voted upon. All of the Directors nominated were elected. The results of this voting are as follows:
Votes Votes Name of Director For Withheld Stephen E. Myers 14,822,535 20,078 Milton I. Wiskind 14,821,837 20,776 Edwin P. Schrank 14,820,519 22,094 Karl S. Hay 14,820,421 22,192 Richard P. Johnston 14,813,828 28,785 Richard L. Osborne 14,533,214 309,399 Jon H. Outcalt 14,821,266 21,347 Samuel Salem 14,816,555 26,058
Item 5. 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. August 13, 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
5 0000069488 MYERS INDUSTRIES, INC. 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 4,457,366 0 56,292,594 1,922,000 37,526,239 100,527,704 139,487,379 66,109,231 196,559,939 33,830,812 0 10,443,051 0 0 144,635,511 196,559,939 152,505,415 152,505,415 102,566,872 119,393,600 14,511,241 395,184 369,700 18,339,923 7,519,000 10,820,923 0 0 0 10,820,923 .64 .64
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