-----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, I/NohE6hKMYxHCZGoWSioiSiBVlTSToGPBsyr6Ln7VEXQ0t7U3+SrMzS8cUMOgWD mkYWiLP2ODKOKAnC5fUvIw== 0000950152-96-005801.txt : 19961111 0000950152-96-005801.hdr.sgml : 19961111 ACCESSION NUMBER: 0000950152-96-005801 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961108 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: 96657285 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, INC. 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 SEPTEMBER 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 OCTOBER 31, 1996, THE NUMBER OF SHARES OUTSTANDING OF THE ISSUER'S COMMON STOCK WAS: 16,922,417 ========== 2 -1- PART I - FINANCIAL INFORMATION --------------------------------- MYERS INDUSTRIES, INC. -------------------------- CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION AS OF SEPTEMBER 30, 1996 AND DECEMBER 31, 1995 -------------------------------------------------------
September 30, December 31, ASSETS 1996 1995 - ----------- ------------- ------------ CURRENT ASSETS Cash and temporary cash investments $ 4,669,129 $ 3,387,562 Accounts receivable-less allowances of $2,055,000 and $1,594,000, respectively 53,538,276 52,501,016 Inventories Finished and in-process products 32,328,113 34,614,735 Raw materials and supplies 6,143,794 6,635,012 ------------- ------------- 38,471,907 41,249,747 Prepaid expenses 2,458,142 3,948,972 ------------- ------------- TOTAL CURRENT ASSETS 99,137,454 101,087,297 OTHER ASSETS Excess of cost over fair value of net assets of companies acquired 16,598,838 17,015,358 Patents and other intangible assets 2,815,009 2,924,256 Other 2,997,026 3,147,213 ------------- ------------- 22,410,873 23,086,827 PROPERTY, PLANT & EQUIPMENT, AT COST Land 2,485,783 1,989,508 Buildings and leasehold improvements 36,440,790 35,325,705 Machinery and equipment 104,959,388 93,646,662 ------------- ------------- 143,885,961 130,961,875 Less allowances for depreciation and amortization 68,863,040 61,532,126 ------------- ------------- 75,022,921 69,429,749 ------------- ------------- $ 196,571,248 $ 193,603,873 ============= =============
3 -2- PART I - FINANCIAL INFORMATION ------------------------------------------------------ MYERS INDUSTRIES, INC. -------------------------------------- CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION AS OF SEPTEMBER 30, 1996 AND DECEMBER 31, 1995 ------------------------------------------------------
September 30, December 31, LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1995 - ------------------------------------ ------------- ------------ CURRENT LIABILITIES Accounts payable $ 15,812,471 $ 11,865,636 Employee compensation and related items 8,862,389 9,736,457 Accrued expenses Interest 12,422 182,262 Taxes, other than income taxes 1,290,999 1,160,766 Income taxes (2,163,424) 1,068,474 Other 7,085,954 7,382,327 Current portion of long-term debt 485,471 976,104 ------------- ------------ TOTAL CURRENT LIABILITIES 31,386,282 32,372,026 LONG-TERM DEBT, less current portion 4,647,251 13,335,191 DEFERRED INCOME TAXES 2,713,199 2,713,106 SHAREHOLDERS' EQUITY Serial Preferred Shares -0- -0- (authorized 1,000,000) Common Shares, without par value 10,568,267 10,014,186 (authorized 30,000,000 shares; outstanding 16,933,634 and 16,906,019, respectively) Additional paid-in capital 111,119,956 111,382,116 Foreign currency translation adjustment (372,615) (393,840) Retained income 36,508,908 24,181,088 ------------- ------------ 157,824,516 145,183,550 ------------- ------------ $196,571,248 $193,603,873 ============= ============
4 -3- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ----------------------
CONDENSED STATEMENT OF CONSOLIDATED INCOME ------------------------------------------------------ FOR THE THREE FOR THE NINE MONTHS ENDED MONTHS ENDED -------------------------- --------------------------- September 30, September 30, September 30, September 30, 1996 1995 1996 1995 ----------- ----------- ------------ ------------ Net sales $77,879,982 $74,650,879 $230,385,397 $217,735,842 Costs and expenses Cost of sales 55,207,594 52,523,640 157,774,466 151,533,914 Operating expenses 16,337,585 16,226,278 47,681,893 46,357,276 Interest expense, net 47,556 306,837 301,868 554,801 ----------- ----------- ------------ ------------ Total costs & expenses 71,592,735 69,056,755 205,758,227 198,445,991 Income before income taxes 6,287,247 5,594,124 24,627,170 19,289,851 Income taxes 2,578,000 2,277,000 10,097,000 7,851,000 ----------- ----------- ------------ ------------ Net income $ 3,709,247 $ 3,317,124 $ 14,530,170 $ 11,438,851 =========== =========== ============ ============ Net income per Common Share $.22 $.20 $.86 $.68 Dividends per Common Share $.05 $.04 $.13 $.11 Weighted average number of Common Shares outstanding 16,944,873 16,877,705 16,934,546 16,864,258
5 -4- PART I - FINANCIAL INFORMATION ------------------------------ MYERS INDUSTRIES, INC. ---------------------- STATEMENTS OF CONSOLIDATED CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 -----------------------------------------------------
September 30, September 30, 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES -------------- -------------- Net income $14,530,170 $11,438,851 Items not affecting use of cash Depreciation 8,046,707 7,747,901 Amortization of excess of cost over fair value of net assets of companies acquired 416,520 281,520 Amortization of other intangible assets 357,752 232,875 Cash flow provided by (used for) working capital Accounts receivable (1,037,260) 5,178,351 Inventories 2,777,840 (2,037,247) Prepaid expenses 1,438,333 999,027 Accounts payable and accrued expenses (495,111) (9,997,770) -------------- -------------- Net cash provided by operating activities 26,034,951 13,843,508 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment, net (13,639,879) (7,102,954) Acquisition of business, net of cash acquired -0- (14,519,740) Other (24,503) 639,923 -------------- -------------- Net cash used for investing activities (13,664,382) (20,982,771) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings to finance acquisition -0- 13,000,000 Borrowings (repayments) - net (9,178,573) (2,035,461) Cash dividends paid (2,202,350) (1,911,577) Proceeds from issuance of common stock 564,993 550,501 Repurchases of common stock (273,072) -0- -------------- -------------- Net cash provided by (used for) financing activities (11,089,002) 9,603,463 INCREASE IN CASH AND TEMPORARY CASH INVESTMENTS 1,281,567 2,464,200 CASH AND TEMPORARY CASH INVESTMENTS JANUARY 1 3,387,562 1,794,703 -------------- -------------- CASH AND TEMPORARY CASH INVESTMENTS SEPTEMBER 30 $4,669,129 $4,258,903 ============== ==============
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 September 30, 1996 and December 31, 1995, and the results of operations and cash flows for the nine months ended September 30, 1996 and 1995. (2) Supplemental Disclosure of Cash Flow Information ------------------------------------------------ The Company made cash payments for interest expense of $135,583 and $205,198 for the three months ended September 30, 1996 and 1995, respectively. Cash payments for interest expense were $653,239 and $568,583 for the nine months ended September 30, 1996 and 1995, respectively. Cash payments for income taxes for the nine months ended September 30, 1996 and September 30, 1995 were $3,616,502 and $2,928,379, respectively. For the nine month period the payments for income taxes were $13,328,805 for 1996 and $9,033,824 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 September 30, 1996 increased $3,229,103 or 4.3 percent which is primarily attributed to volume increase in the Company's distribution segment. Net sales for the nine months ended September 30, 1996 increased $12,649,555 or 5.8 percent due mainly to the inclusion of Ameri-Kart Corp., acquired in June 1995, for the nine month period as compared to only three months in 1995. Cost of sales for the three month period ended September 30, 1996 increased $2,683,954 or 5.1 percent and $6,240,552 or 4.1 percent for the nine month period ended September 30, 1996. Gross profit, expressed as a percentage of sales, decreased to 29.1 percent in 1996 from 29.6 percent for the three month period in 1995. This decrease is attributable to higher raw material costs as well as expenses associated with the start up of a new manufacturing facility. For the nine month period ended September 30, 1996, the gross profit percentage increased to 31.5 percent from 30.4 percent in 1995, primarily due to lower average costs for plastic resins used in the manufacturing segment during the first six months of the current year. Operating expenses increased $111,307 or .7 percent for the three month period and $1,324,617 or 2.9 percent for the nine month period ended September 30, 1996, compared to the same periods in 1995. Operating expenses, expressed as a percentage of sales, decreased to 21.0 percent from 21.7 percent for the three month period and 20.7 percent compared to 21.3 percent for the nine month period ended September 30. This improvement reflects on-going cost control programs and better fixed expense coverage. Interest expense for the three month period ended September 30, 1996 decreased to $47,557 from $306,837 in 1995 reflecting lower average borrowing levels in the current period. For the nine month period interest expense decreased to $301,868 in 1996 from $554,801 in 1995. Income taxes, expressed as a percentage of income before income taxes, were 41.0 percent for the three months ended September 30, 1996 compared to 40.7 percent for the same period in 1995. The effective tax rate for the nine months ended September 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 $26,034,951 for the nine months ended September 30, 1996. Long-term debt was reduced by $9,178,573 during the first nine months of 1996 and debt as a percentage of total capitalization decreased to 3.1 percent compared to 9.0 percent at December 31, 1995. Working capital decreased to $67,751,172 at September 30, 1996 from $68,715,271 at December 31, 1995. Capital expenditures for the nine months ended September 30, 1996 were $13,639,879. 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 6 Exhibits and Reports on Form 8-K -------------------------------- (a) 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. Date 11-8-96 By: \s\ Gregory J. Stodnick - ------------ ----------------------- Gregory J. Stodnick Vice President-Finance Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer) EX-27 2 EXHIBIT 27
5 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 4,669,129 0 55,593,276 2,055,000 38,471,907 99,137,454 143,885,961 68,863,040 196,571,248 31,386,282 0 10,568,267 0 0 147,256,249 196,571,248 230,385,397 230,385,397 157,774,466 183,581,037 21,811,815 636,540 496,404 24,627,170 10,097,000 14,530,170 0 0 0 14,530,170 .86 .86
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