EX-99.1 2 d526352dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   

News Release

NYSE: MYE

Contact(s):

Gregg Branning, Senior Vice President

& Chief Financial Officer (330) 761-6303

Monica Vinay, Director, Investor

& Financial Relations (330) 761-6212

Myers Industries Reports 2013 First Quarter Results

Net sales rose 8.1% helped by last year’s acquisitions

First quarter EPS was lower year-over-year as anticipated

Continue to expect year-over-year EPS improvement for the remainder of 2013

Lawn and Garden Segment improves due to cost reductions

April 24, 2013, Akron, Ohio - Myers Industries, Inc. (NYSE: MYE) today announced results for the first quarter ended March 31, 2013.

Net sales in the first quarter of 2013 rose 8.1% to $215.0 million from $198.8 million in the first quarter of 2012 primarily due to last year’s acquisitions of Novel and Jamco. Sales increases in the Material Handling and Lawn & Garden Segments more than offset relatively flat sales quarter-over-quarter in the Distribution and Engineered Products Segments. The overall gross margin was 27.1% in the first quarter of 2013 compared to 29.2% in the first quarter of 2012. A change in customer and product mix quarter-over-quarter contributed to the decline in gross margin.

Net income in the first quarter of 2013 was $7.9 million, or $0.23 per diluted share, compared to net income of $10.0 million, or $0.29 per diluted share, in the first quarter of 2012. Income in the first quarter of 2013 included approximately $0.7 million of special pre-tax adjusted charges while income in the first quarter of 2012 included approximately $0.6 million of special pre-tax adjusted charges. Details regarding the special pre-tax adjusted charges for both quarters are provided on the Reconciliation of Non-GAAP Financial Measures included in this release. Earnings per diluted share as adjusted for the special charges were $0.24 in the first quarter of 2013 compared to $0.30 in the first quarter of 2012.

President and Chief Executive Officer John C. Orr said, “In our year-end 2012 earnings release we said the first quarter of 2013 would be challenging due to investments in information technology and other projects. We continue to anticipate that our full year 2013 results should improve over 2012. This improvement is driven by our efforts in cost reductions, new product innovation and increased sales. In addition, I am very pleased with our Lawn & Garden Segment’s adjusted profits which improved 125% this quarter and reflect our continued cost reduction efforts.”

Segment Results

The results below are as adjusted and exclude special pre-tax charges as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release.

Net sales in the Material Handling Segment for the first quarter of 2013 were $80.0 million compared to $65.2 million for the first quarter of 2012. Sales resulting from the Novel and Jamco acquisitions produced most of the increase year-over-year. Material Handling’s adjusted income before taxes was $9.9 million for the first quarter of 2013 compared to $13.2 million for the first quarter of 2012. A change in both customer and product mix compared to last year was the primary driver behind the lower adjusted income before taxes year-over-year.


Net sales in the Lawn & Garden Segment for the first quarter of 2013 were $60.4 million compared to $59.2 million for the first quarter of 2012. Lawn & Garden’s adjusted income before taxes for the first quarter of 2013 was $2.7 million compared to $1.2 million for the first quarter of 2012. The higher sales combined with productivity improvements and material substitution cost savings led to the increase in income before taxes quarter-over-quarter.

Net sales in the Distribution Segment were $42.6 million for the first quarter of 2013 compared to $42.7 million for the first quarter of 2012. Distribution’s adjusted income before taxes was $2.9 million for the first quarter of 2013 compared to $3.9 million for the first quarter of 2012. A change in product mix of equipment versus supplies combined with planned information technology expenditures led to the decrease in adjusted income before taxes.

Net sales in the Engineered Products Segment were $37.0 million for the first quarter of 2013 compared to $37.2 million for the first quarter of 2012. Strong sales in the marine market were more than offset by more normal demand in the transplant auto market as compared to the first quarter of last year when the market was recovering from the tsunami in Japan. Engineered Products’ adjusted income before taxes was $5.1 million for the first quarter of 2013 compared to $4.7 million for the first quarter of 2012. The increase was driven by cost reductions.

Other Financial Items

For the three months ended March 31, 2013, cash flow used in operations was $6.5 million compared to $6.4 million in the first quarter of 2012. As is customary in the first quarter, the Company’s line of credit was used to fund the seasonal build of working capital.

During the first quarter of 2013, the Company repurchased 136,126 shares of stock under its current stock repurchase plan at an average price of $14.36 resulting in a cash outflow of $2.0 million.

Capital expenditures totaled $4.5 million for the three months ended March 31, 2013 and we continue to forecast total capital expenditures to be approximately $30 million to $35 million in 2013.

Second Quarter and Full-Year Outlook

“Starting in the second quarter, we expect improved year-over-year results,” said John Orr. “We continue to make progress in our strategic initiatives around cost reductions, material substitutions and new product development. We have seen improvements in our Lawn & Garden Segment’s profitability as a result of our cost reductions and material substitutions, and these are in addition to the previously announced internal project that we expect to generate additional annual savings of $5 million in 2014.”

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, April 24, 2013 at 10:00 a.m. ET. The call is anticipated to last approximately one hour and may be accessed at (877) 407-8033. Callers are asked to sign on at least five minutes in advance. The call will be available as a webcast through the Company’s web site, www.myersindustries.com. Click on the Investor Relations tab to access the webcast. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. To listen to a telephone replay, callers should dial: (US) 877-660-6853 or (Int’l) 201-612-7415. The replay passcode is Conference ID # 412409.

About Myers Industries

Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest wholesale distributor of tools, equipment and supplies for the tire, wheel and undervehicle service industry in the U.S. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release may include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “goal”, “view”, and similar expressions identify forward-looking statements. These statements are based on management’s current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company’s control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; raw material availability, increases in raw material costs, or other production costs; future economic and financial conditions in the United States and


around the world; ability to weather the current economic downturn; 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; the Company’s ability to execute the components of its Strategic Business Evolution process; and other risks as detailed in the Company’s 10-K and other reports filed with the Securities and Exchange Commission. Such reports are available on the Securities and Exchange Commission’s public reference facilities and its web site at http://www.sec.gov, and on the Company’s Investor Relations section of its web site at http://www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.


MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE QUARTER ENDED MARCH 31, 2013 AND 2012

(Dollars in thousands, except share data)

 

     For the Quarter Ended  
     March 31, 2013      March 31, 2012  

Net sales

   $ 214,980       $ 198,789   

Cost of sales

     156,662         140,791   
  

 

 

    

 

 

 

Gross profit

     58,318         57,998   

Selling, general and administrative expenses

     45,074         40,881   
  

 

 

    

 

 

 

Operating income

     13,244         17,117   

Interest expense, net

     1,092         1,081   
  

 

 

    

 

 

 

Income before income taxes

     12,152         16,036   

Income tax expense

     4,269         6,051   
  

 

 

    

 

 

 

Net income

   $ 7,883       $ 9,985   

Income per common share:

     

Basic

   $ 0.24       $ 0.30   

Diluted

   $ 0.23       $ 0.29   

Weighted Average Common Shares Outstanding

     

Basic

     33,504,222         33,439,012   

Diluted

     33,859,416         33,912,165   


MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

     First Quarter Ended
March 31,
 
     2013     2012     % Change  

Net Sales

      

Material Handling

   $ 79,989      $ 65,221        22.6

Lawn and Garden

     60,363        59,184        2.0

Distribution

     42,649        42,738        (0.2 )% 

Engineered Products

     36,956        37,227        (0.7 )% 

Inter-company Sales

     (4,977     (5,581     —     
  

 

 

   

 

 

   

 

 

 

Total

   $ 214,980      $ 198,789        8.1
  

 

 

   

 

 

   

 

 

 

Income (Loss)

      

Before Income Taxes

      

Material Handling

   $ 9,705      $ 13,150        (26.2 )% 

Lawn and Garden

     2,281        1,218        87.3

Distribution

     2,839        3,511        (19.1 )% 

Engineered Products

     5,077        4,591        10.6

Corporate

     (7,750     (6,434     —     
  

 

 

   

 

 

   

 

 

 

Total

   $ 12,152      $ 16,036        (24.2 )% 
  

 

 

   

 

 

   

 

 

 


MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)

(Dollars in millions, except per share data)

 

     Quarter Ended
March 31
 
     2013     2012  

Material Handling

    

Income before taxes as reported

   $ 9.7      $ 13.2   

Restructuring expenses

     0.2        0.0   
  

 

 

   

 

 

 

Income before taxes as adjusted

     9.9        13.2   

Lawn & Garden

    

Income before taxes as reported

     2.3        1.2   

Restructuring expenses

     0.4        0.0   
  

 

 

   

 

 

 

Income before taxes as adjusted

     2.7        1.2   

Distribution

    

Income before taxes as reported

     2.8        3.5   

Restructuring expenses

     0.1        0.4   
  

 

 

   

 

 

 

Income before taxes as adjusted

     2.9        3.9   

Engineered Products

    

Income before taxes as reported

     5.1        4.6   

Restructuring expenses

     0.0        0.1   
  

 

 

   

 

 

 

Income before taxes as adjusted

     5.1        4.7   

Corporate and interest expense

    

Income (loss) before taxes as reported

     (7.7     (6.5

Severance and other

     0.0        0.1   
  

 

 

   

 

 

 

Income (loss) before taxes as adjusted

     (7.7     (6.4

Consolidated

    

Income before taxes as reported

     12.2        16.0   

Restructuring expenses and other adjustments

     0.7        0.6   
  

 

 

   

 

 

 

Income before taxes as adjusted

     12.9        16.6   

Income taxes

     4.8        6.5   
  

 

 

   

 

 

 

Net Income as adjusted

   $ 8.1      $ 10.1   
  

 

 

   

 

 

 

Adjusted earnings per diluted share

   $ 0.24      $ 0.30   

Note: Numbers in the Corporate and interest expense section above may be rounded for presentation purposes.

Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items mentioned above in the text of this release and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from the unaudited Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company’s operating profitability. Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for net income (loss), income (loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company’s method for calculating income (loss) excluding these items may not be comparable to methods used by other companies.


MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

     March 31,
2013
     December 31,
2012
 

Assets

     

Current Assets

     

Cash

   $ 4,053       $ 3,948   

Accounts receivable, net

     124,076         115,508   

Inventories

     109,413         107,502   

Other

     11,472         12,638   
  

 

 

    

 

 

 

Total Current Assets

     249,014         239,596   

Other Assets

     93,550         94,777   

Property, Plant, & Equipment, Net

     146,039         150,483   
  

 

 

    

 

 

 

Total Assets

   $ 488,603       $ 484,856   
  

 

 

    

 

 

 

Liabilities & Shareholders’ Equity

     

Current Liabilities

     

Accounts payable

   $ 63,773       $ 72,417   

Accrued expenses

     39,600         42,060   
  

 

 

    

 

 

 

Total Current Liabilities

     103,373         114,477   

Long-term debt

     103,578         92,814   

Other liabilities

     17,089         17,865   

Deferred income taxes

     30,470         29,678   

Total Shareholders’ Equity

     234,093         230,022   
  

 

 

    

 

 

 

Total Liabilities & Shareholders’ Equity

   $ 488,603       $ 484,856   
  

 

 

    

 

 

 


MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012

(Dollars in thousands)

 

     March 31, 2013     March 31, 2012  

Cash Flows From Operating Activities

    

Net income

   $ 7,883      $ 9,985   

Items not affecting use of cash

    

Depreciation

     8,150        7,545   

Amortization of intangible assets

     1,001        757   

Non-cash stock compensation

     438        667   

Provision for (Recovery of) loss on accounts receivable

     822        (627

Deferred taxes

     2,227        (32

Other long-term liabilities

     (834     586   

Gain on sale of property, plant and equipment

     —          (224

Other

     —          50   

Cash flow used for working capital, net of acquisitions:

    

Accounts receivable

     (9,833     (7,679

Inventories

     (2,224     (7,089

Prepaid expenses

     (237     (1,726

Accounts payable and accrued expenses

     (13,896     (8,623
  

 

 

   

 

 

 

Net cash used for operating activities

     (6,503     (6,410
  

 

 

   

 

 

 

Cash Flows From Investing Activities

    

Capital expenditures

     (4,508     (3,138

Proceeds from sale of property, plant and equipment

     —          1,332   

Other

     96        (3
  

 

 

   

 

 

 

Net cash used for investing activities

     (4,412     (1,809
  

 

 

   

 

 

 

Cash Flows From Financing Activities

    

Repayment of long-term debt

     —          (305

Net borrowing on credit facility

     10,763        6,262   

Cash dividends paid

     —          (2,316

Proceeds from issuance of common stock

     1,706        397   

Tax benefit from options

     37        —     

Repurchase of common stock

     (1,955     —     
  

 

 

   

 

 

 

Net cash provided by financing activities

     10,551        4,038   
  

 

 

   

 

 

 

Foreign Exchange Rate Effect on Cash

     469        676   
  

 

 

   

 

 

 

Net increase (decrease) in cash

     105        (3,505

Cash at January 1

     3,948        6,801   
  

 

 

   

 

 

 

Cash at March 31

   $ 4,053      $ 3,296