EX-99.1 2 d713566dex991.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, Vice President, Investor

Relations & Treasurer (330) 761-6212

Myers Industries Reports 2014 First Quarter Results

 

    Net Sales decreased 2.9% compared to last year’s first quarter, primarily due to poor weather and transportation issues

 

    Diluted adjusted EPS of $0.16 per share for the first quarter of 2014 compared to $0.24 per share for the first quarter of 2013

 

    Extremely poor weather conditions and transportation issues negatively impacted net sales by approximately $9.6 million and resulted in a decrease in net income of approximately $2.5 million or $0.07 per share

 

    Material Handling Segment’s net sales and adjusted income before taxes rose 13% and 10%, respectively

 

    Expect year-over-year adjusted EPS growth for second quarter and full year 2014

April 24, 2014, Akron, Ohio - Myers Industries, Inc. (NYSE: MYE) today announced results for the first quarter ended March 31, 2014.

Summary

 

     For the Quarter Ended  
   March 31, 2014     March 31, 2013  
     (Dollars in thousands, except per share data)  

Net sales

   $ 208,789      $ 214,980   

Gross profit

   $ 50,028      $ 58,318   

Gross profit margin

     24.0     27.1

Income before taxes

   $ 1,060      $ 12,152   

Net Income:

    

Income

   $ 680      $ 7,883   

Income per diluted share

   $ 0.02      $ 0.23   

Gross profit as adjusted*

   $ 55,889      $ 58,483   

Gross profit margin as adjusted*

     26.8     27.2

Income before taxes as adjusted*

     8,502      $ 12,860   

Net income as adjusted*:

    

Income

   $ 5,441      $ 8,102   

Income per diluted share

   $ 0.16      $ 0.24   

 

* Details regarding the pre-tax adjusted charges are provided on the Reconciliation of Non-GAAP Financial Measures included in this release.

 

    Net sales in the first quarter of 2014 decreased 2.9% to $208.8 million compared to $215.0 million in the first quarter of 2013.


    The gross profit margin as adjusted was 26.8% in the first quarter of 2014 compared to 27.2% in the first quarter of 2013.

 

    Adjusted net income per diluted share was $0.16 in the first quarter of 2014 compared to $0.24 in the first quarter of 2013.

President and Chief Executive Officer John C. Orr said, “Extremely poor weather conditions and transportation issues during most of the first quarter negatively impacted sales by approximately $9.6 million and net income by approximately $2.5 million or $0.07 per share. We lost multiple selling and production days, particularly in January and February, with our Lawn and Garden Segment being the most impacted. Despite this difficult start to the year, the Material Handling Segment performed well and we were encouraged by our performance in March. We continue to anticipate that our full year 2014 results will show another year of improved earnings.”

“In February, we announced that the Board of Directors increased the Company’s first quarter dividend by 44% and approved a $40 million share repurchase which is expected to be completed in 2014. The dividend increase and share repurchase show our commitment to returning capital to shareholders while we invest in new product development and cost improvement.”

Segment Results

The results below are as adjusted and exclude restructuring and other unusual 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 2014 increased 13% to $90.6 million compared to $80.0 million for the first quarter of 2013 as a result of strong sales to the food processing and agricultural end markets. Material Handling’s adjusted income before taxes was $10.9 million for the first quarter of 2014 compared to $9.9 million for the first quarter of 2013, an increase of 10%. Improved income from the higher sales volume was partially offset by a less favorable sales mix year-over-year.

Net sales in the Lawn and Garden Segment for the first quarter of 2014 were $49.8 million compared to $60.4 million for the first quarter of 2013. Lawn and Garden’s adjusted loss before taxes for the first quarter of 2014 was $0.1 million compared to adjusted income before taxes of $2.7 million for the first quarter of 2013. Extremely poor weather conditions and transportation issues severely impacted the segment’s sales and operations. Additionally, startup inefficiencies in phase two of the segment’s restructuring project more than offset $1.8 million of savings that were generated from phases one and two of the project during the first quarter. The Company continues to estimate that the total savings from the restructuring project will be $13.0 million on an annualized basis.

Net sales in the Distribution Segment were $39.7 million for the first quarter of 2014 compared to $42.6 million for the first quarter of 2013. Sales were lower year-over-year primarily as a result of poor weather and the closure of the segment’s Canadian branches which took place in the first quarter of 2014. Distribution’s adjusted income before taxes was $2.9 million for the first quarter of 2014 and for the first quarter of 2013. A more favorable product mix offset the decrease in income from the lower sales volume during the quarter.

Net sales in the Engineered Products Segment were $32.7 million for the first quarter of 2014 compared to $37.0 million for the first quarter of 2013. Lower sales volumes in both custom and transplant auto sales compared to last year were partially offset by strong RV and marine sales. Engineered Products’ adjusted income before taxes was $3.8 million for the first quarter of 2014 compared to $5.1 million for the first quarter of 2013. The decline in sales was the primary reason for the lower income before taxes year-over-year.

Other Financial Items

Capital expenditures totaled $4.7 million for the three months ended March 31, 2014 and are forecasted to be approximately $35 to $40 million for the full year of 2014.

The Company purchased $5.1 million of its common stock in the quarter ended March 31, 2014.

2014 Outlook

Driven by productivity improvements, cost savings and benefits from the Lawn and Garden Segment’s restructuring initiatives, the Company anticipates that full year adjusted earnings (excluding restructuring and other unusual pre-tax charges) will increase year-over-year.


Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, April 24, 2014 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 #13580122.

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 under vehicle 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; harsh weather conditions; future economic and financial conditions in the United States and around the world; 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, 2014 AND 2013

(Dollars in thousands, except share data)

 

     For the Quarter Ended  
     March 31, 2014      March 31, 2013  

Net sales

   $ 208,789       $ 214,980   

Cost of sales

     158,761         156,662   
  

 

 

    

 

 

 

Gross profit

     50,028         58,318   

Selling, general and administrative expenses

     47,389         45,074   
  

 

 

    

 

 

 

Operating income

     2,639         13,244   

Interest expense, net

     1,579         1,092   
  

 

 

    

 

 

 

Income before income taxes

     1,060         12,152   

Income tax expense

     380         4,269   
  

 

 

    

 

 

 

Net income

   $ 680       $ 7,883   
  

 

 

    

 

 

 

Income per common share:

     

Basic

   $ 0.02       $ 0.24   

Diluted

   $ 0.02       $ 0.23   

Weighted Average Common Shares Outstanding

     

Basic

     33,518,543         33,504,222   

Diluted

     34,018,475         33,859,416   


MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

CONDENSED CONSOLIDATED GROSS PROFIT (UNAUDITED)

(Dollars in thousands)

 

     For the Quarter Ended  
     March 31, 2014      March 31, 2013  

Gross profit as reported

   $ 50,028       $ 58,318   

Restructuring and other adjustments in cost of sales

     

Material Handling Segment

     —           162   

Lawn and Garden Segment

     5,861         —     

Engineered Products Segment

     —           3   
  

 

 

    

 

 

 

Gross profit as adjusted

   $ 55,889       $ 58,483   
  

 

 

    

 

 

 

Note on Reconciliation of Income and Earnings Data: Gross profit 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 Condensed Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that gross profit 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 gross profit excluding these items as well as other financial measures in connection with its decision-making activities. Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP. The Company’s method for calculating gross profit excluding these items may not be comparable to methods used by other companies.


MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

     For the Quarter Ended  
     March 31, 2014     March 31, 2013     % Change  

Net Sales

      

Material Handling

   $ 90,613      $ 79,989        13.3

Lawn and Garden

     49,825        60,363        (17.5 )% 

Distribution

     39,735        42,649        (6.8 )% 

Engineered Products

     32,697        36,956        (11.5 )% 

Inter-company Sales

     (4,081     (4,977  
  

 

 

   

 

 

   

 

 

 

Total

   $ 208,789      $ 214,980        (2.9 )% 
  

 

 

   

 

 

   

 

 

 

Income (Loss)

      

Before Income Taxes

      

Material Handling

   $ 10,940      $ 9,705        12.7

Lawn and Garden

     (7,043     2,281        —     

Distribution

     2,371        2,839        (16.5 )% 

Engineered Products

     3,789        5,077        (25.4 )% 

Corporate

     (8,997     (7,750  
  

 

 

   

 

 

   

 

 

 

Total

   $     1,060      $ 12,152        (91.3 )% 
  

 

 

   

 

 

   

 

 

 


MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)

(Dollars in millions, except per share data)

 

     For the Quarter Ended  
     March 31, 2014     March 31, 2013  

Material Handling

    

Income before taxes as reported

   $ 10.9      $ 9.7   

Restructuring expenses

     —          0.2   
  

 

 

   

 

 

 

Income before taxes as adjusted

     10.9        9.9   

Lawn and Garden

    

(Loss) income before taxes as reported

     (7.0     2.3   

Restructuring expenses and other adjustments

     6.9        0.4   
  

 

 

   

 

 

 

(Loss) income before taxes as adjusted

     (0.1     2.7   

Distribution

    

Income before taxes as reported

     2.4        2.8   

Restructuring expenses

     0.5        0.1   
  

 

 

   

 

 

 

Income before taxes as adjusted

     2.9        2.9   

Engineered Products

    

Income before taxes as reported

     3.8        5.1   

Restructuring expenses

     —          —     
  

 

 

   

 

 

 

Income before taxes as adjusted

     3.8        5.1   

Corporate and interest expense

    

Loss before taxes as reported

     (9.0     (7.7

Severance and other adjustments

     —          —     
  

 

 

   

 

 

 

Loss before taxes as adjusted

     (9.0     (7.7

Consolidated

    

Income before taxes as reported

     1.1        12.2   

Restructuring expenses and other adjustments

     7.4        0.7   
  

 

 

   

 

 

 

Income before taxes as adjusted

     8.5        12.9   

Income taxes

     3.1        4.8   
  

 

 

   

 

 

 

Net income as adjusted

   $ 5.4      $ 8.1   
  

 

 

   

 

 

 

Adjusted earnings per diluted share

   $ 0.16      $ 0.24   

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 Condensed 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,
2014
     December 31,
2013
 

Assets

     

Current Assets

     

Cash

   $ 5,738       $ 6,539   

Accounts receivable, net

     130,833         112,459   

Inventories

     118,848         106,524   

Other

     10,374         9,388   
  

 

 

    

 

 

 

Total Current Assets

     265,793         234,910   

Other Assets

     84,567         85,069   

Property, Plant, & Equipment, Net

     146,522         149,478   
  

 

 

    

 

 

 

Total Assets

   $     496,882       $     469,457   
  

 

 

    

 

 

 

Liabilities & Shareholders’ Equity

     

Current Liabilities

     

Accounts payable

   $ 70,705       $ 98,263   

Accrued expenses

     39,928         52,320   
  

 

 

    

 

 

 

Total Current Liabilities

     110,633         150,583   

Long-term debt, net

     116,691         44,347   

Other liabilities

     16,638         14,687   

Deferred income taxes

     24,194         24,333   

Total Shareholders’ Equity

     228,726         235,507   
  

 

 

    

 

 

 

Total Liabilities & Shareholders’ Equity

   $  496,882       $ 469,457   
  

 

 

    

 

 

 


MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(Dollars in thousands)

 

     March 31,
2014
    March 31,
2013
 

Cash Flows From Operating Activities

    

Net income

   $ 680      $ 7,883   

Items not affecting use of cash

    

Depreciation

     8,424        8,150   

Amortization

     909        1,001   

Non-cash stock compensation

     788        438   

Provision for loss on accounts receivable

     361        822   

Deferred taxes

     (116     2,227   

Other long-term liabilities

     1,081        885   

Gain from asset disposition

     (46     —     

Tax benefit from options

     (650     (37

Payments on performance based compensation

     (1,293     (1,719

Cash flows used for working capital:

    

Accounts receivable

     (18,529     (9,833

Inventories

     (12,134     (2,224

Prepaid expenses

     (1,577     (237

Accounts payable and accrued expenses

     (38,567     (13,859
  

 

 

   

 

 

 

Net cash used for operating activities

     (60,669     (6,503
  

 

 

   

 

 

 

Cash Flows from Investing Activities

    

Capital expenditures

     (4,653     (4,508

Proceeds from sale of property, plant and equipment

     48        —     

Other

     —          96   
  

 

 

   

 

 

 

Net cash used for investing activities

     (4,605     (4,412
  

 

 

   

 

 

 

Cash Flows from Financing Activities

    

Proceeds from long-term debt

     89,000        —     

Net (repayment of) borrowing on credit facility

     (16,700     10,763   

Cash dividends paid

     (3,118     —     

Proceeds from issuance of common stock

     1,781        1,706   

Tax benefit from options

     650        37   

Repurchase of common stock

     (5,062     (1,955

Shares withheld for employee taxes on equity awards

     (1,083     —     

Deferred financing costs

     (196     —     
  

 

 

   

 

 

 

Net cash provided by financing activities

     65,272        10,551   
  

 

 

   

 

 

 

Foreign Exchange Rate Effect on Cash

     (799     469   
  

 

 

   

 

 

 

Net (decrease) increase in cash

     (801     105   

Cash at January 1

     6,539        3,948   
  

 

 

   

 

 

 

Cash at March 31

   $ 5,738      $ 4,053