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Press release from Business Wire

Myers Industries Reports 2012 Second Quarter Results

<p class='bwalignc'> <i>Diluted EPS $0.17 compared with $0.13 in 2Q 2011</i> </p> <p class='bwalignc'> <i>Adjusted EPS $0.17 compared with $0.14 in 2Q 2011</i> </p> <p class='bwalignc'> <i>Gross margin increased to 26.2% versus 25.1% for 2Q 2011</i> </p> <p class='bwalignc'> <i>Recently announced Novel acquisition to become part of Material Handling Segment</i> </p>

Thursday, July 19, 2012

Myers Industries Reports 2012 Second Quarter Results07:30 EDT Thursday, July 19, 2012 AKRON, Ohio (Business Wire) -- Myers Industries, Inc. (NYSE: MYE) today announced results for the second quarter ended June 30, 2012. Net sales for the second quarter were $181.1 million compared to $177.3 million in the second quarter of 2011. The net increase in sales of 2.2% was the result of strong sales performance in the Engineered Products Segment combined with a moderate sales increase in the Lawn & Garden Segment which more than offset lower sales in the Material Handling Segment and a sales decline in the Distribution Segment. Gross margin expanded to 26.2% in the second quarter of 2012 compared to 25.1% in the second quarter of 2011. The expansion was due mostly to reduced costs and productivity improvements resulting from continued execution of the Company's operations excellence initiatives. Net income in the second quarter of 2012 was $5.7 million or $0.17 per diluted share compared to net income in the second quarter of 2011 of $4.7 million or $0.13 per diluted share. Net income in the second quarter of 2012 included approximately $0.3 million of special net pre-tax costs while net income in the second quarter of 2011 included approximately $0.6 million of special pre-tax costs. Details regarding the special pre-tax costs for both quarters are provided on the Reconciliation of Non-GAAP Financial Measures included in this release. Earnings per diluted share as adjusted for these special items were $0.17 in the second quarter of 2012 compared to $0.14 in the second quarter of 2011. President and Chief Executive Officer John C. Orr said, “We met our expected operating results for the quarter despite some challenging economic conditions. We expect that our full-year results will show continued solid performance. At the beginning of July, we announced that we acquired Plasticos Novel Do Nordeste S.A. ® (Novel), one of Brazil's leading designers and manufacturers of plastic totes and crates used for closed-loop shipping and storage in the region's fast growing food and agriculture industries. The acquisition fits our Material Handing Segment's strategy of geographic expansion in North and South America, growing our more profitable end markets and leveraging our strong existing position.” Segment Results The results below are as adjusted and exclude special pre-tax costs as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release. The Material Handling Segment's net sales in the second quarter of 2012 were $60.3 million compared to $67.0 million in the second quarter of 2011. An anticipated delay in customer orders resulting from a shift in demand from the second quarter to the second half of this year caused the sales decrease during the quarter. Material Handling's income before taxes was $9.2 million in the second quarter of 2012 compared to $8.4 million in the second quarter of 2011. The segment benefited from our focus on our operations excellence initiatives and lower manufacturing costs which led to the 9.8% increase in income before taxes, despite lower year-over-year sales. The Lawn & Garden Segment's net sales in the second quarter of 2012 increased to $42.5 million as compared to $41.8 million in the second quarter of 2011. Sales volume was lower than anticipated in the second quarter as customers chose to continue to deplete their inventories and limit production during the quarter. Lawn & Garden's loss before taxes in the second quarter of 2012 was $1.5 million compared to a loss of $1.6 million in the second quarter of 2011. Higher freight costs during the quarter partially offset the income generated by the increased sales volume. The Distribution Segment's net saleswere $44.2 million in the second quarter of 2012 compared to $46.1 million in the second quarter of 2011. The sales decline was a result of slower customer demand during the quarter. Distribution's income before taxes was $4.1 million in the second quarter of 2012 compared to $4.5 million in the second quarter of 2011. The decrease in income before taxes is mostly attributable to the lower sales volume and higher freight costs during the quarter. The Engineered Products Segment's net sales were $38.6 million in the second quarter of 2012 compared to $27.9 million in the second quarter of 2011. Continued strong sales in the transplant auto market mostly due to a year-over-year rebound combined with a sales increase in the marine, recreational vehicle, and custom markets generated the 38.5% increase in sales year-over-year. Engineered Product's income before taxes was $4.7 million in the second quarter of 2012 compared to $2.7 million in the second quarter of 2011. The increased income before taxes during the quarter resulted from the higher sales volume and the ongoing execution of our operations excellence initiatives. Cash Flow Cash flow provided by operations for the six months ended June 30, 2012 was $7.9 million compared to $8.8 million for the six months ended June 30, 2011. Other Financial Items Capital expenditures totaled $8.4 million for the six months ended June 30, 2012 and are forecasted to be approximately $30 million in 2012. At June 30, 2012, debt, net of cash, was $66.5 million compared to $67.2 million at December 31, 2011. On July 9, 2012, the Company announced that it had completed the acquisition of Brazil's Plasticos Novel. The purchase price was $27.5 million, subject to certain adjustments. Novel's annual net sales in 2012 are projected to be $38 million. Novel complements the Company's existing material handling business in Brazil and furthers our strategic objectives. At the end of the quarter, the Company positioned cash for the closing of the Novel acquisition by drawing on its line of credit. The transaction resulted in an increase to both cash and long-term debt as of June 30, 2012. Second Half and Full Year 2012 Outlook The Company expects some mixed trends in the second half of 2012. Results should benefit from the shifting of orders from the second quarter to late in the second half of 2012 as well as from the Company's operations excellence program. However, the soft economy may offset a portion of these benefits. The Company expects full-year results to reflect continued solid performance. Conference Call Details The Company will host an earnings conference call and webcast for investors and analysts on Thursday, July 19, 2012 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 passcodes are: Account # 286; Conference ID # 397255. 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. The Company reported net sales from continuing operations of $755.7 million in 2011. 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 THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011(Dollars in thousands, except per share data)   For The Three Months EndedFor The Six Months Ended:June 30, 2012June 30, 2011June 30, 2012June 30, 2011   Net sales $ 181,101 $ 177,266 $ 379,890 $ 372,773 Cost of sales   133,737   132,772   274,528   274,188 Gross Profit 47,364 44,494 105,362 98,585 Selling, general and administrative expenses   37,372   35,821   78,253   77,543 Operating Income 9,992 8,673 27,109 21,042 Interest expense, net   1,054   1,153   2,135   2,391 Income before income taxes 8,938 7,520 24,974 18,651 Income tax expense   3,280   2,862   9,331   7,274 Net Income $ 5,658 $ 4,658 $ 15,643 $ 11,377   Income Per Share Basic $ 0.17 $ 0.13 $ 0.47 $ 0.32 Diluted $ 0.17 $ 0.13 $ 0.46 $ 0.32 Weighted Average Common Shares Outstanding Basic 33,595,637 35,249,616 33,525,444 35,279,504 Diluted 34,272,693 35,249,616 34,121,486 35,436,112               MYERS INDUSTRIES, INC.SALES AND EARNINGS BY SEGMENT (UNAUDITED)(Dollars in thousands)   Three Months Ended June 30,Six Months Ended June 30, 2012   2011   % Change 2012   2011   % Change Net Sales Material Handling $ 60,260 $ 67,008 -10.1 % $ 125,481 $ 132,738 -5.5 % Lawn & Garden 42,482 41,819 1.6 % 101,666 108,973 -6.7 % Distribution 44,188 46,091 -4.1 % 86,926 87,725 -0.9 % Engineered Products 38,642 27,897 38.5 % 75,869 55,822 35.9 % Intercompany Sales   (4,471 )     (5,549 )   ---     (10,052 )     (12,485 )   ---   Total$181,101     $177,266     2.2%$379,890     $372,773     1.9%   Income (Loss) Before Income Taxes Material Handling $ 9,223 $ 8,396 9.8 % $ 22,373 $ 18,657 19.9 % Lawn & Garden (1,942 ) (1,619 ) -20.0 % (724 ) 2,259 --- Distribution 4,298 4,014 7.1 % 7,809 7,087 10.2 % Engineered Products 4,660 2,591 79.9 % 9,251 5,380 72.0 % Corporate   (7,301 )     (5,862 )   ---     (13,735 )     (14,732 )   ---   Total$8,938     $7,520     18.9%$24,974     $18,651     33.9%   MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURESINCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)(Dollars in millions)         Quarter Ended June 30,Six Months Ended June 30,2012201120122011Material Handling Income before taxes as reported $ 9.2 $ 8.4 $ 22.4 $ 18.7 Income before taxes as adjusted 9.2 8.4 22.4 18.7   Lawn & Garden Income before taxes as reported (1.9 ) (1.6 ) (0.7 ) 2.3 Restructuring expenses   0.4     0.0     0.4     0.0   Income before taxes as adjusted (1.5 ) (1.6 ) (0.3 ) 2.3   Distribution Income before taxes as reported 4.3 4.0 7.8 7.1 Restructuring expenses 0.1 0.5 0.5 0.7 Gain on building sales   (0.3 )   0.0     (0.3 )   0.0   Income before taxes as adjusted 4.1 4.5 8.0 7.8   Engineered Products Income before taxes as reported 4.6 2.6 9.2 5.4 Restructuring expenses   0.1     0.1     0.2     0.2   Income before taxes as adjusted 4.7 2.7 9.4 5.6   Corporate and interest expense Income (loss) before taxes as reported (7.3 ) (5.9 ) (13.7 ) (14.8 ) Restructuring and other adjustments   0.0     0.0     0.0     0.3   Income (loss) before taxes as adjusted (7.3 ) (5.9 ) (13.7 ) (14.5 )   Consolidated Income before taxes as reported 8.9 7.5 25.0 18.7 Restructuring expenses and other adjustments   0.3     0.6     0.8     1.2   Income before taxes as adjusted 9.2 8.1 25.8 19.9 Income taxes at 38%   3.5     3.1     9.8     7.6   Net Income as adjusted $ 5.7   $ 5.0   $ 16.0   $ 12.3     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 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 operational 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)   JuneDecember30, 201231, 2011Assets Current Assets Cash $ 35,612 $ 6,801 Accounts Receivable, Net 96,386 105,830 Inventories 107,472 95,217 Other   14,270   10,604 Total Current Assets 253,740 218,452 Other Assets 68,056 69,371 Property, Plant, & Equipment   133,399   140,934 Total Assets $ 455,195 $ 428,757   Liabilities & Shareholders' Equity Current Liabilities Accounts Payable $ 58,888 $ 64,717 Accrued Expenses   33,144   45,939 Total Current Liabilities 92,032 110,656 Long-Term Debt, less current portion 101,820 73,725 Deferred Income Taxes 23,896 23,893 Other Liabilities 15,129 14,343 Shareholders' Equity   222,318   206,140 Total Liabilities & Shareholders' Equity $ 455,195 $ 428,757       MYERS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)FOR THE SIX MONTHS ENDED JUNE 30, 2012 and 2011(Dollars in thousands)   Six Months Ended June 30,20122011Cash Flows From Operating Activities Net income $ 15,643 $ 11,377   Items not affecting use of cash: Depreciation 14,737 16,064 Impairment charges and asset write-offs -0- 252 Amortization of other intangible assets 1,514 1,474 Non-cash stock compensation 1,556 1,607 (Recovery of) provision for loss on accounts receivable (1,178 ) 1,773 Deferred taxes (18 ) (70 ) Other long-term liabilities 785 804 Gain on sale of property, plant and equipment (558 ) -0- Other 50 50 Cash flow provided by (used for) working capital: Accounts receivable 10,384 (4,281 ) Inventories (12,285 ) (9,247 ) Prepaid expenses (3,743 ) 903 Accounts payable and accrued expenses   (18,967 )   (11,955 ) Net cash provided by operating activities   7,920     8,751     Cash Flows From Investing Activities Capital Expenditures (8,386 ) (5,765 ) Proceeds from sale of property, plant and equipment 1,805 -0- Other   (149 )   848   Net cash used for investing activities (6,730 ) (4,917 )   Cash Flows From Financing Activities Repayment of long term debt (305 ) (305 ) Net borrowing on credit facility 28,374 6,857 Cash dividends paid (4,967 ) (4,715 ) Proceeds from issuance of common stock 2,822 70 Repurchase of common stock   -0-     (3,722 ) Net cash provided by (used for) financing activities   25,924     (1,815 )   Foreign Exchange Rate Effect on Cash   1,697     212     Net increase in cash 28,811 2,231 Cash at January 1   6,801     4,705   Cash at June 30 $35,612   $6,936     Myers Industries, Inc.Donald A. Merril, 330-761-6303Senior Vice President & Chief Financial OfficerorMonica Vinay, 330-761-6212Director, Investor & Financial Relations