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8-K - FORM 8-K - MYERS INDUSTRIES INC | l41920e8vk.htm |
Exhibit 99
News Release NYSE: MYE |
Contact(s):
Donald A. Merril, Senior Vice President &
Chief Financial Officer (330) 253-5592
Donald A. Merril, Senior Vice President &
Chief Financial Officer (330) 253-5592
FOR IMMEDIATE RELEASE
Max Barton, Director, Corporate Communications
& Investor Relations (330) 253-5592
& Investor Relations (330) 253-5592
Myers Industries Reports 2010 Fourth Quarter & Full Year Results
February 17, 2011, Akron, Ohio Myers Industries, Inc. (NYSE: MYE) today reports results for
the fourth quarter and year ended December 31, 2010.
2010 Fourth Quarter Highlights from Continuing Operations:
| Net sales were $188.2 million compared to $188.3 million in the fourth quarter of 2009. | ||
| The Company reported a loss from continuing operations of $50.5 million or $1.43 per share compared to income from continuing operations of $2.0 million or $0.06 per share in the fourth quarter of 2009. Results for 2010 include a non-cash goodwill impairment charge of $72.0 million in the Lawn and Garden Segment. In addition, results for both 2010 and 2009 include special gains and pre-tax expenses. See the Reconciliation of Non-GAAP Financial Measures at the end of this release. | ||
| Excluding the impairment charge, special gains and expenses noted above, adjusted income from continuing operations was $4.2 million or $0.12 per share compared to $3.1 million or $0.09 per share in 2009. | ||
| Gross profit was 23.5% in the fourth quarter compared to 20.0% in the fourth quarter of 2009. Higher gross margins were achieved through pricing, favorable product mix and operations excellence initiatives. |
2010 Full Year Highlights from Continuing Operations:
| Net sales were $737.6 million for the year, an increase of 5% compared to $701.8 million in 2009, primarily due to continued end market recovery. | ||
| Loss from continuing operations was $42.8 million or $1.21 per share compared to income from continuing operations of $7.0 million or $0.20 per share in 2009. In addition to the goodwill impairment charge discussed above, results for both 2010 and 2009 include special gains and pre-tax expenses. See the Reconciliation of Non-GAAP Financial Measures at the end of this release. | ||
| Excluding the impairment charge, special gains and expenses, adjusted income from continuing operations was $13.0 million or $0.37 per share for the year compared to $19.5 million or $0.55 per share in 2009. |
Commenting on the Companys results, President and Chief Executive Officer John C. Orr said, I am
pleased with the progress we made toward improved operating results during the fourth quarter. We
remain focused on pricing and operations excellence initiatives to strengthen our performance,
especially in our Lawn and Garden Segment where we are starting to realize benefits from these actions.
More
1293 South Main Street Akron, Ohio 44301 (330) 253-5592 Fax: (330) 761-6156 | NYSE/MYE |
Myers Industries Reports 2010 Fourth Quarter & Full Year Results 02/17/11 | page 2 of 6 |
Results from Continuing Operations As Reported, Fourth Quarter Ended December 31, 2010:
$ millions, except per share data
$ millions, except per share data
As Reported | ||||||||||||
Fourth Quarter Ended Dec. 31 | ||||||||||||
Consolidated Results: | 2010 | 2009 | % Change | |||||||||
Net Sales |
$ | 188.2 | $ | 188.3 | 0.0 | % | ||||||
(Loss) Income Before Taxes |
$ | (62.4 | ) | $ | 2.6 | | ||||||
(Loss) Income, Net of Taxes |
$ | (50.5 | ) | $ | 2.0 | | ||||||
(Loss) Income Per Share |
$ | (1.43 | ) | $ | 0.06 | |
As Reported | ||||||||||||
Fourth Quarter Ended Dec. 31 | ||||||||||||
Segment Net Sales | 2010 | 2009 | % Change | |||||||||
Lawn & Garden |
$ | 59.5 | $ | 60.3 | -1 | % | ||||||
Material Handling |
$ | 65.5 | $ | 67.7 | -3 | % | ||||||
Distribution |
$ | 46.3 | $ | 43.2 | 7 | % | ||||||
Engineered Products |
$ | 22.6 | $ | 21.5 | 5 | % |
As Reported | ||||||||||||
Segment Income | Fourth Quarter Ended Dec. 31 | |||||||||||
(Loss) Before Taxes | 2010 | 2009 | % Change | |||||||||
Lawn & Garden |
$ | (71.4 | ) | $ | 5.8 | | ||||||
Material Handling |
$ | 6.6 | $ | (0.3 | ) | | ||||||
Distribution |
$ | 4.1 | $ | 4.3 | -5 | % | ||||||
Engineered Products |
$ | 0.9 | $ | (0.4 | ) | |
Fourth Quarter Sales by Segment Lawn and Garden Segment sales were down slightly compared
to last years fourth quarter. Material Handling Segment sales were also down slightly despite
increased sales of legacy product lines, such as specialty reusable plastic bulk containers for
agriculture, which helped offset significantly lower custom pallet sales compared to the fourth
quarter of 2009. In the Distribution Segment, sales of tire service products, particularly capital
equipment, outpaced last year. Sales in the Engineered Products Segment increased on continued
strength across most end
markets served.
Fourth Quarter Income Before Taxes by Segment, as Adjusted In the Lawn and Garden Segment,
income before taxes was $0.8 million as profit initiatives, including pricing implemented late in
the year, began to reflect improvements. In the Material Handling Segment, strong improvement to
$6.9 million, compared to $2.2 million in 2009, was achieved primarily through favorable mix. In
the Distribution Segment, income before taxes was unchanged compared to the fourth quarter of 2009.
In the Engineered Products Segment, demand and mix remained the key factors for steady
performance. See the Reconciliation of Non-GAAP Financial Measures at the end of the release for
details on adjustments to pre-tax income by segment.
Results from Continuing Operations As Reported, Year Ended December 31, 2010:
$ millions, except per share data
$ millions, except per share data
As Reported | ||||||||||||
Year Ended Dec. 31 | ||||||||||||
Consolidated Results: | 2010 | 2009 | % Change | |||||||||
Net Sales |
$ | 737.6 | $ | 701.8 | 5 | % | ||||||
(Loss) Income Before Taxes |
$ | (51.0 | ) | $ | 8.8 | | ||||||
(Loss) Income, Net of Taxes |
$ | (42.8 | ) | $ | 7.0 | | ||||||
(Loss) Income Per Share |
$ | (1.21 | ) | $ | 0.20 | |
As Reported | ||||||||||||
Year Ended Dec. 31 | ||||||||||||
Segment Net Sales | 2010 | 2009 | % Change | |||||||||
Lawn & Garden |
$ | 223.8 | $ | 220.3 | 2 | % | ||||||
Material Handling |
$ | 257.8 | $ | 254.0 | 2 | % | ||||||
Distribution |
$ | 175.0 | $ | 163.0 | 7 | % | ||||||
Engineered Products |
$ | 104.8 | $ | 86.0 | 22 | % |
As Reported | ||||||||||||
Segment Income | Year Ended Dec. 31 | |||||||||||
(Loss) Before Taxes | 2010 | 2009 | % Change | |||||||||
Lawn & Garden |
$ | (74.6 | ) | $ | 16.7 | | ||||||
Material Handling |
$ | 22.6 | $ | 13.6 | 66 | % | ||||||
Distribution |
$ | 15.2 | $ | 13.7 | 11 | % | ||||||
Engineered Products |
$ | 8.9 | $ | 0.8 | 1,013 | % |
More
Myers Industries Reports 2010 Fourth Quarter & Full Year Results 02/17/11 | page 3 of 6 |
Gross profit was 22.3% for 2010 versus 24.3% in 2009. Although margins declined year over year,
significant progress was made in the second half of 2010 to improve margins and offset the impact
of substantially higher raw material costs.
The Company also benefited from a reduction in net interest expense of $1.1 million for the year
compared to 2009, due to lower debt levels.
Adjusted for the impairment charge, special gains and expenses detailed in the Reconciliation of
Non-GAAP Financial Measures, income from continuing operations was $13.0 million or $0.37 per share
for the year compared to $19.5 million or $0.55 per share in 2009.
2010 Sales by Segment In the Lawn and Garden Segment, full year sales were up 2%, benefiting
from slightly higher unit volumes. Sales improvement in the Material Handling Segment was driven
by market recovery throughout the year, including strong sales in the agriculture market and
improved industrial demand, which offset substantial reductions in custom pallets. Distribution
Segment sales were up 7%, maintaining consistent higher performance through the year. In the
Engineered Products Segment, the 22% sales increase for the year reflects strong sales into the
recreational vehicle market, as well as strengthening in the automotive original equipment market.
2010 Income Before Taxes by Segment, as Adjusted The Lawn and Garden Segment had a full year
loss of $2.2 million, primarily due to significantly higher and volatile raw material costs. In
the Material Handling Segment, income of $23.3 million, a 44% improvement over 2009, was achieved
with favorable sales mix and pricing in specialty, legacy product lines. In the Distribution
Segment, increased volume during the year drove a 15% improvement over 2009. Favorable demand and
pricing in markets served by the Engineered Products Segment produced significant improvement, with
income before taxes of $9.8 million compared to $4.6 million in 2009. See the Reconciliation of
Non-GAAP Financial Measures at the end of the release for details on adjustments to pre-tax income
by segment.
Cash from Operations, Capital Expenditures and Debt Position
Cash flow from operations for the year was $45.7 million. Capital expenditures were $20.5 million
in 2010 compared to $16.0 million in 2009. Total debt was reduced $20.5 million to $83.8 million
at December 31, 2010, compared to $104.3 million at December 31, 2009. At December 31, 2010, the
Company had more than $130 million of available borrowing under its committed credit agreement.
Summary & 2011 Outlook
The Companys end markets continued to provide gradual recovery over the course of 2010. Through
the application of its five strategic principles Customer Dedication, Innovation, Operations
Excellence, Organization Development and Financial Strength the Company believes it is prepared
for significant improvement. The Companys focus on these five principles across its leadership
brands aggressively positions it to pursue growth opportunities as its markets and customers
rebound.
While challenges remain, Myers Industries is producing solid operating results, Orr said. This
momentum is flowing into 2011, and we are confident that we have set the stage for stronger levels
of performance in our businesses.
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on
Thursday, February 17, 2011 at 11:00 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 Companys web site,
www.myersindustries.com.
Click on the Investor Relations tab. 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 (Intl) 201-612-7415. The conference
account number is 286 and the conference ID number is 364874.
More
Myers Industries Reports 2010 Fourth Quarter & Full Year Results 02/17/11 | page 4 of 6 |
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.
About the 2010 Fourth Quarter and Full-Year Financial Results: The data herein is
unaudited and reflects our current best estimates and may be revised as a result of managements
further review of our results for the quarter and year ended Dec. 31, 2010. During the course of
the preparation of our final consolidated financial statements and related notes, we may identify
items that would require us to make material adjustments to the preliminary financial information
presented.
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
managements current views and assumptions of future events and financial performance and involve a
number of risks and uncertainties, many outside of the Companys control, that could cause actual
results to materially differ from those expressed or implied. Risks and uncertainties include:
changes in the markets for the Companys 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 Companys ability to execute the components of its Strategic Business Evolution process; and
other risks as detailed in the Companys 10-K and other reports filed with the Securities and
Exchange Commission. Such reports are available from the Securities and Exchange Commissions
public reference facilities and its web site at http://www.sec.gov, and from the Companys 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.
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Myers Industries Reports 2010 Fourth Quarter & Full Year Results 02/17/11 | page 5 of 6 |
MYERS INDUSTRIES, INC. CONDENSED STATEMENTS OF INCOME (LOSS)
($ in thousands, except per share data)
($ in thousands, except per share data)
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net Sales |
$ | 188,245 | $ | 188,294 | $ | 737,618 | $ | 701,834 | ||||||||
Cost of Sales |
144,061 | 150,709 | 573,094 | 530,939 | ||||||||||||
Gross Profit |
44,184 | 37,584 | 164,524 | 170,896 | ||||||||||||
Selling, General &
Administrative Expenses |
36,579 | 31,891 | 140,153 | 148,296 | ||||||||||||
Impairment Charges |
72,014 | 1,312 | 72,014 | 5,462 | ||||||||||||
Total Operating Expenses |
108,593 | 33,203 | 212,167 | 153,758 | ||||||||||||
Operating (Loss) Income |
(64,409 | ) | 4,381 | (47,643 | ) | 17,137 | ||||||||||
Other Income, Net |
3,827 | | 3,827 | | ||||||||||||
Interest Expense, Net |
1,832 | 1,822 | 7,205 | 8,304 | ||||||||||||
Income (Loss) from Continuing
Operations Before Income Taxes |
(62,414 | ) | 2,559 | (51,021 | ) | 8,833 | ||||||||||
Income Tax Expense (Benefit) |
(11,930 | ) | 517 | (8,187 | ) | 1,838 | ||||||||||
Income (Loss) from
Continuing Operations |
(50,484 | ) | 2,042 | (42,834 | ) | 6,995 | ||||||||||
Income (Loss) from Discontinued
Operations, Net of Tax |
| (1,101 | ) | | (7,678 | ) | ||||||||||
Net Income (Loss) |
$ | (50,484 | ) | $ | 941 | $ | (42,834 | ) | $ | (683 | ) | |||||
Income (Loss) Per Basic & Diluted Common Share | ||||||||||||||||
Continuing Operations |
$ | (1.43 | ) | $ | 0.06 | $ | (1.21 | ) | $ | 0.20 | ||||||
Discontinued Operations |
| (0.03 | ) | | (0.22 | ) | ||||||||||
Net Income (Loss) Per Share |
$ | (1.43 | ) | $ | 0.03 | $ | (1.21 | ) | $ | (0.02 | ) | |||||
Weighted Average Common
Shares Outstanding |
35,314,559 | 35,277,433 | 35,304,817 | 35,266,324 | ||||||||||||
CONDENSED STATEMENTS OF FINANCIAL POSITION
($ in thousands)
($ in thousands)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Assets | ||||||||
Current Assets |
$ | 213,847 | $ | 206,548 | ||||
Other Assets |
66,733 | 145,000 | ||||||
Property, Plant & Equipment |
151,815 | 158,418 | ||||||
$ | 432,395 | $ | 509,966 | |||||
Liabilities & Shareholders Equity | ||||||||
Current Liabilities |
$ | 106,331 | $ | 169,025 | ||||
Long-term Debt, less current portion |
83,530 | 38,890 | ||||||
Deferred Income Taxes |
24,793 | 38,370 | ||||||
Other Liabilities |
5,936 | 5,683 | ||||||
Shareholders Equity |
211,805 | 257,998 | ||||||
$ | 432,395 | $ | 509,966 | |||||
More
Myers Industries Reports 2010 Fourth Quarter & Full Year Results 02/17/11 | page 6 of 6 |
MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME (LOSS) BEFORE TAXES BY SEGMENT
($ in millions)
INCOME (LOSS) BEFORE TAXES BY SEGMENT
($ in millions)
Quarter Ended Dec. 31, | Year Ended Dec. 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Lawn & Garden |
||||||||||||||||
Income (loss) before taxes as reported
|
(71.4 | ) | 5.8 | (74.6 | ) | 16.7 | ||||||||||
Restructuring expenses
|
0.2 | 1.5 | 0.4 | 8.8 | ||||||||||||
Fixed asset impairments
|
0.0 | 0.0 | 0.0 | 2.0 | ||||||||||||
Gain on plant sale
|
0.0 | (3.3 | ) | 0.0 | (3.3 | ) | ||||||||||
Goodwill impairment
|
72.0 | 0.0 | 72.0 | 0.0 | ||||||||||||
Income (loss) before taxes as adjusted
|
0.8 | 4.0 | (2.2 | ) | 24.2 | |||||||||||
Material Handling |
||||||||||||||||
Income (loss) before taxes as reported
|
6.6 | (0.3 | ) | 22.6 | 13.6 | |||||||||||
Restructuring expenses
|
0.3 | 2.5 | 1.4 | 2.6 | ||||||||||||
Gain on plant sale
|
0.0 | 0.0 | (0.7 | ) | 0.0 | |||||||||||
Income before taxes as adjusted
|
6.9 | 2.2 | 23.3 | 16.2 | ||||||||||||
Engineered Products |
||||||||||||||||
Income (loss) before taxes as reported
|
0.9 | (0.4 | ) | 8.9 | 0.8 | |||||||||||
Restructuring expenses
|
0.2 | 1.1 | 0.9 | 1.5 | ||||||||||||
Fixed asset impairments
|
0.0 | 0.4 | 0.0 | 2.3 | ||||||||||||
Income before taxes as adjusted
|
1.1 | 1.1 | 9.8 | 4.6 | ||||||||||||
Distribution |
||||||||||||||||
Income before taxes as reported
|
4.1 | 4.3 | 15.2 | 13.7 | ||||||||||||
Restructuring expenses
|
0.2 | 0.0 | 0.6 | 0.0 | ||||||||||||
Income before taxes as adjusted
|
4.3 | 4.3 | 15.8 | 13.7 | ||||||||||||
Corporate and interest expense
Income (loss) before taxes as reported
|
(2.7 | ) | (6.8 | ) | (23.0 | ) | (35.9 | ) | ||||||||
Restructuring consulting fees and other
|
0.0 | 0.0 | 0.6 | 7.7 | ||||||||||||
Claims Settlement Gain
|
(3.8 | ) | 0.0 | (3.8 | ) | 0.0 | ||||||||||
Income (loss) before taxes as adjusted
|
(6.6 | ) | (6.8 | ) | (26.2 | ) | (28.2 | ) | ||||||||
Myers Industries Consolidated |
||||||||||||||||
Income (loss) from continuing operations before
taxes as reported
|
(62.4 | ) | 2.6 | (51.0 | ) | 8.8 | ||||||||||
Restructuring expenses and other adjustments
|
69.0 | 2.2 | 71.3 | 21.6 | ||||||||||||
Income from continuing operations before taxes as adjusted
|
6.6 | 4.8 | 20.3 | 30.4 | ||||||||||||
Income Taxes at 36%
|
2.4 | 1.7 | 7.3 | 10.9 | ||||||||||||
Income from continuing operations as adjusted
|
4.2 | 3.1 | 13.0 | 19.5 | ||||||||||||
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 companys 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) from continuing operations or
other consolidated income data prepared in accordance with GAAP. The tax rate used is believed to
be approximately equal to the Companys normalized effective rate for income taxes. The Companys
method for calculating income (loss) excluding these items may not be comparable to methods used by
other companies.
END