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8-K - FORM 8-K - MYERS INDUSTRIES INC | l42471e8vk.htm |
Exhibit 99
News Release | ||
NYSE: MYE | ||
Contact(s): Donald A. Merril, Vice President & Chief Financial Officer (330) 253-5592 |
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FOR IMMEDIATE RELEASE | ||
Monica Vinay, Director, Investor & Financial Relations (330) 253-5592 |
Myers Industries Reports 2011 First Quarter Results
Net Sales improved 4% over 1Q 2010
Gross Profit of 26.9% compared with 24.1% for 1Q 2010
EPS of $0.19 up 19% compared with $0.16 in 1Q 2010
Able to offset higher energy and raw material cost inflation
Gross Profit of 26.9% compared with 24.1% for 1Q 2010
EPS of $0.19 up 19% compared with $0.16 in 1Q 2010
Able to offset higher energy and raw material cost inflation
April 20, 2011, Akron, Ohio Myers Industries, Inc. (NYSE: MYE) today announced results for
the first quarter ended March 31, 2011. Net sales for the first quarter were $193.4 million
compared to $186.4 million in the first quarter of 2010, an increase of 4%. Gross profit increased
to 26.9% in the first quarter compared to 24.1% in the first quarter of 2010, as price increases
helped mitigate raw material cost inflation and favorable mix and increased volumes led to improved
margins.
Net income, which includes approximately $0.6 million of pre-tax restructuring costs, as detailed
on the Reconciliation of Non-GAAP Financial Measures at the end of this release, was $6.7 million
or $0.19 per share. Net income in the first quarter of 2010 was $5.5 million or $0.16 per share and
included $0.2 million of special pre-tax costs also detailed on the Reconciliation of Non-GAAP
Financial Measures. Additionally, a higher effective tax rate in the first quarter of 2011 as
compared to the first quarter of 2010 reduced earnings per share by $0.01.
President and Chief Executive Officer John C. Orr said, Although there is still more work to do,
we are pleased with the results of the quarter. Together with a sustained increase in demand across
most of our end markets, our continued focus on customer dedication, innovation and productivity
initiatives delivered improved operating results, on an adjusted basis, for the third consecutive
quarter.
2011 First Quarter Results Consolidated and by Segment:
$ millions, except per share data
$ millions, except per share data
First Quarter Ended March 31 | ||||||||||||
Consolidated Results: | 2011 | 2010 | % Change | |||||||||
Net Sales |
$ | 193.4 | $ | 186.4 | 4 | % | ||||||
Income Before Taxes |
$ | 11.1 | $ | 8.7 | 28 | % | ||||||
Net Income |
$ | 6.7 | $ | 5.5 | 22 | % | ||||||
Income Per Share |
$ | 0.19 | $ | 0.16 | 19 | % |
First Quarter Ended March 31 | ||||||||||||
Segment Net Sales | 2011 | 2010 | % Change | |||||||||
Lawn & Garden |
$ | 65.1 | $ | 69.5 | -6 | % | ||||||
Material Handling |
$ | 65.7 | $ | 60.2 | 9 | % | ||||||
Distribution |
$ | 41.6 | $ | 38.7 | 7 | % | ||||||
Engineered Products |
$ | 27.9 | $ | 24.4 | 14 | % |
First Quarter Ended March 31 | ||||||||||||
Segment Income (Loss) Before Taxes | 2011 | 2010 | % Change | |||||||||
Lawn & Garden |
$ | 3.9 | $ | 4.8 | -19 | % | ||||||
Material Handling |
$ | 10.3 | $ | 5.4 | 91 | % | ||||||
Distribution |
$ | 3.1 | $ | 2.9 | 7 | % | ||||||
Engineered Products |
$ | 2.8 | $ | 2.5 | 12 | % |
MORE
NYSE / MYE
Myers Industries Reports 2011 First Quarter Results 04/20/11 | page 2 of 4 |
The Material Handling, Engineered Products and Distribution Segments benefited from continued
strengthening of their end markets, resulting in both higher sales and income compared to the first
quarter of last year. Favorable mix also contributed to the sales and profit increases in the
Material Handling segment. Although the market was softer than expected in Lawn and Garden, as
growers took a more conservative approach to production this spring, the segment was able to offset higher
raw material costs through pricing actions and the use of alternative materials.
Outlook for 2011
The Companys performance in the first quarter demonstrates an ability to execute improvement plans
in a difficult cost inflation environment. The Companys outlook is positive though tempered
somewhat by the rise in energy and resin costs. Finally, our strong balance sheet and cash flow
provide us with the flexibility to profitably grow our business through investments in high return
projects.
Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on
Wednesday, April 20, 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.myersind.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 replay passcodes are: Account # 286; Conference ID # 370935.
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 $737.6 million
in 2010. Visit www.myersind.com to learn more.
About the 2011 First Quarter 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 ended March 31, 2011. 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 above
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.
Myers Industries Reports 2011 First Quarter Results 04/20/11 | page 3 of 4 |
MORE
MYERS INDUSTRIES, INC.
CONDENSED STATEMENTS OF INCOME
CONDENSED STATEMENTS OF INCOME
($ in thousands, except per share data)
Quarter Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net Sales |
$ | 193,441 | $ | 186,422 | ||||
Cost of Sales |
141,416 | 141,510 | ||||||
Gross Profit |
52,025 | 44,912 | ||||||
Selling, General & Administrative Expenses |
39,656 | 34,431 | ||||||
Operating Income |
12,369 | 10,481 | ||||||
Interest Expense, Net |
1,237 | 1,800 | ||||||
Income before Income Taxes |
11,132 | 8,681 | ||||||
Income Taxes |
4,412 | 3,151 | ||||||
Net Income |
$ | 6,720 | $ | 5,530 | ||||
Income per Basic &
Diluted Common Share |
$ | 0.19 | $ | 0.16 | ||||
Weighted Average
Common Shares Outstanding |
35,320,589 | 35,289,725 | ||||||
CONDENSED STATEMENTS OF FINANCIAL POSITION
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash |
$ | 7,053 | $ | 4,705 | ||||
Accounts Receivable, Net |
115,804 | 98,799 | ||||||
Inventories |
105,091 | 96,404 | ||||||
Other |
11,869 | 13,939 | ||||||
Total Current Assets |
239,817 | 213,847 | ||||||
Other Assets |
66,262 | 66,733 | ||||||
Property, Plant & Equipment |
146,740 | 151,815 | ||||||
$ | 452,819 | $ | 432,395 | |||||
Liabilities & Shareholders Equity
|
||||||||
Current Liabilities
|
||||||||
Accounts Payable |
$ | 66,578 | $ | 64,143 | ||||
Accrued Expenses |
45,440 | 42,188 | ||||||
Total Current Liabilities |
112,018 | 106,331 | ||||||
Long-term Debt, less current portion |
90,524 | 83,530 | ||||||
Deferred Income Taxes |
24,932 | 24,793 | ||||||
Other Liabilities |
6,784 | 5,936 | ||||||
Shareholders Equity |
218,561 | 211,805 | ||||||
$ | 452,819 | $ | 432,395 | |||||
Myers Industries Reports 2011 First Quarter Results 04/20/11 | page 4 of 4 |
MORE
MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME BEFORE TAXES BY SEGMENT
($ in millions)
INCOME BEFORE TAXES BY SEGMENT
($ in millions)
Quarter Ended March 31, | ||||||||
2011 | 2010 | |||||||
Lawn & Garden |
||||||||
Income before taxes as reported |
$ | 3.9 | $ | 4.8 | ||||
Restructuring expenses |
0.0 | 0.1 | ||||||
Income before taxes as adjusted |
3.9 | 4.9 | ||||||
Material Handling |
||||||||
Income before taxes as reported |
10.3 | 5.4 | ||||||
Restructuring expenses |
0.0 | 0.4 | ||||||
Gain on plant sale |
0.0 | (0.7 | ) | |||||
Income before taxes as adjusted |
10.3 | 5.1 | ||||||
Distribution |
||||||||
Income before taxes as reported |
3.1 | 2.9 | ||||||
Restructuring expenses |
0.2 | 0.0 | ||||||
Income before taxes as adjusted |
3.3 | 2.9 | ||||||
Engineered Products |
||||||||
Income before taxes as reported |
2.8 | 2.5 | ||||||
Restructuring expenses |
0.1 | 0.3 | ||||||
Income before taxes as adjusted |
2.9 | 2.8 | ||||||
Corporate and interest expense |
||||||||
Income before taxes as reported |
(9.0 | ) | (6.9 | ) | ||||
Restructuring consulting fees and other |
0.0 | 0.1 | ||||||
Loss on plant sale |
0.3 | 0.0 | ||||||
Income before taxes as adjusted |
(8.7 | ) | (6.8 | ) | ||||
Consolidated |
||||||||
Income before taxes as reported |
11.1 | 8.7 | ||||||
Restructuring expenses and other adjustments |
0.6 | 0.2 | ||||||
Income before taxes as adjusted |
$ | 11.7 | $ | 8.9 | ||||
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 Companys method for calculating income (loss) excluding these items
may not be comparable to methods used by other companies.
END