Attached files
| file | filename |
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| 8-K - FORM 8-K - MYERS INDUSTRIES INC | d526352d8k.htm |
| EX-99.1 - EX-99.1 - MYERS INDUSTRIES INC | d526352dex991.htm |
 Earnings
Presentation First Quarter 2013
April 24, 2013
Exhibit 99.2 |
 Safe Harbor
Statement 2
Myers Industries, Inc. encourages investors to learn more about these risk factors.
A detailed explanation of these factors is available in the Company’s
publicly filed quarterly and annual reports, which
can
be
found
online
at
www.myersind.com
and
at
the
SEC.gov
web
site.
Statements in this presentation concerning the Company’s goals, strategies, and expectations for
business and financial results may be "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and are based on current
indicators and expectations. Whenever you read a statement that is not simply a statement
of historical fact (such as when we describe what we "believe," "expect," or
"anticipate" will occur, and other similar statements), you must remember that our expectations
may not be correct, even though we believe they are reasonable. We do not guarantee that the
transactions and events described will happen as described (or that they will happen at
all). You should review this presentation with the understanding that actual future
results may be materially different from what we expect. Many of the factors that will
determine these results are beyond our ability to control or predict. You are cautioned not to
put undue reliance on any forward-looking statement. We do not intend, and undertake
no obligation, to update these forward-looking statements. These statements involve a
number of risks and uncertainties that could cause actual results to differ materially from those
expressed or implied in the applicable statements. Such risks include:
(1) Fluctuations in product demand and market acceptance (2) Uncertainties associated
with the general economic conditions in domestic and international markets
(3) Increased competition in our markets
(4) Changes in seasonality
(5) Difficulties in manufacturing operations, such as production outages or maintenance
programs (6) Raw material
availability (7)
Fluctuations in raw material costs; fluctuations outside the “normal” range of industry cycles
(8) Changes in laws and regulations and approvals and decisions of courts, regulators, and
governmental bodies
|
  First Quarter 2013
Financial Summary 3
•
Net sales increased 8.1%
•
Novel and Jamco
acquisitions generated most
of the 23% increase in
Material Handling
•
Lawn & Garden sales
increased 2%
•
Gross margin 27.1%
compared to 29.2% in 2012
•
An unfavorable customer
and product mix led to a
lower gross margin quarter-
over-quarter
Note: All figures except ratios and percents are $Millions
Q1
Q1
Highlights
2013
2012
B/(W)
Net sales
$215.0
$198.8
8.1%
Gross
margin
27.1%
29.2%
-7.2%
SG&A
$45.1
$40.9
-10.3%
Net
income -
adjusted*
$8.1
$10.1
-19.8%
Effective
tax rate
35.1%
37.7%
EPS -
adjusted*
$0.24
$0.30
-20.0%
*See Reconciliation of Non-GAAP measures on slide 11 |
  First Quarter 2013
Financial Summary 4
Notes: All figures except ratios and percents are $Millions
Free
Cash
Flow
=
Cash
flow
from
Operations
–
Capital
Expenditures
Three Months Ended
Three Months Ended
Cash
March 31,
March 31,
Highlights
2013
2012
Cash used in
Operations
($6.5)
($6.4)
Capital
expenditures
$4.5
$3.1
Free cash flow
($11.0)
($9.5)
Dividends
-
$2.3
Balance Sheet
March 31,
December 31,
Highlights
2013
2012
Long-term debt
$103.6
$92.8
Debt - net of
Cash
$99.5
$88.9
Net Debt to
Total Capital
29.8%
27.9% |
 Q1 Results
•
Net sales increase of 23%
due mostly to Novel & Jamco
acquisitions
•
A less favorable customer
and product mix compared
to last year led to the
decrease in adjusted EBIT
Segment Review –
Material Handling
5
$ Millions
See Reconciliation of Non-GAAP measures on
slide 11
$65.2
$80.0
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q1 2012
Q1 2013
Net Sales
$13.2
$9.9
$0
$3
$6
$9
$12
$15
Q1 2012
Q1 2013
EBIT -
Adjusted |
 Q1 Results
•
New products sales
resulting from our
Innovation
initiative
contributed to the
increase in net sales
during the quarter
•
Productivity and material
cost savings combined
with the higher sales
volume drove the
significant increase in
adjusted EBIT
Segment Review –
Lawn & Garden
6
$ Millions
See Reconciliation of Non-GAAP measures on
slide 11
$59.2
$60.4
$50
$53
$56
$59
$62
Q1 2012
Q1 2013
Net Sales
$1.2
$2.7
$0
$1
$1
$2
$2
$3
$3
Q1 2012
Q1 2013
EBIT -
Adjusted |
 Q1 Results
•
Sales of new products
contributed to total net sales
during the quarter
•
A less favorable product mix
of equipment vs. supplies
and planned IT expenses
contributed to the decrease
in adjusted EBIT
Segment Review –
Distribution
7
$ Millions
See Reconciliation of Non-GAAP measures on
slide 11
$42.7
$42.6
$25
$30
$35
$40
$45
Q1 2012
Q1 2013
Net Sales
$3.9
$2.9
$0
$5
Q1 2012
Q1 2013
EBIT -
Adjusted |
 Q1 Results
•
Strong marine sales during
the quarter were offset by
more normal demand in
the transplant auto market
compared to last year
•
Productivity improvements
more than offset the
slightly lower sales
Segment Review –
Engineered Products
8
$ Millions
See Reconciliation of Non-GAAP measures on
slide 11
$37.2
$37.0
$20
$25
$30
$35
$40
Q1 2012
Q1 2013
Net Sales
$4.7
$5.1
$0
$1
$2
$3
$4
$5
$6
Q1 2012
Q1 2013
EBIT -
Adjusted |
 Q2 & Full
Year 2013 Outlook Q2 & Full-Year Outlook
•
Material Handling
•
Q2 and full year results will benefit from the recent acquisitions and new
product introductions
•
Lawn & Garden
•
Expect results to continue to improve year-over-year driven by new products,
cost reductions, material substitutions and sales increases
•
Distribution
•
IT investments will continue in the second quarter
•
Anticipate capturing greater market share in a continued weak marketplace
•
Engineered Products
•
Demand in transplant auto will continue to be at normal levels
•
Expect strength in the marine market to continue
•
Overall expect another year of good performance improvement
9 |
 Appendix
10 |
 Reconciliation
of Non-GAAP Measures 11
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 share
$
0.24
$
0.30
MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in millions)
|
 Market
Indicators Material Handling
MHEM Index
Lawn & Garden
Housing Starts
Consumer Sentiment
Distribution
Miles Driven
Replacement Tire Shipments,
Gasoline Sales
Engineered Products
RVIA
Auto Market Forecasts
Source: Material Handling Industry Jan 2013 Forecast
Sources: RVIA Forecast, April 2013; FRB G17 Release, April 2013
MAPI Forecast, Dec 2012
12
Source: National Association of Home Builders (NAHB), Apr 2013; Thomson
Reuters/University of Michigan, March 2013 Source: JP Morgan, RMA, Energy Information Administration – April 2013
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