Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MYERS INDUSTRIES INC | d384910d8k.htm |
| EX-99.1 - EX-99.1 - MYERS INDUSTRIES INC | d384910dex991.htm |
 July 19,
2012 Earnings Presentation
Second Quarter 2012
Second Quarter 2012
Exhibit 99.2
Myers Industries, Inc. |
 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
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.
2 |
 3
Novel is a market leader in beverage and agricultural material handling
Designer and manufacturer of
returnable plastic crates and totes for
the transport of beverages and
agricultural products; Founded in 1975
Manufacturer, importer and reseller of
traffic control and safety equipment
#1 position in beverage crates and
poultry boxes
Strong relationships with international
beverage manufacturers
Sales Projected at $38.0M for 2012
Two strategically located
manufacturing facilities in Bahia &
Paraná
Clear fit with Myers’
returnable
packaging market focus and
geographic expansion strategy
Will be integrated into the Material
Handling Segment
Sales by Product Line
Manufacturing Facilities Beverage
Crates
60%
Other
5%
Safety
10%
Agricultural
Boxes
25%
Bahia
Paraná |
 4
*See reconciliation of Non-GAAP measures
on slide 12.
Sales increased 2.2% to $181.1M
Strong sales in Engineered Products
–
38.5% year-over-year increase
Lawn & Garden sales increased 1.6%
Material Handling sales down as
anticipated
Distribution sales declined 4.1%
Gross margin expanded from
25.1% to 26.2%
Operations Excellence initiatives
continued to drive productivity
improvements and cost savings
Adjusted EPS increased 21.4% to
$0.17
Earnings Per Share
$0.18
$0.16
$0.14
$0.12
$0.10
$0.08
$0.06
$0.04
$0.02
$0.00
$0.13
$0.17
Earnings Per Diluted
Share -
Adjusted*
$0.20
$0.15
$0.10
$0.05
$0.00
$0.14
$0.17
Q2 2011
Q2 2012
Q2 2011
Q2 2012 |
 5
P&L
Q2
Q2
Highlights
2012
2011
B/(W)
Net sales
$181.1
$177.3
2.2%
Gross
margin
26.2%
25.1%
4.4%
SG&A
$37.4
$35.8
-4.5%
Net
income -
adjusted*
$5.7
$5.0
14.0%
Effective
tax rate
36.7%
38.1%
EPS -
adjusted*
$0.17
$0.14
21.4%
*See Reconciliation of Non-GAAP measures on slide 12
Balance Sheet
June 30,
December 31,
Highlights
2012
2011
Cash
$35.6
$6.8
Long-term debt
(less current
portion)
$101.8
$73.7
Debt -
net of
cash
$66.5
$67.2
Six Months Ended
Six Months Ended
Cash
June 30,
June 30,
Highlights
2012
2011
Operating cash
flow
$7.9
$8.8
Capital
expenditures
$8.4
$5.8
Dividends
$5.0
$4.7 |
 Q2 Results
Softer sales compared to
last year due to a delay in
the timing of orders
Operations Excellence
initiatives and lower
manufacturing costs drove
margin expansion
6
$67.0
$60.3
$55
$60
$65
$70
Q2 2011
Q2 2012
Net Sales
$8.4
$9.2
$6
$9
$12
Q2 2011
Q2 2012
EBIT -
Adjusted |
 Q2 Results
Sales lower than anticipated
in Q2 as customers
continued to deplete
inventory levels and limited
production
7
$41.8
$42.5
$40
$45
Q2 2011
Q2 2012
Net Sales
$(1.6)
$(1.5)
-$3
$0
Q2 2011
Q2 2012
EBIT -
Adjusted
Increased freight costs offset
a portion of the income that
was generated by higher
sales |
 Q2 Results
Decline in miles driven and
replacement tire sales
resulted in sales decrease
8
$46.1
$44.2
$40
$45
$50
Q2 2011
Q2 2012
Net Sales
$4.5
$4.1
$3
$6
Q2 2011
Q2 2012
EBIT -
Adjusted
High freight costs further
impacted operating results |
 9
Q2 Results
Sales strong in transplant
auto (due mostly to year-
over-year rebound),
recreational vehicle, marine
and custom markets
Higher sales as well as lower
costs generated by
operations excellence
initiatives drove the increase
in pre-tax income
$27.9
$38.6
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Q2 2011
Q2 2012
Net Sales
$2.7
$4.7
$0
$3
$6
Q2 2011
Q2 2012
EBIT -
Adjusted |
 10
Results in the Material Handling Segment should benefit from the
shift in demand from the second quarter to late in the second half
in higher margin agricultural and food processing markets.
Anticipate stronger order activity in the Lawn & Garden Segment
in the second half as inventories are replenished and customers
prepare for next season.
Anticipate continued headwinds in Distribution due to a decline in
miles driven and replacement tire sales.
Expect continued strength in the marine market of our
Engineered Products Segment as boat builders switch to our EPA
approved fuel system.
Despite
a
mixed
economy,
expect
overall
results
in
second
half
to
benefit
from
our
operations
excellence
initiatives
and
the
shift
in
orders in Material Handling.
Full-year results should reflect another year of solid results and
successful execution of our strategic principles. |
 |
 12
|
 Source: Material Handling Industry of America, April 2012
Material Handling
MHEM Index
Lawn & Garden
Housing Starts
Consumer Sentiment
Sources:
National Association of Home Builders (NAHB); June 2012
Thomson/University of Michigan; June 2012 Preliminary
Distribution
Miles Driven
Replacement Tire Shipments,
Gasoline Sales
Engineered Products
RVIA
Auto Market Forecasts
Sources: RVIA, AK Sales Forecast
RVIA’s survey indicates that towable categories
present most RV market’s improvement.
Sources: Federal Reserve Board & Manufacturers
Alliance/MAPI data; IHS Global Insight Model
June 2012 Economic Report (Autos, Light Vehicles,
Trucks, RVs in Total)
Autos & Light Truck Assemblies
RV Unit Shipments
Total Housing Starts
Single Family
Index of Consumer Sentiment
Shipments
Orders
Miles Driven (B) U.S. Department of Transportation; RMA; June 2012
Repl Tire Shipments-
Source: RMA/KeyBanc; Myers Tire Supply Market Analysis
Gasoline Sales (Gal/B) -Source: Energy Information Administration, US Dept. of Energy
Autos and light truck assemblies; s.a.
Y/Y Percent Change
NAHB Housing Forecast
Consumer Sentiment |
 |