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8-K - FORM 8-K - MYERS INDUSTRIES INC | d504365d8k.htm |
Exhibit 99.1
March2013MyersIndustrie
resentaonForwardLookingStatementsStatementsinthispresentationconcerningtheCompanysgoals,strategies,andexpectationsforbusinessandfinancialresultsmaybeforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995andarebasedoncurrentindicatorsandexpectations.Wheneveryoureadastatementthatisnotsimplyastatementofhistoricalfact(suchaswhenwedescribewhatwebelieve,expect,oranticipatewilloccur,andothersimilarstatements),youmustrememberthatourexpectationsmaynotbecorrect,eventhoughwebelievetheyarereasonable.Wedonotguaranteethatthetransactionsandeventsdescribedwillhappenasdescribed(orthattheywillhappenatall).Youshouldreviewthispresentationwiththeunderstandingthatactualfutureresultsmaybemateriallydifferentfromwhatweexpect.Manyofthefactorsthatwilldeterminetheseresultsarebeyondourabilitytocontrolorpredict.Youarecautionednottoputunduerelianceonanyforward-lookingstatement.Wedonotintend,andundertakenoobligation,toupdatetheseforward-lookingstatements.Thesestatementsinvolveanumberofrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedorimpliedintheapplicablestatements.Suchrisksinclude:(1)Fluctuationsinproductdemandandmarketacceptance(2)Uncertaintiesassociatedwiththegeneraleconomicconditionsindomesticandinternationalmarkets(3)Increasedcompetitioninourmarkets(4)Changesinseasonality(5)Difficultiesinmanufacturingoperations,suchasproductionoutagesormaintenanceprograms(6)Rawmaterialavailability(7)Fluctuationsinrawmaterialcosts;fluctuationsoutsidethenormalrangeofindustrycycles(8)Changesinlawsandregulationsandapprovalsanddecisionsofcourts,regulators,andgovernmentalbodiesMyersIndustries,Inc.encouragesinvestorstolearnmoreabouttheseriskfactors.AdetailedexplanationofthesefactorsisavailableintheCompanyspubliclyfiledquarterlyandannualreports,whichcanbefoundonlineatwww.myersindustries.comandattheSEC.govwebsite
CompanyataGlanceNYSE:MYEFoundedin1933HeadquarteredinAkron,OH3,378employeesDiversi?edInternaonalmanufacturerofpolymerproductsandwholesaledistributorfoursegmentsthatoperatesin
BusinessSegments
VisionforProfitableGrowthMyersIndustriesisandwillconnuetobe:AdiversifiedindustrialcompanyfocusedonfivekeygrowthplaormsinnichemanufacturingandresupplydistribuonAdecentralizedbusinessrootedinstrongbrandsTheleaderinitsindustries,deliveringcustomerdedicaonandstrongfinancialresultsthrough InnovaonOperaonsExcellenceOrganizaonDevelopmentGrowininNorthAmericaandrapidlydevelopinginternaonalmarketsviaorganicgrowthandselecve,highlyvalue-addedacquisionsImprovingunderperformingoperaons
GrowthPlaormsWewillconnuouslyupgradethevalueofMyersthroughdisciplinedporoliomanagementandastructuredorganizaonoperangaroundmarket-basedgrowthplaorms
aormtwthReturnableDriveconversionstoreusableproductsthoughMaterialHandlingfurtherpenetraonoffood,liquid,bulksolidsandPackagingagriculturalmarkets.Storage&SafetyFurthergrowplaormwithacquisions.StrengthencompeveadvantagethroughProductsMaterialHandlingdistribuonchannels.TireRepair&LeverageproductandcustomerexpersetogrowEngineeredProductsRetreadProductsnichemarket.SpecialtyExpandourcapabiliestofurthergrowourEngineeredProductsMoldingposionsinMarineandRV.TireSupplyGrowthroughmarketreach,innovaveproductsDistribuonDistribuonandexpandedglobalsourcing.
InnovaveNewProductsin2012
IInternalprojectinLawn&GardenSegmenttodriveoutcosts,increaseproducvityandimprovepro?tabilityAncipatedtoyieldannualsavingsofapproximately$5millionby2014Addressessub-segmentsofthebusinessindividuallyNurseryvariouscostreduconeffortstoimproveprofitabilityGreenhousetakeaconstosimplify,consolidateandbalancecapacitywithdemandConnuetolookatfurtheroponsincludingexternalopportunies
Generatereturnsabovecost-of-capitalProducestrongfreecash?owAchieveorganicgrowth>1.5xGDPdevelopedRealizesalesinfromthelastthreenewproducts,yearsofservices>10%orofmarketstotalsalesTargeta5%reduconinCOGSeachyearMaintainstrong?nancialposionBalancedapproachtocapitalallocaonincludingreturningcashtoshareholders
ProgressinAccomplishingGoalsKeyMetrics*ROIC=NetOperatingProfitAfterTax/(Debt+Equity).**NPD=NewProductDevelopment.Calculationbasedonproducts/servicesintroducedwithinlast3years
Achieved40%increaseinadjustedEPS$0.94comparedto$0.67in2011CompletedtwostrategicacquisionswhichwereaccreveNovel&JamcoservicesAspartofwereInnovaintroducedoniniavemorethan40newproductsand6%oftotalsalesin2012camefromproducts,servicesormarketsdevelopedinthelastthreeyears.Realized$16millioninOperaonsExcellencesavings3%ofCostofGoodssoldIncreasedcapitalspendingby$5.1millionto$27million55%wasforgrowthorientedprojects14%Returnedand300kcashsharetoshareholdersbuybackthroughdividendincreaseof
Debt&Debt-to-CapitalNote:1)Debt-to-Capitalratiocalculatedasdebt/(debt+equity).Wellpositionedtomakeselective,highreturninvestmentsSolidCashFlowGeneraonFreeCashFlow$(Millions)Notes:1)Freecashflowcalculatedascashflowfromcontinuingoperationslesscapitalexpenditures
SolidCashFlowGeneraonFreeCashFlow$(Millions)Notes:1)Freecashflowcalculatedascashflowfromcontinuingoperationslesscapitalexpenditures.
1)MaintaintheBusiness2)GrowStakeholderValueOrganicGrowthCapExProcessImprovementsNewProductDevelopmentAcquisions3)ReturnCapitaltoStakeholdersDividendsShareRepurchasesDebtReducon
DividendpaideveryyearsincePublicin1971DividendsPaidNotes:1)Aboveadjustedforstockdividendsandsplitsin2000,2001,2002and2004.2)In2007therewasanadditionalspecialdividend(notshownabove)of$0.28or$9.9Maccruedbutnotpaiduntil2008,resultingfromamergerterminationpayment.3)In2012therewasanaccelerateddividendpaidinDecemberthatisnotreflectedaboveSharerepurchasesSpent$4Mtobuyback300ksharesin2012Spent$20Mtobuyback2Msharesin2011
Q1OutlookMaterialHandlingSeasonalityinBrazilwillunfavorablyimpactthequarterLawn&GardenQ4Solid2012ordertoacQ1vity2013quarter--to--dateshouldbene?ttheontopquarterofthedelayincustomerdemandfromDistribuonconAncipatenuedweakcapturingmarketplacegreatersharesofbothequipmentandsuppliessalesi naEngineeredProductsinDemandsalesininthatmarketyear--over--yeartransplantautowillbeatnormallevelsduringQ1resulnginadeclineFullYearOutlookimprovementSlowQ1impactedbyITinvestments;butthengoodyear--over--yearOverallexpectanotheryearofgoodperformanceimprovement
FocusedstrategyCustomerDedicaonInnovaonOperaonsExcellenceOrganizaonDevelopmentFinancialStrengthTargetedGrowthPlaormsReturnablePackagingStorage&SafetyProductsTireRepair&RetreadProductsSpecialtyMoldingTireSupplyDistribuonImprovedperformanceGrossmargins,earnings,cash?ow,returnsStrongand?exiblebalancesheetBalancedapproachtocapitalallocaon
Appendix
StrategicPrinciplesCustomerStructuretheorganizationclosertothecustomer-decentralizeBuildandmaintainprocessestomaximizecustomerinputDedicationLeadourindustriesinservice,qualityanddeliveryKeyDelivernext-generationproducts/servicesinhighnichemarketsInnovationUtilizeVoiceoftheCustomertoolsMarketbasedstrategicplanningOperationsMaintainhigheststandardsinsafetyandproductivityEnsureprocessforcontinuousquality,serviceandproductivityExcellenceimprovementManagementOrganizationEnsureindustry-besttalentDevelopmentMakeMyerstraininganddevelopmentacompetitiveadvantageCapabilitiesFinancialGeneratestrongfinancialresultsEBITDAgrowth,Cash,ROICStrengthMaintainastrongbalancesheetBuildindustryleadingdecision-makingtoolsacrossthebusiness
PorolioEvoluon
MaterialHandlingMHEM(MaterialHandlingEquipment)IndexMaterialHandlingIndexAnnualrateofchangeSource:MaterialHandlingIndustryofAmerica,January2013Forecast
Lawn&GardenHousingStarts;ConsumerSentimentSources:NationalAssociationofHomeBuilders(NAHB);Feb2013ThomsonReuters/UniversityofMichigan
MacroIndicatorsDistributionReplacementTireShipments;MilesDriven;FuelPricesKeyIndicatorsfortheTireMarketSource:JPMorgan,RMA,EnergyInformationAdministration
MacroIndicatorsEngineeredProductsRVIA;MotorVehicleandPartsProductionSource:RVIAForecasts,Dec2012Source:FRBG17Release(Jan2013);MAPIForecast,Dec2012