Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MYERS INDUSTRIES INC | d677775d8k.htm |
| EX-99.3 - EX-99.3 - MYERS INDUSTRIES INC | d677775dex993.htm |
| EX-99.1 - EX-99.1 - MYERS INDUSTRIES INC | d677775dex991.htm |
| EX-99.4 - EX-99.4 - MYERS INDUSTRIES INC | d677775dex994.htm |
 Earnings
Presentation Fourth Quarter & Full Year 2013
February 20, 2014
Exhibit 99.2 |
 Safe Harbor
Statement 2
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. |
 Full Year 2013
Highlights •
Achieved 6.4% increase in adjusted EPS
•
$1.00 compared to $0.94 in 2012
•
Generated 95% increase in free cash flow
•
$66.1 million compared to $33.8 million
•
6% of total sales in 2013 came from products, services or markets
developed in the last three years.
•
Realized $16 million in Operations Excellence savings
•
3% of Cost of Goods sold
•
2012
Novel
&
Jamco
acquisitions
performed
as
anticipated
in
2013
and
continue to be a good strategic fit
•
Increased dividend 12.5% to $0.09 per quarter or $0.36 per year
•
Invested $8.1 million to repurchase common stock
3
•
As part of Innovation initiative more than 40 new products and services were
introduced |
  Full Year 2013
Financial Summary 4
•
Sales increased 4.3%
•
Novel and Jamco acquisitions
were the primary contributor to
the increase
•
Adjusted gross margin expanded
to 27.7% from 27.4%
•
Operations Excellence
initiatives
drove productivity improvements
and cost savings
•
Adjusted net income increased
6.1%
•
Adjusted EPS increased 6.4%
Note: All figures except ratios and percents are $Millions
FY
FY
Highlights
2013
2012
B/(W)
Net sales
$825.2
$791.2
4.3%
Gross profit
margin -
adjusted¹
27.7%
27.4%
1.1%
SG&A
$173.7
$163.4
(6.3%)
Net income -
adjusted²
$34.1
$32.1
6.1%
Effective tax
rate
34.0%
36.7%
EPS -
adjusted²
$1.00
$0.94
6.4%
¹
See Reconciliation of Non-GAAP measures slide 17
²
See Reconciliation of Non-GAAP measures on slide 18 |
     Full Year 2013
Financial Summary 5
Notes: All figures except ratios and percents are $Millions
Free cash flow = cash flow from operations –
capital expenditures
Twelve Months Ended
Twelve Months Ended
Cash
December 31,
December 31,
Highlights
2013
2012
Cash provided
by operations
$96.1
$60.8
Capital
expenditures
$30.0
$27.0
Free cash flow
$66.1
$33.8
Dividends
$9.1
$13.0
Balance Sheet
December 31,
December 31,
Highlights
2013
2012
Long-term debt
$44.3
$92.8
Debt - net of
cash
$37.8
$88.9
Net Debt to total
capital
13.8%
27.9% |
 FY Results
•
Sales increase of 13%
due mostly to Novel &
Jamco acquisitions
•
Change in both
customer and product
mix led to decrease in
adjusted EBIT
Segment Review –
Material Handling
6
See Reconciliation of Non-GAAP measures on
slide 18 |
 FY Results
•
Sales relatively flat year-
over-year
•
Savings from phase one of
restructuring combined
with productivity and
material cost savings
generated significant year-
over-year adjusted EBIT
improvement
Segment Review –
Lawn & Garden
7
See Reconciliation of Non-GAAP measures on
slide 18 |
 FY Results
•
Sales increase the result of
new product sales and
market share gains in
equipment
•
Adjusted EBIT relatively
flat year-over-year
Segment Review –
Distribution
8
See Reconciliation of Non-GAAP measures on
slide 18 |
 FY Results
•
Strong sales in the marine
and recreational vehicle
markets were offset by
lower custom sales,
primarily as the result of a
focus on more profitable
business
Segment Review –
Engineered Products
9
See Reconciliation of Non-GAAP measures on
slide 18 |
  Q4 2013 Financial
Highlights 10
•
Softer sales volumes partially
resulting from near-term
transportation issues led to a
1.3% decline in sales year-over-
year
•
Adjusted gross profit margin
increased to 27.5% from 26.8%
•
Operations Excellence
initiatives
drove productivity improvements and
cost savings
•
Adjusted net income flat year-
over-year
•
Adjusted EPS flat vs. 2012
Note: All figures except ratios and percents are $Millions
Q4
Q4
Highlights
2013
2012
B/(W)
Net sales
$211.3
$214.0
(1.3%)
Gross profit
margin -
adjusted¹
27.5%
26.8%
2.6%
SG&A
$44.4
$42.2
(5.2%)
Net income -
adjusted²
$8.8
$8.9
(1.7%)
Effective tax
rate
22.3%
38.2%
EPS -
adjusted²
$0.26
$0.26
0.0%
¹
See Reconciliation of Non-GAAP measures slide 17
²
See Reconciliation of Non-GAAP measures on slide 18 |
 Q4
Results •
Sales decreased 1.5% year-
over-year as Q4 2012 sales
benefited from some
sizeable non-recurring
project sales
•
Higher SG&A expenses due
to increased royalty and
employee related expenses
led to the decline in adjusted
EBIT year-over-year
•
A change in customer and
product mix also contributed
to the decline
Segment Review –
Material Handling
11
See Reconciliation of Non-GAAP measures on
slide 18 |
 Q4
Results •
Savings from phase one of
the restructuring project
combined with cost
reductions driven by
productivity improvements
and raw material
substitutions led to the
increase in adjusted EBIT
year-over-year
Segment Review –
Lawn & Garden
12
See Reconciliation of Non-GAAP measures on
slide 18 |
 Q4
Results •
Softer demand from
International customers
during the quarter more
than offset increased sales
from new products in the
U.S.
•
Lower SG&A expenses
partially due to headcount
reductions contributed to
the increase in adjusted
EBIT year-over-year
Segment Review –
Distribution
13
See Reconciliation of Non-GAAP measures on
slide 18 |
 Q4
Results •
Strong sales in the marine
and RV market were more
than offset by lower
custom sales during the
quarter as the segment
continued to focus more
profitable business
Segment Review –
Engineered Products
14
See Reconciliation of Non-GAAP measures on
slide 18 |
 Q1 & Full
Year 2014 Outlook Q1 Outlook
•
Material Handling
•
Strong sales in food processing and organic growth in Brazil will more than offset the
impacts to production schedules and product shipping resulting from poor weather
conditions at the start of the year
•
Lawn & Garden
•
Anticipate that sales will be lower than Q1 2013, partially due to an inability to ship
products during the quarter and as a result of decreased production during the quarter
as we implement phase two of the segment’s restructuring plan
•
Distribution
•
Anticipate sales will be relatively flat during the quarter as a
result of weather conditions at the
start of the year
•
Future quarters should see the benefit of the resulting pent-up demand
•
Engineered Products
•
Anticipate that custom sales will be lower than Q1 2013 due to the elimination of some
unprofitable business throughout 2012
Full Year Outlook
•
The Company anticipates that it will show another year of profit
improvement from
its sustained focus on productivity and cost saving initiatives,
including phase two of
the Lawn & Garden restructuring project that was announced in July 2013
15 |
 Appendix
16 |
 Reconciliation
of Non-GAAP Measures 17
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONDENSED CONSOLIDATED GROSS PROFIT (UNAUDITED)
(Dollars in thousands)
Note
on
Reconciliation
of
Income
and
Earnings
Data:
Gross
profit
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
unaudited
Consolidated
Financial
Statements.
The
Company
believes
that
the
excluded
items
are
not
primarily
related
to
core
operational
activities.
The
Company
believes
that
gross
profit
excluding
items
that
are
not
primarily
related
to
core
operating
activities
is
generally
viewed
as
providing
useful
information
regarding
a
company's
operating
profitability.
Management
uses
gross
profit
excluding
these
items
as
well
as
other
financial
measures
in
connection
with
its
decision-making
activities.
Gross
profit
excluding
these
items
should
not
be
considered
in
isolation
or
as
a
substitute
for
gross
profit
prepared
in
accordance
with
GAAP.
The
Company's
method
for
calculating
gross
profit
excluding
these
items
may
not
be
comparable
to
methods
used
by
other
companies. |
 Reconciliation
of Non-GAAP Measures 18
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)
(Dollars in millions, except per share data)
Note:
Numbers
in
the
Corporateand
interest
expense
section
abovemay
berounded
for
presentation
purposes.
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
unaudited
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
operating
activities
is
generally
viewed
as
providing
useful
information
regarding
a
company's
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)
before
taxes
or
other
consolidated
income
data
prepared
in
accordance
with
GAAP.
The
Company's
method
for
calculating
income
(loss)
excluding
these
items
may
not
be
comparable
to
methods
used
by
other
companies. |
 Market
Indicators Source: JP Morgan, RMA, Energy Information Administration, Dec 2013
Sources: RVIA Forecasts, Dec 2013;
FRB G17 Release, Feb 2014
19 |
 |