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Exhibit 99.1

 

LOGO

News Release

NYSE: MYE

Contact(s):

Gregg Branning, Senior Vice President

& Chief Financial Officer (330) 761-6303

Monica Vinay, Vice President, Investor

Relations & Treasurer (330) 761-6212

Myers Industries Reports 2015 Third Quarter Results

3rd Quarter 2015 Adjusted Earnings Per Share from Continuing Operations of $0.09,

which included a $0.03 per share non-cash charge related to additional stock

compensation expense

October 29, 2015, Akron, Ohio - Myers Industries, Inc. (NYSE: MYE), a leading provider of highly engineered material handling solutions and tire repair and retread products to industrial end markets, today announced results for the third quarter ended September 30, 2015.

Financial Highlights

 

    Net sales for the third quarter of 2015 decreased 12.6% (or 7.9% excluding currency fluctuation), compared to the third quarter of 2014, to $141.7 million due to continued weak demand in the Material Handling Segment’s agricultural end market.

 

    Gross profit margin for the third quarter of 2015 increased (470 basis points), compared to the third quarter of 2014, to 29.4% driven by cost reduction activities and strategic pricing actions.

 

    Adjusted income per diluted share from continuing operations for the third quarter of 2015 increased by 28.6%, compared to the third quarter of 2014, from $0.07 to $0.09. For the nine months ended September 30, 2015, adjusted income per diluted share increased by 25.6%, compared to the same period in 2014, from $0.43 to $0.54.

 

    Repurchased $12 million (or 848,586 shares) of common stock at an average price of $14.18 during the third quarter of 2015.

 

    During the quarter, additional stock compensation expense was incurred for retirement eligible employees as defined by the Company’s executive stock compensation plan, which resulted in a $0.03 reduction to earnings per share in the quarter.

President and Chief Executive Officer John C. Orr commented, “The decline in our Material Handling Segment’s third quarter 2015 sales was primarily due to the impact of weak demand in the agricultural end market, the strengthening dollar and the previously disclosed customer acceleration of orders that took place in the second quarter. Excluding the impacts of foreign currency, we did see strong sales growth in other material handling products, including increases of products that serve food processing and automotive end markets. We are also pleased with our ability to drive profitability improvements in the business despite lower sales during the quarter. Adjusted earnings per diluted share for the third quarter increased as a result of ongoing cost saving initiatives and strategic pricing actions, and we’ve generated positive cash flow from continuing operations of $7.1 million year-to-date compared to a use of operating cash flow in the prior year period. We believe that our continued focus on these initiatives combined with the growth investments we are making, provide a strong foundation for sustained profitability improvement and earnings growth in the future.”


Summary

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2015     2014     % Increase
(Decrease)
    2015     2014     % Increase
(Decrease)
 
     (Unaudited dollars in thousands, except per share data)  

Net sales

   $ 141,661      $ 162,109        (12.6 )%    $ 462,344      $ 465,378        (0.7 )% 

Gross profit

   $ 41,686      $ 39,961        4.3   $ 138,024      $ 124,564        10.8

Gross profit margin

     29.4     24.7       29.9     26.8  

Income (loss) from continuing operations before income taxes

   $ 849      $ (5,315     116.0   $ 22,138      $ 11,603        90.8

Income (loss) from continuing operations:

            

Income (loss)

   $ 631      $ (3,618     117.4   $ 14,178      $ 7,472        89.7

Income (loss) per diluted share

   $ 0.02      $ (0.11     118.2   $ 0.45      $ 0.23        95.7

Income from continuing operations before income taxes as adjusted*

   $ 4,166      $ 3,673        13.4   $ 24,844      $ 22,636        9.8

Income from continuing operations as adjusted*:

            

Income

   $ 2,812      $ 2,314        21.5   $ 16,770      $ 14,261        17.6

Income per diluted share

   $ 0.09      $ 0.07        28.6   $ 0.54      $ 0.43        25.6

 

* Details regarding the pre-tax adjusted charges (benefits) are on the Reconciliations of Non-GAAP Financial Measures included in this release.

Segment Results

The results below are as adjusted and exclude restructuring and other unusual pre-tax charges (benefits) as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release.

Net sales in the Material Handling Segment for the third quarter of 2015 were $92.5 million compared to $112.3 million in the third quarter of 2014. The decline in sales was primarily the result of lower demand from the agricultural end market and currency fluctuations. Material Handling’s adjusted income before taxes was $8.6 million for the third quarter of 2015 or 3.6% higher than the third quarter of 2014, which was $8.3 million. The improvement in profitability was primarily the result of reduced labor and overhead costs, pricing actions and lower selling, general and administrative expenses, partially offset by an unfavorable change in product mix resulting from the significantly lower sales to the agricultural end market.

Net sales in the Distribution Segment for the third quarter of 2015 were $49.2 million compared to $49.9 million for the third quarter of 2014. The decline in sales was primarily the result of lower demand in some geographic markets, partially due to the stronger U.S. dollar. Distribution’s adjusted income before taxes for the third quarter of 2015 was $5.7 million or 32.6% higher than the third quarter of 2014, which was $4.3 million. The improvement in profitability was primarily the result of reduced operating costs and lower selling, general and administrative expenses.

Other Financial Items

For the nine months ended September 30, 2015, cash flow provided by continuing operations was $7.1 million compared to cash flow used for continuing operations of $2.8 million for the nine months ended September 30, 2014.

Capital expenditures totaled $17.7 million for the nine months ended September 30, 2015. The Company continues to estimate that capital expenditures for continuing operations in 2015 will be approximately $25 to $30 million and that approximately 70% will be for new product, growth and productivity projects.

The Company purchased 848,586 shares of its common stock during the third quarter of 2015 at an average price of $14.18. For the nine months ended September 30, 2015, the Company purchased 1,218,786 shares of its common stock at an average price of $15.28. As of September 30, 2015, approximately 3.2 million shares were available for repurchase under the Company’s current board authorization.

Long-term debt at September 30, 2015 decreased to $214.7 million compared to $236.4 million at December 31, 2014.


Fourth Quarter Outlook

Headwinds from the challenged agricultural end markets are expected to continue during the fourth quarter. However, profitability is expected to improve on a year-over-year basis as a result of the benefits of new product and service introductions and ongoing strategic actions focused on cost reductions and pricing initiatives.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, October 29, 2015 at 10:00 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. A live and archived webcast of the conference call can be accessed from the Investor Relations section of the Company’s website at www.myersindustries.com. Click on the Investor Relations tab to access the webcast. Webcast attendees will be in a listen-only mode. An archived telephone replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (US) 877-660-6853 or (Int’l) 201-612-7415. The replay passcode is Conference ID #13622127.

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. Visit www.myersindustries.com to learn more.

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 management’s current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company’s control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: changes in the markets for the Company’s 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; 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 Company’s ability to execute the components of its Strategic Business Evolution process; and other risks as detailed in the Company’s 10-K and other reports filed with the Securities and Exchange Commission. Such reports are available on the Securities and Exchange Commission’s public reference facilities and its web site at http://www.sec.gov, and on the Company’s 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, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share data)

 

     For the Quarter Ended     For the Nine Months Ended  
     September 30,
2015
    September 30,
2014
    September 30,
2015
     September 30,
2014
 

Net sales

   $ 141,661      $ 162,109      $ 462,344       $ 465,378   

Cost of sales

     99,975        122,148        324,320         340,814   
  

 

 

   

 

 

   

 

 

    

 

 

 

Gross profit

     41,686        39,961        138,024         124,564   

Selling, general and administrative expenses

     39,108        42,639        108,987         107,073   
  

 

 

   

 

 

   

 

 

    

 

 

 

Operating income (loss)

     2,578        (2,678     29,037         17,491   

Interest expense, net

     1,729        2,637        6,899         5,888   
  

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations before income taxes

     849        (5,315     22,138         11,603   

Income tax expense (benefit)

     218        (1,697     7,960         4,131   
  

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations

     631        (3,618     14,178         7,472   

Income (loss) from discontinued operations, net of income taxes

     (298     875        2,813         (3,786
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss)

   $ 333      $ (2,743   $ 16,991       $ 3,686   
  

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) per common share from continuing operations:

         

Basic

   $ 0.02      $ (0.11   $ 0.46       $ 0.23   

Diluted

   $ 0.02      $ (0.11   $ 0.45       $ 0.23   

Income (loss) per common share from discontinued operations:

         

Basic

   $ (0.01   $ 0.02      $ 0.09       $ (0.12

Diluted

   $ (0.01   $ 0.02      $ 0.09       $ (0.12

Net income (loss) per common share:

         

Basic

   $ 0.01      $ (0.09   $ 0.55       $ 0.11   

Diluted

   $ 0.01      $ (0.09   $ 0.54       $ 0.11   

Weighted Average Common Shares Outstanding

         

Basic

     30,674,604        31,641,680        30,873,594         32,510,415   

Diluted

     30,950,572        31,641,680        31,213,082         32,999,382   


MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2015     2014     % Change     2015     2014     % Change  

Net Sales from Continuing Operations

      

Material Handling

   $ 92,479      $ 112,277        (17.6 )%    $ 320,534      $ 322,000        (0.5 )% 

Distribution

     49,212        49,908        (1.4 )%      141,909        143,580        (1.2 )% 

Inter-company Sales

     (30     (76     —          (99     (202     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 141,661      $ 162,109        (12.6 )%    $ 462,344      $ 465,378        (0.7 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (Loss) from Continuing

      

Operations Before Income Taxes

      

Material Handling

   $ 7,369      $ (426     —        $ 41,622      $ 23,879        74.3

Distribution

     5,558        4,133        34.5     13,557        12,716        6.6

Corporate

     (12,078     (9,022     —          (33,041     (24,992     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 849      $ (5,315     116.0   $ 22,138      $ 11,603        90.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT (UNAUDITED)

(Dollars in millions, except per share data)

 

   
     Quarter Ended September 30,     Nine Months Ended September 30,  
     2015     2014     2015     2014  

Material Handling

        

Income (loss) from continuing operations before income taxes as reported

   $ 7.4      $ (0.4   $ 41.6      $ 23.9   

Patent infringement lawsuit

     —          3.0        (3.0     3.0   

Transaction costs - Scepter acquisition

     —          2.9        —          2.9   

Inventory step-up - Scepter acquisition

     —          2.3        —          2.3   

Restructuring expenses and other adjustments

     1.2        0.5        1.8        1.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes as adjusted

     8.6        8.3        40.4        33.2   

Distribution

        

Income from continuing operations before income taxes as reported

     5.6        4.1        13.6        12.7   

Restructuring expenses and other adjustments

     0.1        0.2        0.2        1.0   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes as adjusted

     5.7        4.3        13.8        13.7   

Corporate and interest expense

  

(Loss) before income taxes as reported

     (12.1     (9.0     (33.1     (25.0

Environmental reserve

     1.3        —          1.3        —     

Transaction costs, professional and legal fees and other adjustments

     0.7        0.1        2.4        0.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and interest expense as adjusted

     (10.1     (8.9     (29.4     (24.3

Continuing Operations

        

Income (loss) from continuing operations before income taxes as reported

     0.9        (5.3     22.1        11.6   

Total of all adjustments above

     3.3        9.0        2.7        11.0   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes as adjusted

     4.2        3.7        24.8        22.6   

Income taxes*

     1.4        1.4        8.0        8.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations as adjusted

   $ 2.8      $ 2.3      $ 16.8      $ 14.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings per diluted share from continuing operations

   $ 0.09      $ 0.07      $ 0.54      $ 0.43   

 

* Income taxes calculated using the normalized effective tax rate for each year.

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.


MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

 

     September 30,
2015
     December 31,
2014
 

Assets

     

Current Assets

     

Cash

   $ 5,240       $ 4,676   

Accounts receivable, net

     88,190         90,664   

Inventories

     61,194         63,338   

Assets held for sale

     —           117,775   

Prepaid and other

     11,324         8,988   
  

 

 

    

 

 

 

Total Current Assets

     165,948         285,441   

Other Assets

     150,331         142,626   

Property, Plant, & Equipment, Net

     129,103         136,766   
  

 

 

    

 

 

 

Total Assets

   $ 445,382       $ 564,833   
  

 

 

    

 

 

 

Liabilities & Shareholders’ Equity

     

Current Liabilities

     

Accounts payable

   $ 58,317       $ 77,320   

Accrued expenses

     38,838         49,372   

Liabilities held for sale

     —           27,122   
  

 

 

    

 

 

 

Total Current Liabilities

     97,155         153,814   

Long-term debt, net

     214,735         236,429   

Other liabilities

     12,063         13,738   

Deferred income taxes

     16,928         14,281   

Total Shareholders’ Equity

     104,501         146,571   
  

 

 

    

 

 

 

Total Liabilities & Shareholders’ Equity

   $ 445,382       $ 564,833   
  

 

 

    

 

 

 


MYERS INDUSTRIES, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

     Nine Months Ended  
     September 30,
2015
    September 30,
2014
 

Cash Flows From Operating Activities

    

Net income

   $ 16,991      $ 3,686   

Income (loss) from discontinued operations, net of income tax

     2,813        (3,786
  

 

 

   

 

 

 

Income from continuing operations

   $ 14,178      $ 7,472   

Items not affecting use of cash

    

Depreciation

     19,216        17,749   

Amortization

     7,854        4,275   

Non-cash stock compensation

     3,989        2,413   

Accrued interest income on note receivable

     (750     —       

Other

     (463     (150

Payments on performance based compensation

     (1,318     (1,293

Other long-term liabilities

     644        1,422   

Cash flow used for working capital, net of acquisitions:

    

Accounts receivable

     (5,603     (5,584

Inventories

     (271     (15,446

Prepaid expenses

     (168     (8,933

Accounts payable and accrued expenses

     (30,170     (4,755
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities - continuing operations

     7,138        (2,830

Net cash used for operating activities - discontinued operations

     (11,330     (14,054
  

 

 

   

 

 

 

Net cash used for operating activities

     (4,192     (16,884
  

 

 

   

 

 

 

Cash Flows From Investing Activities

    

Capital expenditures

     (17,669     (10,860

Acquisition of business, net of cash acquired

     —          (157,811

Proceeds from sale of property, plant and equipment

     145        548   

Proceeds from sale of business

     69,787        —     
  

 

 

   

 

 

 

Net cash provided by (used for) investing activities - continuing operations

     52,263        (168,123

Net cash provided by (used for) investing activities - discontinued operations

     (581     12,876   
  

 

 

   

 

 

 

Net cash provided by (used for) investing activities

     51,682        (155,247
  

 

 

   

 

 

 

Cash Flows From Financing Activities

    

Proceeds from long-term debt

     —          89,000   

Net borrowing/(repayment) on credit facility

     (16,158     143,390   

Cash dividends paid

     (12,550     (11,602

Proceeds from issuance of common stock

     1,553        2,524   

Tax benefit from options

     211        681   

Repurchase of common stock

     (18,612     (48,306

Shares withheld for employee taxes on equity awards

     (975     (1,083

Deferred financing costs

     —          (543
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     (46,531     174,061   
  

 

 

   

 

 

 

Foreign exchange rate effect on cash

     (395     (111
  

 

 

   

 

 

 

Net increase (decrease) in cash

     564        1,819   

Cash at January 1

     4,676        6,539   
  

 

 

   

 

 

 

Cash at September 30

   $ 5,240      $ 8,358