Myers Industries Reports 2012 Second Quarter Results
AKRON, Ohio, Jul 19, 2012 (BUSINESS WIRE) --
Copyright Business Wire 2012
--Adjusted EPS $0.17 compared with $0.14 in 2Q 2011
--Gross margin increased to 26.2% versus 25.1% for 2Q 2011
--Recently announced Novel acquisition to become part of Material Handling Segment
Myers Industries, Inc. (NYSE: MYE) today announced results for the
second quarter ended June 30, 2012.
Net sales for the second quarter were $181.1 million compared to $177.3
million in the second quarter of 2011. The net increase in sales of 2.2%
was the result of strong sales performance in the Engineered Products
Segment combined with a moderate sales increase in the Lawn & Garden
Segment which more than offset lower sales in the Material Handling
Segment and a sales decline in the Distribution Segment. Gross margin
expanded to 26.2% in the second quarter of 2012 compared to 25.1% in the
second quarter of 2011. The expansion was due mostly to reduced costs
and productivity improvements resulting from continued execution of the
Company's operations excellence initiatives.
Net income in the second quarter of 2012 was $5.7 million or $0.17 per
diluted share compared to net income in the second quarter of 2011 of
$4.7 million or $0.13 per diluted share. Net income in the second
quarter of 2012 included approximately $0.3 million of special net
pre-tax costs while net income in the second quarter of 2011 included
approximately $0.6 million of special pre-tax costs. Details regarding
the special pre-tax costs for both quarters are provided on the Reconciliation
of Non-GAAP Financial Measures included in this release.
Earnings per diluted share as adjusted for these special items were
$0.17 in the second quarter of 2012 compared to $0.14 in the second
quarter of 2011.
President and Chief Executive Officer John C. Orr said, "We met our
expected operating results for the quarter despite some challenging
economic conditions. We expect that our full-year results will show
continued solid performance. At the beginning of July, we announced that
we acquired Plasticos Novel Do Nordeste S.A. (R) (Novel), one
of Brazil's leading designers and manufacturers of plastic totes and
crates used for closed-loop shipping and storage in the region's fast
growing food and agriculture industries. The acquisition fits our
Material Handing Segment's strategy of geographic expansion in North and
South America, growing our more profitable end markets and leveraging
our strong existing position."
The results below are as adjusted and exclude
special pre-tax costs as detailed on the Reconciliation of
Non-GAAP Financial Measures included in this release.
The Material Handling Segment's net sales in the second quarter
of 2012 were $60.3 million compared to $67.0 million in the second
quarter of 2011. An anticipated delay in customer orders resulting from
a shift in demand from the second quarter to the second half of this
year caused the sales decrease during the quarter. Material Handling's
income before taxes was $9.2 million in the second quarter of 2012
compared to $8.4 million in the second quarter of 2011. The segment
benefited from our focus on our operations excellence initiatives and
lower manufacturing costs which led to the 9.8% increase in income
before taxes, despite lower year-over-year sales.
The Lawn & Garden Segment's net sales in the second quarter
of 2012 increased to $42.5 million as compared to $41.8 million in the
second quarter of 2011. Sales volume was lower than anticipated in the
second quarter as customers chose to continue to deplete their
inventories and limit production during the quarter. Lawn & Garden's
loss before taxes in the second quarter of 2012 was $1.5 million
compared to a loss of $1.6 million in the second quarter of 2011. Higher
freight costs during the quarter partially offset the income generated
by the increased sales volume.
The Distribution Segment's net sales were $44.2 million in
the second quarter of 2012 compared to $46.1 million in the second
quarter of 2011. The sales decline was a result of slower customer
demand during the quarter. Distribution's income before taxes was $4.1
million in the second quarter of 2012 compared to $4.5 million in the
second quarter of 2011. The decrease in income before taxes is mostly
attributable to the lower sales volume and higher freight costs during
The Engineered Products Segment's net sales were $38.6 million in
the second quarter of 2012 compared to $27.9 million in the second
quarter of 2011. Continued strong sales in the transplant auto market
mostly due to a year-over-year rebound combined with a sales increase in
the marine, recreational vehicle, and custom markets generated the 38.5%
increase in sales year-over-year. Engineered Product's income before
taxes was $4.7 million in the second quarter of 2012 compared to $2.7
million in the second quarter of 2011. The increased income before taxes
during the quarter resulted from the higher sales volume and the ongoing
execution of our operations excellence initiatives.
Cash flow provided by operations for the six months ended June 30, 2012
was $7.9 million compared to $8.8 million for the six months ended June
Other Financial Items
Capital expenditures totaled $8.4 million for the six months ended June
30, 2012 and are forecasted to be approximately $30 million in 2012.
At June 30, 2012, debt, net of cash, was $66.5 million compared to $67.2
million at December 31, 2011.
On July 9, 2012, the Company announced that it had completed the
acquisition of Brazil's Plasticos Novel. The purchase price was $27.5
million, subject to certain adjustments. Novel's annual net sales in
2012 are projected to be $38 million. Novel complements the Company's
existing material handling business in Brazil and furthers our strategic
At the end of the quarter, the Company positioned cash for the closing
of the Novel acquisition by drawing on its line of credit. The
transaction resulted in an increase to both cash and long-term debt as
of June 30, 2012.
Second Half and Full Year 2012 Outlook
The Company expects some mixed trends in the second half of 2012.
Results should benefit from the shifting of orders from the second
quarter to late in the second half of 2012 as well as from the Company's
operations excellence program. However, the soft economy may offset a
portion of these benefits. The Company expects full-year results to
reflect continued solid performance.
Conference Call Details
The Company will host an earnings conference call and webcast for
investors and analysts on Thursday, July 19, 2012 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. The call will be available as a webcast through the Company's
web site, www.myersindustries.com.
Click on the Investor Relations tab to access the webcast. Webcast
attendees will be in a listen-only mode. An archived replay of the call
will also be available on the site shortly after the event. To listen to
a telephone replay, callers should dial: (US) 877-660-6853 or (Int'l)
201-612-7415. The replay passcodes are: Account # 286; Conference ID #
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. The Company reported net sales from
continuing operations of $755.7 million in 2011. 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; ability to weather the current
economic downturn; 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.
Note: Numbers in the Corporate and interest expense section above may be
rounded 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
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 operational 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.
SOURCE: Myers Industries, Inc.