News Column

Myers Industries Reports 2014 Second Quarter Results

July 28, 2014



ENP Newswire - 28 July 2014

Release date- 25072014 - Akron, Ohio - Myers Industries, Inc. (NYSE: MYE) today announced results for the second quarter ended June 30, 2014.

'We are pleased that adjusted EPS for the second quarter was up 4.8% over the second quarter of last year. The Material Handling Segment realized strong sales in its agriculture markets, however profits were somewhat impacted due to a competitive pricing pressure in one of its businesses. In addition, the segment was also impacted by a significant slowdown in orders and sales in Brazil as a result of the World Cup activities.

Looking forward to the second half of the year, we are adjusting our cost and pricing structure to positively overcome the pricing pressure we saw in the second quarter. We anticipate that both sales and adjusted income from continuing operations will show improvement compared to last year as a result of organic growth and cost savings. The stronger second half of the year is also expected to result in improved results for continuing operations for the full year compared to last year,' said John C. Orr, President and Chief Executive Officer.

'We are excited that we have completed the acquisition of Scepter and look forward to a quick and efficient integration of the organization and its employees into Myers Industries. In addition, with the sale of non-strategic WEK Industries, we are now focused on opportunities to profitably grow Material Handling and Distribution, while enhancing Myers' overall free cash flow generation, return on invested capital and shareholder value,' said Orr.

Segment Results

The results below are as adjusted and exclude restructuring and other unusual pre-tax charges as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release. Net sales in the Material Handling Segment for the second quarter of 2014 increased 2.5% to $103.0 million compared to $100.5 million for the second quarter of 2013. Sales increases in the agriculture market were partially offset by lower sales volumes in Brazil due to the economic slowdown caused by World Cup activities.

Material Handling's adjusted income before taxes was $12.2 million for the second quarter of 2014 compared to $13.4 million for the second quarter of 2013. Competitive pricing pressure in one of the segment's businesses and the lower sales volumes in Brazil led to the decline in adjusted income before taxes year-over-year.

Net sales in the Distribution Segment were $49.8 million for the second quarter of 2014 compared to $53.2 million for the second quarter of 2013. Sales decreased year-over-year primarily due to the segment's Canadian branch closures in the first quarter of 2014 and lower custom sales. Distribution's adjusted income before taxes was $5.4 million for the second quarter of 2014 compared to $6.0 million for the second quarter of 2013. The lower custom sales and higher logistics costs during the quarter led to the decrease in adjusted income before taxes compared to the second quarter of last year.

Other Items

For the six months ended June 30, 2014, cash flow used for continuing operations was $6.8 million compared to cash flow provided by continuing operations of $13.6 million for the six months ended June 30, 2013. Capital expenditures for continuing operations totaled $7.0 million for the six months ended June 30, 2014.

The Company purchased $44.4 million of its common stock during the six months ended June 30, 2014. On June 2, 2014, the Company announced that it had engaged the investment bank William Blair & Company to commence the sale of its Lawn and Garden Segment. On June 24, 2014, the Company announced that it had completed the sale of WEK Industries, Inc. for approximately $20 million.

The sale of WEK Industries resulted in a pre-tax gain of $3.7 million which is included in discontinued operations. On July 2, 2014, the Company completed the acquisition of Scepter expanding its Material Handling business to include new customers, products, technologies and international markets. The objective of the combined transactions is to streamline the Company's business portfolio and focus on higher return growth opportunities.

The Company also announced that starting with the second quarter 2014 and going forward, the Company will report its operating results in two reportable segments: Material Handling and Distribution. Ameri-Kart which was previously part of the Engineered Products Segment will be part of the Material Handling Segment and Patch Rubber Company which was also previously part of the Engineered Products Segment will be part of the Distribution Segment. WEK Industries, Inc. and the Lawn and Garden Segment will be reported as discontinued operations.

2014 Outlook

The Company anticipates that full year adjusted earnings from continuing operations (excluding restructuring and other unusual pre-tax charges) will increase year-over-year as a result of organic growth and new product sales coupled with cost savings driven by productivity improvements. The acquisition of Scepter will also contribute to both sales and earnings during the second half of the year.

About Myers Industries

Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, manufacturing, commercial, and consumer markets. The Company is also the largest wholesale distributor of tools, equipment and supplies for the tire, wheel and under vehicle 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; harsh weather conditions; 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 plan 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.

Contact:

Gregg Branning

Tel: (330) 761-6303

Monica Vinay

Investor Relations

Tel: (330) 761-6212


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Source: ENP Newswire


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