Myers Industries Announces Fourth Quarter and Year-End Results
AKRON, Ohio--Feb. 9, 2001--Myers Industries, Inc. (AMEX:MYE) today announced that for the fourth quarter ended December 31, 2000, net sales were $171.3 million, up 3 percent from the $166.6 million reported a year earlier. Net income was $4.5 million, down 54 percent from the $9.8 million in 1999, and net income per share was $.21, down 52 percent from $.44 per share last year. Both net income and net income per share figures include a $1.9 million, or $.09 per share, after-tax restructuring charge taken in the fourth quarter for the closing of the Company's Dayton, Ohio manufacturing facility.For the year ended December 31, 2000, net sales were a record $652.7 million, 12 percent greater than the $580.8 million reported in 1999. Including the fourth quarter restructuring charge, net income for the year was $24.0 million, down 23 percent from $31.2 million in 1999, and net income per share was $1.11, a 21 percent decrease from the $1.41 earned last year.
Stephen E. Myers, President and Chief Executive Officer, said "While we achieved record sales for the ninth straight year, we declined in profitability. Several factors adversely affected the Company during the year. Resin prices, mainly for high-density polyethylene, were up nearly 50 percent on average from 1999 during the first half of the year. Competitive pressures intensified in the markets for the Company's plastic products, making it difficult to offset the higher material costs with increased sales prices. Additionally, softness in the U.S. automotive aftermarket hampered growth in our distribution segment."
Other factors impacted the Company in the fourth quarter. "The continued decline in heavy duty truck production, the slowing of automotive production, and the slowing of the U.S. economy all combined to restrict our performance," Myers said. The Company also incurred start-up costs for a new manufacturing facility in Nevada, and a $1.9 million restructuring charge for closing the Ohio manufacturing plant, a move aimed at improving efficiency and capacity utilization at other Myers Industries facilities.
Excluding contributions from acquisitions, total net sales would have increased 1 percent for the quarter and would have increased 3 percent for the year. On a segment basis, sales in the distribution segment decreased 3 percent for the quarter and 2 percent for the year, compared to 1999. Sales of capital equipment, the more cyclical part of the distribution business, continued to be weak. In the manufacturing segment, sales increased 5 percent over last year's fourth quarter results and 18 percent over the comparable 12 months. Excluding acquisitions, sales in the manufacturing segment increased 2 percent for the quarter and 5 percent for the year.
The translation effect of the euro weakened both total sales and manufacturing segment sales. Total sales and manufacturing segment sales were reduced $6.9 million for the quarter and $20.0 million for the year. Without the translation effect and excluding acquisitions, total sales would have increased 5 percent for the quarter and 6 percent for the year, and manufacturing segment sales would have increased 8 percent for the quarter and 6 percent for year. The translation effect also decreased net income $105,000 for the quarter and $335,000 for the year.
MYERS INDUSTRIES, INC.
CONDENSED STATEMENT OF INCOME
Quarter Ended Year Ended
December 31, December 31,
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2000 1999 2000 1999
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Net Sales $171,291,035 $166,602,446 $652,659,900 $580,760,740
Cost of Sales 115,617,125 103,110,646 435,081,945 367,635,460
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Gross Profit 55,673,910 63,491,800 217,577,955 213,125,280
Operating Expenses 42,542,551 42,279,525 154,308,093 143,618,125
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Operating Income 13,131,359 21,212,275 63,269,862 69,507,155
Interest Expense 5,882,896 4,966,679 22,360,255 15,205,809
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Income Before
Income Taxes 7,248,463 16,245,596 40,909,607 54,301,346
Income Taxes 2,788,000 6,471,000 16,909,000 23,125,000
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Net Income $4,460,463 $9,774,596 $24,000,607 $31,176,346
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Net Income
Per Share(a) $.21 $.44 $1.11 $1.41
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Average Shares
Outstanding(a) 21,585,434 22,066,270 21,693,244 22,183,612
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of December 31, 2000 and 1999
2000 1999
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Assets
Current Assets $219,307,253 $206,990,990
Other Assets 201,291,971 203,923,134
Property, Plant,
and Equipment 204,197,700 189,495,508
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$624,796,924 $600,409,632
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Liabilities and
Shareholders' Equity
Current Liabilities $115,583,184 $102,244,419
Long Term Debt 284,273,097 280,103,906
Deferred Income Taxes 11,037,935 10,314,490
Shareholders' Equity 213,902,708 207,746,817
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$624,796,924 $600,409,632
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(a)Adjusted for a ten percent stock dividend paid in August, 2000.