Myers Industries Reports Third Quarter and Nine Month Results
AKRON, Ohio--Oct. 19, 2001--Myers Industries, Inc. today announced that net sales for the third quarter ended September 30, 2001, were $141,446,944, a decrease of 8 percent from the $153,547,329 reported in 2000. Net income was $1,690,795, a decrease of 46 percent compared to the $3,149,409 in last year's third quarter. Net income per share finished at $.07, a decrease of 46 percent compared with $.13 in the third quarter a year ago.For the nine months ended September 30, 2001, net sales of $459,444,809 were down 5 percent from the $481,368,864 reported for the same period in 2000. Net income was $12,858,865, a 34 percent decrease from net income of $19,540,144 a year ago. Net income per share was $.54, a 34 percent decrease from the $.82 reported for the comparable period last year. All per share figures have been adjusted for the 10 percent stock dividend paid in August, 2001.
Excluding contributions from acquisitions, net sales would have decreased 11 percent for the third quarter and 7 percent for the nine months.
Stephen E. Myers, the Company's president and chief executive officer, said, "Third quarter results were disappointing and demonstrate that while we are quite diversified, we are not immune to the recession experienced in most manufacturing enterprises since late 2000."
Segment Report: Third Quarter and Nine Months
In the manufacturing segment, third quarter net sales of polymer products were down 9 percent compared to 2000. Economic conditions continued to depress demand in industrial, transportation, and automotive markets, where most companies have limited spending because their own revenues and profits are under pressure. Although raw material prices were lower during the quarter, the benefits were offset by soft demand and decreased absorption of fixed costs from lower production levels. For the nine months, net sales were down 5 percent from last year's results. Excluding acquisitions, manufacturing segment net sales were 13 percent lower for the quarter and 8 percent lower for the nine months.
Compared to the same periods in 2000, distribution segment net sales were down 4 percent for the quarter and the nine months. Profitability improved over the comparable periods as a result of a favorable product ratio of consumable supplies to capital equipment.
Debt Reduction
Debt reduction, as stated before, is a high priority for the Company. Strong cash flow allowed total debt to be reduced by $9.1 million during the third quarter. For the nine months, total debt has been reduced by $21.2 million.
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 service and undervehicle repair industry in the United States. Myers has 25 manufacturing facilities in North America and Europe, 42 domestic and five international distribution branches, more than 20,000 products, and more than 4,200 employees. The Company reported net sales of $652.7 million in 2000. Visit www.myersind.com to learn more.
Forward-Looking Statements: Statements in this release may include "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could cause actual results to materially differ from those expressed or implied. Any statement that is not of historical fact may be deemed "forward-looking." Myers Industries does not undertake to update forward-looking statements contained herein.
MYERS INDUSTRIES, INC.
CONDENSED STATEMENT OF INCOME
Quarter Ended
September 30,
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2001 2000
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Net Sales $ 141,446,944 $153,547,329
Cost of Sales 95,476,662 105,731,685
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Gross Profit 45,970,282 47,815,644
Operating Expenses 38,280,216 36,830,601
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Operating Income 7,690,066 10,985,043
Interest Expense 4,426,271 5,580,634
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Income Before Income Taxes 3,263,795 5,404,409
Income Taxes 1,573,000 2,255,000
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Net Income $ 1,690,795 $3,149,409
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Net Income Per Share* $.07 $.13
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Average Shares Outstanding* 23,816,516 23,745,197
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Nine Months Ended
September 30,
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2001 2000
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Net Sales $ 459,444,809 $481,368,864
Cost of Sales 304,292,445 319,464,820
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Gross Profit 155,152,364 161,904,044
Operating Expenses 117,420,535 111,765,543
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Operating Income 37,731,829 50,138,501
Interest Expense 15,012,964 16,477,357
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Income Before Income Taxes 22,718,865 33,661,144
Income Taxes 9,860,000 14,121,000
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Net Income $ 12,858,865 $19,540,144
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Net Income Per Share(a) $.54 $.82
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Average Shares Outstanding(a) 23,788,242 23,897,048
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of September 30, 2001 and 2000
2001 2000
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Assets
Current Assets $ 194,793,805 $ 212,354,135
Other Assets 199,592,994 185,740,435
Property, Plant,
and Equipment 193,680,542 181,730,360
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$ 588,067,341 $579,824,930
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Liabilities and
Shareholders' Equity
Current Liabilities $ 96,483,994 $ 98,992,023
Long Term Debt 261,577,625 267,872,452
Deferred Income Taxes 10,973,000 9,983,938
Shareholders' Equity 219,032,722 202,976,517
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$ 588,067,341 $ 579,824,930
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(a) Adjusted for a 10 percent stock dividend paid in August 2001.