Myers Industries Reports Second Quarter and Six Month Results
AKRON, Ohio--July 23, 2002--Myers Industries, Inc. today reported that net sales for the second quarter ended June 30, 2002 were $153,095,622, rising slightly from the $152,737,962 reported a year ago. Net income was $6,801,442, an increase of 114 percent compared to $3,181,364 last year. Net income per share was $.28, up 115 percent from $.13 in the second quarter last year.For the six months ended June 30, 2002, net sales of $302,034,259 were down 5 percent from the $317,997,865 in the first half of 2001. Net income was $16,847,765, an increase of 51 percent compared to $11,168,070 in 2001. Net income per share was $.70, up 49 percent from the $.47 reported for the same period last year.
Foreign currency translation had no material effect on sales and earnings for both the second quarter and the six months. Income before taxes and earnings per share were favorably impacted for both the quarter and the six months by the adoption of Statement of Financial Accounting Standards No. 142, which discontinued the amortization of goodwill. Goodwill amortization in the comparable quarter and six months ended June 30, 2001 reduced income before taxes by $2.3 million and $4.6 million respectively, and earnings per share by $.075 and $.15, respectively.
"We are satisfied with our earnings performance in the second quarter," said Stephen E. Myers, President and Chief Executive Officer. "Sales growth, while showing some improvement, remains constrained by the slowness of economic recovery. Demand and spending remain soft in many markets. Earnings continued to benefit from our efforts to improve our manufacturing efficiency and maintain cost control, as well as lower interest rates and favorable raw material prices."
Business Segment Overview
In the manufacturing segment, sales for the second quarter increased 1 percent compared to last year's results; for the six months, sales were down 6 percent from the comparable period in 2001. As the second quarter progressed, customer demand improved across several markets, including RV and heavy truck markets, however, the Company has not yet begun to see a sustained improvement in demand from large, industrial markets. Raw material costs for high-density polyethylene plastic resin remained lower compared to the second quarter and first half of last year. However, those prices have been increasing since the start of the second quarter.
In the distribution segment, sales were down 2 percent for the quarter and 1 percent for the six months, compared to the same periods last year. The results reflect the continuation of weak demand for capital equipment.
Debt Reduction
The Company repaid $15.1 million in debt during the second quarter. Since the beginning of the year, the Company has paid down total debt by $20.6 million, although an increase in the value of the Euro offset some of this benefit by increasing the amount of debt denominated in foreign currencies by $3.4 million. At the end of the second quarter, debt as a percentage of total capitalization was 50 percent, compared to 55 percent at the end of 2001. As previously noted, the Company remains steadfast in its intent to further strengthen the balance sheet through debt reduction.
Cautious Optimism for the Second Half
Myers Industries maintains an attitude of cautious optimism for modest year-over-year improvements in the second half of 2002, assuming the economy strengthens. "The Company remains positioned to meet customers' needs and take advantage of new opportunities when markets, in particular the industrial sector, emerge from their temper," Myers said.
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. Myers has 25 manufacturing facilities in North America and Europe, 43 domestic and five international distribution branches, more than 20,000 products, and more than 4,100 employees. For its fiscal year ended December 31, 2001, the Company recorded net sales of $608.0 million. 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 to be a forward-looking statement. Myers Industries does not undertake to update any forward-looking statements contained herein.
Myers Industries, Inc.
CONDENSED STATEMENT OF INCOME
Quarter Ended Six Months Ended
June 30, June 30,
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2002 2001 2002 2001
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Net Sales $153,095,622 $152,737,962 $302,034,259 $317,997,865
Cost of Sales 101,364,468 102,446,520 195,804,741 208,815,783
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Gross Profit 51,731,154 50,291,442 106,229,518 109,182,082
Operating Expenses 37,529,565 39,533,492 72,117,910 79,140,319
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Operating Income 14,201,589 10,757,950 34,111,608 30,041,763
Interest Expense 2,975,147 4,998,586 6,017,843 10,586,693
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Income Before
Income Taxes 11,226,442 5,759,364 28,093,765 19,455,070
Income Taxes 4,425,000 2,578,000 11,246,000 8,287,000
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Net Income $6,801,442 $3,181,364 $16,847,765 $11,168,070
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Net Income Per
Share(a) $.28 $.13 $.70 $.47
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Average Shares
Outstanding(a) 23,956,087 23,876,405 23,913,302 23,774,960
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of June 30, 2002 and 2001
2002 2001
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Assets
Current Assets $200,406,173 $195,481,033
Other Assets 205,080,811 195,692,782
Property, Plant,
and Equipment 189,083,858 199,547,551
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$594,570,842 $590,721,366
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Liabilities and
Shareholders' Equity
Current Liabilities $105,554,900 $97,552,474
Long Term Debt 229,769,835 271,104,411
Deferred Income Taxes 13,890,410 10,987,773
Shareholders' Equity 245,355,697 211,076,708
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$594,570,842 $590,721,366
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(a) Adjusted for a ten percent stock dividend paid in August, 2001.