Myers Industries Announces Third Quarter and Nine Month Results
AKRON, Ohio--Oct. 25, 2002--Myers Industries, Inc. today announced that net sales for the third quarter ended September 30, 2002, were $146,625,694, an increase of 4 percent from sales of $141,446,944 reported in 2001. Net income was $3,067,906, an increase of 81 percent compared to $1,690,795 last year. Net income per share increased 67 percent to $.10 versus $.06 in the third quarter a year ago.For the nine months ended September 30, 2002, net sales of $448,659,953 were down 2 percent from the $459,444,809 reported for the same period in 2001. Net income was $19,915,671, an increase of 55 percent compared to $12,858,865 a year ago. Net income per share increased 56 percent to $.67 versus $.43 from the comparable period last year.
Foreign currency translation increased total sales and manufacturing segment sales by $3.0 million for the third quarter and $2.5 million for the nine months. Currency translation had no material impact on earnings for the periods.
In accordance with SFAS 142, goodwill is no longer amortized, and income before taxes and earnings per share were favorably impacted for both the quarter and the nine months. Goodwill amortization in the corresponding periods a year ago reduced income before taxes by $2.3 million and $6.9 million, respectively, and earnings per share by $.06 and $.18, respectively.
Per share figures are adjusted for the five-for-four stock split distributed in August, 2002.
Commenting on the quarter's results, Stephen E. Myers, president and chief executive officer, said, "While we posted a modest improvement in sales for the third quarter, continued weakness in our industrial markets squeezed volume and margins in the manufacturing segment. Combined with an increase in plastic raw material costs, our profitability growth was constrained during the third quarter."
Business Segment Overview
In the manufacturing segment, sales for the third quarter increased 4 percent compared to last year's results; added to the first half results, sales for the nine months were down 3 percent from the comparable period in 2001. Product mix and demand was fragmented across many of the Company's niche markets, and uneven market conditions heightened competitive circumstances and product pricing pressures. Demand from major industrial markets remained weak throughout North America and Europe, with economic uncertainty and customers' restricted spending practices exacerbating the usual seasonal effect on Myers' sales and profits for the quarter.
In the distribution segment, sales increased 4 percent in the third quarter and increased 1 percent for the nine months, compared to the same periods last year. Sales in the quarter reflect steady demand for consumable service supplies, and after an extended period of soft demand, sales for capital equipment strengthened.
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.
There is no conference call to discuss the release. For more information, contact: Greg Stodnick, Vice President, Finance, and Chief Financial Officer, at (330) 253-5592.
Myers Industries, Inc.
CONDENSED STATEMENT OF INCOME
Quarter Ended Nine Months Ended
September 30, September 30,
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2002 2001 2002 2001
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Net Sales $146,625,694 $141,446,944 $448,659,953 $459,444,809
Cost of Sales 102,230,644 95,476,662 298,035,384 304,292,445
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Gross Profit 44,395,050 45,970,282 150,624,569 155,152,364
Operating
Expenses 36,407,957 38,280,216 108,525,868 117,420,535
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Operating
Income 7,987,093 7,690,066 42,098,701 37,731,829
Interest Expense 3,017,187 4,426,271 9,035,030 15,012,964
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Income Before
Income Taxes 4,969,906 3,263,795 33,063,671 22,718,865
Income Taxes 1,902,000 1,573,000 13,148,000 9,860,000
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Net Income $ 3,067,906 $ 1,690,795 $ 19,915,671 $ 12,858,865
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Net Income
Per Share(a) $ .10 $ .06 $ .67 $ .43
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Average Shares
Outstanding(a) 30,044,489 29,770,708 29,941,875 29,735,302
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of September 30, 2002 and 2001
2002 2001
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Assets
Current Assets $197,552,218 $194,793,805
Other Assets 205,074,435 199,592,994
Property, Plant,
and Equipment 189,358,107 193,680,542
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$591,984,760 $588,067,341
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Liabilities and
Shareholders' Equity
Current Liabilities $104,388,861 $ 96,483,994
Long Term Debt 226,865,434 261,577,625
Deferred Income Taxes 13,972,157 10,973,000
Shareholders' Equity 246,758,308 219,032,722
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$591,984,760 $588,067,341
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(a) Adjusted for a 5-for-4 stock split distributed in August, 2002.