Myers Industries Reports First Quarter 2003 Results
AKRON, Ohio--April 23, 2003--Myers Industries, Inc. today announced that net sales for the first quarter ended March 31, 2003 were $163,220,254, an increase of 10 percent from the $148,938,637 reported for the first quarter of 2002. Net income was $7,191,837, a decrease of 28 percent from $10,046,323 last year. Net income per share was $.24, a decrease of 29 percent compared with $.34 in the first quarter last year.The translation effect of sales in foreign currencies, mainly in the strength of the euro, increased first quarter 2003 sales by $7.1 million, or 5 percent. Foreign currency translation increased first quarter net income by $231,000, or $.01 per share.
Commenting on the Company's results, Stephen E. Myers, president and chief executive officer, said, "Although we achieved gains in sales, price increases for plastic resins reduced gross margins. Strong competition and excess capacity in the marketplace made it difficult to raise product pricing."
Myers Industries' Chief Financial Officer Greg Stodnick said, "The costs for plastic resins were up substantially versus the same period in 2002. In this challenging environment, we are taking appropriate steps to mitigate pressure on margins, however those efforts will necessarily take time to achieve full effect. We remain sharply focused on disciplined asset management and operational efficiency to strengthen our position for improved performance."
Business Segment Overview
In the manufacturing segment, sales increased 12 percent compared to the first quarter of 2002. Favorable foreign currency translation accounted for 6 percent of the increase. Demand improved from automotive and some heavy-duty manufacturing markets, as well as some niches served by the Company's engineered rubber parts. Most industrial markets, however, remained slow, retaining effects of the industrial recession. Other markets, including agriculture and horticulture, made positive contributions to sales for the quarter. To the detriment of revenues derived from Myers' consumer product lines, retail demand weakened in the first quarter in line with consumer spending and concerns about the U.S. economy.
Sales in the distribution segment were comparable to 2002 first quarter results. Customers in the Company's distribution markets limited their spending for supplies and equipment during the quarter, a normal seasonal factor reflecting light demand for tire and vehicle service.
Debt & Cash Flow
As of March 31, 2003, debt increased $9.7 million to $242.6 million compared to $232.9 million at December 31, 2002; debt at the end of the first quarter in 2002 was $262.8 million. Debt as a percentage of total capitalization was 48 percent at the end of the first quarter, compared to 54 percent at the same time last year, but unchanged from the beginning of 2003. "The Company made additional borrowings in the first quarter to fund seasonal cash flows and increased accounts receivable from sales growth," Stodnick said. "We continue to emphasize debt reduction and expect repayment to resume as the year progresses."
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 4,300 employees. 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. Any statement that is not of historical fact may be deemed "forward-looking." These statements 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. Factors include, but are not limited to: changes in the markets for the Company's business segments, unanticipated downturn in business relationships with customers or their purchases from us, competitive pressures on sales and pricing, increases in raw material costs or other production costs, and further deterioration of economic and financial conditions in the United States and around the world. Myers Industries does not undertake to update forward-looking statements contained herein.
MYERS INDUSTRIES, INC.
CONDENSED STATEMENT OF INCOME
Quarter Ended
March 31,
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2003 2002
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Net Sales $163,220,254 $148,938,637
Cost of Sales 109,376,984 94,440,273
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Gross Profit 53,843,270 54,498,364
Operating Expenses 39,937,720 34,588,345
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Operating Income 13,905,550 19,910,019
Interest Expense 2,502,713 3,042,696
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Income Before Income Taxes 11,402,837 16,867,323
Income Taxes 4,211,000 6,821,000
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Net Income $7,191,837 $10,046,323
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Net Income Per Share(a) $.24 $.34
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Average Shares Outstanding(a) 30,083,688 29,827,489
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of March 31, 2003 and 2002
2003 2002
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Assets
Current Assets $216,811,341 $204,168,999
Other Assets 213,934,795 192,418,280
Property, Plant, and Equipment 189,296,611 186,870,217
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$620,042,747 $583,457,496
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Liabilities and Shareholders' Equity
Current Liabilities $120,467,330 $103,784,542
Long Term Debt 214,911,977 243,191,707
Deferred Income Taxes 18,276,966 12,616,718
Shareholders' Equity 266,386,474 223,864,529
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$620,042,747 $583,457,496
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(a) Adjusted for a five-for-four stock split distributed in August,
2002.