Myers Industries Reports Fourth Quarter and Fiscal Year 2004 Results
AKRON, Ohio--Feb. 1, 20057, 2005--Myers Industries, Inc. today reported that net sales for the fourth quarter ended December 31, 2004 set a quarterly record of $221,415,871, an increase of 25 percent from the $176,507,020 reported in 2003. Excluding favorable foreign currency translation of $4.4 million and contributions of $24.2 million from the acquisitions of ATP Automotive (Michigan Rubber Products and WEK Industries) and Pro Cal, total net sales increased $16.3 million or 9 percent for the fourth quarter. Net income was $6,930,355, an increase of 59 percent from $4,350,446 in the fourth quarter of 2003. Net income per share was $.20, an increase of 54 percent from $.13 earned in the fourth quarter of 2003. Foreign currency translation did not have a significant effect on net income for the quarter.For the year ended December 31, 2004, net sales were a record $803,070,387, an increase of 21 percent from the $661,091,504 reported for 2003. Excluding favorable foreign currency translation of $19.3 million and contributions of $67.3 million from the acquisitions, net sales increased $55.4 million or 8 percent for the year. Net income was $25,709,760, an increase of 57 percent from $16,325,516 in 2003. Net income per share was $.76, an increase of 55 percent from the $.49 earned in 2003. Net income includes a gain of approximately $914,000 from the sale of a warehouse facility in California in the third quarter and favorable foreign currency effects of $520,000.
Stephen E. Myers, chairman and chief executive officer, said, "Although earnings are not at record levels, we are pleased with our strong performance in the fourth quarter and the year. Sales, generated by both internal growth and acquisitions, reached new highs. Earnings in 2004 benefited from some modest product price increases and from our strenuous efforts to manage costs and resources. Through those endeavors, the Company was able to lessen some of the effects of unrelenting price increases for plastic raw materials, to which it continued to be subject throughout the year."
Business Segment Overview
In the manufacturing segment, sales increased 31 percent for the fourth quarter and 25 percent for the year compared to 2003 results for the same periods. Excluding contributions from acquisitions and favorable foreign currency translation, sales in the segment increased 10 percent and 8 percent for the fourth quarter and full year, respectively. Sales to industrial markets, emerging from their weak purchasing record in 2003, and steady growth from both existing and new customers in the horticulture, heavy truck, recreational vehicle, and automotive markets, were major factors for the increased volume in 2004.
Resin prices in the fourth quarter were approximately 45 percent higher on average than those paid by the Company in the fourth quarter of 2003. For the full year, prices were up approximately 22 percent compared to 2003. At the start of 2005, raw material prices continue to increase.
Sales in the distribution segment increased 4 percent for the fourth quarter and 8 percent for the year, compared to the same periods of 2003. Throughout the year, the distribution segment benefited from increased purchasing of tire service supplies and equipment by tire dealers, auto dealers, and national accounts.
Cash Flow & Debt Reduction
Acquisitions added $78.8 million in total debt, including cash outlay and debt assumption. The Company paid down debt by $16.9 million in 2004, bringing the net increase in total debt for the year to $61.9 million. As a result, the Company ended the year at December 31, 2004, with total debt of $277.4 million compared to $215.5 million at December 31, 2003. Long-term debt as a percentage of total capitalization was 44 percent at December 31, 2004, compared to 42 percent at the same time last year.
NOTE: The Company will not conduct a conference call to discuss the results.
About Myers Industries
Myers Industries, Inc. is a diversified 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 31 manufacturing facilities in North America and Europe, 39 domestic and five international distribution branches, and more than 5,300 employees. Visit www.myersind.com to learn more about the company and its products.
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 STATEMENTS OF INCOME
Quarter Ended Year Ended
December 31, December 31,
------------------------- -------------------------
2004 2003 2004 2003
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Net Sales $221,415,871 $176,507,020 $803,070,387 $661,091,504
Cost of Sales 156,390,255 123,946,045 564,295,649 460,803,696
------------ ------------ ------------ ------------
Gross Profit 65,025,616 52,560,975 238,774,738 200,287,808
Operating Expenses 52,153,183 43,727,045 188,248,826 165,566,855
------------ ------------ ------------ ------------
Operating Income 12,872,433 8,833,930 50,525,912 34,720,953
Gain on Sale
of Plant 0 0 1,524,598 0
Interest
Expense 3,748,078 2,524,484 13,321,750 10,074,437
------------ ------------ ------------ ------------
Income Before
Income Taxes 9,124,355 6,309,446 38,728,760 24,646,516
Income Taxes 2,194,000 1,959,000 13,019,000 8,321,000
------------ ------------ ------------ ------------
Net Income $6,930,355 $4,350,446 $25,709,760 $16,325,516
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Net Income Per
Share(a) $.20 $.13 $.76 $.49
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Average Shares
Outstanding(a) 34,594,582 33,185,491 33,846,511 33,138,086
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CONDENSED STATEMENTS OF FINANCIAL POSITION
As of December 31, 2004 and 2003
2004 2003
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Assets
Current Assets $280,072,178 $207,933,141
Other Assets 291,041,594 229,849,237
Property,
Plant, and
Equipment 210,488,790 183,844,428
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$781,602,562 $621,626,806
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Liabilities and
Shareholders'
Equity
Current
Liabilities $132,251,927 $94,175,497
Long Term Debt 275,252,278 211,002,691
Deferred
Income Taxes 28,094,321 21,924,269
Shareholders'
Equity 346,004,036 294,524,349
------------ ------------
$781,602,562 $621,626,806
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(a) Adjusted for a 10% Stock Dividend paid in August, 2004.