Myers Announces Record Fourth Quarter and Year-End Results
9 February 2000
Myers Industries Announces Record Fourth Quarter and Year-End Results
AKRON, Ohio--Feb. 9, 2000--Myers Industries, Inc. (AMEX:MYE) today announced record sales and earnings for the fourth quarter and year ended December 31, 1999.Net sales for the fourth quarter were $166.6 million, up 51 percent from the $110.5 million reported a year earlier. Net income for the quarter was a record $9.8 million, up 7 percent from the $9.2 million in 1998. On a per share basis, net income was $.49, up 9 percent from 1998's $.45 per share.
For the year, net sales of $580.8 million were 48 percent greater than the $392.0 million reported in 1998. Net income for the year was $31.2 million, up 9 percent from $28.7 million in 1998. Net income per share was $1.55, a 9 percent increase from the $1.42 earned last year.
"1999 was a year of exciting change," said Stephen E. Myers, president and CEO. "We completed three acquisitions, accounting for nearly $200 million in annualized sales. In February, we closed on our purchase of Allibert Equipement, a leading French material handling products manufacturer. In July and August, we purchased Dillen Products and Listo Products, leading manufacturers of plastic flowerpots and trays for growers and plastic decorative planters for retailers and consumers. With these acquisitions we expanded manufacturing operations in Europe and North America and strengthened our existing reusable plastic container and plastic flowerpot businesses with new products, customers, and markets.
"Excluding contributions from acquisitions, total net sales would have been slightly higher for the quarter and would have increased 3 percent for the year. Operating profits in our core businesses are higher compared to 1998 results."
In the Company's manufacturing segment, sales increased 81 percent over last year's fourth quarter results and 77 percent over the comparable 12 months. Excluding acquisitions, sales in the manufacturing segment increased 2 percent for the quarter and 6 percent for the year.
Sales in the distribution segment decreased 2 percent compared with 1998 fourth quarter results and were slightly higher for the 12 months when compared to the prior year. Margins on sales, however, improved for both the quarter and the year due to more sales of higher margin consumable supplies versus lower margin equipment.
"We changed the scope of the company this year," Myers said. "Myers Industries is now an international leader in reusable plastic material handling products and we have a superior position in the plastic horticultural container business. Despite pressure from higher resin prices, and the distractions and debt from making the acquisitions, we had solid financial performance. Our focus for the near future will be to nurture the respective strengths of our acquisitions, integrate them into Myers Industries, and reduce the debt.
"We believe Myers Industries will continue to enjoy long-term sales and earnings growth."
Myers Industries, Inc., headquartered in Akron, Ohio, is an international manufacturer of plastic and rubber 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 automotive underbody repair industry in the United States.
Safe Harbor Statement: Statements in this press release may include forward looking statements that involve a number of risks and uncertainties that could cause actual results to materially differ from those discussed. For this purpose, any statement that is not a statement of historical fact may be deemed to be a forward-looking statement.
Myers Industries, Inc.
Condensed Statement of Income
Quarter Ended Year Ended
December 31, December 31,
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1999 1998 1999 1998
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Net Sales $166,602,446 $110,517,959 $580,760,740 $392,019,900
Cost of Sales 103,110,646 70,928,800 367,635,460 256,506,103
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Gross Profit 63,491,800 39,589,159 213,125,280 135,513,797
Operating Expenses 42,279,525 23,994,157 143,618,125 86,140,834
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Operating Income 21,212,275 15,595,002 69,507,155 49,372,963
Interest Expense 4,966,679 155,579 15,205,809 887,873
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Income Before
Income Taxes 16,245,596 15,439,423 54,301,346 48,485,090
Income Taxes 6,471,000 6,266,000 23,125,000 19,806,000
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Net Income $9,774,596 $9,173,423 $31,176,346 $28,679,090
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Net Income Per
Share(a) $.49 $.45 $1.55 $1.42
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Average Shares
Outstanding(a) 20,060,246 20,159,556 20,166,920 20,135,282
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Condensed Statement of Financial Position
as of December 31, 1999 and 1998
1999 1998
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Assets
Current Assets $206,990,990 $153,650,201
Other Assets 203,923,134 43,614,594
Property, Plant,
and Equipment 189,495,508 109,442,993
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$600,409,632 $306,707,788
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Liabilities and
Shareholders' Equity
Current Liabilities $102,244,419 $51,233,510
Long Term Debt 280,103,906 48,832,240
Deferred Income Taxes 10,314,490 3,953,185
Shareholders' Equity 207,746,817 202,688,853
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$600,409,632 $306,707,788
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(a) Adjusted for a ten percent stock dividend paid in August, 1999.