Myers Industries Reports First Quarter Results
18 April 2000
Myers Industries Reports First Quarter Results; Record Sales Growth, Raw Material Costs Constrain Earnings
AKRON, Ohio--April 18, 2000--Myers Industries, Inc. (AMEX:MYE) announced today that net sales for the first quarter ended March 31, 2000, were a record $161,586,409, up 27 percent over the $126,746,405 reported for the first quarter in 1999. Net income for the quarter was $8,332,246, a 1 percent increase from $8,267,955 last year. Net income per share finished at $.42 per share, a 2 percent increase from $.41 per share from the same period last year."During the first quarter, we had strong growth in our top line with higher unit sales and contributions from acquired companies in our manufacturing segment," said Stephen E. Myers, president and chief executive officer. "However, earnings growth was constrained by the escalating prices for raw materials used in our plastic products. We are continuing to focus on reducing costs, using volume purchasing power for raw material, and balancing product pricing with raw material costs to improve our long-term performance."
Excluding contributions from acquisitions, total net sales for the first quarter would have increased 4 percent. On a segment basis, sales in the distribution segment were down 3 percent from 1999 results for the same period. First quarter manufacturing sales increased 39 percent over last year's results. Excluding acquisitions, sales in the manufacturing segment grew 8 percent compared to the first quarter a year ago.
Both total sales and manufacturing segment sales were reduced $3.4 million by the translation effect of the weak Euro. Without the translation effect, total sales would have been up 30 percent, and manufacturing segment sales would have been up 42 percent. The translation effect also decreased net income by $150,000, or $.01 per share.
Commenting on the Company's long-term outlook, Myers said "We expanded our Company a great deal last year, adding new products, geographic areas, and customers. While we may experience short-term earnings constraint from raw material costs, we are encouraged by our first quarter performance and remain optimistic that our strong business fundamentals will provide long-term, sustainable growth."
Myers Industries, Inc. 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. Myers has 23 manufacturing facilities in six countries, 42 distribution branches in 31 states, more than 20,000 products, and nearly 4,200 employees. Myers reported net sales of $580.8 million in 1999. For more information, go to www.myersind.com.
Forward-Looking Statements: Statements in this 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. Any statement that is not statement of historical fact may be deemed to be a forward-looking statement.
Myers Industries, Inc.
CONDENSED STATEMENT OF INCOME
Quarter Ended
March 31,
--------------------------------------
2000 1999
----------------------------------------------------------------------
Net Sales $161,586,409 $126,746,405
Cost of Sales 104,632,686 79,519,275
-------------- ----------------
Gross Profit 56,953,723 47,227,130
Operating Expenses 36,984,381 30,183,071
-------------- ----------------
Operating Income 19,969,342 17,044,059
Interest Expense 5,611,096 2,449,104
-------------- ----------------
Income Before
Income Taxes 14,358,246 14,594,955
Income Taxes 6,026,000 6,327,000
-------------- ----------------
Net Income $8,332,246 $8,267,955
-------------- ----------------
-------------- ----------------
Net Income Per Share(1) $.42 $.41
-------------- ----------------
-------------- ----------------
Average Shares
Outstanding(1) 19,869,436 20,186,695
-------------- ----------------
-------------- ----------------
CONDENSED STATEMENT OF FINANCIAL POSITION
As of March 31, 2000 and 1999
2000 1999
----------------------------------------------------------------------
Assets
Current Assets $213,427,353 $190,382,508
Other Assets 196,284,460 157,324,327
Property, Plant,
and Equipment 186,504,521 160,565,391
-------------- ----------------
$596,216,334 $508,272,226
-------------- ----------------
-------------- ----------------
Liabilities and
Shareholders' Equity
Current Liabilities $107,442,189 $89,733,807
Long Term Debt 273,288,754 205,797,702
Deferred Income Taxes 9,814,504 4,208,546
Shareholders' Equity 205,670,887 208,532,171
-------------- ----------------
$596,216,334 $508,272,226
-------------- ----------------
-------------- ----------------
Note 1 - Adjusted for the ten percent stock dividend paid in August,
1999.