Myers Industries Announces Second Quarter and Six Month Results
18 July 2000
Myers Industries Announces Second Quarter and Six Month Results
AKRON, Ohio - Myers Industries, Inc. today announced that net sales for the second quarter ended June 30, 2000, totaled $166,235,127, an increase of 13 percent over the $147,643,051 reported in 1999. Net income was $8,058,489, a decrease of 12 percent compared to second quarter earnings of $9,167,027 last year. Net income per share finished at $.41, down 9 percent from $.45 last year.For the six months ended June 30, 2000, net sales of $327,821,536 were up 19 percent over the $274,389,456 reported for the same period in 1999. Net income was $16,390,735, a decrease of 6 percent from net income of $17,434,982 in the first half of 1999. Net income per share was $.83, down 3 percent from the $.86 reported for the comparable period last year.
"The higher cost of raw materials used in our plastic products is constraining earnings right now," said Stephen E. Myers, president and chief executive officer. Resin prices, on the average, have increased more than 50% compared with the same period last year.
Excluding contributions from acquisitions, total net sales would have increased 1 percent for the second quarter and 2 percent for the six months. On a segment basis, sales in the distribution segment were down 3 percent for both the quarter and six months, compared to the same periods last year. In the Company's manufacturing segment, sales increased 18 percent over last year's second quarter results and 27 percent over the comparable six months. Excluding acquisitions, manufacturing sales increased 2 percent for the quarter and 4 percent for the six months.
Both total sales and manufacturing segment sales were negatively impacted by the translation effect of the weak Euro. Total sales and manufacturing segment sales were reduced $4.5 million for the quarter and $8.0 million for the six months. Without the translation effect and excluding acquisitions, total sales would have increased 4 percent for the quarter and 5 percent for the six months, and manufacturing segment sales would have increased 7 percent for the quarter and 8 percent for the six months. The translation effect also decreased net income $95,000 for the quarter and $168,000 for the six months.
Myers said, "Last year's acquisitions provide continued opportunity for long-term growth. Our focus now is to minimize the pressure on earnings from high raw material costs, integrate the acquisitions, and reduce debt."
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 North America and Europe, 42 distribution branches in 31 states, more than 20,000 products, and nearly 4,200 employees. Myers Industries reported net sales of $580.8 million in 1999.
MYERS INDUSTRIES, INC.
CONDENSED STATEMENT OF INCOME
Quarter Ended Six Months Ended
June 30, June 30,
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2000 1999 2000 1999
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Net Sales $166,235,127 $147,643,051 $327,821,536 $274,389,456
Cost of Sales 109,100,450 93,491,543 213,733,136 173,010,818
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Gross Profit 57,134,677 54,151,508 114,088,400 101,378,638
Operating Expenses 37,950,559 35,041,970 74,934,940 65,225,041
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Operating
Income 19,184,118 19,109,538 39,153,460 36,153,597
Interest Expense 5,285,629 3,307,511 10,896,725 5,756,615
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Income Before
Income Taxes 13,898,489 15,802,027 28,256,735 30,396,982
Income Taxes 5,840,000 6,635,000 11,866,000 12,962,000
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Net Income $ 8,058,489 $ 9,167,027 $ 16,390,735 $ 17,434,982
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Net Income
Per Share(a) $ .41 $ .45 $ .83 $ .86
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Average Shares
Outstanding(a) 19,746,607 20,222,419 19,807,664 20,205,596
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of June 30, 2000 and 1999
2000 1999
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Assets
Current Assets $207,055,093 $194,259,110
Other Assets 194,604,401 162,482,626
Property, Plant,
and Equipment 185,270,522 157,605,904
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$586,930,016 $514,347,640
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Liabilities and
Shareholders' Equity
Current Liabilities $ 98,654,852 $ 87,867,155
Long Term Debt 267,667,009 210,181,751
Deferred Income Taxes 10,043,380 3,996,358
Shareholders' Equity 210,564,775 212,302,376
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$586,930,016 $514,347,640
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(a) Adjusted for a ten percent stock dividend paid in August, 1999.