Myers Industries Reports Third Quarter and Nine Month Results
19 October 2000
Myers Industries Reports Third Quarter and Nine Month Results
AKRON, Ohio--Oct. 19, 2000--Myers Industries, Inc. (AMEX:MYE) today announced that net sales for the third quarter ended September 30, 2000, totaled $153,542,048, an increase of 10 percent over the $139,768,838 reported in 1999. Net income was $3,149,409, a decrease of 21 percent compared to the $3,966,769 in last year's third quarter. Net income per share finished at $.15, a decrease of 17 percent compared with $.18 in the third quarter a year ago.For the nine months ended September 30, 2000, net sales of $481,368,865 were up 16 percent over the $414,158,294 reported for the same period in 1999. Net income was $19,540,144, a 9 percent decrease from net income of $21,401,751 a year ago. Net income per share was $.90, a 6 percent decrease from the $.96 reported for the comparable period last year.
Commenting on the Company's performance, Myers Industries President and Chief Executive Officer Stephen E. Myers said, "The higher cost of plastic resin and intensified competitive pressures in the markets for our plastic products this year compared to last year and, to a lesser extent, higher interest costs due to rate increases combined to reduce profits in the third quarter."
Excluding contributions from acquisitions, total net sales would have increased 7 percent for the third quarter and 4 percent for the nine months. On a segment basis, sales in the distribution segment were flat for the quarter and were down 2 percent for the nine months, compared to last year. In the Company's manufacturing segment, sales increased 13 percent over last year's third quarter results and 23 percent over the comparable nine months. Excluding acquisitions, manufacturing sales increased 9 percent for the quarter and 6 percent for the nine months.
Both total sales and manufacturing segment sales were weakened by the translation effect of the euro. Total sales and manufacturing segment sales were reduced $5.1 million for the quarter and $13.1 million for the nine months. Without the translation effect and excluding acquisitions, total sales would have increased 10 percent for the quarter and 7 percent for the nine months, and manufacturing segment sales would have increased 14 percent for the quarter and 10 percent for the nine months. The translation effect also decreased net income $40,000 for the quarter and $225,000 for the nine months.
"The acquisitions last year changed the scope of the Company's international coverage, growth platforms, and financial leverage," Myers said. "We remain optimistic that those decisions bode well for long-term, sustainable growth to benefit both customers and shareholders."
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 24 manufacturing facilities in North America and Europe, 42 distribution branches in 31 states, more than 20,000 products, and nearly 4,300 employees. Myers Industries 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 of historical fact may be deemed to be a forward-looking statement.
Myers Industries, Inc.
CONDENSED STATEMENT OF INCOME
Quarter Ended Nine Months Ended
September 30, September 30,
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2000 1999 2000 1999
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Net Sales $153,542,048 $139,768,838 $481,368,865 $414,158,294
Cost of Sales 105,726,404 91,513,996 319,464,820 264,524,814
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Gross Profit 47,815,644 48,254,842 161,904,045 149,633,480
Operating Expenses 36,830,601 36,113,558 111,765,542 101,338,599
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Operating Income 10,985,043 12,141,284 50,138,503 48,294,881
Interest Expense 5,580,634 4,482,515 16,477,359 10,239,130
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Income Before
Income Taxes 5,404,409 7,658,769 33,661,144 38,055,751
Income Taxes 2,255,000 3,692,000 14,121,000 16,654,000
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Net Income $3,149,409 $3,966,769 $19,540,144 $21,401,751
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Net Income
Per Share(a) $.15 $.18 $.90 $.96
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Average Shares
Outstanding(a) 21,586,543 22,267,296 21,724,589 22,239,280
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CONDENSED STATEMENT OF FINANCIAL POSITION
As of September 30, 2000 and 1999
2000 1999
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Assets
Current Assets $212,354,135 $208,524,492
Other Assets 185,740,435 215,767,240
Property, Plant,
and Equipment 181,730,360 182,511,365
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$579,824,930 $606,803,097
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Liabilities and
Shareholders' Equity
Current Liabilities $98,992,023 $88,608,657
Long Term Debt 267,872,452 293,444,295
Deferred Income Taxes 9,983,938 4,494,521
Shareholders' Equity 202,976,517 220,255,624
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$579,824,930 $606,803,097
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(a)Adjusted for a 10 percent stock dividend paid in August 2000.