Myers Industries - 10-Q quarterly report FY

Table of Contents

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended     March 31, 2001
or
		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                 to                                  

Commission file number     I-8524    

               MYERS INDUSTRIES, INC.               
(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code     (330) 253-5592    

      Indicate whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   x  . No       .

Applicable Only to Issuers Involved in Bankruptcy
Proceedings During the Preceding Five Years

      Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes       . No       .

      As of April 30, 2001, the number of shares outstanding of the issuer’s Common Stock was:

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PART 1 — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF MARCH 31, 2001 AND DECEMBER 31, 2000

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF MARCH 31, 2001 AND DECEMBER 31, 2000

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

CONDENSED STATEMENT OF CONSOLIDATED INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

STATEMENT OF SHAREHOLDERS’ EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2001

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

NOTES TO FINANCIAL STATEMENTS

(1) Statement of Accounting Policy

      The accompanying financial statements include the accounts of Myers Industries, Inc. and subsidiaries (Company), and have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. It is suggested that these financial statements be read in con-junction with the financial statements and notes thereto included in the Company’s latest annual report on Form 10-K.

      In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of March 31, 2001, and the results of operations and cash flows for the three months ended March 31, 2001 and 2000.

(2) Supplemental Disclosure of Cash Flow Information

      The Company made cash payments for interest expense of $5,906,000 and $5,077,000 for the three months ended March 31, 2001 and 2000, respectively. Cash payments for income taxes totaled $640,000 and $624,000 for the three months ended March 31, 2001 and 2000.

(3) Segment Information

      The Company’s business units have separate management teams and offer different products and services. Using the criteria of FASB No. 131, these business units have been aggregated into two reportable segments; Distribution of after-market repair products and services and Manufacturing of polymer products. The aggregation of business units is based on management by the chief operating decision maker for the segment as well as similarities of production processes, distribution methods and economic characteristics (e.g. average gross margin and the impact of economic conditions on long-term financial performance).

      The Company’s Distribution segment is engaged in the distribution of equipment, tools and supplies used for tire servicing and automotive underbody repair. The Distribution segment operates domestically through 42 branches located in major cities throughout the United States and in foreign countries through export and businesses in which the Company holds an equity interest.

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

NOTES TO FINANCIAL STATEMENTS

(3) Segment Information (Con’t)

      The Company’s manufacturing segment designs, manufactures and markets a variety of polymer based plastic and rubber products. These products are manufactured primarily through the molding process in facilities throughout the United States and Europe.

      Operating income for each segment is based on net sales less cost of products sold, and the related selling, administrative and general expenses. In computing segment operating income general corporate overhead expenses and interest expenses are not included.

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

      Net sales for the quarter ended March 31, 2001 increased $3.7 million or 2 percent on the strength of increased sales in the manufacturing segment. Sales in the manufacturing segment increased $6.1 million or 5 percent primarily as a result of the impact of acquired companies not included in the prior year period. Excluding the contributions of these acquisitions, manufacturing sales increased one percent while total net sales were flat. Sales in the distribution segment were down 7 percent as demand for both capital equipment and supplies continued to be affected by softness in the automotive aftermarket.

      Total sales and manufacturing segment sales were also negatively impacted by the translation effect of weaker foreign currencies, particularly the Euro, on sales of foreign businesses. As a result, total sales and sales in the manufacturing segment were reduced $2.9 million. Without the translation effect and excluding the impact of acquired businesses, manufacturing segment sales would have increased 4 percent for the quarter and total sales would have increased 2 percent .

      Cost of sales increased $1.7 million or 2 percent for the quarter ended March 31, 2001, however, expressed as a percentage of sales was reduced from 64.8 percent in the prior year to 64.6 percent. The slight improvement in gross margin was due to the cost of basic raw materials, primarily plastic resins, which were slightly favorable when compared to the first quarter of the prior year.

      Total operating expenses increased $2.6 million or 7 percent reflecting, in part, the slightly higher sales levels and the additional operating costs of acquired companies. Expressed as a percentage of sales, operating expenses increased to 24.0 percent in the quarter from 22.9 percent in the prior year.

      Net interest expense of $5.6 million was unchanged from the prior year as lower interest rates offset slightly higher borrowing levels.

LIQUIDITY AND CAPITAL RESOURCES

      Cash provided by operating activities was $20.9 million for the quarter ended March 31, 2001 compared with $19.9 million for same period in the prior year. Long-term debt at March 31, 2001 was reduced $10.5 million from December 31, 2000 and debt as a percentage of total capitalization was 58 percent. Working capital decreased slightly from $103.7 million at December 31, 2000 to $101.8 million at March 31, 2001.

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PART I — FINANCIAL INFORMATION

MYERS INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES (Con’t)

      Capital expenditures for the quarter were $9.4 million and are anticipated to be in the range of $30 million to $35 million for the full year. Management believes that anticipated cash flows from operations and available credit facilities will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital and debt service.

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PART II — OTHER INFORMATION

MYERS INDUSTRIES, INC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.