![]() July 19, 2012 Earnings Presentation Second Quarter 2012 Second Quarter 2012 Exhibit 99.2 Myers Industries, Inc. |
![]() Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial results may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators and expectations. Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we "believe," "expect," or "anticipate" will occur, and other similar statements), you must remember that our expectations may not be correct, even though we believe they are reasonable. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You should review this presentation with the understanding that actual future results may be materially different from what we expect. Many of the factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statement. We do not intend, and undertake no obligation, to update these forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. Such risks include: (1) Fluctuations in product demand and market acceptance (2) Uncertainties associated with the general economic conditions in domestic and international markets (3) Increased competition in our markets (4) Changes in seasonality (5) Difficulties in manufacturing operations, such as production outages or maintenance programs (6) Raw material availability (7) Fluctuations in raw material costs; fluctuations outside the “normal” range of industry cycles (8) Changes in laws and regulations and approvals and decisions of courts, regulators, and governmental bodies Myers Industries, Inc. encourages investors to learn more about these risk factors. A detailed explanation of these factors is available in the Company’s publicly filed quarterly and annual reports, which can be found online at www.myersind.com and at the SEC.gov web site. 2 |
![]() 3 Novel is a market leader in beverage and agricultural material handling Designer and manufacturer of returnable plastic crates and totes for the transport of beverages and agricultural products; Founded in 1975 Manufacturer, importer and reseller of traffic control and safety equipment #1 position in beverage crates and poultry boxes Strong relationships with international beverage manufacturers Sales Projected at $38.0M for 2012 Two strategically located manufacturing facilities in Bahia & Paraná Clear fit with Myers’ returnable packaging market focus and geographic expansion strategy Will be integrated into the Material Handling Segment Sales by Product Line Manufacturing Facilities Beverage Crates 60% Other 5% Safety 10% Agricultural Boxes 25% Bahia Paraná |
![]() 4 *See reconciliation of Non-GAAP measures on slide 12. Sales increased 2.2% to $181.1M Strong sales in Engineered Products – 38.5% year-over-year increase Lawn & Garden sales increased 1.6% Material Handling sales down as anticipated Distribution sales declined 4.1% Gross margin expanded from 25.1% to 26.2% Operations Excellence initiatives continued to drive productivity improvements and cost savings Adjusted EPS increased 21.4% to $0.17 Earnings Per Share $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 $0.13 $0.17 Earnings Per Diluted Share - Adjusted* $0.20 $0.15 $0.10 $0.05 $0.00 $0.14 $0.17 Q2 2011 Q2 2012 Q2 2011 Q2 2012 |
![]() 5 P&L Q2 Q2 Highlights 2012 2011 B/(W) Net sales $181.1 $177.3 2.2% Gross margin 26.2% 25.1% 4.4% SG&A $37.4 $35.8 -4.5% Net income - adjusted* $5.7 $5.0 14.0% Effective tax rate 36.7% 38.1% EPS - adjusted* $0.17 $0.14 21.4% *See Reconciliation of Non-GAAP measures on slide 12 Balance Sheet June 30, December 31, Highlights 2012 2011 Cash $35.6 $6.8 Long-term debt (less current portion) $101.8 $73.7 Debt - net of cash $66.5 $67.2 Six Months Ended Six Months Ended Cash June 30, June 30, Highlights 2012 2011 Operating cash flow $7.9 $8.8 Capital expenditures $8.4 $5.8 Dividends $5.0 $4.7 |
![]() Q2 Results Softer sales compared to last year due to a delay in the timing of orders Operations Excellence initiatives and lower manufacturing costs drove margin expansion 6 $67.0 $60.3 $55 $60 $65 $70 Q2 2011 Q2 2012 Net Sales $8.4 $9.2 $6 $9 $12 Q2 2011 Q2 2012 EBIT - Adjusted |
![]() Q2 Results Sales lower than anticipated in Q2 as customers continued to deplete inventory levels and limited production 7 $41.8 $42.5 $40 $45 Q2 2011 Q2 2012 Net Sales $(1.6) $(1.5) -$3 $0 Q2 2011 Q2 2012 EBIT - Adjusted Increased freight costs offset a portion of the income that was generated by higher sales |
![]() Q2 Results Decline in miles driven and replacement tire sales resulted in sales decrease 8 $46.1 $44.2 $40 $45 $50 Q2 2011 Q2 2012 Net Sales $4.5 $4.1 $3 $6 Q2 2011 Q2 2012 EBIT - Adjusted High freight costs further impacted operating results |
![]() 9 Q2 Results Sales strong in transplant auto (due mostly to year- over-year rebound), recreational vehicle, marine and custom markets Higher sales as well as lower costs generated by operations excellence initiatives drove the increase in pre-tax income $27.9 $38.6 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Q2 2011 Q2 2012 Net Sales $2.7 $4.7 $0 $3 $6 Q2 2011 Q2 2012 EBIT - Adjusted |
![]() 10 Results in the Material Handling Segment should benefit from the shift in demand from the second quarter to late in the second half in higher margin agricultural and food processing markets. Anticipate stronger order activity in the Lawn & Garden Segment in the second half as inventories are replenished and customers prepare for next season. Anticipate continued headwinds in Distribution due to a decline in miles driven and replacement tire sales. Expect continued strength in the marine market of our Engineered Products Segment as boat builders switch to our EPA approved fuel system. Despite a mixed economy, expect overall results in second half to benefit from our operations excellence initiatives and the shift in orders in Material Handling. Full-year results should reflect another year of solid results and successful execution of our strategic principles. |
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![]() Source: Material Handling Industry of America, April 2012 Material Handling MHEM Index Lawn & Garden Housing Starts Consumer Sentiment Sources: National Association of Home Builders (NAHB); June 2012 Thomson/University of Michigan; June 2012 Preliminary Distribution Miles Driven Replacement Tire Shipments, Gasoline Sales Engineered Products RVIA Auto Market Forecasts Sources: RVIA, AK Sales Forecast RVIA’s survey indicates that towable categories present most RV market’s improvement. Sources: Federal Reserve Board & Manufacturers Alliance/MAPI data; IHS Global Insight Model June 2012 Economic Report (Autos, Light Vehicles, Trucks, RVs in Total) Autos & Light Truck Assemblies RV Unit Shipments Total Housing Starts Single Family Index of Consumer Sentiment Shipments Orders Miles Driven (B) U.S. Department of Transportation; RMA; June 2012 Repl Tire Shipments- Source: RMA/KeyBanc; Myers Tire Supply Market Analysis Gasoline Sales (Gal/B) -Source: Energy Information Administration, US Dept. of Energy Autos and light truck assemblies; s.a. Y/Y Percent Change NAHB Housing Forecast Consumer Sentiment |
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