Earnings Presentation Fourth Quarter & Full Year 2013 February 20, 2014 Exhibit 99.2 |
Safe Harbor Statement 2 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. |
Full Year 2013 Highlights • Achieved 6.4% increase in adjusted EPS • $1.00 compared to $0.94 in 2012 • Generated 95% increase in free cash flow • $66.1 million compared to $33.8 million • 6% of total sales in 2013 came from products, services or markets developed in the last three years. • Realized $16 million in Operations Excellence savings • 3% of Cost of Goods sold • 2012 Novel & Jamco acquisitions performed as anticipated in 2013 and continue to be a good strategic fit • Increased dividend 12.5% to $0.09 per quarter or $0.36 per year • Invested $8.1 million to repurchase common stock 3 • As part of Innovation initiative more than 40 new products and services were introduced |
Full Year 2013 Financial Summary 4 • Sales increased 4.3% • Novel and Jamco acquisitions were the primary contributor to the increase • Adjusted gross margin expanded to 27.7% from 27.4% • Operations Excellence initiatives drove productivity improvements and cost savings • Adjusted net income increased 6.1% • Adjusted EPS increased 6.4% Note: All figures except ratios and percents are $Millions FY FY Highlights 2013 2012 B/(W) Net sales $825.2 $791.2 4.3% Gross profit margin - adjusted¹ 27.7% 27.4% 1.1% SG&A $173.7 $163.4 (6.3%) Net income - adjusted² $34.1 $32.1 6.1% Effective tax rate 34.0% 36.7% EPS - adjusted² $1.00 $0.94 6.4% ¹ See Reconciliation of Non-GAAP measures slide 17 ² See Reconciliation of Non-GAAP measures on slide 18 |
Full Year 2013 Financial Summary 5 Notes: All figures except ratios and percents are $Millions Free cash flow = cash flow from operations – capital expenditures Twelve Months Ended Twelve Months Ended Cash December 31, December 31, Highlights 2013 2012 Cash provided by operations $96.1 $60.8 Capital expenditures $30.0 $27.0 Free cash flow $66.1 $33.8 Dividends $9.1 $13.0 Balance Sheet December 31, December 31, Highlights 2013 2012 Long-term debt $44.3 $92.8 Debt - net of cash $37.8 $88.9 Net Debt to total capital 13.8% 27.9% |
FY Results • Sales increase of 13% due mostly to Novel & Jamco acquisitions • Change in both customer and product mix led to decrease in adjusted EBIT Segment Review – Material Handling 6 See Reconciliation of Non-GAAP measures on slide 18 |
FY Results • Sales relatively flat year- over-year • Savings from phase one of restructuring combined with productivity and material cost savings generated significant year- over-year adjusted EBIT improvement Segment Review – Lawn & Garden 7 See Reconciliation of Non-GAAP measures on slide 18 |
FY Results • Sales increase the result of new product sales and market share gains in equipment • Adjusted EBIT relatively flat year-over-year Segment Review – Distribution 8 See Reconciliation of Non-GAAP measures on slide 18 |
FY Results • Strong sales in the marine and recreational vehicle markets were offset by lower custom sales, primarily as the result of a focus on more profitable business Segment Review – Engineered Products 9 See Reconciliation of Non-GAAP measures on slide 18 |
Q4 2013 Financial Highlights 10 • Softer sales volumes partially resulting from near-term transportation issues led to a 1.3% decline in sales year-over- year • Adjusted gross profit margin increased to 27.5% from 26.8% • Operations Excellence initiatives drove productivity improvements and cost savings • Adjusted net income flat year- over-year • Adjusted EPS flat vs. 2012 Note: All figures except ratios and percents are $Millions Q4 Q4 Highlights 2013 2012 B/(W) Net sales $211.3 $214.0 (1.3%) Gross profit margin - adjusted¹ 27.5% 26.8% 2.6% SG&A $44.4 $42.2 (5.2%) Net income - adjusted² $8.8 $8.9 (1.7%) Effective tax rate 22.3% 38.2% EPS - adjusted² $0.26 $0.26 0.0% ¹ See Reconciliation of Non-GAAP measures slide 17 ² See Reconciliation of Non-GAAP measures on slide 18 |
Q4 Results • Sales decreased 1.5% year- over-year as Q4 2012 sales benefited from some sizeable non-recurring project sales • Higher SG&A expenses due to increased royalty and employee related expenses led to the decline in adjusted EBIT year-over-year • A change in customer and product mix also contributed to the decline Segment Review – Material Handling 11 See Reconciliation of Non-GAAP measures on slide 18 |
Q4 Results • Savings from phase one of the restructuring project combined with cost reductions driven by productivity improvements and raw material substitutions led to the increase in adjusted EBIT year-over-year Segment Review – Lawn & Garden 12 See Reconciliation of Non-GAAP measures on slide 18 |
Q4 Results • Softer demand from International customers during the quarter more than offset increased sales from new products in the U.S. • Lower SG&A expenses partially due to headcount reductions contributed to the increase in adjusted EBIT year-over-year Segment Review – Distribution 13 See Reconciliation of Non-GAAP measures on slide 18 |
Q4 Results • Strong sales in the marine and RV market were more than offset by lower custom sales during the quarter as the segment continued to focus more profitable business Segment Review – Engineered Products 14 See Reconciliation of Non-GAAP measures on slide 18 |
Q1 & Full Year 2014 Outlook Q1 Outlook • Material Handling • Strong sales in food processing and organic growth in Brazil will more than offset the impacts to production schedules and product shipping resulting from poor weather conditions at the start of the year • Lawn & Garden • Anticipate that sales will be lower than Q1 2013, partially due to an inability to ship products during the quarter and as a result of decreased production during the quarter as we implement phase two of the segment’s restructuring plan • Distribution • Anticipate sales will be relatively flat during the quarter as a result of weather conditions at the start of the year • Future quarters should see the benefit of the resulting pent-up demand • Engineered Products • Anticipate that custom sales will be lower than Q1 2013 due to the elimination of some unprofitable business throughout 2012 Full Year Outlook • The Company anticipates that it will show another year of profit improvement from its sustained focus on productivity and cost saving initiatives, including phase two of the Lawn & Garden restructuring project that was announced in July 2013 15 |
Appendix 16 |
Reconciliation of Non-GAAP Measures 17 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONDENSED CONSOLIDATED GROSS PROFIT (UNAUDITED) (Dollars in thousands) Note on Reconciliation of Income and Earnings Data: Gross profit excluding the items mentioned above in the text of this release and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from the unaudited Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that gross profit excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses gross profit excluding these items as well as other financial measures in connection with its decision-making activities. Gross profit excluding these items should not be considered in isolation or as a substitute for gross profit prepared in accordance with GAAP. The Company's method for calculating gross profit excluding these items may not be comparable to methods used by other companies. |
Reconciliation of Non-GAAP Measures 18 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED) (Dollars in millions, except per share data) Note: Numbers in the Corporateand interest expense section abovemay berounded for presentation purposes. Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items mentioned above in the text of this release and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from the unaudited Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company's operating profitability. Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for net income (loss), income (loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company's method for calculating income (loss) excluding these items may not be comparable to methods used by other companies. |
Market Indicators Source: JP Morgan, RMA, Energy Information Administration, Dec 2013 Sources: RVIA Forecasts, Dec 2013; FRB G17 Release, Feb 2014 19 |