1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________________
____
FORM 10-Q
(Mark One)
/ X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
---------------------------------------------
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)
OHIO #34-0778636
---------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1293 SOUTH MAIN STREET, AKRON, OHIO 44301
---------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (216) 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, 1995, the number of shares outstanding of the issuer's
Common Stock was:
15,335,062
==========
2
PART I - FINANCIAL INFORMATION
MYERS INDUSTRIES, INC.
CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF MARCH 31, 1995 AND DECEMBER 31, 1994
------------------------------------------------------
March 31, December 31,
ASSETS 1995 1994
- ------ ---------- ----------
CURRENT ASSETS
Cash and temporary cash investments $2,788,521 $1,794,703
Accounts receivable-less allowances
of $1,492,000 and $1,479,000,
respectively 50,041,271 51,226,688
Inventories
Finished and in-process products 35,925,464 33,572,557
Raw materials and supplies 6,071,877 5,809,158
----------- -----------
41,997,341 39,381,715
Prepaid expenses 1,498,188 2,321,849
----------- -----------
TOTAL CURRENT ASSETS 96,325,321 94,724,955
OTHER ASSETS
Excess of cost over fair value of net
assets of companies acquired 9,217,775 9,289,115
Patents and other intangible assets 3,145,595 3,219,371
Other 3,493,947 3,415,134
----------- -----------
15,857,317 15,923,620
PROPERTY, PLANT & EQUIPMENT, AT COST
Land 1,967,180 1,836,637
Buildings and leasehold improvements 30,200,736 29,010,268
Machinery and equipment 86,876,786 85,710,088
----------- -----------
119,044,702 116,556,993
Less allowances for depreciation and
amortization 57,705,428 55,178,681
----------- -----------
61,339,274 61,378,312
----------- -----------
$173,521,912 $172,026,887
============ ============
3
-2-
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF MARCH 31, 1995 AND DECEMBER 31, 1994
------------------------------------------------------
March 31, December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY 1995 1994
- ------------------------------------ ------------ ------------
CURRENT LIABILITIES
Accounts payable $14,970,282 $19,751,167
Employee compensation and related
items 6,799,674 8,911,996
Accrued expenses
Interest 21,586 59,729
Taxes, other than income taxes 1,098,724 974,853
Income taxes 2,659,460 431,805
Other 3,026,702 3,271,664
Current portion of long-term debt 692,379 692,379
------------ ------------
TOTAL CURRENT LIABILITIES 29,268,807 34,093,593
LONG-TERM DEBT, less current portion 6,978,997 4,154,646
DEFERRED INCOME TAXES 2,870,105 2,869,976
SHAREHOLDERS' EQUITY
Serial Preferred Shares
(authorized 1,000,000) -0- -0-
Common Shares, without par value
(authorized 30,000,000 shares;
outstanding 15,325,953 and
15,300,092, respectively) 8,565,975 8,303,598
Additional paid-in capital 90,606,429 90,606,429
Foreign currency translation
adjustment (387,519) (466,191)
Retained income 35,619,118 32,464,836
------------ ------------
134,404,003 130,908,672
------------ ------------
$173,521,912 $172,026,887
============ ============
4
-3-
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
CONDENSED STATEMENT OF CONSOLIDATED INCOME
------------------------------------------
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
--------------------------------------------------
March 31, March 31,
1995 1994
------------ ------------
Net sales $67,500,977 $59,694,950
Costs and expenses
Cost of sales 46,290,759 40,387,373
Operating expenses 14,786,897 13,291,458
Interest income (35,025) (36,215)
Interest expense 134,460 174,364
------------ ------------
Total costs & expenses 61,177,091 53,816,980
Income before income taxes 6,323,886 5,877,970
Income taxes 2,557,000 2,380,000
------------ ------------
Net income $3,766,886 $3,497,970
------------ ------------
Net income per common share* $.25 $.23
Dividends per common share* $.04 $.036
Weighted average number of
common shares outstanding* 15,316,771 15,284,664
<FN>
*Adjusted for the five-for-four stock split distributed in August, 1994.
5
-4-
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
--------------------------------------------------
March 31, March 31,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES ----------- -----------
Net income $3,766,886 $3,497,970
Items not affecting use of cash
Depreciation 2,526,747 2,084,270
Amortization of excess of cost over fair
value of net assets of companies acquired 71,340 71,340
Amortization of deferred financing costs 2,006 18,341
Amortization of patents & other
intangible assets 73,776 73,775
Cash flow provided by (used for) working capital
Accounts receivable 1,185,417 (153,084)
Inventories (2,615,626) (700,553)
Prepaid expenses 823,661 (461,097)
Accounts payable and accrued expenses (4,824,786) 92,494
----------- -----------
Net cash provided by operating activities 1,009,421 4,523,456
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and
equipment, net (2,487,709) (4,013,999)
Cash dividends paid (612,604) (550,443)
Other 260,359 (30,182)
----------- -----------
Net cash used for investing activies (2,839,954) (4,594,624)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings - net 2,824,351 293,328
----------- -----------
INCREASE (DECREASE) IN CASH
AND TEMPORARY CASH INVESTMENTS 993,818 222,160
CASH AND TEMPORARY CASH INVESTMENTS
JANUARY 1 1,794,703 1,661,783
----------- -----------
CASH AND TEMPORARY CASH INVESTMENTS
MARCH 31 $2,788,521 $1,883,943
=========== ===========
6
-5-
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 conjunction 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, 1995 and
December 31, 1994 and the results of operations and cash flows for the three
months ended March 31, 1995 and 1994.
(2) Income Per Share
----------------
Income per share is determined on the basis of the weighted average
number of common shares and common stock equivalents outstanding during the
period with the 1994 data adjusted for the five-for-four stock split
distributed in August, 1994.
(3) Supplemental Disclosure of Cash Flow Information
------------------------------------------------
The Company made cash payments for interest expense of $210,954 and
$211,025 for the three months ended March 31, 1995 and 1994, respectively.
Cash payments for income taxes were $329,216 and $582,979 for the three months
ended March 31, 1995 and 1994, respectively.
7
-6-
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 three months ended March 31, 1995 increased
$7,806,027 or 13.1 percent over the same period in 1994. Increased unit demand
in both of the Company's business segments was the main reason for the improved
sales volume.
Cost of sales for the three month period ended March 31, 1995
increased $5,903,386 or 14.6 percent over the period ended March 31, 1994.
This was attributable to the increase in sales. Gross profit, expressed as a
percentage of sales, decreased to 31.4 percent in 1995 from 32.3 percent for
the three month period in 1994. Higher raw material prices in the
Manufacturing segment, which were not fully passed along to customers, caused
the decrease in the margin.
Operating expenses increased $1,495,439 or 11.3 percent for the three
month period ended March 31, 1995, as compared to the same period in 1994. The
rise was largely attributable to higher selling expenses. Operating expenses,
expressed as a percentage of sales, decreased to 21.9 percent as compared to
22.3 percent in 1994 as the result of cost controls and greater fixed expense
coverage.
Interest income remained relatively unchanged, decreasing from $36,215
in 1994 to $35,025 during the three months ended March 31, 1995.
Interest expense for the three month period ended March 31, 1995
decreased $39,904 or 22.9 percent as compared to the same period in 1994. The
decrease was attributable to lower average levels of debt, partially offset by
higher interest rates.
Income taxes, expressed as a percentage of income before income taxes,
were 40.4 percent for the months ended March 31, 1995, down slightly from the
40.5 percent in the same year ago period.
8
-7-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Working capital increased to $67,056,514 at March 31, 1995 from
$60,631,362 at December 31, 1994. Total debt for this period, expressed as a
percentage of total capitalization, increased to 5.4 percent as compared to 3.6
percent in 1994. During the quarter, the Company issued $4,000,000 of
tax-exempt Industrial Development Revenue Bonds in connection with its
Hannibal, Missouri, plant expansion.
The Company currently anticipates capital expenditures in the range of
$12.0 to $15.0 million per year over the next five years, primarily for
increased polymer manufacturing capacity. Management believes that
anticipated cash flows from operations and available credit facilities will be
sufficient to meet its short-term and long-term operating needs.
9
-8-
PART 11 - OTHER INFORMATION
MYERS INDUSTRIES, INC.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
Exhibit 27 - Financial Data Schedule
The Company did not file any report or Form 8-K during the three
months ended March 31, 1995.
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.
MYERS INDUSTRIES, INC.
May 11, 1995 By: /s/ Gregory J. Stodnick
- ------------------- ---------------------------------
Date Gregory J. Stodnick
Vice President-Finance
Financial Officer (Duly
Authorized Officer and
Principal Financial and
Accounting Officer)