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Myers Industries Reports 2012 First Quarter Results

Myers Industries, Inc. (NYSE: MYE) today announced results for the first quarter ended March 31, 2012.

Net sales for the first quarter were $198.8 million compared to $195.5 million in the first quarter of 2011. Sales increases in the Distribution and Engineered Products Segments were partially offset by sales decreases in the Material Handling and Lawn & Garden Segments, resulting in a net increase in sales of 1.7%. Gross margin expanded to 29.2% in the first quarter of 2012 compared to 27.7% in the same quarter of 2011. The expansion was largely the result of the Company’s continued focus on operations excellence initiatives combined with a favorable product mix during the quarter.

Net income in the first quarter of 2012 was $10.0 million or $0.29 per diluted share compared to net income in the first quarter of 2011 of $6.7 million or $0.19 per diluted share. Net income in the first quarter of 2012 and in the first quarter of 2011 included approximately $0.6 million of special pre-tax costs. Details regarding the special pre-tax costs for both quarters are provided on the Reconciliation of Non-GAAP Financial Measures included in this release. Adjusting for these special items, earnings per diluted share were $0.30 in the first quarter of 2012 compared to $0.20 in the first quarter of 2011.

“Again in the first quarter, Myers Industries delivered improved performance as we have for the last six quarters. This operational and financial consistency is a result of our continued emphasis on Customer Dedication, Innovation, Operations Excellence and Organization Development in our business,” said President and Chief Executive Officer John C. Orr.

Segment Results

The results below are as adjusted and exclude special pre-tax costs as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release.

The Material Handling Segment’s net sales in the first quarter of 2012 were $65.2 million compared to $65.7 million in the first quarter of 2011. Increased sales in the food processing and agricultural markets were offset by lower sales in the manufacturing and automotive markets. Material Handling’s income before taxes was $13.2 million in the first quarter of 2012 compared to $10.3 million in the first quarter of 2011. Lower manufacturing costs resulting from the Company’s operations excellence initiatives as well as a favorable product and customer mix were the largest contributors to the 28.2% increase in income before taxes.

The Lawn & Garden Segment’s net sales in the first quarter of 2012 decreased to $59.2 million as compared to $67.2 million in the first quarter of 2011. Sales performance in the first quarter was adversely affected by the acceleration of sales into the fourth quarter of 2011. There were also unusually high customer inventories during the first quarter due to the weak spring season in 2011. Lawn & Garden’s income before taxes in the first quarter of 2012 was $1.2 million compared to $3.9 million in the first quarter of 2011. Decreased income due to the lower sales volume was only partially offset by cost reductions generated from the continued execution of the segment’s profit improvement plan.

The Distribution Segment’s net sales were $42.7 million in the first quarter of 2012 compared to $41.6 million in the first quarter of 2011, an increase of 2.7%. New product and customer sales and services resulting from the Company’s growth and innovation initiative more than offset an overall market decline and a decrease in equipment sales during the quarter. Distribution’s income before taxes was $3.9 million in the first quarter of 2012 compared to $3.3 million in the first quarter of 2011. The increase in income before taxes reflected a favorable product mix in addition to the increased sales.

The Engineered Products Segment’s net sales were $37.2 million in the first quarter of 2012 compared to $27.9 million in the first quarter of 2011. Very strong sales in the transplant auto, marine and custom markets generated the 33.3% increase in sales year-over-year. Engineered Product’s income before taxes was $4.7 million in the first quarter of 2012 compared to $2.9 million in the first quarter of 2011. Increased sales and favorable product mix produced increased income before taxes during the quarter.

Cash Flow

Cash flow used for operations for the three months ended March 31, 2012 was $6.4 million compared to $0.4 million in the first quarter of 2011. As is customary in the first quarter, the Company’s line of credit was used to fund the seasonal buildup of working capital.

Stock quotes in this article: MYE 

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