Myers Industries, Inc. (NYSE: MYE) today announced results for the second quarter ended June 30, 2012.
Net sales for the second quarter were $181.1 million compared to $177.3 million in the second quarter of 2011. The net increase in sales of 2.2% was the result of strong sales performance in the Engineered Products Segment combined with a moderate sales increase in the Lawn & Garden Segment which more than offset lower sales in the Material Handling Segment and a sales decline in the Distribution Segment. Gross margin expanded to 26.2% in the second quarter of 2012 compared to 25.1% in the second quarter of 2011. The expansion was due mostly to reduced costs and productivity improvements resulting from continued execution of the Company’s operations excellence initiatives.
Net income in the second quarter of 2012 was $5.7 million or $0.17 per diluted share compared to net income in the second quarter of 2011 of $4.7 million or $0.13 per diluted share. Net income in the second quarter of 2012 included approximately $0.3 million of special net pre-tax costs while net income in the second 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. Earnings per diluted share as adjusted for these special items were $0.17 in the second quarter of 2012 compared to $0.14 in the second quarter of 2011.
President and Chief Executive Officer John C. Orr said, “We met our expected operating results for the quarter despite some challenging economic conditions. We expect that our full-year results will show continued solid performance. At the beginning of July, we announced that we acquired Plasticos Novel Do Nordeste S.A. ® (Novel), one of Brazil’s leading designers and manufacturers of plastic totes and crates used for closed-loop shipping and storage in the region’s fast growing food and agriculture industries. The acquisition fits our Material Handing Segment’s strategy of geographic expansion in North and South America, growing our more profitable end markets and leveraging our strong existing position.”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 second quarter of 2012 were $60.3 million compared to $67.0 million in the second quarter of 2011. An anticipated delay in customer orders resulting from a shift in demand from the second quarter to the second half of this year caused the sales decrease during the quarter. Material Handling’s income before taxes was $9.2 million in the second quarter of 2012 compared to $8.4 million in the second quarter of 2011. The segment benefited from our focus on our operations excellence initiatives and lower manufacturing costs which led to the 9.8% increase in income before taxes, despite lower year-over-year sales. The Lawn & Garden Segment’s net sales in the second quarter of 2012 increased to $42.5 million as compared to $41.8 million in the second quarter of 2011. Sales volume was lower than anticipated in the second quarter as customers chose to continue to deplete their inventories and limit production during the quarter. Lawn & Garden’s loss before taxes in the second quarter of 2012 was $1.5 million compared to a loss of $1.6 million in the second quarter of 2011. Higher freight costs during the quarter partially offset the income generated by the increased sales volume. The Distribution Segment’s net sales were $44.2 million in the second quarter of 2012 compared to $46.1 million in the second quarter of 2011. The sales decline was a result of slower customer demand during the quarter. Distribution’s income before taxes was $4.1 million in the second quarter of 2012 compared to $4.5 million in the second quarter of 2011. The decrease in income before taxes is mostly attributable to the lower sales volume and higher freight costs during the quarter. The Engineered Products Segment’s net sales were $38.6 million in the second quarter of 2012 compared to $27.9 million in the second quarter of 2011. Continued strong sales in the transplant auto market mostly due to a year-over-year rebound combined with a sales increase in the marine, recreational vehicle, and custom markets generated the 38.5% increase in sales year-over-year. Engineered Product’s income before taxes was $4.7 million in the second quarter of 2012 compared to $2.7 million in the second quarter of 2011. The increased income before taxes during the quarter resulted from the higher sales volume and the ongoing execution of our operations excellence initiatives. Cash Flow Cash flow provided by operations for the six months ended June 30, 2012 was $7.9 million compared to $8.8 million for the six months ended June 30, 2011.
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