<PAGE> 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 June 30, 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
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MYERS INDUSTRIES, INC.
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(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 July 31, 1995, the number of shares outstanding of the issuer's
Common Stock was:
15,345,448
==========
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<TABLE>
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF JUNE 30, 1995 AND DECEMBER 31, 1994
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<CAPTION>
June 30, December 31,
ASSETS 1995 1994
- ----------- ----------- -----------
CURRENT ASSETS
<S> <C> <C>
Cash and temporary cash investments $6,000,192 $1,794,703
Accounts receivable-less allowances
of $1,365,000 and $1,479,000,
respectively 49,535,804 51,226,688
Inventories
Finished and in-process products 36,382,977 33,572,557
Raw materials and supplies 5,420,751 5,809,158
------------ ------------
41,803,728 39,381,715
Prepaid expenses 1,798,597 2,321,849
------------ ------------
TOTAL CURRENT ASSETS 99,138,321 94,724,955
OTHER ASSETS
Excess of cost over fair value of net
assets of companies acquired 9,146,435 9,289,115
Patents and other intangible assets 3,071,819 3,219,371
Other 3,843,370 3,415,134
------------ ------------
16,061,624 15,923,620
PROPERTY, PLANT & EQUIPMENT, AT COST
Land 1,836,637 1,836,637
Buildings and leasehold improvements 29,005,027 29,010,268
Machinery and equipment 89,968,993 85,710,088
------------ ------------
120,810,657 116,556,993
Less allowances for depreciation and
amortization 60,044,568 55,178,681
------------ ------------
60,766,089 61,378,312
------------ ------------
$175,966,034 $172,026,887
============ ============
</TABLE>
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<TABLE>
PART I - FINANCIAL INFORMATION
----------------------------------
MYERS INDUSTRIES, INC.
---------------------
CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF JUNE 30, 1995 AND DECEMBER 31, 1994
------------------------------------------------------
<CAPTION>
June 30, December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY 1995 1994
------------------------------------------------------------ --------------- ---------------
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $14,932,426 $19,751,167
Employee compensation and related
items 7,613,779 8,911,996
Accrued expenses
Interest 19,707 59,729
Taxes, other than income taxes 1,279,466 974,853
Income taxes (100,770) 431,805
Other 3,455,655 3,271,664
Current portion of long-term debt 692,379 692,379
--------------- ---------------
TOTAL CURRENT LIABILITIES 27,892,642 34,093,593
LONG-TERM DEBT, less current portion 6,886,369 4,154,646
DEFERRED INCOME TAXES 2,871,106 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 15,336,349 and
15,300,092, respectively) 8,706,723 8,303,598
Additional paid-in capital 90,606,429 90,606,429
Foreign currency translation
adjustment (357,517) (466,191)
Retained income 39,360,282 32,464,836
--------------- ---------------
138,315,917 130,908,672
--------------- ---------------
$175,966,034 $172,026,887
=============== ===============
</TABLE>
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<TABLE>
PART I - FINANCIAL INFORMATION
------------------------------
MYERS INDUSTRIES, INC.
----------------------
CONDENSED STATEMENT OF CONSOLIDATED INCOME
------------------------------------------
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
---------------------------- --------------------------
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
Net sales
Costs and expenses $75,583,986 $68,442,392 $143,084,963 128,137,342
Cost of sales 52,719,515 44,906,338 99,010,274 85,293,711
Operating expenses 15,344,101 14,705,102 30,130,998 27,996,560
Interest income (40,374) (37,806) (75,399) (74,021)
Interest expense 188,903 242,040 323,363 416,404
----------- ----------- ----------- -----------
Total costs & expenses 68,212,145 59,815,674 129,389,236 113,632,654
Income before
income taxes 7,371,841 8,626,718 13,695,727 14,504,688
Income taxes 3,017,000 3,483,000 5,574,000 5,863,000
----------- ----------- ------------ -----------
Net income $4,354,841 $5,143,718 $8,121,727 $8,641,688
=========== =========== ============ ===========
Net income per
Common Share* $.28 $.34 $.53 $.57
Dividends per
Common Share* $.04 $.036 $.08 $.072
Weighted average
number of Common
Shares outstanding* 15,332,296 15,298,023 15,324,902 15,291,526
- ------------------------------
<FN>
*Adjusted for the five-for-four stock split distributed in August, 1994.
</TABLE>
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<TABLE>
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
-----------------------------------------------
<CAPTION>
June 30, June 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES -------------- --------------
<S> <C> <C>
Net income $8,121,727 $8,641,688
Items not affecting use of cash
Depreciation 5,037,952 4,219,731
Amortization of excess of cost over fair
value of net assets of companies acquired 142,680 142,680
Amortization of deferred financing costs 6,490 36,876
Amortization of patents & other
intangible assets 147,552 147,552
Cash flow provided by (used for) working capital
Accounts receivable 1,690,884 (3,351,983)
Inventories (2,422,013) (1,743,636)
Prepaid expenses 523,252 213,945
Accounts payable and accrued expenses (6,200,951) 740,672
-------------- --------------
Net cash provided by operating activities 7,047,573 9,047,525
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and
equipment, net (4,425,729) (7,122,264)
Cash dividends paid (1,226,281) (1,101,319)
Other 78,203 52,212
-------------- --------------
Net cash used for investing activities (5,573,807) (8,171,371)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings - net 2,731,723 188,636
-------------- --------------
INCREASE (DECREASE) IN CASH
AND TEMPORARY CASH INVESTMENTS 4,205,489 1,064,790
CASH AND TEMPORARY CASH INVESTMENTS
JANUARY 1 1,794,703 1,661,783
-------------- --------------
CASH AND TEMPORARY CASH INVESTMENTS
JUNE 30 $6,000,192 $2,726,573
============== ==============
</TABLE>
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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 June 30, 1995 and
December 31, 1994 and the results of operations and cash flows for the three
months ended June 30, 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 $152,431 and
$203,396 for the three months ended June 30, 1995 and 1994, respectively. Cash
payments for interest expense were $363,385 and $414,421 for the six months
ended June 30, 1995 and 1994, respectively. Cash payments for income taxes for
the three months ended June 30, 1995 and June 30, 1994 were $5,776,229 and
$4,751,997, respectively. For the six month period the payments for income
taxes were $6,105,445 for 1995 and $5,334,976 for 1994.
<PAGE> 7
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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 month period ended June 30, 1995 increased
$7,141,594 or 10.4 percent and $14,947,621 or 11.7 percent for the six month
period as compared to the same periods 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 June 30, 1995 increased
$7,813,177 or 17.4 percent and $13,716,563 or 16.1 percent for the six month
period as compared to the same periods in 1994. This was attributable to the
increase in sales as well as higher raw material prices in the Manufacturing
segment. Gross profit, expressed as a percentage of sales, decreased for the
three month period ended June 30, 1995 to 30.3 percent as compared to 34.4
percent for the same period in 1994. For the six month period ended June 30,
1995, the gross margin decreased to 30.8 percent from 33.4 percent for the same
period in 1994. Higher raw material prices, principally plastic resins, in
the Manufacturing segment, which were not fully passed along to customers,
caused the decrease in the margin.
Operating expenses increased $636,999 or 4.3 percent for the three
month period ended June 30, 1995 and $2,134,438 or 7.6 percent for the six
month period ended June 30, 1995 as compared to the same periods in 1994.
Operating expenses, expressed as a percentage of sales, decreased for the three
month period ended June 30, 1995 to 20.3 percent as compared to 21.5 percent
for the same period in 1994. For the six month period ended June 30, 1995, the
percentage decreased to 21.1 percent compared to 21.8 percent for the same
period in 1994.
Interest income increased during the three month period ended June 30,
1995 to $40,374 from $37,806 for the same period in 1994 and for the six month
period ended June 30, 1995 to $75,399 from $74,021 for the same period in 1994.
Interest expense for the three and six month periods ended June 30,
1995 decreased $53,137 or 22.0 percent and $93,041 or 22.3 percent respectively
over comparable periods in 1994. This is attributable to lower average levels
of debt.
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Income taxes, expressed as a percentage of income before taxes, were
40.9 percent for the three month period and 40.7 percent for the six month
period ended June 30, 1995. This is a slight increase from the 40.4 percent
for the same periods in 1994.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Working capital increased to $71,245,679 at June 30, 1995 from
$60,631,362 at December 31, 1994. Total debt at June 30, 1995, expressed as a
percentage of total capitalization, increased to 5.2 percent as compared to 3.6
percent at December 31, 1994. This was the result of the Company issuing
$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.
<PAGE> 9
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PART II - OTHER INFORMATION
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MYERS INDUSTRIES, INC.
---------------------
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
The Annual Meeting of Shareholders was held on
April 27, 1995. At the Annual Meeting, the election
of eight Directors were voted upon. All of the
Directors nominated were elected. The results of
this voting are as follows:
<TABLE>
<CAPTION>
Votes Votes
Name of Director For Withheld
<S> <C> <C>
Stephen E. Myers 13,229,663 33,672
Milton I. Wiskind 13,229,040 34,295
Edwin P. Schrank 13,247,012 16,323
Karl S. Hay 13,229,116 34,219
Richard P. Johnston 13,228,066 35,269
Richard L. Osborne 13,229,436 33,899
Jon H. Outcalt 13,195,280 68,055
Samuel Salem 13,229,967 44,368
</TABLE>
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.
8-1-95 By: /s/ Gregory J. Stodnick
- ----------------------- -------------------------------
Date Gregory J. Stodnick
Vice President-Finance
Financial Officer (Duly
Authorized Officer and
Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 6,000,192
<SECURITIES> 0
<RECEIVABLES> 50,900,804
<ALLOWANCES> 1,365,000
<INVENTORY> 41,803,728
<CURRENT-ASSETS> 99,138,321
<PP&E> 120,810,657
<DEPRECIATION> 60,044,568
<TOTAL-ASSETS> 175,966,034
<CURRENT-LIABILITIES> 27,892,642
<BONDS> 0
<COMMON> 8,706,723
0
0
<OTHER-SE> 129,609,194
<TOTAL-LIABILITY-AND-EQUITY> 175,966,034
<SALES> 143,084,963
<TOTAL-REVENUES> 143,084,963
<CGS> 99,010,274
<TOTAL-COSTS> 114,862,476
<OTHER-EXPENSES> 14,362,104
<LOSS-PROVISION> 1,365,000
<INTEREST-EXPENSE> 323,363
<INCOME-PRETAX> 13,695,727
<INCOME-TAX> 5,574,000
<INCOME-CONTINUING> 8,121,727
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,121,727
<EPS-PRIMARY> .53
<EPS-DILUTED> .53
</TABLE>
