<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 March 31, 1996
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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
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(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, 1996, the number of shares outstanding of the
issuer's Common Stock was:
16,942,947
==========
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-1-
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF MARCH 31, 1996 AND DECEMBER 31, 1995
------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1996 1995
- ----------- ------------- --------------
CURRENT ASSETS
<S> <C> <C>
Cash and temporary cash investments $4,626,394 $3,387,562
Accounts receivable-less allowances
of $1,834,000 and $1,594,000,
respectively
51,872,979 52,501,016
Inventories
Finished and in-process products 33,860,446 34,614,735
Raw materials and supplies 6,554,879 6,635,012
------------ -------------
40,415,325 41,249,747
Prepaid expenses 3,990,823 3,948,972
------------ -------------
TOTAL CURRENT ASSETS 100,905,521 101,087,297
OTHER ASSETS
Excess of cost over fair value of net
assets of companies acquired 16,876,518 17,015,358
Patents and other intangible assets 2,987,979 2,924,256
Other 3,039,937 3,147,213
------------ -------------
22,904,434 23,086,827
PROPERTY, PLANT & EQUIPMENT, AT COST
Land 2,297,508 1,989,508
Buildings and leasehold improvements 35,363,056 35,325,705
Machinery and equipment 97,709,768 93,646,662
------------ -------------
135,370,332 130,961,875
Less allowances for depreciation and
amortization 64,115,705 61,532,126
------------ -------------
71,254,627 69,429,749
------------ -------------
$195,064,582 $193,603,873
============ =============
</TABLE>
<PAGE> 3
-2-
PART I - FINANCIAL INFORMATION
----------------------------------
MYERS INDUSTRIES, INC.
----------------------
CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION
AS OF MARCH 31, 1996 AND DECEMBER 31, 1995
------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1995
- ------------------------------------ ------------- -------------
CURRENT LIABILITIES
<S> <C> <C>
Accounts payable $15,134,376 $11,865,636
Employee compensation and related
items 7,862,735 9,736,457
Accrued expenses
Interest 18,573 182,262
Taxes, other than income taxes 1,168,066 1,160,766
Income taxes 3,456,656 1,068,474
Other 7,258,130 7,382,327
Current portion of long-term debt 487,373 976,104
------------ ------------
TOTAL CURRENT LIABILITIES 35,385,909 32,372,026
LONG-TERM DEBT, less current portion 6,977,329 13,335,191
DEFERRED INCOME TAXES 2,713,306 2,713,106
SHAREHOLDERS' EQUITY
Serial Preferred Shares -0- -0-
(authorized 1,000,000)
Common Shares, without par value 10,300,412 10,014,186
(authorized 30,000,000 shares;
outstanding 16,934,291 and
16,906,019, respectively)
Additional paid-in capital 111,382,116 111,382,116
Foreign currency translation
adjustment (413,460) (393,840)
Retained income 28,718,970 24,181,088
------------ ------------
149,988,038 145,183,550
------------ ------------
$195,064,582 $193,603,873
============ ============
</TABLE>
<PAGE> 4
-3-
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
---------------------
CONDENSED STATEMENT OF CONSOLIDATED INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
--------------------------------------------------
<TABLE>
<CAPTION>
March 31, March 31,
1996 1995
-------------- ------------
<S> <C> <C>
Net sales $72,554,256 $67,500,977
Costs and expenses
Cost of sales 48,204,214 46,290,759
Operating expenses 15,307,569 14,786,897
Interest expense, net 169,538 99,435
------------- -----------
Total costs & expenses 63,681,321 61,177,091
Income before income taxes 8,872,935 6,323,886
Income taxes 3,658,000 2,557,000
------------- -----------
Net income $5,214,935 $3,766,886
============= ===========
Net income per common share* $.31 $.22
Dividends per common share* $.04 $.036
Weighted average number of
common shares outstanding* 16,919,909 16,848,448
</TABLE>
*Adjusted for the ten percent stock dividend distributed in August, 1995.
<PAGE> 5
-4-
PART I - FINANCIAL INFORMATION
---------------------------------
MYERS INDUSTRIES, INC.
----------------------
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
--------------------------------------------------
<TABLE>
<CAPTION>
March 31, March 31
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES ----------- -----------
<S> <C> <C>
Net income $5,214,935 $3,766,886
Items not affecting use of cash
Depreciation 2,591,579 2,526,747
Amortization of excess of cost over fair
value of net assets of companies acquired 138,840 71,340
Amortization of other intangible assets 90,612 75,782
Cash flow provided by (used for) working capital
Accounts receivable 628,037 1,185,417
Inventories 834,422 (2,615,626)
Prepaid expenses (41,851) 823,661
Accounts payable and accrued expenses 3,502,614 (4,824,786)
---------- ----------
Net cash provided by operating activities 12,959,188 1,009,421
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from issuance of common stock 286,226 262,377
Additions to property, plant and
equipment, net (4,416,457) (2,487,709)
Cash dividends paid (677,053) (612,604)
Other (66,479) (2,018)
---------- ----------
Net cash used for investing activities (4,873,763) (2,839,954)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings - net (6,846,593) 2,824,351
---------- ----------
Net cash provided by (used for) financing activities (6,846,593) 2,824,351
INCREASE IN CASH AND TEMPORARY
CASH INVESTMENTS 1,233,832 993,818
CASH AND TEMPORARY CASH INVESTMENTS
JANUARY 1 3,387,562 1,794,703
---------- ----------
CASH AND TEMPORARY CASH INVESTMENTS
MARCH 31 $4,626,394 $2,788,521
========== ==========
</TABLE>
<PAGE> 6
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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 March 31, 1996 and the
results of operations and cash flows for the three months ended March 31, 1996
and 1995.
(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 1995 data adjusted for the ten percent stock dividend paid in
August, 1995.
(3) Supplemental Disclosure of Cash Flow Information
------------------------------------------------
The Company made cash payments for interest expense of $396,982 and
$210,954 for the three months ended March 31, 1996 and 1995, respectively.
Cash payments for income taxes were $1,269,618 and $329,216 for the three
months ended March 31, 1996 and 1995, respectively.
<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 months ended March 31, 1996 increased
$5,053,279 or 7.5 percent over the same period in 1995. The increase was
primarily due to the inclusion of Ameri-Kart Corp. which was acquired in June,
1995.
Cost of sales for the three month period ended March 31, 1996
increased $1,913,455 or 4.1 percent over the period ended March 31, 1995. This
was attributable to the increase in sales. Gross profit, expressed as a
percentage of sales, increased to 33.6 percent in 1996 from 31.4 percent for
the three month period in 1995 primarily due to lower raw material costs in the
Manufacturing segment.
Operating expenses increased $520,672 or 3.5 percent for the three
month period ended March 31, 1996, as compared to the same period in 1995.
Operating expenses, expressed as a percentage of sales, decreased to 21.1
percent as compared to 21.9 percent in 1995 as the result of cost controls and
greater fixed expense coverage.
Net interest expense for the three month period ended March 31, 1996
increased to $169,538 compared to $99,435 for the same period in 1995. The
increase was attributable to both higher average levels of debt and higher
interest rates in the current year.
Income taxes, expressed as a percentage of income before income taxes,
increased to 41.2 percent for the three months ended March 31, 1996, from the
40.4 percent in the same period in 1995. The higher effective tax rate
reflects an increase in non-deductible amortization expense and foreign tax
rate differences.
<PAGE> 8
-7-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Company's financial position continues to be solid. Cash provided
from operating activities is the primary source of liquidity and amounted to
$12,959,188 for the three month period ended March 31, 1996. During the
quarter long-term debt was reduced by $6,357,862 and total debt at March 31,
1995, expressed as a percentage of total capitalization, decreased to 4.7
percent as compared to 9.0 percent at December 31, 1995. Working capital
decreased to $65,519,612 at March 31, 1996 from $68,715,271 at December 31,
1995.
During the quarter, capital expenditures were $4,416,457. The Company
currently anticipates capital expenditures in the range of $15.0 to $20.0
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 fund capital
expenditures and meet its short-term and long-term operating needs.
<PAGE> 9
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PART II - OTHER INFORMATION
---------------------------
MYERS INDUSTRIES, INC.
----------------------
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Form 8-K
None
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 10, 1996 By: /s/ Gregory J Stodnick
- ------------------- -------------------------------
Date Gregory J. Stodnick
Vice President-Finance
Financial Officer (Duly
Authorized Officer and
Principal Financial and
Accounting Officer)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000069488
<NAME>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 4,626,394
<SECURITIES> 0
<RECEIVABLES> 53,706,979
<ALLOWANCES> 1,834,000
<INVENTORY> 40,415,325
<CURRENT-ASSETS> 100,905,521
<PP&E> 135,370,332
<DEPRECIATION> 64,115,705
<TOTAL-ASSETS> 195,064,582
<CURRENT-LIABILITIES> 35,385,909
<BONDS> 0
<COMMON> 10,300,412
0
0
<OTHER-SE> 139,687,626
<TOTAL-LIABILITY-AND-EQUITY> 195,064,582
<SALES> 72,554,256
<TOTAL-REVENUES> 72,554,256
<CGS> 48,204,214
<TOTAL-COSTS> 56,169,959
<OTHER-EXPENSES> 7,249,956
<LOSS-PROVISION> 240,000
<INTEREST-EXPENSE> 233,293
<INCOME-PRETAX> 8,872,935
<INCOME-TAX> 3,658,000
<INCOME-CONTINUING> 5,214,935
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,214,935
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
</TABLE>
