Myers Industries Inc. (NYSE:MYE) filed Quarterly Report for the period ended 2010-09-30.
Myers Industries Inc. has a market cap of $345.35 million; its shares were traded at around $9.78 with a P/E ratio of 22.74 and P/S ratio of 0.49. The dividend yield of Myers Industries Inc. stocks is 2.66%.MYE is in the portfolios of Mario Gabelli of GAMCO Investors, Paul Tudor Jones of The Tudor Group.
Highlight of Business Operations:Selling, general and administrative expenses for the quarter ended September 30, 2010 were $35.2 million, an increase of $0.8 million or 2% compared to the same period in the prior year. SG&A expense in the third quarter of 2010 includes restructuring and other unusual charges of $0.1 million compared with charges in the third quarter of 2009 of approximately $3.9 million for consulting, severance, the movement of machinery and equipment, and other restructuring activities. Other SG&A expenses increased approximately $4.6 million for the quarter ended September 30, 2010 compared with the prior year, primarily due to increased freight and other selling expenses resulting from higher sales volume in the current year.
Income before taxes for the quarter ended September 30, 2010, was $4.6 million compared to a loss of $1.8 million in the prior year. The increase in income was primarily due to the impact of higher sales and the resulting $5.0 million increase in gross profit. In addition, results for the quarter ended September 30, 2009 were negatively impacted by restructuring charges of $3.9 million and impairment charges of $1.9 million which more than offset the increase of other operating expenses in the current year.
Selling, general and administrative expenses for the nine months ended September 30, 2010 were $103.6 million, a reduction of $12.8 million or 11% compared with the prior year. SG&A expenses in the nine months ended September 30, 2010 include restructuring and other unusual expenses of $1.1 million offset by a gain from the sale of a closed manufacturing facility of $0.7 million. SG&A expense in the nine months ended September 30, 2009 includes charges of approximately $14.8 million for severance, the movement of machinery and equipment and other restructuring activities of the Lawn and Garden businesses as well as consulting costs related to manufacturing and productivity programs in the Material Handling businesses. Excluding the impact of restructuring and related charges, other SG&A expenses in the nine months ended September 30, 2010 were approximately 18.7% of sales compared with 19.8% in the prior year period.
Cash provided by operating activities from continuing operations was $14.5 million for the nine months ended September 30, 2010 compared to $32.5 million for the nine months ended September 30, 2009. The decrease of $18 million in cash provided by operations was partially attributable to a use of $17.9 million for working capital in the nine months ended September 30, 2010 compared with cash used for working capital of $8.9 million in the prior year. In addition, there was a reduction of $9 million in cash generated from income, depreciation and other non-cash charges.
In the nine months ended September 30, 2010, a reduction of inventories generated approximately $5.0 million of cash compared to $10.4 million of cash generated for the same period in 2009. The reduction of inventories in 2010 resulted from ongoing working capital initiatives; however, more significant reductions of inventory were achieved in 2009 due to restructuring programs, including the closure of four manufacturing facilities. In the nine months ended September 30, 2010, increasing sales resulted in increased accounts receivable and the use of $17.8 million of working capital compared with $8.9 million of cash generated in 2009. In addition, there was a reduction of $14.5 million in cash used for accounts payable and accrued expenses in the nine months ended September 30, 2010 compared to 2009. The reduction in cash used for accounts payable and accrued expenses in 2010 was the result of decreased cash payments for income taxes and employee compensation.
Total debt at September 30, 2010 was approximately $107.1 million compared with $104.3 million at December 31, 2009. The Companys Credit Agreement provides available borrowing up to $250 million and, as of September 30, 2010, there was approximately $244 million available under this agreement. The Company has $65 million of 6.08% Senior Notes maturing in December 2010 which it currently expects to retire using funds available under the Credit Agreement. Based on current interest rates, the retirement of the Senior Notes would reduce annual interest expense by approximately $3 million. The Credit Agreement expires in October 2011 and, based on current market conditions and our current and projected operating results, we anticipate a successful refinancing on reasonably comparable terms. As of September 30, 2010 the Company was in compliance with all its debt covenants. The most restrictive financial covenants for all of the Companys debt are an interest coverage ratio and a leverage ratio, defined as earnings before interest, taxes, depreciation, and amortization, as adjusted, compared to total debt. The ratios as of and for the period ended September 30, 2010 are shown in the following table:
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