Myers Industries Inc. (MYE, Financial) filed Quarterly Report for the period ended 2009-03-31.
Myers Industries Inc. is an international manufacturer of polymer products for industrial agricultural automotive commercial and consumer markets. The Company is also the largest wholesale distributor of tools equipment and supplies for the tire service and undervehicle repair industry in the United States. Myers Industries Inc. has a market cap of $354.3 million; its shares were traded at around $10.05 with a P/E ratio of 22.3 and P/S ratio of 0.4. The dividend yield of Myers Industries Inc. stocks is 2.4%. Myers Industries Inc. had an annual average earning growth of 6.1% over the past 5 years.
Net interest expense for quarter ended March 31, 2009 was $2.4 million, a decrease of 19% compared to $3.0 million in the prior year. The decrease was the result of lower average borrowing levels and lower interest rates compared to the same period last year.
Cash used by operating activities from continuing operations was $2.4 million for the quarter ended March 31, 2009 compared to $9.3 million in the first quarter of 2008. The decrease in cash used for operations was primarily attributable to a $9.1 million reduction in cash used for working capital which more than offset a decline of $2.2 million in cash generated from income, excluding depreciation and other non-cash charges.
The change in cash flow used for working capital was the result of a reduction of inventory that generated $6.6 million more cash in the first quarter of 2009 compared to 2008 and the Company using $5.0 million less cash for accounts payable and other current liabilities in the current year. These benefits to cash flow were partially offset by an increase of $1.1 million used for accounts receivable, primarily related to seasonal business in the Companys Lawn and Garden segment and an increase of $1.4 million for prepaid expenses in the first quarter of 2009.
Capital expenditures were approximately $1.4 million in the quarter ended March 31, 2009 and are expected to be in the range of $15 to $20 million for the year. In addition, the Company used cash to pay dividends of $2.1 million in the first quarter of 2009.
Total debt at March 31, 2009 was approximately $181.5 million compared with $169.5 million at December 31, 2008. The Companys Credit Agreement provides available borrowing up to $250 million and, as of March 31, 2009, the Company had approximately $174 million available under this agreement. The Credit Agreement expires in October 2011 and, as of March 31, 2009 the Company was in compliance with all its debt covenants. The significant financial covenants include 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 December March 31, 2009 are shown in the following table:
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Myers Industries Inc. is an international manufacturer of polymer products for industrial agricultural automotive commercial and consumer markets. The Company is also the largest wholesale distributor of tools equipment and supplies for the tire service and undervehicle repair industry in the United States. Myers Industries Inc. has a market cap of $354.3 million; its shares were traded at around $10.05 with a P/E ratio of 22.3 and P/S ratio of 0.4. The dividend yield of Myers Industries Inc. stocks is 2.4%. Myers Industries Inc. had an annual average earning growth of 6.1% over the past 5 years.
Highlight of Business Operations:
Net sales in the Lawn and Garden segment in the first quarter of 2009 were down $16.0 million or 17% compared to the first quarter of 2008. Approximately $8.7 million of the decrease was due to foreign currency translation from the unfavorable impact of the exchange rates for the Canadian dollar. Excluding the impact of foreign currency translation, sales in this segment were down $7.3 million. Volume declines of $11.2 million were partially offset by increases of $3.9 million from higher selling prices.Net interest expense for quarter ended March 31, 2009 was $2.4 million, a decrease of 19% compared to $3.0 million in the prior year. The decrease was the result of lower average borrowing levels and lower interest rates compared to the same period last year.
Cash used by operating activities from continuing operations was $2.4 million for the quarter ended March 31, 2009 compared to $9.3 million in the first quarter of 2008. The decrease in cash used for operations was primarily attributable to a $9.1 million reduction in cash used for working capital which more than offset a decline of $2.2 million in cash generated from income, excluding depreciation and other non-cash charges.
The change in cash flow used for working capital was the result of a reduction of inventory that generated $6.6 million more cash in the first quarter of 2009 compared to 2008 and the Company using $5.0 million less cash for accounts payable and other current liabilities in the current year. These benefits to cash flow were partially offset by an increase of $1.1 million used for accounts receivable, primarily related to seasonal business in the Companys Lawn and Garden segment and an increase of $1.4 million for prepaid expenses in the first quarter of 2009.
Capital expenditures were approximately $1.4 million in the quarter ended March 31, 2009 and are expected to be in the range of $15 to $20 million for the year. In addition, the Company used cash to pay dividends of $2.1 million in the first quarter of 2009.
Total debt at March 31, 2009 was approximately $181.5 million compared with $169.5 million at December 31, 2008. The Companys Credit Agreement provides available borrowing up to $250 million and, as of March 31, 2009, the Company had approximately $174 million available under this agreement. The Credit Agreement expires in October 2011 and, as of March 31, 2009 the Company was in compliance with all its debt covenants. The significant financial covenants include 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 December March 31, 2009 are shown in the following table:
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