Myers Industries Inc. (MYE, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $295.2 million; its shares were traded at around $8.37 with a P/E ratio of 17.7 and P/S ratio of 0.4. The dividend yield of Myers Industries Inc. stocks is 2.9%. Myers Industries Inc. had an annual average earning growth of 6.1% over the past 5 years.
Net sales in the Lawn and Garden segment for the nine months ended September 30, 2009 were down $55.8 million or 26% compared to the nine months ended September 30, 2008. Approximately $13.2 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 were down $42.6 million. Volume declines of $43.8 million were partially offset by increases of $1.2 million from higher selling prices.
Selling, general and administrative expenses for the nine months ended September 30, 2009 were $116.4 million, a decrease of $6.0 million from the same period in the prior year. Expenses in 2009 include 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 for the Material Handling businesses. SG&A expenses in 2008 included $4.3 million of charges, primarily related to consulting and severance costs in the Companys Lawn and Garden business and other costs for an executive retirement plan. Excluding these charges, SG&A expenses in the nine months ended September 30, 2009 declined $16.5 million compared to the prior year primarily from reduced freight and selling expenses due to lower sales volumes and savings from restructuring and cost control initiatives.
Cash provided by operating activities from continuing operations was $32.5 million for the nine months ended September 30, 2009 compared to $13.4 million for the nine months ended September 30, 2008. The increase in cash provided by operations was primarily attributable to a $23.7 million increase from working capital which more than offset a decline of $4.6 million in cash generated from income, depreciation and other non-cash charges.
The increase in cash flow provided by working capital was primarily the result of a reduction of inventory that generated $16.5 million in the nine months ended September 30, 2009 compared to 2008. The reductions in inventory in 2009 resulted from ongoing restructuring programs, particularly in the Lawn and Garden segment, and other working capital initiatives. In addition, the Company used $19.0 million less cash for accounts payable and other current liabilities in 2009 compared to 2008. During the nine months ended September 30, 2008, cash used for accounts payable and accrued expenses was significantly impacted by the payment of income taxes, a special dividend and other expenses related to the Companys terminated merger agreement. These benefits to cash flow were partially offset by a decrease of $4.1 million in cash provided by accounts receivable and $7.8 million used for prepaid expenses in the nine months ended September 30, 2009.
Capital expenditures were approximately $6.4 million for the nine months ended September 30, 2009 and are expected to be in the range of $15 to $20 million for the year. The Company also paid $1.2 million for the remaining 50% interest in Amerikan LLC, a previously held equity investment, and received $2.8 million in proceeds from the sale of fixed assets. In addition, the Company used cash to pay dividends of $6.3 million in the nine months ended September 30, 2009.
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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 $295.2 million; its shares were traded at around $8.37 with a P/E ratio of 17.7 and P/S ratio of 0.4. The dividend yield of Myers Industries Inc. stocks is 2.9%. Myers Industries Inc. had an annual average earning growth of 6.1% over the past 5 years.
Highlight of Business Operations:
Selling, general and administrative expenses for the quarter ended September 30, 2009 were $34.4 million, a decrease of $6.5 million from the same period in the prior year. Expenses in 2009 include charges of approximately $3.9 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 for the Material Handling businesses. SG&A expenses in 2008 included $2.6 million of charges primarily related to consulting and other restructuring expenses in the Lawn and Garden business. Excluding these charges, SG&A expenses in the quarter ended 2009 declined $7.8 million compared to the prior year, including a reduction of $5.1 million from freight and selling expenses due to lower sales volumes and savings from restructuring and cost control initiatives.Net sales in the Lawn and Garden segment for the nine months ended September 30, 2009 were down $55.8 million or 26% compared to the nine months ended September 30, 2008. Approximately $13.2 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 were down $42.6 million. Volume declines of $43.8 million were partially offset by increases of $1.2 million from higher selling prices.
Selling, general and administrative expenses for the nine months ended September 30, 2009 were $116.4 million, a decrease of $6.0 million from the same period in the prior year. Expenses in 2009 include 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 for the Material Handling businesses. SG&A expenses in 2008 included $4.3 million of charges, primarily related to consulting and severance costs in the Companys Lawn and Garden business and other costs for an executive retirement plan. Excluding these charges, SG&A expenses in the nine months ended September 30, 2009 declined $16.5 million compared to the prior year primarily from reduced freight and selling expenses due to lower sales volumes and savings from restructuring and cost control initiatives.
Cash provided by operating activities from continuing operations was $32.5 million for the nine months ended September 30, 2009 compared to $13.4 million for the nine months ended September 30, 2008. The increase in cash provided by operations was primarily attributable to a $23.7 million increase from working capital which more than offset a decline of $4.6 million in cash generated from income, depreciation and other non-cash charges.
The increase in cash flow provided by working capital was primarily the result of a reduction of inventory that generated $16.5 million in the nine months ended September 30, 2009 compared to 2008. The reductions in inventory in 2009 resulted from ongoing restructuring programs, particularly in the Lawn and Garden segment, and other working capital initiatives. In addition, the Company used $19.0 million less cash for accounts payable and other current liabilities in 2009 compared to 2008. During the nine months ended September 30, 2008, cash used for accounts payable and accrued expenses was significantly impacted by the payment of income taxes, a special dividend and other expenses related to the Companys terminated merger agreement. These benefits to cash flow were partially offset by a decrease of $4.1 million in cash provided by accounts receivable and $7.8 million used for prepaid expenses in the nine months ended September 30, 2009.
Capital expenditures were approximately $6.4 million for the nine months ended September 30, 2009 and are expected to be in the range of $15 to $20 million for the year. The Company also paid $1.2 million for the remaining 50% interest in Amerikan LLC, a previously held equity investment, and received $2.8 million in proceeds from the sale of fixed assets. In addition, the Company used cash to pay dividends of $6.3 million in the nine months ended September 30, 2009.
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