Myers Industries, Inc. · NYSE:MYE
Myers Industries — Investor Presentation (July 2012)
22 slides from Myers Industries's investor presentation, July 2012
Slide 1: Strengthened Foundation. Strong Results.
Strengthened Foundation. Strong Results. July 2012
Slide 2: Forward-looking statements
Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial results may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators and expectations. Wheneve
Slide 3: Myers Industries at a glance
¡ NYSE: MYE ¡ Founded in 1933 ¡ Headquartered in Akron, Ohio ¡ Diversified International manufacturer of polymer products and wholesale distributor that operates in four segments: Material Handling Distribution Lawn & Garden Engineered Products 3
Slide 4: Business Segments
| Business Seqments Lawn & Garden AKRO-MILS 3BUCKHORN 3 MYERS e PANTS AKRO.MILS” NS Scone ‘The most recognized brands for» Plats Reusebe Cotaners es eading brands for plastic * Pat Flowerpots reusable cortainers and pallets Pate Aareutturs Seed 4 E ray Systeme += Greenhouse Growers io reliscatrt a o
Slide 5: Key Management Capabilities
§Structure the organization closer to the customer -‐ decentralize §Build and maintain processes to maximize customer input §Lead our industries in service, quality and delivery Key Management Capabilities §Deliver next-‐generation products/services in high niche markets §Utilize “Voice of th
Slide 6: Sales and EPS year to date June 2012
q Sales increased 1.9% Sales $390 § Strong sales in Engineered Products $380 $372.8 $379.9 ü 36% increase year – over –year $370 $360 § Sales delayed in Material Handling to $350 late in second half of 2012 $340 YTD June YTD June § Sales lower in Lawn & Garden due to 2011 2012 higher customer i
Slide 7: Initiatives producing higher gross margins
33.0% 30.0% 29.2% 27.7% 27.0% 27.7% 27.0% 26.2% 25.1% 25.1% 25.1% 23.5% 24.1% 23.5% 24.0% 22.1% 22.2% 22.2% 21.0% 20.0% 19.3% 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% 2009 2010 2009 2010 2010 2011 2011 2012 2010 2011 2010 2011 2010 2011 2011 2012 Sept Dec March June Sept Dec March June Resin cost ↑ 19%
Slide 8: Flexible Balance Sheet
$(Millions) $120 $100 $80 $60 $77 $24 $52 $37 $20 $40 $57 $42 $29 $55 $31 $25 $18 $20 $44 $41 $25 $28 $20 $25 $21 $22 $18 $12 $19 $16 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Capital Expenditures Free Cash Flow Notes: 1) Free cash flow calculated as cash flow from continuing oper
Slide 9: Capital allocation framework
Grow Maintain the Return Capital Stakeholder Business to Stakeholders Value Working New Product Dividends Capital Development Share Capital Process Repurchase Expenditures Improvements Debt Safety Training Reduction Organic Growth Capital Bolt-‐on Acquisitions 9
Slide 10: Well Positioned to make selective, high return investments
$350 58% 70% 55% $300 48% 44% 60% 42% 43% $250 42% 40% 50% 35% $200 29% 28% 26% 40% $150 30% $100 20% $50 10% $0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Debt ($ Millions) Debt to Capital Note: 1) Debt-‐to-‐Capital ratio calculated as debt/(debt+equity). Well Positioned to ma
Slide 11: Dividend paid each year since public in 1971
¡ Dividend paid each year since public in 1971 q Q1 2012 -‐ quarterly dividend increased by 14.3% Dividends Paid Current Yield $0.30 5.8% $0.25 CAGR = $0.20 $0.28 2.0% $0.15 $0.26 $0.22 $0.24 $0.24 $0.18 $0.18 $0.19 $0.20 $0.20 $0.10 $0.15 $0.17 $0.05 Yield as of July 25, 2012 2000 2001 2002 2003
Slide 12: 2012 priorities
q Target 5% of total sales in 2012 to come from new products/solutions introduced in the last three years q Incur $2.5 million in IT expenditures to modernize tools and capabilities q Increase capital expenditures to $30 million q Growth capital of approximately 50% q Continue to seek acquisiti
Slide 13: Second half 2012 outlook by segment
q Results in Material Handling should benefit from a shift in customer orders from the second quarter of this year to late in the second half of this year q Anticipate improved results in Lawn & Garden in second half due to stronger order activity and lower costs resulting from operations excellenc
Slide 14: Appendix
Appendix MYERS INDUSTRIES, INC.
Slide 15: Financial strategy targets
q Generate returns above cost-‐of-‐capital q Produce strong free cash flow q Achieve organic growth > 1.5x GDP q Target a 5% reduction in COGS each year q Maintain strong financial position q Balanced approach to capital allocation including returning cash to shareholders 15
Slide 16: Summary: focused strategy and improving results
¡ Focused strategy § Customer Dedication § Innovation § Operations Excellence § Organization Development § Financial Strength ¡ Improving gross margins, earnings, cash flow, and returns ¡ Strong flexible balance sheet ¡ Balanced approach to use of capital 16
Slide 17: Material Handling: MHEM Index
Material Handling MHEM (Material Handling Equipment) Index Source: Material Handling Industry of America, April 2012 17
Slide 18: Lawn & Garden: housing starts and consumer spending
Lawn & Garden NAHB Housing Starts; Consumer Spending Indices Sources: NaAonal AssociaAon of Home Builders (NAHB); June 2012 Thomson Reuters/University of Michigan; June 2012 Preliminary 18
Slide 19: Distribution: tire shipments, miles driven, fuel prices
Distribution Replacement Tire Shipments; Miles Driven; Fuel Prices 8.00% 6.00% 4.00% 2.00% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F -2.00% -4.00% -6.00% -8.00% Miles Driven (B) Repl Tire Shipments- Source: RMA RMA;and JP Morgan Myers Tire Supply Market Analysis Gasoline Sa
Slide 20: Engineered Products: RV and auto production
Engineered Products RVIA; Motor Vehicle and Parts Production RV Shipments Autos and Light Truck Assemblies Y/Y Percent Change (3mo moving avg.) Units (000) RV Unit Shipments (000) % C hange from P/Y Autos and light truck assemblies; s.a. 450.0 60 Annual Rate of C hange 400.0 50 12.00 80.0 Annual Rat
Slide 21: Evolution of the Portfolio
Evolution of the Portfolio Evolution of the Myers Industries Business Portfolio Distribution Manufacturing Key Organic Growth & Secondary Acquisitions & Current Business Core Business Operations Begin Primary Acquisitions Bolt-On Expansions Segments/Units 5 Akro-Mils Lawn & Listo Products? (1999) Ga
Slide 22: Myers Industries, Inc.
MYERS NDUSTRIES, NC.