Myers Industries Reports Select Preliminary 2018 Third Quarter Financial Information
October 04 2018 - 4:30PM
Business Wire
Company Expects to Report Full Quarterly
Financial Results on November 6
Myers Industries, Inc. (NYSE: MYE), an international
manufacturer of polymer products for industrial, agricultural,
automotive, commercial and consumer markets, today announced select
preliminary third quarter 2018 financial information.
The Company’s preliminary financial information for the third
quarter ended September 30, 2018 is based on unaudited information
and is subject to the Company completing its customary quarterly
close and review procedures.
- Net sales of approximately $135
million, flat to the third quarter of last year
- GAAP net loss per diluted share from
continuing operations in the range of $0.36 to $0.38, including the
impairment charge discussed below, compared with GAAP net income of
$0.10 in the third quarter of 2017
- Adjusted net income per diluted share
from continuing operations in the range of $0.14 to $0.16, compared
with $0.10 in the third quarter of 2017
- The Company expects to recognize a
non-cash, pre-tax impairment charge of $23 million in the third
quarter of 2018 related to the sale in 2015 of the Company’s Lawn
and Garden business and the associated promissory note (please
refer to the paragraph below for additional details)
- The Company now expects that fiscal
year 2018 total sales will be flat to up low-single-digits on a
constant currency basis compared with the prior year
“While our third quarter financial performance reflected the
traditional seasonal slowdown in the second half of each year,
results were further impacted by lower-than-expected sales in the
Distribution Segment. Because of continued disappointing
performance in this segment, we are reviewing several more
aggressive actions and will communicate those actions in the coming
weeks,” said Dave Banyard, President and Chief Executive Officer of
Myers Industries.
“Within the Material Handling Segment, we also saw a more
pronounced slowdown than anticipated in the RV market,” added Mr.
Banyard. “Despite these challenges, we continue to generate strong
cash flow, and we remain confident about the future outlook for
Myers Industries.”
Anticipated Charges Related to HC
Companies Promissory Notes and Lease
In February 2015, the Company sold its Lawn and Garden business
to an entity controlled by Wingate Partners V, L.P. The terms of
the transaction included promissory notes totaling $20 million (the
notes) that mature in August 2020. The carrying value of the notes
and corresponding accrued interest as of September 30, 2018
was approximately $23 million.
During the third quarter of 2018, management of the Lawn and
Garden business, now named HC Companies, Inc. (HC), requested an
extension to the maturity of the notes as part of an effort to
restructure their debt. The Company believes there is uncertainty
about the ability to collect on the notes. As a result, under
accounting rules, the Company expects to recognize a non-cash,
pre-tax impairment charge of $23 million in the third quarter of
2018 with respect to the notes. Additionally, the Company is a
guarantor for one of HC’s facility leases expiring in 2025.
Remaining rent payments under the lease total $14 million. The
Company is still evaluating the amount of the charge to recognize
for this guarantee.
Use of Non-GAAP Financial
Measures
The Company uses certain non-GAAP measures in this release.
Adjusted net income per diluted share from continuing operations,
income from continuing operations as adjusted, adjusted income per
diluted share from continuing operations, operating income as
adjusted, adjusted operating income, adjusted EPS, adjusted EBITDA
and free cash flow are non-GAAP financial measures and are intended
to serve as a supplement to results provided in accordance with
accounting principles generally accepted in the United States.
Myers Industries believes that such information provides an
additional measurement and consistent historical comparison of the
Company’s performance. A reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP measures is available
in this news release.
About Myers Industries,
Inc.
Myers Industries, Inc. is an international manufacturer of
polymer products for industrial, agricultural, automotive,
commercial and consumer markets. The Company is also the largest
distributor of tools, equipment and supplies for the tire, wheel
and under- vehicle service industry in the United States. Visit
www.myersindustries.com to learn
more.
Caution on Forward-Looking
Statements
Statements in this release include “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Any statement that is not of historical fact may be deemed
“forward-looking”. Words such as “expect”, “believe”, “project”,
“plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”,
“goal”, “view” and similar expressions identify forward-looking
statements. These statements are based on management's current
views and assumptions of future events and financial performance
and involve a number of risks and uncertainties, many outside of
the Company's control that could cause actual results to materially
differ from those expressed or implied. Risks and uncertainties
include: raw material availability, increases in raw material
costs, or other production costs; risks associated with our
strategic growth initiatives or the failure to achieve the
anticipated benefits of such initiatives; unanticipated downturn in
business relationships with customers or their purchases;
competitive pressures on sales and pricing; changes in the markets
for the Company's business segments; changes in trends and demands
in the markets in which the Company competes; operational problems
at our manufacturing facilities, or unexpected failures at those
facilities; future economic and financial conditions in the United
States and around the world; inability of the Company to meet
future capital requirements; claims, litigation and regulatory
actions against the Company; changes in laws and regulations
affecting the Company; and other risks as detailed in the Company's
10-K and other reports filed with the Securities and Exchange
Commission. Such reports are available on the Securities and
Exchange Commission's public reference facilities and its website
at www.sec.gov and on the Company's
Investor Relations section of its website at www.myersindustries.com. Myers Industries
undertakes no obligation to publicly update or revise any
forward-looking statements contained herein. These statements speak
only as of the date made.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181004005808/en/
Myers Industries, Inc.Monica Vinay, (330) 761-6212Vice
President, Investor Relations & Treasurer
Myers Industries (NYSE:MYE)
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