Myers Industries, Inc. · NYSE:MYE

Myers Industries — Investor Presentation (May 2006)

34 slides from Myers Industries's investor presentation, May 1, 2006

  1. Slide 1: Myers Industries 2006 Investor Overview

    Myers Industries 2006 Investor Overview Summary of Business, Performance & Strategy As of May 1, 2006 Financials for the Year Ended December 31, 2005 & the First Quarter Ended March 31, 2006 NYSE: MYE 1

  2. Slide 2: Forward Looking Statements Disclosure

    Forward Looking Statements Disclosure 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 curren

  3. Slide 3: Myers Industries Quick Profile

    Myers Industries-- Quick Profile • Diversified, international manufacturing and distribution company with record net sales of $903.7 million in 2005. • Manufacturing Segments: Four segments designing and producing plastic and rubber products for industrial, automotive, agricultural, commercial, and

  4. Slide 4: Management & Organization Changes 2005-06

    Management & Organization Changes - - 2005 - 06 • Business Units Under Five Groups (Reporting Segments) -- January ‘05 • John Orr -- Appointed President & CEO from COO Position in May ‘05 • Managing Directors -- Named for Each Business Group in June ‘05 • Don Merril -- Transitioned to CFO Position i

  5. Slide 5: Strategic Business Evolution Process

    “Strategic Business Evolution” Process New, More Performance-Driven Operating Evolution Focused on Benefits For Employees, Customers & Shareholders. Five Key Operating Principles Are Behind the Strategic Business Evolution that Improved Results in 2005 and Will Drive Our Efforts For Sustainable, Pro

  6. Slide 6: Strategic Business Evolution Key Points: Business Growth, Customer Satisfaction

    Strategic Business Evolution-- Key Points  Business Growth  Consistent New Product Innovation -- Lead Our Markets  Further Develop Both Existing & New Markets Through Brand Strength, Cross-Selling Synergies & Diverse Capabilities  Add Unique Value for Customers in Products & Services  Implement

  7. Slide 7: Strategic Business Evolution Key Points: Cost Control, Organizational Development

    Strategic Business Evolution-- Key Points  Cost Control  Spend the Company’s Money as Cautiously as We Do Our Own  Preserve Cost Reductions Already Made  Withdraw from Low-Margin, High-Cost Markets  Continuous Improvement of Efficiency & Equipment Utilization, Including Consolidation & Rational

  8. Slide 8: Strategic Business Evolution Key Points: Positioning for the Future

    Strategic Business Evolution-- Key Points  Positioning the Business for the Future  Be the Innovator of Niche, High-Margin Products in our Markets  Be the Low-Cost Producer of Select Commodity Products That Build or Maintain Our Product & Brand Leadership  Constantly Review & Finesse the Long-Te

  9. Slide 9: Financial Results & Segments Overview

    2005 Financial Results & Segments Overview 9

  10. Slide 10: 2005 Key Financial Highlights

    2005 Key Financial Highlights Year Ended December 31, % 2005 2004 Change Net Sales $903,679 $803,070 12.5 Operating Expenses 190,182 186,724 1.9 Income Before Taxes 40,407 38,729 4.3 Net Income 26,556 25,710 3.3 Net Income Per Share* .76 .76 -- Working Capital $143,086 $147,820 -3.2 Total Debt $252,

  11. Slide 11: 2005 Key Performance Highlights vs. '04

    2005 Key Performance Highlights vs. ‘04  Record Sales for the year -- $101M Increase  $39.0M from Acquisitions  $ 2.5M from Favorable F/X  $59.5M (approximate) from Pricing Gains (60%) and Volume (40%)  EPS of $0.76 Even with 2004  Issued 1.1M Shares Related to Pro Cal Acquisition  Increase i

  12. Slide 12: 2005 Key Performance Highlights: Debt Paydown, Capex, Dividends

    2005 Key Performance Highlights vs. ‘04  Paid Down $24.6M in Debt in 2005  Debt at December 31, 2005 = $252.8M, Down from $277.4M at December 31, 2004  Debt to Capitalization = 43% compared to 44%  Capital Expenditures = $26.9M, up 4% from $25.9M in ‘04  New Products  New Manufacturing Equipme

  13. Slide 13: Manufacturing Segments: Approx. 80% of Sales in 2005

    Manufacturing Segments: Approx. 80% of Sales in 2005* • Four Manufacturing Segments (“Groups”), 12 Brands:  Material Handling— North America (23% of sales*): The Leaders in Reusable Plastic Containers and Pallets  Material Handling— Europe (18% of sales*): Europe’s Top Brands for Reusable Plastic

  14. Slide 14: Broad Manufacturing Capabilities

    Broad Manufacturing Capabilities • 30 manufacturing facilities in 7 countries, producing more than 11,000 products • No other manufacturer in our class can match our combined design, engineering, and production capabilities = Value for Customers > Injection Molding > Winding Extrusion > Rubber-to-Pl

  15. Slide 15: Material Handling North America & Europe Groups

    Material Handling - - North America & Europe Groups Leadership Brands, Strong Innovation & Market Positions Akro-Mils™ Buckhorn® Plastic Storage, Organization & Transport Reusable Plastic Material Handling Containers & Products for Industrial & Commercial Markets Pallets for Manufacturing, Distribut

  16. Slide 16: Material Handling Spotlight

    Material Handling Spotlight: The Industry’s Most Respected Brands Fueled by Custom Product Innovation. . . System Bins™ continue the innovation and evolution in our Akro-Mils® small parts storage bins. Whether in industrial or commercial markets, this versatile six-bin unit speeds set up and organiz

  17. Slide 17: Material Handling North America 2005 Performance Overview

    Material Handling -- North America 2005 Performance Overview  Net Sales Up 11% to $209.5M  Approx. 23% of Total Net Sales for Myers  Income Before Taxes Down 17% to $16.3M  Key Influencers: External: North American Industrial Economy; Resin Prices; Industry Conversions to Reusable Packaging to R

  18. Slide 18: Material Handling Europe 2005 Performance Overview

    Material Handling -- Europe 2005 Performance Overview  Net Sales of $166.8M vs $167.2M in ‘04  Approx. 18% of Total Net Sales for Myers  Income Before Taxes $8.3M, Up 40%  Key Influencers: External: European Economy; Resin Prices; Industry Conversions to Reusable Packaging to Reduce Costs Intern

  19. Slide 19: Lawn & Garden Group: Leadership Brands

    Lawn & Garden Group: Leadership Brands, Strong Market Positions with Growers & Retailers, Constant Innovation. . . Dillen Products® Listo Products™ Plastic Flats, Trays, Pots & Hanging Baskets Decorative Resin Planters for for Growers Retailers / Consumers Productivity California (Pro Cal)™ Custom p

  20. Slide 20: Lawn & Garden Spotlight: Proprietary Product Strengths

    Lawn & Garden Spotlight: Proprietary Product Strengths -- Consistent, Unique Offerings to the Marketplace Decorative resin planters from our Listo brand undergo a rigorous development ™ process, which includes coast-to-coast marketing focus groups to detail style, color, and purchasing potential com

  21. Slide 21: Lawn & Garden 2005 Performance Overview

    Lawn & Garden 2005 Performance Overview  Record Net Sales of $170.4M, Up 44%  Approx. 19% of Total Net Sales for Myers  Record Income Before Taxes of $16.4M, Up 37%  Key Influencers: External: Strong Horticulture Markets; Resin Prices Internal: Top Brands; Continuous New Products; High-Speed, Lo

  22. Slide 22: Automotive & Custom Group: Diverse Capabilities

    Automotive & Custom Group: Diverse Capabilities Buckhorn Rubber Products™ Michigan Rubber Products ™ Molded Air Hoses, Seals, Latches & OEM Parts for Molded Air Hoses, Vibration Isolators, Tubing & Markets such as Heavy-Truck & Construction Seals for Automotive OEMs & Suppliers Patch Rubber™ Ameri-K

  23. Slide 23: Automotive & Custom 2005 Performance Overview

    Automotive & Custom 2005 Performance Overview  Record Net Sales of $195.1M, Up 14%  Approx. 22% of Total Net Sales for Myers  Income Before Taxes of $10.0M, Down 24%  Key Influencers: External: Performance of Auto, Truck & OE Equipment Markets; Plastic & Rubber Material Prices; Industrial Econom

  24. Slide 24: Distribution Segment: Approx. 21% of Sales in 2005

    Distribution Segment: Approx. 21% of Sales in 2005 • Our brand leadership and broad distribution capabilities make us the “one-stop-shop” for tire service customers to purchase tools, equipment, and supplies. . .  Tire Valves & Accessories  Tire Changing & Balancing Equipment  Lifts & Alignment E

  25. Slide 25: Distribution Segment Markets & Capabilities

    Distribution Segment Markets & Capabilities Markets Served Key Capabilities for Our Brand  Independent (Retail) Tire Dealers Strength & Market Leadership. . .  Truck Tire Dealers  Nationwide Sales Coverage  Auto Dealers  Product Scope -- Nearly 10,000 Items  Commercial Auto & Truck Fleets  Na

  26. Slide 26: Distribution 2005 Performance Overview

    Distribution 2005 Performance Overview  Record Net Sales: $189.9M, Up 11%  Approx. 21% of Total Net Sales for Myers  Record Income Before Taxes: $20.6M, Up 19%  Key Influencers: Increased Auto and Truck Population; More Miles Driven; Regular Maintenance Needs on Newer Vehicles; Expansion of Dome

  27. Slide 27: First Quarter 2006 Earnings Results

    First Quarter 2006 Earnings Results. . . (Quarter Ended March 31, 2006) 27

  28. Slide 28: 2006 Q1 vs. 2005 Q1 Record Results

    2006 Q1 vs. 2005 Q1 -- RECORD RESULTS!  All Time for Any Quarter in the Company’s History . . . First Quarter Ended March 31, 2006  Net Sales!  Net Income!  Record Net Sales of $244.9M, an Increase of 3.7%  Compared to $236.2M in 2005  Record Net Income of $10.8M, an Increase of 38.4%  Compar

  29. Slide 29: Q1 Performance Driven by Strategic Business Evolution

    2006 Q1 vs. 2005 Q1 -- RECORD RESULTS!  First Quarter Strengthened Performance Driven by Our Focus on “Strategic Business Evolution” Points. . .  Strategic Selling Price Adjustments  Cost Controls  Improving Productivity  Gross Margins in Q1 Increased to 28.3% of Sales Compared to 27.0% of Sale

  30. Slide 30: 2006 Q1 vs. 2005 Q1 Segment Results

    2006 Q1 vs. 2005 Q1 -- Segment Results  Distribution Segment  Net Sales Increased 10.4% to $46.5M  Income Before Taxes Increased 29.7% to $4.8M  Factors: Strong Demand/Sales, Pricing, Effective Cost Controls  Material Handling-- North America Segment  Net Sales Increased 7.3% to $62.0M  Incom

  31. Slide 31: 2006 Q1 vs. 2005 Q1 Segment Results (continued)

    2006 Q1 vs. 2005 Q1 -- Segment Results  Automotive and Custom Segment  Net Sales Increased 8.1% to $51.9M  Income Before Taxes Increased 46.2% to $3.8M  Factors: Strong Demand from Markets; Selling Price Adjustments Across Product Lines and Markets; Improved Productivity  Lawn and Garden Segmen

  32. Slide 32: 2006 Q1 vs. 2005 Q1 Debt Reduction

    2006 Q1 vs. 2005 Q1 -- Debt Reduction  Paid Down $2.1M in Debt in 1Q 2006  Debt at March 31, 2006 = $250.7M  Debt at December 31, 2005 = $252.8M  Debt - to - Capitalization at March 31, 2006 = 42%  Debt - to - Cap at December 31, 2005 = 43% 32

  33. Slide 33: 2006 Key Issues to Strengthen Our Performance

    2006 -- Key Issues to Strengthen Our Performance!  Continued Investments in New Products and Processes  Continued Investments in Emerging Growth Markets  Potential Divestiture of Businesses with Non- Strategic Products or Markets  Selective Acquisitions to Accelerate Growth and Enhance Leadershi

  34. Slide 34: Investment Summary

    Investment Summary. . . “Myers Industries’ objective is to deliver sustainable, profitable growth across our markets and improve the financial health for our customers, shareholders, and employees.” www.myersind.com 34

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