Myers Industries, Inc. · NYSE:MYE
Myers Industries — Proxy Contest (April 2010)
29 slides from Myers Industries's proxy contest presentation, Apr 19, 2010
Slide 1: Leadership Brands Helping Customers Grow! Summary Presentation April 2010
1 Leadership Brands Helping Customers Grow! Summary Presentation for April 2010 Commitment to Growth Fundamentals & Strong Corporate Governance Principles
Slide 2: Presentation Agenda
2 Presentation Agenda Company Overview and Highlights 3 - 6 Disciplined Operating Strategy 7 - 11 Summary Financial Results 12 - 16 Strong Corporate Governance Principles 17 - 22 Board's Consideration of GAMCO's Proposal to Nominate Directors 23 - 26 Summary and Concluding Remarks 27 - 28 Section To
Slide 3: Section 1: Company Overview and Highlights
Section 1: Company Overview and Highlights Leadership Brands Helping Customers Grow! 3
Slide 4: Myers Industries -- Company Overview
4 Myers Industries -- Company Overview Diversified manufacturer and distributor with a leading portfolio of branded products in: Material Handling: Reusable Plastic Containers & Pallets Lawn & Garden: Plastic Horticultural Containers Engineered Products: Custom-Molded Plastic Products Distribution:
Slide 5: 2009 -- Company Size & Sales Distribution
5 2009 -- Company Size & Sales Distribution 2009 Sales from Continuing Operations were $701.8 million Manufacturing Segments (~ 77% of Total Net Sales) Diversified Plastic & Rubber Products Serving a Wide Range of Markets Distribution Segment (~ 23% of Total Net Sales) Distribution of Tire, Wheel &
Slide 6: Leadership Brands by Segment -- Overview
6 Leadership Brands by Segment -- Overview Custom plastic & rubber products -- RV tanks, tire repair materials & OEM parts for diverse markets. . . The largest distributor of tools, equipment & supplies for the tire & undervehicle service industry. . . Distribution Group Industry leader with pots, t
Slide 7: Section 2: Disciplined Operating Strategy
7 Leadership Brands Helping Customers Grow! Section 2: Disciplined Operating Strategy Fueling Transformation and Focused on Value Creation
Slide 8: Clear Strategic Business Evolution (SBE) Plan for Growth
8 Clear Strategic Business Evolution (SBE) Plan for Growth • Initiated in 2005, the SBE is Our Operating Strategy Focused on Business Evolution & Transformation to Create Value For Shareholders, Customers & Employees. • Centered Around Five Key Operating Principles & Tactics, Including: Be the innov
Slide 9: Strategy is Transforming the Company on Key Fronts
Strategy is Transforming the Company on 3 Key Fronts • Management is executing growth opportunities and fueling value creation: Business Optimization & Strategy Aggressively pursue new customers and markets Heighten innovation focus for high margin new products Develop new distribution sales channel
Slide 10: 2006-2009 Streamlining & Performance Focus; 2010 Long-Term Growth Focus
2006 - 2009 Streamlining & Performance Focus 2010 - Long-Term Growth & Profitability Focus Enhance manufacturing efficiencies & operations Continue optimization program in Lawn & Garden Segment to maintain permanent cost-savings Continue optimization program in Material Handling Segment (est. $13 to
Slide 11: Positioning the Business for the Future
Positioning the Business for the Future. . . • Enhancing innovation and solutions to create the next-generation of products. • Expanding leadership in our markets through multiple growth platforms. • Cultivating new niche markets where we see both higher value returns and a significant need for our
Slide 12: Section 3: Summary Financial Results
Section 3: Summary Financial Results -- Performance Grounded in Strategic Execution Leadership Brands Helping Customers Grow! 12
Slide 13: Producing Solid Operating Results in a Difficult Economic Environment
13 Earnings Per Share - Adjusted ($ in Dollars) Adjusted - Continuing Operations 2009 and 2008 Pre-Tax Income and EPS include adjustments relating to one time, non-recurring expense of $24.8M and $78.1M respectively. Pre-Tax Income - Adjusted ($ in Millions) Consolidated Financial Profile - Year End
Slide 14: Key Success Factors in 2009
14 Key Success Factors in 2009 1) Continued nearly 40-year history of consistent increased Cash Dividend to shareholders - Regular dividend increased 8% to $0.065 per share - Reflects the Board's confidence in our strategic direction 2) Full-year 2009 income from continuing operations, on an adjuste
Slide 15: Strong Cash Flow Position -- as of Dec. 31, 2009
$73.1 $61.0* $96.3* $7.6 $19.2 $41.0 $16.0 $69.5 $18.3 $1.7 $8.4 $48.7 Strong Cash Flow Position -- as of Dec. 31, 2009 ($ in Millions) * 2007 includes a non-operating income gain of $26.8 mm related to payment from a merger termination; Dividends in 2008 include a special dividend of $0.28, $9.9 mm
Slide 16: Consolidated Condensed Balance Sheet
16 Consolidated Condensed Balance Sheet Year Ended Dec. 31, 2009: ($ in Millions) As Reported - Continuing Operations *Including current portion of long-term debt December December $ % 2009 2008 Change Change Cash 4.7 10.4 (5.7) -54.6% Accounts Receivable 90.2 94.8 (4.6) -4.8% Inventory 100.2 113.5
Slide 17: Section 4: Strong Corporate Governance Principles
Section 4: Strong Corporate Governance Principles Serving the Interests of All Shareholders Leadership Brands Helping Customers Grow! 17
Slide 18: Strong Corporate Governance Principles Serving the Interests of All Shareholders
Strong Corporate Governance Principles Serving the Interests of All Shareholders 18 Separate roles of CEO and Board Chairman All directors stand for election annually No poison pill provision Current Board and Committee composition provide broad range and depth of expertise and ensure independent an
Slide 19: Strong Corporate Governance: Director Nominee Process
19 Considers all shareholder nominees; seeks best nominees against expertise needs identified in annual director/Board evaluation process Uses a leading executive search firm to identify potential independent director nominees Corporate Governance and Nominating Committee thoroughly examines ALL nom
Slide 20: Strong, Experienced and Committed Board
Strong, Experienced and Committed Board 20 Myers Industries has extremely experienced and effective Board members actively working a solid strategic plan for the Company's sustainable, profitable growth. The Board's composition includes expertise from diverse areas: • Polymer Manufacturing • Sales &
Slide 21: Strong, Experienced and Committed Board
Strong, Experienced and Committed Board 21 Keith A. Brown Has served as a Director since 1997 President of Chimera Corporation and a Director of US Gypsum Corporation (NYSE) Expertise in mergers and acquisitions, manufacturing and operational restructuring Vincent C. Byrd Has served as a Director si
Slide 22: Strong, Experienced and Committed Board
Strong, Experienced and Committed Board 22 Edward W. Kissel Has served as a Director since 2000 President and Managing Partner of Kissel Group Ltd. Expertise in sales, marketing, strategic planning, mergers and acquisitions John C. Orr President and Chief Executive Officer of Myers Industries; Direc
Slide 23: Section 5: Board's Consideration of GAMCO's Proposal to Nominate Directors
Section 5: Board's Consideration of GAMCO's Proposal to Nominate Directors Leadership Brands Helping Customers Grow! 23
Slide 24: Background of Contacts with GAMCO
Background of Contacts with GAMCO The Company has made every effort to understand GAMCO's concerns regarding the Board of Directors: In May 2009, GAMCO amended its Schedule 13D relating to the Company to disclose that it intended to submit to our Corporate Governance and Nominating Committee one or
Slide 25: Background of Contacts with GAMCO
Background of Contacts with GAMCO Upon receiving GAMCO's letters, the proposed GAMCO nominees were sent questionnaires for information regarding their qualifications and requesting that they make themselves available for meetings with representatives of the Board's Corporate Governance and Nominatin
Slide 26: Background of Contacts with GAMCO: In Conclusion
Background of Contacts with GAMCO In Conclusion: GAMCO has failed to articulate any specific concerns regarding the Company's operations or propose an alternative strategy for the Company. GAMCO has not articulated any special qualifications of the individuals it seeks to put on the Company's board
Slide 27: Section 6: Summary and Concluding Remarks
Section 6: Summary and Concluding Remarks Leadership Brands Helping Customers Grow! 27
Slide 28: In summary, Board nominees are most qualified to represent all shareholders
In summary, we believe that Myers Industries' Board nominees are most qualified to represent the interests of all shareholders: Strong, independent and committed Board of highly experienced and qualified members Solid performance based on strategic direction and transformative actions over the past
Slide 29: Forward-looking statements
29 Statements in this presentation may 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," "i