MYERS INDUSTRIES, INC. 2015 Annual Report
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1293 South Main Street Akron, Ohio 44301 Tel: 330-253-5592 Fax: 330-761-6156 MYERS INDUSTRIES, INC. www.myersindustries.com 2015 Annual Report © 2016 Myers Industries, Inc. Dear Fellow Shareholders, Having joined Myers in December 2015, I am excited to that were in place in 2014. We are the first in our industry lead an industrial manufacturing company with a strong to introduce a vending solution that provides customers portfolio of brands. During my first 90 days at Myers, I with an automated inventory management system. During have followed a listen and learn approach; getting to the fourth quarter, we kicked off a sales team initiative know our employees, customers, and businesses. We that will build on these new sales tools and will help the have a great group of people that manufacture quality team be more efficient and effective, ultimately leading products and provide exceptional customer service. to better customer service and greater sales growth. This Across the company, our team has a rich foundation in ongoing initiative will continue throughout 2016. operational excellence as evidenced by our strong safety track record and our solid operational cost improvements As we look forward, 2016 will be a time of transition in 2015. for Myers. Our focus will be on commercial execution and strategy development. We can and will improve Early in 2015, we completed our strategic re-alignment our capabilities in new product innovation and bringing Myers from four operating segments to two commercialization by using the continuous improvement focused businesses in attractive end markets with strong mindset that has helped us in operations. Our people future growth potential. We entered the year a more have some great ideas for growth, but we need to be streamlined company, but we faced several challenges more rigorous in our process and execution in order to due to headwinds in our agriculture, auto aftermarket, grow at a higher rate than our markets. We can do that and Brazilian markets. Additionally, sales in some areas first by successfully launching new products that are were impacted by delays in the commercialization of already in the pipeline like the Vented Hi-Flo Gas Can certain key products. The result was flat sales in constant at Scepter, which dispenses gas at two times the rate of currency for the year. previous cans. We will also continue to focus on winning share in the products we’ve already introduced such as the Despite these challenges, our team did a solid job vending machines in Distribution and a mobile container executing operationally, and on a full-year basis, we cleaning service in Material Handling. increased our adjusted gross margin by 350 basis points to 29.9%. We also increased adjusted earnings per The culmination of these efforts will be a clear enterprise diluted share from continuing operations by 8% and business strategy that supports our strengths, improves generated free cash flow from continuing operations commercial execution, and applies discipline and of $25.6 million. We were able to return more than $46 consistency to our internal business processes. Our future million to shareholders through share repurchases and success is ultimately dependent on our ability to execute dividends throughout the year. Finally, we reduced net on key projects and initiatives. We have executed well debt by 20% and working capital as a percent of sales to on operational and safety initiatives, and I believe that 4.8%, reflecting a continued focus on strengthening our by building on that discipline and implementing it balance sheet and improving cash flow performance. across the organization we will be able to drive more consistent performance leading to compound growth in Within our strategic segments, we had several highlights our cash flow and a subsequent increase in shareholder in 2015. In Material Handling, we completed the value. I look forward to sharing our progress with you integration of Scepter. Scepter brings a new dimension throughout the year. to our product portfolio, with a consumer orientation and new engineering expertise that centers on multi- I would like to thank Myers’ employees, customers, layer product manufacturing. We made progress in vendors and investors for their continued support and implementing our continuous improvement mindset commitment to our company. That support is integral as and disciplined pricing practices, and we look forward to we continue forward on our path to success. further advancing that business in other areas where we can provide expertise. For example, in 2015, we delayed the launch of several of our new products. Delaying those Sincerely, launches was the right long-term choice for the business, but I believe opportunities exist to help the Scepter team improve commercialization processes. In doing so, we will increase our speed to market and ultimately better serve our customers. R. David Banyard, President In Distribution, we launched a new e-commerce website Chief Executive Officer and installed four times the number of vending machines Financial Section Myers Industries, Inc. | 2015 Annual Report SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2015 COMMISSION FILE NUMBER 001-08524 MYERS INDUSTRIES, INC. (Exact name of registrant as specified in its charter) OHIO 34-0778636 (State or other jurisdiction of (IRS Employer Identification Number) incorporation or organization) 1293 S. MAIN STREET, AKRON, OHIO 44301 (330) 253-5592 (Address of Principal Executive Offices) (Zip Code) (Telephone Number) Securities Registered Pursuant to Name of Each Exchange Section 12(b) of the Act: On which registered: Common Stock, Without Par Value New York Stock Exchange (Title of Class) Securities Registered Pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No ⌧ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No ⌧ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes ⌧ No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ⌧ No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ⌧ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer Accelerated filer ⌧ Non-accelerated filer Smaller reporting company Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No ⌧ State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the closing sale price on the New York Stock Exchange as of June 30, 2015: $588,922,537 Indicate the number of shares outstanding of registrant’s common stock as of February 29, 2016: 29,546,342 Shares of Common Stock, without par value. DOCUMENTS INCORPORATED BY REFERENCE: Portions of the Registrant’s Definitive Proxy Statement for its 2016 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K. TABLE OF CONTENTS PART I ITEM 1. Business ............................................................................................................................................................ 1 ITEM 1A. Risk Factors ................................................................................................................................................... 7 ITEM 1B. Unresolved Staff Comments .......................................................................................................................... 12 ITEM 2. Properties .......................................................................................................................................................... 13 ITEM 3. Legal Proceedings ............................................................................................................................................. 14 PART II ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities .................................................................................................................................................................... 16 ITEM 6. Selected Financial Data