Company Website:
http://www.myersind.com
AKRON, Ohio -- (Business Wire)
Myers Industries, Inc. (NYSE:MYE) today announced a revision of its
previously released financial results for its fourth quarter and year
ended December 31, 2014, as a result of completing its Brazilian
investigation.
The revision as compared to the Company’s earnings release issued
February 25, 2015 reflects adjustments which led to an increase in cost
of sales of $2.4 million and an increase in selling, general and
administrative expenses of $0.1 million for both the fourth quarter and
full year of 2014. The total adjustments reduced income from continuing
operations by $2.5 million, net income from continuing operations by
$2.3 million and earnings per diluted share from continuing operations
by $0.07 for both the fourth quarter and full year of 2014. There were
no changes to results from discontinued operations. Therefore, net
income and earnings per diluted share also changed by $2.3 million and
$0.07, respectively, for both the fourth quarter and full year of 2014.
Previously reported financial results for prior periods were not
affected by the adjustments.
As a result of the adjustments, Myers Industries’ previously released
cash flow provided by continuing operations was reduced by $0.3 million
to $51.8 million for the year ended December 31, 2014.
The revision to the financial results is primarily related to
adjustments that were recorded as a result of the investigation of the
Company’s Brazilian operations that determined certain accounts were not
properly reconciled and amounts were not substantiated by people
responsible in the Brazilian location that knew or should have known
they were not proper. As a result of this investigation, management
identified deficiencies in both the design and operating effectiveness
of the Company’s internal control over financial reporting, which when
aggregated, represent two material weaknesses in internal control over
the inventory process at the Brazilian operations and the financial
statement close process at the Brazilian operations as of December 31,
2014. A detailed explanation of management’s annual assessment of and
report on internal control over financial reporting is included in Item
9A, the Controls and Procedures section, of Myers’ Annual Report on Form
10-K for the year ended December 31, 2014. Further discussion of the
material weaknesses can be found in the Company’s Form 10-K, filed today
with the SEC.
The Company has taken preliminary steps to address the underlying causes
of the process deficiencies at the Company’s Brazilian operations. The
Company plans to enhance its finance personnel at its Brazilian
operations with accounting and internal control knowledge. The Company
will also provide training to implement and perform additional controls
over the preparation and review of account reconciliations and approval
of manual journal entries. The Company will develop revised policies and
procedures associated with the preparation and retention of supporting
documentation for account reconciliations as well as the review and
approval of manual journal entries prior to posting to the general
ledger. Finally, the Company will implement additional controls to
enhance monitoring and oversight of the financial function at its
Brazilian operations. The Company plans to remediate all of the control
deficiencies underlying these material weaknesses during 2015. The
Company will continue to monitor the effectiveness of these and other
processes, procedures and controls at its Brazilian operations and will
make any further changes management determines appropriate.
Myers Industries’ financial results for the fourth quarter and year
ended December 31, 2014 are included in its Form 10-K, filed today with
the SEC.
About Myers Industries
Myers Industries, Inc. is an international manufacturer of polymer
products for industrial, agricultural, automotive, commercial, and
consumer markets. The Company is also the largest wholesale distributor
of tools, equipment and supplies for the tire, wheel and undervehicle
service industry in the U.S. Visit www.myersindustries.com
to learn more.
Caution on Forward-Looking Statements
Statements in this release 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”, “intend”, “objective”, “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: changes in the markets for the Company's business
segments; changes in trends and demands in the markets in which the
Company competes; unanticipated downturn in business relationships with
customers or their purchases; competitive pressures on sales and
pricing; raw material availability, increases in raw material costs, or
other production costs; 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; the Company's ability to execute the components of its
Strategic Business Evolution process; 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 web site at http://www.sec.gov,
and on the Company's Investor Relations section of its web site at http://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.
Contacts:
Myers Industries, Inc.
Gregg Branning, Senior Vice President &
Chief Financial Officer, 330-761-6303
or
Monica Vinay, Vice
President, Investor Relations & Treasurer, 330-761-6212
Source: Myers Industries, Inc.
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