MYERS INDUSTRIES INC, 10-Q filed on 4/28/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2014
Apr. 24, 2014
Document Information [Line Items]
 
 
Entity Registrant Name
MYERS INDUSTRIES INC 
 
Entity Central Index Key
0000069488 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
33,179,432 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net sales
$ 208,789 
$ 214,980 
Cost of sales
158,761 
156,662 
Gross profit
50,028 
58,318 
Selling, general and administrative expenses
47,389 
45,074 
Operating income
2,639 
13,244 
Interest expense, net
1,579 
1,092 
Income before income taxes
1,060 
12,152 
Income tax expense
380 
4,269 
Net income
$ 680 
$ 7,883 
Income per common share:
 
 
Basic (in dollars per share)
$ 0.02 
$ 0.24 
Diluted (in dollars per share)
$ 0.02 
$ 0.23 
Dividends declared per share (in dollars per share)
$ 0.13 
$ 0.09 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net income
$ 680 
$ 7,883 
Other comprehensive income (loss), net of tax:
 
 
Foreign currency translation adjustment
54 
(851)
Pension liability
(75)
Total other comprehensive income (loss), net of tax
54 
(926)
Comprehensive income
$ 734 
$ 6,957 
Condensed Consolidated Statements of Financial Position (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Current Assets
 
 
Cash
$ 5,738 
$ 6,539 
Accounts receivable-less allowances of $2,987 and $2,945, respectively
130,833 
112,459 
Inventories
 
 
Finished and in-process products
81,846 
73,475 
Raw materials and supplies
37,002 
33,049 
Inventory net
118,848 
106,524 
Prepaid expenses
8,182 
7,174 
Deferred income taxes
2,192 
2,214 
Total Current Assets
265,793 
234,910 
Other Assets
 
 
Goodwill
60,905 
60,642 
Patents and other intangible assets, net
20,228 
21,115 
Other
3,434 
3,312 
Total other non current assets
84,567 
85,069 
Property, Plant and Equipment, at Cost
 
 
Land
5,107 
5,107 
Buildings and leasehold improvements
67,611 
67,620 
Machinery and equipment
465,674 
461,397 
Property, Plant and Equipment, at cost
538,392 
534,124 
Less allowances for depreciation and amortization
(391,870)
(384,646)
Property, plant and equipment, net
146,522 
149,478 
Total Assets
496,882 
469,457 
Current Liabilities
 
 
Accounts payable
70,705 
98,263 
Accrued expenses
 
 
Employee compensation
15,598 
22,950 
Income taxes
6,529 
Taxes, other than income taxes
3,079 
2,751 
Accrued interest
1,333 
103 
Other
19,918 
19,987 
Total Current Liabilities
110,633 
150,583 
Long-term debt, net
116,691 
44,347 
Other liabilities
16,638 
14,687 
Deferred income taxes
24,194 
24,333 
Shareholders’ Equity
 
 
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)
Common Shares, without par value (authorized 60,000,000 shares; outstanding 33,528,097 and 33,572,778; net of treasury shares of 4,239,040 and 4,203,179, respectively)
20,287 
20,313 
Additional paid-in capital
263,201 
266,276 
Accumulated other comprehensive income
2,481 
2,427 
Retained deficit
(57,243)
(53,509)
Total Shareholders' Equity
228,726 
235,507 
Total Liabilities and Shareholders' Equity
$ 496,882 
$ 469,457 
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Current Assets
 
 
Allowances for accounts receivable
$ 2,987 
$ 2,945 
Shareholders’ Equity
 
 
Preferred Shares, shares authorized (in shares)
1,000,000 
1,000,000 
Preferred Shares, shares issued (in shares)
Preferred Shares, shares outstanding (in shares)
Common Shares, shares authorized (in shares)
60,000,000 
60,000,000 
Common Shares, shares outstanding (in shares)
33,528,097 
33,572,778 
Common shares, treasury (in shares)
4,239,040 
4,203,179 
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (USD $)
In Thousands, unless otherwise specified
Total
Common Stock
Additional Paid-In Capital
Accumulative Other Comprehensive Income
Retained Deficit
Balance at January 1, 2014 at Dec. 31, 2013
$ 235,507 
$ 20,313 
$ 266,276 
$ 2,427 
$ (53,509)
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income
680 
 
 
 
680 
Net sales under option plans
 
87 
1,667 
 
 
Dividend reinvestment plan
 
26 
 
 
Restricted stock vested
 
76 
(76)
 
 
Restricted stock and stock option grants, net
 
 
613 
 
 
Tax benefit from options
 
 
650 
 
 
Foreign currency translation adjustment
 
 
 
54 
 
Purchases for treasury-net
 
(159)
(4,903)
 
 
Shares withheld for employee taxes on equity awards
 
(31)
(1,052)
 
 
Dividends declared - $.13 per share
 
 
 
 
4,414 
Balance at March 31, 2014 at Mar. 31, 2014
$ 228,726 
$ 20,287 
$ 263,201 
$ 2,481 
$ (57,243)
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Statement of Stockholders' Equity [Abstract]
 
 
Dividends declared per share (in dollars per share)
$ 0.13 
$ 0.09 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Flows from Operating Activities
 
 
Net income
$ 680 
$ 7,883 
Items not affecting use of cash
 
 
Depreciation
8,424 
8,150 
Amortization
909 
1,001 
Non-cash stock compensation
788 
438 
Provision for loss on accounts receivable
361 
822 
Deferred taxes
(116)
2,227 
Other long-term liabilities
1,081 
885 
Gain from asset disposition
(46)
Tax benefit from options
(650)
(37)
Payments on performance based compensation
(1,293)
(1,719)
Cash flows used for working capital:
 
 
Accounts receivable
(18,529)
(9,833)
Inventories
(12,134)
(2,224)
Prepaid expenses
(1,577)
(237)
Accounts payable and accrued expenses
(38,567)
(13,859)
Net cash used for operating activities
(60,669)
(6,503)
Cash Flows from Investing Activities
 
 
Capital expenditures
(4,653)
(4,508)
Proceeds from sale of property, plant and equipment
48 
Other
96 
Net cash used for investing activities
(4,605)
(4,412)
Cash Flows from Financing Activities
 
 
Proceeds from long-term debt
89,000 
Net (repayment of) borrowing on credit facility
(16,700)
10,763 
Cash dividends paid
(3,118)
Proceeds from issuance of common stock
1,781 
1,706 
Tax benefit from options
650 
37 
Repurchase of common stock
(5,062)
(1,955)
Shares withheld for employee taxes on equity awards
(1,083)
Deferred financing costs
(196)
Net cash provided by financing activities
65,272 
10,551 
Foreign Exchange Rate Effect on Cash
(799)
469 
Net (decrease) increase in cash
(801)
105 
Cash at January 1
6,539 
3,948 
Cash at March 31
5,738 
4,053 
Interest
199 
526 
Income taxes
$ 3,803 
$ 435 
Statement of Accounting Policies
Statement of Accounting Policy
Statement of Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s latest annual report on Form 10-K.
In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of March 31, 2014, and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2014.
Reclassification

Certain reclassifications of prior year amounts have been made to the Condensed Consolidated Statement of Cash Flows in conformity with generally accepted accounting principles to conform to current year’s reporting presentation.
Translation of Foreign Currencies

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.
Fair Value Measurement
The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied to U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:
Level 1:
Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2:
Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.
Level 3:
Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.
The fair value of the Company’s cash, accounts receivable, accounts payable and accrued expenses are considered to have a fair value which approximates carrying value due to the nature and relative short maturity of these assets and liabilities.
The fair value of debt under the Company’s Loan Agreement approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered level 2 inputs. At March 31, 2014, the fair value of the Company's $100.0 million fixed rate senior unsecured notes were estimated at $100.8 million. At December 31, 2013, the fair value of the Company's $11.0 million fixed rate senior unsecured notes were estimated at $10.8 million.

Revenue Recognition

The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title and risk of loss, which is generally at time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.

Accumulated Other Comprehensive Income

The balances in the Company’s accumulated other comprehensive income ("AOCI") as of March 31, 2014 and March 31, 2013 are as follows:
 
Foreign Currency
 
Defined Benefit Pension Plans
 
Total
Balance at January 1, 2013
$
12,784

 
$
(2,141
)
 
$
10,643

Other comprehensive income before reclassifications
(851
)
 

 
(851
)
Amounts reclassified from accumulated other comprehensive income

 
(75
)
 
(75
)
Net current-period other comprehensive income
(851
)
 
(75
)
 
(926
)
Balance at March 31, 2013
$
11,933

 
$
(2,216
)
 
$
9,717

 
 
 
 
 
 
Balance at January 1, 2014
$
3,493

 
$
(1,066
)
 
$
2,427

Other comprehensive income before reclassifications
54

 

 
54

Net current-period other comprehensive income
54

 

 
54

Balance at March 31, 2014
$
3,547

 
$
(1,066
)
 
$
2,481


Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.
Inventories
Inventories
Inventories
Inventories are stated at the lower of cost or market. Approximately twenty percent of the Company’s inventories use the last-in, first-out (LIFO) method of determining cost. All other inventories are valued at the first-in, first-out ("FIFO") method of determining cost. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must necessarily be based on management’s estimates of expected year-end inventory levels and costs. Because these are subject to many factors beyond management’s control, estimated interim results, which were immaterial, are subject to change in the final year-end LIFO inventory valuation and therefore, no adjustment was recorded as of March 31, 2014.
Other Accrued Expenses
Other Accrued Expenses
Other Accrued Expenses
Other accrued expenses consisted of the following:
 
 
March 31, 2014
 
December 31, 2013
Deposits and amounts due to customers
 
$
7,518

 
$
10,194

Dividends payable
 
4,470

 
3,174

Other accrued expenses
 
7,930

 
6,619

 
 
$
19,918

 
$
19,987

Goodwill
Goodwill
Goodwill
The Company is required to test for impairment on at least an annual basis. In addition, the Company tests for impairment whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. Such events may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company's customer base or its businesses, or a material negative change in its relationships with significant customers. The Company conducts its annual impairment assessment as of October 1.
The change in goodwill for the three months ended March 31, 2014 was as follows:
Segment
Balance at January 1, 2014
 
Foreign
Currency
Translation
 
Balance at March 31, 2014
Material Handling
$
50,350

 
$
381

 
$
50,731

Lawn and Garden
9,371

 
(118
)
 
9,253

Distribution
214

 

 
214

Engineered Products
707

 

 
707

Total
$
60,642

 
$
263

 
$
60,905

Net Income Per Common Share
Net Income Per Common Share
Net Income Per Common Share
Net income per common share, as shown on the Condensed Consolidated Statements of Income (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the period as follows:
 
Three Months Ended
March 31,
 
2014
 
2013
Weighted average common shares outstanding
 
 
 
Basic
33,518,543

 
33,504,222

Dilutive effect of stock options and restricted stock
499,932

 
355,194

Weighted average common shares outstanding diluted
34,018,475

 
33,859,416


Options to purchase 209,500 and 471,400 shares of common stock that were outstanding at March 31, 2014 and 2013, respectively, were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of common shares.
Restructuring
Restructuring
Restructuring
The charges related to various restructuring programs implemented by the Company are included in selling, general and administrative ("SG&A") expenses and cost of sales depending on the type of cost incurred. The restructuring charges for the three months ended March 31, 2014 and 2013 are presented in the following table.
 
Three Months Ended
 March 31,
 
2014
 
2013
Segment
Cost of sales
Selling, general and administrative
Total
 
Cost of sales
Selling, general and administrative
Total
Distribution
$

$
492

$
492

 
$

$
74

$
74

Lawn and Garden
2,799

829

3,628

 

403

403

Engineered Products



 
3


3

Material Handling



 
162

48

210

Corporate



 

17

17

Total
$
2,799

$
1,321

$
4,120

 
$
165

$
542

$
707



The accrued liability balance for severance and other exit costs associated with restructuring are presented in the following table.
 
Severance and Personnel
 
Other Exit Costs
 
Total
Balance at January 1, 2013
$
318

 
$

 
$
318

Provision
231

 
476

 
707

Less: Payments
(549
)
 
(476
)
 
(1,025
)
Balance at March 31, 2013
$

 
$

 
$

 
 
 
 
 
 
Balance at January 1, 2014
$
1,943

 
$
1,571

 
$
3,514

Provision
1,442

 
2,678

 
4,120

Less: Payments
(2,989
)
 
(3,784
)
 
(6,773
)
Balance at March 31, 2014
$
396

 
$
465

 
$
861



In July 2013, the Lawn and Garden Segment announced a restructuring plan that details the closure of two manufacturing plants: one in Brantford, Ontario and the second in Waco, Texas. The restructuring actions include closure, relocation and employee related costs. The aggregate restructuring charges are expected to approximate $15.0 million, of which $3.0 million is expected to be noncash costs. Through March 31, 2014, the Lawn and Garden Segment has incurred $12.2 million of charges under its restructuring plan. Restructuring actions are expected to continue through the second quarter of 2014.
In January 2014, the Distribution Segment announced the closing of its Canadian branches which operated under the name Myers Tire Supply International. The restructuring actions include closure, relocation and employee related costs. The aggregate restructuring charges are expected to approximate $1.0 million. Restructuring actions are expected to continue through the second quarter of 2014.
Accrued severance and personnel costs associated with restructuring are included in accrued expenses on the accompanying Condensed Consolidated Statements of Financial Position at March 31, 2014 and December 31, 2013. Other exit costs associated with restructuring are included in accounts payable on the accompanying Condensed Consolidated Statements of Financial Position at March 31, 2014 and December 31, 2013.
Stock Compensation
Stock Compensation
Stock Compensation
The Company’s 2008 Incentive Stock Plan (the “2008 Plan”) authorizes the Compensation Committee of the Board of Directors to issue up to 3,000,000 shares of various types of stock based awards including stock options, restricted stock and stock appreciation rights to key employees and directors. In general, options granted and outstanding vest over a three year period and expire ten years from the date of grant.
Stock compensation expense reduced income before taxes approximately $0.8 million and $0.4 million for the three months ended March 31, 2014 and 2013, respectively. These expenses are included in SG&A expenses in the accompanying Condensed Consolidated Statements of Income (Unaudited). Total unrecognized compensation cost related to non-vested share based compensation arrangements at March 31, 2014 was approximately $6.4 million which will be recognized over the next three years, as such compensation is earned.
On March 7, 2014, stock options for 209,500 shares were granted with a three year vesting period. The fair value of options granted is estimated using a binomial lattice option pricing model based on assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield rate is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole.
Model
 
Risk free interest rate
2.80
%
Expected dividend yield
2.50
%
Expected life of award (years)
7.0

Expected volatility
50.00
%
Fair value per option share
$
7.05



The following table provides a summary of stock option activity for the period ended March 31, 2014:
 
Shares
 
Average
Exercise
Price
 
Weighted
Average
Life
Outstanding at January 1, 2014
1,574,572

 
$
12.14

 
 
Options granted
209,500

 
20.93

 
 
Options exercised
(142,957
)
 
12.17

 
 
Canceled or forfeited
(1,567
)
 
12.27

 
 
Outstanding at March 31, 2014
1,639,548

 
$
13.26

 
6.37 years
Exercisable at March 31, 2014
1,163,743

 
$
11.67

 
5.22 years


The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of all stock options exercised during the three months ended March 31, 2014 and 2013 was approximately $1.2 million and $0.6 million, respectively.
On March 7, 2014, 104,100 Restricted Stock Unit ("RSU") Awards were granted with a three year vesting period. The RSUs had a grant date fair value of $20.93 per share, which was the closing price of the common stock on the date of grant.




The following table provides a summary of combined RSU and restricted stock activity for the three months ended March 31, 2014:
 
Awards
 
Average Grant-Date Fair Value
Unvested at January 1, 2014
275,525

 
 
Granted
104,100

 
$
20.93

Released
(123,829
)
 
11.75

Canceled or forfeited
(1,700
)
 
18.03

Unvested at March 31, 2014
254,096

 
$
16.81


Restricted stock units are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a three year period. Restricted shares are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. Restricted stock awards are valued based on the market price of the underlying shares on the grant date. Compensation expense is recognized on a straight-line basis over the requisite service period. At March 31, 2014, restricted stock awards had vesting periods up through March 2017.
Contingencies
Contingencies
Contingencies
The Company is a defendant in various lawsuits and a party to various other legal proceedings, in the ordinary course of business, some of which are covered in whole or in part by insurance.
New Idria Mercury Mine
Effective October 2011, the U.S. Environmental Protection Agency (“EPA”) added the New Idria Mercury Mine site located near Hollister, California to the Superfund National Priorities List because of alleged contaminants discharged to California waterways. The New Idria Quicksilver Mining Company, founded in 1936, and later renamed the New Idria Mining & Chemical Company ("NIMCC") owned and/or operated the New Idria Mine through 1976. In 1981 NIMCC was merged into Buckhorn Metal Products Inc. and subsequently acquired by Myers Industries in 1987. The EPA contends that past mining operations have resulted in mercury contamination and acid mine drainage at the mine site, in the San Carlos Creek, Silver Creek and a portion of Panoche Creek and that other downstream locations may also be impacted.
As of the date of this disclosure, no formal claim or allegation relating to the New Idria Mine Site against the Company or its subsidiary Buckhorn, Inc. ("Buckhorn") has been received. However, since Buckhorn may be a potentially responsible party (“PRP”) at the New Idria Mercury Mine, the Company recognized an expense of $1.9 million, on an undiscounted basis, in 2011 related to performing a remedial investigation and feasibility study to determine the extent of remediation and the screening of alternatives. Payments of approximately $0.6 million have been incurred and charged against the reserve classified in Other Liabilities on the Condensed Consolidated Statements of Financial Position as of March 31, 2014. As investigation and remediation proceed, it is likely that adjustments to the reserved expense will be necessary to reflect new information. Estimates of the Company’s liability are based on current facts, laws, regulations and technology. Estimates of the Company’s environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of corrective actions that may be required, the number and financial condition of other PRPs as well as the extent of their responsibility for the remediation, and the availability of insurance coverage for these expenses. At this time, further remediation cost estimates are not known and have not been prepared.
In November 2011 the EPA completed an interim removal project at the New Idria Mercury Mine site. It is expected this removal action will be part of the final remediation strategy for the site. According to informal reports, EPA’s interim removal project costs were approximately $0.5 million. It is possible that at some future date the EPA will seek recovery of the costs of this work from PRPs.

California Regional Water Quality Control Board
A number of parties, including the Company and its subsidiary, Buckhorn, were identified in a planning document adopted in October 2008 by the California Regional Water Quality Control Board, San Francisco Bay Region (“RWQCB”). The planning document relates to the presence of mercury, including amounts contained in mining wastes, in and around the Guadalupe River Watershed (“Watershed”) region in Santa Clara County, California. Buckhorn has been alleged to be a successor in interest to NIMCC which owned property and performed mining operations in a portion of the Watershed area. The Company has not been contacted by the RWQCB or by other parties who have been involved in Watershed clean-up efforts that have been initiated as a result of the adoption of this planning document. Although assertion of a claim by the RWQCB or another party involved in this clean up effort is reasonably possible, it is not possible at this time to estimate the amount of any obligation the Company may incur for these cleanup efforts within the Watershed region, or whether such cost would be material to the Company’s financial statements.
When management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence than another. As additional information becomes available, any potential liability related to these matters will be assessed and the estimates will be revised, if necessary.
Based on current available information, management believes that the ultimate outcome of these matters will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.
Debt
Debt Disclosure
Long-Term Debt and Loan Agreement
Long-term debt consisted of the following:
 
March 31,
 
December 31,
 
2014
 
2013
Loan Agreement
$
17,500

 
$
34,200

4.67% Senior Unsecured Notes due 2021
40,000

 

5.25% Senior Unsecured Notes due 2024
11,000

 
11,000

5.30% Senior Unsecured Notes due 2024
29,000

 

5.45% Senior Unsecured Notes due 2026
20,000

 

 
117,500

 
45,200

Less unamortized deferred financing fees
809

 
853

 
$
116,691

 
$
44,347


Under the terms of the Fourth Amended and Restated Loan Agreement ("Loan Agreement"), the Company may borrow up to $200.0 million, reduced for letters of credit issued. As of March 31, 2014, the Company had $177.9 million available under the Loan Agreement. The Company also had $4.6 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business at March 31, 2014.
Long term debt at March 31, 2014 and December 31, 2013 includes $0.8 million and $0.9 million, respectively, of unamortized deferred financing costs, which are accounted for as debt valuation accounts.
On October 22, 2013, the Company entered into a note purchase agreement for the private placement of Senior Unsecured Notes totaling $100.0 million with a group of investors. The four series of notes are payable semiannually. Proceeds of $89.0 million under the note purchase agreement were received in January 2014.
Retirement Plans
Retirement Plans
Retirement Plans
The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s frozen defined benefit pension plan ("The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02") provides benefits primarily based upon a fixed amount for each year of service as of the date the plan was frozen.
Net periodic pension cost are as follows:
 
Three Months Ended
March 31,
 
2014
 
2013
Interest cost
$
70

 
$
65

Expected return on assets
(93
)
 
(83
)
Amortization of actuarial net loss
11

 
28

Net periodic pension (benefit) cost
$
(12
)
 
$
10

Company contributions
$
80

 
$
123


The Company anticipates contributions totaling $0.3 million to its pension plan for the full year of 2014.
Income Taxes
Income Taxes
Income Taxes
The total amount of gross unrecognized tax benefit that would reduce the Company's effective tax rates at March 31, 2014 and March 31, 2013 was $1.3 million and $1.2 million, respectively. The $0.1 million increase in the gross unrecognized tax benefits from March 31, 2013 to March 31, 2014 resulted from an increase in ASC 740-10-25-6, Accounting for Uncertainty in Income Taxes, reserves related to previous year tax positions. Accrued interest expense included with accrued income taxes in the Company's Condensed Consolidated Statements of Financial Position was approximately $0.1 million at both March 31, 2014 and December 31, 2013.

As of March 31, 2014, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2011. The Company is subject to state and local examinations for tax years of 2009 through 2013. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2008 through 2013.
Segment Information
Segment Information
Segment Information
Using the criteria of ASC 280 Segment Reporting, the Company has four operating segments: Material Handling, Lawn and Garden, Distribution and Engineered Products. Each of these operating segments is also a reportable segment under the ASC 280 criteria.
None of the reportable segments include operating segments that have been aggregated. Some of these segments contain individual business components that have been aggregated on the basis of common management, customers, products, production processes and other economic characteristics. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up.
Income before income taxes for each business segment is based on net sales less cost of products sold, and the related selling, administrative and general expenses. In computing business segment operating income, general corporate overhead expenses and interest expenses are not included.
 
Three Months Ended
March 31,
Net Sales
2014
 
2013
Material Handling
$
90,613

 
$
79,989

Lawn and Garden
49,825

 
60,363

Distribution
39,735

 
42,649

Engineered Products
32,697

 
36,956

Inter-company Sales
(4,081
)
 
(4,977
)
Net Sales
$
208,789

 
$
214,980


 
Three Months Ended
March 31,
Income (Loss) Before Income Taxes
2014
 
2013
Material Handling
$
10,940

 
$
9,705

Lawn and Garden
(7,043
)
 
2,281

Distribution
2,371

 
2,839

Engineered Products
3,789

 
5,077

Corporate
(7,418
)
 
(6,658
)
Interest expense - net
(1,579
)
 
(1,092
)
Income before income taxes
$
1,060

 
$
12,152

Statement of Accounting Policies (Policies)
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s latest annual report on Form 10-K.
Translation of Foreign Currencies

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.
Fair Value Measurement
The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied to U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:
Level 1:
Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2:
Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.
Level 3:
Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.
The fair value of the Company’s cash, accounts receivable, accounts payable and accrued expenses are considered to have a fair value which approximates carrying value due to the nature and relative short maturity of these assets and liabilities.
The fair value of debt under the Company’s Loan Agreement approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered level 2 inputs
Revenue Recognition

The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title and risk of loss, which is generally at time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.
Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.
Statement of Accounting Policies (Tables)
The balances in the Company's accumulated other comprehensive income

Accumulated Other Comprehensive Income

The balances in the Company’s accumulated other comprehensive income ("AOCI") as of March 31, 2014 and March 31, 2013 are as follows:
 
Foreign Currency
 
Defined Benefit Pension Plans
 
Total
Balance at January 1, 2013
$
12,784

 
$
(2,141
)
 
$
10,643

Other comprehensive income before reclassifications
(851
)
 

 
(851
)
Amounts reclassified from accumulated other comprehensive income

 
(75
)
 
(75
)
Net current-period other comprehensive income
(851
)
 
(75
)
 
(926
)
Balance at March 31, 2013
$
11,933

 
$
(2,216
)
 
$
9,717

 
 
 
 
 
 
Balance at January 1, 2014
$
3,493

 
$
(1,066
)
 
$
2,427

Other comprehensive income before reclassifications
54

 

 
54

Net current-period other comprehensive income
54

 

 
54

Balance at March 31, 2014
$
3,547

 
$
(1,066
)
 
$
2,481

Other Accrued Expenses (Tables)
Schedule of Accounts Other Accrued Expenses
Other accrued expenses consisted of the following:
 
 
March 31, 2014
 
December 31, 2013
Deposits and amounts due to customers
 
$
7,518

 
$
10,194

Dividends payable
 
4,470

 
3,174

Other accrued expenses
 
7,930

 
6,619

 
 
$
19,918

 
$
19,987

Goodwill (Tables)
The change in goodwill
The change in goodwill for the three months ended March 31, 2014 was as follows:
Segment
Balance at January 1, 2014
 
Foreign
Currency
Translation
 
Balance at March 31, 2014
Material Handling
$
50,350

 
$
381

 
$
50,731

Lawn and Garden
9,371

 
(118
)
 
9,253

Distribution
214

 

 
214

Engineered Products
707

 

 
707

Total
$
60,642

 
$
263

 
$
60,905

Net Income Per Common Share (Tables)
Weighted average number of common shares outstanding during the period
Net income per common share, as shown on the Condensed Consolidated Statements of Income (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the period as follows:
 
Three Months Ended
March 31,
 
2014
 
2013
Weighted average common shares outstanding
 
 
 
Basic
33,518,543

 
33,504,222

Dilutive effect of stock options and restricted stock
499,932

 
355,194

Weighted average common shares outstanding diluted
34,018,475

 
33,859,416

Restructuring (Tables)



The accrued liability balance for severance and other exit costs associated with restructuring are presented in the following table.
 
Severance and Personnel
 
Other Exit Costs
 
Total
Balance at January 1, 2013
$
318

 
$

 
$
318

Provision
231

 
476

 
707

Less: Payments
(549
)
 
(476
)
 
(1,025
)
Balance at March 31, 2013
$

 
$

 
$

 
 
 
 
 
 
Balance at January 1, 2014
$
1,943

 
$
1,571

 
$
3,514

Provision
1,442

 
2,678

 
4,120

Less: Payments
(2,989
)
 
(3,784
)
 
(6,773
)
Balance at March 31, 2014
$
396

 
$
465

 
$
861

Stock Compensation (Tables)
The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole.
Model
 
Risk free interest rate
2.80
%
Expected dividend yield
2.50
%
Expected life of award (years)
7.0

Expected volatility
50.00
%
Fair value per option share
$
7.05

The following table provides a summary of stock option activity for the period ended March 31, 2014:
 
Shares
 
Average
Exercise
Price
 
Weighted
Average
Life
Outstanding at January 1, 2014
1,574,572

 
$
12.14

 
 
Options granted
209,500

 
20.93

 
 
Options exercised
(142,957
)
 
12.17

 
 
Canceled or forfeited
(1,567
)
 
12.27

 
 
Outstanding at March 31, 2014
1,639,548

 
$
13.26

 
6.37 years
Exercisable at March 31, 2014
1,163,743

 
$
11.67

 
5.22 years
The following table provides a summary of combined RSU and restricted stock activity for the three months ended March 31, 2014:
 
Awards
 
Average Grant-Date Fair Value
Unvested at January 1, 2014
275,525

 
 
Granted
104,100

 
$
20.93

Released
(123,829
)
 
11.75

Canceled or forfeited
(1,700
)
 
18.03

Unvested at March 31, 2014
254,096

 
$
16.81

Debt (Tables)
Schedule of Long-term Debt Instruments [Table Text Block]
Long-term debt consisted of the following:
 
March 31,
 
December 31,
 
2014
 
2013
Loan Agreement
$
17,500

 
$
34,200

4.67% Senior Unsecured Notes due 2021
40,000

 

5.25% Senior Unsecured Notes due 2024
11,000

 
11,000

5.30% Senior Unsecured Notes due 2024
29,000

 

5.45% Senior Unsecured Notes due 2026
20,000

 

 
117,500

 
45,200

Less unamortized deferred financing fees
809

 
853

 
$
116,691

 
$
44,347

Retirement Plans (Tables)
Net periodic pension cost
Net periodic pension cost are as follows:
 
Three Months Ended
March 31,
 
2014
 
2013
Interest cost
$
70

 
$
65

Expected return on assets
(93
)
 
(83
)
Amortization of actuarial net loss
11

 
28

Net periodic pension (benefit) cost
$
(12
)
 
$
10

Company contributions
$
80

 
$
123

Segment Information (Tables)
 
Three Months Ended
March 31,
Net Sales
2014
 
2013
Material Handling
$
90,613

 
$
79,989

Lawn and Garden
49,825

 
60,363

Distribution
39,735

 
42,649

Engineered Products
32,697

 
36,956

Inter-company Sales
(4,081
)
 
(4,977
)
Net Sales
$
208,789

 
$
214,980


 
Three Months Ended
March 31,
Income (Loss) Before Income Taxes
2014
 
2013
Material Handling
$
10,940

 
$
9,705

Lawn and Garden
(7,043
)
 
2,281

Distribution
2,371

 
2,839

Engineered Products
3,789

 
5,077

Corporate
(7,418
)
 
(6,658
)
Interest expense - net
(1,579
)
 
(1,092
)
Income before income taxes
$
1,060

 
$
12,152

Statement of Accounting Policies (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Foreign Currency
Mar. 31, 2013
Foreign Currency
Mar. 31, 2014
Defined Benefit Pension Plans
Mar. 31, 2013
Defined Benefit Pension Plans
Mar. 31, 2014
Accumulative Other Comprehensive Income
Mar. 31, 2013
Accumulative Other Comprehensive Income
Mar. 31, 2014
Carrying (Reported) Amount, Fair Value Disclosure
Less unamortized deferred financing fees
Dec. 31, 2013
Carrying (Reported) Amount, Fair Value Disclosure
Less unamortized deferred financing fees
Mar. 31, 2014
Estimate of Fair Value, Fair Value Disclosure
Less unamortized deferred financing fees
Dec. 31, 2013
Estimate of Fair Value, Fair Value Disclosure
Less unamortized deferred financing fees
Organization, Consolidation and Presentation of Financial Statements [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Current Fiscal Year End Date
--12-31 
 
 
 
 
 
 
 
 
 
 
 
Notes Payable, Fair Value Disclosure
 
 
 
 
 
 
 
 
$ 100,000,000 
$ 11,000,000 
$ 100,800,000 
$ 10,800,000 
Accumlated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
2,427,000 
 
3,493,000 
12,784,000 
(1,066,000)
(2,141,000)
2,427,000 
10,643,000 
 
 
 
 
Other comprehensive income before reclassifications
 
 
54,000 
(851,000)
54,000 
(851,000)
 
 
 
 
Amounts reclassified from accumulated other comprehensive income
 
 
 
 
(75,000)
 
(75,000)
 
 
 
 
Total other comprehensive income (loss), net of tax
54,000 
(926,000)
54,000 
(851,000)
(75,000)
54,000 
(926,000)
 
 
 
 
Ending balance
$ 2,481,000 
 
$ 3,547,000 
$ 11,933,000 
$ (1,066,000)
$ (2,216,000)
$ 2,481,000 
$ 9,717,000 
 
 
 
 
Inventories (Details)
Mar. 31, 2014
Inventory Disclosure [Abstract]
 
Percentage of LIFO Inventory
20.00% 
Other Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Payables and Accruals [Abstract]
 
 
Deposits and amounts due to customers
$ 7,518 
$ 10,194 
Dividends payable
4,470 
3,174 
Other accrued expenses
7,930 
6,619 
Other accrued expenses, Total
$ 19,918 
$ 19,987 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Goodwill [Roll Forward]
 
Balance at January 1, 2014
$ 60,642 
Foreign Currency Translation
263 
Balance at March 31, 2014
60,905 
Material Handling
 
Goodwill [Roll Forward]
 
Balance at January 1, 2014
50,350 
Foreign Currency Translation
381 
Balance at March 31, 2014
50,731 
Lawn and Garden
 
Goodwill [Roll Forward]
 
Balance at January 1, 2014
9,371 
Foreign Currency Translation
(118)
Balance at March 31, 2014
9,253 
Distribution
 
Goodwill [Roll Forward]
 
Balance at January 1, 2014
214 
Foreign Currency Translation
Balance at March 31, 2014
214 
Engineered Products
 
Goodwill [Roll Forward]
 
Balance at January 1, 2014
707 
Foreign Currency Translation
Balance at March 31, 2014
$ 707 
Net Income Per Common Share (Details)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Earnings Per Share [Abstract]
 
 
Basic (in shares)
33,518,543 
33,504,222 
Dilutive effect of stock options and restricted stock (in shares)
499,932 
355,194 
Weighted average common shares outstanding diluted (in shares)
34,018,475 
33,859,416 
Net Income Per Common Share Weighted average number of common shares outstanding during the period (Details) (Stock Option)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Stock Option
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Options to purchase common stock outstanding (in shares)
209,500 
471,400 
Restructuring Restructuring Charges by Segment (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
$ 4,120 
$ 707 
 
Material Handling
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
210 
 
Lawn and Garden
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
3,628 
403 
12,200 
Distribution
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
492 
74 
 
Engineered Products
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
 
Corporate
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
17 
 
Cost of Sales
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
2,799 
165 
 
Cost of Sales |
Material Handling
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
162 
 
Cost of Sales |
Lawn and Garden
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
2,799 
 
Cost of Sales |
Distribution
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
 
Cost of Sales |
Engineered Products
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
 
Cost of Sales |
Corporate
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
 
Selling, General and Administrative Expenses
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
1,321 
542 
 
Selling, General and Administrative Expenses |
Material Handling
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
48 
 
Selling, General and Administrative Expenses |
Lawn and Garden
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
829 
403 
 
Selling, General and Administrative Expenses |
Distribution
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
492 
74 
 
Selling, General and Administrative Expenses |
Engineered Products
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
 
Selling, General and Administrative Expenses |
Corporate
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
$ 0 
$ 17 
 
Restructuring Reserve (Details) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended
Jul. 31, 2013
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
$ 4,120,000 
$ 707,000 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Balance, beginning
 
3,514,000 
318,000 
 
Provision
 
4,120,000 
707,000 
 
Less: Payments
 
(6,773,000)
(1,025,000)
 
Balance, ending
 
861,000 
861,000 
Severance & Personnel
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Balance, beginning
 
1,943,000 
318,000 
 
Provision
 
1,442,000 
231,000 
 
Less: Payments
 
(2,989,000)
(549,000)
 
Balance, ending
 
396,000 
396,000 
Other Exit Costs
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Balance, beginning
 
1,571,000 
 
Provision
 
2,678,000 
476,000 
 
Less: Payments
 
(3,784,000)
(476,000)
 
Balance, ending
 
465,000 
465,000 
Selling, General and Administrative Expenses
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
1,321,000 
542,000 
 
Cost of Sales
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
2,799,000 
165,000 
 
Lawn and Garden
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Expected restructuring charges
15,000,000 
 
 
 
Non-cash cost of restructuring
3,000,000 
 
 
 
Year to date restructuring charge
 
3,628,000 
403,000 
12,200,000 
Lawn and Garden |
Selling, General and Administrative Expenses
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
829,000 
403,000 
 
Lawn and Garden |
Cost of Sales
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
2,799,000 
 
Distribution
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Expected restructuring charges
 
1,000,000 
 
 
Year to date restructuring charge
 
492,000 
74,000 
 
Distribution |
Selling, General and Administrative Expenses
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
492,000 
74,000 
 
Distribution |
Cost of Sales
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Year to date restructuring charge
 
$ 0 
$ 0 
 
Stock Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
$ 0.8 
$ 0.4 
Options Granted (in shares)
209,500 
 
The total intrinsic value of all stock options exercised
1.2 
0.6 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement By Share-based Payment Award Expiration
10 years 
 
Total unrecognized compensation cost related to non-vested share based compensation arrangements
$ 6.4 
 
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted (in shares)
104,100 
 
Granted, Average Grant Date Fair Value (in dollars per share)
$ 20.93 
 
2008 Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Shares authorized for grant under plan (in shares)
3,000,000 
 
Minimum [Member] |
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting period, in years
3 years 
 
Stock Compensation Fair Value of stock options granted assumptions used (Details)
3 Months Ended
Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Risk free interest rate
2.80% 
Expected dividend yield
2.50% 
Expected life of award (in years)
7 years 
Expected volatility
50.00% 
Fair value per option share (in dollars per share)
$ 7.05 
Stock Compensation Summary of stock option activity for the period (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Outstanding at January 1, 2014
1,574,572 
Options Granted (in shares)
209,500 
Options Exercised, Shares (in shares)
(142,957)
Cancelled or Forfeited (in shares)
(1,567)
Outstanding at March 31, 2014 (in shares)
1,639,548 
Exercisable at March 31, 2014 (in shares)
1,163,743 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
Outstanding at January 1, 2014 Average Price (in dollars per share)
$ 12.14 
Options granted, average exercise price (in dollars per share)
$ 20.93 
Options exercised, average exercise price (in dollars per share)
$ 12.17 
Cancelled or forfeited, average exercise price (in dollars per share)
$ 12.27 
Outstanding at March 31, 2014 Average Price (in dollars per share)
$ 13.26 
Exercisable at March 31, 2014, Average Exercise Price (in dollars per share)
$ 11.67 
Outstanding at March 31, 2014 Weighted Average Life
6 years 4 months 13 days 
Exercisable at March 31, 2014, Weighted Average Life
5 years 2 months 19 days 
Stock Compensation Summary of restricted stock activity (Details) (Restricted Stock [Member], USD $)
3 Months Ended
Mar. 31, 2014
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Unvested at January 1, 2013 (in shares)
275,525 
Granted (in shares)
104,100 
Released (in shares)
(123,829)
Cancelled or forfeited (in shares)
(1,700)
Unvested at March 31, 2013 (in shares)
254,096 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
Granted, Average Grant Date Fair Value (in dollars per share)
$ 20.93 
Released, Average Grant Date Fair Value (in dollars per share)
$ 11.75 
Cancelled or Forfeited, Average Grant Date Fair Value (in dollars per share)
$ 18.03 
Unvested shares at March 31, 2013, Average Grant Date Fair Value (in dollars per share)
$ 16.81 
Contingencies Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Nov. 30, 2011
Sep. 30, 2011
General and Administrative Expense
Environmental Issue
Pending Litigation
New Idria Mercury Mine
Sep. 30, 2011
Other Liabilities
Environmental Issue
Pending Litigation
New Idria Mercury Mine
Loss Contingencies [Line Items]
 
 
 
Expense related to remedial investigation and feasibility study
 
$ 1.9 
 
Payments charged against the reserve
 
 
0.6 
Estimate of EPA's interim removal project costs
$ 0.5 
 
 
Debt Schedule of Long-Term Debt (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 117,500 
$ 45,200 
Long-term Debt, net of deferred financing costs
116,691 
44,347 
Loan Agreement
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
17,500 
34,200 
Less unamortized deferred financing fees
 
 
Debt Instrument [Line Items]
 
 
Less unamortized deferred financing fees
809 
853 
Four Point Six Seven Percent Senior Unsecured Notes Due Twenty Twenty One [Member] |
Less unamortized deferred financing fees
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
40,000 
Interest rate
4.67% 
 
Five Point Two Five Percent Senior Unsecured Notes Due Twenty Twenty Four [Member] |
Less unamortized deferred financing fees
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
11,000 
11,000 
Interest rate
5.25% 
 
Five Point Three Zero Percent Senior Unsecured Notes Due Twenty Twenty Four [Member] |
Less unamortized deferred financing fees
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
29,000 
Interest rate
5.30% 
 
Five Point Four Five Percent Senior Unsecured Notes Due Twenty Twenty Six [Member] |
Less unamortized deferred financing fees
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 20,000 
$ 0 
Interest rate
5.45% 
 
Debt (Details) (USD $)
3 Months Ended 1 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Oct. 22, 2013
Senior Unsecured Note
Mar. 31, 2014
Loan Agreement
Dec. 31, 2013
Loan Agreement
Jan. 31, 2014
Less unamortized deferred financing fees
Mar. 31, 2014
Less unamortized deferred financing fees
Dec. 31, 2013
Less unamortized deferred financing fees
Mar. 31, 2014
Loan Agreement
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity on line of credit
 
 
 
 
 
 
 
 
 
$ 200,000,000 
Remaining amount available under the line of credit
 
 
 
 
177,900,000 
 
 
 
 
 
Letters of credit
4,600,000 
 
 
 
 
 
 
 
 
 
Face amount on debt instruments
 
 
 
100,000,000 
 
 
 
 
 
 
Long-term Debt
117,500,000 
 
45,200,000 
 
17,500,000 
34,200,000 
 
 
 
 
Unamortized debt issuance expense
 
 
 
 
 
 
 
809,000 
853,000 
 
Proceeds from long-term debt
$ 89,000,000 
$ 0 
 
 
 
 
$ 89,000,000 
 
 
 
Retirement Plans (Details) (Pension Plans, Defined Benefit [Member], USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Pension Plans, Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Interest cost
$ 70,000 
$ 65,000 
Expected return on assets
(93,000)
(83,000)
Amortization of actuarial net loss
11,000 
28,000 
Net periodic pension (benefit) cost
(12,000)
10,000 
Company contributions
80,000 
123,000 
Anticipated company contributions
$ 300,000 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Unrecognized tax benefits that would impact effective tax rate
$ 1.3 
 
$ 1.2 
Increase in gross unrecognized tax benefits
0.1 
 
 
Accrued income taxes
$ 0.1 
$ 0.1 
 
Segment Information Schedule of Net Sales by Segment (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Segment Reporting Information [Line Items]
 
 
Number of operating segments
 
Net Sales
$ 208,789 
$ 214,980 
Material Handling
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
90,613 
79,989 
Lawn and Garden
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
49,825 
60,363 
Distribution
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
39,735 
42,649 
Engineered Products
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
32,697 
36,956 
Intra-segment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
$ (4,081)
$ (4,977)
Segment Information Schedule of Income Before Income Taxes by Segment (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Segment Reporting Information [Line Items]
 
 
Operating income
$ 2,639 
$ 13,244 
Interest Expense
(1,579)
(1,092)
Income before income taxes
1,060 
12,152 
Material Handling
 
 
Segment Reporting Information [Line Items]
 
 
Operating income
10,940 
9,705 
Lawn and Garden
 
 
Segment Reporting Information [Line Items]
 
 
Operating income
(7,043)
2,281 
Distribution
 
 
Segment Reporting Information [Line Items]
 
 
Operating income
2,371 
2,839 
Engineered Products
 
 
Segment Reporting Information [Line Items]
 
 
Operating income
3,789 
5,077 
Corporate
 
 
Segment Reporting Information [Line Items]
 
 
Operating income
$ (7,418)
$ (6,658)