MYERS INDUSTRIES INC, 10-Q filed on 5/1/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2013
Apr. 25, 2013
Document Information [Line Items]
 
 
Entity Registrant Name
MYERS INDUSTRIES INC 
 
Entity Central Index Key
0000069488 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2013 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q1 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
33,464,499 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net sales
$ 214,980 
$ 198,789 
Cost of sales
156,662 
140,791 
Gross profit
58,318 
57,998 
Selling, general and administrative expenses
45,074 
40,881 
Operating income
13,244 
17,117 
Interest expense, net
1,092 
1,081 
Income before income taxes
12,152 
16,036 
Income tax expense
4,269 
6,051 
Net income
$ 7,883 
$ 9,985 
Income per common share:
 
 
Basic (in dollars per share)
$ 0.24 
$ 0.30 
Diluted (in dollars per share)
$ 0.23 
$ 0.29 
Dividends declared per share (in dollars per share)
$ 0.09 
$ 0.08 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net income
$ 7,883 
$ 9,985 
Other comprehensive income (loss), net of tax:
 
 
Foreign currency translation adjustment
(851)
1,385 
Pension liability
(75)
632 
Total other comprehensive income (loss), net of tax
(926)
2,017 
Comprehensive income
$ 6,957 
$ 12,002 
Condensed Consolidated Statements of Financial Position (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Current Assets
 
 
Cash
$ 4,053 
$ 3,948 
Accounts receivable-less allowances of $3,782 and $3,255, respectively
124,076 
115,508 
Inventories
 
 
Finished and in-process products
75,074 
72,899 
Raw materials and supplies
34,339 
34,603 
Inventory net
109,413 
107,502 
Prepaid expenses
9,232 
9,033 
Deferred income taxes
2,240 
3,605 
Total Current Assets
249,014 
239,596 
Other Assets
 
 
Goodwill
61,039 
61,056 
Patents and other intangible assets
25,002 
25,839 
Other
7,509 
7,882 
Total other non current assets
93,550 
94,777 
Property, Plant and Equipment, at Cost
 
 
Land
4,438 
4,438 
Buildings and leasehold improvements
57,056 
57,058 
Machinery and equipment
449,235 
445,789 
Property, Plant and Equipment, at cost
510,729 
507,285 
Less allowances for depreciation and amortization
(364,690)
(356,802)
Property, plant and equipment, net
146,039 
150,483 
Total Assets
488,603 
484,856 
Current Liabilities
 
 
Accounts payable
63,773 
72,417 
Accrued expenses
 
 
Employee compensation
13,982 
18,885 
Income taxes
2,675 
1,090 
Taxes, other than income taxes
2,643 
2,606 
Accrued interest
841 
240 
Other
19,459 
19,239 
Total Current Liabilities
103,373 
114,477 
Long-term debt
103,578 
92,814 
Other liabilities
17,089 
17,865 
Deferred income taxes
30,470 
29,678 
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 33,551,449 and 33,480,189; net of treasury shares of 4,148,683 and 4,356,160, respectively)
20,329 
20,316 
Additional paid-in capital
266,632 
266,419 
Accumulated other comprehensive income
9,717 
10,643 
Retained deficit
(62,585)
(67,356)
Total Shareholders' Equity
234,093 
230,022 
Total Liabilities and Shareholders' Equity
$ 488,603 
$ 484,856 
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Current Assets
 
 
Allowances for accounts receivable
$ 3,782 
$ 3,255 
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)
33,551,449 
33,480,189 
Common shares, treasury (in shares)
4,148,683 
4,356,160 
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 Income (Deficit)
Balance at January 1, 2013 at Dec. 31, 2012
$ 230,022 
$ 20,316 
$ 266,419 
$ 10,643 
$ (67,356)
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income
7,883 
7,883 
Other comprehensive income (loss)
 
(926)
Purchases for treasury
 
(83)
(1,872)
Common stock issued
 
96 
1,610 
Cancellations and terminations of share grants
 
37 
Stock based compensation
 
438 
Dividends declared - $.09 per share
 
(3,112)
Balance at March 31, 2013 at Mar. 31, 2013
$ 234,093 
$ 20,329 
$ 266,632 
$ 9,717 
$ (62,585)
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Statement of Stockholders' Equity [Abstract]
 
 
Dividends declared per share (in dollars per share)
$ 0.09 
$ 0.08 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash Flows from Operating Activities
 
 
Net income
$ 7,883 
$ 9,985 
Adjustments to reconcile net income to net cash used in operating activities:
 
 
Depreciation
8,150 
7,545 
Amortization of intangible assets
1,001 
757 
Non-cash stock compensation
438 
667 
Provision for (recovery of) loss on accounts receivable
822 
(627)
Deferred taxes
2,227 
(32)
Other long-term liabilities
(834)
586 
Gain on sale of property, plant and equipment
(224)
Other
50 
Cash flow used for working capital:
 
 
Accounts receivable
(9,833)
(7,679)
Inventories
(2,224)
(7,089)
Prepaid expenses
(237)
(1,726)
Accounts payable and accrued expenses
(13,896)
(8,623)
Net cash used in operating activities
(6,503)
(6,410)
Cash Flows from Investing Activities
 
 
Additions to property, plant and equipment
(4,508)
(3,138)
Proceeds from sale of property, plant and equipment
1,332 
Other
96 
(3)
Net cash used in investing activities
(4,412)
(1,809)
Cash Flows from Financing Activities
 
 
Repayment of long-term debt
(305)
Net borrowing on credit facility
10,763 
6,262 
Cash dividends paid
(2,316)
Proceeds from issuance of common stock
1,706 
397 
Tax benefit from options
37 
Repurchase of common stock
(1,955)
Net cash provided by financing activities
10,551 
4,038 
Foreign exchange rate effect on cash
469 
676 
Net increase (decrease) in cash
105 
(3,505)
Cash at January 1
3,948 
6,801 
Cash at March 31
$ 4,053 
$ 3,296 
Statement of Accounting Policy
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, 2013, and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2013.
Recent Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income requiring new disclosures regarding reclassification adjustments from accumulated other comprehensive income ("AOCI"). ASU No. 2013-02 requires disclosure of amounts reclassified out of AOCI in its entirety, by component, which the Company has elected to disclose in the notes (see below). We adopted this guidance effective January 1, 2013.
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 Credit 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 $35.0 million fixed rate senior notes was estimated at $36.2 million and $36.5 million at March 31, 2013 and December 31, 2012, respectively, 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.

Accumulated Other Comprehensive Income

The balances in the Company’s accumulated other comprehensive income ("AOCI") as of March 31, 2013 and March 31, 2012 are as follows:
 
Foreign currency
 
Defined benefit pension plans
 
Total
Balance at January 1, 2012
$
9,994

 
$
(2,700
)
 
$
7,294

Other comprehensive income before reclassifications
1,385

 

 
1,385

Amounts reclassified from AOCI to income tax expense (benefit) in the Condensed Consolidated Statements of Income

 
632

 
632

Net current-period other comprehensive income
$
1,385

 
$
632

 
$
2,017

Balance at March 31, 2012
$
11,379

 
$
(2,068
)
 
$
9,311

 
 
 
 
 
 
Balance at January 1, 2013
$
12,784

 
$
(2,141
)
 
$
10,643

Other comprehensive income before reclassifications
(851
)
 

 
(851
)
Amounts reclassified from AOCI to income tax expense (benefit) in the Condensed Consolidated Statements of Income

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

 
$
(2,216
)
 
$
9,717


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
Approximately twenty-two percent of the Company’s inventories use the last-in, first-out (LIFO) 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, 2013.
Acquisitions
Acquisitions
Acquisitions
In October 2012, the Company acquired 100% of the stock of Jamco Products Inc. ("Jamco"), an Illinois corporation that is a leading designer and manufacturer of heavy-duty industrial steel carts and safety cabinets used across many markets. The total purchase price was approximately $15.1 million in cash, net of $0.1 million of cash acquired.
Jamco's assets and liabilities are recorded at fair value as of the date of acquisition using primarily level 2 and level 3 fair value inputs. Intangible assets included in the acquisition of Jamco are trade name of $1.2 million, technology of $2.0 million, non-compete agreement of $0.1 million and customer relationships of $2.4 million. The technology, non-compete agreement and customer relationships are subject to amortization and have estimated useful lives of ten, two and six years, respectively. The Jamco trade name has an indefinite life and will be subject to periodic (at least annual) evaluation for impairment.
In July 2012, the Company acquired 100% of the stock of Plasticos Novel do Nordeste S.A. ("Novel"), a Brazil-based designer and manufacturer of reusable plastic crates and containers used for closed-loop shipping and storage. Novel also produces a diverse range of plastic industrial safety products. The total purchase price was approximately $31.0 million, which includes a cash payment of $3.4 million, net of $0.6 million of cash acquired, assumed debt of approximately $26.0 million and contingent consideration of $0.9 million based on an earnout. The contingent consideration is contingent upon the results of Novel exceeding predefined earnings before interest, taxes, depreciation and amortization over the next four years.
Novel's assets and liabilities are recorded at fair value as of the date of acquisition using primarily level 3 fair value inputs. Intangible assets included in the acquisition of Novel include trade name of $1.6 million, know-how of $1.8 million and customer relationships of $2.4 million The know-how and customer relationships are subject to amortization and have estimated useful lives of ten and six years, respectively. The Novel trade name has an indefinite life and will be subject to periodic (at least annual) evaluation for impairment.
The following unaudited pro forma information presents a summary of consolidated results of operations for the Company including Novel and Jamco as if the acquisitions had occurred on January 1, 2012.
 
Three Months Ended
 March 31,
 
2012
Net sales
$
212,584

Cost of sales
150,477

Gross profit
62,107

Selling, general & administrative expenses
43,319

Operating income
18,788

Interest expense, net
2,215

Income before taxes
16,573

Income taxes
6,255

Net income
$
10,318

 
 
Income per basic share
$
0.31

Income per diluted share
$
0.30


These unaudited pro forma results have been prepared for comparative purposes only and may not be indicative of results of operations which actually would have occurred had the acquisitions taken place on January 1, 2012 or indicative of future results.
The operating results of both businesses acquired have been included in our Material Handling Segment since the date of acquisition. The allocation of the purchase price and the estimated goodwill, which is not deductible for income tax purposes, and other intangibles are as follows:
Assets acquired:
Novel
 
Jamco
Cash
$
630

 
$
88

Accounts receivable
5,467

 
1,690

Inventory
5,993

 
3,282

Property, plant and equipment
13,636

 
2,559

Intangibles
5,790

 
5,680

Deferred tax assets
435

 
28

Prepaid assets
1,451

 
48

Other
719

 
2

Assets acquired, less cash
$
33,491

 
$
13,289

 
 
 
 
Liabilities assumed:
 
 
 
Accounts payable and accruals
$
3,134

 
$
1,436

Other taxes
3,608

 
676

Other long-term liabilities
2,293

 
454

Debt
26,028

 

Deferred tax liabilities
3,804

 
3,044

Liabilities assumed
38,867

 
5,610

Goodwill
8,805

 
7,435

Total consideration, less cash acquired
$
3,429

 
$
15,114

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, 2013 was as follows:

Segment
Balance at January 1, 2013
 
Acquisitions
 
Foreign
Currency
Translation

 
Impairment
 
Balance at March 31, 2013
Material Handling
$
50,521

 
$

 
$
114

 
$

 
$
50,635

Lawn and Garden
9,614

 

 
(131
)
 

 
9,483

Distribution
214

 

 

 

 
214

Engineered Products
707

 

 

 

 
707

Total
$
61,056

 
$

 
$
(17
)
 
$

 
$
61,039

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,
 
2013
 
2012
Weighted average common shares outstanding
 
 
 
Basic
33,504,222

 
33,439,012

Dilutive effect of stock options and restricted stock
355,194

 
473,153

Weighted average common shares outstanding diluted
33,859,416

 
33,912,165


Options to purchase 471,400 and 217,500 shares of common stock that were outstanding at March 31, 2013 and 2012, 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, and their effect would be anti-dilutive.
Supplemental Disclosure of Cash Flow Information
Supplemental Disclosure of Cash Flow Information
Supplemental Disclosure of Cash Flow Information

 
Three Months Ended
March 31,
 
2013
 
2012
Interest paid
$
526

 
$
296

Income taxes paid
$
435

 
$
2,455

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. Our Distribution and Lawn and Garden Segments, as well as Corporate costs are recorded in SG&A, while all Engineered Products Segment expenses are recorded in cost of sales. Material Handling costs are recorded in both SG&A and cost of sales. The restructuring charges by segment are presented in the following table.
 
Three Months Ended
March 31,
Segment
2013
 
2012
Material Handling
$
210

 
$

Lawn and Garden
403

 
23

Distribution
74

 
430

Engineered Products
3

 
102

Corporate
17

 

Total
$
707

 
$
555





The Company recorded total restructuring expenses of $0.5 million in SG&A, and $0.2 million in cost of sales for the three months ended March 31, 2013. The Company recorded total restructuring expenses of $0.5 million in SG&A and $0.1 million in cost of sales for the three months ended March 31, 2012. Estimated lease obligations associated with closed facilities were based on level 2 inputs.

The amounts for severance and personnel costs associated with restructuring have been included in other accrued expenses on the accompanying Condensed Consolidated Statements of Financial Position.

 
Severance and
 
Other
 
 
 
Personnel
 
Exit Costs
 
Total
Balance at January 1, 2012
$

 
$
605

 
$
605

Provision
239

 
316

 
555

Less: Payments
(239
)
 
(353
)
 
(592
)
Balance at March 31, 2012
$

 
$
568

 
$
568

 
 
 
 
 
 
Balance at January 1, 2013
$
318

 
$

 
$
318

Provision
231

 
476

 
707

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

 
$

 
$


Approximately $5.7 million of property, plant, and equipment has been classified as held for sale due to restructuring actions and are included in other assets in the Condensed Consolidated Statement of Financial Position at both March 31, 2013 and December 31, 2012, The Company is actively pursuing the sale of these facilities.
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, stock units 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 $0.4 million and $0.7 million for the three months ended March 31, 2013 and 2012, 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, 2013 was approximately $5.2 million which will be recognized over the next three years, as such compensation is earned.
On March 1, 2013, stock options for 323,400 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
1.86
%
Expected dividend yield
2.40
%
Expected life of award (years)
7.00

Expected volatility
50.00
%
Fair value per option share
$
5.39



The following table provides a summary of stock option activity for the period ended March 31, 2013:

 
Shares
 
Average
Exercise
Price
 
Weighted
Average
Life
Outstanding at January 1, 2013
1,919,021

 
$
11.63

 
 
Options granted
323,400

 
14.77

 
 
Options exercised
(155,178
)
 
10.82

 
 
Cancelled or forfeited
(127,320
)
 
13.91

 
 
Outstanding at March 31, 2013
1,959,923

 
$
12.07

 
6.63 years
Exercisable at March 31, 2013
1,428,395

 
$
11.55

 
5.65 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, 2013 and 2012 was approximately $0.6 million and $0.1 million, respectively.
On March 1, 2013, 169,100 Restricted Stock Unit ("RSU") Awards were granted with a two or three year vesting period. The RSU's had a grant date fair value of $14.77 per share, which was the closing price of the common stock on the date of grant.
The following table provides a summary of RSU and restricted stock activity for the three months ended March 31, 2013:
 
Awards
 
Average Grant-Date Fair Value
Unvested at January 1, 2013
363,125

 
 
Granted
169,100

 
$
14.77

Released
(110,800
)
 
9.97

Cancelled or forfeited
(122,500
)
 
13.87

Unvested at March 31, 2013
298,925

 
$
13.03


Restricted stock are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a two or 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, 2013, restricted stock awards had vesting periods up through March 2016.
Contingencies
Contingencies
Contingencies

New Idria Mercury Mine

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. 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 in the San Carlos Creek, Silver Creek and a portion of Panoche Creek and that other downstream locations may also be impacted.

Since Buckhorn Inc. may be a potentially responsible party (“PRP”) of the New Idria Mercury Mine, the Company recognized an expense of $1.9 million 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 $0.4 million have been charged against the reserve classified in Other Liabilities on the Condensed Consolidated Statements of Financial Position as of March 31, 2013. As the Site Remedial Investigation and Feasibility Study ("RI/FS") proceeds, it is likely that adjustments to the recognized expense will be necessary to reflect new information regarding the nature and extent of site contamination, the range of remediation alternatives available, and evolving remediation standards.  The final remedial action will be selected after completion of the RI/FS.  At that time the Company is likely to have additional information regarding remedial action costs, the number and financial condition of other PRPs, 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 $500,000. It is possible that at some future date the EPA will seek recovery of the costs of this work from PRPs.
Other
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 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
Long-term debt consisted of the following:
 
 
March 31,
 
December 31,
 
2013
 
2012
Credit agreement
$
68,578

 
$
57,814

Senior notes
35,000

 
35,000

 
$
103,578

 
$
92,814


Under terms of the Credit Agreement with a group of banks, the Company may borrow up to $180 million, reduced for letters of credit issued. As of March 31, 2013, the Company had $106.3 million available under the Credit Agreement.
In December 2003, the Company issued $100 million in Senior Unsecured Notes (the "Notes") consisting of $65 million of notes with an interest rate of 6.08 percent and a 7 year maturity and $35 million of notes with an interest rate of 6.81 percent and a 10 year maturity. Proceeds from the issuance of the Notes were used to pay down the term loan and revolving credit facility borrowing outstanding at that time. As of March 31, 2013, the Company has classified the $35 million of Senior Notes due in December 2013 as a long-term liability since it has the intent to refinance the debt on a long-term basis and has demonstrated the ability via capacity available under the non-cancelable revolver feature of our current Credit Agreement.
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,
 
2013
 
2012
Service cost
$
8

 
$
18

Interest cost
65

 
72

Expected return on assets
(91
)
 
(77
)
Amortization of actuarial net loss
28

 
25

Net periodic pension cost
$
10

 
$
38

Company contributions
$
123

 
$
76


The Company anticipates contributions totaling $0.4 million to its pension plan for the full year of 2013.
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, 2013 and March 31, 2012, was $1.2 million and $0.5 million, respectively. The $0.7 million increase in the gross unrecognized tax benefits from March 31, 2012 to March 31, 2013 resulted from an increase in ASC 740-10-25-6, Accounting for Uncertainty in Income Taxes, reserves related to acquired businesses and previous year tax positions. Accrued interest expense included with accrued income taxes in the Company's Condensed Consolidated Statements of Financial Position was less than $0.1 million at March 31, 2013 and December 31, 2012.

As of March 31, 2013, the Company and its significant subsidiaries are subject to examination for the years after 2006 in Brazil, after 2007 in Canada, and after 2010 in the United States. The Company and its subsidiaries are subject to examination in certain states within the United States either after 2007 or after 2008.
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 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
2013
 
2012
Material Handling
$
79,989

 
$
65,221

Lawn and Garden
60,363

 
59,184

Distribution
42,649

 
42,738

Engineered Products
36,956

 
37,227

Inter-company Sales
(4,977
)
 
(5,581
)
Net Sales
$
214,980

 
$
198,789


 
Three Months Ended
March 31,
Income Before Income Taxes
2013
 
2012
Material Handling
$
9,705

 
$
13,150

Lawn and Garden
2,281

 
1,218

Distribution
2,839

 
3,511

Engineered Products
5,077

 
4,591

Corporate
(6,658
)
 
(5,353
)
Interest expense - net
(1,092
)
 
(1,081
)
Income before income taxes
$
12,152

 
$
16,036

Statement of Accounting Policy (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.
Recent Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income requiring new disclosures regarding reclassification adjustments from accumulated other comprehensive income ("AOCI"). ASU No. 2013-02 requires disclosure of amounts reclassified out of AOCI in its entirety, by component, which the Company has elected to disclose in the notes (see below). We adopted this guidance effective January 1, 2013.
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 Credit 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 $35.0 million fixed rate senior notes was estimated at $36.2 million and $36.5 million at March 31, 2013 and December 31, 2012, respectively, 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 Policy (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, 2013 and March 31, 2012 are as follows:
 
Foreign currency
 
Defined benefit pension plans
 
Total
Balance at January 1, 2012
$
9,994

 
$
(2,700
)
 
$
7,294

Other comprehensive income before reclassifications
1,385

 

 
1,385

Amounts reclassified from AOCI to income tax expense (benefit) in the Condensed Consolidated Statements of Income

 
632

 
632

Net current-period other comprehensive income
$
1,385

 
$
632

 
$
2,017

Balance at March 31, 2012
$
11,379

 
$
(2,068
)
 
$
9,311

 
 
 
 
 
 
Balance at January 1, 2013
$
12,784

 
$
(2,141
)
 
$
10,643

Other comprehensive income before reclassifications
(851
)
 

 
(851
)
Amounts reclassified from AOCI to income tax expense (benefit) in the Condensed Consolidated Statements of Income

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

 
$
(2,216
)
 
$
9,717

Acquisitions Acquisition Purchase Price Allocation (Tables)
The following unaudited pro forma information presents a summary of consolidated results of operations for the Company including Novel and Jamco as if the acquisitions had occurred on January 1, 2012.
 
Three Months Ended
 March 31,
 
2012
Net sales
$
212,584

Cost of sales
150,477

Gross profit
62,107

Selling, general & administrative expenses
43,319

Operating income
18,788

Interest expense, net
2,215

Income before taxes
16,573

Income taxes
6,255

Net income
$
10,318

 
 
Income per basic share
$
0.31

Income per diluted share
$
0.30

The allocation of the purchase price and the estimated goodwill, which is not deductible for income tax purposes, and other intangibles are as follows:
Assets acquired:
Novel
 
Jamco
Cash
$
630

 
$
88

Accounts receivable
5,467

 
1,690

Inventory
5,993

 
3,282

Property, plant and equipment
13,636

 
2,559

Intangibles
5,790

 
5,680

Deferred tax assets
435

 
28

Prepaid assets
1,451

 
48

Other
719

 
2

Assets acquired, less cash
$
33,491

 
$
13,289

 
 
 
 
Liabilities assumed:
 
 
 
Accounts payable and accruals
$
3,134

 
$
1,436

Other taxes
3,608

 
676

Other long-term liabilities
2,293

 
454

Debt
26,028

 

Deferred tax liabilities
3,804

 
3,044

Liabilities assumed
38,867

 
5,610

Goodwill
8,805

 
7,435

Total consideration, less cash acquired
$
3,429

 
$
15,114

Goodwill (Tables)
The change in goodwill
The change in goodwill for the three months ended March 31, 2013 was as follows:

Segment
Balance at January 1, 2013
 
Acquisitions
 
Foreign
Currency
Translation

 
Impairment
 
Balance at March 31, 2013
Material Handling
$
50,521

 
$

 
$
114

 
$

 
$
50,635

Lawn and Garden
9,614

 

 
(131
)
 

 
9,483

Distribution
214

 

 

 

 
214

Engineered Products
707

 

 

 

 
707

Total
$
61,056

 
$

 
$
(17
)
 
$

 
$
61,039

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,
 
2013
 
2012
Weighted average common shares outstanding
 
 
 
Basic
33,504,222

 
33,439,012

Dilutive effect of stock options and restricted stock
355,194

 
473,153

Weighted average common shares outstanding diluted
33,859,416

 
33,912,165

Supplemental Disclosure of Cash Flow Information (Tables)
Supplemental Disclosure of Cash Flow Information
 
Three Months Ended
March 31,
 
2013
 
2012
Interest paid
$
526

 
$
296

Income taxes paid
$
435

 
$
2,455

Restructuring (Tables)
The restructuring charges by segment are presented in the following table.
 
Three Months Ended
March 31,
Segment
2013
 
2012
Material Handling
$
210

 
$

Lawn and Garden
403

 
23

Distribution
74

 
430

Engineered Products
3

 
102

Corporate
17

 

Total
$
707

 
$
555

The amounts for severance and personnel costs associated with restructuring have been included in other accrued expenses on the accompanying Condensed Consolidated Statements of Financial Position.

 
Severance and
 
Other
 
 
 
Personnel
 
Exit Costs
 
Total
Balance at January 1, 2012
$

 
$
605

 
$
605

Provision
239

 
316

 
555

Less: Payments
(239
)
 
(353
)
 
(592
)
Balance at March 31, 2012
$

 
$
568

 
$
568

 
 
 
 
 
 
Balance at January 1, 2013
$
318

 
$

 
$
318

Provision
231

 
476

 
707

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

 
$

 
$

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
1.86
%
Expected dividend yield
2.40
%
Expected life of award (years)
7.00

Expected volatility
50.00
%
Fair value per option share
$
5.39

The following table provides a summary of stock option activity for the period ended March 31, 2013:

 
Shares
 
Average
Exercise
Price
 
Weighted
Average
Life
Outstanding at January 1, 2013
1,919,021

 
$
11.63

 
 
Options granted
323,400

 
14.77

 
 
Options exercised
(155,178
)
 
10.82

 
 
Cancelled or forfeited
(127,320
)
 
13.91

 
 
Outstanding at March 31, 2013
1,959,923

 
$
12.07

 
6.63 years
Exercisable at March 31, 2013
1,428,395

 
$
11.55

 
5.65 years
The following table provides a summary of RSU and restricted stock activity for the three months ended March 31, 2013:
 
Awards
 
Average Grant-Date Fair Value
Unvested at January 1, 2013
363,125

 
 
Granted
169,100

 
$
14.77

Released
(110,800
)
 
9.97

Cancelled or forfeited
(122,500
)
 
13.87

Unvested at March 31, 2013
298,925

 
$
13.03

Debt (Tables)
Schedule of Long-term Debt Instruments [Table Text Block]
Long-term debt consisted of the following:
 
 
March 31,
 
December 31,
 
2013
 
2012
Credit agreement
$
68,578

 
$
57,814

Senior notes
35,000

 
35,000

 
$
103,578

 
$
92,814

Retirement Plans (Tables)
Net periodic pension cost
Net periodic pension cost are as follows:
 
Three Months Ended
March 31,
 
2013
 
2012
Service cost
$
8

 
$
18

Interest cost
65

 
72

Expected return on assets
(91
)
 
(77
)
Amortization of actuarial net loss
28

 
25

Net periodic pension cost
$
10

 
$
38

Company contributions
$
123

 
$
76

Segment Information (Tables)
 
Three Months Ended
March 31,
Net Sales
2013
 
2012
Material Handling
$
79,989

 
$
65,221

Lawn and Garden
60,363

 
59,184

Distribution
42,649

 
42,738

Engineered Products
36,956

 
37,227

Inter-company Sales
(4,977
)
 
(5,581
)
Net Sales
$
214,980

 
$
198,789


 
Three Months Ended
March 31,
Income Before Income Taxes
2013
 
2012
Material Handling
$
9,705

 
$
13,150

Lawn and Garden
2,281

 
1,218

Distribution
2,839

 
3,511

Engineered Products
5,077

 
4,591

Corporate
(6,658
)
 
(5,353
)
Interest expense - net
(1,092
)
 
(1,081
)
Income before income taxes
$
12,152

 
$
16,036

Statement of Accounting Policy (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Foreign currency
Mar. 31, 2012
Foreign currency
Mar. 31, 2013
Defined benefit pension plans
Mar. 31, 2012
Defined benefit pension plans
Mar. 31, 2013
Accumulative Other Comprehensive Income
Mar. 31, 2012
Accumulative Other Comprehensive Income
Mar. 31, 2013
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Senior notes
Mar. 31, 2013
Estimate of Fair Value, Fair Value Disclosure [Member]
Senior notes
Dec. 31, 2012
Estimate of Fair Value, Fair Value Disclosure [Member]
Senior notes
Organization, Consolidation and Presentation of Financial Statements [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Notes Payable, Fair Value Disclosure
 
 
 
 
 
 
 
 
$ 35,000,000 
$ 36,200,000 
$ 36,500,000 
Accumlated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
10,643,000 
 
12,784,000 
9,994,000 
(2,141,000)
(2,700,000)
10,643,000 
7,294,000 
 
 
 
Other comprehensive income before reclassifications
 
 
(851,000)
1,385,000 
(851,000)
1,385,000 
 
 
 
Amounts reclassified from AOCI to income tax expense (benefit) in the Condensed Consolidated Statements of Income
 
 
(75,000)
632,000 
(75,000)
632,000 
 
 
 
Total other comprehensive income (loss), net of tax
(926,000)
2,017,000 
(851,000)
1,385,000 
(75,000)
632,000 
(926,000)
2,017,000 
 
 
 
Ending balance
$ 9,717,000 
 
$ 11,933,000 
$ 11,379,000 
$ (2,216,000)
$ (2,068,000)
$ 9,717,000 
$ 9,311,000 
 
 
 
Inventories (Details)
Mar. 31, 2013
Inventory Disclosure [Abstract]
 
Percentage of LIFO Inventory
22.00% 
Acquisitions (Details) (USD $)
3 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Mar. 31, 2013
Developed Technology Rights [Member]
Mar. 31, 2013
Customer Relationships [Member]
Oct. 31, 2012
Jamco [Member]
Oct. 2, 2012
Jamco [Member]
Oct. 2, 2012
Jamco [Member]
Customer Relationships [Member]
Oct. 2, 2012
Jamco [Member]
Technology [Member]
Oct. 2, 2012
Jamco [Member]
Noncompete Agreements [Member]
Jul. 31, 2012
Palsticos Novel S.A. [Member]
Jul. 31, 2011
Palsticos Novel S.A. [Member]
Jul. 9, 2012
Palsticos Novel S.A. [Member]
Jul. 9, 2012
Palsticos Novel S.A. [Member]
Developed Technology Rights [Member]
Jul. 9, 2012
Palsticos Novel S.A. [Member]
Customer Relationships [Member]
Oct. 31, 2012
Customer Relationships [Member]
Jamco [Member]
Oct. 31, 2012
Noncompete Agreements [Member]
Jamco [Member]
Oct. 31, 2012
Technology [Member]
Jamco [Member]
Oct. 2, 2012
Trade Names [Member]
Jamco [Member]
Jul. 9, 2012
Trade Names [Member]
Palsticos Novel S.A. [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of entity acquired
 
 
 
100.00% 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
Purchase price of business
 
 
 
$ 15,100,000 
 
 
 
 
 
$ 31,000,000 
 
 
 
 
 
 
 
Cash acquired
 
 
 
88,000 
 
 
 
 
 
630,000 
 
 
 
 
 
 
 
Trade name acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000 
 
Acquired finite-lived intangible assets
 
 
 
 
2,400,000 
2,000,000 
100,000 
 
 
 
 
 
 
 
 
 
 
Useful lives of intangible assets acquired
10 years 
6 years 
 
 
 
 
 
 
 
 
 
 
6 years 
2 years 
10 years 
 
 
Cash payment for acquisition
 
 
 
 
 
 
 
3,400,000 
 
 
 
 
 
 
 
 
 
Cash acquired from acquisition
 
 
100,000 
 
 
 
 
600,000 
 
 
 
 
 
 
 
 
 
Debt assumed in acquisition
 
 
 
 
 
 
 
 
26,028,000 
 
 
 
 
 
 
 
Contingent consideration
 
 
 
 
 
 
 
 
 
900,000 
 
 
 
 
 
 
 
Contingency period
 
 
 
 
 
 
 
 
4 years 
 
 
 
 
 
 
 
 
Indefinite-lived trade name acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600,000 
Finite-lived intangible assets acquired
 
 
 
$ 5,680,000 
 
 
 
 
 
$ 5,790,000 
$ 1,800,000 
$ 2,400,000 
 
 
 
 
 
Acquisitions Pro Forma (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Business Acquisition [Line Items]
 
Net sales
$ 212,584 
Cost of sales
150,477 
Gross profit
62,107 
Selling, general & administrative expenses
43,319 
Operating income
18,788 
Interest expense, net
2,215 
Income before taxes
16,573 
Income taxes
6,255 
Net income
$ 10,318 
Income per basic share
$ 0.31 
Income per diluted share
$ 0.30 
Acquisitions Allocation of Purchase Price (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Jul. 9, 2012
Palsticos Novel S.A. [Member]
Oct. 2, 2012
Jamco [Member]
Assets acquired:
 
 
 
 
Cash
 
 
$ 630 
$ 88 
Accounts receivable
 
 
5,467 
1,690 
Inventory
 
 
5,993 
3,282 
Property, plant and equipment
 
 
13,636 
2,559 
Intangibles
 
 
5,790 
5,680 
Deferred tax assets
 
 
435 
28 
Prepaid assets
 
 
1,451 
48 
Other
 
 
719 
Assets acquired, less cash
 
 
33,491 
13,289 
Liabilities assumed:
 
 
 
 
Accounts payable and accruals
 
 
3,134 
1,436 
Other taxes
 
 
3,608 
676 
Other long-term liabilities
 
 
2,293 
454 
Debt
 
 
26,028 
Deferred tax liabilities
 
 
3,804 
3,044 
Liabilities assumed
 
 
38,867 
5,610 
Goodwill
61,039 
61,056 
8,805 
7,435 
Total consideration, less cash acquired
 
 
$ 3,429 
$ 15,114 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Goodwill [Roll Forward]
 
Balance at January 1, 2013
$ 61,056 
Acquisitions
Foreign Currency Translation
(17)
Impairment
Balance at March 31, 2013
61,039 
Material Handling
 
Goodwill [Roll Forward]
 
Balance at January 1, 2013
50,521 
Acquisitions
Foreign Currency Translation
114 
Impairment
Balance at March 31, 2013
50,635 
Lawn and Garden
 
Goodwill [Roll Forward]
 
Balance at January 1, 2013
9,614 
Acquisitions
Foreign Currency Translation
(131)
Impairment
Balance at March 31, 2013
9,483 
Distribution
 
Goodwill [Roll Forward]
 
Balance at January 1, 2013
214 
Acquisitions
Foreign Currency Translation
Impairment
Balance at March 31, 2013
214 
Engineered Products
 
Goodwill [Roll Forward]
 
Balance at January 1, 2013
707 
Acquisitions
Foreign Currency Translation
Impairment
Balance at March 31, 2013
$ 707 
Net Income Per Common Share (Details)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Earnings Per Share [Abstract]
 
 
Basic (in shares)
33,504,222 
33,439,012 
Dilutive effect of stock options and restricted stock (in shares)
355,194 
473,153 
Weighted average common shares outstanding diluted (in shares)
33,859,416 
33,912,165 
Net Income Per Common Share Weighted average number of common shares outstanding during the period (Details) (Stock Options [Member])
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Stock Options [Member]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Options to purchase common stock outstanding (in shares)
471,400 
217,500 
Supplemental Disclosure of Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Supplemental Cash Flow Information [Abstract]
 
 
Interest paid
$ 526 
$ 296 
Income taxes paid
$ 435 
$ 2,455 
Restructuring Restructuring Charges by Segment (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
$ 707 
$ 555 
Material Handling
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
210 
Lawn and Garden
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
403 
23 
Distribution
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
74 
430 
Engineered Products
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
102 
Corporate
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
$ 17 
$ 0 
Restructuring Reserve (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
$ 707,000 
$ 555,000 
 
Property, plant and equipment classfied as held for sale
5,700,000 
 
5,700,000 
Restructuring Reserve [Roll Forward]
 
 
 
Balance, beginning
318,000 
605,000 
 
Provision
707,000 
555,000 
 
Less: Payments
(1,025,000)
(592,000)
 
Balance, ending
568,000 
 
Severance & Personnel [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Balance, beginning
318,000 
 
Provision
231,000 
239,000 
 
Less: Payments
(549,000)
(239,000)
 
Balance, ending
 
Other Exit Costs [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Balance, beginning
605,000 
 
Provision
476,000 
316,000 
 
Less: Payments
(476,000)
(353,000)
 
Balance, ending
568,000 
 
Selling, General and Administrative Expenses [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
500,000 
500,000 
 
Cost of Sales [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Charges
$ 200,000 
$ 100,000 
 
Stock Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
$ 0.4 
$ 0.7 
Options Granted (in shares)
323,400 
 
The total intrinsic value of all stock options exercised
0.6 
0.1 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting period, in years
3 years 
 
Option expiration period
10 years 
 
Total unrecognized compensation cost related to non-vested share based compensation arrangements
$ 5.2 
 
Recognition period for unrecognized stock compensation
3 years 
 
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted (in shares)
169,100 
 
Granted, Average Grant Date Fair Value (in dollars per share)
$ 14.77 
 
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 
 
Stock Compensation Fair Value of stock options granted assumptions used (Details)
3 Months Ended
Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Risk free interest rate
1.86% 
Expected dividend yield
2.40% 
Expected life of award (in years)
7 years 
Expected volatility
50.00% 
Fair value per option share (in dollars per share)
$ 5.39 
Stock Compensation Summary of stock option activity for the period (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Outstanding at January 1, 2013
1,919,021 
Options Granted (in shares)
323,400 
Options Exercised, Shares (in shares)
(155,178)
Cancelled or Forfeited (in shares)
(127,320)
Outstanding at March 31, 2013 (in shares)
1,959,923 
Exercisable at March 31, 2013 (in shares)
1,428,395 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
Outstanding at January 1, 2013 Average Price (in dollars per share)
$ 11.63 
Options granted, average exercise price (in dollars per share)
$ 14.77 
Options exercised, average exercise price (in dollars per share)
$ 10.82 
Cancelled or forfeited, average exercise price (in dollars per share)
$ 13.91 
Outstanding at March 31, 2013 Average Price (in dollars per share)
$ 12.07 
Exercisable at March 31, 2013, Average Exercise Price (in dollars per share)
$ 11.55 
Outstanding at March 31, 2013 Weighted Average Life
6 years 7 months 17 days 
Exercisable at March 31, 2013, Weighted Average Life
5 years 7 months 24 days 
Stock Compensation Summary of restricted stock activity (Details) (Restricted Stock [Member], USD $)
3 Months Ended
Mar. 31, 2013
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)
363,125 
Granted (in shares)
169,100 
Released (in shares)
(110,800)
Cancelled or forfeited (in shares)
(122,500)
Unvested at March 31, 2013 (in shares)
298,925 
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)
$ 14.77 
Released, Average Grant Date Fair Value (in dollars per share)
$ 9.97 
Cancelled or Forfeited, Average Grant Date Fair Value (in dollars per share)
$ 13.87 
Unvested shares at March 31, 2013, Average Grant Date Fair Value (in dollars per share)
$ 13.03 
Contingencies Contingencies (Details) (USD $)
12 Months Ended 3 Months Ended
Nov. 30, 2011
Dec. 31, 2011
General and Administrative Expense [Member]
Environmental Issue [Member]
Pending Litigation [Member]
New Idria Mercury Mine [Member]
Mar. 31, 2013
Other Liabilities [Member]
Environmental Issue [Member]
Pending Litigation [Member]
New Idria Mercury Mine [Member]
Loss Contingencies [Line Items]
 
 
 
Expense related to remedial investigation and feasibility study
 
$ 1,900,000 
 
Payments charged against the reserve
 
 
400,000 
Estimate of EPA's interim removal project costs
$ 500,000 
 
 
Debt Schedule of Long-Term Debt (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 103,578 
$ 92,814 
Credit agreement
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
68,578 
57,814 
Senior notes
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 35,000 
$ 35,000 
Debt (Details) (USD $)
1 Months Ended
Mar. 31, 2013
Credit agreement
Dec. 31, 2010
Credit agreement
Dec. 31, 2003
Revolving Credit Facility and Senior Notes
Dec. 31, 2003
Revolving Credit Facility and Senior Notes
6.08% Senior Unsecured Notes
Dec. 31, 2003
Revolving Credit Facility and Senior Notes
6.81% Senior Unsecured Notes
Debt Instrument [Line Items]
 
 
 
 
 
Maximum borrowing capacity on line of credit
 
$ 180,000,000 
 
 
 
Re