MYERS INDUSTRIES INC, 10-Q filed on 10/29/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2013
Oct. 24, 2013
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
MYERS INDUSTRIES INC 
 
Entity Central Index Key
0000069488 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
33,867,232 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income Statement [Abstract]
 
 
 
 
Net sales
$ 194,920 
$ 197,290 
$ 613,924 
$ 577,180 
Cost of sales
141,281 
144,561 
446,198 
419,089 
Gross profit
53,639 
52,729 
167,726 
158,091 
Selling, general and administrative expenses
41,564 
42,957 
129,288 
121,210 
Operating income
12,075 
9,772 
38,438 
36,881 
Interest expense, net
1,112 
1,194 
3,320 
3,328 
Income before income taxes
10,963 
8,578 
35,118 
33,553 
Income tax expense
4,475 
2,782 
12,435 
12,112 
Net income
$ 6,488 
$ 5,796 
$ 22,683 
$ 21,441 
Income per common share:
 
 
 
 
Basic (in dollars per share)
$ 0.19 
$ 0.17 
$ 0.68 
$ 0.64 
Diluted (in dollars per share)
$ 0.19 
$ 0.17 
$ 0.67 
$ 0.63 
Dividends declared per share (in dollars per share)
$ 0.09 
$ 0.08 
$ 0.27 
$ 0.24 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Net income
$ 6,488 
$ 5,796 
$ 22,683 
$ 21,441 
Other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustment
255 
2,926 
(5,590)
3,699 
Pension liability
(75)
632 
Total other comprehensive income (loss), net of tax
255 
2,926 
(5,665)
4,331 
Comprehensive income
$ 6,743 
$ 8,722 
$ 17,018 
$ 25,772 
Condensed Consolidated Statements of Financial Position (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current Assets
 
 
Cash
$ 7,004 
$ 3,948 
Accounts receivable-less allowances of $3,267 and $3,255, respectively
108,279 
115,508 
Inventories
 
 
Finished and in-process products
83,584 
72,899 
Raw materials and supplies
34,336 
34,603 
Inventory net
117,920 
107,502 
Prepaid expenses
9,380 
9,033 
Deferred income taxes
2,184 
3,605 
Total Current Assets
244,767 
239,596 
Other Assets
 
 
Goodwill
61,223 
61,056 
Patents and other intangible assets
22,584 
25,839 
Other
3,085 
7,882 
Total other non current assets
86,892 
94,777 
Property, Plant and Equipment, at Cost
 
 
Land
4,895 
4,438 
Buildings and leasehold improvements
63,464 
57,058 
Machinery and equipment
457,837 
445,789 
Property, Plant and Equipment, at cost
526,196 
507,285 
Less allowances for depreciation and amortization
(378,451)
(356,802)
Property, plant and equipment, net
147,745 
150,483 
Total Assets
479,404 
484,856 
Current Liabilities
 
 
Accounts payable
69,578 
72,417 
Accrued expenses
 
 
Employee compensation
19,997 
18,885 
Income taxes
150 
1,090 
Taxes, other than income taxes
2,727 
2,606 
Accrued interest
835 
240 
Other
20,915 
19,239 
Total Current Liabilities
114,202 
114,477 
Long-term debt
75,490 
92,814 
Other liabilities
17,537 
17,865 
Deferred income taxes
31,920 
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 33,721,350 and 33,480,189; net of treasury shares of 4,086,782 and 4,356,160, respectively)
20,404 
20,316 
Additional paid-in capital
268,652 
266,419 
Accumulated other comprehensive income
4,978 
10,643 
Retained deficit
(53,779)
(67,356)
Total Shareholders' Equity
240,255 
230,022 
Total Liabilities and Shareholders' Equity
$ 479,404 
$ 484,856 
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current Assets
 
 
Allowances for accounts receivable
$ 3,267 
$ 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)
33,721,350 
33,480,189 
Common shares, treasury (in shares)
4,086,782 
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)
Beginning balance at Dec. 31, 2012
$ 230,022 
$ 20,316 
$ 266,419 
$ 10,643 
$ (67,356)
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income
22,683 
22,683 
Other comprehensive income (loss)
 
(5,665)
Shares withheld for employee taxes on equity awards
 
(684)
Purchases for treasury
 
(221)
(5,050)
Common stock issued
 
301 
5,464 
Stock based compensation
 
2,142 
Stock contribution
 
194 
Tax benefit from options
 
167 
Dividends declared - $.27 per share
 
(9,106)
Ending balance at Sep. 30, 2013
$ 240,255 
$ 20,404 
$ 268,652 
$ 4,978 
$ (53,779)
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Statement of Stockholders' Equity [Abstract]
 
 
 
 
Dividends declared per share (in dollars per share)
$ 0.09 
$ 0.08 
$ 0.27 
$ 0.24 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash Flows from Operating Activities
 
 
Net income
$ 22,683 
$ 21,441 
Items not affecting use of cash:
 
 
Depreciation
25,661 
22,287 
Amortization of intangible assets
2,953 
2,331 
Non-cash stock compensation
2,142 
2,134 
Payments for long-term incentive compensation
(333)
Provision for (recovery of) loss on accounts receivable
698 
(1,019)
Deferred taxes
4,069 
428 
Other long-term liabilities
38 
2,037 
Loss (gain) from asset disposition
584 
(628)
Other
202 
50 
Cash flows provided by (used for) working capital, net of acquisitions:
 
 
Accounts receivable
3,908 
664 
Inventories
(12,443)
(18,611)
Prepaid expenses
(1,509)
(2,563)
Accounts payable and accrued expenses
(2,143)
(4,877)
Net cash provided by operating activities
46,843 
23,341 
Cash Flows from Investing Activities
 
 
Capital expenditures
(20,003)
(15,236)
Acquisition of business, net of cash acquired
(600)
(3,430)
Proceeds from sale of property, plant and equipment
928 
1,975 
Other
(64)
100 
Net cash used for investing activities
(19,739)
(16,591)
Cash Flows from Financing Activities
 
 
Repayment of long-term debt
(26,333)
Net (repayments of) borrowing on credit facility
(17,324)
20,410 
Cash dividends paid
(6,046)
(7,642)
Proceeds from issuance of common stock
5,765 
3,026 
Tax benefit from options
167 
Repurchase of common stock
(5,955)
Net cash used for financing activities
(23,393)
(10,539)
Foreign exchange rate effect on cash
(655)
3,456 
Net increase (decrease) in cash
3,056 
(333)
Cash, Beginning balance
3,948 
6,801 
Cash, Ending balance
$ 7,004 
 
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 September 30, 2013, and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 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). The Company 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 $35.9 million and $36.5 million at September 30, 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 September 30, 2013 and September 30, 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

Other comprehensive income before reclassifications
(612
)
 

 
(612
)
Balance at June 30, 2012
$
10,767

 
$
(2,068
)
 
$
8,699

Other comprehensive income before reclassifications
2,926

 

 
2,926

Balance at September 30, 2012
$
13,693

 
$
(2,068
)
 
$
11,625

 
 
 
 
 
 
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

Other comprehensive income before reclassifications
(4,994
)
 

 
(4,994
)
Balance at June 30, 2013
$
6,939

 
$
(2,216
)
 
$
4,723

Other comprehensive income before reclassifications
255

 

 
255

Balance at September 30, 2013
$
7,194

 
$
(2,216
)
 
$
4,978


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 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 September 30, 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 $30.9 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 annual results of Novel exceeding predefined earnings before interest, taxes, depreciation and amortization over the following 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 for the nine months ended September 30, 2012 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.
Net sales
$
608,239

Cost of sales
440,999

Gross profit
167,240

Selling, general & administrative expenses
127,007

Operating income
40,233

Interest expense, net
6,287

Income before taxes
33,946

Income taxes
12,261

Net income
$
21,685

 
 
Income per basic share
$
0.65

Income per diluted share
$
0.63


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
Current assets, excluding cash acquired
$
11,884

 
$
5,019

Property, plant & equipment
13,636

 
2,559

Other long-term assets
6,944

 
5,711

Assets acquired, less cash
$
32,464

 
$
13,289


 
 
 
Current liabilities
$
6,742

 
$
2,112

Debt
26,028

 

Long-term liabilities
6,097

 
3,498

Liabilities assumed
38,867

 
5,610

Goodwill
9,832

 
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 nine months ended September 30, 2013 was as follows:

Balance at January 1, 2013
 
$
61,056

Reclassification of prepaid asset from Novel acquisition
 
1,028

Foreign currency translation
 
(861
)
Balance at September 30, 2013
 
$
61,223

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
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Weighted average common shares outstanding
 
 
 
 
 
 
 
Basic
33,670,639

 
33,746,824

 
33,574,801

 
33,592,984

Dilutive effect of stock options and restricted stock
538,170

 
664,830

 
416,220

 
663,469

Weighted average common shares outstanding diluted
34,208,809

 
34,411,654

 
33,991,021

 
34,256,453


Options to purchase 123,900 shares of common stock that were outstanding for the nine month period ended September 30, 2013 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 on diluted earnings per share would be anti-dilutive. Options to purchase 212,000 shares of common stock that were outstanding for both the three month period and nine month period ended September 30, 2012 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 on diluted earnings per share 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
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Interest paid
$
1,658

 
$
491

 
$
2,629

 
$
2,399

Income taxes paid
$
2,354

 
$
3,183

 
$
9,776

 
$
16,465

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. In our Distribution Segment, as well as Corporate, restructuring costs were recorded in SG&A, while in our Engineered Products Segment restructuring expenses were recorded in cost of sales. Our Material Handling Segment and Lawn and Garden Segment restructuring costs were recorded in both SG&A and cost of sales. The restructuring charges by segment are presented in the following table.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Segment
2013
 
2012
 
2013
 
2012
Material Handling
$

 
$

 
$
225

 
$

Lawn and Garden
993

 
19

 
2,132

 
461

Distribution
25

 
165

 
117

 
595

Engineered Products

 
849

 
3

 
1,050

Corporate

 

 
17

 

Total
$
1,018

 
$
1,033

 
$
2,494

 
$
2,106



The Company recorded restructuring expenses of $0.4 million in SG&A and $0.6 million in cost of sales for the three months ended September 30, 2013. The Company recorded total restructuring expenses of $0.2 million in SG&A and $0.8 million in cost of sales for the three months ended September 30, 2012.

The Company recorded total restructuring expenses of $1.4 million in SG&A and $1.1 million in cost of sales for the nine months ended September 30, 2013. The Company recorded total restructuring expenses of $1.2 million in SG&A and $1.0 million in cost of sales for the nine months ended September 30, 2012. A gain of $0.4 million on the sale of four facilities was also recorded in Distribution Segments SG&A for the nine months ended September 30, 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
783

 
1,323

 
2,106

Less: Payments
(783
)
 
(728
)
 
(1,511
)
Balance at September 30, 2012
$

 
$
1,200

 
$
1,200

 
 
 
 
 
 
Balance at January 1, 2013
$
318

 
$

 
$
318

Provision
597

 
1,897

 
2,494

Less: Payments
(915
)
 
(1,897
)
 
(2,812
)
Balance at September 30, 2013
$

 
$

 
$



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 charge is expected to approximate $15.0 million, of which $3.0 million is expected to be noncash costs. These actions are expected to improve annual operating profit by approximately $8.0 million. The majority of the benefits are planned to be realized throughout 2014 in decreased labor, overhead, plant and freight costs. For the three months ended September 30, 2013, the Company incurred restructuring costs of $1.0 million for severance, consulting, moving and relocation costs.

The Lawn and Garden Segment restructuring plan also included reopening a manufacturing plant in Sparks, Nevada in order to lower the Company's costs to serve the West Coast market and position the segment for future growth. As of July 2013, the facility was no longer actively marketed for sale and was reclassified from held for sale to property, plant, and equipment in the Condensed Consolidated Statements of Financial Position. Depreciation expense recapture of $1.3 million for this facility was recorded in the third quarter 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, 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 $0.8 million and $0.6 million, for the three months ended September 30, 2013 and 2012, respectively. Stock compensation expense reduced income before taxes approximately $2.3 million and $2.1 million, for the nine months ended September 30, 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 September 30, 2013 was approximately $4.1 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 September 30, 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
(500,971
)
 
11.34

 
 
Cancelled or forfeited
(161,678
)
 
13.89

 
 
Outstanding at September 30, 2013
1,579,772

 
$
12.14

 
6.23 years
Exercisable at September 30, 2013
1,060,794

 
$
11.48

 
4.97 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 September 30, 2013 and 2012 was approximately $1.2 million and $0.1 million, respectively. The total intrinsic value of all stock options exercised during the nine months ended September 30, 2013 and 2012 was approximately $2.6 million and, $1.5 million, respectively.
On March 1, 2013, 169,100 Restricted Stock Unit ("RSU") Awards were granted with a two or three year vesting period. The RSUs 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 nine months ended September 30, 2013:
 
Awards
 
Average Grant-Date Fair Value
Unvested at January 1, 2013
363,125

 
 
Granted
169,100

 
$
14.77

Released
(112,000
)
 
10.02

Cancelled or forfeited
(126,600
)
 
13.89

Unvested at September 30, 2013
293,625

 
$
13.10



Restricted stock units 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 September 30, 2013, restricted stock awards had vesting periods up through March 2016.
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 at the site and 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 site and 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 $0.5 million have been charged against the reserve classified in Other Liabilities on the Condensed Consolidated Statements of Financial Position as of September 30, 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, the Company records 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 the Company's financial position or overall trends in the Company's 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
Long-Term Debt
Long-term debt consisted of the following:
 
 
September 30,
 
December 31,
 
2013
 
2012
Credit agreement
$
40,490

 
$
57,814

Senior notes
35,000

 
35,000

 
$
75,490

 
$
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 September 30, 2013, the Company had $134.6 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 September 30, 2013, the Company has classified the $35 million of Senior Notes due in December 2013 as a long-term liability since the intent of our recently completed private placement of notes totaling $100 million will be used to repay the Notes.

Subsequent Event
On October 22, 2013, the Company entered into a note purchase agreement for the private placement of notes totaling $100 million with a group of institutional investors. The proceeds will be used to grow key businesses and to repay existing debt. The four series of notes will range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45% that will expire between 2021 and 2026. The average interest rate on this new debt is 5.07% compared to the current rate of 6.81% on the $35 million which will be paid off in December 2013. Also on October 22, 2013, our Credit Agreement was amended to reflect  reference to the private placement of notes.
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
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Service cost
$
7

 
$
18

 
$
23

 
$
53

Interest cost
64

 
72

 
194

 
216

Expected return on assets
(91
)
 
(77
)
 
(273
)
 
(230
)
Amortization of actuarial net loss
28

 
25

 
84

 
75

Net periodic pension cost
$
8

 
$
38

 
$
28

 
$
114

Company contributions
$
81

 
$
339

 
$
284

 
$
538



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 September 30, 2013 and September 30, 2012, was $1.2 million and $0.3 million, respectively. The $0.9 million increase in the gross unrecognized tax benefits from September 30, 2012 to September 30, 2013 resulted from an increase in income tax 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 $0.1 million at both September 30, 2013 and December 31, 2012.

As of September 30, 2013, the Company and its significant subsidiaries are subject to examination for the years after 2007 in Brazil and 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
September 30,
 
Nine Months Ended
September 30,
Net Sales
2013
 
2012
 
2013
 
2012
Material Handling
$
75,965

 
$
76,151

 
$
239,768

 
$
201,632

Lawn and Garden
44,905

 
45,341

 
146,157

 
147,008

Distribution
45,006

 
45,065

 
133,548

 
131,991

Engineered Products
33,839

 
35,709

 
108,403

 
111,578

Inter-company Sales
(4,795
)
 
(4,976
)
 
(13,952
)
 
(15,029
)
Net Sales
$
194,920

 
$
197,290

 
$
613,924

 
$
577,180


 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Income Before Income Taxes
2013
 
2012
 
2013
 
2012
Material Handling
$
10,679

 
$
12,530

 
$
31,394

 
$
34,903

Lawn and Garden
93

 
41

 
2,265

 
(683
)
Distribution
4,290

 
3,343

 
10,993

 
11,152

Engineered Products
3,502

 
2,921

 
13,713

 
12,172

Corporate
(6,489
)
 
(9,063
)
 
(19,927
)
 
(20,663
)
Interest expense - net
(1,112
)
 
(1,194
)
 
(3,320
)
 
(3,328
)
Income before income taxes
$
10,963

 
$
8,578

 
$
35,118

 
$
33,553

Other Current Accrued Expenses (Notes)
Other current accrued expenses
Other Current Accrued Expenses
Included within Accrued expenses - Other on the Condensed Consolidated Statements of Financial Position as of September 30, 2013, and December 31, 2012 are deposits and amounts due to customers of $10.6 million and $10.7 million, dividends payable of $3.2 million and $0.2 million, and other accruals of $7.1 million and $8.3 million, respectively.
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). The Company 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 $35.9 million and $36.5 million at September 30, 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 September 30, 2013 and September 30, 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

Other comprehensive income before reclassifications
(612
)
 

 
(612
)
Balance at June 30, 2012
$
10,767

 
$
(2,068
)
 
$
8,699

Other comprehensive income before reclassifications
2,926

 

 
2,926

Balance at September 30, 2012
$
13,693

 
$
(2,068
)
 
$
11,625

 
 
 
 
 
 
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

Other comprehensive income before reclassifications
(4,994
)
 

 
(4,994
)
Balance at June 30, 2013
$
6,939

 
$
(2,216
)
 
$
4,723

Other comprehensive income before reclassifications
255

 

 
255

Balance at September 30, 2013
$
7,194

 
$
(2,216
)
 
$
4,978

Acquisitions Acquisition Purchase Price Allocation (Tables)
The following unaudited pro forma information for the nine months ended September 30, 2012 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.
Net sales
$
608,239

Cost of sales
440,999

Gross profit
167,240

Selling, general & administrative expenses
127,007

Operating income
40,233

Interest expense, net
6,287

Income before taxes
33,946

Income taxes
12,261

Net income
$
21,685

 
 
Income per basic share
$
0.65

Income per diluted share
$
0.63

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
Current assets, excluding cash acquired
$
11,884

 
$
5,019

Property, plant & equipment
13,636

 
2,559

Other long-term assets
6,944

 
5,711

Assets acquired, less cash
$
32,464

 
$
13,289


 
 
 
Current liabilities
$
6,742

 
$
2,112

Debt
26,028

 

Long-term liabilities
6,097

 
3,498

Liabilities assumed
38,867

 
5,610

Goodwill
9,832

 
7,435

Total consideration, less cash acquired
$
3,429

 
$
15,114

Goodwill (Tables)
The change in goodwill
The change in goodwill for the nine months ended September 30, 2013 was as follows:

Balance at January 1, 2013
 
$
61,056

Reclassification of prepaid asset from Novel acquisition
 
1,028

Foreign currency translation
 
(861
)
Balance at September 30, 2013
 
$
61,223

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
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Weighted average common shares outstanding
 
 
 
 
 
 
 
Basic
33,670,639

 
33,746,824

 
33,574,801

 
33,592,984

Dilutive effect of stock options and restricted stock
538,170

 
664,830

 
416,220

 
663,469

Weighted average common shares outstanding diluted
34,208,809

 
34,411,654

 
33,991,021

 
34,256,453

Supplemental Disclosure of Cash Flow Information (Tables)
Supplemental Disclosure of Cash Flow Information
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Interest paid
$
1,658

 
$
491

 
$
2,629

 
$
2,399

Income taxes paid
$
2,354

 
$
3,183

 
$
9,776

 
$
16,465

Restructuring (Tables)
The restructuring charges by segment are presented in the following table.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Segment
2013
 
2012
 
2013
 
2012
Material Handling
$

 
$

 
$
225

 
$

Lawn and Garden
993

 
19

 
2,132

 
461

Distribution
25

 
165

 
117

 
595

Engineered Products

 
849

 
3

 
1,050

Corporate

 

 
17

 

Total
$
1,018

 
$
1,033

 
$
2,494

 
$
2,106

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
783

 
1,323

 
2,106

Less: Payments
(783
)
 
(728
)
 
(1,511
)
Balance at September 30, 2012
$

 
$
1,200

 
$
1,200

 
 
 
 
 
 
Balance at January 1, 2013
$
318

 
$

 
$
318

Provision
597

 
1,897

 
2,494

Less: Payments
(915
)
 
(1,897
)
 
(2,812
)
Balance at September 30, 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 September 30, 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
(500,971
)
 
11.34

 
 
Cancelled or forfeited
(161,678
)
 
13.89

 
 
Outstanding at September 30, 2013
1,579,772

 
$
12.14

 
6.23 years
Exercisable at September 30, 2013
1,060,794

 
$
11.48

 
4.97 years
The following table provides a summary of RSU and restricted stock activity for the nine months ended September 30, 2013:
 
Awards
 
Average Grant-Date Fair Value
Unvested at January 1, 2013
363,125

 
 
Granted
169,100

 
$
14.77

Released
(112,000
)
 
10.02

Cancelled or forfeited
(126,600
)
 
13.89

Unvested at September 30, 2013
293,625

 
$
13.10

Debt (Tables)
Schedule of Long-term Debt Instruments
Long-term debt consisted of the following:
 
 
September 30,
 
December 31,
 
2013
 
2012
Credit agreement
$
40,490

 
$
57,814

Senior notes
35,000

 
35,000

 
$
75,490

 
$
92,814

Retirement Plans (Tables)
Net periodic pension cost
Net periodic pension cost are as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Service cost
$
7

 
$
18

 
$
23

 
$
53

Interest cost
64

 
72

 
194

 
216

Expected return on assets
(91
)
 
(77
)
 
(273
)
 
(230
)
Amortization of actuarial net loss
28

 
25

 
84

 
75

Net periodic pension cost
$
8

 
$
38

 
$
28

 
$
114

Company contributions
$
81

 
$
339

 
$
284

 
$
538

Segment Information (Tables)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Net Sales
2013
 
2012
 
2013
 
2012
Material Handling
$
75,965

 
$
76,151

 
$
239,768

 
$
201,632

Lawn and Garden
44,905

 
45,341

 
146,157

 
147,008

Distribution
45,006

 
45,065

 
133,548

 
131,991

Engineered Products
33,839

 
35,709

 
108,403

 
111,578

Inter-company Sales
(4,795
)
 
(4,976
)
 
(13,952
)
 
(15,029
)
Net Sales
$
194,920

 
$
197,290

 
$
613,924

 
$
577,180


 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Income Before Income Taxes
2013
 
2012
 
2013
 
2012
Material Handling
$
10,679

 
$
12,530

 
$
31,394

 
$
34,903

Lawn and Garden
93

 
41

 
2,265

 
(683
)
Distribution
4,290

 
3,343

 
10,993

 
11,152

Engineered Products
3,502

 
2,921

 
13,713

 
12,172

Corporate
(6,489
)
 
(9,063
)
 
(19,927
)
 
(20,663
)
Interest expense - net
(1,112
)
 
(1,194
)
 
(3,320
)
 
(3,328
)
Income before income taxes
$
10,963

 
$
8,578

 
$
35,118

 
$
33,553

Statement of Accounting Policy (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Jun. 30, 2013
Foreign Currency
Mar. 31, 2013
Foreign Currency
Jun. 30, 2012
Foreign Currency
Mar. 31, 2012
Foreign Currency
Sep. 30, 2013
Foreign Currency
Sep. 30, 2012
Foreign Currency
Jun. 30, 2013
Defined Benefit Pension Plans
Mar. 31, 2013
Defined Benefit Pension Plans
Jun. 30, 2012
Defined Benefit Pension Plans
Mar. 31, 2012
Defined Benefit Pension Plans
Sep. 30, 2013
Defined Benefit Pension Plans
Sep. 30, 2012
Defined Benefit Pension Plans
Jun. 30, 2013
Accumulative Other Comprehensive Income
Mar. 31, 2013
Accumulative Other Comprehensive Income
Jun. 30, 2012
Accumulative Other Comprehensive Income
Mar. 31, 2012
Accumulative Other Comprehensive Income
Sep. 30, 2013
Accumulative Other Comprehensive Income
Sep. 30, 2012
Accumulative Other Comprehensive Income
Sep. 30, 2013
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Senior notes
Sep. 30, 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 
$ 35,900,000 
$ 36,500,000 
Accumlated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
10,643,000 
 
11,933,000 
12,784,000 
11,379,000 
9,994,000 
7,194,000 
13,693,000 
(2,216,000)
(2,141,000)
(2,068,000)
(2,700,000)
(2,216,000)
(2,068,000)
9,717,000 
10,643,000 
9,311,000 
7,294,000 
4,978,000 
11,625,000 
 
 
 
Other comprehensive income before reclassifications
 
 
 
 
(4,994,000)
(851,000)
(612,000)
1,385,000 
 
 
 
 
(4,994,000)
(851,000)
(612,000)
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
255,000 
2,926,000 
(5,665,000)
4,331,000 
 
(851,000)
 
1,385,000 
 
 
 
(75,000)
 
632,000 
 
 
 
(926,000)
 
2,017,000 
 
 
 
 
 
Ending balance
$ 4,978,000 
 
$ 4,978,000 
 
$ 6,939,000 
$ 11,933,000 
$ 10,767,000 
$ 11,379,000 
$ 7,194,000 
$ 13,693,000 
$ (2,216,000)
$ (2,216,000)
$ (2,068,000)
$ (2,068,000)
$ (2,216,000)
$ (2,068,000)
$ 4,723,000 
$ 9,717,000 
$ 8,699,000 
$ 9,311,000 
$ 4,978,000 
$ 11,625,000 
 
 
 
Inventories (Details)
Sep. 30, 2013
Inventory Disclosure [Abstract]
 
Percentage of LIFO Inventory
20.00% 
Acquisitions (Details) (USD $)
9 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Developed Technology Rights [Member]
Sep. 30, 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. 3, 2012
Palsticos Novel S.A. [Member]
Jul. 3, 2012
Palsticos Novel S.A. [Member]
Developed Technology Rights [Member]
Jul. 3, 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. 3, 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 
 
 
 
 
 
$ 30,900,000 
 
 
 
 
 
 
 
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
600,000 
3,430,000 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,800,000 
$ 2,400,000 
 
 
 
 
 
Acquisitions Pro Forma (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Business Acquisition [Line Items]
 
Net sales
$ 608,239 
Cost of sales
440,999 
Gross profit
167,240 
Selling, general & administrative expenses
127,007 
Operating income
40,233 
Interest expense, net
6,287 
Income before taxes
33,946 
Income taxes
12,261 
Net income
$ 21,685 
Income per basic share
$ 0.65 
Income per diluted share
$ 0.63 
Acquisitions Allocation of Purchase Price (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Jul. 3, 2012
Palsticos Novel S.A. [Member]
Oct. 2, 2012
Jamco [Member]
Assets acquired:
 
 
 
 
Current assets, excluding cash acquired
 
 
$ 11,884 
$ 5,019 
Property, plant & equipment
 
 
13,636 
2,559 
Other long-term assets
 
 
6,944 
5,711 
Assets acquired, less cash
 
 
32,464 
13,289 
Liabilities assumed:
 
 
 
 
Current liabilities
 
 
6,742 
2,112 
Debt
 
 
26,028 
Long-term liabilities
 
 
6,097 
3,498 
Liabilities assumed
 
 
38,867