MYERS INDUSTRIES INC, 10-Q filed on 10/30/2012
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Oct. 25, 2012
Document Information [Line Items]
 
 
Entity Registrant Name
MYERS INDUSTRIES INC 
 
Entity Central Index Key
0000069488 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2012 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q3 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
33,754,516 
Condensed Consolidated Statements of Income and Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Net sales
$ 197,290 
$ 190,332 
$ 577,180 
$ 563,105 
Cost of sales
144,561 
142,543 
419,089 
416,732 
Gross profit
52,729 
47,789 
158,091 
146,373 
Selling, general and administrative expenses
42,957 
40,530 
121,210 
118,072 
Operating income
9,772 
7,259 
36,881 
28,301 
Interest expense, net
1,194 
1,264 
3,328 
3,655 
Income before income taxes
8,578 
5,995 
33,553 
24,646 
Income tax expense
2,782 
(1,219)
12,112 
6,055 
Net income
5,796 
7,214 
21,441 
18,591 
Comprehensive income
$ 8,722 
$ 1,037 
$ 25,772 
$ 15,048 
Income per common share:
 
 
 
 
Basic (in dollars per share)
$ 0.17 
$ 0.21 
$ 0.64 
$ 0.53 
Diluted (in dollars per share)
$ 0.17 
$ 0.21 
$ 0.63 
$ 0.53 
Dividends declared per share (in dollars per share)
$ 0.08 
$ 0.07 
$ 0.24 
$ 0.21 
Condensed Consolidated Statements of Financial Position (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Current Assets
 
 
Cash
$ 6,468 
$ 6,801 
Accounts receivable-less allowances of $2,913 and $3,863, respectively
111,967 
105,830 
Inventories
 
 
Finished and in-process products
82,084 
67,721 
Raw materials and supplies
38,388 
27,496 
Inventory net
120,472 
95,217 
Prepaid expenses
9,443 
5,415 
Deferred income taxes
5,371 
5,189 
Total Current Assets
253,721 
218,452 
Other Assets
 
 
Goodwill
53,645 
44,666 
Patents and other intangible assets
21,366 
17,267 
Other
7,689 
7,438 
Total other non current assets
82,700 
69,371 
Property, Plant and Equipment, at Cost
 
 
Land
4,528 
4,540 
Buildings and leasehold improvements
57,738 
58,299 
Machinery and equipment
434,380 
412,704 
Property, Plant and Equipment, at cost
496,646 
475,543 
Less allowances for depreciation and amortization
(350,942)
(334,609)
Property, plant and equipment, net
145,704 
140,934 
Total Assets
482,125 
428,757 
Current Liabilities
 
 
Accounts payable
68,313 
64,717 
Accrued expenses
 
 
Employee compensation
17,911 
20,566 
Income taxes
62 
3,379 
Taxes, other than income taxes
5,978 
2,729 
Accrued interest
770 
161 
Other
19,205 
18,799 
Current portion of long-term debt
305 
305 
Total Current Liabilities
112,544 
110,656 
Long-term debt, less current portion
96,380 
73,725 
Other liabilities
16,041 
14,343 
Deferred income taxes
28,070 
23,893 
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 33,752,703 and 33,420,488; net of treasury shares of 4,067,754 and 4,492,169 respectively)
20,483 
20,312 
Additional paid-in capital
270,039 
265,000 
Accumulated other comprehensive income
11,625 
7,294 
Retained deficit
(73,057)
(86,466)
Total Shareholder's Equity
229,090 
206,140 
Total Liabilities and Shareholder's Equity
$ 482,125 
$ 428,757 
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Current Assets
 
 
Allowances for accounts receivable
$ 2,913 
$ 3,863 
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)
33,752,703 
33,420,488 
Common shares, treasury (in shares)
4,067,754 
4,492,169 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash Flows From Operating Activities
 
 
Net income
$ 21,441 
$ 18,591 
Adjustments to reconcile net income to net cash provided by operating activities
 
 
Depreciation
22,287 
24,102 
Impairment charges and asset write-offs
814 
Amortization of intangible assets
2,331 
2,210 
Non-cash stock compensation
2,134 
2,151 
Payments for long-term incentive compensation
(333)
(Recovery of) provision for loss on accounts receivable
(1,019)
1,179 
Deferred taxes
428 
635 
Other long-term liabilities
2,037 
3,015 
Gain on sale of property, plant and equipment
(628)
(591)
Other
50 
50 
Cash flow provided by (used for) working capital:
 
 
Accounts receivable
664 
(5,024)
Inventories
(18,611)
(8,759)
Prepaid expenses
(2,563)
2,294 
Accounts payable and accrued expenses
(4,877)
(422)
Net cash provided by operating activities
23,341 
40,245 
Cash Flows From Investing Activities
 
 
Additions to property, plant and equipment
(15,236)
(13,337)
Acquisition of business, net of cash acquired
3,430 
1,100 
Proceeds from sale of property, plant and equipment
1,975 
1,082 
Other
100 
(92)
Net cash used for investing activities
(16,591)
(13,447)
Cash Flows From Financing Activities
 
 
Repayment of long term debt
(26,333)
(305)
Net borrowing on credit facility
20,410 
(2,907)
Cash dividends paid
(7,642)
(7,163)
Proceeds from issuance of common stock
3,026 
173 
Repurchase of common stock
(18,821)
Net cash provided by (used for) financing activities
(10,539)
(29,023)
Foreign Exchange Rate Effect on Cash
3,456 
371 
Net increase in cash
(333)
(1,854)
Cash at January 1
6,801 
4,705 
Cash at September 30
$ 6,468 
$ 2,851 
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 Dec. 31, 2011
$ 206,140 
$ 20,312 
$ 265,000 
$ 7,294 
$ (86,466)
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income
21,441 
   
   
   
21,441 
Other comprehensive income
 
   
   
4,331 
   
Common stock issued
 
169 
2,857 
   
   
Stock based compensation
 
   
2,134 
   
   
Stock contribution
 
48 
   
   
Dividends declared - $.24 per share
 
   
   
   
(8,032)
Balance at Sep. 30, 2012
$ 229,090 
$ 20,483 
$ 270,039 
$ 11,625 
$ (73,057)
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Statement of Stockholders' Equity [Abstract]
 
 
 
 
Dividends declared per share (in dollars per share)
$ 0.08 
$ 0.07 
$ 0.24 
$ 0.21 
Statement of Accounting Policy
Statement of Accounting Policy
Statement of Accounting Policy
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, 2012, 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, 2012 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2012.
Reclassification
Certain prior year amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year’s presentation.
Recent Accounting Pronouncements
In July 2012, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2012-02, Intangibles-Goodwill and Other (Topic 350) which simplifies the impairment test for indefinite-lived intangible assets other than goodwill. ASU No. 2012-02 gives the option to first assess qualitative factors to determine if it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative valuation test. ASU No. 2012-02 is effective for fiscal years and interim periods beginning on or after September 15, 2012. The Company conducts its annual impairment assessment as of October 1, which will include adoption of this guidance. The Company does not anticipate that this will have a significant impact on our financial position, results of operations or cash flows.
In June 2011, the  FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220) — Presentation of Comprehensive Income. ASU No. 2011-05 requires companies to present the components of net income and other comprehensive income either as one continuous statement or two separate but consecutive statements. The update eliminates the option to report other comprehensive income and its components in the statement of changes in equity. ASU No. 2011-05 was effective for fiscal years and interim periods beginning after December 15, 2011. The adoption of this guidance on January 1, 2012 did not have a material impact on the Company’s consolidated financial statements as this guidance modifies presentation of other comprehensive income already disclosed in the financial statements.
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 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 interest 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 $36.8 million at September 30, 2012 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 as of September 30, 2012 and September 30, 2011 are as follows:

 
 
 
 
 
Accumulated
 
 
 
Defined
 
other
 
Foreign
 
benefit
 
comprehensive
 
currency
 
pension plan
 
income
Balance at January 1, 2011
$
12,234

 
$
(2,070
)
 
$
10,164

Current-period other comprehensive income
1,810

 

 
1,810

Balance at March 31, 2011
$
14,044

 
$
(2,070
)
 
$
11,974

Current-period other comprehensive income
824

 

 
824

Balance at June 30, 2011
$
14,868

 
$
(2,070
)
 
$
12,798

Current-period other comprehensive income
(6,177
)
 

 
(6,177
)
Balance at September 30, 2011
$
8,691

 
$
(2,070
)
 
$
6,621

 
 
 
 
 
 
Balance at January 1, 2012
$
9,994

 
$
(2,700
)
 
$
7,294

Current-period other comprehensive income
1,385

 

 
1,385

Tax effect of pension liability from prior periods

 
632

 
632

Balance at March 31, 2012
$
11,379

 
$
(2,068
)
 
$
9,311

Current-period other comprehensive income
(612
)
 

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

 
$
(2,068
)
 
$
8,699

Current-period other comprehensive income
2,926

 

 
2,926

Balance at September 30, 2012
$
13,693

 
$
(2,068
)
 
$
11,625



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 are subject to change in the final year-end LIFO inventory valuation and were immaterial, no adjustment was recorded as of an interim period.
Acquisitions
Acquisitions
Acquisitions
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.
The operating results of the business acquired have been included in our Material Handling Segment since the date of acquisition. Had this acquisition occurred as of the beginning of the periods presented in these condensed consolidated financial statements, the pro-forma statements of income would not be materially different than the condensed consolidated statements presented. The preliminary allocation of the purchase price and the estimated non-deductible goodwill and other intangibles are as follows:     
Preliminary allocation of purchase price
 
(dollars in thousands)
 
Assets acquired:
 
Cash
$
630

 
 
Accounts receivable
$
5,467

Inventory
5,993

Property, plant and equipment
13,636

Intangibles
5,790

Deferred tax assets
435

Prepaid assets
1,451

Other
719

Assets acquired, less cash
$
33,491

 
 
Liabilities assumed:
 
Accounts payable and accruals
$
(3,134
)
Other taxes
(3,608
)
Other long-term liabilities
(2,293
)
Debt
(26,028
)
Deferred tax liabilities
(3,804
)
 
$
(38,866
)
Goodwill
8,805

Total consideration, less cash acquired
$
3,430


These 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 10 and 6 years, respectively. The Novel trade name has an indefinite life and will be subject to evaluation for impairment. The Company is awaiting final valuation studies to complete the purchase price allocation.
On October 1, 2012, the Company acquired 100% of the stock of Jamco Products Inc. ("Jamco"), an Illinois corporation for $15.0 million, subject to closing adjustments. Jamco is a leading designer and manufacturer of heavy-duty industrial steel carts and safety cabinets. The business will be included in the Material Handling Segment. The Company has just begun the purchase price allocation determination.
In July 2011, the Company acquired tooling assets and intellectual property for a new reusable plastic container used in producing, shipping and processing bulk natural cheese from Material Improvements L.P. The total purchase price was $5.7 million, comprised of a $1.1 million cash payment and $4.6 million contingent consideration, none of which has been paid as of September 30, 2012. The allocation of purchase price included $0.3 million of property, plant and equipment, amortizable intangible assets, which included $1.3 million in technology and $0.2 million for trade name, and $3.9 million in goodwill. These assets and liabilities incurred were recorded at estimated fair value as of the date of the acquisition using primarily level 3 inputs. The operating results of the business acquired have been included in our Material Handling Segment since the date of acquisition.
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.
In September 2011, the FASB issued ASU No. 2011-08, Intangibles - Goodwill and Other (Topic 350), effective for fiscal years beginning after December 15, 2011. The update gives companies the option to perform a qualitative assessment that may enable them to forgo the annual two-step test for impairment. ASU No. 2011-08 allows a qualitative assessment to first be performed to determine whether it is more likely than not that the fair value of a reporting units is less than its carrying value. If a company concludes that this is the case, it must perform the two-step test. Otherwise a company does not have to perform the two-step test. The ASU also includes a revised list of events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company conducts its annual impairment assessment as of October 1, which includes adoption of this guidance.
The change in goodwill for the nine months ended September 30, 2012 was as follows:

(In thousands)
Segment
Balance at January 1, 2012
 
Acquisitions
 
Foreign
Currency
Translation
 
Impairment
 
Balance at September 30, 2012
Distribution
$
214

 
$

 
$

 
$

 
$
214

Engineered Products
707

 

 

 

 
707

Material Handling
34,279

 
8,805

 
(24
)
 

 
43,060

Lawn and Garden
9,466

 

 
198

 

 
9,664

Total
$
44,666

 
$
8,805

 
$
174

 
$

 
$
53,645

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 and Comprehensive 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,
 
 
2012
 
2011
 
2012
 
2011
Weighted average common shares outstanding
 
 
 
 
 
 
 
Basic
33,746,824

 
34,354,210

 
33,592,984

 
34,938,806

Dilutive effect of stock options and restricted stock
664,830

 
106,742

 
663,469

 
89,607

Weighted average common shares outstanding diluted
34,411,654

 
34,460,952

 
34,256,453

 
35,028,413


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, 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. Options to purchase 692,810 and 1,159,679 shares of common stock that were outstanding for the three and nine months ended September 30, 2011, 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
September 30,
 
 
Nine Months Ended
September 30,
(In thousands)
2012
 
2011
 
2012
 
2011
Interest paid
$
491

 
$
441

 
$
2,399

 
$
2,498

Income taxes paid
$
3,183

 
$
1,576

 
$
16,465

 
$
7,855

Restructuring
Restructuring
Restructuring
During the nine months ended September 30, 2012 and 2011, the Company recorded total expenses of $2.2 million and $1.3 million, respectively, for costs associated with restructuring plans including impairment of property, plant and equipment, lease obligations, severance, consulting and other related charges. Gains on the sale of facilities were approximately $0.4 million and $0.5 million for the nine months ended September 30, 2012 and 2011, respectively. Estimated lease obligations associated with closed facilities were based on level 2 inputs.
In the three and nine months ended September 30, 2012, the Company recorded net expenses of $0.1 million and $0.8 million, respectively, in selling, general and administrative ("SG&A") expenses and $0.8 million and $1.0 million, respectively, in cost of goods sold for costs associated with restructuring plans including non-cancelable lease obligations, severance, consulting and other related charges.
In the three months ended September 30, 2012, restructuring costs included charges of $0.2 million in the Distribution Segment related to severance and consulting costs offset by a gain of $0.1 million on the sale of one facility. Restructuring charges of $0.8 million related to lease termination charges were recorded in the Engineered Products Segment.
In the nine months ended September 30, 2012, net restructuring costs of $0.3 million were recorded in the Distribution Segment. These costs were related to charges for severance of $0.4 million and consulting and other related charges of $0.3 million offset by a gain of $0.4 million on the sale of four facilities. In the Engineered Products Segment, restructuring charges of $1.0 million were recorded for the nine month period ended September 30, 2012 related to non-cancelable lease costs and termination charges. The Lawn and Garden Segment had $0.5 million of restructuring charges through the first nine months of 2012 for severance costs incurred.
In the three and nine months ended September 30, 2011, the Company recorded expenses of $(0.4) million and $1.3 million, respectively, related to restructuring activities. Restructuring costs in the three months ended September 30, 2011 included charges of $0.5 million in the Distribution Segment related to severance and non-cancelable lease costs offset by a gain of $0.5 million on the sale of a facility. In addition, $0.1 million of restructuring charges were recorded in the Engineered Products Segment. In the nine months ended September 30, 2011, net restructuring costs of $0.7 million in the Distribution Segment related to charges of $1.2 million offset by a gain of $0.5 million from a sale of a facility and a $0.3 million write-down for an idle Lawn and Garden manufacturing facility in the first quarter. In the Engineered Products Segment, restructuring charges of $0.3 million were recorded for the nine month period ended September 30, 2011 related to non-cancelable lease costs.
The amounts for severance and other exit costs associated with restructuring are included in Other Accrued expenses on the accompanying Condensed Consolidated Statements of Financial Position.

 
Severance and
Other
 
(Dollars in thousands)
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


As a result of restructuring activity including plant closures, approximately $5.7 million of property, plant, and equipment has been classified as held for sale at both September 30, 2012 and December 31, 2011, and is included in other assets in the Condensed Consolidated Statements of Financial Position. 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 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 $0.6 million and $0.5 million for the three months ended September 30, 2012 and 2011, respectively. Stock compensation expense reduced income before taxes approximately $2.1 million and $2.2 million for the nine month periods ended September 30, 2012 and 2011, respectively. These expenses are included in SG&A expenses in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited). Total unrecognized compensation cost related to non-vested share based compensation arrangements at September 30, 2012 was approximately $4.6 million which will be recognized over the next three years, as such compensation is earned.
On March 2, 2012, stock options for 323,950 shares were granted with a three year vesting period. The fair value of options granted is estimated using a binomial lattice option pricing model based on assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield rate is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole.

 
 
Model
 
Risk free interest rate
2.00
%
Expected dividend yield
2.20
%
Expected life of award (years)
5.4

Expected volatility
50.00
%
Fair value per option share
$
4.93


 
The following table provides a summary of stock option activity for the period ended September 30, 2012:

 
Shares
 
Average
Exercise
Price
 
Weighted
Average
Life
Outstanding at January 1, 2012
1,997,778

 
$
11.33

 
 
Options Granted
323,950

 
12.96

 
 
Options Exercised
(281,324
)
 
11.07

 
 
Cancelled or Forfeited
(25,199
)
 
11.05

 
 
Outstanding at September 30, 2012
2,015,205

 
$
11.61

 
6.59 years
Exercisable at September 30, 2012
1,363,466

 
$
11.62

 
 

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 nine months ended September 30, 2012 and 2011 was approximately $1.5 million and $16 thousand, respectively.
On March 2, 2012, 90,495 shares of restricted stock were granted with a three year vesting period. The restricted stock had a grant date fair value of $12.96 per share, which was the closing price of the common stock on the date of grant. On August 31, 2012, 75,000 restricted shares were granted at a fair value of $14.80 per share and vest on December 31, 2015.
The following table provides a summary of restricted stock activity for the nine months ended September 30, 2012:
 
Shares
 
Average Grant-Date Fair Value
Unvested shares at January 1, 2012
288,500

 
 
Granted
165,495

 
$
13.79

Vested
(40,500
)
 

Forfeited
(32,275
)
 
10.03

Unvested shares at September 30, 2012
381,220

 
$
11.01


The restricted stock awards are rights to receive shares of common stock, subject to forfeiture and other restrictions, which generally vest over a three to four 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 shares are valued based on the market price of the underlying shares on the grant date. At September 30, 2012, shares of restricted stock had vesting periods up through December 2015.
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.
Other
In October 2009, an employee was fatally wounded while performing maintenance at the Company’s manufacturing facility in Springfield, Missouri. On February 22, 2011, the family of the deceased filed a civil complaint against the manufacturer of the press involved in the incident and the Buckhorn Inc. employee involved in the incident. The Company has been brought into the lawsuit by the plaintiff as an additional defendant. The manufacturer of the press has filed a cross claim for indemnity against Buckhorn. At this time the Company is not able to determine whether this proceeding or the incident will result in legal exposure to the Company, or if any such liability that results would be material to the Company’s financial statements. The Company believes that it has adequate insurance to resolve any claims resulting from this incident.
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.
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 for the three and nine months ended September 30, 2012 and 2011, respectively, are as follows:

 
Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
Service cost
$
18

 
$
18

 
$
53

 
$
54

Interest cost
72

 
76

 
216

 
228

Expected return on assets
(77
)
 
(77
)
 
(230
)
 
(231
)
Amortization of actuarial net loss
25

 
16

 
75

 
48

Net periodic pension cost
$
38

 
$
33

 
$
114

 
$
99

Company contributions
$
339

 
$
116

 
$
538

 
$
268



The Company anticipates contributions totaling $661 thousand to its pension plan for the full year of 2012.

Effective January 1, 2012, the Company changed its profit sharing and 401(k) plan which includes an increase in the Company's matching contributions and the frequency of the Company's match. The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company's U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements.
Income Taxes
Income Taxes
Income Taxes
The total amount of gross unrecognized tax benefits that would reduce the Company's effective tax rates was $0.3 million at September 30, 2012 and $1.1 million at December 31, 2011. The amount of accrued interest expense included as a liability within the Company's Condensed Consolidated Statements of Financial Position was less than $0.1 million at September 30, 2012 and $0.1 million at December 31, 2011. In 2012, the Company recognized approximately $0.8 million of previously reserved tax benefits, based on the settlement of various state and federal tax issues. The tax benefit related to this recognition was reduced by tax expense of $0.6 million on pension liability previously recognized in other comprehensive income.
For the quarter ended September 30, 2011, the Company recognized net favorable income tax adjustments of approximately $3.8 million that were largely the result of reversing previously reserved tax benefits related to the loss on the sale of one of our subsidiaries in 2007 due to lapse of statute of limitations and other tax adjustments.
During the quarter ended September 30, 2012, the Company finalized its examination of Federal income tax returns for 2009 and 2010 in the United States but is currently under examination for 2007 and 2008 in Canada, as well as certain states. The Company does not expect any significant changes to its unrecognized tax benefits in the next 12 months.
As of September 30, 2012, the Company and its significant subsidiaries are subject to examination for the years after 2006 in Brazil, after 2006 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 starting after 2007 and in the remaining states 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
2012
 
2011
 
2012
 
2011
Material Handling
$
76,151

 
$
72,070

 
$
201,632

 
$
204,808

Lawn and Garden
45,341

 
45,839

 
147,008

 
154,812

Distribution
45,065

 
48,785

 
131,991

 
136,511

Engineered Products
35,709

 
29,360

 
111,578

 
85,182

Intra-segment elimination
(4,976
)
 
(5,722
)
 
(15,029
)
 
(18,208
)
Net Sales
$
197,290

 
$
190,332

 
$
577,180

 
$
563,105


 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Income Before Income Taxes
2012
 
2011
 
2012
 
2011
Material Handling
$
12,530

 
$
8,870

 
$
34,903

 
$
27,526

Lawn and Garden
41

 
(1,413
)
 
(683
)
 
846

Distribution
3,343

 
4,564

 
11,152

 
11,651

Engineered Products
2,921

 
3,001

 
12,172

 
8,381

Corporate
(9,063
)
 
(7,763
)
 
(20,663
)
 
(20,103
)
Interest expense-net
(1,194
)
 
(1,264
)
 
(3,328
)
 
(3,655
)
Income before income taxes
$
8,578

 
$
5,995

 
$
33,553

 
$
24,646

Statement of Accounting Policy Statement of Accounting Policy (Policies)
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 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.
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
The balances in the Company's accumulated other comprehensive income as of September 30, 2012 and September 30, 2011 are as follows:

 
 
 
 
 
Accumulated
 
 
 
Defined
 
other
 
Foreign
 
benefit
 
comprehensive
 
currency
 
pension plan
 
income
Balance at January 1, 2011
$
12,234

 
$
(2,070
)
 
$
10,164

Current-period other comprehensive income
1,810

 

 
1,810

Balance at March 31, 2011
$
14,044

 
$
(2,070
)
 
$
11,974

Current-period other comprehensive income
824

 

 
824

Balance at June 30, 2011
$
14,868

 
$
(2,070
)
 
$
12,798

Current-period other comprehensive income
(6,177
)
 

 
(6,177
)
Balance at September 30, 2011
$
8,691

 
$
(2,070
)
 
$
6,621

 
 
 
 
 
 
Balance at January 1, 2012
$
9,994

 
$
(2,700
)
 
$
7,294

Current-period other comprehensive income
1,385

 

 
1,385

Tax effect of pension liability from prior periods

 
632

 
632

Balance at March 31, 2012
$
11,379

 
$
(2,068
)
 
$
9,311

Current-period other comprehensive income
(612
)
 

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

 
$
(2,068
)
 
$
8,699

Current-period other comprehensive income
2,926

 

 
2,926

Balance at September 30, 2012
$
13,693

 
$
(2,068
)
 
$
11,625

Acquisitions Acquisition Purchase Price Allocation (Tables)
Business Combination, Separately Recognized Transactions [Table Text Block]
The preliminary allocation of the purchase price and the estimated non-deductible goodwill and other intangibles are as follows:     
Preliminary allocation of purchase price
 
(dollars in thousands)
 
Assets acquired:
 
Cash
$
630

 
 
Accounts receivable
$
5,467

Inventory
5,993

Property, plant and equipment
13,636

Intangibles
5,790

Deferred tax assets
435

Prepaid assets
1,451

Other
719

Assets acquired, less cash
$
33,491

 
 
Liabilities assumed:
 
Accounts payable and accruals
$
(3,134
)
Other taxes
(3,608
)
Other long-term liabilities
(2,293
)
Debt
(26,028
)
Deferred tax liabilities
(3,804
)
 
$
(38,866
)
Goodwill
8,805

Total consideration, less cash acquired
$
3,430

Goodwill (Tables)
The change in goodwill
The change in goodwill for the nine months ended September 30, 2012 was as follows:

(In thousands)
Segment
Balance at January 1, 2012
 
Acquisitions
 
Foreign
Currency
Translation
 
Impairment
 
Balance at September 30, 2012
Distribution
$
214

 
$

 
$

 
$

 
$
214

Engineered Products
707

 

 

 

 
707

Material Handling
34,279

 
8,805

 
(24
)
 

 
43,060

Lawn and Garden
9,466

 

 
198

 

 
9,664

Total
$
44,666

 
$
8,805

 
$
174

 
$

 
$
53,645

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 and Comprehensive 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,
 
 
2012
 
2011
 
2012
 
2011
Weighted average common shares outstanding
 
 
 
 
 
 
 
Basic
33,746,824

 
34,354,210

 
33,592,984

 
34,938,806

Dilutive effect of stock options and restricted stock
664,830

 
106,742

 
663,469

 
89,607

Weighted average common shares outstanding diluted
34,411,654

 
34,460,952

 
34,256,453

 
35,028,413

Supplemental Disclosure of Cash Flow Information (Tables)
Supplemental Disclosure of Cash Flow Information
 
Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
(In thousands)
2012
 
2011
 
2012
 
2011
Interest paid
$
491

 
$
441

 
$
2,399

 
$
2,498

Income taxes paid
$
3,183

 
$
1,576

 
$
16,465

 
$
7,855

Restructuring (Tables)
Restructuring Reserve
The amounts for severance and other exit costs associated with restructuring are included in Other Accrued expenses on the accompanying Condensed Consolidated Statements of Financial Position.

 
Severance and
Other
 
(Dollars in thousands)
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

Stock Compensation (Tables)
The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole.

 
 
Model
 
Risk free interest rate
2.00
%
Expected dividend yield
2.20
%
Expected life of award (years)
5.4

Expected volatility
50.00
%
Fair value per option share
$
4.93

The following table provides a summary of stock option activity for the period ended September 30, 2012:

 
Shares
 
Average
Exercise
Price
 
Weighted
Average
Life
Outstanding at January 1, 2012
1,997,778

 
$
11.33

 
 
Options Granted
323,950

 
12.96

 
 
Options Exercised
(281,324
)
 
11.07

 
 
Cancelled or Forfeited
(25,199
)
 
11.05

 
 
Outstanding at September 30, 2012
2,015,205

 
$
11.61

 
6.59 years
Exercisable at September 30, 2012
1,363,466

 
$
11.62

 
 
The following table provides a summary of restricted stock activity for the nine months ended September 30, 2012:
 
Shares
 
Average Grant-Date Fair Value
Unvested shares at January 1, 2012
288,500

 
 
Granted
165,495

 
$
13.79

Vested
(40,500
)
 

Forfeited
(32,275
)
 
10.03

Unvested shares at September 30, 2012
381,220

 
$
11.01

Retirement Plans (Tables)
Net periodic pension cost
Net periodic pension cost for the three and nine months ended September 30, 2012 and 2011, respectively, are as follows:

 
Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
Service cost
$
18

 
$
18

 
$
53

 
$
54

Interest cost
72

 
76

 
216

 
228

Expected return on assets
(77
)
 
(77
)
 
(230
)
 
(231
)
Amortization of actuarial net loss
25

 
16

 
75

 
48

Net periodic pension cost
$
38

 
$
33

 
$
114

 
$
99

Company contributions
$
339

 
$
116

 
$
538

 
$
268

Segment Information (Tables)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Net Sales
2012
 
2011
 
2012
 
2011
Material Handling
$
76,151

 
$
72,070

 
$
201,632

 
$
204,808

Lawn and Garden
45,341

 
45,839

 
147,008

 
154,812

Distribution
45,065

 
48,785

 
131,991

 
136,511

Engineered Products
35,709

 
29,360

 
111,578

 
85,182

Intra-segment elimination
(4,976
)
 
(5,722
)
 
(15,029
)
 
(18,208
)
Net Sales
$
197,290

 
$
190,332

 
$
577,180

 
$
563,105


 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Income Before Income Taxes
2012
 
2011
 
2012
 
2011
Material Handling
$
12,530

 
$
8,870

 
$
34,903

 
$
27,526

Lawn and Garden
41

 
(1,413
)
 
(683
)
 
846

Distribution
3,343

 
4,564

 
11,152

 
11,651

Engineered Products
2,921

 
3,001

 
12,172

 
8,381

Corporate
(9,063
)
 
(7,763
)
 
(20,663
)
 
(20,103
)
Interest expense-net
(1,194
)
 
(1,264
)
 
(3,328
)
 
(3,655
)
Income before income taxes
$
8,578

 
$
5,995

 
$
33,553

 
$
24,646

Statement of Accounting Policy The balances in the Company's accumulated other comprehensive income (Details) (USD $)
3 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2012
Foreign Currency
Jun. 30, 2012
Foreign Currency
Mar. 31, 2012
Foreign Currency
Sep. 30, 2011
Foreign Currency
Jun. 30, 2011
Foreign Currency
Mar. 31, 2011
Foreign Currency
Sep. 30, 2012
Defined Benefit Pension Plans [Member]
Jun. 30, 2012
Defined Benefit Pension Plans [Member]
Mar. 31, 2012
Defined Benefit Pension Plans [Member]
Sep. 30, 2011
Defined Benefit Pension Plans [Member]
Jun. 30, 2011
Defined Benefit Pension Plans [Member]
Mar. 31, 2011
Defined Benefit Pension Plans [Member]
Sep. 30, 2012
Accumulative Other Comprehensive Income
Jun. 30, 2012
Accumulative Other Comprehensive Income
Mar. 31, 2012
Accumulative Other Comprehensive Income
Sep. 30, 2011
Accumulative Other Comprehensive Income
Jun. 30, 2011
Accumulative Other Comprehensive Income
Mar. 31, 2011
Accumulative Other Comprehensive Income
Sep. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Senior Notes [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
$ 35,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt instrument
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,800,000 
Accumlated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
11,625,000 
7,294,000 
10,767,000 
11,379,000 
9,994,000 
14,868,000 
14,044,000 
12,234,000 
(2,068,000)
(2,068,000)
(2,700,000)
(2,070,000)
(2,070,000)
(2,070,000)
8,699,000 
9,311,000 
7,294,000 
12,798,000 
11,974,000 
10,164,000 
 
Current-period other comprehensive income
 
 
2,926,000 
(612,000)
 
(6,177,000)
824,000 
1,810,000 
 
2,926,000 
(612,000)
 
(6,177,000)
824,000 
1,810,000 
 
Current-period other comprehensive income
 
 
 
 
1,385,000 
 
 
 
 
 
 
 
 
 
 
1,385,000 
 
 
 
 
Tax effect of pension liability from prior periods
 
 
 
 
 
 
 
 
 
632,000 
 
 
 
 
 
632,000 
 
 
 
 
Ending balance
$ 11,625,000 
$ 7,294,000 
$ 13,693,000 
$ 10,767,000 
$ 11,379,000 
$ 8,691,000 
$ 14,868,000 
$ 14,044,000 
$ (2,068,000)
$ (2,068,000)
$ (2,068,000)
$ (2,070,000)
$ (2,070,000)
$ (2,070,000)
$ 11,625,000 
$ 8,699,000 
$ 9,311,000 
$ 6,621,000 
$ 12,798,000 
$ 11,974,000 
 
Inventories (Details)
Sep. 30, 2012
Inventory Disclosure [Abstract]
 
Percentage of LIFO Inventory
20.00% 
Acquisitions (Details) (USD $)
9 Months Ended
Jul. 9, 2012
Sep. 30, 2012
Developed Technology Rights [Member]
Sep. 30, 2012
Customer Relationships [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]
Jul. 9, 2012
Palsticos Novel S.A. [Member]
Trade Names [Member]
Oct. 1, 2012
Jamco [Domain]
Dec. 31, 2011
Material Improvements L.P. [Member]
Dec. 31, 2011
Material Improvements L.P. [Member]
Technology [Member]
Dec. 31, 2011
Material Improvements L.P. [Member]
Trade Names [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Business acquisition, total purchase price
 
 
 
$ 31,000,000 
 
 
 
$ 15,000,000 
$ 5,700,000 
 
 
Business acquisition, cash paid
 
 
 
3,400,000 
 
 
 
 
1,100,000 
 
 
Business Acquisition, Purchase Price Allocation, Current Assets, Cash and Cash Equivalents
630,000 
 
 
600,000 
 
 
 
 
 
 
 
Business acquisition, contingent consideration
 
 
 
900,000 
 
 
 
 
4,600,000 
 
 
Business Acquisition, Purchase Price Allocation, Noncurrent Liabilities, Long-term Debt
(26,028,000)
 
 
26,000,000 
 
 
 
 
 
 
 
Business acquisition, property, plant, and equipment
13,636,000 
 
 
 
 
 
 
 
300,000 
 
 
Business acquisition, amortizable intangible assets
5,790,000 
 
 
 
1,800,000 
2,400,000 
1,600,000 
 
 
1,300,000 
200,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
 
10 years 
6 years 
 
 
 
 
 
 
 
 
Business acquisition, goodwill
8,805,000 
 
 
 
 
 
 
 
3,900,000 
 
 
Business Combination, Acquired Receivables, Estimated Uncollectible
5,467,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Current Assets, Inventory
5,993,000 
 
 
 
 
 
 
 
 
 
 
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Intangible Assets
435,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Current Assets, Prepaid Expense and Other Assets
1,451,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Other Noncurrent Assets
719,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Assets Acquired
33,491,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Current Liabilities, Accounts Payable
(3,134,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Current Liabilities, Other Liabilities
(3,608,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Other Noncurrent Liabilities
(2,293,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Deferred Tax Liabilities, Noncurrent
(3,804,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Liabilities Assumed
(38,866,000)
 
 
 
 
 
 
 
 
 
 
Business Combination, Consideration Transferred
$ 3,430,000 
 
 
 
 
 
 
 
 
 
 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Goodwill [Roll Forward]
 
Balance at January 1, 2012
$ 44,666 
Acquisitions
8,805 
Foreign Currency Translation
174 
Impairment
Balance at June 30, 2012
53,645 
Distribution [Member]
 
Goodwill [Roll Forward]
 
Balance at January 1, 2012
214 
Acquisitions
Foreign Currency Translation
Impairment
Balance at June 30, 2012
214 
Engineered Products [Member]
 
Goodwill [Roll Forward]
 
Balance at January 1, 2012
707 
Acquisitions
Foreign Currency Translation
Impairment
Balance at June 30, 2012
707 
Material Handling [Member]
 
Goodwill [Roll Forward]
 
Balance at January 1, 2012
34,279 
Acquisitions
8,805 
Foreign Currency Translation
(24)
Impairment
Balance at June 30, 2012
43,060 
Lawn And Garden [Member]
 
Goodwill [Roll Forward]
 
Balance at January 1, 2012
9,466 
Acquisitions
Foreign Currency Translation
198 
Impairment
Balance at June 30, 2012
$ 9,664 
Net Income Per Common Share Weighted average number of common shares outstanding during the period (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Earnings Per Share [Abstract]
 
 
 
 
Options to purchase common stock outstanding (in shares)
212,000 
692,810 
212,000 
1,159,679 
Weighted average common shares outstanding
 
 
 
 
Basic (in shares)
33,746,824 
34,354,210 
33,592,984 
34,938,806 
Dilutive effect of stock options and restricted stock (in shares)
664,830 
106,742 
663,469 
89,607 
Weighted average common shares outstanding diluted (in shares)
34,411,654 
34,460,952 
34,256,453 
35,028,413 
Supplemental Disclosure of Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Supplemental Cash Flow Information [Abstract]
 
 
 
 
Interest paid
$ 491 
$ 441 
$ 2,399 
$ 2,498 
Income taxes paid
$ 3,183 
$ 1,576 
$ 16,465 
$ 7,855 
Restructuring (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
$ (400,000)
$ 2,200,000 
$ 1,300,000 
Gain (Loss) on Sale of Property Plant Equipment
 
 
(628,000)
(591,000)
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
500,000 
 
700,000 
Lawn And Garden [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
300,000 
 
 
Gain (Loss) on Disposition of Property [Member] |
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Gain (Loss) on Sale of Property Plant Equipment
(100,000)
(500,000)
(400,000)
 
Impairment [Member] |
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
 
300,000 
 
Severance and Non-Cancelable Lease Costs [Member] |
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
200,000 
 
 
1,200,000 
Non-Cancelable Lease Obligations [Member] |
Engineered Products [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
800,000 
100,000 
1,000,000 
300,000 
Severance [Member] |
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
 
400,000 
 
Severance [Member] |
Lawn And Garden [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
500,000 
 
 
 
Severance and Conulting and Other Related Charges [Member] |
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
 
300,000 
 
Consulting and Other Related Costs [Member] |
Distribution [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
 
300,000 
 
Selling, General and Administrative (SG&A) [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
100,000 
 
800,000 
 
Cost of Goods Sold [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
$ 800,000 
 
$ 1,000,000 
 
Restructuring Reserve (Details) (USD $)
9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
 
 
Property, plant and equipment classfied as held for sale
$ 5,700,000 
$ 0 
Restructuring Reserve [Roll Forward]
 
 
Balance at January 1, 2011
605,000 
 
Provision
2,106,000 
 
Less: Payments
(1,511,000)
 
Balance at June 30, 2012
1,200,000 
 
Severance & Personnel [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Balance at January 1, 2011
 
Provision
783,000 
 
Less: Payments
(783,000)
 
Balance at June 30, 2012
 
Other Exit Costs [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Balance at January 1, 2011
605,000 
 
Provision
1,323,000 
 
Less: Payments
(728,000)
 
Balance at June 30, 2012
$ 1,200,000 
 
Stock Compensation (Details) (USD $)
0 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Mar. 2, 2012
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Restricted Stock [Member]
Mar. 31, 2012
Restricted Stock [Member]
Sep. 30, 2011
Restricted Stock [Member]
Mar. 31, 2011
Restricted Stock [Member]
Sep. 30, 2012
Restricted Stock [Member]
Sep. 30, 2012
Restricted Stock [Member]
Minimum [Member]
Sep. 30, 2012
Restricted Stock [Member]
Maximum [Member]
Sep. 30, 2012
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 
Allocated Share-based Compensation Expense
 
$ 600,000 
$ 500,000 
$ 2,100,000 
$ 2,200,000 
 
 
 
 
 
 
 
 
Total unrecognized compensation cost related to non-vested share based compensation arrangements
 
4,600,000 
 
4,600,000 
 
 
 
 
 
 
 
 
 
Options Granted (in shares)
 
 
 
323,950 
 
 
 
 
 
 
 
 
 
Vesting period, in years
3 years 
 
 
3 years 
 
 
 
 
 
3 years 
3 years 
4 years 
 
Expiration period, in years
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
The total intrinsic value of all stock options exercised
 
 
 
$ 1,500,000 
$ 16,000 
 
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
75,000,000