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Ø | Strong, Independent and Committed Board. Your Board, as currently constituted, consists of highly qualified members who understand the Companys diverse businesses and are resolutely committed to acting in the best interests of all shareholders to build long-term shareholder value. They are stewarding a strategic growth plan to guide the business through this unprecedented economic environment while continuing to deliver profitable results, positioning the Company to emerge even stronger in an economic rebound and focusing on long-term value creation. Seven of the nine directors are independent, and its members provide a broad range of expertise in polymers, operations, manufacturing, distribution, finance and marketing. To continually enhance the Boards structure, the Corporate Governance and Nominating Committee considers any and all shareholder nominations of director candidates, and also identifies candidates through its own national search process with the assistance of a leading executive search firm. All potential nominees are carefully vetted by the Committee to ensure our commitment to the highest fiduciary standards on behalf of our shareholders. When we received GAMCOs letter, we invited the proposed nominees to be vetted by the Committee; GAMCO declined to participate in our vetting process and refused to submit its nominees to such scrutiny. | ||
Ø | Disciplined and Results-Driven Strategic Focus. Your Board and management team remain keenly focused on the Companys disciplined operating strategy the Strategic Business Evolution that is designed to position Myers Industries for sustainable, profitable growth and to fuel higher levels of value and returns for all shareholders. This strategy, which is clearly defined and communicated, is delivering results through evolution and transformation across the Companys businesses. This includes optimizing our cost structure, maintaining strong cash flow and balance sheet readiness, divesting businesses that do not fit within our long-term goals, developing growth opportunities in both new and existing markets, and more. By consistently executing this strategy, we have positioned the Companys brands as leaders in their respective markets, with a loyal and diverse yet targeted customer base. GAMCO, in its limited communications, has not put forth any |
substantive recommendations for changes in operating strategy or focus, nor detailed how such changes would benefit shareholders. | |||
Ø | Solid Results and Performance. As a direct result of our business strategy and transformation actions over the past three years, Myers Industries is better equipped to mitigate the effects of the global economic crisis and to weather future challenges. During the past year, for example, our actions produced solid operating results in a very difficult operating environment, including cash flow from operations of approximately $60 million. We also paid $18 million in quarterly dividends, including a special dividend, and invested approximately $41 million in capital expenditures reflecting opportunistic investment in technology required to fuel new product development and future productivity savings. The Companys financial position remains solid, with a strong balance sheet and ample financial liquidity to pursue its strategic plan and enhance shareholder value, as evidenced by the solid first-quarter earnings reported on April 16. | ||
Ø | Shareholder Value Creation. The Company has produced solid results and performance and has consistently and steadily increased its quarterly dividend payments. This includes a 14% increase in the regular quarterly dividend in 2008, now $0.06 per share, as well as a transaction-related $0.28 per share special dividend paid last year. |