Myers Industries Inc., parent of RV industry supplier Ameri-Kart, reports its first quarter earnings increased 26% in part due to an accounting technicality.
The company earned $10 million during the three months ended March 31, compared with $7.9 million earned a year earlier. However, Myers adopted an accounting rule change effective Jan. 1 that eliminates the amortization of goodwill.
Goodwill amortization reduced Myers’ first quarter 2001 pre-tax earnings by $2.3 million. The company found no asset impairment during the first quarter of this year so it did not write down the value of any goodwill during that period.
Otherwise, Myers’ first quarter earnings were the highest in company’s history and reflected “favorable prices for raw materials, lower interest rates and reduced operating expenses,” according to Stephen E. Myers, president and CEO.
The company had record earnings despite the fact its first quarter sales revenue declined 10% to $148.9 million, Myers added.
Ameri-Kart makes rotational molded plastic products for RV industry customers and firms in a variety of other businesses.