MYERS INDUSTRIES, INC.d18rn0p25nwr6d.cloudfront.net/CIK-0000069488/93afbf96-e2... · 2019. 2. 28. · On February 28, 2019, Myers Industries, Inc. (the “Company”) issued a press

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORTPursuant to Section 13 or 15(d)

of the Securities exchange act of 1934

Date of Report (Date of earliest event reported): February 28, 2019

MYERS INDUSTRIES, INC.(Exact name of registrant as specified in its charter)

Ohio 1-8524 34-0778636

(State or other jurisdictionof incorporation)

(CommissionFile Number)

(IRS EmployerIdentification No.)

1293 South Main Street, Akron, OH 44301(Address of principal executive offices) (Zip Code)

(330) 253-5592(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of thefollowing provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of thischapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 28, 2019, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the fiscal year and quarter endedDecember 31, 2018. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report onForm 8-K. In addition, a copy of the presentation which will be discussed during the Company’s earnings conference call at 8:30 a.m. Eastern Time onFebruary 28, 2019, is attached as Exhibit 99.2 to this Current Report on Form 8-K. Information about the call can be found in the press release attached asExhibit 99.1 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibits 99.1 and 99.2 is being furnishedand shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwisesubject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibits 99.1 and 99.2 shall not be deemed to be incorporated byreference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”) except as may be expressly set forth byspecific reference in such filing.

Item 7.01 Regulation FD Disclosure.

As described in “Item 2.02 Results of Operations and Financial Condition” above, on February 28, 2019, the Company issued a press releaseannouncing earnings results for the fiscal year and quarter ended December 31, 2018, the full text of which is attached as Exhibit 99.1 to this Current Reporton Form 8-K. In addition, a copy of the presentation which will be discussed during the Company’s earnings conference call at 8:30 a.m. Eastern Time onFebruary 28, 2019 is attached as Exhibit 99.2 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibits 99.1 and 99.2 is being furnishedand shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, theinformation in this Item 7.01 and Exhibits 99.1 and 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under theSecurities Act except as may be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits . Exhibit Number Description

99.1 Press Release dated February 28, 2019

99.2 Earnings Presentation for Fourth Quarter and Full Year 2018 dated February 28, 2019

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized.

Myers Industries, Inc.

By: /s/ Andrean R. Horton Andrean R. Horton Chief Legal Officer and Secretary

Date: February 28, 2019

Exhibit 99.1

Myers Industries Reports 2018 Fourth Quarter and Full Year Results

Strongearningsgrowthin2018;freecashflowof$55million

February 28, 2019, Akron, Ohio - Myers Industries, Inc. (NYSE: MYE), a manufacturer of polymer products for industrial, agricultural, automotive,commercial and consumer markets, today announced results for the fourth quarter and year ended December 31, 2018.

Business Highlights

• GAAP income per diluted share from continuing operations for 2018 was $0.09 for the fourth quarter and a loss of $0.05 for the full year (includes

$33.3 million of pre-tax charges related to the Company’s sale of its Lawn and Garden business, which was sold in 2015), compared to income of$0.06 and $0.35, respectively, for the fourth quarter and full year 2017

• Adjusted income per diluted share from continuing operations was $0.13 for the fourth quarter and $0.76 for the full year, compared to $0.09 and$0.51, respectively, for the fourth quarter and full year 2017

• Net sales for the fourth quarter decreased 1.2% compared to the fourth quarter 2017; net sales for the full year increased 3.6% compared to the fullyear 2017

• Gross margin expanded 310 basis points to 30.4% for the fourth quarter and 280 basis points to 31.6% for the full year

• Generated $55 million in free cash flow from continuing operations for 2018, an increase of 28% compared to 2017

• Income per diluted share from continuing operations estimated to be between $0.75 and $0.85 for the full year 2019

“We are pleased with our performance for both the fourth quarter and full year of 2018. We made progress in our Myers Tire Supply business during thefourth quarter, growing top line at a low single digit rate. In addition, we increased our enterprise gross profit margin significantly, contributing to a morethan 35 percent increase in our adjusted operating income for the quarter. As a result of our operating performance, combined with a reduction in workingcapital, we generated free cash flow of nearly $18 million during the quarter, an increase of 118% year-over-year,” said Dave Banyard, President and ChiefExecutive Officer of Myers Industries.

Mr. Banyard continued, “Through our continued focus on executing our strategy centered on growing the key niche markets where we deliver value,reducing costs through flexible operations and generating strong cash flow, we were able to deliver sales growth for the year of 3.6 percent, and adjustedoperating income and free cash flow growth of nearly 30 percent. We continued to stress the importance of living a culture built around continuousimprovement, and we continued to invest in areas to help further align ourselves with our customers’ needs as we help them be safer and more efficient.” Quarter Ended December 31, Year Ended December 31,

(Dollars in thousands, except per share data) 2018 2017 % Inc(Dec) 2018 2017

% Inc (Dec)

Net sales $138,388 $140,106 (1.2)% $566,735 $547,043 3.6% Gross profit $ 42,096 $ 38,257 10.0% $179,293 $157,453 13.9% Gross profit margin 30.4% 27.3% 31.6% 28.8% Operating income $ 7,033 $ 4,003 75.7% $ 6,327 $ 24,888 (74.6)% Income (loss) from continuing operations:

Income (loss) $ 3,126 $ 1,821 71.7% $ (1,648) $ 10,844 (115.2)% Income (loss) per diluted share $ 0.09 $ 0.06 50.0% $ (0.05) $ 0.35 (114.3)%

Operating income as adjusted (1) $ 7,652 $ 5,642 35.6% $ 40,425 $ 31,468 28.5% Income (loss) from continuing operations as adjusted (1) :

Income $ 4,768 $ 2,674 78.3% $ 25,835 $ 15,473 67.0% Income per diluted share $ 0.13 $ 0.09 44.4% $ 0.76 $ 0.51 49.0%

EBITDA as adjusted $ 13,829 $ 12,532 10.3% $ 65,965 $ 60,306 9.4% (1) DetailregardingtheadjustmentsisprovidedontheReconciliationsofNon-GAAPFinancialMeasuresincludedinthisrelease.

Fourth-Quarter 2018 Financial Summary

Fourth quarter 2018 net sales decreased $1.7 million or 1.2% (0.9% excluding currency fluctuation) to $138.4 million, compared to the fourth quarter of2017. The decrease was the result of a sales decline in the Material Handling Segment, partially offset by a sales increase in the Distribution Segment. Grossprofit increased $3.8 million to $42.1 million, compared to the fourth quarter of 2017. Higher pricing and savings from the footprint realignment completedin 2017 were partially offset by the lower sales volume. Selling, general and administrative expenses increased $1.3 million to $35.0 million, compared tothe fourth quarter of 2017, due mostly to $1.4 million of incremental costs incurred to engage resources to assist with the planning and implementation ofthe transformation initiatives in the Distribution Segment. The departure of the Company’s previous CFO resulted in a reduction of costs of $1.0 million,which were offset by higher variable compensation costs. GAAP income per diluted share from continuing operations was $0.09, compared to $0.06 for thefourth quarter of 2017. Adjusted income per diluted share from continuing operations was $0.13, compared to $0.09 for the fourth quarter of 2017.

Net sales in the Material Handling Segment for the fourth quarter of 2018 decreased $2.0 million or 2.0% (1.6% excluding currency fluctuation)compared to the fourth quarter of 2017. The decrease in net sales was primarily due to anticipated sales declines in the Company’s consumer (unusuallyhigh hurricane related volume in 2017), food and beverage (unusually high seed box demand in 2017) and vehicle (declining RV sales) markets. Segmentadjusted EBITDA increased 27.1% to $19.3 million for the fourth quarter, compared to $15.2 million for the fourth quarter of 2017. The increase inadjusted EBITDA was due primarily to favorable pricing and the savings from the 2017 strategic footprint realignment, partially offset by the lower salesvolume.

Net sales in the Distribution Segment for the fourth quarter of 2018 increased $0.2 million or 0.6% compared to the fourth quarter of 2017. Sales in theMyers Tire Supply business increased low single digits due to higher sales of both consumables and equipment, partially offset by lower international sales.Sales in the Patch Rubber business were down low single digits year-over-year during the fourth quarter. The segment’s adjusted EBITDA was $0.6 millionfor the fourth quarter of 2018, compared to $1.6 million for the fourth quarter of 2017. The decrease in adjusted EBITDA was primarily the result of$1.4 million of incremental costs incurred to engage outside resources to assist with the planning and implementation of a set of initiatives to transform thebusiness.

Full-Year 2018 Financial Summary

Full-year net sales increased 3.6% to $566.7 million, compared to full-year 2017. The increase in sales was the result of sales growth in the MaterialHandling Segment, partially offset by a sales decline in the Distribution Segment. Gross profit increased $21.8 million to $179.3 million, due mostly tofavorable price and volume and savings from the 2017 strategic footprint realignment. Selling, general and administrative expenses increased $3.8 millionduring 2018 to $139.3 million primarily as a result of higher compensation costs and the incremental costs incurred to engage outside resources to assistwith the transformation initiatives in the Distribution Segment. GAAP income per diluted share from continuing operations was a loss of $0.05 (includes$33.3 million of pre-tax charges related to the sale of the Company’s Lawn and Garden business completed in 2015), compared to income of $0.35 for thefull year of 2017. Adjusted income per diluted share from continuing operations was $0.76, compared to $0.51 for the full year of 2017.

The Material Handling Segment’s net sales for the full year of 2018 increased 6.6% compared to the full year of 2017. The increase in net sales was dueprimarily to increased demand in the Company’s food and beverage, vehicle and industrial markets, partially offset by sales declines in the consumer(unusually high hurricane related volume in 2017) market. Segment adjusted EBITDA was $82.8 million for the full year of 2018, compared to$70.6 million for the full year of 2017.

The Distribution Segment’s net sales for the full year of 2018 declined 4.3% compared to the full year of 2017. The decrease in net sales was primarily dueto lower equipment and international sales compared to 2017. The segment’s adjusted EBITDA was $7.9 million for the full year of 2018, compared to$10.2 million for the full year of 2017. The decline in adjusted EBITDA was primarily due to the lower sales volume and the incremental costs incurred toengage outside resources to assist with the planning and implementation of a set of transformation initiatives for the segment.

2019 Outlook

For fiscal year 2019, the Company anticipates that total revenue will be flat on a constant currency basis compared to the prior year. Anticipated salesincreases in the consumer, industrial and auto aftermarket end markets are expected to be offset by sales decreases in the food and beverage and vehiclemarkets due to more normalized seed box demand and a continued decline in the RV market following years of strong growth. The Company expects that apositive sales mix and an ongoing focus on executing pricing and continuous improvement actions will lead to adjusted operating margin growth again in2019. The Company expects depreciation and amortization to be approximately $25 million, net interest expense to be approximately $5 million, and theeffective tax rate to be approximately 27%. Income per diluted share from continuing operations is estimated to be between $0.75 and $0.85, based on afully diluted share count of 36.0 million shares. Capital expenditures are expected to be approximately $10 million.

Mr. Banyard concluded, “We will remain diligent in executing our strategy in 2019 and one of our top priorities remains the transformation of ourDistribution Segment, which is underway. Through enhancements in our go-to-market strategy, the implementation of 80/20 to drive improved contributionmargins, and optimization of our logistics and overhead costs, our goal is to expand our Distribution Segment EBITDA margin to 10% by the end of 2020.Additionally, through the new product introduction in our Material Handling Segment that is expected to help us grow our consumer market, to anticipatedstrength in our industrial and auto aftermarket end markets, we expect to offset lower sales in our food and beverage and vehicle (i.e. RV) end marketsduring 2019. Lastly, we will continue to evaluate opportunities to leverage our strong balance sheet into accretive acquisition opportunities, but only whenwe find the optimal complement to our platform that will position the Company to deliver long-term shareholder value.”

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, February 28, at 8:30 a.m. ET. The call isanticipated to last approximately one hour and may be accessed by dialing: (US) 833-233-3452 or (Int’l) 647-689-4129. The Conference ID # is 1662969.Callers are asked to sign on at least five minutes in advance. The live webcast of the conference call can be accessed from the Investor Relations section ofthe Company’s website at www.myersindustries.com . Click on the Investor Relations tab to access the webcast. Webcast attendees will be in a listen-onlymode. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (US)800-585-8367 or (Int’l) 416-621-4642. The Conference ID # is 1662969.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted income per diluted share from continuing operations, operating income asadjusted, income from continuing operations as adjusted, EBITDA as adjusted, adjusted operating income, adjusted EBITDA, adjusted EPS and free cashflow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generallyaccepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison ofthe Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in thisnews release.

About Myers Industries

Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets. TheCompany is also the largest distributor of tools, equipment and supplies for the tire, wheel and under vehicle service industry in the United States. Visitwww.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statementthat is not of historical fact may be deemed “forward-looking”. Words such as “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”,“outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management’s current viewsand assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company’s control thatcould cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: raw material availability, increases in rawmaterial costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of suchinitiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in themarkets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at ourmanufacturing facilities, or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world;inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulationsaffecting the Company; and other risks as detailed in the Company’s 10-K and other reports filed with the Securities and Exchange Commission. Suchreports are available on the Securities and Exchange Commission’s public reference facilities and its website at www.sec.gov and on the Company’sInvestor Relations section of its website at www.myersindustries.com . Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

Contact: Monica Vinay, Vice President, Investor Relations & Treasurer, (330) 761-6212

MYERS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data) Quarter Ended Year Ended

December 31,

2018 December 31,

2017 December 31,

2018 December 31,

2017 Net sales $ 138,388 $ 140,106 $ 566,735 $ 547,043 Cost of sales 96,292 101,849 387,442 389,590

Gross profit 42,096 38,257 179,293 157,453 Selling, general and administrative expenses 34,975 33,724 139,335 135,503 Loss (gain) on disposal of fixed assets 88 530 (8) (3,482) Impairment charges — — 308 544 Other expenses — — 33,331 —

Operating income 7,033 4,003 6,327 24,888 Interest expense, net 1,103 1,464 4,938 7,292 Loss on extinguishment of debt — 1,888 — 1,888

Income from continuing operations before income taxes 5,930 651 1,389 15,708 Income tax expense (benefit) 2,804 (1,170) 3,037 4,864

Income (loss) from continuing operations 3,126 1,821 (1,648) 10,844 Income (loss) from discontinued operations, net of income taxes (788) (20,074) (1,701) (20,733)

Net income (loss) $ 2,338 $ (18,253) $ (3,349) $ (9,889)

Income (loss) per common share from continuing operations: Basic $ 0.09 $ 0.06 $ (0.05) $ 0.36 Diluted $ 0.09 $ 0.06 $ (0.05) $ 0.35 Income (loss) per common share from discontinued operations: Basic $ (0.02) $ (0.66) $ (0.05) $ (0.69) Diluted $ (0.02) $ (0.65) $ (0.05) $ (0.68) Net income (loss) per common share: Basic $ 0.07 $ (0.60) $ (0.10) $ (0.33) Diluted $ 0.07 $ (0.59) $ (0.10) $ (0.33) Weighted average common shares outstanding: Basic 35,355,863 30,423,324 33,426,855 30,222,289 Diluted 35,576,611 30,851,536 33,426,855 30,562,646

MYERS INDUSTRIES, INC.SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands) Quarter Ended December 31, Year Ended December 31, 2018 2017 % Change 2018 2017 % Change Net sales

Material Handling $ 99,578 $101,613 (2.0)% $417,199 $391,313 6.6% Distribution 38,821 38,592 0.6% 149,636 156,428 (4.3)% Inter-company Sales (11) (99) — (100) (698) —

Total $138,388 $140,106 (1.2)% $566,735 $547,043 3.6%

Operating income (loss) Material Handling $ 13,083 $ 8,199 59.6% $ 57,948 $ 38,874 49.1% Distribution 371 1,331 (72.1)% 7,441 9,073 (18.0)% Corporate (6,421) (5,527) — (59,062) (23,059) —

Total $ 7,033 $ 4,003 75.7% $ 6,327 $ 24,888 (74.6)%

Operating income (loss) as adjusted Material Handling $ 13,501 $ 8,838 52.8% $ 58,871 $ 44,128 33.4% Distribution 371 1,331 (72.1)% 6,776 9,073 (25.3)% Corporate (6,220) (4,527) — (25,222) (21,733) —

Total $ 7,652 $ 5,642 35.6% $ 40,425 $ 31,468 28.5%

Operating income margin as adjusted Material Handling 13.6% 8.7% 14.1% 11.3% Distribution 1.0% 3.4% 4.5% 5.8% Corporate n/a n/a n/a n/a

Total 5.5% 4.0% 7.1% 5.8%

EBITDA as adjusted Material Handling $ 19,318 $ 15,195 27.1% $ 82,816 $ 70,641 17.2% Distribution 631 1,640 (61.5)% 7,945 10,247 (22.5)% Corporate (6,120) (4,303) — (24,796) (20,582) —

Total $ 13,829 $ 12,532 10.3% $ 65,965 $ 60,306 9.4%

EBITDA margin as adjusted Material Handling 19.4% 15.0% 19.9% 18.1% Distribution 1.6% 4.2% 5.3% 6.6% Corporate n/a n/a n/a n/a

Total 10.0% 8.9% 11.6% 11.0%

MYERS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands) December 31, 2018 December 31, 2017 Assets Current Assets

Cash $ 58,894 $ 2,520 Restricted cash — 8,659 Accounts receivable, net 72,939 76,509 Income tax receivable 4,892 12,954 Inventories 43,596 47,166 Prepaid expenses and other current assets 2,534 2,204

Total Current Assets 182,855 150,012 Property, plant, & equipment, net 65,460 83,904 Deferred income taxes 5,270 120 Other assets 95,060 121,906

Total Assets $ 348,645 $ 355,942

Liabilities & Shareholders’ Equity Current Liabilities

Accounts payable $ 60,849 $ 63,581 Accrued expenses 36,574 35,072

Total Current Liabilities 97,423 98,653 Long-term debt, net 76,790 151,036 Other liabilities 19,794 8,236 Deferred income taxes — 4,265 Total Shareholders’ Equity 154,638 93,752

Total Liabilities & Shareholders’ Equity $ 348,645 $ 355,942

MYERS INDUSTRIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands) Year Ended December 31, 2018 2017 Cash Flows From Operating Activities

Net income (loss) $ (3,349) $ (9,889) Income (loss) from discontinued operations, net of income taxes (1,701) (20,733)

Income (loss) from continuing operations (1,648) 10,844 Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating

activities Depreciation 17,638 19,952 Amortization 8,485 8,886 Accelerated depreciation associated with restructuring activities 16 1,993 Non-cash stock-based compensation expense 4,257 3,626 (Gain) loss on disposal of fixed assets (8) (3,482) Provision for loss on note receivable 23,008 — Lease guarantee contingency 10,323 — Loss on extinguishment of debt — 1,888 Deferred taxes (9,450) (5,663) Interest income received (accrued) on note receivable (361) (1,384) Impairment charges 308 544 Other 457 256

Payments on performance based compensation (1,249) (1,010) Other long-term liabilities 180 723 Cash flows provided by (used for) working capital

Accounts receivable 4,927 (6,709) Inventories 3,151 (1,876) Prepaid expenses and other current assets (353) 2,209 Accounts payable and accrued expenses 713 18,299

Net cash provided by (used for) operating activities - continuing operations 60,394 49,096 Net cash provided by (used for) operating activities - discontinued operations 858 (4,633)

Net cash provided by (used for) operating activities 61,252 44,463

Cash Flows From Investing Activities Capital expenditures (5,123) (5,814) Proceeds from sale of property, plant and equipment 2,633 11,058

Net cash provided by (used for) investing activities - continuing operations (2,490) 5,244 Net cash provided by (used for) investing activities - discontinued operations — (1,107)

Net cash provided by (used for) investing activities (2,490) 4,137

Cash Flows From Financing Activities Net borrowing (repayments) on credit facility (74,557) (16,474) Repayments of senior unsecured notes — (23,798) Cash dividends paid (17,862) (16,341) Proceeds from issuance of common stock 2,853 4,527 Proceeds from public offering of common stock, net of equity issuance costs 79,522 — Shares withheld for employee taxes on equity awards (714) (620) Deferred financing costs — (1,030)

Net cash provided by (used for) financing activities - continuing operations (10,758) (53,736) Net cash provided by (used for) financing activities - discontinued operations — —

Net cash provided by (used for) financing activities (10,758) (53,736)

Foreign exchange rate effect on cash (289) (208) Less: Net increase (decrease) in cash classified within discontinued operations — (5,484)

Net increase in cash and restricted cash 47,715 140 Cash and restricted cash at January 1 11,179 11,039

Cash and restricted cash at December 31 $ 58,894 $ 11,179

MYERS INDUSTRIES, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)(Dollars in thousands)

Quarter Ended December 31, 2018

Material Handling Distribution

Segment Total

Corporate& Other Total

GAAP Net sales $ 99,578 $ 38,821 $138,399 $ (11) $138,388

GAAP Gross profit 42,096 — 42,096 Add: Restructuring expenses and other adjustments 171 — 171

Gross profit as adjusted 42,267 — 42,267 Gross profit margin as adjusted 30.5% n/a 30.5%

GAAP Operating income (loss) 13,083 371 13,454 (6,421) 7,033 Add: Restructuring expenses and other adjustments (1) 418 — 418 201 619

Operating income (loss) as adjusted 13,501 371 13,872 (6,220) 7,652 Operating income margin as adjusted 13.6% 1.0% 10.0% n/a 5.5%

Add: Depreciation and amortization 5,883 260 6,143 100 6,243 Less: Depreciation adjustments (66) — (66) — (66)

EBITDA as adjusted $ 19,318 $ 631 $ 19,949 $ (6,120) $ 13,829 EBITDA margin as adjusted 19.4% 1.6% 14.4% n/a 10.0%

(1) Includesgrossprofitadjustmentsof$171andSG&Aadjustmentsof$448

Quarter Ended December 31, 2017


Segment Total


GAAP Net sales $101,613 $ 38,592 $140,205 $ (99) $140,106



GAAP Operating income (loss) 8,199 1,331 9,530 (5,527) 4,003 Add: Restructuring expenses and other adjustments (1) 498 — 498 1,000 1,498 Add: Loss on sale of assets 141 — 141 — 141

Operating income (loss) as adjusted 8,838 1,331 10,169 (4,527) 5,642 Operating income margin as adjusted 8.7% 3.4% 7.3% n/a 4.0%

Add: Depreciation and amortization 6,332 309 6,641 224 6,865 Less: Depreciation adjustments 25 — 25 — 25

EBITDA as adjusted $ 15,195 $ 1,640 $ 16,835 $ (4,303) $ 12,532 EBITDA margin as adjusted 15.0% 4.2% 12.0% n/a 8.9%

(1) Includesgrossprofitadjustmentsof$422andSG&Aadjustmentsof$1,076


GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)(Dollars in thousands)

Year Ended December 31, 2018


Segment Total


GAAP Net sales $417,199 $ 149,636 $566,835 $ (100) $566,735



GAAP Operating income (loss) 57,948 7,441 65,389 (59,062) 6,327 Add: Restructuring expenses and other adjustments (1) 1,131 — 1,131 201 1,332 Add: Provision for loss on note receivable — — — 23,008 23,008 Add: Lease guarantee — — — 10,323 10,323 Add: Asset impairment — — — 308 308 Less: Gain on sale of assets (208) (665) (873) — (873)


Add: Depreciation and amortization 24,158 1,169 25,327 426 25,753 Less: Depreciation adjustments (213) — (213) — (213)


(1) Includesgrossprofitadjustmentsof$746andSG&Aadjustmentsof$586

Year Ended December 31, 2017


Segment Total


GAAP Net sales $391,313 $ 156,428 $547,741 $ (698) $547,043

GAAP Gross profit 157,453 — 157,453 Add: Restructuring expenses and other adjustments 7,501 — 7,501


GAAP Operating income (loss) 38,874 9,073 47,947 (23,059) 24,888 Add: Restructuring expenses and other adjustments (1) 8,656 — 8,656 1,326 9,982 Add: Asset impairment 544 — 544 — 544 Less: Gain on sale of assets (3,946) — (3,946) — (3,946)


Add: Depreciation and amortization 28,506 1,174 29,680 1,151 30,831 Less: Depreciation adjustments (1,993) — (1,993) — (1,993)


(1) Includesgrossprofitadjustmentsof$7,501andSG&Aadjustmentsof$2,481


INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)(Dollars in thousands, except per share data)

Quarter Ended December 31, Year Ended December 31, 2018 2017 2018 2017 GAAP Operating income $ 7,033 $ 4,003 $ 6,327 $ 24,888

Add: Restructuring expenses and other adjustments 619 1,498 1,332 9,982 Add: Charges related to 2015 sale of Lawn & Garden business (1) — — 33,331 — Add: Asset impairments — — 308 544 Less: Loss (gain) on sale of assets — 141 (873) (3,946)

Operating income as adjusted 7,652 5,642 40,425 31,468 Less: Interest expense, net (1,103) (1,464) (4,938) (7,292)

Income before taxes as adjusted 6,549 4,178 35,487 24,176 Less: Income tax expense (2) (1,781) (1,504) (9,652) (8,703)

Income from continuing operations as adjusted $ 4,768 $ 2,674 $ 25,835 $ 15,473 Adjusted earnings per diluted share from continuing operations (3) $ 0.13 $ 0.09 $ 0.76 $ 0.51 (1) Includes$23,008forprovisionforlossonnotereceivableand$10,323forleaseguarantee(2) Incometaxesarecalculatedusingthenormalizedeffectivetaxrateforeachyear.Therateusedin2018was27.2%andin2017was36%(3) AdjustedearningsperdilutedshareforyearendedDecember31,2018iscalculatedusing33,825,370shares

MYERS INDUSTRIES, INC.RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS(UNAUDITED)

(Dollars in thousands) Year YTD Quarter

December 31,

2018 September 30,

2018 December 31,

2018 Net cash provided by (used for) operating activities - continuing operations $ 60,394 - $ 41,121 = $ 19,273

Capital expenditures (5,123) - (3,560) = (1,563)

Free cash flow $ 55,271 - $ 37,561 = $ 17,710

Year YTD Quarter

December 31,

2017 September 30,

2017 December 31,

2017 Net cash provided by (used for) operating activities - continuing operations $ 49,096 - $ 40,284 = $ 8,812

Capital expenditures (5,814) - (5,109) = (705)

Free cash flow $ 43,282 - $ 35,175 = $ 8,107

MYERS INDUSTRIES, INC. Fourth Quarter & Full Year 2018 Earnings Presentation 21 54 91 142 184 230 56 67 73 Font Color Exhibit 99.2

Safe Harbor Statement & Non-GAAP Measures Statements in this presentation include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company's control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company's business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities, or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; and other risks as detailed in the Company's 10-K and other reports filed with the Securities and Exchange Commission. Such reports are available on the Securities and Exchange Commission's public reference facilities and its website at www.sec.gov and on the Company's Investor Relations section of its website at www.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made. The Company refers to certain non-GAAP financialmeasures throughout this presentation. Adjusted EPS, adjusted income per diluted share from continuing operations, adjusted operating income, adjusted gross profit, adjusted EBITDA and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. The Company believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in the appendix of this presentation.

2018 Overview Challenges Achievements Generated annual free cash flow of $55.3M or 9.8% of sales, an increase of 28% Net working capital 3.8% at year-end Double-digit sales growth in our Food & Beverage market, leading to an increase in net sales of 6.6% in Material Handling and 3.6% overall Launched new spout at Scepter expected to drive mid-single-digit growth in the Consumer market in 2019 Expanded our adjusted gross profit margin by 160 basis points to 31.8% as a result of: Strategic footprint realignment completed in 2017 Pricing initiatives 80/20 and lean continuous improvement actions Adjusted operating income increased by 28.5% and adjusted diluted EPS up 49% Successful secondary offering to reposition balance sheet to support future growth initiatives Distribution Segment underperformed to expectations Sales decline of 4.3%, due to lower equipment and international sales Implementing a set of transformational actions designed to increase sales force effectiveness, reduce costs, and improve contribution margins Low-single-digit sales growth at Myers Tire Supply in Q4 2018 Sales to RV customers declined at more rapid rate than anticipated Focusing on funnel of opportunities in adjacent markets Reviewing potential cost savings measures Results reflect continuing operations. See appendix for non-GAAP reconciliations.

Q4 Financial Summary Operating Highlights Net sales down 1.2%, compared to Q4 2017 Material Handling down $2.0M (-2.0%) Distribution up $0.2M (+0.6%) Adj. Gross profit increased $3.6M to 30.5% Favorable price, partially offset by lower volume and unfavorable mix Savings from 2017 restructuring initiatives Adj. Op income up 35.6% to $7.7M, compared to $5.6M in Q4 2017 Adj. EBITDA up 10.3% to $13.8M, compared to $12.5 million in Q4 2017 Adj. EPS $0.13 compared to $0.09 in Q4 2017, an increase of 44.4% GAAP Financial Highlights Non-GAAP Financial Highlights Results reflect continuing operations. See appendix for non-GAAP reconciliations.

Q4 Segment Results Material Handling Segment Highlights Net sales down 2.0% vs. Q4 2017 Sales to Consumer market down double-digits due primarily to high hurricane related volume in 2017 Sales to Food & Beverage market down mid-single-digits due to higher comps from high seed box demand in Q4 2017 Sales to the Vehicle market down high-single-digits driven by RV market decline Double-digit sales growth to the Industrial market driven by large customer order received during Q4 Favorable price and savings from 2017 restructuring actions partially offset the lower sales volume during the quarter Material Handling Financial Highlights Distribution Financial Highlights Results reflect continuing operations. See appendix for non-GAAP reconciliations. Distribution Segment Highlights Net sales up 0.6% vs. Q4 2017 Myers Tire Supply sales increased low-single-digits due to higher sales of consumables and equipment, partially offset by lower international sales Sales in the Patch Rubber business declined low-single-digits due to lower sales of industrial products Incurred $1.4M of incremental costs to engage outside resources to assist with the planning and implementation of transformation initiatives

Target 7% 9.8% 7.9% 10.7% 9.0% 2018 Highlights Free cash flow generation of $55.3M, a 28% increase vs. prior year Q4 free cash flow of $17.7M, 12.8% of sales Reduced net debt by $131M; net-debt-to- adjusted EBITDA ratio 0.3x Inclusive of $79.5M secondary offering Lowered working capital as a percentage of sales to 3.8% Results reflect continuing operations. See appendix for non-GAAP reconciliations. 2.5x Secondary Offering

Strategic initiatives focused on 3 key areas: Shifting go-to-market strategy to enhance sales effectiveness Expanding strategic accounts team focused on large key accounts Building inside sales team to focus on smaller, harder to reach accounts Segmenting sales organization to better align with market buying behavior Enhancing and expanding e-commerce platform utilizing an improved digital storefront and marketplace sites 80/20 implementation and contribution margin improvement Further enhancing and simplify pricing structure Implementing new freight policies and practices to recover freight costs Supplier consolidation and product rationalization to simplify offering and reduce costs Implementing logistics and overhead efficiency programs Optimizing distribution network to improve productivity and service levels Reducing SG&A costs through initiatives such as discretionary spending cutbacks Anticipated initiatives estimated to deliver $5 - $7M in annualized benefits in 2020 Total costs to implement initiatives anticipated to be between $1 - $2M in 2019 Net benefits (gross benefits less implementation costs) anticipated to be $1 - $2M in 2019 Distribution Segment Transformation 7 Goal is 10% EBITDA margin at the end of 2020

2018 2019 Operating Framework Mid-single digits Mid- teens Mid-single digits Low-single digits Low-to-mid- single digits Expecting decline from unusually high demand in 2018 and competitive pressure; anticipating increased sales to food processing customers Growth from new product launch and market share gains Expect continued decline in sales to RV customers to be partially offset by increased sales to automotive customers Anticipate increased sales with large industrial distributors Sales expected to increase as a result of strategic initiatives being implemented in first half of 2019 Auto Aftermarket 26% Industrial 25% Sales expected to be flat; adjusted operating margin expected to grow Diluted EPS estimated to be $0.75 - $0.85 2019 Fiscal Year Outlook

2019 Full Year Guidance Net sales growth: ~ Flat D&A: ~ $25M Net interest expense: ~ $5M Effective tax rate (normalized): ~ 27% Diluted share count: ~ 36M Diluted EPS$0.75 - $0.85 Capital expenditures: ~ $10M

Financial Targets Adjusted Op Income Margin Free Cash Flow/Sales Working Capital/Sales Total Debt-to-Adjusted-EBITDA Adjusted EBITDA Long-term Financial Targets 2018 Targets >8% >7% 10% >9%

Appendix

2018 Financial Summary Operating Highlights Net sales up 3.6%, compared to 2017 Material Handling up $25.9M (+6.6%) Distribution down $6.8M (-4.3%) Adj. Gross profit increased $15.0M to 31.8% Favorable price and volume, partially offset by unfavorable customer mix Savings from 2017 restructuring initiatives Adj. Op income up 28.5% to $40.4M, compared to $31.5M in 2017 Adj. EBITDA up 9.4% to $66.0M, compared to $60.3M in 2017 Adj. EPS $0.76 compared to $0.51 in 2017 GAAP EPS of -$0.05 includes $33.3M of pre-tax charges related to sale of Lawn & Garden business completed in 2015 GAAP Financial Highlights Non-GAAP Financial Highlights Results reflect continuing operations. See appendix for non-GAAP reconciliations.

2018 Segment Results Material Handling Financial Highlights Distribution Financial Highlights Results reflect continuing operations. See appendix for non-GAAP reconciliations. Distribution Segment Highlights Net sales down 4.3% vs. 2017 Decline primarily due to lower equipment and international sales Gross margin expansion driven by pricing actions and favorable mix of consumables vs. equipment, partially offset by lower volume Incurred $1.4M of incremental costs in Q4 to engage outside resources to assist with the planning and implementation of transformation initiatives Material Handling Segment Highlights Net sales up 6.6% vs. 2017 Sales to Consumer market down low-single-digits due primarily to higher comps from hurricane volume in 2017 Double-digit sales growth to the Food & Beverage market due to increased sales of seed boxes compared to 2017 Sales to the Vehicle market up low-single-digits due to strength in marine and automotive end markets Sales to Industrial market up mid-single-digits Margin expansion driven by increased volume, pricing actions and savings from 2017 restructuring initiatives

Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)

Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data)

Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS (UNAUDITED) (Dollars in thousands)

Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA AND NET DEBT (UNAUDITED) (Dollars in thousands)

Reconciliation of Non-GAAP Measures MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES WORKING CAPITAL (UNAUDITED) (Dollars in thousands)

Documents

MYERS INDUSTRIES, INC.d18rn0p25nwr6d.cloudfront.net/CIK-0000069488/93afbf96-e2... · 2019. 2. 28. · On February 28, 2019, Myers Industries, Inc. (the “Company”) issued a press