MYERS INDUSTRIES INC

Previous wording

The Company designs, manufactures, and markets a variety of plastic, metal and rubber products. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, compression molded or blow molded. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, as well as the manufacturing of tire repair and retreading products.

Current wording

The Company designs, manufactures, and markets a variety of plastic, metal and rubber products, including a broad selection of durable plastic reusable products that are manufactured for repeated use during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Company's products include a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, tire repair and retreading products, consumer fuel containers and tanks for water, fuel and waste handling. Products are primarily injection molded, rotationally molded, compression molded or blow molded. Injection, compression and blow molding primarily use electric power to heat and press resin into molds to form the products. Rotational molding involves multi-axis rotation of molds in natural gas fired ovens to form the resin into our products. The Company also manufactures and sells certain traffic markings, including reflective highway marking tape. The Company conducts its primary operations in the United States, Canada and Europe and serves a wide variety of markets, including industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, construction, infrastructure and consumer, among others. Products are sold both directly to end-users and through distributors.

Previous wording

The Company’s results of operations for the quarter and nine months ended September 30, 2025 are discussed below. The current economic environment includes heightened risks from tariffs, inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including rapidly changing regulations which has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability, tariffs and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.

Current wording

The Company’s results of operations for the quarter ended March 31, 2026 are discussed below. The current economic environment includes heightened risks from tariffs, inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including rapidly changing regulations which has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability, tariffs and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.

Previous wording

Gross profit increased $3.4 million, or 5.3%, for the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024, due to higher volume as described under Net Sales above, favorable mix, favorable cost productivity and lower material costs, partially offset by lower pricing. Gross margin was 33.4% for the quarter ended September 30, 2025 compared with 31.8% for the quarter ended September 30, 2024.

Current wording

Gross profit increased $6.3 million, or 12.6%, for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, due to higher volume, favorable mix, lower material costs and favorable cost productivity, partially offset by lower pricing as described under Net Sales above. Gross margin was 34.4% for the quarter ended March 31, 2026 compared with 31.1% for the quarter ended March 31, 2025.

Previous wording

Selling, general and administrative (“SG&A”) expenses for the quarter ended September 30, 2025 were $44.4 million, an increase of $5.9 million or 15.4% compared to the same period in the prior year. Increases in SG&A expenses for the quarter ended September 30, 2025 were primarily due to $4.5 million of higher incentive compensation, including reversals of incentive compensation in 2024, $0.9 million of higher facility costs, $1.6 million of higher legal fees and $1.3 million of higher restructuring costs as described in Note 4, partially offset by $1.3 million of lower professional fees, $0.5 million of lower salaries and benefits, $0.7 million of lower variable selling expenses, $0.2 million of lower commissions and $0.3 million of lower acquisition and integration costs due to the Signature acquisition as described in Note 3. Environmental matters as described in Note 10 also resulted in a net $0.5 million of income for the quarter ended September 30, 2024.

Current wording

Selling, general and administrative (“SG&A”) expenses for the quarter ended March 31, 2026 were $28.0 million, a decrease of $1.3 million or 4.4% compared to the same period in the prior year. Decreases in SG&A expenses for the quarter ended March 31, 2026 were primarily due to $0.9 million of lower salaries and benefits, $0.6 million of lower legal and professional fees, $0.1 million of lower incentive compensation and $1.1 million of lower restructuring costs as described in Note 4, partially offset by $1.0 million of higher variable selling expenses. Environmental matters, as described in Note 10 resulted in a net $0.4 million of charges for the quarter ended March 31, 2026.

Previous wording

Depreciation and amortization, exclusive of amounts within Cost of sales, decreased $0.6 million to $4.3 million for the quarter ended September 30, 2025 as compared to $4.9 million for the quarter ended September 30, 2024. The decrease was primarily related to asset disposals in conjunction with the facility consolidations, as described in Note 4.

Current wording

Depreciation and amortization, exclusive of amounts within Cost of sales, decreased $0.1 million to $3.7 million for the quarter ended March 31, 2026 as compared to $3.8 million for the quarter ended March 31, 2025. The decrease was primarily related to asset disposals in the prior year.

Previous wording

(Gain) loss on disposal of fixed assets:

Current wording

(Gain) loss on disposal of fixed assets was not significant during both the quarter ended March 31, 2026 and March 31, 2025.

Previous wording

Net interest expense for the quarter ended September 30, 2025 was $7.5 million, a decrease of $0.6 million, or 7.3%, compared with $8.1 million for the quarter ended September 30, 2024. The lower net interest expense was due to lower average outstanding borrowings and a lower weighted-average borrowing rate for the quarter ended September 30, 2025.

Current wording

Net interest expense for the quarter ended March 31, 2026 was $6.7 million, a decrease of $0.7 million, or 9.4%, compared with $7.4 million for the quarter ended March 31, 2025. The lower net interest expense was due to lower average outstanding borrowings, partially offset by a higher weighted-average borrowing rate for the quarter ended March 31, 2026.

Previous wording

The Company’s effective tax rate was 26.4% and 56.4% for the nine months ended September 30, 2025 and 2024, respectively. The decrease in the effective tax rate is driven by a current year benefit related to the termination of the Company's pension plan, higher fixed non-deductible expenses in the prior year, including expenses related to the Signature acquisition plus the tax effect of impairment charges in the prior year.

Current wording

The Company’s effective tax rate was 24.0% and 26.8% for the quarter ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate is driven by higher fixed non-deductible expenses in the prior year.

Previous wording

The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At September 30, 2025, the Company had $48.0 million of cash, $244.7 million available under the Amended Loan Agreement and outstanding debt of $369.4 million, including the finance lease liability of $8.2 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.

Current wording

The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At March 31, 2026, the Company had $44.6 million of cash, $244.7 million available under the Amended Loan Agreement and outstanding debt of $339.2 million, including the finance lease liability of $7.8 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.

Previous wording

Net cash provided by operating activities was $64.2 million for the nine months ended September 30, 2025, compared to $51.9 million in the same period in 2024. The increase was primarily due to changes in working capital as cash generated from working capital was $9.4 million for the nine months ended September 30, 2025, as compared to cash used for working capital of $9.1 million in the prior year to date period.

Current wording

Net cash provided by operating activities from continuing operations, including intercompany cash flows, was $26.7 million for the quarter ended March 31, 2026, compared to $10.3 million in the same period in 2025. The increase was primarily due to higher net income from continuing operations in the current period and changes in working capital. In the first quarter of 2026, accounts receivable was a use of $8.6 million, which was more than offset by $9.9 million and $2.1 million provided by accounts payable and inventory, respectively. This compares to the first quarter of 2025, where accounts receivable and inventory were uses of $20.7 million and $6.6 million, respectively, partially offset by $18.7 million provided by accounts payable. The company views changes in working capital to be related to volume and timing. In total, cash generated from working capital was $4.4 million for the quarter ended March 31, 2026, compared to cash used for working capital of $8.2 million in the prior year to date period.

Previous wording

Net cash used for investing activities was $15.3 million for the nine months ended September 30, 2025 compared to cash used of $365.5 million for the same period in 2024. In 2024, the Company paid $348.3 million to acquire Signature, net of cash acquired and working capital adjustments, as discussed in Note 3. Capital expenditures were $15.9 million and $17.3 million for the nine months ended September 30, 2025 and 2024, respectively. Full year 2025 capital expenditures are expected to be approximately 3% of revenue.

Current wording

Net cash used for investing activities from continuing operations was $2.4 million for the quarter ended March 31, 2026 compared to cash used of $8.0 million for the same period in 2025. Capital expenditures were $2.8 million and $8.0 million for the quarter ended March 31, 2026 and 2025, respectively. Full year 2026 capital expenditures are expected to be approximately 3.5% of revenue.

Previous wording

Cash used by financing activities was $33.0 million for the nine months ended September 30, 2025 compared to cash provided by financing activities of $313.0 million for the same period in 2024. Net borrowings (repayments) of the Company's revolving credit facility were $0.0 million and $(15.0) million for the nine months ended September 30, 2025 and 2024, respectively. The company also made scheduled repayments of the Term Loan A totaling $15.0 million and $10.0 million for the nine months ended September 30, 2025 and 2024, respectively. Net proceeds from the issuance of common stock in connection with incentive stock exercises were $0.9 million and $3.1 million for the nine months ended September 30, 2025 and 2024, respectively. Cash paid for tax withholdings on vesting of stock compensation totaled $0.9 million and $2.0 million for the nine months ended September 30, 2025 and 2024, respectively. The company also used $2.0 million for the repurchase of its common stock during the nine months ended September 30, 2025, as described in Note 8. In connection with the Signature acquisition in 2024, the Company received proceeds of $400 million under a new term loan facility and repaid $38.0 million of senior unsecured notes in conjunction with an amendment and restatement to the Loan Agreement described below. Fees paid for the amendment and restatement to the Loan Agreement in February 2024 totaled $9.2 million. The Company also used cash to pay dividends of $15.4 million for both the nine months ended September 30, 2025 and 2024.

Current wording

Cash used by financing activities from continuing operations was $20.7 million for the quarter ended March 31, 2026 compared to cash provided by financing activities from continuing operations of $1.0 million for the same period in 2025. Net borrowings (repayments) of the Company's revolving credit facility were $0.0 million and $13.0 million for the quarter ended March 31, 2026 and 2025, respectively. The Company also made repayments of the Term Loan A totaling $15.0 million and $5.0 million for the quarter ended March 31, 2026 and 2025, respectively. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $0.3 million for both the quarter ended March 31, 2026 and 2025. Cash paid for tax withholdings on vesting of stock compensation totaled $0.7 million and $0.8 million for the quarter ended March 31, 2026 and 2025, respectively. The Company also used $1.0 million for the repurchase of its common stock, for the quarter ended March 31, 2025. The Company also used cash to pay dividends of $5.1 million and $5.3 million for the quarter ended March 31, 2026 and 2025, respectively.

Previous wording

Amendment No. 1 did not change the existing revolving credit facility’s maturity date or $250 million borrowing limit, which includes a letter of credit subfacility and swingline subfacility. In connection with Amendment No. 1, the Company incurred deferred financing fees of $9.2 million.

Current wording

Amendment No. 1 did not change the existing revolving credit facility’s September 29, 2027 maturity date or $250 million borrowing limit, which includes a letter of credit subfacility and swingline subfacility. In connection with Amendment No. 1, the Company incurred deferred financing fees of $9.2 million.

Previous wording

On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At September 30, 2025, the remaining notional value of the Company's interest rate swap totaled $185.0 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 11.

Current wording

On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At March 31, 2026, the remaining notional value of the Company's interest rate swap totaled $180.0 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 11.