10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

OR

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 001-08524

Myers Industries, Inc.

(Exact name of registrant as specified in its charter)

Ohio	34-0778636
(State or other jurisdiction of	(IRS Employer Identification
incorporation or organization)	Number)
1293 South Main Street
Akron, Ohio	44301
(Address of principal executive offices)	(Zip code)

(330) 253-5592

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, without par value	MYE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☑
Non-Accelerated filer	☐	Smaller reporting company	☐
		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 or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑ .

The number of shares outstanding of the issuer’s common stock, without par value, as of April 29, 2022 was 36,343,873 shares.

TABLE OF CONTENTS

Part I — Financial Information	1
Item 1. Financial Statements	1
Condensed Consolidated Statements of Operations (Unaudited)	1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	2
Condensed Consolidated Statements of Financial Position (Unaudited)	3
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)	4
Condensed Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	22
Item 4. Controls and Procedures	22
Part II — Other Information	23
Item 1. Legal Proceedings	23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 6. Exhibits	24
Signature	25
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 101

Part I — Financial Information

Item 1. Financial Statements

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

	For the Quarter Ended March 31,
	2022			2021
Net sales	$	225,486		$	174,429
Cost of sales		153,558			124,016
Gross profit		71,928			50,413
Selling, general and administrative expenses		47,990			39,548
Gain on disposal of fixed assets		(467	)		—
Operating income		24,405			10,865
Interest expense, net		1,147			995
Income before income taxes		23,258			9,870
Income tax expense		5,921			2,565
Net income	$	17,337		$	7,305
Net income per common share:
Basic	$	0.48		$	0.20
Diluted	$	0.47		$	0.20

See notes to unaudited condensed consolidated financial statements.

1

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(Dollars in thousands)

	For the Quarter Ended March 31,
	2022		2021
Net income	$	17,337	$	7,305
Other comprehensive income (loss):
Foreign currency translation adjustment		570		411
Total other comprehensive income		570		411
Comprehensive income	$	17,907	$	7,716

See notes to unaudited condensed consolidated financial statements.

2

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position (Unaudited)

(Dollars in thousands)

	March 31,			December 31,
	2022			2021
Assets
Current Assets
Cash	$	17,576		$	17,655
Accounts receivable, less allowances of $2,998 and $3,229, respectively		132,689			100,691
Income tax receivable		—			2,517
Inventories, net		99,652			93,551
Prepaid expenses and other current assets		4,889			5,500
Total Current Assets		254,806			219,914
Property, plant, and equipment, net		92,204			92,049
Right of use asset - operating leases		27,870			29,285
Goodwill		88,951			88,778
Intangible assets, net		48,756			50,181
Deferred income taxes		106			106
Other		4,552			4,236
Total Assets	$	517,245		$	484,549
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	101,276		$	81,690
Accrued employee compensation		17,370			21,616
Income taxes payable		1,725			—
Accrued taxes payable, other than income taxes		2,418			2,759
Accrued interest		455			966
Other current liabilities		20,031			19,628
Operating lease liability - short-term		5,236			5,341
Finance lease liability - short-term		504			500
Total Current Liabilities		149,015			132,500
Long-term debt		92,450			90,945
Operating lease liability - long-term		22,548			23,815
Finance lease liability - long-term		9,308			9,437
Other liabilities		13,967			13,086
Deferred income taxes		5,819			5,441
Total Liabilities		293,107			275,224
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 36,329,922 and 36,262,259; net of treasury shares    of 6,222,535 and 6,290,198, respectively)		22,225			22,172
Additional paid-in capital		308,521			306,720
Accumulated other comprehensive loss		(14,831	)		(15,401	)
Retained deficit		(91,777	)		(104,166	)
Total Shareholders’ Equity		224,138			209,325
Total Liabilities and Shareholders’ Equity	$	517,245		$	484,549

See notes to unaudited condensed consolidated financial statements.

3

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(Dollars in thousands, except per share data)

	Quarter Ended March 31, 2022
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2022	$	22,172	$	306,720	$	(15,401	)	$	(104,166	)	$	209,325
Net income		—		—		—			17,337			17,337
Foreign currency translation    adjustment		—		—		570			—			570
Shares issued under incentive plans,    net of shares withheld for tax		53		74		—			—			127
Stock compensation expense		—		1,727		—			—			1,727
Declared dividends - $0.135 per share		—		—		—			(4,948	)		(4,948	)
Balance at March 31, 2022	$	22,225	$	308,521	$	(14,831	)	$	(91,777	)	$	224,138
	Quarter Ended March 31, 2021
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2021	$	21,939	$	300,852	$	(15,773	)	$	(117,918	)	$	189,100
Net income		—		—		—			7,305			7,305
Foreign currency translation    adjustment		—		—		411			—			411
Shares issued under incentive plans,    net of shares withheld for tax		115		1,122		—			—			1,237
Stock compensation expense		—		1,153		—			—			1,153
Declared dividends - $0.135 per share		—		—		—			(4,953	)		(4,953	)
Balance at March 31, 2021	$	22,054	$	303,127	$	(15,362	)	$	(115,566	)	$	194,253

See notes to unaudited condensed consolidated financial statements.

4

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

	For the Quarter Ended March 31,
	2022			2021
Cash Flows From Operating Activities
Net income	$	17,337		$	7,305
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization		5,321			5,261
Non-cash stock-based compensation expense		1,727			1,153
Gain on disposal of fixed assets		(467	)		—
Other		521			(1,280	)
Cash flows provided by (used for) working capital
Accounts receivable		(31,894	)		(10,901	)
Inventories		(5,980	)		(3,861	)
Prepaid expenses and other current assets		614			(4,854	)
Accounts payable and accrued expenses		20,113			13,765
Net cash provided by (used for) operating activities		7,292			6,588
Cash Flows From Investing Activities
Capital expenditures		(5,060	)		(5,238	)
Acquisition of business		—			(1,223	)
Proceeds from sale of property, plant and equipment		1,076			—
Net cash provided by (used for) investing activities		(3,984	)		(6,461	)
Cash Flows From Financing Activities
Net borrowings from revolving credit facility		1,500			33,000
Repayments of long-term debt		—			(40,000	)
Payments on finance lease		(124	)		(40	)
Cash dividends paid		(4,939	)		(4,906	)
Proceeds from issuance of common stock		471			1,900
Shares withheld for employee taxes on equity awards		(344	)		(663	)
Deferred financing fees		—			(1,095	)
Net cash provided by (used for) financing activities		(3,436	)		(11,804	)
Foreign exchange rate effect on cash		49			42
Net decrease in cash		(79	)		(11,635	)
Cash at January 1		17,655			28,301
Cash at March 31	$	17,576		$	16,666

See notes to unaudited condensed consolidated financial statements.

5

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(Dollars in thousands, except where otherwise indicated)

1. Summary of Significant Accounting Policies

Basis of Presentation

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 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 accounting principles generally accepted in the United States (“GAAP”) 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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of March 31, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the quarter ended March 31, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2022.

Accounting Standards Not Yet Adopted

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the Company, this ASU is effective January 1, 2023. Early adoption is permitted. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The effect of adopting this guidance will depend on the contract assets and liabilities associated with any future acquisitions.

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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 Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments 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 Loan Agreement, as defined in Note 11, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated 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. At March 31, 2022 and December 31, 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $39.3 million and $41.0 million, respectively.

The purchase price allocations associated with the July 30, 2021 acquisition of Trilogy Plastics, Inc. (“Trilogy”), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.

6

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) are as follows:

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		570			—			570
Net current-period other comprehensive income (loss)		570			—			570
Balance at March 31, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		411			—			411
Net current-period other comprehensive income (loss)		411			—			411
Balance at March 31, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected.

The changes in the allowance for credit losses for the quarters ended March 31, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		31			58
Write-offs and other		(268	)		(132	)
Balance at March 31	$	1,936		$	2,261

2. Revenue Recognition

The Company’s revenue by major market is as follows:

	For the Quarter Ended March 31, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	31,924	$	—	$	—		$	31,924
Vehicle		47,777		—		—			47,777
Food and beverage		34,680		—		—			34,680
Industrial		62,255		—		(11	)		62,244
Auto aftermarket		—		48,861		—			48,861
Total net sales	$	176,636	$	48,861	$	(11	)	$	225,486

7

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

	For the Quarter Ended March 31, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	25,395	$	—	$	—		$	25,395
Vehicle		42,192		—		—			42,192
Food and beverage		21,417		—		—			21,417
Industrial		40,889		—		(14	)		40,875
Auto aftermarket		—		44,550		—			44,550
Total net sales	$	129,893	$	44,550	$	(14	)	$	174,429

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include:

	March 31,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(1,062	)	$	(1,056	)	Accounts receivable
Right of return asset	$	372		$	361		Inventories, net
Customer deposits	$	(2,081	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(2,910	)	$	(3,378	)	Other current liabilities

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.2 million and $2.5 million for the quarters ended March 31, 2022 and 2021, respectively, and in Cost of Sales were approximately $1.6 million for each of the quarters ended March 31, 2022 and 2021.

Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.

3. Acquisitions

Trilogy Plastics

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and assemblies, which is included in the Materials Handling Segment. The Trilogy acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $34.5 million, including a working capital adjustment of $0.3 million that was paid in November 2021. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 11.

8

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The acquisition of Trilogy was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment. There were no measurement period adjustments recorded in the quarter ended March 31, 2022. The purchase accounting will be finalized within one year from the acquisition date.

Assets acquired:
Accounts receivable	$	3,929
Inventories		2,752
Prepaid expenses		63
Other assets - long term		93
Property, plant and equipment		4,903
Right of use asset - operating leases		8,685
Intangible assets		14,333
Goodwill		10,003
Assets acquired	$	44,761
Liabilities assumed:
Accounts payable	$	765
Accrued expenses		777
Operating lease liability - short term		576
Operating lease liability - long term		8,108
Total liabilities assumed		10,226
Net acquisition cost	$	34,535

The goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized, and the Company expects that the goodwill recognized for the acquisition will be deductible for tax purposes.

The intangible assets included above consist of the following:

	Fair Value		Weighted Average Estimated Useful Life
Customer relationships	$	12,463	18.0 years
Trade name		1,870	10.0 years
Total amortizable intangible assets	$	14,333

Elkhart Plastics

On November 10, 2020, the Company acquired the assets of Elkhart Plastics, Inc. ("Elkhart Plastics"), a manufacturer of engineered products for the RV, marine, agricultural, construction, truck and other industries, which is included in the Company’s Material Handling Segment. The Elkhart Plastics acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $63.8 million, including a working capital adjustment of $1.2 million, which was settled in 2021. The Company funded the acquisition using available cash.

9

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

4. Restructuring

In March 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”), a rotational molding business within the Material Handling Segment. The Company is consolidating certain manufacturing operations into a new facility in Bristol, Indiana (the “Ameri-Kart Plan”). In December 2019, as amended in March 2021, Ameri-Kart entered into a lease agreement for a newly constructed manufacturing and distribution facility in Bristol, Indiana. The building became substantially complete in March 2021 as defined in the lease agreement, and the 15-year finance lease of the new Bristol facility commenced. In connection with the lease agreement, Ameri-Kart agreed to sell its original Bristol facility and lease it back for a period of 5 years. During the second quarter of 2021, the sale of the original facility for net proceeds of $2.8 million was completed, which resulted in a gain of $1.0 million, and the lease back commenced. The Company has taken possession of the new Bristol facility and a portion of it is in service; however, construction remains in process as of March 31, 2022 to complete it for its full intended use, including moving equipment into the new Bristol facility from other locations, such as from the former manufacturing facility in Cassopolis, Michigan that was closed at December 31, 2021.

The Ameri-Kart Plan is expected to be substantially completed in 2022 and total restructuring costs expected to be incurred are approximately $1.8 million, primarily related to equipment relocation and facility shut down costs, which due to their nature will be expensed when incurred. The Company incurred $0.4 million of restructuring charges classified as Cost of sales during the quarter ended March 31, 2022 and $0.3 million related to loss on disposal of fixed assets. The accrual for unpaid restructuring expenses at March 31, 2022 and December 31, 2021 was $0.6 million and $0.5 million, respectively. No restructuring charges were incurred during the quarter ended March 31, 2021.

5. Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of inventories are valued using the LIFO method of determining cost. All other inventories are valued using the FIFO 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 inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. No adjustment to the LIFO reserve was recorded for the quarters ended March 31, 2022 or 2021.

Inventories consisted of the following:

	March 31,		December 31,
	2022		2021
Finished and in-process products	$	60,786	$	56,684
Raw materials and supplies		38,866		36,867
	$	99,652	$	93,551

6. Other Liabilities

The balance in Other Current Liabilities is comprised of the following:

	March 31,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,991	$	5,194
Dividends payable		5,450		5,441
Accrued litigation, claims and professional fees		1,053		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,108		6,787
	$	20,031	$	19,628

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The balance in Other Liabilities (long-term) is comprised of the following:

	March 31,		December 31,
	2022		2021
Environmental reserves	$	8,951	$	8,298
Supplemental executive retirement plan liability		1,103		1,176
Pension liability		390		421
Other long-term liabilities		3,523		3,191
	$	13,967	$	13,086

7. Goodwill and Intangible Assets

The change in goodwill for the quarter ended March 31, 2022 was as follows:

	Distribution		Material Handling		Total
January 1, 2022	$	7,648	$	81,130	$	88,778
Foreign currency translation		—		173		173
March 31, 2022	$	7,648	$	81,303	$	88,951

Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, non-competition agreements and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated useful lives. Indefinite-lived trade names had a carrying value of $9.8 million at both March 31, 2022 and December 31, 2021. Refer to Note 3 for the intangible assets acquired through the Trilogy acquisition in July 2021.

8. Net Income per Common Share

Net income per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

	For the Quarter Ended March 31,
	2022		2021
Weighted average common shares outstanding basic		36,280,268		35,993,331
Dilutive effect of stock options and restricted stock		230,766		297,500
Weighted average common shares outstanding diluted		36,511,034		36,290,831

Options to purchase 245,608 shares of common stock that were outstanding for the quarter ended March 31, 2022 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 were therefore anti-dilutive. There were no options to purchase shares of common stock excluded from the computation of diluted earnings for the quarter ended March 31, 2021.

11

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

9. Stock Compensation

The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was adopted by the Board of Directors on March 4, 2021, amended by the Board of Directors on April 20, 2021, and approved by shareholders in the annual shareholder meeting on April 29, 2021. The 2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to 2,000,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors.

Stock compensation expense was approximately $1.7 million and $1.2 million for the quarters ended March 31, 2022 and 2021, respectively. These expenses are included in Selling, General and Administrative expenses. Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at March 31, 2022 was approximately $10.8 million, which will be recognized over the next three years, as such compensation is earned. Outstanding options expire, if unexercised, ten years from the date of grant.

10. Contingencies

The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary.

Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows 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.

New Idria Mercury Mine

In September 2015, the U.S. Environmental Protection Agency (“EPA”) informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”). New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries, Inc. in 1987. As a result of the EPA Notice Letter, Buckhorn and the Company engaged in negotiations with the EPA with respect to a draft Administrative Order of Consent (“AOC”) proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives.

During the fourth quarter of 2018, Buckhorn and the EPA finalized the AOC and related Statement of Work (“SOW”) with regards to the New Idria Mine. The AOC is effective as of November 27, 2018, the date that it was executed by the EPA. The AOC and accompanying SOW document the terms, conditions and procedures for Buckhorn’s performance of the RI/FS. In addition, the AOC required $2 million of financial assurance to be provided to the EPA to secure Buckhorn's performance during the estimated life of the RI/FS. In January 2019, a letter of credit was provided to satisfy this assurance requirement. The AOC also includes provisions for payment of the EPA’s costs of oversight of the RI/FS. A draft work plan for the RI/FS, in accordance with the AOC and related SOW, was submitted to the EPA for review and approval in July 2019. Upon preparation of the draft work plan for the RI/FS, Buckhorn received preliminary estimates from its environmental consultants for the cost of the execution of the work plan. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur in 2022. Buckhorn believes it has insurance coverage that applies to the New Idria Mine and thus may be able to recover a portion of the estimated costs; however, as of March 31, 2022, Buckhorn has not recognized potential recovery in its condensed consolidated financial statements.

As part of the Notice Letter in 2015, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine from 1993 through February 2014. In December 2020, the EPA updated its claim to include past costs incurred from March 2014 through June 2020, which has been further revised in March 2022 to a total claim of $2.0 million. Buckhorn is continuing to evaluate and negotiate this claim with the EPA.

12

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, Buckhorn has recognized $11.8 million of costs, of which approximately $2.9 million has been paid through March 31, 2022, net of minor insurance recoveries. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. Expenses of $0.7 million were recorded related to the New Idria Mine in the quarter ended March 31, 2022, primarily related to updated estimates of the cost to perform the RI/FS. No expenses were recorded during the quarter ended March 31, 2021. As of March 31, 2022, Buckhorn has a total reserve of $8.9 million related to the New Idria Mine, of which $1.1 million is classified in Other Current Liabilities and $7.8 million in Other Liabilities (long-term).

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of Buckhorn’s liability are based on current facts, laws, regulations and technology. Estimates of Buckhorn’s environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation.

At this time, Buckhorn has not accrued for remediation costs in connection with this site because it is unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined.

New Almaden Mine

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area. Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project. The latest estimates received in 2016 from the County provided for an expanded scope and revised the estimate of costs for implementing the project to between $3.3 million and $4.4 million. No costs were incurred related to New Almaden in the quarters ended March 31, 2022 or 2021. As of March 31, 2022, the Company has a total reserve of $1.5 million related to the New Almaden Mine, of which $0.3 million is classified in Other Current Liabilities and $1.2 million in Other Liabilities (long-term).

The project has not yet been implemented though significant work on design and planning has been performed. The Company is currently awaiting notice from Santa Clara County on the expected timing of fieldwork to commence. As work on the project occurs, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.

Patent Infringement

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC in the United States District Court for the District of Kansas asserting infringement of two patents, breach of contract, and trade dress claims in relation to plastic gasoline containers Scepter manufactures and sells in the United States. Scepter Canada, Inc. was later added in a second amended complaint. A claim construction hearing was held on May 13, 2021 and the District Court held on June 23, 2021, that the claims of the patents were definite. On December 28, 2019, Scepter Canada, Inc. had filed petitions with the District Court for inter partes review (“IPR”) of the two patents asserted by No Spill, Inc. The U.S. Patent & Trademark Office (“USPTO”) instituted one IPR and denied the other. With respect to the instituted IPR, the USPTO’s Patent Trial and Appeal Board issued a final decision on July 2, 2021, finding the claims of the patent valid, which does not affect Scepter's primary defenses in the matter.

On June 28, 2021, the Scepter companies filed with the District Court a motion for leave to add new parties and assert counterclaims alleging antitrust related violations of certain provisions of the Sherman Act and Clayton Act. The Court granted the motion and the Scepter companies filed a Second Amended Complaint on October 1, 2021. On November 15, 2021, No Spill and the new counterclaim defendants filed a Motion to Dismiss the counterclaims, which was granted by the District Court on April 6, 2022. On January 6, 2022, the District Court bifurcated the patent infringement and invalidity issues from the antitrust and other issues in the case. The trial on patent infringement and invalidity is scheduled for March 2023.

13

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The Scepter companies intend to continue defending themselves vigorously in this matter. Based on available information, an unfavorable outcome is not considered to be probable, and any possible losses from an adverse outcome are not reasonably estimable.

11. Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

	March 31,		December 31,
	2022		2021
Loan Agreement	$	54,500	$	53,000
5.25% Senior Unsecured Notes due January 15, 2024		11,000		11,000
5.30% Senior Unsecured Notes due January 15, 2024		15,000		15,000
5.45% Senior Unsecured Notes due January 15, 2026		12,000		12,000
		92,500		91,000
Less unamortized deferred financing costs		50		55
		92,450		90,945
Less current portion long-term debt		—		—
Long-term debt	$	92,450	$	90,945

In March 2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement (collectively, the “Loan Agreement”) dated March 2017. The Sixth Amendment increased the senior revolving credit facility’s borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the financial and other covenants and provisions. Amounts borrowed under the credit facility are secured by pledges of stock of certain of the Company’s foreign subsidiaries and guaranties of certain of its domestic subsidiaries. In connection with the Sixth Amendment, the Company incurred $1.1 million of deferred financing fees, which are included in Other Assets (long-term).

As of March 31, 2022, the Company had $191.8 million available under the Loan Agreement. The Company had $3.7 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement.

The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11.0 million to $15.0 million, with interest rates ranging from 5.25% to 5.45%, payable semiannually, and maturing between January 2024 and January 2026. At March 31, 2022, $38.0 million of the Notes were outstanding. In January 2021, the Company repaid a $40.0 million note upon maturity with a combination of cash and proceeds under the Loan Agreement.

The weighted average interest rate on borrowings under the Company’s long-term debt was 4.12% and 5.33% for the quarters ended March 31, 2022 and 2021, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs.

As of March 31, 2022, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted) and an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense).

12. Income Taxes

The Company’s effective tax rate was 25.5% for the quarter ended March 31, 2022 compared to 26.0% for the quarter ended March 31, 2021. The effective income tax rate for both periods was different than the Company’s statutory rate, primarily due to state taxes and non-deductible expenses.

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $0.8 million at March 31, 2022 and December 31, 2021.

14

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of March 31, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015. The Company’s 2017 U.S. Federal tax return is currently under audit by the Internal Revenue Service (“IRS”). The IRS began the examination in 2019 and there have been no changes resulting from this audit as of March 31, 2022. The Company is subject to state and local examinations for tax years of 2017 through 2020. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2016 through 2020.

13. Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to fourteen years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in right of use asset – operating leases (“ROU assets”), operating lease liability – short term, and operating lease liability – long term and finance leases are included property, plant and equipment, finance lease liability – short term, and finance lease liability – long term in the Condensed Consolidated Statement of Financial Position (Unaudited).

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include:

		March 31,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	27,870	$	29,285
Finance lease assets	Property, plant and equipment, net		9,592		9,765
Total lease assets		$	37,462	$	39,050
Liabilities:
Current	Operating lease liability - short-term	$	5,236	$	5,341
Long-term	Operating lease liability - long-term		22,548		23,815
Total operating lease liabilities		$	27,784	$	29,156
Current	Finance lease liability - short-term	$	504	$	500
Long-term	Finance lease liability - long-term		9,308		9,437
Total finance lease liabilities			9,812		9,937
Total lease liabilities		$	37,596	$	39,093

The components of lease expense include:

		For the Quarter Ended March 31,
Lease Cost	Classification	2022		2021
Operating lease cost (1)	Cost of sales	$	1,356	$	1,070
Operating lease cost (1)	Selling, general and administrative expenses		611		551
Finance lease cost
Amortization expense	Cost of sales		172		57
Interest expense on lease liabilities	Interest expense, net		86		30
Total lease cost		$	2,225	$	1,708

(1)Includes short-term leases and variable lease costs, which are immaterial

15

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Supplemental cash flow information related to leases was as follows:

	For the Quarter Ended March 31,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,610	$	1,252
Operating cash flows from finance leases	$	86	$	30
Financing cash flows from finance leases	$	124	$	40
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	3,523
Finance leases	$	—	$	10,339

Lease Term and Discount Rate	March 31, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		7.16			7.27
Finance leases		13.93			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%

Maturity of Lease Liabilities - As of March 31, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	4,623		$	630		$	5,253
2023		5,581			840			6,421
2024		4,127			861			4,988
2025		3,334			865			4,199
2026		2,848			865			3,713
After 2026		10,780			8,408			19,188
Total lease payments		31,293			12,469			43,762
Less: interest		(3,509	)		(2,657	)		(6,166	)
Present value of lease liabilities	$	27,784		$	9,812		$	37,596

(1)Represents amounts due in 2022 after March 31, 2022

The Company has operating leases for four facilities within the Material Handling Segment that are with a related party. Total right of use assets related to these related party leases were $3.2 million and $3.6 million at March 31, 2022 and December 31, 2021, respectively. Total operating lease liabilities related to these related party leases were $3.0 million and $3.4 million at March 31, 2022 and December 31, 2021, respectively. Total lease expense from these related party leases was $0.4 million in each of the quarters ended March 31, 2022 and March 31, 2021.

14. Segments

The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker (“CODM”) evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly 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 Material Handling Segment’s products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, among others. Products are sold both directly to end-users and through distributors. The acquisitions of Trilogy and Elkhart Plastics, described in Note 3, are included in the Material Handling Segment.

16

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and five regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire re-treaders, and government agencies.

Total sales from foreign business units were approximately $12.7 million and $11.0 million for the quarters ended March 31, 2022 and 2021, respectively.

Summarized segment detail for the quarters ended March 31, 2022 and 2021 are presented in the following table:

	For the Quarter Ended March 31,
	2022			2021
Net Sales
Material Handling	$	176,636		$	129,893
Distribution		48,861			44,550
Inter-company sales		(11	)		(14	)
Total net sales	$	225,486		$	174,429
Operating income
Material Handling	$	31,220		$	16,927
Distribution		3,301			1,438
Corporate (1)		(10,116	)		(7,500	)
Total operating income		24,405			10,865
Interest expense, net		(1,147	)		(995	)
Income before income taxes	$	23,258		$	9,870

(1)In the quarter ended March 31, 2021, the Company recognized $0.8 million of executive severance, of which $0.5 million was recognized in the Distribution Segment and $0.3 million was recognized in Corporate. This executive severance cost includes $0.5 million of severance and benefits and $0.3 million of charges for acceleration of stock compensation.

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q and the information incorporated by reference contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company’s actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements.

Specific factors that could cause such a difference include, without limitation, impacts from the novel coronavirus (“COVID-19”) pandemic on our business, operations, customers and capital position; the impact of COVID-19 on local, national and global economic conditions; the effects of various governmental responses to the COVID-19 pandemic; 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 and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.

Executive Overview

The Company conducts its business activities in two reportable segments: The Material Handling Segment and the Distribution Segment.

The Company designs, manufactures, and markets a variety of plastic 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, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally 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.

The Company’s results of operations for the quarter ended March 31, 2022 are discussed below. The current economic environment includes heightened risks from inflation, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including the conflict between Russia and Ukraine, and the COVID-19 pandemic. Russia’s invasion of Ukraine in the first quarter of 2022 has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. While many of the public safety measures in response to the COVID-19 pandemic have been lifted or relaxed, it is possible that new or previously lifted measures could be implemented in the future. Through the date of this report, the Company’s businesses continued to operate during the pandemic. However, 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 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.

18

Results of Operations:

Comparison of the Quarter Ended March 31, 2022 to the Quarter Ended March 31, 2021

Net Sales:

(dollars in millions)	Quarter Ended March 31,
Segment	2022			2021			Change		% Change
Material Handling	$	176,636		$	129,893		$	46,743		36.0	%
Distribution		48,861			44,550			4,311		9.7	%
Inter-company sales		(11	)		(14	)		3
Total net sales	$	225,486		$	174,429		$	51,057		29.3	%

Net sales for the quarter ended March 31, 2022 were $225.5 million, an increase of $51.1 million or 29.3% compared to the quarter ended March 31, 2021. Net sales increased due to higher pricing of $35.3 million and higher volume/mix of $4.9 million. Net sales also increased due to $10.9 million of incremental sales from the acquisition of Trilogy on July 30, 2021, included in the Material Handling Segment. Trilogy’s annual sales were approximately $35 million. Beginning in February 2021, the Company began to implement a series of pricing increases across a majority of its portfolio of products in response to rising raw material and other production costs.

Net sales in the Material Handling Segment increased $46.7 million or 36.0% for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021. Net sales increased due to higher pricing of $31.0 million and higher volume/mix of $4.8 million. Net sales also increased due to $10.9 million of incremental sales from the acquisition of Trilogy on July 30, 2021.

Net sales in the Distribution Segment increased $4.3 million or 9.7% for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021, primarily due to higher pricing.

Cost of Sales & Gross Profit:

	Quarter Ended March 31,
(dollars in millions)	2022			2021			Change		% Change
Cost of sales	$	153,558		$	124,016		$	29,542		23.8	%
Gross profit	$	71,928		$	50,413		$	21,515		42.7	%
Gross profit as a percentage of sales		31.9	%		28.9	%

Gross profit increased $21.5 million, or 42.7%, for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021, due to increased contribution from higher pricing and volume/mix as described under Net Sales above and the acquisition of Trilogy on July 30, 2021. Partially offsetting these contributions were higher raw material costs, increased labor costs, and unfavorable sales mix. The contribution from pricing actions more than offset higher raw material costs, which led to a favorable price-to-cost relationship. As a result, gross profit margin was 31.9% for the quarter ended March 31, 2022 compared with 28.9% for the quarter ended March 31, 2021.

Selling, General and Administrative Expenses:

	Quarter Ended March 31,
(dollars in millions)	2022			2021			Change		% Change
SG&A expenses	$	47,990		$	39,548		$	8,442		21.3	%
SG&A expenses as a percentage of sales		21.3	%		22.7	%

Selling, general and administrative (“SG&A”) expenses for the quarter ended March 31, 2022 were $48.0 million, an increase of $8.4 million or 21.3% compared to the same period in the prior year. Increases in SG&A expenses in the first quarter 2022 were primarily due to $4.7 million of higher salaries, benefits and incentive compensation, $1.2 million of higher variable selling expenses, $1.2 million of higher facility costs and $1.2 million of incremental SG&A from the acquisition of Trilogy on July 30, 2021.

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Net Interest Expense:

	Quarter Ended March 31,
(dollars in millions)	2022			2021			Change		% Change
Net interest expense	$	1,147		$	995		$	152		15.3	%
Average outstanding borrowings, net	$	105,852		$	73,833		$	32,019		43.4	%
Weighted-average borrowing rate		4.12	%		5.33	%

Net interest expense for the quarter ended March 31, 2022 was $1.1 million, an increase of $0.2 million, or 15.3%, compared with $1.0 million for the quarter ended March 31, 2021. The higher net interest expense was due to higher average outstanding borrowings in the current year, partially offset by the lower borrowing rate.

Income Taxes:

	Quarter Ended March 31,
(dollars in millions)	2022			2021
Income from continuing operations before income taxes	$	23,258		$	9,870
Income tax expense	$	5,921		$	2,565
Effective tax rate		25.5	%		26.0	%

The Company’s effective tax rate was 25.5% for the quarter ended March 31, 2022, compared to 26.0% for the quarter ended March 31, 2021. The decrease in the effective tax rate was primarily the result of state income taxes.

Liquidity and Capital Resources:

The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Loan Agreement (defined below). At March 31, 2022, the Company had $17.6 million of cash, $191.8 million available under the Loan Agreement and outstanding debt of $102.3 million, including the finance lease liability of $9.8 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and uncertainty caused by COVID-19 and potential macroeconomic effects stemming from the current geopolitical climate. The Company believes that cash on hand, cash flows from operations and available capacity under its Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth, including selective acquisitions.

Operating Activities

Net cash provided by operating activities was $7.3 million for the quarter ended March 31, 2022, compared to $6.6 million in the same period in 2021. The increase was primarily due to higher net income in the current year partially offset by higher working capital driven by increases in accounts receivable and inventory.

Investing Activities

Net cash used by investing activities was $4.0 million for the quarter ended March 31, 2022 compared to cash used of $6.5 million for the same period in 2021. In 2022, the Company received proceeds of $1.1 million from the sale of fixed assets. In 2021, the Company paid the working capital adjustment of $1.2 million related to the November 10, 2020 acquisition of Elkhart Plastics as discussed in Note 3. Capital expenditures were $5.1 million and $5.2 million for the quarter ended March 31, 2022 and 2021, respectively. Full year 2022 capital expenditures are expected to be approximately $25 million to $28 million.

Financing Activities

Cash used by financing activities was $3.4 million for the quarter ended March 31, 2022 compared to $11.8 million used for financing activities for the same period in 2021. Net borrowings on the credit facility for the quarter ended March 31, 2022 and 2021 were $1.5 million and $33.0 million. In 2021, the Company repaid a$40.0 million Senior Unsecured Note when it matured in January 2021 with a combination of cash and proceeds under the Loan Agreement (defined below). Fees paid for the amendment and extension of the Loan Agreement in March 2021 totaled $1.1 million . Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $0.5 million and $1.9 million for the quarter ended March 31, 2022 and 2021, respectively. The Company also used cash to pay dividends of $4.9 million for each of the quarters ended March 31, 2022 and 2021.

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Credit Sources

In March 2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement (collectively, the “Loan Agreement”) dated March 2017. The Sixth Amendment increased the senior revolving credit facility’s borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the financial and other covenants and provisions.

As of March 31, 2022, $191.8 million was available under the Loan Agreement, after borrowings and $3.7 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case plus the applicable margin as set forth in the Loan Agreement.

At March 31, 2022, $38 million face value of Senior Unsecured Notes are outstanding. The series of notes range in face value from $11 million to $15 million, with interest rates ranging from 5.25% to 5.45%, payable semiannually. As described in Note 11, $26.0 million of the Senior Unsecured Notes mature on January 15, 2024 and $12.0 million mature on January 15, 2026.

As of March 31, 2022, the Company was in compliance with all of its debt covenants. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of and for the period ended March 31, 2022 are shown in the following table:

	Required Level	Actual Level
Interest Coverage Ratio	3.00 to 1 (minimum)		21.04
Leverage Ratio	3.25 to 1 (maximum)		1.16

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

The Company has certain financing arrangements that require interest payments based on floating interest rates, and to that extent, the Company’s financial results are subject to changes in the market rate of interest. Borrowings under the Loan Agreement bear interest at the LIBOR, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement. At present, the Company has not entered into any interest rate swaps or other derivative instruments to fix the interest rate on any portion of its financing arrangements with floating rates. The Financial Conduct Authority in the United Kingdom has stated that it will not require banks to submit LIBOR beyond June 2023. The Company does not anticipate a significant impact to its financial position as a result of this action. Based on current debt levels at March 31, 2022, if market interest rates increase one percent, the Company’s annual variable interest expense would increase approximately $0.5 million.

Foreign Currency Exchange Risk

Certain of the Company’s subsidiaries operate in foreign countries and their financial results are subject to exchange rate movements. The Company has operations in Canada with foreign currency exposure, primarily due to U.S. dollar sales made from businesses in Canada to customers in the United States. The Company has a systematic program to limit its exposure to fluctuations in exchange rates related to certain assets and liabilities of its operations in Canada that are denominated in U.S. dollars. The net exposure generally ranges from $1 million to $3 million. The foreign currency contracts and arrangements created under this program are not designated as hedged items under ASC 815, Derivatives and Hedging, and accordingly, the changes in the fair value of the foreign currency arrangements, which have been immaterial, are recorded in the Condensed Consolidated Statements of Operations (Unaudited). The Company’s foreign currency arrangements are typically three months or less and are settled before the end of a reporting period. At March 31, 2022, the Company had no foreign currency arrangements or contracts in place.

Commodity Price Risk

The Company uses certain commodity raw materials, primarily plastic resins, and other commodities, such as natural gas, in its operations. The cost of operations can be affected by changes in the market for these commodities, particularly plastic resins. The Company currently has no derivative contracts to hedge changes in raw material pricing. The Company may from time to time enter into forward buy positions for certain utility costs, which were not material at March 31, 2022. Significant future increases in the cost of plastic resin or other adverse changes in the general economic environment could have a material adverse impact on the Company’s financial position, results of operations or cash flows.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

The Company carries out a variety of on-going procedures, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2022.

Changes in Internal Control Over Financial Reporting

On July 30, 2021, the Company acquired the assets of Trilogy. As permitted by SEC rules and regulations, the scope of management’s evaluation of internal control over financial reporting as of March 31, 2022 did not include an evaluation of the internal control over financial reporting of Trilogy. However, we are extending our oversight and monitoring processes that support our review of internal control over financial reporting to include Trilogy’s operations.

During the quarter ended March 31, 2022, there have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – Other Information

Item 1. Legal Proceedings

Certain legal proceedings in which the Company is involved are discussed in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report, and Part I, Item 3 of the Company's Annual Report on Form 10-K for the year ended December 31, 2021. The Company’s disclosures relating to legal proceedings in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report is incorporated into Part II of this report by reference. 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. We believe that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on our consolidated financial position, results of operations or cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) The following table presents information regarding the Company’s stock repurchase plan during the quarter ended March 31, 2022:

	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of the Publicly Announced Plans or Programs		Maximum number of Shares that may yet be Purchased Under the Plans or Programs (1)
1/1/2022 to 1/31/2022		—	$	—		5,547,665		2,452,335
2/1/2022 to 2/28/2022		—		—		5,547,665		2,452,335
3/1/2022 to 3/31/2022		—		—		5,547,665		2,452,335

(1)On July 11, 2013, the Board authorized the repurchase of up to 5.0 million shares of the Company’s common stock. This authorization was in addition to the 2011 Board authorized repurchase of up to 5.0 million shares. The Company completed the repurchase of approximately 2.0 million shares in 2011 pursuant to Rule 10b5-1 plans, which were adopted pursuant to the 2011 authorized share repurchase.

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Item 6. Exhibits

3.1	Myers Industries, Inc. Second Amended and Restated Articles of Incorporation. Reference is made to Exhibit 3.1 to Form 8-K filed with the SEC on April 29, 2021.
3.2	Myers Industries, Inc. Amended and Restated Code of Regulations. Reference is made to Exhibit 3.2 to Form 8-K filed with the SEC on April 29, 2021.
10.1	Form of 2022 Restricted Stock Unit Award Agreement for Executive Officers under the 2021 Long-Term Incentive Plan of Myers Industries, Inc.* (filed herewith)
10.2	Form of 2022 Performance Stock Unit Award Agreement for Executive Officers under the 2021 Long-Term Incentive Plan of Myers Industries, Inc.* (filed herewith)
31.1	Certification of Michael P. McGaugh, President and Chief Executive Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Sonal P. Robinson, Executive Vice President and Chief Financial Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Michael P. McGaugh, President and Chief Executive Officer, and Sonal P. Robinson, Executive Vice President and Chief Financial Officer, of Myers Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from Myers Industries, Inc. Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, formatted in inline XBRL includes: (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Financial Position, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

* Indicates executive compensation plan or arrangement.

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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 the undersigned thereunto duly authorized.

	MYERS INDUSTRIES, INC.
May 5, 2022	/s/ Sonal P. Robinson
	Sonal P. Robinson
	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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EX-10.1

Exhibit 10.1

RESTRICTED STOCK UNIT AWARD AGREEMENT

(2022)

This Restricted Stock Unit Award Agreement (the “Agreement”) is made as of the 16th day of March, 2022 between Myers Industries, Inc., an Ohio corporation (the “Company”), and ______________an employee (the “Employee”) of the Company or one or more of its Subsidiaries.

WHEREAS, the Company has heretofore adopted the 2021 Long-Term Incentive Plan of Myers Industries, Inc. (the “Plan”); and

WHEREAS, it is a requirement of the Plan that a Restricted Stock Unit Award Agreement be executed to evidence the Restricted Stock Units (“Stock Units”) awarded to the Employee.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree as follows:

1.Grant of Stock Units. The Company hereby grants to the Employee an Award of ________ Stock Units on the terms and conditions set forth herein and in the Plan. Each Stock Unit represents the right of the Employee to receive an amount equal to the Fair Market Value of a Share on the date that payment is made with respect to the Stock Unit.

2.Rights and Restrictions with Respect to Stock Units.

(a)The Stock Units granted pursuant to this Agreement represent an unfunded and unsecured obligation of the Company, and the Employee shall have no rights with respect to the Stock Units other than those of a general creditor of the Company. Prior to the issuance of Shares as payment with respect to the Stock Units, the Employee shall have no rights of ownership in or to the Shares underlying the Stock Units and shall not be deemed the beneficial owner of such Shares.

(b)Except as otherwise provided in this Agreement, none of the Stock Units may be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of; provided, however, the right to receive payment with respect to the Stock Units may be transferred upon the death of the Employee to the Employee’s Successor.

3.Vesting of the Stock Units.

(a)The Stock Units subject to this Agreement shall vest in three equal installments on March 16 of the first three years after the date of this Agreement (each such date, a “Vesting Date”) or, if earlier upon any of the following “Acceleration Events”: (i) termination of the Employee’s employment with the Company and its Subsidiaries by reason of his or her death, disability, or retirement, or (ii) termination of the Employee’s employment with the Company and its Subsidiaries without Cause (as defined herein unless defined in any written agreement or severance plan between the Company and the Employee in effect at the time of such termination of employment) if by the Company or for Good Reason (as defined herein unless defined in any written agreement or severance plan between the Company and the Employee in effect at the time of such termination of employment) if by the Employee, in either case following a Change in Control of the Company.

(b)In the event of the termination of the Employee’s employment with the Company and its Subsidiaries for any reason other than (i) by reason of the Employee’s death, disability or retirement on or after the Employee’s sixty-fifth birthday prior to the earlier of the third anniversary of the date of this Agreement or (ii) by the Company without Cause or by the Employee for Good Reason, in either case following a Change in Control of the Company, the Stock Units that have not vested as of the date of such termination shall be immediately and automatically forfeited to the Company without notice for no consideration.

(c)For purposes of this Agreement, “disability” shall mean a physical or mental incapacity that prevents the Employee from performing his or her duties for a total of one hundred eighty (180) days in any twenty four (24) month period, and “retirement” shall mean retiring at age 65 or older with at least three years of service (as credited for purposes of the Company’s qualified retirement plan).

4.Payment and Issuance of Shares.

(a)General Provision. On each Vesting Date or, if earlier, upon an Acceleration Event (each such Vesting Date or Acceleration Event, a “Payment Date”), or within thirty (30) days thereafter in the case of an Acceleration Event or by March 15 of the year in which such Vesting Date occurs, the Company shall make a payment to the Employee of one Share for every Stock Unit that became vested as of such Payment Date (and with respect to which a payment has not previously been made pursuant to this Section 4) as payment with respect to each such vested Stock Unit.

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(b)Dividends. If any dividends are declared on the Company’s Shares while the Stock Units subject to this Agreement are outstanding, the Company shall make a payment to the Employee on each Payment Date, or within thirty (30) days thereafter in the case of an Acceleration Event or by March 15 of the year in which such Vesting Date occurs, with respect to each Stock Unit that became vested as of such Payment Date, in an amount equal to the aggregate amount of dividends that would have been payable to the Employee with respect to each such vested Stock Unit had such vested Stock Unit instead been an issued and outstanding Share on the record date of any such dividends (the “Dividend Equivalent Amount”), but only to the extent that the Dividend Equivalent Amount has not previously been paid to the Employee with respect to such vested Stock Unit. At the Company’s discretion, payment of the Dividend Equivalent Amount may be made in cash or in Shares having a Fair Market Value on the Payment Date equal to the Dividend Equivalent Amount.

(c)Manner of Delivery. At the Company’s election, the Company shall cause the Shares delivered as payment with respect to the vested Stock Units to either be evidenced by a book entry account maintained by the Company’s stock transfer agent (the “Transfer Agent”), by a certificate issued in the Employee’s name, or by delivery to the Employee’s individual share holdings account in the Company’s equity plan manager’s system (“Employee’s Account”).

(d)Shareholder Status. Upon the earlier of the date the Shares are evidenced in a book entry account maintained by the Transfer Agent, the date a certificate for the Shares are issued in the Employee’s name, or the transfer to the Employee’s Account, the Employee shall be a shareholder with respect to the Shares and shall have all of the rights of a shareholder with respect to the Shares, including the right to vote the Shares and to receive any dividends and other distributions paid with respect to the Shares.

(e)Mandatory Holding Period. Employee shall maintain beneficial ownership of all Shares delivered as payment with respect to vested Stock Units, less any Shares disposed of in order to satisfy income tax withholding requirements, until the earlier to occur of the first anniversary of the Vesting Date of such Shares or Employee’s termination of employment for any reason. For purposes hereof, beneficial ownership shall be determined in accordance with Section 16 of the Securities Exchange Act of 1934.

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(f)Cash Payment Election. Notwithstanding anything to the contrary herein, following a Change of Control of the Company, the Company or its successor, at its election, may elect to make any payment required to be made to the Employee pursuant to this Section 4 in cash rather than Shares.

5.Taxes. The Company shall have the right to satisfy any obligation of the Company to withhold taxes or other amounts with respect to the Stock Units by withholding Shares otherwise deliverable to the Employee with respect to the Stock Units having a Fair Market Value equal to the amount of such tax or other withholdings, provided the amount will not result in liability accounting for the Company. Furthermore, the Company may elect to deduct from any cash payment made to the Employee pursuant to this Agreement the amount of any taxes or other amounts which the Company is or will be required to withhold with respect to such cash payment.

6.No Right to Employment. Nothing in this Agreement shall confer upon the Employee any right to continue in the employ of the Company or any of its Subsidiaries or interfere with or restrict in any way with the right of the Company or any such Subsidiary to terminate his or her employment at any time for any reason whatsoever, with or without Cause.

7.Acknowledgement and Section 409A Compliance.

(a)Employee acknowledges that neither the Company nor any of the Company’s affiliates, officers, shareholders, employees, agents or representatives has provided or is providing the undersigned with tax advice regarding the Stock Units subject to this Agreement or any other matter, and the Company has urged the Employee to consult with his or her own tax advisor with respect to the income taxation consequences associated with the Stock Units subject to this Agreement.

(b)It is intended that this Award of Stock Units comply with Section 409A of the Code, and this Award and the terms of this Agreement shall be interpreted and administered in a manner consistent with such intent, although in no event shall the Company have any liability to the Employee if this Award or the terms of this Agreement are determined not to comply with Section 409A of the Code. For purposes of this Agreement, termination of employment means a “separation from service” within the meaning of Treasury Regulations Section 1.409A-1(h).

(c)Whenever payment under this Agreement specifies a payment period with reference to a number of days (e.g., payment may be made within thirty (30) days after the Payment Date), the actual date of payment within the specified period will be determined solely by the Company.

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(d)If the Employee is a “specified employee” within the meaning of Section 409A of the Code at the time of his or her “separation from service” within the meaning of Section 409A of the Code, then any payment otherwise required to be made to him under this Agreement on account of his or her separation from service, to the extent such payment (after taking into account all exclusions applicable to such payment under Section 409A of the Code) is properly treated as deferred compensation subject to Section 409A of the Code, shall not be made until the first business day after (i) the expiration of six months from the date of the Employee’s separation from service, or (ii) if earlier, the date of the Employee’s death.

(e)The Employee’s right to receive each installment of Stock Units shall be treated as separate payments for purposes of Section 409A of the Code.

8.Cause and Good Reason. Unless otherwise defined in a written agreement between the Employee and the Company, for purposes of this Agreement the terms “Cause” and “Good Reason” shall have the following meanings:

(a)“Cause” means:

(i)The commission by the Employee (evidenced by a conviction or written, voluntary and freely given confession) of a criminal act constituting a felony involving fraud or moral turpitude;

(ii)the repeated failure of the Employee to follow the reasonable directives of the Employee’s superiors after having been given written notice thereof; or

(iii)commission by the Employee of any act, which both (A) constitutes gross negligence or willful misconduct and (B) results in material economic harm to the Company or has a materially adverse effect on the Company’s operations, properties or business relationships.

(b)“Good Reason” means the occurrence of one or more of the following conditions arising without the consent of the Employee:

(i)a material diminution in the Employee’s annual base salary;

(ii)a material diminution in the Employee’s duties and responsibilities; or

(iii)a material change in the geographic location at which the Employee must perform his or her Duties.

In order for a condition to constitute a Good Reason, the Employee must provide written notification to the Company of the existence of the condition within forty-five (45) days of the initial existence of the condition (or within forty-five (45) days

5

following the Employee actually becoming aware of such condition, if later), upon the notice of which the Company shall have a period of thirty (30) days during which it may remedy the condition. Furthermore, to constitute a Good Reason, the Employee must voluntarily terminate employment with the Company within one hundred eighty (180) days following the initial existence of the condition (or within one hundred eighty (180) days following the Employee actually becoming aware of such condition. The parties agree that “Good Reason” will not be deemed to have occurred merely because the Company becomes a subsidiary or division of another entity following a Change in Control.

9.Incorporation of Provisions of the Plan. All of the provisions of the Plan pursuant to which the Stock Units are granted are hereby incorporated by reference and made a part hereof as if specifically set forth herein, and to the extent of any conflict between this Agreement and the terms contained in the Plan, the Plan shall control. To the extent any capitalized terms are not otherwise defined herein, they shall have the meanings set forth in the Plan.

10.Invalidity of Provisions. The invalidity or unenforceability of any provision of this Agreement as a result of a violation of any state or federal law, or of the rules or regulations of any governmental regulatory body, shall not affect the validity or enforceability of the remainder of this Agreement.

11.Waiver and Modification. The provisions of this Agreement may not be waived or modified unless such waiver or modification is in writing and signed by the parties hereto.

12.Interpretation. All decisions or interpretations made by the Committee with regard to any question arising under the Plan or this Agreement as provided by Section 4 of the Plan, shall be binding and conclusive on the Company and the Employee.

13.Multiple Counterparts. This Agreement may be signed in multiple counterparts, all of which together shall constitute an original agreement. The execution by one party of any counterpart shall be sufficient execution by that party, whether or not the same counterpart has been executed by any other party.

14.Governing Law. This Agreement shall be governed by the laws of the State of Ohio.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed, and the Employee has hereunto set his or her hand, all as of the day and year first above written.

MYERS INDUSTRIES, INC.
By:	/s/ Michael P McGaugh
Its:	President & Chief Executive Officer
Employee

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EX-10.2

Exhibit 10.2

Performance STOCK UNIT AWARD AGREEMENT

(2022)

This Performance Stock Unit Award Agreement (the “Agreement”) is made as of the 16th day of March, 2022 between Myers Industries, Inc., an Ohio corporation (the “Company”), and __________________, an employee (the “Employee”) of the Company or one or more of its Subsidiaries.

WHEREAS, the Company has heretofore adopted the 2021 Long-Term Incentive Plan of Myers Industries, Inc. (the “Plan”); and

WHEREAS, it is a requirement of the Plan that a Performance Stock Unit Award Agreement be executed to evidence the Performance Stock Units awarded to the Employee.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree as follows:

1.Grant of Performance Stock Units. The Company hereby grants to the Employee an Award of Performance Stock Units (such number to be determined as set forth in Section 4(b) based on a target award of ____________ Performance Stock Units) on the terms and conditions set forth herein and in the Plan. Each Performance Stock Unit represents the right of the Employee to receive the payment of one Share on the date that payment is made.

2.Defined Terms. Capitalized terms not defined herein shall have the meanings ascribed to them in the Plan. For purposes of this Agreement, the following terms shall have the meanings set forth below:

(a) “Adjusted EBITDA” means the Company’s earnings before interest, taxes, depreciation and amortization in each case as set forth on the Company’s audited financial

1

statements for the fiscal year with such adjustments as may be approved by the Compensation Committee of theCompany’s Board of Directors, in its discretion.

(b)Unless otherwise defined in a written agreement between Employee and the Company, “Cause” means:

(i)The commission by the Employee (evidenced by a conviction or written, voluntary and freely given confession) of a criminal act constituting a felony or involving fraud or moral turpitude;

(ii)The repeated failure of the Employee to follow the reasonable directives of the Employee’s superiors after having been given written notice thereof; or

(iii)Commission by the Employee of any act, which both (A) constitutes gross negligence or willful misconduct and (B) has a materially adverse effect on the Company’s operations, properties or business relationships.

(c)“Disability” means a physical or mental incapacity that prevents the Employee from performing his or her duties for a total of one hundred eighty (180) days in any twenty four (24) month period.

(d)Unless otherwise defined in a written agreement between the Employee and the Company, “Good Reason” means the occurrence of one or more of the following conditions arising without the consent of the Employee:

(i)A material diminution in the Employee’s annual base salary;

(ii)A material diminution in the Employee’s duties and responsibilities; or

(iii)A material change in the geographic location at which the Employee must perform his duties.

In order for a condition to constitute Good Reason, the Employee must provide written notice to the Company of the existence of the condition within forty-five (45) days of the initial existence of the condition (or within forty-five (45) days following the Employee actually becoming aware of such condition, if later), upon receipt of such notice,

2

the Company shall have a period of thirty (30) days during which it may remedy the condition. Furthermore, to constitute Good Reason, the Employee must voluntarily terminate employment with the Company within one hundred eighty (180) days following the initial existence of the condition (or within one hundred eighty (180) days following the Employee actually becoming aware of such condition, if later). The parties agree that “Good Reason” will not be deemed to have occurred merely because the Company becomes a subsidiary or division of another entity following a Change of Control.

(e)“Performance Goals” mean the levels of cumulative Adjusted EBITDA and Relative TSR established by the Compensation Committee of the Company’s Board of Directors for the Performance Period.

(f)“Performance Period” means the three calendar year period commencing on January 1 of the year of this Agreement and ending on December 31 of the third calendar year thereafter, provided, however, that the performance period for purposes of determining Relative TSR (“rTSR Performance Period”) means the three year calendar period commencing on March 16, 2022 and ending on March 15, 2025.

(g)“Relative TSR” or “rTSR” means the Total Shareholder Return (“TSR”) of the Company during the rTSR Performance Period compared to the TSR of all companies in the Industrials and Materials industry sectors of the S&P 600, as identified by their 2-digit GICS (“Comparator Group”) during the rTSR Performance Period, expressed as a percentile of the Company’s TSR relative to the Comparator Group’s TSR, respectively, for the rTSR Performance Period. TSR shall be calculated as follows

Ending Stock Price(1) – Beginning Stock Price(2) + Reinvested Dividends(3)

Beginning Stock Price

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(1) Average stock price over last 20 trading days of rTSR Performance Period

(2) Average stock price over last 20 trading days preceding the start of the rTSR Performance Period

(3) Dividends are assumed to be reinvested as of the ex-dividend date

(h)“Retirement” means retiring at age 65 or older with at least three years of service (as credited for purposes of the Company’s qualified retirement plan).

3.Rights and Restrictions with Respect to Performance Stock Units.

(a)The Performance Stock Units granted pursuant to this Agreement represent an unfunded and unsecured obligation of the Company, and the Employee shall have no rights with respect to the Performance Stock Units other than those of a general creditor of the Company. Prior to the issuance of Shares as payment with respect to the Performance Stock Units, the Employee shall have no voting, dividend or other rights of ownership in or to the Shares underlying the Performance Stock Units and shall not be deemed the beneficial owner of such Shares.

(b)Except as otherwise provided in this Agreement, none of the Performance Stock Units may be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of; provided, however, the right to receive payment with respect to the Performance Stock Units may be transferred upon the death of the Employee to the Employee’s Successor.

4.Vesting of and Earning the Performance Stock Units.

(a)The Performance Stock Units subject to this Agreement shall vest on March 16, 2025 (the “Vesting Date”) or, if earlier, upon any of the following “Acceleration Events”: (i) termination of the Employee’s employment with the Company and its Subsidiaries by reason of his or her death or Disability, subject to the additional provisions of Section 5(b), (ii) Retirement, subject to the additional provisions of Section 5(c), or (iii)

4

termination of the Employee’s employment with the Company and its Subsidiaries by the Company without Cause (as defined herein unless defined in any written agreement or severance plan between the Company and the Employee in effect at the time of such termination of employment) or by the Employee for Good Reason (as defined herein unless defined in any written agreement or severance plan between the Company and the Employee in effect at the time of such termination of employment), in either case following a Change in Control of the Company, subject to the additional provisions of Section 5(c).

(b)The number of Performance Stock Units earned by the Employee shall be determined based on the relative level of achievement of the Performance Goals during the Performance Period as set forth in Exhibit A or, upon an Acceleration Event, as described in Section 5 (such number of Performance Stock Units, the “Earned Performance Stock Units”). Performance between two stated levels will be interpolated when determining the percentage of the Earned Percentage Stock Units. The determination of the Earned Performance Stock Units shall be made by the Compensation Committee of the Board of Directors in its sole discretion as soon as administratively possible after the Company’s audited financial statements are available for the final fiscal year of the Performance Period. Any Performance Stock Units or rights to Performance Stock Units that do not become Earned Performance Stock Units as of the Vesting Date or earlier upon an Acceleration Event shall be immediately and automatically forfeited to the Company without notice and without consideration.

(c)In the event of the termination of the Employee’s employment by the Company for Cause (as defined herein unless defined in any written agreement between the Company and the Employee in effect at the time of such termination of employment) or by the Employee without Good Reason (as defined herein unless defined in any written

5

agreement between the Company and the Employee in effect at the time of such termination of employment) prior to the earlier of the Vesting Date or an Acceleration Event, the Employee’s right to any Performance Stock Units subject to this Agreement shall be immediately and automatically forfeited to the Company without notice for no consideration. For the avoidance of doubt, a termination by the Employee without Good Reason will not include a termination by reason of the Employee’s death, Disability, Retirement, or a termination by the Employee for Good Reason.

5.Determination of Earned Performance Units; Payment and Issuance of Shares.

(a)General Provision. As soon as administratively practicable following the determination of the achievement of the Performance Goals for the Performance Period, but in no event later than March 15 following the end of the last Performance Period (the “Payment Date”), the Company shall make a payment to the Employee of one Share for every Earned Performance Stock Unit as payment with respect to each such Earned Performance Stock Unit.

(b)Death or Disability. If the Employee’s employment with the Company is terminated prior to the last day of the Performance Period by reason of an Acceleration Event based on Employee’s death or Disability, then (i) for purposes of determining the number of Earned Performance Stock Units as of such Acceleration Event, the achievement of the Performance Goals shall be deemed to be at the target level of 100%, (ii) the number of Earned Performance Units that vest shall be pro-rated by multiplying the total number of Earned Performance Units determined under Section 5(b)(i) by a fraction, the numerator of which is the number of whole months the Employee was employed from the date of this Agreement until the date of death or Disability and the denominator of which is 36, (iii) the Company shall make a payment to the Employee of one Share for every Earned

6

Performance Stock Unit as soon as reasonably practicable following such Acceleration Event, but in no event later than thirty (30) days after the date of the Acceleration Event, and (iv) the Employee will not be entitled to any further payment pursuant to this Agreement.

(c) Other Acceleration Events. If an Acceleration Event occurs prior to the Vesting Date (i) by reason of Retirement, (ii) by the Company without Cause (as defined herein unless defined in any written agreement between the Company and the Employee in effect at the time of such termination of employment), or (iii) by the Employee for Good Reason (as defined herein unless defined in any written agreement between the Company and the Employee in effect at the time of such termination of employment), the determination of the number of Earned Performance Stock Units, and any payment to be made to the Employee with respect to any Earned Performance Stock Units, shall be made as soon as reasonably practicable following the determination of the achievement of the Performance Goals for the Performance Period, but in no event later than March 15 of the calendar year following the end of the last Performance Period.

(d)Dividends. If any dividends are declared on the Company’s Shares while the Performance Stock Units subject to this Agreement are outstanding, the Company shall make a payment to the Employee on the Payment Date or the Acceleration Event, as the case may be, with respect to each Performance Stock Unit that became a Earned Performance Stock Unit on the Payment Date or the Acceleration Event, in an amount equal to the aggregate amount of dividends that would have been payable to the Employee with respect to each such Earned Performance Stock Unit had such Earned Stock Performance Unit instead been an issued and outstanding Share on the record date of any such dividends (the “Dividend Equivalent Amount”). At the Company’s discretion,

7

payment of the Dividend Equivalent Amount may be made in cash or in Shares having a Fair Market Value on the Payment Date or the Acceleration Event, as the case may be, equal to the Dividend Equivalent Amount. In no event will dividends or any dividend equivalents be paid on unvested Performance Stock Units which are forfeited.

(e)Manner of Delivery. At the Company’s election, the Company shall cause the Shares delivered as payment with respect to the Earned Performance Stock Units to either be evidenced by a book entry account maintained by the Company’s stock transfer agent (the “Transfer Agent”), by a certificate issued in the Employee’s name, or by delivery to the Employee’s individual share holdings account in the Company’s equity plan manager’s system (“Employee’s Account”).

(f)Shareholder Status. Upon the earlier of the date the Shares are evidenced in a book entry account maintained by the Transfer Agent, the date a certificate for the Shares are issued in the Employee’s name, or the date transferred to Employee’s Account, the Employee shall be a shareholder with respect to the Shares and shall have all of the rights of a shareholder with respect to the Shares, including the right to vote the Shares and to receive any dividends and other distributions paid with respect to the Shares.

(g)Mandatory Holding Period. Employee shall maintain beneficial ownership of all Shares delivered as payment with respect to Earned Performance Stock Units, less any Shares disposed of in order to satisfy income tax withholding requirements, the until the earlier to occur of the first anniversary of the Vesting Date of such Shares or Employee’s termination of employment for any reason. For purposes hereof, beneficial ownership shall be determined in accordance with Section 16 of the Securities Exchange Act of 1934.

(h)Cash Payment Election. Notwithstanding anything to the contrary herein, following a Change of Control of the Company, the Company or its successor, at its

8

election, may elect to make any payment required to be made to the Employee pursuant to this Section 5 in cash rather than Shares.

6.Taxes. The Company shall have the right to satisfy any obligation of the Company to withhold taxes or other amounts with respect to the Earned Performance Stock Units by withholding Shares otherwise deliverable to the Employee with respect to the Earned Performance Stock Units having a Fair Market Value equal to the amount of such tax or other withholdings, provided that the amount will not result in liability accounting for the Company. Furthermore, the Company may elect to deduct from any cash payment made to the Employee pursuant to this Agreement the amount of any taxes or other amounts which the Company is or will be required to withhold with respect to such cash payment.

7.No Right to Employment. Nothing in this Agreement shall confer upon the Employee any right to continue in the employ of the Company or any of its Subsidiaries or interfere with or restrict in any way with the right of the Company or any such Subsidiary to terminate his employment at any time for any reason whatsoever, with or without Cause.

8.Acknowledgement and Section 409A Compliance.

(a)Employee acknowledges that neither the Company nor any of the Company’s affiliates, officers, shareholders, employees, agents or representatives has provided or is providing the undersigned with tax advice regarding the Performance Stock Units subject to this Agreement or any other matter, and the Company has urged the Employee to consult with his own tax advisor with respect to the income taxation consequences associated with the Performance Stock Units subject to this Agreement.

(b)It is intended that this Award of Performance Stock Units comply with Section 409A of the Code, and this Award and the terms of this Agreement shall be interpreted and administered in a manner consistent with such intent, although in no event shall the

9

Company have any liability to the Employee if this Award or the terms of this Agreement are determined not to comply with Section 409A of the Code. For purposes of this Agreement, termination of employment means a “separation from service” within the meaning of Treasury Regulations Section 1.409A-1(h).

(c)Whenever payment under this Agreement specifies a payment period with reference to a number of days (e.g., payment may be made within thirty (30) days after the Payment Date), the actual date of payment within the specified period will be determined solely by the Company.

(d)If the Employee is a “specified employee” within the meaning of Section 409A of the Code at the time of his “separation from service” within the meaning of Section 409A of the Code, then any payment otherwise required to be made to him under this Agreement on account of his separation from service, to the extent such payment (after taking into account all exclusions applicable to such payment under Section 409A of the Code) is properly treated as deferred compensation subject to Section 409A of the Code, shall not be made until the first business day after (i) the expiration of six months from the date of the Employee’s separation from service, or (ii) if earlier, the date of the Employee’s death.

9.Incorporation of Provisions of the Plan. All of the provisions of the Plan pursuant to which the Performance Stock Units are granted are hereby incorporated by reference and made a part hereof as if specifically set forth herein, and to the extent of any conflict between this Agreement and the terms contained in the Plan, the Plan shall control. To the extent any capitalized terms are not otherwise defined herein, they shall have the meanings set forth in the Plan.

10.Invalidity of Provisions. The invalidity or unenforceability of any provision of this Agreement as a result of a violation of any state or federal law, or of the rules or regulations

10

of any governmental regulatory body, shall not affect the validity or enforceability of the remainder of this Agreement.

11.Waiver and Modification. The provisions of this Agreement may not be waived or modified unless such waiver or modification is in writing and signed by the parties hereto.

12.Interpretation. All decisions or interpretations made by the Committee with regard to any question arising under the Plan or this Agreement as provided by Section 4 of the Plan, shall be binding and conclusive on the Company and the Employee.

13.Multiple Counterparts. This Agreement may be signed in multiple counterparts, all of which together shall constitute an original agreement. The execution by one party of any counterpart shall be sufficient execution by that party, whether or not the same counterpart has been executed by any other party.

14.Governing Law. This Agreement shall be governed by the laws of the State of Ohio.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed, and the Employee has hereunto set his hand, all as of the day and year first above written.

MYERS IN DUSTRIES, INC.
By:	/s/ Michael P. McGaugh
Its:	President and Chief Executive Officer
		,	Employee

11

Exhibit A

 

Myers Industries Performance Stock Unit Measures

in millions

	2022-2024 Performance Targets
	Threshold	Target	Maximum
Payout %	50.0%	100.0%	200.0%
3-year Cumulative EBITDA (in millions)

Myers rTSR Percentile Ranking	TSR Modifier (% of Target Units)
75th percentile or higher	125%
25th percentile to 74.99th percentile	100%
24.99th percentile or lower	75%

12

EX-31.1

Exhibit 31.1

Certification Per Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael P. McGaugh, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Myers Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2022	/s/ Michael P. McGaugh
		Michael P. McGaugh, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Per Section 302 of the Sarbanes-Oxley Act of 2002

I, Sonal P. Robinson, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Myers Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2022	/s/ Sonal P. Robinson
		Sonal P. Robinson, Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Myers Industries, Inc. (the Company) on Form 10-Q for the period ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Michael P. McGaugh, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:

(1) The Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2022 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 5, 2022	/s/ Michael P. McGaugh
		Michael P. McGaugh, President and Chief Executive Officer

Exhibit 32.1

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Myers Industries, Inc. (the Company) on Form 10-Q for the period ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Sonal P. Robinson, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:

(1) The Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2022 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 5, 2022	/s/ Sonal P. Robinson
		Sonal P. Robinson, Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Entity Registrant Name	Myers Industries, Inc.
Entity Central Index Key	0000069488
Trading Symbol	MYE
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		36,343,873
Entity File Number	001-08524
Entity Tax Identification Number	34-0778636
Entity Address, Address Line One	1293 South Main Street
Entity Address, City or Town	Akron
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44301
City Area Code	330
Local Phone Number	253-5592
Entity Incorporation, State or Country Code	OH
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, without par value
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net sales	$ 225,486	$ 174,429
Cost of sales	153,558	124,016
Gross profit	71,928	50,413
Selling, general and administrative expenses	47,990	39,548
Gain on disposal of fixed assets	(467)	0
Operating income	24,405	10,865
Interest expense, net	1,147	995
Income before income taxes	23,258	9,870
Income tax expense	5,921	2,565
Net income	$ 17,337	$ 7,305
Net income per common share:
Basic	$ 0.48	$ 0.20
Diluted	$ 0.47	$ 0.20

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 17,337	$ 7,305
Other comprehensive income (loss):
Foreign currency translation adjustment	570	411
Total other comprehensive income (loss)	570	411
Comprehensive income	$ 17,907	$ 7,716

XML

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current Assets
Cash	$ 17,576	$ 17,655
Accounts receivable, less allowances of $2,998 and $3,229, respectively	132,689	100,691
Income tax receivable	0	2,517
Inventories, net	99,652	93,551
Prepaid expenses and other current assets	4,889	5,500
Total Current Assets	254,806	219,914
Property, plant, and equipment, net	92,204	92,049
Right of use asset - operating leases	27,870	29,285
Goodwill	88,951	88,778
Intangible assets, net	48,756	50,181
Deferred income taxes	106	106
Other	4,552	4,236
Total Assets	517,245	484,549
Current Liabilities
Accounts payable	101,276	81,690
Accrued employee compensation	17,370	21,616
Income taxes payable	1,725	0
Accrued taxes payable, other than income taxes	2,418	2,759
Accrued interest	455	966
Other current liabilities	20,031	19,628
Operating lease liability - short-term	5,236	5,341
Finance lease liability - short-term	504	500
Total Current Liabilities	149,015	132,500
Long-term debt	92,450	90,945
Operating lease liability - long-term	22,548	23,815
Finance lease liability - long-term	9,308	9,437
Other liabilities	13,967	13,086
Deferred income taxes	5,819	5,441
Total Liabilities	293,107	275,224
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 36,227,529 and 35,921,025; net of treasury shares of 6,324,928 and 6,631,432, respectively)	22,225	22,172
Additional paid-in capital	308,521	306,720
Accumulated other comprehensive loss	(14,831)	(15,401)
Retained deficit	(91,777)	(104,166)
Total Shareholders’ Equity	224,138	209,325
Total Liabilities and Shareholders’ Equity	$ 517,245	$ 484,549

XML

Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current Assets
Allowance for doubtful accounts receivable, current	$ 2,998	$ 3,229
Shareholders’ Equity
Preferred Shares, shares authorized (in shares)	1,000,000	1,000,000
Preferred Shares, shares issued (in shares)	0	0
Preferred Shares, shares outstanding (in shares)	0	0
Common Shares, shares authorized (in shares)	60,000,000	60,000,000
Common Shares, shares outstanding (in shares)	36,329,922	36,262,259
Common shares, treasury (in shares)	6,222,535	6,290,198

XML

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Shares [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Deficit [Member]
Beginning balance at Dec. 31, 2020	$ 189,100	$ 21,939	$ 300,852	$ (15,773)	$ (117,918)
Stockholders' Equity [Roll Forward]
Net income	7,305	0	0	0	7,305
Foreign currency translation adjustment	411	0	0	411	0
Shares issued under incentive plans, net of shares withheld for tax	1,237	115	1,122	0	0
Stock compensation expense	1,153	0	1,153	0	0
Declared dividends	(4,953)	0	0	0	(4,953)
Ending balance at Mar. 31, 2021	194,253	22,054	303,127	(15,362)	(115,566)
Beginning balance at Dec. 31, 2021	209,325	22,172	306,720	(15,401)	(104,166)
Stockholders' Equity [Roll Forward]
Net income	17,337	0	0	0	17,337
Foreign currency translation adjustment	570	0	0	(570)	0
Shares issued under incentive plans, net of shares withheld for tax	127	53	74	0	0
Stock compensation expense	1,727	0	1,727	0	0
Declared dividends	(4,948)	0	0	0	(4,948)
Ending balance at Mar. 31, 2022	$ 224,138	$ 22,225	$ 308,521	$ (14,831)	$ (91,777)

XML

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Retained Deficit [Member]
Dividends declared per share	$ 0.135	$ 0.135

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows From Operating Activities
Net income	$ 17,337	$ 7,305
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization	5,321	5,261
Non-cash stock-based compensation expense	1,727	1,153
Gain on disposal of fixed assets	(467)	0
Other	521	(1,280)
Cash flows provided by (used for) working capital
Accounts receivable	(31,894)	(10,901)
Inventories	(5,980)	(3,861)
Prepaid expenses and other current assets	614	(4,854)
Accounts payable and accrued expenses	20,113	13,765
Net cash provided by (used for) operating activities	7,292	6,588
Cash Flows From Investing Activities
Capital expenditures	(5,060)	(5,238)
Acquisition of business	0	(1,223)
Proceeds from sale of property, plant and equipment	1,076	0
Net cash provided by (used for) investing activities	(3,984)	(6,461)
Cash Flows From Financing Activities
Net borrowings from revolving credit facility	1,500	33,000
Repayments of long-term debt		(40,000)
Payments on finance lease	(124)	(40)
Cash dividends paid	(4,939)	(4,906)
Proceeds from issuance of common stock	471	1,900
Shares withheld for employee taxes on equity awards	(344)	(663)
Deferred financing fees	0	(1,095)
Net cash provided by (used for) financing activities	(3,436)	(11,804)
Foreign exchange rate effect on cash	49	42
Net (decrease) increase in cash	(79)	(11,635)
Cash at January 1	17,655	28,301
Cash at March 31	$ 17,576	$ 16,666

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

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 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 accounting principles generally accepted in the United States (“GAAP”) 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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of March 31, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the quarter ended March 31, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2022.

Accounting Standards Not Yet Adopted

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the Company, this ASU is effective January 1, 2023. Early adoption is permitted. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The effect of adopting this guidance will depend on the contract assets and liabilities associated with any future acquisitions.

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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 Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments 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 Loan Agreement, as defined in Note 11, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated 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. At March 31, 2022 and December 31, 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $39.3 million and $41.0 million, respectively.

The purchase price allocations associated with the July 30, 2021 acquisition of Trilogy Plastics, Inc. (“Trilogy”), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) are as follows:

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		570			—			570
Net current-period other comprehensive income (loss)		570			—			570
Balance at March 31, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		411			—			411
Net current-period other comprehensive income (loss)		411			—			411
Balance at March 31, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected.

The changes in the allowance for credit losses for the quarters ended March 31, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		31			58
Write-offs and other		(268	)		(132	)
Balance at March 31	$	1,936		$	2,261

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Revenue Recognition

3 Months Ended

Mar. 31, 2022

Revenue Recognition [Abstract]

Revenue Recognition

2. Revenue Recognition

The Company’s revenue by major market is as follows:

	For the Quarter Ended March 31, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	31,924	$	—	$	—		$	31,924
Vehicle		47,777		—		—			47,777
Food and beverage		34,680		—		—			34,680
Industrial		62,255		—		(11	)		62,244
Auto aftermarket		—		48,861		—			48,861
Total net sales	$	176,636	$	48,861	$	(11	)	$	225,486

	For the Quarter Ended March 31, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	25,395	$	—	$	—		$	25,395
Vehicle		42,192		—		—			42,192
Food and beverage		21,417		—		—			21,417
Industrial		40,889		—		(14	)		40,875
Auto aftermarket		—		44,550		—			44,550
Total net sales	$	129,893	$	44,550	$	(14	)	$	174,429

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include:

	March 31,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(1,062	)	$	(1,056	)	Accounts receivable
Right of return asset	$	372		$	361		Inventories, net
Customer deposits	$	(2,081	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(2,910	)	$	(3,378	)	Other current liabilities

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.2 million and $2.5 million for the quarters ended March 31, 2022 and 2021, respectively, and in Cost of Sales were approximately $1.6 million for each of the quarters ended March 31, 2022 and 2021.

Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.

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Acquisitions

3 Months Ended

Mar. 31, 2022

Business Combinations [Abstract]

Acquisitions

3. Acquisitions

Trilogy Plastics

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and assemblies, which is included in the Materials Handling Segment. The Trilogy acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $34.5 million, including a working capital adjustment of $0.3 million that was paid in November 2021. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 11.

The acquisition of Trilogy was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment. There were no measurement period adjustments recorded in the quarter ended March 31, 2022. The purchase accounting will be finalized within one year from the acquisition date.

Assets acquired:
Accounts receivable	$	3,929
Inventories		2,752
Prepaid expenses		63
Other assets - long term		93
Property, plant and equipment		4,903
Right of use asset - operating leases		8,685
Intangible assets		14,333
Goodwill		10,003
Assets acquired	$	44,761
Liabilities assumed:
Accounts payable	$	765
Accrued expenses		777
Operating lease liability - short term		576
Operating lease liability - long term		8,108
Total liabilities assumed		10,226
Net acquisition cost	$	34,535

The goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized, and the Company expects that the goodwill recognized for the acquisition will be deductible for tax purposes.

The intangible assets included above consist of the following:

	Fair Value		Weighted Average Estimated Useful Life
Customer relationships	$	12,463	18.0 years
Trade name		1,870	10.0 years
Total amortizable intangible assets	$	14,333

Elkhart Plastics

On November 10, 2020, the Company acquired the assets of Elkhart Plastics, Inc. ("Elkhart Plastics"), a manufacturer of engineered products for the RV, marine, agricultural, construction, truck and other industries, which is included in the Company’s Material Handling Segment. The Elkhart Plastics acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $63.8 million, including a working capital adjustment of $1.2 million, which was settled in 2021. The Company funded the acquisition using available cash.

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Restructuring

3 Months Ended

Mar. 31, 2022

Restructuring And Related Activities [Abstract]

Restructuring

4. Restructuring

In March 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”), a rotational molding business within the Material Handling Segment. The Company is consolidating certain manufacturing operations into a new facility in Bristol, Indiana (the “Ameri-Kart Plan”). In December 2019, as amended in March 2021, Ameri-Kart entered into a lease agreement for a newly constructed manufacturing and distribution facility in Bristol, Indiana. The building became substantially complete in March 2021 as defined in the lease agreement, and the 15-year finance lease of the new Bristol facility commenced. In connection with the lease agreement, Ameri-Kart agreed to sell its original Bristol facility and lease it back for a period of 5 years. During the second quarter of 2021, the sale of the original facility for net proceeds of $2.8 million was completed, which resulted in a gain of $1.0 million, and the lease back commenced. The Company has taken possession of the new Bristol facility and a portion of it is in service; however, construction remains in process as of March 31, 2022 to complete it for its full intended use, including moving equipment into the new Bristol facility from other locations, such as from the former manufacturing facility in Cassopolis, Michigan that was closed at December 31, 2021.

The Ameri-Kart Plan is expected to be substantially completed in 2022 and total restructuring costs expected to be incurred are approximately $1.8 million, primarily related to equipment relocation and facility shut down costs, which due to their nature will be expensed when incurred. The Company incurred $0.4 million of restructuring charges classified as Cost of sales during the quarter ended March 31, 2022 and $0.3 million related to loss on disposal of fixed assets. The accrual for unpaid restructuring expenses at March 31, 2022 and December 31, 2021 was $0.6 million and $0.5 million, respectively. No restructuring charges were incurred during the quarter ended March 31, 2021.

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Inventories

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories

5. Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of inventories are valued using the LIFO method of determining cost. All other inventories are valued using the FIFO 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 inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. No adjustment to the LIFO reserve was recorded for the quarters ended March 31, 2022 or 2021.

Inventories consisted of the following:

	March 31,		December 31,
	2022		2021
Finished and in-process products	$	60,786	$	56,684
Raw materials and supplies		38,866		36,867
	$	99,652	$	93,551

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Other Liabilities

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Other Liabilities

. Other Liabilities

The balance in Other Current Liabilities is comprised of the following:

	March 31,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,991	$	5,194
Dividends payable		5,450		5,441
Accrued litigation, claims and professional fees		1,053		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,108		6,787
	$	20,031	$	19,628

The balance in Other Liabilities (long-term) is comprised of the following:

	March 31,		December 31,
	2022		2021
Environmental reserves	$	8,951	$	8,298
Supplemental executive retirement plan liability		1,103		1,176
Pension liability		390		421
Other long-term liabilities		3,523		3,191
	$	13,967	$	13,086

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

. Goodwill and Intangible Assets

The change in goodwill for the quarter ended March 31, 2022 was as follows:

	Distribution		Material Handling		Total
January 1, 2022	$	7,648	$	81,130	$	88,778
Foreign currency translation		—		173		173
March 31, 2022	$	7,648	$	81,303	$	88,951

Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, non-competition agreements and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated useful lives. Indefinite-lived trade names had a carrying value of $9.8 million at both March 31, 2022 and December 31, 2021. Refer to Note 3 for the intangible assets acquired through the Trilogy acquisition in July 2021.

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Net Income per Common Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Income per Common Share

. Net Income per Common Share

Net income per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

	For the Quarter Ended March 31,
	2022		2021
Weighted average common shares outstanding basic		36,280,268		35,993,331
Dilutive effect of stock options and restricted stock		230,766		297,500
Weighted average common shares outstanding diluted		36,511,034		36,290,831

Options to purchase 245,608 shares of common stock that were outstanding for the quarter ended March 31, 2022 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 were therefore anti-dilutive. There were no options to purchase shares of common stock excluded from the computation of diluted earnings for the quarter ended March 31, 2021.

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Stock Compensation

3 Months Ended

Mar. 31, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Compensation

9. Stock Compensation

The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was adopted by the Board of Directors on March 4, 2021, amended by the Board of Directors on April 20, 2021, and approved by shareholders in the annual shareholder meeting on April 29, 2021. The 2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to 2,000,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors.

Stock compensation expense was approximately $1.7 million and $1.2 million for the quarters ended March 31, 2022 and 2021, respectively. These expenses are included in Selling, General and Administrative expenses. Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at March 31, 2022 was approximately $10.8 million, which will be recognized over the next three years, as such compensation is earned. Outstanding options expire, if unexercised, ten years from the date of grant.

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Contingencies

3 Months Ended

Mar. 31, 2022

Commitments And Contingencies Disclosure [Abstract]

Contingencies

10. Contingencies

The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary.

Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows 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.

New Idria Mercury Mine

In September 2015, the U.S. Environmental Protection Agency (“EPA”) informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”). New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries, Inc. in 1987. As a result of the EPA Notice Letter, Buckhorn and the Company engaged in negotiations with the EPA with respect to a draft Administrative Order of Consent (“AOC”) proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives.

During the fourth quarter of 2018, Buckhorn and the EPA finalized the AOC and related Statement of Work (“SOW”) with regards to the New Idria Mine. The AOC is effective as of November 27, 2018, the date that it was executed by the EPA. The AOC and accompanying SOW document the terms, conditions and procedures for Buckhorn’s performance of the RI/FS. In addition, the AOC required $2 million of financial assurance to be provided to the EPA to secure Buckhorn's performance during the estimated life of the RI/FS. In January 2019, a letter of credit was provided to satisfy this assurance requirement. The AOC also includes provisions for payment of the EPA’s costs of oversight of the RI/FS. A draft work plan for the RI/FS, in accordance with the AOC and related SOW, was submitted to the EPA for review and approval in July 2019. Upon preparation of the draft work plan for the RI/FS, Buckhorn received preliminary estimates from its environmental consultants for the cost of the execution of the work plan. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur in 2022. Buckhorn believes it has insurance coverage that applies to the New Idria Mine and thus may be able to recover a portion of the estimated costs; however, as of March 31, 2022, Buckhorn has not recognized potential recovery in its condensed consolidated financial statements.

As part of the Notice Letter in 2015, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine from 1993 through February 2014. In December 2020, the EPA updated its claim to include past costs incurred from March 2014 through June 2020, which has been further revised in March 2022 to a total claim of $2.0 million. Buckhorn is continuing to evaluate and negotiate this claim with the EPA.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, Buckhorn has recognized $11.8 million of costs, of which approximately $2.9 million has been paid through March 31, 2022, net of minor insurance recoveries. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. Expenses of $0.7 million were recorded related to the New Idria Mine in the quarter ended March 31, 2022, primarily related to updated estimates of the cost to perform the RI/FS. No expenses were recorded during the quarter ended March 31, 2021. As of March 31, 2022, Buckhorn has a total reserve of $8.9 million related to the New Idria Mine, of which $1.1 million is classified in Other Current Liabilities and $7.8 million in Other Liabilities (long-term).

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of Buckhorn’s liability are based on current facts, laws, regulations and technology. Estimates of Buckhorn’s environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation.

At this time, Buckhorn has not accrued for remediation costs in connection with this site because it is unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined.

New Almaden Mine

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area. Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project. The latest estimates received in 2016 from the County provided for an expanded scope and revised the estimate of costs for implementing the project to between $3.3 million and $4.4 million. No costs were incurred related to New Almaden in the quarters ended March 31, 2022 or 2021. As of March 31, 2022, the Company has a total reserve of $1.5 million related to the New Almaden Mine, of which $0.3 million is classified in Other Current Liabilities and $1.2 million in Other Liabilities (long-term).

The project has not yet been implemented though significant work on design and planning has been performed. The Company is currently awaiting notice from Santa Clara County on the expected timing of fieldwork to commence. As work on the project occurs, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.

Patent Infringement

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC in the United States District Court for the District of Kansas asserting infringement of two patents, breach of contract, and trade dress claims in relation to plastic gasoline containers Scepter manufactures and sells in the United States. Scepter Canada, Inc. was later added in a second amended complaint. A claim construction hearing was held on May 13, 2021 and the District Court held on June 23, 2021, that the claims of the patents were definite. On December 28, 2019, Scepter Canada, Inc. had filed petitions with the District Court for inter partes review (“IPR”) of the two patents asserted by No Spill, Inc. The U.S. Patent & Trademark Office (“USPTO”) instituted one IPR and denied the other. With respect to the instituted IPR, the USPTO’s Patent Trial and Appeal Board issued a final decision on July 2, 2021, finding the claims of the patent valid, which does not affect Scepter's primary defenses in the matter.

On June 28, 2021, the Scepter companies filed with the District Court a motion for leave to add new parties and assert counterclaims alleging antitrust related violations of certain provisions of the Sherman Act and Clayton Act. The Court granted the motion and the Scepter companies filed a Second Amended Complaint on October 1, 2021. On November 15, 2021, No Spill and the new counterclaim defendants filed a Motion to Dismiss the counterclaims, which was granted by the District Court on April 6, 2022. On January 6, 2022, the District Court bifurcated the patent infringement and invalidity issues from the antitrust and other issues in the case. The trial on patent infringement and invalidity is scheduled for March 2023.

The Scepter companies intend to continue defending themselves vigorously in this matter. Based on available information, an unfavorable outcome is not considered to be probable, and any possible losses from an adverse outcome are not reasonably estimable.

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Long-Term Debt and Loan Agreements

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Long-Term Debt and Loan Agreements

11. Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

	March 31,		December 31,
	2022		2021
Loan Agreement	$	54,500	$	53,000
5.25% Senior Unsecured Notes due January 15, 2024		11,000		11,000
5.30% Senior Unsecured Notes due January 15, 2024		15,000		15,000
5.45% Senior Unsecured Notes due January 15, 2026		12,000		12,000
		92,500		91,000
Less unamortized deferred financing costs		50		55
		92,450		90,945
Less current portion long-term debt		—		—
Long-term debt	$	92,450	$	90,945

In March 2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement (collectively, the “Loan Agreement”) dated March 2017. The Sixth Amendment increased the senior revolving credit facility’s borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the financial and other covenants and provisions. Amounts borrowed under the credit facility are secured by pledges of stock of certain of the Company’s foreign subsidiaries and guaranties of certain of its domestic subsidiaries. In connection with the Sixth Amendment, the Company incurred $1.1 million of deferred financing fees, which are included in Other Assets (long-term).

As of March 31, 2022, the Company had $191.8 million available under the Loan Agreement. The Company had $3.7 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement.

The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11.0 million to $15.0 million, with interest rates ranging from 5.25% to 5.45%, payable semiannually, and maturing between January 2024 and January 2026. At March 31, 2022, $38.0 million of the Notes were outstanding. In January 2021, the Company repaid a $40.0 million note upon maturity with a combination of cash and proceeds under the Loan Agreement.

The weighted average interest rate on borrowings under the Company’s long-term debt was 4.12% and 5.33% for the quarters ended March 31, 2022 and 2021, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs.

As of March 31, 2022, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted) and an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense).

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Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The Company’s effective tax rate was 25.5% for the quarter ended March 31, 2022 compared to 26.0% for the quarter ended March 31, 2021. The effective income tax rate for both periods was different than the Company’s statutory rate, primarily due to state taxes and non-deductible expenses.

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $0.8 million at March 31, 2022 and December 31, 2021.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of March 31, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015. The Company’s 2017 U.S. Federal tax return is currently under audit by the Internal Revenue Service (“IRS”). The IRS began the examination in 2019 and there have been no changes resulting from this audit as of March 31, 2022. The Company is subject to state and local examinations for tax years of 2017 through 2020. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2016 through 2020.

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Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

13. Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to fourteen years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in right of use asset – operating leases (“ROU assets”), operating lease liability – short term, and operating lease liability – long term and finance leases are included property, plant and equipment, finance lease liability – short term, and finance lease liability – long term in the Condensed Consolidated Statement of Financial Position (Unaudited).

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include:

		March 31,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	27,870	$	29,285
Finance lease assets	Property, plant and equipment, net		9,592		9,765
Total lease assets		$	37,462	$	39,050
Liabilities:
Current	Operating lease liability - short-term	$	5,236	$	5,341
Long-term	Operating lease liability - long-term		22,548		23,815
Total operating lease liabilities		$	27,784	$	29,156
Current	Finance lease liability - short-term	$	504	$	500
Long-term	Finance lease liability - long-term		9,308		9,437
Total finance lease liabilities			9,812		9,937
Total lease liabilities		$	37,596	$	39,093

The components of lease expense include:

		For the Quarter Ended March 31,
Lease Cost	Classification	2022		2021
Operating lease cost (1)	Cost of sales	$	1,356	$	1,070
Operating lease cost (1)	Selling, general and administrative expenses		611		551
Finance lease cost
Amortization expense	Cost of sales		172		57
Interest expense on lease liabilities	Interest expense, net		86		30
Total lease cost		$	2,225	$	1,708

(1)Includes short-term leases and variable lease costs, which are immaterial

Supplemental cash flow information related to leases was as follows:

	For the Quarter Ended March 31,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,610	$	1,252
Operating cash flows from finance leases	$	86	$	30
Financing cash flows from finance leases	$	124	$	40
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	3,523
Finance leases	$	—	$	10,339

Lease Term and Discount Rate	March 31, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		7.16			7.27
Finance leases		13.93			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%

Maturity of Lease Liabilities - As of March 31, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	4,623		$	630		$	5,253
2023		5,581			840			6,421
2024		4,127			861			4,988
2025		3,334			865			4,199
2026		2,848			865			3,713
After 2026		10,780			8,408			19,188
Total lease payments		31,293			12,469			43,762
Less: interest		(3,509	)		(2,657	)		(6,166	)
Present value of lease liabilities	$	27,784		$	9,812		$	37,596

(1)Represents amounts due in 2022 after March 31, 2022

The Company has operating leases for four facilities within the Material Handling Segment that are with a related party. Total right of use assets related to these related party leases were $3.2 million and $3.6 million at March 31, 2022 and December 31, 2021, respectively. Total operating lease liabilities related to these related party leases were $3.0 million and $3.4 million at March 31, 2022 and December 31, 2021, respectively. Total lease expense from these related party leases was $0.4 million in each of the quarters ended March 31, 2022 and March 31, 2021.

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Industry Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Industry Segments

14. Segments

The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker (“CODM”) evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly 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 Material Handling Segment’s products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, among others. Products are sold both directly to end-users and through distributors. The acquisitions of Trilogy and Elkhart Plastics, described in Note 3, are included in the Material Handling Segment.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and five regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire re-treaders, and government agencies.

Total sales from foreign business units were approximately $12.7 million and $11.0 million for the quarters ended March 31, 2022 and 2021, respectively.

Summarized segment detail for the quarters ended March 31, 2022 and 2021 are presented in the following table:

	For the Quarter Ended March 31,
	2022			2021
Net Sales
Material Handling	$	176,636		$	129,893
Distribution		48,861			44,550
Inter-company sales		(11	)		(14	)
Total net sales	$	225,486		$	174,429
Operating income
Material Handling	$	31,220		$	16,927
Distribution		3,301			1,438
Corporate (1)		(10,116	)		(7,500	)
Total operating income		24,405			10,865
Interest expense, net		(1,147	)		(995	)
Income before income taxes	$	23,258		$	9,870

(1)In the quarter ended March 31, 2021, the Company recognized $0.8 million of executive severance, of which $0.5 million was recognized in the Distribution Segment and $0.3 million was recognized in Corporate. This executive severance cost includes $0.5 million of severance and benefits and $0.3 million of charges for acceleration of stock compensation.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

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 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 accounting principles generally accepted in the United States (“GAAP”) 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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of March 31, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the quarter ended March 31, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2022.

Accounting Standards Adopted

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the Company, this ASU is effective January 1, 2023. Early adoption is permitted. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The effect of adopting this guidance will depend on the contract assets and liabilities associated with any future acquisitions.

Fair Value Measurement

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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 Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments 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 Loan Agreement, as defined in Note 11, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated 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. At March 31, 2022 and December 31, 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $39.3 million and $41.0 million, respectively.

The purchase price allocations associated with the July 30, 2021 acquisition of Trilogy Plastics, Inc. (“Trilogy”), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) are as follows:

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		570			—			570
Net current-period other comprehensive income (loss)		570			—			570
Balance at March 31, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		411			—			411
Net current-period other comprehensive income (loss)		411			—			411
Balance at March 31, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)

Allowance for Credit Losses

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected.

The changes in the allowance for credit losses for the quarters ended March 31, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		31			58
Write-offs and other		(268	)		(132	)
Balance at March 31	$	1,936		$	2,261

Revenue Recognition

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to fourteen years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in right of use asset – operating leases (“ROU assets”), operating lease liability – short term, and operating lease liability – long term and finance leases are included property, plant and equipment, finance lease liability – short term, and finance lease liability – long term in the Condensed Consolidated Statement of Financial Position (Unaudited).

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

The balances in the Company's Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) are as follows:

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		570			—			570
Net current-period other comprehensive income (loss)		570			—			570
Balance at March 31, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		411			—			411
Net current-period other comprehensive income (loss)		411			—			411
Balance at March 31, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)

Summary of Changes in Allowance for Credit Losses

The changes in the allowance for credit losses for the quarters ended March 31, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		31			58
Write-offs and other		(268	)		(132	)
Balance at March 31	$	1,936		$	2,261

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue Recognition [Abstract]

Schedule of Revenue by Major Market

The Company’s revenue by major market is as follows:

	For the Quarter Ended March 31, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	31,924	$	—	$	—		$	31,924
Vehicle		47,777		—		—			47,777
Food and beverage		34,680		—		—			34,680
Industrial		62,255		—		(11	)		62,244
Auto aftermarket		—		48,861		—			48,861
Total net sales	$	176,636	$	48,861	$	(11	)	$	225,486

	For the Quarter Ended March 31, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	25,395	$	—	$	—		$	25,395
Vehicle		42,192		—		—			42,192
Food and beverage		21,417		—		—			21,417
Industrial		40,889		—		(14	)		40,875
Auto aftermarket		—		44,550		—			44,550
Total net sales	$	129,893	$	44,550	$	(14	)	$	174,429

Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include:

	March 31,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(1,062	)	$	(1,056	)	Accounts receivable
Right of return asset	$	372		$	361		Inventories, net
Customer deposits	$	(2,081	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(2,910	)	$	(3,378	)	Other current liabilities

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Acquisitions (Tables) - Trilogy Plastics, Inc. [Member]

3 Months Ended

Mar. 31, 2022

Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment.

Assets acquired:
Accounts receivable	$	3,929
Inventories		2,752
Prepaid expenses		63
Other assets - long term		93
Property, plant and equipment		4,903
Right of use asset - operating leases		8,685
Intangible assets		14,333
Goodwill		10,003
Assets acquired	$	44,761
Liabilities assumed:
Accounts payable	$	765
Accrued expenses		777
Operating lease liability - short term		576
Operating lease liability - long term		8,108
Total liabilities assumed		10,226
Net acquisition cost	$	34,535

Summary of Intangible Assets

The intangible assets included above consist of the following:

	Fair Value		Weighted Average Estimated Useful Life
Customer relationships	$	12,463	18.0 years
Trade name		1,870	10.0 years
Total amortizable intangible assets	$	14,333

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Inventories (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Summary of Determination Cost of Inventories

Inventories consisted of the following:

	March 31,		December 31,
	2022		2021
Finished and in-process products	$	60,786	$	56,684
Raw materials and supplies		38,866		36,867
	$	99,652	$	93,551

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Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

The balance in Other Current Liabilities is comprised of the following:

	March 31,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,991	$	5,194
Dividends payable		5,450		5,441
Accrued litigation, claims and professional fees		1,053		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,108		6,787
	$	20,031	$	19,628

Schedule of Other Liabilities (Long-term)

The balance in Other Liabilities (long-term) is comprised of the following:

	March 31,		December 31,
	2022		2021
Environmental reserves	$	8,951	$	8,298
Supplemental executive retirement plan liability		1,103		1,176
Pension liability		390		421
Other long-term liabilities		3,523		3,191
	$	13,967	$	13,086

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

The change in goodwill

The change in goodwill for the quarter ended March 31, 2022 was as follows:

	Distribution		Material Handling		Total
January 1, 2022	$	7,648	$	81,130	$	88,778
Foreign currency translation		—		173		173
March 31, 2022	$	7,648	$	81,303	$	88,951

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Net Income per Common Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Weighted average number of common shares outstanding during the period

Net income per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

	For the Quarter Ended March 31,
	2022		2021
Weighted average common shares outstanding basic		36,280,268		35,993,331
Dilutive effect of stock options and restricted stock		230,766		297,500
Weighted average common shares outstanding diluted		36,511,034		36,290,831

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Long-Term Debt and Loan Agreements (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Long Term Debt

Long-term debt consisted of the following:

	March 31,		December 31,
	2022		2021
Loan Agreement	$	54,500	$	53,000
5.25% Senior Unsecured Notes due January 15, 2024		11,000		11,000
5.30% Senior Unsecured Notes due January 15, 2024		15,000		15,000
5.45% Senior Unsecured Notes due January 15, 2026		12,000		12,000
		92,500		91,000
Less unamortized deferred financing costs		50		55
		92,450		90,945
Less current portion long-term debt		—		—
Long-term debt	$	92,450	$	90,945

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Balances Included in Condensed Consolidated Statement of Financial Position (Unaudited) Related to Leases

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include:

		March 31,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	27,870	$	29,285
Finance lease assets	Property, plant and equipment, net		9,592		9,765
Total lease assets		$	37,462	$	39,050
Liabilities:
Current	Operating lease liability - short-term	$	5,236	$	5,341
Long-term	Operating lease liability - long-term		22,548		23,815
Total operating lease liabilities		$	27,784	$	29,156
Current	Finance lease liability - short-term	$	504	$	500
Long-term	Finance lease liability - long-term		9,308		9,437
Total finance lease liabilities			9,812		9,937
Total lease liabilities		$	37,596	$	39,093

Schedule of Lease Expense

The components of lease expense include:

		For the Quarter Ended March 31,
Lease Cost	Classification	2022		2021
Operating lease cost (1)	Cost of sales	$	1,356	$	1,070
Operating lease cost (1)	Selling, general and administrative expenses		611		551
Finance lease cost
Amortization expense	Cost of sales		172		57
Interest expense on lease liabilities	Interest expense, net		86		30
Total lease cost		$	2,225	$	1,708

(1)Includes short-term leases and variable lease costs, which are immaterial

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	For the Quarter Ended March 31,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,610	$	1,252
Operating cash flows from finance leases	$	86	$	30
Financing cash flows from finance leases	$	124	$	40
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	3,523
Finance leases	$	—	$	10,339

Lease Term and Discount Rate	March 31, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		7.16			7.27
Finance leases		13.93			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%

Maturity of Operating and Finance Lease Liabilities

Maturity of Lease Liabilities - As of March 31, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	4,623		$	630		$	5,253
2023		5,581			840			6,421
2024		4,127			861			4,988
2025		3,334			865			4,199
2026		2,848			865			3,713
After 2026		10,780			8,408			19,188
Total lease payments		31,293			12,469			43,762
Less: interest		(3,509	)		(2,657	)		(6,166	)
Present value of lease liabilities	$	27,784		$	9,812		$	37,596

(1)Represents amounts due in 2022 after March 31, 2022

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Industry Segments (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Reporting Information by Segment

Summarized segment detail for the quarters ended March 31, 2022 and 2021 are presented in the following table:

	For the Quarter Ended March 31,
	2022			2021
Net Sales
Material Handling	$	176,636		$	129,893
Distribution		48,861			44,550
Inter-company sales		(11	)		(14	)
Total net sales	$	225,486		$	174,429
Operating income
Material Handling	$	31,220		$	16,927
Distribution		3,301			1,438
Corporate (1)		(10,116	)		(7,500	)
Total operating income		24,405			10,865
Interest expense, net		(1,147	)		(995	)
Income before income taxes	$	23,258		$	9,870

(1)In the quarter ended March 31, 2021, the Company recognized $0.8 million of executive severance, of which $0.5 million was recognized in the Distribution Segment and $0.3 million was recognized in Corporate. This executive severance cost includes $0.5 million of severance and benefits and $0.3 million of charges for acceleration of stock compensation.

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Estimate of Fair Value, Fair Value Disclosure [Member] | Less unamortized deferred financing fees [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Notes payable, fair value disclosure	$ 39.3	$ 41.0

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Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 209,325,000	$ 189,100,000
Total other comprehensive income (loss)	570,000	411,000
Ending balance	224,138,000	194,253,000
Foreign Currency [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(13,935,000)	(13,974,000)
Other comprehensive income (loss) before reclassifications	570,000	(411,000)
Total other comprehensive income (loss)	570,000	(411,000)
Ending balance	(13,365,000)	(13,563,000)
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(1,466,000)	(1,799,000)
Other comprehensive income (loss) before reclassifications	0	0
Total other comprehensive income (loss)	0	0
Ending balance	(1,466,000)	(1,799,000)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(15,401,000)	(15,773,000)
Other comprehensive income (loss) before reclassifications	570,000	(411,000)
Total other comprehensive income (loss)	570,000	(411,000)
Ending balance	$ (14,831,000)	$ (15,362,000)

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Summary of Significant Accounting Policies - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounts Receivable Net [Abstract]
Balance at January 1	$ 2,173	$ 2,335
Provision for expected credit loss, net of recoveries	31	58
Write-offs and other	(268)	(132)
Balance at September 30	$ 1,936	$ 2,261

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Revenue Recognition - Schedule of Revenue by Major Market (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Net sales	$ 225,486	$ 174,429
Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	176,636	129,893
Operating Segments [Member] | Distribution [Member]
Disaggregation Of Revenue [Line Items]
Net sales	48,861	44,550
Inter-company [Member]
Disaggregation Of Revenue [Line Items]
Net sales	(11)	(14)
Consumer [Member]
Disaggregation Of Revenue [Line Items]
Net sales	31,924	25,395
Consumer [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	31,924	25,395
Vehicle [Member]
Disaggregation Of Revenue [Line Items]
Net sales	47,777	42,192
Vehicle [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	47,777	42,192
Food and Beverage [Member]
Disaggregation Of Revenue [Line Items]
Net sales	34,680	21,417
Food and Beverage [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	34,680	21,417
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	62,244	40,875
Industrial [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	62,255	40,889
Industrial [Member] | Inter-company [Member]
Disaggregation Of Revenue [Line Items]
Net sales	(11)	(14)
Auto Aftermarket [Member]
Disaggregation Of Revenue [Line Items]
Net sales	48,861	44,550
Auto Aftermarket [Member] | Operating Segments [Member] | Distribution [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 48,861	$ 44,550

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Revenue Recognition - Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts Receivable [Member]
Disaggregation Of Revenue [Line Items]
Returns, discounts and other allowances	$ (1,062)	$ (1,056)
Inventories, net [Member]
Disaggregation Of Revenue [Line Items]
Right of return asset	372	361
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Customer deposits	(2,081)	(1,816)
Accrued rebates	$ (2,910)	$ (3,378)

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Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Cost of sales	$ 153,558	$ 124,016
Selling, General and Administrative Expenses [Member]
Disaggregation Of Revenue [Line Items]
Cost of sales	3,200	2,500
Cost of Sales [Member]
Disaggregation Of Revenue [Line Items]
Cost of sales	$ 1,600	$ 1,600

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Acquisitions - Additional Information (Details) - USD ($) $ in Millions	Jul. 30, 2021	Nov. 10, 2020
Trilogy Plastics, Inc. [Member]
Business Acquisition [Line Items]
Purchase price of acquisition	$ 34.5
Working capital adjustment	$ 0.3
Elkhart Plastics [Member]
Business Acquisition [Line Items]
Purchase price of acquisition		$ 63.8
Working capital adjustment		$ 1.2

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Acquisitions - Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Jul. 30, 2021
Assets acquired:
Goodwill	$ 88,951	$ 88,778
Trilogy Plastics, Inc. [Member]
Assets acquired:
Accounts receivable			$ 3,929
Inventories			2,752
Prepaid expenses			63
Other assets - long term			93
Property, plant and equipment			4,903
Right of use asset - operating leases			8,685
Intangible assets			14,333
Goodwill			10,003
Assets acquired			44,761
Liabilities assumed:
Accounts payable			765
Accrued expenses			777
Operating lease liability - short term			576
Operating lease liability - long term			8,108
Total liabilities assumed			10,226
Net acquisition cost			$ 34,535

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Acquisitions - Summary of Intangible Assets (Details) - Trilogy Plastics, Inc. [Member] $ in Thousands	Jul. 30, 2021 USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 14,333
Customer Relationships [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 12,463
Weighted Average Estimated Useful Life	18 years
Trade Name [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 1,870
Weighted Average Estimated Useful Life	10 years

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Restructuring - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			12 Months Ended
	Jan. 31, 2019	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2021	Jun. 30, 2022
Restructuring Cost And Reserve [Line Items]
Proceeds from sale of property, plant and equipment		$ 1,076		$ 0
Gain/loss on sale of property		467		0
Restructuring charges		400		$ 0
Ameri-Kart [Member]
Restructuring Cost And Reserve [Line Items]
Gain/loss on sale of property		300
Expected restructuring charges						$ 1,800
Unpaid restructuring expenses		$ 600			$ 500
Indiana [Member] | Manufacturing and Distribution [Member]
Restructuring Cost And Reserve [Line Items]
Facility lease period		15 years
Proceeds from sale of property, plant and equipment			$ 2,800
Sale leaseback transaction term of contract	5 years
Gain/loss on sale of property			$ 1,000

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Inventories - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Inventories
Percentage of LIFO Inventory	30.00%
LIFO inventories, change in cost of sales	$ 0	$ 0

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Inventories - Summary of Determination Cost of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished and in-process products	$ 60,786	$ 56,684
Raw materials and supplies	38,866	36,867
Inventory net	$ 99,652	$ 93,551

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Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Customer deposits and accrued rebates	$ 4,991	$ 5,194
Dividends payable	5,450	5,441
Accrued litigation, claims and professional fees	1,053	777
Current portion of environmental reserves	1,429	1,429
Other accrued expenses	7,108	6,787
Other current liabilities, Total	$ 20,031	$ 19,628

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Other Liabilities - Schedule of Other Liabilities (Long-term) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Environmental reserves	$ 8,951	$ 8,298
Supplemental executive retirement plan liability	1,103	1,176
Pension liability	390	421
Other long-term liabilities	3,523	3,191
Other liabilities (long-term), Total	$ 13,967	$ 13,086

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Goodwill and Intangible Assets - Change in Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 88,778
Foreign currency translation	173
Ending balance	88,951
Distribution [Member]
Goodwill [Roll Forward]
Beginning balance	7,648
Foreign currency translation	0
Ending balance	7,648
Material Handling [Member]
Goodwill [Roll Forward]
Beginning balance	81,130
Foreign currency translation	173
Ending balance	$ 81,303

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Trade Names [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Carrying value of indefinite-lived intangible assets	$ 9.8	$ 9.8

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Net Income per Common Share (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Weighted average common shares outstanding basic	36,280,268	35,993,331
Dilutive effect of stock options and restricted stock (in shares)	230,766	297,500
Weighted average common shares outstanding diluted (in shares)	36,511,034	36,290,831

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Net Income per Common Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of net earnings or loss per common share	245,608	0

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Stock Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Apr. 29, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of expiration, term	10 years
Stock compensation expense	$ 1.7	$ 1.2
Total unrecognized compensation cost related to non-vested share based compensation arrangements	$ 10.8
Unrecognized compensation cost period for recognition	3 years
2021 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for grant under plan (in shares)			2,000,000

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Contingencies - Additional Information (Details) - USD ($)	3 Months Ended			12 Months Ended		120 Months Ended	254 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2016	Sep. 30, 2021	Feb. 14, 2014	Dec. 31, 2021
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies, Revision in Estimates				$ 2,000,000.0
Other current liabilities	$ 20,031,000							$ 19,628,000
Other liabilities	13,967,000							$ 13,086,000
New Idria Mercury Mine [Member]
Loss Contingencies [Line Items]
Financial assurance required to be provided to EPA to secure performance			$ 2,000,000
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member] | Natural Resource Damage Claim [Member]
Loss Contingencies [Line Items]
Total reserve	1,500,000
Other current liabilities	300,000
Other liabilities	1,200,000
Expense recognized	0	$ 0
Revised estimated project costs, Low Estimate					$ 3,300,000
Revised estimated project costs, High Estimate					$ 4,400,000
Pending Litigation [Member] | New Idria Mercury Mine [Member] | EPA Notice Letter [Member]
Loss Contingencies [Line Items]
Loss contingencies, payments	2,900,000
Accrual For Environmental Loss Contingencies Charges To Expense For New Losses	700,000					$ 11,800,000	$ 1,600,000
Loss contingency, Loss in period	700,000					$ 11,800,000	$ 1,600,000
Total reserve	8,900,000
Other current liabilities	1,100,000
Other liabilities	$ 7,800,000

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Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term Debt	$ 92,500	$ 91,000
Less unamortized deferred financing fees	50	55
Long-term Debt, net of deferred financing costs	92,450	90,945
Less current portion long-term debt	0	0
Long-term debt	92,450	90,945
Loan Agreement [Member]
Debt Instrument [Line Items]
Long-term Debt	54,500	53,000
5.25% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	11,000	11,000
5.30% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	15,000	15,000
5.45% Senior Unsecured Notes due January 15, 2026 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 12,000	$ 12,000

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Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details)	3 Months Ended
	Mar. 31, 2022
Debt Instrument [Line Items]
Debt instrument maturity date	Jan. 15, 2026
5.25% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Interest rate	5.25%
Debt instrument maturity date	Jan. 15, 2024
5.30% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Interest rate	5.30%
Debt instrument maturity date	Jan. 15, 2024
5.45% Senior Unsecured Notes due January 15, 2026 [Member]
Debt Instrument [Line Items]
Interest rate	5.45%
Debt instrument maturity date	Jan. 15, 2026

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Long-Term Debt and Loan Agreements - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Jan. 31, 2021	Mar. 31, 2017	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term Debt			$ 92,500		$ 91,000
Debt instrument maturity date			Jan. 15, 2026
Long-term Debt			$ 92,450		$ 90,945
Repayments of long-term debt				$ 40,000
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt			38,000
Senior Unsecured Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Long-term Debt			$ 11,000
Interest rate			5.25%
Debt instrument maturity date			Jan. 15, 2024
Senior Unsecured Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long-term Debt			$ 15,000
Interest rate			5.45%
Loan Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity on line of credit		$ 200,000		$ 250,000
Loan maturity period		2022-03	2024-03
Remaining amount available under the line of credit			$ 191,800
Letters of credit			$ 3,700
Repayments of long-term debt	$ 40,000
Debt, Weighted Average Interest Rate			4.12%	5.33%
Other Assets [Member]
Debt Instrument [Line Items]
Deferred financing fees			$ 1,100

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2021
Income Taxes [Line Items]
Effective tax rate for the year	25.50%	26.00%
Unrecognized tax benefits that would impact effective tax rate	$ 0.8			$ 0.8
Income tax examination, description	The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of March 31, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015.
State and Local [Member]
Income Taxes [Line Items]
Income tax examination for tax years			2015 2016 2017 2018 2019
Non-U.S [Member]
Income Taxes [Line Items]
Income tax examination for tax years			2016 2017 2018 2019 2020

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Leases - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Facility	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend	true
Operating lease, existence of option to terminate	true
Operating lease, option to extend	Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early.
Lessee, operating lease, renewal term	5 years
Operating lease, option to terminate	Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early.
Operating lease assets	$ 27,870		$ 29,285
Total operating lease liabilities	27,784		29,156
Total lease cost	$ 2,225	$ 1,708
Material Handling [Member]
Lessee Lease Description [Line Items]
Number of operating lease facilities | Facility	4
Operating lease assets	$ 3,200		3,600
Total operating lease liabilities	3,000		$ 3,400
Total lease cost	$ 400	$ 400
Indiana [Member] | Manufacturing and Distribution [Member]
Lessee Lease Description [Line Items]
Facility lease period	15 years
Minimum [Member]
Lessee Lease Description [Line Items]
Facility lease period	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Facility lease period	14 years

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Leases - Summary of Amounts Included in the Condensed Consolidated Statement of Financial Position (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Assets:
Operating lease assets	$ 27,870	$ 29,285
Finance lease assets	$ 9,592	$ 9,765
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember	us-gaap:PropertyPlantAndEquipmentMember
Total lease assets	$ 37,462	$ 39,050
Liabilities:
Current	5,236	5,341
Long-term	22,548	23,815
Total operating lease liabilities	27,784	29,156
Current	504	500
Long-term	9,308	9,437
Total finance lease liabilities	9,812	9,937
Total lease liabilities	$ 37,596	$ 39,093

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Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Lessee Lease Description [Line Items]
Total lease cost		$ 2,225	$ 1,708
Cost of Sales [Member]
Lessee Lease Description [Line Items]
Total operating lease cost	[1]	1,356	1,070
Amortization expense		172	57
Selling, General and Administrative Expenses [Member]
Lessee Lease Description [Line Items]
Total operating lease cost	[1]	611	551
Interest Expense, Net [Member]
Lessee Lease Description [Line Items]
Interest expense on lease liabilities		$ 86	$ 30

[1] Includes short-term leases and variable lease costs, which are immaterial

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Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,610	$ 1,252
Operating cash flows from finance leases	86	30
Financing cash flows from finance leases	124	40
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	0	3,523
Finance leases	$ 0	$ 10,339

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Leases - Summary of Lease Term and Discount Rate (Details)	Mar. 31, 2022	Dec. 31, 2021
Lessee Disclosure [Abstract]
Weighted-average remaining lease term (years), operating leases	7 years 1 month 28 days	7 years 3 months 7 days
Weighted-average remaining lease term (years), finance leases	13 years 11 months 4 days	14 years 2 months 1 day
Weighted-average discount rate, operating leases	3.40%	3.40%
Weighted-average discount rate, finance leases	3.50%	3.50%

XML

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Operating And Finance Lease Liability Payments Due [Abstract]
Operating Leases, 2022	$ 4,623
Operating Leases, 2023	5,581
Operating Leases, 2024	4,127
Operating Leases, 2025	3,334
Operating Leases, 2026	2,848
Operating Leases, After 2026	10,780
Total operating lease payments	31,293
Less: interest	(3,509)
Present value of operating lease liabilities	27,784	$ 29,156
Finance Leases, 2022	630
Finance Leases, 2023	840
Finance Leases, 2024	861
Finance Leases, 2025	865
Finance Leases, 2026	865
Finance Leases, After 2026	8,408
Total finance lease payments	12,469
Less: interest	(2,657)
Present value of finance lease liabilities	9,812	$ 9,937
2022	5,253
2023	6,421
2024	4,988
2025	4,199
2026	3,713
After 2026	19,188
Total lease payments	43,762
Less: interest	(6,166)
Present value of lease liabilities	$ 37,596

XML

Industry Segments - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Segment	Mar. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment	2
Net sales	$ 225,486	$ 174,429
Foreign Countries [Member]
Segment Reporting Information [Line Items]
Net sales	$ 12,700	$ 11,000

XML

Industry Segments - Schedule of reporting information by segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net sales	$ 225,486	$ 174,429
Total operating income	24,405	10,865
Interest expense, net	(1,147)	(995)
Income before income taxes	23,258	9,870
Operating Segments [Member] | Material Handling [Member]
Segment Reporting Information [Line Items]
Net sales	176,636	129,893
Total operating income	31,220	16,927
Operating Segments [Member] | Distribution [Member]
Segment Reporting Information [Line Items]
Net sales	48,861	44,550
Total operating income	3,301	1,438
Inter-company sales [Member]
Segment Reporting Information [Line Items]
Net sales	(11)	(14)
Corporate [Member]
Segment Reporting Information [Line Items]
Total operating income	$ (10,116)	$ (7,500)

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Industry Segments - Schedule of reporting information by segment (Parenthetical) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Executive severance cost	$ 0.8
Executive Severances [Member]
Segment Reporting Information [Line Items]
Severance and benefit	0.5
Share-based payment arrangement, award accelerated cost	0.3
Distribution [Member]
Segment Reporting Information [Line Items]
Executive severance cost	0.5
Corporate [Member]
Segment Reporting Information [Line Items]
Executive severance cost	$ 0.3