8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) August 3, 2016

MYERS INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Ohio	1-8524	34-0778636
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

1293 South Main Street, Akron, OH	44301
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, including area code (330) 253-5592

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

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition

On August 3, 2016, Myers Industries, Inc. (the “Company”) issued a press release announcing earnings results for the quarter ended June 30, 2016. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, a copy of the slide materials which will be discussed during the Company’s earnings conference call at 10:00 a.m. Eastern Time on August 3, 2016 is attached as Exhibit 99.2 to this Current Report on Form 8-K. Information about the call can be found in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this report (including the exhibits) is furnished pursuant to “Item 2.02. Results of Operations and Financial Condition” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, unless incorporated by specific reference in such filing.

Item 7.01. Regulation FD Disclosure

See “Item 2.02 Results of Operations and Financial Condition” above.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1	Press Release by the Company regarding earnings results dated August 3, 2016
99.2	Earnings Presentation Second Quarter 2016 by the Company dated August 3, 2016

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 hereunto duly authorized.

		Myers Industries, Inc.
		(Registrant)
DATE August 3, 2016	By :	/s/ Kevin L. Brackman
		Kevin L. Brackman
		Chief Financial Officer and Corporate Secretary

EX-99.1

Exhibit 99.1

Contact:

Monica Vinay, Vice President, Investor

Relations & Treasurer (330) 761-6212

Myers Industries Reports 2016 Second Quarter Results

GAAP EPS of $0.19; Adjusted EPS of $0.21

Company Maintained Gross Margin despite Volume and Revenue Declines

August 3, 2016, Akron, Ohio - Myers Industries, Inc. (NYSE: MYE) today announced results for the second quarter ended June 30, 2016.

Second Quarter 2016 Business Highlights

• Net sales decreased 12% (or 11% organic) compared to the second quarter of 2015

• Gross profit margin 30.9%, compared to 30.8% for the second quarter of 2015

• GAAP income per diluted share from continuing operations $0.19, compared to $0.35 for the second quarter of 2015

• Adjusted income per diluted share from continuing operations $0.21, compared to $0.30 for the second quarter of 2015

President and Chief Executive Officer Dave Banyard commented, “A weakened environment for capital spending in some of our key end markets contributed to the shortfall in sales in both the Material Handling and Distribution segments during the second quarter. Based on these results and our current indicators, we now expect full-year revenue to be down mid-to-high single digits.”

Banyard continued, “Despite the lower sales volume, we delivered solid margins and concurrently made progress on our strategic plans during the quarter. I am pleased with the extensive strategic marketing work we completed and the key initiatives we established for each of our businesses. In light of the current market environment, we are accelerating certain cost actions within those initiatives and expect to provide a more comprehensive update of our long-term strategy later this year.”

	Quarter Ended June 30,									Six Months Ended June 30,
	2016			2015			% Increase (Decrease)			2016			2015			% Increase (Decrease)
	(Dollars in thousands, except per share data)
Net sales	$	144,117		$	164,335			(12.3	)%	$	295,322		$	320,683			(7.9	)%
Gross profit	$	44,536		$	50,581			(12.0	)%	$	92,707		$	96,338			(3.8	)%
Gross profit margin		30.9	%		30.8	%					31.4	%		30.0	%
Operating income	$	11,166		$	19,742			(43.4	)%	$	12,295		$	26,458			(53.5	)%
Income from continuing operations:
Income	$	5,684		$	10,925			(48.0	)%	$	2,348		$	13,547			(82.7	)%
Income per diluted share	$	0.19		$	0.35			(45.7	)%	$	0.08		$	0.43			(81.4	)%
Operating income as adjusted(1)	$	11,710		$	17,181			(31.8	)%	$	23,395		$	25,847			(9.5	)%
Income from continuing operations as adjusted(1):
Income	$	6,180		$	9,461			(34.7	)%	$	12,367		$	13,296			(7.0	)%
Income per diluted share	$	0.21		$	0.30			(30.0	)%	$	0.41		$	0.42			(2.4	)%

(1) Details regarding the adjusted charges are provided on the Reconciliations of Non-GAAP Financial Measures included in this release.

Segment Results

Net sales in the Material Handling Segment for the second quarter of 2016 were down 13% (or 12% organic) vs. the second quarter of 2015 due primarily to declines in the food and beverage markets. The segment’s GAAP operating income was $14.3 million for the second quarter of 2016 compared to $20.8 million for the second quarter of 2015. The segment’s adjusted operating income was $13.3 million for the second quarter of 2016 compared to $18.3 million for the second quarter of 2015.

Net sales in the Distribution Segment for the second quarter of 2016 were down 11% vs. the second quarter of 2015. The decline was primarily the result of lower equipment sales. The segment continues to implement its new sales model which is designed to broaden market coverage and improve the overall sales process. The segment’s operating income was $4.0 million for the second quarter of 2016 compared to $4.5 million for the second quarter of 2015.

2016 Outlook

The Company now anticipates that total revenue will be down mid-to-high single digits on a constant currency basis in fiscal year 2016 as the headwinds from a weak capital spending environment continue to impact sales performance.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, August 3, 2016 at 10:00 a.m. ET. The call is anticipated to last approximately one hour and may be accessed at (877) 407-8033. Callers are asked to sign on at least five minutes in advance. A live webcast of the conference call can be accessed from the Investor Relations section of the Company’s website at www.myersindustries.com. Click on the Investor Relations tab to access the webcast. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (US) 877-660-6853 or (Int’l) 201-612-7415. The replay passcode is Conference ID #13641625.

Use of Non-GAAP Financial Measures

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

About Myers Industries

Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel and undervehicle service industry in the U.S. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

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

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share data)

	Quarter Ended					Six Months Ended
	June 30, 2016			June 30, 2015		June 30, 2016			June 30, 2015
Net sales	$	144,117		$	164,335	$	295,322		$	320,683
Cost of sales		99,581			113,754		202,615			224,345
Gross profit		44,536			50,581		92,707			96,338
Selling, general and administrative expenses		32,041			30,839		70,538			69,880
Impairment charges		1,329			—		9,874			—
Operating income		11,166			19,742		12,295			26,458
Interest expense, net		2,053			2,467		4,072			5,169
Income from continuing operations before income taxes		9,113			17,275		8,223			21,289
Income tax expense		3,429			6,350		5,875			7,742
Income from continuing operations		5,684			10,925		2,348			13,547
Income (loss) from discontinued operations, net of income taxes		(190	)		494		(247	)		3,111
Net income	$	5,494		$	11,419	$	2,101		$	16,658
Income per common share from continuing operations:
Basic	$	0.19		$	0.35	$	0.08		$	0.44
Diluted	$	0.19		$	0.35	$	0.08		$	0.43
Income (loss) per common share from discontinued operations:
Basic	$	(0.01	)	$	0.02	$	(0.01	)	$	0.10
Diluted	$	(0.01	)	$	0.02	$	(0.01	)	$	0.10
Net income per common share:
Basic	$	0.18		$	0.37	$	0.07		$	0.54
Diluted	$	0.18		$	0.37	$	0.07		$	0.53
Weighted average common shares outstanding:
Basic		29,623,177			30,968,269		29,586,708			31,004,779
Diluted		30,089,574			31,284,915		30,012,839			31,342,103

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

	Quarter Ended June 30,									Six Months Ended June 30,
	2016			2015			% Change			2016			2015			% Change
Net Sales
Material Handling	$	100,907		$	115,774			(12.8	)%	$	209,931		$	228,055			(7.9	)%
Distribution		43,234			48,592			(11.0	)%		85,455			92,697			(7.8	)%
Inter-company Sales		(24	)		(31	)		—			(64	)		(69	)		—
Total	$	144,117		$	164,335			(12.3	)%	$	295,322		$	320,683			(7.9	)%
Operating Income
Material Handling	$	14,333		$	20,846			(31.2	)%	$	21,774		$	34,253			(36.4	)%
Distribution		3,966			4,508			(12.0	)%		6,502			7,999			(18.7	)%
Corporate		(7,133	)		(5,612	)		—			(15,981	)		(15,794	)		—
Total	$	11,166		$	19,742			(43.4	)%	$	12,295		$	26,458			(53.5	)%

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

OPERATING INCOME BY SEGMENT (UNAUDITED)

(Dollars in thousands, except per share data)

	Quarter Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Material Handling
Operating income as reported	$	14,333		$	20,846		$	21,774		$	34,253
Litigation reserve reversal		—			(3,010	)		—			(3,010	)
Asset impairments		1,329			—			9,874			—
Reduction to contingent liability		(2,335	)					(2,335	)
Restructuring expenses and other adjustments		—			449			—			540
Operating income as adjusted		13,327			18,285			29,313			31,783
Distribution
Operating income as reported		3,966			4,508			6,502			7,999
Restructuring expenses and other adjustments		—			—			—			53
Operating income as adjusted		3,966			4,508			6,502			8,052
Corporate Expense
Corporate expense as reported		(7,133	)		(5,612	)		(15,981	)		(15,794	)
CFO severance related costs		—			—			2,011			—
Environmental reserve		1,550			—			1,550			—
Professional, legal fees and other adjustments		—			—			—			1,806
Corporate expense as adjusted		(5,583	)		(5,612	)		(12,420	)		(13,988	)
Continuing Operations
Operating income as reported		11,166			19,742			12,295			26,458
Total of all adjustments above		544			(2,561	)		11,100			(611	)
Operating income as adjusted		11,710			17,181			23,395			25,847
Interest expense, net		(2,053	)		(2,467	)		(4,072	)		(5,169	)
Income before taxes as adjusted		9,657			14,714			19,323			20,678
Income tax expense*		(3,477	)		(5,253	)		(6,956	)		(7,382	)
Income from continuing operations as adjusted	$	6,180		$	9,461		$	12,367		$	13,296
Adjusted earnings per diluted share from continuing operations	$	0.21		$	0.30		$	0.41		$	0.42

* Income taxes are calculated using the normalized effective tax rate for each year. The normalized rate used above is 36%.

Note on Reconciliation of Income and Earnings Data: Income from continuing operations as adjusted and adjusted earnings per diluted share from continuing operations are non-GAAP financial measures that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from the unaudited Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful information regarding a company’s operating profitability. Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for net income (loss), income (loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company’s method for calculating income (loss) excluding these items may not be comparable to methods used by other companies.

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash	$	6,499	$	7,344
Restricted cash		8,627		8,627
Accounts receivable, net		77,677		77,633
Inventories		55,698		54,738
Other		3,474		5,966
Total Current Assets		151,975		154,308
Other Assets		133,974		143,710
Property, Plant, & Equipment, Net		124,355		130,773
Total Assets	$	410,304	$	428,791
Liabilities & Shareholders’ Equity
Current Liabilities
Accounts payable	$	41,266	$	71,310
Accrued expenses		31,851		45,502
Total Current Liabilities		73,117		116,812
Long-term debt, net		217,440		191,881
Other liabilities		9,401		12,354
Deferred income taxes		9,476		10,041
Total Shareholders’ Equity		100,870		97,703
Total Liabilities & Shareholders’ Equity	$	410,304	$	428,791

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

	Six Months Ended June 30,
	2016			2015
Cash Flows From Operating Activities
Net income	$	2,101		$	16,658
Income (loss) from discontinued operations, net of income taxes		(247	)		3,111
Income from continuing operations		2,348			13,547
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
Depreciation		12,283			13,290
Amortization		4,981			5,279
Non-cash stock-based compensation expense		2,064			1,638
Deferred taxes		(1,354	)		(1,673	)
Excess tax deficit (benefit) from stock-based compensation		5			(215	)
Impairment charges		9,874			—
Other		(273	)		91
Payments on performance based compensation		(1,794	)		(1,332	)
Accrued interest income on note receivable		(628	)		—
Other long-term liabilities		(726	)		2,497
Cash flows provided by (used for) working capital
Accounts receivable		1,623			(12,835	)
Inventories		(12	)		(4,020	)
Prepaid expenses and other assets		2,475			2,511
Accounts payable and accrued expenses		(33,938	)		(21,747	)
Net cash provided by (used for) operating activities - continuing operations		(3,072	)		(2,969	)
Net cash provided by (used for) operating activities - discontinued operations		—			(11,672	)
Net cash provided by (used for) operating activities		(3,072	)		(14,641	)
Cash Flows From Investing Activities
Capital expenditures		(10,565	)		(9,381	)
Proceeds from sale of property, plant and equipment		178			36
Proceeds (payments) related to sale of business		(4,034	)		69,787
Net cash provided by (used for) investing activities - continuing operations		(14,421	)		60,442
Net cash provided by (used for) investing activities - discontinued operations		—			(581	)
Net cash provided by (used for) investing activities		(14,421	)		59,861
Cash Flows From Financing Activities
Net borrowing (repayments) on credit facility		23,838			(31,548	)
Cash dividends paid		(8,112	)		(8,367	)
Proceeds from issuance of common stock		610			1,515
Excess tax (deficit) benefit from stock-based compensation		(5	)		215
Repurchase of common stock		—			(6,577	)
Shares withheld for employee taxes on equity awards		(617	)		(975	)
Net cash provided by (used for) financing activities - continuing operations		15,714			(45,737	)
Net cash provided by (used for) financing activities - discontinued operations		—			—
Net cash provided by (used for) financing activities		15,714			(45,737	)
Foreign exchange rate effect on cash		934			(272	)
Net increase (decrease) in cash		(845	)		(789	)
Cash at January 1		7,344			4,676
Cash at June 30	$	6,499		$	3,887

EX-99.2

AUGUST

3, 2016 

|

MYERS

INDUSTRIES, INC.

SECOND

QUARTER

EARNINGS

PRESENTATION

Exhibit 99.2

2

Statements in this presentation concerning the Company’s goals, strategies, and expectations for business and financial results

may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on

current indicators and expectations.  Whenever you read a statement that is not simply a statement of historical fact (such as

when we describe what we "believe," "expect," or "anticipate" will occur, and other similar statements), you must remember that

our expectations may not be correct, even though we believe they are reasonable.  We do not guarantee that the transactions and

events described will happen as described (or that they will happen at all).  You should review this presentation with the

understanding that actual future results may be materially different from what we expect.  Many of the factors that will determine

these results are beyond our ability to control or predict.  You are cautioned not to put undue reliance on any forward-looking

statement.  We do not intend, and undertake no obligation, to update these forward-looking statements.  These statements

involve

a

number

of

risks

and

uncertainties

that

could

cause

actual

results

to

differ

materially

from

those

expressed

or

implied

in

the applicable statements.  Such risks include:

(1) Changes in the markets within the Company’s business segments

(2) Changes in trends and demands in the markets in which the Company competes

(3) Unanticipated downturn in business relationships with customers or their purchases

(4) Competitive pressures on sales and pricing

(5) Raw material availability, increases in raw material costs, or other production costs

(6) Harsh weather conditions

(7) Future economic and financial conditions in the United States and around the world

(8) Inability of the Company to meet future capital requirements

(9) Claims, litigation and regulatory actions against the Company

(10) Changes in laws and regulations affecting the Company

Myers Industries, Inc. encourages investors to learn more about these risk factors. A detailed explanation of these factors is

available in the Company’s publicly filed quarterly and annual reports, which can be found online at www.myersind.com and at the

SEC.gov website.

SAFE

HARBOR

STATEMENT

Q2 2016 SUMMARY

»

Sales below expectations; solid margins due to operational

discipline

»

Net sales $144.1M, a decrease of 12% to prior year

»

Organic (11%); currency (1%)

»

Difficult capital spending environment in several key markets

»

Gross margin +10 basis points to 30.9%

»

Lower input costs

»

Positive mix from product line rationalizations

»

Operational improvements

»

GAAP EPS from continuing operations $0.19 vs. $0.35 in 2015

»

Adjusted EPS from continuing operations $0.21 vs. $0.30 in 2015

»

Free cash flow YTD ($13.6M) vs. ($12.4M) in 2015

»

Cash from operations flat; capital spending up slightly

3

SOFTER

MARKET

CONDITIONS

PARTICULARLY

IN

CAPITAL

SPENDING

CONTINUING OPERATIONS

Q2 

2015

Q2

2016

NET

SALES

$   164.3

$   144.1

(11%) ORGANIC

GROSS

PROFIT

GROSS

MARGIN

$     50.6

30.8%

$     44.5

30.9%

+10 BPS

SG&A

$     30.8

$     32.0

3.9% INCREASE

IMPAIRMENT

CHARGES

$       0.0

$       1.3

OPERATING

INCOME

OPERATING

MARGIN

$     19.7

12.0% 

$     11.2

7.7%

-430 BPS

NET

INTEREST

EXPENSE

$       2.5

$       2.1

INCOME

FROM

CONTINUING

OPS

BEFORE

INCOME

TAXES

$     17.3

$       9.1

INCOME

TAX

EXPENSE

$       6.4

$       3.4

INCOME

FROM

CONTINUING

OPS

INCOME

MARGIN

$     10.9

6.6%

$       5.7

4.0%

EPS

FROM

CONTINUING

OPS

$     0.35

$     0.19

4

Q2 GAAP FINANCIAL

SUMMARY

IN

$MILLIONS

EXCEPT

EPS

AND

PERCENTAGES

CONTINUING OPERATIONS

Q2 

2015

Q2

2016

NET

SALES

$   164.3

$   144.1

(11%) ORGANIC

GROSS

PROFIT

GROSS

MARGIN

$     50.6

30.8%

$     44.5

30.9%

+10 BPS

ADJ. SG&A

$     33.4

$     32.8

(1.8%) DECREASE

ADJ.

OPERATING

INCOME

OPERATING

MARGIN

$     17.2

10.5%

$     11.7

8.1%

-240 BPS

NET

INTEREST

EXPENSE

$       2.5

$       2.1

ADJ. INCOME

FROM

CONTINUING

OPS

BEFORE

INCOME

TAXES

$     14.7

$       9.7

INCOME

TAX

EXPENSE

$       5.3

$       3.5

NORMALIZED

RATE

36%

ADJ. INCOME

FROM

CONTINUING

OPS

INCOME

MARGIN

$       9.4

5.7%

$       6.2

4.3%

ADJ. EPS

FROM

CONTINUING

OPS

$     0.30

$     0.21

5

Q2 ADJUSTED

FINANCIAL

SUMMARY

$20.5M ADJUSTED

EBITDA; IN

LINE

WITH

Q1

IN

$MILLIONS

EXCEPT

EPS

AND

PERCENTAGES

SEE

APPENDIX

FOR

RECONCILIATIONS

FROM

GAAP TO

ADJUSTED

RESULTS

»

Sales down 11%:

»

Capital spending down and general market indicators

mixed; muted Q2 seasonal uptick

»

Retread markets remains slow

»

Sales team initiative progressing; good progress made

in quarter but still early part of transformation

»

Gaining share at auto dealers

»

Two new wins in highway marking tape product line

»

Favorable mix in Q2; margin flat

»

Sales initiative targeting higher margin products

»

Sales down 13%; down 12% organic:

»

Low capital spending environment in key

agriculture, food processing and beverage markets

»

Consumer sales softer than forecasted

»

Continue to gain share in automotive; new wins at

several RV accounts

»

Steady progress in industrial markets

»

Solid margins in Q2 despite lower sales:

»

Favorable input costs and various product line

rationalizations

Q2 2016 SEGMENT

RESULTS

7

COMMERCIAL

EXECUTION

CONTINUES

TO

BE

THE

PRIORITY

DISTRIBUTION

$ Millions

$ Millions

MATERIAL HANDLING

$115.8

$100.9

$20.8

$14.3

$18.3

$13.3

0

5

10

15

20

25

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Net Sales

GAAP Op Inc.

Adj. Op Inc.

$48.6

$43.2

$4.5

$4.0

0

1

2

3

4

5

6

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Net Sales

Op Inc.

2016 OUTLOOK

AND

STRATEGIC

UPDATE

Outlook

»

Lowering prior outlook; FY revenue expected

to be down mid-to-high single digits

»

Capital spending in key end markets will

continue to be below prior year

»

Mixed market indicators and sales

transformation in Distribution segment

Strategic Update

»

Business level strategies:

»

Completed strategic marketing work

»

Identified key initiatives and process

improvements

»

Themes:

»

Commercial execution

»

Protect the core

»

Simplify

»

Next steps:

»

Prioritizing certain cost actions to protect

commercial investments

8

LOWERING

OUTLOOK

; GOOD

PROGRESS

ON

STRATEGY

CONSUMER

12%

VEHICLE

13%

FOOD

& BEVERAGE

16%

AUTO

AFTERMARKET

30%

INDUSTRIAL

29%

LOW

SINGLE

DIGITS

HIGH

SINGLE

DIGITS

LOW

SINGLE

DIGITS

MID-TEENS

PERCENT

OF

2015 SALES

MYE 2016 GROWTH

OUTLOOK

FLAT

APPENDIX

9

2016 KEY

ASSUMPTIONS

»

Capital expenditures:

$15 -

$18 million

»

Interest expense: 

$8 -

$10 million

»

D&A:

$35 -

$37 million

»

Effective tax rate (normalized):

36%

10

RECONCILIATION

OF

NON-GAAP MEASURES

11

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED)

(Dollars in thousands)

Note

on

Reconciliation

of

Income

and

Earnings

Data:

Selling,

general

and

administrative

expenses

excluding

the

items

above

in

the

text

of

this

presentation

and

in

this

reconciliation

chart

is

a

non-GAAP

financial

measure

that

Myers

Industries,

Inc.

calculates

according

to

the

schedule

above

using

GAAP

amounts

from

the

unaudited

Condensed

Consolidated

Statement

of

Operations.

The

Company

believes

that

the

excluded

items

are

not

primarily

related

to

core

operational

activities.

The

Company

believes

that

selling,

general

and

administrative

expenses

excluding

items

that

are

not

primarily

related

to

core

operating

activities

is

generally

viewed

as

providing

useful

information

regarding

a

company's

operating

profitability.

Management

uses

selling,

general

and

administrative

expenses

excluding

these

items

as

well

as

other

financial

measures

in

connection

with

its

decision-making

activities.

Selling,

general

and

administrative

expenses

excluding

these

items

should

not

be

considered

in

isolation

or

as

a

substitute

for

selling,

general

and

administrative

expenses

prepared

in

accordance

with

GAAP.

The

Company's

method

for

calculating

selling,

general

and

administrative

expenses

excluding

these

items

may

not

be

comparable

to

methods

used

by

other

companies.

Quarter

Ended

Six Months

Ended

June 30, 2016

June 30, 2015

June 30, 2016

June 30, 2015

Selling, general and administrative expenses as reported

$   32,041

$   30,839

$   70,538

$   69,880

Restructuring expenses and other adjustments in selling, general and

administrative expenses

Material Handling segment

2,335

2,561

-

2,470

Distribution segment

-

-

-

(53)

Corporate

(1,550)

-

(3,561)

(1,806)

Selling, general and administrative expenses as adjusted

$   32,826

$   33,400

$   66,977

$   70,491

RECONCILIATION

OF

NON-GAAP MEASURES

12

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)

(Dollars in millions, except per share data)

Note

on

Reconciliation

of

Income

and

Earnings

Data:

Income

(loss)

excluding

the

items

above

in

the

text

of

this

presentation

and

in

this

reconciliation

chart

is

a

non-GAAP

financial

measure

that

Myers

Industries,

Inc.

calculates

according

to

the

schedule

above

using

GAAP

amounts

from

the

unaudited

Condensed

Consolidated

Statement

of

Operations.

The

Company

believes

that

the

excluded

items

are

not

primarily

related

to

core

operational

activities.

The

Company

believes

that

income

(loss)

excluding

items

that

are

not

primarily

related

to

core

operating

activities

is

generally

viewed

as

providing

useful

information

regarding

a

company's

operating

profitability.

Management

uses

income

(loss)

excluding

these

items

as

well

as

other

financial

measures

in

connection

with

its

decision-making

activities.

Income

(loss)

excluding

these

items

should

not

be

considered

in

isolation

or

as

a

substitute

for

income

(loss)

prepared

in

accordance

with

GAAP.

The

Company's

method

for

calculating

income

(loss)

excluding

these

items

may

not

be

comparable

to

methods

used

by

other

companies.

*Income taxes are calculated using the normalized effective tax rate for each year. The normalized rate used above is 36%.

Quarter Ended June30,

Six Months Ended June30,

2016

2015

2016

2015

Material Handling

Operating income as reported

$

14,333

$

20,846

$

21,774

$

34,253

Litigation reserve reversal

-

(3,010)

-

(3,010)

Asset impairments

1,329

-

9,874

-

Reduction to contingent liability

(2,335)

(2,335)

Restructuring expenses and other adjustments

-

449

-

540

Operating income as adjusted

13,327

18,285

29,313

31,783

Distribution

Operating income as reported

3,966

4,508

6,502

7,999

Restructuring expenses and other adjustments

-

-

-

53

Operating income as adjusted

3,966

4,508

6,502

8,052

Corporate Expense

Corporate expense as reported

(7,133)

(5,612)

(15,981)

(15,794)

CFO severance related costs

-

-

2,011

-

Environmental reserve

1,550

-

1,550

-

Professional, legal fees and other adjustments

-

-

-

1,806

Corporate expense as adjusted

(5,583)

(5,612)

(12,420)

(13,988)

Continuing Operations

Operating income as reported

11,166

19,742

12,295

26,458

Total of all adjustments above

544

(2,561)

11,100

(611)

Operating income as adjusted

11,710

17,181

23,395

25,847

Interest expense, net

(2,053)

(2,467)

(4,072)

(5,169)

Income before taxes as adjusted

9,657

14,714

19,323

20,678

Income tax expense*

(3,477)

(5,253)

(6,956)

(7,382)

Income from continuing operations as adjusted

$

6,180

$

9,461

$

12,367

$

13,296

Adjusted earnings per diluted share from continuing operations

$

0.21

$

0.30

$

0.41

$

0.42

RECONCILIATION

OF

NON-GAAP MEASURES

13

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

COMBINED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands)

Note

on

Reconciliation

of

Income

and

Earnings

Data:

EBITDA

as

adjusted

is

a

financial

measure

that

Myers

Industries,

Inc.

calculates

according

to

the

schedule

above

using

amounts

from

the

unaudited

Reconciliation

of

Non-GAAP

Financial

Measures

Income

(Loss)

Before

Taxes

By

Segment

and

GAAP

amounts

from

the

unaudited

Condensed

Consolidated

Statement

of

Operations.

The

Company

believes

that

EBITDA

as

adjusted

provides

useful

information

regarding

a

company's

operating

profitability.

Management

uses

EBITDA

as

adjusted

as

well

as

other

financial

measures

in

connection

with

its

decision-making

activities.

EBITDA

as

adjusted

should

not

be

considered

in

isolation

or

as

a

substitute

for

net

income

(loss),

income

(loss)

before

taxes

or

other

consolidated

income

data

prepared

in

accordance

with

GAAP.

The

Company's

method

for

calculating

EBITDA

as

adjusted

may

not

be

comparable

to

methods

used

by

other

companies.

Quarter

Ended

TTM

30-Sep-14

31-Dec-14

31-Mar-15

30-Jun-15

30-Jun-15

Net Income as Reported Continuing Operations

$                 (3,618)

$                    1,489

$                   2,622

$                  10,925

$               11,418

Add: tax expense

(1,697)

991

1,392

6,350

7,036

Add: net interest expense

2,637

2,647

2,702

2,467

10,453

Add: depreciation

6,719

6,424

6,489

6,801

26,433

Add: amortization

2,814

2,724

2,638

2,641

10,817

EBITDA

6,855

14,275

15,843

29,184

66,157

Add: one-time unusual charges

8,988

1,031

1,950

(2,561)

9,408

EBITDA As Adjusted

15,843

15,306

17,793

26,623

75,565

Quarter

Ended

TTM

30-Sep-15

31-Dec-15

31-Mar-16

30-Jun-16

30-Jun-16

Net Income as Reported Continuing Operations

$                       631

$                    (125)

$                  (3,336)

$                   5,684

$                  2,854

Add: tax expense

218

(151)

2,446

3,429

5,942

Add: net interest expense

1,729

2,100

2,019

2,053

7,901

Add: depreciation

5,926

5,496

6,000

6,283

23,705

Add: amortization

2,575

2,413

2,499

2,482

9,969

EBITDA

11,079

9,733

9,628

19,931

50,371

Add: one-time unusual charges

3,318

2,906

10,556

544

17,324

EBITDA As Adjusted

14,397

12,639

20,184

20,475

67,695