Myers Industries 8K Reports 2016 Second Quarter Results | MYE 3 Aug 16

AUGUST

3, 2016

MYERS

INDUSTRIES, INC.

SECOND

QUARTER

EARNINGS

PRESENTATION

Exhibit 99.2

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

number

risks

and

uncertainties

that

could

cause

actual

results

differ

materially

from

those

expressed

implied

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

SOFTER

MARKET

CONDITIONS

PARTICULARLY

CAPITAL

SPENDING

CONTINUING OPERATIONS

2015

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

Q2 GAAP FINANCIAL

SUMMARY

$MILLIONS

EXCEPT

EPS

AND

PERCENTAGES

CONTINUING OPERATIONS

2015

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

Q2 ADJUSTED

FINANCIAL

SUMMARY

$20.5M ADJUSTED

EBITDA; IN

LINE

WITH

$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

COMMERCIAL

EXECUTION

CONTINUES

THE

PRIORITY

DISTRIBUTION

$ Millions

MATERIAL HANDLING

$115.8

$100.9

$20.8

$14.3

$18.3

$13.3

$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

$0.0

$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

LOWERING

OUTLOOK

; GOOD

PROGRESS

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

2015 SALES

MYE 2016 GROWTH

OUTLOOK

FLAT

APPENDIX

2016 KEY

ASSUMPTIONS

Capital expenditures:

$15 -

$18 million

Interest expense:

$8 -

$10 million

D&A:

$35 -

$37 million

Effective tax rate (normalized):

36%

RECONCILIATION

NON-GAAP MEASURES

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED)

(Dollars in thousands)

Note

Reconciliation

Income

and

Earnings

Data:

Selling,

general

and

administrative

expenses

excluding

the

items

above

the

text

this

presentation

and

this

reconciliation

chart

non-GAAP

financial

measure

that

Myers

Industries,

Inc.

calculates

according

the

schedule

above

using

GAAP

amounts

from

the

unaudited

Condensed

Consolidated

Statement

Operations.

The

Company

believes

that

the

excluded

items

are

not

primarily

core

operational

activities.

The

Company

believes

that

selling,

general

and

administrative

expenses

excluding

items

that

are

not

primarily

core

operating

activities

generally

viewed

providing

useful

information

regarding

company's

operating

profitability.

Management

uses

selling,

general

and

administrative

expenses

excluding

these

items

well

other

financial

measures

connection

with

its

decision-making

activities.

Selling,

general

and

administrative

expenses

excluding

these

items

should

not

considered

isolation

substitute

for

selling,

general

and

administrative

expenses

prepared

accordance

with

GAAP.

The

Company's

method

for

calculating

selling,

general

and

administrative

expenses

excluding

these

items

may

not

comparable

methods

used

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

NON-GAAP MEASURES

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INCOME (LOSS) BEFORE TAXES BY SEGMENT (UNAUDITED)

(Dollars in millions, except per share data)

Note

Reconciliation

Income

and

Earnings

Data:

Income

(loss)

excluding

the

items

above

the

text

this

presentation

and

this

reconciliation

chart

non-GAAP

financial

measure

that

Myers

Industries,

Inc.

calculates

according

the

schedule

above

using

GAAP

amounts

from

the

unaudited

Condensed

Consolidated

Statement

Operations.

The

Company

believes

that

the

excluded

items

are

not

primarily

core

operational

activities.

The

Company

believes

that

income

(loss)

excluding

items

that

are

not

primarily

core

operating

activities

generally

viewed

providing

useful

information

regarding

company's

operating

profitability.

Management

uses

income

(loss)

excluding

these

items

well

other

financial

measures

connection

with

its

decision-making

activities.

Income

(loss)

excluding

these

items

should

not

considered

isolation

substitute

for

income

(loss)

prepared

accordance

with

GAAP.

The

Company's

method

for

calculating

income

(loss)

excluding

these

items

may

not

comparable

methods

used

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)

Asset impairments

1,329

9,874

Reduction to contingent liability

(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

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

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

NON-GAAP MEASURES

MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

COMBINED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands)

Note

Reconciliation

Income

and

Earnings

Data:

EBITDA

adjusted

financial

measure

that

Myers

Industries,

Inc.

calculates

according

the

schedule

above

using

amounts

from

the

unaudited

Reconciliation

Non-GAAP

Financial

Measures

Income

(Loss)

Before

Taxes

Segment

and

GAAP

amounts

from

the

unaudited

Condensed

Consolidated

Statement

Operations.

The

Company

believes

that

EBITDA

adjusted

provides

useful

information

regarding

company's

operating

profitability.

Management

uses

EBITDA

adjusted

well

other

financial

measures

connection

with

its

decision-making

activities.

EBITDA

adjusted

should

not

considered

isolation

substitute

for

net

income

(loss),

income

(loss)

before

taxes

other

consolidated

income

data

prepared

accordance

with

GAAP.

The

Company's

method

for

calculating

EBITDA

adjusted

may

not

comparable

methods

used

other

companies.

Quarter

Ended

TTM

30-Sep-14

31-Dec-14

31-Mar-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

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

Myers Industries (MYE) 8-KMyers Industries Reports 2016 Second Quarter Results