Myers Industries (MYE) 8-K Myers Industries Reports 2018 Fourth Quarter and Full Year Results

Exhibit 99.1

Myers Industries Reports 2018 Fourth Quarter and Full Year Results

Strong earnings growth in 2018; free cash flow of $55 million

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

Business Highlights

• GAAP income per diluted share from continuing operations for 2018 was $0.09 for the fourth quarter and a loss of $0.05 for the full year (includes $33.3 million ofpre-tax charges related to the Company’s sale of its Lawn and Garden business, which was sold in 2015), compared to income of $0.06 and $0.35, respectively, for the fourth quarter and full year 2017

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

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

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

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

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

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

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

	Quarter Ended December 31,									Year Ended December 31,
(Dollars in thousands, except per share data)	2018			2017			% Inc (Dec)			2018			2017			% Inc (Dec)
Net sales	$	138,388		$	140,106			(1.2	)%	$	566,735		$	547,043			3.6	%
Gross profit	$	42,096		$	38,257			10.0	%	$	179,293		$	157,453			13.9	%
Gross profit margin		30.4	%		27.3	%					31.6	%		28.8	%
Operating income	$	7,033		$	4,003			75.7	%	$	6,327		$	24,888			(74.6	)%
Income (loss) from continuing operations:
Income (loss)	$	3,126		$	1,821			71.7	%	$	(1,648	)	$	10,844			(115.2	)%
Income (loss) per diluted share	$	0.09		$	0.06			50.0	%	$	(0.05	)	$	0.35			(114.3	)%
Operating income as adjusted(1)	$	7,652		$	5,642			35.6	%	$	40,425		$	31,468			28.5	%
Income (loss) from continuing operations as adjusted(1):
Income	$	4,768		$	2,674			78.3	%	$	25,835		$	15,473			67.0	%
Income per diluted share	$	0.13		$	0.09			44.4	%	$	0.76		$	0.51			49.0	%
EBITDA as adjusted	$	13,829		$	12,532			10.3	%	$	65,965		$	60,306			9.4	%

(1) Detail regarding the adjustments is provided on the Reconciliations ofNon-GAAP Financial Measures included in this release.

Fourth-Quarter 2018 Financial Summary

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

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

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

Full-Year 2018 Financial Summary

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

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

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

2019 Outlook

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

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

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, February 28, at 8:30 a.m. ET. The call is anticipated to last approximately one hour and may be accessed by dialing: (US)833-233-3452 or (Int’l)647-689-4129. The Conference ID # is 1662969. Callers are asked to sign on at least five minutes in advance. The live webcast of the conference call can be accessed from the Investor Relations section of the Company’s website atwww.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)800-585-8367 or (Int’l)416-621-4642. The Conference ID # is 1662969.

Use ofNon-GAAP Financial Measures

The Company uses certainnon-GAAP measures in this release. Adjusted income per diluted share from continuing operations, operating income as adjusted, income from continuing operations as adjusted, EBITDA as adjusted, adjusted operating income, adjusted EBITDA, adjusted EPS and free cash flow arenon-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of thenon-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 under vehicle service industry in the United States. Visitwww.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed “forward-looking”. Words such as “expect”, “believe”, “project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”, “target”, “goal”, “view” and similar expressions identify forward-looking statements. These statements are based on management’s current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company’s control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities, or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; and other risks as detailed in the Company’s10-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 atwww.sec.gov and on the Company’s Investor Relations section of its website atwww.myersindustries.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

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

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)

	Quarter Ended						Year Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Net sales	$	138,388		$	140,106		$	566,735		$	547,043
Cost of sales		96,292			101,849			387,442			389,590
Gross profit		42,096			38,257			179,293			157,453
Selling, general and administrative expenses		34,975			33,724			139,335			135,503
Loss (gain) on disposal of fixed assets		88			530			(8	)		(3,482	)
Impairment charges		—			—			308			544
Other expenses		—			—			33,331			—
Operating income		7,033			4,003			6,327			24,888
Interest expense, net		1,103			1,464			4,938			7,292
Loss on extinguishment of debt		—			1,888			—			1,888
Income from continuing operations before income taxes		5,930			651			1,389			15,708
Income tax expense (benefit)		2,804			(1,170	)		3,037			4,864
Income (loss) from continuing operations		3,126			1,821			(1,648	)		10,844
Income (loss) from discontinued operations, net of income taxes		(788	)		(20,074	)		(1,701	)		(20,733	)
Net income (loss)	$	2,338		$	(18,253	)	$	(3,349	)	$	(9,889	)
Income (loss) per common share from continuing operations:
Basic	$	0.09		$	0.06		$	(0.05	)	$	0.36
Diluted	$	0.09		$	0.06		$	(0.05	)	$	0.35
Income (loss) per common share from discontinued operations:
Basic	$	(0.02	)	$	(0.66	)	$	(0.05	)	$	(0.69	)
Diluted	$	(0.02	)	$	(0.65	)	$	(0.05	)	$	(0.68	)
Net income (loss) per common share:
Basic	$	0.07		$	(0.60	)	$	(0.10	)	$	(0.33	)
Diluted	$	0.07		$	(0.59	)	$	(0.10	)	$	(0.33	)
Weighted average common shares outstanding:
Basic		35,355,863			30,423,324			33,426,855			30,222,289
Diluted		35,576,611			30,851,536			33,426,855			30,562,646

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

	Quarter Ended December 31,									Year Ended December 31,
	2018			2017			% Change			2018			2017			% Change
Net sales
Material Handling	$	99,578		$	101,613			(2.0	)%	$	417,199		$	391,313			6.6	%
Distribution		38,821			38,592			0.6	%		149,636			156,428			(4.3	)%
Inter-company Sales		(11	)		(99	)		—			(100	)		(698	)		—
Total	$	138,388		$	140,106			(1.2	)%	$	566,735		$	547,043			3.6	%
Operating income (loss)
Material Handling	$	13,083		$	8,199			59.6	%	$	57,948		$	38,874			49.1	%
Distribution		371			1,331			(72.1	)%		7,441			9,073			(18.0	)%
Corporate		(6,421	)		(5,527	)		—			(59,062	)		(23,059	)		—
Total	$	7,033		$	4,003			75.7	%	$	6,327		$	24,888			(74.6	)%
Operating income (loss) as adjusted
Material Handling	$	13,501		$	8,838			52.8	%	$	58,871		$	44,128			33.4	%
Distribution		371			1,331			(72.1	)%		6,776			9,073			(25.3	)%
Corporate		(6,220	)		(4,527	)		—			(25,222	)		(21,733	)		—
Total	$	7,652		$	5,642			35.6	%	$	40,425		$	31,468			28.5	%
Operating income margin as adjusted
Material Handling		13.6	%		8.7	%					14.1	%		11.3	%
Distribution		1.0	%		3.4	%					4.5	%		5.8	%
Corporate		n/a			n/a						n/a			n/a
Total		5.5	%		4.0	%					7.1	%		5.8	%
EBITDA as adjusted
Material Handling	$	19,318		$	15,195			27.1	%	$	82,816		$	70,641			17.2	%
Distribution		631			1,640			(61.5	)%		7,945			10,247			(22.5	)%
Corporate		(6,120	)		(4,303	)		—			(24,796	)		(20,582	)		—
Total	$	13,829		$	12,532			10.3	%	$	65,965		$	60,306			9.4	%
EBITDA margin as adjusted
Material Handling		19.4	%		15.0	%					19.9	%		18.1	%
Distribution		1.6	%		4.2	%					5.3	%		6.6	%
Corporate		n/a			n/a						n/a			n/a
Total		10.0	%		8.9	%					11.6	%		11.0	%

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

	December 31, 2018		December 31, 2017
Assets
Current Assets
Cash	$	58,894	$	2,520
Restricted cash		—		8,659
Accounts receivable, net		72,939		76,509
Income tax receivable		4,892		12,954
Inventories		43,596		47,166
Prepaid expenses and other current assets		2,534		2,204
Total Current Assets		182,855		150,012
Property, plant, & equipment, net		65,460		83,904
Deferred income taxes		5,270		120
Other assets		95,060		121,906
Total Assets	$	348,645	$	355,942
Liabilities & Shareholders’ Equity
Current Liabilities
Accounts payable	$	60,849	$	63,581
Accrued expenses		36,574		35,072
Total Current Liabilities		97,423		98,653
Long-term debt, net		76,790		151,036
Other liabilities		19,794		8,236
Deferred income taxes		—		4,265
Total Shareholders’ Equity		154,638		93,752
Total Liabilities & Shareholders’ Equity	$	348,645	$	355,942

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

	Year Ended December 31,
	2018			2017
Cash Flows From Operating Activities
Net income (loss)	$	(3,349	)	$	(9,889	)
Income (loss) from discontinued operations, net of income taxes		(1,701	)		(20,733	)
Income (loss) from continuing operations		(1,648	)		10,844
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities
Depreciation		17,638			19,952
Amortization		8,485			8,886
Accelerated depreciation associated with restructuring activities		16			1,993
Non-cash stock-based compensation expense		4,257			3,626
(Gain) loss on disposal of fixed assets		(8	)		(3,482	)
Provision for loss on note receivable		23,008			—
Lease guarantee contingency		10,323			—
Loss on extinguishment of debt		—			1,888
Deferred taxes		(9,450	)		(5,663	)
Interest income received (accrued) on note receivable		(361	)		(1,384	)
Impairment charges		308			544
Other		457			256
Payments on performance based compensation		(1,249	)		(1,010	)
Other long-term liabilities		180			723
Cash flows provided by (used for) working capital
Accounts receivable		4,927			(6,709	)
Inventories		3,151			(1,876	)
Prepaid expenses and other current assets		(353	)		2,209
Accounts payable and accrued expenses		713			18,299
Net cash provided by (used for) operating activities - continuing operations		60,394			49,096
Net cash provided by (used for) operating activities - discontinued operations		858			(4,633	)
Net cash provided by (used for) operating activities		61,252			44,463
Cash Flows From Investing Activities
Capital expenditures		(5,123	)		(5,814	)
Proceeds from sale of property, plant and equipment		2,633			11,058
Net cash provided by (used for) investing activities - continuing operations		(2,490	)		5,244
Net cash provided by (used for) investing activities - discontinued operations		—			(1,107	)
Net cash provided by (used for) investing activities		(2,490	)		4,137
Cash Flows From Financing Activities
Net borrowing (repayments) on credit facility		(74,557	)		(16,474	)
Repayments of senior unsecured notes		—			(23,798	)
Cash dividends paid		(17,862	)		(16,341	)
Proceeds from issuance of common stock		2,853			4,527
Proceeds from public offering of common stock, net of equity issuance costs		79,522			—
Shares withheld for employee taxes on equity awards		(714	)		(620	)
Deferred financing costs		—			(1,030	)
Net cash provided by (used for) financing activities - continuing operations		(10,758	)		(53,736	)
Net cash provided by (used for) financing activities - discontinued operations		—			—
Net cash provided by (used for) financing activities		(10,758	)		(53,736	)
Foreign exchange rate effect on cash		(289	)		(208	)
Less: Net increase (decrease) in cash classified within discontinued operations		—			(5,484	)
Net increase in cash and restricted cash		47,715			140
Cash and restricted cash at January 1		11,179			11,039
Cash and restricted cash at December 31	$	58,894		$	11,179

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

	Quarter Ended December 31, 2018
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	99,578		$	38,821		$	138,399		$	(11	)	$	138,388
GAAP Gross profit								42,096			—			42,096
Add: Restructuring expenses and other adjustments								171			—			171
Gross profit as adjusted								42,267			—			42,267
Gross profit margin as adjusted								30.5	%		n/a			30.5	%
GAAP Operating income (loss)		13,083			371			13,454			(6,421	)		7,033
Add: Restructuring expenses and other adjustments(1)		418			—			418			201			619
Operating income (loss) as adjusted		13,501			371			13,872			(6,220	)		7,652
Operating income margin as adjusted		13.6	%		1.0	%		10.0	%		n/a			5.5	%
Add: Depreciation and amortization		5,883			260			6,143			100			6,243
Less: Depreciation adjustments		(66	)		—			(66	)		—			(66	)
EBITDA as adjusted	$	19,318		$	631		$	19,949		$	(6,120	)	$	13,829
EBITDA margin as adjusted		19.4	%		1.6	%		14.4	%		n/a			10.0	%
(1)   Includes gross profit adjustments of $171 and SG&A adjustments of $448
	Quarter Ended December 31, 2017
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	101,613		$	38,592		$	140,205		$	(99	)	$	140,106
GAAP Gross profit								38,257			—			38,257
Add: Restructuring expenses and other adjustments								422			—			422
Gross profit as adjusted								38,679			—			38,679
Gross profit margin as adjusted								27.6	%		n/a			27.6	%
GAAP Operating income (loss)		8,199			1,331			9,530			(5,527	)		4,003
Add: Restructuring expenses and other adjustments(1)		498			—			498			1,000			1,498
Add: Loss on sale of assets		141			—			141			—			141
Operating income (loss) as adjusted		8,838			1,331			10,169			(4,527	)		5,642
Operating income margin as adjusted		8.7	%		3.4	%		7.3	%		n/a			4.0	%
Add: Depreciation and amortization		6,332			309			6,641			224			6,865
Less: Depreciation adjustments		25			—			25			—			25
EBITDA as adjusted	$	15,195		$	1,640		$	16,835		$	(4,303	)	$	12,532
EBITDA margin as adjusted		15.0	%		4.2	%		12.0	%		n/a			8.9	%
(1)   Includes gross profit adjustments of $422 and SG&A adjustments of $1,076

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

	Year Ended December 31, 2018
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	417,199		$	149,636		$	566,835		$	(100	)	$	566,735
GAAP Gross profit								179,293			—			179,293
Add: Restructuring expenses and other adjustments								746			—			746
Gross profit as adjusted								180,039			—			180,039
Gross profit margin as adjusted								31.8	%		n/a			31.8	%
GAAP Operating income (loss)		57,948			7,441			65,389			(59,062	)		6,327
Add: Restructuring expenses and other adjustments(1)		1,131			—			1,131			201			1,332
Add: Provision for loss on note receivable		—			—			—			23,008			23,008
Add: Lease guarantee		—			—			—			10,323			10,323
Add: Asset impairment		—			—			—			308			308
Less: Gain on sale of assets		(208	)		(665	)		(873	)		—			(873	)
Operating income (loss) as adjusted		58,871			6,776			65,647			(25,222	)		40,425
Operating income margin as adjusted		14.1	%		4.5	%		11.6	%		n/a			7.1	%
Add: Depreciation and amortization		24,158			1,169			25,327			426			25,753
Less: Depreciation adjustments		(213	)		—			(213	)		—			(213	)
EBITDA as adjusted	$	82,816		$	7,945		$	90,761		$	(24,796	)	$	65,965
EBITDA margin as adjusted		19.9	%		5.3	%		16.0	%		n/a			11.6	%
(1)   Includes gross profit adjustments of $746 and SG&A adjustments of $586
	Year Ended December 31, 2017
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	391,313		$	156,428		$	547,741		$	(698	)	$	547,043
GAAP Gross profit								157,453			—			157,453
Add: Restructuring expenses and other adjustments								7,501			—			7,501
Gross profit as adjusted								164,954			—			164,954
Gross profit margin as adjusted								30.1	%		n/a			30.2	%
GAAP Operating income (loss)		38,874			9,073			47,947			(23,059	)		24,888
Add: Restructuring expenses and other adjustments(1)		8,656			—			8,656			1,326			9,982
Add: Asset impairment		544			—			544			—			544
Less: Gain on sale of assets		(3,946	)		—			(3,946	)		—			(3,946	)
Operating income (loss) as adjusted		44,128			9,073			53,201			(21,733	)		31,468
Operating income margin as adjusted		11.3	%		5.8	%		9.7	%		n/a			5.8	%
Add: Depreciation and amortization		28,506			1,174			29,680			1,151			30,831
Less: Depreciation adjustments		(1,993	)		—			(1,993	)		—			(1,993	)
EBITDA as adjusted	$	70,641		$	10,247		$	80,888		$	(20,582	)	$	60,306
EBITDA margin as adjusted		18.1	%		6.6	%		14.8	%		n/a			11.0	%
(1)   Includes gross profit adjustments of $7,501 and SG&A adjustments of $2,481

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

	Quarter Ended December 31,						Year Ended December 31,
	2018			2017			2018			2017
GAAP Operating income	$	7,033		$	4,003		$	6,327		$	24,888
Add: Restructuring expenses and other adjustments		619			1,498			1,332			9,982
Add: Charges related to 2015 sale of Lawn & Garden business(1)		—			—			33,331			—
Add: Asset impairments		—			—			308			544
Less: Loss (gain) on sale of assets		—			141			(873	)		(3,946	)
Operating income as adjusted		7,652			5,642			40,425			31,468
Less: Interest expense, net		(1,103	)		(1,464	)		(4,938	)		(7,292	)
Income before taxes as adjusted		6,549			4,178			35,487			24,176
Less: Income tax expense(2)		(1,781	)		(1,504	)		(9,652	)		(8,703	)
Income from continuing operations as adjusted	$	4,768		$	2,674		$	25,835		$	15,473
Adjusted earnings per diluted share from continuing operations(3)	$	0.13		$	0.09		$	0.76		$	0.51

(1) Includes $23,008 for provision for loss on note receivable and $10,323 for lease guarantee

(2) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2018 was 27.2% and in 2017 was 36%

(3) Adjusted earnings per diluted share for year ended December 31, 2018 is calculated using 33,825,370 shares

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

	Year				YTD				Quarter
	December 31, 2018				September 30, 2018				December 31, 2018
Net cash provided by (used for) operating activities - continuing operations	$	60,394		-	$	41,121		=	$	19,273
Capital expenditures		(5,123	)	-		(3,560	)	=		(1,563	)
Free cash flow	$	55,271		-	$	37,561		=	$	17,710
	Year				YTD				Quarter
	December 31, 2017				September 30, 2017				December 31, 2017
Net cash provided by (used for) operating activities - continuing operations	$	49,096		-	$	40,284		=	$	8,812
Capital expenditures		(5,814	)	-		(5,109	)	=		(705	)
Free cash flow	$	43,282		-	$	35,175		=	$	8,107