Myers Industries (MYE) 8-K Myers Industries Reports 2019 First Quarter Results

Exhibit 99.1

Myers Industries Reports 2019 First Quarter Results

Margin expansion continues; reaffirms full-year outlook

May 8, 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 first quarter ended March 31, 2019.

First Quarter 2019 Business Highlights

• GAAP income per diluted share from continuing operations was $0.19, compared to $0.25 for the first quarter of 2018

• Adjusted income per diluted share from continuing operations was $0.23, compared to $0.24 for the first quarter of 2018

• Net sales decreased 8.8% compared to the first quarter of 2018

• Gross margin expanded 180 basis points to 32.7%

• Generated cash from continuing operations of $5.3 million and free cash flow of $2.4 million

• Company reaffirms full-year outlook of GAAP income per diluted share from continuing operations estimated to be between $0.70 and $0.80 for the full year 2019 and adjusted income per diluted share from continuing operations estimated to be between $0.75 and $0.85 for the full year 2019

“Our first quarter financial performance was in line with our expectations as we continued to improve our operations and margins. We continued to execute our Distribution Segment transformation and delivered sales growth for the second consecutive quarter, despite one less selling day compared to the first quarter of 2018. Net sales in our Material Handling Segment decreased due to more normalized seed box demand and continued decline in the Recreational Vehicle (RV) market. Despite this, we expanded our enterprise gross profit margin by 180 bps to 32.7% and adjusted operating income by 6.2%, demonstrating the impact of our continuous improvement operating model,” said Dave Banyard, President and Chief Executive Officer of Myers Industries.

Mr. Banyard continued, “Our cash flow performance during the quarter was impacted by higher variable compensation payouts and increased capital spending compared to the first quarter of 2018, as well as abuild-up of inventory in our Scepter business to prepare for anticipated demand for the new SmartControl fuel container in our consumer end market. We anticipate that our cash flow performance over the remainder of the year will return to more consistent levels seen in the last couple of years.”

	Quarter Ended March 31,
(Dollars in thousands, except per share data)	2019			2018			% Inc (Dec)
Net sales	$	139,115		$	152,568			(8.8	)%
Gross profit	$	45,559		$	47,115			(3.3	)%
Gross profit margin		32.7	%		30.9	%
Operating income	$	10,218		$	12,022			(15.0	)%
Income from continuing operations:
Income	$	6,643		$	7,755			(14.3	)%
Income per diluted share	$	0.19		$	0.25			(24.0	)%
Operating income as adjusted(1)	$	12,207		$	11,499			6.2	%
Income from continuing operations as adjusted(1):
Income	$	8,145		$	7,395			10.1	%
Income per diluted share	$	0.23		$	0.24			(4.2	)%
EBITDA as adjusted	$	18,105		$	18,048			0.3	%

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

Net sales decreased $13.5 million or 8.8% (8.4% excluding currency fluctuation) to $139.1 million, compared to the first quarter of 2018. The decrease was primarily the result of a sales decline in the Material Handling Segment. Gross profit decreased $1.6 million to $45.6 million, compared to the first quarter of 2018. Favorable price-cost margin and productivity savings mostly offset lower sales volume and an unfavorable sales mix during the quarter. Selling, general and administrative expenses decreased $1.0 million to $34.5 million, compared to the first quarter of 2018, due mostly to lower variable compensation and benefit costs. GAAP income per diluted share from continuing operations was $0.19, compared to $0.25 for the first quarter of 2018. Adjusted income per diluted share from continuing operations was $0.23, compared to $0.24 for the first quarter of 2018.

Segment Results

Net sales in the Material Handling Segment for the first quarter of 2019 decreased $13.9 million or 11.9% (11.4% excluding currency fluctuation) compared to the first quarter of 2018. The decrease in net sales was primarily due to sales declines in the Company’s food & beverage (unusually high seed box demand in first quarter 2018) and vehicle (declining RV sales) end markets. Segment adjusted EBITDA declined 0.7% to $22.8 million for the first quarter, compared to $23.0 million for the first quarter of 2018. Favorable price-cost margin and productivity savings mostly offset the impact of the lower sales volume and unfavorable sales mix.

Net sales in the Distribution Segment for the first quarter of 2019 increased $0.4 million or 1.1% compared to the first quarter of 2018. The segment’s adjusted EBITDA was flat compared to the first quarter of 2018. The Company also continued to execute its transformation plan, which includes enhancements in itsgo-to-market strategy, the implementation of 80/20 to drive improved contribution margins, and optimization of its logistics and overhead costs, with a goal to expand Distribution Segment EBITDA margin to 10% by the end of 2020.

2019 Outlook

For fiscal year 2019, the Company anticipates 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 & beverage and vehicle end markets due to more normalized seed box demand and a continued decline in the RV market following years of steady growth. The Company anticipates a favorable sales mix, combined with an ongoing focus on executing pricing and continuous improvement actions, leading to adjusted operating margin growth 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%. GAAP income per diluted share from continuing operations is estimated to be between $0.70 and $0.80 and adjusted 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 anticipated to be approximately $10 million.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Wednesday, May 8, 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 3294928. 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 3294928.

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, adjusted operating income, income from continuing operations as adjusted, EBITDA as adjusted, 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. Reconciliations of thenon-GAAP financial measures to the most directly comparable GAAP measures are 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
	March 31, 2019			March 31, 2018
Net sales	$	139,115		$	152,568
Cost of sales		93,556			105,453
Gross profit		45,559			47,115
Selling, general and administrative expenses		34,468			35,473
(Gain) loss on disposal of fixed assets		(43	)		(380	)
Impairment charges		916			—
Operating income		10,218			12,022
Interest expense, net		1,049			1,639
Income from continuing operations before income taxes		9,169			10,383
Income tax expense		2,526			2,628
Income from continuing operations		6,643			7,755
Income (loss) from discontinued operations, net of income tax		127			(911	)
Net income	$	6,770		$	6,844
Income per common share from continuing operations:
Basic	$	0.19		$	0.25
Diluted	$	0.19		$	0.25
Income (loss) per common share from discontinued operations:
Basic	$	—		$	(0.03	)
Diluted	$	—		$	(0.03	)
Net income per common share:
Basic	$	0.19		$	0.22
Diluted	$	0.19		$	0.22
Weighted average common shares outstanding:
Basic		35,388,989			30,518,715
Diluted		35,694,830			30,989,261

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

	Quarter Ended March 31,
	2019			2018			% Change
Net sales
Material Handling	$	102,951		$	116,809			(11.9	)%
Distribution		36,174			35,781			1.1	%
Inter-company Sales		(10	)		(22	)		—
Total	$	139,115		$	152,568			(8.8	)%
Operating income (loss)
Material Handling	$	16,207		$	16,730			(3.1	)%
Distribution		213			1,738			(87.7	)%
Corporate		(6,202	)		(6,446	)		—
Total	$	10,218		$	12,022			(15.0	)%
Operating income (loss) as adjusted
Material Handling	$	17,295		$	16,872			2.5	%
Distribution		1,114			1,073			3.8	%
Corporate		(6,202	)		(6,446	)		—
Total	$	12,207		$	11,499			6.2	%
Operating income margin as adjusted
Material Handling		16.8	%		14.4	%
Distribution		3.1	%		3.0	%
Corporate		n/a			n/a
Total		8.8	%		7.5	%
EBITDA as adjusted
Material Handling	$	22,821		$	22,985			(0.7	)%
Distribution		1,376			1,382			(0.5	)%
Corporate		(6,092	)		(6,319	)		—
Total	$	18,105		$	18,048			0.3	%
EBITDA margin as adjusted
Material Handling		22.2	%		19.7	%
Distribution		3.8	%		3.9	%
Corporate		n/a			n/a
Total		13.0	%		11.8	%

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

	March 31, 2019		December 31, 2018
Assets
Current Assets
Cash	$	67,316	$	58,894
Accounts receivable, net		71,914		72,939
Income tax receivable		—		4,892
Inventories		42,489		43,596
Prepaid expenses and other current assets		1,809		2,534
Total Current Assets		183,528		182,855
Property, plant, & equipment, net		59,334		65,460
Right of use asset - operating leases		5,529		—
Deferred income taxes		5,350		5,270
Other assets		92,047		95,060
Total Assets	$	345,788	$	348,645
Liabilities & Shareholders’ Equity
Current Liabilities
Accounts payable	$	53,818	$	60,849
Accrued expenses		31,770		36,574
Operating lease liability - short-term		1,895		—
Total Current Liabilities		87,483		97,423
Long-term debt		76,887		76,790
Operating lease liability - long-term		3,878		—
Other liabilities		19,114		19,794
Total Shareholders’ Equity		158,426		154,638
Total Liabilities & Shareholders’ Equity	$	345,788	$	348,645

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

	Quarter Ended March 31,
	2019			2018
Cash Flows From Operating Activities
Net income	$	6,770		$	6,844
Income (loss) from discontinued operations, net of income taxes		127			(911	)
Income from continuing operations		6,643			7,755
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities
Depreciation		4,012			4,479
Amortization		2,026			2,166
Accelerated depreciation associated with restructuring activities		—			16
Non-cash stock-based compensation expense		958			1,098
(Gain) loss on disposal of fixed assets		(43	)		(380	)
Interest income received (accrued) on note receivable		—			334
Impairment charges		916			—
Other		100			60
Payments on performance based compensation		(413	)		(1,249	)
Other long-term liabilities		379			(123	)
Cash flows provided by (used for) working capital
Accounts receivable		1,200			(4,473	)
Inventories		1,207			(796	)
Prepaid expenses and other current assets		733			447
Accounts payable and accrued expenses		(12,417	)		3,504
Net cash provided by (used for) operating activities - continuing operations		5,301			12,838
Net cash provided by (used for) operating activities - discontinued operations		7,297			(2,085	)
Net cash provided by (used for) operating activities		12,598			10,753
Cash Flows From Investing Activities
Capital expenditures		(2,933	)		(1,206	)
Proceeds from sale of property, plant and equipment		4,486			2,353
Net cash provided by (used for) investing activities - continuing operations		1,553			1,147
Net cash provided by (used for) investing activities - discontinued operations		—			—
Net cash provided by (used for) investing activities		1,553			1,147
Cash Flows From Financing Activities
Net borrowing (repayments) on credit facility		—			(6,722	)
Cash dividends paid		(4,940	)		(4,161	)
Proceeds from issuance of common stock		146			452
Shares withheld for employee taxes on equity awards		(974	)		(359	)
Net cash provided by (used for) financing activities - continuing operations		(5,768	)		(10,790	)
Net cash provided by (used for) financing activities - discontinued operations		—			—
Net cash provided by (used for) financing activities		(5,768	)		(10,790	)
Foreign exchange rate effect on cash		39			(606	)
Net increase in cash and restricted cash		8,422			504
Cash and restricted cash at January 1		58,894			11,179
Cash and restricted cash at March 31	$	67,316		$	11,683

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

	Quarter Ended March 31, 2019
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	102,951		$	36,174		$	139,125		$	(10	)	$	139,115
GAAP Gross profit								45,559			—			45,559
Add: Restructuring expenses and other adjustments								172			—			172
Gross profit as adjusted								45,731			—			45,731
Gross profit margin as adjusted								32.9	%		n/a			32.9	%
GAAP Operating income (loss)		16,207			213			16,420			(6,202	)		10,218
Add: Restructuring expenses and other adjustments(1)		172			901			1,073			—			1,073
Add: Asset Impairment		916			—			916			—			916
Operating income (loss) as adjusted		17,295			1,114			18,409			(6,202	)		12,207
Operating income margin as adjusted		16.8	%		3.1	%		13.2	%		n/a			8.8	%
Add: Depreciation and amortization		5,570			262			5,832			110			5,942
Less: Depreciation adjustments		(44	)		—			(44	)		—			(44	)
EBITDA as adjusted	$	22,821		$	1,376		$	24,197		$	(6,092	)	$	18,105
EBITDA margin as adjusted		22.2	%		3.8	%		17.4	%		n/a			13.0	%
(1)   Includes gross profit adjustments of $172 and SG&A adjustments of $901

	Quarter Ended March 31, 2018
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	116,809		$	35,781		$	152,590		$	(22	)	$	152,568
GAAP Gross profit								47,115			—			47,115
Add: Restructuring expenses and other adjustments								119			—			119
Gross profit as adjusted								47,234			—			47,234
Gross profit margin as adjusted								31.0	%		n/a			31.0	%
GAAP Operating income (loss)		16,730			1,738			18,468			(6,446	)		12,022
Add: Restructuring expenses and other adjustments(1)		142			—			142			—			142
Less: Gain on sale of assets		—			(665	)		(665	)		—			(665	)
Operating income (loss) as adjusted		16,872			1,073			17,945			(6,446	)		11,499
Operating income margin as adjusted		14.4	%		3.0	%		11.8	%		n/a			7.5	%
Add: Depreciation and amortization		6,129			309			6,438			127			6,565
Less: Depreciation adjustments		(16	)		—			(16	)		—			(16	)
EBITDA as adjusted	$	22,985		$	1,382		$	24,367		$	(6,319	)	$	18,048
EBITDA margin as adjusted		19.7	%		3.9	%		16.0	%		n/a			11.8	%
(1)   Includes gross profit adjustments of $119 and SG&A adjustments of $23

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

	Quarter Ended March 31,
	2019			2018
GAAP Operating income	$	10,218		$	12,022
Add: Restructuring expenses and other adjustments		1,073			142
Add: Asset Impairment		916			—
Less: Loss (gain) on sale of assets		—			(665	)
Operating income as adjusted		12,207			11,499
Less: Interest expense, net		(1,049	)		(1,639	)
Income before taxes as adjusted		11,158			9,860
Less: Income tax expense(1)		(3,013	)		(2,465	)
Income from continuing operations as adjusted	$	8,145		$	7,395
Adjusted earnings per diluted share from continuing operations	$	0.23		$	0.24
(1)   Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2019 is 27% and in 2018 was 25%.

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

	March 31, 2019			March 31, 2018
Net cash provided by (used for) operating activities - continuing operations	$	5,301		$	12,838
Capital expenditures		(2,933	)		(1,206	)
Free cash flow	$	2,368		$	11,632