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

Exhibit 99.1

Myers Industries Reports 2019 Third Quarter Results

Updates Full-Year Outlook

November 5, 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 third quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights

• GAAP income per diluted share from continuing operations was $0.15, compared to a loss of $0.60 for the third quarter of 2018, which included a charge of $33.3 million related to the 2015 sale of the Company’s Lawn and Garden business; adjusted income per diluted share from continuing operations was $0.15, which was flat compared to the third quarter of 2018

• Net sales decreased 7.2% to $125.5 million

• Adjusted operating income increased 7.9% to $8.5 million, despite a $3.5 million charge for estimated product replacement costs related to a manufacturing defect in certain boxes produced within the Material Handling Segment in 2019

• Generated cash flow from continuing operations of $23.3 million and free cash flow of $22.1 million

• Completed acquisition of Tuffy Manufacturing for $18 million in August 2019

Updated Full-Year 2019 Outlook

• Full-year 2019 net sales are now expected to be down high single digits due primarily to soft demand in the Company’s food and beverage end market, which is anticipated to continue during the fourth quarter

• Full-year GAAP income per diluted share from continuing operations is expected to be in the range of $0.65 to $0.70 for 2019; adjusted income per diluted share from continuing operations is expected to be in the range of $0.75 to $0.80

“Third quarter adjusted operating income grew despite a decrease in net sales and the charge for estimated product replacement costs in our Material Handling Segment. Net sales were down 7.2% due to softer than anticipated demand in our food and beverage and industrial end markets coupled with continued weakness in our consumer and vehicle end markets. The volume declines were more than offset by cost decreases and savings from the Distribution Segment transformation,” said Andrean Horton, Interim President and Chief Executive Officer of Myers Industries.

Ms. Horton continued, “Within our Distribution Segment, we continued to make progress and execute on the transformation while also integrating the recently acquired Tuffy Manufacturing Industries, Inc. The 2019 third quarter marked the fourth consecutive quarter of net sales growth with adjusted EBITDA increasing by 38.9%. We continue to be on track to meet our Distribution Segment EBITDA margin goal of 10% by the end of 2020.”

Overall Results

Third quarter 2019 net sales decreased $9.7 million or 7.2% to $125.5 million, compared to the third quarter of 2018. The decrease was the result of a sales decline in the Material Handling Segment. Gross profit decreased $2.5 million to $39.6 million, compared to the third quarter of 2018. Gross profit margin increased 40 basis points to 31.5%. Favorable price-cost margin more than offset the lower sales volume and $3.5 million charge taken during the quarter for estimated product replacement costs. Selling, general and administrative expenses decreased $2.9 million to $31.5 million, compared to the third quarter of 2018, due primarily to lower variable compensation costs and savings from the Distribution Segment’s transformation initiatives. GAAP income per diluted share from continuing operations was $0.15, compared to a loss of $0.60 for the third quarter of 2018 when the Company recognized $33.3 million of charges related to its Lawn and Garden business which was sold in 2015. Adjusted income per diluted share from continuing operations was $0.15, which was flat compared to the third quarter of 2018.

	Quarter Ended September 30,									Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2019			2018			% Inc (Dec)			2019			2018			% Inc (Dec)
Net sales	$	125,480		$	135,219			(7.2	)%	$	398,880		$	428,347			(6.9	)%
Gross profit	$	39,586		$	42,091			(6.0	)%	$	132,081		$	137,197			(3.7	)%
Gross profit margin		31.5	%		31.1	%					33.1	%		32.0	%
Operating income (loss)	$	8,060		$	(25,839	)		—		$	28,460		$	(706	)		—
Income (loss) from continuing operations:
Income (loss)	$	5,219		$	(21,137	)		—		$	18,468		$	(4,774	)		—
Income (loss) per diluted share	$	0.15		$	(0.60	)		—		$	0.52		$	(0.15	)		—
Operating income as adjusted(1)	$	8,516		$	7,893			7.9	%	$	34,905		$	32,773			6.5	%
Income from continuing operations as adjusted(1):
Income	$	5,492		$	5,258			4.4	%	$	23,248		$	21,704			7.1	%
Income per diluted share	$	0.15		$	0.15			0.0	%	$	0.65		$	0.65			0.0	%
EBITDA as adjusted(1)	$	14,011		$	14,157			(1.0	)%	$	52,260		$	52,136			0.2	%

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

Segment Results

Net sales in the Material Handling Segment (consumer, food and beverage, industrial and vehicle end markets) for the third quarter of 2019 decreased $13.6 million or 13.9% compared to the third quarter of 2018. The decrease in net sales was primarily due to sales decreases in the Company’s food and beverage (lower seed box sales) and industrial (lower military product sales) end markets. The segment’s adjusted EBITDA declined 9.7% to $15.4 million for the third quarter of 2019, compared to $17.1 million for the third quarter of 2018. The lower sales volume and charge for estimated product replacement costs were partially offset by favorable price-cost margin and lower variable incentive compensation costs. Material Handling adjusted EBITDA margin for the third quarter increased 90 basis points to 18.4%.

Net sales in the Distribution Segment (auto aftermarket end market) for the third quarter of 2019 increased $3.8 million or 10.2% compared to the third quarter of 2018. Incremental sales due to the August 2019 Tuffy acquisition totaled $2.4 million. The segment’s adjusted EBITDA increased 38.9% to $4.0 million compared to the third quarter of 2018, due primarily to savings from the segment’s transformation initiatives, higher sales volume and the Tuffy acquisition. The Company continues 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 EBITDA margin to 10% by the end of 2020. Distribution adjusted EBITDA margin for the third quarter increased 190 basis points to 9.5%.

2019 Outlook

For the full-year 2019, the Company now anticipates that total revenue year-over-year will be down high single digits versus its previous expectation of downlow-to-mid single digits year-over-year. While the Company anticipates full-year sales growth in its Distribution Segment, it expects that growth to be more than offset by lower year-over-year sales in its Material Handling Segment.

“The Tuffy acquisition completed in the third quarter has already contributed to the Distribution Segment’s growth and we expect that acquisition along with our strategic initiatives to result in increased sales for the fourth quarter as well,” said Ms. Horton. “With respect to our Material Handling Segment, there continues to be uncertainty in the farm sector due to the late planting season, and some of our food and beverage customers have indicated that demand for the upcoming season will be softer than expected. Additionally, sales in our industrial end market declined year-over-year during the third quarter due to softer than anticipated demand for our military products. Although we anticipate continued sales growth in Distribution, we believe those sales increases won’t be enough to overcome the expected market declines in Material Handling. As a result, we are adjusting our full-year sales outlook to reflect the impact of these updated expectations.”

The Company anticipates depreciation and amortization to be approximately $24 million, net interest expense to be approximately $4 million, and the effective tax rate to be approximately 27%. GAAP income per diluted share from continuing operations is estimated to be in the range of $0.65 to $0.70, which is updated from the Company’s previous estimate of $0.62 to $0.72. The updated GAAP earnings outlook reflects the decreased sales outlook and the $3.5 million charge for estimated product replacement costs, partially offset by a decrease in incentive compensation costs and an anticipated reversal of approximately $2.3 million of stock compensation

costs during the fourth quarter of 2019, resulting from the departure of the Company’s CEO in October 2019. The Company anticipates that adjusted income per diluted share from continuing operations will be in the range of $0.75 to $0.80, which is updated from the Company’s previous estimate of $0.75 to $0.85, and is based on a fully diluted share count of 36 million shares. The updated adjusted earnings outlook reflects the same items mentioned above, except for the anticipated reversal of approximately $2.3 million of stock compensation costs during the fourth quarter of 2019, which the Company expects to exclude from adjusted earnings. 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 Tuesday, November 5, 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 8985798. 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 8985798.

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					Nine Months Ended
	September 30, 2019		September 30, 2018			September 30, 2019			September 30, 2018
Net sales	$	125,480	$	135,219		$	398,880		$	428,347
Cost of sales		85,894		93,128			266,799			291,150
Gross profit		39,586		42,091			132,081			137,197
Selling, general and administrative expenses		31,515		34,381			102,792			104,360
(Gain) loss on disposal of fixed assets		11		218			(87	)		(96	)
Impairment charges		—		—			916			308
Other expenses		—		33,331			—			33,331
Operating income (loss)		8,060		(25,839	)		28,460			(706	)
Interest expense, net		993		883			3,059			3,835
Income (loss) from continuing operations before income taxes		7,067		(26,722	)		25,401			(4,541	)
Income tax expense (benefit)		1,848		(5,585	)		6,933			233
Income (loss) from continuing operations		5,219		(21,137	)		18,468			(4,774	)
Income (loss) from discontinued operations, net of income tax		—		(2	)		127			(913	)
Net income (loss)	$	5,219	$	(21,139	)	$	18,595		$	(5,687	)
Income (loss) per common share from continuing operations:
Basic	$	0.15	$	(0.60	)	$	0.52		$	(0.15	)
Diluted	$	0.15	$	(0.60	)	$	0.52		$	(0.15	)
Income (loss) per common share from discontinued operations:
Basic	$	—	$	—		$	—		$	(0.02	)
Diluted	$	—	$	—		$	—		$	(0.02	)
Net income (loss) per common share:
Basic	$	0.15	$	(0.60	)	$	0.52		$	(0.17	)
Diluted	$	0.15	$	(0.60	)	$	0.52		$	(0.17	)
Weighted average common shares outstanding:
Basic		35,495,157		35,229,171			35,451,980			32,783,853
Diluted		35,759,032		35,229,171			35,823,231			32,783,853

MYERS INDUSTRIES, INC.

SALES AND EARNINGS BY SEGMENT (UNAUDITED)

(Dollars in thousands)

	Quarter Ended September 30,									Nine Months Ended September 30,
	2019			2018			% Change			2019			2018			% Change
Net sales
Material Handling	$	84,110		$	97,682			(13.9	)%	$	282,963		$	317,621			(10.9	)%
Distribution		41,388			37,557			10.2	%		115,957			110,815			4.6	%
Inter-company Sales		(18	)		(20	)		—			(40	)		(89	)		—
Total	$	125,480		$	135,219			(7.2	)%	$	398,880		$	428,347			(6.9	)%
Operating income (loss)
Material Handling	$	10,385		$	10,812			(3.9	)%	$	44,181		$	44,865			(1.5	)%
Distribution		3,382			2,546			32.8	%		6,923			7,070			(2.1	)%
Corporate		(5,707	)		(39,197	)		—			(22,644	)		(52,641	)		—
Total	$	8,060		$	(25,839	)		(131.2	)%	$	28,460		$	(706	)		(4131.2	)%
Operating income (loss) as adjusted
Material Handling	$	10,385		$	11,213			(7.4	)%	$	45,269		$	45,370			(0.2	)%
Distribution		3,603			2,546			41.5	%		8,045			6,405			25.6	%
Corporate		(5,472	)		(5,866	)		—			(18,409	)		(19,002	)		—
Total	$	8,516		$	7,893			7.9	%	$	34,905		$	32,773			6.5	%
Operating income margin as adjusted
Material Handling		12.3	%		11.5	%					16.0	%		14.3	%
Distribution		8.7	%		6.8	%					6.9	%		5.8	%
Corporate		n/a			n/a						n/a			n/a
Total		6.8	%		5.8	%					8.8	%		7.7	%
EBITDA as adjusted
Material Handling	$	15,444		$	17,107			(9.7	)%	$	61,441		$	63,499			(3.2	)%
Distribution		3,952			2,845			38.9	%		8,919			7,314			21.9	%
Corporate		(5,385	)		(5,795	)		—			(18,100	)		(18,677	)		—
Total	$	14,011		$	14,157			(1.0	)%	$	52,260		$	52,136			0.2	%
EBITDA margin as adjusted
Material Handling		18.4	%		17.5	%					21.7	%		20.0	%
Distribution		9.5	%		7.6	%					7.7	%		6.6	%
Corporate		n/a			n/a						n/a			n/a
Total		11.2	%		10.5	%					13.1	%		12.2	%

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Dollars in thousands)

	September 30, 2019		December 31, 2018
Assets
Current Assets
Cash	$	74,814	$	58,894
Accounts receivable, net		65,129		72,939
Income tax receivable		—		4,892
Inventories		44,009		43,596
Prepaid expenses and other current assets		3,441		2,534
Total Current Assets		187,393		182,855
Property, plant, & equipment, net		56,096		65,460
Right of use asset - operating leases		6,384		—
Deferred income taxes		6,074		5,270
Other assets		101,339		95,060
Total Assets	$	357,286	$	348,645
Liabilities & Shareholders’ Equity
Current Liabilities
Accounts payable	$	54,196	$	60,849
Accrued expenses		32,867		36,574
Operating lease liability - short-term		2,215		—
Total Current Liabilities		89,278		97,423
Long-term debt		77,080		76,790
Operating lease liability - long-term		4,402		—
Other liabilities		22,706		19,794
Total Shareholders’ Equity		163,820		154,638
Total Liabilities & Shareholders’ Equity	$	357,286	$	348,645

MYERS INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

	Nine Months Ended September 30,
	2019			2018
Cash Flows From Operating Activities
Net income (loss)	$	18,595		$	(5,687	)
Income (loss) from discontinued operations, net of income taxes		127			(913	)
Income (loss) from continuing operations		18,468			(4,774	)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities
Depreciation		11,505			13,329
Amortization		6,183			6,455
Accelerated depreciation associated with restructuring activities		—			16
Non-cash stock-based compensation expense		3,348			3,532
(Gain) loss on disposal of fixed assets		(87	)		(96	)
Provision for loss on note receivable		—			23,008
Lease guarantee contingency		—			10,323
Deferred taxes		—			(7,666	)
Impairment charges		916			308
Other		441			(150	)
Payments on performance based compensation		(413	)		(1,249	)
Other long-term liabilities		3,388			(313	)
Cash flows provided by (used for) working capital
Accounts receivable		9,775			7,890
Inventories		2,386			2,708
Prepaid expenses and other current assets		(877	)		(853	)
Accounts payable and accrued expenses		(15,541	)		(11,347	)
Net cash provided by (used for) operating activities - continuing operations		39,492			41,121
Net cash provided by (used for) operating activities - discontinued operations		7,297			858
Net cash provided by (used for) operating activities		46,789			41,979
Cash Flows From Investing Activities
Capital expenditures		(5,669	)		(3,560	)
Acquisition of business		(18,000	)		—
Proceeds from sale of property, plant and equipment		7,514			2,633
Net cash provided by (used for) investing activities - continuing operations		(16,155	)		(927	)
Net cash provided by (used for) investing activities - discontinued operations		—			—
Net cash provided by (used for) investing activities		(16,155	)		(927	)
Cash Flows From Financing Activities
Net borrowing (repayments) on credit facility		—			(74,557	)
Cash dividends paid		(14,524	)		(13,039	)
Proceeds from issuance of common stock		755			2,825
Proceeds from public offering of common stock, net of equity issuance costs		—			79,522
Shares withheld for employee taxes on equity awards		(985	)		(446	)
Net cash provided by (used for) financing activities - continuing operations		(14,754	)		(5,695	)
Net cash provided by (used for) financing activities - discontinued operations		—			—
Net cash provided by (used for) financing activities		(14,754	)		(5,695	)
Foreign exchange rate effect on cash		40			(31	)
Net increase in cash and restricted cash		15,920			35,326
Cash and restricted cash at January 1		58,894			11,179
Cash and restricted cash at September 30	$	74,814		$	46,505

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

	Quarter Ended September 30, 2019
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	84,110		$	41,388		$	125,498		$	(18	)	$	125,480
GAAP Gross profit								39,586			—			39,586
Add: Restructuring expenses and other adjustments								—			—			—
Gross profit as adjusted								39,586			—			39,586
Gross profit margin as adjusted								31.5	%		n/a			31.5	%
GAAP Operating income (loss)		10,385			3,382			13,767			(5,707	)		8,060
Less: Restructuring expenses and other adjustments		—			(36	)		(36	)		—			(36	)
Add: Tuffy acquisition costs		—			257			257			235			492
Operating income (loss) as adjusted		10,385			3,603			13,988			(5,472	)		8,516
Operating income margin as adjusted		12.3	%		8.7	%		11.1	%		n/a			6.8	%
Add: Depreciation and amortization		5,059			349			5,408			87			5,495
Less: Depreciation adjustments		—			—			—			—			—
EBITDA as adjusted	$	15,444		$	3,952		$	19,396		$	(5,385	)	$	14,011
EBITDA margin as adjusted		18.4	%		9.5	%		15.5	%		n/a			11.2	%
	Quarter Ended September 30, 2018
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	97,682		$	37,557		$	135,239		$	(20	)	$	135,219
GAAP Gross profit								42,091			—			42,091
Add: Restructuring expenses and other adjustments								286			—			286
Gross profit as adjusted								42,377			—			42,377
Gross profit margin as adjusted								31.3	%		n/a			31.3	%
GAAP Operating income (loss)		10,812			2,546			13,358			(39,197	)		(25,839	)
Add: Restructuring expenses and other adjustments(1)		401			—			401			—			401
Add: Provision for loss on note receivable		—			—			—			23,008			23,008
Add: Lease guarantee		—			—			—			10,323			10,323
Operating income (loss) as adjusted		11,213			2,546			13,759			(5,866	)		7,893
Operating income margin as adjusted		11.5	%		6.8	%		10.2	%		n/a			5.8	%
Add: Depreciation and amortization		5,960			299			6,259			71			6,330
Less: Depreciation adjustments		(66	)		—			(66	)		—			(66	)
EBITDA as adjusted	$	17,107		$	2,845		$	19,952		$	(5,795	)	$	14,157
EBITDA margin as adjusted		17.5	%		7.6	%		14.8	%		n/a			10.5	%

(1) Includes gross profit adjustments of $286 and SG&A adjustments of $115

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED)

(Dollars in thousands)

	Nine Months Ended September 30, 2019
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	282,963		$	115,957		$	398,920		$	(40	)	$	398,880
GAAP Gross profit								132,081			—			132,081
Add: Restructuring expenses and other adjustments								172			—			172
Gross profit as adjusted								132,253			—			132,253
Gross profit margin as adjusted								33.2	%		n/a			33.2	%
GAAP Operating income (loss)		44,181			6,923			51,104			(22,644	)		28,460
Add: Restructuring expenses and other adjustments(1)		172			865			1,037			—			1,037
Add: Tuffy acquisition costs		—			257			257			235			492
Add: Asset impairment		916			—			916			—			916
Add: Environmental charges		—			—			—			4,000			4,000
Operating income (loss) as adjusted		45,269			8,045			53,314			(18,409	)		34,905
Operating income margin as adjusted		16.0	%		6.9	%		13.4	%		n/a			8.8	%
Add: Depreciation and amortization		16,216			874			17,090			309			17,399
Less: Depreciation adjustments		(44	)		—			(44	)		—			(44	)
EBITDA as adjusted	$	61,441		$	8,919		$	70,360		$	(18,100	)	$	52,260
EBITDA margin as adjusted		21.7	%		7.7	%		17.6	%		n/a			13.1	%

(1) Includes gross profit adjustments of $172 and SG&A adjustments of $865

	Nine Months Ended September 30, 2018
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
GAAP Net sales	$	317,621		$	110,815		$	428,436		$	(89	)	$	428,347
GAAP Gross profit								137,197			—			137,197
Add: Restructuring expenses and other adjustments								575			—			575
Gross profit as adjusted								137,772			—			137,772
Gross profit margin as adjusted								32.2	%		n/a			32.2	%
GAAP Operating income (loss)		44,865			7,070			51,935			(52,641	)		(706	)
Add: Restructuring expenses and other adjustments(1)		713			—			713			—			713
Add: Provision for loss on note receivable		—			—			—			23,008			23,008
Add: Lease guarantee		—			—			—			10,323			10,323
Add: Asset impairment		—			—			—			308			308
Add: Loss (gain) on sale of assets		(208	)		(665	)		(873	)		—			(873	)
Operating income (loss) as adjusted		45,370			6,405			51,775			(19,002	)		32,773
Operating income margin as adjusted		14.3	%		5.8	%		12.1	%		n/a			7.7	%
Add: Depreciation and amortization		18,276			909			19,185			325			19,510
Less: Depreciation adjustments		(147	)		—			(147	)		—			(147	)
EBITDA as adjusted	$	63,499		$	7,314		$	70,813		$	(18,677	)	$	52,136
EBITDA margin as adjusted		20.0	%		6.6	%		16.5	%		n/a			12.2	%

(1) Includes gross profit adjustments of $575 and SG&A adjustments of $138

MYERS INDUSTRIES, INC.

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

INCOME AND EARNINGS PER DILUTED SHARE (UNAUDITED)

(Dollars in thousands, except per share data)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
GAAP Operating income (loss)	$	8,060		$	(25,839	)	$	28,460		$	(706	)
Add: Restructuring expenses and other adjustments		(36	)		401			1,037			713
Add: Tuffy acquisition costs		492			—			492			—
Add: Asset impairments		—			—			916			308
Add: Environmental charges		—			—			4,000			—
Add: Charges related to 2015 sale of Lawn & Garden business(1)		—			33,331			—			33,331
Add: Loss (gain) on sale of assets		—			—			—			(873	)
Operating income as adjusted		8,516			7,893			34,905			32,773
Less: Interest expense, net		(993	)		(883	)		(3,059	)		(3,835	)
Income before taxes as adjusted		7,523			7,010			31,846			28,938
Less: Income tax expense(2)		(2,031	)		(1,752	)		(8,598	)		(7,234	)
Income from continuing operations as adjusted	$	5,492		$	5,258		$	23,248		$	21,704
Adjusted earnings per diluted share from continuing operations(3)	$	0.15		$	0.15		$	0.65		$	0.65

(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 2019 is 27% and in 2018 was 25%.

(3) Adjusted earnings per diluted share for the three and nine months ended September 30, 2018 were calculated using 35,677,409 and 33,247,459 diluted shares, respectively.

MYERS INDUSTRIES, INC.

RECONCILIATION OF FREE CASH FLOW TO GAAP NET CASH PROVIDED BY

(USED FOR) OPERATING ACTIVITIES – CONTINUING OPERATIONS

(UNAUDITED)

(Dollars in thousands)

	YTD				YTD
	September 30, 2019				September 30, 2018
Net cash provided by (used for) operating activities - continuing operations	$	39,492			$	41,121
Capital expenditures		(5,669	)			(3,560	)
Free cash flow	$	33,823			$	37,561
	YTD				YTD				Quarter
	September 30, 2019				June 30, 2019				September 30, 2019
Net cash provided by (used for) operating activities - continuing operations	$	39,492		-	$	16,173		=	$	23,319
Capital expenditures		(5,669	)	-		(4,406	)	=		(1,263	)
Free cash flow	$	33,823		-	$	11,767		=	$	22,056
	YTD				YTD				Quarter
	September 30, 2018				June 30, 2018				September 30, 2018
Net cash provided by (used for) operating activities - continuing operations	$	41,121		-	$	27,223		=	$	13,898
Capital expenditures		(3,560	)	-		(2,318	)	=		(1,242	)
Free cash flow	$	37,561		-	$	24,905		=	$	12,656