Financial Data and Key Metrics Changes - Revenue declined by 27% due to mine suspensions and closures, notably at Grosvenor, Integra, and Moranbah North [5] - Underlying EBITDA was £13,200,000, reflecting cost efficiencies and operational improvements [6] - Operating cash flow remained steady at £16,900,000, comparable to the prior year [7] - Year-end net cash position was £29,100,000, with cash reserves increasing to £30,400,000 from £26,000,000 [8] Business Line Data and Key Metrics Changes - The order book grew to £314,000,000, driven by new contracts at Peabody Energy's Centurion mine and GM3 Zappin mine [13] - The company maintained a focus on safety performance, achieving a total recordable injury frequency rate (TRIFR) of 5.09, down from 9.85 [10] Market Data and Key Metrics Changes - The company operates in three major underground coal regions in Australia: Central Queensland, Hunter Valley, and Illawarra [4] - The market faced pressures due to lower coal prices and external events affecting production [3] Company Strategy and Development Direction - The company aims to build its capital position to align with organic and inorganic growth strategies, leading to a nil final dividend for FY '25 [3] - A pipeline of contract opportunities worth approximately £900,000,000 is in place, resulting from a targeted approach to winning work [13] - The company is focused on enhancing competitive advantages through efficiency savings and leveraging industry connections [14] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for FY '26 despite ongoing industry headwinds, with expectations of realizing the full benefits of new contracts [13] - The company is committed to improving safety performance and addressing social and governance responsibilities [12] Other Important Information - The company has been working on system and process improvements to drive competitive advantage [4] - There have been board changes, including the appointment of Peter Barker as a non-executive chair [12] Q&A Session Summary Question: Inquiry about the process of laying off and rehiring workers - Management indicated that they have been flexible with workforce scale in partnership with Anglo, maintaining a presence at sites even during essential services [18] - They expressed confidence in being able to rehire experienced workers as needed [20] Question: Comfort regarding implications for same job, same pay issues - Management noted that they are seeing clients respond positively to these challenges and are working through them [21] Question: CapEx profile for next year - Management confirmed that they do not expect any large increases in CapEx for FY '26, aiming to maintain their financial position [31]

August 2025 | �� | | --- | | ��� | | �� | | �� | | �� | FY25 FULL YEAR RESULTS For personal use only Mastermyne Group Limited ABN 96 142 490 579 (formerly Metarock Group Limited) FY25 Headline Financials Despite lower revenue due to external events, cashflow consistent with prior year, further enhancing the robust capital position. Order book grown with awards at two new significant projects. For personal use only $214m Revenue $3.2m Underlying NPAT FY24: $294m FY24: $19.6m $13.2m Underlying EBITDA FY24: $2 ...

Core Insights - Myers Industries reported Q2 2025 GAAP revenue of $209.6 million and adjusted non-GAAP EPS of $0.31, missing analyst expectations of $220.6 million in revenue [1][5] - Both revenue and earnings declined compared to the same period last year, reflecting persistent demand softness in key end markets [1][5] - Free cash flow increased significantly to $24.7 million, a 149.5% rise year-over-year, indicating improved cash management despite revenue declines [1][10] Financial Performance - Q2 2025 non-GAAP EPS was $0.31, down 20.5% from $0.39 in Q2 2024 [2][6] - GAAP revenue decreased by 4.8% from $220.2 million in Q2 2024 [2][5] - Adjusted operating income fell 20.9% to $22.8 million, while adjusted EBITDA decreased by 15.5% to $32.9 million [2][6] Segment Performance - Material Handling segment reported GAAP revenue of $158.6 million, a decline of 4.4%, but operating income improved by 2.7% due to favorable raw material costs [7] - Distribution segment generated $51.0 million in GAAP revenue, a 6.0% decline year-over-year, and recorded an operating loss of $0.5 million [8] - The company is reviewing the Myers Tire Supply business, which generated $189 million in revenue over the last twelve months, to simplify its portfolio [9][12] Strategic Focus - The company emphasizes sustainability and operational efficiency, with ongoing cost savings and process improvements [4][11] - Strategic acquisitions, such as Signature Systems, are aimed at broadening engineered product offerings [4][11] - The company is targeting $20 million in annualized cost savings by year-end, having already achieved $15 million in the first half of 2025 [9] Market Outlook - Management expects moderate to strong growth in industrial and infrastructure sectors, which accounted for 43% of revenue as of Q1 2025 [13] - Vehicle and automotive aftermarket markets are anticipated to remain weak, while consumer and food & beverage markets are projected to be stable [13] - No formal quantitative guidance for revenue or earnings was provided for the next quarter or full year, but management expressed confidence in achieving year-over-year growth in Q3 2025 [14]

Part I — Financial Information This section presents Myers Industries' unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting periods [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Myers Industries' unaudited condensed consolidated financial statements and detailed notes for Q2 and YTD June 30, 2025 and 2024 [Condensed Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This statement details the company's revenues, expenses, and net income for the quarter and six months ended June 30, 2025 and 2024 For the Quarter Ended June 30 (Dollars in thousands, except per share data) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net sales | $209,583 | $220,236 | $(10,653) | -4.8% | | Gross profit | $70,662 | $75,517 | $(4,855) | -6.4% | | Operating income | $19,979 | $23,728 | $(3,749) | -15.8% | | Net income | $9,705 | $10,279 | $(574) | -5.6% | | Basic EPS | $0.26 | $0.28 | $(0.02) | -7.1% | | Diluted EPS | $0.26 | $0.28 | $(0.02) | -7.1% | For the Six Months Ended June 30 (Dollars in thousands, except per share data) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net sales | $416,333 | $427,338 | $(11,005) | -2.6% | | Gross profit | $139,740 | $139,786 | $(46) | -0.03% | | Operating income | $36,629 | $34,607 | $2,022 | 5.8% | | Net income | $16,510 | $13,782 | $2,728 | 19.8% | | Basic EPS | $0.44 | $0.37 | $0.07 | 18.9% | | Diluted EPS | $0.44 | $0.37 | $0.07 | 18.9% | [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) This statement presents net income and other comprehensive income components for the quarter and six months ended June 30, 2025 and 2024 For the Quarter Ended June 30 (Dollars in thousands) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net income | $9,705 | $10,279 | $(574) | | Foreign currency translation adjustment | $1,915 | $(360) | $2,275 | | Unrealized gain (loss) on interest rate swap contracts | $(891) | $(1,976) | $1,085 | | Total other comprehensive income (loss) | $2,212 | $(2,478) | $4,690 | | Comprehensive income | $11,917 | $7,801 | $4,116 | For the Six Months Ended June 30 (Dollars in thousands) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net income | $16,510 | $13,782 | $2,728 | | Foreign currency translation adjustment | $1,907 | $(1,191) | $3,098 | | Unrealized gain (loss) on interest rate swap contracts | $(2,341) | $(1,976) | $(365) | | Total other comprehensive income (loss) | $839 | $(3,309) | $4,148 | | Comprehensive income | $17,349 | $10,473 | $6,876 | [Condensed Consolidated Statements of Financial Position (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position%20(Unaudited)) This statement provides a snapshot of assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 As of June 30, 2025 vs. December 31, 2024 (Dollars in thousands) | Asset | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash | $41,290 | $32,222 | $9,068 | | Total Current Assets | $276,062 | $259,307 | $16,755 | | Total Assets | $862,714 | $860,815 | $1,899 | | Liability/Equity | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Current Liabilities | $155,738 | $147,112 | $8,626 | | Long-term debt | $346,221 | $355,310 | $(9,089) | | Total Liabilities | $578,074 | $583,303 | $(5,229) | | Total Shareholders' Equity | $284,640 | $277,512 | $7,128 | [Condensed Consolidated Statements of Shareholders' Equity (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(Unaudited)) This statement details changes in shareholders' equity, including net income, dividends, and stock transactions, for Q2 and YTD June 30, 2025 Changes in Shareholders' Equity for the Quarter Ended June 30, 2025 (Dollars in thousands) | Item | Common Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Total Shareholders' Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at April 1, 2025 | $23,015 | $324,631 | $(23,483) | $(46,740) | $277,423 | | Net income | — | — | — | $9,705 | $9,705 | | Foreign currency translation adjustment | — | — | $1,915 | — | $1,915 | | Interest rate swap, net of tax | — | — | $(804) | — | $(804) | | Pension liability, net of tax | — | — | $1,101 | — | $1,101 | | Shares issued under incentive plans, net | $47 | $174 | — | — | $221 | | Repurchase of common stock | $(24) | $(483) | — | — | $(507) | | Stock compensation expense | — | $649 | — | — | $649 | | Declared dividends - $0.135 per share | — | — | — | $(5,063) | $(5,063) | | Balance at June 30, 2025 | $23,038 | $324,971 | $(21,271) | $(42,098) | $284,640 | Changes in Shareholders' Equity for the Six Months Ended June 30, 2025 (Dollars in thousands) | Item | Common Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Total Shareholders' Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 | $22,923 | $325,163 | $(22,110) | $(48,464) | $277,512 | | Net income | — | — | — | $16,510 | $16,510 | | Foreign currency translation adjustment | — | — | $1,907 | — | $1,907 | | Interest rate swap, net of tax | — | — | $(2,169) | — | $(2,169) | | Pension liability, net of tax | — | — | $1,101 | — | $1,101 | | Shares issued under incentive plans, net | $186 | $(498) | — | — | $(312) | | Repurchase of common stock | $(71) | $(1,444) | — | — | $(1,515) | | Stock compensation expense | — | $1,750 | — | — | $1,750 | | Declared dividends - $0.27 per share | — | — | — | $(10,144) | $(10,144) | | Balance at June 30, 2025 | $23,038 | $324,971 | $(21,271) | $(42,098) | $284,640 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 For the Six Months Ended June 30 (Dollars in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $38,442 | $34,617 | $3,825 | | Net cash provided by (used for) investing activities | $(11,529) | $(358,352) | $346,823 | | Net cash provided by (used for) financing activities | $(17,519) | $330,953 | $(348,472) | | Net increase (decrease) in cash | $9,068 | $7,055 | $2,013 | | Cash at June 30 | $41,290 | $37,345 | $3,945 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, acquisitions, restructuring, and other financial details for the reporting periods [1. Summary of Significant Accounting Policies](index=9&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's key accounting policies, recent accounting standard updates, and financial instrument details - The Company updated its presentation of Depreciation and amortization expenses and third-party Freight out costs, previously included in Selling, general and administrative expenses, in the first quarter of 2025. Prior year amounts have been conformed[30](index=30&type=chunk) - The FASB issued ASU 2023-09 (Income Tax Disclosures) effective for annual periods after December 15, 2024, and ASU 2024-03 (Expense Disaggregation Disclosures) effective for annual periods after December 15, 2026. The Company is evaluating the impact of these new standards[31](index=31&type=chunk)[32](index=32&type=chunk) - The Company uses an interest rate swap contract, designated as a cash flow hedge, to reduce exposure to variable interest rates on a portion of its floating rate indebtedness. At June 30, 2025, the remaining notional value was **$187.5 million**, with an estimated unrealized loss of **$6.2 million**[38](index=38&type=chunk)[39](index=39&type=chunk) - On April 22, 2025, the Company terminated its defined benefit pension plan by purchasing a group annuity contract, recognizing a pre-tax pension settlement charge of **$1.6 million** in Q2 2025[44](index=44&type=chunk) Changes in Allowance for Credit Losses (Dollars in thousands) | Metric | 2025 (Six Months) | 2024 (Six Months) | | :--- | :--- | :--- | | Balance at January 1 | $4,183 | $2,989 | | Provision for expected credit loss, net of recoveries | $119 | $1,147 | | Write-offs and other | $(619) | $(358) | | Balance at June 30 | $3,683 | $3,778 | [2. Revenue Recognition](index=13&type=section&id=2.%20Revenue%20Recognition) This note describes the company's policies for recognizing revenue, including variable consideration and related balances - Revenue is recognized when control of products is transferred, typically at shipment or delivery, and obligations are usually fulfilled within 90 days. Variable consideration like rebates and discounts are estimated each period[47](index=47&type=chunk)[48](index=48&type=chunk) Revenue Recognition Related Balances (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Returns, discounts and other allowances | $(1,022) | $(1,051) | | Right of return asset | $485 | $456 | | Customer deposits | $(1,324) | $(2,565) | | Accrued rebates | $(3,767) | $(4,196) | Freight Out Expenses (Dollars in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Quarter Ended June 30 | $2,800 | $2,700 | | Six Months Ended June 30 | $5,600 | $5,100 | Cost of Sales Freight (Dollars in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Quarter Ended June 30 | $2,700 | $2,700 | | Six Months Ended June 30 | $5,300 | $5,600 | [3. Acquisitions](index=15&type=section&id=3.%20Acquisitions) This note details the acquisition of Signature Systems in 2024, including its financial impact and intangible assets - On February 8, 2024, the Company acquired Signature Systems for **$348.3 million** (net of cash acquired), a manufacturer and distributor of composite matting ground protection, included in the Material Handling Segment[51](index=51&type=chunk) Final Allocation of Consideration for Signature Acquisition (Dollars in thousands) | Item | Final Allocation | | :--- | :--- | | Assets acquired: Accounts receivable | $18,854 | | Assets acquired: Inventories | $17,373 | | Assets acquired: Intangible assets | $136,700 | | Assets acquired: Goodwill | $183,098 | | Total Assets acquired | $394,126 | | Total Liabilities assumed | $45,814 | | Net acquisition cost | $348,312 | - In May 2025, the customer prepaid the remaining **$8.3 million** balance of long-term notes receivable acquired from Signature. This resulted in a **$3.2 million** reversal of allowance for credit loss (reducing bad debt expense) and acceleration of a **$0.3 million** noncredit discount into interest income[54](index=54&type=chunk) Signature Intangible Assets (Dollars in thousands) | Asset | Fair Value | Estimated Useful Life | | :--- | :--- | :--- | | Customer relationships | $83,800 | 10.0 years | | Technology | $31,300 | 12.0 years | | Trademarks and trade names | $21,600 | Indefinite | [4. Restructuring](index=17&type=section&id=4.%20Restructuring) This note outlines the 'Focused Transformation' initiative, associated restructuring charges, and future strategic plans - The Company launched a 'Focused Transformation' initiative in Q1 2025, targeting **$20 million** in annualized SG&A cost savings by year-end 2025. Restructuring charges of **$2.1 million** (Q2 2025) and **$2.4 million** (YTD Q2 2025) were incurred[57](index=57&type=chunk) - Restructuring charges for the Distribution Segment totaled **$1.7 million** (Q2 2025) and **$2.5 million** (YTD Q2 2025), including **$1.6 million** for exiting two idled lease facilities. This initiative is now complete[58](index=58&type=chunk) - Subsequent to June 30, 2025, the Board approved a strategic review of Myers Tire Supply (Distribution segment, **$189 million** LTM revenue) and a plan to idle two rotational molding facilities, expecting **$3 million** in additional annual savings and up to **$14 million** in restructuring costs[63](index=63&type=chunk)[64](index=64&type=chunk) Restructuring Charges by Segment (Dollars in thousands) | Segment | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Material Handling | $1,051 | $2,223 | $1,159 | $2,464 | | Distribution | $2,169 | $755 | $2,980 | $755 | | Corporate | $1,197 | $0 | $2,306 | $0 | | **Total** | **$4,417** | **$2,978** | **$6,445** | **$3,219** | [5. Inventories](index=18&type=section&id=5.%20Inventories) This note details the valuation methods and composition of the company's inventories as of June 30, 2025 - Approximately **30%** of inventories are valued using the LIFO method, with the remainder using FIFO. No adjustment to the LIFO reserve was recorded for the quarters ended June 30, 2025 or 2024[65](index=65&type=chunk) Inventories (Dollars in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Finished and in-process products | $64,672 | $62,601 | | Raw materials and supplies | $37,297 | $34,400 | | **Total Inventories, net** | **$101,969** | **$97,001** | [6. Other Liabilities](index=20&type=section&id=6.%20Other%20Liabilities) This note provides a breakdown of other current and long-term liabilities, including environmental reserves and hedge contracts Other Current Liabilities (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Customer deposits and accrued rebates | $5,091 | $6,761 | | Dividends payable | $5,373 | $5,613 | | Current portion of environmental reserves | $6,605 | $6,605 | | Hedge contract liability | $1,257 | $753 | | Other accrued expenses | $4,990 | $6,952 | | **Total Other Current Liabilities** | **$23,440** | **$26,794** | Other Long-Term Liabilities (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Environmental reserves | $8,856 | $9,984 | | Pension liability | $0 | $79 | | Hedge contract liability | $4,916 | $2,490 | | **Total Other Liabilities (long-term)** | **$16,140** | **$15,303** | [7. Goodwill and Intangible Assets](index=20&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) This note presents the carrying value of goodwill by segment and indefinite-lived intangible assets Goodwill by Segment (Dollars in thousands) | Segment | January 1, 2025 | Foreign Currency Translation | June 30, 2025 | | :--- | :--- | :--- | :--- | | Distribution | $14,730 | — | $14,730 | | Material Handling | $240,802 | $525 | $241,327 | | **Total Goodwill** | **$255,532** | **$525** | **$256,057** | - Indefinite-lived trade names had a carrying value of **$31.4 million** at both June 30, 2025, and December 31, 2024[68](index=68&type=chunk) [8. Stockholders' Equity](index=21&type=section&id=8.%20Stockholders'%20Equity) This note details weighted average common shares outstanding, share repurchase programs, and related activities Weighted Average Common Shares Outstanding | Period | Basic (2025) | Basic (2024) | Diluted (2025) | Diluted (2024) | | :--- | :--- | :--- | :--- | :--- | | Quarter Ended June 30 | 37,391,097 | 37,179,658 | 37,412,937 | 37,312,394 | | Six Months Ended June 30 | 37,345,032 | 37,043,913 | 37,429,514 | 37,257,302 | - On February 27, 2025, the Board authorized a new **$10.0 million** share repurchase program, replacing the 2013 program. As of June 30, 2025, **$8.5 million** remained authorized[70](index=70&type=chunk)[71](index=71&type=chunk) Share Repurchases under 2025 Program (Quarter Ended June 30, 2025) | Period | Shares Purchased | Average Price Paid per Share | Total Value (millions) | | :--- | :--- | :--- | :--- | | Quarter Ended June 30, 2025 | 40,084 | $12.51 | $0.5 | | Six Months Ended June 30, 2025 | 116,884 | $12.83 | $1.5 | [9. Stock Compensation](index=21&type=section&id=9.%20Stock%20Compensation) This note describes the company's long-term incentive plans, stock award authorizations, and compensation expenses - The 2021 Long-Term Incentive Plan authorized up to **2,000,000** stock awards, with no new awards after March 16, 2024. The 2024 Long-Term Incentive Plan, approved by shareholders in April 2024, authorizes up to **2,500,000** additional stock awards[72](index=72&type=chunk)[73](index=73&type=chunk) Stock Compensation Expense (Dollars in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Quarter Ended June 30 | $600 | $(100) | | Six Months Ended June 30 | $1,700 | $500 | - Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at June 30, 2025, was approximately **$6.0 million**, to be recognized over the next three years[74](index=74&type=chunk) [10. Contingencies](index=23&type=section&id=10.%20Contingencies) This note discloses the company's involvement in environmental liabilities and product liability lawsuits - The Company is a Potentially Responsible Party (PRP) for the New Idria Mercury Mine site, with an Administrative Order of Consent (AOC) requiring a **$2 million** letter of credit for the Remedial Investigation/Feasibility Study (RI/FS)[77](index=77&type=chunk) New Idria Mercury Mine Environmental Liability and Insurance Recovery (Dollars in thousands) | Item | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Beginning reserve balance | $11,719 | $12,315 | $12,425 | $13,182 | | Changes in estimated environmental liability | — | $800 | — | $800 | | Payments made | $(478) | $(623) | $(1,184) | $(1,490) | | Ending reserve balance | $11,241 | $12,492 | $11,241 | $12,492 | | Beginning receivable balance | $7,487 | $7,020 | $8,404 | $7,245 | | Changes in estimated insurance recovery | — | $700 | — | $1,000 | | Insurance recovery reimbursements | $(437) | $(606) | $(1,354) | $(1,131) | | Ending receivable balance | $7,050 | $7,114 | $7,050 | $7,114 | - For the New Almaden Mine, Buckhorn has a total reserve of **$4.4 million** as of June 30, 2025, related to an environmentally beneficial project, with the Company intending to challenge cost increases[83](index=83&type=chunk) - The Company is a defendant in two product liability lawsuits related to portable fuel containers, with Scepter maintaining insurance policies expected to cover a substantial portion of defense costs[85](index=85&type=chunk)[86](index=86&type=chunk) [11. Long-Term Debt and Loan Agreements](index=25&type=section&id=11.%20Long-Term%20Debt%20and%20Loan%20Agreements) This note details the company's long-term debt, loan agreements, interest rates, and compliance with debt covenants Long-Term Debt (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving Credit Facility | $5,000 | $0 | | Term Loan A | $372,000 | $382,000 | | Less unamortized deferred financing costs | $(6,195) | $(7,041) | | Less current portion long-term debt | $(24,584) | $(19,649) | | **Long-term debt** | **$346,221** | **$355,310** | - The Company entered into Amendment No. 1 to its Loan Agreement on February 8, 2024, providing a new 5-year **$400 million** Term Loan A to fund the Signature acquisition. Term Loan A amortizes quarterly, with **$10 million** payments thereafter[87](index=87&type=chunk) - The weighted average interest rate on borrowings was **7.75%** for Q2 2025 (down from **8.60%** in Q2 2024) and **7.67%** for YTD Q2 2025 (down from **8.73%** in YTD Q2 2024)[91](index=91&type=chunk) - As of June 30, 2025, the Company was in compliance with all debt covenants, with an Interest Coverage Ratio of **3.90** (minimum **3.00**) and a Net Leverage Ratio of **2.78** (maximum **3.25**)[92](index=92&type=chunk)[148](index=148&type=chunk) [12. Income Taxes](index=26&type=section&id=12.%20Income%20Taxes) This note provides details on the company's effective tax rates and the factors influencing changes in tax expense Effective Tax Rate | Period | 2025 | 2024 | | :--- | :--- | :--- | | Quarter Ended June 30 | 23.1% | 30.2% | | Six Months Ended June 30 | 24.5% | 29.4% | - The decrease in the effective tax rate for both periods in 2025 was primarily due to a benefit related to the termination of the Company's pension plan[94](index=94&type=chunk) [13. Leases](index=26&type=section&id=13.%20Leases) This note outlines the company's lease assets, liabilities, total lease costs, and maturity schedules Lease Assets and Liabilities (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Right of use asset - operating leases | $26,816 | $30,561 | | Finance lease assets | $7,556 | $7,927 | | Total lease assets | $34,372 | $38,488 | | Operating lease liability - short-term | $6,396 | $6,597 | | Operating lease liability - long-term | $20,306 | $23,700 | | Finance lease liability - short-term | $633 | $621 | | Finance lease liability - long-term | $7,673 | $7,994 | | Total lease liabilities | $35,008 | $38,912 | Total Lease Cost (Dollars in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Quarter Ended June 30 | $4,568 | $4,852 | | Six Months Ended June 30 | $7,607 | $7,816 | Maturity of Lease Liabilities as of June 30, 2025 (Dollars in thousands) | Year | Operating Leases | Finance Leases | Total | | :--- | :--- | :--- | :--- | | 2025 (after June 30) | $3,939 | $462 | $4,401 | | 2026 | $7,684 | $924 | $8,608 | | 2027 | $6,465 | $945 | $7,410 | | 2028 | $4,900 | $950 | $5,850 | | 2029 | $3,343 | $950 | $4,293 | | After 2029 | $4,018 | $5,758 | $9,776 | | **Total lease payments** | **$30,349** | **$9,989** | **$40,338** | | Less: interest | $(3,647) | $(1,683) | $(5,330) | | **Present value of lease liabilities** | **$26,702** | **$8,306** | **$35,008** | [14. Segments](index=29&type=section&id=14.%20Segments) This note provides financial information by operating segment, including net sales and operating income (loss) - The Company operates under two segments: Material Handling (durable plastic reusable products, ground protection matting, fuel containers) and Distribution (tire servicing equipment, tools, supplies, and tire repair/retreading products)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) Net Sales by Segment (Dollars in thousands) | Segment | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Material Handling | $158,627 | $166,008 | $316,299 | $318,233 | | Distribution | $50,989 | $54,265 | $100,235 | $109,159 | | **Consolidated Net Sales** | **$209,583** | **$220,236** | **$416,333** | **$427,338** | Operating Income (Loss) by Segment (Dollars in thousands) | Segment | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Material Handling | $29,472 | $28,701 | $56,853 | $50,957 | | Distribution | $(537) | $2,179 | $(1,718) | $2,784 | | Corporate | $(8,956) | $(7,152) | $(18,506) | $(19,134) | | **Consolidated Operating Income** | **$19,979** | **$23,728** | **$36,629** | **$34,607** | - Total sales from foreign business units increased to **$15.5 million** for Q2 2025 (from **$12.0 million** in Q2 2024) and **$26.6 million** for YTD Q2 2025 (from **$21.9 million** in YTD Q2 2024)[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial performance, condition, and liquidity, including key drivers and strategic initiatives for Q2 and YTD June 30, 2025 [Forward-Looking Statements](index=33&type=section&id=Forward-Looking%20Statements) This section highlights the inherent uncertainties and risks associated with the company's future financial outlook and plans - The report contains forward-looking statements regarding financial outlook, future plans, and business prospects, which are subject to uncertainties, risks, and changes in circumstances[113](index=113&type=chunk) - Specific risk factors include raw material costs, competitive environment, trade policy, production disruptions, intellectual property, strategic growth initiatives, economic downturns, foreign business risks, and access to credit financing[114](index=114&type=chunk) [Executive Overview](index=33&type=section&id=Executive%20Overview) This overview describes Myers Industries' operating segments and its position within the current economic environment - Myers Industries operates in two reportable segments: Material Handling (plastic reusable products, ground protection matting, fuel containers) and Distribution (tire servicing tools, equipment, and supplies)[116](index=116&type=chunk)[117](index=117&type=chunk) - The current economic environment presents risks from tariffs, inflation, interest rates, volatile commodity costs, supply chain disruptions, and labor availability. The Company believes it is well-positioned due to a strong balance sheet, liquidity, and diverse product offerings[118](index=118&type=chunk) [Results of Operations: Comparison of the Quarter Ended June 30, 2025 to the Quarter Ended June 30, 2024](index=35&type=section&id=Results%20of%20Operations%3A%20Comparison%20of%20the%20Quarter%20Ended%20June%2030%2C%202025%20to%20the%20Quarter%20Ended%20June%2030%2C%202024) This section analyzes the company's financial performance for the second quarter of 2025 compared to the same period in 2024 [Net Sales](index=35&type=section&id=Net%20Sales%20(QoQ)) This subsection details the changes in net sales by segment for the quarter ended June 30, 2025 versus 2024 Net Sales (Quarter Ended June 30, Dollars in thousands) | Segment | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Material Handling | $158,627 | $166,008 | $(7,381) | (4.4)% | | Distribution | $50,989 | $54,265 | $(3,276) | (6.0)% | | **Total Net Sales** | **$209,583** | **$220,236** | **$(10,653)** | **(4.8)%** | - Total net sales decreased by **$10.7 million** (**4.8%**) due to lower pricing (**$4.2 million**), lower volume (**$6.4 million**), and unfavorable currency translation (**$0.1 million**)[119](index=119&type=chunk) [Cost of Sales & Gross Profit](index=35&type=section&id=Cost%20of%20Sales%20%26%20Gross%20Profit%20(QoQ)) This subsection analyzes the changes in cost of sales and gross profit for the quarter ended June 30, 2025 versus 2024 Cost of Sales & Gross Profit (Quarter Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Cost of sales | $138,921 | $144,719 | $(5,798) | (4.0)% | | Gross profit | $70,662 | $75,517 | $(4,855) | (6.4)% | | Gross profit as a percentage of sales | 33.7% | 34.3% | -0.6% pts | | - Gross profit decreased by **$4.9 million** (**6.4%**) due to lower volume and pricing, unfavorable mix, and unfavorable cost productivity, partially offset by lower material costs[122](index=122&type=chunk) [Selling, General and Administrative Expenses](index=35&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses%20(QoQ)) This subsection examines the changes in SG&A expenses for the quarter ended June 30, 2025 versus 2024 SG&A Expenses (Quarter Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | SG&A expenses | $43,370 | $44,148 | $(778) | (1.8)% | | SG&A expenses as a percentage of sales | 20.7% | 20.0% | 0.7% pts | | - SG&A expenses decreased by **$0.8 million** (**1.8%**), primarily due to a **$3.2 million** recovery of purchased credit deteriorated assets and **$0.7 million** lower acquisition costs, partially offset by **$3.8 million** higher restructuring costs and a **$1.6 million** pension settlement charge[123](index=123&type=chunk) [Depreciation and amortization](index=36&type=section&id=Depreciation%20and%20amortization%20(QoQ)) This subsection details the changes in depreciation and amortization expenses for the quarter ended June 30, 2025 versus 2024 - Depreciation and amortization decreased by **$0.4 million** to **$4.4 million**, primarily due to asset disposals related to facility consolidations[124](index=124&type=chunk) [Freight out](index=36&type=section&id=Freight%20out%20(QoQ)) This subsection analyzes the changes in freight out costs for the quarter ended June 30, 2025 versus 2024 - Freight out costs increased by **$0.1 million** to **$2.8 million**, driven by higher overall freight costs partially offset by lower sales volume[125](index=125&type=chunk) [(Gain) loss on disposal of fixed assets](index=36&type=section&id=(Gain)%20loss%20on%20disposal%20of%20fixed%20assets%20(QoQ)) This subsection reports the gain or loss on disposal of fixed assets for the quarter ended June 30, 2025 versus 2024 - The Company recognized **$0.1 million** of losses on disposal of fixed assets in both Q2 2025 and Q2 2024[126](index=126&type=chunk) [Net Interest Expense](index=36&type=section&id=Net%20Interest%20Expense%20(QoQ)) This subsection details the changes in net interest expense for the quarter ended June 30, 2025 versus 2024 Net Interest Expense (Quarter Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net interest expense | $7,364 | $9,006 | $(1,642) | (18.2)% | | Average outstanding borrowings, net | $408,247 | $427,505 | $(19,258) | (4.5)% | | Weighted-average borrowing rate | 7.75% | 8.60% | -0.85% pts | | - Net interest expense decreased by **$1.6 million** (**18.2%**) due to lower average outstanding borrowings and a lower weighted-average borrowing rate[127](index=127&type=chunk) [Income Taxes](index=36&type=section&id=Income%20Taxes%20(QoQ)) This subsection analyzes the changes in income tax expense and effective tax rate for the quarter ended June 30, 2025 versus 2024 Income Taxes (Quarter Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Income before income taxes | $12,615 | $14,722 | | Income tax expense | $2,910 | $4,443 | | Effective tax rate | 23.1% | 30.2% | - The effective tax rate decreased to **23.1%** from **30.2%**, driven by a current year benefit from the pension plan termination and higher fixed non-deductible expenses in the prior year[128](index=128&type=chunk) [Results of Operations: Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024](index=36&type=section&id=Results%20of%20Operations%3A%20Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) This section analyzes the company's financial performance for the six months ended June 30, 2025 compared to the same period in 2024 [Net Sales](index=36&type=section&id=Net%20Sales%20(YTD)) This subsection details the changes in net sales by segment for the six months ended June 30, 2025 versus 2024 Net Sales (Six Months Ended June 30, Dollars in thousands) | Segment | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Material Handling | $316,299 | $318,233 | $(1,934) | (0.6)% | | Distribution | $100,235 | $109,159 | $(8,924) | (8.2)% | | **Total Net Sales** | **$416,333** | **$427,338** | **$(11,005)** | **(2.6)%** | - Total net sales decreased by **$11.0 million** (**2.6%**) due to lower pricing (**$9.8 million**), lower volume (**$6.9 million**), and unfavorable currency translation (**$0.7 million**), partially offset by **$6.4 million** incremental sales from the Signature acquisition[129](index=129&type=chunk) [Cost of Sales & Gross Profit](index=37&type=section&id=Cost%20of%20Sales%20%26%20Gross%20Profit%20(YTD)) This subsection analyzes the changes in cost of sales and gross profit for the six months ended June 30, 2025 versus 2024 Cost of Sales & Gross Profit (Six Months Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Cost of sales | $276,593 | $287,552 | $(10,959) | (3.8)% | | Gross profit | $139,740 | $139,786 | $(46) | (0.0)% | | Gross profit as a percentage of sales | 33.6% | 32.7% | 0.9% pts | | - Gross profit was flat, as benefits from the Signature acquisition and lower material costs were offset by lower volume and pricing, unfavorable mix, and unfavorable cost productivity[132](index=132&type=chunk) [Selling, General and Administrative Expenses](index=37&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses%20(YTD)) This subsection examines the changes in SG&A expenses for the six months ended June 30, 2025 versus 2024 SG&A Expenses (Six Months Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | SG&A expenses | $88,125 | $91,261 | $(3,136) | (3.4)% | | SG&A expenses as a percentage of sales | 21.2% | 21.4% | -0.2% pts | | - SG&A expenses decreased by **$3.1 million** (**3.4%**), primarily due to a **$3.2 million** recovery of purchased credit deteriorated assets and **$4.1 million** lower acquisition costs, partially offset by **$3.1 million** incremental SG&A from Signature, **$5.6 million** higher restructuring costs, and a **$1.6 million** pension settlement charge[133](index=133&type=chunk) [Depreciation and amortization](index=37&type=section&id=Depreciation%20and%20amortization%20(YTD)) This subsection details the changes in depreciation and amortization expenses for the six months ended June 30, 2025 versus 2024 - Depreciation and amortization increased by **$0.2 million** to **$8.9 million**, primarily due to the Signature acquisition[134](index=134&type=chunk) [Freight out](index=37&type=section&id=Freight%20out%20(YTD)) This subsection analyzes the changes in freight out costs for the six months ended June 30, 2025 versus 2024 - Freight out costs increased by **$0.5 million** to **$5.6 million**, mainly due to higher overall freight costs partially offset by lower sales volume[135](index=135&type=chunk) [(Gain) loss on disposal of fixed assets](index=37&type=section&id=(Gain)%20loss%20on%20disposal%20of%20fixed%20assets%20(YTD)) This subsection reports the gain or loss on disposal of fixed assets for the six months ended June 30, 2025 versus 2024 - The Company recognized **$0.5 million** of losses on disposal of fixed assets in YTD Q2 2025, primarily from fixed asset impairments and disposals related to facility consolidations, compared to **$0.1 million** in YTD Q2 2024[136](index=136&type=chunk) [Net Interest Expense](index=38&type=section&id=Net%20Interest%20Expense%20(YTD)) This subsection details the changes in net interest expense for the six months ended June 30, 2025 versus 2024 Net Interest Expense (Six Months Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net interest expense | $14,750 | $15,085 | $(335) | (2.2)% | | Average outstanding borrowings, net | $406,618 | $351,430 | $55,188 | 15.7% | | Weighted-average borrowing rate | 7.67% | 8.73% | -1.06% pts | | - Net interest expense decreased by **$0.3 million** (**2.2%**) due to a lower weighted-average borrowing rate, offsetting higher average outstanding borrowings from the Signature acquisition[137](index=137&type=chunk) [Income Taxes](index=38&type=section&id=Income%20Taxes%20(YTD)) This subsection analyzes the changes in income tax expense and effective tax rate for the six months ended June 30, 2025 versus 2024 Income Taxes (Six Months Ended June 30, Dollars in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Income before income taxes | $21,879 | $19,522 | | Income tax expense | $5,369 | $5,740 | | Effective tax rate | 24.5% | 29.4% | - The effective tax rate decreased to **24.5%** from **29.4%**, driven by a current year benefit from the pension plan termination and higher fixed non-deductible expenses in the prior year[138](index=138&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flows from operating, investing, and financing activities, credit sources, and overall liquidity position - As of June 30, 2025, the Company had **$41.3 million** in cash, **$239.7 million** available under its Amended Loan Agreement, and **$379.1 million** in outstanding debt. Management believes these resources are sufficient to meet expected business requirements[139](index=139&type=chunk) [Operating Activities](index=38&type=section&id=Operating%20Activities) This subsection details the net cash provided by operating activities for the six months ended June 30, 2025 versus 2024 - Net cash provided by operating activities increased to **$38.4 million** for the six months ended June 30, 2025, from **$34.6 million** in the prior year, primarily due to favorable changes in working capital[140](index=140&type=chunk) [Investing Activities](index=38&type=section&id=Investing%20Activities) This subsection details the net cash used for investing activities and capital expenditures for the six months ended June 30, 2025 versus 2024 - Net cash used for investing activities was **$11.5 million** for the six months ended June 30, 2025, a significant decrease from **$358.4 million** in 2024, which included the **$348.3 million** Signature acquisition[141](index=141&type=chunk) - Capital expenditures were **$11.7 million** for YTD Q2 2025, up from **$10.1 million** in YTD Q2 2024. Full year 2025 capital expenditures are expected to be approximately **3%** of revenue[141](index=141&type=chunk) [Financing Activities](index=39&type=section&id=Financing%20Activities) This subsection details the net cash provided by or used for financing activities for the six months ended June 30, 2025 versus 2024 - Cash used by financing activities was **$17.5 million** for YTD Q2 2025, a shift from **$331.0 million** provided in YTD Q2 2024, which included **$400 million** from a new term loan for the Signature acquisition[142](index=142&type=chunk) - Key financing activities in YTD Q2 2025 included **$5.0 million** net borrowings on the revolving credit facility, **$10.0 million** in Term Loan A repayments, **$1.5 million** for common stock repurchases, and **$10.4 million** in cash dividends paid[142](index=142&type=chunk) [Credit Sources](index=39&type=section&id=Credit%20Sources) This subsection describes the company's credit facilities, loan agreements, and interest rate swap arrangements - In January and February 2024, the Company repaid **$38.0 million** of senior unsecured notes, terminating the Note Purchase Agreement[143](index=143&type=chunk) - The Amended Loan Agreement, effective February 8, 2024, provided a new 5-year **$400 million** Term Loan A and maintained the **$250 million** revolving credit facility. The Company incurred **$9.2 million** in deferred financing fees[144](index=144&type=chunk)[145](index=145&type=chunk) - An interest rate swap agreement was entered into on May 2, 2024, to fix the rate on a portion of Term Loan A at **4.606%** plus applicable margin, with a remaining notional value of **$187.5 million** at June 30, 2025[146](index=146&type=chunk) [Off-Balance Sheet Arrangements](index=41&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements impacting the company's financial position - The Company does not have any off-balance sheet arrangements that are expected to have a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures, or capital resources at June 30, 2025[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, including interest rate, foreign currency, and commodity price risks, and mitigation strategies - The Company is exposed to interest rate risk on floating rate debt. A **one percent** change in market interest rates would alter annual variable interest expense by approximately **$1.9 million** based on current debt levels[150](index=150&type=chunk) - An interest rate swap agreement mitigates variable interest rate risk, effectively fixing the rate on a portion of outstanding borrowings. A **one percent** change in market rates would change annual fixed rate interest expense on the swap's fair value by approximately **$5.5 million**[151](index=151&type=chunk) - Foreign currency exposure primarily relates to operations in Canada and the UK. The Company has a systematic program to limit exposure to exchange rate fluctuations, typically using short-term arrangements (three months or less)[152](index=152&type=chunk) - The Company is exposed to commodity price risk, mainly for plastic resins and natural gas. It currently has no derivative contracts to hedge raw material pricing, but may enter into forward buy positions for utility costs[153](index=153&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting - The Company's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of June 30, 2025[155](index=155&type=chunk) - No changes in internal control over financial reporting occurred during the six months ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[156](index=156&type=chunk) Part II — Other Information This section provides additional information on legal proceedings, equity sales, and other disclosures [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings from Note 10, affirming that their ultimate outcome will not materially affect the company's financials - The Company is involved in various lawsuits and legal proceedings in the ordinary course of business, some covered by insurance[157](index=157&type=chunk) - Management believes the ultimate outcome of these matters will not have a material adverse effect on the consolidated financial position, results of operations, or cash flows[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase activities during Q2 2025 under the newly authorized 2025 Repurchase Program Common Stock Repurchase Activity (Quarter Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining Under Program | | :--- | :--- | :--- | :--- | | 4/1/2025 to 4/30/2025 | — | $— | $9,001,684 | | 5/1/2025 to 5/31/2025 | 27,359 | $12.39 | $8,662,843 | | 6/1/2025 to 6/30/2025 | 12,725 | $12.79 | $8,500,093 | - The 2025 Repurchase Program, authorized on February 27, 2025, allows for repurchases of up to **$10.0 million** in common stock and will end by December 31, 2025, or when the maximum amount is reached[158](index=158&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section confirms no directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q2 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1(c) trading plans or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[159](index=159&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, stock awards, and SOX certifications - Exhibits include the Second Amended and Restated Articles of Incorporation, Amended and Restated Code of Regulations, various 2025 stock award agreements and non-employee director compensation, and certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[161](index=161&type=chunk) - Financial information from the Quarterly Report is provided in inline XBRL format as Exhibit 101 and 104[161](index=161&type=chunk) [Signature](index=45&type=section&id=Signature) This section confirms the official signing of the report by the Interim Chief Financial Officer of Myers Industries, Inc - The report was duly signed on July 31, 2025, by Daniel W. Hoehn, Interim Chief Financial Officer (Principal Financial and Accounting Officer) of Myers Industries, Inc[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)

Financial Data and Key Metrics Changes - Second quarter net sales were $209.6 million, down 4.8% year over year, with revenue lower in both segments [17][18] - Adjusted gross margin fell by 220 basis points to 33.9% due to lower volume, product sales mix, and lower pricing primarily in the Distribution segment [19] - Adjusted operating income decreased to $22.8 million, with margin compressing by 220 basis points to 10.9% of sales [19] - Free cash flow generated was $25 million, showing strong cash generation from working capital [14][22] Business Line Data and Key Metrics Changes - Material Handling net sales decreased by 4.4%, with strong military product sales offset by lower volume in vehicle and other end markets [20] - Distribution net sales decreased by 6% due to lower pricing and volume from the patch rubber business [21] - Adjusted EBITDA margin for Material Handling was 23.9%, slightly lower than last year, while Distribution's adjusted EBITDA margin was 4.8% [21] Market Data and Key Metrics Changes - Industrial market expected to continue moderate growth driven by military product demand, with sales of military products projected to exceed $40 million for the full year [25] - Infrastructure market supported by strong project spending and a growing customer base, contributing over 20% of revenue so far this year [26] - Vehicle end market anticipated to decline due to economic uncertainty and tariff impacts [27] Company Strategy and Development Direction - Company is undergoing a focused transformation to improve performance and deliver consistent results, including a strategic review of the Myers Tire Supply business [10][15] - Consolidation of rotational molding production capacity is expected to result in annual savings of at least $3 million [11] - The company aims to achieve $20 million in cost savings primarily from SG&A reductions by the end of 2025 [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, supported by a substantial backlog in industrial markets, especially military and infrastructure projects [6][14] - The company is optimistic about long-term trends within its markets despite encountering demand headwinds in most other end markets [6] - Management noted that the strategic review of the Myers Tire Supply business aims to improve overall portfolio profitability [10] Other Important Information - The company reduced debt by $13 million in the second quarter, bringing total debt to $379 million, with a net leverage ratio of 2.8x [23] - The company has a share buyback program, repurchasing $500,000 in shares during the quarter [24] Q&A Session Summary Question: What led to the strategic review of Myers Tire Supply? - Management indicated that the decision was based on internal discussions and the need to gather data and insights from stakeholders and customers [34] Question: How significant is the backlog relative to sales? - Management noted that the backlog provides visibility into large projects, particularly in infrastructure and military, which gives confidence for the second half of the year [36] Question: What drove the strong free cash flow of $25 million? - Management attributed the strong cash flow to improved cash generation from working capital and noted that historical trends show more cash flow in the back half of the year [38] Question: What is the outlook for seed boxes in the second half? - Management expressed confidence based on customer feedback and normal seasonality for seed boxes, indicating expected improvement [44] Question: How is the integration of the Signature acquisition progressing? - Management highlighted the positive operational synergy and growth opportunities from the integration of Signature into the company [48] Question: What impact have tariffs had on sales? - Management explained that tariffs have caused some customers to delay purchases, affecting the timing of sales, but they expect resolution to stabilize the market [55][59]

Q2 2025 Financial Performance - Net sales decreased by 48% to $2096 million compared to Q2 2024[10, 22] - Adjusted operating income decreased by 209% to $228 million, with the adjusted operating income margin decreasing by 220 basis points to 109%[10, 22] - Adjusted net income decreased by 215% to $114 million, and diluted EPS decreased by 205% to $031[10] - The company generated strong free cash flow of $247 million, an increase of $148 million from the previous year[10] Segment Results - Material Handling net sales decreased by 44% to $1586 million, and adjusted operating income decreased by 109% to $289 million[31] - Distribution net sales decreased by 60% to $510 million, and adjusted operating income decreased by 444% to $16 million[33] Strategic Initiatives and Outlook - The company is launching a strategic review of Myers Tire Supply (MTS), which represents $189 million in sales over the last twelve months (LTM)[13] - The company is consolidating rotational molding production capacity by idling two of nine facilities, expecting at least $3 million in annual savings[15] - The company is tracking to achieve $20 million in cost savings by the end of 2025, primarily in SG&A[15, 41] - The company maintains a capital expenditure target of 3% of sales, focusing on high-growth opportunities[16, 39]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Myers Industries reported Q2 2025 sales decline, improved free cash flow, and accelerated its transformation program - Growth in Industrial sales, particularly **Scepter military products**, was offset by soft demand in Vehicle and Automotive Aftermarket, leading to a year-over-year sales decline[1](index=1&type=chunk)[4](index=4&type=chunk) - Significant **free cash flow improvement** year-over-year, generating **$25 million** during the quarter[1](index=1&type=chunk)[4](index=4&type=chunk) - Launching a **strategic review** of the **Myers Tire Supply business** to simplify the portfolio and prioritize core businesses[2](index=2&type=chunk)[5](index=5&type=chunk) - Idling two **rotational molding production facilities** to improve asset utilization and consolidating production capacity[2](index=2&type=chunk)[5](index=5&type=chunk) - On track to achieve **$20 million** in **cost savings** by the end of 2025[2](index=2&type=chunk)[5](index=5&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) [Overall Financial Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Summary) Myers Industries reported Q2 2025 net sales decreased 4.8% to $209.6 million, with broad declines in profitability metrics Key Financial Metrics (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Inc (Dec) | | :-------------------------- | :--------------------- | :--------------------- | :---------- | | Net sales | $209,583 | $220,236 | (4.8)% | | Gross profit | $70,662 | $75,517 | (6.4)% | | Gross margin | 33.7% | 34.3% | | | Operating income | $19,979 | $23,728 | (15.8)% | | Net income | $9,705 | $10,279 | (5.6)% | | Net income per diluted share | $0.26 | $0.28 | (7.1)% | | Adjusted operating income | $22,806 | $28,826 | (20.9)% | | Adjusted net income | $11,427 | $14,561 | (21.5)% | | Adjusted earnings per diluted share | $0.31 | $0.39 | (20.5)% | | Adjusted EBITDA | $32,875 | $38,893 | (15.5)% | - **Net sales** decreased due to lower demand in Vehicle and Automotive Aftermarket, partially offset by growth in the Industrial end market, particularly military products[11](index=11&type=chunk) - **Gross profit** and **Operating income** decreased due to lower pricing and volume, partially offset by lower material cost and SG&A[11](index=11&type=chunk) [Segment Results](index=3&type=section&id=Second%20Quarter%202025%20Segment%20Results) Material Handling saw slight sales decrease but operating income growth; Distribution experienced declines across sales and profitability [Material Handling Segment](index=3&type=section&id=Material%20Handling%20Segment) Material Handling Segment Performance (in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | $ Increase (decrease) vs prior year | % Increase (decrease) vs prior year | | :---------------- | :-------------------- | :-------------------- | :------------------------ | :------------------------ | | Net Sales | $158.6 | $166.0 | ($7.4) | (4.4)% | | Op Income | $29.5 | $28.7 | $0.8 | 2.7% | | Op Income Margin | 18.6% | 17.3% | | +130bps | | Adj EBITDA | $38.0 | $41.5 | ($3.5) | (8.5)% | | Adj EBITDA Margin | 23.9% | 25.0% | | -110bps | - **Operating income** increased as lower volume was more than offset by favorable material costs and lower SG&A, which included a **$3.2 million** reserve reversal for a fully collected long-term note[12](index=12&type=chunk) - **Adjusted EBITDA** decreased due to lower volume, partially offset by favorable material costs and SG&A[12](index=12&type=chunk) [Distribution Segment](index=3&type=section&id=Distribution%20Segment) Distribution Segment Performance (in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | $ Increase (decrease) vs prior year | % Increase (decrease) vs prior year | | :---------------- | :-------------------- | :-------------------- | :------------------------ | :------------------------ | | Net Sales | $51.0 | $54.3 | ($3.3) | (6.0)% | | Op Income | ($0.5) | $2.2 | ($2.7) | NM | | Op Income Margin | -1.1% | 4.0% | | -510bps | | Adj EBITDA | $2.4 | $3.8 | ($1.3) | (35.1)% | | Adj EBITDA Margin | 4.8% | 6.9% | | -210bps | - **Operating income** and **Adjusted EBITDA** decreased due to lower pricing, partially offset by favorable SG&A[8](index=8&type=chunk) [Balance Sheet & Cash Flow](index=3&type=section&id=Balance%20Sheet%20%26%20Cash%20Flow) Myers Industries reported $281.0 million liquidity, $24.7 million free cash flow, and reduced total debt by $13 million - Total liquidity of **$281.0 million**, including **$239.7 million** of availability under the revolving credit facility and cash on hand of **$41.3 million**[13](index=13&type=chunk) - **Cash flow from operations** was **$28.3 million**[13](index=13&type=chunk) - **Free cash flow** was **$24.7 million**, up **$14.8 million** versus prior year, due to improvements in working capital timing, particularly accounts receivable[13](index=13&type=chunk) - Total debt was reduced by **$13 million** with a **net leverage ratio** of **2.8x**[13](index=13&type=chunk) - Repurchased **$0.5 million** shares in the second quarter; expect to make additional opportunistic repurchases with **$8.5 million** remaining under the 2025 **Share Repurchase Program**[13](index=13&type=chunk) [Strategic Initiatives & Outlook](index=3&type=section&id=Strategic%20Initiatives%20%26%20Outlook) [Focused Transformation Program](index=3&type=section&id=Accelerating%20Progress%20on%20Focused%20Transformation) Myers Industries accelerates transformation with Myers Tire Supply review, production consolidation, and $20 million cost savings target [Strategic Review of Myers Tire Supply Business](index=4&type=section&id=Strategic%20Review%20of%20Myers%20Tire%20Supply%20Business) The Board of Directors has approved launching a strategic review of the Myers Tire Supply business - The Board of Directors has approved launching a **strategic review** of the **Myers Tire Supply business**[5](index=5&type=chunk)[10](index=10&type=chunk) - Revenue from **Myers Tire Supply** was **$189 million** over the last 12 months, ending June 30, 2025[10](index=10&type=chunk) - The review aims to simplify the portfolio, narrow strategic focus, and enable prioritization of core businesses to improve long-term earnings and shareholder value[5](index=5&type=chunk)[11](index=11&type=chunk)[14](index=14&type=chunk) [Consolidating Rotational Molding Production Capacity](index=4&type=section&id=Consolidating%20Rotational%20Molding%20Production%20Capacity) Myers announced plans to idle two Rotational Molding production facilities located in Alliance, Ohio - Myers announced plans to idle two **Rotational Molding production facilities** located in Alliance, Ohio[15](index=15&type=chunk) - Production from these facilities will be consolidated into other Myers locations, aligning operations with end markets served[15](index=15&type=chunk) - These actions are expected to result in **annualized savings** of at least **$3 million**[15](index=15&type=chunk) [Cost Savings Goal](index=4&type=section&id=Tracking%20to%20Achieve%20%2420%20Million%20in%20Cost%20Savings%20by%20End%20of%202025) The Company is on track to achieve its commitment of $20 million in cost savings, primarily in SG&A, by year-end 2025 - The Company is on track to deliver on its commitment to achieve **$20 million** in **cost savings**, primarily in **SG&A**, by the end of 2025[5](index=5&type=chunk)[16](index=16&type=chunk) - Through the first six months, the Company took action to realize **$15 million** in **annualized savings**[16](index=16&type=chunk) [2025 End Market Outlook](index=4&type=section&id=2025%20End%20Market%20Outlook) The 2025 end market outlook remains consistent, with strong Infrastructure, moderate Industrial, and declines in Vehicle and Automotive Aftermarket 2025 End Market Outlook | End Markets (TTM Sales as of June 30, 2025) | 2025 Outlook | | :----------------

Company Overview - Myers Industries' net sales reached $836 million, with an adjusted EBITDA of $126 million and an adjusted EBITDA margin of 15%[9] - The company's adjusted EPS stands at $105[9] - Material Handling segment accounts for 75% of the company's end market, while Distribution represents 25%[9] Segment Performance (TTM) - Material Handling segment's net sales were $627 million, representing 75% of net revenue, with an adjusted EBITDA of $146 million and a 23% adjusted EBITDA margin[12,13,14] - Distribution segment's net sales were $209 million, accounting for 25% of net revenue, with an adjusted EBITDA of $7 million and a 3% adjusted EBITDA margin[17] Q1 2025 Financial Results - Net sales were $2068 million, a slight decrease of 02% year-over-year[37,39] - Adjusted operating income increased by 122% to $187 million[37,39] - Diluted adjusted EPS increased by 48% to $022[37,39] - Adjusted EBITDA increased by 137% to $286 million, with an adjusted EBITDA margin of 138%[39] Q1 2025 Segment Results - Material Handling net sales increased by 36% to $1577 million, with an adjusted EBITDA margin of 230%[48] - Distribution net sales decreased by 103% to $492 million, with an adjusted EBITDA margin of 09%[50] Balance Sheet and Cash Flow - Free cash flow generated in Q1 2025 was $20 million[53] - Net leverage ratio increased to 28x[53] - Working capital as a percentage of TTM sales was 141%[53]

Part I — Financial Information Presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2025 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Myers Industries, Inc. and its subsidiaries, including statements of operations, comprehensive income (loss), financial position, shareholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, acquisitions, restructuring activities, and other financial disclosures for the quarter ended March 31, 2025, compared to the prior year [Condensed Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Details the company's revenues, expenses, and net income for the first quarter of 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) – Q1 2025 vs Q1 2024 (Dollars in thousands) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Net sales | $206,750 | $207,102 | $(352) | (0.2)% | | Cost of sales | $137,672 | $142,833 | $(5,161) | (3.6)% | | Gross profit | $69,078 | $64,269 | $4,809 | 7.5% | | Selling, general and administrative expenses | $44,755 | $47,113 | $(2,358) | (5.0)% | | Depreciation and amortization | $4,458 | $3,921 | $537 | 13.7% | | Freight out | $2,812 | $2,423 | $389 | 16.1% | | (Gain) loss on disposal of fixed assets | $403 | $(67) | $470 | -701.5% | | Operating income | $16,650 | $10,879 | $5,771 | 53.0% | | Interest expense, net | $7,386 | $6,079 | $1,307 | 21.5% | | Income before income taxes | $9,264 | $4,800 | $4,464 | 93.0% | | Income tax expense | $2,459 | $1,297 | $1,162 | 89.6% | | Net income | $6,805 | $3,503 | $3,302 | 94.3% | | Net income per common share: Basic | $0.18 | $0.09 | $0.09 | 100.0% | | Net income per common share: Diluted | $0.18 | $0.09 | $0.09 | 100.0% | [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Details net income and other comprehensive income components, including foreign currency and interest rate swap impacts Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) – Q1 2025 vs Q1 2024 (Dollars in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Net income | $6,805 | $3,503 | $3,302 | | Other comprehensive income (loss): | | | | | Foreign currency translation adjustment | $(8) | $(831) | $823 | | Unrealized gain (loss) on interest rate swap contracts, net of tax | $(1,450) | — | $(1,450) | | Realized (gain) loss on interest rate swap contracts reclassified to interest expense | $85 | — | $85 | | Total other comprehensive income (loss) | $(1,373) | $(831) | $(542) | | Comprehensive income | $5,432 | $2,672 | $2,760 | [Condensed Consolidated Statements of Financial Position (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position%20(Unaudited)) Outlines assets, liabilities, and shareholders' equity at March 31, 2025, compared to December 31, 2024 Condensed Consolidated Statements of Financial Position (Unaudited) – March 31, 2025 vs December 31, 2024 (Dollars in thousands) | Metric | March 31, 2025 | December 31, 2024 | Change | | :---------------------------------------------------------------- | :------------- | :---------------- | :----- | | **Assets** | | | | | Cash | $35,302 | $32,222 | $3,080 | | Trade accounts receivable, net | $131,574 | $109,372 | $22,202 | | Inventories, net | $103,785 | $97,001 | $6,784 | | Total Current Assets | $289,140 | $259,307 | $29,833 | | Property, plant, and equipment, net | $135,993 | $137,564 | $(1,571) | | Goodwill | $255,545 | $255,532 | $13 | | Intangible assets, net | $162,531 | $166,321 | $(3,790) | | Total Assets | $883,842 | $860,815 | $23,027 | | **Liabilities and Shareholders' Equity** | | | | | Accounts payable | $84,890 | $71,049 | $13,841 | | Total Current Liabilities | $162,580 | $147,112 | $15,468 | | Long-term debt | $363,733 | $355,310 | $8,423 | | Total Liabilities | $606,419 | $583,303 | $23,116 | | Common Shares | $23,015 | $22,923 | $92 | | Additional paid-in capital | $324,631 | $325,163 | $(532) | | Accumulated other comprehensive loss | $(23,483) | $(22,110) | $(1,373) | | Retained deficit | $(46,740) | $(48,464) | $1,724 | | Total Shareholders' Equity | $277,423 | $277,512 | $(89) | | Total Liabilities and Shareholders' Equity | $883,842 | $860,815 | $23,027 | [Condensed Consolidated Statements of Shareholders' Equity (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(Unaudited)) Details changes in common shares, additional paid-in capital, accumulated other comprehensive loss, and retained deficit Condensed Consolidated Statements of Shareholders' Equity (Unaudited) – Q1 2025 vs Q1 2024 (Dollars in thousands) | Metric | Balance at Jan 1, 2025 | Q1 2025 Activity | Balance at Mar 31, 2025 | Balance at Jan 1, 2024 | Q1 2024 Activity | Balance at Mar 31, 2024 | | :------------------------------------------ | :--------------------- | :--------------- | :---------------------- | :--------------------- | :--------------- | :---------------------- | | Common Shares | $22,923 | $92 | $23,015 | $22,608 | $226 | $22,834 | | Additional Paid-In Capital | $325,163 | $(532) | $324,631 | $322,526 | $990 | $323,516 | | Accumulated Other Comprehensive Income (Loss) | $(22,110) | $(1,373) | $(23,483) | $(16,815) | $(831) | $(17,646) | | Retained Deficit | $(48,464) | $1,724 | $(46,740) | $(35,519) | $(1,534) | $(37,053) | | **Total Shareholders' Equity** | **$277,512** | **$(89)** | **$277,423** | **$292,800** | **$(1,159)** | **$291,651** | | *Net income* | — | $6,805 | | — | $3,503 | | | *Foreign currency translation adjustment* | — | $(8) | | — | $(831) | | | *Interest rate swap, net of tax* | — | $(1,365) | | — | — | | | *Shares issued under incentive plans, net* | — | $(533) | | — | $534 | | | *Repurchase of common stock* | — | $(1,008) | | — | — | | | *Stock compensation expense* | — | $1,101 | | — | $682 | | | *Declared dividends* | — | $(5,081) | | — | $(5,037) | | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Summarizes cash flows from operating, investing, and financing activities for the first quarter of 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) – Q1 2025 vs Q1 2024 (Dollars in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Net cash provided by (used for) operating activities | $10,131 | $20,270 | $(10,139) | | Net cash provided by (used for) investing activities | $(8,007) | $(354,522) | $346,515 | | Net cash provided by (used for) financing activities | $988 | $336,874 | $(335,886) | | Foreign exchange rate effect on cash | $(32) | $(182) | $150 | | Net increase (decrease) in cash | $3,080 | $2,440 | $640 | | Cash at January 1 | $32,222 | $30,290 | $1,932 | | Cash at March 31 | $35,302 | $32,730 | $2,572 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Myers Industries, Inc. and its subsidiaries, including statements of operations, comprehensive income (loss), financial position, shareholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, acquisitions, restructuring activities, and other financial disclosures for the quarter ended March 31, 2025, compared to the prior year [1. Summary of Significant Accounting Policies](index=8&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the basis of financial statement preparation, recent accounting standard updates, and details on interest rate swap agreements - The unaudited condensed consolidated financial statements are prepared in accordance with SEC rules and GAAP, with certain information condensed or omitted. The Company updated its presentation of Depreciation and amortization expenses and third-party Freight out costs in Q1 2025, reclassifying them from Selling, general and administrative expenses[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company is evaluating the impact of new accounting standards: ASU 2023-09 (Income Tax Disclosures, effective after December 15, 2024) and ASU 2024-03 (Expense Disaggregation Disclosures, effective after December 15, 2026)[25](index=25&type=chunk)[26](index=26&type=chunk) - The Company entered into an interest rate swap agreement on May 2, 2024, to hedge variable interest rate exposure on a portion of its floating rate indebtedness. The swap has a beginning notional value of **$200.0 million**, reducing to **$190.0 million** by March 31, 2025, and effectively fixes the rate at **4.606%** plus the applicable margin[32](index=32&type=chunk)[33](index=33&type=chunk) Changes in Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) | Metric | Balance at Jan 1, 2025 | Other comprehensive income (loss) before reclassifications | Reclassification to (earnings) loss | Net current-period other comprehensive income (loss) | Balance at Mar 31, 2025 | | :-------------------------------- | :--------------------- | :------------------------------------------------------- | :-------------------------- | :------------------------------------------- | :---------------------- | | Foreign Currency | $(18,609) | $(8) | — | $(8) | $(18,617) | | Interest Rate Swap (1) | $(2,400) | $(1,450) | $85 | $(1,365) | $(3,765) | | Defined Benefit Pension Plans | $(1,101) | — | — | — | $(1,101) | | **Total** | **$(22,110)** | **$(1,458)** | **$85** | **$(1,373)** | **$(23,483)** | [2. Revenue Recognition](index=12&type=section&id=2.%20Revenue%20Recognition) Explains the company's policies for recognizing revenue, including variable consideration, and details related freight out expenses - Revenue is recognized when control of products transfers to customers, typically at shipment or delivery. Contracts are generally short-term (within 90 days), and no significant deferred revenue is recorded[38](index=38&type=chunk) - Variable consideration, such as rebates and discounts, is estimated and recognized each period. Allowances for product returns are also recognized based on historical experience[39](index=39&type=chunk) Amounts Related to Revenue Recognition (Dollars in thousands) | Item | March 31, 2025 | December 31, 2024 | Statement of Financial Position Classification | | :-------------------------------- | :------------- | :---------------- | :--------------------------------------------- | | Returns, discounts and other allowances | $(706) | $(1,051) | Trade accounts receivable | | Right of return asset | $728 | $456 | Inventories, net | | Customer deposits | $(2,252) | $(2,565) | Other current liabilities | | Accrued rebates | $(2,922) | $(4,196) | Other current liabilities | - Freight out expenses were approximately **$2.8 million** for the manufacturing business in Q1 2025 (up from **$2.4 million** in Q1 2024) and approximately **$2.6 million** for the distribution business in Q1 2025 (down from **$2.9 million** in Q1 2024)[40](index=40&type=chunk) [3. Acquisitions](index=14&type=section&id=3.%20Acquisitions) Details the acquisition of Signature Systems, including its purchase price allocation and pro forma financial impacts - On February 8, 2024, the Company acquired Signature Systems, a manufacturer and distributor of composite matting ground protection, for **$348.3 million** cash (net of cash acquired). This acquisition is part of the Material Handling Segment and aligns with the Company's strategic plan for engineered plastic solutions[43](index=43&type=chunk) Final Purchase Price Allocation for Signature Acquisition (Dollars in thousands) | Item | Final Allocation | | :-------------------------------- | :--------------- | | **Assets acquired:** | | | Accounts receivable | $18,854 | | Inventories | $17,373 | | Property, plant and equipment | $28,263 | | Intangible assets | $136,700 | | Goodwill | $183,098 | | **Total Assets acquired** | **$394,126** | | **Liabilities assumed:** | | | Accounts payable | $4,904 | | Deferred income taxes | $32,073 | | **Total liabilities assumed** | **$45,814** | | **Net acquisition cost** | **$348,312** | Intangible Assets Acquired from Signature (Dollars in thousands) | Intangible Asset | Fair Value | Weighted Average Estimated Useful Life | | :----------------------------- | :--------- | :------------------------------------- | | Customer relationships | $83,800 | 10.0 years | | Technology | $31,300 | 12.0 years | | Total amortizable intangible assets | $115,100 | | | Trademarks and trade names | $21,600 | Indefinite | Unaudited Pro Forma Results for Q1 2024 (assuming Signature acquisition on Jan 1, 2023) (Dollars in thousands) | Metric | Q1 2024 Pro Forma | | :--------- | :---------------- | | Net sales | $221,821 | | Net income | $8,345 | [4. Restructuring](index=16&type=section&id=4.%20Restructuring) Describes the 'Focused Transformation' initiative, including cost savings targets, incurred charges, and expected remaining costs - The Company launched a 'Focused Transformation' initiative on March 6, 2025, aiming for **$20 million** in annualized cost savings (primarily SG&A) by year-end 2025. **$0.4 million** in restructuring charges were incurred in Q1 2025[50](index=50&type=chunk) - Restructuring within the Distribution Segment resulted in **$0.8 million** in charges for Q1 2025, including asset impairments, inventory write-downs, and severance. Approximately **$1.7 million** in remaining costs are expected[51](index=51&type=chunk) - The Ameri-Kart plan is complete, with **$0.2 million** in restructuring charges incurred in Q1 2024 and a **$1.8 million** lease termination payment in May 2024[52](index=52&type=chunk) - Other restructuring initiatives to streamline overhead costs totaled **$0.8 million** in Q1 2025, with **$1.7 million** in accrued and unpaid expenses at March 31, 2025[53](index=53&type=chunk) [5. Inventories](index=16&type=section&id=5.%20Inventories) Details the valuation methods for inventories and provides a breakdown of finished products, raw materials, and supplies - Approximately **30%** of inventories are valued using the LIFO method, with all other inventories valued using the FIFO method. No adjustment to the LIFO reserve was recorded for Q1 2025 or Q1 2024[54](index=54&type=chunk) Inventories Breakdown (Dollars in thousands) | Inventory Type | March 31, 2025 | December 31, 2024 | | :------------------------ | :------------- | :---------------- | | Finished and in-process products | $64,832 | $62,601 | | Raw materials and supplies | $38,953 | $34,400 | | **Total Inventories** | **$103,785** | **$97,001** | [6. Other Liabilities](index=17&type=section&id=6.%20Other%20Liabilities) Presents a breakdown of current and long-term liabilities, including customer deposits, environmental reserves, and hedge contracts Other Current Liabilities (Dollars in thousands) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Customer deposits and accrued rebates | $5,174 | $6,761 | | Dividends payable | $5,376 | $5,613 | | Current portion of environmental reserves | $5,405 | $6,605 | | Hedge contract liability | $1,068 | $753 | | Other accrued expenses | $6,433 | $6,952 | | **Total Other Current Liabilities** | **$23,617** | **$26,794** | Other Long-Term Liabilities (Dollars in thousands) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Environmental reserves | $10,530 | $9,984 | | Hedge contract liability | $4,019 | $2,490 | | Other long-term liabilities | $2,097 | $2,480 | | **Total Other Long-Term Liabilities** | **$16,942** | **$15,303** | [7. Goodwill and Intangible Assets](index=17&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Provides a breakdown of goodwill by segment and describes the composition of intangible assets Goodwill by Segment (Dollars in thousands) | Segment | January 1, 2025 | Foreign currency translation | March 31, 2025 | | :-------------- | :-------------- | :--------------------------- | :------------- | | Distribution | $14,730 | — | $14,730 | | Material Handling | $240,802 | $13 | $240,815 | | **Total** | **$255,532** | **$13** | **$255,545** | - Intangible assets primarily include trade names, customer relationships, patents, non-competition agreements, and technology assets from acquisitions. Indefinite-lived trade names had a carrying value of **$31.4 million** at both March 31, 2025, and December 31, 2024[57](index=57&type=chunk) [8. Stockholders' Equity](index=18&type=section&id=8.%20Stockholders'%20Equity) Details the calculation of net income per common share and outlines the Company's stock repurchase program Net Income Per Common Share Calculation | Metric | Q1 2025 | Q1 2024 | | :------------------------------------------ | :---------- | :---------- | | Weighted average common shares outstanding basic | 37,298,967 | 36,908,169 | | Dilutive effect of stock options and restricted stock | 115,043 | 214,850 | | Weighted average common shares outstanding diluted | 37,414,010 | 37,123,019 | | Diluted Net income per common share | $0.18 | $0.09 | - The Board of Directors authorized a new 2025 Repurchase Program on February 27, 2025, for up to **$10.0 million** in common stock, effective March 10, 2025. This program replaces the previous 2013 authorization[59](index=59&type=chunk) - During Q1 2025, the Company repurchased **76,800 shares** for **$1.0 million** at an average cost of **$13.00 per share** under the 2025 Repurchase Program. Approximately **$9.0 million** remained authorized as of March 31, 2025[60](index=60&type=chunk) [9. Stock Compensation](index=18&type=section&id=9.%20Stock%20Compensation) Reports stock compensation expenses and details the unrecognized compensation cost related to non-vested stock-based awards - Stock compensation expense was **$1.1 million** for Q1 2025, an increase from **$0.7 million** in Q1 2024. These expenses are included in Selling, general and administrative expenses[63](index=63&type=chunk) - The 2024 Long-Term Incentive Plan, approved by shareholders on April 25, 2024, authorizes the issuance of up to **2,500,000 additional stock awards**. Total unrecognized compensation cost related to non-vested stock-based compensation was approximately **$7.9 million** at March 31, 2025, to be recognized over the next three years[62](index=62&type=chunk)[63](index=63&type=chunk) [10. Contingencies](index=19&type=section&id=10.%20Contingencies) Discusses legal matters, environmental liabilities, and potential insurance recoveries, including specific site-related costs and lawsuits - Management believes the ultimate outcome of current legal matters will not have a material adverse effect on the Company's financial position, cash flows, or results of operations, though inherent uncertainties exist[65](index=65&type=chunk) - For the New Idria Mercury Mine site, cumulative charges were **$25.1 million**, payments **$15.3 million**, and insurance recoveries **$7.1 million** through March 31, 2025. The ending reserve balance was **$11.7 million** and the probable insurance recovery receivable was **$7.5 million** at March 31, 2025[69](index=69&type=chunk)[70](index=70&type=chunk) - For the New Almaden Mine, Buckhorn has a total reserve of **$4.4 million** at March 31, 2025. Project costs are expected to be higher than initial estimates, and the Company intends to challenge responsibility for cost increases[72](index=72&type=chunk)[73](index=73&type=chunk) - Two lawsuits were filed in 2023 and 2025 against Scepter Manufacturing, LLC (a subsidiary) regarding portable fuel containers. The Company cannot yet assess the outcome or potential damages, but Scepter maintains insurance policies expected to cover substantial defense costs[74](index=74&type=chunk)[75](index=75&type=chunk) [11. Long-Term Debt and Loan Agreements](index=21&type=section&id=11.%20Long-Term%20Debt%20and%20Loan%20Agreements) Details the composition of long-term debt, loan agreement terms, interest rates, and compliance with debt covenants Long-Term Debt Composition (Dollars in thousands) | Debt Type | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Amended Loan Agreement - Revolving Credit Facility | $13,000 | — | | Amended Loan Agreement - Term Loan A | $377,000 | $382,000 | | **Total Gross Debt** | **$390,000** | **$382,000** | | Less unamortized deferred financing costs | $6,618 | $7,041 | | Less current portion long-term debt | $19,649 | $19,649 | | **Long-term debt (net)** | **$363,733** | **$355,310** | - The Amended Loan Agreement, entered on February 8, 2024, permitted the Signature acquisition and provided a new 5-year **$400 million** Term Loan A, which amortizes in quarterly installments. **$9.2 million** in deferred financing fees were incurred[76](index=76&type=chunk)[77](index=77&type=chunk) - As of March 31, 2025, the Company had **$231.7 million** available under the Amended Loan Agreement. Borrowings bear interest at various floating rates (Term SOFR, RFR, SONIA, EURIBOR, CORRA-based)[78](index=78&type=chunk) - The Company repaid **$38.0 million** of senior unsecured notes in Q1 2024, terminating the Note Purchase Agreement and recognizing a **$0.1 million** loss on debt extinguishment[79](index=79&type=chunk) - The weighted average interest rate on borrowings was **7.59%** for Q1 2025, down from **8.93%** for Q1 2024[80](index=80&type=chunk) - The Company was in compliance with all debt covenants as of March 31, 2025, with an interest coverage ratio of **3.95** (minimum **3.00**) and a net leverage ratio of **2.77** (maximum **3.25**)[81](index=81&type=chunk)[122](index=122&type=chunk) [12. Income Taxes](index=22&type=section&id=12.%20Income%20Taxes) Reports the effective tax rate for the quarter and outlines the periods subject to tax examinations - The effective tax rate for Q1 2025 was **26.5%**, a slight decrease from **27.0%** in Q1 2024, primarily due to higher fixed non-deductible expenses in the prior year[83](index=83&type=chunk) - The Company is no longer subject to U.S. Federal examination for tax years before 2021 and is subject to state, local, and non-U.S. examinations for tax years 2020 through 2023[84](index=84&type=chunk) [13. Leases](index=22&type=section&id=13.%20Leases) Presents lease assets and liabilities, components of lease expense, and weighted-average lease terms and discount rates Lease Assets and Liabilities (Dollars in thousands) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | **Assets:** | | | | Operating lease assets (ROU asset) | $29,413 | $30,561 | | Finance lease assets | $7,741 | $7,927 | | **Total lease assets** | **$37,154** | **$38,488** | | **Liabilities:** | | | | Total operating lease liabilities | $29,244 | $30,297 | | Total finance lease liabilities | $8,461 | $8,615 | | **Total lease liabilities** | **$37,705** | **$38,912** | Components of Lease Expense (Dollars in thousands) | Lease Cost Component | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | Operating lease cost (Cost of sales) | $1,790 | $1,732 | | Operating lease cost (SG&A) | $987 | $964 | | Finance lease cost (Amortization expense) | $185 | $185 | | Finance lease cost (Interest expense) | $77 | $83 | | **Total lease cost** | **$3,039** | **$2,964** | Weighted-Average Lease Terms and Discount Rates | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Weighted-average remaining lease term (years): Operating leases | 4.71 | 4.93 | | Weighted-average remaining lease term (years): Finance leases | 10.75 | 11.00 | | Weighted-average discount rate: Operating leases | 6.3% | 6.3% | | Weighted-average discount rate: Finance leases | 3.7% | 3.7% | [14. Segments](index=24&type=section&id=14.%20Segments) Describes the Company's two reportable segments, Material Handling and Distribution, and provides their financial performance - The Company operates under two reportable segments: Material Handling (manufacturing plastic, metal, and rubber products like reusable containers, pallets, and ground protection matting) and Distribution (distributing tire servicing equipment and supplies, and manufacturing tire repair products and traffic markings)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) Segment Performance – Q1 2025 vs Q1 2024 (Dollars in thousands) | Metric | Material Handling (2025) | Distribution (2025) | Corporate (2025) | Consolidated (2025) | Material Handling (2024) | Distribution (2024) | Corporate (2024) | Consolidated (2024) | | :------------------------------------ | :----------------------- | :-------------------- | :--------------- | :-------------------- | :----------------------- | :-------------------- | :--------------- | :-------------------- | | Net sales | $157,672 | $49,246 | — | $206,750 | $152,225 | $54,894 | — | $207,102 | | Cost of sales | $102,756 | $35,084 | — | $137,672 | $105,146 | $37,704 | — | $142,833 | | Selling, general and administrative expenses | $21,467 | $13,964 | $9,324 | $44,755 | $19,641 | $15,689 | $11,783 | $47,113 | | Operating income (loss) | $27,381 | $(1,181) | $(9,550) | $16,650 | $22,256 | $605 | $(11,982) | $10,879 | | Total assets | $734,577 | $98,941 | $50,324 | $883,842 | $796,713 | $106,601 | $43,822 | $947,136 | | Capital additions, net | $7,953 | $105 | $25 | $8,083 | $5,206 | $380 | $121 | $5,707 | | Depreciation and amortization | $8,846 | $824 | $765 | $10,435 | $7,525 | $773 | $430 | $8,728 | - Foreign business units contributed approximately **$11.1 million** in sales for Q1 2025, an increase from **$9.9 million** in Q1 2024[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, liquidity, and capital resources for the quarter ended March 31, 2025, compared to the prior year. It includes forward-looking statements, an executive overview of business segments and the economic environment, and a detailed discussion of key financial results and changes [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) Highlights the inherent uncertainties and risks associated with the company's financial outlook and future business plans - The report contains forward-looking statements regarding financial outlook, future plans, objectives, business prospects, and anticipated financial performance, which are based on current beliefs and assumptions and involve inherent uncertainties and risks[97](index=97&type=chunk) - Specific risk factors include significant increases in raw material costs, competitive environment, changes in U.S. trade policy, production disruptions, new product development, intellectual property protection, price volatility of common stock, strategic growth initiatives, economic downturns, foreign business risks, access to credit financing, equity ownership concentration, claims, litigation, regulatory actions, and unforeseen catastrophic events[98](index=98&type=chunk) [Executive Overview](index=28&type=section&id=Executive%20Overview) Provides an overview of the company's operating segments and its strategy for managing current economic uncertainties - Myers Industries operates in two reportable segments: Material Handling (manufacturing plastic, metal, and rubber products like reusable containers, pallets, and ground protection matting) and Distribution (distributing tire servicing equipment and supplies, and manufacturing tire repair products)[100](index=100&type=chunk)[101](index=101&type=chunk) - The current economic environment presents heightened risks from tariffs, inflation, interest rates, volatile commodity costs, supply chain disruptions, and labor availability due to geopolitical factors. The Company believes it is well-positioned to manage these uncertainties with a strong balance sheet, sufficient liquidity, and a diverse product and customer base[102](index=102&type=chunk) [Results of Operations: Comparison of the Quarter Ended March 31, 2025 to the Quarter Ended March 31, 2024](index=30&type=section&id=Results%20of%20Operations%3A%20Comparison%20of%20the%20Quarter%20Ended%20March%2031%2C%202025%20to%20the%20Quarter%20Ended%20March%2031%2C%202024) Analyzes the company's financial performance, including net sales, gross profit, operating expenses, and net income Net Sales by Segment (Dollars in thousands) | Segment | Q1 2025 | Q1 2024 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Material Handling | $157,672 | $152,225 | $5,447 | 3.6% | | Distribution | $49,246 | $54,894 | $(5,648) | (10.3)% | | Inter-company sales | $(168) | $(17) | $(151) | | | **Total net sales** | **$206,750** | **$207,102** | **$(352)** | **(0.2)%** | - Total net sales decreased by **0.2%** due to lower pricing (**$6.0 million**), lower volume (**$0.2 million**), and unfavorable currency translation (**$0.6 million**), partially offset by **$6.4 million** incremental sales from the Signature acquisition[103](index=103&type=chunk) - Gross profit increased by **$4.8 million** (**7.5%**) to **$69.1 million**, with gross margin improving to **33.4%** from **31.0%**. This was driven by benefits from the Signature acquisition, favorable mix, and lower material costs, partially offset by lower volume and pricing[106](index=106&type=chunk) - Selling, general and administrative (SG&A) expenses decreased by **$2.4 million** (**5.0%**) to **$44.8 million**, primarily due to lower acquisition and integration costs, variable selling expenses, legal fees, and salaries, partially offset by incremental SG&A from Signature and higher restructuring costs[107](index=107&type=chunk) - Net interest expense increased by **$1.3 million** (**21.5%**) to **$7.4 million**, mainly due to higher average outstanding borrowings from the Signature acquisition, partially offset by a lower weighted-average borrowing rate of **7.59%** (down from **8.93%**)[111](index=111&type=chunk) - The effective tax rate decreased to **26.5%** from **27.0%**, driven by higher fixed non-deductible expenses in the prior year[112](index=112&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Examines the company's cash position, operating cash flow, investing activities, financing activities, and debt compliance - The Company's primary sources of liquidity are cash on hand (**$35.3 million** at March 31, 2025), cash generated from operations, and **$231.7 million** available under the Amended Loan Agreement. Total outstanding debt was **$391.8 million**[113](index=113&type=chunk) - Net cash provided by operating activities decreased to **$10.1 million** in Q1 2025 from **$20.3 million** in Q1 2024, primarily due to changes in working capital (increases in accounts receivable and inventories, partially offset by increases in accounts payable)[114](index=114&type=chunk) - Net cash used for investing activities significantly decreased to **$8.0 million** in Q1 2025 from **$354.5 million** in Q1 2024, as the prior year included the **$348.3 million** Signature acquisition. Capital expenditures increased to **$8.1 million** from **$5.7 million**[115](index=115&type=chunk) - Net cash provided by financing activities decreased to **$1.0 million** in Q1 2025 from **$336.9 million** in Q1 2024, primarily because Q1 2024 included **$400 million** proceeds from the Term Loan A for the Signature acquisition. Q1 2025 included **$13.0 million** net borrowings on the revolving credit facility, **$5.0 million** Term Loan A repayments, and **$1.0 million** for common stock repurchases[116](index=116&type=chunk) - The Company repaid **$38.0 million** of senior unsecured notes in Q1 2024. The Amended Loan Agreement, which facilitated the Signature acquisition, provided a new **$400 million** Term Loan A. An interest rate swap was entered into on May 2, 2024, to mitigate variable interest rate risk on **$190.0 million** notional debt[117](index=117&type=chunk)[118](index=118&type=chunk)[120](index=120&type=chunk) Debt Covenants as of March 31, 2025 | Covenant | Required Level | Actual Level | | :---------------------- | :------------- | :----------- | | Interest Coverage Ratio | 3.00 to 1 (minimum) | 3.95 | | Net Leverage Ratio | 3.25 to 1 (maximum) | 2.77 | - The Company does not have any off-balance sheet arrangements that are reasonably expected to have a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures, or capital resources[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the Company's exposure to various market risks, including interest rate risk, foreign currency exchange risk, and commodity price risk, and describes the strategies employed to manage these exposures - The Company is exposed to interest rate risk due to floating rate financing arrangements. A **1%** change in market interest rates would change annual variable interest expense by approximately **$2.0 million** based on current debt levels. An interest rate swap mitigates this risk, effectively fixing rates on a portion of debt, where a **1%** change would impact annual fixed rate interest expense on the swap by approximately **$5.9 million**[124](index=124&type=chunk)[125](index=125&type=chunk) - Foreign currency exchange risk primarily arises from operations in Canada and the United Kingdom with U.S. dollar sales. The Company has a systematic program to limit exposure, typically using short-term contracts, but had no foreign currency arrangements in place at March 31, 2025[126](index=126&type=chunk) - The Company faces commodity price risk from raw materials, mainly plastic resins, and natural gas. It currently has no derivative contracts to hedge raw material pricing, and significant future increases in plastic resin costs could materially impact financial results[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and confirms that there have been no material changes in internal control over financial reporting during the quarter - The Company's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of March 31, 2025[129](index=129&type=chunk) - There have been no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[130](index=130&type=chunk) Part II — Other Information Provides additional information on legal proceedings, equity sales, other disclosures, and exhibits filed with the report [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10, Contingencies, for detailed information on legal proceedings and reiterates management's belief that these matters will not have a material adverse effect on the Company's financial position, results of operations, or cash flows - Legal proceedings are discussed in detail in Note 10, Contingencies, of the Unaudited Condensed Consolidated Financial Statements[132](index=132&type=chunk) - Management believes that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on the Company's consolidated financial position, results of operations, or cash flows[132](index=132&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on the Company's stock repurchase activities during the quarter ended March 31, 2025, including details of the newly authorized 2025 Repurchase Program - The Board authorized a new 2025 Repurchase Program on February 27, 2025, for up to **$10.0 million** in common stock, effective March 10, 2025. This program replaced the previously authorized 2013 repurchase program[134](index=134&type=chunk) Stock Repurchase Activity (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of the Publicly Announced Plans or Programs | Maximum dollar value of Shares that may yet be Purchased Under the Plans or Programs | | :---------------------- | :----------------------------- | :--------------------------- | :----------------------------------------------------------------------- | :-------------------------------------------------------------------- | | 1/1/2025 to 1/31/2025 | — | $— | 5,547,665 | N/A | | 2/1/2025 to 2/28/2025 | — | — | 5,547,665 | N/A | | 3/1/2025 to 3/10/2025 | — | — | 5,547,665 | N/A | | 3/10/2025 to 3/31/2025 | 76,800 | $13.00 | 76,800 | $9,001,684 | [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the first quarter of 2025 - During the three months ended March 31, 2025, none of the Company's directors or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any 'non-Rule 10b5-1 trading arrangement'[134](index=134&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, stock award agreements, certifications, and the interactive data file - Key exhibits filed include the Second Amended and Restated Articles of Incorporation, Amended and Restated Code of Regulations, Forms of 2025 Restricted Stock Unit and Performance Stock Unit Award Agreements, Certifications by the CEO and CFO (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act), and the Cover Page Interactive Data File (XBRL)[136](index=136&type=chunk) [Signature](index=38&type=section&id=Signature) This section contains the formal signature block for the Form 10-Q report, indicating its official submission - The report was signed on May 1, 2025, by Grant E. Fitz, Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) of Myers Industries, Inc.[140](index=140&type=chunk)

Financial Data and Key Metrics Changes - First quarter net sales were $206.8 million, essentially flat year over year, with growth in material handling offset by softness in the distribution segment [24][26] - Adjusted gross margin improved by 80 basis points to 33.5%, driven largely by the acquisition of Signature and favorable product mix [25] - Adjusted operating income increased to $18.7 million, with margin improving 100 basis points to 9% of sales [25] - Diluted adjusted earnings per share were $0.22 compared to $0.21 in the previous year [26] Business Line Data and Key Metrics Changes - Material Handling net sales increased by 3.6% year over year, primarily due to the Signature acquisition [26] - Adjusted EBITDA for Material Handling rose by 11.7% to $36.3 million, resulting in a 60 basis point increase in adjusted EBITDA margin to 23% [27] - Distribution net sales decreased by 10.3% due to lower volume and pricing, with adjusted EBITDA dropping to $500,000 [27] Market Data and Key Metrics Changes - Industrial market is expected to continue moderate growth driven by global inventory replenishment for military applications [31] - The vehicle end market, including RV and marine, is projected to decline due to economic uncertainty and tariff impacts [31][56] - Consumer market sales are anticipated to remain stable, while food and beverage markets are also projected to be stable [31] Company Strategy and Development Direction - The company is focused on a transformation program aimed at delivering consistent and reliable results, with objectives including establishing a culture of execution and accountability [11][12] - Plans to optimize cash flow and support disciplined capital allocation, including a $10 million share repurchase plan [16] - The company aims to announce an updated long-term strategy for each business by the end of the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff impacts due to a predominantly domestic supply chain [10] - There are clear opportunities for improvement, and management is optimistic about the path to elevate performance [7][8] - The company is closely monitoring end market conditions for potential impacts from tariffs and other factors [30] Other Important Information - The company has achieved $12 million in synergies from the Signature acquisition, exceeding the initial target of $8 million [70] - The CFO, Grant Fitz, will be stepping down, with Dan Hoehn serving as interim CFO [22][23] Q&A Session Summary Question: Impact of tariffs on Central America facilities and price sensitivity of customers - Management indicated that Central America has a small impact on the distribution business and that customers are price sensitive but will adjust as needed [38][39] Question: Reasons for low free cash flow this quarter - Management explained that low free cash flow was due to timing of accounts receivable and proactive inventory purchases ahead of potential tariffs [40][44] Question: Uptake in orders for military products from Signature and Scepter - Management reported strong order flow and growth in both Signature and Scepter businesses, with positive customer relationships [47][49] Question: Outlook for the vehicle group and economic uncertainty - Management noted that economic uncertainty and tariff impacts have led to a cautious approach among customers in the RV and marine sectors [55][56] Question: Strategies to turn around the distribution business - Management emphasized the importance of understanding customer needs and providing value-added services to improve the distribution business [62][64] Question: Learnings from the Signature acquisition - Management highlighted successful integration and synergies achieved from the Signature acquisition, which has positively impacted operations [68][70]