Self-Help Initiatives Sustain Gross Margin Profile

Continuing to Invest in Growth and Capabilities, while Prudently Managing Costs

Myers Industries, Inc. (NYSE:MYE), a leading manufacturer of a wide range of polymer and metal products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the second quarter ended June 30, 2023.

Second Quarter 2023 Financial Highlights

Net sales of $208.5 million compared to $233.2 million in the prior year period
Gross margin of 32.8%, up 80 basis points versus the prior year period
GAAP net income per diluted share of $0.29 compared to $0.43 in the prior year period
Adjusted earnings per diluted share of $0.35 compared to $0.45 in the prior year period
Cash flow provided by operations was $22.9 million and free cash flow was $16.7 million

Myers Industries' President and CEO Mike McGaugh said "I am pleased with our business's ability to maintain gross margins and navigate a more complex operating environment during the second quarter while facing macro-economic and inflationary headwinds. Our self-help initiatives drove further margin expansion, allowing us to continue making capital investments in our plants and investments in our M&A and Commercial Excellence processes and capabilities. We are working to drive a more variable cost structure and we are well positioned to meet the demand when key markets recover. We also see strong demand for our agriculture and military products, and our e-commerce initiative has strong momentum. There are also very good dynamics for the tire market given the growth of electric vehicles, which bodes well for our Distribution segment, where we are refocusing our sales and sourcing structure, and integrating our Mohawk acquisition to enable us to better capture this market opportunity.

Recognizing softer demand in our RV and Marine end markets, we have taken meaningful cost reduction actions to mitigate bottom line impact. We adjusted operating costs to match production requirements and increased efficiencies, including deactivating one of our Roto Molding facilities. As we drive targeted cost containment initiatives in our businesses that serve the RV and Marine industries, we continue to evaluate consolidating opportunities and decreasing capacity where needed, while retaining an appropriate level of reserved capacity to activate when market conditions improve.

We are continuing to invest in our people and processes for future growth, while also working to better align our manufacturing and SG&A costs to match current market conditions. Given the current macro challenges, we have elected to lower our revenue guidance for the full year; however, due to our demonstrated ability to deliver operational improvements, price increases and self-help measures, we believe our earnings capability will be resilient and we are maintaining our adjusted EPS guidance.

We continue to maintain a strong balance sheet, supported by consistent free cash generation. We also continue to develop and evaluate a strong pipeline of potential acquisition opportunities, while exercising discipline in evaluating those opportunities, including walking away when the economics aren't right."

McGaugh concluded "We have the right strategy and the right team to continue to execute and further transform Myers into a high-growth, world class organization while delivering significant value to our stakeholders."

Second Quarter 2023 Financial Summary

	Quarter Ended June 30,
(Dollars in thousands, except per share data)	2023	2022	% Inc (Dec)
Net sales	$208,453	$233,156	(10.6)%
Gross profit	$68,410	$74,716	(8.4)%
Gross margin	32.8%	32.0%
Operating income	$16,142	$22,617	(28.6)%
Net income	$10,605	$15,831	(33.0)%
Net income per diluted share	$0.29	$0.43	(32.6)%

Adjusted operating income	$19,027	$23,618	(19.4)%
Adjusted net income	$12,928	$16,581	(22.0)%
Adjusted earnings per diluted share	$0.35	$0.45	(22.2)%
Adjusted EBITDA	$24,704	$28,860	(14.4)%

Net sales were $208.5 million, a decrease of $24.7 million, or 10.6%, compared with $233.2 million for the second quarter of 2022. The decrease was the result of lower sales in the Material Handling segment, partially offset by higher sales in the Distribution segment largely from incremental sales of $9.3 million from the Mohawk Rubber acquisition. On an organic basis, the contribution from higher pricing in the Distribution segment was more than offset by lower volumes in both segments.

Gross profit decreased $6.3 million, or 8.4% to $68.4 million, as the contribution from lower raw material costs and the Mohawk Rubber acquisition was not enough to offset lower volumes. Gross margin expanded 80 basis points to 32.8% compared with 32.0% for the second quarter of 2022. Selling, general and administrative expenses were flat for the second quarter of 2023 compared to the same period last year. SG&A as a percentage of sales increased to 25.1%, compared with 22.4% in the same period last year. After removing the adjusting items, SG&A was down year over year by $1.7 million. SG&A also included $1.3 million of consulting expense that was used to increase and strengthen Myers capabilities as the company moves into the Horizon-2 strategy. Net income per diluted share was $0.29, compared with $0.43 for the second quarter of 2022. Adjusted earnings per diluted share were $0.35, compared with $0.45 for the second quarter of 2022.

Second Quarter 2023 Segment Results

(Dollar amounts in the segment tables below are reported in millions)

Material Handling

	Net Sales	Op Income	Op Income Margin	Adj EBITDA	Adj EBITDA Margin
Q2 2023 Results	$143.3	$24.8	17.3%	$29.9	20.8%
Q2 2022 Results	$173.1	$28.0	16.2%	$32.5	18.8%
$ Increase (decrease) vs prior year	($29.8)	($3.2)		($2.7)
% Increase (decrease) vs prior year	(17.2)%	(11.4)%	+110 bps	(8.2)%	+200 bps
Items in this table may not recalculate due to rounding

Net sales for the Material Handling segment were $143.3 million, a decrease of $29.8 million, or 17.2%, compared with $173.1 million for the second quarter of 2022. Net sales decreased in the vehicle, industrial and consumer end markets, led by reduced demand for RV and marine products, as well as being impacted by the timing of food & beverage sales. Operating income decreased 11.4% to $24.8 million, compared with $28.0 million in the second quarter of 2022. Operating income margin improved to 17.3% compared with 16.2% for the second quarter of 2022. Adjusted EBITDA margin improved by 200 basis points, primarily attributed to self-help initiatives, partially dampened by a decrease in sales volume. Adjusted EBITDA decreased 8.2% to $29.9 million, compared with $32.5 million in the second quarter of 2022. Lower sales volume and pricing more than offset lower raw material costs and a favorable mix. SG&A expenses were lower year-over-year, primarily due to a decrease in legal fees and lower salaries.

Distribution

	Net Sales	Op Income	Op Income Margin	Adj EBITDA	Adj EBITDA Margin
Q2 2023 Results	$65.2	$3.4	5.2%	$4.7	7.2%
Q2 2022 Results	$60.1	$4.3	7.1%	$4.9	8.1%
$ Increase (decrease) vs prior year	$5.1	($0.9)		($0.2)
% Increase (decrease) vs prior year	8.5%	(20.4)%	-190 bps	(3.7)%	-90 bps
Items in this table may not recalculate due to rounding

Net sales for the Distribution segment were $65.2 million, an increase of $5.1 million, or 8.5%, compared with $60.1 million for the second quarter of 2022. Excluding the incremental $9.3 million of net sales from the Mohawk Rubber acquisition, organic net sales decreased 6.9%. Operating income decreased $0.9 million to $3.4 million, compared with $4.3 million for the second quarter of 2022. Adjusted EBITDA decreased 3.7% to $4.7 million, compared with $4.9 million in the second quarter of 2022. The decrease in operating income and adjusted EBITDA was primarily due to an increase in product costs and higher SG&A expenses. The increase in SG&A expenses was primarily the result of the Mohawk Rubber acquisition and higher salaries. The Distribution segment's operating income margin was 5.2% compared with 7.1% for the second quarter of 2022. The Distribution segment's adjusted EBITDA margin was 7.2%, compared with 8.1% for the second quarter of 2022. The Distribution Segment continues to integrate the Mohawk Rubber acquisition and is implementing pricing actions to counter cost inflation and improve margin.

Balance Sheet & Cash Flow

As of June 30, 2023, the Company's cash on hand totaled $30.7 million. Total debt as of June 30, 2023 was $88.2 million.

For the second quarter of 2023, cash flow provided by operations was $22.9 million and free cash flow was $16.7 million, compared with cash flow provided by operations of $27.0 million and free cash flow of $21.1 million for the second quarter of 2022. The decrease in cash flow was driven primarily by lower earnings. Capital expenditures for the second quarter of 2023 were $6.1 million, compared with $5.9 million for the second quarter of 2022.

2023 Outlook

Based on current exchange rates, market outlook, and business forecast, the Company revised its outlook for fiscal 2023, and currently forecasts:

Net sales decline in the mid single digit range
Net income per diluted share in the range of $1.41 to $1.73
Maintain adjusted earnings per diluted share range of $1.55 to $1.85
Capital expenditures to be in the range of $25 to $30 million
Effective tax rate to approximate 25%

We will continue to monitor market conditions and provide updates as we progress throughout the year.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Tuesday, August 3, 2023, at 8:30 a.m. EDT. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.netroadshow.com/events/login?show=95bfe4bb&confId=52763. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (US Local) 1-929-458-6194 or (US Toll-Free) 1-866-813-9403.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company's performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

About Myers Industries

Myers Industries, Inc. is a manufacturer of sustainable plastic and metal products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel, and under-vehicle service industry in the United States. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company's financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as "will," "believe," "anticipate," "expect," "estimate," "intend," "plan," or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company's actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements.

Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company's business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; impacts from the novel coronavirus ("COVID-19") pandemic; and other risks and uncertainties detailed from time to time in the Company's filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, "Risk Factors," in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.

M-INV

MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data)

	Quarter Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net sales	$	208,453		$	233,156		$	424,192		$	458,642
Cost of sales		140,043			158,440			284,717			311,998
Gross profit		68,410			74,716			139,475			146,644
Selling, general and administrative expenses		52,351			52,320			104,432			100,310
(Gain) loss on disposal of fixed assets		(83	)		(221	)		(56	)		(688	)
Operating income (loss)		16,142			22,617			35,099			47,022
Interest expense, net		1,790			1,211			3,436			2,358
Income (loss) before income taxes		14,352			21,406			31,663			44,664
Income tax expense (benefit)		3,747			5,575			8,082			11,496
Net income (loss)	$	10,605		$	15,831		$	23,581		$	33,168
Net income (loss) per common share:
Basic	$	0.29		$	0.43		$	0.64		$	0.91
Diluted	$	0.29		$	0.43		$	0.64		$	0.91
Weighted average common shares outstanding:
Basic		36,761,916			36,397,547			36,663,345			36,338,907
Diluted		36,892,177			36,623,495			36,874,084			36,577,192

MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Dollars in thousands)

	June 30, 2023		December 31, 2022
Assets
Current Assets
Cash	$	30,692	$	23,139
Accounts receivable, net		116,771		133,716
Inventories, net		98,238		93,351
Other current assets		10,919		7,001
Total Current Assets		256,620		257,207
Property, plant, & equipment, net		106,635		101,566
Right of use asset - operating leases		27,518		28,908
Deferred income taxes		129		129
Other assets		151,808		154,824
Total Assets	$	542,710	$	542,634
Liabilities & Shareholders' Equity
Current Liabilities
Accounts payable	$	81,744	$	73,536
Accrued expenses		50,349		57,531
Operating lease liability - short-term		5,691		6,177
Finance lease liability - short-term		534		518
Long-term debt - current portion		25,989		—
Total Current Liabilities		164,307		137,762
Long-term debt		52,986		93,962
Operating lease liability - long-term		21,982		22,786
Finance lease liability - long-term		8,645		8,919
Other liabilities		11,414		15,270
Deferred income taxes		8,954		7,508
Total Shareholders' Equity		274,422		256,427
Total Liabilities & Shareholders' Equity	$	542,710	$	542,634

MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Cash Flows From Operating Activities
Net income	$	10,605		$	15,831		$	23,581		$	33,168
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization		5,677			5,241			11,295			10,441
Amortization of deferred financing costs		78			121			156			242
Non-cash stock-based compensation expense		2,488			2,133			4,392			3,860
Gain on disposal of fixed assets		(83	)		(221	)		(56	)		(688	)
Other		3,319			177			2,492			698
Cash flows provided by (used for) working capital
Accounts receivable		11,915			10,694			15,096			(21,200	)
Inventories		4,048			(1,279	)		(4,730	)		(7,259	)
Prepaid expenses and other current assets		(5,048	)		(6,316	)		(3,828	)		(5,702	)
Accounts payable and accrued expenses		(10,147	)		626			240			20,739
Net cash provided by (used for) operating activities		22,852			27,007			48,638			34,299
Cash Flows From Investing Activities
Capital expenditures		(6,125	)		(5,883	)		(15,216	)		(10,943	)
Acquisition of business, net of cash acquired		—			(24,253	)		(160	)		(24,253	)
Proceeds from sale of property, plant, and equipment		109			423			142			1,499
Net cash provided by (used for) investing activities		(6,016	)		(29,713	)		(15,234	)		(33,697	)
Cash Flows From Financing Activities
Net borrowings (repayments) from revolving credit facility		(9,800	)		11,500			(15,000	)		13,000
Payments on finance lease		(129	)		(125	)		(258	)		(249	)
Cash dividends paid		(5,022	)		(4,995	)		(10,296	)		(9,934	)
Proceeds from issuance of common stock		437			1,367			1,569			1,838
Shares withheld for employee taxes on equity awards		(34	)		(3	)		(2,033	)		(347	)
Net cash provided by (used for) financing activities		(14,548	)		7,744			(26,018	)		4,308
Foreign exchange rate effect on cash		163			(180	)		167			(131	)
Net increase (decrease) in cash		2,451			4,858			7,553			4,779
Beginning Cash		28,241			17,576			23,139			17,655
Ending Cash	$	30,692		$	22,434		$	30,692		$	22,434

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)

	Quarter Ended June 30, 2023
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
Net sales	$	143,295		$	65,173		$	208,468		$	(15	)	$	208,453
Net income														10,605
Net income margin														5.1	%

Gross profit														68,410
Add: Restructuring expenses and other adjustments														180
Adjusted gross profit														68,590
Gross margin as adjusted														32.9	%

Operating income (loss)		24,828			3,398			28,226			(12,084	)		16,142
Operating income margin		17.3	%		5.2	%		13.5	%	n/a				7.7	%
Add: Executive severance costs		—			410			410			289			699
Add: Restructuring expenses and other adjustments		275			—			275			—			275
Add: Acquisition and integration costs		—			111			111			—			111
Add: Environmental reserves, net⁽²⁾		—			—			—			1,800			1,800
Adjusted operating income (loss)⁽¹⁾		25,103			3,919			29,022			(9,995	)		19,027
Adjusted operating income margin		17.5	%		6.0	%		13.9	%	n/a				9.1	%

Add: Depreciation and amortization		4,755			790			5,545			132			5,677
Adjusted EBITDA	$	29,858		$	4,709		$	34,567		$	(9,863	)	$	24,704
Adjusted EBITDA margin		20.8	%		7.2	%		16.6	%	n/a				11.9	%

(1) Includes gross profit adjustments of $180 and SG&A adjustments of $2,705
(2) Includes environmental charges of $1,900 net of probable insurance recoveries of $100

	Quarter Ended June 30, 2022
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
Net sales	$	173,090		$	60,075		$	233,165		$	(9	)	$	233,156
Net income														15,831
Net income margin														6.8	%

Gross profit														74,716
Add: Restructuring expenses and other adjustments														—
Adjusted gross profit														74,716
Gross margin as adjusted														32.0	%

Operating income (loss)		28,034			4,269			32,303			(9,686	)		22,617
Operating income margin		16.2	%		7.1	%		13.9	%	n/a				9.7	%
Add: Acquisition and integration costs		—			—			—			401			401
Add: Environmental reserves, net⁽²⁾		—			—			—			600			600
Adjusted operating income (loss)⁽¹⁾		28,034			4,269			32,303			(8,685	)		23,618
Adjusted operating income margin		16.2	%		7.1	%		13.9	%	n/a				10.1	%

Add: Depreciation and amortization		4,507			621			5,128			114			5,242
Adjusted EBITDA	$	32,541		$	4,890		$	37,431		$	(8,571	)	$	28,860
Adjusted EBITDA margin		18.8	%		8.1	%		16.1	%	n/a				12.4	%

(1) Includes SG&A adjustments of $1,001
(2) Includes environmental charges of $600 net of probable insurance recoveries of $0

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)

	Six Months Ended June 30, 2023
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
Net sales	$	295,857		$	128,358		$	424,215		$	(23	)	$	424,192
Net income														23,581
Net income margin														5.6	%

Gross profit														139,475
Add: Restructuring expenses and other adjustments														282
Adjusted gross profit														139,757
Gross margin as adjusted														32.9	%

Operating income (loss)		50,179			5,635			55,814			(20,715	)		35,099
Operating income margin		17.0	%		4.4	%		13.2	%	n/a				8.3	%
Add: Executive severance costs		—			410			410			289			699
Add: Restructuring expenses and other adjustments		696			179			875			10			885
Add: Acquisition and integration costs		—			220			220			126			346
Add: Environmental reserves, net⁽²⁾		—			—			—			2,300			2,300
Adjusted operating income (loss)⁽¹⁾		50,875			6,444			57,319			(17,990	)		39,329
Adjusted operating income margin		17.2	%		5.0	%		13.5	%	n/a				9.3	%
Add: Depreciation and amortization		9,354			1,663			11,017			278			11,295
Adjusted EBITDA	$	60,229		$	8,107		$	68,336		$	(17,712	)	$	50,624
Adjusted EBITDA margin		20.4	%		6.3	%		16.1	%	n/a				11.9	%

(1) Includes gross profit adjustments of $282 and SG&A adjustments of $3,948
(2) Includes environmental charges of $3,500 net of probable insurance recoveries of $1,200

	Six Months Ended June 30, 2022
	Material Handling			Distribution			Segment Total			Corporate & Other			Total
Net sales	$	349,726		$	108,936		$	458,662		$	(20	)	$	458,642
Net income														33,168
Net income margin														7.2	%

Gross profit														146,644
Add: Restructuring expenses and other adjustments														390
Adjusted gross profit														147,034
Gross margin as adjusted														32.1	%

Operating income (loss)		59,254			7,570			66,824			(19,802	)		47,022
Operating income margin		16.9	%		6.9	%		14.6	%	n/a				10.3	%
Add: Restructuring expenses and other adjustments		390			—			390			—			390
Add: Acquisition and integration costs		—			—			—			476			476
Add: Loss on sale of assets		261			—			261			—			261
Add: Environmental reserves, net⁽²⁾		—			—			—			1,300			1,300
Adjusted operating income (loss)⁽¹⁾		59,905			7,570			67,475			(18,026	)		49,449
Adjusted operating income margin		17.1	%		6.9	%		14.7	%	n/a				10.8	%
Add: Depreciation and amortization		9,023			1,179			10,202			239			10,441
Adjusted EBITDA	$	68,928		$	8,749		$	77,677		$	(17,787	)	$	59,890
Adjusted EBITDA margin		19.7	%		8.0	%		16.9	%	n/a				13.1	%

(1) Includes gross profit adjustments of $390 and SG&A adjustments of $2,037
(2) Includes environmental charges of $1,300 net of probable insurance recoveries of $0

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED) (Dollars in thousands, except per share data)

	Quarter Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Adjusted operating income (loss) reconciliation:
Operating income (loss)	$	16,142		$	22,617		$	35,099		$	47,022
Executive severance costs		699			—			699			—
Restructuring expenses and other adjustments		275			—			885			390
Acquisition and integration costs		111			401			346			476
Loss on sale of assets		—			—			—			261
Environmental reserves, net		1,800			600			2,300			1,300
Adjusted operating income (loss)	$	19,027		$	23,618		$	39,329		$	49,449

Adjusted EBITDA reconciliation:
Net income (loss)	$	10,605		$	15,831		$	23,581		$	33,168
Income tax expense (benefit)		3,747			5,575			8,082			11,496
Interest expense, net		1,790			1,211			3,436			2,358
Operating income (loss)		16,142			22,617			35,099			47,022
Depreciation and amortization		5,677			5,242			11,295			10,441
Executive severance costs		699			—			699			—
Restructuring expenses and other adjustments		275			—			885			390
Acquisition and integration costs		111			401			346			476
Loss on sale of assets		—			—			—			261
Environmental reserves, net		1,800			600			2,300			1,300
Adjusted EBITDA	$	24,704		$	28,860		$	50,624		$	59,890

Free cash flow reconciliation:
Net cash provided by (used for) operating activities	$	22,852		$	27,007		$	48,638		$	34,299
Capital expenditures		(6,125	)		(5,883	)		(15,216	)		(10,943	)
Free cash flow	$	16,727		$	21,124		$	33,422		$	23,356

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data)

	Quarter Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Adjusted net income (loss) reconciliation:
Net income (loss)	$	10,605		$	15,831		$	23,581		$	33,168
Income tax expense (benefit)		3,747			5,575			8,082			11,496
Income (loss) before income taxes		14,352			21,406			31,663			44,664
Executive severance costs		699			—			699			—
Restructuring expenses and other adjustments		275			—			885			390
Acquisition and integration costs		111			401			346			476
Loss on sale of assets		—			—			—			261
Environmental reserves, net		1,800			600			2,300			1,300
Adjusted income (loss) before income taxes		17,237			22,407			35,893			47,091
Income tax expense, as adjusted ⁽¹⁾		(4,309	)		(5,826	)		(8,973	)		(12,244	)
Adjusted net income (loss)	$	12,928		$	16,581		$	26,920		$	34,847

Adjusted earnings per diluted share reconciliation:
Net income (loss) per common diluted share	$	0.29		$	0.43		$	0.64		$	0.91
Executive severance costs		0.02			—			0.02			—
Restructuring expenses and other adjustments		0.00			—			0.02			0.01
Acquisition and integration costs		0.00			0.01			0.01			0.01
Loss on sale of assets		—			—			—			0.01
Environmental reserves, net		0.05			0.02			0.06			0.04
Adjusted effective income tax rate impact		(0.01	)		(0.01	)		(0.02	)		(0.03	)
Adjusted earnings per diluted share⁽²⁾	$	0.35		$	0.45		$	0.73		$	0.95

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2023 is 25% and in 2022 is 26%.
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period.

MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GUIDANCE FOR FULL YEAR ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED)

	Full Year 2023 Guidance
	Low			High
GAAP diluted net income per common share	$	1.41		$	1.73
Add: Executive severance costs		0.02			0.02
Add: Net restructuring expenses and other adjustments		0.10			0.07
Add: Acquisition and integration costs		0.01			0.01
Add: Environmental reserves, net		0.06			0.06
Less: Adjusted effective income tax rate impact ⁽¹⁾		(0.05	)		(0.04	)
Adjusted earnings per diluted share ⁽²⁾	$	1.55		$	1.85

(1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2023 is 25%.
(2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding.

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