Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☑ No ☐ .

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes☑ No ☐

Indicate by check mark whether the ~~Registrant~~registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ~~(Check one):~~

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑ .

The number of shares outstanding of ~~each of~~ the issuer’s ~~classes of~~ common stock, without par value, as of ~~the latest practicable date.~~April 29, 2022 was 36,343,873 shares.

Condensed Consolidated Statements of ~~Financial Position~~Shareholders’ Equity (Unaudited)

Condensed Consolidated ~~Statement~~Statements of ~~Shareholders’ Equity~~Cash Flows (Unaudited)

1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with ~~U.S.~~accounting principles generally accepted ~~accounting principles~~in the United States (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, ~~2016.~~2021.

~~Certain reclassifications have been made to prior year’s reported amounts in order to conform to the current year presentation.~~

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of ~~September 30, 2017,~~March 31, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the ~~three and nine months~~quarter ended ~~September 30, 2017~~March 31, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, ~~2017.~~2022.

~~Accounting Standards Adopted~~

~~In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09,~~ ~~Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting~~, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company adopted this ASU effective January 1, 2017 and elected to recognize forfeitures as they occur. The cash flow classification requirements of ASU 2016-09 were applied prospectively. The adoption of this ASU did not have a material impact on the Company’s results of operations, cash flows or financial position.

Accounting Standards Not Yet Adopted

In ~~March 2017,~~December 2021, the FASB issued ASU ~~2017-07,~~ ~~Compensation – Retirement Benefits~~2021-08, Business Combinations (Topic ~~715) – Improving the Presentation of Net Periodic Pension Cost~~805): Accounting for Contract Assets and ~~Net Periodic Postretirement Benefit Cost.~~Contract Liabilities from Contracts with Customers. This ASU ~~requires that an employer report~~is intended to improve the ~~service cost component~~accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the ~~same line item(s) as other compensation costs arising from services rendered by~~acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the ~~pertinent employees during the period.~~Company, this ASU is effective January 1, 2023. Early adoption is permitted. The ~~other components of net benefit cost~~amendments within this ASU are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The ASU also allows only the service cost componentapplied prospectively to be eligible for capitalization when applicable. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively,business combinations occurring on ~~and~~or after the effective ~~date, for the capitalization~~date. The effect of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company does not anticipate that adoption of this standard will have a material impact on its consolidated financial statements as the pension plan is frozen.

~~In January 2017, the FASB issued ASU 2017-04,~~ ~~Intangibles - Goodwill and Other (Topic 350)~~ - ~~Simplifying the Test for Goodwill Impairment.~~ This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The guidance allows for early adoption for impairment testing dates after January 1, 2017. While the Company has elected not to early adopt this guidance for fiscal year 2017 and will continue to evaluate the timing of adoption, it does not believe that the adoption ofadopting this guidance will ~~have a material impact on its consolidated financial statements.~~

~~MYERS INDUSTRIES, INC. AND SUBSIDIARIES~~

~~Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)~~

~~(Dollar amounts in thousands, except where otherwise indicated)~~

~~In November 2016, the FASB issued ASU 2016-18,~~ ~~Statement of Cash Flows (Topic 230)~~ - ~~Restricted Cash~~. This ASU requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts showndepend on the statement of cash flows. The ASU should be applied using a retrospective transition method to each period presented and is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. ~~To the extent there are changes in the Company’s restricted cash balances, adoption of this standard will impact the statement of cash flows.~~

~~In October 2016, the FASB issued ASU 2016-16,~~ ~~Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)~~. This ASU requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within ~~those annual periods. The Company does not anticipate that adoption of this standard will have a material impact on its consolidated financial statements.~~

~~In August 2016, the FASB issued ASU 2016-15,~~ ~~Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments~~, which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. The Company does not anticipate that adoption of this standard will have a significant impact on its consolidated financial statements.

~~In June 2016, the FASB issued ASU 2016-13,~~ ~~Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments~~, which introduces new guidance for the accounting for credit losses on instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2019 including interim periods within that reporting period, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases (Topic 842). Under ASU 2016-02, an entity will be required to recognize right-of-use~~contract assets and ~~lease~~ liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company beginning January 1, 2019 and requires a modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

~~In May 2014, the FASB issued ASU 2014-09,~~ ~~Revenue from Contracts~~associated with ~~Customers~~, to clarify the principles used to recognize revenue for all entities. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Additional disclosures will also be required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. The new guidance is effective January 1, 2018, with early adoption permitted for January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statements of Shareholders’ Equity. The Company plans to adopt the new guidance effective January 1, 2018 under the modified retrospective approach and has developed an implementation plan. As part of this plan, the Company has identified its revenue streams and substantially completed its contract review for each of these revenue streams to assess the impact of the new guidance on its consolidated financial statements. This assessment included the potential impact of whether revenue from certain product lines would be required to be recognized over time rather than at a point in time. Based on the reviews completed to date, the Company does not currently anticipate any material changes to the timing of revenue recognition from point in time, and will continue to evaluate this contract review through the date of adoption. The Company is currently designing and implementing changes to processes and controls, where necessary, to address the requirements of the new standard upon adoption. In addition, the Company is assessing what incremental disaggregated revenue disclosures will be required in the consolidated financial statements.future acquisitions.

~~MYERS INDUSTRIES, INC. AND SUBSIDIARIES~~

~~Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)~~

~~(Dollar amounts in thousands, except where otherwise indicated)~~

~~Translation of Foreign Currencies~~

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.

Fair Value Measurement

The Company follows guidance included in ~~the Accounting Standards Codification (“ASC”)~~ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied under U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:

~~Level 1:~~

~~Unadjusted quoted prices in active markets for identical assets or liabilities.~~

~~Level 2:~~

Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

~~Level 3:~~

~~Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.~~

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments ~~approximate~~approximates carrying value due to the nature and relative short maturity of these assets and liabilities.

The fair value of debt under the Company’s Loan Agreement, as defined in Note 11, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of ~~the~~any revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016,~~2021, the aggregate fair value of the Company's ~~$100.0 million~~outstanding fixed rate senior unsecured notes was estimated ~~at $101.0~~to be $39.3 million and ~~$98.0~~$41.0 million, respectively.

~~Factoring~~

The ~~Company's wholly-owned subsidiaries Plasticos Novel Do Nordeste S.A. and Plasticos Novel Do Parana S.A. (collectively, "Novel") entered into a factoring agreement to sell, without recourse, certain~~purchase price allocations associated with the July 30, 2021 acquisition of ~~their Brazilian Real-based trade accounts receivables to unrelated third party financial institutions~~Trilogy Plastics, Inc. (“Trilogy”), as ~~part of its working capital management.~~described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The sale of these receivables accelerated the collection of cash and reduced credit exposure. Under the terms of the factoring agreements, the Company retains no rights or interest and has no obligations with respect to the sold receivables. As such, the factoring of trade receivables under these agreements are accounted for as a sale. The Company accounts for its trade receivable factoring program as required under ASC 860, ~~Transfers and Servicing~~. During the nine months ended September 30, 2017, approximately $1.3 million of trade accounts receivables had been sold under the terms of the factoring agreement for cash proceeds of $1.2 million. During the nine months ended September 30, 2016, approximately $0.9 million of trade accounts receivables had been sold under the terms of the factoring agreement for cash proceeds of $0.8 million. The receivables sold pursuant to the factoring agreements have been recorded as a reduction of trade accounts receivable and as cash provided by operating activities in the accompanying Condensed Consolidated Statements of Cash Flows (Unaudited). The Company pays an administrative fee based on the dollarfair value of the receivables sold. Administrative fees related to the program for both the nine months ended September 30, 2017 and 2016 were approximately $0.1 million. These fees are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited).acquired intangible assets was determined using an income approach.

~~Revenue Recognition~~

The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title and risk of loss, which is generally at time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(~~Dollar amounts~~Dollars in thousands, except where otherwise indicated)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) are as follows:


	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		570			0			570
Net current-period other comprehensive income (loss)		570			0			570
Balance at March 31, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)


	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		411			0			411
Net current-period other comprehensive income (loss)		411			0			411
Balance at March 31, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)

Foreign
Currency

Defined Benefit
Pension Plans

Total

Balance at January 1, 2017

$
(32,342
)

$
(1,832
)

$
(34,174
)
Other comprehensive income before reclassifications

3,491

—

3,491

Net current-period other comprehensive income

3,491

—

3,491

Balance at September 30, 2017

$
(28,851
)

$
(1,832
)

$
(30,683
)

Allowance for Credit Losses

~~Cash and Cash Equivalents~~

Management has established certain requirements that customers must meet before credit is extended. The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of ~~these institutions~~customers is continually monitored and ~~believes that~~collateral is usually not required. The Company evaluates the ~~risk~~collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is ~~minimal.~~aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected.

The changes in the allowance for credit losses for the quarters ended March 31, 2022 and 2021 were as follows:


	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		31			58
Write-offs and other		(268	)		(132	)
Balance at March 31	$	1,936		$	2,261

2. ~~Impairment Charges~~Revenue Recognition

The Company’s revenue by major market is as follows:

~~During~~


	For the Quarter Ended March 31, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	31,924	$	—	$	—		$	31,924
Vehicle		47,777		—		—			47,777
Food and beverage		34,680		—		—			34,680
Industrial		62,255		—		(11	)		62,244
Auto aftermarket		—		48,861		—			48,861
Total net sales	$	176,636	$	48,861	$	(11	)	$	225,486

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)


	For the Quarter Ended March 31, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	25,395	$	—	$	—		$	25,395
Vehicle		42,192		—		—			42,192
Food and beverage		21,417		—		—			21,417
Industrial		40,889		—		(14	)		40,875
Auto aftermarket		—		44,550		—			44,550
Total net sales	$	129,893	$	44,550	$	(14	)	$	174,429

Revenue is recognized when obligations under the ~~second quarter~~terms of ~~2017, an underutilized building~~a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s ~~Scarborough, Ontario, Canada location,~~products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the ~~Material Handling Segment, was identified for closure~~normal course of business and ~~classified~~ as ~~held for sale as~~part of ~~June 30, 2017, in Other Assets~~the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited)~~. This building~~ related to revenue recognition include:


	March 31,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(1,062	)	$	(1,056	)	Accounts receivable
Right of return asset	$	372		$	361		Inventories, net
Customer deposits	$	(2,081	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(2,910	)	$	(3,378	)	Other current liabilities

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has ~~been recorded at its fair value, less estimated costs~~transferred to ~~sell,~~the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of ~~$3.2~~Sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.2 million ~~(based primarily on a third party offer considered to be a Level 2 input), which resulted~~and $2.5 million for the quarters ended March 31, 2022 and 2021, respectively, and in ~~an impairment charge~~ Cost of Sales were approximately ~~$0.5~~$1.6 million ~~recognized in the second quarter of 2017. No changes in the estimated fair value were recorded in the quarter ended September 30, 2017.~~

During the first quarter of 2016, the Company reviewed its long-lived assets, intangible assets and goodwill at Plasticos Novel do Nordeste S.A. (“Novel”), a reporting unit within the Material Handling Segment for ~~impairment. The testing for impairment was performed as a result~~each of the presence of impairment indictors resulting from the communication of a reduction in capital spending in the near-term from a significant customer in March 2016, which resulted in a significant reduction in Novel’s forecasted revenue and income.

The Company first conducted a review for impairment of indefinite-lived intangibles and other long-lived assets related to Novel, including amortizable intangible assets and fixed assets which indicated that the carrying amounts of such assets may not be recoverable and required an assessment of fair value of the assets for purposes of measuring an impairment charge. The estimated fair value of indefinite-lived intangibles was determined using a relief from royalty payments income approach and the other long-lived assets was determined, in part, using an analysis of projected cash flows, a market approach and a cost approach. These valuation methods use Level 3 inputs under the fair value hierarchy discussed in Note 1.

~~To test for potential impairment for goodwill, the Company performed an interim impairment test as of~~quarters ended March 31, 2016. The step one goodwill impairment test was performed using a discounted cash flow (“DCF”) valuation model. The significant assumptions in the DCF model are the annual revenue growth rate, the annual operating income margin2022 and the discount rate used to determine the present value of the cash flow projections. The discount rate was based on the estimated weighted average cost of capital as of the testing date for market participants in the industry in which the Novel reporting unit operates. 2021.

Based on the ~~estimated fair value generated by~~short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the ~~DCF model, the Novel reporting unit’s fair value did not exceed its carrying value as of March 31, 2016 and therefore a step two analysis was required to be performed. The decline in fair value~~context of the ~~reporting unit resulted primarily from lower projected operating results~~contract, are recognized as expense as incurred.

3. Acquisitions

Trilogy Plastics

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and ~~cash flows than those utilized~~assemblies, which is included in the Materials Handling Segment. The Trilogy acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $34.5 million, including a working capital adjustment of $0.3 million that was paid in November 2021. The Company funded the acquisition with proceeds from the 2015 annual impairment test, directly related to the triggering event outlined above. During the first quarter of 2016, a step two analysis was performed to allocate estimated fair value to assets and liabilitiesLoan Agreement described in order to estimate an implied value of goodwill. As a result of these impairment reviews, the Company concluded that the goodwill, intangibles and other long-lived assets related to Novel were impaired and recorded a non-cash impairment charge of $8.5 million, which was reported in Impairment Charges in the Condensed Consolidated Statements of Operations (Unaudited) in the first half of 2016. Note 11.

108

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(~~Dollar amounts~~Dollars in thousands, except where otherwise indicated)

The acquisition of Trilogy was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment. There were no measurement period adjustments recorded in the quarter ended March 31, 2022. The purchase accounting will be finalized within one year from the acquisition date.


Assets acquired:
Accounts receivable	$	3,929
Inventories		2,752
Prepaid expenses		63
Other assets - long term		93
Property, plant and equipment		4,903
Right of use asset - operating leases		8,685
Intangible assets		14,333
Goodwill		10,003
Assets acquired	$	44,761

Liabilities assumed:
Accounts payable	$	765
Accrued expenses		777
Operating lease liability - short term		576
Operating lease liability - long term		8,108
Total liabilities assumed		10,226

Net acquisition cost	$	34,535

The goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized, and the Company expects that the goodwill recognized for the acquisition will be deductible for tax purposes.

The intangible assets included above consist of the following:


	Fair Value		Weighted Average Estimated Useful Life
Customer relationships	$	12,463	18.0 years
Trade name		1,870	10.0 years
Total amortizable intangible assets	$	14,333

Elkhart Plastics

On November 10, 2020, the Company acquired the assets of Elkhart Plastics, Inc. ("Elkhart Plastics"), a manufacturer of engineered products for the RV, marine, agricultural, construction, truck and other industries, which is included in the Company’s Material Handling Segment. The Elkhart Plastics acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $63.8 million, including a working capital adjustment of $1.2 million, which was settled in 2021. The Company funded the acquisition using available cash.

4. Restructuring

In March 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”), a rotational molding business within the Material Handling Segment. The Company is consolidating certain manufacturing operations into a new facility in Bristol, Indiana (the “Ameri-Kart Plan”). In December 2019, as amended in March 2021, Ameri-Kart entered into a lease agreement for a newly constructed manufacturing and distribution facility in Bristol, Indiana. The building became substantially complete in March 2021 as defined in the lease agreement, and the 15-year finance lease of the new Bristol facility commenced. In connection with the lease agreement, Ameri-Kart agreed to sell its original Bristol facility and lease it back for a period of 5 years. During the second quarter of ~~2016,~~2021, the ~~Company recorded impairment charges of $1.3 million primarily related to long-lived assets associated with the exit of a non-strategic product line in the Material Handling Segment.~~

~~3. Discontinued Operations~~

On February 17, 2015, the Company sold its Lawn and Garden business to an entity controlled by Wingate Partners V, L.P., a private equity firm, for $110.0 million, subject to a working capital adjustment. The termssale of the ~~agreement include a $90.0~~original facility for net proceeds of $2.8 million ~~cash payment, promissory notes totaling $20.0 million that mature in August 2020 with a 6% interest rate, and approximately $8.6 million placed in escrow that~~ was due to be settled by August 2016, but has been extended until indemnification claims are resolved, as described in Note 10. The fair market value of the notes at the date of the sale was $17.8 million. The carrying value of the notes as of September 30, 2017 was $18.6 million,completed, which represents the fair value at the date of sale plus accretion and is included in Notes Receivable in the accompanying Condensed Consolidated Statements of Financial Position (Unaudited). The fair value of the notes receivable was calculated using Level 2 inputs as defined in Note 1. The final working capital adjustment resulted in a ~~cash payment~~gain of $1.0 million, and the lease back commenced. The Company has taken possession of the new Bristol facility and a portion of it is in service; however, construction remains in process as of March 31, 2022 to complete it for its full intended use, including moving equipment into the ~~buyer of approximately $4.0 million~~new Bristol facility from other locations, such as from the former manufacturing facility in ~~the first half of 2016.~~Cassopolis, Michigan that was closed at December 31, 2021.

~~On March 9, 2017, the Company announced a restructuring plan (the “Plan”)~~The Ameri-Kart Plan is expected to ~~improve the Company’s organizational structure~~be substantially completed in 2022 and ~~operational efficiency within the Material Handling Segment, which related primarily to anticipated facility shutdowns and associated activities. Total~~total restructuring costs expected to be incurred are approximately ~~$7.9~~$1.8 million, ~~which includes employee severance and other employee-related costs of approximately $3.2 million, $2.6 million~~primarily related to equipment relocation and facility shut down costs, ~~and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.1 million.~~which due to their nature will be expensed when incurred. The Company ~~expects to incur approximately $0.8 million during the remainder of 2017 under the Plan, as all remaining actions under the Plan are expected to be substantially completed by the end of the year.~~

~~During the three and nine months ended September 30, 2017, the Company~~ incurred restructuring charges of $1.0 million and $5.2 million, respectively, related to closing a manufacturing plant in Bluffton, Indiana. In the third quarter of 2017, the Bluffton facility and certain related equipment, previously classified as held for sale, were sold for approximately $6.0 million, which resulted in a gain of $2.6 million. Additional gains of $0.2 million and $1.5 million for the three and nine months ended September 30, 2017, respectively, were recognized on other asset dispositions in connection with closing this plant.

In the second quarter of 2017, the Company finalized the specific actions to be taken under the Plan to reduce headcount in its Scarborough, Ontario, Canada location. These actions resulted in the recognition of $0.9 million and $1.6 million of severance and related costs for the three and nine months ended September 30, 2017, respectively.

~~During the three and nine months ended September 30, 2017, the Company recognized $0.2 million and $0.3~~$0.4 million of restructuring charges classified as Cost of sales during the quarter ended March 31, 2022 and $0.3 million related to ~~the planned closure~~loss on disposal of ~~a manufacturing plant in Sandusky, Ohio.~~

fixed assets. The accrual for unpaid restructuring expenses at March 31, 2022 and December 31, 2021 was $0.6 million and $0.5 million, respectively. NaN restructuring charges ~~noted above are presented in~~were incurred during the ~~Condensed Consolidated Statement of Operations (Unaudited) as follows:~~

For the Three Months Ended September 30, 2017

For the Nine Months Ended September 30, 2017

Cost of sales

$
1,908

$
6,968

Selling, general and administrative expenses

164

164

$
2,072

$
7,132

~~Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)~~

~~The table below summarizes restructuring activity for the nine months ended September 30, 2017:~~

In addition to the restructuring costs noted above, the Company has also incurred other associated costs of the Plan of $0.3 million and $1.0 million for the three and nine months ended September 30, 2017, respectively, which are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited), and are primarily related to third party consulting costs. Additional estimated costs of $0.2 million are expected to be incurred throughout the remainder of 2017.

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 4030 percent of ~~our~~ inventories are valued using the LIFO method of determining cost. All other inventories are valued atusing the FIFO method of determining cost. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations must ~~necessarily~~ be based on management’s estimates of expected year-end inventory levels and costs. Because these ~~are based on estimates, interim results~~calculations are subject to ~~change in~~many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. ~~In the current quarter, one inventory pool had an increase in commodity costs that is expected~~NaN adjustment to ~~hold through year-end, and therefore, an adjustment of $0.4 million was made to increase~~ the LIFO reserve ~~and cost of sales~~was recorded for the ~~three months~~quarters ended ~~September 30, 2017. No adjustment was recorded during prior interim reporting periods as interim results in those periods were immaterial.~~March 31, 2022 or 2021.

The balance in ~~other current liabilities~~Other Current Liabilities is comprised of the following:


	March 31,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,991	$	5,194
Dividends payable		5,450		5,441
Accrued litigation, claims and professional fees		1,053		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,108		6,787
	$	20,031	$	19,628

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

September 30,

December 31,

2017

2016

Deposits and amounts due to customers

$
4,048

$
2,688

Dividends payable

4,455

4,260

Accrued litigation and professional fees

606

452

Current portion of environmental reserves

1,022

605

Other accrued expenses

4,362

5,078

$
14,493

$
13,083

The balance in Other Liabilities (long-term) is comprised of the following:


	March 31,		December 31,
	2022		2021
Environmental reserves	$	8,951	$	8,298
Supplemental executive retirement plan liability		1,103		1,176
Pension liability		390		421
Other long-term liabilities		3,523		3,191
	$	13,967	$	13,086

The change in goodwill for the ~~nine months~~quarter ended ~~September 30, 2017~~March 31, 2022 was as follows:

Distribution

Material
Handling

Total

January 1, 2017

$
505

$
58,714

$
59,219

Foreign currency translation

—

829

829

September 30, 2017

$
505

$
59,543

$
60,048


	Distribution		Material Handling		Total
January 1, 2022	$	7,648	$	81,130	$	88,778
Foreign currency translation		0		173		173
March 31, 2022	$	7,648	$	81,303	$	88,951

Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, non-competition agreements and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated

~~MYERS INDUSTRIES, INC. AND SUBSIDIARIES~~

~~Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)~~

~~(Dollar amounts in thousands, except where otherwise indicated)~~

useful lives. ~~The Company has indefinite-lived~~Indefinite-lived trade names ~~which~~ had a carrying value of ~~$10.9~~$9.8 million at both ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016.~~

~~See~~2021. Refer to Note 23 for ~~discussion of goodwill, trade names and other long-lived asset impairment charges~~the intangible assets acquired through the Trilogy acquisition in ~~the first half of 2016.~~July 2021.

8.8. Net Income ~~(Loss)~~ per Common Share

Net income ~~(loss)~~ per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,				For the Quarter Ended March 31,
	2017		2016		2017		2016		2022		2021
Weighted average common shares outstanding basic		30,266,838		29,849,005		30,149,818		29,682,798		36,280,268		35,993,331
Dilutive effect of stock options and restricted stock		385,105		226,473		374,343		266,913		230,766		297,500
Weighted average common shares outstanding diluted		30,651,943		30,075,478		30,524,161		29,949,711		36,511,034		36,290,831

Options to purchase ~~256,600 and 261,100~~245,608 shares of common stock that were outstanding for the ~~three and nine months~~quarter ended ~~September 30, 2017, respectively, and~~ ~~569,050 for the three and nine months ended September 30, 2016,~~ March 31, 2022 were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of common shares, and were therefore anti-dilutive. There were 0 options to purchase shares of common stock excluded from the computation of diluted earnings for the quarter ended March 31, 2021.

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

9. Stock Compensation

~~Subject to shareholder approval, which~~The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was ~~received on April 26, 2017,~~adopted by the Board of Directors ~~approved the Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”)~~ on March ~~2, 2017.~~4, 2021, amended by the Board of Directors on April 20, 2021, and approved by shareholders in the annual shareholder meeting on April 29, 2021. The ~~2017~~2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to ~~5,126,950 shares of~~2,000,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. ~~Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant.~~

In March 2017, the Company granted 397,759 stock options with a weighted average exercise price of $14.30 and a weighted average fair value of $4.47. The fair value of options granted is estimated using a binomial lattice option pricing model. Also in March 2017, the Company granted 87,887 and 140,746 time-based and performance-based restricted stock units, respectively, with a weighted average fair value of $14.30. There were no stock-based awards granted in the second or third quarters of 2017.

Stock compensation expense was approximately ~~$1.1~~$1.7 million and ~~$0.7~~$1.2 million for the ~~three months~~quarters ended ~~September 30, 2017~~March 31, 2022 and ~~2016, respectively, and $2.9 million and $2.8 million for the nine months ended September 30, 2017 and 2016,~~2021, respectively. These expenses are included in Selling, General and Administrative ~~expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited).~~ expenses. Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at ~~September 30, 2017~~March 31, 2022 was approximately ~~$6.5~~$10.8 million, which will be recognized over the next three years, as such compensation is earned. Outstanding options expire, if unexercised, ten years from the date of grant.

10. Contingencies

The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary.

Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.

New Idria Mercury Mine

In September 2015, the U.S. Environmental Protection Agency (“EPA”) ~~formally~~ informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”). New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries, Inc. in 1987. As a result of the EPA Notice Letter, Buckhorn and the

~~MYERS INDUSTRIES, INC. AND SUBSIDIARIES~~

~~Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)~~

~~(Dollar amounts in thousands, except where otherwise indicated)~~

Company ~~are~~ engaged in negotiations with the EPA with respect to a draft Administrative Order of Consent (“AOC”) proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives.

During the fourth quarter of 2018, Buckhorn and the EPA finalized the AOC and related Statement of Work (“SOW”) with regards to the New Idria Mine. The AOC is effective as of November 27, 2018, the date that it was executed by the EPA. The AOC and accompanying SOW document the terms, conditions and procedures for Buckhorn’s performance of the RI/FS. In addition, the AOC required $2 million of financial assurance to be provided to the EPA to secure Buckhorn's performance during the estimated life of the RI/FS. In January 2019, a letter of credit was provided to satisfy this assurance requirement. The AOC also includes provisions for payment of the EPA’s costs of oversight of the RI/FS. A draft work plan for the RI/FS, in accordance with the AOC and related SOW, was submitted to the EPA for review and approval in July 2019. Upon preparation of the draft work plan for the RI/FS, Buckhorn received preliminary estimates from its environmental consultants for the cost of the execution of the work plan. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur in 2022. Buckhorn believes it has insurance coverage that applies to the New Idria Mine ~~is located near Hollister, California~~ and ~~was added~~thus may be able to the Superfund National Priorities List by the EPA in October 2011, at which time the Company recognized expense of $1.9 million related to performing the RI/FS. In the second quarter of 2016, the Company, based on discussions with the EPA, determined that the RI/FS would begin in 2017 and therefore obtained updated estimated costs to perform the RI/FS. Asrecover a ~~result~~portion of the ~~updated~~ estimated ~~costs, the Company recorded additional expense~~costs; however, as of ~~$1.0 million~~March 31, 2022, Buckhorn has not recognized potential recovery in ~~the second quarter of 2016. In the second quarter of 2017, the Company, based on the status of~~ its discussions with the EPA, determined that field work on the RI/FS will likely begin in 2018 with no changes to the cost estimates to perform the RI/FS. In the third quarter of 2017, the Company recorded an additional reserve of $0.3 million for this project, as a result of additional professional fees and other project costs expected to be incurred as part of the implementation of the AOC and site preparation and stabilization, in advance of starting the RI/FS field work in 2018. condensed consolidated financial statements.

As part of the Notice Letter in 2015, the EPA also made a claim for approximately ~~$1.6~~$1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine ~~since 1993. While~~from 1993 through February 2014. In December 2020, the ~~Company~~EPA updated its claim to include past costs incurred from March 2014 through June 2020, which has been further revised in March 2022 to a total claim of $2.0 million. Buckhorn is ~~challenging these past cost claims,~~continuing to evaluate and negotiate this claim with the EPA.

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in ~~2015 the Company recognized expense of $1.3 million related to the portion of these costs alleged to have been incurred after the site~~thousands, except where otherwise indicated)

Since October 2011, when New Idria was added to the Superfund ~~list~~National Priorities List by the EPA, Buckhorn has recognized $11.8 million of costs, of which approximately $2.9 million has been paid through March 31, 2022, net of minor insurance recoveries. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. Expenses of $0.7 million were recorded related to the New Idria Mine in ~~2011.~~

the quarter ended March 31, 2022, primarily related to updated estimates of the cost to perform the RI/FS. No expenses were recorded during the quarter ended March 31, 2021. As of ~~September 30, 2017, the Company~~March 31, 2022, Buckhorn has a total reserve of ~~$2.7~~$8.9 million related to the New Idria Mine, of which ~~$0.7~~$1.1 million is classified in Other Current Liabilities and ~~$2.0~~$7.8 million ~~is classified~~ in Other Liabilities ~~on the Condensed Consolidated Statements of Financial Position (Unaudited)~~ (long-term).

~~As negotiations with the EPA proceed it~~It is possible that adjustments to the aforementioned reserves will be necessary ~~to reflect~~as new ~~information.~~information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of ~~the Company’s~~Buckhorn’s liability are based on current facts, laws, regulations and technology. Estimates of ~~the Company’s~~Buckhorn’s environmental liabilities are further subject to uncertainties regarding ~~the negotiations with EPA,~~ the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the ~~remediation, and the availability of insurance coverage for these expenses.~~remediation.

At this time, ~~we have~~Buckhorn has not accrued for remediation costs in connection with this site ~~as we are~~because it is unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined.

New Almaden Mine

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area. Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the ~~project, originally estimated to be approximately $1.6 million. As a result,~~project. The latest estimates received in ~~2005, the Company recognized expense of~~ ~~$0.8 million~~ ~~representing its share of the initial estimated project costs, of which approximately~~ ~~$0.5~~ ~~million has been paid to date. In April~~ 2016 ~~the Company was notified by~~from the County ~~that the original cost estimate may no longer be appropriate due to~~provided for an expanded scope and ~~increased costs of construction and provided a~~ revised the estimate of costs for implementing the project to between $3.3 million and ~~$4.4~~$4.4 million. ~~The Company completed a detailed review of the support provided by the County for the revised estimate, and as a result, recognized additional expense of~~ ~~$1.2~~ ~~million~~NaN costs were incurred related to New Almaden in the ~~second and third~~ quarters ~~of 2016.~~ended March 31, 2022 or 2021. As of ~~September 30, 2017,~~March 31, 2022, the Company has a total reserve of $1.5 million related to the New Almaden Mine, of which ~~$0.3~~$0.3 million is classified in Other Current Liabilities and ~~$1.2~~$1.2 million ~~is classified~~ in Other Liabilities ~~on the Condensed Consolidated Statements of Financial Position (Unaudited)~~ (long-term).

The project has not yet been implemented though significant work on design and planning has been performed. ~~Field work~~The Company is currently awaiting notice from Santa Clara County on the ~~project is~~ expected timing of fieldwork to ~~commence in 2018.~~commence. As work on the project occurs, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.

14Patent Infringement

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC in the United States District Court for the District of Kansas asserting infringement of two patents, breach of contract, and trade dress claims in relation to plastic gasoline containers Scepter manufactures and sells in the United States. Scepter Canada, Inc. was later added in a second amended complaint. A claim construction hearing was held on May 13, 2021 and the District Court held on June 23, 2021, that the claims of the patents were definite. On December 28, 2019, Scepter Canada, Inc. had filed petitions with the District Court for inter partes review (“IPR”) of the two patents asserted by No Spill, Inc. The U.S. Patent & Trademark Office (“USPTO”) instituted one IPR and denied the other. With respect to the instituted IPR, the USPTO’s Patent Trial and Appeal Board issued a final decision on July 2, 2021, finding the claims of the patent valid, which does not affect Scepter's primary defenses in the matter.

On June 28, 2021, the Scepter companies filed with the District Court a motion for leave to add new parties and assert counterclaims alleging antitrust related violations of certain provisions of the Sherman Act and Clayton Act. The Court granted the motion and the Scepter companies filed a Second Amended Complaint on October 1, 2021. On November 15, 2021, No Spill and the new counterclaim defendants filed a Motion to Dismiss the counterclaims, which was granted by the District Court on April 6, 2022. On January 6, 2022, the District Court bifurcated the patent infringement and invalidity issues from the antitrust and other issues in the case. The trial on patent infringement and invalidity is scheduled for March 2023.

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(~~Dollar amounts~~Dollars in thousands, except where otherwise indicated)

~~Lawn and Garden Indemnification Claim~~

~~In connection with the sale of the Lawn and Garden business, as described~~The Scepter companies intend to continue defending themselves vigorously in Note 3, the Company received a Notice of Indemnification Claims in April 2015, and a Second Notice of Indemnification Claims in July 2016 (collectively, the “Claims”), alleging breaches of certain representations and warranties under the agreement resulting in losses in the amount of approximately $10 million. As described in Note 3, approximately $8.6 million of the sale proceeds were placed in escrow and duethis matter. Based on available information, an unfavorable outcome is not considered to be ~~settled in August 2016, but have been extended until the Claims are resolved. The Company believes these Claims are without merit and intends to vigorously defend its position.~~

~~When a loss arising from these matters is~~ probable, and ~~can~~any possible losses from an adverse outcome are not reasonably be estimated, we record the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence than another. As additional information becomes available, any potential liability related to these matters will be assessed and the estimates will be revised, if necessary.estimable.

Based on current available information, management believes that the ultimate outcome of these matters will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.

11. Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

September 30,

December 31,

2017

2016

Loan Agreement

$
59,795

$
90,686

4.67% Senior Unsecured Notes due 2021

40,000

40,000

5.25% Senior Unsecured Notes due 2024

11,000

11,000

5.30% Senior Unsecured Notes due 2024

29,000

29,000

5.45% Senior Unsecured Notes due 2026

20,000

20,000

159,795

190,686

Less unamortized deferred financing costs

1,785

1,164

$
158,010

$
189,522


	March 31,		December 31,
	2022		2021
Loan Agreement	$	54,500	$	53,000
5.25% Senior Unsecured Notes due January 15, 2024		11,000		11,000
5.30% Senior Unsecured Notes due January 15, 2024		15,000		15,000
5.45% Senior Unsecured Notes due January 15, 2026		12,000		12,000
		92,500		91,000
Less unamortized deferred financing costs		50		55
		92,450		90,945
Less current portion long-term debt		0		0
Long-term debt	$	92,450	$	90,945

In March ~~2017,~~2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement ~~(the~~(collectively, the “Loan Agreement”). dated March 2017. The ~~Loan Agreement replaced~~Sixth Amendment increased the ~~pre-existing $300 million~~ senior revolving credit ~~facility with a $200~~facility’s borrowing limit to $250 million ~~facility and~~from $200 million, extended the ~~term~~maturity date to March 2024 from ~~December 2018 to~~ March ~~2022. In addition, the Loan Agreement provides for a maximum Leverage Ratio of 3.75 for the first~~2022, and ~~second quarters of 2017, stepping down to 3.5 in the third quarter of 2017, and 3.25 thereafter.~~

~~Under the terms~~increased flexibility of the ~~Loan Agreement,~~financial and other covenants and provisions. Amounts borrowed under the credit facility are secured by pledges of stock of certain of the Company’s foreign subsidiaries and guaranties of certain of its domestic subsidiaries. In connection with the Sixth Amendment, the Company ~~may borrow up to $200.0~~incurred $1.1 million ~~reduced for letters~~ of ~~credit issued.~~ deferred financing fees, which are included in Other Assets (long-term).

As of ~~September 30, 2017,~~March 31, 2022, the Company had ~~$135.8~~$191.8 million available under the Loan Agreement. The Company had ~~$4.4~~$3.7 million of letters of credit issued related to insurance and other ~~financing~~ contracts requiring financial assurance in the ordinary course of ~~business at September 30, 2017.~~business. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement.

The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11.0 million to $15.0 million, with interest rates ranging from 5.25% to 5.45%, payable semiannually, and maturing between January 2024 and January 2026. At March 31, 2022, $38.0 million of the Notes were outstanding. In January 2021, the Company repaid a $40.0 million note upon maturity with a combination of cash and proceeds under the Loan Agreement.

The weighted average interest rate on borrowings under ~~our loan agreements were 5.18%~~the Company’s long-term debt was 4.12% and ~~4.65%~~5.33% for the ~~three months~~quarters ended ~~September 30, 2017~~March 31, 2022 and ~~2016, respectively, and 5.05% and 4.61% for the nine months ended September 30, 2017 and 2016,~~2021, respectively, which includes a quarterly facility fee on the used and unused ~~portion.~~portion, as well as amortization of deferred financing costs.

~~In September 2017,~~As of March 31, 2022, the Company ~~made an offer to~~was in compliance with all ~~holders~~of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the ~~$100 million Senior Unsecured Notes (“Notes”) to purchase all or~~Company’s debt are a ~~portion of the Notes prior to their maturity dates. In October 2017, one note holder accepted the offer~~leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and ~~elected to tender $22 million in Notes. The Company purchased the Notes from the holder on October 31, 2017~~amortization, as adjusted) and ~~a loss on extinguishment of debt of approximately $1.9 million was recorded during the fourth quarter of 2017.~~

~~MYERS INDUSTRIES, INC. AND SUBSIDIARIES~~

~~Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)~~

~~(Dollar amounts in thousands, except where otherwise indicated)~~

~~12. Retirement Plans~~

~~The Company~~an interest coverage ratio (defined as earnings before interest, taxes, depreciation and ~~certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan,~~ ~~The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, provides benefits primarily based upon a fixed amount for each year of service. The plan was frozen in 2007, and thus benefits for service were no longer accumulated after this date.~~

~~Net periodic pension cost is~~amortization, as ~~follows:~~adjusted, divided by interest expense).

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2017

2016

2017

2016

Interest cost

$
63

$
68

$
189

$
204

Expected return on assets

(74
)

(80
)

(222
)

(240
)
Amortization of net loss

24

20

72

61

Net periodic pension cost

$
13

$
8

$
39

$
25

Company contributions

$
—

$
—

$
—

$
—

~~The Company does not expect to make a contribution to the plan in 2017.~~

~~13.~~12. Income Taxes

The Company’s effective tax rate was ~~38.5% and 42.0%~~25.5% for the ~~three and nine months~~quarter ended ~~September 30, 2017, respectively,~~March 31, 2022 compared to ~~56.3% and 69.8%~~26.0% for the ~~three and nine months~~quarter ended ~~September 30, 2016, respectively.~~March 31, 2021. The effective income tax rate for ~~the first nine months of 2017 and 2016~~both periods was different than the Company’s statutory rate, primarily due to ~~losses in jurisdictions where the tax benefits are not recognized.~~ state taxes and non-deductible expenses.

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was ~~$0.3 million and $0.5~~$0.8 million at ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016, respectively.~~2021.

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of ~~September 30, 2017,~~March 31, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before ~~2014.~~2015. The Company’s 2017 U.S. Federal tax return is currently under audit by the Internal Revenue Service (“IRS”). The IRS began the examination in 2019 and there have been no changes resulting from this audit as of March 31, 2022. The Company is subject to state and local examinations for tax years of ~~2012~~2017 through ~~2016.~~2020. In addition, the Company is subject to non-U.S. income tax examinations for tax years of ~~2012~~2016 through ~~2016.~~2020.

13. Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to fourteen years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in right ofuse asset – operating leases (“ROU assets”), operating lease liability – short term, and operating lease liability – long term and finance leases are included property, plant and equipment, finance lease liability – short term, and finance lease liability – long term in the Condensed Consolidated Statement of Financial Position (Unaudited).

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include:


		March 31,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	27,870	$	29,285
Finance lease assets	Property, plant and equipment, net		9,592		9,765
Total lease assets		$	37,462	$	39,050

Liabilities:
Current	Operating lease liability - short-term	$	5,236	$	5,341
Long-term	Operating lease liability - long-term		22,548		23,815
Total operating lease liabilities		$	27,784	$	29,156
Current	Finance lease liability - short-term	$	504	$	500
Long-term	Finance lease liability - long-term		9,308		9,437
Total finance lease liabilities			9,812		9,937
Total lease liabilities		$	37,596	$	39,093

The components of lease expense include:


		For the Quarter Ended March 31,
Lease Cost	Classification	2022		2021
Operating lease cost (1)	Cost of sales	$	1,356	$	1,070
Operating lease cost (1)	Selling, general and administrative expenses		611		551
Finance lease cost
Amortization expense	Cost of sales		172		57
Interest expense on lease liabilities	Interest expense, net		86		30
Total lease cost		$	2,225	$	1,708

(1)

Includes short-term leases and variable lease costs, which are immaterial

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(~~Dollar amounts~~Dollars in thousands, except where otherwise indicated)

Supplemental cash flow information related to leases was as follows:


	For the Quarter Ended March 31,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,610	$	1,252
Operating cash flows from finance leases	$	86	$	30
Financing cash flows from finance leases	$	124	$	40
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	0	$	3,523
Finance leases	$	0	$	10,339


Lease Term and Discount Rate	March 31, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		7.16			7.27
Finance leases		13.93			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%


Maturity of Lease Liabilities - As of March 31, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	4,623		$	630		$	5,253
2023		5,581			840			6,421
2024		4,127			861			4,988
2025		3,334			865			4,199
2026		2,848			865			3,713
After 2026		10,780			8,408			19,188
Total lease payments		31,293			12,469			43,762
Less: interest		(3,509	)		(2,657	)		(6,166	)
Present value of lease liabilities	$	27,784		$	9,812		$	37,596

(1)

Represents amounts due in 2022 after March 31, 2022

The Company has operating leases for 4 facilities within the Material Handling Segment that are with a related party. Total right of use assets related to these related party leases were $3.2 million and $3.6 million at March 31, 2022 and December 31, 2021, respectively. Total operating lease liabilities related to these related party leases were $3.0 million and $3.4 million at March 31, 2022 and December 31, 2021, respectively. Total lease expense from these related party leases was $0.4 million in each of the quarters ended March 31, 2022 and March 31, 2021.

14. ~~Industry~~ Segments

~~Using the criteria of ASC 280,~~ ~~Segment Reporting, the~~The Company manages its business under ~~two~~2 operating segments, Material Handling and Distribution, consistent with the manner in which ~~our~~the Chief Operating Decision Maker (“CODM”) evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. ~~The Company accounts for intersegment~~Intersegment sales are recorded with a reasonable margin and ~~transfers at cost plus a specified mark-up.~~are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment’s products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and ~~rotationally-molded plastic~~ tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. This segment conducts its primary operations in the United States ~~but also operates in Brazil~~ and Canada. Markets served ~~encompass various niches of~~include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, ~~and~~among others. Products are sold both directly to end-users and through distributors. The acquisitions of Trilogy and Elkhart Plastics, described in Note 3, are included in the Material Handling Segment.

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive ~~undervehicle~~under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and ~~four~~five regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire ~~retreaders,~~re-treaders, and government agencies.

Total sales from foreign business units were approximately $12.7 million and $11.0 million for the quarters ended March 31, 2022 and 2021, respectively.

Summarized segment detail for the ~~three~~quarters ended March 31, 2022 and ~~nine months ended September 30, 2017 and 2016~~2021 are presented in the following table:


	For the Quarter Ended March 31,
	2022			2021
Net Sales
Material Handling	$	176,636		$	129,893
Distribution		48,861			44,550
Inter-company sales		(11	)		(14	)
Total net sales	$	225,486		$	174,429

Operating income
Material Handling	$	31,220		$	16,927
Distribution		3,301			1,438
Corporate (1)		(10,116	)		(7,500	)
Total operating income		24,405			10,865
Interest expense, net		(1,147	)		(995	)
Income before income taxes	$	23,258		$	9,870

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2017

2016

2017

2016

Net Sales

Material Handling

$
104,089

$
89,911

$
310,343

$
299,842

Distribution

40,004

42,793

117,836

128,248

Inter-company sales

(18
)

(28
)

(98
)

(92
)
Total net sales

$
144,075

$
132,676

$
428,081

$
427,998

(1)

In the quarter ended March 31, 2021, the Company recognized $0.8 million of executive severance, of which $0.5 million was recognized in the Distribution Segment and $0.3 million was recognized in Corporate. This executive severance cost includes $0.5 million of severance and benefits and $0.3 million of charges for acceleration of stock compensation.

Income (loss) from continuing operations before income taxes

Material Handling

$
10,325

$
4,378

$
29,839

$
26,152

Distribution

3,179

3,301

7,742

9,803

Corporate

(6,393
)

(4,693
)

(17,532
)

(20,674
)
Total operating income

7,111

2,986

20,049

15,281

Interest expense, net

(1,785
)

(2,015
)

(5,545
)

(6,087
)
Income from continuing operations before income taxes

$
5,326

$
971

$
14,504

$
9,194

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q and the information incorporated by reference 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 include, without limitation, impacts from the novel coronavirus (“COVID-19”) pandemic on our business, operations, customers and capital position; the impact of COVID-19 on local, national and global economic conditions; the effects of various governmental responses to the COVID-19 pandemic; raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; and other risks 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, 2021. 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.

Executive Overview

The Company conducts its business activities in two reportable segments: The Material Handling Segment and the Distribution Segment.

The Company designs, manufactures, and markets a variety of plastic and rubber products. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, as well as the manufacturing of tire repair and retreading products.

The Company’s results of operations for the quarter ended March 31, 2022 are discussed below. The current economic environment includes heightened risks from inflation, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including the conflict between Russia and Ukraine, and the COVID-19 pandemic. Russia’s invasion of Ukraine in the first quarter of 2022 has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. While many of the public safety measures in response to the COVID-19 pandemic have been lifted or relaxed, it is possible that new or previously lifted measures could be implemented in the future. Through the date of this report, the Company’s businesses continued to operate during the pandemic. However, some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.

Results of Operations:

Comparison of the ~~Three Months~~Quarter Ended ~~September 30, 2017~~March 31, 2022 to the ~~Three Months~~Quarter Ended ~~September 30, 2016~~March 31, 2021

Net Sales:


(dollars in millions)	Three Months Ended September 30,										Quarter Ended March 31,
Segment	2017		2016		Change			% Change			2022			2021			Change		% Change
Material Handling	$	104.1	$	89.9	$	14.2			16	%	$	176,636		$	129,893		$	46,743		36.0	%
Distribution		40.0		42.8		(2.8	)		(7	)%		48,861			44,550			4,311		9.7	%
Inter-company sales		—		—		—						(11	)		(14	)		3
Total net sales	$	144.1	$	132.7	$	11.4			9	%	$	225,486		$	174,429		$	51,057		29.3	%

Net sales for the ~~three months~~quarter ended ~~September 30, 2017~~March 31, 2022 were ~~$144.1~~$225.5 million, an increase of ~~$11.4~~$51.1 million or 9%29.3% compared to the ~~three months~~quarter ended ~~September 30, 2016.~~March 31, 2021. Net sales ~~were positively impacted by higher sales volume of approximately $9.5 million,~~increased due to higher pricing of ~~$1.2~~$35.3 million and higher volume/mix of $4.9 million. Net sales also increased due to $10.9 million of incremental sales from the ~~effect~~acquisition of ~~favorable currency translation~~Trilogy on July 30, 2021, included in the Material Handling Segment. Trilogy’s annual sales were approximately $35 million. Beginning in February 2021, the Company began to implement a series of ~~$0.7 million.~~pricing increases across a majority of its portfolio of products in response to rising raw material and other production costs.

Net sales in the Material Handling Segment increased ~~$14.2~~$46.7 million or ~~16%~~36.0% for the ~~three months~~quarter ended ~~September 30, 2017~~March 31, 2022 compared to the ~~three months~~quarter ended ~~September 30, 2016. The increase in net~~March 31, 2021. Net sales ~~was primarily~~increased due to higher pricing of $31.0 million and higher volume/mix of $4.8 million. Net sales ~~volume of approximately $12.8 million, mainly~~also increased due to ~~increased demand in~~$10.9 million of incremental sales from the ~~Company’s consumer and food and beverage markets, higher pricing~~acquisition of ~~$0.7 million, and the effect of favorable foreign currency translation of $0.7 million.~~Trilogy on July 30, 2021.

Net sales in the Distribution Segment ~~decreased $2.8~~increased $4.3 million or 7%9.7% for the ~~three months~~quarter ended ~~September 30, 2017~~March 31, 2022 compared to the ~~three months~~quarter ended ~~September 30, 2016,~~March 31, 2021, primarily ~~the result of lower sales volume of approximately $3.3 million offset by~~due to higher ~~pricing of $0.5 million.~~pricing.

Cost of Sales & Gross Profit:


	Three Months Ended September 30,											Quarter Ended March 31,
(dollars in millions)	2017			2016			Change		% Change			2022			2021			Change		% Change
Cost of sales	$	103.3		$	96.8		$	6.5		7	%	$	153,558		$	124,016		$	29,542		23.8	%
Gross profit	$	40.7		$	35.9		$	4.8		13	%	$	71,928		$	50,413		$	21,515		42.7	%
Gross profit as a percentage of sales		28.3	%		27.1	%							31.9	%		28.9	%

Gross profit ~~margin~~ increased ~~to 28.3% in~~$21.5 million, or 42.7%, for the ~~three months~~quarter ended ~~September 30, 2017~~March 31, 2022 compared to ~~27.1% for~~ the ~~three months~~quarter ended ~~September 30, 2016, primarily~~March 31, 2021, due to ~~improved mix within the higher sales volumes noted above, mainly in the food and beverage and consumer end markets, as well as the~~increased contribution from higher pricing and volume/mix as described under Net Sales above and the acquisition of ~~$1.2 million. These effects~~Trilogy on July 30, 2021. Partially offsetting these contributions were ~~partially offset by restructuring costs of $1.9 million within the Material Handling Segment, as well as~~ higher raw material ~~costs.~~costs, increased labor costs, and unfavorable sales mix. The contribution from pricing actions more than offset higher raw material costs, which led to a favorable price-to-cost relationship. As a result, gross profit margin was 31.9% for the quarter ended March 31, 2022 compared with 28.9% for the quarter ended March 31, 2021.

Selling, General and Administrative Expenses:


	Three Months Ended September 30,											Quarter Ended March 31,
(dollars in millions)	2017			2016			Change		% Change			2022			2021			Change		% Change
SG&A expenses	$	36.4		$	32.6		$	3.8		12	%	$	47,990		$	39,548		$	8,442		21.3	%
SG&A expenses as a percentage of sales		25.3	%		24.6	%							21.3	%		22.7	%

Selling, general and administrative (“SG&A”) expenses for the ~~three months~~quarter ended ~~September 30, 2017~~March 31, 2022 were ~~$36.4~~$48.0 million, an increase of ~~$3.8~~$8.4 million or ~~12%~~21.3% compared to the same period in the prior year. ~~SG&A expenses~~Increases in ~~the third quarter 2017 were impacted by higher incentive compensation of $3.9 million.~~

~~Restructuring:~~

As further discussed in Note 4, the Company continued to execute on the restructuring plan within the Material Handling Segment initiated in the first quarter of 2017. The Company incurred a total of $2.1 million of restructuring costs in connection with the Plan during the three months ended September 30, 2017, as well as recognized $2.8 million in gains on sales of assets related to the closure and sale of the Bluffton, Indiana facility and certain related equipment.

As previously announced, the Company expects to save approximately $10 million on an annual basis as a result of the actions under the Plan, a portion of which began being realized starting in the third quarter of 2017. The Plan is expected to be substantially completed by the end of 2017.

~~Net Interest Expense:~~

Three Months Ended September 30,

(dollars in millions)

2017

2016

Change

% Change

Net interest expense

$
1.8

$
2.0

$
(0.2
)

(10
)%
Outstanding borrowings, net of deferred financing costs

$
158.0

$
197.9

$
(39.9
)

(20
)%
Average borrowing rate

5.18
%

4.65
%

Net interest expense for the three months ended September 30, 2017 of $1.8 million decreased 10% compared with $2.0 million for the three months ended September 30, 2016. Lower average outstanding borrowings for the period were partially offset with a higher average borrowing rate.

~~Income Taxes:~~

Three Months Ended September 30,

(dollars in millions)

2017

2016

Income from continuing operations before income taxes

$
5.3

$
1.0

Income tax expense

$
2.1

$
0.5

Effective tax rate

38.5
%

56.3
%

The Company’s effective tax rate of 38.5% for the three months ended September 30, 2017, decreased when compared with 56.3% for the three months ended September 30, 2016, primarily due to the mix of income by jurisdiction between periods, including those where no benefits are recognized on losses.

~~Comparison of the Nine Months Ended September 30, 2017 to the Nine Months Ended September 30, 2016~~

~~Net Sales:~~

(dollars in millions)

Nine Months Ended September 30,

Segment

2017

2016

Change

% Change

Material Handling

$
310.3

$
299.8

$
10.5

4
%
Distribution

117.9

128.3

(10.4
)

(8
)%
Inter-company elimination

(0.1
)

(0.1
)

—

Total net sales

$
428.1

$
428.0

$
0.1

0
%

Net sales for the nine months ended September 30, 2017 were $428.1 million and were relatively flat with the nine months ended September 30, 2016. Net sales were negatively impacted by lower sales volume of approximately $4.0 million, offset by the effect of favorable foreign currency translation of approximately $2.2 million and higher pricing of $1.9 million.

Net sales in the Material Handling Segment increased $10.5 million or 4% for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. The increase in net sales was due to higher sales volume of $6.7 million, mainly in the consumer and food and beverage markets, higher pricing of $1.6 million, and the effect of favorable foreign currency translation of $2.2 million.

Net sales in the Distribution Segment decreased $10.4 million or 8% for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016, primarily due to lower volume. The decrease in volume was across all product lines and regions, including our export and international channels.

~~Cost of Sales & Gross Profit:~~

Nine Months Ended September 30,

(dollars in millions)

2017

2016

Change

% Change

Cost of sales

$
306.1

$
299.4

$
6.7

2
%
Gross profit

$
122.0

$
128.6

$
(6.6
)

(5
)%
Gross profit as a percentage of sales

28.5
%

30.1
%

Gross profit margin decreased to 28.5% in the nine months ended September 30, 2017 compared to 30.1% for the nine months ended September 30, 2016, primarily due to higher raw material costs and operating inefficiencies, as well as restructuring costs of $7.0 million within the Material Handling Segment. These impacts were partially offset by higher pricing and a favorable sales mix.

~~Selling, General and Administrative Expenses:~~

Nine Months Ended September 30,

(dollars in millions)

2017

2016

Change

% Change

SG&A expenses

$
105.6

$
103.1

$
2.5

2
%
SG&A expenses as a percentage of sales

24.7
%

24.1
%

~~SG&A expenses for the nine months ended September 30, 2017 were $105.6 million, an increase of $2.5 million or 2% compared to the same period in the prior year.~~ SG&A expenses in the first ~~nine months of 2017~~quarter 2022 were primarily ~~impacted by~~due to $4.7 million of higher ~~severance,~~salaries, benefits and incentive compensation, ~~and benefits of approximately~~ $1.2 million ~~and~~of higher ~~legal and professional fees of $1.3 million.~~

~~Impairment Charges:~~

During the nine months ended September 30, 2017, the Company recorded an impairment charge of $0.5 million related to assets held for sale at its Scarborough, Ontario, Canada location, as discussed in Note 2.

~~The Company recorded $9.9~~variable selling expenses, $1.2 million of ~~non-cash impairment charges, primarily related to its Plasticos Novel do Nordeste S.A. (“Novel”) reporting unit during the nine months ended September 30, 2016, as discussed in Note 2.~~

~~Restructuring:~~

~~As further discussed in Note 4, the Company initiated a restructuring plan in the first quarter of 2017 to improve the Company’s organizational structure~~higher facility costs and ~~operational efficiency within the Material Handling Segment. The Company has incurred a total of $7.1~~$1.2 million of ~~restructuring costs in connection with~~incremental SG&A from the ~~Plan during the nine months ended September~~acquisition of Trilogy on July 30, 2017, with additional costs under the Plan of approximately $0.8 million expected through the end of 2017. The Company also recorded $4.1 million in gains on sales of assets in the nine months ended September 30, 2017 related to the closure and sale of the Bluffton, Indiana facility and certain related equipment. 2021.

As previously announced, the Company expects to save approximately $10 million on an annual basis as a result of the actions under the Plan, a portion of which began being realized starting in the third quarter of 2017. The Plan is to be substantially completed by the end of 2017.19

Net Interest Expense:


	Nine Months Ended September 30,												Quarter Ended March 31,
(dollars in millions)	2017			2016			Change			% Change			2022			2021			Change		% Change
Net interest expense	$	5.5		$	6.1		$	(0.6	)		(10	)%	$	1,147		$	995		$	152		15.3	%
Outstanding borrowings, net of deferred financing costs	$	158.0		$	197.9		$	(39.9	)		(20	)%
Average borrowing rate		5.05	%		4.61	%
Average outstanding borrowings, net													$	105,852		$	73,833		$	32,019		43.4	%
Weighted-average borrowing rate														4.12	%		5.33	%

Net interest expense for the ~~nine months~~quarter ended ~~September 30, 2017~~March 31, 2022 was ~~$5.5~~$1.1 million, an increase of $0.2 million, or 15.3%, compared ~~to $6.1~~with $1.0 million ~~during~~for the ~~nine months~~quarter ended ~~September 30, 2016.~~March 31, 2021. The ~~decrease in~~higher net interest expense iswas due to ~~lower~~higher average outstanding borrowings ~~during~~in the ~~nine months ended September 30, 2017 as compared to the same period in 2016,~~current year, partially offset by ~~a slightly higher~~the lower borrowing rate.

Income Taxes:


	Nine Months Ended September 30,						Quarter Ended March 31,
(dollars in millions)	2017			2016			2022			2021
Income from continuing operations before income taxes	$	14.5		$	9.2		$	23,258		$	9,870
Income tax expense	$	6.1		$	6.4		$	5,921		$	2,565
Effective tax rate		42.0	%		69.8	%		25.5	%		26.0	%

The ~~effective income tax rate for the nine months ended September 30, 2017 was different than the~~ Company’s effective tax rate was 25.5% for the ~~same period~~quarter ended March 31, 2022, compared to 26.0% for the quarter ended March 31, 2021. The decrease in ~~2016,~~the effective tax rate was primarily ~~due to losses in jurisdictions where~~ the ~~tax benefits are not recognized, which included the impairment charges in Brazil in 2016.~~result of state income taxes.

~~Financial Condition &~~ Liquidity and Capital Resources:

The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Loan Agreement (defined below). At March 31, 2022, the Company had $17.6 million of cash, $191.8 million available under the Loan Agreement and outstanding debt of $102.3 million, including the finance lease liability of $9.8 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and uncertainty caused by COVID-19 and potential macroeconomic effects stemming from the current geopolitical climate. The Company believes that cash on hand, cash flows from operations and available capacity under its Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth, including selective acquisitions.

Operating Activities

~~Cash~~Net cash provided by operating activities ~~from continuing operations~~ was ~~$36.1~~$7.3 million for the ~~nine months~~quarter ended ~~September 30, 2017,~~March 31, 2022, compared to ~~$18.6~~$6.6 million in the same period in ~~2016.~~2021. The ~~improvement~~increase was primarily due to ~~an increase~~higher net income in ~~cash provided~~the current year partially offset by higher working capital ~~of $22.5 million, which resulted from a swing~~driven by increases in ~~the~~accounts receivable and inventory.

Investing Activities

Net cash ~~provided by (used for) accounts payable and accrued expenses.~~

~~Investing Activities~~

~~Cash provided~~used by investing activities ~~from continuing operations~~ was ~~$2.9~~$4.0 million for the ~~nine months~~quarter ended ~~September 30, 2017~~March 31, 2022 compared to cash used of ~~$15.3~~$6.5 million for the ~~nine months ended September 30, 2016. The Company paid a final working capital adjustment to~~same period in 2021. In 2022, the ~~buyer of the~~ ~~Lawn and Garden business~~ ~~of approximately $4.0 million in the first quarter of 2016, as described in Note 3. The~~ Company received proceeds of ~~$8.1~~$1.1 million ~~in the first nine months of 2017~~ from the sale of fixed ~~assets, a significant portion~~assets. In 2021, the Company paid the working capital adjustment of ~~which was derived from~~$1.2 million related to the ~~sale~~November 10, 2020 acquisition of ~~the Company’s Bluffton, Indiana facility and related equipment~~Elkhart Plastics as ~~part of the Material Handling restructuring plan.~~discussed in Note 3. Capital expenditures were $5.1 million and ~~$11.5~~$5.2 million for the ~~nine months~~quarter ended ~~September 30, 2017~~March 31, 2022 and ~~2016,~~2021, respectively. Full year 2022 capital expenditures ~~in 2017~~ are expected to be approximately $7$25 million to $9$28 million.

Financing Activities

Cash used by financing activities was $3.4 million for the quarter ended March 31, 2022 compared to $11.8 million used for financing activities for the same period in 2021. Net ~~payments~~borrowings on the credit facility for the quarter ended March 31, 2022 and 2021 were ~~$31.4~~$1.5 million and $33.0 million. In 2021, the Company repaid a$40.0 million Senior Unsecured Note when it matured in January 2021 with a combination of cash and proceeds under the Loan Agreement (defined below). Fees paid for the amendment and extension of the Loan Agreement in March 2021 totaled $1.1 million . Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $0.5 million and $1.9 million for the ~~nine months~~quarter ended ~~September 30, 2017 compared to net borrowings of $4.4 million for the nine months ended September 30, 2016.~~March 31, 2022 and 2021, respectively. The Company also used cash to pay dividends of ~~$12.2 million and $12.1~~$4.9 million for each of the ~~nine months~~quarters ended ~~September 30, 2017~~March 31, 2022 and ~~2016, respectively.~~ 2021.

Credit Sources

In March ~~2017,~~2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement ~~(the~~(collectively, the “Loan Agreement”). dated March 2017. The ~~Loan Agreement replaced~~Sixth Amendment increased the ~~pre-existing $300 million~~ senior revolving credit ~~facility with a~~facility’s borrowing limit to $250 million from $200 million, ~~facility and~~ extended the ~~term from December 2018~~maturity date to March ~~2022. In addition,~~2024 from March 2022, and increased flexibility of the financial and other covenants and provisions.

As of March 31, 2022, $191.8 million was available under the Loan Agreement, ~~provides for a maximum Leverage Ratio of 3.75 for the first~~after borrowings and ~~second quarters of 2017, stepping down to 3.5 in the third quarter of 2017, and 3.25 thereafter.~~

Total debt outstanding at September 30, 2017 was $158.0 million, net of $1.8 million of deferred financing costs, compared with $189.5 million at December 31, 2016. The Company’s Loan Agreement provides available borrowing up to $200 million, reduced for letters of credit issued. As of September 30, 2017, the Company had $4.4$3.7 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of ~~business~~business. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case plus the applicable margin as set forth in the Loan Agreement.

At March 31, 2022, $38 million face value of Senior Unsecured Notes are outstanding. The series of notes range in face value from $11 million to $15 million, with interest rates ranging from 5.25% to 5.45%, payable semiannually. As described in Note 11, $26.0 million of the Senior Unsecured Notes mature on January 15, 2024 and ~~there was $135.8~~$12.0 million ~~available under our Loan Agreement.~~mature on January 15, 2026.

As of ~~September 30, 2017,~~March 31, 2022, the Company was in compliance with all of its debt covenants. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of and for the period ended ~~September 30, 2017~~March 31, 2022 are shown in the following table:

In September 2017, the Company made an offer to all holders of the $100 million Senior Unsecured Notes (“Notes”) to purchase all or a portion of the Notes prior to their maturity dates. In October 2017, one note holder accepted the offer and elected to tender $22 million in Notes. The Company purchased the Notes from the holder on October 31, 2017 and a loss on extinguishment of debt of approximately $1.9 million was recorded during the fourth quarter of 2017.21

The Company believes that cash flows from operations and available borrowing under its Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, and debt service.

Item 3. Quantitative and ~~Qualitative~~Qualitative Disclosures About Market Risk

Interest Rate Risk

The Company has certain financing arrangements that require interest payments based on floating interest ~~rates. The~~rates, and to that extent, the Company’s financial results are subject to changes in the market rate of interest. Borrowings under the Loan Agreement bear interest at the LIBOR, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement. At present, the Company has not entered into any interest rate swaps or other derivative instruments to fix the interest rate on any portion of its financing arrangements with floating rates. ~~Accordingly, based~~The Financial Conduct Authority in the United Kingdom has stated that it will not require banks to submit LIBOR beyond June 2023. The Company does not anticipate a significant impact to its financial position as a result of this action. Based on current debt levels at ~~September 30, 2017,~~March 31, 2022, if market interest rates increase one percent, the Company’s annual variable interest expense would increase approximately ~~$0.6 million annually.~~$0.5 million.

~~Some~~Foreign Currency Exchange Risk

Certain of the Company’s subsidiaries operate in foreign countries and their financial results are subject to exchange rate movements. The Company has operations in Canada with foreign currency exposure, primarily due to U.S. dollar sales made from businesses in Canada to customers in the United ~~States (“U.S.”). These sales are denominated in U.S. dollars.~~States. The Company has a systematic program to limit its exposure to fluctuations in exchange rates related to certain assets and liabilities of its operations in Canada ~~and Brazil~~ that are denominated in U.S. dollars. The net exposure generally ranges from $2$1 million to $7$3 million. The foreign currency contracts and arrangements created under this program are not designated as hedged items under ASC 815, Derivatives and Hedging, and accordingly, the changes in the fair value of the foreign currency arrangements, which have been immaterial, are recorded in the ~~statements~~Condensed Consolidated Statements of ~~operations.~~Operations (Unaudited). The Company’s foreign currency arrangements are typically three months or less and are settled before the end of a reporting period. At ~~September 30, 2017,~~March 31, 2022, the Company had no foreign currency arrangements or contracts in place.

Commodity Price Risk

The Company uses certain ~~commodities,~~commodity raw materials, primarily plastic resins, and other commodities, such as natural gas, in its ~~manufacturing processes.~~operations. The cost of operations can be affected asby changes in the market for these commodities, ~~changes.~~particularly plastic resins. The Company currently has no derivative contracts to hedge ~~this risk; however, the~~changes in raw material pricing. The Company ~~also has no significant purchase obligations~~may from time to ~~purchase fixed quantities of such commodities in future periods.~~time enter into forward buy positions for certain utility costs, which were not material at March 31, 2022. Significant future increases in the cost of plastic resin or other adverse changes in the general economic environment could have a material adverse impact on the Company’s financial position, results of operations or cash flows.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the ~~Commission’s~~SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

The Company carries out a variety of on-going procedures, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of ~~September 30, 2017.~~March 31, 2022.

Changes in Internal Control Over Financial Reporting

On July 30, 2021, the Company acquired the assets of Trilogy. As permitted by SEC rules and regulations, the scope of management’s evaluation of internal control over financial reporting as of March 31, 2022 did not include an evaluation of the internal control over financial reporting of Trilogy. However, we are extending our oversight and monitoring processes that support our review of internal control over financial reporting to include Trilogy’s operations.

During the ~~nine months~~quarter ended ~~September 30, 2017,~~March 31, 2022, there have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – Other Information

Item 1.Legal Proceedings

Certain legal proceedings in which the Company is involved are discussed in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report, and Part I, Item 3 of the Company's Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2021. The Company’s disclosures relating to legal proceedings in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report is incorporated into Part II of this report by reference. The Company is a defendant in various lawsuits and a party to various other legal proceedings, in the ordinary course of business, some of which are covered in whole or in part by insurance. We believe that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on our consolidated financial position, results of operations or cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) The following table presents information regarding the Company’s stock repurchase plan during the quarter ended March 31, 2022:


	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 number of Shares that may yet be Purchased Under the Plans or Programs (1)
1/1/2022 to 1/31/2022		—	$	—		5,547,665		2,452,335
2/1/2022 to 2/28/2022		—		—		5,547,665		2,452,335
3/1/2022 to 3/31/2022		—		—		5,547,665		2,452,335

(1)

On July 11, 2013, the Board authorized the repurchase of up to 5.0 million shares of ~~its~~the Company’s common stock. This authorization was in addition to the 2011 Board authorized repurchase of up to 5.0 million shares. The Company completed the repurchase of approximately 2.0 million shares in 2011 pursuant to Rule 10b5-1 plans, which were adopted pursuant to the 2011 authorized share repurchase. The Company has repurchased a total of 5,547,665 shares of its common stock under this program and as of September 30, 2017, 2,452,335 shares of common stock remain available for repurchase under the Board authorization. The Company did not repurchase any shares of its common stock during the three or nine months ended September 30, 2017.

Item 6. Exhibits


~~2(a)~~3.1		~~Asset Purchase Agreement, dated as of May 30, 2014, among Scepter Corporation, SHI Properties Inc., CA Acquisition Inc., and~~ Myers Industries, Inc. Reference is made to Exhibit 2.1 to Form 8-K filed with the Commission on July 7, 2014.**
~~2(b)~~	Unit Purchase Agreement, dated as of May 30, 2014, among Eco One Holdings, Inc., Crown US Acquisition Company, and Myers Industries, Inc. Reference is made to Exhibit 2.2 to Form 8-K filed with the Commission on July 7, 2014.**
~~2(c)~~	Indemnification Agreement, dated as of May 30, 2014 among Scepter Corporation, SHI Properties Inc., Eco One Holdings, Inc., Crown US Acquisition Company, and CA Acquisition Inc. Reference is made to Exhibit 2.3 to Form 8-K filed with the Commission on July 7, 2014.**
~~2(d)~~	First Amendment to the Asset Purchase Agreement, Unit Purchase Agreement and Indemnification Agreement, dated as of July 2, 2014, among Scepter Corporation, SHI Properties Inc., CA Acquisition Inc., Eco One Holdings, Inc., Crown US Acquisition Company, and Myers Industries, Inc. Reference is made to Exhibit 2.4 to Form 8-K filed with the Commission on July 7, 2014.**
~~2(e)~~	Amended and Restated Asset Purchase Agreement, dated as of February 17, 2015, among Myers Industries, Inc., MYE Canada Operations, Inc., and the HC Companies, Inc. Reference is made to Exhibit 2.1 to Form 8-K filed with the Commission on February 18, 2015.**
~~3(a)~~	~~Myers Industries, Inc.~~Second Amended and Restated Articles of Incorporation. Reference is made to Exhibit ~~3(a)~~3.1 to Form ~~10-K~~8-K filed with the ~~Commission~~SEC on ~~March 16, 2005.~~April 29, 2021.
~~3(b)~~3.2		Myers Industries, Inc. Amended and Restated Code of Regulations. Reference is made to Exhibit ~~3.1~~3.2 to Form 8-K filed with the ~~Commission~~SEC on April ~~12, 2013.~~29, 2021.
~~31.1~~10.1		Form of 2022 Restricted Stock Unit Award Agreement for Executive Officers under the 2021 Long-Term Incentive Plan of Myers Industries, Inc.* (filed herewith)
10.2		Form of 2022 Performance Stock Unit Award Agreement for Executive Officers under the 2021 Long-Term Incentive Plan of Myers Industries, Inc.* (filed herewith)
31.1		Certification of ~~R. David Banyard,~~Michael P. McGaugh, President and Chief Executive Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of ~~Matteo Anversa,~~Sonal P. Robinson, Executive Vice President and Chief Financial Officer ~~and Corporate Secretary~~ of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certifications of ~~R. David Banyard,~~Michael P. McGaugh, President and Chief Executive Officer, and ~~Matteo Anversa,~~Sonal P. Robinson, Executive Vice President and Chief Financial Officer, ~~and Corporate Secretary,~~ of Myers Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial information from Myers Industries, Inc. Quarterly Report on Form 10-Q for the quarterly period ended ~~September 30, 2017,~~March 31, 2022, formatted in inline XBRL includes: (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Financial Position, (iv) Condensed Consolidated ~~Statement~~Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

*	~~Indicates executive compensation plan or arrangement.~~

**	Pursuant to Item 601(b)(2) of Regulation S-K, certain exhibits and schedules have been omitted from this filing. The registrant agrees to furnish the Commission on a supplemental basis a copy of any omitted exhibit or schedule.

* Indicates executive compensation plan or arrangement.

~~SIGNATURES~~

SIGNATURE

Pursuant to the requirements ~~of Section 13 or 15(d)~~ of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	MYERS INDUSTRIES, INC.
~~November 7, 2017~~	~~/s/ Matteo Anversa~~
May 5, 2022	~~Matteo Anversa~~/s/ Sonal P. Robinson
	~~Executive Vice President~~ ~~Chief Financial Officer and Corporate Secretary~~ ~~(Principal Financial Officer)~~Sonal P. Robinson
~~November 7, 2017~~	~~/s/ Kevin L. Brackman~~
	~~Kevin L. Brackman~~
	Executive Vice President and Chief Financial Officer ~~Chief Accounting Officer~~ (Principal Financial and Accounting Officer)


Ohio	34-0778636
(State or other jurisdiction of	(IRS Employer Identification
incorporation or organization)	Number)

1293 South Main Street
Akron, Ohio	44301
(Address of principal executive offices)	(Zip code)


Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, without par value	MYE	New York Stock Exchange


Large accelerated filer	☐	Accelerated filer	☑
Non-Accelerated filer	☐ ~~(Do not check if a smaller reporting company)~~	Smaller reporting company	☐
		Emerging growth company	☐

~~Class~~		~~Outstanding as of October 31, 2017~~
~~Common Stock, without par value~~		~~30,438,041 shares~~

Part I — Financial Information	1

Item 1. Financial Statements	1

Condensed Consolidated Statements of Operations (Unaudited)	1

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	2

Condensed Consolidated Statements of Financial Position (Unaudited)	3

Condensed Consolidated ~~Statement~~Statements of Shareholders’ Equity (Unaudited)	54

Condensed Consolidated Statements of Cash Flows (Unaudited)	65

Notes to Unaudited Condensed Consolidated Financial Statements	76

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3. Quantitative and Qualitative Disclosures About Market Risk	2322

Item 4. Controls and Procedures	2422

Part II — Other Information	2523

Item 1. Legal Proceedings	2523

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	2523

Item 6. Exhibits	2524

~~Signatures~~Signature	2625

Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 101



☑
☑	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



☐
☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	September 30,			December 31,
	2017			2016
Assets
Current Assets
Cash	$	4,511		$	7,888
Restricted cash		8,650			8,635
Accounts receivable, less allowances of $1,375 and $1,563, respectively		88,278			73,818
Inventories
Finished and in-process products		31,254			31,826
Raw materials and supplies		17,718			14,197
		48,972			46,023
Prepaid expenses and other current assets		2,881			4,787
Total Current Assets		153,292			141,151
Other Assets
Goodwill		60,048			59,219
Intangible assets, net		42,377			47,994
Deferred income taxes		253			216
Notes receivable		18,632			18,275
Other		6,871			3,347
		128,181			129,051
Property, Plant and Equipment, at Cost
Land		7,973			8,916
Buildings and leasehold improvements		59,925			65,566
Machinery and equipment		285,189			319,606
		353,087			394,088
Less allowances for depreciation and amortization		(261,153	)		(282,606	)
Property, plant and equipment, net		91,934			111,482
Total Assets	$	373,407		$	381,684


	Quarter Ended March 31, 2022
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2022	$	22,172	$	306,720	$	(15,401	)	$	(104,166	)	$	209,325
Net income		0		0		0			17,337			17,337
Foreign currency translation adjustment		0		0		570			0			570
Shares issued under incentive plans, net of shares withheld for tax		53		74		0			0			127
Stock compensation expense		0		1,727		0			0			1,727
Declared dividends - $0.135 per share		0		0		0			(4,948	)		(4,948	)
Balance at March 31, 2022	$	22,225	$	308,521	$	(14,831	)	$	(91,777	)	$	224,138

	Quarter Ended March 31, 2021
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2021	$	21,939	$	300,852	$	(15,773	)	$	(117,918	)	$	189,100
Net income		0		0		0			7,305			7,305
Foreign currency translation adjustment		0		0		411			0			411
Shares issued under incentive plans, net of shares withheld for tax		115		1,122		0			0			1,237
Stock compensation expense		0		1,153		0			0			1,153
Declared dividends - $0.135 per share		0		0		0			(4,953	)		(4,953	)
Balance at March 31, 2021	$	22,054	$	303,127	$	(15,362	)	$	(115,566	)	$	194,253

	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2017	$	18,234	$	202,033	$	(34,174	)	$	(93,060	)	$	93,033
Net income		—		—		—			8,364			8,364
Foreign currency translation adjustment		—		—		3,491			—			3,491
Shares issued under incentive plans, net of shares withheld for tax		184		2,067		—			—			2,251
Stock compensation expense		—		3,018		—			—			3,018
Declared dividends - $0.41 per share		—		—		—			(12,425	)		(12,425	)
Balance at September 30, 2017	$	18,418	$	207,118	$	(30,683	)	$	(97,121	)	$	97,732

	For the Three Months Ended September 30, 2017		For the Nine Months Ended September 30, 2017
Cost of sales	$	1,908	$	6,968
Selling, general and administrative expenses		164		164
	$	2,072	$	7,132

	Employee Reduction			Accelerated Depreciation			Other Exit Costs			Total
Balance at January 1, 2017	$	—		$	—		$	—		$	—
Charges to expense		2,868			2,018			2,246			7,132
Cash payments		(773	)		—			(1,929	)		(2,702	)
Non-cash utilization		—			(2,018	)		—			(2,018	)
Balance at September 30, 2017	$	2,095		$	—		$	317		$	2,412

Income (loss) from continuing operations before income taxes
Material Handling	$	10,325		$	4,378		$	29,839		$	26,152
Distribution		3,179			3,301			7,742			9,803
Corporate		(6,393	)		(4,693	)		(17,532	)		(20,674	)
Total operating income		7,111			2,986			20,049			15,281
Interest expense, net		(1,785	)		(2,015	)		(5,545	)		(6,087	)
Income from continuing operations before income taxes	$	5,326		$	971		$	14,504		$	9,194

Required Level

Actual Level

Interest Coverage Ratio

3.00 to 1(minimum)

~~7.03~~21.04

Leverage Ratio

~~3.50~~3.25 to 1 (maximum)

~~2.58~~1.16