10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

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

For the quarterly period ended June 30, 2022

OR

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

For the transition period from to

Commission File Number 001-08524

Myers Industries, Inc.

(Exact name of registrant as specified in its charter)

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)

(330) 253-5592

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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

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 every Interactive Data File required to be submitted 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 such files). Yes ☑ No ☐

Indicate by check mark whether the 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.

Large accelerated filer	☐	Accelerated filer	☑
Non-Accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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 the issuer’s common stock, without par value, as of July 29, 2022 was 36,468,481 shares.

TABLE OF CONTENTS

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 Statements of Shareholders’ Equity (Unaudited)	4
Condensed Consolidated Statements of Cash Flows (Unaudited)	6
Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk	26
Item 4. Controls and Procedures	26
Part II — Other Information	27
Item 1. Legal Proceedings	27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 6. Exhibits	28
Signature	29
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 101

Part I — Financial Information

Item 1. Financial Statements

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Net sales	$	233,156		$	187,369		$	458,642		$	361,798
Cost of sales		158,440			132,375			311,998			256,391
Gross profit		74,716			54,994			146,644			105,407
Selling, general and administrative expenses		52,320			40,121			100,310			79,669
Gain on disposal of fixed assets		(221	)		(996	)		(688	)		(996	)
Operating income		22,617			15,869			47,022			26,734
Interest expense, net		1,211			999			2,358			1,994
Income before income taxes		21,406			14,870			44,664			24,740
Income tax expense		5,575			3,795			11,496			6,360
Net income	$	15,831		$	11,075		$	33,168		$	18,380
Net income per common share:
Basic	$	0.43		$	0.31		$	0.91		$	0.51
Diluted	$	0.43		$	0.30		$	0.91		$	0.51

See notes to unaudited condensed consolidated financial statements.

1

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

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

(Dollars in thousands)

	For the Quarter Ended June 30,					For the Six Months Ended June 30,
	2022			2021		2022			2021
Net income	$	15,831		$	11,075	$	33,168		$	18,380
Other comprehensive income (loss):
Foreign currency translation adjustment		(1,179	)		470		(609	)		881
Total other comprehensive income		(1,179	)		470		(609	)		881
Comprehensive income	$	14,652		$	11,545	$	32,559		$	19,261

See notes to unaudited condensed consolidated financial statements.

2

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position (Unaudited)

(Dollars in thousands)

	June 30,			December 31,
	2022			2021
Assets
Current Assets
Cash	$	22,434		$	17,655
Accounts receivable, less allowances of $2,640 and $3,229, respectively		132,002			100,691
Income tax receivable		—			2,517
Inventories, net		108,902			93,551
Prepaid expenses and other current assets		11,301			5,500
Total Current Assets		274,639			219,914
Property, plant, and equipment, net		94,945			92,049
Right of use asset - operating leases		29,052			29,285
Goodwill		96,093			88,778
Intangible assets, net		55,081			50,181
Deferred income taxes		106			106
Other		4,096			4,236
Total Assets	$	554,012		$	484,549
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	104,314		$	81,690
Accrued employee compensation		22,200			21,616
Income taxes payable		3,085			—
Accrued taxes payable, other than income taxes		2,482			2,759
Accrued interest		929			966
Other current liabilities		20,758			19,628
Operating lease liability - short-term		5,774			5,341
Finance lease liability - short-term		509			500
Total Current Liabilities		160,051			132,500
Long-term debt		103,956			90,945
Operating lease liability - long-term		23,242			23,815
Finance lease liability - long-term		9,179			9,437
Other liabilities		13,863			13,086
Deferred income taxes		6,463			5,441
Total Liabilities		316,754			275,224
Shareholders’ Equity
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)		—			—
Common Shares, without par value (authorized 60,000,000 shares;    outstanding 36,458,306 and 36,262,259; net of treasury shares    of 6,094,151 and 6,290,198, respectively)		22,304			22,172
Additional paid-in capital		311,939			306,720
Accumulated other comprehensive loss		(16,010	)		(15,401	)
Retained deficit		(80,975	)		(104,166	)
Total Shareholders’ Equity		237,258			209,325
Total Liabilities and Shareholders’ Equity	$	554,012		$	484,549

See notes to unaudited condensed consolidated financial statements.

3

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(Dollars in thousands, except per share data)

	Quarter Ended June 30, 2022
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at April 1, 2022	$	22,225	$	308,521	$	(14,831	)	$	(91,777	)	$	224,138
Net income		—		—		—			15,831			15,831
Foreign currency translation    adjustment		—		—		(1,179	)		—			(1,179	)
Shares issued under incentive plans,    net of shares withheld for tax		79		1,285		—			—			1,364
Stock compensation expense		—		2,133		—			—			2,133
Declared dividends - $0.135 per share		—		—		—			(5,029	)		(5,029	)
Balance at June 30, 2022	$	22,304	$	311,939	$	(16,010	)	$	(80,975	)	$	237,258
	Quarter Ended June 30, 2021
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at April 1, 2021	$	22,054	$	303,127	$	(15,362	)	$	(115,566	)	$	194,253
Net income		—		—		—			11,075			11,075
Foreign currency translation    adjustment		—		—		470			—			470
Shares issued under incentive plans,    net of shares withheld for tax		55		380		—			—			435
Stock compensation expense		—		676		—			—			676
Declared dividends - $0.135 per share		—		—		—			(4,928	)		(4,928	)
Balance at June 30, 2021	$	22,109	$	304,183	$	(14,892	)	$	(109,419	)	$	201,981

See notes to unaudited condensed consolidated financial statements.

4

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(Dollars in thousands, except per share data)

	Six Months Ended June 30, 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		—		—		—			33,168			33,168
Foreign currency translation    adjustment		—		—		(609	)		—			(609	)
Shares issued under incentive plans,    net of shares withheld for tax		132		1,359		—			—			1,491
Stock compensation expense		—		3,860		—			—			3,860
Declared dividends - $0.27 per share		—		—		—			(9,977	)		(9,977	)
Balance at June 30, 2022	$	22,304	$	311,939	$	(16,010	)	$	(80,975	)	$	237,258
	Six Months Ended June 30, 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		—		—		—			18,380			18,380
Foreign currency translation    adjustment		—		—		881			—			881
Shares issued under incentive plans,    net of shares withheld for tax		170		1,502		—			—			1,672
Stock compensation expense		—		1,829		—			—			1,829
Declared dividends - $0.27 per share		—		—		—			(9,881	)		(9,881	)
Balance at June 30, 2021	$	22,109	$	304,183	$	(14,892	)	$	(109,419	)	$	201,981

See notes to unaudited condensed consolidated financial statements.

5

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

	For the Six Months Ended June 30,
	2022			2021
Cash Flows From Operating Activities
Net income	$	33,168		$	18,380
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization		10,683			10,752
Non-cash stock-based compensation expense		3,860			1,829
Gain on disposal of fixed assets		(688	)		(996	)
Other		698			(907	)
Cash flows provided by (used for) working capital
Accounts receivable		(21,200	)		(15,250	)
Inventories		(7,259	)		(13,411	)
Prepaid expenses and other current assets		(5,702	)		(4,814	)
Accounts payable and accrued expenses		20,739			25,718
Net cash provided by (used for) operating activities		34,299			21,301
Cash Flows From Investing Activities
Capital expenditures		(10,943	)		(8,220	)
Acquisition of business, net of cash acquired		(24,253	)		(1,223	)
Proceeds from sale of property, plant and equipment		1,499			2,848
Net cash provided by (used for) investing activities		(33,697	)		(6,595	)
Cash Flows From Financing Activities
Net borrowings from revolving credit facility		13,000			19,900
Repayments of long-term debt		—			(40,000	)
Payments on finance lease		(249	)		(161	)
Cash dividends paid		(9,934	)		(9,809	)
Proceeds from issuance of common stock		1,838			2,420
Shares withheld for employee taxes on equity awards		(347	)		(748	)
Deferred financing fees		—			(1,095	)
Net cash provided by (used for) financing activities		4,308			(29,493	)
Foreign exchange rate effect on cash		(131	)		29
Net increase (decrease) in cash		4,779			(14,758	)
Cash at January 1		17,655			28,301
Cash at June 30	$	22,434		$	13,543

See notes to unaudited condensed consolidated financial statements.

6

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(Dollars in thousands, except where otherwise indicated)

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 accounting principles generally accepted 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, 2021.

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 June 30, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2022.

Accounting Standards Not Yet Adopted

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the Company, this ASU is effective January 1, 2023. Early adoption is permitted. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The effect of adopting this guidance will depend on the contract assets and liabilities associated with any future acquisitions.

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments 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 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 June 30, 2022 and December 31, 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $38.3 million and $41.0 million, respectively.

The purchase price allocations associated with the May 31, 2022 acquisition of Mohawk Rubber Sales of New England Inc. ("Mohawk") and the July 30, 2021 acquisition of Trilogy Plastics, Inc. (“Trilogy”), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.

7

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(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 April 1, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)
Other comprehensive income (loss) before reclassifications		(1,179	)		—			(1,179	)
Net current-period other comprehensive income (loss)		(1,179	)		—			(1,179	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)
Other comprehensive income (loss) before reclassifications		470			—			470
Net current-period other comprehensive income (loss)		470			—			470
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		(609	)		—			(609	)
Net current-period other comprehensive income (loss)		(609	)		—			(609	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		881			—			881
Net current-period other comprehensive income (loss)		881			—			881
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the 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 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 six months ended June 30, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		(110	)		504
Write-offs and other		(302	)		(336	)
Balance at June 30	$	1,761		$	2,503

8

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

2. Revenue Recognition

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

	For the Quarter Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	34,589	$	—	$	—		$	34,589
Vehicle		48,101		—		—			48,101
Food and beverage		23,154		—		—			23,154
Industrial		67,246		—		(9	)		67,237
Auto aftermarket		—		60,075		—			60,075
Total net sales	$	173,090	$	60,075	$	(9	)	$	233,156

	For the Quarter Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	37,312	$	—	$	—		$	37,312
Vehicle		41,437		—		—			41,437
Food and beverage		16,399		—		—			16,399
Industrial		42,079		—		(14	)		42,065
Auto aftermarket		—		50,156		—			50,156
Total net sales	$	137,227	$	50,156	$	(14	)	$	187,369

	For the Six Months Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	66,513	$	—	$	—		$	66,513
Vehicle		95,878		—		—			95,878
Food and beverage		57,834		—		—			57,834
Industrial		129,501		—		(20	)		129,481
Auto aftermarket		—		108,936		—			108,936
Total net sales	$	349,726	$	108,936	$	(20	)	$	458,642

	For the Six Months Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	62,707	$	—	$	—		$	62,707
Vehicle		83,629		—		—			83,629
Food and beverage		37,816		—		—			37,816
Industrial		82,968		—		(28	)		82,940
Auto aftermarket		—		94,706		—			94,706
Total net sales	$	267,120	$	94,706	$	(28	)	$	361,798

Revenue is recognized when obligations under the terms of 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 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.

9

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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 normal course of business and as part of 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) related to revenue recognition include:

	June 30,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(879	)	$	(1,056	)	Accounts receivable
Right of return asset	$	346		$	361		Inventories, net
Customer deposits	$	(1,295	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(3,609	)	$	(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 transferred to the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.9 million and $2.3 million for the quarters ended June 30, 2022 and 2021, respectively, and $7.1 million and $4.8 million for the six months ended June 30, 2022 and 2021, respectively, and in Cost of sales were approximately $2.4 million and $1.9 million for the quarters ended June 30, 2022 and 2021 and $4.0 million and $3.5 million for the six months ended June 30, 2022 and 2021, respectively.

Based on the 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 context of the contract, are recognized as expense as incurred.

3. Acquisitions

Mohawk

On May 31, 2022, the Company acquired the assets of Mohawk Rubber Sales of New England, Inc. ("Mohawk"), a leading auto aftermarket distributor, which is included in the Distribution Segment. The Mohawk acquisition aligns with the Company's long-term objective to optimize and grow its Distribution business. Cash consideration was $24.3 million, net of $1.1 million of cash acquired. The Company estimated additional consideration payable of approximately $3.4 million, subject to finalization of working capital and other adjustments. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 11.

10

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The acquisition of Mohawk 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. The purchase accounting will be finalized within one year from the acquisition date.

Assets acquired:
Accounts receivable	$	10,137
Inventories		8,209
Prepaid expenses		104
Other assets - long term		30
Property, plant and equipment		1,432
Right of use asset - operating leases		1,367
Intangible assets		7,720
Goodwill		7,485
Assets acquired	$	36,484
Liabilities assumed:
Accounts payable	$	5,996
Accrued expenses		1,414
Operating lease liability - short term		399
Operating lease liability - long term		968
Total liabilities assumed		8,777
Net acquisition cost	$	27,707

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	$	5,400	12.0 years
Trade name		2,000	5.0 years
Non-competition agreements		320	5.0 years
Total amortizable intangible assets	$	7,720

Trilogy Plastics

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and 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 Loan Agreement described in Note 11.

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 six months ended June 30, 2022. The purchase accounting will be finalized within one year from the acquisition date.

11

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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 2021, the sale of the original facility for net proceeds of $2.8 million was completed, which resulted in a 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 June 30, 2022 to complete it for its full intended use, including moving equipment into the new Bristol facility from other locations, such as from the former manufacturing facility in Cassopolis, Michigan that was closed at December 31, 2021.

12

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

The Ameri-Kart Plan is expected to be substantially completed in 2022 and total restructuring costs expected to be incurred are approximately $1.8 million, primarily related to equipment relocation and facility shut down costs, which due to their nature will be expensed when incurred. The Company incurred $0.4 million of restructuring charges classified as Cost of sales for the six months ended June 30, 2022 and $0.3 million related to loss on disposal of fixed assets during the six months ended June 30, 2022. The accrual for unpaid restructuring expenses at December 31, 2021 was $0.5 million and no balance was accrued at June 30, 2022. No restructuring charges were incurred during the quarter ended June 30, 2022 and the quarter and six months ended June 30, 2021.

5. Inventories

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 40 percent of inventories are valued using the LIFO method of determining cost. All other inventories are valued using 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 be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to 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. No adjustment to the LIFO reserve was recorded for the quarters ended June 30, 2022 or 2021.

Inventories consisted of the following:

	June 30,		December 31,
	2022		2021
Finished and in-process products	$	69,584	$	56,684
Raw materials and supplies		39,318		36,867
	$	108,902	$	93,551

6. Other Liabilities

The balance in Other Current Liabilities is comprised of the following:

	June 30,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,904	$	5,194
Dividends payable		5,485		5,441
Accrued litigation, claims and professional fees		1,060		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,880		6,787
	$	20,758	$	19,628

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

	June 30,		December 31,
	2022		2021
Environmental reserves	$	9,238	$	8,298
Supplemental executive retirement plan liability		1,031		1,176
Pension liability		258		421
Other long-term liabilities		3,336		3,191
	$	13,863	$	13,086

13

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

7. Goodwill and Intangible Assets

The change in goodwill for the six months ended June 30, 2022 was as follows:

	Distribution		Material Handling			Total
January 1, 2022	$	7,648	$	81,130		$	88,778
Acquisition		7,485		—			7,485
Foreign currency translation		—		(170	)		(170	)
June 30, 2022	$	15,133	$	80,960		$	96,093

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 useful lives. Indefinite-lived trade names had a carrying value of $9.8 million at both June 30, 2022 and December 31, 2021. Refer to Note 3 for the intangible assets acquired through the Mohawk acquisition in May 2022 and the Trilogy acquisition in July 2021.

8. Net Income per Common Share

Net income 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 Quarter Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Weighted average common shares outstanding basic		36,397,547		36,122,792		36,338,907		36,058,061
Dilutive effect of stock options and restricted stock		225,948		213,656		238,285		237,942
Weighted average common shares outstanding diluted		36,623,495		36,336,448		36,577,192		36,296,003

Options to purchase 114,540 shares of common stock that were outstanding for the six months ended June 30, 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 no options to purchase shares of common stock excluded from the computation of diluted earnings for the quarter ended June 30, 2022 and for the quarter and six months ended June 30, 2021.

9. Stock Compensation

The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was adopted by the Board of Directors on March 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 2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to 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.

Stock compensation expense was approximately $2.1 million and $0.7 million for the quarters ended June 30, 2022 and 2021, respectively and $3.9 million and $1.8 million for the six months ended June 30, 2022 and 2021, respectively. These expenses are included in Selling, General and Administrative expenses. Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at June 30, 2022 was approximately $11.6 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.

14

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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”) 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 Company 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 and thus may be able to recover a portion of the estimated costs; however, as of June 30, 2022, Buckhorn has not recognized potential recovery in its condensed consolidated financial statements.

As part of the Notice Letter in 2015, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine from 1993 through February 2014. In December 2020, the 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 continuing to evaluate and negotiate this claim with the EPA.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, Buckhorn has recognized $12.4 million of costs, of which approximately $3.2 million has been paid through June 30, 2022, net of 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 $0.6 million and $1.3 million were recorded related to the New Idria Mine for the quarter and six months ended June 30, 2022, primarily related to updated estimates of the cost to perform the RI/FS. No expenses were recorded for the quarter and six months ended June 30, 2021. As of June 30, 2022, Buckhorn has a total reserve of $9.2 million related to the New Idria Mine, of which $1.1 million is classified in Other Current Liabilities and $8.1 million in Other Liabilities (long-term).

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of Buckhorn’s liability are based on current facts, laws, regulations and technology. Estimates of Buckhorn’s environmental liabilities are further subject to uncertainties regarding 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.

At this time, Buckhorn has not accrued for remediation costs in connection with this site 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.

15

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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. The latest estimates received in 2016 from the County provided for an expanded scope and revised the estimate of total costs for implementing the project to between $3.3 million and $4.4 million. No costs were incurred related to New Almaden in the quarters ended June 30, 2022 or 2021. As of June 30, 2022, the Company has a total reserve of $1.5 million related to the New Almaden Mine, of which $0.3 million is classified in Other Current Liabilities and $1.2 million in Other Liabilities (long-term).

The project has not yet been implemented though significant work on design and planning has been performed. The Company is currently awaiting notice from Santa Clara County on the expected timing of fieldwork to 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.

Patent 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. Initial discovery has concluded. The trial on patent infringement and invalidity is scheduled for March 2023.

The Scepter companies intend to continue defending themselves vigorously in this matter. Based on available information, an unfavorable outcome is not considered to be probable, and any possible losses from an adverse outcome are not reasonably estimable.

11. Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

	June 30,		December 31,
	2022		2021
Loan Agreement	$	66,000	$	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
		104,000		91,000
Less unamortized deferred financing costs		44		55
		103,956		90,945
Less current portion long-term debt		—		—
Long-term debt	$	103,956	$	90,945

16

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

In March 2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement (collectively, the “Loan Agreement”) dated March 2017. The Sixth Amendment increased the senior revolving credit facility’s borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the 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 incurred $1.1 million of deferred financing fees, which are included in Other Assets (long-term).

As of June 30, 2022, the Company had $178.3 million available under the Loan Agreement. The Company had $5.7 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of 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 June 30, 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 the Company’s long-term debt was 3.97% and 5.13% for the quarters ended June 30, 2022 and 2021, respectively, and 4.05% and 5.23% for the six months ended June 30, 2022 and 2021, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs.

As of June 30, 2022, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted) and an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense).

12. Income Taxes

The Company’s effective tax rate was 26.0% and 25.7% for the quarter and six months ended June 30, 2022 compared to 25.5% and 25.7% for the quarter and six months ended June 30, 2021. The effective income tax rate for both periods was different than the Company’s statutory rate, primarily due to state taxes and non-deductible expenses.

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $0.8 million at June 30, 2022 and December 31, 2021.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of June 30, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 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 June 30, 2022. The Company is subject to state and local examinations for tax years of 2017 through 2020. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2016 through 2021.

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 of use 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).

17

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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:

		June 30,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	29,052	$	29,285
Finance lease assets	Property, plant and equipment, net		9,420		9,765
Total lease assets		$	38,472	$	39,050
Liabilities:
Current	Operating lease liability - short-term	$	5,774	$	5,341
Long-term	Operating lease liability - long-term		23,242		23,815
Total operating lease liabilities		$	29,016	$	29,156
Current	Finance lease liability - short-term	$	509	$	500
Long-term	Finance lease liability - long-term		9,179		9,437
Total finance lease liabilities			9,688		9,937
Total lease liabilities		$	38,704	$	39,093

The components of lease expense include:

		For the Quarter Ended June 30,				For the Six Months Ended June 30,
Lease Cost	Classification	2022		2021		2022		2021
Operating lease cost (1)	Cost of sales	$	1,376	$	1,176	$	2,732	$	2,246
Operating lease cost (1)	Selling, general and administrative expenses		666		544		1,277		1,095
Finance lease cost
Amortization expense	Cost of sales		173		173		345		230
Interest expense on lease liabilities	Interest expense, net		85		89		171		119
Total lease cost		$	2,300	$	1,982	$	4,525	$	3,690

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

Supplemental cash flow information related to leases was as follows:

	For the Six Months Ended June 30,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,286	$	2,627
Operating cash flows from finance leases	$	171	$	119
Financing cash flows from finance leases	$	249	$	161
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	1,296	$	6,753
Finance leases	$	—	$	10,339

18

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Lease Term and Discount Rate	June 30, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		6.89			7.27
Finance leases		13.68			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%

Maturity of Lease Liabilities - As of June 30, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	3,390		$	420		$	3,810
2023		6,211			840			7,051
2024		4,594			861			5,455
2025		3,793			865			4,658
2026		3,319			865			4,184
After 2026		11,243			8,408			19,651
Total lease payments		32,550			12,259			44,809
Less: interest		(3,534	)		(2,571	)		(6,105	)
Present value of lease liabilities	$	29,016		$	9,688		$	38,704

(1)Represents amounts due in 2022 after June 30, 2022

The Company has operating leases for four facilities within the Material Handling Segment that are with a related party. Total right of use assets related to these related party leases were $2.8 million and $3.6 million at June 30, 2022 and December 31, 2021, respectively. Total operating lease liabilities related to these related party leases were $2.6 million and $3.4 million at June 30, 2022 and December 31, 2021, respectively. Total lease expense from these related party leases was $0.4 million in each of the quarters ended June 30, 2022 and June 30, 2021 and was $0.9 million in both the six months ended June 30, 2022 and June 30, 2021.

14. Segments

The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which 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. Intersegment sales are recorded with a reasonable margin and 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 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 and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, 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.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive 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 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 re-treaders, and government agencies. The acquisition of Mohawk, described in Note 3, is included in the Distribution Segment.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Total sales from foreign business units were approximately $13.8 million and $12.1 million for the quarters ended June 30, 2022 and 2021, respectively, and $26.4 million and $23.1 million for the six months ended June 30, 2022 and 2021, respectively.

Summarized segment detail for the quarters and six months ended June 30, 2022 and 2021 are presented in the following table:

	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Net Sales
Material Handling	$	173,090		$	137,227		$	349,726		$	267,120
Distribution		60,075			50,156			108,936			94,706
Inter-company sales		(9	)		(14	)		(20	)		(28	)
Total net sales	$	233,156		$	187,369		$	458,642		$	361,798
Operating income
Material Handling (1)	$	28,034		$	17,902		$	59,254		$	34,829
Distribution (2)		4,269			4,214			7,570			5,652
Corporate (2)		(9,686	)		(6,247	)		(19,802	)		(13,747	)
Total operating income		22,617			15,869			47,022			26,734
Interest expense, net		(1,211	)		(999	)		(2,358	)		(1,994	)
Income before income taxes	$	21,406		$	14,870		$	44,664		$	24,740

(1)In the quarter and six months ended June 30, 2021, the Company recognized a $1.0 million gain on the sale of a building within the Material Handling Segment as described in Note 4.

(2)In the six months ended June 30, 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.

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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, metal 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 and six months ended June 30, 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.

21

Results of Operations:

Comparison of the Quarter Ended June 30, 2022 to the Quarter Ended June 30, 2021

Net Sales:

(dollars in millions)	Quarter Ended June 30,
Segment	2022			2021			Change		% Change
Material Handling	$	173,090		$	137,227		$	35,863		26.1	%
Distribution		60,075			50,156			9,919		19.8	%
Inter-company sales		(9	)		(14	)		5
Total net sales	$	233,156		$	187,369		$	45,787		24.4	%

Net sales for the quarter ended June 30, 2022 were $233.2 million, an increase of $45.8 million or 24.4% compared to the quarter ended June 30, 2021. Net sales increased due to higher pricing of $31.9 million. Net sales also increased due to $16.4 million of incremental sales from the acquisitions of Mohawk on May 31, 2022, included in the Distribution Segment, and Trilogy on July 30, 2021, included in the Material Handling Segment. Mohawk's annual sales were approximately $65 million and Trilogy’s annual sales were approximately $35 million at the times of their acquisitions. The increase in net sales was partially offset by lower volume/mix of $2.0 million and the effect of unfavorable currency translation of $0.5 million. Beginning in February 2021, the Company began to implement a series of 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 $35.9 million or 26.1% for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021. Net sales increased due to higher pricing of $27.1 million and due to $10.3 million of incremental sales from the acquisition of Trilogy on July 30, 2021. The increase in net sales was partially offset by lower volume/mix of $1.0 million and the effect of unfavorable currency translation of $0.5 million.

Net sales in the Distribution Segment increased $9.9 million or 19.8% for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021, primarily due to higher pricing of $4.8 million and due to $6.0 million of incremental sales from the acquisition of Mohawk on May 31, 2022. The increase in net sales was partially offset by lower volume/mix of $0.9 million.

Cost of Sales & Gross Profit:

	Quarter Ended June 30,
(dollars in millions)	2022			2021			Change		% Change
Cost of sales	$	158,440		$	132,375		$	26,065		19.7	%
Gross profit	$	74,716		$	54,994		$	19,722		35.9	%
Gross profit as a percentage of sales		32.0	%		29.4	%

Gross profit increased $19.7 million, or 35.9%, for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021, due to increased contribution from higher pricing as described under Net Sales above and the acquisitions of Mohawk on May 31, 2022 and Trilogy on July 30, 2021. Partially offsetting these contributions were increased labor costs and an unfavorable sales mix. As a result, gross profit margin was 32.0% for the quarter ended June 30, 2022 compared with 29.4% for the quarter ended June 30, 2021.

Selling, General and Administrative Expenses:

	Quarter Ended June 30,
(dollars in millions)	2022			2021			Change		% Change
SG&A expenses	$	52,320		$	40,121		$	12,199		30.4	%
SG&A expenses as a percentage of sales		22.4	%		21.4	%

Selling, general and administrative (“SG&A”) expenses for the quarter ended June 30, 2022 were $52.3 million, an increase of $12.2 million or 30.4% compared to the same period in the prior year. Increases in SG&A expenses in the second quarter 2022 were primarily due to $4.8 million of higher salaries, benefits and incentive compensation, $2.2 million of higher variable selling expenses, $1.0 million of higher facility costs, $0.9 million of increased professional services fees and $2.6 million of incremental SG&A from the acquisitions of Mohawk on May 31, 2022 and Trilogy on July 30, 2021.

22

Net Interest Expense:

	Quarter Ended June 30,
(dollars in millions)	2022			2021			Change		% Change
Net interest expense	$	1,211		$	999		$	212		21.2	%
Average outstanding borrowings, net	$	115,110		$	72,469		$	42,641		58.8	%
Weighted-average borrowing rate		3.97	%		5.13	%

Net interest expense for the quarter ended June 30, 2022 was $1.2 million, an increase of $0.2 million, or 21.2%, compared with $1.0 million for the quarter ended June 30, 2021. The higher net interest expense was due to higher average outstanding borrowings in the current year, partially offset by the lower borrowing rate.

Income Taxes:

	Quarter Ended June 30,
(dollars in millions)	2022			2021
Income from continuing operations before income taxes	$	21,406		$	14,870
Income tax expense	$	5,575		$	3,795
Effective tax rate		26.0	%		25.5	%

The Company’s effective tax rate was 26.0% for the quarter ended June 30, 2022, compared to 25.5% for the quarter ended June 30, 2021. The increase in the effective tax rate was driven primarily by higher estimated non-deductible expenses.

Comparison of the Six Months Ended June 30, 2022 to the Six Months Ended June 30, 2021

Net Sales:

(dollars in thousands)	Six Months Ended June 30,
Segment	2022			2021			Change		% Change
Material Handling	$	349,726		$	267,120		$	82,606		30.9	%
Distribution		108,936			94,706			14,230		15.0	%
Inter-company elimination		(20	)		(28	)		8
Total net sales	$	458,642		$	361,798		$	96,844		26.8	%

Net sales for the six months ended June 30, 2022 were $458.6 million, an increase of $96.8 million or 26.8% compared to the six months ended June 30, 2021. Net sales increased due to higher pricing of $65.5 million and higher volume/mix of $4.6 million. Net sales also increased due to $27.2 million of incremental sales from the acquisitions of Mohawk on May 31, 2022, included in the Distribution Segment, and Trilogy on July 30, 2021, included in the Material Handling Segment. Mohawk's annual sales were approximately $65 million and Trilogy’s annual sales were approximately $35 million at the times of the acquisitions. The increase in net sales was partially offset by the effect of unfavorable currency translation of $0.5 million. Beginning in February 2021, the Company began to implement a series of 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 $82.6 million or 30.9% for the six months ended June 30, 2022 compared to the six months ended June 30, 2021. Net sales increased due to higher pricing of $56.4 million and higher volume/mix of $5.5 million. Net sales also increased due to $21.2 million of incremental sales from the acquisition of Trilogy on July 30, 2021. The increase in net sales was partially offset by the effect of unfavorable currency translation of $0.5 million.

Net sales in the Distribution Segment increased $14.2 million or 15.0% for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, primarily due to higher pricing of $9.1 million and due to $6.0 million of incremental sales from the acquisition of Mohawk on May 31, 2022. The increase in net sales was partially offset by lower volume/mix of $0.9 million.

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Cost of Sales & Gross Profit:

	Six Months Ended June 30,
(dollars in thousands)	2022			2021			Change		% Change
Cost of sales	$	311,998		$	256,391		$	55,607		21.7	%
Gross profit	$	146,644		$	105,407		$	41,237		39.1	%
Gross profit as a percentage of sales		32.0	%		29.1	%

Gross profit increased $41.2 million, or 39.1%, for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, due to increased contribution from higher pricing and volume as described under Net Sales above and the acquisitions of Mohawk on May 31, 2022 and Trilogy on July 30, 2021. Partially offsetting these contributions were higher raw material costs, increased labor costs, and unfavorable sales mix. As a result, gross profit margin was 32.0% for the six months ended June 30, 2022 compared with 29.1% for the six months ended June 30, 2021.

Selling, General and Administrative Expenses:

	Six Months Ended June 30,
(dollars in thousands)	2022			2021			Change		% Change
SG&A expenses	$	100,310		$	79,669		$	20,641		25.9	%
SG&A expenses as a percentage of sales		21.9	%		22.0	%

Selling, general and administrative (“SG&A”) expenses for the six months ended June 30, 2022 were $100.3 million, an increase of $20.6 million or 25.9% compared to the same period in the prior year. Increases in SG&A expenses in 2022 were primarily due to $9.5 million of higher salaries, benefits and incentive compensation, $3.4 million of higher variable selling expenses, $2.3 million of higher facility costs, $1.2 million of increased professional services fees and $3.7 million of incremental SG&A from the acquisitions of Mohawk on May 31, 2022 and Trilogy on July 30, 2021.

Net Interest Expense:

	Six Months Ended June 30,
(dollars in thousands)	2022			2021			Change		% Change
Net interest expense	$	2,358		$	1,994		$	364		18.3	%
Average outstanding borrowings, net	$	110,507		$	73,148		$	37,359		51.1	%
Weighted-average borrowing rate		4.05	%		5.23	%

Net interest expense for the six months ended June 30, 2022 was $2.4 million, an increase of $0.4 million, or 18.3%, compared with $2.0 million for the six months ended June 30, 2021. The higher net interest expense was due to higher average outstanding borrowings in the current year, partially offset by the lower borrowing rate.

Income Taxes:

	Six Months Ended June 30,
(dollars in thousands)	2022			2021
Income from continuing operations before income taxes	$	44,664		$	24,740
Income tax expense	$	11,496		$	6,360
Effective tax rate		25.7	%		25.7	%

The Company’s effective tax rate was 25.7% for both the six months ended June 30, 2022 and 2021.

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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 June 30, 2022, the Company had $22.4 million of cash, $178.3 million available under the Loan Agreement and outstanding debt of $113.6 million, including the finance lease liability of $9.7 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. 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

Net cash provided by operating activities was $34.3 million for the six months ended June 30, 2022, compared to $21.3 million in the same period in 2021. The increase was primarily due to higher net income in the current year partially offset by higher working capital driven by increases in accounts receivable and inventory.

Investing Activities

Net cash used by investing activities was $33.7 million for the six months ended June 30, 2022 compared to cash used of $6.6 million for the same period in 2021. In 2022, the Company paid $24.3 million to acquire Mohawk and estimates approximately $3.4 million of working capital and other adjustments to be paid in the balance of 2022 as discussed in Note 3. The Company also received in 2022 proceeds of $1.5 million from the sale of fixed assets. In 2021, the Company paid the working capital adjustment of $1.2 million related to the November 10, 2020 acquisition of Elkhart Plastics as discussed in Note 3 and received proceeds from the sale of a facility of $2.8 million as discussed in Note 4. Capital expenditures were $10.9 million and $8.2 million for the six months ended June 30, 2022 and 2021, respectively, including $1.4 million to purchase the manufacturing assets of a rotational molding facility in Decatur, Georgia. Full year 2022 capital expenditures are expected to be approximately $25 million to $28 million.

Financing Activities

Cash provided by financing activities was $4.3 million for the six months ended June 30, 2022 compared to $29.5 million used for financing activities for the same period in 2021. Net borrowings on the credit facility for the six months ended June 30, 2022 and 2021 were $13.0 million and $19.9 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 $1.8 million and $2.4 million for the six months ended June 30, 2022 and 2021, respectively. The Company also used cash to pay dividends of $9.9 million and $9.8 million for the six months ended June 30, 2022 and 2021, respectively.

Credit Sources

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

As of June 30, 2022, $178.3 million was available under the Loan Agreement, after borrowings and $5.7 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of 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 June 30, 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 $12.0 million mature on January 15, 2026.

25

As of June 30, 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 June 30, 2022 are shown in the following table:

	Required Level	Actual Level
Interest Coverage Ratio	3.00 to 1 (minimum)		22.31
Leverage Ratio	3.25 to 1 (maximum)		1.17

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

The Company has certain financing arrangements that require interest payments based on floating interest 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. 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 June 30, 2022, if market interest rates increase one percent, the Company’s annual variable interest expense would increase approximately $0.7 million.

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. 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 that are denominated in U.S. dollars. The net exposure generally ranges from $1 million to $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 Condensed Consolidated Statements of 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 June 30, 2022, the Company had no foreign currency arrangements or contracts in place.

Commodity Price Risk

The Company uses certain commodity raw materials, primarily plastic resins, and other commodities, such as natural gas, in its operations. The cost of operations can be affected by changes in the market for these commodities, particularly plastic resins. The Company currently has no derivative contracts to hedge changes in raw material pricing. The Company may from time to time enter into forward buy positions for certain utility costs, which were not material at June 30, 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 SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Interim 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 Interim 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 Interim Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2022.

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Changes in Internal Control Over Financial Reporting

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

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 June 30, 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 six months ended June 30, 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, 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 June 30, 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)
4/1/2022 to 4/30/2022		—	$	—		5,547,665		2,452,335
5/1/2022 to 5/31/2022		—		—		5,547,665		2,452,335
6/1/2022 to 6/30/2022		—		—		5,547,665		2,452,335

(1)On July 11, 2013, the Board authorized the repurchase of up to 5.0 million shares of 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.

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Item 6. Exhibits

3.1	Myers Industries, Inc. Second Amended and Restated Articles of Incorporation. Reference is made to Exhibit 3.1 to Form 8-K filed with the SEC on April 29, 2021.
3.2	Myers Industries, Inc. Amended and Restated Code of Regulations. Reference is made to Exhibit 3.2 to Form 8-K filed with the SEC on April 29, 2021.
31.1	Certification of 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 Monica P. Vinay, Interim Chief Financial Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Michael P. McGaugh, President and Chief Executive Officer, and Monica P. Vinay, Interim Chief Financial Officer, 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 June 30, 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 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).

28

SIGNATURE

Pursuant to the requirements 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.
August 2, 2022	/s/ Monica P. Vinay
	Monica P. Vinay
	Interim Chief Financial Officer (Principal Financial and Accounting Officer)

29

EX-31.1

Exhibit 31.1

Certification Per Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael P. McGaugh, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Myers Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 2, 2022	/s/ Michael P. McGaugh
		Michael P. McGaugh, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Per Section 302 of the Sarbanes-Oxley Act of 2002

I, Monica P. Vinay, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Myers Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 2, 2022	/s/ Monica P. Vinay
		Monica P. Vinay, Interim Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Myers Industries, Inc. (the Company) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Michael P. McGaugh, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:

(1) The Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2022 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	August 2, 2022	/s/ Michael P. McGaugh
		Michael P. McGaugh, President and Chief Executive Officer

Exhibit 32.1

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Myers Industries, Inc. (the Company) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Monica P. Vinay, Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:

(1) The Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2022 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	August 2, 2022	/s/ Monica P. Vinay
		Monica P. Vinay, Interim Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Entity Registrant Name	Myers Industries, Inc.
Entity Central Index Key	0000069488
Trading Symbol	MYE
Document Type	10-Q
Document Period End Date	Jun. 30, 2022
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		36,468,481
Entity File Number	001-08524
Entity Tax Identification Number	34-0778636
Entity Address, Address Line One	1293 South Main Street
Entity Address, City or Town	Akron
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44301
City Area Code	330
Local Phone Number	253-5592
Entity Incorporation, State or Country Code	OH
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, without par value
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net sales	$ 233,156	$ 187,369	$ 458,642	$ 361,798
Cost of sales	158,440	132,375	311,998	256,391
Gross profit	74,716	54,994	146,644	105,407
Selling, general and administrative expenses	52,320	40,121	100,310	79,669
Gain on disposal of fixed assets	(221)	(996)	(688)	(996)
Operating income	22,617	15,869	47,022	26,734
Interest expense, net	1,211	999	2,358	1,994
Income before income taxes	21,406	14,870	44,664	24,740
Income tax expense	5,575	3,795	11,496	6,360
Net income	$ 15,831	$ 11,075	$ 33,168	$ 18,380
Net income per common share:
Basic	$ 0.43	$ 0.31	$ 0.91	$ 0.51
Diluted	$ 0.43	$ 0.30	$ 0.91	$ 0.51

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 15,831	$ 11,075	$ 33,168	$ 18,380
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,179)	470	(609)	881
Total other comprehensive income	(1,179)	470	(609)	881
Comprehensive income	$ 14,652	$ 11,545	$ 32,559	$ 19,261

XML

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash	$ 22,434	$ 17,655
Accounts receivable, less allowances of $3,245 and $3,229, respectively	132,002	100,691
Income tax receivable	0	2,517
Inventories, net	108,902	93,551
Prepaid expenses and other current assets	11,301	5,500
Total Current Assets	274,639	219,914
Property, plant, and equipment, net	94,945	92,049
Right of use asset - operating leases	29,052	29,285
Goodwill	96,093	88,778
Intangible assets, net	55,081	50,181
Deferred income taxes	106	106
Other	4,096	4,236
Total Assets	554,012	484,549
Current Liabilities
Accounts payable	104,314	81,690
Accrued employee compensation	22,200	21,616
Income taxes payable	3,085	0
Accrued taxes payable, other than income taxes	2,482	2,759
Accrued interest	929	966
Other current liabilities	20,758	19,628
Operating lease liability - short-term	5,774	5,341
Finance lease liability - short-term	509	500
Total Current Liabilities	160,051	132,500
Long-term debt	103,956	90,945
Operating lease liability - long-term	23,242	23,815
Finance lease liability - long-term	9,179	9,437
Other liabilities	13,863	13,086
Deferred income taxes	6,463	5,441
Total Liabilities	316,754	275,224
Shareholders’ Equity
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)	0	0
Common Shares, without par value (authorized 60,000,000 shares; outstanding 36,458,306 and 36,262,259; net of treasury shares of 6,094,151 and 6,290,198, respectively)	22,304	22,172
Additional paid-in capital	311,939	306,720
Accumulated other comprehensive loss	(16,010)	(15,401)
Retained deficit	(80,975)	(104,166)
Total Shareholders’ Equity	237,258	209,325
Total Liabilities and Shareholders’ Equity	$ 554,012	$ 484,549

XML

Condensed Consolidated Statements of Financial Position (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Allowance for doubtful accounts receivable, current	$ 2,640	$ 3,229
Shareholders’ Equity
Preferred Shares, shares authorized (in shares)	1,000,000	1,000,000
Preferred Shares, shares issued (in shares)	0	0
Preferred Shares, shares outstanding (in shares)	0	0
Common Shares, shares authorized (in shares)	60,000,000	60,000,000
Common Shares, shares outstanding (in shares)	36,458,306	36,262,259
Common shares, treasury (in shares)	6,094,151	6,290,198

XML

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Shares [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Deficit [Member]
Beginning balance at Dec. 31, 2020	$ 189,100	$ 21,939	$ 300,852	$ (15,773)	$ (117,918)
Stockholders' Equity [Roll Forward]
Net income	18,380	0	0	0	18,380
Foreign currency translation adjustment	881	0	0	881	0
Shares issued under incentive plans, net of shares withheld for tax	1,672	170	1,502	0	0
Stock compensation expense	1,829	0	1,829	0	0
Declared dividends	(9,881)	0	0	0	(9,881)
Ending balance at Jun. 30, 2021	201,981	22,109	304,183	(14,892)	(109,419)
Beginning balance at Mar. 31, 2021	194,253	22,054	303,127	(15,362)	(115,566)
Stockholders' Equity [Roll Forward]
Net income	11,075	0	0	0	11,075
Foreign currency translation adjustment	470	0	0	470	0
Shares issued under incentive plans, net of shares withheld for tax	435	55	380	0	0
Stock compensation expense	676	0	676	0	0
Declared dividends	(4,928)	0	0	0	(4,928)
Ending balance at Jun. 30, 2021	201,981	22,109	304,183	(14,892)	(109,419)
Beginning balance at Dec. 31, 2021	209,325	22,172	306,720	(15,401)	(104,166)
Stockholders' Equity [Roll Forward]
Net income	33,168	0	0	0	33,168
Foreign currency translation adjustment	(609)	0	0	(609)	0
Shares issued under incentive plans, net of shares withheld for tax	1,491	132	1,359	0	0
Stock compensation expense	3,860	0	3,860	0	0
Declared dividends	(9,977)	0	0	0	(9,977)
Ending balance at Jun. 30, 2022	237,258	22,304	311,939	(16,010)	(80,975)
Beginning balance at Mar. 31, 2022	224,138	22,225	308,521	(14,831)	(91,777)
Stockholders' Equity [Roll Forward]
Net income	15,831	0	0	0	15,831
Foreign currency translation adjustment	(1,179)	0	0	(1,179)	0
Shares issued under incentive plans, net of shares withheld for tax	1,364	79	1,285	0	0
Stock compensation expense	2,133	0	2,133	0	0
Declared dividends	(5,029)	0	0	0	(5,029)
Ending balance at Jun. 30, 2022	$ 237,258	$ 22,304	$ 311,939	$ (16,010)	$ (80,975)

XML

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Retained Deficit [Member]
Dividends declared per share	$ 0.135	$ 0.135	$ 0.27	$ 0.27

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows From Operating Activities
Net income	$ 33,168	$ 18,380
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization	10,683	10,752
Non-cash stock-based compensation expense	3,860	1,829
Gain on disposal of fixed assets	(688)	(996)
Other	698	(907)
Cash flows provided by (used for) working capital
Accounts receivable	(21,200)	(15,250)
Inventories	(7,259)	(13,411)
Prepaid expenses and other current assets	(5,702)	(4,814)
Accounts payable and accrued expenses	20,739	25,718
Net cash provided by (used for) operating activities	34,299	21,301
Cash Flows From Investing Activities
Capital expenditures	(10,943)	(8,220)
Acquisition of business, net of cash acquired	(24,253)	(1,223)
Proceeds from sale of property, plant and equipment	1,499	2,848
Net cash provided by (used for) investing activities	(33,697)	(6,595)
Cash Flows From Financing Activities
Net borrowings from revolving credit facility	13,000	19,900
Repayments of long-term debt	0	(40,000)
Payments on finance lease	(249)	(161)
Cash dividends paid	(9,934)	(9,809)
Proceeds from issuance of common stock	1,838	2,420
Shares withheld for employee taxes on equity awards	(347)	(748)
Deferred financing fees	0	(1,095)
Net cash provided by (used for) financing activities	4,308	(29,493)
Foreign exchange rate effect on cash	(131)	29
Net increase (decrease) in cash	4,779	(14,758)
Cash at January 1	17,655	28,301
Cash at June 30	$ 22,434	$ 13,543

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

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 accounting principles generally accepted 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, 2021.

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 June 30, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2022.

Accounting Standards Not Yet Adopted

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the Company, this ASU is effective January 1, 2023. Early adoption is permitted. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The effect of adopting this guidance will depend on the contract assets and liabilities associated with any future acquisitions.

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments 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 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 June 30, 2022 and December 31, 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $38.3 million and $41.0 million, respectively.

The purchase price allocations associated with the May 31, 2022 acquisition of Mohawk Rubber Sales of New England Inc. ("Mohawk") and the July 30, 2021 acquisition of Trilogy Plastics, Inc. (“Trilogy”), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.

Accumulated Other Comprehensive Income (Loss)

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

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)
Other comprehensive income (loss) before reclassifications		(1,179	)		—			(1,179	)
Net current-period other comprehensive income (loss)		(1,179	)		—			(1,179	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)
Other comprehensive income (loss) before reclassifications		470			—			470
Net current-period other comprehensive income (loss)		470			—			470
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		(609	)		—			(609	)
Net current-period other comprehensive income (loss)		(609	)		—			(609	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		881			—			881
Net current-period other comprehensive income (loss)		881			—			881
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the 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 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 six months ended June 30, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		(110	)		504
Write-offs and other		(302	)		(336	)
Balance at June 30	$	1,761		$	2,503

XML

Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue Recognition

2. Revenue Recognition

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

	For the Quarter Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	34,589	$	—	$	—		$	34,589
Vehicle		48,101		—		—			48,101
Food and beverage		23,154		—		—			23,154
Industrial		67,246		—		(9	)		67,237
Auto aftermarket		—		60,075		—			60,075
Total net sales	$	173,090	$	60,075	$	(9	)	$	233,156

	For the Quarter Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	37,312	$	—	$	—		$	37,312
Vehicle		41,437		—		—			41,437
Food and beverage		16,399		—		—			16,399
Industrial		42,079		—		(14	)		42,065
Auto aftermarket		—		50,156		—			50,156
Total net sales	$	137,227	$	50,156	$	(14	)	$	187,369

	For the Six Months Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	66,513	$	—	$	—		$	66,513
Vehicle		95,878		—		—			95,878
Food and beverage		57,834		—		—			57,834
Industrial		129,501		—		(20	)		129,481
Auto aftermarket		—		108,936		—			108,936
Total net sales	$	349,726	$	108,936	$	(20	)	$	458,642

	For the Six Months Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	62,707	$	—	$	—		$	62,707
Vehicle		83,629		—		—			83,629
Food and beverage		37,816		—		—			37,816
Industrial		82,968		—		(28	)		82,940
Auto aftermarket		—		94,706		—			94,706
Total net sales	$	267,120	$	94,706	$	(28	)	$	361,798

Revenue is recognized when obligations under the terms of 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 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 normal course of business and as part of 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) related to revenue recognition include:

	June 30,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(879	)	$	(1,056	)	Accounts receivable
Right of return asset	$	346		$	361		Inventories, net
Customer deposits	$	(1,295	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(3,609	)	$	(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 transferred to the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.9 million and $2.3 million for the quarters ended June 30, 2022 and 2021, respectively, and $7.1 million and $4.8 million for the six months ended June 30, 2022 and 2021, respectively, and in Cost of sales were approximately $2.4 million and $1.9 million for the quarters ended June 30, 2022 and 2021 and $4.0 million and $3.5 million for the six months ended June 30, 2022 and 2021, respectively.

Based on the 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 context of the contract, are recognized as expense as incurred.

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Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Acquisitions

3. Acquisitions

Mohawk

On May 31, 2022, the Company acquired the assets of Mohawk Rubber Sales of New England, Inc. ("Mohawk"), a leading auto aftermarket distributor, which is included in the Distribution Segment. The Mohawk acquisition aligns with the Company's long-term objective to optimize and grow its Distribution business. Cash consideration was $24.3 million, net of $1.1 million of cash acquired. The Company estimated additional consideration payable of approximately $3.4 million, subject to finalization of working capital and other adjustments. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 11.

The acquisition of Mohawk 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. The purchase accounting will be finalized within one year from the acquisition date.

Assets acquired:
Accounts receivable	$	10,137
Inventories		8,209
Prepaid expenses		104
Other assets - long term		30
Property, plant and equipment		1,432
Right of use asset - operating leases		1,367
Intangible assets		7,720
Goodwill		7,485
Assets acquired	$	36,484
Liabilities assumed:
Accounts payable	$	5,996
Accrued expenses		1,414
Operating lease liability - short term		399
Operating lease liability - long term		968
Total liabilities assumed		8,777
Net acquisition cost	$	27,707

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	$	5,400	12.0 years
Trade name		2,000	5.0 years
Non-competition agreements		320	5.0 years
Total amortizable intangible assets	$	7,720

Trilogy Plastics

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and 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 Loan Agreement described in Note 11.

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 six months ended June 30, 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.

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Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

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 2021, the sale of the original facility for net proceeds of $2.8 million was completed, which resulted in a 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 June 30, 2022 to complete it for its full intended use, including moving equipment into the new Bristol facility from other locations, such as from the former manufacturing facility in Cassopolis, Michigan that was closed at December 31, 2021.

The Ameri-Kart Plan is expected to be substantially completed in 2022 and total restructuring costs expected to be incurred are approximately $1.8 million, primarily related to equipment relocation and facility shut down costs, which due to their nature will be expensed when incurred. The Company incurred $0.4 million of restructuring charges classified as Cost of sales for the six months ended June 30, 2022 and $0.3 million related to loss on disposal of fixed assets during the six months ended June 30, 2022. The accrual for unpaid restructuring expenses at December 31, 2021 was $0.5 million and no balance was accrued at June 30, 2022. No restructuring charges were incurred during the quarter ended June 30, 2022 and the quarter and six months ended June 30, 2021.

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Inventories

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

5. Inventories

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 40 percent of inventories are valued using the LIFO method of determining cost. All other inventories are valued using 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 be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to 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. No adjustment to the LIFO reserve was recorded for the quarters ended June 30, 2022 or 2021.

Inventories consisted of the following:

	June 30,		December 31,
	2022		2021
Finished and in-process products	$	69,584	$	56,684
Raw materials and supplies		39,318		36,867
	$	108,902	$	93,551

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Other Liabilities

6 Months Ended

Jun. 30, 2022

Other Liabilities Disclosure [Abstract]

Other Liabilities

6. Other Liabilities

The balance in Other Current Liabilities is comprised of the following:

	June 30,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,904	$	5,194
Dividends payable		5,485		5,441
Accrued litigation, claims and professional fees		1,060		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,880		6,787
	$	20,758	$	19,628

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

	June 30,		December 31,
	2022		2021
Environmental reserves	$	9,238	$	8,298
Supplemental executive retirement plan liability		1,031		1,176
Pension liability		258		421
Other long-term liabilities		3,336		3,191
	$	13,863	$	13,086

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

The change in goodwill for the six months ended June 30, 2022 was as follows:

	Distribution		Material Handling			Total
January 1, 2022	$	7,648	$	81,130		$	88,778
Acquisition		7,485		—			7,485
Foreign currency translation		—		(170	)		(170	)
June 30, 2022	$	15,133	$	80,960		$	96,093

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 useful lives. Indefinite-lived trade names had a carrying value of $9.8 million at both June 30, 2022 and December 31, 2021. Refer to Note 3 for the intangible assets acquired through the Mohawk acquisition in May 2022 and the Trilogy acquisition in July 2021.

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Net Income per Common Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Net Income per Common Share

8. Net Income per Common Share

Net income 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 Quarter Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Weighted average common shares outstanding basic		36,397,547		36,122,792		36,338,907		36,058,061
Dilutive effect of stock options and restricted stock		225,948		213,656		238,285		237,942
Weighted average common shares outstanding diluted		36,623,495		36,336,448		36,577,192		36,296,003

Options to purchase 114,540 shares of common stock that were outstanding for the six months ended June 30, 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 no options to purchase shares of common stock excluded from the computation of diluted earnings for the quarter ended June 30, 2022 and for the quarter and six months ended June 30, 2021.

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Stock Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock Compensation

9. Stock Compensation

The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was adopted by the Board of Directors on March 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 2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to 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.

Stock compensation expense was approximately $2.1 million and $0.7 million for the quarters ended June 30, 2022 and 2021, respectively and $3.9 million and $1.8 million for the six months ended June 30, 2022 and 2021, respectively. These expenses are included in Selling, General and Administrative expenses. Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at June 30, 2022 was approximately $11.6 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.

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Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

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”) 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 Company 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 and thus may be able to recover a portion of the estimated costs; however, as of June 30, 2022, Buckhorn has not recognized potential recovery in its condensed consolidated financial statements.

As part of the Notice Letter in 2015, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine from 1993 through February 2014. In December 2020, the 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 continuing to evaluate and negotiate this claim with the EPA.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, Buckhorn has recognized $12.4 million of costs, of which approximately $3.2 million has been paid through June 30, 2022, net of 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 $0.6 million and $1.3 million were recorded related to the New Idria Mine for the quarter and six months ended June 30, 2022, primarily related to updated estimates of the cost to perform the RI/FS. No expenses were recorded for the quarter and six months ended June 30, 2021. As of June 30, 2022, Buckhorn has a total reserve of $9.2 million related to the New Idria Mine, of which $1.1 million is classified in Other Current Liabilities and $8.1 million in Other Liabilities (long-term).

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of Buckhorn’s liability are based on current facts, laws, regulations and technology. Estimates of Buckhorn’s environmental liabilities are further subject to uncertainties regarding 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.

At this time, Buckhorn has not accrued for remediation costs in connection with this site 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. The latest estimates received in 2016 from the County provided for an expanded scope and revised the estimate of total costs for implementing the project to between $3.3 million and $4.4 million. No costs were incurred related to New Almaden in the quarters ended June 30, 2022 or 2021. As of June 30, 2022, the Company has a total reserve of $1.5 million related to the New Almaden Mine, of which $0.3 million is classified in Other Current Liabilities and $1.2 million in Other Liabilities (long-term).

The project has not yet been implemented though significant work on design and planning has been performed. The Company is currently awaiting notice from Santa Clara County on the expected timing of fieldwork to 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.

Patent 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. Initial discovery has concluded. The trial on patent infringement and invalidity is scheduled for March 2023.

The Scepter companies intend to continue defending themselves vigorously in this matter. Based on available information, an unfavorable outcome is not considered to be probable, and any possible losses from an adverse outcome are not reasonably estimable.

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Long-Term Debt and Loan Agreements

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt and Loan Agreements

11. Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

	June 30,		December 31,
	2022		2021
Loan Agreement	$	66,000	$	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
		104,000		91,000
Less unamortized deferred financing costs		44		55
		103,956		90,945
Less current portion long-term debt		—		—
Long-term debt	$	103,956	$	90,945

In March 2021, the Company entered into a Sixth Amended and Restated Loan Agreement (the “Sixth Amendment”), which amended the Fifth Amended and Restated Loan Agreement (collectively, the “Loan Agreement”) dated March 2017. The Sixth Amendment increased the senior revolving credit facility’s borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the 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 incurred $1.1 million of deferred financing fees, which are included in Other Assets (long-term).

As of June 30, 2022, the Company had $178.3 million available under the Loan Agreement. The Company had $5.7 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of 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 June 30, 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 the Company’s long-term debt was 3.97% and 5.13% for the quarters ended June 30, 2022 and 2021, respectively, and 4.05% and 5.23% for the six months ended June 30, 2022 and 2021, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs.

As of June 30, 2022, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted) and an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense).

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The Company’s effective tax rate was 26.0% and 25.7% for the quarter and six months ended June 30, 2022 compared to 25.5% and 25.7% for the quarter and six months ended June 30, 2021. The effective income tax rate for both periods was different than the Company’s statutory rate, primarily due to state taxes and non-deductible expenses.

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $0.8 million at June 30, 2022 and December 31, 2021.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of June 30, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 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 June 30, 2022. The Company is subject to state and local examinations for tax years of 2017 through 2020. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2016 through 2021.

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Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

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 of use 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:

		June 30,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	29,052	$	29,285
Finance lease assets	Property, plant and equipment, net		9,420		9,765
Total lease assets		$	38,472	$	39,050
Liabilities:
Current	Operating lease liability - short-term	$	5,774	$	5,341
Long-term	Operating lease liability - long-term		23,242		23,815
Total operating lease liabilities		$	29,016	$	29,156
Current	Finance lease liability - short-term	$	509	$	500
Long-term	Finance lease liability - long-term		9,179		9,437
Total finance lease liabilities			9,688		9,937
Total lease liabilities		$	38,704	$	39,093

The components of lease expense include:

		For the Quarter Ended June 30,				For the Six Months Ended June 30,
Lease Cost	Classification	2022		2021		2022		2021
Operating lease cost (1)	Cost of sales	$	1,376	$	1,176	$	2,732	$	2,246
Operating lease cost (1)	Selling, general and administrative expenses		666		544		1,277		1,095
Finance lease cost
Amortization expense	Cost of sales		173		173		345		230
Interest expense on lease liabilities	Interest expense, net		85		89		171		119
Total lease cost		$	2,300	$	1,982	$	4,525	$	3,690

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

Supplemental cash flow information related to leases was as follows:

	For the Six Months Ended June 30,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,286	$	2,627
Operating cash flows from finance leases	$	171	$	119
Financing cash flows from finance leases	$	249	$	161
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	1,296	$	6,753
Finance leases	$	—	$	10,339

Lease Term and Discount Rate	June 30, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		6.89			7.27
Finance leases		13.68			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%

Maturity of Lease Liabilities - As of June 30, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	3,390		$	420		$	3,810
2023		6,211			840			7,051
2024		4,594			861			5,455
2025		3,793			865			4,658
2026		3,319			865			4,184
After 2026		11,243			8,408			19,651
Total lease payments		32,550			12,259			44,809
Less: interest		(3,534	)		(2,571	)		(6,105	)
Present value of lease liabilities	$	29,016		$	9,688		$	38,704

(1)Represents amounts due in 2022 after June 30, 2022

The Company has operating leases for four facilities within the Material Handling Segment that are with a related party. Total right of use assets related to these related party leases were $2.8 million and $3.6 million at June 30, 2022 and December 31, 2021, respectively. Total operating lease liabilities related to these related party leases were $2.6 million and $3.4 million at June 30, 2022 and December 31, 2021, respectively. Total lease expense from these related party leases was $0.4 million in each of the quarters ended June 30, 2022 and June 30, 2021 and was $0.9 million in both the six months ended June 30, 2022 and June 30, 2021.

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Industry Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Industry Segments

14. Segments

The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which 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. Intersegment sales are recorded with a reasonable margin and 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 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 and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, 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.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive 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 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 re-treaders, and government agencies. The acquisition of Mohawk, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $13.8 million and $12.1 million for the quarters ended June 30, 2022 and 2021, respectively, and $26.4 million and $23.1 million for the six months ended June 30, 2022 and 2021, respectively.

Summarized segment detail for the quarters and six months ended June 30, 2022 and 2021 are presented in the following table:

	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Net Sales
Material Handling	$	173,090		$	137,227		$	349,726		$	267,120
Distribution		60,075			50,156			108,936			94,706
Inter-company sales		(9	)		(14	)		(20	)		(28	)
Total net sales	$	233,156		$	187,369		$	458,642		$	361,798
Operating income
Material Handling (1)	$	28,034		$	17,902		$	59,254		$	34,829
Distribution (2)		4,269			4,214			7,570			5,652
Corporate (2)		(9,686	)		(6,247	)		(19,802	)		(13,747	)
Total operating income		22,617			15,869			47,022			26,734
Interest expense, net		(1,211	)		(999	)		(2,358	)		(1,994	)
Income before income taxes	$	21,406		$	14,870		$	44,664		$	24,740

(1)In the quarter and six months ended June 30, 2021, the Company recognized a $1.0 million gain on the sale of a building within the Material Handling Segment as described in Note 4.

(2)In the six months ended June 30, 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.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

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 accounting principles generally accepted 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, 2021.

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 June 30, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2022.

Accounting Standards Adopted

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For the Company, this ASU is effective January 1, 2023. Early adoption is permitted. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The effect of adopting this guidance will depend on the contract assets and liabilities associated with any future acquisitions.

Fair Value Measurement

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments 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 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 June 30, 2022 and December 31, 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $38.3 million and $41.0 million, respectively.

The purchase price allocations associated with the May 31, 2022 acquisition of Mohawk Rubber Sales of New England Inc. ("Mohawk") and the July 30, 2021 acquisition of Trilogy Plastics, Inc. (“Trilogy”), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

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

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)
Other comprehensive income (loss) before reclassifications		(1,179	)		—			(1,179	)
Net current-period other comprehensive income (loss)		(1,179	)		—			(1,179	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)
Other comprehensive income (loss) before reclassifications		470			—			470
Net current-period other comprehensive income (loss)		470			—			470
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		(609	)		—			(609	)
Net current-period other comprehensive income (loss)		(609	)		—			(609	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		881			—			881
Net current-period other comprehensive income (loss)		881			—			881
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

Allowance for Credit Losses

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the 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 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.

Revenue Recognition

Revenue is recognized when obligations under the terms of 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 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 normal course of business and as part of 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.

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 of use 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.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The balances in the Company's Accumulated Other Comprehensive Income (Loss)

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

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2022	$	(13,365	)	$	(1,466	)	$	(14,831	)
Other comprehensive income (loss) before reclassifications		(1,179	)		—			(1,179	)
Net current-period other comprehensive income (loss)		(1,179	)		—			(1,179	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at April 1, 2021	$	(13,563	)	$	(1,799	)	$	(15,362	)
Other comprehensive income (loss) before reclassifications		470			—			470
Net current-period other comprehensive income (loss)		470			—			470
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2022	$	(13,935	)	$	(1,466	)	$	(15,401	)
Other comprehensive income (loss) before reclassifications		(609	)		—			(609	)
Net current-period other comprehensive income (loss)		(609	)		—			(609	)
Balance at June 30, 2022	$	(14,544	)	$	(1,466	)	$	(16,010	)

	Foreign Currency			Defined Benefit Pension Plans			Total
Balance at January 1, 2021	$	(13,974	)	$	(1,799	)	$	(15,773	)
Other comprehensive income (loss) before reclassifications		881			—			881
Net current-period other comprehensive income (loss)		881			—			881
Balance at June 30, 2021	$	(13,093	)	$	(1,799	)	$	(14,892	)

Summary of Changes in Allowance for Credit Losses

The changes in the allowance for credit losses for the six months ended June 30, 2022 and 2021 were as follows:

	2022			2021
Balance at January 1	$	2,173		$	2,335
Provision for expected credit loss, net of recoveries		(110	)		504
Write-offs and other		(302	)		(336	)
Balance at June 30	$	1,761		$	2,503

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Schedule of Revenue by Major Market

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

	For the Quarter Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	34,589	$	—	$	—		$	34,589
Vehicle		48,101		—		—			48,101
Food and beverage		23,154		—		—			23,154
Industrial		67,246		—		(9	)		67,237
Auto aftermarket		—		60,075		—			60,075
Total net sales	$	173,090	$	60,075	$	(9	)	$	233,156

	For the Quarter Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	37,312	$	—	$	—		$	37,312
Vehicle		41,437		—		—			41,437
Food and beverage		16,399		—		—			16,399
Industrial		42,079		—		(14	)		42,065
Auto aftermarket		—		50,156		—			50,156
Total net sales	$	137,227	$	50,156	$	(14	)	$	187,369

	For the Six Months Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	66,513	$	—	$	—		$	66,513
Vehicle		95,878		—		—			95,878
Food and beverage		57,834		—		—			57,834
Industrial		129,501		—		(20	)		129,481
Auto aftermarket		—		108,936		—			108,936
Total net sales	$	349,726	$	108,936	$	(20	)	$	458,642

	For the Six Months Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	62,707	$	—	$	—		$	62,707
Vehicle		83,629		—		—			83,629
Food and beverage		37,816		—		—			37,816
Industrial		82,968		—		(28	)		82,940
Auto aftermarket		—		94,706		—			94,706
Total net sales	$	267,120	$	94,706	$	(28	)	$	361,798

Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition

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

	June 30,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(879	)	$	(1,056	)	Accounts receivable
Right of return asset	$	346		$	361		Inventories, net
Customer deposits	$	(1,295	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(3,609	)	$	(3,378	)	Other current liabilities

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

Mohawk [Member]

Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed

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.

Assets acquired:
Accounts receivable	$	10,137
Inventories		8,209
Prepaid expenses		104
Other assets - long term		30
Property, plant and equipment		1,432
Right of use asset - operating leases		1,367
Intangible assets		7,720
Goodwill		7,485
Assets acquired	$	36,484
Liabilities assumed:
Accounts payable	$	5,996
Accrued expenses		1,414
Operating lease liability - short term		399
Operating lease liability - long term		968
Total liabilities assumed		8,777
Net acquisition cost	$	27,707

Summary of Intangible Assets

The intangible assets included above consist of the following:

	Fair Value		Weighted Average Estimated Useful Life
Customer relationships	$	5,400	12.0 years
Trade name		2,000	5.0 years
Non-competition agreements		320	5.0 years
Total amortizable intangible assets	$	7,720

Trilogy Plastics, Inc. [Member]

Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed

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.

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

Summary of Intangible Assets

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

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Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Summary of Determination Cost of Inventories

Inventories consisted of the following:

	June 30,		December 31,
	2022		2021
Finished and in-process products	$	69,584	$	56,684
Raw materials and supplies		39,318		36,867
	$	108,902	$	93,551

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Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

The balance in Other Current Liabilities is comprised of the following:

	June 30,		December 31,
	2022		2021
Customer deposits and accrued rebates	$	4,904	$	5,194
Dividends payable		5,485		5,441
Accrued litigation, claims and professional fees		1,060		777
Current portion of environmental reserves		1,429		1,429
Other accrued expenses		7,880		6,787
	$	20,758	$	19,628

Schedule of Other Liabilities (Long-term)

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

	June 30,		December 31,
	2022		2021
Environmental reserves	$	9,238	$	8,298
Supplemental executive retirement plan liability		1,031		1,176
Pension liability		258		421
Other long-term liabilities		3,336		3,191
	$	13,863	$	13,086

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The change in goodwill

The change in goodwill for the six months ended June 30, 2022 was as follows:

	Distribution		Material Handling			Total
January 1, 2022	$	7,648	$	81,130		$	88,778
Acquisition		7,485		—			7,485
Foreign currency translation		—		(170	)		(170	)
June 30, 2022	$	15,133	$	80,960		$	96,093

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Net Income per Common Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Weighted Average Number of Common Shares Outstanding During the Period

Net income 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 Quarter Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Weighted average common shares outstanding basic		36,397,547		36,122,792		36,338,907		36,058,061
Dilutive effect of stock options and restricted stock		225,948		213,656		238,285		237,942
Weighted average common shares outstanding diluted		36,623,495		36,336,448		36,577,192		36,296,003

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Long-Term Debt and Loan Agreements (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long Term Debt

Long-term debt consisted of the following:

	June 30,		December 31,
	2022		2021
Loan Agreement	$	66,000	$	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
		104,000		91,000
Less unamortized deferred financing costs		44		55
		103,956		90,945
Less current portion long-term debt		—		—
Long-term debt	$	103,956	$	90,945

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of Balances Included in Condensed Consolidated Statement of Financial Position (Unaudited) Related to Leases

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

		June 30,		December 31,
	Classification	2022		2021
Assets:
Operating lease assets	Right of use asset - operating leases	$	29,052	$	29,285
Finance lease assets	Property, plant and equipment, net		9,420		9,765
Total lease assets		$	38,472	$	39,050
Liabilities:
Current	Operating lease liability - short-term	$	5,774	$	5,341
Long-term	Operating lease liability - long-term		23,242		23,815
Total operating lease liabilities		$	29,016	$	29,156
Current	Finance lease liability - short-term	$	509	$	500
Long-term	Finance lease liability - long-term		9,179		9,437
Total finance lease liabilities			9,688		9,937
Total lease liabilities		$	38,704	$	39,093

Schedule of Lease Expense

The components of lease expense include:

		For the Quarter Ended June 30,				For the Six Months Ended June 30,
Lease Cost	Classification	2022		2021		2022		2021
Operating lease cost (1)	Cost of sales	$	1,376	$	1,176	$	2,732	$	2,246
Operating lease cost (1)	Selling, general and administrative expenses		666		544		1,277		1,095
Finance lease cost
Amortization expense	Cost of sales		173		173		345		230
Interest expense on lease liabilities	Interest expense, net		85		89		171		119
Total lease cost		$	2,300	$	1,982	$	4,525	$	3,690

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

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	For the Six Months Ended June 30,
Supplemental Cash Flow Information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,286	$	2,627
Operating cash flows from finance leases	$	171	$	119
Financing cash flows from finance leases	$	249	$	161
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	1,296	$	6,753
Finance leases	$	—	$	10,339

Lease Term and Discount Rate	June 30, 2022			December 31, 2021
Weighted-average remaining lease term (years):
Operating leases		6.89			7.27
Finance leases		13.68			14.17
Weighted-average discount rate:
Operating leases		3.4	%		3.4	%
Finance leases		3.5	%		3.5	%

Maturity of Operating and Finance Lease Liabilities

Maturity of Lease Liabilities - As of June 30, 2022	Operating Leases			Finance Leases			Total
2022 (1)	$	3,390		$	420		$	3,810
2023		6,211			840			7,051
2024		4,594			861			5,455
2025		3,793			865			4,658
2026		3,319			865			4,184
After 2026		11,243			8,408			19,651
Total lease payments		32,550			12,259			44,809
Less: interest		(3,534	)		(2,571	)		(6,105	)
Present value of lease liabilities	$	29,016		$	9,688		$	38,704

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Industry Segments (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Reporting Information by Segment

Summarized segment detail for the quarters and six months ended June 30, 2022 and 2021 are presented in the following table:

	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Net Sales
Material Handling	$	173,090		$	137,227		$	349,726		$	267,120
Distribution		60,075			50,156			108,936			94,706
Inter-company sales		(9	)		(14	)		(20	)		(28	)
Total net sales	$	233,156		$	187,369		$	458,642		$	361,798
Operating income
Material Handling (1)	$	28,034		$	17,902		$	59,254		$	34,829
Distribution (2)		4,269			4,214			7,570			5,652
Corporate (2)		(9,686	)		(6,247	)		(19,802	)		(13,747	)
Total operating income		22,617			15,869			47,022			26,734
Interest expense, net		(1,211	)		(999	)		(2,358	)		(1,994	)
Income before income taxes	$	21,406		$	14,870		$	44,664		$	24,740

(1)In the quarter and six months ended June 30, 2021, the Company recognized a $1.0 million gain on the sale of a building within the Material Handling Segment as described in Note 4.

(2)In the six months ended June 30, 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.

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Estimate of Fair Value, Fair Value Disclosure [Member] | Less unamortized deferred financing fees [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Notes payable, fair value disclosure	$ 38.3	$ 41.0

XML

Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 224,138,000	$ 194,253,000	$ 209,325,000	$ 189,100,000
Total other comprehensive income	(1,179,000)	470,000	(609,000)	881,000
Ending balance	237,258,000	201,981,000	237,258,000	201,981,000
Foreign Currency [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(13,365,000)	(13,563,000)	(13,935,000)	(13,974,000)
Other comprehensive income (loss) before reclassifications	(1,179,000)	470,000	(609,000)	881,000
Total other comprehensive income	(1,179,000)	470,000	(609,000)	881,000
Ending balance	(14,544,000)	(13,093,000)	(14,544,000)	(13,093,000)
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(1,466,000)	(1,799,000)	(1,466,000)	(1,799,000)
Other comprehensive income (loss) before reclassifications			0	0
Total other comprehensive income			0	0
Ending balance	(1,466,000)	(1,799,000)	(1,466,000)	(1,799,000)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(14,831,000)	(15,362,000)	(15,401,000)	(15,773,000)
Other comprehensive income (loss) before reclassifications	(1,179,000)	470,000	(609,000)	881,000
Total other comprehensive income	(1,179,000)	470,000	(609,000)	881,000
Ending balance	$ (16,010,000)	$ (14,892,000)	$ (16,010,000)	$ (14,892,000)

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Summary of Significant Accounting Policies - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Balance at January 1	$ 2,173	$ 2,335
Provision for expected credit loss, net of recoveries	(110)	504
Write-offs and other	(302)	(336)
Balance at September 30	$ 1,761	$ 2,503

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Revenue Recognition - Schedule of Revenue by Major Market (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation Of Revenue [Line Items]
Net sales	$ 233,156	$ 187,369	$ 458,642	$ 361,798
Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	173,090	137,227	349,726	267,120
Operating Segments [Member] | Distribution [Member]
Disaggregation Of Revenue [Line Items]
Net sales	60,075	50,156	108,936	94,706
Inter-company [Member]
Disaggregation Of Revenue [Line Items]
Net sales	(9)	(14)	(20)	(28)
Consumer [Member]
Disaggregation Of Revenue [Line Items]
Net sales	34,589	37,312	66,513	62,707
Consumer [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	34,589	37,312	66,513	62,707
Vehicle [Member]
Disaggregation Of Revenue [Line Items]
Net sales	48,101	41,437	95,878	83,629
Vehicle [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	48,101	41,437	95,878	83,629
Food and Beverage [Member]
Disaggregation Of Revenue [Line Items]
Net sales	23,154	16,399	57,834	37,816
Food and Beverage [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	23,154	16,399	57,834	37,816
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	67,237	42,065	129,481	82,940
Industrial [Member] | Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	67,246	42,079	129,501	82,968
Industrial [Member] | Inter-company [Member]
Disaggregation Of Revenue [Line Items]
Net sales	(9)	(14)	(20)	(28)
Auto Aftermarket [Member]
Disaggregation Of Revenue [Line Items]
Net sales	60,075	50,156	108,936	94,706
Auto Aftermarket [Member] | Operating Segments [Member] | Distribution [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 60,075	$ 50,156	$ 108,936	$ 94,706

XML

Revenue Recognition - Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts Receivable [Member]
Disaggregation Of Revenue [Line Items]
Returns, discounts and other allowances	$ (879)	$ (1,056)
Inventories, net [Member]
Disaggregation Of Revenue [Line Items]
Right of return asset	346	361
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Customer deposits	(1,295)	(1,816)
Accrued rebates	$ (3,609)	$ (3,378)

XML

Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation Of Revenue [Line Items]
Cost of sales	$ 158,440	$ 132,375	$ 311,998	$ 256,391
Selling, General and Administrative Expenses [Member]
Disaggregation Of Revenue [Line Items]
Cost of sales	3,900	2,300	7,100	4,800
Cost of Sales [Member]
Disaggregation Of Revenue [Line Items]
Cost of sales	$ 2,400	$ 1,900	$ 4,000	$ 3,500

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Acquisitions - Additional Information (Details) - USD ($) $ in Millions	May 31, 2022	Jul. 30, 2021	Nov. 10, 2020
Mohawk [Member]
Business Acquisition [Line Items]
Purchase price of acquisition	$ 24.3
Net of cash acquired	1.1
Working capital adjustment	$ 3.4
Trilogy Plastics, Inc. [Member]
Business Acquisition [Line Items]
Purchase price of acquisition		$ 34.5
Working capital adjustment		$ 0.3
Elkhart Plastics [Member]
Business Acquisition [Line Items]
Purchase price of acquisition			$ 63.8
Working capital adjustment			$ 1.2

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Acquisitions - Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2022	May 31, 2022	Dec. 31, 2021	Jul. 30, 2021
Assets acquired:
Goodwill	$ 96,093		$ 88,778
Mohawk [Member]
Assets acquired:
Accounts receivable		$ 10,137
Inventories		8,209
Prepaid expenses		104
Other assets - long term		30
Property, plant and equipment		1,432
Right of use asset - operating leases		1,367
Intangible assets		7,720
Goodwill		7,485
Assets acquired		36,484
Liabilities assumed:
Accounts payable		5,996
Accrued expenses		1,414
Operating lease liability - short term		399
Operating lease liability - long term		968
Total liabilities assumed		8,777
Net acquisition cost		$ 27,707
Trilogy Plastics, Inc. [Member]
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

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Acquisitions - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	May 31, 2022	Jul. 30, 2021
Mohawk [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 7,720
Trilogy Plastics, Inc. [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value		$ 14,333
Customer Relationships [Member] | Mohawk [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 5,400
Weighted Average Estimated Useful Life	12 years
Customer Relationships [Member] | Trilogy Plastics, Inc. [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value		$ 12,463
Weighted Average Estimated Useful Life		18 years
Trade Name [Member] | Mohawk [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 2,000
Weighted Average Estimated Useful Life	5 years
Trade Name [Member] | Trilogy Plastics, Inc. [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value		$ 1,870
Weighted Average Estimated Useful Life		10 years
Non-competition Agreements [Member] | Mohawk [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 320
Weighted Average Estimated Useful Life	5 years

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Restructuring - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Restructuring Cost And Reserve [Line Items]
Proceeds from sale of property, plant and equipment				$ 1,499,000	$ 2,848,000
Gain/loss on sale of property		$ 221,000	$ 996,000	688,000	996,000
Restructuring charges		0	0	400,000	$ 0
Ameri-Kart [Member]
Restructuring Cost And Reserve [Line Items]
Gain/loss on sale of property				300,000
Expected restructuring charges		$ 1,800,000		$ 1,800,000
Unpaid restructuring expenses						$ 500,000
Indiana [Member] | Manufacturing and Distribution [Member]
Restructuring Cost And Reserve [Line Items]
Facility lease period		15 years		15 years
Proceeds from sale of property, plant and equipment			2,800,000
Sale leaseback transaction term of contract	5 years
Gain/loss on sale of property			$ 1,000,000.0

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Inventories - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Inventories
Percentage of LIFO Inventory	40.00%
LIFO inventories, change in cost of sales	$ 0	$ 0

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Inventories - Summary of Determination Cost of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished and in-process products	$ 69,584	$ 56,684
Raw materials and supplies	39,318	36,867
Inventory net	$ 108,902	$ 93,551

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Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Customer deposits and accrued rebates	$ 4,904	$ 5,194
Dividends payable	5,485	5,441
Accrued litigation, claims and professional fees	1,060	777
Current portion of environmental reserves	1,429	1,429
Other accrued expenses	7,880	6,787
Other current liabilities, Total	$ 20,758	$ 19,628

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Other Liabilities - Schedule of Other Liabilities (Long-term) (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Environmental reserves	$ 9,238	$ 8,298
Supplemental executive retirement plan liability	1,031	1,176
Pension liability	258	421
Other long-term liabilities	3,336	3,191
Other liabilities (long-term), Total	$ 13,863	$ 13,086

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Goodwill and Intangible Assets - Change in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 88,778
Acquisition	7,485
Foreign currency translation	(170)
Ending balance	96,093
Distribution [Member]
Goodwill [Roll Forward]
Beginning balance	7,648
Acquisition	7,485
Foreign currency translation	0
Ending balance	15,133
Material Handling [Member]
Goodwill [Roll Forward]
Beginning balance	81,130
Acquisition	0
Foreign currency translation	(170)
Ending balance	$ 80,960

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Trade Names [Member]
Finite And Indefinite Lived Intangible Assets [Line Items]
Carrying value of indefinite-lived intangible assets	$ 9.8	$ 9.8

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Net Income per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Weighted average common shares outstanding basic	36,397,547	36,122,792	36,338,907	36,058,061
Dilutive effect of stock options and restricted stock (in shares)	225,948	213,656	238,285	237,942
Weighted average common shares outstanding diluted (in shares)	36,623,495	36,336,448	36,577,192	36,296,003

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Net Income per Common Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of net earnings or loss per common share	0	0	114,540	0

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Stock Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Apr. 29, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of expiration, term			10 years
Stock compensation expense	$ 2.1	$ 0.7	$ 3.9	$ 1.8
Total unrecognized compensation cost related to non-vested share based compensation arrangements	$ 11.6		$ 11.6
Unrecognized compensation cost period for recognition			3 years
2021 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for grant under plan (in shares)					2,000,000

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Contingencies - Additional Information (Details) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended		120 Months Ended	254 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2018	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2016	Sep. 30, 2021	Feb. 14, 2014	Dec. 31, 2021
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies, Revision in Estimates						$ 2,000,000.0
Other current liabilities	$ 20,758,000			$ 20,758,000						$ 19,628,000
Other liabilities	13,863,000			13,863,000						$ 13,086,000
New Idria Mercury Mine [Member]
Loss Contingencies [Line Items]
Financial assurance required to be provided to EPA to secure performance			$ 2,000,000
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member] | Natural Resource Damage Claim [Member]
Loss Contingencies [Line Items]
Total reserve	1,500,000			1,500,000
Other current liabilities	300,000			300,000
Other liabilities	1,200,000			1,200,000
Expense recognized	0	$ 0
Revised estimated project total costs, Low Estimate							$ 3,300,000
Revised estimated project total costs, High Estimate							$ 4,400,000
Pending Litigation [Member] | New Idria Mercury Mine [Member] | EPA Notice Letter [Member]
Loss Contingencies [Line Items]
Loss contingencies, payments				3,200,000
Accrual for Environmental Loss Contingencies, Charges to Expense for New Losses	600,000	0		1,300,000	$ 0			$ 12,400,000	$ 1,600,000
Loss contingency, Loss in period	600,000	$ 0		1,300,000	$ 0			$ 12,400,000	$ 1,600,000
Total reserve	9,200,000			9,200,000
Other current liabilities	1,100,000			1,100,000
Other liabilities	$ 8,100,000			$ 8,100,000

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Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term Debt	$ 104,000	$ 91,000
Less unamortized deferred financing fees	44	55
Long-term Debt, net of deferred financing costs	103,956	90,945
Less current portion long-term debt	0	0
Long-term debt	103,956	90,945
Loan Agreement [Member]
Debt Instrument [Line Items]
Long-term Debt	66,000	53,000
5.25% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	11,000	11,000
5.30% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	15,000	15,000
5.45% Senior Unsecured Notes due January 15, 2026 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 12,000	$ 12,000

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Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details)	6 Months Ended
	Jun. 30, 2022
Debt Instrument [Line Items]
Debt instrument maturity date	Jan. 15, 2026
5.25% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Interest rate	5.25%
Debt instrument maturity date	Jan. 15, 2024
5.30% Senior Unsecured Notes due January 15, 2024 [Member]
Debt Instrument [Line Items]
Interest rate	5.30%
Debt instrument maturity date	Jan. 15, 2024
5.45% Senior Unsecured Notes due January 15, 2026 [Member]
Debt Instrument [Line Items]
Interest rate	5.45%
Debt instrument maturity date	Jan. 15, 2026

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Long-Term Debt and Loan Agreements - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2021	Mar. 31, 2017	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Mar. 31, 2021
Debt Instrument [Line Items]
Long-term Debt			$ 104,000		$ 104,000		$ 91,000
Debt instrument maturity date					Jan. 15, 2026
Long-term Debt			103,956		$ 103,956		$ 90,945
Repayments of long-term debt					0	$ 40,000
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt			38,000		38,000
Senior Unsecured Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Long-term Debt			$ 11,000		$ 11,000
Interest rate			5.25%		5.25%
Debt instrument maturity date					Jan. 15, 2024
Senior Unsecured Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long-term Debt			$ 15,000		$ 15,000
Interest rate			5.45%		5.45%
Loan Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity on line of credit		$ 200,000						$ 250,000
Loan maturity period		2022-03			2024-03
Remaining amount available under the line of credit			$ 178,300		$ 178,300
Letters of credit			$ 5,700		$ 5,700
Repayments of long-term debt	$ 40,000
Debt weighted average interest rate1			3.97%	5.13%	4.05%	5.23%
Other Assets [Member]
Debt Instrument [Line Items]
Deferred financing fees			$ 1,100		$ 1,100

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021
Income Taxes [Line Items]
Effective tax rate for the year	26.00%	25.50%	25.70%	25.70%
Unrecognized tax benefits that would impact effective tax rate	$ 0.8		$ 0.8			$ 0.8
Income tax examination, description			The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of June 30, 2022, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015.
State and Local [Member]
Income Taxes [Line Items]
Income tax examination for tax years					2017 2018 2019 2020
Non-U.S [Member]
Income Taxes [Line Items]
Income tax examination for tax years					2016 2017 2018 2019 2020 2021

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Leases - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Facility	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend			true
Operating lease, existence of option to terminate			true
Operating lease, option to extend			Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early.
Lessee, operating lease, renewal term	5 years		5 years
Operating lease, option to terminate			Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early.
Operating lease assets	$ 29,052		$ 29,052		$ 29,285
Total operating lease liabilities	29,016		29,016		29,156
Total lease cost	2,300	$ 1,982	$ 4,525	$ 3,690
Material Handling [Member]
Lessee Lease Description [Line Items]
Number of operating lease facilities | Facility			4
Operating lease assets	2,800		$ 2,800		3,600
Total operating lease liabilities	2,600		2,600		$ 3,400
Total lease cost	$ 400	$ 400	$ 900	$ 900
Indiana [Member] | Manufacturing and Distribution [Member]
Lessee Lease Description [Line Items]
Facility lease period	15 years		15 years
Minimum [Member]
Lessee Lease Description [Line Items]
Facility lease period	1 year		1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Facility lease period	14 years		14 years

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Leases - Summary of Amounts Included in the Condensed Consolidated Statement of Financial Position (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Assets:
Operating lease assets	$ 29,052	$ 29,285
Finance lease assets	$ 9,420	$ 9,765
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember	us-gaap:PropertyPlantAndEquipmentMember
Total lease assets	$ 38,472	$ 39,050
Liabilities:
Current	5,774	5,341
Long-term	23,242	23,815
Total operating lease liabilities	29,016	29,156
Current	509	500
Long-term	9,179	9,437
Total finance lease liabilities	9,688	9,937
Total lease liabilities	$ 38,704	$ 39,093

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Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lessee Lease Description [Line Items]
Total lease cost		$ 2,300	$ 1,982	$ 4,525	$ 3,690
Cost of Sales [Member]
Lessee Lease Description [Line Items]
Total operating lease cost	[1]	1,376	1,176	2,732	2,246
Amortization expense		173	173	345	230
Selling, General and Administrative Expenses [Member]
Lessee Lease Description [Line Items]
Total operating lease cost	[1]	666	544	1,277	1,095
Interest Expense, Net [Member]
Lessee Lease Description [Line Items]
Interest expense on lease liabilities		$ 85	$ 89	$ 171	$ 119

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

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Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 3,286	$ 2,627
Operating cash flows from finance leases	171	119
Financing cash flows from finance leases	249	161
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	1,296	6,753
Finance leases	$ 0	$ 10,339

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Leases - Summary of Lease Term and Discount Rate (Details)	Jun. 30, 2022	Dec. 31, 2021
Lessee Disclosure [Abstract]
Weighted-average remaining lease term (years), operating leases	6 years 10 months 20 days	7 years 3 months 7 days
Weighted-average remaining lease term (years), finance leases	13 years 8 months 4 days	14 years 2 months 1 day
Weighted-average discount rate, operating leases	3.40%	3.40%
Weighted-average discount rate, finance leases	3.50%	3.50%

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Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating And Finance Lease Liability Payments Due [Abstract]
Operating Leases, 2022	$ 3,390
Operating Leases, 2023	6,211
Operating Leases, 2024	4,594
Operating Leases, 2025	3,793
Operating Leases, 2026	3,319
Operating Leases, After 2026	11,243
Total operating lease payments	32,550
Less: interest	(3,534)
Present value of operating lease liabilities	29,016	$ 29,156
Finance Leases, 2022	420
Finance Leases, 2023	840
Finance Leases, 2024	861
Finance Leases, 2025	865
Finance Leases, 2026	865
Finance Leases, After 2026	8,408
Total finance lease payments	12,259
Less: interest	(2,571)
Present value of finance lease liabilities	9,688	$ 9,937
2022	3,810
2023	7,051
2024	5,455
2025	4,658
2026	4,184
After 2026	19,651
Total lease payments	44,809
Less: interest	(6,105)
Present value of lease liabilities	$ 38,704

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Industry Segments - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Segment	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment			2
Net sales	$ 233,156	$ 187,369	$ 458,642	$ 361,798
Foreign Countries [Member]
Segment Reporting Information [Line Items]
Net sales	$ 13,800	$ 12,100	$ 26,400	$ 23,100

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Industry Segments - Schedule of reporting information by segment (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Net sales		$ 233,156	$ 187,369	$ 458,642	$ 361,798
Total operating income		22,617	15,869	47,022	26,734
Interest expense, net		(1,211)	(999)	(2,358)	(1,994)
Income before income taxes		21,406	14,870	44,664	24,740
Operating Segments [Member] | Material Handling [Member]
Segment Reporting Information [Line Items]
Net sales		173,090	137,227	349,726	267,120
Total operating income	[1]	28,034	17,902	59,254	34,829
Operating Segments [Member] | Distribution [Member]
Segment Reporting Information [Line Items]
Net sales		60,075	50,156	108,936	94,706
Total operating income	[2]	4,269	4,214	7,570	5,652
Inter-company sales [Member]
Segment Reporting Information [Line Items]
Net sales		(9)	(14)	(20)	(28)
Corporate [Member]
Segment Reporting Information [Line Items]
Total operating income	[2]	$ (9,686)	$ (6,247)	$ (19,802)	$ (13,747)

[1] In the quarter and six months ended June 30, 2021, the Company recognized a $1.0 million gain on the sale of a building within the Material Handling Segment as described in Note 4.

[2] In the six months ended June 30, 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.

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Industry Segments - Schedule of reporting information by segment (Parenthetical) (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Executive severance cost		$ 0.8
Executive Severances [Member]
Segment Reporting Information [Line Items]
Severance and benefit	$ 0.5	0.5
Share-based payment arrangement, award accelerated cost		0.3
Material Handling [Member]
Segment Reporting Information [Line Items]
Gain on sale of building	$ 1.0	1.0
Distribution [Member]
Segment Reporting Information [Line Items]
Executive severance cost		0.5
Corporate [Member]
Segment Reporting Information [Line Items]
Executive severance cost		$ 0.3