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 endedSeptember 30, 2019

OR

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

For the transition period fromto

Commission File Number 1-8524

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 October 31, 2019 was 35,520,001 shares.

TABLE OF CONTENTS

Part I — Financial Information
Item 1. Financial Statements
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	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk	31
Item 4. Controls and Procedures	31
Part II — Other Information	32
Item 1. Legal Proceedings	32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6. Exhibits	32
Signature	33
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 September 30,					For the Nine Months Ended September 30,
	2019		2018			2019			2018
Net sales	$	125,480	$	135,219		$	398,880		$	428,347
Cost of sales		85,894		93,128			266,799			291,150
Gross profit		39,586		42,091			132,081			137,197
Selling, general and administrative expenses		31,515		34,381			102,792			104,360
(Gain) loss on disposal of fixed assets		11		218			(87	)		(96	)
Impairment charges		—		—			916			308
Other expenses		—		33,331			—			33,331
Operating income (loss)		8,060		(25,839	)		28,460			(706	)
Interest expense, net		993		883			3,059			3,835
Income (loss) from continuing operations before income taxes		7,067		(26,722	)		25,401			(4,541	)
Income tax expense (benefit)		1,848		(5,585	)		6,933			233
Income (loss) from continuing operations		5,219		(21,137	)		18,468			(4,774	)
Income (loss) from discontinued operations, net of income tax		—		(2	)		127			(913	)
Net income (loss)	$	5,219	$	(21,139	)	$	18,595		$	(5,687	)
Income (loss) per common share from continuing operations:
Basic	$	0.15	$	(0.60	)	$	0.52		$	(0.15	)
Diluted	$	0.15	$	(0.60	)	$	0.52		$	(0.15	)
Income (loss) per common share from discontinued operations:
Basic	$	—	$	—		$	—		$	(0.02	)
Diluted	$	—	$	—		$	—		$	(0.02	)
Net income (loss) per common share:
Basic	$	0.15	$	(0.60	)	$	0.52		$	(0.17	)
Diluted	$	0.15	$	(0.60	)	$	0.52		$	(0.17	)

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 September 30,						For the Nine Months Ended September 30,
	2019			2018			2019		2018
Net income (loss)	$	5,219		$	(21,139	)	$	18,595	$	(5,687	)
Other comprehensive income (loss)
Adoption of ASU 2018-02		—			—			—		(315	)
Foreign currency translation adjustment		(466	)		649			1,069		(1,194	)
Pension liability, net of tax expense of $67 in 2018		—			—			—		201
Total other comprehensive income (loss)		(466	)		649			1,069		(1,308	)
Comprehensive income (loss)	$	4,753		$	(20,490	)	$	19,664	$	(6,995	)

See notes to unaudited condensed consolidated financial statements.

2

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position (Unaudited)

(Dollars in thousands)

	September 30,			December 31,
	2019			2018
Assets
Current Assets
Cash	$	74,814		$	58,894
Accounts receivable, less allowances of $2,124 and $2,259, respectively		65,129			72,939
Income tax receivable		—			4,892
Inventories, net		44,009			43,596
Prepaid expenses and other current assets		3,441			2,534
Total Current Assets		187,393			182,855
Other Assets
Property, plant, and equipment, net		56,096			65,460
Right of use asset - operating leases		6,384			—
Goodwill		66,428			59,068
Intangible assets, net		32,909			30,280
Deferred income taxes		6,074			5,270
Other		2,002			5,712
Total Assets	$	357,286		$	348,645
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	54,196		$	60,849
Accrued expenses
Employee compensation		12,023			16,531
Income taxes		738			—
Taxes, other than income taxes		1,260			1,403
Accrued interest		811			1,939
Other current liabilities		18,035			16,701
Operating lease liability - short-term		2,215			—
Total Current Liabilities		89,278			97,423
Long-term debt		77,080			76,790
Operating lease liability - long-term		4,402			—
Other liabilities		22,706			19,794
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 35,512,301 and 35,374,121; net of treasury shares    of 7,040,156 and 7,178,336, respectively)		21,663			21,547
Additional paid-in capital		295,560			292,558
Accumulated other comprehensive loss		(17,211	)		(18,280	)
Retained deficit		(136,192	)		(141,187	)
Total Shareholders’ Equity		163,820			154,638
Total Liabilities and Shareholders’ Equity	$	357,286		$	348,645

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 September 30, 2019
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at July 1, 2019	$	21,646	$	294,066	$	(16,745	)	$	(136,557	)	$	162,410
Net income		—		—		—			5,219			5,219
Foreign currency translation    adjustment		—		—		(466	)		—			(466	)
Shares issued under incentive plans,    net of shares withheld for tax		17		366		—			—			383
Stock compensation expense		—		1,128		—			—			1,128
Declared dividends - $0.14 per share		—		—		—			(4,854	)		(4,854	)
Balance at September 30, 2019	$	21,663	$	295,560	$	(17,211	)	$	(136,192	)	$	163,820
	Quarter Ended September 30, 2018
	Common Shares		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at July 1, 2018	$	21,430	$	289,088	$	(16,498	)	$	(112,759	)	$	181,261
Net income		—		—		—			(21,139	)		(21,139	)
Foreign currency translation    adjustment		—		—		649			—			649
Shares issued under incentive plans,    net of shares withheld for tax		93		1,782		—			—			1,875
Stock compensation expense		—		1,227		—			—			1,227
Declared dividends - $0.14 per share		—		—		—			(4,816	)		(4,816	)
Balance at September 30, 2018	$	21,523	$	292,097	$	(15,849	)	$	(138,714	)	$	159,057

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)

	Nine Months Ended September 30, 2019
	Common Shares		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2019	$	21,547	$	292,558		$	(18,280	)	$	(141,187	)	$	154,638
Net income		—		—			—			18,595			18,595
Adoption of ASU 2016-02, net of    tax of $332		—		—			—			905			905
Foreign currency translation    adjustment		—		—			1,069			—			1,069
Shares issued under incentive plans,    net of shares withheld for tax		116		(346	)		—			—			(230	)
Stock compensation expense		—		3,348			—			—			3,348
Declared dividends - $0.41 per share		—		—			—			(14,505	)		(14,505	)
Balance at September 30, 2019	$	21,663	$	295,560		$	(17,211	)	$	(136,192	)	$	163,820
	Nine Months Ended September 30, 2018
	Common Shares		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Deficit			Total Shareholders' Equity
Balance at January 1, 2018	$	18,547	$	209,253		$	(14,541	)	$	(119,507	)	$	93,752
Net income		—		—			—			(5,687	)		(5,687	)
Adoption of ASU 2018-02		—		—			(315	)		315			—
Foreign currency translation    adjustment		—		—			(1,194	)		—			(1,194	)
Shares issued under incentive plans,    net of shares withheld for tax		170		2,209			—			—			2,379
Stock compensation expense		—		3,919			—			—			3,919
Pension liability, net of tax of $67		—		—			201			—			201
Shares issued in public offering, net    of equity issuance costs		2,806		76,716			—			—			79,522
Declared dividends - $0.41 per share		—		—			—			(13,835	)		(13,835	)
Balance at September 30, 2018	$	21,523	$	292,097		$	(15,849	)	$	(138,714	)	$	159,057

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

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 U.S. generally accepted accounting principles (“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, 2018.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of September 30, 2019, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2019.

Accounting Standards Adopted

In February 2016, the FASB issued ASU 2016-02, Leases, which createdAccounting Standards Codification (“ASC”) Topic 842. Under ASU 2016-02, an entity recognizes right-of-use assets and lease liabilities on its balance sheet, and discloses key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new guidance effective January 1, 2019, using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected to apply the guidance at a portfolio level and use the discount rate corresponding to the remaining lease term at transition. Adoption of the new standard resulted in the recognition of right-of-use assets and lease liabilities of $5.9 million and $6.2 million, respectively, on January 1, 2019. The difference between the right-of-use assets and lease liabilities related primarily to the removal of previously recorded accrued rent balances as a result of recording straight-line rent expense for certain leases. In addition, the adoption resulted in an adjustment to opening retained earnings (deficit) of approximately $0.9 million, net of tax, on January 1, 2019. This cumulative-effect transition adjustment to opening retained earnings (deficit) related to the recognition of the remaining deferred gain on the sale-leaseback transaction that occurred in 2018. The standard did not have a material impact on the Company’s condensed consolidated results of operations or cash flows.

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

	For the Quarter Ended September 30, 2019
	As Reported		Adjustments			Balances Without Adoption of ASC 842
Net sales	$	125,480	$	—		$	125,480
Cost of sales		85,894		—			85,894
Gross profit		39,586		—			39,586
Selling, general and administrative expenses		31,515		(34	)		31,481
(Gain) loss on disposal of fixed assets		11		—			11
Operating income		8,060		34			8,094
Interest expense, net		993		—			993
Income from continuing operations before income taxes		7,067		34			7,101
Income tax expense		1,848		9			1,857
Income from continuing operations	$	5,219	$	25		$	5,244

7

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

	For the Nine Months Ended September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Net sales	$	398,880		$	—		$	398,880
Cost of sales		266,799			—			266,799
Gross profit		132,081			—			132,081
Selling, general and administrative expenses		102,792			(101	)		102,691
(Gain) loss on disposal of fixed assets		(87	)		—			(87	)
Impairment charges		916			—			916
Operating income		28,460			101			28,561
Interest expense, net		3,059			—			3,059
Income from continuing operations before income taxes		25,401			101			25,502
Income tax expense		6,933			27			6,960
Income from continuing operations	$	18,468		$	74		$	18,542

	As of  September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Assets
Right of use asset - operating leases	$	6,384		$	(6,384	)	$	—
Deferred tax asset		6,074			306			6,380
Liabilities
Other current liabilities	$	18,035		$	233		$	18,268
Operating lease liability - short-term		2,215			(2,215	)		—
Operating lease liability - long-term		4,402			(4,402	)		—
Other liabilities		22,706			1,135			23,841
Shareholders’ Equity
Retained deficit	$	(136,192	)	$	(829	)	$	(137,021	)

Accounting Standards Not Yet Adopted

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted and this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for annual periods ending after December 15, 2020, with early adoption permitted and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

8

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted. Certain disclosures in this ASU are required to be applied on a retrospective basis and others on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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

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

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.

Financial assets that are measured at net asset value, which is a practical expedient to estimating fair value, are not classified in the fair value hierarchy.

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 14, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At September 30, 2019 and December 31, 2018, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $79.3 million and $76.8 million, respectively.

The purchase price allocation associated with the August 26, 2019 acquisition of Tuffy Manufacturing Industries, Inc., as described in Note 3, required significant fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using the income approach.

9

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 January 1, 2019	$	(16,251	)	$	(2,029	)	$	(18,280	)
Other comprehensive income (loss) before reclassifications		1,069			—			1,069
Net current-period other comprehensive income (loss)		1,069			—			1,069
Balance at September 30, 2019	$	(15,182	)	$	(2,029	)	$	(17,211	)

2.  Revenue Recognition

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

	For the Quarter Ended September 30, 2019
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	19,205	$	—	$	—		$	19,205
Vehicle		21,951		—		—			21,951
Food and beverage		13,010		—		—			13,010
Industrial		29,944		—		(18	)		29,926
Auto aftermarket		—		41,388		—			41,388
Total net sales	$	84,110	$	41,388	$	(18	)	$	125,480

	For the Quarter Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	20,048	$	—	$	—		$	20,048
Vehicle		23,037		—		—			23,037
Food and beverage		19,159		—		—			19,159
Industrial		35,438		—		(20	)		35,418
Auto aftermarket		—		37,557		—			37,557
Total net sales	$	97,682	$	37,557	$	(20	)	$	135,219

	For the Nine Months Ended September 30, 2019
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	59,505	$	—	$	—		$	59,505
Vehicle		66,433		—		—			66,433
Food and beverage		54,977		—		—			54,977
Industrial		102,048		—		(40	)		102,008
Auto aftermarket		—		115,957		—			115,957
Total net sales	$	282,963	$	115,957	$	(40	)	$	398,880

10

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

	For the Nine Months Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	64,325	$	—	$	—		$	64,325
Vehicle		75,338		—		—			75,338
Food and beverage		72,124		—		—			72,124
Industrial		105,834		—		(89	)		105,745
Auto aftermarket		—		110,815		—			110,815
Total net sales	$	317,621	$	110,815	$	(89	)	$	428,347

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 Company’s 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, the Company has not recorded any deferred revenue, 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.  Thus, the Company estimates the expected returns each period based on an analysis of historical experience.  For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, based on the approximate cost of the product.

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

	September 30,			December 31,			Statement of Financial Position
	2019			2018			Classification
Returns, discounts and other allowances	$	(593	)	$	(1,169	)	Accounts receivable
Right of return asset		310			535		Inventories, net
Customer deposits		(108	)		(806	)	Other current liabilities
Accrued rebates		(2,201	)		(2,559	)	Other current liabilities

Sales, value added, and other taxes the Company collects concurrent with revenue from customers are excluded from net sales.  The Company has elected to recognize the cost for shipments to customers when control over products has transferred to the customer.  Costs for shipments to customers are classified as Selling, General and Administrative Expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business in the accompanying Condensed Consolidated Statements of Operations (Unaudited). The Company incurred costs for shipments to customers in Selling, General and Administrative Expenses of approximately $2.0 million and $2.1 million for the quarters ended September 30, 2019 and 2018, respectively, and $6.2 million and $7.4 million for the nine months ended September 30, 2019 and 2018, respectively, and in Cost of Sales of approximately $1.3 million and $1.4 million for the quarters ended September 30, 2019 and 2018, respectively, and $4.3 million and $4.2 million for the nine months ended September 30, 2019 and 2018, respectively. All other internal distribution costs are recorded in Selling, General and Administrative Expenses.

Based on the short term nature of contracts described above, the Company does not incur significant contract acquisition costs. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.

11

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

3.  Acquisition

On August 26, 2019, the Company acquired the assets of Tuffy Manufacturing Industries, Inc. (“Tuffy”), a warehouse distributor of tire repair equipment and supplies, which is included in the Company’s Distribution Segment. The Tuffy acquisition aligns with the Company’s strategy to grow in key niche markets and focus on strategic account customers. The purchase price for the acquisition was $18.6 million, which includes a preliminary estimated working capital adjustment of $0.6 million subject to further adjustment based on the final working capital. The Company funded the acquisition using available cash.

The acquisition of Tuffy 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	$	2,072
Inventories		2,657
Prepaid expenses		20
Property, plant and equipment		124
Right of use asset - operating leases		229
Intangible assets		8,400
Goodwill		7,051
Assets acquired	$	20,553
Liabilities assumed:
Accounts payable	$	1,714
Operating lease liability - short term		112
Operating lease liability - long term		117
Total liabilities assumed		1,943
Net acquisition cost	$	18,610

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		7,300	7.3 years
Trade name		500	5.0 years
Non-competition agreements		600	5.0 years
Total amortizable intangible assets	$	8,400

12

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

4.  Assets Held for Sale

As part of its ongoing strategy, the Company continues to evaluate its various real estate holdings. As a result of these initiatives, certain buildings were reclassified as held for sale in 2018 and 2019. Based on the estimated fair value of these buildings (using primarily third party offers considered to be Level 2 inputs), less estimated costs to sell, the Company recorded impairment charges of $0.9 million and $0.3 million during the nine months ended September 30, 2019 and 2018, respectively. No impairment charges were recorded during the quarters ended September 30, 2019 and 2018.  As of December 31, 2018, the Company had classified $4.4 million of buildings as held for sale, in Other Assets in the Condensed Consolidated Statements of Financial Position (Unaudited). No assets were classified as held for sale as of September 30, 2019. During the first nine months of 2019, the Company sold two buildings previously held for sale for total net proceeds of $7.4 million. These buildings were included in the Company’s Material Handling Segment.

5.  Disposal of Businesses

On December 18, 2017, the Company, collectively with its wholly owned subsidiary, Myers Holdings Brasil, Ltda. (“Holdings”), completed the sale of its subsidiaries, Myers do Brasil Embalagens Plasticas Ltda. and Plasticos Novel do Nordeste Ltda. (collectively, the “Brazil Business”), to Novel Holdings – Eireli (“Buyer”), an entity controlled by a member of the Brazil Business’ management team. The Brazil Business was part of the Material Handling Segment.

The Company has agreed to be the guarantor under a factoring arrangement between the Buyer and Banco Alfa de Investimento S.A. until December 31, 2019 for up to $7 million, in the event the Buyer is unable to meet its obligations under this arrangement. The Company also holds a first lien against certain machinery and equipment, exercisable only upon default by the Buyer under the guaranty. Based on the nature of the guaranty, as well as the existence of the lien, the Company believes the fair value of the guaranty is immaterial (based primarily on Level 3 inputs), and thus has recorded no liability related to this guaranty in the Condensed Consolidated Statements of Financial Position (Unaudited). This guaranty also creates a variable interest to the Company in the Brazil Business. Based on the terms of the transaction and the fact that the Company has no management involvement or voting interests in the Brazil Business following the sale, the Company does not have any power to direct the significant activities of the Brazil Business, and is thus not the primary beneficiary.

On February 17, 2015, the Company sold its Lawn and Garden business to an entity controlled by Wingate Partners V, L.P. (“L&G Buyer”). The terms of the sale included promissory notes totaling $20 million that were originally set to mature in August 2020 with a 6% interest rate. During the third quarter of 2018, management of the Lawn and Garden business, now named HC Companies, Inc. (“HC”), requested an extension to the maturity of the notes as part of an effort to restructure their debt. The Company believes there is uncertainty about the ability to collect on the notes and corresponding accrued interest, and as a result, the Company recorded a provision for expected loss of $23.0 million within continuing operations during the third quarter of 2018. The Company ceased recognizing interest income as of September 30, 2018 following the recognition of the provision.  In April 2019, the Company entered into an agreement with HC to amend and restate the notes (“Amended and Restated Notes”). The Amended and Restated Notes maintain the amounts due under the original terms of the notes, including interest, and extend the maturity to August 2022. The agreement to amend and restate the notes did not change management’s assessment of the uncertainty to collect on the notes.

In addition, approximately $8.6 million of the purchase price related to the Lawn and Garden sale was placed in escrow that was due to be settled by August 2016. The release of these funds had been extended pending the resolution of indemnification claims, as further described in Note 13. In April 2018, the Company reached agreement on the material terms of a settlement, and, as a result, recorded a pre-tax charge of $1.225 million to discontinued operations for the quarter ended March 31, 2018. The settlement was finalized and paid in May 2018, and upon settlement and release of any further obligation on behalf of the Company, the remaining $7.4 million was released from escrow to the Company.

In connection with the financial risk described above with HC, the Company further assessed its potential obligations under a lease guarantee granted as part of the sale of the Lawn and Garden business. Refer to Note 13 for further information with regards to this guarantee.

13

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Summarized selected financial information for discontinued operationsfor the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

	For the Quarter Ended September 30,					For the Nine Months Ended September 30,
	2019		2018			2019			2018
Net sales	$	—	$	—		$	—		$	—
Cost of sales		—		—			—			—
Selling, general, and administrative		—		123			—			1,348
(Gain) loss on disposal of assets		—		—			—			—
Interest income, net		—		—			(174	)		—
Income (loss) from discontinued operations before income tax		—		(123	)		174			(1,348	)
Income tax expense (benefit)		—		(121	)		47			(435	)
Income (loss) from discontinued operations, net of income tax	$	—	$	(2	)	$	127		$	(913	)

Net cash flows provided by discontinued operations in 2019 resulted from the remaining receipt of the tax benefit from a worthless stock deduction, which was recognized as part of the sale of the Brazil Business. Net cash flows provided by discontinued operations in 2018 resulted from the partial receipt of the tax benefit from the worthless stock deduction related to the Brazil Business. The worthless stock deduction allowed the Company to reduce its estimated U.S. federal tax payments in 2018 by $4.3 million. This was partially offset by the payment of expenses related to the sale of the Brazil Business and the payment of the settlement with the L&G Buyer noted above.

6.  Restructuring

On March 20, 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”) that operates within the Company’s Material Handling Segment. The Company plans to consolidate manufacturing operations currently conducted at Ameri-Kart’s Cassopolis, Michigan facility with expanded operations in Indiana, and eliminate up to 30 positions in connection with the consolidation (the “Ameri-Kart Plan”). Total restructuring costs expected to be incurred are approximately $0.9 million, which include equipment relocation and facility shut down costs, employee severance and other employee-related costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment. No costs were incurred during the quarter and nine months ended September 30, 2019 related to the Ameri-Kart Plan. The Ameri-Kart Plan is expected to be substantially completed in the first half of 2020.

On March 18, 2019, the Company committed to implementing a restructuring plan relating to transformation initiatives within the Company’s Distribution Segment (the “Distribution Transformation Plan”) that are intended to increase sales force effectiveness, reduce costs and improve contribution margins. The Company realigned its Distribution Segment’s commercial sales structure, which included the elimination of certain sales and administrative positions, and plans to expand its e-commerce platform. Total restructuring costs expected to be incurred are approximately $0.9 million, primarily related to employee severance and other employee-related costs. No significant amounts were recognized during the quarter ended September 30, 2019. During the nine months ended September 30, 2019, the Company incurred restructuring charges of $0.9 million and does not expect to incur any additional restructuring charges in connection with the Distribution Transformation Plan. The Distribution Transformation Plan is expected to be substantially completed by the end of 2019.

On March 9, 2017, the Company announced a restructuring plan to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment (the “Material Handling Plan”), which related primarily to anticipated facility shutdowns and associated activities.  Total restructuring costs incurred related to the Material Handling Plan were approximately $7.7 million, which includes employee severance and other employee-related costs of approximately $3.1 million, $2.6 million related to equipment relocation and facility shut down costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.0 million. All actions under the Material Handling Plan are completed. The Company incurred $0.1 million of restructuring charges associated with the Material Handling Plan during the nine months ended September 30, 2018. No costs were incurred during 2019.

14

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

As noted above, no significant amounts were recognized during the quarter ended September 30, 2019 and there were no restructuring charges incurred during the quarter ended September 30, 2018. The restructuring charges noted above for the nine months ended September 30, 2019 and 2018 are presented in the Condensed Consolidated Statements of Operations (Unaudited) as follows:

	For the Nine Months Ended September 30,
	2019						2018
Segment	Cost of Sales		SG&A		Total		Cost of Sales		SG&A		Total
Distribution	$	—	$	865	$	865	$	—	$	—	$	—
Material Handling		—		—		—		119		—		119
Total	$	—	$	865	$	865	$	119	$	—	$	119

The table below summarizes restructuring activity for the nine months ended September 30, 2019:

	Employee Reduction			Accelerated Depreciation		Other Exit Costs		Total
Balance at January 1, 2019	$	30		$	—	$	—	$	30
Charges to expense		865			—		—		865
Cash payments		(767	)		—		—		(767	)
Non-cash utilization		—			—		—		—
Balance at September 30, 2019	$	128		$	—	$	—	$	128

During the quarter ended March 31, 2019, the Company reclassified a facility that was closed in connection with the Material Handling Plan as held for sale. Based on the estimated fair value of this facility (using primarily a third party offer considered to be a Level 2 input), less estimated costs to sell, the Company recognized an impairment charge of $0.9 million during the quarter ended March 31, 2019. The facility was sold in May 2019 for net proceeds of $2.9 million, which are included in the net proceeds discussed in Note 4.

In addition to the restructuring charges noted above, the Company has also incurred $0.2 million of other associated costs of the Distribution Transformation Plan during the nine months ended September 30, 2019. No such costs were incurred during the quarter ended September 30, 2019. The Company also incurred $0.1 million of other associated costs of the Ameri-Kart Plan during the quarter and nine months ended September 30, 2019. These other associated costs are included in Selling, General, and Administrative Expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited), and are primarily related to third party consulting costs. Additional estimated costs of $0.1 million are expected to be incurred throughout the remainder of 2019 related to the Ameri-Kart Plan. No other costs are expected to be incurred related to the Distribution Transformation Plan.

7.  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 at 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. During 2019 and 2018, one inventory pool had a reduction in inventory quantities that was expected to remain at year-end, and therefore an adjustment was recorded for the nine months ended September 30, 2019 and 2018 to decrease cost of sales by $0.3 million and $0.5 million, respectively, as a result of the liquidation of LIFO inventories. No adjustment to the LIFO reserve was recorded for the quarters ended September 30, 2019 and 2018.

15

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Inventories consisted of the following:

	September 30,		December 31,
	2019		2018
Finished and in-process products	$	30,444	$	27,960
Raw materials and supplies		13,565		15,636
	$	44,009	$	43,596

8.  Other Liabilities

The balance in other current liabilities is comprised of the following:

	September 30,		December 31,
	2019		2018
Customer deposits and accrued rebates	$	2,309	$	3,365
Dividends payable		5,242		5,260
Accrued litigation, claims and professional fees		958		460
Current portion of environmental reserves		1,499		1,229
Accrued product replacement costs		2,300		—
Other accrued expenses		5,727		6,387
	$	18,035	$	16,701

In August 2019, a manufacturing defect was identified for certain boxes produced within the Material Handling segment in May and June 2019. Certain of the affected boxes require replacement. The total range of cost to replace these boxes is estimated to be $3.5 million to $4.0 million. In the quarter ended September 30, 2019, $3.5 million of estimated costs were recorded related to this matter, of which $2.3 million remains accrued as of September 30, 2019 and is included within other current liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

The balance in other liabilities (long-term) is comprised of the following:

	September 30,		December 31,
	2019		2018
Lease guarantee contingency	$	10,642	$	10,402
Environmental reserves		6,692		3,702
Supplemental executive retirement plan liability		1,796		2,026
Pension liability		1,293		1,207
Deferred gain on sale of assets		—		1,237
Other long-term liabilities		2,283		1,220
	$	22,706	$	19,794

9.  Goodwill and Intangible Assets

The change in goodwill for the nine months ended September 30, 2019 was as follows:

	Distribution		Material Handling		Total
January 1, 2019	$	505	$	58,563	$	59,068
Acquisition		7,051		—		7,051
Foreign currency translation		—		309		309
September 30, 2019	$	7,556	$	58,872	$	66,428

16

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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. The Company has indefinite-lived trade names which had a carrying value of $9.8 million at both September 30, 2019 and December 31, 2018. Refer to Note 3 for the intangible assets acquired through the Tuffy acquisition during the quarter ended September 30, 2019.

10.  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 September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Weighted average common shares outstanding basic		35,495,157		35,229,171		35,451,980		32,783,853
Dilutive effect of stock options and restricted stock		263,875		—		371,251		—
Weighted average common shares outstanding diluted		35,759,032		35,229,171		35,823,231		32,783,853

Options to purchase 638,073 and 631,300 shares of common stock that were outstanding for the quarter and nine months ended September 30, 2019, respectively, 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. Due to the net loss for the quarter and nine months ended September 30, 2018, diluted weighted-average shares outstanding were equal to basic weighted-average shares outstanding because the effect of all equity awards was anti-dilutive.

11.  Stock Compensation

The Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”) authorizes the Compensation Committee of the Board of Directors to issue up to 5,126,950 shares of various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant.

In March 2019, the Company granted 235,474 stock options with a weighted average exercise price of $18.54 per share and a weighted average fair value of $5.78 per share. The fair value of options granted is estimated using a binomial lattice option pricing model. Also in March 2019, the Company granted 77,810 and 101,500 time-based and performance-based restricted stock units, respectively, with a weighted average fair value of $18.54 per share. In April 2019, the Company granted 33,152 time-based restricted stock units with a weighted average fair value of $18.10 per share. During the third quarter of 2019, the Company granted 10,296 time-based restricted stock units with a weighted average fair value of $16.61 per share.

Stock compensation expense was approximately $1.1 million and $1.2 million for the quarters ended September 30, 2019 and 2018, respectively, and $3.3 million and $3.5 million for the nine months ended September 30, 2019 and 2018, respectively. These expenses are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited). Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at September 30, 2019 was approximately $6.4 million, which will be recognized over the next three years, as such compensation is earned.

12.  Equity

In May 2018, the Company completed a public offering of 4,600,000 shares of its common stock at a price to the public of $18.50 per share. The net proceeds from the offering were approximately $79.5 million, after deducting underwriting discounts and commissions and $0.5 million of offering expenses paid by the Company. The Company used a portion of the net proceeds received from the offering to repay a portion of its outstanding indebtedness during the second quarter of 2018.

17

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

13.  Contingencies

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. When a loss arising from these matters is probable and can reasonably be estimated, the Company records the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence than another. As additional information becomes available, any potential liability related to these matters will be assessed and the estimates will be revised, if necessary.

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. If new information becomes available or 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 such change in estimate 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 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, the Company 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 the Company’s performance of the RI/FS. In addition, the AOC requires the Company to provide $2 million of financial assurance to the EPA to secure its performance during the estimated life of the RI/FS.  In January 2019, the Company provided this assurance as a letter of credit. The AOC also includes provisions for payment by the Company of the EPA’s costs of oversight of the RI/FS, including a prepayment in the amount of $0.2 million, which was paid in January 2019.

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, the Company received preliminary estimates from its consultants for the cost of the execution of the work plan. Based on these preliminary estimates, the Company recognized additional expense of $4.0 million during the nine months ended September 30, 2019. No expenses were incurred related to the New Idria Mine in the quarter ended September 30, 2019. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur by the end of 2019. The Company 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, to date, the Company has not recognized potential recovery in its consolidated financial statements. No expenses were recorded related to the New Idria Mine in the quarter or nine months ended September 30, 2018.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, the Company has recognized $9.9 million of costs, of which approximately $3.2 million has been paid to date. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible insurance resources and other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. As of September 30, 2019, the Company has a total reserve of $6.7 million related to the New Idria Mine, of which $1.2 million is classified in Other Current Liabilities and $5.5 million in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

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 the Company’s liability are based on current facts, laws, regulations and technology. Estimates of the Company’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.

18

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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

New Almaden Mine

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area.  Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project, originally estimated to be approximately $1.6 million. As a result, in 2005, the Company recognized expense of $0.8 million representing its share of the initial estimated project costs, of which approximately $0.5 million has been paid to date. In April 2016, the Company was notified by the County that the original cost estimate may no longer be appropriate due to expanded scope and increased costs of construction and provided a revised estimate of between $3.3 million and $4.4 million.  The Company completed a detailed review of the support provided by the County for the revised estimate, and as a result, recognized additional expense of $1.2 million in 2016.  No costs were incurred related to New Almaden in the quarters or nine months ended September 30, 2019 or 2018. As of September 30, 2019, 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 on the Condensed Consolidated Statements of Financial Position (Unaudited).

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.

Lawn and Garden Indemnification Claim

In connection with the sale of the Lawn and Garden business, as described in Note 5, the Company received Notices of Indemnification Claims in April 2015 and July 2016 (collectively, the “Claims”), alleging breaches of certain representations and warranties under the agreement resulting in alleged losses in the amount of approximately $10 million. As described in Note 5, approximately $8.6 million of the sale proceeds that were placed in escrow were due to be settled in August 2016; however, the release of these funds had been extended pending the resolution of the Claims, which were the subject of a lawsuit in the Delaware Chancery Court.

In April 2018, the Company reached agreement on the material terms of a settlement, and as a result, recorded a pre-tax charge of $1.225 million to discontinued operations for the quarter ended March 31, 2018. The settlement agreement was finalized in May 2018, and the settlement amount was funded from the escrow account. In addition, upon settlement and release of any further obligation on behalf of the Company, the remaining $7.4 million was released from escrow to the Company in the second quarter of 2018.

Lawn and Garden Lease Guarantee

In connection with the sale of the Lawn and Garden business, as described in Note 5, the Company is a guarantor for one of HC’s facility leases expiring in September 2025 for any remaining rent payments under the lease for which HC is unable to meet its obligations. Current annual rent for the facility is approximately $2 million, and is subject to annual CPI increases throughout the lease term. In connection with the financial risk associated with HC, as described in Note 5, the Company assessed its range of potential obligations under the lease guarantee, and as a result of this analysis, recorded a liability and related pre-tax charge of $10.3 million during the third quarter of 2018. The carrying value of the lease contingency as of September 30, 2019 and December 31, 2018 was $10.6 million and $10.4 million, respectively, which represents the initial liability recorded plus accretion and is included in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

19

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Patent Infringement

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC and Scepter Corporation (“Scepter”) 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. A schedule in the case has not yet issued. Scepter intends to defend itself vigorously in this matter. Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter, and is unable at this time to determine whether the outcome of the litigation will have a material impact on its results of operations, financial condition, or cash flows. Accordingly, the Company has not recorded any reserves for this matter.

14.  Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

	September 30,		December 31,
	2019		2018
Loan Agreement	$	—	$	—
4.67% Senior Unsecured Notes due 2021		40,000		40,000
5.25% Senior Unsecured Notes due 2024		11,000		11,000
5.30% Senior Unsecured Notes due 2024		15,000		15,000
5.45% Senior Unsecured Notes due 2026		12,000		12,000
		78,000		78,000
Less unamortized deferred financing costs		920		1,210
	$	77,080	$	76,790

In March 2017, the Company entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement”).  The Loan Agreement replaced the pre-existing $300 million senior revolving credit facility with a $200 million facility and extended the term from December 2018 to March 2022. The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45%, payable semiannually, and maturing between 2021 and 2026. At September 30, 2019, $78 million of the Notes were outstanding.  

Under the terms of the Loan Agreement, the Company may borrow up to $200 million, reduced for letters of credit issued. As of September 30, 2019, the Company had $194.2 million available under the Loan Agreement. The Company had $5.8 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business at September 30, 2019. 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 weighted average interest rate on borrowings under the Company’s long-term debt was 6.28% and 6.55% for the quarters ended September 30, 2019 and 2018, respectively, and 6.26% and 5.70% for the nine months ended September 30, 2019 and 2018, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs. 

As of September 30, 2019, 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 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).

20

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

15.  Retirement Plans

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

Net periodic pension cost is as follows:

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Interest cost	$	60		$	56		$	180		$	168
Expected return on assets		(46	)		(79	)		(138	)		(237	)
Amortization of net loss		24			21			72			63
Net periodic pension cost	$	38		$	(2	)	$	114		$	(6	)

The Company contributed $31 to the plan in the third quarter of 2019.

16.  Income Taxes

The Company’s effective tax rate was 26.2% and 27.3% for the quarter and nine months ended September 30, 2019, respectively, compared to 20.9% and (5.1%) for the quarter and nine months ended September 30, 2018, respectively. The prior year effective rate was impacted by the lower tax rate for the tax benefit on the provision for expected loss on the note receivable and lease guarantee liability recorded in the third quarter of 2018 related to HC, as discussed in Note 5 and Note 13, respectively. 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 $1.0 million at September 30, 2019 and December 31, 2018.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of September 30, 2019, 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 Company is subject to state and local examinations for tax years of 2013 through 2018. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2014 through 2018.

17.  Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for distribution centers, warehouses, office space and equipment, with remaining lease terms of one to nine 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 leases on a straight-line basis over the lease term. Operating leases are included in right of use asset – operating leases (“ROU assets”), operating lease liability –short term, and operating 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 Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, 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 uses the implicit rate when readily determinable. The Company has also elected not to separate lease and non-lease components. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

21

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

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

	September 30, 2019
Right of use asset - operating leases	$	6,384
Operating lease liability - short-term	$	2,215
Operating lease liability - long-term		4,402
Total operating lease liabilities	$	6,617

The components of lease expense include:

		Quarter Ended		Nine Months Ended
Lease Cost	Classification	September 30, 2019		September 30, 2019
Operating lease cost (1)	Cost of sales	$	453	$	1,310
Operating lease cost (1)	Selling, general and administrative expenses		441		1,338
Total lease cost		$	894	$	2,648

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

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended
Supplemental Cash Flow Information	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,808
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		2,029

Lease Term and Discount Rate	September 30, 2019
Weighted-average remaining lease term (years)
Operating leases		4.35
Weighted-average discount rate
Operating leases		5.0	%

Maturity of Lease Liabilities - As of September 30, 2019	Operating Leases
2019 (1)	$	620
2020		2,247
2021		1,339
2022		1,189
2023		1,016
After 2023		961
Total lease payments		7,372
Less: Interest		(755	)
Present value of lease liabilities	$	6,617

(1) Represents amounts due in 2019 after September 30, 2019

22

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Future minimum rental commitments (undiscounted) as of December 31, 2018 under ASC 840 were as follows:

Year Ended December 31,
2019	$	2,492
2020		1,739
2021		982
2022		966
2023		841
Thereafter		811
Total	$	7,831

On February 27, 2018, the Company completed a sale-leaseback transaction for its distribution center in Pomona, California for a net purchase price of $2.3 million. The Company realized a gain on the sale of $2.0 million, of which $0.7 million was recognized during the quarter ended March 31, 2018. The remaining $1.3 million was recognized ratably over the term of the ten-year lease at approximately $0.1 million per year, until January 1, 2019 upon the adoption of ASU 2016-02 as discussed in Note 1. Simultaneous with closing the sale, the Company entered into a ten-year operating lease arrangement with base annual rent of approximately $0.1 million during the first year, followed by annual increases of 3% through the remainder of the lease period. This facility is included in the Company’s Distribution Segment.

18.  Industry Segments

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

The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States and Canada. Markets served encompass various niches of industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle 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 operates domestically through 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, auto dealers, general service and repair centers, tire retreaders, and government agencies. The acquisition of Tuffy, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $8.6 million and $14.6 million for the quarters ended September 30, 2019 and 2018, respectively, and $32.8 million and $39.2 million for the nine months ended September 30, 2019 and 2018, respectively.

23

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

Summarized segment detail for the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Net Sales
Material Handling	$	84,110		$	97,682		$	282,963		$	317,621
Distribution		41,388			37,557			115,957			110,815
Inter-company sales		(18	)		(20	)		(40	)		(89	)
Total net sales	$	125,480		$	135,219		$	398,880		$	428,347
Income (loss) from continuing operations before income taxes
Material Handling	$	10,385		$	10,812		$	44,181		$	44,865
Distribution		3,382			2,546			6,923			7,070
Corporate		(5,707	)		(39,197	)		(22,644	)		(52,641	)
Total operating income		8,060			(25,839	)		28,460			(706	)
Interest expense, net		(993	)		(883	)		(3,059	)		(3,835	)
Income from continuing operations before income taxes	$	7,067		$	(26,722	)	$	25,401		$	(4,541	)

19.  Subsequent Event

On October 1, 2019, the Company’s President and Chief Executive Officer (“CEO”) tendered his resignation effective October 25, 2019. In connection with the CEO’s departure, unvested stock awards will be forfeited. Previously recognized compensation expense of $2.3 million will be reversed in the fourth quarter of 2019, the period of forfeiture. The CEO is not entitled to severance payments based on terms of his departure.

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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, risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission, 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, 2018. 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 former Brazil Business, which was sold in December 2017, and the former Lawn and Garden business, which was sold in February 2015, are classified as discontinued operations in all periods presented.

The Company designs, manufactures, and markets a variety of plastic and rubber products. The Material Handling Segment manufactures products that range from plastic reusable material handling containers and small parts storage bins to plastic OEM parts, custom plastic products, consumer fuel containers, military water containers as well as ammunition packaging and shipping containers. 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.

Results of Operations:

Comparison of the Quarter Ended September 30, 2019 to the Quarter Ended September 30, 2018

Net Sales:

(dollars in millions)	Quarter Ended September 30,
Segment	2019		2018		Change			% Change
Material Handling	$	84.1	$	97.7	$	(13.6	)		(14	)%
Distribution		41.4		37.5		3.9			10	%
Inter-company sales		—		—		—
Total net sales	$	125.5	$	135.2	$	(9.7	)		(7	)%

Net sales for the quarter ended September 30, 2019 were $125.5 million, a decrease of $9.7 million or 7% compared to the quarter ended September 30, 2018. Net sales were negatively impacted by lower volume, primarily in the Material Handling Segment, of $12.0 million and the effect of unfavorable currency translation of $0.1 million, and were partially offset by $2.4 million of incremental sales due to the Tuffy acquisition on August 26, 2019. Tuffy’s annual sales are approximately $20 million.

Net sales in the Material Handling Segment decreased $13.6 million or 14% for the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018. The decrease in net sales was due to lower volume of $13.4 million, lower pricing of $0.1 million and the effect of unfavorable foreign currency translation of $0.1 million. The lower volume was primarily due to declines in the food and beverage market and the industrial market.

25

Net sales in the Distribution Segment increased $3.9million or 10%for the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018, primarily the result of higher volume of $1.4 million, higher pricing of $0.1 million and $2.4 million of incremental sales due to the Tuffy acquisition.

Cost of Sales & Gross Profit:

	Quarter Ended September 30,
(dollars in millions)	2019			2018			Change			% Change
Cost of sales	$	85.9		$	93.1		$	(7.2	)		(8	)%
Gross profit	$	39.6		$	42.1		$	(2.5	)		(6	)%
Gross profit as a percentage of sales		31.5	%		31.1	%

Gross profit margin increased to 31.5% in the quarter ended September 30, 2019 compared to 31.1% for the quarter ended September 30, 2018, primarily due to lower commodity raw material costs. This was partially offset by the $3.5 million charge in the Material Handling Segment for estimated replacement costs of certain defective boxes as discussed in Note 8.

Selling, General and Administrative Expenses:

	Quarter Ended September 30,
(dollars in millions)	2019			2018			Change			% Change
SG&A expenses	$	31.5		$	34.4		$	(2.9	)		(8	)%
SG&A expenses as a percentage of sales		25.1	%		25.4	%

Selling, general and administrative (“SG&A”) expenses for the quarter ended September 30, 2019 were $31.5 million, a decrease of $2.9 million or 8% compared to the same period in the prior year. SG&A expenses in the third quarter 2019 were impacted primarily by lower compensation and benefit costs of $2.5 million, which includes lower incentive compensation within Material Handling and Corporate and savings from the Distribution Transformation Plan described below, lower legal and professional fees of $0.5 million and lower depreciation and amortization of $0.3 million. This was partially offset by $0.5 million of costs related to the acquisition of Tuffy. The Company expects additional SG&A benefit of $2.3 million in the fourth quarter of 2019 related to forfeiture of stock awards due to the resignation of the Company’s President and Chief Executive Officer (“CEO”) in October 2019.

Restructuring:

As discussed in Note 6, the Company has implemented various restructuring programs.

The Ameri-Kart Plan was announced during the first quarter of 2019 and is expected to be substantially completed in the first half of 2020. No costs were incurred during the quarter ended September 30, 2019 related to the Ameri-Kart Plan. As previously announced, the Company expects annualized benefits of approximately $1.5 million upon completion.

The Distribution Transformation Plan was announced during the first quarter of 2019 and is expected to be substantially completed by the end of 2019. No significant amounts were recognized in connection with the Distribution Transformation Plan during the quarter ended September 30, 2019. As previously announced, the Company expects annualized benefits of $5 to $7 million after 2019.

The Material Handling Plan was initiated in the first quarter of 2017 and is completed.

Other Expenses:

During the quarter ended September 30, 2018, the Company recorded a provision for expected loss of $23.0 million as a result of the uncertainty regarding the ability to collect on the notes receivable and corresponding accrued interest from the sale of the Lawn and Garden business, as discussed in Note 5. During the quarter ended September 30, 2018, the Company also recorded a charge of $10.3 million related to the Company’s estimate of its obligation under the lease guarantee on one of HC’s facilities, as discussed in Note 13.

26

Net Interest Expense:

	Quarter Ended September 30,
(dollars in millions)	2019			2018			Change			% Change
Net interest expense	$	1.0		$	0.9		$	0.1			11	%
Average outstanding borrowings, net	$	78.0		$	79.2		$	(1.2	)		(2	)%
Weighted-average borrowing rate		6.28	%		6.55	%

Net interest expense for the quarter ended September 30, 2019 was $1.0 million, an increase of $0.1 million, or 11%, compared with $0.9 million for the quarter ended September 30, 2018. The higher net interest expense was due primarily to lower interest income in the current year. The lower interest income was driven by the Company no longer recognizing interest income on the notes receivable from the sale of the Lawn and Garden business as of September 30, 2018 as discussed in Note 5.

Income Taxes:

	Quarter Ended September 30,
(dollars in millions)	2019			2018
Income from continuing operations before income taxes	$	7.1		$	(26.7	)
Income tax expense	$	1.8		$	(5.6	)
Effective tax rate		26.2	%		20.9	%

The Company’s effective tax rate was 26.2% for the quarter ended September 30, 2019, compared to 20.9% for the quarter ended September 30, 2018. The effective tax rate was higher in 2019 primarily due to the lower rate on the tax benefit on the provision for expected loss on the note receivable and lease guarantee liability recorded in the third quarter of 2018 related to HC as discussed in Note 5 and Note 13.

Comparison of the Nine Months Ended September 30, 2019 to the Nine Months Ended September 30, 2018

Net Sales:

(dollars in millions)	Nine Months Ended September 30,
Segment	2019		2018			Change			% Change
Material Handling	$	283.0	$	317.6		$	(34.6	)		(11	)%
Distribution		115.9		110.8			5.1			5	%
Inter-company elimination		—		(0.1	)		0.1
Total net sales	$	398.9	$	428.3		$	(29.4	)		(7	)%

Net sales for the nine months ended September 30, 2019 were $398.9 million, a decrease of $29.4 million or 7% compared to the nine months ended September 30, 2018. Net sales were negatively impacted by lower volume of $33.0 million and the effect of unfavorable currency translation of $1.0 million, and were partially offset by higher pricing of approximately $2.2 million and $2.4 million of incremental sales due to the Tuffy acquisition on August 26, 2019. Tuffy’s annual sales are approximately $20 million.

Net sales in the Material Handling Segment decreased $34.6 million or 11% for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018. The decrease in net sales was due to lower volume of $35.6 million and the effect of unfavorable foreign currency translation of $1.0 million, partially offset by higher pricing of approximately $2.0 million. Volume was lower primarily due to declines in the food and beverage market and the vehicle market (mainly in the recreational vehicle market).

Net sales in the Distribution Segment increased $5.1 million or 5% for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018, primarily the result of higher volume of $2.5 million, $2.4 million of incremental sales due to the Tuffy acquisition and higher pricing of $0.2 million.

27

Cost of Sales & Gross Profit:

	Nine Months Ended September 30,
(dollars in millions)	2019			2018			Change			% Change
Cost of sales	$	266.8		$	291.2		$	(24.4	)		(8	)%
Gross profit	$	132.1		$	137.2		$	(5.1	)		(4	)%
Gross profit as a percentage of sales		33.1	%		32.0	%

Gross profit margin increased to 33.1% in the nine months ended September 30, 2019 compared to 32.0% for the nine months ended September 30, 2018, primarily due to lower commodity raw material costs and higher pricing of $2.0 million in the Material Handling Segment. This was partially offset by the $3.5 million charge for estimated replacement costs of certain defective boxes as discussed in Note 8 and unfavorable changes in product mix in the Material Handling Segment.

Selling, General and Administrative Expenses:

	Nine Months Ended September 30,
(dollars in millions)	2019			2018			Change			% Change
SG&A expenses	$	102.8		$	104.4		$	(1.6	)		(2	)%
SG&A expenses as a percentage of sales		25.8	%		24.4	%

SG&A expenses for the nine months ended September 30, 2019 were $102.8 million, a decrease of $1.6 million or 2% compared to the same period in the prior year.  SG&A expenses in 2019 include a $4.0 million charge related to the environmental contingencies discussed in Note 13 and restructuring costs of $0.9 million incurred in the current year related to the Distribution Transformation Plan. This was more than offset by lower compensation and benefit costs of $4.4 million, which includes lower incentive compensation within Material Handling and Corporate and savings from the Distribution Transformation Plan described below, as well as lower freight costs of $1.2 million and lower depreciation and amortization of $0.8 million. The Company expects additional SG&A benefit of $2.3 million in the fourth quarter of 2019 related to forfeiture of stock awards due to the resignation of the CEO in October 2019.

Restructuring:

As discussed in Note 6, the Company has implemented various restructuring programs.

The Ameri-Kart Plan was announced during the first quarter of 2019 and is expected to be substantially completed in the first half of 2020. No costs were incurred during the nine months ended September 30, 2019 related to the Ameri-Kart Plan. As previously announced, the Company expects annualized benefits of approximately $1.5 million upon completion.

The Distribution Transformation Plan was announced during the first quarter of 2019 and is expected to be substantially completed by the end of 2019. The Company incurred $0.9 million of restructuring costs in connection with the Distribution Transformation Plan during the nine months ended September 30, 2019. As previously announced, the Company expects annualized benefits of $5 to $7 million after 2019.

The Material Handling Plan was initiated in the first quarter of 2017 and is completed. No costs were incurred during the nine months ended September 30, 2019 compared to $0.1 million of restructuring costs incurred in connection with the Material Handling Plan during the nine months ended September 30, 2018.

Impairment Charges:

During the nine months ended September 30, 2019, the Company recognized an impairment charge of $0.9 million compared to $0.3 million in the prior year. The impairment in 2019 primarily related to a facility that was previously closed in connection with the Material Handling Plan and reclassified as held for sale during the first quarter of 2019, as discussed in Note 6.

28

Other Expenses:

During the quarter ended September 30, 2018, the Company recorded a provision for expected loss of $23.0 million as a result of the uncertainty regarding the ability to collect on the notes receivable and corresponding accrued interest from the sale of the Lawn and Garden business, as discussed in Note 5. During the quarter ended September 30, 2018, the Company also recorded a charge of $10.3 million related to the Company’s estimate of its obligation under the lease guarantee on one of HC’s facilities, as discussed in Note 13.

Net Interest Expense:

	Nine Months Ended September 30,
(dollars in millions)	2019			2018			Change			% Change
Net interest expense	$	3.1		$	3.8		$	(0.7	)		(18	)%
Average outstanding borrowings, net	$	78.0		$	115.8		$	(37.8	)		(33	)%
Weighted-average borrowing rate		6.26	%		5.70	%

Net interest expense for the nine months ended September 30, 2019 was $3.1 million, a decrease of $0.7 million, or 18%, compared with $3.8 million during the nine months ended September 30, 2018. The lower interest expense was due primarily to the lower average outstanding borrowings during the nine months ended September 30, 2019 as compared to the same period in 2018. The lower borrowings were driven by cash flow from operations and the proceeds generated by the public equity offering completed in the second quarter of 2018.

Income Taxes:

	Nine Months Ended September 30,
(dollars in millions)	2019			2018
Income from continuing operations before income taxes	$	25.4		$	(4.5	)
Income tax expense	$	6.9		$	0.2
Effective tax rate		27.3	%		(5.1	%)

The Company’s effective tax rate was 27.3% for the nine months ended September 30, 2019, compared to (5.1%) for the nine months ended September 30, 2018. The effective tax rate was higher in 2019 primarily due to the lower rate on the tax benefit on the provision for expected loss on the note receivable and lease guarantee liability recorded in the third quarter of 2018 related to HC as discussed in Note 5 and Note 13.

Discontinued Operations:

Income from discontinued operations, net of income taxes was $0.1 million for the nine months ended September 30, 2019 compared to a loss of $0.9 million for the nine months ended September 30, 2018. The loss in 2018 related to a charge of $0.9 million, net of tax of $0.3 million, as a result of agreement on the material terms of a settlement with the L&G Buyer related to the indemnification claims discussed in Note 13.

Liquidity and Capital Resources:

The Company’s primary sources of liquidity are cash generated from its operating and financing activities. The cash flows from operating activities are driven primarily by results of operations and changes in its working capital requirements, which is supplemented by use of its current credit facilities. In addition, the Company completed a public equity offering in the second quarter of 2018 that generated $79.5 million of net proceeds. The Company used a portion of the net proceeds received from the offering to repay a portion of its outstanding indebtedness during the second quarter of 2018 and intends to use the remaining proceeds to fund the growth of the business, including selective acquisitions, and for other general corporate purposes.

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

29

Operating Activities

Net cash provided by operating activities from continuing operations was $39.5 million for the nine months ended September 30, 2019, compared to $41.1 million in the same period in 2018. The decrease was primarily due to changes in working capital of $2.7 million, which was primarily driven by a higher variable compensation payout.

Net cash provided by operating activities from discontinued operations was $7.3 million in 2019 and resulted from the remaining receipt of the tax benefit from the worthless stock deduction related to the Brazil Business (see Note 5). Net cash flows provided by discontinued operations in 2018 resulted from the partial receipt of the tax benefit from the worthless stock deduction related to the Brazil Business. The worthless stock deduction allowed the Company to reduce its estimated federal tax payments in 2018 by $4.3 million. This was partially offset by the payment of expenses related to the sale of the Brazil Business and the payment of the settlement with the L&G Buyer.

Investing Activities

Net cash used by investing activities of continuing operations was $16.2 million for the nine months ended September 30, 2019 compared to cash used of $0.9 million for the nine months ended September 30, 2018. In August 2019, the Company paid $18.0 million to acquire Tuffy as discussed in Note 3. The preliminary estimated working capital adjustment of $0.6 million has not been paid as of September 30, 2019. Capital expenditures were $5.7 million and $3.6 million for the nine months ended September 30, 2019 and 2018, respectively. Full year 2019 capital expenditures are expected to be approximately $10 million. Proceeds from the sale of fixed assets were $7.5 million in 2019, substantially all of which was derived from the sale of two buildings previously classified as held for sale, as discussed in Note 4 and Note 6. Proceeds from the sale of fixed assets were $2.6 million in 2018, which were primarily due to the sale and leaseback of the distribution center in Pomona, California, as discussed in Note 17.

Financing Activities

The Company received net proceeds of $79.5 million from the public offering of common stock in 2018. Net payments on the credit facility were $74.6 million for the nine months ended September 30, 2018.  There were no net payments or borrowings on the credit facility for the nine months ended September 30, 2019. The Company used cash to pay dividends of $14.5 million and $13.0 million for the nine months ended September 30, 2019 and 2018, respectively.  

Credit Sources

In March 2017, the Company entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement”).  The Loan Agreement replaced the pre-existing $300 million senior revolving credit facility with a $200 million facility and extended the term from December 2018 to March 2022.  The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45%, payable semiannually, and maturing between 2021 and 2026. At September 30, 2019, $78 million of the Notes were outstanding.

Total debt outstanding at September 30, 2019 was $77.1 million, net of $0.9 million of deferred financing costs, compared with $76.8 million, net of $1.2 million of deferred financing costs, at December 31, 2018. The Company’s Loan Agreement provides available borrowing up to $200 million, reduced for letters of credit issued. As of September 30, 2019, the Company had $5.8 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business and there was $194.2 million available under our Loan Agreement.

As of September 30, 2019, the Company was in compliance with all its debt covenants. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of and for the period ended September 30, 2019 are shown in the following table:

	Required Level	Actual Level
Interest Coverage Ratio	3.00 to 1 (minimum)		14.55
Leverage Ratio	3.25 to 1 (maximum)		1.18

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have, or are reasonably expected to have, a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources.

30

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. The Company’s financial results are subject to changes in the market rate of interest. 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. As of September 30, 2019, the Company has no borrowings outstanding under its floating rate debt.

Foreign Currency Exchange Risk

Some 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 sales made from businesses in Canada to customers in the United States (“U.S.”). These sales are denominated in U.S. dollars. 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 September 30, 2019, the Company had no foreign currency arrangements or contracts in place.

Commodity Price Risk

The Company uses certain commodities, primarily plastic resins, in its manufacturing processes. The cost of operations can be affected as the market for these commodities changes. The Company currently has no derivative contracts to hedge this risk; however, the Company also has no significant purchase obligations to purchase fixed quantities of such commodities in future periods. Significant future increases in the cost of plastic resin or other adverse changes in the general economic environment could have a material adverse impact on the Company’s financial position, results of operations or cash flows.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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

The Company carries out a variety of on-going procedures, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2019.

Changes in Internal Control Over Financial Reporting

During the nine months ended September 30, 2019, 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.

31

PART II – Other Information

Item 1.Legal Proceedings

Certain legal proceedings in which the Company is involved are discussed in Note 13, 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, 2018. The Company’s disclosures relating to legal proceedings in Note 13, 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

The following table presents information regarding the Company’s stock repurchase plan during the quarter ended September 30, 2019.

	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)
7/1/2019 to 7/31/2019		—	$	—		5,547,665		2,452,335
8/1/2019 to 8/31/2019		—		—		5,547,665		2,452,335
9/1/2019 to 9/30/2019		—		—		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.

Item 6. Exhibits

3(a)	Myers Industries, Inc. Amended and Restated Articles of Incorporation. Reference is made to Exhibit 3(a) to Form 10-K filed with the Commission on March 16, 2005.
3(b)	Myers Industries, Inc. Amended and Restated Code of Regulations. Reference is made to Exhibit 3.1 to Form 8-K filed with the Commission on April 12, 2013.
31.1	Certification of Andrean R. Horton, Interim President and Chief Executive Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Kevin L. Brackman, Executive Vice President and Chief Financial Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Andrean R. Horton, Interim President and Chief Executive Officer, and Kevin L. Brackman, Executive Vice President and 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 September 30, 2019, formatted in 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.

32

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.
November 5, 2019	/s/ Kevin L. Brackman
	Kevin L. Brackman
	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

33

EX-31.1

Exhibit 31.1

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

I, Andrean R. Horton, 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:	November 5, 2019	/s/ Andrean R. Horton
		Andrean R. Horton, Interim President and Chief Executive Officer

EX-31.2

Exhibit 31.2

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

I, Kevin L. Brackman, 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:	November 5, 2019	/s/ Kevin L. Brackman
		Kevin L. Brackman, Executive Vice President and 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 September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Andrean R. Horton, Interim 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 September 30, 2019 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:	November 5, 2019	/s/ Andrean R. Horton
		Andrean R. Horton, Interim 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 September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Kevin L. Brackman, Executive Vice President and 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 September 30, 2019 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:	November 5, 2019	/s/ Kevin L. Brackman
		Kevin L. Brackman, Executive Vice President and 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

Leases (Table)

9 Months Ended

Sep. 30, 2019

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:

	September 30, 2019
Right of use asset - operating leases	$	6,384
Operating lease liability - short-term	$	2,215
Operating lease liability - long-term		4,402
Total operating lease liabilities	$	6,617

Schedule of Lease Expense

The components of lease expense include:

		Quarter Ended		Nine Months Ended
Lease Cost	Classification	September 30, 2019		September 30, 2019
Operating lease cost (1)	Cost of sales	$	453	$	1,310
Operating lease cost (1)	Selling, general and administrative expenses		441		1,338
Total lease cost		$	894	$	2,648

(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:

	Nine Months Ended
Supplemental Cash Flow Information	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,808
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		2,029

Lease Term and Discount Rate	September 30, 2019
Weighted-average remaining lease term (years)
Operating leases		4.35
Weighted-average discount rate
Operating leases		5.0	%

Maturity of Operating Lease Lease Liabilities

Maturity of Lease Liabilities - As of September 30, 2019	Operating Leases
2019 (1)	$	620
2020		2,247
2021		1,339
2022		1,189
2023		1,016
After 2023		961
Total lease payments		7,372
Less: Interest		(755	)
Present value of lease liabilities	$	6,617

(1) Represents amounts due in 2019 after September 30, 2019

Future Minimum Rental Commitments

Future minimum rental commitments (undiscounted) as of December 31, 2018 under ASC 840 were as follows:

Year Ended December 31,
2019	$	2,492
2020		1,739
2021		982
2022		966
2023		841
Thereafter		811
Total	$	7,831

XML

Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 162,410	$ 181,261	$ 154,638	$ 93,752
Total other comprehensive income (loss)	(466)	649	1,069	(1,308)
Ending balance	163,820	159,057	163,820	159,057
Foreign Currency [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(16,251)
Other comprehensive income (loss) before reclassifications			1,069
Total other comprehensive income (loss)			1,069
Ending balance	(15,182)		(15,182)
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(2,029)
Other comprehensive income (loss) before reclassifications			0
Total other comprehensive income (loss)			0
Ending balance	(2,029)		(2,029)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(16,745)	(16,498)	(18,280)	(14,541)
Other comprehensive income (loss) before reclassifications			1,069
Total other comprehensive income (loss)			1,069
Ending balance	$ (17,211)	$ (15,849)	$ (17,211)	$ (15,849)

XML

Acquisition - Additional Information (Details) - Tuffy Manufacturing Industries, Inc. [Member] $ in Millions	Aug. 26, 2019 USD ($)
Business Acquisition [Line Items]
Purchase price of acquisition	$ 18.6
Estimated working capital adjustment	$ 0.6

XML

Net Income per Common Share - Additional Information (Details) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of net earnings or loss per common share	638,073	631,300

XML

Other Liabilities - Schedule of Other Liabilities (Long-term) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Lease guarantee contingency	$ 10,642	$ 10,402
Environmental reserves	6,692	3,702
Supplemental executive retirement plan liability	1,796	2,026
Pension liability	1,293	1,207
Deferred gain on sale of assets		1,237
Other long-term liabilities	2,283	1,220
Other liabilities (long-term), Total	$ 22,706	$ 19,794

XML

Subsequent Event

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Event

19.  Subsequent Event

On October 1, 2019, the Company’s President and Chief Executive Officer (“CEO”) tendered his resignation effective October 25, 2019. In connection with the CEO’s departure, unvested stock awards will be forfeited. Previously recognized compensation expense of $2.3 million will be reversed in the fourth quarter of 2019, the period of forfeiture. The CEO is not entitled to severance payments based on terms of his departure.

XML

Retirement Plans

9 Months Ended

Sep. 30, 2019

Compensation And Retirement Disclosure [Abstract]

Retirement Plans

15.  Retirement Plans

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

Net periodic pension cost is as follows:

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Interest cost	$	60		$	56		$	180		$	168
Expected return on assets		(46	)		(79	)		(138	)		(237	)
Amortization of net loss		24			21			72			63
Net periodic pension cost	$	38		$	(2	)	$	114		$	(6	)

The Company contributed $31 to the plan in the third quarter of 2019.

XML

Stock Compensation

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Compensation

11.  Stock Compensation

The Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”) authorizes the Compensation Committee of the Board of Directors to issue up to 5,126,950 shares of various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant.

In March 2019, the Company granted 235,474 stock options with a weighted average exercise price of $18.54 per share and a weighted average fair value of $5.78 per share. The fair value of options granted is estimated using a binomial lattice option pricing model. Also in March 2019, the Company granted 77,810 and 101,500 time-based and performance-based restricted stock units, respectively, with a weighted average fair value of $18.54 per share. In April 2019, the Company granted 33,152 time-based restricted stock units with a weighted average fair value of $18.10 per share. During the third quarter of 2019, the Company granted 10,296 time-based restricted stock units with a weighted average fair value of $16.61 per share.

Stock compensation expense was approximately $1.1 million and $1.2 million for the quarters ended September 30, 2019 and 2018, respectively, and $3.3 million and $3.5 million for the nine months ended September 30, 2019 and 2018, respectively. These expenses are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited). Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at September 30, 2019 was approximately $6.4 million, which will be recognized over the next three years, as such compensation is earned.

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Inventories

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Inventories

7.  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 at 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. During 2019 and 2018, one inventory pool had a reduction in inventory quantities that was expected to remain at year-end, and therefore an adjustment was recorded for the nine months ended September 30, 2019 and 2018 to decrease cost of sales by $0.3 million and $0.5 million, respectively, as a result of the liquidation of LIFO inventories. No adjustment to the LIFO reserve was recorded for the quarters ended September 30, 2019 and 2018.

Inventories consisted of the following:

	September 30,		December 31,
	2019		2018
Finished and in-process products	$	30,444	$	27,960
Raw materials and supplies		13,565		15,636
	$	44,009	$	43,596

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Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Allowance for Doubtful Accounts Receivable, Current	$ 2,124	$ 2,259
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)	35,512,301	35,374,121
Common shares, treasury (in shares)	7,040,156	7,178,336

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Net sales	$ 125,480	$ 135,219	$ 398,880	$ 428,347
Cost of sales	85,894	93,128	266,799	291,150
Gross profit	39,586	42,091	132,081	137,197
Selling, general and administrative expenses	31,515	34,381	102,792	104,360
(Gain) loss on disposal of fixed assets	11	218	(87)	(96)
Impairment charges	0	0	916	308
Other expenses	0	33,331	0	33,331
Operating income (loss)	8,060	(25,839)	28,460	(706)
Interest expense, net	993	883	3,059	3,835
Income (loss) from continuing operations before income taxes	7,067	(26,722)	25,401	(4,541)
Income tax expense (benefit)	1,848	(5,585)	6,933	233
Income (loss) from continuing operations	5,219	(21,137)	18,468	(4,774)
Income (loss) from discontinued operations, net of income tax	0	(2)	127	(913)
Net income (loss)	$ 5,219	$ (21,139)	$ 18,595	$ (5,687)
Income (loss) per common share from continuing operations:
Basic	$ 0.15	$ (0.60)	$ 0.52	$ (0.15)
Diluted	0.15	(0.60)	0.52	(0.15)
Income (loss) per common share from discontinued operations:
Basic	0	0	0	(0.02)
Diluted	0	0	0	(0.02)
Net income (loss) per common share:
Basic	0.15	(0.60)	0.52	(0.17)
Diluted	$ 0.15	$ (0.60)	$ 0.52	$ (0.17)

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Acquisition

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisition

3.  Acquisition

On August 26, 2019, the Company acquired the assets of Tuffy Manufacturing Industries, Inc. (“Tuffy”), a warehouse distributor of tire repair equipment and supplies, which is included in the Company’s Distribution Segment. The Tuffy acquisition aligns with the Company’s strategy to grow in key niche markets and focus on strategic account customers. The purchase price for the acquisition was $18.6 million, which includes a preliminary estimated working capital adjustment of $0.6 million subject to further adjustment based on the final working capital. The Company funded the acquisition using available cash.

The acquisition of Tuffy 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	$	2,072
Inventories		2,657
Prepaid expenses		20
Property, plant and equipment		124
Right of use asset - operating leases		229
Intangible assets		8,400
Goodwill		7,051
Assets acquired	$	20,553
Liabilities assumed:
Accounts payable	$	1,714
Operating lease liability - short term		112
Operating lease liability - long term		117
Total liabilities assumed		1,943
Net acquisition cost	$	18,610

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		7,300	7.3 years
Trade name		500	5.0 years
Non-competition agreements		600	5.0 years
Total amortizable intangible assets	$	8,400

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Revenue Recognition [Abstract]

Schedule of Revenue by Major Market

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

	For the Quarter Ended September 30, 2019
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	19,205	$	—	$	—		$	19,205
Vehicle		21,951		—		—			21,951
Food and beverage		13,010		—		—			13,010
Industrial		29,944		—		(18	)		29,926
Auto aftermarket		—		41,388		—			41,388
Total net sales	$	84,110	$	41,388	$	(18	)	$	125,480

	For the Quarter Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	20,048	$	—	$	—		$	20,048
Vehicle		23,037		—		—			23,037
Food and beverage		19,159		—		—			19,159
Industrial		35,438		—		(20	)		35,418
Auto aftermarket		—		37,557		—			37,557
Total net sales	$	97,682	$	37,557	$	(20	)	$	135,219

	For the Nine Months Ended September 30, 2019
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	59,505	$	—	$	—		$	59,505
Vehicle		66,433		—		—			66,433
Food and beverage		54,977		—		—			54,977
Industrial		102,048		—		(40	)		102,008
Auto aftermarket		—		115,957		—			115,957
Total net sales	$	282,963	$	115,957	$	(40	)	$	398,880

	For the Nine Months Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	64,325	$	—	$	—		$	64,325
Vehicle		75,338		—		—			75,338
Food and beverage		72,124		—		—			72,124
Industrial		105,834		—		(89	)		105,745
Auto aftermarket		—		110,815		—			110,815
Total net sales	$	317,621	$	110,815	$	(89	)	$	428,347

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:

	September 30,			December 31,			Statement of Financial Position
	2019			2018			Classification
Returns, discounts and other allowances	$	(593	)	$	(1,169	)	Accounts receivable
Right of return asset		310			535		Inventories, net
Customer deposits		(108	)		(806	)	Other current liabilities
Accrued rebates		(2,201	)		(2,559	)	Other current liabilities

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Inventories (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Summary of Determination Cost of Inventories

Inventories consisted of the following:

	September 30,		December 31,
	2019		2018
Finished and in-process products	$	30,444	$	27,960
Raw materials and supplies		13,565		15,636
	$	44,009	$	43,596

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Long-Term Debt and Loan Agreements (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Long Term Debt

Long-term debt consisted of the following:

	September 30,		December 31,
	2019		2018
Loan Agreement	$	—	$	—
4.67% Senior Unsecured Notes due 2021		40,000		40,000
5.25% Senior Unsecured Notes due 2024		11,000		11,000
5.30% Senior Unsecured Notes due 2024		15,000		15,000
5.45% Senior Unsecured Notes due 2026		12,000		12,000
		78,000		78,000
Less unamortized deferred financing costs		920		1,210
	$	77,080	$	76,790

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Inventories - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Inventories
Percentage of LIFO Inventory	40.00%		40.00%
LIFO inventories, decrease in cost of sales	$ 0	$ 0	$ 300,000	$ 500,000

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Disposal of Businesses - Summary of Selected Financial Information for Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income (loss) from discontinued operations, net of income tax	$ 0	$ (2)	$ 127	$ (913)
Brazil Business, Lawn and Garden Business [Member]
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales	0	0	0	0
Cost of sales	0	0	0	0
Selling, general, and administrative	0	123	0	1,348
(Gain) loss on disposal of assets	0	0	0	0
Interest income, net	0	0	(174)	0
Income (loss) from discontinued operations before income tax	0	(123)	174	(1,348)
Income tax expense (benefit)	0	(121)	47	(435)
Income (loss) from discontinued operations, net of income tax	$ 0	$ (2)	$ 127	$ (913)

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Acquisition - Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Aug. 26, 2019	Dec. 31, 2018
Assets acquired:
Goodwill	$ 66,428		$ 59,068
Tuffy Manufacturing Industries, Inc. [Member]
Assets acquired:
Accounts receivable		$ 2,072
Inventories		2,657
Prepaid expenses		20
Property, plant and equipment		124
Right of use asset - operating leases		229
Intangible assets		8,400
Goodwill		7,051
Assets acquired		20,553
Liabilities assumed:
Accounts payable		1,714
Operating lease liability - short term		112
Operating lease liability - long term		117
Total liabilities assumed		1,943
Net acquisition cost		$ 18,610

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Industry Segments - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) Segment	Sep. 30, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment			2
Net sales	$ 125,480	$ 135,219	$ 398,880	$ 428,347
Foreign Countries [Member]
Segment Reporting Information [Line Items]
Net sales	$ 8,600	$ 14,600	$ 32,800	$ 39,200

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Retirement Plans - Net Periodic Pension Cost (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 60	$ 56	$ 180	$ 168
Expected return on assets	(46)	(79)	(138)	(237)
Amortization of net loss	24	21	72	63
Net periodic pension cost	$ 38	$ (2)	$ 114	$ (6)

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Leases - Summary of Amounts Included in the Condensed Consolidated Statement of Financial Position (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets And Liabilities Lessee [Abstract]
Right of use asset - operating leases	$ 6,384	$ 0
Operating lease liability - short-term	2,215	0
Operating lease liability - long-term	4,402	$ 0
Total operating lease liabilities	$ 6,617

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Other Liabilities

9 Months Ended

Sep. 30, 2019

Other Liabilities Disclosure [Abstract]

Other Liabilities

8.  Other Liabilities

The balance in other current liabilities is comprised of the following:

	September 30,		December 31,
	2019		2018
Customer deposits and accrued rebates	$	2,309	$	3,365
Dividends payable		5,242		5,260
Accrued litigation, claims and professional fees		958		460
Current portion of environmental reserves		1,499		1,229
Accrued product replacement costs		2,300		—
Other accrued expenses		5,727		6,387
	$	18,035	$	16,701

In August 2019, a manufacturing defect was identified for certain boxes produced within the Material Handling segment in May and June 2019. Certain of the affected boxes require replacement. The total range of cost to replace these boxes is estimated to be $3.5 million to $4.0 million. In the quarter ended September 30, 2019, $3.5 million of estimated costs were recorded related to this matter, of which $2.3 million remains accrued as of September 30, 2019 and is included within other current liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

The balance in other liabilities (long-term) is comprised of the following:

	September 30,		December 31,
	2019		2018
Lease guarantee contingency	$	10,642	$	10,402
Environmental reserves		6,692		3,702
Supplemental executive retirement plan liability		1,796		2,026
Pension liability		1,293		1,207
Deferred gain on sale of assets		—		1,237
Other long-term liabilities		2,283		1,220
	$	22,706	$	19,794

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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, 2017	$ 93,752	$ 18,547	$ 209,253	$ (14,541)	$ (119,507)
Stockholders' Equity [Roll Forward]
Net income	(5,687)	0	0	0	(5,687)
Foreign currency translation adjustment	(1,194)	0	0	(1,194)	0
Shares issued under incentive plans, net of shares withheld for tax	2,379	170	2,209	0	0
Stock compensation expense	3,919	0	3,919	0	0
Pension liability, net of tax	201	0	0	201	0
Shares issued in public offering, netof equity issuance costs	79,522	2,806	76,716	0	0
Declared dividends	(13,835)	0	0	0	(13,835)
Ending balance at Sep. 30, 2018	159,057	21,523	292,097	(15,849)	(138,714)
Beginning balance at Jun. 30, 2018	181,261	21,430	289,088	(16,498)	(112,759)
Stockholders' Equity [Roll Forward]
Net income	(21,139)	0	0	0	(21,139)
Foreign currency translation adjustment	649	0	0	649	0
Shares issued under incentive plans, net of shares withheld for tax	1,875	93	1,782	0	0
Stock compensation expense	1,227	0	1,227	0	0
Declared dividends	(4,816)	0	0	0	(4,816)
Ending balance at Sep. 30, 2018	159,057	21,523	292,097	(15,849)	(138,714)
Stockholders' Equity [Roll Forward]
Adoption of ASU | ASU 2018-02 [Member]	0	0	0	(315)	315
Beginning balance at Dec. 31, 2018	154,638	21,547	292,558	(18,280)	(141,187)
Stockholders' Equity [Roll Forward]
Net income	18,595	0	0	0	18,595
Foreign currency translation adjustment	1,069	0	0	1,069	0
Shares issued under incentive plans, net of shares withheld for tax	(230)	116	(346)	0	0
Stock compensation expense	3,348	0	3,348	0	0
Declared dividends	(14,505)	0	0	0	(14,505)
Ending balance at Sep. 30, 2019	163,820	21,663	295,560	(17,211)	(136,192)
Beginning balance at Jun. 30, 2019	162,410	21,646	294,066	(16,745)	(136,557)
Stockholders' Equity [Roll Forward]
Net income	5,219	0	0	0	5,219
Foreign currency translation adjustment	(466)	0	0	(466)	0
Shares issued under incentive plans, net of shares withheld for tax	383	17	366	0	0
Stock compensation expense	1,128	0	1,128	0	0
Declared dividends	(4,854)	0	0	0	(4,854)
Ending balance at Sep. 30, 2019	163,820	21,663	295,560	(17,211)	(136,192)
Stockholders' Equity [Roll Forward]
Adoption of ASU | ASU 2016-02 [Member]	$ 905	$ 0	$ 0	$ 0	$ 905

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 5,219	$ (21,139)	$ 18,595	$ (5,687)
Other comprehensive income (loss)
Adoption of ASU 2018-02				(315)
Foreign currency translation adjustment	(466)	649	1,069	(1,194)
Pension liability, net of tax expense of $67 in 2018				201
Total other comprehensive income (loss)	(466)	649	1,069	(1,308)
Comprehensive income (loss)	$ 4,753	$ (20,490)	$ 19,664	$ (6,995)

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Assets Held for Sale

9 Months Ended

Sep. 30, 2019

Property Plant And Equipment Assets Held For Sale Disclosure [Abstract]

Assets Held for Sale

4.  Assets Held for Sale

As part of its ongoing strategy, the Company continues to evaluate its various real estate holdings. As a result of these initiatives, certain buildings were reclassified as held for sale in 2018 and 2019. Based on the estimated fair value of these buildings (using primarily third party offers considered to be Level 2 inputs), less estimated costs to sell, the Company recorded impairment charges of $0.9 million and $0.3 million during the nine months ended September 30, 2019 and 2018, respectively. No impairment charges were recorded during the quarters ended September 30, 2019 and 2018.  As of December 31, 2018, the Company had classified $4.4 million of buildings as held for sale, in Other Assets in the Condensed Consolidated Statements of Financial Position (Unaudited). No assets were classified as held for sale as of September 30, 2019. During the first nine months of 2019, the Company sold two buildings previously held for sale for total net proceeds of $7.4 million. These buildings were included in the Company’s Material Handling Segment.

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Net Income per Common Share (Tables)

9 Months Ended

Sep. 30, 2019

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 September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Weighted average common shares outstanding basic		35,495,157		35,229,171		35,451,980		32,783,853
Dilutive effect of stock options and restricted stock		263,875		—		371,251		—
Weighted average common shares outstanding diluted		35,759,032		35,229,171		35,823,231		32,783,853

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Impacts of ASC 842 on Condensed Consolidated Financial Statements

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

	For the Quarter Ended September 30, 2019
	As Reported		Adjustments			Balances Without Adoption of ASC 842
Net sales	$	125,480	$	—		$	125,480
Cost of sales		85,894		—			85,894
Gross profit		39,586		—			39,586
Selling, general and administrative expenses		31,515		(34	)		31,481
(Gain) loss on disposal of fixed assets		11		—			11
Operating income		8,060		34			8,094
Interest expense, net		993		—			993
Income from continuing operations before income taxes		7,067		34			7,101
Income tax expense		1,848		9			1,857
Income from continuing operations	$	5,219	$	25		$	5,244

	For the Nine Months Ended September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Net sales	$	398,880		$	—		$	398,880
Cost of sales		266,799			—			266,799
Gross profit		132,081			—			132,081
Selling, general and administrative expenses		102,792			(101	)		102,691
(Gain) loss on disposal of fixed assets		(87	)		—			(87	)
Impairment charges		916			—			916
Operating income		28,460			101			28,561
Interest expense, net		3,059			—			3,059
Income from continuing operations before income taxes		25,401			101			25,502
Income tax expense		6,933			27			6,960
Income from continuing operations	$	18,468		$	74		$	18,542

	As of  September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Assets
Right of use asset - operating leases	$	6,384		$	(6,384	)	$	—
Deferred tax asset		6,074			306			6,380
Liabilities
Other current liabilities	$	18,035		$	233		$	18,268
Operating lease liability - short-term		2,215			(2,215	)		—
Operating lease liability - long-term		4,402			(4,402	)		—
Other liabilities		22,706			1,135			23,841
Shareholders’ Equity
Retained deficit	$	(136,192	)	$	(829	)	$	(137,021	)

The balances in the Company's 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 January 1, 2019	$	(16,251	)	$	(2,029	)	$	(18,280	)
Other comprehensive income (loss) before reclassifications		1,069			—			1,069
Net current-period other comprehensive income (loss)		1,069			—			1,069
Balance at September 30, 2019	$	(15,182	)	$	(2,029	)	$	(17,211	)

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2019

Restructuring And Related Activities [Abstract]

Summary of Restructuring Charges

The restructuring charges noted above for the nine months ended September 30, 2019 and 2018 are presented in the Condensed Consolidated Statements of Operations (Unaudited) as follows:

	For the Nine Months Ended September 30,
	2019						2018
Segment	Cost of Sales		SG&A		Total		Cost of Sales		SG&A		Total
Distribution	$	—	$	865	$	865	$	—	$	—	$	—
Material Handling		—		—		—		119		—		119
Total	$	—	$	865	$	865	$	119	$	—	$	119

Summary of Restructuring Activity

The table below summarizes restructuring activity for the nine months ended September 30, 2019:

	Employee Reduction			Accelerated Depreciation		Other Exit Costs		Total
Balance at January 1, 2019	$	30		$	—	$	—	$	30
Charges to expense		865			—		—		865
Cash payments		(767	)		—		—		(767	)
Non-cash utilization		—			—		—		—
Balance at September 30, 2019	$	128		$	—	$	—	$	128

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Restructuring - Additional Information (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) Position	Sep. 30, 2018 USD ($)
Restructuring Cost And Reserve [Line Items]
Restructuring charges				$ 865,000	$ 119,000
Net proceeds from sale of facility				7,400,000
SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges				$ 865,000	0
Ameri-Kart [Member]
Restructuring Cost And Reserve [Line Items]
Elimination of positions | Position				30
Expected restructuring charges		$ 900,000		$ 900,000
Restructuring charges		0		0
Additional expected restructuring charges		100,000		100,000
Ameri-Kart [Member] | SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Other restructuring associated costs incurred		100,000		100,000
Distribution Transformation Plan [Member]
Restructuring Cost And Reserve [Line Items]
Expected restructuring charges		900,000		900,000
Total restructuring costs incurred				900,000
Additional expected restructuring charges		0		0
Distribution Transformation Plan [Member] | SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Other restructuring associated costs incurred		0		200,000
Material Handling [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges				0	119,000
Material Handling [Member] | Equipment Relocation and Facility Shut Down Costs [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges			$ 0	0	100,000
Total restructuring costs incurred				7,700,000
Restructuring charges in employee severance and other employee-related costs				3,100,000
Restructuring charges in equipment relocation and facility shut down costs				2,600,000
Restructuring charges in accelerated depreciation charges on property, plant and equipment				2,000,000
Impairment charges		$ 900,000
Net proceeds from sale of facility	$ 2,900,000
Material Handling [Member] | SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges				$ 0	$ 0

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Acquisition - Summary of Intangible Assets (Details) - Tuffy Manufacturing Industries, Inc. [Member] $ in Thousands	Aug. 26, 2019 USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 8,400
Customer Relationships [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 7,300
Weighted Average Estimated Useful Life	7 years 3 months 18 days
Trade Name [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 500
Weighted Average Estimated Useful Life	5 years
Non-competition Agreements [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Fair value	$ 600
Weighted Average Estimated Useful Life	5 years

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Inventories - Summary of Significant Accounting Policies - Summary of Determination Cost of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished and in-process products	$ 30,444	$ 27,960
Raw materials and supplies	13,565	15,636
Inventory net	$ 44,009	$ 43,596

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Leases - Future Minimum Rental Commitments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Operating Leases, Future Rental Payments
2019	$ 2,492
2020	1,739
2021	982
2022	966
2023	841
Thereafter	811
Total	$ 7,831

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Long-Term Debt and Loan Agreements - Additional Information (Details) - USD ($)		3 Months Ended			9 Months Ended
	May 30, 2014	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term Debt		$ 78,000,000			$ 78,000,000		$ 78,000,000
Long-term Debt		$ 77,080,000			$ 77,080,000		$ 76,790,000
Weighted average interest rate during period		6.28%	6.55%		6.26%	5.70%
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 78,000,000			$ 78,000,000
Minimum [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 11,000,000			$ 11,000,000
Interest rate		4.67%			4.67%
Maximum [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 40,000,000			$ 40,000,000
Interest rate		5.45%			5.45%
Loan Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity on line of credit	$ 300,000,000	$ 200,000,000		$ 200,000,000	$ 200,000,000
Loan maturity period	2018-12			2022-03
Remaining amount available under the line of credit		194,200,000			194,200,000
Letters of credit		$ 5,800,000			$ 5,800,000

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Leases - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Feb. 27, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend			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
Operating lease, existence of option to terminate			true
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.
Proceeds from sale of property, plant and equipment			$ 7,514	$ 2,633
California [Member] | Distribution [Member]
Lessee Lease Description [Line Items]
Facility lease period			10 years
Proceeds from sale of property, plant and equipment	$ 2,300
Gain on sale of distribution center	$ 2,000	$ 700
Remaining gain on sale of distribution center		$ 1,300
Facility remaining lease period			10 years
Base annual rent, per year			$ 100
Base annual rent, first year			$ 100
Percentage of annual rent increase in remaining lease period			3.00%
Minimum [Member]
Lessee Lease Description [Line Items]
Facility lease period			1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Facility lease period			9 years

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Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Type of Cost, Good or Service [Extensible List]	us-gaap:ShippingAndHandlingMember	us-gaap:ShippingAndHandlingMember	us-gaap:ShippingAndHandlingMember	us-gaap:ShippingAndHandlingMember
Cost of sales	$ 85,894	$ 93,128	$ 266,799	$ 291,150
Selling, General and Administrative Expenses [Member]
Disaggregation Of Revenue [Line Items]
Cost of sales	2,000	2,100	6,200	7,400
Cost of Sales [Member]
Disaggregation Of Revenue [Line Items]
Cost of sales	$ 1,300	$ 1,400	$ 4,300	$ 4,200

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Retirement Plans (Tables)

9 Months Ended

Sep. 30, 2019

Compensation And Retirement Disclosure [Abstract]

Net periodic pension cost

Net periodic pension cost is as follows:

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Interest cost	$	60		$	56		$	180		$	168
Expected return on assets		(46	)		(79	)		(138	)		(237	)
Amortization of net loss		24			21			72			63
Net periodic pension cost	$	38		$	(2	)	$	114		$	(6	)

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Summary of Significant Accounting Policies - Summary of Impacts of ASC 842 on Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net sales	$ 125,480	$ 135,219	$ 398,880	$ 428,347
Cost of sales	85,894	93,128	266,799	291,150
Gross profit	39,586	42,091	132,081	137,197
Selling, general and administrative expenses	31,515	34,381	102,792	104,360
(Gain) loss on disposal of fixed assets	11	218	(87)	(96)
Impairment charges	0	0	916	308
Operating income (loss)	8,060	(25,839)	28,460	(706)
Interest expense, net	(993)	(883)	(3,059)	(3,835)
Income (loss) from continuing operations before income taxes	7,067	(26,722)	25,401	(4,541)
Income tax expense	1,848	(5,585)	6,933	233
Income (loss) from continuing operations	5,219	$ (21,137)	18,468	$ (4,774)
Assets
Right of use asset - operating leases	6,384		6,384			$ 0
Deferred income taxes	6,074		6,074			5,270
Liabilities
Other current liabilities	18,035		18,035			16,701
Operating lease liability - short-term	2,215		2,215			0
Operating lease liability - long-term	4,402		4,402			0
Other liabilities	22,706		22,706			19,794
Shareholders’ Equity
Retained deficit	(136,192)		(136,192)			$ (141,187)
ASU 2016-02 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net sales	125,480		398,880
Cost of sales	85,894		266,799
Gross profit	39,586		132,081
Selling, general and administrative expenses	31,515		102,792
(Gain) loss on disposal of fixed assets	11		(87)
Impairment charges			916
Operating income (loss)	8,060		28,460
Interest expense, net	993		3,059
Income (loss) from continuing operations before income taxes	7,067		25,401
Income tax expense	1,848		6,933
Income (loss) from continuing operations	5,219		18,468
Assets
Right of use asset - operating leases	6,384		6,384		$ 5,900
Deferred income taxes	6,074		6,074
Liabilities
Other current liabilities	18,035		18,035
Operating lease liability - short-term	2,215		2,215
Operating lease liability - long-term	4,402		4,402
Other liabilities	22,706		22,706
Shareholders’ Equity
Retained deficit	(136,192)		(136,192)
Adjustments [Member] | ASU 2016-02 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Selling, general and administrative expenses	(34)		(101)
Operating income (loss)	34		101
Income (loss) from continuing operations before income taxes	34		101
Income tax expense	9		27
Income (loss) from continuing operations	25		74
Assets
Right of use asset - operating leases	(6,384)		(6,384)
Deferred income taxes	306		306
Liabilities
Other current liabilities	233		233
Operating lease liability - short-term	(2,215)		(2,215)
Operating lease liability - long-term	(4,402)		(4,402)
Other liabilities	1,135		1,135
Shareholders’ Equity
Retained deficit	(829)		(829)
Balances Without Adoption of ASC 842 [Member] | ASU 2016-02 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net sales	125,480		398,880
Cost of sales	85,894		266,799
Gross profit	39,586		132,081
Selling, general and administrative expenses	31,481		102,691
(Gain) loss on disposal of fixed assets	11		(87)
Impairment charges			916
Operating income (loss)	8,094		28,561
Interest expense, net	993		3,059
Income (loss) from continuing operations before income taxes	7,101		25,502
Income tax expense	1,857		6,960
Income (loss) from continuing operations	5,244		18,542
Assets
Deferred income taxes	6,380		6,380
Liabilities
Other current liabilities	18,268		18,268
Other liabilities	23,841		23,841
Shareholders’ Equity
Retained deficit	$ (137,021)		$ (137,021)

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Stock Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended
	Apr. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense			$ 1.1	$ 1.2	$ 3.3	$ 3.5
Total unrecognized compensation cost related to non-vested share based compensation arrangements			$ 6.4		$ 6.4
Unrecognized compensation cost period for recognition					3 years
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of expiration, term					10 years
Options Granted		235,474
Options, Granted, Average exercise Price		$ 18.54
Options Granted, Average Fair Value price		$ 5.78
Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Granted During Period	33,152	77,810	10,296
Granted, Average Granted Date Fair Value	$ 18.10	$ 18.54	$ 16.61
Performance-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Granted During Period		101,500
Granted, Average Granted Date Fair Value		$ 18.54
2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for grant under plan (in shares)			5,126,950		5,126,950

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Goodwill and Intangible Assets - Change in Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 59,068
Acquisition	7,051
Foreign currency translation	309
Ending balance	66,428
Distribution [Member]
Goodwill [Roll Forward]
Beginning balance	505
Acquisition	7,051
Foreign currency translation	0
Ending balance	7,556
Material Handling [Member]
Goodwill [Roll Forward]
Beginning balance	58,563
Acquisition	0
Foreign currency translation	309
Ending balance	$ 58,872

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Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

16.  Income Taxes

The Company’s effective tax rate was 26.2% and 27.3% for the quarter and nine months ended September 30, 2019, respectively, compared to 20.9% and (5.1%) for the quarter and nine months ended September 30, 2018, respectively. The prior year effective rate was impacted by the lower tax rate for the tax benefit on the provision for expected loss on the note receivable and lease guarantee liability recorded in the third quarter of 2018 related to HC, as discussed in Note 5 and Note 13, respectively. 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 $1.0 million at September 30, 2019 and December 31, 2018.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of September 30, 2019, 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 Company is subject to state and local examinations for tax years of 2013 through 2018. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2014 through 2018.

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Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Equity

12.  Equity

In May 2018, the Company completed a public offering of 4,600,000 shares of its common stock at a price to the public of $18.50 per share. The net proceeds from the offering were approximately $79.5 million, after deducting underwriting discounts and commissions and $0.5 million of offering expenses paid by the Company. The Company used a portion of the net proceeds received from the offering to repay a portion of its outstanding indebtedness during the second quarter of 2018.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

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 U.S. generally accepted accounting principles (“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, 2018.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of September 30, 2019, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2019.

Accounting Standards Adopted and Not Yet Adopted

Accounting Standards Adopted

In February 2016, the FASB issued ASU 2016-02, Leases, which createdAccounting Standards Codification (“ASC”) Topic 842. Under ASU 2016-02, an entity recognizes right-of-use assets and lease liabilities on its balance sheet, and discloses key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new guidance effective January 1, 2019, using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected to apply the guidance at a portfolio level and use the discount rate corresponding to the remaining lease term at transition. Adoption of the new standard resulted in the recognition of right-of-use assets and lease liabilities of $5.9 million and $6.2 million, respectively, on January 1, 2019. The difference between the right-of-use assets and lease liabilities related primarily to the removal of previously recorded accrued rent balances as a result of recording straight-line rent expense for certain leases. In addition, the adoption resulted in an adjustment to opening retained earnings (deficit) of approximately $0.9 million, net of tax, on January 1, 2019. This cumulative-effect transition adjustment to opening retained earnings (deficit) related to the recognition of the remaining deferred gain on the sale-leaseback transaction that occurred in 2018. The standard did not have a material impact on the Company’s condensed consolidated results of operations or cash flows.

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

	For the Quarter Ended September 30, 2019
	As Reported		Adjustments			Balances Without Adoption of ASC 842
Net sales	$	125,480	$	—		$	125,480
Cost of sales		85,894		—			85,894
Gross profit		39,586		—			39,586
Selling, general and administrative expenses		31,515		(34	)		31,481
(Gain) loss on disposal of fixed assets		11		—			11
Operating income		8,060		34			8,094
Interest expense, net		993		—			993
Income from continuing operations before income taxes		7,067		34			7,101
Income tax expense		1,848		9			1,857
Income from continuing operations	$	5,219	$	25		$	5,244

	For the Nine Months Ended September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Net sales	$	398,880		$	—		$	398,880
Cost of sales		266,799			—			266,799
Gross profit		132,081			—			132,081
Selling, general and administrative expenses		102,792			(101	)		102,691
(Gain) loss on disposal of fixed assets		(87	)		—			(87	)
Impairment charges		916			—			916
Operating income		28,460			101			28,561
Interest expense, net		3,059			—			3,059
Income from continuing operations before income taxes		25,401			101			25,502
Income tax expense		6,933			27			6,960
Income from continuing operations	$	18,468		$	74		$	18,542

	As of  September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Assets
Right of use asset - operating leases	$	6,384		$	(6,384	)	$	—
Deferred tax asset		6,074			306			6,380
Liabilities
Other current liabilities	$	18,035		$	233		$	18,268
Operating lease liability - short-term		2,215			(2,215	)		—
Operating lease liability - long-term		4,402			(4,402	)		—
Other liabilities		22,706			1,135			23,841
Shareholders’ Equity
Retained deficit	$	(136,192	)	$	(829	)	$	(137,021	)

Accounting Standards Not Yet Adopted

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted and this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for annual periods ending after December 15, 2020, with early adoption permitted and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted. Certain disclosures in this ASU are required to be applied on a retrospective basis and others on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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

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

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.

Financial assets that are measured at net asset value, which is a practical expedient to estimating fair value, are not classified in the fair value hierarchy.

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 14, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At September 30, 2019 and December 31, 2018, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $79.3 million and $76.8 million, respectively.

The purchase price allocation associated with the August 26, 2019 acquisition of Tuffy Manufacturing Industries, Inc., as described in Note 3, required significant fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using the 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 January 1, 2019	$	(16,251	)	$	(2,029	)	$	(18,280	)
Other comprehensive income (loss) before reclassifications		1,069			—			1,069
Net current-period other comprehensive income (loss)		1,069			—			1,069
Balance at September 30, 2019	$	(15,182	)	$	(2,029	)	$	(17,211	)

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 Company’s 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, the Company has not recorded any deferred revenue, 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.  Thus, the Company estimates the expected returns each period based on an analysis of historical experience.  For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, 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 distribution centers, warehouses, office space and equipment, with remaining lease terms of one to nine 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 leases on a straight-line basis over the lease term. Operating leases are included in right of use asset – operating leases (“ROU assets”), operating lease liability –short term, and operating 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 Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, 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 uses the implicit rate when readily determinable. The Company has also elected not to separate lease and non-lease components. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

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Acquisition (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

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

Assets acquired:
Accounts receivable	$	2,072
Inventories		2,657
Prepaid expenses		20
Property, plant and equipment		124
Right of use asset - operating leases		229
Intangible assets		8,400
Goodwill		7,051
Assets acquired	$	20,553
Liabilities assumed:
Accounts payable	$	1,714
Operating lease liability - short term		112
Operating lease liability - long term		117
Total liabilities assumed		1,943
Net acquisition cost	$	18,610

Summary of Intangible Assets

The intangible assets included above consist of the following:

	Fair Value		Weighted Average Estimated Useful Life
Customer relationships		7,300	7.3 years
Trade name		500	5.0 years
Non-competition agreements		600	5.0 years
Total amortizable intangible assets	$	8,400

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Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

The balance in other current liabilities is comprised of the following:

	September 30,		December 31,
	2019		2018
Customer deposits and accrued rebates	$	2,309	$	3,365
Dividends payable		5,242		5,260
Accrued litigation, claims and professional fees		958		460
Current portion of environmental reserves		1,499		1,229
Accrued product replacement costs		2,300		—
Other accrued expenses		5,727		6,387
	$	18,035	$	16,701

Schedule of Other Liabilities (Long-term)

The balance in other liabilities (long-term) is comprised of the following:

	September 30,		December 31,
	2019		2018
Lease guarantee contingency	$	10,642	$	10,402
Environmental reserves		6,692		3,702
Supplemental executive retirement plan liability		1,796		2,026
Pension liability		1,293		1,207
Deferred gain on sale of assets		—		1,237
Other long-term liabilities		2,283		1,220
	$	22,706	$	19,794

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows From Operating Activities
Net income (loss)	$ 18,595	$ (5,687)
Income (loss) from discontinued operations, net of income taxes	127	(913)
Income (loss) from continuing operations	18,468	(4,774)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities
Depreciation	11,505	13,329
Amortization	6,183	6,455
Accelerated depreciation associated with restructuring activities	0	16
Non-cash stock-based compensation expense	3,348	3,532
(Gain) loss on disposal of fixed assets	(87)	(96)
Provision for loss on note receivable	0	23,008
Lease guarantee contingency	0	10,323
Deferred taxes	0	(7,666)
Impairment charges	916	308
Other	441	(150)
Payments on performance based compensation	(413)	(1,249)
Other long-term liabilities	3,388	(313)
Cash flows provided by (used for) working capital
Accounts receivable	9,775	7,890
Inventories	2,386	2,708
Prepaid expenses and other current assets	(877)	(853)
Accounts payable and accrued expenses	(15,541)	(11,347)
Net cash provided by (used for) operating activities - continuing operations	39,492	41,121
Net cash provided by (used for) operating activities - discontinued operations	7,297	858
Net cash provided by (used for) operating activities	46,789	41,979
Cash Flows From Investing Activities
Capital expenditures	(5,669)	(3,560)
Acquisition of business	(18,000)	0
Proceeds from sale of property, plant and equipment	7,514	2,633
Net cash provided by (used for) investing activities - continuing operations	(16,155)	(927)
Net cash provided by (used for) investing activities - discontinued operations	0	0
Net cash provided by (used for) investing activities	(16,155)	(927)
Cash Flows From Financing Activities
Net borrowings (repayments) on credit facility	0	(74,557)
Cash dividends paid	(14,524)	(13,039)
Proceeds from issuance of common stock	755	2,825
Proceeds from public offering of common stock, net of equity issuance costs	0	79,522
Shares withheld for employee taxes on equity awards	(985)	(446)
Net cash provided by (used for) financing activities - continuing operations	(14,754)	(5,695)
Net cash provided by (used for) financing activities - discontinued operations	0	0
Net cash provided by (used for) financing activities	(14,754)	(5,695)
Foreign exchange rate effect on cash	40	(31)
Net increase in cash and restricted cash	15,920	35,326
Cash and restricted cash at January 1	58,894	11,179
Cash and restricted cash at September 30	$ 74,814	$ 46,505

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Net Income per Common Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Net Income per Common Share

10.  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 September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Weighted average common shares outstanding basic		35,495,157		35,229,171		35,451,980		32,783,853
Dilutive effect of stock options and restricted stock		263,875		—		371,251		—
Weighted average common shares outstanding diluted		35,759,032		35,229,171		35,823,231		32,783,853

Options to purchase 638,073 and 631,300 shares of common stock that were outstanding for the quarter and nine months ended September 30, 2019, respectively, 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. Due to the net loss for the quarter and nine months ended September 30, 2018, diluted weighted-average shares outstanding were equal to basic weighted-average shares outstanding because the effect of all equity awards was anti-dilutive.

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Restructuring

9 Months Ended

Sep. 30, 2019

Restructuring And Related Activities [Abstract]

Restructuring

6.  Restructuring

On March 20, 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”) that operates within the Company’s Material Handling Segment. The Company plans to consolidate manufacturing operations currently conducted at Ameri-Kart’s Cassopolis, Michigan facility with expanded operations in Indiana, and eliminate up to 30 positions in connection with the consolidation (the “Ameri-Kart Plan”). Total restructuring costs expected to be incurred are approximately $0.9 million, which include equipment relocation and facility shut down costs, employee severance and other employee-related costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment. No costs were incurred during the quarter and nine months ended September 30, 2019 related to the Ameri-Kart Plan. The Ameri-Kart Plan is expected to be substantially completed in the first half of 2020.

On March 18, 2019, the Company committed to implementing a restructuring plan relating to transformation initiatives within the Company’s Distribution Segment (the “Distribution Transformation Plan”) that are intended to increase sales force effectiveness, reduce costs and improve contribution margins. The Company realigned its Distribution Segment’s commercial sales structure, which included the elimination of certain sales and administrative positions, and plans to expand its e-commerce platform. Total restructuring costs expected to be incurred are approximately $0.9 million, primarily related to employee severance and other employee-related costs. No significant amounts were recognized during the quarter ended September 30, 2019. During the nine months ended September 30, 2019, the Company incurred restructuring charges of $0.9 million and does not expect to incur any additional restructuring charges in connection with the Distribution Transformation Plan. The Distribution Transformation Plan is expected to be substantially completed by the end of 2019.

On March 9, 2017, the Company announced a restructuring plan to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment (the “Material Handling Plan”), which related primarily to anticipated facility shutdowns and associated activities.  Total restructuring costs incurred related to the Material Handling Plan were approximately $7.7 million, which includes employee severance and other employee-related costs of approximately $3.1 million, $2.6 million related to equipment relocation and facility shut down costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.0 million. All actions under the Material Handling Plan are completed. The Company incurred $0.1 million of restructuring charges associated with the Material Handling Plan during the nine months ended September 30, 2018. No costs were incurred during 2019.

As noted above, no significant amounts were recognized during the quarter ended September 30, 2019 and there were no restructuring charges incurred during the quarter ended September 30, 2018. The restructuring charges noted above for the nine months ended September 30, 2019 and 2018 are presented in the Condensed Consolidated Statements of Operations (Unaudited) as follows:

	For the Nine Months Ended September 30,
	2019						2018
Segment	Cost of Sales		SG&A		Total		Cost of Sales		SG&A		Total
Distribution	$	—	$	865	$	865	$	—	$	—	$	—
Material Handling		—		—		—		119		—		119
Total	$	—	$	865	$	865	$	119	$	—	$	119

The table below summarizes restructuring activity for the nine months ended September 30, 2019:

	Employee Reduction			Accelerated Depreciation		Other Exit Costs		Total
Balance at January 1, 2019	$	30		$	—	$	—	$	30
Charges to expense		865			—		—		865
Cash payments		(767	)		—		—		(767	)
Non-cash utilization		—			—		—		—
Balance at September 30, 2019	$	128		$	—	$	—	$	128

During the quarter ended March 31, 2019, the Company reclassified a facility that was closed in connection with the Material Handling Plan as held for sale. Based on the estimated fair value of this facility (using primarily a third party offer considered to be a Level 2 input), less estimated costs to sell, the Company recognized an impairment charge of $0.9 million during the quarter ended March 31, 2019. The facility was sold in May 2019 for net proceeds of $2.9 million, which are included in the net proceeds discussed in Note 4.

In addition to the restructuring charges noted above, the Company has also incurred $0.2 million of other associated costs of the Distribution Transformation Plan during the nine months ended September 30, 2019. No such costs were incurred during the quarter ended September 30, 2019. The Company also incurred $0.1 million of other associated costs of the Ameri-Kart Plan during the quarter and nine months ended September 30, 2019. These other associated costs are included in Selling, General, and Administrative Expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited), and are primarily related to third party consulting costs. Additional estimated costs of $0.1 million are expected to be incurred throughout the remainder of 2019 related to the Ameri-Kart Plan. No other costs are expected to be incurred related to the Distribution Transformation Plan.

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Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash	$ 74,814	$ 58,894
Accounts receivable, less allowances of $2,124 and $2,259, respectively	65,129	72,939
Income tax receivable	0	4,892
Inventories, net	44,009	43,596
Prepaid expenses and other current assets	3,441	2,534
Total Current Assets	187,393	182,855
Other Assets
Property, plant, and equipment, net	56,096	65,460
Right of use asset - operating leases	6,384	0
Goodwill	66,428	59,068
Intangible assets, net	32,909	30,280
Deferred income taxes	6,074	5,270
Other	2,002	5,712
Total Assets	357,286	348,645
Current Liabilities
Accounts payable	54,196	60,849
Accrued expenses
Employee compensation	12,023	16,531
Income taxes	738	0
Taxes, other than income taxes	1,260	1,403
Accrued interest	811	1,939
Other current liabilities	18,035	16,701
Operating lease liability - short-term	2,215	0
Total Current Liabilities	89,278	97,423
Long-term debt	77,080	76,790
Operating lease liability - long-term	4,402	0
Other liabilities	22,706	19,794
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 35,512,301 and 35,374,121; net of treasury shares of 7,040,156 and 7,178,336, respectively)	21,663	21,547
Additional paid-in capital	295,560	292,558
Accumulated other comprehensive loss	(17,211)	(18,280)
Retained deficit	(136,192)	(141,187)
Total Shareholders’ Equity	163,820	154,638
Total Liabilities and Shareholders’ Equity	$ 357,286	$ 348,645

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Cover [Abstract]
Entity Registrant Name	MYERS INDUSTRIES INC
Entity Central Index Key	0000069488
Trading Symbol	MYE
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
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		35,520,001
Entity File Number	1-8524
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

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Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue Recognition [Abstract]

Revenue Recognition

2.  Revenue Recognition

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

	For the Quarter Ended September 30, 2019
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	19,205	$	—	$	—		$	19,205
Vehicle		21,951		—		—			21,951
Food and beverage		13,010		—		—			13,010
Industrial		29,944		—		(18	)		29,926
Auto aftermarket		—		41,388		—			41,388
Total net sales	$	84,110	$	41,388	$	(18	)	$	125,480

	For the Quarter Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	20,048	$	—	$	—		$	20,048
Vehicle		23,037		—		—			23,037
Food and beverage		19,159		—		—			19,159
Industrial		35,438		—		(20	)		35,418
Auto aftermarket		—		37,557		—			37,557
Total net sales	$	97,682	$	37,557	$	(20	)	$	135,219

	For the Nine Months Ended September 30, 2019
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	59,505	$	—	$	—		$	59,505
Vehicle		66,433		—		—			66,433
Food and beverage		54,977		—		—			54,977
Industrial		102,048		—		(40	)		102,008
Auto aftermarket		—		115,957		—			115,957
Total net sales	$	282,963	$	115,957	$	(40	)	$	398,880

	For the Nine Months Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	64,325	$	—	$	—		$	64,325
Vehicle		75,338		—		—			75,338
Food and beverage		72,124		—		—			72,124
Industrial		105,834		—		(89	)		105,745
Auto aftermarket		—		110,815		—			110,815
Total net sales	$	317,621	$	110,815	$	(89	)	$	428,347

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 Company’s 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, the Company has not recorded any deferred revenue, 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.  Thus, the Company estimates the expected returns each period based on an analysis of historical experience.  For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, based on the approximate cost of the product.

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

	September 30,			December 31,			Statement of Financial Position
	2019			2018			Classification
Returns, discounts and other allowances	$	(593	)	$	(1,169	)	Accounts receivable
Right of return asset		310			535		Inventories, net
Customer deposits		(108	)		(806	)	Other current liabilities
Accrued rebates		(2,201	)		(2,559	)	Other current liabilities

Sales, value added, and other taxes the Company collects concurrent with revenue from customers are excluded from net sales.  The Company has elected to recognize the cost for shipments to customers when control over products has transferred to the customer.  Costs for shipments to customers are classified as Selling, General and Administrative Expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business in the accompanying Condensed Consolidated Statements of Operations (Unaudited). The Company incurred costs for shipments to customers in Selling, General and Administrative Expenses of approximately $2.0 million and $2.1 million for the quarters ended September 30, 2019 and 2018, respectively, and $6.2 million and $7.4 million for the nine months ended September 30, 2019 and 2018, respectively, and in Cost of Sales of approximately $1.3 million and $1.4 million for the quarters ended September 30, 2019 and 2018, respectively, and $4.3 million and $4.2 million for the nine months ended September 30, 2019 and 2018, respectively. All other internal distribution costs are recorded in Selling, General and Administrative Expenses.

Based on the short term nature of contracts described above, the Company does not incur significant contract acquisition costs. 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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Leases - Summary of Lease Term and Discount Rate (Details)	Sep. 30, 2019
Lessee Disclosure [Abstract]
Weighted-average remaining lease term (years), operating leases	4 years 4 months 6 days
Weighted-average discount rate, operating leases	5.00%

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Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term Debt	$ 78,000	$ 78,000
Less unamortized deferred financing fees	920	1,210
Long-term Debt, net of deferred financing costs	77,080	76,790
Loan Agreement [Member]
Debt Instrument [Line Items]
Long-term Debt	0	0
4.67% Senior Unsecured Notes due 2021 [Member]
Debt Instrument [Line Items]
Long-term Debt	40,000	40,000
5.25% Senior Unsecured Notes due 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	11,000	11,000
5.30% Senior Unsecured Notes due 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	15,000	15,000
5.45% Senior Unsecured Notes due 2026 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 12,000	$ 12,000

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Retirement Plans - Additional Information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Compensation And Retirement Disclosure [Abstract]
Contribution to plan	$ 31

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Industry Segments - Schedule of reporting information by segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Net sales	$ 125,480	$ 135,219	$ 398,880	$ 428,347
Total operating income	8,060	(25,839)	28,460	(706)
Interest expense, net	(993)	(883)	(3,059)	(3,835)
Income from continuing operations before income taxes	7,067	(26,722)	25,401	(4,541)
Operating Segments [Member] | Material Handling [Member]
Segment Reporting Information [Line Items]
Net sales	84,110	97,682	282,963	317,621
Total operating income	10,385	10,812	44,181	44,865
Operating Segments [Member] | Distribution [Member]
Segment Reporting Information [Line Items]
Net sales	41,388	37,557	115,957	110,815
Total operating income	3,382	2,546	6,923	7,070
Inter-company sales [Member]
Segment Reporting Information [Line Items]
Net sales	(18)	(20)	(40)	(89)
Corporate [Member]
Segment Reporting Information [Line Items]
Total operating income	$ (5,707)	$ (39,197)	$ (22,644)	$ (52,641)

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Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lessee Lease Description [Line Items]
Total lease cost	$ 894	$ 2,648
Cost of Sales [Member]
Lessee Lease Description [Line Items]
Total lease cost	453	1,310
Selling, General and Administrative Expenses [Member]
Lessee Lease Description [Line Items]
Total lease cost	$ 441	$ 1,338

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Restructuring - Summary of Restructuring Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Restructuring Cost And Reserve [Line Items]
Balance at January 1, 2019	$ 30
Charges to expense	865	$ 119
Cash payments	(767)
Balance at September 30, 2019	128
Employee Reduction [Member]
Restructuring Cost And Reserve [Line Items]
Balance at January 1, 2019	30
Charges to expense	865
Cash payments	(767)
Balance at September 30, 2019	$ 128

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Disposal of Businesses - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 17, 2015	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	May 31, 2018
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Provision for loss on note receivable				$ 0	$ 23,008,000
Maximum [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Interest rate				5.45%
Minimum [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Interest rate				4.67%
Brazil Business [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Worthless stock deduction on federal tax payments						$ 4,300,000
Brazil Business [Member] | Maximum [Member] | Factoring Arrangement [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Guarantee obligation amount until December 31, 2019				$ 7,000,000
Brazil Business [Member] | Level 3 [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Liability related to guaranty				$ 0
Lawn and Garden Business [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Interest rate	6.00%
Promissory note receivable	$ 20,000,000
Maturity date of promissory note receivable	2022-08
Provision for loss on note receivable		$ 23,000,000
Discontinued operations pre-tax charge			$ 1,225,000
Escrow deposit released							$ 7,400,000
Escrow deposit	$ 8,600,000
Escrow deposit due to be settled date	2016-08

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Contingencies - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended					9 Months Ended		12 Months Ended		96 Months Ended
	Jan. 31, 2019	Apr. 30, 2016	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2016	Dec. 31, 2005	Sep. 30, 2019
Loss Contingencies [Line Items]
Other current liabilities			$ 18,035,000	$ 16,701,000				$ 18,035,000				$ 18,035,000
Other liabilities			22,706,000	19,794,000				22,706,000				22,706,000
Lease guarantee contingency			10,642,000	10,402,000				10,642,000				10,642,000
New Idria Mercury Mine [Member]
Loss Contingencies [Line Items]
Financial assurance required to be provided to EPA to secure performance				2,000,000
Prepayment amount	$ 200,000
New Almaden Mine [Member] | Natural Resource Damage Claim [Member]
Loss Contingencies [Line Items]
Total reserve			1,500,000					1,500,000				1,500,000
Other current liabilities			300,000					300,000				300,000
Other liabilities			1,200,000					1,200,000				1,200,000
Expense recognized			0		$ 0			0	$ 0	$ 1,200,000	$ 800,000
Accrued balance								500,000
Original estimated project costs		$ 1,600,000
Revised estimated project costs, Low Estimate		3,300,000
Revised estimated project costs, High Estimate		$ 4,400,000
Lawn and Garden Indemnification Claim [Member]
Loss Contingencies [Line Items]
Indemnification claims								10,000,000
Escrow deposit			8,600,000					$ 8,600,000				8,600,000
Escrow deposit due to be settled date								2016-08
Discontinued operations pre-tax charge							$ 1,225,000
Amount of escrow deposits expected to release upon settlement of agreement						$ 7,400,000
Lawn and Garden Indemnification Claim [Member] | Guarantee Obligation [Member]
Loss Contingencies [Line Items]
Lease expiring period								September 2025
Annual rent								$ 2,000,000
Liabilities and related pre tax charges					10,300,000
Lease guarantee contingency			10,600,000	$ 10,400,000				10,600,000				10,600,000
Pending Litigation [Member] | New Idria Mercury Mine [Member] | EPA Notice Letter [Member]
Loss Contingencies [Line Items]
Loss contingencies, payments												3,200,000
Loss contingency, Loss in period			0		$ 0			4,000,000	$ 0			9,900,000
Total reserve			6,700,000					6,700,000				6,700,000
Other current liabilities			1,200,000					1,200,000				1,200,000
Other liabilities			$ 5,500,000					$ 5,500,000				$ 5,500,000

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Net Income per Common Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Weighted average common shares outstanding basic	35,495,157	35,229,171	35,451,980	32,783,853
Dilutive effect of stock options and restricted stock (in shares)	263,875	0	371,251	0
Weighted average common shares outstanding diluted (in shares)	35,759,032	35,229,171	35,823,231	32,783,853

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Other Liabilities - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Other Liabilities Disclosure [Line Items]
Accrued product replacement costs	$ 2,300	$ 2,300
Material Handling [Member]
Other Liabilities Disclosure [Line Items]
Product replacement costs	3,500
Accrued product replacement costs	$ 2,300	2,300
Minimum [Member] | Material Handling [Member]
Other Liabilities Disclosure [Line Items]
Product replacement costs		3,500
Maximum [Member] | Material Handling [Member]
Other Liabilities Disclosure [Line Items]
Product replacement costs		$ 4,000

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Industry Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Reporting Information by Segment

Summarized segment detail for the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Net Sales
Material Handling	$	84,110		$	97,682		$	282,963		$	317,621
Distribution		41,388			37,557			115,957			110,815
Inter-company sales		(18	)		(20	)		(40	)		(89	)
Total net sales	$	125,480		$	135,219		$	398,880		$	428,347
Income (loss) from continuing operations before income taxes
Material Handling	$	10,385		$	10,812		$	44,181		$	44,865
Distribution		3,382			2,546			6,923			7,070
Corporate		(5,707	)		(39,197	)		(22,644	)		(52,641	)
Total operating income		8,060			(25,839	)		28,460			(706	)
Interest expense, net		(993	)		(883	)		(3,059	)		(3,835	)
Income from continuing operations before income taxes	$	7,067		$	(26,722	)	$	25,401		$	(4,541	)

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Revenue Recognition - Schedule of Revenue by Major Market (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Net sales	$ 125,480	$ 135,219	$ 398,880	$ 428,347
Consumer [Member]
Disaggregation Of Revenue [Line Items]
Net sales	19,205	20,048	59,505	64,325
Vehicle [Member]
Disaggregation Of Revenue [Line Items]
Net sales	21,951	23,037	66,433	75,338
Food and Beverage [Member]
Disaggregation Of Revenue [Line Items]
Net sales	13,010	19,159	54,977	72,124
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	29,926	35,418	102,008	105,745
Auto Aftermarket [Member]
Disaggregation Of Revenue [Line Items]
Net sales	41,388	37,557	115,957	110,815
Operating Segments [Member] | Material Handling [Member]
Disaggregation Of Revenue [Line Items]
Net sales	84,110	97,682	282,963	317,621
Operating Segments [Member] | Material Handling [Member] | Consumer [Member]
Disaggregation Of Revenue [Line Items]
Net sales	19,205	20,048	59,505	64,325
Operating Segments [Member] | Material Handling [Member] | Vehicle [Member]
Disaggregation Of Revenue [Line Items]
Net sales	21,951	23,037	66,433	75,338
Operating Segments [Member] | Material Handling [Member] | Food and Beverage [Member]
Disaggregation Of Revenue [Line Items]
Net sales	13,010	19,159	54,977	72,124
Operating Segments [Member] | Material Handling [Member] | Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	29,944	35,438	102,048	105,834
Operating Segments [Member] | Distribution [Member]
Disaggregation Of Revenue [Line Items]
Net sales	41,388	37,557	115,957	110,815
Operating Segments [Member] | Distribution [Member] | Auto Aftermarket [Member]
Disaggregation Of Revenue [Line Items]
Net sales	41,388	37,557	115,957	110,815
Inter-company [Member]
Disaggregation Of Revenue [Line Items]
Net sales	(18)	(20)	(40)	(89)
Inter-company [Member] | Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ (18)	$ (20)	$ (40)	$ (89)

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Industry Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Industry Segments

18.  Industry Segments

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

The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States and Canada. Markets served encompass various niches of industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle 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 operates domestically through 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, auto dealers, general service and repair centers, tire retreaders, and government agencies. The acquisition of Tuffy, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $8.6 million and $14.6 million for the quarters ended September 30, 2019 and 2018, respectively, and $32.8 million and $39.2 million for the nine months ended September 30, 2019 and 2018, respectively.

Summarized segment detail for the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Net Sales
Material Handling	$	84,110		$	97,682		$	282,963		$	317,621
Distribution		41,388			37,557			115,957			110,815
Inter-company sales		(18	)		(20	)		(40	)		(89	)
Total net sales	$	125,480		$	135,219		$	398,880		$	428,347
Income (loss) from continuing operations before income taxes
Material Handling	$	10,385		$	10,812		$	44,181		$	44,865
Distribution		3,382			2,546			6,923			7,070
Corporate		(5,707	)		(39,197	)		(22,644	)		(52,641	)
Total operating income		8,060			(25,839	)		28,460			(706	)
Interest expense, net		(993	)		(883	)		(3,059	)		(3,835	)
Income from continuing operations before income taxes	$	7,067		$	(26,722	)	$	25,401		$	(4,541	)

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Long-Term Debt and Loan Agreements

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Loan Agreements

14.  Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

	September 30,		December 31,
	2019		2018
Loan Agreement	$	—	$	—
4.67% Senior Unsecured Notes due 2021		40,000		40,000
5.25% Senior Unsecured Notes due 2024		11,000		11,000
5.30% Senior Unsecured Notes due 2024		15,000		15,000
5.45% Senior Unsecured Notes due 2026		12,000		12,000
		78,000		78,000
Less unamortized deferred financing costs		920		1,210
	$	77,080	$	76,790

In March 2017, the Company entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement”).  The Loan Agreement replaced the pre-existing $300 million senior revolving credit facility with a $200 million facility and extended the term from December 2018 to March 2022. The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45%, payable semiannually, and maturing between 2021 and 2026. At September 30, 2019, $78 million of the Notes were outstanding.  

Under the terms of the Loan Agreement, the Company may borrow up to $200 million, reduced for letters of credit issued. As of September 30, 2019, the Company had $194.2 million available under the Loan Agreement. The Company had $5.8 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business at September 30, 2019. 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 weighted average interest rate on borrowings under the Company’s long-term debt was 6.28% and 6.55% for the quarters ended September 30, 2019 and 2018, respectively, and 6.26% and 5.70% for the nine months ended September 30, 2019 and 2018, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs. 

As of September 30, 2019, 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 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).

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
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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Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Customer deposits and accrued rebates	$ 2,309	$ 3,365
Dividends payable	5,242	5,260
Accrued litigation, claims and professional fees	958	460
Current portion of environmental reserves	1,499	1,229
Accrued product replacement costs	2,300
Other accrued expenses	5,727	6,387
Other current liabilities, Total	$ 18,035	$ 16,701

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Equity - Additional Information (Details) - Secondary Public Offering [Member] - Common Shares [Member] $ / shares in Units, $ in Millions	May 31, 2018 USD ($) $ / shares shares
Class Of Stock [Line Items]
Shares of common stock issued in public offering | shares	4,600,000
Common stock sale price per share | $ / shares	$ 18.50
Net proceeds from sale of common stock in public offering	$ 79.5
Payments of offering costs	$ 0.5

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Sep. 30, 2019	Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Right-of-use assets		$ 6,384	$ 0
Lease liabilities		6,617
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		79,300	$ 76,800
ASU 2016-02 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Right-of-use assets	$ 5,900	$ 6,384
Lease liabilities	6,200
Cumulative-effect transition adjustment to opening retained earnings (deficit)	$ 900

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Revenue Recognition - Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable [Member]
Disaggregation Of Revenue [Line Items]
Returns, discounts and other allowances	$ (593)	$ (1,169)
Inventories, net [Member]
Disaggregation Of Revenue [Line Items]
Right of return asset	310	535
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Customer deposits	(108)	(806)
Accrued rebates	$ (2,201)	$ (2,559)

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Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

17.  Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for distribution centers, warehouses, office space and equipment, with remaining lease terms of one to nine 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 leases on a straight-line basis over the lease term. Operating leases are included in right of use asset – operating leases (“ROU assets”), operating lease liability –short term, and operating 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 Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, 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 uses the implicit rate when readily determinable. The Company has also elected not to separate lease and non-lease components. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. 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:

	September 30, 2019
Right of use asset - operating leases	$	6,384
Operating lease liability - short-term	$	2,215
Operating lease liability - long-term		4,402
Total operating lease liabilities	$	6,617

The components of lease expense include:

		Quarter Ended		Nine Months Ended
Lease Cost	Classification	September 30, 2019		September 30, 2019
Operating lease cost (1)	Cost of sales	$	453	$	1,310
Operating lease cost (1)	Selling, general and administrative expenses		441		1,338
Total lease cost		$	894	$	2,648

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

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended
Supplemental Cash Flow Information	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,808
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		2,029

Lease Term and Discount Rate	September 30, 2019
Weighted-average remaining lease term (years)
Operating leases		4.35
Weighted-average discount rate
Operating leases		5.0	%

Maturity of Lease Liabilities - As of September 30, 2019	Operating Leases
2019 (1)	$	620
2020		2,247
2021		1,339
2022		1,189
2023		1,016
After 2023		961
Total lease payments		7,372
Less: Interest		(755	)
Present value of lease liabilities	$	6,617

(1) Represents amounts due in 2019 after September 30, 2019

Future minimum rental commitments (undiscounted) as of December 31, 2018 under ASC 840 were as follows:

Year Ended December 31,
2019	$	2,492
2020		1,739
2021		982
2022		966
2023		841
Thereafter		811
Total	$	7,831

On February 27, 2018, the Company completed a sale-leaseback transaction for its distribution center in Pomona, California for a net purchase price of $2.3 million. The Company realized a gain on the sale of $2.0 million, of which $0.7 million was recognized during the quarter ended March 31, 2018. The remaining $1.3 million was recognized ratably over the term of the ten-year lease at approximately $0.1 million per year, until January 1, 2019 upon the adoption of ASU 2016-02 as discussed in Note 1. Simultaneous with closing the sale, the Company entered into a ten-year operating lease arrangement with base annual rent of approximately $0.1 million during the first year, followed by annual increases of 3% through the remainder of the lease period. This facility is included in the Company’s Distribution Segment.

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Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Contingencies

13.  Contingencies

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. When a loss arising from these matters is probable and can reasonably be estimated, the Company records the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence than another. As additional information becomes available, any potential liability related to these matters will be assessed and the estimates will be revised, if necessary.

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. If new information becomes available or 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 such change in estimate 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 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, the Company 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 the Company’s performance of the RI/FS. In addition, the AOC requires the Company to provide $2 million of financial assurance to the EPA to secure its performance during the estimated life of the RI/FS.  In January 2019, the Company provided this assurance as a letter of credit. The AOC also includes provisions for payment by the Company of the EPA’s costs of oversight of the RI/FS, including a prepayment in the amount of $0.2 million, which was paid in January 2019.

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, the Company received preliminary estimates from its consultants for the cost of the execution of the work plan. Based on these preliminary estimates, the Company recognized additional expense of $4.0 million during the nine months ended September 30, 2019. No expenses were incurred related to the New Idria Mine in the quarter ended September 30, 2019. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur by the end of 2019. The Company 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, to date, the Company has not recognized potential recovery in its consolidated financial statements. No expenses were recorded related to the New Idria Mine in the quarter or nine months ended September 30, 2018.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, the Company has recognized $9.9 million of costs, of which approximately $3.2 million has been paid to date. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible insurance resources and other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. As of September 30, 2019, the Company has a total reserve of $6.7 million related to the New Idria Mine, of which $1.2 million is classified in Other Current Liabilities and $5.5 million in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

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 the Company’s liability are based on current facts, laws, regulations and technology. Estimates of the Company’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, we have not accrued for remediation costs in connection with this site as we are unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined.

New Almaden Mine

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area.  Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project, originally estimated to be approximately $1.6 million. As a result, in 2005, the Company recognized expense of $0.8 million representing its share of the initial estimated project costs, of which approximately $0.5 million has been paid to date. In April 2016, the Company was notified by the County that the original cost estimate may no longer be appropriate due to expanded scope and increased costs of construction and provided a revised estimate of between $3.3 million and $4.4 million.  The Company completed a detailed review of the support provided by the County for the revised estimate, and as a result, recognized additional expense of $1.2 million in 2016.  No costs were incurred related to New Almaden in the quarters or nine months ended September 30, 2019 or 2018. As of September 30, 2019, 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 on the Condensed Consolidated Statements of Financial Position (Unaudited).

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.

Lawn and Garden Indemnification Claim

In connection with the sale of the Lawn and Garden business, as described in Note 5, the Company received Notices of Indemnification Claims in April 2015 and July 2016 (collectively, the “Claims”), alleging breaches of certain representations and warranties under the agreement resulting in alleged losses in the amount of approximately $10 million. As described in Note 5, approximately $8.6 million of the sale proceeds that were placed in escrow were due to be settled in August 2016; however, the release of these funds had been extended pending the resolution of the Claims, which were the subject of a lawsuit in the Delaware Chancery Court.

In April 2018, the Company reached agreement on the material terms of a settlement, and as a result, recorded a pre-tax charge of $1.225 million to discontinued operations for the quarter ended March 31, 2018. The settlement agreement was finalized in May 2018, and the settlement amount was funded from the escrow account. In addition, upon settlement and release of any further obligation on behalf of the Company, the remaining $7.4 million was released from escrow to the Company in the second quarter of 2018.

Lawn and Garden Lease Guarantee

In connection with the sale of the Lawn and Garden business, as described in Note 5, the Company is a guarantor for one of HC’s facility leases expiring in September 2025 for any remaining rent payments under the lease for which HC is unable to meet its obligations. Current annual rent for the facility is approximately $2 million, and is subject to annual CPI increases throughout the lease term. In connection with the financial risk associated with HC, as described in Note 5, the Company assessed its range of potential obligations under the lease guarantee, and as a result of this analysis, recorded a liability and related pre-tax charge of $10.3 million during the third quarter of 2018. The carrying value of the lease contingency as of September 30, 2019 and December 31, 2018 was $10.6 million and $10.4 million, respectively, which represents the initial liability recorded plus accretion and is included in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

Patent Infringement

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC and Scepter Corporation (“Scepter”) 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. A schedule in the case has not yet issued. Scepter intends to defend itself vigorously in this matter. Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter, and is unable at this time to determine whether the outcome of the litigation will have a material impact on its results of operations, financial condition, or cash flows. Accordingly, the Company has not recorded any reserves for this matter.

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Disposal of Businesses (Tables)

9 Months Ended

Sep. 30, 2019

Brazil Business, Lawn and Garden Business [Member]

Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]

Summary of Selected Financial Information for Discontinued Operations

Summarized selected financial information for discontinued operations for the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

	For the Quarter Ended September 30,					For the Nine Months Ended September 30,
	2019		2018			2019			2018
Net sales	$	—	$	—		$	—		$	—
Cost of sales		—		—			—			—
Selling, general, and administrative		—		123			—			1,348
(Gain) loss on disposal of assets		—		—			—			—
Interest income, net		—		—			(174	)		—
Income (loss) from discontinued operations before income tax		—		(123	)		174			(1,348	)
Income tax expense (benefit)		—		(121	)		47			(435	)
Income (loss) from discontinued operations, net of income tax	$	—	$	(2	)	$	127		$	(913	)

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

The change in goodwill

The change in goodwill for the nine months ended September 30, 2019 was as follows:

	Distribution		Material Handling		Total
January 1, 2019	$	505	$	58,563	$	59,068
Acquisition		7,051		—		7,051
Foreign currency translation		—		309		309
September 30, 2019	$	7,556	$	58,872	$	66,428

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Disposal of Businesses

9 Months Ended

Sep. 30, 2019

Discontinued Operations And Disposal Groups [Abstract]

Disposal of Businesses

5.  Disposal of Businesses

On December 18, 2017, the Company, collectively with its wholly owned subsidiary, Myers Holdings Brasil, Ltda. (“Holdings”), completed the sale of its subsidiaries, Myers do Brasil Embalagens Plasticas Ltda. and Plasticos Novel do Nordeste Ltda. (collectively, the “Brazil Business”), to Novel Holdings – Eireli (“Buyer”), an entity controlled by a member of the Brazil Business’ management team. The Brazil Business was part of the Material Handling Segment.

The Company has agreed to be the guarantor under a factoring arrangement between the Buyer and Banco Alfa de Investimento S.A. until December 31, 2019 for up to $7 million, in the event the Buyer is unable to meet its obligations under this arrangement. The Company also holds a first lien against certain machinery and equipment, exercisable only upon default by the Buyer under the guaranty. Based on the nature of the guaranty, as well as the existence of the lien, the Company believes the fair value of the guaranty is immaterial (based primarily on Level 3 inputs), and thus has recorded no liability related to this guaranty in the Condensed Consolidated Statements of Financial Position (Unaudited). This guaranty also creates a variable interest to the Company in the Brazil Business. Based on the terms of the transaction and the fact that the Company has no management involvement or voting interests in the Brazil Business following the sale, the Company does not have any power to direct the significant activities of the Brazil Business, and is thus not the primary beneficiary.

On February 17, 2015, the Company sold its Lawn and Garden business to an entity controlled by Wingate Partners V, L.P. (“L&G Buyer”). The terms of the sale included promissory notes totaling $20 million that were originally set to mature in August 2020 with a 6% interest rate. During the third quarter of 2018, management of the Lawn and Garden business, now named HC Companies, Inc. (“HC”), requested an extension to the maturity of the notes as part of an effort to restructure their debt. The Company believes there is uncertainty about the ability to collect on the notes and corresponding accrued interest, and as a result, the Company recorded a provision for expected loss of $23.0 million within continuing operations during the third quarter of 2018. The Company ceased recognizing interest income as of September 30, 2018 following the recognition of the provision.  In April 2019, the Company entered into an agreement with HC to amend and restate the notes (“Amended and Restated Notes”). The Amended and Restated Notes maintain the amounts due under the original terms of the notes, including interest, and extend the maturity to August 2022. The agreement to amend and restate the notes did not change management’s assessment of the uncertainty to collect on the notes.

In addition, approximately $8.6 million of the purchase price related to the Lawn and Garden sale was placed in escrow that was due to be settled by August 2016. The release of these funds had been extended pending the resolution of indemnification claims, as further described in Note 13. In April 2018, the Company reached agreement on the material terms of a settlement, and, as a result, recorded a pre-tax charge of $1.225 million to discontinued operations for the quarter ended March 31, 2018. The settlement was finalized and paid in May 2018, and upon settlement and release of any further obligation on behalf of the Company, the remaining $7.4 million was released from escrow to the Company.

In connection with the financial risk described above with HC, the Company further assessed its potential obligations under a lease guarantee granted as part of the sale of the Lawn and Garden business. Refer to Note 13 for further information with regards to this guarantee.

Summarized selected financial information for discontinued operations for the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

	For the Quarter Ended September 30,					For the Nine Months Ended September 30,
	2019		2018			2019			2018
Net sales	$	—	$	—		$	—		$	—
Cost of sales		—		—			—			—
Selling, general, and administrative		—		123			—			1,348
(Gain) loss on disposal of assets		—		—			—			—
Interest income, net		—		—			(174	)		—
Income (loss) from discontinued operations before income tax		—		(123	)		174			(1,348	)
Income tax expense (benefit)		—		(121	)		47			(435	)
Income (loss) from discontinued operations, net of income tax	$	—	$	(2	)	$	127		$	(913	)

Net cash flows provided by discontinued operations in 2019 resulted from the remaining receipt of the tax benefit from a worthless stock deduction, which was recognized as part of the sale of the Brazil Business. Net cash flows provided by discontinued operations in 2018 resulted from the partial receipt of the tax benefit from the worthless stock deduction related to the Brazil Business. The worthless stock deduction allowed the Company to reduce its estimated U.S. federal tax payments in 2018 by $4.3 million. This was partially offset by the payment of expenses related to the sale of the Brazil Business and the payment of the settlement with the L&G Buyer noted above.

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Statement Of Income And Comprehensive Income [Abstract]
Tax expense on pension liability	$ 67

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

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 U.S. generally accepted accounting principles (“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, 2018.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of September 30, 2019, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2019.

Accounting Standards Adopted

In February 2016, the FASB issued ASU 2016-02, Leases, which createdAccounting Standards Codification (“ASC”) Topic 842. Under ASU 2016-02, an entity recognizes right-of-use assets and lease liabilities on its balance sheet, and discloses key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new guidance effective January 1, 2019, using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected to apply the guidance at a portfolio level and use the discount rate corresponding to the remaining lease term at transition. Adoption of the new standard resulted in the recognition of right-of-use assets and lease liabilities of $5.9 million and $6.2 million, respectively, on January 1, 2019. The difference between the right-of-use assets and lease liabilities related primarily to the removal of previously recorded accrued rent balances as a result of recording straight-line rent expense for certain leases. In addition, the adoption resulted in an adjustment to opening retained earnings (deficit) of approximately $0.9 million, net of tax, on January 1, 2019. This cumulative-effect transition adjustment to opening retained earnings (deficit) related to the recognition of the remaining deferred gain on the sale-leaseback transaction that occurred in 2018. The standard did not have a material impact on the Company’s condensed consolidated results of operations or cash flows.

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

	For the Quarter Ended September 30, 2019
	As Reported		Adjustments			Balances Without Adoption of ASC 842
Net sales	$	125,480	$	—		$	125,480
Cost of sales		85,894		—			85,894
Gross profit		39,586		—			39,586
Selling, general and administrative expenses		31,515		(34	)		31,481
(Gain) loss on disposal of fixed assets		11		—			11
Operating income		8,060		34			8,094
Interest expense, net		993		—			993
Income from continuing operations before income taxes		7,067		34			7,101
Income tax expense		1,848		9			1,857
Income from continuing operations	$	5,219	$	25		$	5,244

	For the Nine Months Ended September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Net sales	$	398,880		$	—		$	398,880
Cost of sales		266,799			—			266,799
Gross profit		132,081			—			132,081
Selling, general and administrative expenses		102,792			(101	)		102,691
(Gain) loss on disposal of fixed assets		(87	)		—			(87	)
Impairment charges		916			—			916
Operating income		28,460			101			28,561
Interest expense, net		3,059			—			3,059
Income from continuing operations before income taxes		25,401			101			25,502
Income tax expense		6,933			27			6,960
Income from continuing operations	$	18,468		$	74		$	18,542

	As of  September 30, 2019
	As Reported			Adjustments			Balances Without Adoption of ASC 842
Assets
Right of use asset - operating leases	$	6,384		$	(6,384	)	$	—
Deferred tax asset		6,074			306			6,380
Liabilities
Other current liabilities	$	18,035		$	233		$	18,268
Operating lease liability - short-term		2,215			(2,215	)		—
Operating lease liability - long-term		4,402			(4,402	)		—
Other liabilities		22,706			1,135			23,841
Shareholders’ Equity
Retained deficit	$	(136,192	)	$	(829	)	$	(137,021	)

Accounting Standards Not Yet Adopted

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted and this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for annual periods ending after December 15, 2020, with early adoption permitted and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted. Certain disclosures in this ASU are required to be applied on a retrospective basis and others on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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

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

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.

Financial assets that are measured at net asset value, which is a practical expedient to estimating fair value, are not classified in the fair value hierarchy.

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 14, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At September 30, 2019 and December 31, 2018, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $79.3 million and $76.8 million, respectively.

The purchase price allocation associated with the August 26, 2019 acquisition of Tuffy Manufacturing Industries, Inc., as described in Note 3, required significant fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using the 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 January 1, 2019	$	(16,251	)	$	(2,029	)	$	(18,280	)
Other comprehensive income (loss) before reclassifications		1,069			—			1,069
Net current-period other comprehensive income (loss)		1,069			—			1,069
Balance at September 30, 2019	$	(15,182	)	$	(2,029	)	$	(17,211	)

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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Tax expense on pension liability				$ 67
Retained Deficit [Member]
Tax amount related to retained deficit			$ 332
Dividends declared per share	$ 0.14	$ 0.14	$ 0.41	$ 0.41
Accumulated Other Comprehensive Income (Loss) [Member]
Tax expense on pension liability				$ 67

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9.  Goodwill and Intangible Assets

The change in goodwill for the nine months ended September 30, 2019 was as follows:

	Distribution		Material Handling		Total
January 1, 2019	$	505	$	58,563	$	59,068
Acquisition		7,051		—		7,051
Foreign currency translation		—		309		309
September 30, 2019	$	7,556	$	58,872	$	66,428

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. The Company has indefinite-lived trade names which had a carrying value of $9.8 million at both September 30, 2019 and December 31, 2018. Refer to Note 3 for the intangible assets acquired through the Tuffy acquisition during the quarter ended September 30, 2019.

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Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,808
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$ 2,029

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Leases - Maturity of Operating Lease Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Lease Liabilities Payments Due [Abstract]
2019	$ 620
2020	2,247
2021	1,339
2022	1,189
2023	1,016
After 2023	961
Total lease payments	7,372
Less: Interest	(755)
Lease liabilities	$ 6,617

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Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details)	9 Months Ended
	Sep. 30, 2019
4.67% Senior Unsecured Notes due 2021 [Member]
Debt Instrument [Line Items]
Interest rate	4.67%
Debt instrument maturity period	2021
5.25% Senior Unsecured Notes due 2024 [Member]
Debt Instrument [Line Items]
Interest rate	5.25%
Debt instrument maturity period	2024
5.30% Senior Unsecured Notes due 2024 [Member]
Debt Instrument [Line Items]
Interest rate	5.30%
Debt instrument maturity period	2024
5.45% Senior Unsecured Notes due 2026 [Member]
Debt Instrument [Line Items]
Interest rate	5.45%
Debt instrument maturity period	2026

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Income Taxes [Line Items]
Effective tax rate for the year	26.20%	20.90%	27.30%	5.10%
Unrecognized tax benefits that would impact effective tax rate	$ 1.0		$ 1.0		$ 1.0
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 September 30, 2019, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015.
U.S. Federal [Member] | Internal Revenue Service ("IRS") [Member]
Income Taxes [Line Items]
Income tax examination for tax years			2017
State and Local [Member] | Internal Revenue Service ("IRS") [Member]
Income Taxes [Line Items]
Income tax examination for tax years			2013 2014 2015 2016 2017 2018
Non-U.S [Member] | Internal Revenue Service ("IRS") [Member]
Income Taxes [Line Items]
Income tax examination for tax years			2014 2015 2016 2017 2018

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Subsequent Event - Additional Information (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019 USD ($)
Scenario Forecast [Member]
Subsequent Event [Line Items]
Reversal of recognized stock compensation expense	$ 2.3

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Restructuring - Restructuring Charges by Segment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 865	$ 119
Cost of Sales [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	0	119
SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	865	0
Distribution [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	865	0
Distribution [Member] | Cost of Sales [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	0	0
Distribution [Member] | SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	865	0
Material Handling [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	0	119
Material Handling [Member] | Cost of Sales [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	0	119
Material Handling [Member] | SG&A [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 0	$ 0

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Assets Held for Sale - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) Building	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Long Lived Assets Held For Sale [Line Items]
Impairment charges	$ 0	$ 0	$ 916,000	$ 308,000
Net proceeds from sale of building			$ 7,400,000
Number of buildings sold | Building			2
Other Assets [Member]
Long Lived Assets Held For Sale [Line Items]
Building classified as held for sale	0		$ 0		$ 4,400,000
Level 2 [Member]
Long Lived Assets Held For Sale [Line Items]
Impairment charges	$ 0	$ 0	$ 900,000	$ 300,000