SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q

 	
 	 		
☑	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934		
For the quarterly period ended March 31, 2017
OR

 	
 	 		
☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934		
For the transition period from                      to                     
Commission File Number 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)
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, and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐ .
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ☐	Accelerated filer  ☑	
Non-Accelerated filer  ☐  (Do not check if a smaller reporting company)	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 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 ☑ .
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Class	 	Outstanding as of April 28, 2017	
Common Stock, without par value	 	30,079,186 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 Statement of Shareholders’ Equity (Unaudited)	5	
 	 	
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 	17	
 	 	
Item 3. Quantitative and Qualitative Disclosures About Market Risk	20	
 	 	
Item 4. Controls and Procedures	 21	
 	 	
Part II — Other Information	22	
 	 	
Item 1. Legal Proceedings	22	
 	 	
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22	
 	 	
Item 6. Exhibits	22	
 	 	
Signature	22	
 	 	
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 Three Months Ended March 31,	 	
 	 	2017	 	 	2016	 	
Net sales	 	$	141,703	 	 	$	151,205	 	
Cost of sales	 	 	99,700	 	 	 	103,034	 	
Gross profit	 	 	42,003	 	 	 	48,171	 	
Selling, general and administrative expenses	 	 	34,645	 	 	 	38,497	 	
Impairment charges	 	 	—	 	 	 	8,545	 	
Operating income	 	 	7,358	 	 	 	1,129	 	
Interest expense, net	 	 	1,975	 	 	 	2,019	 	
Income (loss) from continuing operations before income taxes	 	 	5,383	 	 	 	(890	)	
Income tax expense	 	 	2,255	 	 	 	2,446	 	
Income (loss) from continuing operations	 	 	3,128	 	 	 	(3,336	)	
Income (loss) from discontinued operations, net of income tax	 	 	(14	)	 	 	(57	)	
Net income (loss)	 	$	3,114	 	 	$	(3,393	)	
Income (loss) per common share from continuing operations:	 	 	 	 	 	 	 	 	
Basic	 	$	0.10	 	 	$	(0.11	)	
Diluted	 	$	0.10	 	 	$	(0.11	)	
Income (loss) per common share from discontinued operations:	 	 	 	 	 	 	 	 	
Basic	 	$	—	 	 	$	—	 	
Diluted	 	$	—	 	 	$	—	 	
Net income (loss) per share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.10	 	 	$	(0.11	)	
Diluted	 	$	0.10	 	 	$	(0.11	)	
Dividends declared per share	 	$	0.14	 	 	$	0.14	 	
 
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 Three Months Ended March 31,	 	
 	 	2017	 	 	2016	 	
Net income (loss)	 	$	3,114	 	 	$	(3,393	)	
Other comprehensive income	 	 	 	 	 	 	 	 	
Foreign currency translation adjustment	 	 	901	 	 	 	4,915	 	
Total other comprehensive income	 	 	901	 	 	 	4,915	 	
Comprehensive income	 	$	4,015	 	 	$	1,522	 	
 
See notes to unaudited condensed consolidated financial statements.

2

 
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Financial Position (Unaudited)
(Dollars in thousands)
 
 	 	March 31,	 	 	December 31,	 	
 	 	2017	 	 	2016	 	
Assets	 	 	 	 	 	 	 	 	
Current Assets	 	 	 	 	 	 	 	 	
Cash	 	$	7,325	 	 	$	7,888	 	
Restricted cash	 	 	8,637	 	 	 	8,635	 	
Accounts receivable, less allowances of $1,541 and $1,563, respectively	 	 	75,582	 	 	 	73,818	 	
Inventories	 	 	 	 	 	 	 	 	
Finished and in-process products	 	 	32,857	 	 	 	31,826	 	
Raw materials and supplies	 	 	17,665	 	 	 	14,197	 	
 	 	 	50,522	 	 	 	46,023	 	
Prepaid expenses and other assets	 	 	2,764	 	 	 	4,787	 	
Total Current Assets	 	 	144,830	 	 	 	141,151	 	
Other Assets	 	 	 	 	 	 	 	 	
Goodwill	 	 	59,306	 	 	 	59,219	 	
Intangible assets, net	 	 	45,884	 	 	 	47,994	 	
Deferred income taxes	 	 	252	 	 	 	216	 	
Notes receivable	 	 	18,367	 	 	 	18,275	 	
Other	 	 	3,784	 	 	 	3,347	 	
 	 	 	127,593	 	 	 	129,051	 	
Property, Plant and Equipment, at Cost	 	 	 	 	 	 	 	 	
Land	 	 	8,960	 	 	 	8,916	 	
Buildings and leasehold improvements	 	 	66,004	 	 	 	65,566	 	
Machinery and equipment	 	 	311,640	 	 	 	319,606	 	
 	 	 	386,604	 	 	 	394,088	 	
Less allowances for depreciation and amortization	 	 	(281,178	)	 	 	(282,606	)	
Property, plant and equipment, net	 	 	105,426	 	 	 	111,482	 	
Total Assets	 	$	377,849	 	 	$	381,684	 	
 
See notes to unaudited condensed consolidated financial statements.
 
3

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Position (Unaudited)
(Dollars in thousands, except share data)
 
 	 	March 31,	 	 	December 31,	 	
 	 	2017	 	 	2016	 	
Liabilities and Shareholders’ Equity	 	 	 	 	 	 	 	 	
Current Liabilities	 	 	 	 	 	 	 	 	
Accounts payable	 	$	56,654	 	 	$	48,988	 	
Accrued expenses	 	 	 	 	 	 	 	 	
Employee compensation	 	 	13,089	 	 	 	11,861	 	
Income taxes	 	 	111	 	 	 	—	 	
Taxes, other than income taxes	 	 	2,169	 	 	 	2,178	 	
Accrued interest	 	 	1,381	 	 	 	3,202	 	
Other	 	 	12,780	 	 	 	13,083	 	
Total Current Liabilities	 	 	86,184	 	 	 	79,312	 	
Long-term debt	 	 	179,571	 	 	 	189,522	 	
Other liabilities	 	 	7,923	 	 	 	9,235	 	
Deferred income taxes	 	 	10,527	 	 	 	10,582	 	
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 30,055,109 and 30,019,561; net of treasury shares
  of 7,897,348 and 7,932,896, respectively)	 	 	18,268	 	 	 	18,234	 	
Additional paid-in capital	 	 	202,724	 	 	 	202,033	 	
Accumulated other comprehensive loss	 	 	(33,273	)	 	 	(34,174	)	
Retained deficit	 	 	(94,075	)	 	 	(93,060	)	
Total Shareholders’ Equity	 	 	93,644	 	 	 	93,033	 	
Total Liabilities and Shareholders’ Equity	 	$	377,849	 	 	$	381,684	 	
 
See notes to unaudited condensed consolidated financial statements.

4

 
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Shareholders’ Equity (Unaudited)
(Dollars in thousands, except per share data)
 
 	 	Common Shares	 	 	Additional
Paid-In Capital	 	 	Accumulated
Other
Comprehensive Income (Loss)	 	 	Retained
Deficit	 	 	Total
Shareholders' Equity	 	
Balance at January 1, 2017	 	$	18,234	 	 	$	202,033	 	 	$	(34,174	)	 	$	(93,060	)	 	$	93,033	 	
Net income (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,114	 	 	 	3,114	 	
Foreign currency translation adjustment	 	 	 	 	 	 	 	 	 	 	901	 	 	 	 	 	 	 	901	 	
Shares issued under incentive plans, net of shares
   withheld for tax	 	 	34	 	 	 	(58	)	 	 	 	 	 	 	 	 	 	 	(24	)	
Stock compensation expense	 	 	 	 	 	 	749	 	 	 	 	 	 	 	 	 	 	 	749	 	
Declared dividends - $.14 per share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(4,129	)	 	 	(4,129	)	
Balance at March 31, 2017	 	$	18,268	 	 	$	202,724	 	 	$	(33,273	)	 	$	(94,075	)	 	$	93,644	 	
 
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 Three Months Ended March 31,	 	
 	 	2017	 	 	2016	 	
Cash Flows From Operating Activities	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	3,114	 	 	$	(3,393	)	
Income (loss) from discontinued operations, net of income taxes	 	 	(14	)	 	 	(57	)	
Income (loss) from continuing operations	 	 	3,128	 	 	 	(3,336	)	
Adjustments to reconcile income (loss) from continuing operations to net cash provided by
   (used for) operating activities	 	 	 	 	 	 	 	 	
Depreciation	 	 	6,082	 	 	 	6,000	 	
Amortization	 	 	2,436	 	 	 	2,499	 	
Accelerated depreciation associated with restructuring activities	 	 	618	 	 	 	—	 	
Non-cash stock-based compensation expense	 	 	894	 	 	 	1,282	 	
(Gain) loss on fixed asset sales	 	 	(1,008	)	 	 	—	 	
Deferred taxes	 	 	101	 	 	 	(967	)	
Excess tax benefit from stock-based compensation	 	 	—	 	 	 	106	 	
Accrued interest income on note receivable	 	 	(322	)	 	 	(301	)	
Impairment charges	 	 	—	 	 	 	8,545	 	
Other	 	 	109	 	 	 	214	 	
Payments on performance based compensation	 	 	(992	)	 	 	(1,699	)	
Other long-term liabilities	 	 	(59	)	 	 	427	 	
Cash flows provided by (used for) working capital	 	 	 	 	 	 	 	 	
Accounts receivable	 	 	(1,799	)	 	 	(6,766	)	
Inventories	 	 	(4,403	)	 	 	(4,774	)	
Prepaid expenses and other assets	 	 	2,030	 	 	 	1,143	 	
Accounts payable and accrued expenses	 	 	6,234	 	 	 	(13,690	)	
Net cash provided by (used for) operating activities - continuing operations	 	 	13,049	 	 	 	(11,317	)	
Net cash provided by (used for) operating activities - discontinued operations	 	 	—	 	 	 	—	 	
Net cash provided by (used for) operating activities	 	 	13,049	 	 	 	(11,317	)	
Cash Flows From Investing Activities	 	 	 	 	 	 	 	 	
Capital expenditures	 	 	(498	)	 	 	(7,140	)	
Proceeds from sale of property, plant and equipment	 	 	1,117	 	 	 	6	 	
Proceeds (payments) related to sale of business	 	 	—	 	 	 	(4,034	)	
Net cash provided by (used for) investing activities - continuing operations	 	 	619	 	 	 	(11,168	)	
Net cash provided by (used for) investing activities - discontinued operations	 	 	—	 	 	 	—	 	
Net cash provided by (used for) investing activities	 	 	619	 	 	 	(11,168	)	
Cash Flows From Financing Activities	 	 	 	 	 	 	 	 	
Net borrowing (repayments) on credit facility	 	 	(9,310	)	 	 	24,999	 	
Cash dividends paid	 	 	(4,089	)	 	 	(4,079	)	
Proceeds from issuance of common stock	 	 	247	 	 	 	47	 	
Excess tax benefit from stock-based compensation	 	 	—	 	 	 	(106	)	
Repurchase of common stock	 	 	—	 	 	 	—	 	
Shares withheld for employee taxes on equity awards	 	 	(271	)	 	 	(502	)	
Deferred financing costs	 	 	(975	)	 	 	—	 	
Net cash provided by (used for) financing activities - continuing operations	 	 	(14,398	)	 	 	20,359	 	
Net cash provided by (used for) financing activities - discontinued operations	 	 	—	 	 	 	—	 	
Net cash provided by (used for) financing activities	 	 	(14,398	)	 	 	20,359	 	
Foreign exchange rate effect on cash	 	 	167	 	 	 	383	 	
Net increase (decrease) in cash	 	 	(563	)	 	 	(1,743	)	
Cash at January 1	 	 	7,888	 	 	 	7,344	 	
Cash at March 31	 	$	7,325	 	 	$	5,601	 	
 
See notes to unaudited condensed consolidated financial statements.

6

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
 Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts 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 without audit, 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, 2016.
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 March 31, 2017, and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2017.
Accounting Standards Adopted
In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting , which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company adopted this ASU effective January 1, 2017 and elected to recognize forfeitures as they occur. The cash flow classification requirements of ASU 2016-09 were applied prospectively. The adoption of this ASU did not have a material impact on the Company’s results of operations, cash flows or financial position.
Accounting Standards Not Yet Adopted
In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.   This ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  The ASU also allows only the service cost component to be eligible for capitalization when applicable. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The Company does not anticipate that adoption of this standard will have an impact on its consolidated financial statements as the pension plan is frozen.
In January 2017 , the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.  This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.  The guidance allows for early adoption for impairment testing dates after January 1, 2017.  While the Company is currently evaluating the timing of adoption, it does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.
 In November 2016, the FASB issued ASU 2016 -18, Statement of Cash Flows (Topic 230) - Restricted Cash . This ASU requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash
7

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows.  The ASU is effective for annual reporting periods beginning after December 15, 2 017 and interim periods within those annual periods. To the extent there are changes in the Company’s restricted cash balances, adoption of this standard will impact the statement of cash flows.
In October 2016, the FASB issued ASU 2016-16,  Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) . This ASU requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments , which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows.  The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows.  This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted.  The Company does not anticipate that adoption of this standard will have a significant impact on its consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , which introduces new guidance for the accounting for credit losses on instruments.  The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2019 including interim periods within that reporting period, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company beginning January 1, 2019 and requires a modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , to clarify the principles used to recognize revenue for all entities. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance also includes enhanced disclosure requirements, and is effective January 1, 2018, with early adoption permitted for January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statements of Shareholders’ Equity. The Company plans to adopt the new guidance effective January 1, 2018 under the modified retrospective approach and has developed an implementation plan. As part of this plan, the Company has identified its revenue streams and is in the process of performing contract reviews to assess the impact of the new guidance on its results of operations. The Company's analysis is ongoing with respect to whether certain contracts will be recognized over time or at a point in time. Further, the Company is assessing what incremental disaggregated revenue disclosures will be required in the Consolidated Financial Statements.
Translation of Foreign Currencies
All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.
Fair Value Measurement
 The Company follows guidance included in the Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied under U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure
8

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
requirements about such fair value measurements. The guidance did not require any new f air value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into th ree levels:
 	Level 1:	Unadjusted quoted prices in active markets for identical assets or liabilities.	
 	Level 2:	Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.	
 	Level 3:	Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.	
The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximate carrying value due to the nature and relative short maturity of these assets and liabilities.
The fair value of debt under the Company’s Loan Agreement, as defined in Note 11, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the 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 March 31, 2017 and December 31, 2016, the aggregate fair value of the Company's $100.0 million fixed rate senior unsecured notes was estimated at $99.3 million and $98.0 million, respectively.
Revenue Recognition
The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title and risk of loss, which is generally at time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.
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, 2017	 	$	(32,342	)	 	$	(1,832	)	 	$	(34,174	)	
Other comprehensive income before reclassifications	 	 	901	 	 	 	—	 	 	 	901	 	
Net current-period other comprehensive income	 	 	901	 	 	 	—	 	 	 	901	 	
Balance at March 31, 2017	 	$	(31,441	)	 	$	(1,832	)	 	$	(33,273	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at January 1, 2016	 	$	(37,447	)	 	$	(1,663	)	 	$	(39,110	)	
Other comprehensive income before reclassifications	 	 	4,915	 	 	 	—	 	 	 	4,915	 	
Net current-period other comprehensive income	 	 	4,915	 	 	 	—	 	 	 	4,915	 	
Balance at March 31, 2016	 	$	(32,532	)	 	$	(1,663	)	 	$	(34,195	)	
 
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.
2.  Impairment Charges
During the first quarter of 2016, the Company reviewed its long-lived assets, intangible assets and goodwill at Plasticos Novel do Nordeste S.A. (“Novel”), a reporting unit within the Material Handling Segment for impairment. The testing for impairment was performed as a result of the presence of impairment indictors resulting from the communication of a reduction in capital spending in the near-term from a significant customer in March 2016, which resulted in a significant reduction in Novel’s forecasted revenue and income.
9

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
The Company first conducted a review for impairment of indefinite-lived intangibles and other long-lived assets related to Novel, including amortizable intangible assets and fixed ass ets which indicated that the carrying amounts of such assets may not be recoverable and required an assessment of fair value of the assets for purposes of measuring an impairment charge. The estimated fair value of indefinite-lived intangibles was determin ed using a relief from royalty payments income approach and the other long-lived assets was determined, in part, using an analysis of projected cash flows, a market approach and a cost approach. These valuation methods use Level 3 inputs under the fair val ue hierarchy discussed in Note 1.
To test for potential impairment for goodwill, the Company performed an interim impairment test as of March 31, 2016. The step one goodwill impairment test was performed using a discounted cash flow (“DCF”) valuation model. The significant assumptions in the DCF model are the annual revenue growth rate, the annual operating income margin and the discount rate used to determine the present value of the cash flow projections. The discount rate was based on the estimated weighted average cost of capital as of the testing date for market participants in the industry in which the Novel reporting unit operates. Based on the estimated fair value generated by the DCF model, the Novel reporting unit’s fair value did not exceed its carrying value as of March 31, 2016 and therefore a step two analysis was required to be performed. The decline in fair value of the reporting unit resulted primarily from lower projected operating results and cash flows than those utilized from the 2015 annual impairment test, directly related to the triggering event outlined above. During the first quarter of 2016, a step two analysis was performed to allocate estimated fair value to assets and liabilities in order to estimate an implied value of goodwill. As a result of these impairment reviews, the Company concluded that the goodwill, intangibles and other long-lived assets related to Novel were impaired and recorded a non-cash impairment charge of $8.5 million, which was reported in impairment charges in the Condensed Consolidated Statements of Operations (Unaudited) in the first quarter of 2016.  

3.  Discontinued Operations
On February 17, 2015, the Company sold its Lawn and Garden business to an entity controlled by Wingate Partners V, L.P., a private equity firm, for $110.0 million, subject to a working capital adjustment. The terms of the agreement include a $90.0 million cash payment, promissory notes totaling $20.0 million that mature in August 2020 with a 6% interest rate, and approximately $8.6 million placed in escrow that was due to be settled by August 2016, but has been extended until indemnification claims are resolved, as described in Note 10 - Contingencies.  The fair market value of the notes at February 17, 2015 was $17.8 million and is included in Notes Receivable in the accompanying Condensed Consolidated Statements of Financial Position (Unaudited), in which the carrying value of $18.4 million represents the fair value at date of sale plus accretion as of March 31, 2017. The fair value of the notes receivable was calculated using level 2 inputs as defined in Note 1. The final working capital adjustment resulted in a cash payment to the buyer of approximately $4.0 million in the first quarter of 2016.

4.  Restructuring
On March 9, 2017, the Company announced a restructuring plan (the “Plan”) to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment.  In connection with the Plan, the Company expects to record restructuring charges of approximately $10 million in 2017; of this amount, the Company expects restructuring-related costs such as equipment relocation, facility shutdown and other implementation costs of about $5.5 million and employee severance and other employee-related costs of approximately $2.5 million. Non-cash charges relating to these restructuring actions, primarily accelerated depreciation charges and potential impairment of property, plant and equipment, are expected to be approximately $2.0 million. Actions under the Plan are expected to be substantially completed by the end of 2017.
In the first quarter of 2017, the Company recognized a gain of $0.8 million on asset dispositions in connection with closing a manufacturing plant in Bluffton, Indiana.  Restructuring and accelerated depreciation charges related to this plant and recognized in the first quarter of 2017 of $0.9 million were included in Cost of Sales in the accompanying Condensed Consolidated Statements of Operations (Unaudited).
10

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
The table below summari zes restructuring activity for the three months ended March 31, 2017 :
 
 	 	Employee Reduction	 	 	Accelerated Depreciation	 	 	Other Costs	 	 	Total	 	
Balance at January 1, 2017	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
Charges to expense	 	 	224	 	 	 	618	 	 	 	12	 	 	 	854	 	
Cash payments	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
Non-cash utilization	 	 	—	 	 	 	(618	)	 	 	—	 	 	 	(618	)	
Balance at March 31, 2017	 	$	224	 	 	$	—	 	 	$	12	 	 	$	236	 	

5.  Inventories
Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 40 percent of our 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 necessarily be based on management’s estimates of expected year-end inventory levels and costs. Because these are based on estimates, interim results, which were immaterial, are subject to change in the final year-end LIFO inventory valuation and therefore, no adjustment was recorded as of March 31, 2017, as consistent with prior interim reporting periods.

6.  Other Accrued Expenses
The balance in other accrued expenses is comprised of the following:
 
 	 	March 31,	 	 	December 31,	 	
 	 	2017	 	 	2016	 	
Deposits and amounts due to customers	 	$	2,329	 	 	$	2,688	 	
Dividends payable	 	 	4,300	 	 	 	4,260	 	
Accrued litigation and professional fees	 	 	584	 	 	 	452	 	
Other accrued expenses	 	 	5,567	 	 	 	5,683	 	
 	 	$	12,780	 	 	$	13,083	 	

7.  Goodwill and Intangible Assets
The change in goodwill for the three months ended March 31, 2017 and March 31, 2016 was as follows:
 
 	 	Distribution	 	 	Material
Handling	 	 	Total	 	
January 1, 2017	 	$	505	 	 	$	58,714	 	 	$	59,219	 	
Foreign currency translation	 	 	—	 	 	 	87	 	 	 	87	 	
March 31, 2017	 	$	505	 	 	$	58,801	 	 	$	59,306	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Distribution	 	 	Material
Handling	 	 	Total	 	
January 1, 2016	 	$	505	 	 	$	63,530	 	 	$	64,035	 	
Foreign currency translation	 	 	—	 	 	 	1,246	 	 	 	1,246	 	
Impairment charges	 	 	—	 	 	 	(5,676	)	 	 	(5,676	)	
March 31, 2016	 	$	505	 	 	$	59,100	 	 	$	59,605	 	
 
Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents 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 $10.9 million at March 31, 2017 and December 31, 2016.
11

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
See Note 2 for discussion of goodwill, trade name and other long-lived asset impairment charges in the first quarter of 2016.

8.  Net Income (Loss) per Common Share
Net income (loss) per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:
 
 	 	For the Three Months Ended March 31,	 	
 	 	2017	 	 	2016	 	
Weighted average common shares outstanding basic	 	 	30,029,679	 	 	 	29,547,514	 	
Dilutive effect of stock options and restricted stock	 	 	262,904	 	 	 	—	 	
Weighted average common shares outstanding diluted	 	 	30,292,583	 	 	 	29,547,514	 	
 
Options to purchase 856,559 shares of common stock that were outstanding for the three months ended  March 31, 2017, were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of common shares, and were therefore anti-dilutive.  There were 2,136,840 stock-based awards excluded from the computation of net loss per common share for the three months ended March 31, 2016 due to the Company’s net loss for the period.

9.  Stock Compensation
Subject to shareholder approval, which was received on April 26, 2017, the Board of Directors approved the Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”) on March 2, 2017. 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 2017, the Company granted 397,759 stock options with a weighted average exercise price of $14.30 and a weighted average fair value of $4.47. The fair value of options granted is estimated using a binomial lattice option pricing model. Also in March 2017, the Company granted 87,887 and 140,746 time-based and performance-based restricted stock units, respectively, with a weighted average fair value of $14.30.
Stock compensation expense was approximately $0.9 million and $1.3 million for the three months ended March 31, 2017 and 2016, 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 March 31, 2017 was approximately $8.5 million, which will be recognized over the next three years, as such compensation is earned.

10.  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.
New Idria Mercury Mine
 In September 2015, the U.S. Environmental Protection Agency (“EPA”) formally informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”).  New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976 was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries in 1987.  As a result of the EPA Notice Letter, Buckhorn and the Company are engaged in negotiations with the EPA with respect to a draft Administrative Order proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives.  The New Idria Mine is located near Hollister, California and was added to the Superfund National Priorities List by the EPA in October 2011, at which time the Company recognized expense of $1.9 million related to performing the RI/FS.   In the second quarter of 2016, the Company, based on discussions with the EPA, determined that the RI/FS will begin in 2017 and therefore obtained
12

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
updated estimated costs to perform the RI/FS.  As a result of the updated estimated cost s, the Company recorded additional expense of $1.0 million in the second quarter of 2016.  As part of the Notice Letter, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Id ria Mine since 1993.  While the Company is challenging these past cost claims, in 2015 the Company recognized expense of $1.3 million related to these claims.  
As of March 31, 2017, the Company has a total reserve of $2.4 million related to the New Idria Mine, of which $0.3 million is classified in Other Current Liabilities and $2.1 million is classified in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).
As negotiations with the EPA proceed it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. 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 negotiations with EPA, the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the number and financial condition of other PRPs that may be named as well as the extent of their responsibility for the remediation, and the availability of insurance coverage for these expenses.
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 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 original cost estimate of $1.6 million of implementing the project. 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 the second and third quarters of 2016.  As of March 31, 2017, the Company has a total reserve of $1.5  million related to the New Almaden Mine, of which $0.2 million is classified in Other Current Liabilities and $1.3 million is classified 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. Field work on the project is expected to commence in 2017.  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 3, the Company received a Notice of Indemnification Claims in April 2015, and a Second Notice of Indemnification Claims in July 2016 (collectively, the “Claims”), alleging breaches of certain representations and warranties under the agreement resulting in losses in the amount of approximately $10 million. The Company believes these Claims are without merit and intends to vigorously defend its position. As described in Note 3, approximately $8.6 million of the sale proceeds were placed in escrow and due to be settled in August 2016, but have been extended until the Claims are resolved.  
 When a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence
13

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
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 will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.

11.  Long-Term Debt and Loan Agreements
Long-term debt consisted of the following:
 
 	 	March 31,	 	 	December 31,	 	
 	 	2017	 	 	2016	 	
Loan Agreement	 	$	81,504	 	 	$	90,686	 	
4.67% Senior Unsecured Notes due 2021	 	 	40,000	 	 	 	40,000	 	
5.25% Senior Unsecured Notes due 2024	 	 	11,000	 	 	 	11,000	 	
5.30% Senior Unsecured Notes due 2024	 	 	29,000	 	 	 	29,000	 	
5.45% Senior Unsecured Notes due 2026	 	 	20,000	 	 	 	20,000	 	
 	 	 	181,504	 	 	 	190,686	 	
Less unamortized deferred financing costs	 	 	1,933	 	 	 	1,164	 	
 	 	$	179,571	 	 	$	189,522	 	
 
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.  In addition, the Loan Agreement provides for a maximum Leverage Ratio of 3.75 for the first and second quarters of 2017, stepping down to 3.5 in the third quarter of 2017, and 3.25 thereafter.
Under the terms of the Loan Agreement, the Company may borrow up to $200.0 million, reduced for letters of credit issued. As of March 31, 2017, the Company had $114.1 million available under the Loan Agreement. The Company had $4.4 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business at March 31, 2017. 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 average interest rate on borrowings under our loan agreements were 5.20% and 4.50% for the three months ended March 31, 2017 and 2016, respectively, which includes a quarterly facility fee on the used and unused portion.
Long-term debt of $179.6 million at March 31, 2017 includes $1.9 million of unamortized deferred financing costs, which is accounted for as a debt valuation account. Amounts outstanding at March 31, 2017 under the Loan Agreement and note purchase agreement mature in 2022 and 2021 to 2026, respectively.

12.  Retirement Plans
The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s frozen 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 as of the date the plan was frozen.
14

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
Net periodic pension cost are as follows:
 
 	 	For the Three Months Ended March 31,	 	
 	 	2017	 	 	2016	 	
Interest cost	 	$	63	 	 	$	68	 	
Expected return on assets	 	 	(74	)	 	 	(80	)	
Amortization of net loss	 	 	24	 	 	 	20	 	
Net periodic pension cost	 	$	13	 	 	$	8	 	
 	 	 	 	 	 	 	 	 	
Company contributions	 	$	—	 	 	$	—	 	
 
The Company does not expect to make a contribution to the plan in 2017.

13.  Income Taxes
The Company’s effective tax rate was 41.9% for the three months ended March 31, 2017, higher than the statutory rate due to losses in jurisdictions where the tax benefits are not currently recognized. In the first quarter of 2016, the Company recognized $2.4 million of tax expense on a pre-tax loss of $0.9 million, primarily due to losses in jurisdictions where the tax benefits are not currently recognized, including the impairment charges in Brazil.
The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $0.5 million at March 31, 2017 and December 31, 2016. Accrued interest expense included within Accrued Income Taxes in the Company's Condensed Consolidated Statements of Financial Position (Unaudited) was less than $0.1 million at both March 31, 2017 and December 31, 2016.  It is reasonably possible that the Company will recognize tax benefits within the next twelve months in the range of zero to $0.5 million resulting from the possible expiration of certain statutes of limitation.
The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of March 31, 2017, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2013. The Company is subject to state and local examinations for tax years of 2012 through 2016. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2011 through 2016.

14.  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, but also operates in Brazil 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 four regional distribution centers in the United States and in 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.
15

MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)
(Dollar amounts in thousands, except where otherwise indicated)
 
Summarized segment detail for th e three months ended March 31, 2017 and 2016 are presented in the following table:
 
 	 	For the Three Months Ended March 31,	 	
 	 	2017	 	 	2016	 	
Net Sales	 	 	 	 	 	 	 	 	
Material Handling	 	$	103,180	 	 	$	109,024	 	
Distribution	 	 	38,574	 	 	 	42,221	 	
Inter-company sales	 	 	(51	)	 	 	(40	)	
Total net sales	 	$	141,703	 	 	$	151,205	 	
 
Income (loss) from continuing operations before income taxes	 	 	 	 	 	 	 	 	
Material Handling	 	$	12,088	 	 	$	7,441	 	
Distribution	 	 	1,538	 	 	 	2,536	 	
Corporate	 	 	(6,268	)	 	 	(8,848	)	
Total operating income	 	 	7,358	 	 	 	1,129	 	
Interest expense, net	 	 	(1,975	)	 	 	(2,019	)	
Income (loss) from continuing operations before income taxes	 	$	5,383	 	 	$	(890	)	

 
16

 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of O perations
Results of Operations:
Comparison of the Three Months Ended March 31, 2017 to the Three Months Ended March 31, 2016
Net Sales:
 
(dollars in millions)	 	Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	
Segment	 	2017	 	 	2016	 	 	Change	 	 	% Change	 	
Material Handling	 	$	103.2	 	 	$	109.0	 	 	$	(5.8	)	 	 	(5	)%	
Distribution	 	 	38.6	 	 	 	42.2	 	 	 	(3.6	)	 	 	(9	)%	
Inter-company sales	 	 	(0.1	)	 	 	—	 	 	 	(0.1	)	 	 	 	 	
Total net sales	 	$	141.7	 	 	$	151.2	 	 	$	(9.5	)	 	 	(6	)%	
 
Net sales for the three months ended March 31, 2017 were $141.7 million, a decrease of $9.5 million or 6% compared to the three months ended March 31, 2016. Net sales were negatively impacted by lower sales volume of approximately $10.3 million, partially offset by the effect of favorable foreign currency translation of approximately $1.4 million.
Net sales in the Material Handling Segment decreased $5.8 million or 5% for the three months ended March 31, 2017 compared to the three months ended March 31, 2016. The decrease in net sales was primarily due to lower sales volume of approximately $7.1 million, mainly in the agricultural end market, partially offset by the effect of favorable foreign currency translation of $1.4 million.
Net sales in the Distribution Segment decreased $3.6 million or 9% for the three months ended March 31, 2017 compared to the three months ended March 31, 2016, primarily due to lower volume. The decrease in volume was across all product lines, particularly in our northern sales regions as a milder winter had an adverse effect on demand. We also continued to see lower capital spending on equipment across all regions.
Cost of Sales & Gross Profit:
 
 	 	Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	2017	 	 	2016	 	 	Change	 	 	% Change	 	
Cost of sales	 	$	99.7	 	 	$	103.0	 	 	$	(3.3	)	 	 	(3	)%	
Gross profit	 	$	42.0	 	 	$	48.2	 	 	$	(6.2	)	 	 	(13	)%	
Gross profit as a percentage of sales	 	 	29.6	%	 	 	31.9	%	 	 	 	 	 	 	 	 	
 
Gross profit margin decreased to 29.6% in the three months ended March 31, 2017 compared to 31.9% for the three months ended March 31, 2016, primarily due to lower sales volume noted above in both our Material Handling and Distribution Segments, higher raw material input costs, and higher manufacturing and restructuring costs.
Selling, General and Administrative Expenses:
 
 	 	Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	2017	 	 	2016	 	 	Change	 	 	% Change	 	
SG&A expenses	 	$	34.6	 	 	$	38.5	 	 	$	(3.9	)	 	 	(10	)%	
SG&A expenses as a percentage of sales	 	 	24.4	%	 	 	25.5	%	 	 	 	 	 	 	 	 	
 
Selling, general and administrative (“SG&A”) expenses for the three months ended March 31, 2017 were $34.6 million, a decrease of $3.9 million or 10% compared to the same period in the prior year. SG&A expenses were favorable primarily due to lower severance, compensation and other employee-related costs of approximately $3.6 million.
Impairment Charges:
The Company recorded an $8.5 million non-cash impairment charge related to its Plasticos Novel do Nordeste S.A. (“Novel”) reporting unit during the three months ended March 31, 2016, as discussed in Note 2.  No impairment charges were recorded for the three months ended March 31, 2017.
17

Restructuring:
On March 9, 2017, the Company announced a restructuring plan (the “Plan”) to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment.  In connection with the Plan, the Company expects to record restructuring charges of approximately $10 million in 2017; of this amount, the Company expects restructuring-related costs such as equipment relocation, facility shutdown and other implementation costs of about $5.5 million and employee severance and other employee-related costs of approximately $2.5 million. Non-cash charges relating to these restructuring actions, primarily accelerated depreciation charges and potential impairment of property, plant and equipment, are expected to be approximately $2.0 million. The Company expects to save approximately $10 million on an annualized basis once the project is completed.   Actions under the Plan are expected to be substantially completed by the end of 2017.  The actual timing and costs of the Plan may differ from the Company’s current expectations and estimates.  
In the first quarter of 2017, the Company recognized a gain of $0.8 million on asset dispositions in connection with closing a manufacturing plant in Bluffton, Indiana. Restructuring and accelerated depreciation charges related to this plant and recognized in the first quarter of 2017 of $0.9 million were included in Cost of Sales in the accompanying Condensed Consolidated Statements of Operations (Unaudited).
Net Interest Expense:
 
 	 	Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	2017	 	 	2016	 	 	Change	 	 	% Change	 	
Net interest expense	 	$	2.0	 	 	$	2.0	 	 	$	0.0	 	 	 	0	%	
Outstanding borrowings, net of deferred financing costs	 	$	179.6	 	 	$	218.5	 	 	$	(38.9	)	 	 	(18	)%	
Average borrowing rate	 	 	5.20	%	 	 	4.50	%	 	 	 	 	 	 	 	 	
 
Net interest expense for the three months ended March 31, 2017 was $2.0 million which remained flat compared with the three months ended March 31, 2016.  Lower average outstanding borrowings were offset with a higher borrowing rate.
Income Taxes:
 
 	 	Three Months Ended March 31,	 	
(dollars in millions)	 	2017	 	 	2016	 	
Income from continuing operations before income taxes	 	$	5.4	 	 	$	(0.9	)	
Income tax expense	 	$	2.3	 	 	$	2.4	 	
Effective tax rate	 	 	41.9	%	 	 	(274.8	%)	
 
The Company’s effective tax rate was 41.9% for the three months ended March 31, 2017, higher than the statutory rate due to losses in jurisdictions where the tax benefits are not currently recognized.  In the prior year first quarter, the Company recognized $2.4 million of tax expense on a pre-tax loss of $0.9 million, primarily due to losses in jurisdictions where the tax benefits are not currently recognized including impairment charges in Brazil.
Financial Condition & Liquidity and Capital Resources
Operating Activities
Cash provided by operating activities from continuing operations were $13.0 million for the three months ended March 31, 2017, compared to a use of cash of $11.3 in the same period in 2016. The improvement was due to an increase in cash provided by working capital of $26.1 million, which resulted primarily from a swing in the cash provided by (used for) accounts payable and accrued expenses.
Investing Activities
 Cash provided by investing activities from continuing operations were $0.6 million for the three months ended March 31, 2017 compared to cash used of $11.2 million for the three months ended March 31, 2016. The Company paid a final working capital adjustment to the buyer of the Lawn and Garden business of approximately $4.0 million in the first quarter of 2016 as described in Note 3. The Company received proceeds of $1.1 million in the first quarter of 2017 from the sale of fixed assets, a major portion derived from the sale of equipment from the Company’s Bluffton, Indiana plant.  Capital expenditures were $0.5 million and $7.1
18

million for the three months ended March 31, 2017 and 2016 , respectively. Full year capital expenditures in 2017 are expected to be approximately $ 10 to $12 million.
Financing Activities
The Company did not repurchase any stock during the three months ended March 31, 2017 or 2016. The Company used cash to pay dividends of $4.1 million for both the three months ended March 31, 2017 and 2016.  Net repayments on the credit facility were $9.3 million for the three months ended March 31, 2017 compared to net borrowings of $25.0 million for the three months ended March 31, 2016.
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.  In addition, the Loan Agreement provides for a maximum Leverage Ratio of 3.75 for the first and second quarters of 2017, stepping down to 3.5 in the third quarter of 2017, and 3.25 thereafter.
Total debt outstanding at March 31, 2017 was $179.6 million, net of $1.9 million of deferred financing costs, compared with $189.5 million at December 31, 2016. The Company’s Loan Agreement provides available borrowing up to $200 million, reduced for letters of credit issued. As of March 31, 2017, the Company had $4.4 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business and there was $114.1 million available under our Loan Agreement.
As of March 31, 2017, 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 March 31, 2017 are shown in the following table:
 
 	 	Required Level	 	Actual Level	 	
Interest Coverage Ratio	 	3.00 to 1   (minimum)	 	 	7.44	 	
Leverage Ratio	 	3.75 to 1 (maximum)	 	 	2.89	 	
 
The Company believes that cash flows from operations and available borrowing under its Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, and debt service.

 
19

 Item 3. Quantitative and Qualitat ive Disclosures About Market 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. Accordingly, based on current debt levels at March 31, 2017, if market interest rates increase one percent, the Company’s interest expense would increase approximately $0.8 million annually.
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. In addition, the Company’s subsidiary in Brazil has loans 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 and Brazil that are denominated in U.S. dollars. The net exposure generally ranges from $2 million to $7 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 income statement. The Company’s foreign currency arrangements are typically three months or less and are settled before the end of a reporting period. At March 31, 2017, the Company had no foreign currency arrangements or contracts in place.
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.

 
20

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 March 31, 2017.
Changes in Internal Control Over Financial Reporting
During the three months ended March 31, 2017, 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.

 
21

 PART II – Other Information
 
 Item 1. Legal Proceedings
 
Certain legal proceedings in which the Company is involved are discussed in the Contingencies Note of the Unaudited Condensed Consolidated Financial Statements in Part I of this report and Part I, Item 3 of the Company's Annual Report on Form 10-K for the year ended December 31, 2016. 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
 
On July 11, 2013, the Board authorized the repurchase of up to 5.0 million shares of its common stock. This authorization was in addition to the 2011 Board authorized repurchase of up to 5.0 million shares. The Company completed the repurchase of approximately 2.0 million shares in 2011 pursuant to Rule 10b5-1 plans, which were adopted pursuant to the 2011 authorized share repurchase. The Company has repurchased a total of 5,547,665 shares of its common stock under this program and as of March 31, 2017, 2,452,335 shares of common stock remain available for repurchase under the Board authorization. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2017.

 Item 6. Exhibits
 	(a)	Exhibits	
 
 SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 	M YERS I NDUSTRIES , I NC .	
May 8, 2017	 
/s/ Matteo Anversa	
 	Matteo Anversa	
 	Executive Vice President
Chief Financial Officer and Corporate Secretary
(Principal Financial Officer)	
May 8, 2017	/s/ Kevin L. Brackman	
 	Kevin L. Brackman	
 	Vice President
Chief Accounting Officer and Corporate Controller
(Principal Accounting Officer)	

 
22

EXHIBIT INDEX
 
2(a)	Asset Purchase Agreement, dated as of May 30, 2014, among Scepter Corporation, SHI Properties Inc., CA Acquisition Inc., and Myers Industries, Inc. Reference is made to Exhibit 2.1 to Form 8-K filed with the Commission on July 7, 2014.**	
2(b)	Unit Purchase Agreement, dated as of May 30, 2014, among Eco One Holdings, Inc., Crown US Acquisition Company, and Myers Industries, Inc. Reference is made to Exhibit 2.2 to Form 8-K filed with the Commission on July 7, 2014.**	
2(c)	Indemnification Agreement, dated as of May 30, 2014 among Scepter Corporation, SHI Properties Inc., Eco One Holdings, Inc., Crown US Acquisition Company, and CA Acquisition Inc. Reference is made to Exhibit 2.3 to Form 8-K filed with the Commission on July 7, 2014.**	
2(d)	First Amendment to the Asset Purchase Agreement, Unit Purchase Agreement and Indemnification Agreement, dated as of July 2, 2014, among Scepter Corporation, SHI Properties Inc., CA Acquisition Inc., Eco One Holdings, Inc., Crown US Acquisition Company, and Myers Industries, Inc. Reference is made to Exhibit 2.4 to Form 8-K filed with the Commission on July 7, 2014.**	
2(e)	Amended and Restated Asset Purchase Agreement, dated as of February 17, 2015, among Myers Industries, Inc., MYE Canada Operations, Inc., and the HC Companies, Inc. Reference is made to Exhibit 2.1 to Form 8-K filed with the Commission on February 18, 2015.**	
3(a)	Myers Industries, Inc. 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.	
10.1	2017 Incentive Stock Plan of Myers Industries, Inc., as Amended and Restated (effective as of March 2, 2017) (formerly the Amended and Restated 2008 Incentive Stock Plan of Myers Industries, Inc.).  Reference is made to Annex A to the registrant’s Definitive Proxy Statement on Schedule 14A filed on March 21, 2017.*	
31.1	Certification of R. David Banyard, President and Chief Executive Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	
31.2	Certification of Matteo Anversa, Chief Financial Officer and Corporate Secretary of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	
32.1	Certifications of R. David Banyard, President and Chief Executive Officer, and Matteo Anversa, Chief Financial Officer and Corporate Secretary, of Myers Industries, Inc. 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 three months ended March 31, 2017, 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 Statement of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.	
 
*	Indicates executive compensation plan or arrangement.	
**	Pursuant to Item 601(b)(2) of Regulation S-K, certain exhibits and schedules have been omitted from this filing. The registrant agrees to furnish the Commission on a supplemental basis a copy of any omitted exhibit or schedule.	
 
23

Exhibit 31.1
Certification Per Section 302 of the Sarbanes-Oxley Act of 2002
I, R. David Banyard, 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:	May 8, 2017	/s/ R. David Banyard	
 	 	R. David Banyard, President and Chief Executive Officer	

Exhibit 31.2
Certification Per Section 302 of the Sarbanes-Oxley Act of 2002
I, Matteo Anversa, 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:	May 8, 2017	/s/ Matteo Anversa	
 	 	Matteo Anversa, Chief Financial Officer and Corporate Secretary	

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 March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, R. David Banyard, 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 March 31, 2017 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:	May 8, 2017	/s/ R. David Banyard	
 	 	R. David Banyard, 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 March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Matteo Anversa, Chief Financial Officer and Corporate Secretary 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 March 31, 2017 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:	May 8, 2017	/s/ Matteo Anversa	
 	 	Matteo Anversa, Chief Financial Officer and Corporate Secretary	
 
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.