Slides
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Protecting the World from the Ground Up Q1 2025 Results 1 May 1, 2025
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Today’s Speakers 2 Meghan Beringer Sr. Director, Investor Relations Grant Fitz Executive Vice President and Chief Financial Officer Aaron Schapper President and Chief Executive Officer Dan Hoehn Vice President and Corporate Controller, Interim Chief Financial Officer
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Safe Harbor Statement & Non-GAAP Measures Statements in this presentation contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company’s actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements. Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world, including the impacts of U.S. and foreign tariff policies; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. 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. The Company uses certain non-GAAP measures in this presentation. Adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release. 3
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CEO Opening Comments Aaron Schapper President and Chief Executive Officer
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Q1 Highlights 5 Net Sales $206.8M (0.2)% Gross Profit $69.1M +7.5% Adjusted Operating Income $18.7M +12.2% Adjusted Net Income $8.4M +5.5% Diluted Adjusted EPS $0.22 +4.8% ‘Focused Transformation’ Driving Culture of Performance Revenue essentially flat Y/Y as Material Handling growth was offset by lingering Distribution softness ▪ Positive Signature contribution and Industrial sales growth ▪ Seasonal Food & Beverage decline Margins improved on favorable product mix, lower material and manufacturing costs, and lower SG&A as percent of sales
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Resilient U.S. Supply Chain to Navigate Tariffs Supply chain is predominantly based in the US ▪ Most materials we purchase are from US suppliers ▪ 15 of our 16 manufacturing plants are in the US ▪ More than 90% of 2025 Material Handling revenue is expected to be manufactured in the US; remainder is protected by the USMCA and military exemption ▪ Less than 15% of Distribution products are sourced from China; plan to use pricing to offset tariff costs This domestically based supply chain makes us more resilient to tariff-driven disruptions Expect minimal direct impact from current tariffs Positioned to provide customers with options for supply chain resiliency to mitigate disruptions 6 Myers Manufacturing Locations US (15) Canada (1)
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Initial Progress on ‘Focused Transformation’ Establish a culture of execution and accountability to drive performance Revised Core Values: Integrity | Customer Focus | Deliver Results | Continuous Improvement Aligned incentive plans to drive business unit performance and create accountability Create clear strategies to improve profitability of entire portfolio Action plans to accelerate growth and expand margins; address and correct underperformance Specific internal KPIs to elevate performance, track progress, and create accountability Deliver consistent and reliable results by effectively controlling what we can control Confident in path to $20M annualized cost savings by year-end 2025, primarily SG&A, optimizing organizational efficiency Exceeded Signatures synergies, delivering $12M in cost synergies, above $8M target Optimize cash flow to support disciplined capital allocation deployment Activated $10M share repurchase authorization with $1M repurchased in Q1 Maintained capex target of 3% of sales, focusing on high-growth opportunities with superior returns Building Credibility Through Accountability, Transparency, and Performance 7
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Our Mission: Protecting Our Athletes BACKGROUND ▪ Turf venue wants to host non-sporting events, expanding functionality and revenue opportunity ▪ Installing and removing flooring systems damages the turf causing injury to players ▪ Conversion of space to repurpose venue is time consuming and expensive 8 OUTCOMESCOMPETITIVE ADVANTAGE ▪ OmniDeck® flooring system withholds weight of heavy machinery, staging, and equipment ▪ Athletes, coaches, and trainers are assured that field condition remains protected thereby preventing injury ▪ Lightweight flooring increases operational efficiency, reduces costs, and improves worker safety ▪ Facilitates venue repurposing, expanding event space flexibility and revenue opportunities Preserves turf condition Decreases weight for installers to carry Injury Prevention✓ Lightweight, drivable surface reduces installation time Operational Efficiency✓ Watch OmniDeck® SoFi Stadium Installation
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Our Mission: Protecting Our Troops BACKGROUND ▪ Military historically used wood and steel ammunition packaging - Antiquated and heavy, contributing to excess carry load for soldiers and vehicles - Includes multiple layers of packaging and dunnage adding complexity and inefficiency ▪ Reducing the weight burden continues to be mission critical throughout the defense industry - 76% of nondeployable soldiers suffered musculoskeletal injuries - Saves fuel costs throughout the defense budget 9 OUTCOMESCOMPETITIVE ADVANTAGE ▪ Lightweight, recoverable, and reusable solution - Up to 41% lighter than steel and wood - Contributes to decreased costs throughout the defense budget ▪ Built in dunnage with no additional packaging layers, reducing weight and waste, and mitigating accident risk Improves soldier health, deployability rates, and force readiness Lighter Load✓ Fuel, vehicle maintenance, and healthcare savings Cost Savings✓ CONVERSION $
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Financial Results Grant Fitz Executive Vice President and Chief Financial Officer
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Q1 Financial Performance 11 ▪ Net sales growth in Industrial and Infrastructure, partially offset by lower Food & Beverage on cyclical seed box demand and lingering Automotive Aftermarket softness ▪ Higher gross margin from Signature acquisition contribution and favorable product mix ▪ Slightly lower SG&A due to cost savings across all businesses; will begin to see further improvement from ‘Focused Transformation’ in Q2 ▪ EPS grew on higher operating income partially offset by higher net interest expense (In $ millions except EPS) Q1 2025 Q1 2024 % Change Net Sales $206.8 $207.1 -0.2% Adj. Gross Profit $69.2 $67.6 2.3% Adj. Gross Margin 33.5% 32.7% +80 bps Adj. Op Income $18.7 $16.6 12.2% Adj. Op Income Margin 9.0% 8.0% +100 bps Adj. EBITDA $28.6 $25.1 13.7% Adj. EBITDA Margin 13.8% 12.1% +170 bps Diluted Adjusted EPS $0.22 $0.21 4.8% See Appendix for non-GAAP reconciliations. End MarketSegment Material Handling 76% Distribution 24% Industrial 30% Infrastructure 13% Vehicle 13% Consumer 10% Food & Beverage 10% Automotive Aftermarket 24%
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Q1 Segment Results 12 (In $ millions) Q1 2025 Q1 2024 % Change Net Sales $157.7 $152.2 3.6% Adj. Op Income $27.5 $25.0 9.9% Adj. Op Income Margin 17.4% 16.4% +100 bps Adj. EBITDA $36.3 $32.5 11.7% Adj. EBITDA Margin 23.0% 21.4% +160 bps Material Handling ▪ Net sales increased from Signature acquisition contribution and higher Industrial sales, mostly military applications, partially offset by cyclical declines in Seed boxes within Food & Beverage ▪ Scepter sales exceeded prior year by 30% ▪ Adj. EBITDA and Operating Income increase driven by favorable material and manufacturing costs, partially offset by lower pricing Distribution (In $ millions) Q1 2025 Q1 2024 % Change Net Sales $49.2 $54.9 (10.3)% Adj. Op Income ($0.4) $0.6 NM Adj. Op Income Margin (0.8)% 1.1% -190 bps Adj. EBITDA $0.5 $1.4 (67.1)% Adj. EBITDA Margin 0.9% 2.5% -160 bps ▪ Net sales down due to lower volume and pricing ▪ Adj. EBITDA and Operating Income decreased due to lower pricing and volume, partially offset by favorable SG&A See Appendix for non-GAAP reconciliations.
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Balance Sheet and Cash Flow ▪ Generated free cash flow of $2.0M in Q1; capex was slightly below 4% of sales ▪ Working capital increased due to accounts receivable timing and inventory build as we took proactive action before tariff details were announced ▪ Debt increased 2.2% during the quarter; net leverage increased to 2.8x ▪ Cash balance of $35.3M at quarter-end; combined with $231.7M of availability under the revolver, provides ample liquidity to support capital allocation priorities 13 Net Debt ($M) and Net Leverage Ratio1 Cash Flow, Capex and FCF as % of Sales Working Capital as a % of TTM Sales $394.5 $368.2 $373.1 Q1 2024 Q4 2024 Q1 2025 $20.3 $10.1 $14.6 $2.0 $5.7 $8.1 Q1 2024 Q1 2025 Operating Cash Flow Free Cash Flow Capex 1.0% 7.0% 4.9%9.8% 3.9% 2.8% 11.3% 11.5% 14.4% 12.8% 14.1% Q1 2024 Q4 2024 Q1 2025 Without Signature With Signature See Appendix for non-GAAP reconciliations. 1 As defined per the credit agreement, Myers Net Leverage Ratio is calculated as Total Debt, less certain cash divided by Compliance Adj. EBITDA per the credit agreement. 2.7x 2.8x2.6x
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Leveraging Cashflow Generation Capital Allocation Priorities ▪ Repurchased $1M in shares as we invest in MYE with $10M share buyback program ▪ Maintain strong balance sheet with ample liquidity via cash on hand and revolving credit facility ▪ Capex spend to remain around 3% of revenue ▪ Continue to focus on debt repayment to return to a net leverage ratio goal of 1.5x to 2.5x ▪ Dividends to continue with existing practice ▪ Continue to evaluate strategic M&A opportunities focusing on building high-growth brands Maintaining a Disciplined Capital Allocation Approach 14
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2025 Outlook Dan Hoehn Vice President and Corporate Controller, Interim Chief Financial Officer Need photo for Dan
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Improving Performance Through ‘Focused Transformation’ Updating 2025 Outlook Continue to see risks and opportunities for the business for both revenue and margin Expect tariffs to have limited near-term impact; overall macroeconomic impact uncertain; continue to monitor end market conditions for impacts from tariffs or other factors that may influence demand trends Right-size the organization and achieve $20M annualized cost savings, primarily SG&A, by year-end 16 End Markets and Key Product 2025 Outlook Industrial (30% of Sales) Akro-Mils® , Buckhorn® & Jamco® containers, organizational bins, totes, carts and cabinets; Scepter® military ammunition containers; OEM parts for general industrial equipment Moderate growth Infrastructure (13% of Sales) Signature Systems ground protection matting for construction, industrial sites, and event venues Strong growth Vehicle (13% of Sales) RV, marine, and automotive components Down (was “Stable to down”) Consumer (11% of Sales) Scepter® fuel cans; outdoor furniture and equipment Stable, affected by hurricane responses Food & Beverage (8% of Sales) Buckhorn® seed boxes, intermediate bulk containers, and Tuff Series bulk containers for agricultural and chemical markets Stable Automotive Aftermarket Distribution (25% of Sales) Distribution sales to tire service aftermarket Slightly down
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CEO Summary Comments Aaron Schapper President and Chief Executive Officer
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Appendix
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Reconciliation of Non-GAAP Financial Measures 19 Quarter Ended March 31, 2025 Material Handling Distribution Segment Total Corporate & Other Total Net sales $ 157,672 $ 49,246 $ 206,918 $ (168) $ 206,750 Net income 6,805 Net income margin 3.3% Gross profit 69,078 Add: Restructuring expenses and other adjustments 108 Adjusted gross profit 69,186 Gross margin as adjusted 33.5% Operating income (loss) 27,381 (1,181) 26,200 (9,550) 16,650 Operating income margin 17.4% -2.4% 12.7% n/a 8.1% Add: Restructuring expenses and other adjustments 108 811 919 1,109 2,028 Adjusted operating income (loss)(1) 27,489 (370) 27,119 (8,441) 18,678 Adjusted operating income margin 17.4% -0.8% 13.1% n/a 9.0% Add: Depreciation and amortization 8,846 824 9,670 225 9,895 Adjusted EBITDA $ 36,335 $ 454 $ 36,789 $ (8,216) $ 28,573 Adjusted EBITDA margin 23.0% 0.9% 17.8% n/a 13.8% (1) Includes gross profit adjustments of $108 and SG&A adjustments of $1,920 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands)
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Reconciliation of Non-GAAP Financial Measures 20 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Material Handling Distribution Segment Total Corporate & Other Total Net sales 152,225$ 54,894$ 207,119$ (17)$ 207,102$ Net income 3,503 Net income margin 1.7% Gross profit 64,269 Add: Restructuring expenses and other adjustments 241 Add: Acquisition-related inventory step-up 3,115 Adjusted gross profit 67,625 Gross margin as adjusted 32.7% Operating income (loss) 22,256 605 22,861 (11,982) 10,879 Operating income margin 14.6% 1.1% 11.0% n/a 5.3% Add: Restructuring expenses and other adjustments 241 — 241 — 241 Add: Acquisition and integration costs 98 — 98 3,312 3,410 Add: Acquisition-related inventory step-up 3,115 — 3,115 — 3,115 Less: Insurance recovery of legal fees (702) — (702) — (702) Less: Environmental reserves, net (2) — — — (300) (300) Adjusted operating income (loss) (1) 25,008 605 25,613 (8,970) 16,643 Adjusted operating income margin 16.4% 1.1% 12.4% n/a 8.0% Add: Depreciation and amortization 7,525 773 8,298 199 8,497 Adjusted EBITDA 32,533$ 1,378$ 33,911$ (8,771)$ 25,140$ Adjusted EBITDA margin 21.4% 2.5% 16.4% n/a 12.1% (2) Includes environmental charges of $0 net of probable insurance recoveries of $300 (1) Includes gross profit adjustments of $3,356 and SG&A adjustments of $2,408 Quarter Ended March 31, 2024
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Reconciliation of Non-GAAP Financial Measures 21 Quarter Ended March31, 2025 2024 Adjusted operating income (loss) reconciliation: Operating income (loss) $ 16,650 $ 10,879 Restructuring expenses and other adjustments 2,028 241 Acquisition and integration costs — 3,410 Acquisition-related inventory step-up — 3,115 Insurance recovery of legal fees — (702) Environmental reserves, net — (300) Adjusted operating income (loss) $ 18,678 $ 16,643 Adjusted EBITDA reconciliation: Net income (loss) $ 6,805 $ 3,503 Income tax expense (benefit) 2,459 1,297 Interest expense, net 7,386 6,079 Operating income (loss) 16,650 10,879 Depreciation and amortization 9,895 8,497 Restructuring expenses and other adjustments 2,028 241 Acquisition and integration costs — 3,410 Acquisition-related inventory step-up — 3,115 Insurance recovery of legal fees — (702) Environmental reserves, net — (300) Adjusted EBITDA $ 28,573 $ 25,140 Free cash flow reconciliation: Net cash provided by (used for) operating activities $ 10,131 $ 20,270 Capital expenditures (8,083) (5,707) Free cash flow $ 2,048 $ 14,563 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED) (Dollars in thousands)
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Reconciliation of Non-GAAP Financial Measures 22 Quarter Ended March 31, 2025 2024 Adjusted net income (loss) reconciliation: Net income (loss) $ 6,805 $ 3,503 Income tax expense (benefit) 2,459 1,297 Income (loss) before income taxes 9,264 4,800 Restructuring expenses and other adjustments 2,028 241 Acquisition and integration costs — 3,410 Acquisition-related inventory step-up — 3,115 Insurance recovery of legal fees — (702) Environmental reserves, net — (300) Adjusted income (loss) before income taxes 11,292 10,564 Income tax expense, as adjusted (1) (2,936) (2,641) Adjusted net income (loss) $ 8,356 $ 7,923 Adjusted earnings per diluted share reconciliation: Net income (loss) per common diluted share $ 0.18 $ 0.09 Restructuring expenses and other adjustments 0.05 0.01 Acquisition and integration costs — 0.09 Acquisition-related inventory step-up — 0.08 Insurance recovery of legal fees — (0.02) Environmental reserves, net — (0.01) Adjusted effective income tax rate impact (0.01) (0.03) Adjusted earnings per diluted share(2) $ 0.22 $ 0.21 Items in this table may not recalculate due to rounding (1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2025 is 26% and in 20 24 is 25%. (2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period. MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data)
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Reconciliation of Non-GAAP Financial Measures 23 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net sales $ 208,453 $ 197,798 $ 191,077 $ 207,102 $ 220,236 $ 205,067 $ 203,876 $ 206,750 TTM net sales $ 804,430 $ 816,213 $ 823,482 $ 836,281 $ 835,929 Working capital: Add: Accounts receivable, net $ 139,249 $ 138,825 $ 131,218 $ 122,026 $ 142,510 Add: Inventories 105,035 105,796 105,103 97,001 103,785 Add: Prepaid expenses and other current assets 6,683 13,577 9,215 8,058 7,543 Less: Accounts payable (81,494) (93,097) (79,279) (71,049) (84,890) Less: Accrued expenses (53,813) (44,137) (47,392) (49,196) (50,697) Total working capital $ 115,660 $ 120,964 $ 118,865 $ 106,840 $ 118,251 Working capital as a % of TTM net sales 14.4% 14.8% 14.4% 12.8% 14.1% Note: Signature was acquired in February 2024 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES WORKING CAPITAL (UNAUDITED) (Dollars in thousands)
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Reconciliation of Non-GAAP Financial Measures 24 MYERS INDUSTRIES, INC. FIVE QUARTER COMPARATIVE CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) (UNAUDITED) Quarter Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Net sales $ 206,750 $ 203,876 $ 205,067 $ 220,236 $ 207,102 Cost of sales 137,672 137,987 139,937 144,719 142,833 Gross profit 69,078 65,889 65,130 75,517 64,269 Selling, general and administrative expenses 44,755 44,281 38,486 44,148 47,113 Depreciation and amortization 4,458 4,462 4,868 4,826 3,921 Freight out 2,812 2,561 4,332 2,687 2,423 (Gain) loss on disposal of fixed assets 403 (52) 192 128 (67) Impairment charges — — 22,016 — — Operating income (loss) 16,650 14,637 (4,764) 23,728 10,879 Interest expense, net 7,386 7,761 8,091 9,006 6,079 Income (loss) before income taxes 9,264 6,876 (12,855) 14,722 4,800 Income tax expense (benefit) 2,459 2,579 (1,977) 4,443 1,297 Net income (loss) $ 6,805 $ 4,297 $ (10,878) $ 10,279 $ 3,503 Net income (loss) per common share: Basic $ 0.18 $ 0.12 $ (0.29) $ 0.28 $ 0.09 Diluted $ 0.18 $ 0.11 $ (0.29) $ 0.28 $ 0.09 Weighted average common shares outstanding: Basic 37,298,967 37,255,837 37,220,456 37,179,658 36,908,169 Diluted 37,414,010 37,444,040 37,220,456 37,312,394 37,123,019
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Meghan Beringer Senior Director Investor Relations Myers Industries, Inc. | 1293 S. Main Street, Akron, Ohio 44301 Tel: (252) 536-5641 | Email: mberinger@myersind.com www.myersind.com