10-Q 1 mye-20220331.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

 

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

For the quarterly period ended March 31, 2022

OR

 

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

For the transition period from to

Commission File Number 001-08524

Myers Industries, Inc.

(Exact name of registrant as specified in its charter)

 

Ohio

34-0778636

(State or other jurisdiction of

(IRS Employer Identification

incorporation or organization)

Number)

 

 

1293 South Main Street

 

Akron, Ohio

44301

(Address of principal executive offices)

(Zip code)

 

(330) 253-5592

(Registrant’s telephone number, including area code)

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

Title of Each Class

 

Trading Symbol

 

Name of Exchange on Which Registered

Common Stock, without par value

 

MYE

 

New York Stock Exchange

 

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

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

 

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

 

Large accelerated filer

Accelerated filer

Non-Accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

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

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

 

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

 

 


 

TABLE OF CONTENTS

 

Part I — Financial Information

1

 

 

Item 1. Financial Statements

1

 

 

Condensed Consolidated Statements of Operations (Unaudited)

1

 

 

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

2

 

 

Condensed Consolidated Statements of Financial Position (Unaudited)

3

 

 

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

4

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

5

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

 

 

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

18

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

22

 

 

Item 4. Controls and Procedures

22

 

 

Part II — Other Information

23

 

 

Item 1. Legal Proceedings

23

 

 

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

23

 

 

Item 6. Exhibits

24

 

 

Signature

25

 

 

Exhibit 31.1

 

Exhibit 31.2

 

Exhibit 32.1

 

Exhibit 101

 

 

 

 

 


 

Part I — Financial Information

Item 1. Financial Statements

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

 

 

 

For the Quarter Ended March 31,

 

 

 

2022

 

 

2021

 

Net sales

 

$

225,486

 

 

$

174,429

 

Cost of sales

 

 

153,558

 

 

 

124,016

 

Gross profit

 

 

71,928

 

 

 

50,413

 

Selling, general and administrative expenses

 

 

47,990

 

 

 

39,548

 

Gain on disposal of fixed assets

 

 

(467

)

 

 

 

Operating income

 

 

24,405

 

 

 

10,865

 

Interest expense, net

 

 

1,147

 

 

 

995

 

Income before income taxes

 

 

23,258

 

 

 

9,870

 

Income tax expense

 

 

5,921

 

 

 

2,565

 

Net income

 

$

17,337

 

 

$

7,305

 

Net income per common share:

 

 

 

 

 

 

Basic

 

$

0.48

 

 

$

0.20

 

Diluted

 

$

0.47

 

 

$

0.20

 

 

See notes to unaudited condensed consolidated financial statements.

 

1


 

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

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

(Dollars in thousands)

 

 

 

For the Quarter Ended March 31,

 

 

 

2022

 

 

2021

 

Net income

 

$

17,337

 

 

$

7,305

 

Other comprehensive income (loss):

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

570

 

 

 

411

 

Total other comprehensive income

 

 

570

 

 

 

411

 

Comprehensive income

 

$

17,907

 

 

$

7,716

 

 

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,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

17,576

 

 

$

17,655

 

Accounts receivable, less allowances of $2,998 and $3,229, respectively

 

 

132,689

 

 

 

100,691

 

Income tax receivable

 

 

 

 

 

2,517

 

Inventories, net

 

 

99,652

 

 

 

93,551

 

Prepaid expenses and other current assets

 

 

4,889

 

 

 

5,500

 

Total Current Assets

 

 

254,806

 

 

 

219,914

 

Property, plant, and equipment, net

 

 

92,204

 

 

 

92,049

 

Right of use asset - operating leases

 

 

27,870

 

 

 

29,285

 

Goodwill

 

 

88,951

 

 

 

88,778

 

Intangible assets, net

 

 

48,756

 

 

 

50,181

 

Deferred income taxes

 

 

106

 

 

 

106

 

Other

 

 

4,552

 

 

 

4,236

 

Total Assets

 

$

517,245

 

 

$

484,549

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

101,276

 

 

$

81,690

 

Accrued employee compensation

 

 

17,370

 

 

 

21,616

 

Income taxes payable

 

 

1,725

 

 

 

 

Accrued taxes payable, other than income taxes

 

 

2,418

 

 

 

2,759

 

Accrued interest

 

 

455

 

 

 

966

 

Other current liabilities

 

 

20,031

 

 

 

19,628

 

Operating lease liability - short-term

 

 

5,236

 

 

 

5,341

 

Finance lease liability - short-term

 

 

504

 

 

 

500

 

Total Current Liabilities

 

 

149,015

 

 

 

132,500

 

Long-term debt

 

 

92,450

 

 

 

90,945

 

Operating lease liability - long-term

 

 

22,548

 

 

 

23,815

 

Finance lease liability - long-term

 

 

9,308

 

 

 

9,437

 

Other liabilities

 

 

13,967

 

 

 

13,086

 

Deferred income taxes

 

 

5,819

 

 

 

5,441

 

Total Liabilities

 

 

293,107

 

 

 

275,224

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)

 

 

 

 

 

 

Common Shares, without par value (authorized 60,000,000 shares;
   outstanding
36,329,922 and 36,262,259; net of treasury shares
   of
6,222,535 and 6,290,198, respectively)

 

 

22,225

 

 

 

22,172

 

Additional paid-in capital

 

 

308,521

 

 

 

306,720

 

Accumulated other comprehensive loss

 

 

(14,831

)

 

 

(15,401

)

Retained deficit

 

 

(91,777

)

 

 

(104,166

)

Total Shareholders’ Equity

 

 

224,138

 

 

 

209,325

 

Total Liabilities and Shareholders’ Equity

 

$

517,245

 

 

$

484,549

 

 

See notes to unaudited condensed consolidated financial statements.

 

 

3


 

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(Dollars in thousands, except per share data)

 

 

 

Quarter Ended March 31, 2022

 

 

 

Common Shares

 

 

Additional
Paid-In Capital

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Retained
Deficit

 

 

Total
Shareholders'
Equity

 

Balance at January 1, 2022

 

$

22,172

 

 

$

306,720

 

 

$

(15,401

)

 

$

(104,166

)

 

$

209,325

 

Net income

 

 

 

 

 

 

 

 

 

 

 

17,337

 

 

 

17,337

 

Foreign currency translation
   adjustment

 

 

 

 

 

 

 

 

570

 

 

 

 

 

 

570

 

Shares issued under incentive plans,
   net of shares withheld for tax

 

 

53

 

 

 

74

 

 

 

 

 

 

 

 

 

127

 

Stock compensation expense

 

 

 

 

 

1,727

 

 

 

 

 

 

 

 

 

1,727

 

Declared dividends - $0.135 per share

 

 

 

 

 

 

 

 

 

 

 

(4,948

)

 

 

(4,948

)

Balance at March 31, 2022

 

$

22,225

 

 

$

308,521

 

 

$

(14,831

)

 

$

(91,777

)

 

$

224,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31, 2021

 

 

 

Common Shares

 

 

Additional
Paid-In Capital

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Retained
Deficit

 

 

Total
Shareholders'
Equity

 

Balance at January 1, 2021

 

$

21,939

 

 

$

300,852

 

 

$

(15,773

)

 

$

(117,918

)

 

$

189,100

 

Net income

 

 

 

 

 

 

 

 

 

 

 

7,305

 

 

 

7,305

 

Foreign currency translation
   adjustment

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

411

 

Shares issued under incentive plans,
   net of shares withheld for tax

 

 

115

 

 

 

1,122

 

 

 

 

 

 

 

 

 

1,237

 

Stock compensation expense

 

 

 

 

 

1,153

 

 

 

 

 

 

 

 

 

1,153

 

Declared dividends - $0.135 per share

 

 

 

 

 

 

 

 

 

 

 

(4,953

)

 

 

(4,953

)

Balance at March 31, 2021

 

$

22,054

 

 

$

303,127

 

 

$

(15,362

)

 

$

(115,566

)

 

$

194,253

 

 

See notes to unaudited condensed consolidated financial statements.

4


 

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

 

 

 

For the Quarter Ended March 31,

 

 

 

2022

 

 

2021

 

Cash Flows From Operating Activities

 

 

 

 

 

 

Net income

 

$

17,337

 

 

$

7,305

 

Adjustments to reconcile net income to net cash provided by (used for) operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

5,321

 

 

 

5,261

 

Non-cash stock-based compensation expense

 

 

1,727

 

 

 

1,153

 

Gain on disposal of fixed assets

 

 

(467

)

 

 

 

Other

 

 

521

 

 

 

(1,280

)

Cash flows provided by (used for) working capital

 

 

 

 

 

 

Accounts receivable

 

 

(31,894

)

 

 

(10,901

)

Inventories

 

 

(5,980

)

 

 

(3,861

)

Prepaid expenses and other current assets

 

 

614

 

 

 

(4,854

)

Accounts payable and accrued expenses

 

 

20,113

 

 

 

13,765

 

Net cash provided by (used for) operating activities

 

 

7,292

 

 

 

6,588

 

Cash Flows From Investing Activities

 

 

 

 

 

 

Capital expenditures

 

 

(5,060

)

 

 

(5,238

)

Acquisition of business

 

 

 

 

 

(1,223

)

Proceeds from sale of property, plant and equipment

 

 

1,076

 

 

 

 

Net cash provided by (used for) investing activities

 

 

(3,984

)

 

 

(6,461

)

Cash Flows From Financing Activities

 

 

 

 

 

 

Net borrowings from revolving credit facility

 

 

1,500

 

 

 

33,000

 

Repayments of long-term debt

 

 

 

 

 

(40,000

)

Payments on finance lease

 

 

(124

)

 

 

(40

)

Cash dividends paid

 

 

(4,939

)

 

 

(4,906

)

Proceeds from issuance of common stock

 

 

471

 

 

 

1,900

 

Shares withheld for employee taxes on equity awards

 

 

(344

)

 

 

(663

)

Deferred financing fees

 

 

 

 

 

(1,095

)

Net cash provided by (used for) financing activities

 

 

(3,436

)

 

 

(11,804

)

Foreign exchange rate effect on cash

 

 

49

 

 

 

42

 

Net decrease in cash

 

 

(79

)

 

 

(11,635

)

Cash at January 1

 

 

17,655

 

 

 

28,301

 

Cash at March 31

 

$

17,576

 

 

$

16,666

 

 

See notes to unaudited condensed consolidated financial statements.

 

5


 

MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(Dollars in thousands, except where otherwise indicated)

 

1. Summary of Significant Accounting Policies

Basis of Presentation

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

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

Accounting Standards Not Yet Adopted

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

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:

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

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

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

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

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

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

6


MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

 

 

Accumulated Other Comprehensive Income (Loss)

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

 

 

 

Foreign
Currency

 

 

Defined Benefit
Pension Plans

 

 

Total

 

Balance at January 1, 2022

 

$

(13,935

)

 

$

(1,466

)

 

$

(15,401

)

Other comprehensive income (loss) before reclassifications

 

 

570

 

 

 

 

 

 

570

 

Net current-period other comprehensive income (loss)

 

 

570

 

 

 

 

 

 

570

 

Balance at March 31, 2022

 

$

(13,365

)

 

$

(1,466

)

 

$

(14,831

)

 

 

 

Foreign
Currency

 

 

Defined Benefit
Pension Plans

 

 

Total

 

Balance at January 1, 2021

 

$

(13,974

)

 

$

(1,799

)

 

$

(15,773

)

Other comprehensive income (loss) before reclassifications

 

 

411

 

 

 

 

 

 

411

 

Net current-period other comprehensive income (loss)

 

 

411

 

 

 

 

 

 

411

 

Balance at March 31, 2021

 

$

(13,563

)

 

$

(1,799

)

 

$

(15,362

)

 

Allowance for Credit Losses

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected.

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

 

 

 

2022

 

 

2021

 

Balance at January 1

 

$

2,173

 

 

$

2,335

 

Provision for expected credit loss, net of recoveries

 

 

31

 

 

 

58

 

Write-offs and other

 

 

(268

)

 

 

(132

)

Balance at March 31

 

$

1,936

 

 

$

2,261

 

 

2. Revenue Recognition

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

 

 

 

For the Quarter Ended March 31, 2022

 

 

 

Material
Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

31,924

 

 

$

 

 

$

 

 

$

31,924

 

Vehicle

 

 

47,777

 

 

 

 

 

 

 

 

 

47,777

 

Food and beverage

 

 

34,680

 

 

 

 

 

 

 

 

 

34,680

 

Industrial

 

 

62,255

 

 

 

 

 

 

(11

)

 

 

62,244

 

Auto aftermarket

 

 

 

 

 

48,861

 

 

 

 

 

 

48,861

 

Total net sales

 

$

176,636

 

 

$

48,861

 

 

$

(11

)

 

$

225,486

 

 

7


MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

 

 

 

 

For the Quarter Ended March 31, 2021

 

 

 

Material
Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

25,395

 

 

$

 

 

$

 

 

$

25,395

 

Vehicle

 

 

42,192

 

 

 

 

 

 

 

 

 

42,192

 

Food and beverage

 

 

21,417

 

 

 

 

 

 

 

 

 

21,417

 

Industrial

 

 

40,889

 

 

 

 

 

 

(14

)

 

 

40,875

 

Auto aftermarket

 

 

 

 

 

44,550

 

 

 

 

 

 

44,550

 

Total net sales

 

$

129,893

 

 

$

44,550

 

 

$

(14

)

 

$

174,429

 

 

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

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

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

 

 

 

March 31,

 

 

December 31,

 

 

Statement of Financial
Position

 

 

2022

 

 

2021

 

 

Classification

Returns, discounts and other allowances

 

$

(1,062

)

 

$

(1,056

)

 

Accounts receivable

Right of return asset

 

$

372

 

 

$

361

 

 

Inventories, net

Customer deposits

 

$

(2,081

)

 

$

(1,816

)

 

Other current liabilities

Accrued rebates

 

$

(2,910

)

 

$

(3,378

)

 

Other current liabilities

 

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.2 million and $2.5 million for the quarters ended March 31, 2022 and 2021, respectively, and in Cost of Sales were approximately $1.6 million for each of the quarters ended March 31, 2022 and 2021.

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

3. Acquisitions

Trilogy Plastics

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and assemblies, which is included in the Materials Handling Segment. The Trilogy acquisition aligns with the Company’s long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $34.5 million, including a working capital adjustment of $0.3 million that was paid in November 2021. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 11.

8


MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements – (Continued)

(Dollars in thousands, except where otherwise indicated)

 

 

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

 

Assets acq