Myers Industries, Inc.

Good morning or good afternoon all and welcome to the Myers Industries 2021 second quarter earnings call. My name is Adam and I'll be your operator today. If you'd like to ask a question during the Q&A portion of today's call, you may do so by pressing star followed by one on your telephone keypad. I would now hand you over to Monica Vinay to begin. So Monica, please go ahead when you are ready.

Thank you. Good morning. Thank you for joining us. I'm Monica Vinay, Vice President of Investor Relations and Treasurer at Meyers Industries. Joining me today are Mike McGaugh, President and Chief Executive Officer, and Sonal Robinson, Executive Vice President and Chief Financial Officer. Earlier this morning, we issued a news release outlining the financial results for the second quarter of 2021. If you've not yet received a copy of the release, you can access it on our website at www.myersindustries.com under the Investor Relations tab. This call is also being webcast on our website and will be archived along with the transcript of the call shortly after this event. Before I turn the call over to Mike, I would like to remind you that we may make some forward-looking statements during this call. These comments are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and involve risks, uncertainties, and other factors, which may cause results to differ materially from those expressed or implied in these statements. Further information concerning these risks, uncertainties, and other factors is set forth in the company's periodic SEC filings and may be found in the company's 10-K and 10-Q filings. I am now pleased to turn the call over to Mike McGaugh.

Thank you, Monica. Good morning everyone and welcome to our second quarter 2021 earnings call. I'm pleased to share that we had another quarter of strong sales growth and continue to make good progress in advancing our long term vision. I would like to thank all of our Myers teammates for navigating what's proven to be an uncertain in the dynamic environment and for remaining laser focused on meeting the needs of our customers, reliably delivering our products and living our values every day. The second quarter was defined by continued recovery across our key end markets and strong operational execution in a challenging environment. On top of that, earlier this week, we announced the acquisition of Trilogy Plastics, which marks our second acquisition in the last nine months, and another proof point in the execution of Horizon One of our long-term strategy. acquisition of trilogy continues to grow our rotational molding platform and we've included a slide in the appendix of our slide deck today with more background for you i'll revisit trilogy and provide some additional updates on our strategy and my closing remarks but for now please turn to slide three for an overview of our second quarter results continue strong demand across our material handling and distribution segments drove a 58 year-over-year growth in sales and we delivered a second consecutive quarter of year-over-year revenue growth in excess of 20% on an organic basis, with all in-market supplying solid growth. Demand from our customers is strong and looks to continue. We have a leading market share of high-quality, well-regarded products, and we've seen that the demand for these products is durable and lasting, even in a pandemic. I'm pleased with our niche market focus and approach. It provides us a solid foundation on which to build and grow Meyers. Despite our exciting long-term vision, however, we've had some short-term headwinds, increasing raw material prices and other inflationary pressures continued throughout this quarter, and in some cases were more than we anticipated. While we expect them to be temporary in nature, the short-term raw material issues around supply and cost escalation have been unprecedented. We've taken swift action, announcing and implementing price increases in March and April, and again in July, Unfortunately, our finished good prices were not able to keep up with the pace of cost increases, and we experienced margin compression during the quarter. As we've said before, we're committed to restoring and expanding our margins across the enterprise. This is one of the key objectives of the self-help component of Horizon One. Like many companies, we're also seeing tightness in the labor market, and while we're working to mitigate the impact, labor cost increases and scarcity have been a headwind in 2021 that will likely persist in the near term. Over the coming months, we'll remain diligent in monitoring and adjusting our actions to mitigate the impact of inflation. We're working to ensure we strike a fair, long-term mindset with our customers, doing our best to ensure they have supply while ensuring our products are priced appropriately for the value they provide. Our self-help efforts are delivering results and we're headed in the right direction, strategically and operationally. We are transforming Meyers and are successfully executing against our long-term vision and strategy. I would now like to turn the call over to Sana Robinson, our Chief Financial Officer, to provide details on our financial results and guidance. Sana?