Myers Industries, Inc.

Hello, good morning, and welcome to the Myers Industries 2021 Third Quarter Earnings Call. My name is Gemma, and I'll be the operator today. If you'd like to ask a question during the presentation, please press star followed by one in your telephone keypad. And if you change your mind, please press star followed by two. I'll now hand you over to our host, Monica Vinay. Please go ahead, Monica. Thank you.

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 third 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. It's 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 third quarter 2021 earnings call. We continued our growth trajectory during the quarter. We made further progress on our long-term strategy, despite a difficult macro environment that's impacting many businesses around the world. I'd like to thank the Myers team for their commitment and dedication that made our success this quarter possible. With that said, please turn to slide three for an overview of our third quarter results. During the quarter, we saw continued strong demand from our material handling and distribution customers. This demand, combined with meaningful contributions from our recent acquisitions, drove the company to $200 million in net sales and more than 50% revenue growth for a second consecutive quarter. The company's top line was the strongest it has been in many years. On an organic basis, sales grew 20% compared to the prior year period, which marks three consecutive quarters of 20% or more organic growth. We are beginning to see the benefits of our investments in our sales force, in sales training, and an improved commercial focus across the company. While our top line performance was strong, we did see macroeconomic headwinds again this quarter, which impacted our margins. climbed higher due to increasing raw material costs, and tightness in the labor market impacted labor costs. Both of these drove margin compression during the period. The negative impacts of labor were due to overtime pay, higher wages, and in some cases, a lack of labor, which inhibited us from making or shipping certain orders. While we believe inflationary labor and supply chain headwinds will likely persist for the next several quarters, we are taking numerous actions to mitigate possible impacts on our business. These proactive steps include improvements in our sales and operations planning process, a reinvigorated sales force, and the addition of a pricing excellence leader and team. We're also working hard to bottleneck and automate our plans while we continue to secure the raw materials necessary to ensure that we meet the volume needs of our customers. We remain confident in our ability to manage price, volume, and cost And as such, we are reaffirming our previous 2021 adjusted EPS guidance of $0.90 to $1.05 per share. Before I turn it over to Sonal, I want to share a few comments on the state of Meyers' transformation. Meyers' demonstrated growth is meaningful. Our company is becoming a growth story. A new Meyers is here. We're pleased with the growth to date, and we expect this new growth mindset to be a sustained theme and focus at Meyers Industries. In the short term, however, we continue to see an inflationary environment that is compounded by labor shortages and supply chain issues. To manage through it, we made a few near-term supply-oriented decisions that consumed cash in the third quarter. These decisions were made to ensure we continue our high service level to our customers, and we expect cash flow trends to normalize in the fourth quarter. I'm thankful for the hard work of the Meyers team in the third quarter, and I remain passionate about Meyers and its opportunity to create significant value and provide meaningful benefit to all of our stakeholder groups, our customers, our employees, our communities, and our shareholders. With that, I'd now like to turn the call over to Sonal Robinson, our Chief Financial Officer, to provide details on our financial results and guidance. Sonal?