Myers Industries, Inc.

and treasurer at Myers Industries. Joining me today is Mike McGaugh, our president and chief executive officer. Earlier this morning, we issued a press release outlining the financial results for the third quarter of 2022. We have also posted a PowerPoint presentation to accompany today's prepared remarks. If you've not yet received a copy of either the release or the presentation, you can access them on our website at www.myersindustries.com. They are under the investor relations tab. This call is also being webcasted on our website and will be archived along with the transcript of the call shortly after this event. Please turn to slide two of the presentation for our safe harbor disclosures. 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. Also, please be advised that certain non-GAAP financial measures such as adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted EPS may be discussed on this call. 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 filing. Now, please turn to slide three of our presentation. I'm pleased to turn the call over to Mike McGaugh.

Thank you, Monica. Good morning, everyone, and welcome to our third quarter of 2022 earnings call. I'm excited to report a third consecutive quarter of record top and bottom line results. These results were driven by strong revenue growth, continued year-over-year margin expansion, and consistent progress against our three horizon strategy. We saw healthy momentum across the majority of our businesses. We continue to execute and deliver on our self-help initiatives, and we continue to realize the benefit from pricing actions taken by our commercial teams over the past two years. The quarter's results serve as another proof point that our strategy is working and that our businesses are resilient in the face of a challenging macro environment. In the third quarter, our net sales increased 14% compared to the year-ago period, which represents the eighth consecutive quarter of double-digit expansion. On an organic basis, excluding the incremental $19.4 million of net sales from the Trilogy and Mohawk rubber acquisitions, our revenue grew 4%. Increased sales in our agriculture, auto aftermarket, and industrial end markets continue to more than offset the impact of weaker demand in the consumer and recreational vehicle end markets. We also continue to meaningfully expand our profitability as our adjusted earnings per share increased by 78% or 18 cents per share compared to the year-ago period. Additionally, our adjusted EBITDA increased by 57% or nearly $10 million to the year-ago period. This bottom line performance represents our third consecutive quarterly record, and I'm especially proud that the Myers team was able to accomplish this in the midst of a challenging macroeconomic backdrop. As a result of our strong performance year to date, we are raising our earnings guidance for the full year, which Monica will review in greater detail momentarily. Please turn to slide four, where we have a more detailed outline of the quarter's results. As I mentioned, we experienced another quarter of strong revenue growth, driven by sales increases across both of our operating segments, with net sales for the company of $228.1 million up 14% compared to the third quarter of 2021. Dropping down the EBITDA margin, our goal is a simple one, to expand margin by driving a wedge between cost and price. And we're making good progress against this goal. By driving excellence in purchasing and deploying the tactics I've discussed over the past two and a half years, we're making meaningful progress on managing our raw material costs. On the other side of the equation, By executing on the commercial excellence and pricing excellence initiatives I've discussed on these past calls, we're moving our prices up. We're having success with our value-based pricing initiatives. We're now pricing our products to reflect the value and the high levels of service they bring to our customers and distributors. The success we are having in expanding the gap between price and cost was demonstrated by the 430 basis point margin improvement versus the same period last year. Our results are exciting. Now, for more details, I'll turn the call over to Monica to speak to our financial performance for the quarter and walk through our guidance. Monica?

Thank you, Mike. As Mike mentioned on slide four, our net sales were up $28 million, or 14%, compared to the third quarter of 2021, driven by strong sales in both the material handling and distribution segments. Excluding our recent acquisitions, organic net sales increased 4%. Adjusted gross profit increased $17.5 million, or 32%, primarily driven by pricing actions and incremental contributions from the Mohawk rubber and Trilogy acquisitions, and partially offset by a change in sales mix and lower volume. Adjusted gross margin increased by 430 basis points to 31.5%, compared to 27.2% in the third quarter of 2021. Adjusted operating income increased $9.5 million, or nearly 76%, compared to the prior year, driven by the higher gross profit, partially offset by higher SG&A expenses. SG&A expenses increased due to cost inflation, the Mohawk rubber and Trilogy plastics acquisitions, and higher salaries, incentive compensation costs, and variable selling expenses. As a result, adjusted SG&A as a percentage of sales increased to 21.9% compared with 21% in the same period last year. Adjusted EBITDA was $27.2 million, an increase of nearly $10 million, or 57%, compared to the prior year. Adjusted EBITDA margin expanded 330 basis points to 11.9% for the third quarter, compared with 8.6% in the same period last year. Lastly, adjusted EPS was 41 cents, an increase of 18 cents or 78%. Please turn to slide five for an overview of our segment performance for the quarter. For the material handling segment, net sales increased $6 million or 4% compared to the prior year. Excluding the incremental $2.9 million of sales from the Trilogy Plastics acquisition, organic net sales increased 2%. Organic net sales increases in the agriculture and industrial end markets were partly offset by a decline in sales in the consumer and recreational vehicle end markets. Adjusted operating income increased $9 million, or 59%, to $24 million, driven by ongoing benefits from strategic pricing actions and operations excellence initiatives. These were partially offset by a change in sales mix, lower volume, and higher SG&A expenses. SG&A expenses were higher primarily due to cost inflation, the Trilogy Plastics acquisition, higher salaries, benefits, and incentive compensation costs, and increased variable selling expenses. Net sales for the distribution segment increased by $22 million or 44% year over year. Excluding the incremental $16.6 million of net sales from the Mohawk rubber acquisition, organic net sales increased 11% due to favorable volume and price. Adjusted operating income increased 18% to $5.2 million. The contribution from higher pricing and volume was partially offset by an increase in product costs and higher SG&A expenses year over year. The higher SG&A expenses were primarily due to cost inflation, the Mohawk rubber acquisition, and higher variable selling and incentive compensation expenses. Turning to slide six, Free cash flow was $9.8 million compared to negative free cash flow of $13.8 million for the third quarter of 2021. You may recall that an increase in working capital significantly impacted cash flow during the third quarter of last year. The implementation of sales and operations planning, S&OP processes, across our businesses is shortening our cash conversion cycle. And as a result, working capital as a percentage of net sales decreased 170 basis points compared to the same period last year. Capital expenditures were $6.7 million for the quarter and cash on hand at the end of the quarter was $20.4 million. Our balance sheet is strong with debt to adjusted EBITDA at one time. Our capital structure provides ample flexibility to support our long-term growth plans. Given our solid execution in the first three quarters of 2022, We are reiterating our 2022 sales outlook with sales growth anticipated to be in the high teens range with approximately 45% of the increase due to the acquisitions of Trilogy Plastics and Mohawk Rubber. Additionally, we are updating and raising our full year 2022 outlook for our adjusted EPS, which we now expect to be between $1.50 to $1.70 compared to the previous range of $1.40 to $1.60. We continue to expect SG&A expenses to be approximately 22% of net sales, primarily reflecting continued inflation and ongoing investments in our people, processes, and operational efficiencies. Other key modeling assumptions include depreciation and amortization expenses of approximately $21 million and CapEx of approximately $25 to $28 million. Interest expense is still forecasted to be approximately $6 million, and the effective tax rate is forecasted to be 26%. I'd like to extend a thank you to the entire Meyers team for their tireless efforts to deliver another record quarter. With that, I'll turn the call back over to Mike to provide an update on our strategy.