Myers Industries, Inc.

Hello and welcome to the Meyers 2025 first quarter results. My name is Carla and I will be coordinating your call today. During the presentation, you can register to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I would now like to hand you over to Megan Meringer, Senior Director of Investor Relations at Meyers Industries to begin. Megan, please go ahead when you're ready.

Thank you. Good morning, everyone, and thank you for joining Meijer's conference call to review 2025 first quarter results. I'm Megan Berengar, Senior Director of Investor Relations at Meijer Industries. Joining me today are Aaron Shopper, President and Chief Executive Officer, Grant Phipps, Executive Vice President and Chief Financial Officer, and Dan Hone, Vice President, Corporate Controller. After the prepared remarks, we will host a question and answer session. Earlier this morning, we issued a press release outlining our first quarter financial results. We have also posted a presentation to accompany today's prepared remarks. Both are available under the investor relations tab at www.myersindustries.com. This call is being webcasted on our website and will be archived along with the transcript of the call shortly after this event. Please turn to slide 3 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. Further information concerning these risks, uncertainties, and other factors are set forth in the company's periodic SEC filings. Also, please be advised that certain non-GAAP financial measures, such as the adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted earnings per share, may be discussed on this call. Now please turn to slide five of our presentation, as I will now turn the call over to Aaron.

Thank you, Megan. Good morning, everyone, and thank you for joining us. On today's call, I will begin by reviewing first quarter highlights. Then I'll provide an update on our focus transformation, our progress since our fourth quarter earnings call, and our unique characteristics that define Meyers. Following my comments, Grant will provide a detailed review of the first quarter financials, followed by Dan, who will review our outlook for the year. First quarter revenue was flat year over year. Growth in material handling was led by the contribution of our signature acquisition and industrial growth for military products, offset by lingering softness in our distribution segment. Margins improved as we did a nice job of controlling costs. SG&A, which is the focus of our 2025 cost savings program, was lower as a percent of sales, resulting in an increase in EPS. I'm pleased with the team's focus and performance, and I am reassured by the solid start to the year. At the same time, there are clear opportunities to improve, and I am confident that we are on the right path to elevate our performance. Before moving on, I would like to address tariffs as they pertain to Meyers directly. Please turn to slide six. Our supply chain is predominantly based in the U.S. Most of the materials we purchase are from U.S. suppliers. 15 of our 16 manufacturing plants are here in the U.S. More than 90% of our 2025 material handling revenue is expected to be manufactured in the US. Further, the remaining 10% of revenue from this segment is currently protected by the USMCA and military exemptions. Per distribution, less than 15% of our products are sourced from China. We plan to use pricing to offset tariff costs and have secured secondary and tertiary suppliers to mitigate the impact to our customers. This predominantly domestic place supply chain should provide resilience to tariff-driven disruptions. As a result, we expect minimal direct impact from the current tariffs. We are also positioned to provide options for supply chain resiliency to our customers to help them mitigate these disruptions. Of course, this is a dynamic situation, and we continue to closely monitor any impact on factors that would alter end-market demand trends. We stand ready to execute across a wide variety of scenarios should we find ourselves in an altered landscape than we are currently expecting. Turning to slide seven, during our fourth quarter earnings call, I introduced our focused transformation program. We're developing this plan to change course and accelerate our timeline to deliver more consistent and reliable results. During my conversation with employees, I'm encouraged with how they are embracing the positive cultural shift to elevate our performance. Let's review the four objectives and the early progress that we are achieving. The first objective is to establish a culture of execution and accountability to drive performance. We have adjusted our core values to include deliver results and continuous improvement, emphasizing a culture of lean management supported by clear, efficient processes. We have aligned incentive plans with individual business unit performance while retaining overall executive accountability to shareholders for corporate targets. These changes provide proper incentives to demonstrate our core values, motivating employees to achieve organic growth and profitability in each of our businesses. I believe these actions will drive cultural change, igniting a fire in our employees and validating the opportunity that attracted me to Meyers. Our second objective is to create clear strategies, including action plans and specific KPIs to improve the profitability of our entire portfolio. We are off to a rapid start. Over the past few weeks, we completed a series of employee workshops to review and evaluate the businesses in our portfolio, developing strategies for each based on their characteristics. Some of our businesses serve high growth markets. We will invest to support these businesses to continually drive organic growth. We have other businesses serving lower growth markets that do not require significant investments, but generate strong cash flow to fund high growth businesses and fortify our ability to return cash to shareholders. Finally, we have a few businesses that are not performing at the level we expect. We are developing and implementing plans to improve these businesses within a reasonable timeframe. I am optimistic that we are on the right path to drive improved performance across our entire portfolio. We plan to announce our updated long-term strategy for each business by the end of this year after we complete the necessary foundational work. Our third objective is to deliver consistent and reliable results by effectively controlling what we can control. The first step that we announced during our last quarterly update is deliver annualized cost savings of $20 million by year-end 2025, primarily in SG&A, to reduce costs while enhancing operational efficiency. From my experience in managing business in dynamic markets, optimizing cost structure is vital during challenging markets and rewarding in upswings. The workshops I mentioned earlier were instrumental in identifying specific actions to drive efficiencies into the organization to build a foundation for long-term sustainable growth. We overachieved our signature synergy targets, delivering $12 million in cost synergies against our $8 million target. We are confident in our continued path to our $20 million annualized cost savings commitment. Our fourth and final objective is to optimize cash flow and support disciplined capital allocation deployments. Last quarter, we launched a new $10 million share repurchase plan. In addition, we will continue to invest in organic growth, maintaining our CapEx target of around 3% of sales, and focusing on high growth opportunities that deliver superior returns. It is early days on our focus transformation, but I'm pleased with the initial pace of progress and confident in our team's ability to deliver improved financial results from the changes we are making. Our mission is to provide products that protect the world from the ground up. I'd like to discuss two examples of how we do this, beginning on slide eight. Many large stadiums with turf playing surfaces would like to expand the functionality of their properties and increase the revenue opportunity. This creates a challenge to properly protect the playing surface to eliminate damage that could lead to player injuries. In addition, the cost and time of converting the playing surface limits the revenue generating potential. Our Omnidex flooring system provides a differentiated solution. It is strong and durable, protecting the surface from machinery, staging, equipment, and foot traffic. It is lightweight, reducing the time and cost to repurpose the facility. As a result, the integrity of the playing surface remains intact. We have seen great success from our customers with this product. I invite you to view the video linked in our presentation to see a testimonial from our newest customer, SoFi Stadium. Another example of our mission in action is shown on slide 9, protecting our troops. Historically, our military has used water-steel packaging for ammunition. These are heavy, increasing the cost of transport and the stress on soldiers that carry these containers in the field. Our Scepter solution provides lighter, better, safer, and battle-proven packaging for transporting ammunition for the defense industry. Delivering a 41% weight savings, soldiers' injuries are reduced, keeping them healthier to train and accomplish their primary mission. In addition, the transportation costs are reduced, enabling the military to allocate resources to other critical areas. We are so proud to support, serve, and protect our troops. These examples highlight who we are as a company and how we deliver value to our customers. Since our last earnings call, we have made progress on achieving our commitments. We have acted quickly, starting the journey to create a culture built on accountability that fulfills our commitments and delivers results with a continuous improvement mindset. Building on this momentum, we are moving forward with purpose, transforming Meyers with speed, agility, urgency, and acting with integrity. I will continue to meet with customers and investors, listening to your feedback to ensure we are creating value for you. With that, I'll turn the call over to Grant to discuss our first quarter results. As previously announced, Grant will be stepping down as our CFO tomorrow. I wish to thank him publicly on behalf of the entire company. Although our time working together was short, I recognize the contribution he has made here since joining the organization, and I'm grateful for the help he has provided to me during my transition. He will be missed and we wish him all the best. Dan Hone, vice president, corporate controller, will serve as interim CFO while we undergo a formal search, which has been launched to identify our next finance chief. Over to you, Grant.