Myers Industries, Inc.

Hello, everybody, and welcome to the Myers 2025 Third Quarter results. My name is Elliot, and I'll be coordinating your call today. If you would like to register a question during today's event, please press star 1 on your telephone keypad. And I'd like to hand over to Megan Berenger. Please go ahead.

Thank you. Good morning, everyone, and welcome to Myers Third Quarter 2025 Earnings Review. Joining me today are Aaron Schaper, President and Chief Executive Officer Sam Ruddy, Executive Vice President and Chief Financial Officer, and Dan Hoen, Vice President and Corporate Controller. After the prepared remarks, we will host a question and answer session. Earlier this morning, we issued a press release outlining our third quarter financial results. In addition, a presentation to accompany today's prepared remarks has been posted. Those documents are available on the investor relations section of our website, at myersindustries.com. This call is being webcast live on our website and will be archived along with the transcript of the call shortly after this event. Please turn to slide three 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 of the company's periodic SEC filings. Also please be advised that certain non-GAAP financial measures, such as adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted earnings per share may be discussed on this call. Now, please turn to slide four of our presentation as I turn the call over to Aaron.

Thank you, Megan. Good morning, everyone, and thank you for joining us. I will begin today's call with a review of our third quarter, then I will provide an update on our focused transformation program. Following my comments, Sam will provide a detailed review of the third quarter financials and our outlook for the year. Turning to slide five, third quarter net sales were 205.4 million, slightly higher year over year as infrastructure and industrial growth was offset by continued soft demand in automotive aftermarket and vehicle end markets. In addition, consumer sales, specifically fuel containers, were lower with the absence of weather-driven events. Within infrastructure, we continue to see strong demand as customers switch from wood to composite matting products used in construction, utility, and other infrastructure projects. Industrial growth was driven by ongoing demand for military products. With the exception of consumer sales, our end market outlook is relatively unchanged as demand and backlog across our larger infrastructure and industrial end markets remain steady. For the quarter, we are 19 cents per share. Adjusted EPS was 26 cents, up year over year. Cash flow improved significantly, with free cash flow doubling compared with last year. We continue to make steady progress against our objectives, and I remain confident in our ability to improve performance. Turning to slide six, I would like to provide an update on our focused transformation program. We made meaningful progress during the quarter as we focused on tasks that had the biggest impact. Chief among the milestones we achieved this quarter was the completion of our MTF strategic review and the conclusion that the right decision is for us to sell this business. We have formally launched this process, partnering with KeyBank to execute the transaction. Once complete, this divestiture will be a large step towards optimizing our portfolio, with the remaining businesses better aligned with our mission of protecting assets from the ground up, enhancing our ability to apply our competitive advantages for high return applications. We have made progress on each of our four objectives. Some of these changes are already visible across our organization. For example, We have made tremendous progress this year, establishing a culture of execution and accountability by implementing KPIs to measure the progress and success of our business and aligning incentive plans with long term targets and objectives to ensure that we are creating long term value for our shareholders. We continue to build on this with continuous improvement mindset to drive performance now and into the future. We are creating clear strategies to improve performance on our entire portfolio to ensure we are achieving optimal profitability. The decision to sell MTS is a step in the right direction, as it will have a notable impact towards improving our margins. We're also doing a better job of sharing best practices across the organization. For example, through a collaboration with Buckhorn, Signature has improved their structural foam mold change process, which has reduced downtime and improved throughput. As we develop this operational excellence discipline, we will become more aware of opportunities to drive best practices across the portfolio. We are on track to deliver $20 million in annualized cost savings, primarily SG&A, by the end of 2025, having already identified $19 million. We consolidated production and idled two of our nine rotational molding facilities to improve utilization and reduce costs. We are continuing to be diligent about costs and investigate areas where we can be more efficient as an organization while maintaining customer services that distinguish Meyers in our market. I am encouraged by the progress. We have updated our approach, developing and implementing our long-term strategy as a part of our focus transformation. This is a new framework for Meyers and one that I've seen drive proven measurable results through a disciplined approach. It begins with a strategic planning session. For this, we gather broad key leadership representing a cross-functional group from across our businesses for a disciplined and more collaborative process. We discuss where each of our businesses will play to win, their unique differentiators and their growth potential. This was a tremendously valuable exercise and led to great insights that will inform our strategic direction. With a strategic plan established, we are prepared to implement a strategic deployment tool which will support discipline planning and breakthrough objectives. We started by rolling the tool out to senior leaders who will cascade it down throughout their organization. The tool helps businesses break down long-term goals into an annual objective, identify key improvement initiatives and metrics, and assign ownership for each action. With the implementation, we will shift towards a culture of delivering results where progress is visible, measured, and shared across teams. This progress on our focused transformation objectives position us well for the next leg of our journey. As we continue to strengthen the foundations of our business and build platforms for growth, we are creating operational rigor and instilling a mindset of continuous improvement. These will serve us well and enable us to become a highly successful company that I am confident we can become. At this time, it is my pleasure to formally welcome our new CFO, Sam Ruddy, to the call. She joined us a little over five weeks ago. She made a positive impression across the organization with her energy and vision. I'm excited to have her join our executive leadership team and look forward to working with her as we launch our new long-term strategy. Her arrival will accelerate the transformation of both the business and our culture. Sam brings incredible knowledge, turnaround success, and more than two decades of financial leadership experience across global services and manufacturing companies. She was the CFO of Brinks North America and spent 20 years with Eaton Corporation in a series of senior financial roles. She's consistently taken on big challenges and has helped her team succeed, and I know she will do the same here. Before I turn the call over to Sam, I want to thank Dan Hone for stepping into the interim CFO role these last six months. Dan is a steady hand, clear thinker, and understands the business and the numbers intimately. I'm personally grateful for the partnership during the time that Dan served in this role, and I look forward to continuing to work with him as he resumes his role as our corporate controller. With that, I will now turn the call over to Sam.