Table of Contents

 
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-K

þ	 	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 	
 	 	 	
 	 	For The Fiscal Year Ended December 31, 2009 	

Commission File Number 001-08524
 
MYERS INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)

OHIO	 	34-0778636	
(State or other jurisdiction of
incorporation or organization)	 	(IRS Employer Identification Number)	

 	 	 	 	 	
1293 S. Main Street, Akron, Ohio	 	44301	 	(330) 253-5592	
(Address of Principal Executive Offices)	 	(Zip Code)	 	(Telephone Number)	

 	 	 	
Securities Registered Pursuant to
Section 12(b) of the Act:	 	Name of Each Exchange
On which registered:	
Common Stock, Without Par Value	 	New York Stock Exchange	
(Title of Class)	 	 	

Securities Registered Pursuant to Section 12(g) of the Act: None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  o      No  þ
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.  Yes  o      No  þ
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for at least the past 90 days.  Yes  þ      No  o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  o      No  o
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   þ
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  o	Accelerated filer  þ	Non-accelerated filer  o	Smaller reporting company  o	
(Do not check if a smaller reporting company)
 
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes  o      No  þ
 
State the aggregate market value of the voting and non-voting common equity stock held by non-affiliates computed by reference to the closing sale price on the New York Stock Exchange as of June 30, 2009: $268,599,610.
 
Indicate the number of shares outstanding of registrant’s common stock as of February 26, 2010: 35,289,970 Shares of Common Stock, without par value.
 
DOCUMENTS INCORPORATED BY REFERENCE:
 
Portions of the Registrant’s Definitive Proxy Statement for its 2010 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K.

TABLE OF CONTENTS

									
PART I	
	ITEM 1. Business	
	ITEM 1A. Risk Factors	
	ITEM 1B. Unresolved Staff Comments	
	ITEM 2. Properties	
	ITEM 3. Legal Proceedings	
PART II	
	ITEM 5. Market for Registrant’s Common Stock and Related Stockholder Matters and Issuer Purchases of Equity Securities	
	ITEM 6. Selected Financial Data	
	ITEM 7. Management’s Discussion and Analysis of Results of Operations and Financial Condition	
	Item 7A. Quantitative and Qualitative Disclosures About Market Risk	
	ITEM 8. Financial Statements and Supplementary Data	
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	
Statements of Consolidated (Loss) Income	
Statements of Consolidated Financial Position	
Statements of Consolidated Financial Position	
Statements of Consolidated Shareholders’ Equity	
Statements of Consolidated Cash Flows	
Notes to Consolidated Financial Statements Amounts in thousands, except as otherwise noted	
	ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	
	ITEM 9.A. Controls and Procedures	
	ITEM 9B. Other Information.	
PART III	
	ITEM 10. Directors and Executive Officers of the Registrant	
	ITEM 11. Executive Compensation	
	ITEM 12. Security Ownership of Certain Beneficial Owners and Management	
	ITEM 13. Certain Relationships and Related Transactions	
	ITEM 14. Principal Account Fees and Services	
PART IV	
	ITEM 15. Exhibits, Financial Statement Schedules	
SIGNATURES	
EX-3.1	
EX-21	
EX-23	
EX-31.1	
EX-31.2	
EX-32	

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PART I

ITEM 1. 	Business	

(a) 	General Development of Business	
 
Myers Industries, Inc. (the “Company” or “Myers Industries”) was founded in Akron, Ohio, in 1933. Since then, the Company has grown from a small storefront distributing tire service supplies into an international manufacturing and distribution enterprise. In 1971, the Company went public, and the stock is traded today on the New York Stock Exchange under the ticker symbol MYE.
 
Still headquartered in Akron, Ohio, Myers Industries has become a premier, international manufacturing and distribution business. Today, the Company manufactures a diverse range of polymer products for industrial, agricultural, automotive, commercial and consumer markets. Myers Industries is a leader in the manufacturing of plastic reusable material handling containers and pallets and North America’s leading producer of plastic horticultural pots, trays and flower planters. Other principal product lines include plastic storage and organization containers, plastic OEM parts, rubber tire repair products and custom plastic and rubber products.
 
The Company is also the largest wholesale distributor of tools, equipment and supplies for the tire, wheel and undervehicle service industry in the United States. The distribution products range from tire balancers and alignment systems to valve caps, tire repair tools and other consumable service supplies.
 
As of March 10, 2010, the Company operates 18 manufacturing facilities and 39 distribution branches located throughout North, Central and South America; has approximately 12,000 manufactured products and 10,000 distributed products; and approximately 3,100 employees.
 
Serving customers around the world, products and related services from Myers Industries’ brands provide a wide range of performance benefits to customers in diverse niche markets. Some of these benefits include increasing productivity, lowering material handling costs, improving product quality, reducing labor costs, shortening assembly times, eliminating solid waste and increasing profitability. The Company’s business strategy — the “Strategic Business Evolution” — is focused on sustainable, profitable growth guided by five key operating principles: 1) Business Growth, 2) Customer Satisfaction, 3) Cost Control, 4) Organizational Development and 5) Positioning the Business for the Future. Applying these principles to our business, the Company emphasizes:

 	• 	Industry-leading innovation of niche, high margin products;	
 		
 	• 	Being the low-cost provider of certain commodity products where our brands excel;	
 		
 	• 	Achieving leadership in key product areas through breadth of offering, consistent quality and superior customer service;	
 		
 	• 	Concentrating our efforts on niche markets where our capabilities create profit opportunities for our customers and ourselves;	
 		
 	• 	Leveraging brand equity and capabilities to grow business with existing customers and cultivate new ones, particularly in emerging growth markets where we can deliver the greatest value and achieve the best returns;	
 		
 	• 	Investing in new technologies and processes to reinforce customer satisfaction and market strength across our key business segments;	
 		
 	• 	Succession plans through our management teams at all levels in the Company, ensuring the right people are in the right positions to grow;	
 		
 	• 	Selective acquisitions as opportunities arise to enhance our leadership in key markets;	
 		
 	• 	Potential divestiture of businesses with non-strategic products or markets, aligning our resources with the best avenues for long-term, profitable growth potential; and	
 		
 	• 	Consolidation and rationalization initiatives to reduce costs and improve productivity within the Company’s manufacturing and distribution footprint.	

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The Company’s segments and brands are under continuous review for strategic fit and growth potential. The review process is dedicated to strengthening innovation, enhancing brand leadership in our markets, building strong customer relationships and positioning the Company to grow on a sustainable basis.

(b) 	Financial Information About Segments	
 
The response to this section of Item 1 is contained in the Industry Segments footnote of the Notes to the Consolidated Financial Statements under Item 7 of this report.

(c) 	Description of Business	
 
The Company conducts its business activities in four distinct business segments, including three in manufacturing and one in distribution. The manufacturing segments consist of: Material Handling, Lawn and Garden, and Automotive and Custom. In 2009, the Company sold substantially all the assets of its Michigan Rubber Products, Inc. and Buckhorn Rubber Products, Inc. businesses which were included in the Automotive and Custom segment. As a result, these businesses were moved to discontinued operations in the third quarter of 2009.
 
In our manufacturing segments, we design, manufacture, and market a variety of plastic and rubber products. These range from plastic reusable material handling containers and small parts storage bins to plastic horticultural pots and hanging baskets, decorative resin planters, plastic OEM parts, tire repair materials and custom plastic and rubber products.
 
The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and undervehicle service on passenger, heavy truck and off-road vehicles.

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The following table summarizes the key attributes of our business segments in continuing operations for the year ended December 31, 2009:

2009	 	 	 	 	 	 	 	 	
Continuing	 	Lawn and Garden	 	Material Handling	 	Distribution	 	Automotive and Custom	
Operations	 	Segment	 	Segment	 	Segment	 	Segment	
 		
Net Sales	 	$220mm	 	$254mm	 	$163mm	 	$86mm	
% of Total Net Sales	 	31%	 	36%	 	23%	 	10%	
Key Product Areas	 	•   Plastic Horticultural Pots, Trays, Flats & Hanging Baskets
•   Decorative Resin Planters
•   Custom Products	 	•   Plastic Reusable Containers & Pallets
•   Plastic Storage & Organization Products
•   Plastic Carts
•   Metal Carts
•   Wooden Dollies
•   Custom Products	 	•   Tire Valves & Accessories
•   Tire Changing & Balancing Equipment
•   Lifts & Alignment Equipment
•   Service Equipment
•   Hand Tools
•   Tire Repair & Retread Equipment & Supplies
•   Brake, Transmission & Allied Service Equipment & Supplies	 	•   Rubber & Plastic Original Equipment & Replacement Parts
•   Tire Repair & Retreading Products
•   Highway Markings
•   Industrial Rubber
•   Custom Rubber & Plastic Products	
Product Brands	 	•   Dillen ®
•   ITML ®
•   Listo tm
 •   Pro Cal ®
•   Planters’ Pride ®
•   Akro-Mils Lawn & Garden ®	 	•   Akro-Mils ®
•   Buckhorn ®
•   Myers do Brasil ®	 	•   Myers Tire Supply ®
•   Myers Tire Supply International ®	 	•   Ameri-Kart tm
 •   Patch Rubber tm
 •   WEK ®	
Key Capabilities & Services	 	•   Product Design
•   Prototyping
•   Testing
•   Material Formulation
•   Injection Molding
•   Thermoforming
•   Co-Extrusion Thermoforming
•   Custom Printing & Labeling
•   Material Regrind & Recycling	 	•   Product Design
•   Prototyping
•   Product Testing
•   Material Formulation
•   Injection Molding
•   Structural Foam Molding
•   Metal Forming
•   Wood Fabrication
•   Powder Coating
•   Material Regrind & Recycling	 	•   Broad Sales Coverage
•   Local Sales & Inventory
•   International Distribution
•   Personalized Service
•   National Accounts
•   Product Training
•   Repair/Service Training
•   New Products
“Speed to Market”	 	•   Rubber Mixing
•   Rubber Compounding
•   Rubber Calendering
•   Rubber Extrusion
•   Rubber Injection Molding
•   Plastic Blow Molding
•   Co-Extrusion Blow Molding
•   Plastic Rotational Molding	
Representative
Markets	 	•   Horticulture:
  - Growers
  - Nurseries
  - Greenhouses
  - Retail Garden Centers
•   Consumer
  - Retail Garden Centers
  - Retail Home Centers	 	•   Agriculture
•   Automotive
•   Commercial
•   Food Processing
•   Food Distribution
•   Healthcare
•   Industrial
•   Manufacturing
•   Retail Distribution	 	•   Retail Tire Dealers
•   Truck Tire Dealers
•   Auto Dealers
•   Commercial Auto & Truck Fleets
•   General Repair & Services Facilities
•   Tire Retreaders
•   Governmental Agencies	 	•   Automotive OEM
•   Industrial
•   Mining
•   Recreational Marine
•   Recreational Vehicle
•   Road Construction
•   Sporting Goods
•   Tire Repair
•   Telecommunications	

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Manufacturing Segments Overview
 
Lawn and Garden Segment
 
The Company’s Lawn and Garden Segment includes the Dillen ® , ITML ® , Pro Cal ® , Listo tm , and Planters’ Pride and Akro-Mils Lawn & Garden tm brands, which serve the horticultural container needs of the North American floriculture/ horticulture market. Our product selection, manufacturing capabilities, quality and customer service rank at the top of our category in the market, which spans growers with 80-plus acre greenhouse facilities to small regional nurseries to retail garden centers and retail home centers.
 
In 2009, the Company completed a realignment of its Lawn and Garden Segment. This resulted in the decision to close three facilities and reallocate production to the segment’s other remaining facilities. These initiatives enabled the Company to consolidate manufacturing and capacity, optimize distribution and supply chain channels, and drive increased productivity and customer service excellence through improved forecasting, workflow, and inventory management programs.
 
For growers, our products are available both direct and through a network of leading horticultural distributors. Our product range is one of the most extensive in North America. Products include injection-molded and thermoformed pots, hanging baskets, flats and carry trays, plug trays, nursery containers, propagation sheets, and specialty pots. Product innovation is centered on the changing needs of the professional grower, including increased automation in growing operations, improving efficiency and reducing costs, while focusing on environmental friendliness. For example, a recent focus has been in lightweight co-extruded (CoEx) thermoformed pots. CoEx pots have a thinner wall construction compared to injection pots and combine a color exterior with a dark interior layer made from recycled material which helps to protect plant roots against potential sunlight damage in both grower and retail operations and helps protect the environment.
 
In addition to working with growers on product innovation, we support their increasing needs for branding and retail merchandising programs with services such as in-mold labeling, multi-color offset printing and adhesive labeling. Once filled with plant material by the grower and shipped to retail, these customized pots serve as packaging for plants and create vibrant point-of-sale materials.
 
For retailers, our Listo brand encompasses decorative resin planters that feature intricate molding details and unique finishes in ceramic, metallic, weathered stone and textured styles. The upscale look of these decorative planters captures the retailer’s attention and the consumer’s imagination. Products include a diverse offering of planters, window boxes, urns and hanging baskets for indoor and outdoor container gardening. Consistent new product development is key to success in the retail garden center and mass merchandiser channels. Proprietary molding and finishing processes, along with creative designs, deliver the unique look in the decorative resin planter category that sets our planters apart from the competition in leading retail stores across North America.
 
In addition to Listo, two other brands in the retail channel of the Lawn and Garden Segment include Planters’ Pride ® and Akro-Mils Lawn & Garden Products ® . Planters’ Pride, has a diverse product offering dedicated to the beginning gardener. Featured products include a wide range of Fiber Grow ® seed starting kits with 100 percent peat free renewable coir pellets and other garden accessories, backed by customizable retail displays. Akro-Mils Lawn & Garden provides a wide range of plastic patio pots, planters and hanging baskets as well as watering cans and other related items for the home gardener.
 
Myers Industries seeks to expand its market leadership in the Lawn and Garden Segment through its current realignment of the segment, unrivaled product innovation and selection, diverse manufacturing processes, superior customer satisfaction and an array of internal and external strategic growth initiatives. One of these initiatives includes expanding the use of reprocessed and recycled materials in the manufacturing process, which helps to reduce the Company’s exposure to higher costs for virgin raw material. The Company has the capability to produce a wide range of plastic materials for use across its many product lines and is committed to being a “green” manufacturer to protect the environment.
 
Weather conditions, grower consolidation and grower supply chain adjustments to meet retail merchandising programs are some of the key external factors that influence this industry. As one of the industry leaders, however,

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the Company is well positioned to further align our capabilities to effectively meet the external challenges and changing needs of customers and the markets.
 
Material Handling Segment
 
The Material Handling Segment is comprised of plastic reusable material handling containers, pallets and bins, as well as metal shelving, cabinet and racking systems. The two brands in this segment, Buckhorn ® and Akro-Mils tm , have strong leadership positions across markets such as automotive, appliance, general industrial / manufacturing, distribution, agriculture, retail and food processing. This leadership is built through constant innovation, diverse manufacturing processes, consistent quality and superior customer service resulting in significant productivity and cost-saving benefits for our customers.
 
Buckhorn’s reusable containers and pallets are used in closed-loop supply chains to help customers reduce material handling costs by replacing single-use cardboard boxes, easily damaged wooden pallets and high-cost steel containers. Cost-reduction benefits include: improving product protection, increasing handling efficiencies, reducing freight costs and eliminating solid waste and disposal costs. Small parts bins, storage systems and transport products from Akro-Mils provide similar benefits by creating storage and organization efficiency throughout customers’ operations.
 
The Buckhorn brand offers a product selection rich in both breadth and depth, as well as a direct sales force with the packaging and material handling expertise that makes Buckhorn a key solutions partner for our customers. Buckhorn’s product line spans injection-molded hand-held containers and totes; injection and structural foam-molded bulk transport containers in both collapsible and fixed-wall styles; and injection and structural foam pallets. Buckhorn also produces custom material handling packaging. Customers rely on Buckhorn’s single-source efficiency and the productivity and profitability benefits delivered through value-added innovation, broad product selection, quality and packaging conversion services.
 
Buckhorn hand-held containers include attached lid, detached lid, bi-color and specialty styles that stack and/or nest for efficient space usage, thus lowering freight and storage costs. In manufacturing plants across North America, our container and pallet systems are reused hundreds of times to ship products such as small fasteners or large components from suppliers directly to assembly areas— protecting parts throughout the supply chain and reducing scrap rates. Our attached lid containers and pallets are used in retail distribution centers to organize inventory, sort orders and then transport products directly to stores. In the food processing and distribution industry, our specialty containers provide superior protection to food products while in transit and are more sanitary than cardboard boxes. For example, case-ready, packaged meats are delivered from processors to retailers in containers designed to accommodate specific cuts and package sizes, while maintaining optimal airflow for chilling.
 
Buckhorn’s selection of collapsible and fixed-wall bulk transport containers leads the North American material handling industry. Bulk containers perform both light and heavy-duty tasks, whether distributing seed products, carrying large automotive components or shipping liquids across long distances. These containers range in size from footprints of 32” x 30” to 70” x 48”; heights up to 65”; and weight capacities up to 3,000 lbs. Bulk containers are compatible with forklifts for easy handling. Many of the containers collapse to a third of their size for space-saving stacking, storage and return transport, thus helping to reduce freight and storage costs.
 
Examples of bulk container applications include our SeedBoxes tm , which are used by leading seed distributors to efficiently transport and dispense up to 2,500 lbs. of their products. The unique SeedBox can be emptied in approximately 30 seconds, then broken down for return shipping and refilling, thus eliminating waste created by traditional seed bags. Manufacturers of tomato paste employ our Caliber ® and Citadel ® bulk containers to move processed tomato products across the country in railcars. The smooth-sided, impact-resistant containers replace wooden crates and steel containers that can cause product damage and contamination. Citadel containers can carry up to 3,000 lbs. / 300 gallons of liquefied product, safely stack when fully loaded and are designed for long-term indoor or outdoor storage of loads. This product line is applicable to other food processing and ingredient niches such as concentrates, oils, syrups and similar products.
 
Buckhorn’s plastic pallets interwork with the hand-held containers and totes to create a completely reusable system and provide efficient space utilization in plants, warehouses and truck trailers — helping customers to

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reduce storage and freight costs. Buckhorn also produces a wide range of specialty pallets for niche-type shipping applications, such as drum pallets for chemical and liquid transport.
 
Our Akro-Mils brand provides customers with “everything needed to store, organize and transport for greater productivity and profitability.” This mix of plastic, metal and wooden material handling products serves industrial and commercial end-users through leading industrial supply catalogers and material handling distributors. Products range from AkroBins ®  — the industry’s leading small parts bins— to Super-Size AkroBins, metal panel and bin hanging systems, metal storage cabinet and bin systems, wire shelving systems, plastic and metal transport carts and a wide variety of custom storage and transport products. Capabilities used throughout the Akro-Mils product line include: injection molding, metal forming, powder-coat painting / metal finishing and wood fabrication, as well as the additional capabilities through potential synergies with Buckhorn.
 
Akro-Mils products deliver storage and organization solutions in a wide variety of applications, from creating assembly line workstations to organizing medical supplies and retail displays. Emphasis is placed on product bundling and customizing systems to create specific storage and organization configurations for customers’ operations. For example, industrial manufacturers with specialized tool and parts storage areas— known as “tool cribs”— use a combination of Akro-Mils bins, racking, locking cabinets, work tables and transport carts to speed assembly times, maintain accurate inventories and reduce loss. Metal carts and dollies are paired with custom-made containers to create unique transport systems capable of handling parts and components both small and large. Our powder coating / painting capability allows for high-quality, scratch-resistant finishing of metal products in a multitude of colors and finish styles.
 
Cross-marketing and cross-selling are key synergies between the Material Handling Segment brands. Equally important are cross-manufacturing capabilities that allow each brand to offer customers a wider range of value-added design and molding benefits. In addition to standard material handling products, we utilize the extensive design and manufacturing capabilities between Buckhorn and Akro-Mils for turnkey production of custom material handling products.
 
Sustainable, profitable growth in this segment is fueled by: a strong focus on innovation with value-added new products; concentrating sales efforts on niche markets and applications; increasing awareness of plastic reusable material handling products to drive conversions from cardboard and wood products; and managing the balance of product pricing and raw material costs. The potential for strategic, bolt-on acquisitions also provides opportunities to expand the scope of our brand leadership and the value-added products and services we bring to customers.
 
Automotive and Custom Segment
 
Myers Industries serves diverse niche markets and customers with rubber and plastic products from the Automotive and Custom Segment. Through our Ameri-Kart tm , Patch Rubber tm and WEK tm brands, we provide an array of engineered plastic original equipment and replacement parts, tire repair materials and custom rubber and plastic components and materials. We offer a unique combination of product design, molding and finishing expertise to support our customers’ needs for efficient, single sourcing of parts and turnkey custom product development. In addition to our plastics molding capabilities, we utilize a full range of rubber molding processes that include: injection molding; compounding, calendering and extrusion; 3-D co-extrusion blow molding. Additional capabilities include custom rubber formulation, mixing and testing.
 
The WEK brand supports passenger car and truck manufacturers to create plastic components and assemblies for a wide variety of vehicle platforms. Our molding and assembly capabilities produce a diversified product mix, which includes: HVAC components, tubing assemblies and other custom items. The Company’s focus in the automotive arena is on highly engineered, niche products for select automotive platforms and strategic, long-term customers who reward their value-added manufacturing partners.
 
Manufacturers of recreational vehicles (“RV”) and watercraft rely on our design expertise and production capabilities to provide them an assortment of products. Through our Ameri-Kart brand, we create rotationally-molded plastic tanks for water, fuel and waste handling that are assembled to fit the precise space constraints within RV and marine craft designs. We utilize thermoforming and rotational molding to manufacture plastic trim and interior parts for RV’s and helm consoles and seat frames for a wide variety of watercraft.

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Our manufacturing of rubber products began more than 60 years ago with our Patch Rubber brand, initially making tire patches. Today, we manufacture one of the most comprehensive lines of tire repair and retreading products in the United States. Service professionals rely on our extensive product selection and quality for safe, cost-effective repairs to passenger, truck and off-road tires. Products range from the plug that fills a puncture, the cement that seats the plug, the tire innerliner patch and the final sealing compound. Patch brand repair products maintain a strong position in the tire service markets with exclusive sales through our Distribution Segment’s branch network.
 
Also within the capabilities of Patch Rubber, we apply our rubber calendering and compounding expertise to create a diverse portfolio of products outside of the tire repair market, such as reflective highway marking tapes. Our rubber-based tape and symbols provide the durability and brightness that construction professionals demand to replace paint for marking road repair, intersections and hazardous areas. Compared with traditional highway paint, the tape stock is easier to apply, more reflective and longer lasting. It is available in both temporary and permanent grades to meet the customers’ specific requirements.
 
Other custom products represent a wide range of markets and applications. These include: plastic elevated toilet seats and tub rails for the healthcare market, specialty tapes used for cable splicing in the telecommunications industry and custom rubber linings for material handling conveyors.
 
Distribution Segment Overview
 
The Company’s Distribution Segment includes the Myers Tire Supply ® and Myers Tire Supply International ® brands. With these brands, the Company is the largest U.S. distributor and single source for tire, wheel and undervehicle service tools, equipment and supplies. We buy and sell nearly 10,000 different items — everything that professionals need to service passenger, truck and off-road tires, wheels and related components. Independent tire dealers, mass merchandisers, commercial auto and truck fleets, tire retreaders and general repair facilities rely on our broad product selection, rapid availability and personal service to be more productive and profitably grow their business.
 
Within the continental United States, we provide widespread distribution and sales coverage from 33 branches positioned in major metropolitan areas. Each branch operates as a profit center and is staffed by a branch manager, sales and warehouse personnel. Internationally, we have three branches in Canada and three in Central America. Sales personnel from our Akron, Ohio headquarters cover niche markets in the Far East, Middle East, South Pacific and South America.
 
We purchase products from trusted, industry-leading manufacturers to ensure quality is delivered to our customers. Each of the brand-name products we sell is associated with superior performance in its respective area. Some of these well-known brands include: Chicago Pneumatic air tools; Hennessy tire changing, balancing and alignment equipment; Corghi tire changers and balancers; Ingersoll-Rand air service equipment; John Bean Co. tire balancing and changing equipment; Rotary lifts and related equipment; and our own Patch Rubber brand tire patches, and repair supplies.
 
An essential element of our success in the Distribution Segment is the network field sales representatives, who deliver personalized service on a local level. Customers rely on Myers’ sales representatives to introduce the latest tools and technologies and to provide training in new product features and applications. Representatives also teach the proper use of diagnostic equipment and present on-site workshops demonstrating industry-approved techniques for tire repair and undervehicle service.
 
While the needs and composition of our distribution markets constantly change, we adapt and deliver the new products and services that are crucial to our customers’ success. The new product pipeline is driven by innovations from auto and tire manufacturers, which in turn prompts Myers and its suppliers to develop new equipment, supplies and service techniques to keep cars and trucks moving down the road with confidence.
 
The Company’s Distribution Segment is well positioned to continue its steady growth. The Myers Tire Supply (U.S.) brand is positioned to expand its leadership through superior product selection, rapid delivery and the personal service that is the hallmark of the Company’s success in the tire, wheel, and undervehicle service marketplace. The Myers Tire Supply International brand is positioned to expand distribution of both tire supply and our plastic products in select regions of the world, presenting new growth opportunities for our diverse

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manufacturing businesses. All of this can be achieved through: 1) ongoing productivity improvements in our distribution network, 2) growing within key domestic market sectors and emerging international markets, 3) delivering a continuous flow of new products with “first-to-market” speed and 4) improving efficiency and customer satisfaction through implementation of innovative supply chain management technologies. Strategic, adjacent acquisitions are also a potential growth avenue in this segment.
 
Raw Materials & Suppliers— Manufacturing and Distribution Segments
 
For the manufacturing segments, the Company purchases substantially all of its raw materials from a wide range of third-party suppliers. These materials are primarily polyethylene, polypropylene, and polystyrene plastic resins, as well as synthetic and natural rubber. Most raw materials are commodity products and available from several domestic suppliers. We believe that the loss of any one supplier or group of suppliers would not have a material adverse effect on our business.
 
The Distribution Segment purchases substantially all of its components from third-party suppliers and has multiple sources for its products.
 
Competition
 
Competition in the manufacturing segments is substantial and varied in form and size from manufacturers of similar products and of other products which can be substituted for those produced by the Company. In general, most direct competitors with the Company’s brands are private entities. Myers Industries maintains strong brand presence and market positions in the niche sectors of the markets it serves. The Company does not command substantial, overall market presence in the broad market sectors.
 
Competition in the Distribution Segment is generally from private, smaller local and regional businesses. Within the overall tire, wheel and undervehicle service market, Myers is the largest North American distributor of tools, equipment and supplies.
 
Customer Dependence
 
In 2009, the Company’s largest customer accounted for approximately 13% of total net sales. During 2008 and 2007, no single customer accounted for more than four percent of the Company’s total net sales. Myers Industries serves thousands of customers who demand value through product selection, innovation, quality, delivery and responsive, personal service. Our brands foster satisfied, loyal customers who have recognized our performance through numerous supplier quality awards.
 
Employees
 
As of December 31, 2009, Myers Industries had a total of 3,099 full-time and part-time employees. Of these, 2,538 were employed in the Company’s manufacturing segments, including: 790 in the Material Handling Segment, 591 in the Automotive and Custom Segment, and 1,157 in the Lawn and Garden Segment. The Distribution Segment employed 487 personnel. The Company’s corporate offices had 74 employees.
 
As of December 31, 2009, the Company had no employees who were members of unions.

(d) 	Financial Information About Geographic Areas	
 
The response to this section of Item 1 is contained in the Industry Segments footnote of the Notes to Consolidated Financial Statements under Item 8 of this report.

(e) 	Available Information	
 
Filings with the SEC .  As a public company, we regularly file reports and proxy statements with the Securities and Exchange Commission (SEC), such as:
 
* annual reports on Form 10-K;

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* quarterly reports on Form 10-Q;
 
* current reports on Form 8-K; and
 
* proxy statements on Schedule 14A.
 
Anyone may read and copy any of the materials we file with the SEC at it’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, DC 20549. Information regarding operations of the Public Reference Room may also be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains an internet website that contains our reports, proxy and information statements, and our other SEC filings; the address of that site is http://www.sec.gov.
 
Also, we make our SEC filings available free of charge on our own internet site as soon as reasonably practicable after we have filed with the SEC. Our internet address is http://www.myersind.com. The content on the Company’s website is available for informational purposes only, and is not incorporated by reference into this Form 10-K.
 
Corporate Governance .   We have a Code of Business Conduct for our employees and members of our Board of Directors. A copy of this Code is posted on our website. We will satisfy any disclosure requirement under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, any provision of this Code with respect to our executive officers or directors by disclosing the nature of that amendment or waiver.
 
Our website also contains additional information about our corporate governance policies, including the charters of our standing board committees. Any of these items are available in print to any shareholder who requests them. Requests should be sent to Corporate Secretary, Myers Industries, Inc., 1293 S. Main Street, Akron, Ohio 44301.

ITEM 1A.  	Risk Factors	
 
This Form 10-K and the information we are incorporating by reference contain forward-looking statements within the meaning of federal securities laws, including information regarding the Company’s 2010 financial outlook, future plans, objectives, business prospects and anticipated financial performance. You can identify these statements by the fact that they include words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are not statements of historical facts and represent only our current expectations regarding such matters. These statements inherently involve a wide range of known and unknown uncertainties. The Company’s actual actions and results could differ materially from what is expressed or implied by these statements. Specific factors that could cause such a difference include, those set forth below and other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. We expressly disclaim any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.
 
Risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements include:
 
Any significant increase in the cost of raw materials or disruption in the availability of raw materials could adversely affect our performance.
 
Our ability to manage our cost structure can be adversely affected by movements in commodity and other raw material prices. Our primary raw materials include plastic resins, colorants and natural and synthetic rubbers. Plastic resins in particular are subject to substantial short term price fluctuations, including those arising from supply shortages and changes in the price of natural gas, crude oil and other petrochemical intermediates from which resins are produced, as well as other factors. Over the past several years, we have at times experienced rapidly increasing resin prices. The Company’s revenue and profitability may be materially and adversely affected by these price fluctuations.

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We attempt to reduce our exposure to increases by working with existing suppliers, evaluating new suppliers, improving material efficiencies and adjusting prices. Market conditions, however, may limit our ability to raise selling prices to offset increases in our raw material input costs. If we are unsuccessful in developing ways to mitigate raw material cost increases, we may not be able to improve productivity or realize our ongoing cost reduction programs sufficiently to help offset the impact of these increased raw material costs. As a result, higher raw material costs could result in declining margins and operating results.
 
Changes in raw material availability may also occur due to events beyond our control, including natural disasters such as floods, tornados and hurricanes. Our specific molding technologies and/or product specifications can limit our ability to locate alternative supplies to produce certain products.
 
We incur inherent risks associated with our strategic growth initiatives.
 
Our growth initiatives include: internal growth driven by strong brands and new product innovation; development of new, high-growth markets and expansion in existing niche markets; strengthened customer relationships through value-added initiatives and key product partnerships; investments in new technology and processes to reinforce market strength and capabilities in key business groups; consolidation and rationalization activities to further reduce costs and improve productivity within our manufacturing and distribution footprint; an opportunistic and disciplined approach to strategic, bolt-on acquisitions to accelerate growth in our market positions; and potential divestitures of businesses with non-strategic products or markets.
 
While this is a continuous process, all of these activities and initiatives have inherent risks and there remain significant challenges and uncertainties, including economic and general business conditions that could limit our ability to achieve anticipated benefits associated with announced strategic initiatives and affect our financial results. We may not achieve any or all of these goals and are unable to predict whether these initiatives will produce significant revenues or profits.
 
We may not realize the improved operating results that we anticipate from past acquisitions or from acquisitions we may make in the future and we may experience difficulties in integrating the acquired businesses or may inherit significant liabilities related to such businesses.
 
We explore opportunities to acquire businesses that we believe are related to our core competencies from time to time, some of which may be material to us. We expect such acquisitions will produce operating results consistent with our other operations; however, we may be unable to achieve the benefits expected to be realized from our acquisitions. In addition, we may incur additional costs and our management’s attention may be diverted because of unforeseen expenses, difficulties, complications, delays and other risks inherent in acquiring businesses, including the following:

 	• 	we may have difficulty integrating the acquired businesses as planned, which may include integration of systems of internal controls over financial reporting and other financial and administrative functions;	
 		
 	• 	acquisitions may divert management’s attention from our existing operations;	
 		
 	• 	we may have difficulty in competing successfully for available acquisition candidates, completing future acquisitions or accurately estimating the financial effect of any businesses we acquire;	
 		
 	• 	we may have delays in realizing the benefits of our strategies for an acquired business;	
 		
 	• 	we may not be able to retain key employees necessary to continue the operations of an acquired business;	
 		
 	• 	acquisition costs may be met with cash or debt, increasing the risk that we will be unable to satisfy current financial obligations;	
 		
 	• 	we may acquire businesses that are less profitable or have lower profit margins than our historical profit margins; and	
 		
 	• 	acquired companies may have unknown liabilities that could require us to spend significant amounts of additional capital.	

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Our results of operations and financial condition could be adversely affected by a downturn in the general markets or the general economic environment.
 
We operate in a wide range of geographies, primarily North America, Central America and South America. Worldwide and regional economic, business and political conditions, including changes in the economic conditions of the broader markets and in our individual niche markets, could have an adverse affect on one or more of our operating segments.
 
We operate in a very competitive business environment.
 
Each of our segments participates in markets that are highly competitive. Many of our competitors sell their products at prices lower than ours and we compete primarily on the basis of product quality, product performance, value, supply chain competency and customer relationships. Our competitive success also depends on our ability to maintain strong brands and the belief that customers will need our products and services to meet their growth requirements. The development and maintenance of such brands requires continuous investment in brand building, marketing initiatives and advertising. The competition that we face in all of our markets — which varies depending on the particular business segment, product lines and customers — may prevent us from achieving sales, product pricing and income goals, which could affect our financial condition and results of operations.
 
The results of operations for our Lawn and Garden Segment are influenced by weather conditions.
 
Demand for our Lawn and Garden Segment products is influenced by weather, particularly weekend weather during the peak gardening season. Additionally, product demand in this segment is strongest in the first and fourth quarters and weakest in the third quarter, as our customers (in particular greenhouses and nurseries) order our products in advance of the growing season. As a result, our business, financial results, cash flow and our ability to service our debt could be adversely affected by certain weather patterns such as unseasonably cool or warm temperatures, hurricanes, water shortages or floods.
 
Our operations depend on our ability to maintain continuous, uninterrupted production at our manufacturing facilities, which are subject to physical and other risks that could disrupt production.
 
We are subject to inherent risks in our diverse manufacturing and distribution activities, including, but not limited to: product quality, safety, licensing requirements and other regulatory issues, environmental events, loss or impairment of key manufacturing or distribution sites, disruptions in logistics and transportation services, labor disputes and industrial accidents. While we maintain insurance covering our manufacturing and production facilities, including business interruption insurance, a catastrophic loss of the use of all or a portion of our facilities due to accident, fire, explosion, or natural disaster, whether short or long-term, could have a material adverse effect on our business, financial condition and results of operations.
 
Unexpected failures of our equipment and machinery may also result in production delays, revenue loss and significant repair costs, as well as injuries to our employees. Any interruption in production capability may require us to make large capital expenditures to remedy the situation, which could have a negative impact on our profitability and cash flows. Our business interruption insurance may not be sufficient to offset the lost revenues or increased costs that we may experience during a disruption of our operations. A temporary or long-term business disruption could result in a permanent loss of customers. If this were to occur, our future sales levels and therefore our profitability, could be materially adversely affected.
 
We derive a portion of our revenues from direct and indirect sales outside the United States and are subject to the risks of doing business in foreign countries.
 
We currently operate manufacturing, sales and service facilities outside of the United States, particularly in Canada and Brazil. For the twelve months ended December 31, 2009, international net sales accounted for approximately 14% of our total net sales from continuing operations. Accordingly, we are subject to risks associated with operations in foreign countries, including:

 	• 	fluctuations in currency exchange rates;	

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 	• 	limitations on the remittance of dividends and other payments by foreign subsidiaries;	
 		
 	• 	limitations on foreign investment;	
 		
 	• 	additional costs of compliance with local regulations; and	
 		
 	• 	in certain countries, higher rates of inflation than in the United States.	
 
In addition, our operations outside the United States are subject to the risk of new and different legal and regulatory requirements in local jurisdictions, potential difficulties in staffing and managing local operations and potentially adverse tax consequences. The costs related to our international operations could adversely affect our operations and financial results in the future.
 
A significant portion of our sales are derived from a single customer.
 
Approximately 13% of our total net sales from continuing operations for the year ended December 31, 2009 were with a single customer. We anticipate that sales to this customer will also be more than 10% of total sales in 2010. There can be no assurances that this relationship will continue or that we will be able to maintain this volume of sales from this relationship in the future. A substantial decrease or loss of these sales could have a material adverse effect on our operating performance. There can be no assurance that in such event, the Company will be able to redeploy its machinery and equipment in such a manner as to avoid an adverse impact on its utilization of manufacturing capacity or how long such impact may continue.
 
Our future performance depends in part on our ability to develop and market new products if there are changes in technology, regulatory requirements or competitive processes.
 
Changes in technology, regulatory requirements and competitive processes may render certain products obsolete or less attractive. Our performance in the future will depend in part on our ability to develop and market new products that will gain customer acceptance and loyalty, as well as our ability to adapt our product offerings and control our costs to meet changing market conditions. Our operating performance would be adversely affected if we were to incur delays in developing new products or if such products did not gain market acceptance. There can be no assurance that existing or future products will be sufficiently successful to enable us to effectively compete in our markets or, should new product offerings meet with significant customer acceptance, that one or more current or future competitors will not introduce products that render our products noncompetitive.
 
We may not be successful in protecting our intellectual property rights, including our unpatented proprietary know-how and trade secrets, or in avoiding claims that we infringed on the intellectual property rights of others.
 
In addition to relying on patent and trademark rights, we rely on unpatented proprietary know-how and trade secrets and employ various methods, including confidentiality agreements with employees and consultants, to protect our know-how and trade secrets. However, these methods and our patents and trademarks may not afford complete protection and there can be no assurance that others will not independently develop the know-how and trade secrets or develop better production methods than us. Further, we may not be able to deter current and former employees, contractors and other parties from breaching confidentiality agreements and misappropriating proprietary information and it is possible that third parties may copy or otherwise obtain and use our information and proprietary technology without authorization or otherwise infringe on our intellectual property rights. Additionally, in the future we may license patents, trademarks, trade secrets and similar proprietary rights to third parties. While we attempt to ensure that our intellectual property and similar proprietary rights are protected when entering into business relationships, third parties may take actions that could materially and adversely affect our rights or the value of our intellectual property, similar proprietary rights or reputation. In the future, we may also rely on litigation to enforce our intellectual property rights and contractual rights and, if not successful, we may not be able to protect the value of our intellectual property. Furthermore, no assurance can be given that we will not be subject to claims asserting the infringement of the intellectual property rights of third parties seeking damages, the payment of royalties or licensing fees and/or injunctions against the sale of our products. Any litigation could be protracted and costly and could have a material adverse effect on our business and results of operations regardless of its outcome.

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If we are unable to maintain access to credit financing, our business may be adversely affected.
 
The Company’s ability to make payments and to refinance our indebtedness, fund planned capital expenditures and acquisitions and pay dividends will depend on our ability to generate cash in the future and retain access to credit financing. This, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.
 
We cannot provide assurance that our business will generate sufficient cash flow from operating activities or that future borrowings will be available to us under our credit facilities in amounts sufficient to enable us to service debt, make necessary capital expenditures or fund other liquidity needs. We may need to refinance all or a portion of our indebtedness, on or before maturity. We cannot be sure that we would be able to refinance any of our indebtedness on commercially reasonable terms or at all.
 
The credit facilities contain restrictive covenants and cross default provisions that require us to maintain specified financial ratios. The Company’s ability to satisfy those financial ratios can be affected by events beyond our control, and we cannot be assured we will satisfy those ratios. A breach of any of these financial ratio covenants or other covenants could result in a default. Upon the occurrence of an event of default, the lenders could elect to declare the applicable outstanding indebtedness due immediately and payable and terminate all commitments to extend further credit. We cannot be sure that our lenders would waive a default or that we could pay the indebtedness in full if it were accelerated.
 
Future claims, litigation and regulatory actions could adversely affect our financial condition and our ability to conduct our business.
 
While we strive to ensure that our products comply with applicable government regulatory standards and internal requirements and that our products perform effectively and safely, customers from time to time could claim that our products do not meet contractual requirements, and users could be harmed by use or misuse of our products. This could give rise to breach of contract, warranty or recall claims, or claims for negligence, product liability, strict liability, personal injury or property damage. Product liability insurance coverage may not be available or adequate in all circumstances. In addition, claims may arise related to patent infringement, environmental liabilities, distributor terminations, commercial contracts, antitrust or competition law, employment law and employee benefits issues and other regulatory matters. While we have in place processes and policies to mitigate these risks and to investigate and address such claims as they arise, we cannot predict the underlying costs to defend or resolve such claims.
 
Current and future environmental and other governmental laws and requirements could adversely affect our financial condition and our ability to conduct our business.
 
Our operations are subject to federal, state, local and foreign environmental laws and regulations that impose limitations on the discharge of pollutants into the air and water and establish standards for the handling, use, treatment, storage and disposal of, or exposure to, hazardous wastes and other materials and require clean up of contaminated sites. Some of these laws and regulations require us to obtain permits, which contain terms and conditions that impose limitations on our ability to emit and discharge hazardous materials into the environment and periodically may be subject to modification, renewal and revocation by issuing authorities. Fines, penalties and other civil or criminal sanctions may be imposed for non-compliance with applicable environmental laws and regulations and the failure to have or to comply with the terms and conditions of required permits. Certain environmental laws in the United States, such as the federal Superfund law and similar state laws, impose liability for the cost of investigation or remediation of contaminated sites upon the current or, in some cases, the former site owners or operators (or their predecessor entities) and upon parties who arranged for the disposal of wastes or transported or sent those wastes to an off-site facility for treatment or disposal, regardless of when the release of hazardous substances occurred or the lawfulness of the activities giving rise to the release. Such liability can be imposed without regard to fault and, under certain circumstances, can be joint and several, resulting in one party being held responsible for the entire obligation.
 
While we have not been required historically to make significant capital expenditures in order to comply with applicable environmental laws and regulations, we cannot predict with any certainty our future capital expenditure

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requirements because of continually changing compliance standards and environmental technology. Furthermore, violations or contaminated sites that we do not know about, including contamination caused by prior owners and operators of such sites, or at sites formerly owned or operated by us or our predecessors in connection with discontinued operations, could result in additional compliance or remediation costs or other liabilities, which could be material.
 
We have limited insurance coverage for potential environmental liabilities associated with historic and current operations and we do not anticipate increasing such coverage in the future. We may also assume significant environmental liabilities in acquisitions. Such costs or liabilities could adversely affect our financial situation and our ability to conduct our business.
 
Environmental regulations specific to plastic products and containers could adversely affect our ability to conduct our business.
 
Federal, state, local and foreign governments could enact laws or regulations concerning environmental matters that increase the cost of producing, or otherwise adversely affect the demand for, plastic products. Legislation that would prohibit, tax or restrict the sale or use of certain types of plastic and other containers, and would require diversion of solid wastes such as packaging materials from disposal in landfills, has been or may be introduced in the U.S. Congress, in state legislatures and other legislative bodies. While container legislation has been adopted in a few jurisdictions, similar legislation has been defeated in public referenda in several states, local elections and many state and local legislative sessions. There can be no assurance that future legislation or regulation would not have a material adverse effect on us. Furthermore, a decline in consumer preference for plastic products due to environmental considerations could have a negative effect on our business.
 
Our insurance coverage may be inadequate to protect against potential hazardous incidents to our business.
 
We maintain property, business interruption, product liability and casualty insurance coverage, but such insurance may not provide adequate coverage against potential claims, including losses resulting from war risks, terrorist acts or product liability claims relating to products we manufacture. Consistent with market conditions in the insurance industry, premiums and deductibles for some of our insurance policies have been increasing and may continue to increase in the future. In some instances, some types of insurance may become available only for reduced amounts of coverage, if at all. In addition, there can be no assurance that our insurers would not challenge coverage for certain claims. If we were to incur a significant liability for which we were not fully insured or that our insurers disputed, it could have a material adverse effect on our financial position, results of operations or cash flows.
 
Our business operations could be significantly disrupted if members of our senior management team were to leave.
 
Our success depends to a significant degree upon the continued contributions of our senior management team. Our senior management team has extensive manufacturing, finance and engineering experience, and we believe that the depth of our management team is instrumental to our continued success. The loss of any of our key executive officers in the future could significantly impede our ability to successfully implement our business strategy, financial plans, expansion of services, marketing and other objectives.
 
Unforeseen future events may negatively impact our economic condition.
 
Future events may occur that would adversely affect the reported value of our assets. Such events may include, but are not limited to, strategic decisions made in response to changes in economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationship with significant customers.

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Equity Ownership Concentration
 
Descendents of the Company’s co-founder Louis S. Myers beneficially owned approximately 12.34% of the Company’s outstanding common shares as of March 10, 2010. Stephen E. Myers, former Chief Executive Officer of the Company beneficially owned approximately 7.84% of the Company’s outstanding common shares as of such date, and Kathryn A. Myers and Ellen J. Myers, as co-trustees of the trust established by their late mother Mary S. Myers, beneficially owned approximately 4.58% of the Company’s outstanding common shares as of such date. Combined, these individuals have sufficient voting power to influence actions requiring the approval of our shareholders.
 
Legal & Regulatory Actions
 
Changes in laws and regulations and approvals and decisions of courts, regulators, and governmental bodies on any legal claims known or unknown, could have an adverse affect on the Company’s financial results.

ITEM 1B.  	Unresolved Staff Comments	
 
None.

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ITEM 2.  	Properties	
 
The following table sets forth by segment certain information with respect to properties owned by the Company:
 
Distribution

 	 	Approximate	 	 	Approximate	 	 	 	 	
 	 	Floor Space	 	 	Land Area	 	 	 	 	
Location	 	(Square Feet)	 	 	(Acres)	 	 	Use	 	
 		
Akron, Ohio	 	 	129,000	 	 	 	8	 	 	 	Executive offices and warehousing	 	
Akron, Ohio	 	 	60,000	 	 	 	5	 	 	 	Warehousing	 	
Akron, Ohio	 	 	31,000	 	 	 	2	 	 	 	Warehousing	 	
Pomona, California	 	 	17,700	 	 	 	1	 	 	 	Sales and distribution	 	
Englewood, Colorado	 	 	9,500	 	 	 	1	 	 	 	Sales and distribution	 	
Phoenix, Arizona	 	 	8,200	 	 	 	1	 	 	 	Sales and distribution	 	
Indianapolis, Indiana	 	 	7,800	 	 	 	2	 	 	 	Sales and distribution	 	
Cincinnati, Ohio	 	 	7,500	 	 	 	1	 	 	 	Sales and distribution	 	
York, Pennsylvania	 	 	7,400	 	 	 	3	 	 	 	Sales and distribution	 	
Minneapolis, Minnesota	 	 	5,500	 	 	 	1	 	 	 	Sales and distribution	 	
Charlotte, North Carolina	 	 	5,100	 	 	 	1	 	 	 	Sales and distribution	 	
Syracuse, New York	 	 	4,800	 	 	 	1	 	 	 	Sales and distribution	 	
Franklin Park, Illinois	 	 	4,400	 	 	 	1	 	 	 	Sales and distribution	 	

Manufacturing	
Sandusky, Ohio	 	 	305,000	 	 	 	8	 	 	 	Manufacturing and distribution	 	
Springfield, Missouri	 	 	227,000	 	 	 	19	 	 	 	Manufacturing and distribution	 	
Dawson Springs, Kentucky	 	 	209,000	 	 	 	36	 	 	 	Held for sale	 	
Wadsworth, Ohio	 	 	197,000	 	 	 	23	 	 	 	Manufacturing and distribution	 	
Sparks, Nevada	 	 	185,000	 	 	 	11	 	 	 	Held for sale	 	
Bluffton, Indiana	 	 	175,000	 	 	 	17	 	 	 	Manufacturing and distribution	 	
Roanoke Rapids, N. Carolina	 	 	172,000	 	 	 	20	 	 	 	Manufacturing and distribution	 	
Shelbyville, Kentucky	 	 	160,000	 	 	 	8	 	 	 	Held for sale	 	
Bristol, Indiana	 	 	166,000	 	 	 	12	 	 	 	Manufacturing and distribution	 	
Jefferson, Ohio	 	 	115,000	 	 	 	11	 	 	 	Manufacturing and distribution	 	
Lugoff, S. Carolina	 	 	115,000	 	 	 	12	 	 	 	Held for sale	 	
Waco, Texas	 	 	60,000	 	 	 	5	 	 	 	Manufacturing and distribution	 	
Reidsville, North Carolina	 	 	53,000	 	 	 	17	 	 	 	Manufacturing and distribution	 	

The following table sets forth by segment certain information with respect to facilities leased by the Company:
 
Manufacturing

 	 	Approximate	 	 	 	 	 	
 	 	Floor Space	 	 	Expiration Date	 	 	
Location	 	(Square Feet)	 	 	of Lease	 	Use	
 		
Middlefield, Ohio	 	 	632,000	 	 	September 30, 2025	 	Manufacturing and distribution	
Brantford, Ontario, Canada	 	 	216,000	 	 	January 9, 2012	 	Manufacturing and distribution	
Cassopolis, Michigan	 	 	210,000	 	 	October 31, 2010	 	Manufacturing and distribution	
Reidsville, N. Carolina	 	 	171,000	 	 	July 17, 2013	 	Manufacturing and distribution	
Jaguariuna, Brazil	 	 	54,000	 	 	March 30, 2012	 	Manufacturing and distribution	
Burlington, Ontario, Canada	 	 	46,000	 	 	January 9, 2012	 	Manufacturing and distribution	
Milford, Ohio	 	 	22,000	 	 	August 31, 2010	 	Administration and sales	

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The Company also leases distribution facilities in 31 locations throughout the United States and Canada which, in the aggregate, amount to approximately 188,000 square feet of warehouse and office space. All of these locations are used by the Distribution Segment.
 
The Company believes that all of its properties, machinery and equipment generally are well maintained and adequate for the purposes for which they are used.

ITEM 3.  	Legal Proceedings	
 
The Company is, in the ordinary course of business, a defendant in various lawsuits and a party to various other legal proceedings, some of which are covered in whole or in part by insurance. We believe that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on our consolidated financial position, results of operations or cash flows.
 
A number of parties, including the Company and its subsidiary, Buckhorn, Inc., were identified in a planning document adopted in October 2008 by the California Regional Water Quality Control Board, San Francisco Bay Region (RWQCB). The planning document relates to the presence of mercury, including amounts contained in mining wastes, in and around the Guadalupe River Watershed (Watershed) region in Santa Clara County, California. Buckhorn has been alleged to be a successor in interest to an entity that performed mining operations in a portion of the Watershed area. The Company has not been contacted by the RWQCB with respect to Watershed clean-up efforts that may result from the adoption of this planning document. The extent of the mining wastes that may be the subject of future cleanup has yet to be determined, and the actions of the RWQCB have not yet advanced to the stage where a reasonable estimate of remediation cost, if any is available. Although assertion of a claim by the RWQCB is reasonably possible, it is not possible at this time to estimate the amount of any obligation the Company may incur for these cleanup efforts within the Watershed region, or whether such cost would be material to the Company’s financial statements.
 
Executive Officers of the Registrant
 
Set forth below is certain information concerning the executive officers of the Registrant as of December 31, 2009. Executive officers are appointed annually by the Board of Directors.

 	 	 	 	 	Years as	 	 	 	
Name	 	Age	 	 	Executive Officer	 	 	Title	
 		
John C. Orr	 	 	59	 	 	 	7	 	 	President and Chief Executive Officer	
Donald A. Merril	 	 	45	 	 	 	4	 	 	Vice President, Chief Financial Officer and Corporate Secretary	
David B. Knowles	 	 	49	 	 	 	1	 	 	Executive Vice President and Chief Operating Officer	

Each executive officer has not been principally employed in the capacities shown or similar ones with the Registrant for over the past five years. Mr. Orr, President and Chief Executive Officer, was appointed to his current position on May 1, 2005. Mr. Orr had been President and Chief Operating Officer since 2003. Prior to that Mr. Orr was General Manager of Buckhorn Inc., one of the Company’s material handling subsidiaries. Before coming to Myers Industries, Mr. Orr had been employed by The Goodyear Tire and Rubber Company for 28 years. His last position at Goodyear was Vice President — North America.
 
Mr. Merril, Vice President, Chief Financial Officer and Corporate Secretary, was appointed to his current position on April 26, 2006. Mr. Merril joined the Company on January 25, 2006, prior to that he was with Newell Rubbermaid Inc. — Rubbermaid Home Products Division, where he served as Vice President and Chief Financial Officer since 2003. Mr. Merril joined Newell Rubbermaid in 2001 where he served as Chief Financial Officer of Newell Rubbermaid — Little Tikes.
 
Mr. Knowles joined the Company and was named Executive Vice President and Chief Operating Officer on June 19, 2009. Prior to that, he was President and Chief Executive Officer of Aristech Acrylics LLC since 2003.
 
Section 16(a) of the Securities Exchange Act of 1934 requires the Registrant’s Directors, certain of its executive officers and persons who own more than ten percent of its Common Stock (“Insiders”) to file reports of ownership and changes in ownership with the Securities and Exchange Commission and the New York Stock Exchange, Inc., and to furnish the Company with copies of all such forms they file. The Company understands from the information provided to it by the Insiders that they adhered to all filing requirements applicable to the Section 16 Filers.

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PART II

ITEM 5.  	Market for Registrant’s Common Stock and Related Stockholder Matters and Issuer Purchases of Equity Securities	
 
The Company’s Common Stock is traded on the New York Stock Exchange (ticker symbol MYE). The approximate number of shareholders of record at December 31, 2009 was 1,665. High and low stock prices and dividends for the last two years were:

2009	 	Sales Price	 	 	 	 	
Quarter Ended	 	High	 	 	Low	 	 	Dividends	 	
 		
March 31	 	$	8.28	 	 	$	2.91	 	 	 	.06	 	
June 30	 	 	10.67	 	 	 	6.52	 	 	 	.06	 	
September 30	 	 	11.00	 	 	 	7.52	 	 	 	.06	 	
December 31	 	 	10.85	 	 	 	7.99	 	 	 	.06	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	
2008	 	Sales Price	 	 	 	 	
Quarter Ended	 	High	 	 	Low	 	 	Dividends	 	
 		
March 31	 	$	15.09	 	 	$	9.73	 	 	 	.06	 	
June 30	 	 	13.70	 	 	 	8.13	 	 	 	.06	 	
September 30	 	 	14.20	 	 	 	7.43	 	 	 	.06	 	
December 31	 	 	12.94	 	 	 	4.80	 	 	 	.06	 	

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See Item 12 of this Form 10-K for the Equity Compensation Plan Information Table which is incorporated herein by reference.
 
Comparison of 5 Year Cumulative Total Return
Assumes Initial Investment of $100
December 2009

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	2004	 	 	2005	 	 	2006	 	 	2007	 	 	2008	 	 	2009	
Myers Industries Inc. 	 	 	Return%
Cum $	 	 	 	100	 	 	 	 	15.15
135.36	 	 	 	 	8.75
147.20	 	 	 	 	-4.94
139.92	 	 	 	 	-43.24
79.42	 	 	 	 	17.18
79.70	 	
S&P 500 Index —
Total Return	 	 	Return%
Cum $	 	 	 	100	 	 	 	 	4.89
116.30	 	 	 	 	15.79
134.66	 	 	 	 	5.50
142.07	 	 	 	 	-36.99
89.51	 	 	 	 	26.45
102.08	 	
S&P 600 Index —
Total Return	 	 	Return%
Cum $	 	 	 	100	 	 	 	 	7.68
132.07	 	 	 	 	15.11
152.03	 	 	 	 	-0.30
151.58	 	 	 	 	-31.07
104.49	 	 	 	 	25.57
106.98	 	

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ITEM 6.  	Selected Financial Data	
Thousands of Dollars, Except Per Share Data

 	 	2009	 	 	2008	 	 	2007	 	 	2006	 	 	2005	 	
 		
Operations for the Year	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	701,834	 	 	$	813,541	 	 	$	855,705	 	 	$	699,312	 	 	$	654,642	 	
Cost of sales	 	 	530,939	 	 	 	616,879	 	 	 	628,748	 	 	 	505,735	 	 	 	483,713	 	
Selling	 	 	70,999	 	 	 	88,819	 	 	 	95,007	 	 	 	73,649	 	 	 	64,823	 	
General and administrative	 	 	77,297	 	 	 	72,394	 	 	 	86,684	 	 	 	62,864	 	 	 	59,025	 	
Impairment charges(1)	 	 	5,462	 	 	 	70,148	 	 	 	0	 	 	 	0	 	 	 	0	 	
Other income(2)	 	 	0	 	 	 	0	 	 	 	(26,750	)	 	 	0	 	 	 	0	 	
Interest — net	 	 	8,304	 	 	 	11,336	 	 	 	15,292	 	 	 	15,644	 	 	 	15,298	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	693,001	 	 	 	859,577	 	 	 	798,981	 	 	 	657,892	 	 	 	622,859	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	 	 	8,833	 	 	 	(46,035	)	 	 	56,724	 	 	 	41,420	 	 	 	31,783	 	
Income taxes	 	 	1,838	 	 	 	(286	)	 	 	19,985	 	 	 	14,910	 	 	 	12,677	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	 	6,995	 	 	 	(45,749	)	 	 	36,739	 	 	 	26,510	 	 	 	19,106	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations per basic and diluted share	 	$	.20	 	 	$	(1.30	)	 	$	1.05	 	 	$	.76	 	 	$	.55	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financial Position — At Year End	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	509,966	 	 	$	568,900	 	 	$	697,552	 	 	$	661,983	 	 	$	765,260	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	206,548	 	 	 	232,648	 	 	 	277,809	 	 	 	307,523	 	 	 	289,581	 	
Current liabilities	 	 	169,025	 	 	 	96,970	 	 	 	158,475	 	 	 	134,727	 	 	 	128,575	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Working capital	 	 	37,523	 	 	 	135,678	 	 	 	119,335	 	 	 	172,796	 	 	 	161,006	 	
Other assets	 	 	145,000	 	 	 	137,347	 	 	 	205,773	 	 	 	203,160	 	 	 	279,958	 	
Property, plant and equipment — net	 	 	158,418	 	 	 	198,905	 	 	 	213,970	 	 	 	151,300	 	 	 	195,722	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term debt, less current portion	 	 	38,890	 	 	 	169,546	 	 	 	167,253	 	 	 	198,275	 	 	 	249,524	 	
Other long term liabilities	 	 	5,682	 	 	 	6,396	 	 	 	4,014	 	 	 	12,922	 	 	 	12,667	 	
Deferred income taxes	 	 	38,371	 	 	 	43,149	 	 	 	50,540	 	 	 	35,401	 	 	 	35,093	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shareholders’ Equity	 	 	257,998	 	 	 	252,839	 	 	 	317,270	 	 	 	280,659	 	 	$	339,401	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Shares Outstanding	 	 	35,286,129	 	 	 	35,235,636	 	 	 	35,180,192	 	 	 	35,067,230	 	 	 	34,806,393	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book Value Per Common Share	 	$	7.31	 	 	$	7.18	 	 	$	9.02	 	 	$	8.00	 	 	$	9.75	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dividends(3)	 	$	8,436	 	 	$	8,451	 	 	$	17,495	 	 	$	7,174	 	 	$	6,947	 	
Dividends per Common Share(3)	 	 	0.24	 	 	 	0.24	 	 	 	0.50	 	 	 	0.20	 	 	 	0.20	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Basic Common Shares	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Outstanding during the year	 	 	35,266,939	 	 	 	35,211,811	 	 	 	35,140,581	 	 	 	34,978,269	 	 	 	34,724,488	 	

 

			
(1)		In 2009, the Company had impairment charges of $5.5 million related to certain property, plant and equipment related to the restructuring plans in its manufacturing segments. The fourth quarter of 2008, includes a goodwill impairment charge of $60.1 million related to the Company’s Automotive and Custom segment and impairment charges of $10.0 million for long-lived assets in the Lawn and Garden Segment.	
 		
(2)		A non-operating income gain of $26.8 million ($35.0 million, net of related expenses) was recognized during the fourth quarter of 2007. This income resulted from a termination fee paid in connection with the Company’s proposed merger.	
 		
(3)		Dividends in 2007 include a special dividend for $9.9 million accrued but not paid until 2008.	

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ITEM 7.  	Management’s Discussion and Analysis of Results of Operations and Financial Condition	
 
Executive Overview
 
The Company conducts its business activities in four distinct business segments, including three in manufacturing and one in distribution. The manufacturing segments consist of: Material Handling, Lawn and Garden, and Automotive and Custom.
 
In our manufacturing segments, the Company designs, manufactures, and markets a variety of plastic and rubber products. These products range from plastic reusable material handling containers and small parts storage bins to plastic horticultural pots and hanging baskets, decorative resin planters, plastic and rubber OEM parts, tire repair materials, and custom plastic and rubber products. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and undervehicle service on passenger, heavy truck and off-road vehicles.
 
Results of Operations: 2009 versus 2008
 
Net Sales from Continuing Operations:

Segment	 	2009	 	 	2008	 	 	Change	 	 	% Change	 	
 		
Lawn & Garden	 	$	220.3	 	 	$	272.8	 	 	$	(52.5	)	 	 	(19	)%	
Material Handling	 	$	254.1	 	 	$	261.2	 	 	$	(7.1	)	 	 	(3	)%	
Distribution	 	$	163.0	 	 	$	187.1	 	 	$	(24.1	)	 	 	(13	)%	
Auto & Custom	 	$	86.0	 	 	$	119.7	 	 	$	(33.7	)	 	 	(28	)%	
Inter-segment elimination	 	$	(21.5	)	 	$	(27.3	)	 	$	(5.7	)	 	 	(21	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL	 	$	701.8	 	 	$	813.5	 	 	$	(111.7	)	 	 	(14	)%	

 
Net sales for the 2009 were adversely affected by the weakness in the general economy, which impacted all segments of the Company’s business. The sales decline was primarily due to lower sales volumes. In addition, lower selling prices reduced sales approximately $22 million and sales declined $13 million from the adverse effect of foreign currency translation, primarily the Canadian dollar.
 
Net sales in the Lawn and Garden segment in 2009 were down $52.5 million or 19% compared to 2008. Approximately $10.4 million of the decrease was due to foreign currency translation from the unfavorable impact of the exchange rates for the Canadian dollar. Excluding the impact of foreign currency translation, sales declined due to reduced volumes of $36.8 million and $5.3 million resulting from lower selling prices.
 
In the Material Handling segment, sales decreased $7.1 million or 3% in 2009 compared to the prior year. The decrease reflects the impact of $14.3 million from lower selling prices and $2.3 million of unfavorable impact from foreign currency translation, which was partially offset by higher volumes. Sales of custom molded pallets offset significant declines for other reusable containers and storage systems.
 
Net sales in the Distribution segment decreased $24.1 million or 13% in 2009 compared to 2008. Sales were down $17.6 million due to lower volumes from softer sales of replacement tires and the impact of a weak economy which reduced miles driven. These factors reduced demand for the Company’s tire service and retread consumable supplies. In addition, sales of equipment in the Distribution segment continued to be weak as tire dealers, auto dealers, fleet and other customers reduced capital purchases. Slightly lower selling prices also contributed to the decline in sales in 2009.
 
In the Auto and Custom segment, net sales in 2009 decreased $33.7 million, or 28% compared to 2009. The decrease is due to significant volume declines in the automotive, recreational vehicle, marine and custom markets.

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Cost of Sales & Gross Profit from Continuing Operations:

Cost of Sales and Gross Profit	 	2009	 	 	2008	 	
 		
Cost of sales	 	$	530.9	 	 	$	616.9	 	
Gross profit	 	$	170.9	 	 	$	196.7	 	
Gross profit as a percentage of sales	 	 	24.3	%	 	 	24.2	%	

Gross profit margin in 2009 of 24.3% was virtually unchanged compared to 2008. Raw material costs, primarily for plastic resins, were lower in 2009 compared to the prior year. In addition, the liquidation of inventories valued at LIFO cost reduced cost of sales by approximately $4.0 million in 2009. The impact of lower raw material costs and the liquidation of LIFO inventories was offset by reductions in selling prices, unfavorable product mix and increased unabsorbed overhead due to lower volumes.
 
Selling, General and Administrative (“SG&A”) Expenses from Continuing Operations:

SG&A Expenses	 	2009	 	2008	 	Change	
 		
SG&A expenses	 	$	148.3	 	 	$	161.2	 	 	$	(12.9	)	
SG&A expenses as a percentage of sales	 	 	21.1	%	 	 	19.8	%	 	 	(1.3	)	

Selling and administrative expenses decreased $12.9 million or 8% compared with 2008. Expenses in 2009 include charges of approximately $16.6 million for consulting fees, severance, movement of machinery and equipment and other restructuring activities of the Company’s manufacturing businesses. SG&A expenses in 2008 included $7.4 million of charges related to consulting and severance costs in restructuring the Company’s Lawn and Garden business. Excluding these charges, SG&A expenses in 2009 declined $22.1 million compared to 2008, primarily from reduced freight and selling expenses due to lower sales volumes and savings from restructuring and cost control initiatives.
 
Impairment Charges from Continuing Operations:
 
In 2009, the Company continued the implementation of restructuring plans and productivity programs in its manufacturing businesses. In connection with these activities, the Company recorded impairment charges of $2.0 million related to restructuring its Lawn and Garden business, $1.3 million for its Material Handling business, and $2.2 million in the Auto and Custom Segment. The impairment charges are the result of closing manufacturing facilities in 2009.
 
In 2008, the Company recorded impairment charges of $70.1 million. This includes a charge of $60.1 million for goodwill in the Automotive and Custom Segment. The impairment was attributable to the significant decline in demand over the latter part of 2008 and unfavorable projections for sales in the automotive, heavy truck, recreational vehicle, marine and other industrial markets at the end of 2008. Also, in connection with the Company’s restructuring of the Lawn and Garden business, a charge of $10.0 million was recorded to reflect the impairment of certain property, plant, and equipment and intangible assets.
 
Interest Expense from Continuing Operations:

Net Interest Expense	 	2009	 	 	2008	 	 	Change	 	 	% Change	 	
 		
Interest expense	 	$	8.3	 	 	$	11.3	 	 	$	(3.0	)	 	 	(27	)%	
Outstanding borrowings	 	$	104.3	 	 	$	171.6	 	 	$	(67.3	)	 	 	(39	)%	
Average borrowing rate	 	 	5.25	%	 	 	5.81	%	 	 	(.56	)	 	 	(10	)%	

Net interest expense in 2009 decreased $3.0 million because of lower average borrowing levels and lower interest rates.

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Income Before Taxes from Continuing Operations:

Segment	 	2009	 	 	2008	 	 	Change	 	 	% Change	 	
 		
Lawn & Garden	 	$	16.7	 	 	$	(1.8	)	 	$	18.5	 	 	 	—	 	
Material Handling	 	$	13.6	 	 	$	26.6	 	 	$	(13.0	)	 	 	(49	)%	
Distribution	 	$	13.7	 	 	$	17.5	 	 	$	(3.8	)	 	 	(22	)%	
Auto & Custom	 	$	0.8	 	 	$	(54.2	)	 	$	55.0	 	 	 	—	 	
Corporate and interest	 	$	(35.9	)	 	$	(34.2	)	 	$	(1.7	)	 	 	(5	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss)	 	$	8.8	 	 	$	(46.0	)	 	$	54.8	 	 	 	—	 	

 
Income before taxes in 2009 was $8.8 million compared to a loss of $46.0 million in 2008. Results were significantly impacted by restructuring and impairment charges totaling $24.8 million in 2009 and $78.1 million in 2008, including a $60.1 million goodwill impairment charge.

Income Taxes from Continuing Operations	 	2009	 	 	2008	 	
 		
Income (loss) before taxes	 	$	8.8	 	 	$	(46.0	)	
Income tax (benefit) expense	 	$	1.8	 	 	$	(0.3	)	
Effective tax rate	 	 	20.8	%	 	 	0.6	%	

The effective tax rate increased to 20.8% in 2009 compared to 0.6% in 2008. The 20.8% effective rate for 2009 is lower than the 35% U.S. Federal statutory rate due in part to the mix of domestic and foreign composition of income and the related foreign tax rate differences. Also, in 2009 the Company made an adjustment to record previously unrecognized deferred tax assets which increased the income tax benefit and deferred tax assets by approximately $0.4 million. The Company determined that this adjustment was immaterial to its current and prior period financial statements. In addition, in 2009 the Company recognized tax benefits of $0.3 million from a reduction in valuation allowances and approximately $0.2 million from a reduction of uncertain tax liabilities. The effective rate of 0.6% in 2008 was primarily due to the impact of the $41.9 million portion of goodwill impairment that was not deductible for tax purposes.
 
Results of Operations: 2008 versus 2007
 
Net Sales from Continuing Operations:

Segment	 	2008	 	 	2007	 	 	Change	 	 	% Change	 	
 		
Lawn & Garden	 	$	272.8	 	 	$	300.9	 	 	$	(28.1	)	 	 	(9	)%	
Material Handling	 	$	261.2	 	 	$	267.2	 	 	$	(6.0	)	 	 	(2	)%	
Distribution	 	$	187.1	 	 	$	203.2	 	 	$	(16.1	)	 	 	(8	)%	
Auto & Custom	 	$	119.7	 	 	$	107.8	 	 	$	11.9	 	 	 	11	%	
Inter-segment elimination	 	$	(27.3	)	 	$	(23.4	)	 	$	(3.9	)	 	 	(16	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL	 	$	813.5	 	 	$	855.7	 	 	$	(42.2	)	 	 	(5	)%	

 
Net sales for 2008 were $813.5 million, a decrease of 5% from the $855.7 million reported in 2007. Sales in 2008 were adversely affected by the weakness in the general economy, which impacted virtually all segments of the Company’s business and all markets in which the Company sells. The sales decline is due to lower sales volumes which more than offset the benefit of approximately $38 million from increased selling prices.
 
Net sales in the Lawn and Garden segment in 2008 were down $28.1 million or 9% compared to 2007. The decline in sales in 2008 is due to lower unit volumes because of reduced consumer purchasing due to the weak economy and a reduction in new housing construction. In the Lawn and Garden Segment, the impact of reduced volume more than offset the increase of approximately $20.1 million due to higher selling prices. In the Material Handling segment, sales decreased $6.0 million or 2% in 2008 compared to the prior year. The decrease reflects the impact of volume declines in automotive, industrial and other sectors which offset the benefit of approximately $15.3 million from price increases.

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Net sales in the Distribution segment decreased $16.1 million or 8% in 2008 compared to the prior year. Sales were down due to lower unit volumes of $15.6 million from softer sales of replacement tires and the impact of higher fuel prices and a weak economy which reduced miles driven. These factors reduced demand for the Company’s tire service and retread consumable supplies. In addition, sales of equipment in the Distribution segment were weak as tire dealers, auto dealers, fleet and other customers deferred capital purchases. In the Automotive and Custom segment, net sales in 2008 increased $11.9 million, or 11% compared to the prior year, as higher selling prices of $3.6 million and gains in niche custom molding markets offset significant volume declines in automotive and heavy truck markets.
 
Cost of Sales & Gross Profit from Continuing Operations:

Cost of Sales and Gross Profit	 	2008	 	 	2007	 	
 		
Cost of sales	 	$	616.9	 	 	$	628.7	 	
Gross profit	 	$	196.7	 	 	$	227.0	 	
Gross profit as a percentage of sales	 	 	24.2	%	 	 	26.5	%	

Gross profit margin declined to 24.2% in 2008 compared with 26.5% in the prior year. The decline in gross profit and margin was primarily due to significantly higher raw material costs, particularly for plastic resins. Prices for high-density polyethylene and polypropylene resins were, on average, more than 20% higher in 2008 compared to 2007. In addition, lower volumes resulting from weakness in the U.S. economy reduced capacity utilization in the Company’s manufacturing businesses and increased unabsorbed manufacturing overhead costs. The negative impact of higher raw material costs and reduced volumes in 2008 more than offset the reduction in cost from 2007 which included, $7.0 million of restructuring charges and purchase accounting adjustments.
 
Selling, General and Administrative (“SG&A”) Expenses from Continuing Operations:

SG&A Expenses	 	2008	 	2007	 	Change	
 		
SG&A expenses	 	$	161.2	 	 	$	181.7	 	 	$	(20.5	)	
SG&A expenses as a percentage of sales	 	 	19.8	%	 	 	21.2	%	 	 	(1.4	)	

Selling and administrative expenses decreased $20.5 million or 11.3% compared with 2007. The reduction in SG&A expense in 2008 reflects the impact of lower sales volumes on selling expenses, including shipping and handling costs of $4.7 million. SG&A expenses in 2008 contain unusual items of approximately $7.4 million, including approximately $5.7 million for consulting fees and other expenses incurred in connection with the restructuring of its Lawn & Garden business while expenses in 2007 included approximately $12.7 million of unusual charges, including: restructuring expenses, costs related to the Company’s proposed merger transaction and foreign currency transaction losses. Excluding the impact of the unusual items, operating expenses in 2008 were approximately 18.9% of sales compared with 19.7% in 2007. The improvement in operating expense leverage in 2008 reflects the benefit of restructuring programs undertaken in 2007 and ongoing cost control programs and productivity initiatives.
 
Impairment Charges from Continuing Operations:
 
The Company recorded impairment charges of $70.1 million in the fourth quarter of 2008. This includes a charge of $60.1 million for goodwill in the Automotive and Custom Segment. The impairment was attributable to the significant decline in demand over the latter part of 2008 and future projections for sales in the automotive, heavy truck, recreational vehicle, marine and other industrial markets served by the Automotive and Custom reporting unit. Also, in connection with the Company’s restructuring of the Lawn and Garden Segment, a charge of $10.0 million was recorded to reflect the impairment of certain property, plant, and equipment and intangible assets.

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Interest Expense from Continuing Operations:

Net Interest Expense	 	2008	 	 	2007	 	 	Change	 	 	% Change	 	
 		
Interest expense	 	$	11.3	 	 	$	15.3	 	 	$	(4.0	)	 	 	(26	)%	
Outstanding borrowings	 	$	171.6	 	 	$	170.9	 	 	$	0.7	 	 	 	1	%	
Average borrowing rate	 	 	5.81	%	 	 	5.95	%	 	 	(.14	)	 	 	(2	)%	

Net interest expense in 2008 decreased $4.0 million because of lower interest rates and lower average borrowing levels.
 
Income Before Taxes from Continuing Operations:

Segment	 	2008	 	 	2007	 	 	Change	 	 	% Change	 	
 		
Lawn & Garden	 	$	(1.8	)	 	$	0.9	 	 	$	(2.7	)	 	 	—	%	
Material Handling	 	$	26.6	 	 	$	40.4	 	 	$	(13.8	)	 	 	(34	)%	
Distribution	 	$	17.5	 	 	$	20.5	 	 	$	(3.0	)	 	 	(14.8	)%	
Auto & Custom	 	$	(54.2	)	 	$	8.4	 	 	$	(62.6	)	 	 	—	 	
Corporate and interest	 	$	(34.2	)	 	$	(13.5	)	 	$	(20.7	)	 	 	(153	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss)	 	$	(46.0	)	 	$	56.7	 	 	$	(102.7	)	 	 	(181	)%	

 
Key factors resulting in the 2008 loss include impairment charges of $70.1 million on certain goodwill and other long lived assets, lower sales volumes due to softness in the economy and significantly higher raw material costs. In 2007, the impact of restructuring expenses, foreign currency transaction losses, costs incurred in connection with the proposed merger agreement and other unusual items reduced income before taxes by an aggregate $19.7 million.
 
Income Taxes from Continuing Operations:

 	 	2008	 	 	2007	 	
 		
Income (loss) before taxes	 	$	(46.0	)	 	$	56.7	 	
Income tax (benefit) expense	 	$	(0.3	)	 	$	20.0	 	
Effective tax rate	 	 	0.6	%	 	 	35.2	%	

The effective tax rate of 0.6% in 2008 was lower than the statutory rate of 35%, primarily because of the impact of the $41.9 million portion of the goodwill impairment that was not deductible for tax purposes. As discussed above, the Company recorded a total impairment charge of $60.1 million for goodwill in the Automotive and Custom Segment.
 
Financial Condition & Liquidity and Capital Resources
 
Cash provided by operating activities from continuing operations was $73.2 million for the year ended December 31, 2009 compared to $61.0 million in 2008. The increase of $12.2 million was primarily attributable to an increase of approximately $26.3 million of cash from working capital in 2009 compared to the prior year. Income from continuing operations was $7.0 million in 2009 compared to a loss of $45.7 million in 2008. Income in 2009 included impairment charges, depreciation and other non-cash charges of $39.4 million compared to non-cash charges in 2008 of $106.1 million, including goodwill and fixed asset impairments of $70.1 million.
 
Cash provided from working capital was $26.8 million in 2009 compared to $0.6 million in 2008. During 2009, cash was provided by working capital from reductions in inventories of $10.9 million and accounts receivable of $7.4 million as a result of restructuring activities and aggressive working capital initiatives. In addition, cash of $12.5 million was provided by an increase in accounts payable and accruals. In 2008, working capital was unfavorably impacted by a $31.8 million reduction in accounts payable and accruals, in part due to payment of taxes of $12.6 million and expenses of $5.8 million related to the $35 million fee received in December 2007 in connection with the termination of a proposed merger agreement.

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Capital expenditures were approximately $16.0 million in 2009 compared to $40.6 million in 2008. Capital spending in 2009 was lower than the preceding year when higher than normal investments were made for new manufacturing, molding and automated handling technology. The Company anticipates capital spending to be in the range of $20 to $25 million for 2010. In 2009, the Company also paid $1.2 million for the remaining 50% interest in Amerikan LLC, a previously held equity investment, and received approximately $8.4 million in cash proceeds from the sale of property, plant & equipment.
 
Total debt at December 31, 2009 was approximately $104.3 million compared with $171.6 million at December 31, 2008. Of the debt outstanding at December 31, 2009, approximately $65.4 million is currently payable, including $65 million of Senior Notes due in December 2010. The Company’s Credit Agreement provides available borrowing up to $250 million and, as of December 31, 2009, there was approximately $248 million available under this agreement. The Credit Agreement expires in October 2011 and, as of December 31, 2009 the Company was in compliance with all its debt covenants. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio and a leverage ratio, defined as earnings before interest, taxes, depreciation and amortization, as adjusted, compared to total debt. The ratios as of and for the period ended December 31, 2009 are shown in the following table:

 	 	Required Level	 	Actual Level	
 		
Interest Coverage Ratio	 	 	2.5 to 1 (minimum	)	 	 	4.6	 	
Leverage Ratio	 	 	3.5 to 1 (maximum	)	 	 	1.5	 	

The Company believes that cash flows from operations and available borrowing under its Credit Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, and debt service into the foreseeable future.
 
The following summarizes the Company’s estimated future cash outflows from financial contracts and commitments:

 	 	Less than	 	 	2-3	 	 	4-5	 	 	 	 	 	 	 	
 	 	1 Year	 	 	Years	 	 	Years	 	 	Thereafter	 	 	Total	 	
 	 	(Amounts in Thousands)	 	
 		
Principal payments on debt	 	$	65,425	 	 	$	3,250	 	 	$	35,640	 	 	 	0	 	 	$	104,315	 	
Interest	 	 	6,540	 	 	 	6,850	 	 	 	5,024	 	 	 	0	 	 	 	18,414	 	
Lease payments	 	 	9,784	 	 	 	11,886	 	 	 	7,020	 	 	 	22,610	 	 	 	51,300	 	
Retirement benefits	 	 	396	 	 	 	812	 	 	 	832	 	 	 	5,597	 	 	 	7,637	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	$	82,145	 	 	$	22,798	 	 	$	48,516	 	 	$	28,207	 	 	$	181,666	 	

 
		
Item 7A.  	Quantitative and Qualitative Disclosures About Market Risk	
 
Market Risk and Derivative Financial Instruments
 
The Company has certain financing arrangements that require interest payments based on floating interest rates. The Company’s financial results are subject to changes in the market rate of interest. At present, the Company has not entered into any interest rate swaps or other derivative instruments to fix the interest rate on any portion of its financing arrangements with floating rates. Accordingly, based on current debt levels at December 31, 2009, if market interest rates increase one percent, the Company’s interest expense would increase approximately $24,000 annually.
 
Some of the Company’s subsidiaries operate in foreign countries and their financial results are subject to exchange rate movements. The Company has operations in Canada with foreign currency exposure, primarily due to sales made from businesses in Canada to customers in the United States. These sales are denominated in US dollars. In addition, the Company’s subsidiary in Brazil has loans denominated in U.S. dollars. In the fourth quarter of 2007, the Company began a systematic program to limit its exposure to fluctuations in exchange rates related to certain assets and liabilities of its operations in Canada and Brazil that are denominated in U.S. dollars. The net exposure generally ranges from $5 to $10 million. The foreign currency contracts and arrangements created under this program are not designated as hedged items under FASB ASC 815, Derivatives and Hedging, and accordingly, the changes in the fair value of the foreign currency arrangements, which have been immaterial, are recorded in the

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income statement. The Company’s foreign currency arrangements are generally three months or less and, as of December 31, 2009, the Company had no foreign currency arrangements or contracts in place.
 
The Company uses certain commodities, primarily plastic resins, in its manufacturing processes. The cost of operations can be affected as the market for these commodities changes. The Company currently has no derivative contracts to hedge this risk; however, the Company also has no significant purchase obligations to purchase fixed quantities of such commodities in future periods. Significant future increases in the cost of plastic resin or other adverse changes in the general economic environment could have a material adverse impact on the Company’s financial position, results of operations or cash flows.
 
Critical Accounting Policies
 
Our discussion and analysis of the Company’s financial condition and results of operations are based on the accompanying consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America. As indicated in the Summary of Significant Accounting Policies included in the notes to the consolidated financial statements (included in Item 8 of this report), the amount of assets, liabilities, revenue and expenses reported are affected by estimates and judgements that are necessary to comply with generally accepted accounting principles. We base our estimates on prior experience and other assumptions that we consider reasonable to our circumstances. We believe the following matters may involve a high degree of judgement and complexity.
 
Bad Debts — The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company also reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due the Company could be reduced by a material amount.
 
Inventory — Inventories are valued at the lower of cost or market. Cost is determined by the last-in, first-out (LIFO) method for approximately 26 percent of the Company’s inventories and the first-in, first-out (FIFO) method for all other inventories. Where appropriate, standard cost systems are utilized for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs. Estimates of lower of cost or market value of inventory are determined based upon current economic conditions, historical sales quantities and patterns and, in some cases, the specific risk of loss on specifically identified inventories.
 
Goodwill — Goodwill is subjected to annual impairment testing, unless significant changes in circumstances indicate a potential impairment may have occurred sooner. Goodwill impairment testing requires, in part, that we estimate the fair value of our business units which, in turn, requires that we make judgments concerning future cash flows and appropriate discount rates for those businesses. Fair values are established using comparative market multiples in the current market conditions and discounted cash flows. The discount rates used are based on the weighted average cost of capital determined for each of the Company’s reporting units and ranged from 9.8% to 13.0% in 2009. In addition we make certain judgments about the selection of comparable companies used in determining market multiples in valuing our business units. We also compare our book value and the estimates of fair value of the reporting units to our market capitalization as of and at dates near the annual testing date. Management uses this comparison as additional evidence of the fair value of the Company, as our market capitalization may be suppressed by other factors such as the control premium associated with a controlling shareholder, our leverage or general expectations regarding future operating results and cash flows. In situations where the implied value of the Company under the Income or Market Approach are significantly different than our market capitalization we re-evaluate and adjust, if necessary, the assumptions underlying our Income and Market Approach models.
 
Contingencies — In the ordinary course of business, we are involved in various legal proceedings and contingencies. We have recorded liabilities for these matters in accordance with FASB ASC 450, Contingencies. ASC 450 requires a liability to be recorded based on our estimate of the probable cost of the resolution of a contingency. The actual resolution of these contingencies may differ from our estimates. If a contingency were settled for an amount greater than our estimates, a future charge to income would result. Likewise, if a contingency were settled for an amount that is less than our estimate, a future credit to income would result.

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Income Taxes — Deferred income taxes are provided to recognize the effect of temporary differences between financial and tax reporting. Deferred income taxes are not provided for undistributed earnings of foreign consolidated subsidiaries as it is our intention to reinvest such earnings for an indefinite period of time. The Company has significant operations outside the United States and in jurisdictions with statutory tax rates lower than in the United States. As a result, significant tax and treasury planning of future operations are necessary to determine the proper amounts of tax assets, liabilities and expense to be recognized. FASB ASC 740 Income Taxes, requires that deferred tax assets be reduced by valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. The Company evaluates the recovery of its deferred tax assets by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income inherently rely heavily on estimates.
 
Also, significant judgment is required in determining the Company’s tax expense and in evaluating its tax positions, including evaluating uncertainties under ASC 740. We review our tax positions quarterly and adjust the balances as new information becomes available.
 
Recent Pronouncements
 
In June 2009, the FASB issued Statement No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles” (SFAS 168). SFAS 168 replaces FASB Statement No. 162, “The Hierarchy of Generally Accepted Accounting Principles”, and establishes the FASB Accounting Standards Codification (the Codification) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). SFAS 168 is effective for interim and annual periods ending after September 15, 2009. Beginning in the third quarter of 2009, the Company’s financial statements refer to the Codification.
 
In December 2007, the FASB issued Statement No. 141R “Business Combinations” and FASB Statement No. 160, “Non-Controlling Interests in Consolidated Financial Statements” (included in FASB ASC 805). Statements 141R and 160 require most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at “full fair value” and require non-controlling interests (previously referred to as minority interests) to be reported as a component of equity, which changes the accounting for transactions with non-controlling shareholders. The adoption of these standards did not have a material impact to the Company’s statement of financial position, result of operations or cash flows. The Company will apply the guidance of the statements to business combinations in 2009 and beyond.
 
Effective January 1, 2009, the Company adopted SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities, and amendment of SFAS No. 133” (FASB ASC 815). The Statement requires enhanced disclosures about an entity’s derivative and hedging activities. The adoption of this standard did not have a material impact to the Company’s statement of financial position, results of operations or cash flows.
 
The Company adopted SFAS No. 157, “Fair Value Measurements” (FASB ASC 820) as of January 1, 2008. SFAS 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. FASB Staff Position 157-2, “Effective Date of FASB Statement No. 157,” applies to nonfinancial assets and nonfinancial liabilities and was effective January 1, 2009. The adoption did not have a material effect on the Company’s statement of financial position, results of operations or cash flows.

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ITEM 8.  	Financial Statements and Supplementary Data	
 
Summarized Quarterly Results of Operations
Thousands of Dollars, Except Per Share Data

Quarter Ended 2009	 	March 31	 	 	June 30	 	 	Sept. 30	 	 	Dec. 31	 	 	Total	 	
 		
Net Sales	 	$	182,689	 	 	$	165,439	 	 	$	165,412	 	 	$	188,294	 	 	$	701,834	 	
Gross Profit	 	 	55,480	 	 	 	41,305	 	 	 	36,526	 	 	 	37,585	 	 	 	170,895	 	
Income (loss) from continuing operations	 	 	6,257	 	 	 	(725	)	 	 	(580	)	 	 	2,042	 	 	 	6,995	 	
Per Basic and Diluted Share	 	 	.18	 	 	 	(.02	)	 	 	(.02	)	 	 	.06	 	 	 	.20	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Quarter Ended 2008	 	March 31	 	 	June 30	 	 	Sept. 30	 	 	Dec. 31	 	 	Total	 	
 		
Net Sales	 	$	234,295	 	 	$	200,060	 	 	$	199,880	 	 	$	179,306	 	 	$	813,541	 	
Gross Profit	 	 	57,872	 	 	 	47,600	 	 	 	46,736	 	 	 	44,455	 	 	 	196,662	 	
Income (loss) from continuing operations	 	 	8,528	 	 	 	2,932	 	 	 	1,700	 	 	 	(58,909	)	 	 	(45,749	)	
Per Basic and Diluted Share	 	 	.24	 	 	 	.08	 	 	 	.05	 	 	 	(1.67	)	 	 	(1.30	)	

In the fourth quarter of 2009, the Company recognized a gain of approximately $3.3 million from the sale of a closed manufacturing facility in its Lawn and Garden Segment. In addition, fourth quarter charges of $1.3 million for impairment of long lived assets and $4.2 million for severance, lease liability and other costs were incurred in connection with restructuring activities in its Material Handling and Lawn and Garden businesses.
 
In the fourth quarter of 2008, the Company recognized a goodwill impairment charge of $60.1 million related to its Automotive and Custom segment and charges of $13.5 million for impairment of long-lived assets and other expenses in connection with the restructuring of its Lawn and Garden Segment. In addition, the fourth quarter of 2008 benefited approximately $3.5 million from the reduction of accrued bonus and profit sharing expenses.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
The Board of Directors
Myers Industries, Inc.:
 
We have audited the accompanying statements of consolidated financial position of Myers Industries, Inc. and subsidiaries (Company) as of December 31, 2009 and 2008, and the related statements of consolidated (loss) income, shareholders’ equity and comprehensive (loss) income, and cash flows for each of the years in the three-year period ended December 31, 2009. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Myers Industries, Inc. and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.
 
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 12, 2010, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
 
/s/ KPMG LLP
 
Cleveland, Ohio
March 12, 2010

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Statements of Consolidated (Loss) Income

For The Years Ended December 31, 2009, 2008 and 2007
(Dollars in thousands, except per share data) 

 	 	2009	 	 	2008	 	 	2007	 	
 		
Net sales	 	$	701,834	 	 	$	813,541	 	 	$	855,705	 	
Cost of sales	 	 	530,939	 	 	 	616,879	 	 	 	628,748	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	170,895	 	 	 	196,662	 	 	 	226,957	 	
Selling expenses	 	 	70,999	 	 	 	88,819	 	 	 	95,007	 	
General and administrative expenses	 	 	77,297	 	 	 	72,394	 	 	 	86,684	 	
Impairment charges	 	 	5,462	 	 	 	70,148	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	153,758	 	 	 	231,361	 	 	 	181,691	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating (loss) income	 	 	17,137	 	 	 	(34,699	)	 	 	45,266	 	
Other income, net	 	 	0	 	 	 	0	 	 	 	26,750	 	
Interest	 	 	 	 	 	 	 	 	 	 	 	 	
Income	 	 	(835	)	 	 	(1,262	)	 	 	(284	)	
Expense	 	 	9,139	 	 	 	12,598	 	 	 	15,576	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	8,304	 	 	 	11,336	 	 	 	15,292	 	
Income (loss) from continuing operations before income taxes	 	 	8,833	 	 	 	(46,035	)	 	 	56,724	 	
Income tax (benefit) expense	 	 	1,838	 	 	 	(286	)	 	 	19,985	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) income from continuing operations	 	 	6,995	 	 	 	(45,749	)	 	 	36,739	 	
Income (loss) from discontinued operations, net of tax	 	 	(7,678	)	 	 	1,256	 	 	 	17,997	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(683	)	 	$	(44,493	)	 	$	54,736	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) income per common share	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	.20	 	 	$	(1.30	)	 	$	1.05	 	
Discontinued operations	 	 	(.22	)	 	 	.04	 	 	 	.51	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(.02	)	 	$	(1.26	)	 	$	1.56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	.20	 	 	$	(1.30	)	 	$	1.04	 	
Discontinued operations	 	 	(.22	)	 	 	.04	 	 	 	.51	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(.02	)	 	$	(1.26	)	 	$	1.55	 	

 
The accompanying notes are an integral part of these statements.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Statements of Consolidated Financial Position

As of December 31, 2009 and 2008
(Dollars in thousands) 

 	 	2009	 	 	2008	 	
 		
Assets	 	 	 	 	 	 	 	 	
Current Assets	 	 	 	 	 	 	 	 	
Cash	 	$	4,728	 	 	$	10,417	 	
Accounts receivable-less allowances of $4,402 and $6,489 respectively	 	 	86,674	 	 	 	94,780	 	
Inventories	 	 	 	 	 	 	 	 	
Finished and in-process products	 	 	65,522	 	 	 	79,381	 	
Raw materials and supplies	 	 	34,679	 	 	 	34,152	 	
 	 	 	 	 	 	 	 	 	
 	 	 	100,201	 	 	 	113,533	 	
Prepaid expenses	 	 	8,612	 	 	 	4,347	 	
Deferred income taxes	 	 	6,333	 	 	 	9,571	 	
 	 	 	 	 	 	 	 	 	
Total Current Assets	 	 	206,548	 	 	 	232,648	 	
Other Assets	 	 	 	 	 	 	 	 	
Goodwill	 	 	111,927	 	 	 	109,862	 	
Patents and other intangible assets	 	 	20,003	 	 	 	22,291	 	
Other	 	 	13,070	 	 	 	5,194	 	
 	 	 	 	 	 	 	 	 	
 	 	 	145,000	 	 	 	137,347	 	
Property, Plant and Equipment	 	 	 	 	 	 	 	 	
Land	 	 	3,989	 	 	 	5,403	 	
Buildings and leasehold improvements	 	 	53,283	 	 	 	79,419	 	
Machinery and equipment	 	 	370,042	 	 	 	431,734	 	
 	 	 	 	 	 	 	 	 	
 	 	 	427,314	 	 	 	516,556	 	
Less allowances for depreciation and amortization	 	 	(268,896	)	 	 	(317,651	)	
 	 	 	 	 	 	 	 	 	
 	 	 	158,418	 	 	 	198,905	 	
 	 	 	 	 	 	 	 	 	
 	 	$	509,966	 	 	$	568,900	 	

 
The accompanying notes are an integral part of these statements.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Statements of Consolidated Financial Position

As of December 31, 2009 and 2008
(Dollars in thousands, except share data) 

 	 	2009	 	 	2008	 	
 		
Liabilities and Shareholders’ Equity	 	 	 	 	 	 	 	 	
Current Liabilities	 	 	 	 	 	 	 	 	
Accounts payable	 	$	63,916	 	 	$	54,993	 	
Accrued expenses	 	 	 	 	 	 	 	 	
Employee compensation	 	 	14,008	 	 	 	12,989	 	
Taxes, other than income taxes	 	 	1,187	 	 	 	1,813	 	
Income taxes	 	 	6,405	 	 	 	3,221	 	
Accrued interest	 	 	397	 	 	 	791	 	
Other	 	 	17,687	 	 	 	21,142	 	
Current portion of long-term debt	 	 	65,425	 	 	 	2,021	 	
 	 	 	 	 	 	 	 	 	
Total Current Liabilities	 	 	169,025	 	 	 	96,970	 	
Long-term debt, less current portion	 	 	38,890	 	 	 	169,546	 	
Other liabilities	 	 	5,682	 	 	 	6,396	 	
Deferred income taxes	 	 	38,371	 	 	 	43,149	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)	 	 	0	 	 	 	0	 	
Common Shares, without par value (authorized 60,000,000 shares; outstanding 35,286,129 and 35,235,636 shares, respectively)	 	 	21,474	 	 	 	21,451	 	
Additional paid-in capital	 	 	278,894	 	 	 	275,987	 	
Accumulated other comprehensive income (loss)	 	 	6,777	 	 	 	(4,570	)	
Retained (deficit) income	 	 	(49,147	)	 	 	(40,029	)	
 	 	 	 	 	 	 	 	 	
 	 	 	257,998	 	 	 	252,839	 	
 	 	 	 	 	 	 	 	 	
 	 	$	509,966	 	 	$	568,900	 	

 
The accompanying notes are an integral part of these statements.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES

Statements of Consolidated Shareholders’ Equity
and Comprehensive Income (Loss)

For The Years Ended December 31, 2009, 2008 and 2007
(Dollars in thousands, except share and per share data) 

 	 	 	 	 	 	 	 	 	 	 	Accumulated	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Additional	 	 	Comprehensive	 	 	Retained	 	 	Comprehensive	 	
 	 	Common Shares	 	 	Paid-In	 	 	(Loss)	 	 	Income	 	 	(Loss)	 	
 	 	Number	 	 	Amount	 	 	Capital	 	 	Income	 	 	(Deficit)	 	 	Income	 	
 		
Balance at December 31, 2006	 	 	35,067,230	 	 	$	21,348	 	 	$	270,836	 	 	$	12,497	 	 	$	(24,023	)	 	$	(50,521	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	54,736	 	 	 	54,736	 	
Sales under option plans	 	 	83,232	 	 	 	51	 	 	 	755	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Employees stock purchase plan	 	 	24,697	 	 	 	15	 	 	 	400	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Tax benefit for stock options exercised	 	 	–0–	 	 	 	–0–	 	 	 	161	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Dividend reinvestment plan	 	 	5,033	 	 	 	3	 	 	 	90	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Stock based compensation	 	 	–0–	 	 	 	–0–	 	 	 	1,376	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Foreign currency translation adjustment	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	7,564	 	 	 	–0–	 	 	 	7,564	 	
Dividends — $.50 per share	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(17,495	)	 	 	–0–	 	
Pension liability	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(8	)	 	 	–0–	 	 	 	(9	)	
Adoption of FIN 48	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(302	)	 	 	–0–	 	
Realization of amounts previously recognized in AOCI on sale of discontinued operations	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(10,733	)	 	 	–0–	 	 	 	(10,733	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2007	 	 	35,180,192	 	 	$	21,417	 	 	$	273,618	 	 	$	9,320	 	 	$	12,915	 	 	$	51,559	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	$	(44,493	)	 	$	(44,493	)	
Sales under option plans	 	 	16,407	 	 	 	20	 	 	 	319	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Employees stock purchase plan	 	 	32,566	 	 	 	10	 	 	 	115	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Tax benefit for stock options	 	 	–0–	 	 	 	–0–	 	 	 	5	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Dividend reinvestment plan	 	 	6,471	 	 	 	4	 	 	 	56	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Stock based compensation	 	 	–0–	 	 	 	–0–	 	 	 	1,875	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Foreign currency translation	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(11,728	)	 	 	–0–	 	 	 	(11,728	)	
Dividends — $.24 per share	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(8,451	)	 	 	–0–	 	
Pension liability	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(2,161	)	 	 	–0–	 	 	 	(2,161	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2008	 	 	35,235,636	 	 	$	21,451	 	 	$	275,987	 	 	$	(4,570	)	 	$	(40,029	)	 	$	(58,383	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(683	)	 	 	(683	)	
Restricted shares issued	 	 	11,750	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Employees stock purchase plan	 	 	23,828	 	 	 	14	 	 	 	135	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Dividend reinvestment plan	 	 	14,915	 	 	 	9	 	 	 	113	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Stock based compensation	 	 	–0–	 	 	 	–0–	 	 	 	2,660	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Foreign currency translation	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	10,643	 	 	 	–0–	 	 	 	10,643	 	
Dividends — $.24 per share	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	(8,436	)	 	 	–0–	 	
Pension liability	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	 	 	704	 	 	 	–0–	 	 	 	704	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2009	 	 	35,286,129	 	 	$	21,474	 	 	$	278,894	 	 	$	6,777	 	 	$	(49,147	)	 	$	10,664	 	

 
The accompanying notes are an integral part of these statements.

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MYERS INDUSTRIES, INC.AND SUBSIDIARIES
 
Statements of Consolidated Cash Flows
 
For the Years Ended December 31, 2009, 2008 and 2007
(Dollars in thousands)

 	 	2009	 	 	2008	 	 	2007	 	
 		
Cash Flows From Operating Activities	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(683	)	 	$	(44,493	)	 	$	54,736	 	
Net (income) loss of discontinued operations	 	 	7,678	 	 	 	(1,256	)	 	 	(17,997	)	
Non operating other income	 	 	–0–	 	 	 	–0–	 	 	 	(26,750	)	
Items not affecting use of cash	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment charges	 	 	5,462	 	 	 	70,148	 	 	 	–0–	 	
Depreciation	 	 	33,132	 	 	 	34,437	 	 	 	31,858	 	
Amortization of other intangible assets	 	 	3,136	 	 	 	3,344	 	 	 	3,212	 	
Non cash stock compensation	 	 	2,660	 	 	 	1,875	 	 	 	1,376	 	
Deferred taxes	 	 	(1,405	)	 	 	(3,339	)	 	 	(3,093	)	
Loss (gain) on disposition of property, plant and equipment	 	 	(3,621	)	 	 	(389	)	 	 	1,722	 	
Cash flow provided by (used for) working capital	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable	 	 	7,385	 	 	 	25,280	 	 	 	19,114	 	
Inventories	 	 	10,872	 	 	 	6,002	 	 	 	13,042	 	
Prepaid expenses	 	 	(3,962	)	 	 	1,102	 	 	 	547	 	
Accounts payable and accrued expenses	 	 	12,501	 	 	 	(31,757	)	 	 	18,570	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities of continuing operations	 	 	73,155	 	 	 	60,953	 	 	 	96,337	 	
Net cash (used for) provided by operating activities of discontinued operations	 	 	(817	)	 	 	996	 	 	 	732	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	 	72,338	 	 	 	61,949	 	 	 	97,069	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Investing Activities	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition of businesses, net of cash acquired	 	 	(1,177	)	 	 	–0–	 	 	 	(95,698	)	
Proceeds from merger termination	 	 	–0–	 	 	 	–0–	 	 	 	32,500	 	
Proceeds from sale of property, plant and equipment	 	 	8,401	 	 	 	1,576	 	 	 	–0–	 	
Additions to property, plant and equipment	 	 	(15,995	)	 	 	(40,577	)	 	 	(19,233	)	
Other	 	 	737	 	 	 	408	 	 	 	1,004	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used for investing activities of continuing operations	 	 	(8,034	)	 	 	(38,593	)	 	 	(81,428	)	
Net cash provided by (used for) investing activities of discontinued operations	 	 	10,036	 	 	 	(399	)	 	 	67,330	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used for) investing activities	 	 	2,002	 	 	 	(38,992	)	 	 	(14,098	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Financing Activities	 	 	 	 	 	 	 	 	 	 	 	 	
Repayment of long term debt	 	 	(6,950	)	 	 	–0–	 	 	 	(60,560	)	
Net borrowing (repayment) under credit facility	 	 	(62,160	)	 	 	7,356	 	 	 	(42,374	)	
Cash dividends	 	 	(8,436	)	 	 	(18,302	)	 	 	(7,645	)	
Proceeds from issuance of common stock	 	 	271	 	 	 	523	 	 	 	1,312	 	
Excess tax benefit from options exercised	 	 	–0–	 	 	 	5	 	 	 	161	 	
Deferred financing costs	 	 	–0–	 	 	 	–0–	 	 	 	(41	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used for financing activities of continuing operations	 	 	(77,275	)	 	 	(10,417	)	 	 	(109,146	)	
Net cash used for financing activities of discontinued operations	 	 	(4,000	)	 	 	–0–	 	 	 	(224	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used for financing activities	 	 	(81,275	)	 	 	(10,417	)	 	 	(109,370	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Exchange Rate Effect on Cash	 	 	1,246	 	 	 	(9,682	)	 	 	234	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (decrease) increase in cash	 	 	(5,689	)	 	 	2,858	 	 	 	(26,165	)	
Cash at January 1	 	 	10,417	 	 	 	7,559	 	 	 	33,724	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash at December 31	 	$	4,728	 	 	$	10,417	 	 	$	7,559	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Supplemental Disclosures of Cash Flow Information	 	 	 	 	 	 	 	 	 	 	 	 	
Cash paid during the year for
Interest	 	$	8,317	 	 	$	10,749	 	 	$	15,646	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income taxes	 	$	5,896	 	 	$	19,340	 	 	$	14,024	 	

 
The accompanying notes are an integral part of these statements.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted
 
Summary of Significant Accounting Policies
 
Basis of Presentation
 
The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (Company). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated results of the Company are immaterial investments which have been accounted for under the cost or equity method. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.
 
Translation of Foreign Currencies
 
All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive (loss) income as a separate component of shareholders’ equity.
 
Fair Value Measurement
 
In January 2008, the Company adopted guidance included in ASC 820, “Fair Value Measurements and Disclosures”, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied to U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. In January 2009, the Company adopted updated guidance included in ASC 820 with respect to non-financial assets and liabilities that are measured at fair value on a non-recurring basis. The adoption of this updated guidance did not have a material impact on the consolidated financial statements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:
 
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
 
Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.
 
Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.
 
The fair value of the Company’s cash, accounts receivable, accounts payable and accrued expenses are considered to have a fair value which approximates carrying value due to the nature and relative short maturity of these assets and liabilities.
 
The fair value of debt under the Company’s Credit Agreement approximates carrying value due to the floating interest rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s $100 million fixed rate senior notes was estimated at $102 million at December 31, 2009 using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements, which are considered level 2 inputs.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
Concentration of Credit Risk
 
Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company’s diversified operations, with customers spread across many industries and countries. The Company’s largest single customer accounts for approximately 13 percent of total sales, with no other customers greater than 3 percent. Outside of the United States, only Canada, which accounts for approximately ten percent of total sales, is significant to the Company’s operations. In addition, management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company also reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due the Company could be reduced by a material amount. Expense related to bad debts was approximately $861, $3,812 and $2,885 for the years 2009, 2008 and 2007, respectively.
 
Inventories
 
Inventories are stated at the lower of cost or market. For approximately 26 percent of its inventories, the Company uses the last-in, first-out (LIFO) method of determining cost. All other inventories are valued at the first-in, first-out (FIFO) method of determining cost.
 
If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $9,382, $12,043 and $13,714 higher than reported at December 31, 2009, 2008 and 2007, respectively. In 2009, 2008 and 2007, the liquidation of LIFO inventories decreased cost of sales, and therefore increased income (loss) before taxes from continuing operations by approximately $4.2 million, $0.8 million and $1.6 million respectively.
 
Property, Plant and Equipment
 
Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

Buildings	 	 	20 to 30 years	 	
Leasehold Improvements	 	 	7 to 10 years	 	
Machinery and Equipment	 	 	3 to 12 years	 	
Vehicles	 	 	1 to 3 years	 	

Long-Lived Assets
 
The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of whether measurement of impairment is required related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset. For any assets not deemed recoverable on the undiscounted basis, as well as assets held for disposal, the amount of any impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. At December 31, 2009 and 2008, the Company has approximately $11.9 million and $2.9 million, respectively, of property, plant, and equipment held for sale, which represents the lower of net book value or estimated fair value based on level 2 inputs, and is included in other assets on the accompanying statement

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
of consolidated financial position. In 2009, the Company recorded impairment charges of $5.5 million for impairment of certain property, plant and equipment as a result of restructuring its Material Handling and Lawn and Garden businesses. In 2008, the Company recorded $10.1 million for the impairment of certain property, plant, equipment and certain intangible assets in association with the restructuring of its Lawn and Garden businesses. In 2007, the Company recorded expense of $0.7 million to write down the value of certain assets of its Lawn and Garden business no longer used in production.
 
Revenue Recognition
 
The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title, which is at the time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.
 
Accumulated Other Comprehensive (Loss) Income
 
As of December 31, 2009, 2008, and 2007, the balance in the Company’s accumulated other comprehensive (loss) income is comprised of the following:

 	 	2009	 	 	2008	 	 	2007	 	
 		
Foreign currency translation adjustments	 	$	8,821	 	 	$	(1,822	)	 	$	9,906	 	
Pension adjustments	 	 	(2,044	)	 	 	(2,748	)	 	 	(586	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	$	6,777	 	 	$	(4,570	)	 	$	9,320	 	

 
Shipping and Handling
 
Shipping and handling expenses are classified as selling expenses in the accompanying statements of consolidated income (loss). The Company incurred shipping and handling costs of approximately $20.9 million, $28.9 million and $33.4 million for the years ended December 31, 2009, 2008 and 2007, respectively.
 
Stock Based Compensation
 
The Company has stock plans that provides for the granting of stock-based compensation to employees and, in certain instances, to non-employee directors. Shares are issued upon exercise from authorized, unissued shares. The Company records the costs of the plan under the provisions of FASB ASC 718, “Compensation — Stock Compensation”. For transactions in which we obtain employee services in exchange for an award of equity instruments, we measure the cost of the services based on the grant date fair value of the award. The Company recognizes the cost over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). Cash flows resulting from tax benefits for deductions in excess of compensation cost recognized are included in financing cash flows.
 
Income Taxes
 
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
 
In July 2006, the FASB issued Interpretation No. 48, Accounting of Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109, (included in FASB ASC 740, Income Taxes). ASC 740 provides detailed

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption and in subsequent periods. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within operations as income tax expense. The cumulative effect of applying the provisions of ASC 740, totaling $302, has been reported as an adjustment to the opening balance of our retained deficit as of January 1, 2007.
 
Goodwill and Intangible Assets
 
The Company is required to test for impairment on at least an annual basis. The Company conducts its annual impairment assessment as of October 1. In addition, the Company will test for impairment whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. Such events may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company’s customer base or its businesses, or a material negative change in its relationships with significant customers.
 
In evaluating goodwill for impairment the Company uses a combination of valuation techniques primarily using discounted cash flows to determine the fair values of its business reporting units and market based multiples as supporting evidence. Key assumptions, all of which are level 3 fair value inputs, include projections of future revenues and expenses, working capital, terminal values, discount rates and long term growth rates. The market multiples observed in sale transactions are determined separately for each reporting unit and discount rates are based on the weighted average cost of capital determined for each of the Company’s reporting units and ranged from 9.8% to 13.0% in 2009. In addition we make certain judgements about the selection of comparable companies used in determining market multiples in valuing our business units, as well as certain assumptions to allocate shared assets and liabilities to calculate values for each of our business units. The underlying assumptions used are based on historical actual experience and future expectations that are consistent with those used in the Company’s strategic plan. The Company compares the fair value of each of its reporting units to their respective carrying values, including related goodwill. We also compare our book value and the estimates of fair value of the reporting units to our market capitalization as of and at dates near the annual testing date. Management uses this comparison as additional evidence of the fair value of the Company, as our market capitalization may be suppressed by other factors such as the control premium associated with a controlling shareholder, our leverage or general expectations regarding future operating results and cash flows. In situations where the implied value of the Company under the Income or Market Approach are significantly different than our market capitalization we re-evaluate and adjust, if necessary, the assumptions underlying our Income and Market Approach models. Our estimate of the fair values of these business units, and the related goodwill, could change over time based on a variety of factors, including the aggregate market value of the Company’s common stock, actual operating performance of the underlying businesses or the impact of future events on the cost of capital and the related discount rates used.
 
In completing its 2008 annual test of goodwill which the Company also evaluated given year end market conditions, the Company determined that the Automotive and Custom reporting unit failed Step 1 of the impairment test, requiring a Step 2 test to determine the amount, if any, of impairment charge. Based on the results of Step 2 testing, which included a valuation of the reporting unit’s net assets in accordance with ASC 805, “Business Combinations”, the Company recorded an impairment charge of $60.1 million in the fourth quarter of 2008. The impairment was attributable to the significant decline in demand over the latter part of 2008 and future projections for sales in the automotive, heavy truck, recreational vehicle, marine and other industrial markets served by the Automotive and Custom unit.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
The change in goodwill for the years ended December 31, 2009 and 2008 is as follows:

 	 	 	 	 	 	 	 	Automotive and	 	 	Lawn and	 	 	 	 	
 	 	Distribution	 	 	Material Handling	 	 	Custom	 	 	Garden	 	 	Total	 	
 		
December 31, 2007	 	$	214	 	 	$	30,383	 	 	$	60,074	 	 	$	80,791	 	 	$	171,462	 	
Impairments	 	 	0	 	 	 	0	 	 	 	(60,074	)	 	 	0	 	 	 	(60,074	)	
Foreign currency translation	 	 	0	 	 	 	0	 	 	 	0	 	 	 	(1,526	)	 	 	(1,526	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
December 31, 2008	 	$	214	 	 	$	30,383	 	 	 	0	 	 	$	79,265	 	 	$	109,862	 	
Acquisitions	 	 	0	 	 	 	0	 	 	 	0	 	 	 	1,376	 	 	 	1,376	 	
Impairments	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
Foreign currency translation	 	 	0	 	 	 	0	 	 	 	0	 	 	 	689	 	 	 	689	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
December 31, 2009	 	$	214	 	 	$	30,383	 	 	 	0	 	 	$	81,330	 	 	$	111,927	 	

 
Intangible assets other than goodwill primarily consist of trade names, customer relationship, patents, and technology assets established in connection with previous acquisitions. These intangible assets, other than trade names, are amortized over their estimated useful lives. The Company performs an annual impairment assessment for the indefinite lived trade name as of December 31. In performing this assessment the Company uses an income approach, based primarily on level 3 inputs, to estimate the fair value of the trade name. The Company records an impairment charge if the carrying value of the trade name exceeds the estimated fair value at the date of assessment. Estimated annual amortization expense for intangible assets with definite lives for the five years ending December 31, 2014 is: $2,611 in 2010; $2,595 in 2011; $2,545 in 2012, $2,008 in 2013 and $1,654 in 2014.
 
Intangible assets at December 31, 2009 and 2008 consisted of the following:

 	 	 	 	 	 	 	2009	 	 	 	 	 	 	 	 	2008	 	 	 	 	
 	 	 	 	 	 	 	Accumulated	 	 	 	 	 	 	 	 	Accumulated	 	 	 	 	
 	 	Life	 	Gross	 	 	Amortization	 	 	Net	 	 	Gross	 	 	Amortization	 	 	Net	 	
 		
Tradename	 	Indefinite	 	$	4,043	 	 	 	–0–	 	 	$	4,043	 	 	$	3,493	 	 	 	–0–	 	 	$	3,493	 	
Customer Relationships(2)	 	6 - 13 years	 	 	13,564	 	 	 	(5,432	)	 	 	8,133	 	 	 	15,497	 	 	$	(5,749	)	 	 	9,748	 	
Technology(1)	 	7.5 years	 	 	2,100	 	 	 	(2,100	)	 	 	–0–	 	 	 	2,100	 	 	 	(2,100	)	 	 	–0–	 	
Patents	 	10 years	 	 	10,900	 	 	 	(3,088	)	 	 	7,812	 	 	 	10,900	 	 	 	(1,999	)	 	 	8,901	 	
Non-Compete	 	3 years	 	 	412	 	 	 	(396	)	 	 	17	 	 	 	397	 	 	 	(248	)	 	 	149	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	$	31,019	 	 	$	(11,016	)	 	$	20,003	 	 	$	32,387	 	 	$	(10,096	)	 	$	22,291	 	

 
		
(1) 	Accumulated amortization for 2008 includes an impairment charge of $840 related to a discontinued manufacturing process.	
 		
(2) 	Accumulated amortization for 2009 includes an impairment charge of $528 for an intangible asset associated with discontinued operations.	

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)

Net Income (Loss) Per Share
 
Net income (loss) per share, as shown on the statements of consolidated (loss) income, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

 	 	2009	 	 	2008	 	 	2007	 	
 		
Weighted average common shares outstanding	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	35,266,939	 	 	 	35,211,811	 	 	 	35,140,581	 	
Dilutive effect of stock options and restricted stock	 	 	–0–	 	 	 	–0–	 	 	 	108,991	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding — diluted	 	 	35,266,939	 	 	 	35,211,811	 	 	 	35,249,572	 	

 
Options to purchase 1,681,169 shares of common stock that were outstanding at December 31, 2009 were not included in the computation of diluted earnings per share as the exercise prices of these options was greater than the average market price of common shares. Additionally, 93,696 dilutive common shares were excluded from the computation of the loss per common share in 2008 due to the Company’s net loss position.
 
Merger Agreement
 
On April 3, 2008, the Company entered into a letter agreement mutually terminating the Agreement and Plan of Merger (the “Merger Agreement”) with MYEH Corporation, a Delaware corporation (the “Parent”) and MYEH Acquisition Corporation, an Ohio corporation (“MergerCo”). Under the terms of the Merger Agreement, MergerCo would have been merged with and into the Company, with the Company continuing as the surviving corporation and becoming a wholly-owned subsidiary of Parent (the “Merger”). Parent is owned by GS Capital Partners, LP (GSCP) and other private equity funds sponsored by Goldman, Sachs & Co.
 
The Merger Agreement contained termination rights for both the Company and Parent in the event the Merger was not consummated by December 15, 2007. In December 2007, an agreement was made to extend this date from December 15, 2007 to April 30, 2008. This extension did not provide GSCP additional rights with respect to the potential merger and any consummation of the merger would have remained subject to satisfaction of the conditions to the closing in the Merger Agreement. In connection with the extension, GSCP paid the Company a previously agreed upon $35.0 million termination fee in 2007. This non refundable termination fee, net of related expenses of $8.3 million, was recorded as other income by the Company in the fourth quarter of 2007. In addition, as permitted by the extension, the Company paid a special dividend of $0.28 per common share totaling approximately $9.9 million on January 2, 2008 to shareholders of record as of December 20, 2007.
 
Discontinued Operations
 
On October 30, 2009, the Company sold substantially all the assets of its Michigan Rubber Products, Inc. (MRP) and Buckhorn Rubber Products, Inc. (BRP) businesses to Zhongding Sealing Parts, (USA) Inc. Based on the terms of the sale, the Company recorded a loss of $8.4 million, including a charge of $7.8 million for impairment of long lived assets, which is included in the results of discontinued operations for the year ended December 31, 2009.
 
In accordance with U.S. generally accepted accounting principles, the operating results related to these businesses have been included in discontinued operations in the Company’s statements of consolidated income (loss) for all periods presented. The operating results for the MRP and BRP discontinued operations does not include any allocation of the $60.1 million goodwill impairment recorded in the Company’s Automotive and Custom reporting unit in 2008.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
The operating results of the MRP and BRP discontinued operations are as follows for the year ended December 31:

 	 	2009	 	 	2008	 	 	2007	 	
 		
Net sales	 	$	26,604	 	 	$	54,289	 	 	$	63,088	 	
Income (loss) before income taxes	 	 	(11,806	)	 	 	(957	)	 	 	327	 	
Income tax benefit	 	 	(4,128	)	 	 	(481	)	 	 	118	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(7,678	)	 	$	(476	)	 	$	209	 	

 
On February 1, 2007 the Company sold its former Material Handling — Europe business segment with net proceeds of $68.1 million received. Included in net income for the year ended December 31, 2007 was a gain of approximately $17.8 million, net of taxes of $3.3 million, from the disposition of these businesses. These discontinued operations had sales of $14.9 million and net income from operations of $2 in 2007 prior to the disposition. In 2008, the Company also recorded net income of approximately $1.7 million as a result of net proceeds received from the settlement of certain contingencies in connection with the disposal of these businesses.
 
Acquisitions
 
On August 18, 2009, the Company purchased the remaining 50% interest in Amerikan LLC (Amerikan), an entity previously accounted for under the equity method. The acquisition was accounted for in accordance with ASC 805. Amerikan is a manufacturer of horticultural containers with annual sales of approximately $4 million. The Amerikan results of operations are included in the Company’s Lawn and Garden segment from the date of acquisition. The Company paid approximately $1.2 million for the remaining shares of Amerikan and assumed approximately $7 million of debt which was paid off in 2009. In the purchase of Amerikan, the Company acquired approximately $5.8 million of property, plant and equipment, $1.7 million of other assets and recorded approximately $1.4 million of goodwill. These assets were recorded at fair value as of the date of acquisition, using primarily level 2 inputs.
 
On January 9, 2007, the Company acquired all the shares of ITML Horticultural Products, Inc., an Ontario corporation (“ITML”). ITML designs, manufactures and sells plastic containers and related products for professional floriculture / horticulture grower markets across North America, utilizing injection molding, blow molding, and thermoforming processes. Additionally, ITML utilizes extensive technology and expertise for resin reprocessing and recycling for use in its products. The acquired business had fiscal 2006 annual sales of approximately $169.5 million. The total purchase price was approximately $118.6 million, which includes the assumption of approximately $64.6 million of debt outstanding as of the acquisition date. In addition, the acquisition allowed for additional purchase consideration to be paid contingent upon results of the Company’s Lawn and Garden segment in 2008, specifically the achievement of earnings before interest, taxes, depreciation and amortization compared to targeted amounts. Based upon operating results in 2008, no additional purchase consideration was paid under this contingency.
 
On March 8, 2007, the Company acquired select equipment, molds and inventory related to the Xytec and Combo product lines of Schoeller Arca Systems Inc., a subsidiary of Schoeller Arca Systems N.V., in North America (“SASNA”). These product lines include collapsible bulk containers used for diverse shipping and handling applications in markets from manufacturing to food to liquid transport. The acquired business had 2006 annual sales of approximately $50 million. The total purchase price was approximately $41.6 million.
 
The results for both ITML and SASNA product lines are included in the consolidated results of operations from the dates of acquisition. ITML is included in the Company’s Lawn and Garden Segment and the SASNA

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
product lines are included in the Material Handling Segment. The allocation of the purchase price and the estimated goodwill and other intangibles are as follows:

 	 	ITML	 	 	Schoeller Arca	 	
 		
Assets acquired:	 	 	 	 	 	 	 	 	
Accounts receivable	 	$	45,252	 	 	$	–0–	 	
Inventory	 	 	37,107	 	 	 	8,825	 	
Property, plant & equipment	 	 	56,142	 	 	 	18,100	 	
Intangibles	 	 	9,200	 	 	 	14,700	 	
Other	 	 	4,409	 	 	 	–0–	 	
 	 	 	 	 	 	 	 	 	
 	 	 	152,110	 	 	 	41,625	 	
Liabilities assumed:	 	 	 	 	 	 	 	 	
Accounts payable and accruals	 	 	(25,496	)	 	 	–0–	 	
Debt	 	 	(64,570	)	 	 	–0–	 	
Deferred Income Taxes	 	 	(17,182	)	 	 	–0–	 	
 	 	 	 	 	 	 	 	 	
 	 	 	(107,248	)	 	 	–0–	 	
Goodwill	 	 	9,211	 	 	 	–0–	 	
 	 	 	 	 	 	 	 	 	
Total consideration	 	$	54,073	 	 	$	41,625	 	

 
In the second quarter of 2007, the Company approved a plan for ITML integration activities, which resulted in the closure of two facilities in the Lawn and Garden Segment, including the acquired ITML plants in Brampton, Ontario, and Lugoff, South Carolina. These facilities, which were part of the Company’s acquisition of ITML in January 2007, produced nursery containers, specialty retail horticultural products, and custom plastic products. Total costs related to the plan were approximately $4.3 million, including the $2.3 million accrued at acquisition and $2.0 million expensed and paid in 2007.
 
In connection with the above integration activities, the Company recorded accruals for severance, exit and relocation costs as part of the purchase price allocation of ITML. A reconciliation of the accrual balance included in Other Accrued Expenses on the accompanying statement of consolidated financial position is as follows:

 	 	Severance	 	 	Contract	 	 	 	 	
 	 	and	 	 	Termination	 	 	 	 	
 	 	Personnel	 	 	Fees	 	 	Total	 	
 		
Accrued at acquisition date	 	$	2,023	 	 	$	241	 	 	$	2,264	 	
Provision	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Less: Payments	 	 	(1,703	)	 	 	(241	)	 	 	(1,944	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2007	 	$	320	 	 	$	0	 	 	$	320	 	
Less: Payments	 	 	(320	)	 	 	–0–	 	 	 	(320	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2008	 	$	0	 	 	$	0	 	 	$	0	 	

 
Restructuring & Impairment Charges
 
In the fourth quarter of 2008, the Company adopted a plan to restructure its Lawn and Garden Segment and announced the permanent closure of its Surrey, B.C., Canada and Sparks, Nevada manufacturing facilities. In 2009, the Company completed its restructuring of the businesses in the Lawn and Garden segment. For the years ended December 31, 2009 and 2008, the Company recorded impairment charges of $2.0 and $10.0 million, respectively,

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
related to certain property, plant, and equipment at these and other Lawn and Garden manufacturing facilities. The Company also incurred $11.2 and $5.7 million for severance, consulting, and other costs associated with the restructuring including lease obligations for the years ended December 31, 2009 and 2008, respectively. The amount of any impairment is based upon appraisal of the asset or estimated market value of similar assets which are considered level 2 inputs. The estimated lease obligation associated with closed facilities was determined based upon level 2 inputs. Also, in the fourth quarter of 2009, the Company sold its previously closed manufacturing facility in Surrey, B.C. Canada for $5.1 million and recognized a gain on the sale of $3.3 million.
 
The Company also assessed its resources and strategies in the Material Handling segment. As a result of this assessment, the Company recorded impairment charges of $1.3 million and severance, consulting and other restructuring costs of $6.6 million in 2009. Also, the Shelbyville, Kentucky manufacturing facility was closed in the fourth quarter. This facility and certain property, plant, and equipment was sold in the first quarter of 2010. The proceeds for the sale were approximately $5.1 million and the estimated gain on the transaction is $0.7 million. The transaction will be recorded in the first quarter of 2010.
 
In the Automotive and Custom segment, the Company closed its Fostoria, Ohio and Reidsville, North Carolina facilities. In conjunction with the closures, impairment charges of $2.2 million for the real estate and certain property, plant, and other restructuring costs, including severance and lease related obligations of $1.5 million were incurred.
 
In 2007, the Company closed its Dawson Springs, Kentucky manufacturing facility, included in the Company’s Material Handling Segment. Certain product lines were shifted to the Company’s other existing manufacturing facilities in North America.
 
The accrued liability balance for severance and other exit costs is included in Other Accrued Expenses on the accompanying statement of consolidated financial position.
 
Activity related to the Company’s restructuring plans for 2009, 2008, and 2007 is as follows:

 	 	Severance	 	 	 	 	 	 	 	
 	 	and	 	 	Other	 	 	 	 	
 	 	Personnel	 	 	Exit Costs	 	 	Total	 	
 		
Balance at January 1, 2007	 	$	0	 	 	$	0	 	 	$	0	 	
Provision	 	 	937	 	 	 	90	 	 	 	1,027	 	
Less: Payments	 	 	(918	)	 	 	(90	)	 	 	(1,008	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2007	 	$	19	 	 	$	0	 	 	$	19	 	
Provision	 	 	92	 	 	 	5,588	 	 	 	5,680	 	
Less: Payments	 	 	(111	)	 	 	(5,588	)	 	 	(5,699	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2008	 	$	0	 	 	$	0	 	 	$	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision	 	 	3,102	 	 	 	15,938	 	 	 	19,040	 	
Less: Payments	 	 	(2,679	)	 	 	(14,287	)	 	 	(16,966	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2009	 	$	423	 	 	$	1,651	 	 	$	2,074	 	

 
As a result of restructuring activity and plant closures, approximately $11.9 million of property, plant and equipment has been classified as held for sale as of December 31, 2009 and is included in other assets in the statements of consolidated financial position.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
Stock Compensation
 
On April 30, 2009, the shareholders of the Company approved the adoption of the 2008 Incentive Stock Plan (the 2008 Plan). The full text of the 2008 Plan is attached as Exhibit 4.3 to the registration statement on Form S-8 filed with the SEC on March 17, 2009. As a result of this approval, the Company granted 584,869 options with an exercise price of $10.92 that were conditionally awarded to certain employees on October 3, 2008 pending shareholder approval. Under the 2008 Plan, the Compensation Committee of the Board of Directors is authorized to issue up to 3,000,000 shares of various types of stock based awards including stock options, restricted stock and stock appreciation rights to key employees and Directors. In general, options granted and outstanding vest over three to five years and expire ten years from the date of grant.
 
The following tables summarize stock option activity under the 2008 Plan and the expired 1999 Stock Plan in the past three years:
 
Options granted in 2009, 2008 and 2007:

 	 	 	 	 	Exercise	
Year	 	Options	 	 	Price	
 		
2009	 	 	614,869	 	 	$8.19 to $10.92	
2008	 	 	604,621	 	 	$9.00 to $12.55	
2007	 	 	23,000	 	 	$18.62	

Options exercised in 2009, 2008 and 2007:

 	 	 	 	 	Exercise	
Year	 	Options	 	 	Price	
 		
2009	 	 	–0–	 	 	–0–	
2008	 	 	16,169	 	 	$8.00 to $11.15	
2007	 	 	87,068	 	 	$8.00 to $17.02	

In addition, options totaling 127,076, 49,885, and 62,342 expired or were forfeited during the years ended December 31, 2009, 2008 and 2007, respectively. Options outstanding and exercisable at December 31, 2009, 2008 and 2007 were as follows:

 	 	 	 	 	Range of Exercise	 	 	 	 	 	Weighted Average	 	
Year	 	Outstanding	 	 	Prices	 	 	Exercisable	 	 	Exercise Price	 	
 		
2009	 	 	1,681,169	 	 	$	8.00 to $18.62	 	 	 	1,095,383	 	 	$	12.21	 	
2008	 	 	1,193,376	 	 	$	8.00 to $18.62	 	 	 	445,750	 	 	$	13.66	 	
2007	 	 	654,809	 	 	$	8.00 to $18.62	 	 	 	329,156	 	 	$	12.71	 	

Stock compensation expense reduced income before taxes approximately $2,660, $1,875 and $1,376 for the years ended December 31, 2009, 2008, and 2007, respectively. These expenses are included in selling and administrative expenses in the accompanying statement of consolidated (loss) income. Total unrecognized compensation cost related to non-vested share based compensation arrangements at December 31, 2009 was approximately $2.9 million, which will be recognized over the next four years.
 
The fair value of options granted is estimated using an option pricing model based on assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. The stock options granted in 2009 were valued using a Monte-Carlo pricing model which we believe

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
provides a better fair value calculation than the Black-Scholes closed form model. There was no material difference in the valuation of these options using the Monte Carlo model compared with the Black-Scholes model.

 	 	2009	 	 	2008	 	 	2007	 	
 	 	Monte	 	 	Black	 	 	Black	 	
Model	 	Carlo	 	 	Scholes	 	 	Scholes	 	
 		
Risk free interest rate	 	 	2.66	%	 	 	3.38	%	 	 	4.70	%	
Expected dividend yield	 	 	1.67	%	 	 	1.91	%	 	 	1.23	%	
Expected life of award (years)	 	 	4.83	 	 	 	5.25	 	 	 	6.0	 	
Expected volatility	 	 	58.2	%	 	 	41.41	%	 	 	31.58	%	
Fair value per option share	 	$	3.87	 	 	$	4.10	 	 	$	6.00	 	

The following table summarizes the stock option activity for the period ended December 31, 2009:

 	 	 	 	 	Average	 	 	Weighted	 	 	Aggregate	 	
 	 	 	 	 	Exercise	 	 	Average	 	 	Intrinsic	 	
 	 	Options	 	 	Price	 	 	Life	 	 	Value	 	
 		
Outstanding at December 31, 2008	 	 	1,193,376	 	 	$	13.66	 	 	 	 	 	 	 	 	 	
Options Granted	 	 	614,869	 	 	 	10.79	 	 	 	 	 	 	 	 	 	
Options Exercised	 	 	–0–	 	 	 	–0–	 	 	 	 	 	 	 	 	 	
Cancelled or Forfeited	 	 	(127,076	)	 	 	12.42	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Outstanding at December 31, 2009	 	 	1,681,169	 	 	$	11.93	 	 	 	7.67	 	 	 	–0–	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exercisable at December 31, 2009	 	 	1,095,383	 	 	$	12.21	 	 	 	 	 	 	 	 	 	

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. There were no options exercised in 2009, however, the total intrinsic value of the options exercised during the years ended December 31, 2008, and 2007 was approximately $62 and $768 respectively.
 
At December 31, 2009, 2008, and 2007 the Company also had outstanding 103,000, 124,250, and 63,000 shares of restricted stock, respectively, with vesting periods up through April 2011. The restricted stock awards are rights to receive shares of common stock, subject to forfeiture and other restrictions, which generally vest over a four year period.
 
Contingencies
 
 The Company is a defendant in various lawsuits and a party to various other legal proceedings, in the ordinary course of business, some of which are covered in whole or in part by insurance. We believe that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on our consolidated financial position, results of operations or cash flows.
 
A number of parties, including the Company and its subsidiary, Buckhorn, Inc., were identified in a planning document adopted in October 2008 by the California Regional Water Quality Control Board, San Francisco Bay Region (RWQCB). The planning document relates to the presence of mercury, including amounts contained in mining wastes, in and around the Guadalupe River Watershed (Watershed) region in Santa Clara County, California. Buckhorn has been alleged to be a successor in interest to an entity that performed mining operations in a portion of the Watershed area. The Company has not been contacted by the RWQCB with respect to Watershed clean-up efforts that may result from the adoption of this planning document. The extent of the mining wastes that may be the subject of future cleanup has yet to be determined, and the actions of the RWQCB have not yet advanced to the stage where a reasonable estimate of remediation cost, if any, is available.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
Although assertion of a claim by the RWQCB is reasonably possible, it is not possible at this time to estimate the amount of any obligation the Company may incur for these cleanup efforts within the Watershed region, or whether such cost would be material to the Company’s financial statements.
 
In October 2009, an employee was fatally wounded while performing maintenance at the Company’s manufacturing facility in Springfield, Missouri. The Occupational Safety and Health Administration has commenced a comprehensive investigation at the same facility. No litigation related to this matter is currently pending and, at this time, the likelihood of legal action and the likelihood of exposure resulting from such legal action are not able to be determined. The Company believes that it has adequate insurance to resolve any claims resulting from this incident.
 
Long-Term Debt and Credit Agreements
 
Long-term debt at December 31, 2009 and 2008 consisted of the following:

 	 	2009	 	 	2008	 	
 		
Credit agreement	 	$	2,400	 	 	$	63,631	 	
Senior notes	 	 	100,000	 	 	 	100,000	 	
Industrial revenue bonds	 	 	1,915	 	 	 	6,340	 	
Other	 	 	0	 	 	 	1,596	 	
 	 	 	 	 	 	 	 	 	
 	 	 	104,315	 	 	 	171,567	 	
Less current portion	 	 	65,425	 	 	 	2,021	 	
 	 	 	 	 	 	 	 	 	
 	 	$	38,890	 	 	$	169,546	 	

 
On October 26, 2006, the Company entered into an amendment and restatement of its loan agreement (the Credit Agreement) with a group of banks. Under terms of the Credit Agreement, the Company may borrow up to $250 million, including up to $80 million in certain foreign currencies, swing loans not to exceed $20 million and letter of credit obligations up to $25 million. As of December 31, 2009, the Company had approximately $248 million available under the Credit Agreement. Interest is based on the bank’s Prime rate or Euro dollar rate plus an applicable margin that varies depending on the Company’s ratio of total debt to earnings before interest, taxes, depreciation and amortization (EBITDA). The average interest rate on borrowing under the Credit Agreement was 1.69 percent at December 31, 2009 and 4.16 percent at December 31, 2008. In addition, the Company pays a quarterly facility fee. The Credit Agreement expires on October 26, 2011.
 
In December 2003, the Company issued $100 million in Senior Unsecured Notes (the Notes) consisting of $65 million of notes with an interest rate of 6.08 percent and a 7 year maturity and $35 million with an interest rate of 6.81 percent and a 10 year maturity. Proceeds from the issuance of the Notes were used to pay down the term loan and revolving credit facility borrowing outstanding at that time.
 
In addition, at December 31, 2009, the Company had approximately $1.9 million of industrial revenue bonds with a weighted average interest rate of 0.34 percent. In 2009, the Company retired $4.0 million of industrial revenue bonds.
 
As of December 31, 2009, the Company also has $6.2 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business.
 
As of December 31, 2009, the Company was in compliance with all its debt covenants associated with its Credit Agreement and the Notes. The significant financial covenants include an interest coverage ratio and a

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
leverage ratio, defined as earnings before interest, taxes, depreciation, and amortization, as adjusted, compared to total debt. The ratios as of December 31, 2009 are shown in the following table:

 	 	Required Level	 	Actual Level	
 		
Interest Coverage Ratio	 	 	2.5 to 1 (minimum	)	 	 	4.6	 	
Leverage Ratio	 	 	3.5 to 1 (maximum	)	 	 	1.5	 	

Maturities of long-term debt under the loan agreements in place at December 31, 2009 for the five years ending December 31, 2014 were approximately: $65,425 in 2010; $2,825 in 2011; $425 in 2012; $35,425 in 2013 and $215 in 2014.
 
Retirement Plans
 
  The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. During 2009, the Company merged its two frozen defined benefit plans into a single plan which provides benefits primarily based upon a fixed amount for each completed year of service as defined.
 
Net periodic pension cost for the years ended December 31, 2009, 2008 and 2007 was as follows:

 	 	2009	 	 	2008	 	 	2007	 	
 	 	Underfunded	 	 	Underfunded	 	 	Overfunded	 	 	Underfunded	 	
 		
Service cost	 	$	60	 	 	$	88	 	 	$	33	 	 	$	89	 	
Interest cost	 	 	324	 	 	 	325	 	 	 	152	 	 	 	172	 	
Expected return on assets	 	 	(259	)	 	 	(429	)	 	 	(216	)	 	 	(211	)	
Amortization of prior service cost	 	 	0	 	 	 	0	 	 	 	0	 	 	 	4	 	
Amortization of net loss	 	 	94	 	 	 	10	 	 	 	0	 	 	 	8	 	
Settlement/Curtailment	 	 	0	 	 	 	0	 	 	 	0	 	 	 	67	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net periodic pension cost	 	$	219	 	 	$	(6	)	 	$	(31	)	 	$	130	 	

 
The reconciliation of changes in projected benefit obligations are as follows:

 	 	2009	 	 	2008	 	
 		
Benefit obligation at beginning of year	 	$	5,782	 	 	$	5,774	 	
Service cost	 	 	60	 	 	 	88	 	
Interest cost	 	 	324	 	 	 	325	 	
Actuarial loss	 	 	25	 	 	 	42	 	
Expenses paid	 	 	(39	)	 	 	(60	)	
Benefits paid	 	 	(396	)	 	 	(386	)	
 	 	 	 	 	 	 	 	 	
Benefit obligation at end of year	 	$	5,757	 	 	$	5,782	 	

 
The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

 	 	2009	 	 	2008	 	 	2007	 	
 		
Discount rate for net periodic pension cost	 	 	5.75	%	 	 	5.75	%	 	 	5.75	%	
Discount rate for benefit obligations	 	 	5.75	%	 	 	5.75	%	 	 	5.75	%	
Expected long-term return of plan assets	 	 	8.00	%	 	 	8.00	%	 	 	8.00	%	

Future benefit increases were not considered, as there is no substantive commitment to increase benefits. The expected long-term rate of return assumption is based on the actual historical rate of return on assets adjusted to

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
reflect recent market conditions and future expectation consistent with the Company’s current asset allocation and investment policy. The assumed discount rates represent long-term high quality corporate bond rates commensurate with the liability durations of its plans.
 
The following table reflects the change in the fair value of the plans’ assets:

 	 	2009	 	 	2008	 	
 		
Fair value of plan assets at beginning of year	 	$	3,492	 	 	$	5,639	 	
Actual return on plan assets	 	 	894	 	 	 	(1,700	)	
Company contributions	 	 	0	 	 	 	0	 	
Expenses paid	 	 	(39	)	 	 	(60	)	
Benefits paid	 	 	(396	)	 	 	(386	)	
 	 	 	 	 	 	 	 	 	
Fair value of plan assets at end of year	 	$	3,951	 	 	$	3,492	 	

 
The fair value of plan assets are all categorized as level 1 and were determined based on period end closing prices in active markets. The weighted average asset allocations at December 31, 2009 and 2008, are as follows:

 	 	2009	 	 	2008	 	
 		
Equities securities	 	 	79	%	 	 	69	%	
Debt securities	 	 	20	 	 	 	29	 	
Cash	 	 	1	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	
Total	 	 	100	%	 	 	100	%	

 
The following table provides a reconciliation of the funded status of the plans at December 31, 2009 and 2008:

 	 	2009	 	 	2008	 	
 		
Projected benefit obligation	 	$	5,757	 	 	$	5,782	 	
Plan assets at fair value	 	 	3,951	 	 	 	3,492	 	
 	 	 	 	 	 	 	 	 	
Funded status	 	$	(1,806	)	 	$	(2,290	)	

 
The funded status shown above is included in other long term liabilities in the Company’s statements of consolidated financial position at December 31, 2009 and 2008. The Company does not expect to make a contribution to the plan in 2010.
 
Benefit payments projected for the plan are as follows:

2010	 	$	393	 	
2011	 	 	392	 	
2012	 	 	394	 	
2013	 	 	391	 	
2014	 	 	387	 	
2015-2019	 	 	1,892	 	

A profit sharing plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The amount to be contributed by the Company under the profit sharing plan is determined at the discretion of the Board of Directors. For 2009, the Company has recognized profit sharing plan expense of $420 and expects to make a contribution of that amount. In 2008, the Company made no contribution to the profit sharing plan. Profit sharing plan expense was $1,523 for the year ended December 31, 2007.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
In addition, the Company has a Supplemental Executive Retirement Plan (SERP) to provide participating senior executives with retirement benefits in addition to amounts payable under the profit sharing plan. Expense related to the SERP was approximately $161, $560, and $162 for the years ended December 2009, 2008 and 2007, respectively. The SERP liability is based on the discounted present value of expected future benefit payments using a discount rate of 5.75%. The SERP liability was approximately $4.3 million and $4.5 million at December 31, 2009 and 2008, respectively, and is included in accrued employee compensation and other long term liabilities on the accompanying statements of consolidated financial position. The SERP is unfunded.
 
Leases
 
The Company and certain of its subsidiaries are committed under non-cancelable operating leases involving certain facilities and equipment. Aggregate rental expense for all leased assets was $12,111, $12,419 and $13,097 for the years ended December 31, 2009, 2008 and 2007, respectively
 
Future minimum rental commitments are as follows:

Year Ended	 	 	 	
December 31,	 	Commitment	 	
 		
2010	 	$	9,784	 	
2011	 	 	7,096	 	
2012	 	 	4,790	 	
2013	 	 	3,695	 	
2014	 	 	3,325	 	
Thereafter	 	 	22,610	 	
 	 	 	 	 	
Total	 	$	51,300	 	

 
Income Taxes
 
The effective tax rate for continuing operations was 20.8% in 2009, 0.6% in 2008 and 35.2% in 2007. A reconciliation of the Federal statutory income tax rate to the Company’s effective tax rate is as follows:

 	 	Percent of Pre-Tax Income	 	
 	 	2009	 	 	2008	 	 	2007	 	
 		
Statutory Federal income tax rate	 	 	35.0	%	 	 	35.0	%	 	 	35.0	%	
State income taxes — net of Federal tax benefit	 	 	4.1	 	 	 	(0.9	)	 	 	2.1	 	
Foreign tax rate differential	 	 	(21.0	)	 	 	0.9	 	 	 	(1.5	)	
Non-deductible goodwill of $41.9 million	 	 	0	 	 	 	(31.9	)	 	 	0	 	
Reduction in valuation allowances	 	 	(3.6	)	 	 	0	 	 	 	0	 	
Domestic production deduction	 	 	(2.4	)	 	 	0	 	 	 	(1.8	)	
Non-deductible expenses	 	 	3.9	 	 	 	(.5	)	 	 	0.5	 	
Other	 	 	4.8	 	 	 	(2.0	)	 	 	0.9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Effective tax rate for the year	 	 	20.8	%	 	 	0.6	%	 	 	35.2	%	

 
Income (loss) from continuing operations before income taxes was attributable to the following sources:

 	 	2009	 	 	2008	 	 	2007	 	
 		
United States	 	$	3,431	 	 	$	(45,965	)	 	$	62,144	 	
Foreign	 	 	5,402	 	 	 	(70	)	 	 	(5,420	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Totals	 	$	8,833	 	 	$	(46,035	)	 	$	56,724	 	

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
Income tax expense (benefit) from continuing operations consisted of the following:

 	 	2009	 	 	2008	 	 	2007	 	
 	 	Current	 	 	Deferred	 	 	Current	 	 	Deferred	 	 	Current	 	 	Deferred	 	
 		
Federal	 	$	1,080	 	 	$	171	 	 	$	610	 	 	$	(1,087	)	 	$	23,567	 	 	$	(2,678	)	
Foreign	 	 	1,265	 	 	 	(1,227	)	 	 	2,705	 	 	 	(3,147	)	 	 	(2,552	)	 	 	(205	)	
State and local	 	 	898	 	 	 	(349	)	 	 	(262	)	 	 	895	 	 	 	2,063	 	 	 	(210	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	3,243	 	 	$	(1,405	)	 	$	3,053	 	 	$	(3,339	)	 	$	23,078	 	 	$	(3,093	)	

 
Significant components of the Company’s deferred taxes as of December 31, 2009 and 2008 are as follows:

 	 	2009	 	 	2008	 	
 		
Deferred income tax liabilities	 	 	 	 	 	 	 	 	
Property, plant and equipment	 	$	23,895	 	 	$	27,519	 	
Tax-deductible goodwill	 	 	14,453	 	 	 	11,973	 	
Other intangibles	 	 	36	 	 	 	624	 	
State deferred taxes	 	 	2,138	 	 	 	2,454	 	
Other	 	 	610	 	 	 	708	 	
 	 	 	 	 	 	 	 	 	
 	 	 	41,132	 	 	 	43,278	 	
Deferred income tax assets	 	 	 	 	 	 	 	 	
Compensation	 	 	3,412	 	 	 	3,170	 	
Inventory valuation	 	 	1,133	 	 	 	1,253	 	
Allowance for uncollectible accounts	 	 	1,138	 	 	 	1,231	 	
Non-deductible accruals	 	 	3,411	 	 	 	3,008	 	
Capital loss carryforwards	 	 	26,138	 	 	 	27,061	 	
Net operating loss carryforwards	 	 	1,160	 	 	 	2,063	 	
 	 	 	 	 	 	 	 	 	
 	 	 	36,392	 	 	 	37,786	 	
Valuation Allowance	 	 	(27,298	)	 	 	(28,086	)	
 	 	 	 	 	 	 	 	 	
 	 	 	9,094	 	 	 	9,700	 	
 	 	 	 	 	 	 	 	 	
Net deferred income tax liability	 	$	32,038	 	 	$	33,578	 	

 
ASC 740 Income Taxes, requires that deferred tax assets be reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. Available evidence includes the reversal of existing taxable temporary differences, future taxable income exclusive of temporary differences, taxable income in carryback years and tax planning strategies. In 2009, the Company made an adjustment to record previously unrecognized deferred tax assets which increased the income tax benefit and deferred tax assets by approximately $0.4 million. The Company determined that this adjustment was immaterial to its current and prior period financial statements. The decrease in the valuation allowance of $0.8 million resulted from a utilization of capital loss and foreign net operating losses from jurisdictions with uncertainty of future profitability. The Company has deferred tax assets of $1.2 million resulting from state and foreign net operating tax loss carryforwards of approximately $12.3 million, with carryforward periods that expire starting in 2019.
 
No provision has been recorded for unremitted earnings of foreign subsidiaries as it is the Company’s intention to indefinitely reinvest these earnings of these subsidiaries. Accordingly, at December 31, 2009, the Company had not recorded a deferred tax liability for temporary differences related to investments in its foreign subsidiaries that are essentially permanent in duration. The amount of such temporary differences was estimated to be approximately $25.8 million. The amount may become taxable upon a repatriation of assets or a sales or liquidation of the subsidiaries. It is not practical to estimate the related amount of unrecognized tax liability.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
The following table summarized the activity related to the Company’s unrecognized tax benefits:

 	 	Total	 	
 		
Balance at January 1, 2008	 	$	1,880	 	
Increases related to current year tax positions	 	 	5,300	 	
Expiration of the statute of limitations for the assessment of taxes	 	 	(527	)	
 	 	 	 	 	
Balance at December 31, 2008	 	$	6,653	 	
 	 	 	 	 	
Increases related to current year tax positions	 	 	157	 	
Decreases related to previous year tax positions	 	 	(203	)	
Expiration of the statute of limitations for the assessment of taxes	 	 	(490	)	
 	 	 	 	 	
Balance at December 31, 2009	 	$	6,117	 	

 
As of December 31, 2009 the total amount of gross unrecognized tax benefits was $6.1 million of which $5.7 million would reduce the Company’s effective tax rate. The increase in unrecognized tax benefits during 2008 includes $4.2 million from the tax position taken on the Company’s 2007 U.S. Corporate Income Tax Return relating to the loss on the previous sales of its European Material Handing business. If recognized, this loss would impact the effective rate by the same amount. The amount of accrued interest expense included as a liability within the Company’s consolidated balance sheet as of December 31, 2009 and 2008 was $0.4 million.
 
As of December 31, 2009, the Company and its significant subsidiaries are subject to examinations for the years after 2003 in Brazil and Canada, as well as after 2005 for the United States, France and certain states within the United States. The Company is also subject to examinations after 2005 in the remaining states within the United States.
 
The Company does not expect any significant changes to its unrecognized tax benefits in the next 12 months.
 
Industry Segments
 
The Company’s business units have separate management teams and offer different products and services. These business units have been aggregated into four reportable segments. These include three manufacturing segments encompassing a diverse mix of plastic and rubber products: 1) Material Handling 2) Automotive and Custom, and 3) Lawn and Garden. The fourth segment is Distribution of tire, wheel, and undervehicle service products. The aggregation of business units is based on management by the chief operating decision-maker for the segment as well as similarities of products, production processes, distribution methods and economic characteristics (e.g. average gross margin and the impact of economic conditions on long-term financial performance). Intersegment sales are generally recorded in segment operating results, at prices that management believes approximate arms length transactions and are not material to operating results.
 
In each of its manufacturing segments, the Company designs, produces, and markets a wide range of polymer products for diverse markets, customers, and applications. These products are made through a variety of molding processes in facilities located throughout North America and South America.
 
The Material Handling Segment includes a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, and storage and organization products. The product selection, manufacturing processes, and markets served by each segment are similar. This segment includes operations conducted in the United States, Canada, and Brazil. The reusable container products provide customers with cost-saving material handling solutions for applications such as shipping heavy automotive parts to assembly lines, transporting perishable food products to retailers, organizing small parts, and creating custom storage systems. Markets served encompass various niches of industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, healthcare, appliance, bakery, electronics, textiles, consumer, and others. Products are sold both direct to end-users and through distributors.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)
 
In the Automotive and Custom Segment, the Company engineers and manufactures plastic and rubber original equipment and replacement parts, rubber tire repair and retread products, and a diverse array of custom plastic and rubber products. Representative products include: plastic HVAC ducts, water / waste storage tanks, and interior / exterior vehicle trim components; rubber air intake hoses, vibration isolators, emissions tubing assemblies, and trailer bushings; and custom products such as plastic tool boxes and calendered rubber sheet stock. This segment serves a diverse group of niche markets: automotive, recreational vehicle, recreational marine, heavy truck, construction and agriculture equipment, healthcare, and transportation, to name a few.
 
Myers Industries’ Lawn and Garden Segment serves the North American horticultural market with plastic products such as seedling trays, nursery pots, hanging baskets, and custom printed containers, as well as decorative resin planters. Markets / customers include professional growers, greenhouses, nurseries, retail garden centers, mass merchandisers, and consumers.
 
The Company’s Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle repair. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair / retread supplies. The Distribution Segment operates domestically through branches located in major cities throughout the United States and in foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Canada and Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire retreaders, and government agencies.
 
Total sales from foreign business units and export to countries outside the U.S. were approximately $100.1 million, $140.7 million, and $121.1 million for the years ended December 31, 2009, 2008 and 2007, respectively. Sales made to customers in Canada accounted for approximately 10% of total net sales in 2009, 12% in 2008 and 10% in 2007. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, consisting primarily of property, plant and equipment, intangible assets and goodwill, were approximately $33.5 million at December 31, 2009 and $43.1 million at December 31, 2008.

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MYERS INDUSTRIES, INC. AND SUBSIDIARIES.
 
Notes to Consolidated Financial Statements
Amounts in thousands, except as otherwise noted — (Continued)

 	 	2009	 	 	2008	 	 	2007	 	
 		
Net Sales	 	 	 	 	 	 	 	 	 	 	 	 	
Lawn and Garden	 	$	220,312	 	 	$	272,803	 	 	$	300,872	 	
Material Handling	 	 	254,045	 	 	 	261,189	 	 	 	267,221	 	
Distribution	 	 	162,991	 	 	 	187,132	 	 	 	203,230	 	
Automotive and Custom	 	 	86,030	 	 	 	119,691	 	 	 	107,763	 	
Intra-segment elimination	 	 	(21,544	)	 	 	(27,274	)	 	 	(23,381	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	701,834	 	 	$	813,541	 	 	$	855,705	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	
Lawn and Garden	 	$	16,686	 	 	$	(1,794	)	 	$	897	 	
Material Handling	 	 	13,625	 	 	 	26,638	 	 	 	40,360	 	
Distribution	 	 	13,660	 	 	 	17,490	 	 	 	20,537	 	
Automotive and Custom	 	 	787	 	 	 	(54,192	)	 	 	8,433	 	
Corporate	 	 	(27,621	)	 	 	(22,840	)	 	 	1,788	 	
Interest expense-net	 	 	(8,304	)	 	 	(11,337	)	 	 	(15,291	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	8,833	 	 	$	(46,035	)	 	$	56,724	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Identifiable Assets	 	 	 	 	 	 	 	 	 	 	 	 	
Lawn and Garden	 	$	227,274	 	 	$	241,725	 	 	$	302,736	 	
Material Handling	 	 	183,435	 	 	 	187,923	 	 	 	191,562	 	
Distribution	 	 	43,870	 	 	 	44,654	 	 	 	46,944	 	
Automotive and Custom	 	 	42,770	 	 	 	83,320	 	 	 	137,933	 	
Corporate	 	 	12,617	 	 	 	11,278	 	 	 	18,377	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	509,966	 	 	$	568,900	 	 	$	697,552	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital Additions, Net	 	 	 	 	 	 	 	 	 	 	 	 	
Lawn and Garden	 	$	9,577	 	 	$	5,375	 	 	$	6,496	 	
Material Handling	 	 	5,617	 	 	 	32,849	 	 	 	7,875	 	
Distribution	 	 	90	 	 	 	332	 	 	 	190	 	
Automotive and Custom	 	 	711	 	 	 	1,884	 	 	 	4,315	 	
Corporate	 	 	0	 	 	 	137	 	 	 	357	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	15,995	 	 	$	40,577	 	 	$	19,233	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	 	 	 	 	 	 	 	 	 	 	 	 	
Lawn and Garden	 	$	12,916	 	 	$	15,401	 	 	$	16,242	 	
Material Handling	 	 	14,668	 	 	 	13,557	 	 	 	10,991	 	
Distribution	 	 	309	 	 	 	336	 	 	 	372	 	
Automotive and Custom	 	 	4,831	 	 	 	4,798	 	 	 	3,856	 	
Corporate	 	 	408	 	 	 	345	 	 	 	397	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	33,132	 	 	$	34,437	 	 	$	31,858	 	

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ITEM 9.  	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	
 
None.

ITEM 9.A.  	Controls and Procedures	
 
Evaluation of Disclosure Controls and Procedures
 
The Company maintains disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-a5(e) of the Securities Exchange Act of 1934, as amended, that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
 
The Company carries out a variety of on-going procedures, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period covered by this report.
 
Management’s report on internal controls over financial reporting, and the report of the independent registered public accounting firm on internal control, are titled “Management’s Annual Assessment of and Report on Internal Control over Financial Reporting” and “Report of Independent Registered Public Accounting Firm” and are included herein.
 
Changes in Internal Control Over Financial Reporting
 
There have been no changes in the Company’s internal controls over financial reporting during the quarter ended December 31, 2009 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
 
Management’s Annual Assessment of and Report on Internal Control Over Financial Reporting
 
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.
 
Because of its inherent limitation, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the framework in “Internal Control — Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has concluded that the internal control over financial reporting was effective as of December 31, 2009.

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The effectiveness of the Company’s internal control over financial reporting as of December 31, 2009 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report included herein.

John C. Orr	 	Donald A. Merril	
President and	 	Vice President,	
Chief Executive Officer	 	Chief Financial Officer and
Corporate Secretary	

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Report of Independent Registered Public Accounting Firm
 
The Board of Directors
Myers Industries, Inc.:
 
We have audited Myers Industries, Inc. and subsidiaries (Company) internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Assessment of and Report On Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
 
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
 
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
In our opinion, Myers Industries, Inc. and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
 
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the statements of consolidated financial position of Myers Industries, Inc. and subsidiaries as of December 31, 2009 and 2008, and the related statements of consolidated (loss) income, shareholders’ equity and comprehensive (loss) income, and cash flows for each of the years in the three-year period ended December 31, 2009, and our report dated March 12, 2010 expressed an unqualified opinion on those consolidated financial statements.
 
/s/ KPMG LLP
 
Cleveland, Ohio
March 12, 2010

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ITEM 9B.  	Other Information.	
 
None
 
PART III

ITEM 10.  	Directors and Executive Officers of the Registrant	
 
For information about the directors of the Company, see the sections titled “Nominees”, “Director Independence”, “Committees of the Board”, Committee Charters and Policies”, Shareholder Nominations of Director Candidates” and “Corporate Governance Policies” of the Company’s Proxy Statement filed with the Securities and Exchange Commission for the Company’s annual meeting of shareholders to be held on April 30, 2010 (“Proxy Statement”), which is incorporated herein by reference.
 
Each member of the Company’s Audit Committee is financially literate and independent as defined under the Company’s Independence Criteria Policy and the independence standards set by the New York Stock Exchange. The Board has identified Robert A. Stefanko as “Audit Committee Financial Expert”.
 
Information about the Executive Officers of Registrant appears in Part I of this Report.
 
Disclosures by the Company with respect to compliance with Section 16(a) appears under the section entitled “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement, and is incorporated herein by reference.
 
For information about our Code of Ethics see the section titled “Corporate Governance Policies” of our Proxy Statement, which is incorporated herein by reference.

ITEM 11.  	Executive Compensation	
 
See the sections titled “Executive Compensation and Related Information”, “Compensation Committee Interlocks and Insider Participation”, Compensation Committee Report on Executive Compensation”, “Risk Assessment of Compensation Policies” and “Board Role in Risk Oversight” of the Proxy Statement, which are incorporated herein by reference.

ITEM 12.  	Security Ownership of Certain Beneficial Owners and Management	
 
See the sections titled “Principal Shareholders,” “Election of Directors” and “Beneficial Ownership” of the Proxy Statement, which are incorporated herein by reference.

 	 	 	 	 	 	 	 	(C)	 	
 	 	 	 	 	 	 	 	Number of Securities	 	
 	 	(A)	 	 	 	 	 	Remaining Available for	 	
 	 	Number of Securities	 	 	(B)	 	 	Future Issuance Under	 	
 	 	to be Issued Upon	 	 	Weighted-average	 	 	Equity Compensation	 	
 	 	Exercise of	 	 	Exercise Price of	 	 	Plans (Excluding	 	
 	 	Outstanding Options,	 	 	Outstanding Options,	 	 	Securities Reflected in	 	
Plan Category	 	Warrants or Rights	 	 	Warrants or Rights	 	 	Column(A))	 	
 		
Equity Compensation Plans Approved by Security Holders (1)	 	 	1,787,919	 	 	$	11.22	 	 	 	752,226	 	
Equity Compensation Plans Not Approved by Security Holders	 	 	–0–	 	 	 	–0–	 	 	 	–0–	 	
Total	 	 	1,787,919	 	 	 	 	 	 	 	752,226	 	

 
			
(1)		This information is as of January 31, 2010 and includes the 2008 Stock Plan and 1999 Incentive Stock Plan.	

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ITEM 13.  	Certain Relationships and Related Transactions	
 
See the sections titled “Policies and Procedures with Respect to Related Party Transactions” and “Directors Independence” of the Proxy Statement, which are incorporated herein by reference.

ITEM 14.  	Principal Account Fees and Services	
 
Required information regarding fees paid to and services provided by the Company’s independent auditor during the years ended December 31, 2009 and 2008 and the pre-approval policies and procedures of the Audit Committee of the Company’s Board of Directors is set forth under the section titled “Matters Relating to the Independent Registered Public Accounting Firm” of the Proxy Statement , which is incorporated herein by reference.
 
PART IV

ITEM 15.  	Exhibits, Financial Statement Schedules	
 
The following consolidated financial statements of the Registrant appear in Part II of this Report:

15.  	(A)(1) Financial Statements	
 
Consolidated Financial Statements of Myers Industries, Inc. and Subsidiaries
 
Report of Independent Registered Public Accounting Firm
 
Statements of Consolidated Financial Position As of December 31, 2009 and 2008
 
Statements of Consolidated (Loss) Income For The Years Ended December 31, 2009, 2008 and 2007
 
Statements of Consolidated Shareholders’ Equity and Comprehensive Income (Loss) For The Years Ended December 31, 2009, 2008 and 2007
 
Statements of Consolidated Cash Flows For The Years Ended December 31, 2009, 2008 and 2007
 
Notes to Consolidated Financial Statements For The Years Ended December 31, 2009, 2008 and 2007

15.  	(A)(2) Financial Statement Schedules	
 
All other schedules are omitted because they are inapplicable, not required, or because the information is included in the consolidated financial statements or notes thereto which appear in Part II of this Report.

15.  	(B) Exhibits	

 	 	EXHIBIT INDEX	
 		
2(a)	 	Stock Purchase Agreement among Myers Industries, Inc., ITML Holdings Inc. and 2119188 Ontario Inc., dated December 27, 2006. Reference is made to Exhibit 2.1 to Form 8-K filed with the Commission on January 16, 2007.**	
2(b)	 	Stock Purchase Agreement among Myers Industries, Inc., ITML Holdings Inc. and 2117458 Ontario Inc., dated December 27, 2006. Reference is made to Exhibit 2.2 to Form 8-K filed with the Commission on January 16, 2007.**	
2(c)	 	Sale and Purchase Agreement between Myers Industries, Inc. and LINPAC Material Handling Limited, dated October 20, 2006. Reference is made to Exhibit 1 to Form 8-K filed with the Commission on February 6, 2007.**	
2(d)	 	Agreement and Plan of Merger among Myers Industries, Inc., MYEH Corporation and MYEH Acquisition Corporation, dated April 24, 2007. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on April 26, 2007.**	

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 	 	EXHIBIT INDEX	
 		
2(e)	 	Letter Agreement among Myers Industries, Inc., Myers Holdings Corporation (f/k/a MYEH Corporation) and Myers Acquisition Corporation (f/k/a MYEH Acquisition Corporation), dated December 10, 2007. Reference is made to Exhibit 99.1 to Form 8-K filed with the Commission on December 10, 2007.	
2(f)	 	Letter Agreement among Myers Industries, Inc., Myers Holdings Corporation (f/k/a MYEH Corporation) and Myers Acquisition Corporation (f/k/a MYEH Acquisition Corporation), dated April 3, 2008. Reference is made to Exhibit 99.1 to Form 8-K filed with the Commission on April 4, 2008.	
3(a)	 	Myers Industries, Inc. Amended and Restated Articles of Incorporation. Reference is made to Exhibit 3(a) to Form 10-K filed with the Commission on March 16, 2005.	
3(b)	 	Myers Industries, Inc. Amended and Restated Code of Regulations attached hereto or Exhibit 3.1.	
10(a)	 	Myers Industries, Inc. Amended and Restated Employee Stock Purchase Plan. Reference is made to Exhibit 10(a) to Form 10-K filed with the Commission on March 30, 2001.	
10(b)	 	Form of Indemnification Agreement for Directors and Officers. Reference is made to Exhibit 10.1 to Form 10-Q filed with the Commission on May 1, 2009.*	
10(c)	 	Myers Industries, Inc. Amended and Restated Dividend Reinvestment and Stock Purchase Plan. Reference is made to Exhibit 10(d) to Form 10-K filed with the Commission on March 19, 2004.	
10(d)	 	Myers Industries, Inc. Amended and Restated 1999 Incentive Stock Plan. Reference is made to Exhibit 10(f) to Form 10-Q filed with the Commission on August 9, 2006.*	
10(e)	 	2008 Incentive Stock Plan of Myers Industries, Inc. Reference is made to Exhibit 4.3 to Form S-8 filed with the Commission on March 17, 2009.*	
10(f)	 	Myers Industries, Inc. Executive Supplemental Retirement Plan. Reference is made to Exhibit (10)(g) to Form 10-K filed with the Commission on March 26, 2003.*	
10(g)	 	Amended and Restated Employment Agreement between Myers Industries, Inc. and John C. Orr effective June 1, 2008. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on June 24, 2008.*	
10(h)	 	First Amendment to Amended and Restated Employment Agreement between Myers Industries, Inc. and John C. Orr entered into as of April 21, 2009. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on April 22, 2009.*	
10(i)	 	Second Amendment to Amended and Restated Employment Agreement between Myers Industries, Inc. and John C. Orr entered into as of March 8, 2010. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on March 9, 2010.*	
10(j)	 	Non-Disclosure and Non-Competition Agreement between Myers Industries, Inc. and John C. Orr dated July 18, 2000. Reference is made to Exhibit 10(j) to Form 10-Q filed with the Commission on May 6, 2003.*	
10(k)	 	Amendment to the Myers Industries, Inc. Executive Supplemental Retirement Plan (John C. Orr) effective June 1, 2008. Reference is made to Exhibit 10.2 to Form 8-K filed with the Commission on June 24, 2008.*	
10(l)	 	Employment Agreement between Myers Industries, Inc. and David B. Knowles dated June 19, 2009. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on June 22, 2009.*	
10(m)	 	Non-Disclosure and Non-Competition Agreement between Myers Industries, Inc. and David B. Knowles dated June 19, 2009. Reference is made to Exhibit 10.2 to Form 8-K filed with the Commission on June 22, 2009.*	
10(n)	 	Amendment to Myers Industries, Inc. Executive Supplemental Retirement Plan (David B. Knowles) effective June 19, 2009. Reference is made to Exhibit 10.3 to Form 8-K filed with the Commission on June 22, 2009.*	
10(o)	 	Employment Agreement between Myers Industries, Inc. and Donald A. Merril dated January 24, 2006. Reference is made to Exhibit 10(k) to Form 10-K filed with the Commission on March 16, 2006.*	
10(p)	 	Amendment to the Myers Industries, Inc. Executive Supplemental Retirement Plan (Donald A. Merril) dated January 24, 2006. Reference is made to Exhibit 10(l) to Form 10-K filed with the Commission on March 16, 2006.*	
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 	 	EXHIBIT INDEX	
 		
10(q)	 	Non-Disclosure and Non-Competition Agreement between Myers Industries, Inc. and Donald A. Merril dated January 24, 2006. Reference is made to Exhibit 10(m) to Form 10-K filed with the Commission on March 16, 2006.*	
10(r)	 	Retirement and Separation Agreement between Myers Industries, Inc. and Stephen E. Myers effective May 1, 2005. Reference is made to Exhibit 10(k) to Form 10-Q filed with the Commission on August 10, 2005.*	
10(s)	 	Second Amended and Restated Loan Agreement between Myers Industries, Inc. and JP Morgan Chase Bank, Agent dated as of October 26, 2006. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on October 31, 2006.	
10(t)	 	Note Purchase Agreement between Myers Industries, Inc. and the Note Purchasers, dated December 12, 2003, regarding the issuance of (i) $65,000,000 of 6.08% Series 2003-A Senior Notes due December 12, 2010, and (ii) $35,000,000 of 6.81% Series 2003-A Senior Notes due December 12, 2013. Reference is made to Exhibit 10(o) to Form 10-K filed with the Commission on March 15, 2004.	
10(u)	 	Myers Industries, Inc. Non-Employee Board of Directors Compensation Arrangement. Reference is made to Exhibit 10(w) to Form 10-K filed with the Commission on March 16, 2006.*	
14(a)	 	Myers Industries, Inc. Code of Business Conduct and Ethics. Reference is made to Exhibit 14(a) to Form 10-K filed with the Commission on March 16, 2005.	
14(b)	 	Myers Industries, Inc. Code of Ethical Conduct for the Finance Officers and Finance Department Personnel. Reference is made to Exhibit 14(b) to Form 10-K filed with the Commission on March 16, 2005.	
21	 	List of Direct and Indirect Subsidiaries, and Operating Divisions, of Myers Industries, Inc.	
23	 	Consent of Independent Registered Public Accounting Firm (KPMG LLP)	
31(a)	 	Certification of John C. Orr, President and Chief Executive Officer of Myers Industries, Inc, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	
31(b)	 	Certification of Donald A. Merril, Vice President, Chief Financial Officer and Corporate Secretary of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	
32	 	Certifications of John C. Orr, President and Chief Executive Officer, and Donald A. Merril, Vice President, Chief Financial Officer and Corporate Secretary, of Myers Industries, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	

 
			
 *		Indicates executive compensation plan or arrangement.	

**		Pursuant to Item 601(b)(2) of Regulation S-K, certain exhibits and schedules have been omitted from this filing. The registrant agrees to furnish the Commission on a supplemental basis a copy of any omitted exhibit or schedule.	
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SIGNATURES
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Myers Industries, Inc.

 	 	/s/  Donald A. Merril	

Donald A. Merril
Vice President,
Chief Financial Officer and
Corporate Secretary
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature	 	Title	 	Date	

/s/  Donald A. Merril

Donald A. Merril	 	Vice President, Chief Financial Officer and Corporate Secretary (Principal Financial and Accounting Officer)	 	March 12, 2010	
 	 	 	 	 	
/s/  Keith A. Brown

Keith A. Brown	 	Director	 	March 12, 2010	
 	 	 	 	 	
/s/  Vincent Byrd

Vincent Byrd	 	Director	 	March 12, 2010	
 	 	 	 	 	
/s/  Robert A. Stefanko

Robert A. Stefanko	 	Director	 	March 12, 2010	
 	 	 	 	 	
/s/  Richard P. Johnston

Richard P. Johnston	 	Director	 	March 12, 2010	
 	 	 	 	 	
/s/  Edward W. Kissel

Edward W. Kissel	 	Director	 	March 12, 2010	
 	 	 	 	 	
/s/  John C. Orr

John C. Orr	 	President, Chief Executive Officer and Director (Principal Executive Officer)	 	March 12, 2010	
 	 	 	 	 	
/s/  John B. Crowe

John B. Crowe	 	Director	 	March 12, 2010	
 	 	 	 	 	
/s/  Jon H. Outcalt

Jon H. Outcalt	 	Director	 	March 12, 2010	

62

EXHIBIT 3.1
AMENDED AND RESTATED CODE OF REGULATIONS
OF
MYERS INDUSTRIES, INC.
(As amended through December 18, 2009)
ARTICLE I
SHAREHOLDERS
Section 1. Annual Meeting
     The Annual Meeting of Shareholders of the Company for the election of Directors, the consideration of financial statements and other reports to be laid before such meeting, and the transaction of such other business as may be brought before such meeting shall be held on such date and at such hour during the fourth calendar month following the close of the fiscal year of the corporation as may be designated by the Board of Directors, the Chairman of the Board or the President and specified in the notice of the meeting. Upon due notice there may also be considered and acted upon at an Annual Meeting any matter which could properly be considered and acted upon at a Special Meeting.
Section 2. Special Meetings
     Special Meetings of Shareholders of the Company may be held on any business day when called by the Chairman of the Board, the President, the Board of Directors acting at a meeting, a majority of the Directors acting without a meeting, or persons who hold fifty per cent (50%) of all shares outstanding and entitled to vote thereat. Upon request in writing delivered either in person or by registered mail to the President or the Secretary by any persons entitled to call a Meeting of Shareholders, such Officer shall forthwith cause to be given to the Shareholders entitled thereto the requisite notice of a meeting to be held on the specified date, as provided in Section 4 of this Article I. If such notice is not given within forty-five (45) days after the delivery or mailing of such request, the persons calling the meeting may fix the time of the meeting and give notice thereof in the manner provided by law or as provided in these Regulations, or cause such notice to be given by any designated representative. Calls for Special Meetings shall specify the purpose or purposes thereof, and no business shall be considered at any such meeting other than that specified in the call therefor.
Section 3. Place of Meetings
     Meetings of Shareholders shall be held at the principal office of the Company in Ohio unless the Board of Directors acting at a meeting, or a majority of the Directors acting without a meeting, designates some other place either within or without the State of Ohio and causes the notice thereof to so specify.
Section 4. Notice of Meetings — Waiver
     Not less than seven (7) nor more than sixty (60) days before the date fixed for a Meeting of Shareholders, written notice stating the time, place and purposes of such meeting shall be

 

given by or at the direction of the Chairman of the Board, the President, the Secretary, an Assistant Secretary, or any other person required or permitted by these Regulations to give such notice. The notice shall be given by personal delivery, by mail or in any manner provided for under Ohio law, to each Shareholder entitled to notice of the meeting who is of record as of the date next preceding the day on which notice is given, or, if another date thereof is duly fixed, of record as of said date. Such notice shall be addressed to the Shareholder at his address as it appears on the records of the Company, and such notice shall be deemed to have been given on the day provided for under Ohio law, or if mailed when deposited in the mail. If said record date shall fall on a holiday, the record date should be taken as of the close of business on the next preceding day which is not a holiday.
     Notice of the time, place and purposes of any Meeting of Shareholders may be waived by any Shareholder in writing, either before or after the holding of such meeting, which writing shall be filed with and entered upon the records of the meeting, or by his attendance at any such meeting without protesting the lack of proper notice prior to or at the commencement of such meeting.
Section 5. Quorum — Adjournment
     At any meeting of Shareholders, the holders of shares entitling them to exercise a majority of the voting power of the Company, present in person or by proxy, shall constitute a quorum for such meeting; provided, however, that no action required by law, the Amended and Restated Articles of Incorporation or these Regulations to be authorized or taken by the holders of a designated proportion of shares of the Company may be authorized or taken by a lesser proportion.
     The holders of a majority of the voting shares represented at the meeting, whether or not a quorum is present, may adjourn such meeting from time to time without notice other than by announcement at the meeting. If any meeting is adjourned, notice of adjournment need not be given if the time and place to which it is adjourned are fixed and announced at such meeting, except as otherwise provided in Article III.
Section 6. Proxies
     A person who is entitled to attend a Shareholders’ Meeting, to vote thereat or to execute consents, waivers or releases may be represented at such meeting or vote thereat, and execute consents, waivers and releases, and exercise any of his rights by proxy or proxies appointed by a writing signed by such person as provided by the laws of the State of Ohio.
Section 7. Financial Reports
     At the Annual Meeting, there shall be laid before the Shareholders a financial statement, which may be consolidated, consisting of:

 	1.	 	A Balance Sheet containing a summary of the assets, liabilities, stated capital and surplus (showing separately any capital surplus arising from unrealized appreciation of assets, other capital surplus, and earned surplus) of the Company as of a date not more than four (4) months before the date of such meeting; and	
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 	2.	 	A Statement of Profit and Loss and Surplus, including a summary of profits, dividends paid, and other changes in the surplus accounts of the Company, for the year ending with the date of such Balance Sheet.	
     An Opinion signed by the President or a Vice President or Treasurer, or Assistant Treasurer, or by a public accountant or firm of public accountants, shall be appended to such financial statement to the effect that the financial statement presents fairly the position of the Company and the results of its operations in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding period, or such other Opinion as is in accordance with sound accounting practice.
Section 8. Organization of Meetings

 	(a)	 	The Board of Directors shall determine from time to time the Officer who shall preside at all Meetings of Shareholders.	
 		
 	(b)	 	The Secretary or Assistant Secretary shall act as secretary and keep the minutes of all meetings and in the absence of the Secretary and Assistant Secretary, the presiding Officer at the meeting shall appoint any other Officer to act in his place.	
 		
 	(c)	 	At each meeting an alphabetically arranged list or classified list of Shareholders of record who are entitled to vote as of the applicable record date, showing their respective addresses and the number and class of             shares held by each, shall be produced by the Secretary, Assistant Secretary or the particular agent having charge of the transfer of the shares. This list, when certified by such Officer or agent, shall be prima facie evidence of the ownership or the facts shown therein.	
Section 9. Inspectors of Election
     The Directors, in advance of any Meeting of Shareholders, may appoint any person(s) as an Inspector of Election to act at such meeting or any adjournments thereof. If Inspector(s) are not so appointed, the Officer or person acting as Chairman of any such meeting may and on the request of any Shareholder or his proxy shall make such appointment.
     In case any person appointed as Inspector fails to appear or act, the vacancy may be filled by appointment made by the Directors in advance of the meeting, or at the meeting by the Officer or person acting as Chairman.
     If there are three (3) or more Inspectors, the decision, act or certification of a majority of them shall be effective in all respects as the decision, act or certification of all.
     The Inspector(s) shall determine the number of shares outstanding, the voting rights with respect to each of the shares represented at the meeting, the existence of a quorum, and the authenticity, validity and factual effect of the proxies; receive votes, ballots, consents, waivers or releases; hear and determine all matters of challenges, ownership and questions arising in connection with the voting; count and tabulate all votes, consents, waivers and releases;
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determine and announce the result; and do such other acts as are proper to conduct the election or vote with fairness to all Shareholders.
     On request, the Inspector(s) shall make a report in writing on any question or matter determined by them and execute a certification of any fact found by them. The certification of the Inspector(s) shall be prima facie evidence of the facts stated therein and of the results of the voting as certified by them.
Section 10. Voting
     In all cases except where otherwise provided by statute, the Amended and Restated Articles of Incorporation or these Regulations, every Shareholder entitled to vote shall be entitled to cast one vote, in person or by proxy, on each proposal submitted to the meeting for each share held of record by him on the record date for the determination of the Shareholders entitled to vote at such meeting, and at any meeting at which a quorum is present all questions and business which shall come before the meeting shall be determined by the vote of the holders of a majority of such voting shares as are represented in person or by proxy.
Section 11. Advance Notice of Shareholder Proposals
     (a) Subject to the rights of the holders of any class or series of preferred stock of the Company, only proposals properly brought before the meeting in accordance with the following procedures shall be considered or acted upon at any Annual Meeting of the Shareholders of the Company. A proposal for consideration by the Shareholders of the Company at an Annual Meeting may be made only by the Board of Directors (or a committee of the Board of Directors delegated such authority) or a Shareholder of the Company that complies with the procedures and requirements set forth in this Section 11. In addition, a proposal for consideration by the Shareholders of the Company will only be considered or acted upon at an Annual Meeting if the proposal is otherwise proper for consideration under applicable law, the Amended and Restated Articles of Incorporation of the Company, and these Regulations. The procedures and requirements with respect to a proposal to nominate a candidate for election as a Director of the Company shall be governed by the provisions of Section 12 and not this Section 11. The provisions of this Section 11 shall apply to all proposals for consideration by the Shareholders of the Company that are not made by or through the Board of Directors (or an authorized committee thereof) regardless of whether the person submitting such proposal is seeking to have the proposal included in the Company’s proxy statement pursuant to Rule 14a-8 of the Securities Exchange Act of 1934, as amended, or whether such person intends to prepare and mail to the Shareholders of the Company its own proxy statement soliciting approval of such proposal.
     (b) A Shareholder may submit a proposal for consideration by the Shareholders of the Company at an Annual Meeting only if written notice of such intention is received by the Corporate Secretary of the Company, either by personal delivery or by United States mail, postage prepaid, at the Company’s principal executive offices not less than sixty (60) days nor more than ninety (90) days prior to the date of such Annual Meeting. In the event that the date of the meeting is not publicly disclosed at least seventy (70) days prior to the date of the meeting, the written notice of such Shareholder’s intent to make a proposal must be received by the Corporate Secretary not later than the close of business on the tenth (10 th ) day following the date on which notice of such meeting is first given to the Shareholders. For purposes of this Section 11, notice of the date of a meeting shall be deemed to be first given to the Shareholders when
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disclosure of such date is first made in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Company with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended.
     (c) The notice to be provided by a Shareholder pursuant to this Section 11 must contain the following undertakings and information regarding such Shareholder and the proposal. The Shareholder submitting such notice is referred to as the “Proponent”.
          (i) the name and address of the Proponent;
          (ii) a representation that the Proponent is a holder of record or beneficial owner of shares of the Company entitled to vote at the meeting and intends to appear in person at the meeting to propose such matter;
          (iii) a description of any agreement, arrangement or understanding with respect to such proposal between or among the Proponent and any of its affiliates or associates, and any other persons acting in concert with any of the foregoing (including the names of all such persons);
          (iv) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, hedging transactions, and borrowed or loaned shares) that has been entered into by, or on behalf of, the Proponent of any of its affiliates or associates as of the date of the Proponent’s notice delivered in accordance with this Section 11, the effect or intent of which is to mitigate loss to, manage the risk or benefit of share price changes for, or increase or decrease the voting power of the Proponent or any of its affiliates or associates with respect to shares of the Company (including the names of all persons involved in any such agreement, arrangement or understanding);
          (v) as of the date of the Proponent’s notice delivered in accordance with this Section 11, the class and number of shares of the Company that are owned both beneficially and of record (segregated by beneficial ownership, record ownership and owner) by the Proponent or by any person identified pursuant to or that is related to the matters described in clauses (iii) and (iv) above (including the name of the record holder of any such shares beneficially owned);
          (vi) a representation that, not later than ten (10) days following the later of the record date or the date notice of the record date is first publicly disclosed by the Company, the Proponent will provide the Company with written notice of any change as of the record date for the meeting with respect to the information disclosed in response to clauses (iii), (iv) and (v) above;
          (vii) a representation as to whether the Proponent intends to deliver a proxy statement and/or form of proxy to holders of the Company’s outstanding shares and/or otherwise to solicit proxies from Shareholders of the Company in support of the proposal;
          (viii) such other information concerning the Proponent and each person identified pursuant to or that is related to the matters described in clauses (iii) and (iv)
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above as would be required to be disclosed in a proxy statement soliciting proxies for the approval of such proposal, or that is otherwise required to be disclosed, under the rules of the Securities and Exchange Commission;
          (ix) the text of the proposal desired to be brought before the meeting, including any resolution intended to be voted upon by the Shareholders at the meeting;
          (x) in the event the proposal relates to an amendment to the Company’s Articles of Incorporation or these Regulations, the text of such amendment;
          (xi) a brief description of the proposal and the reasons for presenting the proposal at the meeting; and
          (xii) any material interest of the Proponent in the proposal, including any anticipated benefit to the Proponent, any of its affiliates or associates or any person identified pursuant to or that is related to the matters described in clauses (iii) and (iv) above.
Section 12. Advance Notice of Director Nomination
     (a) Subject to the rights of the holders of any class or series of preferred stock of the Company, only persons who are nominated in accordance with the following procedures shall be eligible for election as Directors of the Company. Nominations for the election of Directors may be made only by the Board of Directors (or a committee of the Board of Directors delegated such authority) or a Shareholder of the Company that complies with the procedures and requirements set forth in this Section 12. The procedures and requirements with respect to a proposal other than to nominate a candidate for election as a Director of the Company shall be governed by the provisions of Section 11 and not this Section 12. The provisions of this Section 12 shall apply to all nominations of a candidate for election as a Director of the Company that are not made by or through the Board of Directors (or an authorized committee thereof) regardless of whether the person submitting such nomination intends to prepare and mail to the Shareholders of the Company its own proxy statement soliciting support for such nominee.
     (b) A Shareholder may nominate a candidate for election as a Director of the Company only if written notice of such intention is received by the Corporate Secretary of the Company, either by personal delivery or by United States mail, postage prepaid, at the Company’s principal executive offices not less than sixty (60) days nor more than ninety (90) days prior to the date of such Annual Meeting or Special Meeting. In the event that the date of the meeting is not publicly disclosed at least seventy (70) days prior to the date of the meeting, written notice of such Shareholder’s intent to nominate a candidate must be received by the Corporate Secretary not later than the close of business on the tenth (10 th ) day following the date on which notice of such meeting is first given to the Shareholders. For purposes of this Section 12, notice of the date of a meeting shall be deemed to be first given to the Shareholders when disclosure of such date is first made in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Company with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended.
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     (c) The notice to be provided by a Shareholder pursuant to this Section 12 must contain the following undertakings and information regarding such Shareholder and each such proposed nominee. The Shareholder submitting such notice is referred to as the “Proponent”.
          (i) the name and address of the Proponent;
          (ii) a representation that the Proponent is a holder of record or beneficial owner of shares of the Company entitled to vote at the meeting and intends to appear in person or by proxy at the meeting to nominate the candidate specified in such notice;
          (iii) a description of any agreement, arrangement or understanding with respect to such nomination between or among the Proponent and any of its affiliates or associates, and any other persons acting in concert with any of the foregoing (including the names of all such persons);
          (iv) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, hedging transactions, and borrowed or loaned shares) that has been entered into by, or on behalf of, the Proponent of any of its affiliates or associates as of the date of the Proponent’s notice delivered in accordance with this Section 12, the effect or intent of which is to mitigate loss to, manage the risk or benefit of share price changes for, or increase or decrease the voting power of the Proponent or any of its affiliates or associates with respect to shares of the Company (including the names of all persons involved in any such agreement, arrangement or understanding);
          (v) as of the date of the Proponent’s notice delivered in accordance with this Section 12, the class and number of shares of the Company that are owned both beneficially and of record (segregated by beneficial ownership, record ownership and owner) by the Proponent or by any person identified pursuant to or that is related to the matters described in clauses (iii) and (iv) above (including the name of the record holder of any such shares beneficially owned);
          (vi) a representation that, not later than ten (10) days following the later of the record date or the date notice of the record date is first publicly disclosed by the Company, the Proponent will provide the Company with written notice of any change as of the record date for the meeting with respect to the information disclosed in response to clauses (iii), (iv) and (v) above;
          (vii) a representation as to whether the Proponent intends to deliver a proxy statement and/or form of proxy to holders of the Company’s outstanding shares and/or otherwise to solicit proxies from Shareholders of the Company in support of such nomination;
          (viii) such other information concerning the Proponent and each person identified pursuant to or that is related to the matters described in clauses (iii) and (iv) above as would be required to be disclosed in a proxy statement soliciting proxies for the election of the proposed nominee as a director in an election contest (even if an election contest is not anticipated), or that is otherwise required to be disclosed, under the rules of the Securities and Exchange Commission;
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          (ix) the name, age, business address and residence address of each nominee;
          (x) the principal occupation or employment of each nominee;
          (xi) the information required by clauses (iii), (iv) and (v) above with respect to each nominee;
          (xii) the executed written consent of each nominee consenting to being nominated as a candidate for election as a Director of the Company, consenting to being named in the Company’s proxy statement as a nominee (if determined by the Company to be so qualified), and consenting to serve as a Director of the Company if elected;
          (xiii) a completed and signed director questionnaire from each nominee, in the form available by written request to the Company’s Corporate Secretary;
          (xiv) such other information concerning each nominee as would be required to be disclosed in a proxy statement soliciting proxies for the election of the nominee as a director in an election contest (even if an election contest is not anticipated), or that is otherwise required to be disclosed, under the rules of the United States Securities and Exchange Commission; and
          (xv) a representation from each nominee agreeing to furnish to the Company such other information as it may reasonably require to determine the eligibility of the nominee to serve as an independent director of the Company or that could be material to a reasonable Shareholder’s understanding of the independence, or lack thereof, of the nominee.
ARTICLE II
BOARD OF DIRECTORS
Section 1. General Powers
     Except where the law, the Amended and Restated Articles of Incorporation or these Regulations require action to be authorized or taken by Shareholders, all of the authority of the Company shall be exercised by the Board of Directors.
Section 2. Number of Directors
     The Board of Directors of the Company, none of whom need be Shareholders, shall consist of not less than seven (7) nor more than fifteen (15) members. Without amendment of these Regulations, the number of Directors may be fixed or changed at any Annual or Special Meeting of Shareholders called for that purpose at which a quorum is present, by the affirmative vote of the holders of a majority of the shares which are represented at the meeting and entitled to vote on such proposal, but no reduction in the number of Directors shall of itself have the effect of shortening the term of any incumbent Director.
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Section 3. Election of Directors
     Directors shall be elected at the Annual Meeting of Shareholders, but when the Annual Meeting is not held or Directors are not elected thereat, they may be elected at a Special Meeting of Shareholders called and held for that purpose.
     At a meeting of Shareholders at which Directors are to be elected, only persons nominated as candidates shall be eligible for election as Directors, and the candidates receiving the greatest number of votes shall be elected. Voting in the election of Directors may be cumulative as provided by statute.
Section 4. Term of Office and Vacancies
     The term of office of each Director shall be one (1) year and Directors shall hold office until the Annual Meeting of Shareholders next succeeding their election at which their term of office expires and until their successors are elected and qualified, or until their earlier resignation, removal from office, or death. Any Director may resign at any time by oral statement to that effect made at a meeting of the Board or in a writing to that effect delivered to the Secretary or Assistant Secretary, such resignation to take effect immediately or at such other time as the Director may specify.
     In the event of the occurrence of any vacancy or vacancies in the Board of Directors irrespective of the reason therefor, the remaining Directors, though less than a majority of the whole authorized number of Directors, may upon vote of a majority of their number fill such vacancy for the unexpired term.
Section 5. Meetings
     As soon after each Annual Meeting of Shareholders as practicable, the Directors shall hold an organizational meeting for the purpose of electing Officers and the transaction of any other business. Other meetings of the Board may be held at any time upon the call of the Chairman of the Board, the President, or any two (2) Directors. Meetings of the Board may be held within or without the State of Ohio. Notice of the time and place of each meeting of the Board shall be given to each Director as provided for under Ohio law, at least two (2) days before the meeting, which notice need not specify the purposes of the meeting. Unless otherwise specifically stated in the notice thereof any business may be transacted at any meeting of the Board.
     Notice of any meeting of the Board may be waived by any Director in writing, either before or after such meeting, or by his attendance at any such meeting without protesting the lack of proper notice prior to or at the commencement of such meeting. If any meeting is adjourned, notice of the adjournment need not be given if the time and place to which it is adjourned are fixed and announced at such meeting.
Section 6. Action of Directors Without a Meeting
     Any action which may be taken at a meeting of the Board or at a meeting of a Committee of Directors may be taken without a meeting if approved and authorized by a writing or writings
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signed by all the Directors or members of the Committee, respectively, which writing or writings shall be filed or entered upon the records of the Company.
Section 7. Quorum
     Four (4) Directors shall be necessary to constitute a quorum for the transaction of business at a meeting, provided that a majority of the Directors at a meeting duly held, whether or not a quorum exists, may adjourn such meeting form time to time.
     The act of a majority of the Directors present at a meeting at which a quorum is present is the act of the Board unless the act of a greater number is required by the Amended and Restated Articles of Incorporation or these Regulations.
Section 8. Committees
     The Board of Directors may from time to time appoint three (3) or more Directors to constitute one or more Committees of Directors. The resolution establishing each such Committee shall specify a designation by which it shall be known and shall fix its purpose, powers, authority and duration of existence. The Board of Directors may delegate to any such Committee any of the authority of the Board, however conferred, other than that of filling vacancies among the Directors or in any Committee of Directors.
     The Board of Directors may likewise appoint one or more Directors as alternate members of any such Committee, who may take the place of any absent member or members at any meeting of such Committee.
     Each such Committee and each member thereof shall serve at the pleasure of the Board of Directors, shall act only in the intervals between meetings of the Board, and shall be subject to the control and direction of the Board. All actions taken by any such Committee shall be reported in writing to the Board at its first meeting thereafter.
     An act or authorization of any act by any such Committee within the authority delegated to it by the resolution establishing it shall be effective for all purposes as the act or authorization by the Board of Directors.
     In every case, the affirmative vote of a majority of its members at a meeting, or the written consent of all of the members of any such Committee without a meeting, shall be necessary for the approval of any action.
     In particular, the Board of Directors may create an Executive Committee in accordance with the foregoing provisions of this Section. If created, the Executive Committee shall possess and may exercise all of the powers of the Board in the management and control of the business of the Company during the intervals between meetings of the Board subject to the foregoing provisions of this Section. The Chairman of the Executive Committee shall be determined by the Board of Directors from time to time. All action taken by the Executive Committee shall be reported in writing to the Board of Directors at its first meeting thereafter.
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Section 9. Compensation
     For his attendance at each meeting of the Board of Directors or of a Committee of Directors, or for other services rendered, each Director shall receive such reasonable compensation, reimbursement for expenses, and other benefits as the Board shall from time to time determine and irrespective of any personal interest of any of them. The Board shall also have authority to provide for reimbursement for expenses and to establish reasonable compensation and other benefits for services rendered to the Company by each Officer and may delegate such authority to one or more Officers or Directors.
ARTICLE III
RECORD DATES
     For any lawful purpose including without limitation the determination of the Shareholders who are entitled to:

 	1.	 	receive notice of or to vote at a Meeting of Shareholders,	
 		
 	2.	 	receive payment of any dividend or distribution,	
 		
 	3.	 	receive or exercise rights of purchase of or subscription for, or exchange or conversion or, shares or other securities, subject to contract rights with respect thereto, or	
 		
 	4.	 	participate in the execution of written consents, waivers or releases,	
the Board of Directors may fix a record date which shall not be a date earlier than the date on which the record date is fixed and, in the cases provided for in clauses (1), (2) and (3) above, shall not be more than sixty (60) days preceding the date of the Meeting of Shareholders, or the date fixed for the payment of any dividend or distribution, or the date fixed for the receipt or the exercise of rights, as the case may be. The record date for the purpose of the determination of the Shareholders who are entitled to receive notice of or to vote at a Meeting of Shareholders shall continue to be the record date for all adjournments of such meeting, unless the Board of Directors or the persons who shall have fixed the original record date shall, subject to the limitations set forth in this Article, fix another date. In case a new record date is so fixed, notice thereof and of the date to which the meeting shall have been adjourned shall be given to Shareholders of record as of such date in accordance with the same requirements as those applying to a meeting newly called. The Board of Directors may close the share transfer books against transfers of shares during the whole or any part of the period provided for in this Article, including the date of the Meeting of Shareholders and the period ending with the date, if any, to which adjourned.
ARTICLE IV
OFFICERS
Section 1. General Provisions, Powers and Duties
     The Board of Directors may elect a Chairman of the Board and a Controller and shall elect a President, one or more Vice Presidents, a Secretary and a Treasurer, and such other
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Officers as the Board may from time to time deem necessary. The Chairman of the Board shall be a Director. Any two (2) or more of such offices may be held by the same person, but no Officer shall execute, acknowledge, attest or verify any instrument in more than one capacity if such instrument is required to be executed, acknowledged, attested or verified by two (2) or more Officers.
     All Officers, as between themselves and the Company, shall respectively have such authority and perform such duties as are customarily incident to their respective offices, and as may be specified from time to time by the Board of Directors, regardless of whether such authority and duties are customarily incident to such offices. In the absence of any Officer of the Company, or for any other reason the Board may deem sufficient, the Board may delegate from time to time the powers or duties of such Officer, or any of them, to any other Officer or to any Director.
     The Board may from time to time delegate to any Officer authority to appoint and remove subordinate Officers and to prescribe their authority and duties.
     Since the lawful purposes of the Company include the acquisition and ownership of real property, personal property and property in the nature of patents, copyrights and trademarks and the protection of the Company’s property rights in its patents, copyrights and trademarks, each of the Officers of the Company is empowered to execute any power of attorney necessary to protect, secure, or vest the Company’s interest in and to real property, personal property and its property protectable by patents, trademarks and copyright registrations and to secure such patents, copyrights and trademark registrations.
Section 2. Term of Office and Vacancies
     The elected Officers of the Company shall hold office until the succeeding organizational meeting of the Board of Directors and until their successors are elected, except in case of resignation, death, removal or retirement. The Board of Directors may remove any Officer at any time, with or without cause, by a majority vote of the members of the Board then in office. Any vacancy in any office may be filled by the Board of Directors.
Section 3. Chairman of the Board
     The Chairman of the Board, if any, shall preside at all meetings of the Board of Directors, and shall have such authority and perform such duties as the Board may determine.
Section 4. President
     The President shall preside at all meetings of the Board of Directors in the absence of the Chairman of the Board unless otherwise determined by the Board. The President shall have such authority and perform such duties as the Board of Directors may determine.
Section 5. Chief Executive Officer
     The Board of Directors shall determine from time to time which Officer shall be designated as the Chief Executive Officer of the Company. Subject to directions of the Board of
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Directors, he shall have general executive supervision of the property, business and affairs of the Company, and shall see that all orders and recommendations of the Board are carried into effect.
Section 6. Vice Presidents
     The Vice President or Vice Presidents shall have such authority and shall perform such duties as may be delegated to them by the Chief Executive Officer or as may be determined by the Board of Directors. In case of the disability or absence of the President, or in case of a vacancy existing in the office of the President, a Vice President shall be designated by the Board of Directors to perform all duties and possess all of the authority of the President until such time as a new President is elected by the Board.
Section 7. Secretary
     The Secretary shall keep the minutes of the meetings of Shareholders and of the Board of Directors and the Executive Committee (unless otherwise directed by the Executive Committee). He shall keep such books as may be required by the Board of Directors, give such notice of Shareholders’ meetings and Board meetings as may be required by law or these Regulations, and perform such other duties as the Shareholders or the Board may determine.
Section 8. Treasurer
     The powers and duties of the Treasurer shall be to keep safe all moneys of the Company which may be deposited from time to time with the Treasurer, and to pay out said moneys in such manner as may be prescribed by the Board of Directors, and generally to do and perform all such other duties as pertain to his office and as may be determined by the Board.
Section 9. Controller
     The Controller shall be the chief accounting officer of the Company. He shall prepare such accounting statistics, records and reports as may be prescribed by the Board of Directors, and generally do and perform all such other duties as determined by the Board.
Section 10. Assistant Officers
     The Board of Directors may elect one or more Assistant Secretaries, Assistant Treasurers and/or Assistant Controllers, who shall have such powers and perform such duties as directed by their respective principal Officers or as the Board may determine.
Section 11. Other Officers
     All other Officers shall have such powers and perform such duties as the Board of Directors may determine.
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ARTICLE V
CERTIFICATES FOR SHARES
Section 1. Certificates for Shares
     Each holder of shares is entitled to one or more certificates for shares of the Company in such form not inconsistent with law and the Amended and Restated Articles of Incorporation as shall be approved by the Board of Directors. Each such certificate shall be signed by the Chairman of the Board or the President, and by the Secretary or Assistant Secretary or the Treasurer or Assistant Treasurer of the Company, which certificate shall certify the number and class of shares held by each Shareholder in the Company, but no certificates for shares shall be executed or delivered until such shares are fully paid.
     When such a certificate is countersigned by an incorporated transfer agent or registrar, the signature or any of said Officers of the Company may be a facsimile, engraved, stamped or printed.
     Although any Officer of the Company, whose manual or facsimile, engraved, stamped or printed signature is affixed to such a certificate ceases to be such Officer before the certificate is delivered, such certificate shall be effective in all respects when delivered.
Section 2. Transfer of Shares
     Shares of the Company shall be transferable upon the books of the Company by the holders thereof in person or by a duly authorized attorney upon surrender and cancellation of certificates for a like number of shares of the same class of shares, with duly executed assignment and power of transfer endorsed thereon or attached thereto, and with such proof of authenticity of the signatures to such assignment and power of transfer as the Company or its agents may reasonably require.
Section 3. Lost, Stolen or Destroyed Certificates
     The Company may issue a new certificate for shares in place of any certificate or certificates heretofore issued by the Company alleged to have been lost, stolen or destroyed and upon the making of an affidavit of that fact by the person claiming the certificate of stock to have been lost, stolen or destroyed.
     When authorizing such issues of a new certificate or certificates, the Board of Directors may, in its discretion, and as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed certificate or certificates, or his legal representatives, to attest the same in such manner as it shall require and to give the Company a bond in such sum and containing such terms as the Board may direct as indemnity against any claim that may be made against the Company with respect to the certificate or certificates alleged to have been lost, stolen or destroyed.
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Section 4. Transfer Agents and Registrars
     The Board of Directors may appoint or revoke the appointment of transfer agents and registrars and may require all certificates for shares to bear the signature of such transfer agents and registrars or any of them.
     The Board of Directors shall have authority to make all such rules and regulations as it may deem expedient concerning the issuance, transfer and registration of certificates for shares of the Company.
ARTICLE VI
INDEMNIFICATION OF DIRECTORS, OFFICERS AND EMPLOYEES
     The Company shall indemnify any director or officer and any former director or officer of the Company and any such director or officer who is or has served at the request of the Company as a director, officer or trustee of another corporation, partnership, joint venture, trust or other enterprise (and his heirs, executors and administrators) against expenses, including attorney’s fees, judgments, fines and amounts paid in settlement, actually and reasonably incurred by him by reason of the fact that he is or was such director, officer or trustee in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative to the full extent permitted by applicable law. The indemnification provided for herein shall not be deemed to restrict the right of the Company (i) to indemnify employees, agents and others to the extent not prohibited by such law, (ii) to purchase and maintain insurance or furnish similar protection on behalf of or for any person who is or was a director, officer, employee or agent of the Company, or any person who is or was serving at the request of the Company as a director, officer, trustee, employee or agent of another corporation, joint venture, partnership, trust or other enterprise against any liability asserted against him or incurred by him in any such capacity or arising out of his status as such, and (iii) to enter into agreements with persons of the class identified in clause (ii) above indemnifying them against any and all liabilities (or such lesser indemnification as may be provided in such agreements) asserted against or incurred by them in such capacities.
ARTICLE VII
FISCAL YEAR
     The fiscal year of the Company shall be fixed by resolution of the Board of Directors and shall remain as fixed until changed by resolution of the Board from time to time.
ARTICLE VIII
CANCELLATION OF FORMER CODES OF REGULATIONS
     This Amended and Restated Code of Regulations supersedes all Code of Regulations and amendments theretofore adopted.
ARTICLE IX
EMERGENCY REGULATIONS
     The Directors may adopt, either before or during an emergency, as that term is defined by the General Corporation Law of Ohio, any emergency regulations permitted by the General
 15 

 

Corporation Law of Ohio which shall be operative only during such an emergency. In the event the Board of Directors does not adopt any such emergency regulations, the special rules provided in the General Corporation Law of Ohio shall be applicable during an emergency as therein defined.
ARTICLE X
AMENDMENTS
     The Company may amend, change or add to this Amended and Restated Code of Regulations for any lawful purpose (i) to the extent permitted by Chapter 1701 of the Ohio General Corporation Law, by the Directors or (ii) by the vote or written consent of the holders of record of shares entitling them to exercise a majority of the voting power of the Company in respect of any such amendment, change or addition; provided, however, that if any such amendment, change or addition is adopted by written consent without a meeting of the Shareholders, the Secretary shall enter any such amendment, change or addition in the records of the Company and provide a copy thereof to each Shareholder of record who would have been entitled to vote thereon and did not participate in the adoption thereof in any manner provided for under Ohio law.
ARTICLE XI
OHIO CONTROL SHARE ACT
     The provisions of Section 1701.831 of the Ohio Revised Code, as amended, requiring shareholder approval of control share acquisitions, as defined in Section 1701.01(Z) of such Code, as amended, shall not be applicable to the Company.
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EXHIBIT 21
Direct and Indirect Subsidiaries, and Operating Divisions,
of Myers Industries, Inc.
As of December 31, 2009
North and Central American Operations
 	 	 	 	 	 	 	
Ameri-Kart Corp.	 	Kansas	
 	 	– WEK South Corp	 	North Carolina	
 	 	 	 	 	 	 	
Ameri-Kart (MI) Corp.	 	Michigan	
 	 	 	 	 	 	 	
Buckhorn Inc.	 	Ohio	
 	 	– BRP Hannibal Inc.	 	Missouri	
 	 	 	 	 	 	 	
Grower Express Trucking, Inc.	 	Ohio	
 	 	 	 	 	 	 	
JMKO Corp.	 	Missouri	
 	 	– AC Buckhorn LLC (50%)	 	Missouri	
 	 	 	 	 	 	 	
Lone Star Plastics, Inc.	 	Nevada	
 	 	– Amerikan LLC (100%)	 	Florida	
 	 	– Kord USA, Inc.	 	South Carolina	
 	 	– Texan Polymer Group, Inc.	 	Texas	
 	 	– WhiteRidge Plastics, LLC	 	North Carolina	
 	 	 	 	 	 	 	
MYE Automotive, Inc.	 	Delaware	
 	 	– MRP, Inc.	 	Michigan	
 	 	– WEK Industries, Inc.	 	Delaware	
 	 	 	 	 	 	 	
MYE Canada Operations Inc.	 	Canada	
 	 	 	 	 	 	 	
MYEcap Financial Corp.	 	Ohio	
 	 	 	 	 	 	 	
MYELux, LLC	 	Ohio	
 	 	 	 	 	 	 	
Myers do Brasil Embalagens Plasticas Ltda.	 	Brazil	
 	 	 	 	 	 	 	
Myers Tire Supply International, Inc.	 	Ohio	
 	 	– Myers de El Salvador S.A. De C.V. (75%)	 	El Salvador	
 	 	 	 	– Orientadores Comerciales S.A.	 	Guatemala	
 	 	 	 	– Myers de Panama S.A.	 	Panama	
 	 	 	 	– Myers TSCA, S.A.	 	Panama	
 	 	 	 	 	 	 	
Myers de El Salvador S.A. De C.V. (25%)	 	El Salvador	
 	 	 	 	 	 	 	
Myers Missouri, Inc.	 	Missouri	
 	 	– AC Buckhorn LLC (50%)	 	Missouri	
 	 	 	 	 	 	 	
Myers Tire Supply Distribution, Inc.	 	Ohio	
 	 	 	 	 	 	 	
Myers Tire Supply.com, Inc.	 	Ohio	
 	 	 	 	 	 	 	
Patch Rubber Company	 	North Carolina	
 	 	– Kwik Patch Private Ltd. (39.98%)	 	India	
 	 	 	 	 	 	 	
Productivity California, Inc.	 	California	

 

EXHIBIT 21 continued
Direct and Indirect Subsidiaries, and Operating Divisions,
of Myers Industries, Inc.
As of December 31, 2009
Reported Operating Divisions of Myers Industries, Inc. and Subsidiaries
 	 	 	 	 	 	 	
Akro-Mils (of Myers Industries, Inc.)	 	Akron, Ohio	
 	 	 	 	 	 	 	
Dillen Products (of Myers Industries, Inc.)	 	Middlefield, Ohio	
 	 	 	 	 	 	 	
Molded Solutions (of Buckhorn Rubber Products Inc.)	 	Mebane, NC	
 	 	 	 	 	 	 	
Myers Tire Supply (of Myers Industries, Inc.)	 	Akron, Ohio	
 	 	 	 	 	 	 	
Buckhorn Canada (of MYE Canada Operations Inc.)	 	Ontario, Canada	
 	 	 	 	 	 	 	
Myers Tire Supply of Canada (of MYE Canada Operations Inc.)	 	Ontario, Canada	
 	 	 	 	 	 	 	
Listo Products (of MYE Canada Operations Inc.)	 	Yukon Territory	
 	 	 	 	 	 	 	
ITML Horticultural Products (of MYE Canada Operations Inc.)	 	Ontario, Canada	

Consent of Independent Registered Public Accounting Firm
The Board of Directors
Myers Industries, Inc.:
We consent to the incorporation by reference in the registration statements Nos. 333-158055, 333-71852, 333-90367 and 33-47600 on
Form S-8; Nos. 333-124586 and 33-50286 on Form S-3, of Myers Industries, Inc. and subsidiaries (Company), of our reports dated March 12, 2010, with respect to the statements of consolidated financial position of the Company as of December 31, 2009 and 2008, and the related statements of consolidated (loss) income, shareholders’ equity and comprehensive (loss) income, and cash flows for each of the years in the three-year period ended December 31, 2009, and the effectiveness of internal control over financial reporting as of December 31, 2009, which reports appear in the December 31, 2009 annual report on Form 10-K of the Company.
/s/ KPMG LLP

Cleveland, Ohio
March 12, 2010

Exhibit 31 (a)
Certification Per Section 302 of the Sarbanes-Oxley Act of 2002
I, John C. Orr, certify that:
     1. I have reviewed the annual report on Form 10-K of Myers Industries, Inc. for the period ended December 31, 2009 which this certification accompanies;
     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
     4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
          (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
          (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
          (c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
          (d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
     5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
          (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
          (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 	 	 	 	 	
Date: March 12, 2010	 	/s/ John C. Orr
 
John C. Orr, President and	 	 	
 	 	Chief Executive Officer	 	 	
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Exhibit 31 (b)
Certification Per Section 302 of the Sarbanes-Oxley Act of 2002
I, Donald A. Merril, certify that:
     1. I have reviewed the annual report on Form 10-K of Myers Industries, Inc.for the period ended December 31, 2009 which this certification accompanies;
     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
     4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
          (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
          (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
          (c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
          (d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
     5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
          (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
          (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 	 	 	 	 	
Date: March 12, 2010	 	/s/ Donald A. Merril
 
Donald A. Merril, Vice President, Chief Financial	 	 	
 	 	Officer and Corporate Secretary	 	 	
 66 

Exhibit 32
 CERTIFICATION
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
     In connection with the Annual Report of Myers Industries, Inc. (the Company) on Form 10-K for the period ended December 31, 2009, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, John C. Orr, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:
(1) The Annual Report on Form 10-K of the Company for the period ended December 31, 2009 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 	 	 	 	 	
 	 	/s/ John C. Orr
 
John C. Orr, President and	 	 	
 	 	Chief Executive Officer	 	 	
 	 	 	 	 	
 	 	Dated: March 12 , 2010	 	 	
Exhibit 32
CERTIFICATION
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
     In connection with the Annual Report of Myers Industries, Inc. (the Company) on Form 10-K for the period ended December 31, 2009, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Donald A. Merril, Vice President, Chief Financial Officer and Corporate Secretary of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:
(1) The Annual Report on Form 10-K of the Company for the period ended December 31, 2009 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 	 	 	 	 	
 	 	/s/ Donald A. Merril
 
Donald A. Merril, Vice President, Chief Financial	 	 	
 	 	Officer and Corporate Secretary	 	 	
 	 	 	 	 	
 	 	Dated: March 12 , 2010	 	 	
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
 67