<HTML> <HEAD> <TITLE>Myers Industries, Inc. Form 10-Q for 9/30/99</TITLE> </HEAD> <BODY bgcolor="#FFFFFF"> <!-- PAGEBREAK --> <P align="center"><B>SECURITIES AND EXCHANGE COMMISSION<BR> WASHINGTON, D.C. 20549</B> <P> <HR noshade width="100" align="center" size="1"> <P> <P align="center"><FONT size="3"><B>FORM 10-Q</B></FONT> <P><B>(Mark One)</B> <P><B>[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE<BR> ACT OF 1934</B> <P align="center"><B>For the quarterly period ended <U>September 30, 1999</U></B> <P align="center"><FONT size="3"><B>or</B></FONT> <P><B>[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE<BR> ACT OF 1934</B> <P>For the transition period from ______________________ to _____________________ <P align="center"><B>Commission file number <U>I-8524</U></B> <P align="center"><B><U>MYERS INDUSTRIES, INC.</U></B> <P align="center"><FONT size="3"><B>(Exact name of registrant as specified in its charter)</B></FONT> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center"> <TR valign="bottom"> <TD width="61%"> </TD> <TD width="5%"> </TD> <TD width="34%"> </TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><FONT size="2"><B>OHIO</B></FONT></TD> <TD></TD> <TD nowrap align="center"><FONT size="2"><B>#34-0778636</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><HR size="1"></TD> <TD></TD> <TD nowrap align="center"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD valign="top"><FONT size="2">(State or other jurisdiction of incorporation or organization)</FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> (I.R.S. Employer Identification No.)</FONT></TD> </TR> </TABLE> </CENTER> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center"> <TR valign="bottom"> <TD width="80%"> </TD> <TD width="5%"> </TD> <TD width="15%"> </TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><FONT size="2"><B>1293 SOUTH MAIN STREET, AKRON, OHIO</B></FONT></TD> <TD></TD> <TD nowrap align="center"><FONT size="2"><B>44301</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><HR size="1"></TD> <TD></TD> <TD nowrap align="center"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD valign="top"><FONT size="2">(Address of principal executive offices)</FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> (Zip Code)</FONT></TD> </TR> </TABLE> </CENTER> <P>Registrant’s telephone number, including area code (330) <U>253-5592</U><BR> <P> Indicate 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 such filing requirements for the past 90 days. Yes [X]. No [ ]. <P align="center"><B>Applicable Only to Issuers Involved in Bankruptcy<BR> Proceedings During the Preceding Five Years</B> <P> Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [ ]. No [ ]. <P> As of October 31, 1999, the number of shares outstanding of the issuer’s Common Stock was: <P align="center"><B>19,992,495<BR> =========</B> <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART 1 — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION<BR> AS OF SEPTEMBER 30, 1999 AND DECEMBER 31, 1998</B> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center"> <TR valign="bottom"> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="54%"> </TD> <TD width="3%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="3%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>September 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center" colspan="3"><FONT size="2"><B>ASSETS</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> </TR> <TR valign="bottom"> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CURRENT ASSETS</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Cash and temporary cash investments</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">7,913,061</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">34,832,151</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Accounts receivable-less allowances of $4,111,000 and $2,396,000, respectively</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">117,681,587</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">62,855,111</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Inventories</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Finished and in-process products</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">62,935,871</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">44,182,030</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Raw materials and supplies</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">18,121,598</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">9,236,913</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">81,057,469</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">53,418,943</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Prepaid expenses</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">1,872,375</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">2,543,996</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">TOTAL CURRENT ASSETS</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">208,524,492</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">153,650,201</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">OTHER ASSETS</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Excess of cost over fair value of net assets of companies acquired</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">208,602,946</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">37,481,612</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Patents and other intangible assets</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">2,387,885</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">2,104,327</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Other</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">4,776,409</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">4,028,655</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">215,767,240</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">43,614,594</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">PROPERTY, PLANT & EQUIPMENT, AT COST</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Land</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">6,752,584</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">2,854,905</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Buildings and leasehold improvements</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">64,573,307</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">53,484,959</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Machinery and equipment</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">226,156,081</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">147,405,559</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">297,481,972</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">203,745,423</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Less allowances for depreciation and amortization</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">114,970,607</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">94,302,430</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">182,511,365</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">109,442,993</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">606,803,097</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">306,707,788</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> </TABLE> </CENTER> <P align="center">-1- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION<BR> AS OF SEPTEMBER 30, 1999 AND DECEMBER 31, 1998</B> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center"> <TR valign="bottom"> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="54%"> </TD> <TD width="3%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="3%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>September 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center" colspan="3"><FONT size="2"><B>LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> </TR> <TR valign="bottom"> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CURRENT LIABILITIES</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Accounts payable</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">37,229,823</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">15,863,124</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Accrued expenses</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Employee compensation</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">25,138,929</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">13,094,384</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Taxes</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">1,186,610</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">2,673,698</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Other</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">20,260,918</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">13,214,158</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Current portion of long-term debt</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">4,792,377</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">6,388,146</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">TOTAL CURRENT LIABILITIES</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">88,608,657</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">51,233,510</FONT></TD> <TD></TD> </TR> <TR> <TD> </TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">LONG-TERM DEBT, less current portion</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">293,444,295</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">48,832,240</FONT></TD> <TD></TD> </TR> <TR> <TD> </TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">DEFERRED INCOME TAXES</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">4,494,521</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">3,953,185</FONT></TD> <TD></TD> </TR> <TR> <TD> </TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">SHAREHOLDERS’ EQUITY</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Serial Preferred Shares (authorized 1,000,000)</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">0</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">0</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Common Shares, without par value (authorized<BR> 60,000,000 shares; outstanding 20,246,295 and<BR> 20,171,867, respectively)</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">12,815,706</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">11,610,996</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Additional paid-in capital</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">172,510,509</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">134,280,522</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Accumulated other comprehensive income</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(1,512,624</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(83,002</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Retained income</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">36,442,033</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">56,880,337</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">220,255,624</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">202,688,853</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">606,803,097</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">306,707,788</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> </TABLE> </CENTER> <P align="center">-2- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>CONDENSED STATEMENT OF CONSOLIDATED INCOME</B> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center"> <TR valign="bottom"> <TD width="3%"> </TD> <TD width="32%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>FOR THE THREE</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>FOR THE NINE</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>MONTHS ENDED</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>MONTHS ENDED</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD colspan="7"><HR size="1"></TD> <TD></TD> <TD colspan="7"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30,</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Net Sales</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">139,768,838</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">92,196,199</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">414,158,294</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">281,501,941</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Costs of Sales</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">91,513,996</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">61,714,821</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">264,524,814</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">185,577,303</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Gross Profit</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">48,254,842</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">30,481,378</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">149,633,480</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">95,924,638</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Operating Expenses</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">36,113,558</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">21,681,702</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">101,338,599</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">62,146,677</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Operating Income</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">12,141,284</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">8,799,676</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">48,294,881</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">33,777,961</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Interest Expense</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">4,482,515</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">437,946</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">10,239,130</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">732,294</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Income Before Income Taxes</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">7,658,769</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">8,361,730</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">38,055,751</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">33,045,667</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Income Taxes</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">3,692,000</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">3,444,000</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">16,654,000</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">13,540,000</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Net income</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">3,966,769</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">4,917,730</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">21,401,751</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">19,505,667</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> <TR> <TD> </TD> </TR> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Net income per Common Share*</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.20</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.24</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">1.06</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.97</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Dividends per Common Share*</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.06</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.05</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.17</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">.145</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="2"><FONT size="2">Weighted average number of Common<BR> Shares outstanding*</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">20,242,996</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">20,142,365</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">20,217,527</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">20,127,063</FONT></TD> <TD></TD> </TR> </TABLE> </CENTER> <P> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR valign="top"> <TD width="1%" align="left">*</TD> <TD width="99%">Adjusted for a ten percent stock dividend in August, 1999.</TD> </TR> </TABLE> <P align="center">-3- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>STATEMENTS OF CONSOLIDATED CASH FLOWS<BR> FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998</B> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center"> <TR valign="bottom"> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="59%"> </TD> <TD width="3%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="3%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30,</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CASH FLOWS FROM OPERATING ACTIVITIES</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Net income</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">21,401,751</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">19,505,667</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Items not affecting use of cash</FONT></TD> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD colspan="2"><FONT size="2">Depreciation</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">22,580,451</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">11,204,958</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Amortization of excess of cost over fair value of net assets of companies acquired</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">4,848,285</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">838,432</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Amortization of other intangible assets</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">564,265</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">339,770</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Cash flow provided by (used for) working capital</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Accounts receivable</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(6,742,146</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">1,813,539</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Inventories</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(3,516,617</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(1,947,377</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Prepaid expenses</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">815,065</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">1,143,534</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD></TD> <TD><FONT size="2">Accounts payable and accrued expenses</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(5,019,109</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(2,221,037</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Net cash provided by operating activities</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">34,931,945</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">30,677,486</FONT></TD> <TD></TD> </TR> <TR> <TD> </TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CASH FLOWS FROM INVESTING ACTIVITIES</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Acquisition of businesses, net of cash acquired</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(207,002,970</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(18,267,610</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Additions to property, plant and equipment, net</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(18,516,824</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(12,483,822</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Other</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">364,261</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">289,475</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Net cash used for investing activities</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(225,155,533</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(30,461,957</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR> <TD> </TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CASH FLOWS FROM FINANCING ACTIVITIES</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Long-term debt proceeds</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">75,000,000</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">0</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Net borrowing (repayment) of credit facility</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">90,709,869</FONT></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(552,063</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Cash dividends paid</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(3,420,119</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(2,928,062</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Proceeds from issuance of common stock</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">1,014,748</FONT></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">725,797</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Repurchase of common stock</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">0</FONT></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(82,687</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD colspan="2"><FONT size="2">Net cash provided by financing activities</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">163,304,498</FONT></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(2,837,015</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"><FONT size="2">(DECREASE) INCREASE IN CASH AND TEMPORARY CASH<BR> INVESTMENTS</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(26,919,090</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(2,621,486</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CASH AND TEMPORARY CASH INVESTMENTS JANUARY 1</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">34,832,151</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">6,297,726</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"><FONT size="2">CASH AND TEMPORARY CASH INVESTMENTS SEPTEMBER 30</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">7,913,061</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">3,676,240</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="3"></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> </TABLE> </CENTER> <P align="center">-4- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>STATEMENT OF SHAREHOLDERS’ EQUITY<BR> FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999</B> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="90%" align="center"> <TR valign="bottom"> <TD width="26%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Accumulated</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Additional</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Other</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Comprehensive</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Common</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Paid-In</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Comprehensive</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Retained</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Income</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Stock</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Capital</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Income</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>Income</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD><FONT size="2">December 31, 1998</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">11,610,996</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">134,280,522</FONT></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">($83,002</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">56,880,337</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">Net Income</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">21,401,751</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">21,401,751</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">Foreign Currency Translation Adjustment</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(1,429,622</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(1,429,622</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD><FONT size="2">Comprehensive Income</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">19,972,129</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> <TR valign="bottom"> <TD><FONT size="2">Common Stock Issued</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">45,606</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">969,142</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">Purchases for Treasury</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">0</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">0</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">10% Stock Dividend</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">1,159,104</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">37,260,845</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(38,419,936</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">Dividends</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(3,420,119</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD><FONT size="2">September 30, 1999</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">12,815,706</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">172,510,509</FONT></TD> <TD></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">($1,512,624</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">36,442,033</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> </TABLE> </CENTER> <P align="center">-5- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>NOTES TO FINANCIAL STATEMENTS</B> <P align="left"><B>(1) STATEMENT OF ACCOUNTING POLICY</B> <P> The accompanying financial statements include the accounts of Myers Industries, Inc. and subsidiaries (Company), and have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s latest annual report on Form 10-K. <P> In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of September 30, 1999, and the results of operations and cash flows for the nine months ended September 30, 1999 and 1998. <P align="left"><B>(2) ACQUISITIONS</B> <P> On February 4, 1999, the Company acquired all of the shares of the entities comprising Allibert Equipement, the material handling division of Sommer Allibert S.A. and acquired Allibert-Contico, LLC, a joint venture between Sommer Allibert and Contico International, Inc. for a total purchase price of approximately $150 million. The acquired businesses have five manufacturing facilities in Europe and one in North America and had 1998 annual sales of approximately $145 million. <P> In August 1999, the Company acquired substantially all of the assets of the Dillen Products Companies of Middlefield, Ohio for approximately $50 million and all of the outstanding shares of Listo Products, Ltd. of Canada for approximately $15 million. Dillen and Listo are leading manufacturers of plastic horticultural containers including pots, trays, saucers and decorative planters for customers including greenhouses and nurseries as well as retail garden centers and mass merchandisers. In fiscal 1998, Dillen and Listo had sales of approximately $40 million and $12 million, respectively. <P> The acquisitions will be accounted for under the purchase method of accounting and, accordingly, the total purchase price has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values. At September 30, 1999, the purchase price allocations have been based on estimates with the excess of purchase price over fair value of net assets acquired of approximately $175 million being amortized over lives of 15 to 40 years. <P align="center">-6- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>NOTES TO FINANCIAL STATEMENTS</B> <P align="left"><B>(2) ACQUISITIONS (Con’t)</B> <P> The following unaudited pro-forma information presents a summary of consolidated results of operations of the Company and the acquired businesses as if the acquisitions had occurred January 1, 1998. <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center"> <TR valign="bottom"> <TD width="36%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>Three Months Ended</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>Nine Months Ended</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><FONT size="2"><B>(In thousand, except per share)</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>September 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>September 30,</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD colspan="7"><HR size="1"></TD> <TD></TD> <TD colspan="7"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD><FONT size="2">Sales</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">143,219</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">135,178</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">458,805</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">423,792</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">Net Income</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">3,367</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">3,505</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">21,985</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">17,601</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD><FONT size="2">Net Income Per Share</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">.17</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">.17</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">1.09</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">.87</FONT></TD> <TD></TD> </TR> </TABLE> </CENTER> <P> These unaudited pro-forma results have been prepared for comparative purposes only and may not be indicative of results of operations which actually would have resulted had the combination been in effect on January 1, 1998, or of future results. <P align="left"><B>(3) SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION</B> <P> The Company made cash payments for interest expense of $4,289,660 and $580,930 for the three months ended September 30, 1999 and 1998, respectively. Cash payments for interest were $9,370,295 and $1,587,712 for the nine months ended September 30, 1999 and 1998. Cash payments for income taxes were $8,330,477 and $5,199,443 for the three months ended September 30, 1999 and 1998. Cash payments for income taxes were $23,803,047 and $16,664,083 for the nine months ended September 30, 1999 and 1998, respectively. <P align="left"><B>(4) SEGMENT INFORMATION</B> <P> The Company’s business units have separate management teams and offer different products and services. Using the criteria of FASB No. 131, these business units have been aggregated into two reportable segments; Distribution of after-market repair products and services and Manufacturing of polymer and metal products. The aggregation of business units is based on management by the chief operating decision maker for the segment as well as similarities of production processes, distribution methods and economic characteristics (e.g. average gross margin and the impact of economic conditions on long-term financial performance). <P> The Company’s distribution segment is engaged in the distribution of equipment, tools and supplies used for tire servicing and automotive underbody repair. The distribution segment operates domestically through 42 branches located in major cities throughout the United States and in foreign countries through export and businesses in which the Company holds an equity interest. <P align="center">-7- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>NOTES TO FINANCIAL STATEMENTS</B> <P align="left"><B>(4) SEGMENT INFORMATION (Con’t)</B> <P> The Company’s manufacturing segment designs, manufactures and markets a variety of polymer based plastic and rubber products. These products are manufactured primarily through the molding process in facilities throughout the United States and Europe. <P> Operating income for each segment is based on net sales less cost of products sold, and the related selling, administrative and general expenses. In computing segment operating income general corporate overhead expenses and interest expenses are not included. <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center"> <TR valign="bottom"> <TD width="3%"> </TD> <TD width="47%"> </TD> <TD width="3%"> </TD> <TD width="4%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="3%"> </TD> <TD width="4%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> <TD width="3%"> </TD> <TD width="4%"> </TD> <TD width="1%"> </TD> <TD width="5%"> </TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>Three Months Ended</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>Nine Months Ended</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center" colspan="2"><FONT size="2"><B>(In Thousands)</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>September 30,</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="7"><FONT size="2"><B>September 30,</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD colspan="7"><HR size="1"></TD> <TD></TD> <TD colspan="7"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD nowrap align="center" colspan="2"><FONT size="2"><B>NET SALES</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD> </TR> <TR valign="bottom"> <TD></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> <TD></TD> <TD colspan="3"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Distribution of aftermarket repair products<BR> and services</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">41,759</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">42,668</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">118,570</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">117,641</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Manufacturing of polymer and metal<BR> products</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">101,620</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">53,038</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">305,806</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">174,155</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Intra-segment elimination</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(3,610</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(3,510</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(10,218</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(10,294</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">139,769</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">92,196</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">414,158</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">281,502</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"><FONT size="2"><B>INCOME BEFORE INCOME TAXES</B></FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Distribution of aftermarket repair products<BR> and services</FONT></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">4,237</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">4,474</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">11,656</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">10,796</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Manufacturing of polymer and metal<BR> products</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">9,160</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">6,420</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">42,691</FONT></TD> <TD></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">28,766</FONT></TD> <TD></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Corporate</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(1,256</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(2,094</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(6,052</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(5,784</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD></TD> <TD><FONT size="2">Interest expense — net</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(4,482</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(438</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(10,239</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> <TD></TD> <TD nowrap align="right"></TD> <TD align="right"><FONT size="2">(732</FONT></TD> <TD nowrap><FONT size="2">)</FONT></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="1"></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">7,659</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">8,362</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">38,056</FONT></TD> <TD></TD> <TD></TD> <TD align="right"><FONT size="2">$</FONT></TD> <TD align="right"><FONT size="2">33,046</FONT></TD> <TD></TD> </TR> <TR valign="bottom"> <TD colspan="2"></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> <TD></TD> <TD></TD> <TD><HR size="4" noshade></TD> <TD></TD> </TR> </TABLE> </CENTER> <P align="center">-8- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>MANAGEMENT’S DISCUSSION AND ANALYSIS OF<BR> FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B> <P align="left"><B>RESULTS OF OPERATIONS</B> <P> The Company reported record sales for both the quarter and nine month periods ended September 30, 1999. In total, sales rose 52 percent to $140 million for the quarter and 47 percent to $414 million for the first nine months as gains in existing business units combined with contributions from acquired companies. Net income for the quarter was down 19 percent to $4 million or $.20 per share from $4.9 million or $.24 per share in the prior year, primarily due to the seasonality of operations in acquired businesses and significantly higher interest expense. For the nine months ended September 30, 1999 net income increased 10 percent to $21.4 million or $1.06 per share from $19.5 million or $.97 per share in 1998. On a pro-forma basis, reflecting the acquired businesses as if they had been included for the full periods presented, sales increased six percent for the quarter and eight percent for the year to date period while net income per share was unchanged at $.17 per share for the quarter and up 25 percent to $1.09 per share for the nine months ended September 30, 1999 compared to $.87 per share for the prior year. <P> For the quarter, net sales increased $47.6 million as higher sales in the Company’s Manufacturing segment offset a slight decline in Distribution segment sales. Sales in the Manufacturing segment increased $48.6 million or 92 percent based on an increase of six percent in existing business units combined with the impact of acquired companies not included in the prior year period. Net sales for the nine months ended September 30, 1999 increased $132.7 million as the Company experienced improvements in both of its business segments. Sales in the Distribution segment increased $1 million or one percent while sales in the Manufacturing segment rose $132 million or 76 percent. Without the impact of acquired companies there was an overall sales increase of 7 percent in the Manufacturing segment primarily the result of higher unit volumes. <P> Cost of sales for the quarter increased $29.8 million or 48 percent reflecting the higher sales levels; however, gross profit as a percentage of sales increased to 34.5 percent from 33.1 percent in the prior year. For the nine months ended September 30, 1999, gross profit increased to 36.1 percent of sales from 34.1 percent in the prior year. For both the quarter and year-to-date periods this improvement in gross margin was primarily attributable to the Manufacturing segment reflecting the impact of acquired companies. <P> Operating expenses increased $14.4 million or 66 percent for the quarter and $39.2 million or 63 percent year-to-date. These increases reflect the additional operating costs of acquired companies combined with higher selling costs resulting from increased sales volume. Expressed as a percentage of sales, operating expenses were 25.8 percent for the quarter and 24.5 percent for the nine months ended September 30, 1999 compared with 23.5 percent for the quarter and 22.1 percent for the nine month period in the prior year. This decrease in operating expense leverage is primarily due to the impact of acquired companies, particularly, those operating in foreign markets. <P align="center">-9- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART I — FINANCIAL INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <P align="center"><B>MANAGEMENT’S DISCUSSION AND ANALYSIS OF<BR> FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B> <P align="left"><B>RESULTS OF OPERATIONS (Con’t)</B> <P> Net interest expense increased to $4.5 million for the quarter and $10.2 million for the nine month period ended September 30, 1999 compared with $437,946 and $732,294 in the same periods of the prior year. This significant increase reflects the higher borrowing levels resulting from business acquisitions. <P> Income taxes as a percent of income before taxes was 43.8 percent for the nine months ended September 30, 1999 compared with 41.0 percent in the prior year. The higher tax rate in 1999 is attributable to an increase in non-deductible amortization expense combined with foreign tax rate differences. <P align="left"><B>LIQUIDITY AND CAPITAL RESOURCES</B> <P> Cash provided by operating activities was $34.9 million for the nine months ended September 30, 1999 compared with $30.7 million for same period in the prior year. Long-term debt increased by $245 million from December 31, 1998 as a result of the Allibert Equipement, Dillen and Listo acquisitions and debt as a percentage of total capitalization increased to 58 percent. Available borrowings under the Company’s credit facility was approximately $85 million at September 30, 1999. Working capital increased to $119.9 million at September 30, 1999 and the Company’s current ratio was 2.4 to 1. <P> Capital expenditures for the nine months ended September 30, 1999 were $18.5 million and the Company anticipates total capital expenditures in the range of $25.0 to $30.0 million for the full year. Management believes that anticipated cash flows from operations and available credit facilities will be sufficient to service debt, fund capital expenditures and meet its short-term and long-term needs. <P align="left"><B>YEAR 2000</B> <P> The Company has been conducting an on-going review to identify potential Year 2000 issues related to both information technology (IT) and non-information technology (non-IT) matters. The Company has implemented plans for each of its business units to correct or replace existing IT systems where significant potential year 2000 failures could occur. The majority of core business software utilized by the Company was acquired from third parties. As of September 30, 1999, core Corporate financial software is Year 2000 compliant, and core business software for the business units is either Year 2000 compliant or has been upgraded and tested. The Company has also been performing an on-going assessment of the Year 2000 readiness of non-IT systems, including production equipment as well as evaluating the status of key vendors and service providers to determine Year 2000 readiness and determine alternatives and contingency plan requirements. To date, no material problems have been identified, and the Company is confident that the Year 2000 issue will not create significant operational problems. To date, the funds which have been spent on year 2000 issues have not been material and based on current assessments remaining expenses are not expected to be material. <P align="center">-10- <!-- PAGEBREAK --> <P><HR noshade><P> <P align="center"><B>PART II — OTHER INFORMATION</B> <P align="center"><B>MYERS INDUSTRIES, INC.</B> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center"> <TR valign="bottom"> <TD width="8%"> </TD> <TD width="5%"> </TD> <TD width="3%"> </TD> <TD width="5%"> </TD> <TD width="8%"> </TD> <TD width="5%"> </TD> <TD width="66%"> </TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><FONT size="2"><B>Item 4.</B></FONT></TD> <TD></TD> <TD nowrap align="center" colspan="5"><FONT size="2"><B>Exhibits and Reports on Form 8-K</B></FONT></TD> </TR> <TR valign="bottom"> <TD nowrap align="center"><HR size="1"></TD> <TD></TD> <TD colspan="5"><HR size="1"></TD> </TR> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> (a) </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">Exhibits</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> (3) </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">(a) </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">MYERS INDUSTRIES, INC. AMENDED AND RESTATED</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">ARTICLES OF INCORPORATION. Reference is made to Exhibit 3(a) to Form 10-Q filed with the Commission on May 17, 1999.</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">(b) </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">MYERS INDUSTRIES, INC. AMENDED AND RESTATED CODE OF REGULATIONS. Reference is made to Exhibit (3)(ii) to Form 10-Q filed with the Commission on May 14, 1994.</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> 27 </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">Financial Data Schedule.</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> (b) </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">Form 8-K</FONT></TD> </TR> <TR><TD><TR><TD><TR><TD><TR><TD> <TR valign="bottom"> <TD valign="top"></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2"> </FONT></TD> <TD></TD> <TD align="left" valign="top"><FONT size="2">Form 8-K filed on August 13, 1999 regarding the completion of (a) the acquisition of the Dillen Products, Inc., and (b) increase to $350.0 million multi-currency credit facility with Bank One Michigan.</FONT></TD> </TR> </TABLE> </CENTER> <P align="center"><B>SIGNATURE</B> <P>Pursuant to the requirements 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. <P> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR valign="top"> <TD width="52%"> </TD> <TD width="48%"><FONT size="3">MYERS INDUSTRIES, INC.</FONT></TD> </TR> </TABLE> <CENTER> <TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center"> <TR valign="bottom"> <TD width="0%"> </TD> <TD width="30%"> </TD> <TD width="70%"> </TD> </TR> <TR valign="bottom"> <TD align="left" nowrap>November 12, 1999</TD> <TD> </TD> <TD align="left" valign="top" nowrap> By: \s\ Gregory J. Stodnick<BR></TD> </TR> <TR><TD> </TD></TR> <TR valign="bottom"> <TD valign="top" nowrap>_______________________<BR> Date</TD> <TD></TD> <TD align="left" valign="top"> _______________________<BR> Gregory J. Stodnick<BR> Vice President-Finance<BR> Financial Officer (Duly Authorized<BR> Officer and Principal Financial<BR> and Accounting Officer)</TD> </TR> </TABLE> </CENTER> <P align="center">-11- </BODY> </HTML>