Matthews International Corporation (NASDAQ GSM: MATW) today
announced financial results for its second quarter of fiscal 2024.
In discussing the results for the Company’s
fiscal 2024 second quarter, Joseph C. Bartolacci, President and
Chief Executive Officer, stated:
“We were generally pleased with our operating
results for the fiscal 2024 second quarter. Consolidated sales and
adjusted EBITDA were relatively consistent with a year ago, despite
challenging conditions in several of our businesses, including
customer delays on significant energy storage solutions orders that
are currently in process.
“Sales for the Memorialization segment for the
fiscal 2024 second quarter were relatively consistent with a year
ago despite lower U.S. death rates. The benefits of recent
acquisitions and improved price realization substantially offset
post-COVID unit volume declines for the quarter. The segment
continues to perform well post-COVID, with current sales and
adjusted EBITDA run-rates well ahead of pre-COVID levels.
“Operating results for the SGK Brand Solutions
business continued to improve during the fiscal 2024 2nd quarter.
The segment reported sales growth compared to a year ago, primarily
reflecting increases in its U.S. brand packaging, European
packaging, and private label markets. Additionally, the segment’s
adjusted EBITDA increased from a year ago reflecting the benefits
of sales growth, improved pricing, and recent cost-reduction
efforts.
“In the Industrial Technologies segment, our
energy storage solutions business reported another quarter of sales
growth. The improvement reflected the benefit of orders from
multiple customers. Total sales for the Industrial Technologies
segment were lower for the current quarter compared to a year ago
primarily reflecting slower market conditions for the warehouse
automation business as we referenced over the last few quarters.
However, recent quote activity may be indicative of coming
improvements in this market.
“During the fiscal 2024 second quarter, we
reduced our outstanding debt by $19.6 million and net debt
(outstanding debt less cash) by $27.2 million. Based on our current
cash flow forecasts, we project further reductions in our
outstanding debt and leverage ratio by the end of the fiscal year.
During the recent quarter, we renewed our $750 million U.S.
revolving credit facility as well as our U.S. securitization
facilities. We are now working toward the refinancing of our bonds,
which mature in December 2025. We fully expect this refinancing to
be completed before the end of this fiscal year.
“With respect to the remainder of the fiscal
year, we currently project adjusted EBITDA for fiscal 2024 to
approximate $220 million. Customer delays outside of our control
within our energy storage business have significantly impacted our
initial projections. While we currently expect to start delivery of
some of the equipment soon, these shipments are now expected to
extend into mid-fiscal 2025. Results for our Memorialization and
SGK Brand Solutions businesses have mitigated some of this
impact.
“We remain very confident in our long-term
strategies and outlook. Our Memorialization business continues to
be very well positioned with its strong, stable base of cemetery
memorial and casket sales, plus its growing portfolio of
cremation-related products and services. The SGK Brand Solutions
segment should continue to benefit from improving market conditions
and to capture new market share in digital as the business evolves.
Additionally, we remain on track for the commercial launch of our
new product identification printhead in early calendar 2025
following the recent successful transition to a new chip provider.
Lastly, interest in our energy storage solutions remains very
strong with multiple customers in the late stages of order
development.”
Second Quarter
Fiscal 2024 Consolidated Results
(Unaudited)
($ in millions, except per
share data) |
Q2 FY2024 |
|
Q2 FY2023 |
|
Change |
|
% Change |
Sales |
$ |
471.2 |
|
$ |
479.6 |
|
$ |
(8.4 |
) |
|
(1.7 |
)% |
Net income attributable to
Matthews |
$ |
9.0 |
|
$ |
9.1 |
|
$ |
(0.1 |
) |
|
(1.1 |
)% |
Diluted earnings per share |
$ |
0.29 |
|
$ |
0.29 |
|
$ |
0.00 |
|
|
0.0 |
% |
Non-GAAP adjusted net
income |
$ |
21.8 |
|
$ |
20.3 |
|
$ |
1.5 |
|
|
7.3 |
% |
Non-GAAP adjusted EPS |
$ |
0.69 |
|
$ |
0.65 |
|
$ |
0.04 |
|
|
6.2 |
% |
Adjusted EBITDA |
$ |
56.8 |
|
$ |
58.4 |
|
$ |
(1.6 |
) |
|
(2.8 |
)% |
Note: See the attached tables for additional
important disclosures regarding Matthews’ use of non-GAAP measures
as well as reconciliations of non-GAAP measures to corresponding
GAAP measures. |
|
Consolidated sales for the quarter ended
March 31, 2024 were $471.2 million, compared to $479.6 million
for the same quarter a year ago, representing a decrease of $8.4
million, or 1.7%. Changes in foreign currency exchange rates were
estimated to have an unfavorable impact of $0.3 million on fiscal
2024 second quarter sales compared to the prior year.
Net income attributable to the Company for the
quarter ended March 31, 2024 was $9.0 million, or $0.29 per
share, compared to $9.1 million, or $0.29 per share in the prior
year. On a non-GAAP adjusted basis, earnings for the fiscal 2024
second quarter were $0.69 per share, compared to $0.65 per share a
year ago. Income tax benefits generally offset the impacts of
slightly lower adjusted EBITDA and higher interest expense for the
current quarter. Adjusted EBITDA for the fiscal 2024 second quarter
was $56.8 million, compared to $58.4 million a year ago, reflecting
lower adjusted EBITDA in the Memorialization and Industrial
Technologies segments, partially offset by higher adjusted EBITDA
in the SGK Brand Solutions segment and lower corporate and
non-operating costs.
Fiscal 2024
Year-to-Date Consolidated Results (Unaudited)
($ in millions, except per
share data) |
YTD FY2024 |
|
YTD FY2023 |
|
Change |
|
% Change |
|
Sales |
$ |
921.2 |
|
$ |
928.8 |
|
$ |
(7.6 |
) |
|
(0.8 |
)% |
Net income attributable to
Matthews |
$ |
6.7 |
|
$ |
12.8 |
|
$ |
(6.1 |
) |
|
(47.6 |
)% |
Diluted earnings per share |
$ |
0.22 |
|
$ |
0.41 |
|
$ |
(0.19 |
) |
|
(46.3 |
)% |
Non-GAAP adjusted net
income |
$ |
33.2 |
|
$ |
36.8 |
|
$ |
(3.6 |
) |
|
(9.8 |
)% |
Non-GAAP adjusted EPS |
$ |
1.06 |
|
$ |
1.18 |
|
$ |
(0.12 |
) |
|
(10.2 |
)% |
Adjusted EBITDA |
$ |
102.3 |
|
$ |
107.7 |
|
$ |
(5.4 |
) |
|
(5.0 |
)% |
Note: See the attached tables for additional
important disclosures regarding Matthews’ use of non-GAAP measures
as well as reconciliations of non-GAAP measures to corresponding
GAAP measures. |
|
|
|
Consolidated sales for the six months ended
March 31, 2024 were $921.2 million, compared to $928.8 million
a year ago, representing an decrease of $7.6 million, or 0.8%.
Changes in foreign currency rates were estimated to have a
favorable impact of $4.8 million on fiscal 2024 consolidated sales
compared to a year ago.
Net income attributable to the Company for the
first six months of fiscal 2024 was $6.7 million, or $0.22 per
share, compared to $12.8 million, or $0.41 per share in the prior
year. On a non-GAAP adjusted basis, earnings for the first six
months of fiscal 2024 were $1.06 per share, compared to $1.18 per
share a year ago. The decrease was primarily attributable to lower
consolidated adjusted EBITDA and higher interest expense for the
current period compared to a year ago. Adjusted EBITDA for the
first six months of fiscal 2024 was $102.3 million, compared to
$107.7 million a year ago, reflecting lower adjusted EBITDA in the
Memorialization and Industrial Technologies segments, partially
offset by higher adjusted EBITDA in the SGK Brand Solutions segment
and lower corporate and non-operating costs.
Webcast
The Company will host a conference call and
webcast on Friday, May 3, 2024 at 9:00 a.m. Eastern Time to review
its financial and operating results and discuss its corporate
strategies and outlook. A question-and-answer session will follow.
The conference call can be accessed by dialing (201) 689-8471. The
audio webcast can be monitored at www.matw.com. As soon as
available after the call, a transcript of the call will be posted
on the Investor Relations section of the Company’s website at
www.matw.com.
About Matthews International
Corporation
Matthews International Corporation is a global
provider of memorialization products, industrial technologies, and
brand solutions. The Memorialization segment is a leading provider
of memorialization products, including memorials, caskets,
cremation-related products, and cremation and incineration
equipment, primarily to cemetery and funeral home customers that
help families move from grief to remembrance. The Industrial
Technologies segment includes the design, manufacturing, service
and distribution of high-tech custom energy storage solutions;
product identification and warehouse automation technologies and
solutions, including order fulfillment systems for identifying,
tracking, picking and conveying consumer and industrial products;
and coating and converting lines for the packaging, pharma, foil,
décor and tissue industries. The SGK Brand Solutions segment is a
leading provider of packaging solutions and brand experiences,
helping companies simplify their marketing, amplify their brands
and provide value. The Company has approximately 12,000 employees
in more than 30 countries on six continents that are committed to
delivering the highest quality products and services.
Forward-looking Information
Any forward-looking statements contained in this
release are included pursuant to the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to,
statements regarding the expectations, hopes, beliefs, intentions
or strategies of the Company regarding the future, and may be
identified by the use of words such as “expects,” “believes,”
“intends,” “projects,” “anticipates,” “estimates,” “plans,”
“seeks,” “forecasts,” “predicts,” “objective,” “targets,”
“potential,” “outlook,” “may,” “will,” “could” or the negative of
these terms, other comparable terminology and variations thereof.
Such forward-looking statements involve known and unknown risks and
uncertainties that may cause the Company’s actual results in future
periods to be materially different from management’s expectations,
and no assurance can be given that such expectations will prove
correct. Factors that could cause the Company's results to differ
materially from the results discussed in such forward-looking
statements principally include changes in domestic or international
economic conditions, changes in foreign currency exchange rates,
changes in interest rates, changes in the cost of materials used in
the manufacture of the Company's products, any impairment of
goodwill or intangible assets, environmental liability and
limitations on the Company’s operations due to environmental laws
and regulations, disruptions to certain services, such as
telecommunications, network server maintenance, cloud computing or
transaction processing services, provided to the Company by
third-parties, changes in mortality and cremation rates, changes in
product demand or pricing as a result of consolidation in the
industries in which the Company operates, or other factors such as
supply chain disruptions, labor shortages or labor cost increases,
changes in product demand or pricing as a result of domestic or
international competitive pressures, ability to achieve
cost-reduction objectives, unknown risks in connection with the
Company's acquisitions and divestitures, cybersecurity concerns and
costs arising with management of cybersecurity threats,
effectiveness of the Company's internal controls, compliance with
domestic and foreign laws and regulations, technological factors
beyond the Company's control, impact of pandemics or similar
outbreaks, or other disruptions to our industries, customers, or
supply chains, the impact of global conflicts, such as the current
war between Russia and Ukraine, and other factors described in the
Company’s Annual Report on Form 10-K and other periodic filings
with the U.S. Securities and Exchange Commission.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(In thousands, except per share
data) |
|
|
Three Months EndedMarch 31, |
|
|
|
Six Months EndedMarch 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
Sales |
$ |
471,223 |
|
|
$ |
479,580 |
|
|
(1.7 |
)% |
|
$ |
921,209 |
|
|
$ |
928,820 |
|
|
(0.8 |
)% |
Cost of sales |
|
(323,041 |
) |
|
|
(329,957 |
) |
|
(2.1 |
)% |
|
|
(640,674 |
) |
|
|
(640,267 |
) |
|
0.1 |
% |
Gross profit |
|
148,182 |
|
|
|
149,623 |
|
|
(1.0 |
)% |
|
|
280,535 |
|
|
|
288,553 |
|
|
(2.8 |
)% |
Gross margin |
|
31.4 |
% |
|
|
31.2 |
% |
|
|
|
|
30.5 |
% |
|
|
31.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses |
|
(117,895 |
) |
|
|
(116,055 |
) |
|
1.6 |
% |
|
|
(231,026 |
) |
|
|
(227,415 |
) |
|
1.6 |
% |
Amortization of intangible assets |
|
(8,959 |
) |
|
|
(10,517 |
) |
|
(14.8 |
)% |
|
|
(18,754 |
) |
|
|
(20,859 |
) |
|
(10.1 |
)% |
Operating profit |
|
21,328 |
|
|
|
23,051 |
|
|
(7.5 |
)% |
|
|
30,755 |
|
|
|
40,279 |
|
|
(23.6 |
)% |
Operating margin |
|
4.5 |
% |
|
|
4.8 |
% |
|
|
|
|
3.3 |
% |
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other deductions, net |
|
(13,423 |
) |
|
|
(10,544 |
) |
|
27.3 |
% |
|
|
(25,879 |
) |
|
|
(22,813 |
) |
|
13.4 |
% |
Income before income
taxes |
|
7,905 |
|
|
|
12,507 |
|
|
(36.8 |
)% |
|
|
4,876 |
|
|
|
17,466 |
|
|
(72.1 |
)% |
Income taxes |
|
1,122 |
|
|
|
(3,382 |
) |
|
(133.2 |
)% |
|
|
1,848 |
|
|
|
(4,694 |
) |
|
(139.4 |
)% |
Net income |
|
9,027 |
|
|
|
9,125 |
|
|
(1.1 |
)% |
|
|
6,724 |
|
|
|
12,772 |
|
|
(47.4 |
)% |
Non-controlling interests |
|
— |
|
|
|
2 |
|
|
(100.0 |
)% |
|
|
— |
|
|
|
58 |
|
|
(100.0 |
)% |
Net income
attributable to Matthews |
$ |
9,027 |
|
|
$ |
9,127 |
|
|
(1.1 |
)% |
|
$ |
6,724 |
|
|
$ |
12,830 |
|
|
(47.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share --
diluted |
$ |
0.29 |
|
|
$ |
0.29 |
|
|
— |
% |
|
$ |
0.22 |
|
|
$ |
0.41 |
|
|
(46.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share --
non-GAAP(1) |
$ |
0.69 |
|
|
$ |
0.65 |
|
|
6.2 |
% |
|
$ |
1.06 |
|
|
$ |
1.18 |
|
|
(10.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.24 |
|
|
$ |
0.23 |
|
|
4.3 |
% |
|
$ |
0.48 |
|
|
$ |
0.46 |
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares |
|
31,219 |
|
|
|
31,179 |
|
|
|
|
|
31,213 |
|
|
|
31,071 |
|
|
|
(1)See reconciliation of non-GAAP financial information provided in
tables at the end of this release |
SEGMENT INFORMATION (Unaudited)(In
thousands) |
|
|
Three Months EndedMarch 31, |
|
Six Months EndedMarch 31, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Sales: |
|
|
|
|
|
|
|
Memorialization |
$ |
222,156 |
|
$ |
222,889 |
|
$ |
430,227 |
|
$ |
429,391 |
Industrial Technologies |
|
116,136 |
|
|
125,514 |
|
|
227,510 |
|
|
234,657 |
SGK Brand Solutions |
|
132,931 |
|
|
131,177 |
|
|
263,472 |
|
|
264,772 |
|
$ |
471,223 |
|
$ |
479,580 |
|
$ |
921,209 |
|
$ |
928,820 |
Adjusted
EBITDA: |
|
|
|
|
|
|
|
Memorialization |
$ |
46,614 |
|
|
$ |
48,030 |
|
|
$ |
83,314 |
|
|
$ |
87,167 |
|
Industrial Technologies |
|
10,028 |
|
|
|
15,565 |
|
|
|
19,650 |
|
|
|
27,767 |
|
SGK Brand Solutions |
|
15,370 |
|
|
|
11,020 |
|
|
|
28,263 |
|
|
|
23,252 |
|
Corporate and Non-Operating |
|
(15,212 |
) |
|
|
(16,168 |
) |
|
|
(28,945 |
) |
|
|
(30,448 |
) |
Total Adjusted EBITDA(1) |
$ |
56,800 |
|
|
$ |
58,447 |
|
|
$ |
102,282 |
|
|
$ |
107,738 |
|
(1)See reconciliation of non-GAAP financial information provided in
tables at the end of this release |
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited)(In thousands) |
|
|
March 31, 2024 |
September 30, 2023 |
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
45,497 |
|
|
$ |
42,101 |
Accounts receivable, net |
|
|
|
192,735 |
|
|
|
207,526 |
Inventories, net |
|
|
|
253,301 |
|
|
|
260,409 |
Other current assets |
|
|
|
162,516 |
|
|
|
138,221 |
Total current assets |
|
|
|
654,049 |
|
|
|
648,257 |
Property, plant and equipment,
net |
|
|
|
277,903 |
|
|
|
270,326 |
Goodwill |
|
|
|
707,881 |
|
|
|
698,109 |
Other intangible assets, net |
|
|
|
143,884 |
|
|
|
160,478 |
Other long-term assets |
|
|
|
106,760 |
|
|
|
110,211 |
Total
assets |
|
|
$ |
1,890,477 |
|
|
$ |
1,887,381 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Long-term debt, current
maturities |
|
|
$ |
5,419 |
|
|
$ |
3,696 |
Other current liabilities |
|
|
|
353,333 |
|
|
|
390,904 |
Total current liabilities |
|
|
|
358,752 |
|
|
|
394,600 |
Long-term debt |
|
|
|
837,357 |
|
|
|
786,484 |
Other long-term liabilities |
|
|
|
185,021 |
|
|
|
181,016 |
Total liabilities |
|
|
|
1,381,130 |
|
|
|
1,362,100 |
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Total shareholders' equity |
|
|
|
509,347 |
|
|
|
525,281 |
Total liabilities and
shareholders' equity |
|
|
$ |
1,890,477 |
|
|
$ |
1,887,381 |
CONDENSED CONSOLIDATED CASH FLOWS INFORMATION
(Unaudited)(In thousands) |
|
|
Six Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating
activities: |
|
|
|
Net income |
$ |
6,724 |
|
|
$ |
12,772 |
|
Adjustments to reconcile net income to net cash flows from
operating activities: |
|
|
Depreciation and amortization |
|
46,784 |
|
|
|
47,877 |
|
Changes in working capital items |
|
(35,609 |
) |
|
|
(10,885 |
) |
Other operating activities |
|
11,942 |
|
|
|
(5,053 |
) |
Net cash provided by operating activities |
|
29,841 |
|
|
|
44,711 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Capital expenditures |
|
(24,033 |
) |
|
|
(23,772 |
) |
Acquisitions, net of cash acquired |
|
(5,825 |
) |
|
|
(7,586 |
) |
Other investing activities |
|
95 |
|
|
|
155 |
|
Net cash used in investing activities |
|
(29,763 |
) |
|
|
(31,203 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Net payments from long-term debt |
|
41,633 |
|
|
|
(27,120 |
) |
Purchases of treasury stock |
|
(17,220 |
) |
|
|
(2,739 |
) |
Dividends |
|
(16,691 |
) |
|
|
(14,126 |
) |
Other financing activities |
|
(4,704 |
) |
|
|
(914 |
) |
Net cash provided by (used in) financing
activities |
|
3,018 |
|
|
|
(44,899 |
) |
|
|
|
|
Effect of exchange rate changes
on cash |
|
300 |
|
|
|
1,893 |
|
|
|
|
|
Net change in cash and
cash equivalents |
$ |
3,396 |
|
|
$ |
(29,498 |
) |
|
Reconciliations of Non-GAAP Financial
Measures
Included in this report are measures of
financial performance that are not defined by GAAP, including,
without limitation, adjusted EBITDA, adjusted net income and EPS,
constant currency sales, constant currency adjusted EBITDA, net
debt and net debt leverage ratio. The Company defines net debt
leverage ratio as outstanding debt (net of cash) relative to
adjusted EBITDA. The Company uses non-GAAP financial measures to
assist in comparing its performance on a consistent basis for
purposes of business decision-making by removing the impact of
certain items that management believes do not directly reflect the
Company’s core operations including acquisition and divestiture
costs, ERP integration costs, strategic initiative and other
charges (which includes non-recurring charges related to certain
commercial and operational initiatives and exit activities),
stock-based compensation and the non-service portion of pension and
postretirement expense. Constant currency sales and constant
currency adjusted EBITDA remove the impact of changes due to
foreign exchange translation rates. To calculate sales and adjusted
EBITDA on a constant currency basis, amounts for periods in the
current fiscal year are translated into U.S. dollars using exchange
rates applicable to the comparable periods of the prior fiscal
year. Management believes that presenting non-GAAP financial
measures is useful to investors because it (i) provides investors
with meaningful supplemental information regarding financial
performance by excluding certain items that management believes do
not directly reflect the Company's core operations, (ii) permits
investors to view performance using the same tools that management
uses to budget, forecast, make operating and strategic decisions,
and evaluate historical performance, and (iii) otherwise provides
supplemental information that may be useful to investors in
evaluating the Company’s results. The Company's calculations of its
non-GAAP financial measures, however, may not be comparable to
similarly titled measures reported by other companies. The Company
believes that the presentation of these non-GAAP financial
measures, when considered together with the corresponding GAAP
financial measures and the reconciliations to those measures,
provided herein, provide investors with an additional understanding
of the factors and trends affecting the Company’s business that
could not be obtained absent these disclosures.
ADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands) |
|
|
Three Months EndedMarch 31, |
|
Six Months EndedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net
income |
$ |
9,027 |
|
|
$ |
9,125 |
|
|
$ |
6,724 |
|
|
$ |
12,772 |
|
Income tax (benefit) provision |
|
(1,122 |
) |
|
|
3,382 |
|
|
|
(1,848 |
) |
|
|
4,694 |
|
Income before income
taxes |
$ |
7,905 |
|
|
$ |
12,507 |
|
|
$ |
4,876 |
|
|
$ |
17,466 |
|
Net loss attributable to noncontrolling interests |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
58 |
|
Interest expense, including RPA and factoring financing
fees(1) |
|
13,783 |
|
|
|
13,137 |
|
|
|
26,534 |
|
|
|
23,808 |
|
Depreciation and amortization* |
|
23,261 |
|
|
|
24,148 |
|
|
|
46,784 |
|
|
|
47,877 |
|
Acquisition and divestiture related items(2)** |
|
2,062 |
|
|
|
2,852 |
|
|
|
3,299 |
|
|
|
4,137 |
|
Strategic initiatives and other charges(3)** |
|
4,962 |
|
|
|
1,280 |
|
|
|
10,882 |
|
|
|
3,061 |
|
Highly inflationary accounting losses (primarily non-cash)(4) |
|
390 |
|
|
|
160 |
|
|
|
710 |
|
|
|
1,248 |
|
Stock-based compensation |
|
4,327 |
|
|
|
4,278 |
|
|
|
8,978 |
|
|
|
8,612 |
|
Non-service pension and postretirement expense(5) |
|
110 |
|
|
|
83 |
|
|
|
219 |
|
|
|
1,471 |
|
Total Adjusted
EBITDA |
$ |
56,800 |
|
|
$ |
58,447 |
|
|
$ |
102,282 |
|
|
$ |
107,738 |
|
Adjusted EBITDA margin |
|
12.1 |
% |
|
|
12.2 |
% |
|
|
11.1 |
% |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
(1) Includes fees for receivables sold under the RPA and factoring
arrangements totaling $1,238 and $1,090 for the three months ended
March 31, 2024 and 2023, respectively, and $2,413 and $1,546
for the six months ended March 31, 2024 and 2023,
respectively. |
(2) Includes certain non-recurring items associated with recent
acquisition and divestiture activities. |
(3) Includes certain non-recurring costs associated with
commercial, operational and cost-reduction initiatives, and costs
associated with global ERP system integration efforts. Fiscal 2024
also includes costs related to an ongoing contractual dispute which
totaled $4,972 for the six months ended March 31, 2024. Fiscal 2023
includes loss recoveries totaling $2,154 for the six months ended
March 31, 2023, which were related to a previously disclosed theft
of funds by a former employee initially identified in fiscal
2015. |
(4) Represents exchange losses associated with highly inflationary
accounting related to the Company's Turkish subsidiaries. |
(5) Non-service pension and postretirement expense includes
interest cost, expected return on plan assets, amortization of
actuarial gains and losses, curtailment gains and losses, and
settlement gains and losses. These benefit cost components are
excluded from adjusted EBITDA since they are primarily influenced
by external market conditions that impact investment returns and
interest (discount) rates. Curtailment gains and losses and
settlement gains and losses are excluded from adjusted EBITDA since
they generally result from certain non-recurring events, such as
plan amendments to modify future benefits or settlements of plan
obligations. The service cost and prior service cost components of
pension and postretirement expense are included in the calculation
of adjusted EBITDA, since they are considered to be a better
reflection of the ongoing service-related costs of providing these
benefits. Please note that GAAP pension and postretirement expense
or the adjustment above are not necessarily indicative of the
current or future cash flow requirements related to these employee
benefit plans. |
* Depreciation and amortization was $6,914 and
$5,711 for the Memorialization segment, $5,571 and $5,916 for the
Industrial Technologies segment, $9,669 and $11,319 for the SGK
Brand Solutions segment, and $1,107 and $1,202 for Corporate and
Non-Operating, for the three months ended March 31, 2024 and
2023, respectively. Depreciation and amortization was $13,327 and
$11,285 for the Memorialization segment, $11,948 and $11,769 for
the Industrial Technologies segment, $19,241 and $22,379 for the
SGK Brand Solutions segment, and $2,268 and $2,444 for Corporate
and Non-Operating, for the six months ended March 31, 2024 and
2023, respectively.** Acquisition costs, ERP integration costs, and
strategic initiatives and other charges were $1,037 and $333 for
the Memorialization segment, $4,431 and $2,437 for the Industrial
Technologies segment, $358 and $2,610 for the SGK Brand Solutions
segment, and $1,198 and income of $1,248 for Corporate and
Non-Operating, for the three months ended March 31, 2024 and
2023, respectively. Acquisition costs, ERP integration costs, and
strategic initiatives and other charges were $1,097 and $711 for
the Memorialization segment, $9,799 and $3,374 for the Industrial
Technologies segment, $1,221 and $3,131 for the SGK Brand Solutions
segment, and $2,064 and income of $18 for Corporate and
Non-Operating, for the six months ended March 31, 2024 and
2023, respectively.
ADJUSTED NET INCOME AND EPS RECONCILIATION
(Unaudited)(In thousands, except per share
data) |
|
|
Three Months EndedMarch 31, |
|
Six Months EndedMarch 31, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
per share |
|
|
per share |
|
|
per share |
|
|
per share |
Net income
attributable to Matthews |
$ |
9,027 |
$ |
0.29 |
|
$ |
9,127 |
$ |
0.29 |
|
$ |
6,724 |
$ |
0.22 |
|
$ |
12,830 |
$ |
0.41 |
Acquisition and divestiture costs(1) |
|
1,511 |
|
0.05 |
|
|
1,953 |
|
0.07 |
|
|
2,410 |
|
0.08 |
|
|
3,015 |
|
0.10 |
Strategic initiatives and other charges(2) |
|
4,093 |
|
0.12 |
|
|
1,153 |
|
0.03 |
|
|
9,097 |
|
0.28 |
|
|
2,940 |
|
0.09 |
Highly inflationary accounting losses (primarily non-cash)(3) |
|
390 |
|
0.01 |
|
|
160 |
|
— |
|
|
710 |
|
0.02 |
|
|
1,248 |
|
0.04 |
Non-service pension and postretirement expense(4) |
|
83 |
|
0.01 |
|
|
62 |
|
0.01 |
|
|
164 |
|
0.01 |
|
|
1,103 |
|
0.04 |
Amortization |
|
6,720 |
|
0.21 |
|
|
7,887 |
|
0.25 |
|
|
14,066 |
|
0.45 |
|
|
15,644 |
|
0.50 |
Adjusted net
income |
$ |
21,824 |
$ |
0.69 |
|
$ |
20,342 |
$ |
0.65 |
|
$ |
33,171 |
$ |
1.06 |
|
$ |
36,780 |
$ |
1.18 |
|
|
|
|
|
|
|
|
|
|
|
|
Note: Adjustments to net income for non-GAAP reconciling items were
calculated using an income tax rate of 27.8% and 27.1% for the
three and six months ended March 31, 2024, respectively, and 29.8%
and 25.9% for the three and six months ended March 31, 2023,
respectively. |
(1)Includes certain non-recurring costs associated with recent
acquisition and divestiture activities. |
(2)Includes certain non-recurring costs associated with commercial,
operational and cost-reduction initiatives, and costs associated
with global ERP system integration efforts. Fiscal 2024 also
includes costs related to an ongoing contractual dispute which
totaled $4,325 for the six months ended March 31, 2024. Fiscal 2023
includes loss recoveries totaling $1,616 for the six months ended
March 31, 2023, which were related to a previously disclosed theft
of funds by a former employee initially identified in fiscal
2015. |
(3)Represents exchange losses associated with highly inflationary
accounting related to the Company's Turkish subsidiaries. |
(4)Non-service pension and postretirement expense includes interest
cost, expected return on plan assets, amortization of actuarial
gains and losses, curtailment gains and losses, and settlement
gains and losses. These benefit cost components are excluded from
adjusted EBITDA since they are primarily influenced by external
market conditions that impact investment returns and interest
(discount) rates. Curtailment gains and losses and settlement gains
and losses are excluded from adjusted EBITDA since they generally
result from certain non-recurring events, such as plan amendments
to modify future benefits or settlements of plan obligations. The
service cost and prior service cost components of pension and
postretirement expense are included in the calculation of adjusted
EBITDA, since they are considered to be a better reflection of the
ongoing service-related costs of providing these benefits. Please
note that GAAP pension and postretirement expense or the adjustment
above are not necessarily indicative of the current or future cash
flow requirements related to these employee benefit plans. |
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands) |
|
|
Memorialization |
|
Industrial Technologies |
|
SGK Brand Solutions |
|
Corporate and Non-Operating |
|
Consolidated |
Reported sales for the quarter ended March 31, 2024 |
$ |
222,156 |
|
|
$ |
116,136 |
|
|
$ |
132,931 |
|
$ |
— |
|
$ |
471,223 |
|
Changes in foreign exchange translation rates |
|
(22 |
) |
|
|
(944 |
) |
|
|
1,283 |
|
|
— |
|
|
317 |
|
Constant currency sales for the quarter ended March 31,
2024 |
$ |
222,134 |
|
|
$ |
115,192 |
|
|
$ |
134,214 |
|
$ |
— |
|
$ |
471,540 |
|
|
|
|
|
|
|
|
|
|
|
Reported sales for the six
months ended March 31, 2024 |
$ |
430,227 |
|
|
$ |
227,510 |
|
|
$ |
263,472 |
|
$ |
— |
|
$ |
921,209 |
|
Changes in foreign exchange translation rates |
|
(403 |
) |
|
|
(4,675 |
) |
|
|
314 |
|
|
— |
|
|
(4,764 |
) |
Constant currency sales for the six months ended March 31,
2024 |
$ |
429,824 |
|
|
$ |
222,835 |
|
|
$ |
263,786 |
|
$ |
— |
|
$ |
916,445 |
|
|
|
|
|
|
|
|
|
|
|
Reported adjusted EBITDA for the quarter ended March 31,
2024 |
$ |
46,614 |
|
$ |
10,028 |
|
|
$ |
15,370 |
|
|
$ |
(15,212 |
) |
|
$ |
56,800 |
|
Changes in foreign exchange translation rates |
|
63 |
|
|
(104 |
) |
|
|
(11 |
) |
|
|
18 |
|
|
|
(34 |
) |
Constant currency adjusted
EBITDA for the quarter ended March 31, 2024 |
$ |
46,677 |
|
$ |
9,924 |
|
|
$ |
15,359 |
|
|
$ |
(15,194 |
) |
|
$ |
56,766 |
|
|
|
|
|
|
|
|
|
|
|
Reported adjusted EBITDA for
the six months ended March 31, 2024 |
$ |
83,314 |
|
$ |
19,650 |
|
|
$ |
28,263 |
|
|
$ |
(28,945 |
) |
|
$ |
102,282 |
|
Changes in foreign exchange translation rates |
|
97 |
|
|
(509 |
) |
|
|
131 |
|
|
|
(107 |
) |
|
|
(388 |
) |
Constant currency adjusted
EBITDA for the six months ended March 31, 2024 |
$ |
83,411 |
|
$ |
19,141 |
|
|
$ |
28,394 |
|
|
$ |
(29,052 |
) |
|
$ |
101,894 |
|
NET DEBT AND NET DEBT LEVERAGE RATIO RECONCILIATION
(Unaudited)(Dollars in thousands) |
|
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
|
|
|
|
|
Long-term debt, current maturities |
$ |
5,419 |
|
|
$ |
4,948 |
|
|
$ |
3,696 |
|
Long-term debt |
|
837,357 |
|
|
|
857,423 |
|
|
|
786,484 |
|
Total debt |
|
842,776 |
|
|
|
862,371 |
|
|
|
790,180 |
|
|
|
|
|
|
|
Less: Cash and cash equivalents |
|
(45,497 |
) |
|
|
(37,921 |
) |
|
|
(42,101 |
) |
|
|
|
|
|
|
Net Debt |
$ |
797,279 |
|
|
$ |
824,450 |
|
|
$ |
748,079 |
|
|
|
|
|
|
|
Adjusted EBITDA (trailing 12 months) |
$ |
220,353 |
|
|
$ |
222,000 |
|
|
$ |
225,809 |
|
|
|
|
|
|
|
Net Debt Leverage
Ratio |
|
3.6 |
|
|
|
3.7 |
|
|
|
3.3 |
|
Matthews International CorporationCorporate OfficeTwo NorthShore
CenterPittsburgh, PA 15212-5851Phone: (412) 442-8200
|
Contact: |
Steven F. Nicola |
William D. Wilson |
|
|
Chief Financial Officer |
Senior Director |
|
|
and Secretary |
Corporate Development |
Matthews (NASDAQ:MATW)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Matthews (NASDAQ:MATW)
Gráfica de Acción Histórica
De May 2023 a May 2024