Matthews International Reports Results for Fiscal 2022 Third Quarter
Matthews reported consolidated sales of $1.31 billion year-to-date, a 5.9% increase over the previous year. For Q3 FY2022, sales were $421.7 million, down 1.6% from Q3 FY2021. Currency impacts reduced year-to-date sales by $32.8 million and adjusted EBITDA by $6.2 million. Q3 GAAP EPS was $0.09, while non-GAAP adjusted EPS was $0.58, a 36.3% decline year-over-year. The company anticipates continued consolidated sales growth but is adjusting its earnings outlook due to foreign currency fluctuations and global market conditions.
- Year-to-date consolidated sales increased by 5.9% to $1.31 billion.
- Q3 Memorialization sales rose 10.2% to $203.2 million year-over-year.
- Strong order rates in the Industrial Technologies segment support growth.
- Q3 sales decreased by 1.6% compared to Q3 FY2021.
- GAAP EPS decreased by 10.0% to $0.09 for Q3.
- Net loss of $18.8 million reported year-to-date, compared to a profit of $6.6 million last year.
- Unfavorable currency impact of $32.8 million on year-to-date sales.
Financial Highlights:
- Year-to-date consolidated sales of
$1.31 billion ;5.9% higher than last year - Company remains on track for consolidated sales growth for fiscal 2022
- Company lowers earnings outlook reflecting currency impacts/global market conditions
- GAAP EPS of
$0.09 ; non-GAAP adjusted EPS of$0.58 for fiscal 2022 third quarter - Webcast: Friday, July 29, 2022, 9:00 a.m., (201) 689-8471
PITTSBURGH, July 28, 2022 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) today announced financial results for its third quarter of fiscal 2022 and nine months ended June 30, 2022.
In discussing the results for the Company’s fiscal 2022 third quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:
“Our Company reported another quarter of solid sales performance, despite increasingly challenged global economic conditions, and, as a result, we remain on track to deliver consolidated sales growth for fiscal 2022. We also expect to achieve this growth despite significant currency rate headwinds which have negatively impacted our year-to-date reported consolidated sales and adjusted EBITDA by
"Memorialization sales continued to be strong in the fiscal 2022 third quarter. The segment reported sales of
“For the fiscal 2022 third quarter, the Industrial Technologies segment (which includes our energy storage solutions business) reported sales of
“The SGK Brand Solutions segment reported lower sales for the current quarter compared to the third fiscal quarter last year. The segment’s results were impacted by challenging market conditions, particularly in Europe, including a corresponding unfavorable effect on currency rates. Currency rate changes had an unfavorable impact of
“The pending acquisitions of OLBRICH GmbH and R+S Automotive GmbH represent an important part of our long-term strategy to provide turn-key processing equipment and services for the burgeoning electric vehicle business.”
Third Quarter Fiscal 2022 Consolidated Results (Unaudited)
| ($ in millions, except per share data) | Q3 FY2022 | Q3 FY2021 | Change | % Change | |||||||
| Sales | $ | 421.7 | $ | 428.4 | $ | (6.7 | ) | (1.6) % | |||
| Net income attributable to Matthews | $ | 2.9 | $ | 3.4 | $ | (0.5 | ) | (13.8) % | |||
| Diluted earnings per share | $ | 0.09 | $ | 0.10 | $ | (0.01 | ) | (10.0) % | |||
| Non-GAAP adjusted net income | $ | 17.8 | $ | 29.3 | $ | (11.5 | ) | (39.2) % | |||
| Non-GAAP adjusted EPS | $ | 0.58 | $ | 0.91 | $ | (0.33 | ) | (36.3) % | |||
| Adjusted EBITDA | $ | 46.0 | $ | 60.0 | $ | (14.0 | ) | (23.3) % | |||
| 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. Organic sales represent changes in sales excluding the impact of acquisitions, divestitures, and changes in foreign currency exchange rates. | |||||||||||
Consolidated sales for the quarter ended June 30, 2022 were
Net income attributable to the Company for the quarter ended June 30, 2022 was
Fiscal 2022 Year-to-Date Consolidated Results (Unaudited)
| ($ in millions, except per share data) | YTD FY2022 | YTD FY2021 | Change | % Change | |||||||||
| Sales | $ | 1,305.3 | $ | 1,232.2 | $ | 73.1 | 5.9 % | ||||||
| Net (loss) income attributable to Matthews | $ | (18.8 | ) | $ | 6.6 | $ | (25.4 | ) | (385.7) % | ||||
| Diluted (loss) earnings per share | $ | (0.60 | ) | $ | 0.21 | $ | (0.81 | ) | (385.7) % | ||||
| Non-GAAP adjusted net income | $ | 64.8 | $ | 79.8 | $ | (15.0 | ) | (18.8) % | |||||
| Non-GAAP adjusted EPS | $ | 2.06 | $ | 2.48 | $ | (0.42 | ) | (16.9) % | |||||
| Adjusted EBITDA | $ | 154.5 | $ | 175.7 | $ | (21.2 | ) | (12.1) % | |||||
| 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. Organic sales represent changes in sales excluding the impact of acquisitions, divestitures, and changes in foreign currency exchange rates. | |||||||||||||
Consolidated sales for the nine months ended June 30, 2022 were
Net loss attributable to the Company for the nine months ended June 30, 2022 was
On a non-GAAP adjusted basis, earnings for the nine months ended June 30, 2022 were
Outlook
Mr. Bartolacci further stated: “Based on our year-to-date results and current fourth quarter projections, we remain on track to deliver consolidated sales growth for fiscal 2022. Order rates in our growing Industrial Technologies segment remained solid through the fiscal 2022 third quarter, which are expected to support the segment’s organic growth objectives for the balance of fiscal 2022 and into next fiscal year. Additionally, while the COVID-related impact on death rates continued to subside, we currently project fiscal 2022 fourth quarter Memorialization sales to be relatively comparable with a year ago.”
“Market conditions, particularly in Europe, and the corresponding impact on currency rates are expected to continue to impact our businesses. In addition, inflation, supply chain issues and other geopolitical events are expected to persist and challenge our results. We will continue to implement actions in an effort to mitigate these challenges. As a result, based primarily on current European market conditions and the corresponding unfavorable impact on currency rates, we currently expect fiscal 2022 adjusted EBITDA in the range of
Webcast
The Company will host a conference call and webcast on Friday, July 29, 2022 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 calling (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 in 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 and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Industrial Technologies segment designs, manufactures, services and distributes high-tech custom energy storage, marking, coding and industrial automation technologies and solutions. 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 11,000 employees in more than 26 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. 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. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, 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 the cost of materials used in the manufacture of the Company's products, 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, cybersecurity concerns, 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 Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||
| Sales | $ | 421,719 | $ | 428,380 | (1.6) % | $ | 1,305,276 | $ | 1,232,191 | 5.9 | % | ||||||||||
| Cost of sales | (300,854 | ) | (291,122 | ) | 3.3 | % | (928,255 | ) | (828,424 | ) | 12.1 | % | |||||||||
| Gross profit | 120,865 | 137,258 | (11.9) % | 377,021 | 403,767 | (6.6) % | |||||||||||||||
| Gross margin | 28.7 | % | 32.0 | % | 28.9 | % | 32.8 | % | |||||||||||||
| Selling and administrative expenses | (98,098 | ) | (104,947 | ) | (6.5) % | (302,610 | ) | (307,960 | ) | (1.7) % | |||||||||||
| Amortization of intangible assets | (11,804 | ) | (23,039 | ) | (48.8) % | (45,303 | ) | (61,190 | ) | (26.0) % | |||||||||||
| Operating profit | 10,963 | 9,272 | 18.2 | % | 29,108 | 34,617 | (15.9) % | ||||||||||||||
| Operating margin | 2.6 | % | 2.2 | % | 2.2 | % | 2.8 | % | |||||||||||||
| Interest and other deductions, net | (7,048 | ) | (8,231 | ) | (14.4) % | (50,290 | ) | (25,464 | ) | 97.5 | % | ||||||||||
| Income (loss) before income taxes | 3,915 | 1,041 | 276.1 | % | (21,182 | ) | 9,153 | (331.4) % | |||||||||||||
| Income taxes | (1,040 | ) | 2,325 | (144.7) % | 2,311 | (2,627 | ) | 188.0 | % | ||||||||||||
| Net income (loss) | 2,875 | 3,366 | (14.6) % | (18,871 | ) | 6,526 | (389.2) % | ||||||||||||||
| Non-controlling interests | 18 | (11 | ) | 263.6 | % | 56 | 60 | (6.7) % | |||||||||||||
| Net income (loss) attributable to Matthews | $ | 2,893 | $ | 3,355 | (13.8) % | $ | (18,815 | ) | $ | 6,586 | (385.7) % | ||||||||||
| Earnings (loss) per share -- diluted | $ | 0.09 | $ | 0.10 | (10.0) % | $ | (0.60 | ) | $ | 0.21 | (385.7) % | ||||||||||
| Earnings per share -- non-GAAP (1) | $ | 0.58 | $ | 0.91 | (36.3) % | $ | 2.06 | $ | 2.48 | (16.9) % | |||||||||||
| Dividends declared per share | $ | 0.22 | $ | 0.215 | 2.3 | % | $ | 0.66 | $ | 0.645 | 2.3 | % | |||||||||
| Diluted Shares | 31,552 | 32,193 | 31,531 | 32,118 | |||||||||||||||||
| (1) See reconciliation of non-GAAP financial information provided in tables at the end of this release | |||||||||||||||||||||
SEGMENT INFORMATION (Unaudited) (2)
(In thousands)
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| Sales: | |||||||||||
| Memorialization | $ | 203,158 | $ | 184,337 | $ | 633,868 | $ | 573,068 | |||
| Industrial Technologies | 78,443 | 81,832 | 230,928 | 200,538 | |||||||
| SGK Brand Solutions | 140,118 | 162,211 | 440,480 | 458,585 | |||||||
| $ | 421,719 | $ | 428,380 | $ | 1,305,276 | $ | 1,232,191 | ||||
| Adjusted EBITDA: | |||||||||||||||
| Memorialization | $ | 32,090 | $ | 36,402 | $ | 118,404 | $ | 132,080 | |||||||
| Industrial Technologies | 11,809 | 12,173 | 33,377 | 23,446 | |||||||||||
| SGK Brand Solutions | 14,546 | 27,025 | 43,422 | 67,222 | |||||||||||
| Corporate and Non-Operating | (12,421 | ) | (15,585 | ) | (40,656 | ) | (47,030 | ) | |||||||
| Total Adjusted EBITDA (1) | $ | 46,024 | $ | 60,015 | $ | 154,547 | $ | 175,718 | |||||||
| (1) See reconciliation of non-GAAP financial information provided in tables at the end of this release | |||||||||||||||
| (2) Effective in the first quarter of fiscal 2022, the Company transferred its surfaces and engineered products businesses from the SGK Brand Solutions segment to the Industrial Technologies segment. This business segment change is consistent with internal management structure and reporting changes effective for fiscal 2022. Prior periods were revised to reflect retrospective application of this segment realignment. | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited)
(In thousands)
| June 30, 2022 | September 30, 2021 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 45,846 | $ | 49,176 | ||||
| Accounts receivable, net | 207,503 | 309,818 | ||||||
| Inventories, net | 211,161 | 189,088 | ||||||
| Other current assets | 134,119 | 76,083 | ||||||
| Total current assets | 598,629 | 624,165 | ||||||
| Property, plant and equipment, net | 209,110 | 223,707 | ||||||
| Goodwill | 754,649 | 773,787 | ||||||
| Other intangible assets, net | 213,371 | 261,542 | ||||||
| Other long-term assets | 128,930 | 148,877 | ||||||
| Total assets | $ | 1,904,689 | $ | 2,032,078 | ||||
| LIABILITIES | ||||||||
| Long-term debt, current maturities | $ | 3,364 | $ | 4,624 | ||||
| Other current liabilities | 306,427 | 349,601 | ||||||
| Total current liabilities | 309,791 | 354,225 | ||||||
| Long-term debt | 772,673 | 759,086 | ||||||
| Other long-term liabilities | 231,622 | 282,364 | ||||||
| Total liabilities | 1,314,086 | 1,395,675 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Total shareholders' equity | 590,603 | 636,403 | ||||||
| Total liabilities and shareholders' equity | $ | 1,904,689 | $ | 2,032,078 | ||||
CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited)
(In thousands)
| Nine Months Ended June 30, | |||||||
| 2022 | 2021 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (18,871 | ) | $ | 6,526 | ||
| Adjustments to reconcile net (loss) income to net cash flows from operating activities: | |||||||
| Depreciation and amortization | 80,163 | 97,919 | |||||
| Changes in working capital items | (8,393 | ) | (7,513 | ) | |||
| Other operating activities | 31,468 | 9,925 | |||||
| Net cash provided by operating activities | 84,367 | 106,857 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (40,597 | ) | (24,495 | ) | |||
| Acquisitions, net of cash acquired | — | (15,623 | ) | ||||
| Other investing activities | 1,668 | 17,211 | |||||
| Net cash used in investing activities | (38,929 | ) | (22,907 | ) | |||
| Cash flows from financing activities: | |||||||
| Net payments from long-term debt | 13,763 | (49,024 | ) | ||||
| Purchases of treasury stock | (33,986 | ) | (6,149 | ) | |||
| Dividends | (20,812 | ) | (20,856 | ) | |||
| Other financing activities | (2,741 | ) | (3,801 | ) | |||
| Net cash used in financing activities | (43,776 | ) | (79,830 | ) | |||
| Effect of exchange rate changes on cash | (3,862 | ) | 776 | ||||
| Net change in cash, cash equivalents and restricted cash | $ | (2,200 | ) | $ | 4,896 | ||
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, 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 costs, ERP integration costs, strategic initiative and other charges (which includes non-recurring charges related to operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense. 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 Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net income (loss) | $ | 2,875 | $ | 3,366 | $ | (18,871 | ) | $ | 6,526 | ||||||
| Income tax provision (benefit) | 1,040 | (2,325 | ) | (2,311 | ) | 2,627 | |||||||||
| Income (loss) before income taxes | $ | 3,915 | $ | 1,041 | (21,182 | ) | 9,153 | ||||||||
| Net loss (income) attributable to noncontrolling interests | 18 | (11 | ) | 56 | 60 | ||||||||||
| Interest expense | 6,659 | 6,748 | 19,426 | 21,709 | |||||||||||
| Depreciation and amortization * | 22,938 | 35,389 | 80,163 | 97,919 | |||||||||||
| Strategic initiatives and other charges (1)** | 7,290 | 7,213 | 17,863 | 23,498 | |||||||||||
| Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (2)*** | 301 | 1,993 | 2,204 | 4,689 | |||||||||||
| Defined benefit plan termination related items (3) | (63 | ) | — | 284 | — | ||||||||||
| Asset write-downs, net (4) | (469 | ) | — | 10,017 | — | ||||||||||
| Stock-based compensation | 5,197 | 5,713 | 14,128 | 12,960 | |||||||||||
| Non-service pension and postretirement expense (5) | 238 | 1,929 | 31,588 | 5,730 | |||||||||||
| Total Adjusted EBITDA | $ | 46,024 | $ | 60,015 | $ | 154,547 | $ | 175,718 | |||||||
| Adjusted EBITDA margin | 10.9 | % | 14.0 | % | 11.8 | % | 14.3 | % | |||||||
| (1) Includes certain non-recurring items associated with recent acquisition activities, costs associated with global ERP system integration efforts, certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels, and exchange losses associated with highly inflationary accounting. | |||||||||||||||
| (2) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. | |||||||||||||||
| (3) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. | |||||||||||||||
| (4) Represents asset write-downs, net of recoveries within the SGK Brand Solutions segment. | |||||||||||||||
| (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
** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were
*** Non-recurring/incremental COVID-19 costs were
ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited)
(In thousands, except per share data)
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| per share | per share | per share | per share | ||||||||||||||||||||
| Net income (loss) attributable to Matthews | $ | 2,893 | $ | 0.09 | $ | 3,355 | $ | 0.10 | $ | (18,815 | ) | $ | (0.60 | ) | $ | 6,586 | $ | 0.21 | |||||
| Strategic initiatives and other charges (1) | 5,689 | 0.19 | 5,975 | 0.19 | 13,663 | 0.44 | 20,091 | 0.62 | |||||||||||||||
| Non-recurring / incremental COVID-19 costs (2) | 235 | — | 1,512 | 0.05 | 1,676 | 0.05 | 3,559 | 0.11 | |||||||||||||||
| Defined benefit plan termination related items (3) | (46 | ) | — | — | — | 355 | 0.01 | — | — | ||||||||||||||
| Asset write-downs, net (4) | (353 | ) | (0.01 | ) | — | — | 9,955 | 0.32 | — | — | |||||||||||||
| Non-service pension and postretirement expense (5) | 305 | 0.02 | 1,426 | 0.04 | 23,817 | 0.76 | 4,239 | 0.13 | |||||||||||||||
| Amortization | 9,034 | 0.29 | 17,050 | 0.53 | 34,158 | 1.08 | 45,281 | 1.41 | |||||||||||||||
| Adjusted net income | $ | 17,757 | $ | 0.58 | $ | 29,318 | $ | 0.91 | $ | 64,809 | $ | 2.06 | $ | 79,756 | $ | 2.48 | |||||||
| Note: Adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of | |||||||||||||||||||||||
| (1) Includes certain non-recurring items associated with recent acquisition activities, costs associated with global ERP system integration efforts, certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels, and exchange losses associated with highly inflationary accounting. | |||||||||||||||||||||||
| (2) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. | |||||||||||||||||||||||
| (3) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. | |||||||||||||||||||||||
| (4) Represents asset write-downs, net of recoveries within the SGK Brand Solutions segment. | |||||||||||||||||||||||
| (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. | |||||||||||||||||||||||
NET DEBT AND NET DEBT LEVERAGE RATIO RECONCILIATION (Unaudited)
(Dollars in thousands)
| June 30, 2022 | September 30, 2021 | |||||||
| Long-term debt, current maturities | $ | 3,364 | $ | 4,624 | ||||
| Long-term debt | 772,673 | 759,086 | ||||||
| Total debt | 776,037 | 763,710 | ||||||
| Less: Cash and cash equivalents | (45,846 | ) | (49,176 | ) | ||||
| Net Debt | $ | 730,191 | $ | 714,534 | ||||
| Adjusted EBITDA | $ | 206,579 | $ | 227,750 | ||||
| Net Debt Leverage Ratio | 3.5 | 3.1 | ||||||
Matthews International Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
| Contact: | Steven F. Nicola | William D. Wilson | |
| Chief Financial Officer and Secretary | Senior Director, Corporate Development | ||
FAQ
What are the Q3 FY2022 financial results for MATW?
How did currency impacts affect MATW's financial results?
What is the sales outlook for FY2022 for MATW?
What segments contributed to MATW's revenue growth?
What challenges is MATW facing in the market?
