Matthews International Reports Results for Fiscal 2024 Second Quarter
Matthews International (NASDAQ: MATW) reported financial results for its second quarter of fiscal 2024. The company saw outstanding debt reduced by $19.6 million with net debt lower by $27.2 million. GAAP earnings per share remained consistent at $0.29, while non-GAAP EPS increased to $0.69. SGK reported higher sales and adjusted EBITDA compared to a year ago. Energy storage sales also saw growth. Despite challenges, the company remains confident in its long-term strategies and outlook.
Outstanding debt reduced by $19.6 million with net debt lower by $27.2 million
Non-GAAP EPS increased to $0.69 from $0.65 a year ago
SGK reported higher sales and adjusted EBITDA compared to a year ago
Energy storage sales saw growth due to orders from multiple customers
Memorialization segment sales remain stable despite lower U.S. death rates
Consolidated sales decreased by $8.4 million, or 1.7%, compared to a year ago
Net income attributable to Matthews slightly decreased by $0.1 million, or 1.1%
Adjusted EBITDA lowered by $1.6 million, or 2.8%, compared to a year ago
Fiscal 2024 year-to-date net income decreased by $6.1 million, or 47.6%, compared to the prior year
Adjusted EBITDA for the first six months of fiscal 2024 decreased by $5.4 million, or 5.0%
Insights
Fiscal 2024 Second Quarter Financial Highlights:
- Outstanding debt reduced by
$19.6 million ; net debt lower by$27.2 million - GAAP earnings per share of
$0.29 , consistent with a year ago - Non-GAAP EPS increased to
$0.69 , compared to$0.65 a year ago - SGK reports current quarter sales and adjusted EBITDA higher than a year ago
- Energy storage sales also higher than last year; reflects orders from multiple customers
PITTSBURGH, May 02, 2024 (GLOBE NEWSWIRE) -- 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
“With respect to the remainder of the fiscal year, we currently project adjusted EBITDA for fiscal 2024 to approximate
“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
Net income attributable to the Company for the quarter ended March 31, 2024 was
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
Net income attributable to the Company for the first six months of fiscal 2024 was
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 Ended March 31, | Six Months Ended March 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 Ended March 31, | Six Months Ended March 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 Ended March 31, | Six Months Ended March 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 | |||||||||||||||
| (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) 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
** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were
| ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited) (In thousands, except per share data) | |||||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 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 | |||||||||||||||||||
| (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 | |||||||||||||||||||
| (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 Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
| Contact: | Steven F. Nicola | William D. Wilson | |
| Chief Financial Officer | Senior Director | ||
| and Secretary | Corporate Development |
FAQ
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