MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FISCAL 2026 SECOND QUARTER
Rhea-AI Summary
Matthews International (NASDAQ: MATW) reported fiscal 2026 second-quarter results highlighting higher Memorialization and Product Identification sales, a favorable arbitrator interim ruling on dry battery electrode rights, Propelis JV progress toward $60M targeted synergies, and a $300M redemption of 2027 notes that lowered interest expense. The company maintained fiscal 2026 adjusted EBITDA guidance of $180 million and will webcast results on May 1, 2026.
AI-generated analysis. Not financial advice.
Positive
- Adjusted EBITDA guidance maintained at $180 million for fiscal 2026
- Memorialization sales increased, aided by Dodge acquisition and synergies
- Propelis progress: converted business platform enabling targeted $60M synergies
- Debt reduction: $300M redemption of 8.625% notes reduced recurring interest expense
- Product Identification recorded first commercial sales of MPERIA Axian Inkjet systems
Negative
- Industrial Technologies sales declined after warehouse automation divestiture and engineering challenges
- GAAP earnings pressured by unusual charges and amortization this quarter
- Energy storage business continues to face challenges despite customer interest
News Market Reaction – MATW
On the day this news was published, MATW gained 0.25%, reflecting a mild positive market reaction. Argus tracked a peak move of +12.3% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $925.69M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
MATW was down 1.56% while peers showed mixed moves (e.g., DLX up 0.37%, CODI down 1.82%), pointing to stock-specific factors rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 10 | Earnings call notice | Neutral | -0.6% | Announcement of Q2 FY26 earnings release date and conference call logistics. |
| Mar 19 | Technology partnership | Positive | +0.4% | Cooperation with hs-tumbler to advance dry battery electrode manufacturing capabilities. |
| Mar 10 | Legal clarification | Positive | +0.5% | Arbitrator reaffirmed rights to develop and sell proprietary DBE solutions despite Tesla dispute. |
| Feb 19 | Governance update | Neutral | -0.7% | Annual meeting results, board elections, governance amendments, and new chairman selection. |
| Feb 03 | Q1 earnings | Positive | -0.4% | Strong GAAP EPS, debt reduction, and reaffirmed FY26 adjusted EBITDA guidance of at least $180M. |
Recent MATW news events have typically produced modest price moves within about 1% in either direction, with generally positive operational updates not always translating into immediate share gains.
Over the last six months, Matthews International reported solid progress across operations and balance sheet. The company announced cooperation on dry battery electrode technology, received an arbitrator’s decision supporting its DBE rights, and reaffirmed adjusted EBITDA guidance of at least $180 million in the Feb 3, 2026 first-quarter release. Governance changes followed the Feb 19, 2026 annual meeting, and an April conference call announcement set expectations for today’s second-quarter report. Historically, share reactions to these updates have been modest and mixed.
Market Pulse Summary
This announcement underscores Matthews’ strategy of focusing on higher-margin businesses, cost synergies, and balance sheet improvement. Memorialization delivered higher sales, Propelis advanced toward an estimated $60 million in cost synergies, and the company redeemed $300 million of 8.625% notes. Management maintained fiscal 2026 adjusted EBITDA guidance of $180 million, including its 40% share of Propelis. Investors may watch execution in Industrial Technologies, DBE order conversion, and Propelis’ projected adjusted EBITDA of $24.8 million for early 2026.
Key Terms
adjusted ebitda financial
dry battery electrode technical
joint venture financial
equity-method investment financial
revolving credit facility financial
non-gaap adjusted earnings financial
cost synergies financial
AI-generated analysis. Not financial advice.
Fiscal 2026 Second Quarter Financial Highlights:
- Memorialization reports higher sales and adjusted EBITDA
- Arbitrator reaffirms Matthews' right to develop, produce, market and sell proprietary dry battery electrode solutions to third parties
- Propelis JV achieves key milestone toward executing on synergy targets
- Bond refinancing and reduced debt drive lower recurring interest expense
- Company maintains outlook for fiscal 2026
- Webcast: Friday, May 1, 2026, 9:00 a.m., 203-518-9843
In discussing the results for the Company's fiscal 2026 second quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:
"We are pleased with our operating results for the fiscal 2026 second quarter. While our GAAP earnings were unfavorably impacted by unusual charges and amortization, we are happy to report non-GAAP adjusted earnings per share growth this quarter compared to last year despite recent divestitures. The Memorialization segment reported higher sales and adjusted EBITDA, and the Product Identification business also delivered higher sales. Although we continue to experience challenges in our energy storage solutions business, customer interest remains very strong. Corporate and other non-operating costs also declined meaningfully compared to last year. We continue to work on additional cost reduction plans to scale our structure as post-divestiture support obligations expire over the coming quarters."
"Sales for the Memorialization segment for the fiscal 2026 second quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. This acquisition continues to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform and have already begun to realize cost synergies from integration. Sales volumes of caskets and cemetery memorials declined in the quarter due to lower
"The Propelis Group ("Propelis") continues to report solid operating results since formation of the joint venture between our SGK business and SGS in May of 2025. During the quarter, Propelis successfully converted to a new business system platform that is expected to enable the integration of graphic production work across the global enterprise, activating a significant portion of the estimated
"The Industrial Technologies segment reported a decline in sales for the fiscal 2026 second quarter. The decrease mainly resulted from the divestiture of the warehouse automation business during the fiscal first quarter of 2026 and challenges in our engineering business, including the impacts of the ongoing Tesla dispute. During the quarter, we received a favorable ruling from an arbitrator again confirming our right to develop, produce, market and sell our proprietary dry battery electrode ("DBE") solutions to third parties. Matthews successfully defeated Tesla's most meaningful claims as the arbitrator issued an interim decision denying the broad injunctive relief requested by Tesla and rejecting Tesla's attempts to prohibit us from selling Matthews' proprietary DBE technology and equipment. Instead, the interim decision includes a narrow injunction preventing Matthews from using certain parts in dry battery electrode machines. Matthews already has replacement parts, and thus the injunction is not expected to materially impede Matthews' operations or sales. Importantly, this most recent ruling provides further clarity for Matthews and its customers on a going forward basis. Interest from other customers in our dry battery electrode solutions remains very strong, and we anticipate will start to convert to orders in the second half of fiscal 2026. The Product Identification business achieved a major milestone during the quarter by recording its first commercial sales of the MPERIA® Axian Inkjet (XIJ) systems. We have received significant customer interest in the new product, and buildout of the supply chain to meet anticipated market demand is ongoing."
"During the fiscal 2026 second quarter, we redeemed
"The Board, with the support of J.P. Morgan, identified several alternatives for evaluation and consideration toward improving shareholder value and better alignment with the underlying value of the organization. The divestitures of SGK in 2025, and the warehouse automation and European packaging businesses in the first quarter are all outcomes of this effort to simplify Matthews' business structure and enhance shareholder value. The Company's strategic alternatives review remains ongoing."
"For the remainder of fiscal 2026, we expect the Memorialization segment to continue to deliver modest year-to-year sales growth. Additionally, we expect conditions for the engineering business to remain challenging and dependent upon winning substantial new orders. Lastly, our projected share of the Propelis' financial results includes the expectation for significant cost synergies to be executed and realized during the remainder of the year. Based on our results through March 31, 2026, and projections for the remainder of fiscal 2026, we are maintaining our previous earnings guidance of adjusted EBITDA of
Divestiture of the SGK Business
As previously reported, on May 1, 2025, the Company contributed the SGK business to a newly formed entity, Propelis, in exchange for cash and other consideration. The fiscal 2025 consolidated financial information presented in this release reflects the financial results of the SGK business through the closing date. As a result of the integration process of Propelis and transition to its stand-alone reporting systems, our
The Company's consolidated adjusted EBITDA for the fiscal second quarter of 2026 includes approximately a
Webcast
The Company will host a conference call and webcast on Friday, May 1, 2026 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 (203)-518-9843, Conference ID: Matthews. 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 operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. 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. In addition, the Company also has a significant investment in Propelis, a brand solutions business formed through the merger of SGK and SGS & Co. Propelis delivers integrated solutions including brand creative, packaging, print solutions, branded environments, and content production. Matthews International has over 4,300 employees in 15 countries on four 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 risks to our ability to achieve the anticipated benefits of the joint venture transaction with Peninsula Parent LLC, d.b.a. Propelis Group ("Propelis"), 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, including changes in costs due to adjustments to tariffs or supply chain disruptions, 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 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, divestitures, and business combinations, 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) | |||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||
Sales | (39.5) % | (34.5) % | |||||||||
Cost of sales | (156,635) | (283,517) | (44.8) % | (341,725) | (559,667) | (38.9) % | |||||
Gross profit | 101,984 | 144,112 | (29.2) % | 201,657 | 269,804 | (25.3) % | |||||
Gross margin | 39.4 % | 33.7 % | 37.1 % | 32.5 % | |||||||
Selling and administrative expenses | (98,540) | (131,812) | (25.2) % | (210,932) | (243,222) | (13.3) % | |||||
Amortization of intangible assets | (2,674) | (4,280) | (37.5) % | (5,640) | (12,888) | (56.2) % | |||||
Gain (loss) on divestitures, net | (3,945) | (2,072) | 90.4 % | 109,264 | (2,072) | NM | |||||
Operating (loss) profit | (3,175) | 5,948 | (153.4) % | 94,349 | 11,622 | NM | |||||
Operating margin | (1.2) % | 1.4 % | 17.4 % | 1.4 % | |||||||
Interest and other deductions, net | (8,533) | (17,592) | (51.5) % | (21,639) | (29,096) | (25.6) % | |||||
Loss on debt extinguishment | (16,343) | — | NM | (16,343) | — | NM | |||||
(Loss) income before income taxes | (28,051) | (11,644) | 140.9 % | 56,367 | (17,474) | NM | |||||
Income taxes | 6,217 | 2,728 | 127.9 % | (34,572) | 5,086 | NM | |||||
Net (loss) income | $ (21,834) | $ (8,916) | 144.9 % | $ 21,795 | $ (12,388) | NM | |||||
(Loss) earnings per share -- diluted | $ (0.69) | $ (0.29) | 137.9 % | $ 0.69 | $ (0.40) | NM | |||||
Earnings per share -- non-GAAP (1) | $ 0.37 | $ 0.34 | 8.8 % | $ 0.18 | $ 0.48 | (62.5) % | |||||
Dividends declared per share | $ 0.255 | $ 0.25 | 2.0 % | $ 0.510 | $ 0.50 | 2.0 % | |||||
Diluted Shares | 31,487 | 31,192 | 31,730 | 31,113 | |||||||
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this release | |||||||||||
NM: Not meaningful | |||||||||||
SEGMENT INFORMATION (Unaudited) (In thousands) | |||||||
Three Months Ended March 31, | Six Months Ended March 31, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Sales: | |||||||
Memorialization | $ 215,257 | $ 205,620 | $ 419,432 | $ 396,106 | |||
Industrial Technologies | 43,362 | 80,835 | 112,377 | 161,368 | |||
Brand Solutions | — | 141,174 | 11,573 | 271,997 | |||
$ 258,619 | $ 427,629 | $ 543,382 | $ 829,471 | ||||
Adjusted EBITDA: | |||||||
Memorialization | $ 48,831 | $ 45,038 | $ 87,780 | $ 81,650 | |||
Industrial Technologies | (3,313) | 6,042 | (7,771) | 7,874 | |||
Brand Solutions | 9,615 | 15,596 | 22,309 | 27,888 | |||
Corporate and Non-Operating | (10,389) | (15,262) | (22,336) | (25,975) | |||
Total Adjusted EBITDA (1) | $ 44,744 | $ 51,414 | $ 79,982 | $ 91,437 | |||
(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, 2026 | September 30, 2025 | |||||
ASSETS | ||||||
Cash and cash equivalents | $ 36,088 | $ 32,433 | ||||
Accounts receivable, net | 100,734 | 132,940 | ||||
Inventories, net | 195,893 | 202,827 | ||||
Other current assets | 146,879 | 151,968 | ||||
Total current assets | 479,594 | 520,168 | ||||
Investments | 276,166 | 288,637 | ||||
Property, plant and equipment, net | 185,594 | 224,575 | ||||
Goodwill | 433,201 | 487,561 | ||||
Other intangible assets, net | 91,985 | 105,958 | ||||
Other long-term assets | 64,823 | 67,543 | ||||
Total assets | $ 1,531,363 | $ 1,694,442 | ||||
LIABILITIES | ||||||
Long-term debt, current maturities | $ 7,298 | $ 7,230 | ||||
Other current liabilities | 285,870 | 343,250 | ||||
Total current liabilities | 293,168 | 350,480 | ||||
Long-term debt | 571,950 | 703,602 | ||||
Other long-term liabilities | 154,026 | 159,418 | ||||
Total liabilities | 1,019,144 | 1,213,500 | ||||
SHAREHOLDERS' EQUITY | ||||||
Total shareholders' equity | 512,219 | 480,942 | ||||
Total liabilities and shareholders' equity | $ 1,531,363 | $ 1,694,442 | ||||
CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited) (In thousands) | |||
Six Months Ended March 31, | |||
2026 | 2025 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 21,795 | $ (12,388) | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 24,204 | 40,735 | |
(Gain) loss on divestitures, net | (109,264) | 2,072 | |
Loss on debt extinguishment | 16,343 | — | |
Changes in working capital items | (37,955) | (43,362) | |
Other operating activities | 17,447 | (5,738) | |
Net cash used in operating activities | (67,430) | (18,681) | |
Cash flows from investing activities: | |||
Capital expenditures | (9,300) | (18,271) | |
Acquisitions, net of cash acquired | (524) | (2,218) | |
Proceeds from sale of assets | 3,506 | 14,608 | |
Proceeds from divestitures | 243,397 | 2,049 | |
Other investing activities | 2,580 | (63) | |
Net cash provided by (used in) investing activities | 239,659 | (3,895) | |
Cash flows from financing activities: | |||
Net (payments on) proceeds from long-term debt | (130,426) | 50,218 | |
Purchases of treasury stock | (5,698) | (4,426) | |
Dividends | (17,535) | (17,047) | |
Other financing activities | (14,740) | 4,806 | |
Net cash (used in) provided by financing activities | (168,399) | 33,551 | |
Effect of exchange rate changes on cash | (175) | (1,545) | |
Net change in cash and cash equivalents | $ 3,655 | $ (570) | |
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 system 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
ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | |||||||
Three Months Ended March 31, | Six Months Ended March 31, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net (loss) income | $ (21,834) | $ (8,916) | $ 21,795 | $ (12,388) | |||
Income tax (benefit) provision | (6,217) | (2,728) | 34,572 | (5,086) | |||
(Loss) income before income taxes | $ (28,051) | $ (11,644) | $ 56,367 | $ (17,474) | |||
Propelis depreciation, amortization, interest and | 18,776 | — | 33,979 | — | |||
Interest expense, including RPA and factoring | 10,424 | 17,010 | 25,725 | 33,864 | |||
Loss on debt extinguishment | 16,343 | — | 16,343 | — | |||
Depreciation and amortization * | 11,508 | 18,231 | 24,204 | 40,735 | |||
Acquisition and divestiture related items (3)** | 194 | 13,701 | 1,312 | 14,278 | |||
Strategic initiatives and other items (4)**† | 6,394 | 5,373 | 21,644 | 5,988 | |||
(Gain) loss on divestitures, net | 3,945 | 2,072 | (109,264) | 2,072 | |||
Highly inflationary accounting losses (primarily non- | — | 520 | 16 | 711 | |||
Stock-based compensation | 5,136 | 6,018 | 9,543 | 10,997 | |||
Non-service pension and postretirement expense (6) | 75 | 133 | 113 | 266 | |||
Total Adjusted EBITDA | $ 44,744 | $ 51,414 | $ 79,982 | $ 91,437 | |||
Adjusted EBITDA margin | 17.3 % | 12.0 % | 14.7 % | 11.0 % | |||
(1) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis. | |||||||
(2) Includes fees for receivables sold under the RPA and factoring arrangements totaling | |||||||
(3) Includes certain non-recurring items associated with recent acquisition and divestiture activities. | |||||||
(4) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled | |||||||
5) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. | |||||||
(6) 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 system integration costs, and strategic initiatives and other charges were
† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of
ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited) (In thousands, except per share data) | |||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||
per share | per share | per share | per share | ||||||||
Net (loss) income attributable to | $ (0.69) | $ (8,916) | $ (0.29) | $ 21,795 | $ 0.69 | $ (0.40) | |||||
Acquisition and divestiture costs (1) | 179 | 0.01 | 12,353 | 0.40 | 956 | 0.04 | 12,708 | 0.41 | |||
Strategic initiatives and other | 4,945 | 0.15 | 3,197 | 0.11 | 17,514 | 0.55 | 3,901 | 0.13 | |||
(Gain) loss on divestitures, net | 3,844 | 0.13 | — | — | (68,451) | (2.16) | — | — | |||
Highly inflationary accounting | — | — | 520 | 0.01 | 16 | — | 711 | 0.02 | |||
Non-service pension and | 57 | — | 99 | 0.01 | 85 | — | 199 | 0.01 | |||
Amortization | 2,006 | 0.06 | 3,210 | 0.10 | 4,230 | 0.13 | 9,666 | 0.31 | |||
Loss on debt extinguishment | 12,242 | 0.39 | — | — | 12,242 | 0.39 | — | — | |||
Propelis amortization and other | 10,209 | 0.32 | — | — | 17,250 | 0.54 | — | — | |||
Adjusted net income | $ 11,648 | $ 0.37 | $ 10,463 | $ 0.34 | $ 5,637 | $ 0.18 | $ 14,797 | $ 0.48 | |||
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. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), 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. | |||||||||||
(5) Represents the Company's portion of amortization and other items incurred by Propelis. |
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | |||||||||
Memorialization | Industrial | Brand Solutions | Corporate and | Consolidated | |||||
Reported sales for the quarter | $ 215,257 | $ 43,362 | $ — | $ — | $ 258,619 | ||||
Changes in foreign exchange | (1,031) | (3,104) | (804) | — | (4,939) | ||||
Constant currency sales for the | $ 214,226 | $ 40,258 | $ (804) | $ — | $ 253,680 | ||||
Reported sales for the six months | $ 419,432 | $ 112,377 | $ 11,573 | $ — | $ 543,382 | ||||
Changes in foreign exchange | (1,515) | (5,978) | — | — | (7,493) | ||||
Constant currency sales for the six | $ 417,917 | $ 106,399 | $ 11,573 | $ — | $ 535,889 | ||||
Reported adjusted EBITDA for the | $ 48,831 | $ (3,313) | $ 9,615 | $ (10,389) | $ 44,744 | ||||
Changes in foreign exchange | (132) | 145 | 118 | (5) | 126 | ||||
Constant currency adjusted | $ 48,699 | $ (3,168) | $ 9,733 | $ (10,394) | $ 44,870 | ||||
Reported adjusted EBITDA for the | $ 87,780 | $ (7,771) | $ 22,309 | $ (22,336) | $ 79,982 | ||||
Changes in foreign exchange | (167) | 429 | 63 | (70) | 255 | ||||
Constant currency adjusted | $ 87,613 | $ (7,342) | $ 22,372 | $ (22,406) | $ 80,237 | ||||
Contact: | Daniel E. Stopar |
Chief Financial Officer and Treasurer | |
Phone: (412) 442-8200 |
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SOURCE Matthews International Corporation