Matthews International Reports Results for Fourth Quarter and Fiscal Year Ended September 30, 2024
Matthews International (MATW) reported Q4 FY2024 consolidated sales of $446.7 million, down 7% from $480.2 million in Q4 FY2023. Full-year sales reached $1.80 billion, a 4.5% decrease from prior year. The company reported a Q4 net loss of $68.2 million, compared to net income of $17.7 million last year. Adjusted EBITDA for Q4 was $58.1 million, down from $61.9 million. The company reduced outstanding debt by $53.8 million during the quarter and set FY2025 adjusted EBITDA guidance of $205-215 million. Notable developments include ongoing cost reduction programs, improved performance in SGK Brand Solutions, and customer delays in the energy business.
Matthews International (MATW) ha riportato vendite consolidate nel Q4 FY2024 di 446,7 milioni di dollari, in calo del 7% rispetto ai 480,2 milioni di dollari del Q4 FY2023. Le vendite totali dell'anno hanno raggiunto 1,80 miliardi di dollari, con una diminuzione del 4,5% rispetto all'anno precedente. L'azienda ha registrato una perdita netta nel Q4 di 68,2 milioni di dollari, rispetto all'utile netto di 17,7 milioni di dollari dell'anno scorso. L'EBITDA rettificato per il Q4 è stato di 58,1 milioni di dollari, in calo rispetto ai 61,9 milioni di dollari. L'azienda ha ridotto il debito in circolazione di 53,8 milioni di dollari durante il trimestre e ha fissato una guida per l'EBITDA rettificato FY2025 tra 205 e 215 milioni di dollari. Sviluppi notevoli includono programmi in corso per la riduzione dei costi, un miglioramento delle performance in SGK Brand Solutions e ritardi dei clienti nel settore energetico.
Matthews International (MATW) informó ventas consolidadas en el Q4 del FY2024 de 446.7 millones de dólares, una disminución del 7% con respecto a los 480.2 millones de dólares en el Q4 del FY2023. Las ventas anuales totales alcanzaron 1.80 mil millones de dólares, una disminución del 4.5% en comparación con el año anterior. La compañía reportó una pérdida neta de 68.2 millones de dólares en el Q4, en comparación con una ganancia neta de 17.7 millones de dólares del año pasado. El EBITDA ajustado del Q4 fue de 58.1 millones de dólares, bajando de 61.9 millones de dólares. La compañía disminuyó su deuda pendiente en 53.8 millones de dólares durante el trimestre y estableció una orientación del EBITDA ajustado para el FY2025 entre 205 y 215 millones de dólares. Desarrollos notables incluyen programas en curso de reducción de costos, mejora en el rendimiento de SGK Brand Solutions y retrasos de clientes en el negocio de energía.
매튜스 인터내셔널 (MATW)은 FY2024 4분기 통합 매출이 4억 4,670만 달러로 FY2023 4분기 4억 8,020만 달러에 비해 7% 감소했다고 보고했습니다. 연간 총 매출은 18억 달러에 달하며, 이는 전년도보다 4.5% 감소한 수치입니다. 회사는 4분기에 6,820만 달러의 순손실을 기록했으며, 지난해 1,770만 달러의 순이익과 비교됩니다. 4분기 조정 EBITDA는 5,810만 달러로, 6,190만 달러에서 하락했습니다. 회사는 분기 동안 부채를 5,380만 달러 줄였으며, FY2025 조정 EBITDA 가이드를 2억 5천만에서 2억 1,500만 달러로 설정했습니다. 주요 사항으로는 진행 중인 비용 절감 프로그램, SGK 브랜드 솔루션의 성과 개선, 에너지 사업에서의 고객 지연이 포함됩니다.
Matthews International (MATW) a annoncé des ventes consolidées de 446,7 millions de dollars au 4ème trimestre de l'exercice 2024, en baisse de 7% par rapport à 480,2 millions de dollars au 4ème trimestre de l'exercice 2023. Les ventes de l'année entière ont atteint 1,80 milliard de dollars, soit une diminution de 4,5% par rapport à l'année précédente. L'entreprise a annoncé une perte nette de 68,2 millions de dollars au 4ème trimestre, contre un bénéfice net de 17,7 millions de dollars l'an dernier. L'EBITDA ajusté pour le 4ème trimestre était de 58,1 millions de dollars, en baisse par rapport à 61,9 millions de dollars. L'entreprise a réduit sa dette en circulation de 53,8 millions de dollars au cours du trimestre et a fixé un objectif d'EBITDA ajusté pour l'exercice 2025 de 205 à 215 millions de dollars. Parmi les développements notables figurent des programmes de réduction des coûts en cours, une amélioration des performances de SGK Brand Solutions, et des retards de clients dans le secteur de l'énergie.
Matthews International (MATW) berichtete im 4. Quartal des Geschäftsjahres 2024 von konsolidierten Umsätzen in Höhe von 446,7 Millionen Dollar, was einem Rückgang von 7% gegenüber 480,2 Millionen Dollar im 4. Quartal des Geschäftsjahres 2023 entspricht. Die Gesamtjahresumsätze beliefen sich auf 1,80 Milliarden Dollar, ein Rückgang von 4,5% im Vergleich zum Vorjahr. Das Unternehmen meldete im 4. Quartal einen Nettoverlust von 68,2 Millionen Dollar, verglichen mit einem Nettogewinn von 17,7 Millionen Dollar im Vorjahr. Das bereinigte EBITDA für das 4. Quartal betrug 58,1 Millionen Dollar, ein Rückgang von 61,9 Millionen Dollar. Das Unternehmen reduzierte die ausstehenden Schulden um 53,8 Millionen Dollar im Laufe des Quartals und setzte die EBITDA-Prognose für das Geschäftsjahr 2025 auf 205-215 Millionen Dollar fest. Zu den bemerkenswerten Entwicklungen gehören laufende Programmen zur Kostensenkung, verbesserte Leistungen in SGK Brand Solutions und Kundenverzögerungen im Energiesektor.
- Debt reduction of $53.8 million during Q4
- SGK Brand Solutions segment reported consecutive quarters of year-over-year sales growth
- Memorialization segment reported higher adjusted EBITDA despite lower volumes
- Corporate and non-operating costs decreased by 5% year-over-year
- Q4 sales declined 7% to $446.7 million year-over-year
- Q4 net loss of $68.2 million compared to $17.7 million profit last year
- Full-year sales decreased 4.5% to $1.80 billion
- Adjusted EBITDA declined 6.1% to $58.1 million in Q4
- Customer delays affecting Industrial Technologies segment performance
Insights
Matthews International's Q4 results reveal significant challenges with consolidated sales declining
- Adjusted EBITDA dropped to
$58.1 million from$61.9 million year-over-year - Non-GAAP EPS declined significantly to
$0.55 from$0.96 - Positive developments include debt reduction of
$53.8 million and successful refinancing of senior notes
The FY2025 adjusted EBITDA guidance of
The company's segment performance shows mixed results with concerning trends. The Memorialization segment maintains profitability despite lower volumes, while SGK Brand Solutions demonstrates recovery with consecutive quarterly growth. However, the Industrial Technologies segment faces significant headwinds from customer delays and soft warehouse automation market conditions. The strategic review and cost reduction initiatives suggest a company in transition, potentially leading to:
- Portfolio restructuring opportunities
- Improved operational efficiency from cost reduction programs
- Market expansion in Asia-Pacific region
The warehouse automation market's recent order improvement and new printhead product launch planned for late FY2025 could provide growth catalysts, though timing uncertainty in the energy business remains a key risk factor.
Financial Highlights:
- 4th Quarter consolidated sales of
$446.7 million ;$1.80 billion for fiscal 2024 - Outstanding debt reduced by
$53.8 million during the quarter - Cost reduction actions progressing well
- Company sets adjusted EBITDA guidance for fiscal 2025
- Webcast: Friday, November 22, 2024, 9:00 a.m., (201) 689-8471
PITTSBURGH, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) today announced financial results for the quarter and fiscal year ended September 30, 2024.
In discussing the Company’s results, Joseph C. Bartolacci, President and Chief Executive Officer, stated:
“Our consolidated operating results for the fiscal 2024 fourth quarter reflected another quarter of solid performance by our core businesses and, consistent with prior quarters, was impacted by continuing customer delays in our energy business. Our previously announced cost reduction program is now underway, as evidenced by the charges reflected in our GAAP results this quarter, and progressing well. Overall, we were pleased with the consolidated operating results as we again demonstrated the resilience of Matthews and our employees in mitigating the challenges faced by one of our segments. For the year ended September 30, 2024, consolidated adjusted EBITDA was
“The Memorialization segment reported higher adjusted EBITDA for the current quarter despite lower unit volumes, which were related to a decline in U.S. deaths compared to a year ago. Ongoing cost control efforts combined with improved price realization were the key drivers in the improvement in operating margins. This segment has done a tremendous job of maintaining its level of performance over the past several years despite the declines in unit volume following the pandemic.
“We are also pleased to report that our SGK Brand Solutions segment reported another consecutive quarter of year-over-year sales growth. This segment has stabilized nicely over the last two years with modest improvements in margins and is continuing its recovery following the global impacts of the pandemic and the European impact of the Russia-Ukraine war. Sales for the segment increased compared to a year ago primarily reflecting improved pricing to mitigate inflationary cost increases, higher sales for the merchandising and private label businesses, and growth in the Asia-Pacific market.
“Sales for the Industrial Technologies segment for the fiscal 2024 fourth quarter declined from a year ago primarily resulting from further customer delays in our energy business. The current quarter also reflected a continued soft warehouse automation market; however, order rates have been improving recently which could bode well for a good recovery next fiscal year.
“With respect to our cost reduction program, current quarter charges include non-cash goodwill impairment and other asset write-downs primarily in connection with our European operations, in addition to severance and other costs. The program is also targeting general and administrative cost reductions. For our fiscal 2024 fourth quarter, we reported another quarter of lower corporate and non-operating costs compared to a year ago. For the year, corporate and non-operating costs were approximately
“During the fiscal 2024 fourth quarter, we reduced our outstanding debt by
“Looking forward to fiscal 2025, we continue to face the uncertainty of project timing in our Industrial Technologies segment, specifically relating to our energy business. While we currently expect deliveries to be substantially completed during the year, quarterly timing is still difficult to forecast. Our cost reduction programs should mitigate some of this impact.
“We expect another solid performance for our Memorialization business in fiscal 2025 as U.S. deaths appear to have generally normalized following COVID and we are projecting continued growth in our cremation-related products sales. Continued growth is also projected for our SGK Brand Solutions segment reflecting ongoing improvement in U.S. market conditions, more stable conditions in Europe, and further growth in the Asia-Pacific region. In the Industrial Technologies segment, our product identification business is projecting growth next year and we should start to realize benefits from the launch of a new printhead product, which is currently scheduled for the latter half of the fiscal year. Also, as noted earlier, recent improving order rates for warehouse automation solutions should support recovery in this business. With these considerations in mind, we remain cautious and are projecting adjusted EBITDA in the range of
“Lastly, as growth opportunities for the Industrial Technologies segment continue to emerge, the Company has been exploring strategies with respect to its portfolio of businesses. Accordingly, we have retained J.P. Morgan to support the evaluation of potential strategic alternatives.”
Fourth Quarter Fiscal 2024 Consolidated Results (Unaudited)
| ($ in millions, except per share data) | Q4 FY2024 | Q4 FY2023 | Change | % Change | |||||||||
| Sales | $ | 446.7 | $ | 480.2 | $ | (33.5 | ) | (7.0)% | |||||
| Net (loss) income attributable to Matthews | $ | (68.2 | ) | $ | 17.7 | $ | (85.9 | ) | NM | ||||
| Diluted (loss) earnings per share | $ | (2.21 | ) | $ | 0.56 | $ | (2.77 | ) | NM | ||||
| Non-GAAP adjusted net income | $ | 16.6 | $ | 30.3 | $ | (13.7 | ) | (45.2)% | |||||
| Non-GAAP adjusted EPS | $ | 0.55 | $ | 0.96 | $ | (0.41 | ) | NM | |||||
| Adjusted EBITDA | $ | 58.1 | $ | 61.9 | $ | (3.8 | ) | (6.1)% | |||||
| 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. | |||||||||||||
Consolidated sales for the fiscal 2024 fourth quarter were
Fiscal 2024 Consolidated Results (Unaudited)
| ($ in millions, except per share data) | YTD FY2024 | YTD FY2023 | Change | % Change | |||||||||
| Sales | $ | 1,795.7 | $ | 1,880.9 | $ | (85.2 | ) | (4.5)% | |||||
| Net (loss) income attributable to Matthews | $ | (59.7 | ) | $ | 39.3 | $ | (99.0 | ) | NM | ||||
| Diluted (loss) earnings per share | $ | (1.93 | ) | $ | 1.26 | $ | (3.19 | ) | NM | ||||
| Non-GAAP adjusted net income | $ | 67.0 | $ | 90.1 | $ | (23.1 | ) | (25.6)% | |||||
| Non-GAAP adjusted EPS | $ | 2.17 | $ | 2.88 | $ | (0.71 | ) | (24.7)% | |||||
| Adjusted EBITDA | $ | 205.2 | $ | 225.8 | $ | (20.6 | ) | (9.1)% | |||||
| 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. | |||||||||||||
Consolidated sales for the year ended September 30, 2024 were
Webcast
The Company will host a conference call and webcast on Friday, November 22, 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 sales 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 over 11,000 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, the outcome of the Company's dispute with Tesla, Inc. ("Tesla"), 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 September 30, | Year Ended September 30, | ||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
| Sales | $ | 446,695 | $ | 480,168 | (7.0 | )% | $ | 1,795,737 | $ | 1,880,896 | (4.5 | )% | |||||||||
| Cost of sales | (329,360 | ) | (329,354 | ) | — | % | (1,266,030 | ) | (1,303,224 | ) | (2.9 | )% | |||||||||
| Gross profit | 117,335 | 150,814 | (22.2 | )% | 529,707 | 577,672 | (8.3 | )% | |||||||||||||
| Gross margin | 26.3 | % | 31.4 | % | 29.5 | % | 30.7 | % | |||||||||||||
| Selling and administrative expenses | (141,156 | ) | (113,931 | ) | 23.9 | % | (488,280 | ) | (447,487 | ) | 9.1 | % | |||||||||
| Intangible amortization | (9,232 | ) | (10,569 | ) | (12.7 | )% | (37,023 | ) | (42,068 | ) | (12.0 | )% | |||||||||
| Goodwill write-downs | (16,727 | ) | — | 100.0 | % | (16,727 | ) | — | 100.0 | % | |||||||||||
| Operating (loss) profit | (49,780 | ) | 26,314 | NM | (12,323 | ) | 88,117 | (114.0 | )% | ||||||||||||
| Operating margin | (11.1)% | 5.5 | % | (0.7)% | 4.7 | % | |||||||||||||||
| Interest and other, net | (17,701 | ) | (10,983 | ) | 61.2 | % | (57,334 | ) | (47,207 | ) | 21.5 | % | |||||||||
| (Loss) income before income taxes | (67,481 | ) | 15,331 | NM | (69,657 | ) | 40,910 | NM | |||||||||||||
| Income taxes | (680 | ) | 2,362 | (128.8 | )% | 9,997 | (1,774 | ) | NM | ||||||||||||
| Net (loss) income | (68,161 | ) | 17,693 | NM | (59,660 | ) | 39,136 | NM | |||||||||||||
| Non-controlling interests | — | 30 | (100.0 | )% | — | 155 | (100.0 | )% | |||||||||||||
| Net (loss) income attributable to Matthews | $ | (68,161 | ) | $ | 17,723 | NM | $ | (59,660 | ) | $ | 39,291 | NM | |||||||||
| (Loss) earnings per share -- diluted | $ | (2.21 | ) | $ | 0.56 | NM | $ | (1.93 | ) | $ | 1.26 | NM | |||||||||
| Earnings per share -- non-GAAP(1) | $ | 0.55 | $ | 0.96 | NM | $ | 2.17 | $ | 2.88 | (24.7 | )% | ||||||||||
| Dividends declared per share | $ | 0.24 | $ | 0.23 | 4.3 | % | $ | 0.96 | $ | 0.92 | 4.3 | % | |||||||||
| Diluted shares | 30,910 | 31,517 | 30,913 | 31,289 | |||||||||||||||||
| (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 September 30, | Year Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Sales: | |||||||||||||||
| Memorialization | $ | 196,840 | $ | 204,878 | $ | 829,731 | $ | 842,997 | |||||||
| Industrial Technologies | 113,915 | 140,561 | 433,156 | 505,751 | |||||||||||
| SGK Brand Solutions | 135,940 | 134,729 | 532,850 | 532,148 | |||||||||||
| $ | 446,695 | $ | 480,168 | $ | 1,795,737 | $ | 1,880,896 | ||||||||
| Adjusted EBITDA: | |||||||||||||||
| Memorialization | $ | 40,535 | $ | 36,890 | $ | 162,586 | $ | 163,986 | |||||||
| Industrial Technologies | 15,870 | 23,470 | 39,716 | 66,278 | |||||||||||
| SGK Brand Solutions | 17,303 | 17,512 | 61,620 | 57,128 | |||||||||||
| Corporate and Non-Operating | (15,579 | ) | (15,989 | ) | (58,765 | ) | (61,583 | ) | |||||||
| Total Adjusted EBITDA(1) | $ | 58,129 | $ | 61,883 | $ | 205,157 | $ | 225,809 | |||||||
| (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) | |||||||
| September 30, 2024 | September 30, 2023 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 40,816 | $ | 42,101 | |||
| Accounts receivable, net | 205,984 | 207,526 | |||||
| Inventories, net | 237,888 | 260,409 | |||||
| Other current assets | 147,855 | 138,221 | |||||
| Total current assets | 632,543 | 648,257 | |||||
| Property, plant and equipment, net | 279,499 | 270,326 | |||||
| Goodwill | 697,123 | 698,109 | |||||
| Other intangible assets, net | 126,026 | 160,478 | |||||
| Other long-term assets | 99,699 | 110,211 | |||||
| Total assets | $ | 1,834,890 | $ | 1,887,381 | |||
| LIABILITIES | |||||||
| Long-term debt, current maturities | $ | 6,853 | $ | 3,696 | |||
| Other current liabilities | 427,922 | 390,904 | |||||
| Total current liabilities | 434,775 | 394,600 | |||||
| Long-term debt | 769,614 | 786,484 | |||||
| Other long-term liabilities | 193,295 | 181,016 | |||||
| Total liabilities | 1,397,684 | 1,362,100 | |||||
| SHAREHOLDERS' EQUITY | |||||||
| Total shareholders' equity | 437,206 | 525,281 | |||||
| Total liabilities and shareholders' equity | $ | 1,834,890 | $ | 1,887,381 | |||
| CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited) (In thousands) | |||||||
| Year Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (59,660 | ) | $ | 39,136 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 94,770 | 96,530 | |||||
| Changes in working capital items | 14,696 | (35,503 | ) | ||||
| Goodwill write-downs | 16,727 | — | |||||
| Other operating activities | 12,749 | (20,639 | ) | ||||
| Net cash provided by operating activities | 79,282 | 79,524 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (45,218 | ) | (50,598 | ) | |||
| Acquisitions, net of cash acquired | (5,825 | ) | (15,341 | ) | |||
| Other investing activities | 4,075 | 7,214 | |||||
| Net cash used in investing activities | (46,968 | ) | (58,725 | ) | |||
| Cash flows from financing activities: | |||||||
| Net (payments) proceeds from long-term debt | (31,338 | ) | (18,224 | ) | |||
| Purchases of treasury stock | (20,574 | ) | (2,857 | ) | |||
| Dividends | (31,409 | ) | (28,202 | ) | |||
| Other financing activities | 48,278 | (912 | ) | ||||
| Net cash used in financing activities | (35,043 | ) | (50,195 | ) | |||
| Effect of exchange rate changes on cash | 1,444 | 83 | |||||
| Net change in cash, cash equivalents and restricted cash | $ | (1,285 | ) | $ | (29,313 | ) | |
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 September 30, | Year Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (68,161 | ) | $ | 17,693 | $ | (59,660 | ) | $ | 39,136 | |||||
| Income tax provision (benefit) | 680 | (2,362 | ) | (9,997 | ) | 1,774 | |||||||||
| (Loss) income before income taxes | $ | (67,481 | ) | $ | 15,331 | $ | (69,657 | ) | $ | 40,910 | |||||
| Net loss attributable to noncontrolling interests | — | 30 | — | 155 | |||||||||||
| Interest expense, including RPA and factory financing fees(1) | 14,825 | 12,746 | 55,364 | 48,690 | |||||||||||
| Depreciation and amortization* | 24,329 | 24,717 | 94,770 | 96,530 | |||||||||||
| Acquisition and divestiture related items(2) ** | 11 | 848 | 5,576 | 5,293 | |||||||||||
| Strategic initiatives and other charges(3) **† | 48,458 | 6,168 | 65,586 | 13,923 | |||||||||||
| Highly inflationary accounting impacts (primarily non-cash)(4) | 132 | (1,714 | ) | 1,027 | 1,360 | ||||||||||
| Goodwill and asset write-downs(5) | 33,574 | — | 33,574 | — | |||||||||||
| Stock-based compensation | 4,169 | 3,673 | 18,478 | 17,308 | |||||||||||
| Non-service pension and postretirement expense(6) | 112 | 84 | 439 | 1,640 | |||||||||||
| Total Adjusted EBITDA | $ | 58,129 | $ | 61,883 | $ | 205,157 | $ | 225,809 | |||||||
| Adjusted EBITDA margin | 13.0 | % | 12.9 | % | 11.4 | % | 12.0 | % | |||||||
| (1)Includes fees for receivables sold under the RPA and factoring arrangements totaling | |||||||||||||||
| (2)Includes certain non-recurring costs associated with recent acquisition and divestiture activities, and also includes a gain of | |||||||||||||||
| (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 legal costs related to an ongoing dispute with Tesla, which totaled | |||||||||||||||
| (4)Represents exchange gains and losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. | |||||||||||||||
| (5)Fiscal 2024 includes goodwill write-downs within the Industrial Technologies segment of | |||||||||||||||
| (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 integration costs, non-recurring/incremental COVID-19 costs, and strategic initiatives and other charges were
† Strategic initiatives and other charges includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling
| ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited) (In thousands, except per share data) | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| per share | per share | per share | per share | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Matthews | $ | (68,161 | ) | $ | (2.21 | ) | $ | 17,723 | $ | 0.56 | $ | (59,660 | ) | $ | (1.93 | ) | $ | 39,291 | $ | 1.26 | |||||||||||
| Acquisition and divestiture items(1) | 837 | 0.03 | 1,626 | 0.05 | 4,873 | 0.16 | 4,874 | 0.15 | |||||||||||||||||||||||
| Strategic initiatives and other charges(2) | 41,261 | 1.35 | 4,702 | 0.15 | 57,073 | 1.85 | 11,771 | 0.38 | |||||||||||||||||||||||
| Highly inflationary accounting impacts (primarily non-cash)(3) | 132 | — | (1,714 | ) | (0.05 | ) | 1,027 | 0.03 | 1,360 | 0.04 | |||||||||||||||||||||
| Goodwill and asset write-downs(4) | 32,784 | 1.06 | — | — | 32,784 | 1.06 | — | — | |||||||||||||||||||||||
| Non-service pension and postretirement expense(5) | 83 | — | 63 | — | 329 | 0.01 | 1,230 | 0.04 | |||||||||||||||||||||||
| Intangible amortization expense | 6,924 | 0.23 | 7,927 | 0.25 | 27,767 | 0.90 | 31,551 | 1.01 | |||||||||||||||||||||||
| Tax-related(6) | 2,703 | 0.09 | — | — | 2,839 | 0.09 | — | — | |||||||||||||||||||||||
| Adjusted net income | $ | 16,563 | $ | 0.55 | $ | 30,327 | $ | 0.96 | $ | 67,032 | $ | 2.17 | $ | 90,077 | $ | 2.88 | |||||||||||||||
| 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, and also includes a gain in fiscal year 2023 related to the divestiture of a business in the Industrial Technologies segment. | |||||||||||||||||||||||||||||||
| (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 legal costs related to an ongoing dispute with Tesla, which totaled | |||||||||||||||||||||||||||||||
| (3)Represents exchange gains and losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries | |||||||||||||||||||||||||||||||
| (4)Fiscal 2024 includes goodwill write-downs within the Industrial Technologies segment, asset write-downs within the Memorialization segment, and investment write-downs within Corporate and Non-operating. | |||||||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||
| (6)The three months and fiscal year ended September 30, 2024 includes | |||||||||||||||||||||||||||||||
| 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 September 30, 2024 | $ | 196,840 | $ | 113,915 | $ | 135,940 | $ | — | $ | 446,695 | |||||||||
| Changes in foreign exchange translation rates | (107 | ) | (783 | ) | 237 | — | (653 | ) | |||||||||||
| Constant currency sales for the quarter ended September 30, 2024 | $ | 196,733 | $ | 113,132 | $ | 136,177 | $ | — | $ | 446,042 | |||||||||
| Reported sales for the year ended September 30, 2024 | $ | 829,731 | $ | 433,156 | $ | 532,850 | $ | — | $ | 1,795,737 | |||||||||
| Changes in foreign exchange translation rates | (362 | ) | (4,060 | ) | 3,110 | — | (1,312 | ) | |||||||||||
| Constant currency sales for the year ended September 30, 2024 | $ | 829,369 | $ | 429,096 | $ | 535,960 | $ | — | $ | 1,794,425 |
| Reported adjusted EBITDA for the quarter ended September 30, 2024 | $ | 40,535 | $ | 15,870 | $ | 17,303 | $ | (15,579 | ) | $ | 58,129 | ||||||||
| Changes in foreign exchange translation rates | 17 | (76 | ) | (187 | ) | 29 | (217 | ) | |||||||||||
| Constant currency adjusted EBITDA for the quarter ended September 30, 2024 | $ | 40,552 | $ | 15,794 | $ | 17,116 | $ | (15,550 | ) | $ | 57,912 |
| Reported adjusted EBITDA for the year ended September 30, 2024 | $ | 162,586 | $ | 39,716 | $ | 61,620 | $ | (58,765 | ) | $ | 205,157 | ||||||||
| Changes in foreign exchange translation rates | 139 | (367 | ) | 113 | 82 | (33 | ) | ||||||||||||
| Constant currency adjusted EBITDA for the year ended September 30, 2024 | $ | 162,725 | $ | 39,349 | $ | 61,733 | $ | (58,683 | ) | $ | 205,124 | ||||||||
| NET DEBT RECONCILIATION (Unaudited) (In thousands) | |||||||
| September 30, 2024 | September 30, 2023 | ||||||
| Long-term debt, current maturities | $ | 6,853 | $ | 3,696 | |||
| Long-term debt | 769,614 | 786,484 | |||||
| Total long-term debt | 776,467 | 790,180 | |||||
| Less: Cash and cash equivalents | (40,816 | ) | (42,101 | ) | |||
| Net Debt | $ | 735,651 | $ | 748,079 | |||
| Adjusted EBITDA | $ | 205,157 | $ | 225,809 | |||
| Net Debt Leverage Ratio | 3.6 | 3.3 | |||||
Matthews International Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
| November 21, 2024 | Contact: | Steven F. Nicola |
| Chief Financial Officer | ||
| and Secretary |
FAQ
What was Matthews International (MATW) Q4 2024 revenue?
What is Matthews International (MATW) FY2025 EBITDA guidance?
How much debt did Matthews International (MATW) reduce in Q4 2024?
What was Matthews International (MATW) Q4 2024 net income?
