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Matthews International Reports Non-Cash Goodwill Charge and Announces Preliminary Financial Estimates for Fiscal 2019 Fourth Quarter
PITTSBURGH, Nov. 08, 2019 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) today reported that the Company recorded a goodwill
About this update from Matthews International Corporation
[{"type":"text","content":"PITTSBURGH, Nov. 08, 2019 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) today reported that the Company recorded a goodwill write-down in its fiscal 2019 fourth quarter. In addition, the Company announced preliminary financial expectations for its fiscal fourth quarter and year ended September 30, 2019.\n During the fiscal 2019 fourth quarter, the Company initiated a project to reduce costs and improve the profitability of the SGK Brand Solutions segment. This project included an evaluation of the commercial and operational structure of the segment also resulting in a re-assessment of the valuation of goodwill. As a result of that re-assessment, the Company recorded a write-down of approximately $78 million to the goodwill of the Graphics Imaging reporting unit within the segment. As a result of this non-cash charge, the Company expects to report a GAAP net loss attributable to Matthews for the fiscal 2019 fourth quarter in the range of $69 million ($2.20 per share) to $71 million ($2.25 per share). Non‑GAAP adjusted earnings per share (“EPS”) for the fiscal 2019 fourth quarter are expected to be in the range of $0.96 to $1.01, and non-GAAP adjusted EBITDA (net income before interest expense, income taxes, depreciation and amortization, and other adjustments) is expected to be in the range of $57 million to $59 million. For the year ended September 30, 2019, the Company expects to report a GAAP net loss attributable to Matthews in the range of $36 million ($1.15 per share) to $38 million ($1.20 per share). For the year ended September 30, 2019, the Company expects to report non-GAAP adjusted EPS in the range of $3.26 to $3.31, and non-GAAP adjusted EBITDA in the range of $219 million to $221 million. In discussing the goodwill charge and the Company’s preliminary results for the quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated: “As we announced following our third quarter, the Company initiated a strategic review of several of its operations, including the commercial and operational structure within its SGK Brand Solutions segment. Based on the preliminary expected impact of this review on future operating structure and related projections, the Company re-assessed the valuation of goodwill related to the Graphics Imaging reporting unit within the SGK Brand Solutions segment...