Matthews International Corporation · NASDAQ:MATW
Matthews International — Q4 FY2019 Earnings Presentation
16 slides from Matthews International's earnings presentation, Nov 22, 2019
Slide 1: Fourth Quarter Fiscal 2019 Earnings Teleconference
Fourth Quarter Fiscal 2019 Earnings Teleconference November 22, 2019 www.matw.com | Nasdaq: MATW Joseph C. Bartolacci President and Chief Executive Officer Steven F. Nicola Chief Financial Officer
Slide 2: Disclaimer
DISCLAIMER Any forward-looking statements contained in this presentation are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actua
Slide 3: Overview
Matthews Bie INTERNATIONAL® OVERVIEW
Slide 4: Q4 FY2019 Summary
Q4 FY2019 SUMMARY ($ in millions except per-share amounts) Q4 GAAP and non-GAAP Comparison Sales • Unfavorable currency impacts and previously Q4 2018 Q4 2019 reported brand client account loss Sales $407.4 $392.4 • Delayed orders for Industrial Technologies projects and cremation / incineration Gro
Slide 5: YTD 2019 Summary
YTD 2019 SUMMARY ($ in millions except per-share amounts) YTD 2019 GAAP and non-GAAP Comparison Sales • Higher sales in private label brand market, and warehouse automation YTD 2018 YTD 2019 • Higher sales of cremation and incineration equipment Sales $1,602.6 $1,537.3 and memorial products Gross Ma
Slide 6: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q4 Sales YTD Sales Sales • Unfavorable currency impacts of $4.3 $203.5 $805.3 $186.0 $743.9 million for the quarter and $27.2 million for the full year • Previously reported significant brand client account loss and slower Q4 European market conditions • Both Q4 a
Slide 7: Memorialization
MEMORIALIZATION ($ in millions) Q4 Sales YTD Sales Sales $631.4 $636.9 $155.8 $162.6 • Higher memorial and casket sales for Q4 • Higher sales of cremation and incineration equipment • Benefits from Star Acquisition • Unfavorable currency $0.7 million for Q4 and $3.0 million for the full year Q4 FY20
Slide 8: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q4 Sales YTD Sales Sales $165.9 • Lower product identification and $48.1 $156.5 $43.8 applied technologies sales • Higher warehouse automation sales • Unfavorable impacts in Q4 due to delayed customer orders • Currency $0.4 million unfavorable in Q4 and $2.3 m
Slide 9: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Debt Operating Cash Flow $147.6 $960.6 $979.6 $940.7 $131.1 9/30/2018 6/30/2019 9/30/2019 YTD 2018 YTD 2019 Cash • Reduced debt by $39 million in Q4-19 lowering total $41.6 debt for the year $35.3 • Purchased 710,000 shares in FY2019 • Quarterly dividend
Slide 10: Overview
‘ ges | g 4 ay Gam. ¥ “ y 4 e Aa bis Matthews (E@sitsss INTERNATIONAL® OVERVIEW
Slide 11: Business Progress & Market Climate
BUSINESS PROGRESS & MARKET CLIMATE • Improving conditions in US brand market • Equator continuing to add private label brand business globally SGK BRAND • Slower 2019 Europe cylinder sales from weak economy now improving SOLUTIONS • Opportunities in engineered solutions - Received first energy stora
Slide 12: Outlook for Fiscal 2020
OUTLOOK FOR FISCAL 2020 Key Drivers • Delayed orders starting to come for FY2020 • Expected sales growth in all segments • SGK Brand Solutions trade name consolidation – higher amortization • Cost structure improvements – $25+ million annual run rate achieved in two years Target • Non-GAAP EPS: Mid-
Slide 13: Information
Matthews uzzeeveni INTERNATIONAL’ INFORMATION
Slide 14: Reconciliations of Non-GAAP Financial Measures
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Included in this report are measures of financial performance that are not defined by generally accepted accounting principles in the United States (“GAAP”). The Company uses non-GAAP financial measures to assist in comparing its performance on a consis
Slide 15: Adjusted Earnings Per Share Non-GAAP Reconciliation
ADJUSTED EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Three Months Ended September 30, Year Ended September 30, 2019 2018 2019 2018 per share per share per share per share Net income attributable to Matthews $ (71,131) $ (2.28) $ 29,595 $ 0.93 $ (37,98
Slide 16: Adjusted EBITDA Non-GAAP Reconciliation
ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Three Months Ended September 30, Year Ended September 30, 2019 2018 2019 2018 Net (loss) income $ (71,491) $ 29,536 $ (38,889) $ 107,111 Income tax provision (benefit) (3,623) 9,585 806 (9,118) (Loss) income before income taxes (75,1
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