Matthews International Corporation · NASDAQ:MATW
Matthews International — Q3 2020 Earnings Presentation
16 slides from Matthews International's earnings presentation, Jul 31, 2020
Slide 1: Third Quarter Fiscal 2020 Earnings Teleconference
Third Quarter Fiscal 2020 Earnings Teleconference July 31, 2020 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 mnlocLe OVERVIEW INTERNATIONAL®
Slide 4: Q3 & YTD FY2020 Summary
Q3 & YTD FY2020 SUMMARY ($ in millions except per-share amounts) GAAP and non-GAAP Comparison Q3 Q3 2019 Q3 2020 Sales Sales $ 379.3 $ 359.4 • Growth in sales of Memorialization caskets and Gross Margin 36.2 % 33.7 % cremation equipment Diluted EPS $ 0.46 $ 0.07 • Continued slow sales in cylinder an
Slide 5: Memorialization
MEMORIALIZATION ($ in millions) Q3 Sales YTD Sales Sales $158.2 $162.1 $474.3 $478.3 • Strong casket sales • Higher cremation equipment sales • Cemetary memorial product sales unfavorably impacted by COVID-19 in Q3 Adjusted EBITDA • Strong casket sales offset with lower sales of cemetery memorial pr
Slide 6: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q3 Sales YTD Sales Sales $181.9 $557.9 • Lower brand and private label sales in North $165.8 $513.5 America and Europe • Continued commercial impact from COVID-19 • Lower sales in cylinders and surfaces • Unfavorable currency impact of $8.5 million YTD and $3.4 mi
Slide 7: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q3 Sales YTD Sales Sales $39.1 • Q3 sales continued to be unfavorably $112.7 $107.3 impacted by COVID-19 $31.5 • Warehouse automation sales impacted by customer delays • Solid warehouse automation backlog Adjusted EBITDA • Impact of lower sales Q3 FY2019 Q3 FY
Slide 8: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Cash $940.7 $905.4 $860.9 $818.0 $42.9 $35.3 09/30/19 06/30/20 9/30/19 06/30/20 Note: Dark gray shades on the left represent Total Debt. Operating Cash Flow $123.6 • $104.9M reduction in outstanding debt during Q3 $89.4 • Strong
Slide 9: Business Update and Outlook
Matthews euahtss OVERVIEW INTERNATIONAL®
Slide 10: Business Update
BUSINESS UPDATE SGK BRAND • Steady core brand packaging volume in North America and Asia Pacific regions • Slower cylinders (primarily tobacco) and surfaces sales; higher Engineering sales SOLUTIONS • Energy storage opportunities • Casket sales growth MEMORIALIZATION • Cemetery products lower due to
Slide 11: Outlook for Q4 Fiscal 2020
OUTLOOK FOR Q4 FISCAL 2020 Key Drivers • Continued challenges and uncertainty in current COVID-19 economic environment • Memorialization - Casket sales higher, memorial product sales orders returning • SGK Brand Solutions - Brand packaging generally stable. Challenges in cylinders • Industrial Techn
Slide 12: Supplemental Information
Matthews Buea ma INFORMATION INTERNATIONAL
Slide 13: 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 14: Adjusted EBITDA Non-GAAP Reconciliation
ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Net income (loss) $ 1,849 $ 14,424 $ (95,052) $ 32,602 Income tax (benefit) provision (6,209) 3,989 (22,672) 4,429 (Loss) income before income taxes $ (4,360)
Slide 15: Adjusted Net Income and Earnings Per Share Non-GAAP Reconciliation
ADJUSTED NET INCOME AND EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 2020 2019 2020 2019 per share per share per share per share Net income (loss) attributable to Matthews $ 2,269 $ 0.07 $ 14,629 $
Slide 16: Net Debt Non-GAAP Reconciliation
NET DEBT NON-GAAP RECONCILIATION (Unaudited) (In thousands) June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Long-term debt, current maturities $ 23,114 $ 26,077 $ 25,532 $ 42,503 Long-term debt 837,770 939,753 941,395 898,194 Total debt 860,884 965,830 966,927 940,697 Less: Cash an
Matthews International — Q3 2020 Earnings Presentation on 6ix