Matthews International Corporation · NASDAQ:MATW
Matthews International — Q1 2025 Earnings Presentation
17 slides from Matthews International's earnings presentation, Feb 7, 2025
Slide 1: First Quarter Fiscal 2025 Earnings Review
First Quarter Fiscal 2025 Earnings Review February 7, 2025 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 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,
Slide 3: Business Overview
Matthews lanes OVERVIEW INTERNATIONAL
Slide 4: Business Update
BUSINESS UPDATE • Benefits from ongoing productivity and cost reduction initiatives and improved price realization MEMORIALIZATION • Lower U.S. death rates and impact of granite backlog reduction efforts in the prior year SGK BRAND • Improved market conditions and growth in the private label market
Slide 5: Outlook for Fiscal 2025
OUTLOOK FOR FISCAL 2025 Key Drivers • Projected adjusted EBITDA to be in the range of $205 million to $215 million (subject to the completion of the SGK Brand Solutions (SGK) transaction) • Initiated the required regulatory filing process for the SGK transaction, and remain on track to complete the
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q1 2025 Summary
Q1 2025 SUMMARY ($ in millions except per-share amounts) Highlights Sales • SGK Brand Solutions segment reported a modest increase in sales Q1 Q1 2024 Q1 2025 • Lower energy storage sales Sales $ 450.0 $ 401.8 Diluted loss per share $ (0.07) $ (0.11) GAAP EPS Non-GAAP Adjusted EPS* $ 0.37 $ 0.14 • O
Slide 8: Memorialization
MEMORIALIZATION ($ in millions) Q1 Sales Sales $208.1 • Lower sales compared to last year primarily $190.5 reflecting the impact of lower U.S. deaths and reduced sales of granite memorials Adjusted EBITDA • Improved price realization and productivity and cost reduction initiatives FY2024 FY2025 Q1 A
Slide 9: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q1 Sales Sales $111.4 • Energy storage sales impacted by customer $80.5 delays • Warehouse automation sales unfavorably impacted by market conditions Adjusted EBITDA Q1 FY2024 Q1 FY2025 • Impact of lower sales and lower margins on engineered products Q1 Adjust
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q1 Sales $130.5 $130.8 Sales • Growth in the private label market and European cylinder business Adjusted EBITDA • Impact of higher labor costs, partially offset by improved price realization to mitigate inflationary cost increases and benefits from FY2024 FY2025
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $776.5 $809.2 $775.7 $735.7 09/30/24 12/31/24 $(25.0) Note: Dark gray shades on the left represent Total Debt. $(27.3) YTD FY2024 YTD FY2025 Cash • First quarter cash flows reflect payments related to fiscal y
Slide 12: Supplemental Information
Matthews Bug 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 GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, and net debt and net deb
Slide 14: Adjusted EBITDA
ADJUSTED EBITDA Three Months Ended December 31, NON-GAAP RECONCILIATION (Unaudited) (In thousands) 2024 2023 Net loss $ (3,472) $ (2,303) Income tax benefit (2,358) (726) Loss before income taxes $ (5,830) $ (3,029) Net loss attributable to noncontrolling interests — — (1) Interest expense, includin
Slide 15: Adjusted Net Income and Earnings Per Share
ADJUSTED NET INCOME AND EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Three Months Ended December 31, 2024 2023 per share per share Net loss attributable to Matthews $ (3,472) $ (0.11) $ (2,303) $ (0.07) Acquisition and divestiture costs (1) 355 0.01 89
Slide 16: Constant Currency Sales and Adjusted EBITDA
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Corporate and Non- Memorialization Industrial Technologies SGK Brand Solutions Operating Consolidated Reported sales for the three months ended December 31, 2024 $ 190,486 $ 80,533 $ 130,823 $ — $ 401,842
Slide 17: Net Debt and Net Debt Leverage Ratio
NET DEBT AND NET DEBT LEVERAGE RATIO NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) December 31, 2024 September 30, 2024 Long-term debt, current maturities $ 7,260 $ 6,853 Long-term debt 801,951 769,614 Total debt 809,211 776,467 Less: Cash and cash equivalents (33,513) (40,816) Net Debt
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