Matthews International Corporation · NASDAQ:MATW
Matthews International — Q1 2020 Earnings Presentation
15 slides from Matthews International's earnings presentation, Jan 31, 2020
Slide 1: First Quarter Fiscal 2020 Earnings Teleconference
First Quarter Fiscal 2020 Earnings Teleconference January 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 Bie INTERNATIONAL® OVERVIEW
Slide 4: Q1 FY2020 Summary
Q1 FY2020 SUMMARY ($ in millions except per-share amounts) Q1 GAAP and non-GAAP Comparison Sales • Increases for Memorialization and Industrial Technologies segments Q1 2019 Q1 2020 • Lower SGK Brand Solutions sales due to Sales $374.2 $364.9 impact of previously reported US brand client account los
Slide 5: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q1 Sales Sales • Overall sales decline primarily due to the $185.3 $174.9 previously reported US brand client account loss and lower sales of cylinders, surfaces and engineered products • Unfavorable currency impact of $1.9 million compared to last year • Solid gr
Slide 6: Memorialization
MEMORIALIZATION ($ in millions) Q1 Sales Sales $153.9 $154.4 • Higher cremation equipment sales in the UK • Improved price realization on caskets and memorial products Adjusted EBITDA • Improved price realization Q1 FY2019 Q1 FY2020 • Lower margins on cremation and incineration Q1 Adjusted EBITDA &
Slide 7: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q1 Sales $35.0 $35.7 Sales • Higher product identification sales • Lower sales of warehouse automation systems • Decreased applied technologies sales Q1 FY2019 Q1 FY2020 Q1 Adjusted EBITDA & Margin* Adjusted EBITDA $4.3 • Impact of higher sales $3.6 10.3% 12.1
Slide 8: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Debt Operating Cash Flow $983.0 $940.7 $966.9 $8.4 $5.4 12/31/2018 9/30/2019 12/31/2019 Q1 2019 Q1 2020 Cash • Seasonal cash flow typical of Q1 $39.8 $39.4 • Debt below December 2018 level • Quarterly dividend of $0.21/share, payable 2/17/2020 • Q1 inclu
Slide 9: Overview
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Slide 10: Business Progress & Market Climate
BUSINESS PROGRESS & MARKET CLIMATE SGK BRAND • Slower cylinders and surfaces sales • Opportunities in engineered solutions - Received first energy storage order with expected Q4 delivery SOLUTIONS • Initiated cost improvement program in Q4-19 - $25+ million annual run rate target • Positive price re
Slide 11: Outlook for Fiscal 2020
OUTLOOK FOR FISCAL 2020 Key Drivers • Modest growth in Memorialization and SGK Brand Solutions • Continued growth in Industrial Technologies • Cost structure improvements • Focus on debt reduction Target • Non-GAAP EPS: Mid-single digit percentage growth over FY19 • Adjusted EBITDA: Mid-single digit
Slide 12: Supplemental Information
Matthews uzzeeveni INTERNATIONAL’ INFORMATION
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 Earnings Per Share Non-GAAP Reconciliation
ADJUSTED EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Three Months Ended December 31, 2019 2018 per share per share Net (loss) income attributable to Matthews $ (10,466) $ (0.34) $ 3,097 $ 0.10 Acquisition costs 1,461 0.06 1,504 0.05 ERP integration co
Slide 15: Adjusted EBITDA Non-GAAP Reconciliation
ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Three Months Ended December 31, 2019 2018 Net (loss) income $ (10,306) $ 2,984 Income tax (benefit) provision (5,397) 605 (Loss) income before income taxes (15,703) 3,589 Net (income) loss attributable to noncontrolling interests (16
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