Matthews International Corporation · NASDAQ:MATW
Matthews International — Q4 2024 Earnings Presentation
17 slides from Matthews International's earnings presentation, Nov 22, 2024
Slide 1: Fourth Quarter Fiscal 2024 Earnings Teleconference
Fourth Quarter Fiscal 2024 Earnings Teleconference November 22, 2024 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. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beli
Slide 3: Business Overview
Matthews lanes OVERVIEW INTERNATIONAL
Slide 4: Business Update
BUSINESS UPDATE • Benefits from recent acquisitions and improved price realization MEMORIALIZATION • Return to normalized death rates; current sales and adjusted EBITDA run-rates remain well ahead of pre-COVID levels SGK BRAND • Improved pricing, cost control, and growth in the Asia-Pacific region •
Slide 5: Outlook for Fiscal 2025
OUTLOOK FOR FISCAL 2025 Key Considerations • Projected adjusted EBITDA to be in the range of $205 million to $215 million • Solid performance expected for the Memorialization and SGK Brand Solutions segments • Uncertainty of project timing in the Industrial Technologies segment, specifically related
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q4 & YTD FY2024 Summary
Q4 & YTD FY2024 SUMMARY ($ in millions except per-share amounts) 4th Quarter ("Q4") Highlights Q4 Q4 2023 Q4 2024 Sales Sales $ 480.2 $ 446.7 • SGK Brand Solutions segment current quarter sales higher Gross Margin 31.4 % 26.3 % than a year ago Diluted Earnings (Loss) Per Share $ 0.56 $ (2.21) • Lowe
Slide 8: Memorialization
MEMORIALIZATION ($ in millions) Q4 Sales YTD Sales Sales $843.0 $829.7 • Benefits from recent acquisitions, improved $204.9 $196.8 price realization, and higher mausoleum sales • U.S. death rates have normalized from higher pandemic levels, impacting unit volumes Q4 FY2023 Q4 FY2024 FY2023 FY2024 Ad
Slide 9: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q4 Sales YTD Sales Sales $134.7 $135.9 $532.1 $532.9 • Q4 sales growth, primarily reflecting higher sales in the private-label and merchandising businesses, and improved pricing to help mitigate inflationary cost increases Adjusted EBITDA • Higher YTD adjusted EBI
Slide 10: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) $140.6 Q4 Sales YTD Sales Sales $505.8 $113.9 • Energy storage sales impacted by customer $433.2 delays • Warehouse automation sales unfavorably impacted by market conditions Adjusted EBITDA • Primarily impacted by lower engineered Q4 FY2023 Q4 FY2024 FY2023 F
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $790.2 $776.5 $79.5 $79.3 $748.1 $735.7 09/30/23 09/30/24 YTD FY 2023 YTD FY 2024 Note: Dark gray shades on the left represent Total Debt. Cash • Debt decreased by $53.8 million during the quarter • Current ye
Slide 12: Supplemental Information
Matthews uma 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 NON-GAAP RECONCILIATION (Unaudited) (In thousands) Three Months Ended September 30, Year Ended September 30, 2024 2023 2024 2023 Net (loss) income $ (68,161) $ 17,693 $ (59,660) $ 39,136 Income tax provision (benefit) 680 (2,362) (9,997) 1,774 (Loss) income before income taxes $ (67,
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 September 30, Year Ended September 30, 2024 2023 2024 2023 per share per share per share per share Net income (loss) attributable to Matthews $ (68,161) $ (2.21) $
Slide 16: Constant Currency Sales and Adjusted EBITDA
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Industrial SGK Brand Corporate and Non- Memorialization Technologies Solutions Operating Consolidated Reported sales for the quarter ended September 30, 2024 $ 196,840 $ 113,915 $ 135,940 $ — $ 446,695 Cha
Slide 17: Net Debt
NET DEBT NON-GAAP RECONCILIATION (Unaudited) (In thousands) September 30, 2024 September 30, 2023 Long-term debt, current maturities $ 6,853 $ 3,696 Long-term debt 769,614 786,484 Total debt 776,467 790,180 Less: Cash and cash equivalents (40,816) (42,101) Net Debt $ 735,651 $ 748,079 Adjusted EBITD
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