Matthews International Corporation · NASDAQ:MATW
Matthews International — Q3 2023 Earnings Presentation
17 slides from Matthews International's earnings presentation, Jul 28, 2023
Slide 1: Third Quarter Fiscal 2023 Earnings Teleconference
Third Quarter Fiscal 2023 Earnings Teleconference July 28, 2023 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: Business Overview
Matthews lanes OVERVIEW INTERNATIONAL
Slide 4: Business Update
BUSINESS UPDATE INDUSTRIAL • Continued high growth in energy storage solutions business • Increased interest in our energy storage solutions offerings TECHNOLOGIES • New product development progressing • Improved pricing and operating efficiencies MEMORIALIZATION • Market share improvements; outperf
Slide 5: Outlook for Fiscal 2023
OUTLOOK FOR FISCAL 2023 Key Drivers • Company reaffirms 2023 guidance with adjusted EBITDA of at least $220 million for the fiscal year (within our guidance range of $215 million to $235 million) • Continued growth in Industrial Technologies; strong interest in our energy solutions • Memorialization
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q3 2023 Summary
Q3 2023 SUMMARY 3rd Quarter ("Q3") Highlights ($ in millions except per-share amounts) Sales Q3 Q3 2022 Q3 2023 • Consolidated sales up $50 million Sales $ 421.7 $ 471.9 • Industrial Technologies sales 66% higher Diluted EPS $ 0.09 $ 0.28 • Memorialization sales growth Non-GAAP Adjusted EPS* $ 0.58
Slide 8: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q3 Sales YTD Sales $130.5 $365.2 Sales • Q3 increased over 66%; YTD increased $230.9 $78.4 over 55% • Olbrich GmbH and R+S Automotive GmbH acquisitions were a significant contributor • Ongoing interest in and discussions on our energy storage solutions busines
Slide 9: Memorialization
MEMORIALIZATION ($ in millions) Q3 Sales YTD Sales $633.9 $638.1 $203.2 $208.7 Sales • Improved price realization • Q3 higher sales of U.S. cremation equipment and the acquisition of Eagle Granite Company • U.S. death rates have normalized from Q3 FY2022 Q3 FY2023 FY2022 FY2023 higher pandemic level
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q3 Sales YTD Sales $140.1 $132.6 Sales $440.5 • Unfavorable currency impacts of $1.2 $397.4 million for Q3 and $17.9 million YTD • European businesses continued to be challenged by unfavorable market conditions • Unfavorable impact due to site closures Q3 FY2022 Q
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $798.6 $775.0 $84.4 $729.6 $735.7 $76.9 09/30/22 06/30/23 Note: Dark gray shades on the left represent Total Debt. YTD FY2022 YTD FY2023 Cash $69.0 • Operating cash flow for both periods reflected final payout
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 June 30, Nine Months Ended June 30, NON-GAAP RECONCILIATION (Unaudited) (In thousands) 2023 2022 2023 2022 Net income (loss) $ 8,671 $ 2,875 $ 21,443 $ (18,871) Income tax (benefit) provision (558) 1,040 4,136 (2,311) Income (loss) before income taxes $ 8,113 $ 3,9
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 Nine Months Ended June 30, June 30, 2023 2022 2023 2022 per share per share per share per share Net income (loss) attributable to Matthews $ 8,738 $ 0.28 $ 2,893 $
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 quarter ended June 30, 2023 $ 208,728 $ 130,533 $ 132,647 $ — $ 471,908 Changes
Slide 17: Net Debt and Net Debt Leverage Ratio
NET DEBT AND NET DEBT LEVERAGE RATIO NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) June 30, 2023 September 30, 2022 Long-term debt, current maturities $ 2,941 $ 3,277 Long-term debt 772,056 795,291 Total debt 774,997 798,568 Less: Cash and cash equivalents (39,295) (69,016) Net Debt $ 7
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