Matthews International Corporation · NASDAQ:MATW

Matthews International — Q2 2018 Earnings Presentation

23 slides from Matthews International's earnings presentation, Apr 27, 2018

  1. Slide 1: Second Quarter Fiscal 2018 Earnings Teleconference

    ©2018 Matthews International Corporation. All Rights Reserved. Second Quarter Fiscal 2018 Earnings Teleconference April 27, 2018 Joseph C. Bartolacci President and Chief Executive Officer Steven F. Nicola Chief Financial Officer

  2. Slide 2: Disclaimer

    ©2018 Matthews International Corporation. All Rights Reserved. 2 Disclaimer  Any forward-looking statements with respect to Matthews International Corporation (the “Company”) in connection with this presentation are being made pursuant to the safe harbor provisions of the Private Securities Litigat

  3. Slide 3: Financial Overview

    ©2018 Matthews International Corporation. All Rights Reserved. 3 Financial Overview

  4. Slide 4: Q2 FY2018 Highlights

    ©2018 Matthews International Corporation. All Rights Reserved. 4 Q2 FY2018 Highlights $0.46 $0.57 Q2 FY2017 Q2 FY2018 EPS - Diluted $0.84 $0.93 Q2 FY17 Q2 FY18 Adjusted EPS*  Drivers of Q2 EPS growth  Higher sales – all segments  Acquisitions and acquisition synergies  Lower acquisition integrat

  5. Slide 5: Q2 FY2018 Consolidated Results

    ©2018 Matthews International Corporation. All Rights Reserved. 5 Q2 FY2018 Consolidated Results $380.9 $414.1 Q2 FY2017 Q2 FY2018 Sales $138.4 $150.0 Q2 FY2017 Q2 FY2018 GAAP Gross Profit and Margin $26.8 $29.8 Q2 FY2017 Q2 FY2018 GAAP Operating Profit and Margin $58.3 $62.5 Q2 FY2017 Q2 FY2018 Adju

  6. Slide 6: 1H FY2018 Consolidated Results

    ©2018 Matthews International Corporation. All Rights Reserved. 6 1H FY2018 Consolidated Results $729.9 $783.5 1H FY2017 1H FY2018 Sales $265.7 $280.7 1H FY2017 1H FY2018 GAAP Gross Profit and Margin $45.9 $47.7 1H FY2017 1H FY2018 GAAP Operating Profit and Margin $109.0 $109.0 1H FY2017 1H FY2018 Ad

  7. Slide 7: Q2 FY2018 SGK Brand Solutions Results

    ©2018 Matthews International Corporation. All Rights Reserved. 7 Q2 FY2018 SGK Brand Solutions Results $190.1 $207.1 Q2 FY2017 Q2 FY2018 Sales $24.4 $26.0 Q2 FY2017 Q2 FY2018 Adjusted EBITDA* and Margin $4.4 $5.1 Q2 FY2017 Q2 FY2018 GAAP Operating Profit and Margin  Sales growth driven by EMEA, acq

  8. Slide 8: 1H FY2018 SGK Brand Solutions Results

    ©2018 Matthews International Corporation. All Rights Reserved. 8  Sales growth driven by acquisitions, EMEA, APAC, favorable currency; partially offset by Americas  Operating profit includes $7.8 million and $10.1 million of amortization expense in 1H FY2017 and 1H FY2018  Adjusted EBITDA benefit

  9. Slide 9: Q2 FY2018 Memorialization Results

    ©2018 Matthews International Corporation. All Rights Reserved. 9 Q2 FY2018 Memorialization Results $162.1 $168.7 Q2 FY2017 Q2 FY2018 Sales $33.2 $33.3 Q2 FY2017 Q2 FY2018 Adjusted EBITDA* and Margin $22.9 $23.9 Q2 FY2017 Q2 FY2018 GAAP Operating Profit and Margin  Sales benefited from Star Granite

  10. Slide 10: 1H FY2018 Memorialization Results

    ©2018 Matthews International Corporation. All Rights Reserved. 10 1H FY2018 Memorialization Results $307.7 $313.6 1H FY2017 1H FY2018 Sales $58.5 $56.3 1H FY2017 1H FY2018 Adjusted EBITDA* and Margin $37.3 $38.4 1H FY2017 1H FY2018 GAAP Operating Profit* and Margin  Sales benefited from cremation e

  11. Slide 11: Q2 FY2018 Industrial Technologies Results

    ©2018 Matthews International Corporation. All Rights Reserved. 11 Q2 FY2018 Industrial Technologies Results $28.7 $38.3 Q2 FY2017 Q2 FY2018 Sales $0.7 $3.2 Q2 FY2017 Q2 FY2018 Adjusted EBITDA* and Margin ($0.5) $0.8 -1 -0.5 0 0.5 1 1.5 2 Q2 FY2017 Q2 FY2018 GAAP Operating Profit and Margin  Sales b

  12. Slide 12: 1H FY2018 Industrial Technologies Results

    ©2018 Matthews International Corporation. All Rights Reserved. 12 1H FY2018 Industrial Technologies Results $56.3 $71.1 1H FY2017 1H FY2018 Sales $2.7 $5.2 1H FY2017 1H FY2018 Adjusted EBITDA* and Margin $0.04 $1.1 1H FY2017 1H FY2018 GAAP Operating Profit and Margin  Sales benefited from higher or

  13. Slide 13: Capitalization and Cash Flows

    ©2018 Matthews International Corporation. All Rights Reserved. 13 Capitalization and Cash Flows $911.1 $1,046.3 9/30/2017 3/31/2018 Debt $57.5 $64.8 9/30/2017 3/31/2018 Cash $44.3 $56.3 1H FY2017 1H FY2018 Operating Cash Flow  Q2 FY2018 debt increased $20.1 million from Q1 FY2018; financed Star Gra

  14. Slide 14: Business Overview

    ©2018 Matthews International Corporation. All Rights Reserved. 14 Business Overview

  15. Slide 15: Business Highlights & Market Climate

    ©2018 Matthews International Corporation. All Rights Reserved. 15 Business Highlights & Market Climate  Gaining market share – environmental solutions, pet cremation, Star Granite & Bronze, Aurora showing strength  Commodity cost pressures  Very strong organic growth driving backlog, Compass show

  16. Slide 16: Acquisitions Integration

    ©2018 Matthews International Corporation. All Rights Reserved. 16 Acquisitions Integration SGK Brand Solutions  Equator (March 2017)  Ungricht (January 2017)  VCG (January 2017) Memorialization  Star Granite & Bronze (February 2018)  Aurora (August 2015) Industrial Technologies  Compass Engine

  17. Slide 17: Outlook for Fiscal 2018

    ©2018 Matthews International Corporation. All Rights Reserved. 17 Outlook for Fiscal 2018* Growth in non-GAAP EPS by at least 10% over FY 2017 Operating cash flow currently expected to exceed FY2017 record level * As of April 26, 2018

  18. Slide 18: Supplemental Information

    ©2018 Matthews International Corporation. All Rights Reserved. 18 Supplemental Information

  19. Slide 19: Reconciliations of Non-GAAP Financial Measures

    ©2018 Matthews International Corporation. All Rights Reserved. 19 Reconciliations of Non-GAAP Financial Measures The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items

  20. Slide 20: Adjusted Earnings Per Share Non-GAAP Reconciliation

    ©2018 Matthews International Corporation. All Rights Reserved. 20 Adjusted Earnings Per Share Non-GAAP Reconciliation 2018 2017 2018 2017 (1) Net income attributable to Matthews 18,182$ 14,920$ 53,362$ 25,242$ Acquisition-related items 5,476 6,738 8,455 12,845 Pension and postretirement expense (2)

  21. Slide 21: EBITDA and Adjusted EBITDA Non-GAAP Reconciliation

    ©2018 Matthews International Corporation. All Rights Reserved. 21 EBITDA and Adjusted EBITDA Non-GAAP Reconciliation 2018 2017 2018 2017 (1) Net income attributable to Matthews 18,182$ 14,920$ 53,362$ 25,242$ Interest expense 9,262 6,614 17,063 12,762 Income taxes (2) 2,212 5,973 (23,015) 8,462 Depr

  22. Slide 22: Adjusted EBITDA by Segment Non-GAAP Reconciliation

    ©2018 Matthews International Corporation. All Rights Reserved. 22 Adjusted EBITDA by Segment Non-GAAP Reconciliation Note: See Disclaimer (Page 2) for Management’s assessment of supplemental information related to EBITDA and adjusted EBITDA. (1) Information for the first six months ended March 31, 2

  23. Slide 23: Second Quarter Fiscal 2018 Earnings Teleconference

    ©2018 Matthews International Corporation. All Rights Reserved. Second Quarter Fiscal 2018 Earnings Teleconference April 27, 2018

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