Matthews International Corporation · NASDAQ:MATW
Matthews International — Q1 2023 Earnings Presentation
17 slides from Matthews International's earnings presentation, Jan 27, 2023
Slide 1: First Quarter Fiscal 2023 Earnings Teleconference
First Quarter Fiscal 2023 Earnings Teleconference January 27, 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 and significant order rates in energy storage solutions business TECHNOLOGIES • Improved pricing and higher granite memorial products and U.S. cremation equipment sales MEMORIALIZATION • U.S. death rates have substantially normalized from higher pan
Slide 5: Outlook for Fiscal 2023
OUTLOOK FOR FISCAL 2023 Key Drivers • Company reaffirms fiscal 2023 adjusted EBITDA in the range of $215 million to $235 million • Growth in Industrial Technologies; strong backlogs in many of our businesses • Orders during the fiscal 2023 first quarter exceeded $200 million for the energy storage s
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q1 2023 Summary
Q1 2023 SUMMARY ($ in millions except per-share amounts) Highlights Sales • Sales increased $10.6 million from last year; $27.6 million on a constant currency basis • Q1 sales increase reflects impact of Olbrich GmbH and Q1 Q1 2022 Q1 2023 R+S Automotive GmbH acquisitions Sales $ 438.6 $ 449.2 Dilut
Slide 8: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q1 Sales Sales $109.1 • 47% higher than a year ago. • Olbrich GmbH and R+S Automotive GmbH $74.3 acquisitions were a significant contributor to the segment’s sales increase • Growth for our energy storage solutions and product identification businesses • Conti
Slide 9: Memorialization
MEMORIALIZATION ($ in millions) Q1 Sales Sales $210.7 $206.5 • Improved price realization • Higher granite memorial products and U.S. cremation equipment sales • U.S. death rates have substantially normalized from higher pandemic levels, impacting unit volumes for caskets and bronze memorials FY2022
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q1 Sales Sales $153.5 • Changes in foreign currency exchange $133.6 rates had an unfavorable impact of $10.7 million • Continued challenges in Europe also negatively impacted sales and profitability Adjusted EBITDA FY2022 FY2023 • Impacted by lower sales and highe
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $837.1 $798.6 $794.4 $729.6 $(27.2) 09/30/22 12/31/22 Note: Dark gray shades on the left represent Total Debt. $(36.2) YTD FY2022 YTD FY2023 Cash • Operating cash flow for both periods reflected final payouts
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) 2022 2021 Net income (loss) $ 3,647 $ (19,810) Income tax provision (benefit) 1,312 (6,628) Income (loss) before income taxes 4,959 (26,438) Net loss attributable to noncontrolling interests 56 7 Inter
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, 2022 2021 per share per share Net income (loss) attributable to Matthews $ 3,703 $ 0.12 $ (19,803) $ (0.62) Acquisition related items (1) 1,062 0.03 —
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 December 31, 2022 $ 206,502 $ 109,143 $ 133,595 $ — $ 449,240 Chan
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, 2022 September 30, 2022 Long-term debt, current maturities $ 2,977 $ 3,277 Long-term debt 834,127 795,291 Total debt 837,104 798,568 Less: Cash and cash equivalents (42,718) (69,016) Net Debt
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