Matthews International Corporation · NASDAQ:MATW

Matthews International — Q1 2019 Earnings Presentation

18 slides from Matthews International's earnings presentation, Feb 1, 2019

  1. Slide 1: First Quarter Fiscal 2019 Earnings Teleconference

    First Quarter Fiscal 2019 Earnings Teleconference February 1, 2019 Joseph C. Bartolacci President and Chief Executive Officer Steven F. Nicola Chief Financial Officer ©2019 Matthews International Corporation. All Rights Reserved.

  2. 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

  3. Slide 3: Financial Overview

    Financial Overview ©2019 Matthews International Corporation. All Rights Reserved. 3

  4. Slide 4: Q1 FY2019 Summary

    Q1 FY2019 Summary  EPS - Diluted Items impacting Q1 GAAP EPS comparability . Prior year included significant net favorable tax $1.10 adjustment ($0.76) . Loss on sale of a 51% ownership interest in pet cremation business ($0.10) . Higher interest expense ($0.06) $0.10 . Unrealized losses on retirem

  5. Slide 5: Q1 FY2019 Consolidated Results

    Q1 FY2019 Consolidated Results ($ in millions) Sales GAAP Gross Profit and Margin $369.5 $374.2 $131.4 $126.4 35.6 % 33.8% Q1 FY2018 Q1 FY2019 Q1 FY2018 Q1 FY2019 Net Income Adjusted EBITDA* Attributable to Matthews and Margin $35.2 $46.5 $46.5 $3.1 12.6% 12.4% Q1 FY2018 Q1 FY2019 Q1 FY2018 Q1 FY201

  6. Slide 6: Q1 FY19 SGK Brand Solutions Results

    Q1 FY19 SGK Brand Solutions Results ($ in millions) Sales $191.8 $185.3  Sales fluctuations . Fx was $4.7 million unfavorable . Lower sales in U.S. – delays in timing of client projects and significant client transitioned work internally . Q1 FY2018 Q1 FY2019 Higher sales in U.K. and Europe . Frost

  7. Slide 7: Q1 FY19 Memorialization Results

    Q1 FY19 Memorialization Results ($ in millions) Sales  $144.9 $153.9 Sales fluctuations . Higher sales of memorial products, caskets and cremation equipment in the U.S. . Star Granite & Bronze acquisition (Feb 2018)13.1% 14.8% . Fx was $0.6 million unfavorable Q1 FY2018 Q1 FY2019  Adjusted EBITDA

  8. Slide 8: Q1 FY19 Industrial Technologies Results

    Q1 FY19 Industrial Technologies Results ($ in millions) Sales $35.0 $32.8  Sales fluctuations . Higher warehouse automation sales . Compass Engineering acquisition (Nov 2017) 12.7% 11.0% . Partially offset by lower product Q1 FY2018 Q1 FY2019 identification sales . Fx was $0.6 unfavorable Adjusted

  9. Slide 9: Capitalization and Cash Flows

    Capitalization and Cash Flows ($ in millions) Debt Operating Cash Flow $960.6 $983.0 $8.4 $7.6 9/30/2018 12/31/2018 Q1 FY2018 Q1 FY2019  Cash Debt increased by $22.4 million during Q1 FY2019 primarily to fund Frost acquisition and other investments; $41.6 $39.8 Q1 is typically a slower cash flow qu

  10. Slide 10: Business Overview

    Business Overview ©2019 Matthews International Corporation. All Rights Reserved. 10

  11. Slide 11: Business Progress & Market Climate

    Business Progress & Market Climate   Several new account wins; but volume IDL responding well to demand for quick ramp has been slow, especially in U.S. turnaround and high value/design projects SGK Brand   A large U.S.-based client transitioned Undergoing integration of Frost acquisition Soluti

  12. Slide 12: Maintaining Outlook for Fiscal 2019

    Maintaining Outlook for Fiscal 2019* Observations  Timing of several projects impacted first quarter, expect completion in remainder of FY2019  Order rates for warehouse automation (Industrial Technologies) and engineered solutions (SGK Brand Solutions) remain solid  Expect recent new brand accou

  13. Slide 13: Save-the-Date! MATW Investor & Analyst Day

    Save-the-Date! MATW Investor & Analyst Day June 19, 2019 New York City Time and Location to Follow ©2019 Matthews International Corporation. All Rights Reserved. 13

  14. Slide 14: Supplemental Information

    Supplemental Information ©2019 Matthews International Corporation. All Rights Reserved. 14

  15. Slide 15: 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

  16. Slide 16: Adjusted Earnings Per Share Non-GAAP Reconciliation

    Adjusted Earnings Per Share Non-GAAP Reconciliation * See Disclaimer (page 2) for Management’s assessment of supplemental information related to adjusted net income and adjusted EPS. ©2019 Matthews International Corporation. All Rights Reserved. 16

  17. Slide 17: Adjusted EBITDA Non-GAAP Reconciliation

    Adjusted EBITDA Non-GAAP Reconciliation * See Disclaimer (page 2) for Management’s assessment of supplemental information related to adjusted EBITDA and adjusted EBITDA margin. ©2019 Matthews International Corporation. All Rights Reserved. 17

  18. Slide 18: First Quarter Fiscal 2019 Earnings Teleconference

    First Quarter Fiscal 2019 Earnings Teleconference February 1, 2019 ©2019 Matthews International Corporation. All Rights Reserved.

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