Matthews International Corporation · NASDAQ:MATW
Matthews International — Q4 2023 Earnings Presentation
17 slides from Matthews International's earnings presentation, Nov 17, 2023
Slide 1: Fourth Quarter Fiscal 2023 Earnings Teleconference
Fourth Quarter Fiscal 2023 Earnings Teleconference November 17, 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. 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 INDUSTRIAL • 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 • Outperforming pre-pandemic levels SGK BRAND
Slide 5: Outlook for Fiscal 2024
OUTLOOK FOR FISCAL 2024 Key Considerations • Growth in consolidated sales and adjusted EBITDA • Increasing level of larger projects, particularly in our energy storage solutions • Global economic conditions remain uncertain, including impact of currency rate changes © 2023 Matthews International Cor
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q4 & YTD FY2023 Summary
Q4 & YTD FY2023 SUMMARY ($ in millions except per-share amounts) 4th Quarter ("Q4") Highlights Q4 Q4 2022 Q4 2023 Sales Sales $ 457.1 $ 480.2 • Consolidated sales up $23.1 million Gross Margin 31.8 % 31.4 % • Industrial Technologies sales 34% higher Diluted (Loss) Earnings Per Share $ (2.63) $ 0.56
Slide 8: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q4 Sales $140.6 YTD Sales Sales $505.8 • Q4 increased 34%; YTD increased over 50% $104.6 • Olbrich GmbH and R+S Automotive GmbH $335.5 acquisitions were a significant contributor • Ongoing interest in and discussions on our energy storage solutions business Ad
Slide 9: Memorialization
MEMORIALIZATION ($ in millions) Q4 Sales YTD Sales Sales $840.1 $843.0 • Improved price realization $206.3 $204.9 • U.S. death rates have normalized from higher pandemic levels, impacting unit volumes for caskets and memorials Adjusted EBITDA • Improved pricing and benefits from Q4 FY2022 Q4 FY2023
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q4 Sales YTD Sales Sales • Unfavorable currency impacts of $16.1 $146.3 $586.8 million YTD $134.7 $532.1 • European businesses continued to be challenged by market conditions Adjusted EBITDA • Favorable impacts of cost reduction initiatives and price realization Q
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $126.9 $798.6 $790.2 $729.6 $748.1 $79.5 09/30/22 09/30/23 YTD FY 2022 YTD FY 2023 Note: Dark gray shades on the left represent Total Debt. Cash • Fiscal 2023 operating cash flow reflects increased working cap
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, 2023 2022 2023 2022 Net income (loss) $ 17,693 $ (80,957) $ 39,136 $ (99,828) Income tax (benefit) provision (2,362) (2,080) 1,774 (4,391) Income (loss) before income taxes $
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, 2023 2022 2023 2022 per share per share per share per share Net income (loss) attributable to Matthews $ 17,723 $ 0.56 $ (80,
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, 2023 $ 204,878 $ 140,561 $ 134,729 $ — $ 480,168 Cha
Slide 17: Net Debt
NET DEBT NON-GAAP RECONCILIATION (Unaudited) (In thousands) September 30, 2023 September 30, 2022 Long-term debt, current maturities $ 3,696 $ 3,277 Long-term debt 786,484 795,291 Total debt 790,180 798,568 Less: Cash and cash equivalents (42,101) (69,016) Net Debt $ 748,079 $ 729,552 Adjusted EBITD
Matthews International — Q4 2023 Earnings Presentation on 6ix