Matthews International Corporation · NASDAQ:MATW
Matthews International — Q3 2024 Earnings Presentation
17 slides from Matthews International's earnings presentation, Aug 2, 2024
Slide 1: Third Quarter Fiscal 2024 Earnings Review
Third Quarter Fiscal 2024 Earnings Review August 2, 2024 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 • Benefits from recent acquisitions and improved price realization MEMORIALIZATION • Return to normalized death rates; current sales and adjusted EBITDA run-rates remain well ahead of pre-COVID levels SGK BRAND • Improved pricing and growth in the private label market and European pa
Slide 5: Outlook for Fiscal 2024
OUTLOOK FOR FISCAL 2024 Key Drivers • Projected adjusted EBITDA to be in the range of $205 million to $210 million • Initiating cost reduction programs in fiscal 2024 fourth quarter • Projected further reductions in outstanding debt by the end of the fiscal year © 2024 Matthews International Corpora
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q3 2024 Summary
Q3 2024 SUMMARY 3rd Quarter ("Q3") Highlights ($ in millions except per-share amounts) Sales Q3 Q3 2023 Q3 2024 • SGK Brand Solutions segment current quarter sales higher than a year ago Sales $ 471.9 $ 427.8 • Lower sales for the Industrial Technologies segment Diluted EPS $ 0.28 $ 0.06 GAAP EPS No
Slide 8: Memorialization
MEMORIALIZATION ($ in millions) Q3 Sales YTD Sales $638.1 $632.9 $208.7 $202.7 Sales • Benefits from recent acquisitions, improved price realization, and higher mausoleum sales • U.S. death rates have normalized from higher pandemic levels, impacting unit Q3 FY2023 Q3 FY2024 FY2023 FY2024 volumes Q3
Slide 9: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q3 Sales YTD Sales $132.6 $133.4 Sales • Q3 sales growth, primarily reflecting higher $397.4 $396.9 sales in the European packaging and private-label businesses, and improved pricing to help mitigate inflationary cost increases • Unfavorable currency impacts of $2
Slide 10: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q3 Sales YTD Sales $365.2 $130.5 $319.2 Sales $91.7 • Energy storage sales impacted by customer delays • Warehouse automation sales unfavorably impacted by market conditions Adjusted EBITDA Q3 FY2023 Q3 FY2024 FY2023 FY2024 • Primarily impacted by lower engine
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $830.2 $790.2 $787.5 $748.1 $76.9 $43.3 09/30/23 06/30/24 Note: Dark gray shades on the left represent Total Debt. YTD FY2023 YTD FY2024 Cash • Debt decreased by $12.6 million during the quarter • Current year
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) 2024 2023 2024 2023 Net income $ 1,777 $ 8,671 $ 8,501 $ 21,443 Income tax (benefit) provision (8,829) (558) (10,677) 4,136 (Loss) income before income taxes $ (7,052) $ 8,113 $
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, 2024 2023 2024 2023 per share per share per share per share Net income attributable to Matthews $ 1,777 $ 0.06 $ 8,738 $ 0.28 $
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, 2024 $ 202,664 $ 91,731 $ 133,438 $ — $ 427,833 Changes i
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, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Long-term debt, current maturities $ 5,476 $ 5,419 $ 4,948 $ 3,696 Long-term debt 824,745 837,357 857,423 786,484 Total debt 830,221 842,7
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