Matthews International Corporation · NASDAQ:MATW
Matthews International — Q2 2023 Earnings Presentation
17 slides from Matthews International's earnings presentation, Apr 28, 2023
Slide 1: Second Quarter Fiscal 2023 Earnings Teleconference
Second Quarter Fiscal 2023 Earnings Teleconference April 28, 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 in energy storage solutions business • Increased interest in our energy storage solutions offerings TECHNOLOGIES • New product development progressing • Improved pricing and growth in sales of cemetery memorial products and mausoleums MEMORIALIZATIO
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 $235 million • Growth in Industrial Technologies; strong backlogs in many of our businesses • Memorialization business continues to perform well despite the return to normal death rate
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q2 2023 Summary
Q2 2023 SUMMARY ($ in millions except per-share amounts) 2nd Quarter ("Q2") Highlights Q2 Q2 2022 Q2 2023 Sales Sales $ 445.0 $ 479.6 • Industrial Technologies sales over 60% higher Diluted (L)EPS $ (0.06) $ 0.29 • Memorialization sales growth Non-GAAP Adjusted EPS* $ 0.74 $ 0.65 GAAP EPS Net (Loss)
Slide 8: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q2 Sales YTD Sales $125.5 Sales $234.7 • Q2 increased over 60%; YTD increased $78.2 $152.5 over 50% • Olbrich GmbH and R+S Automotive GmbH acquisitions were a significant contributor to the segment’s sales increase • Continued strength in orders for the energy
Slide 9: Memorialization
MEMORIALIZATION ($ in millions) Q2 Sales YTD Sales Sales $220.0 $222.9 $430.7 $429.4 • Improved price realization • Q2 higher cemetery memorial products and mausoleums and the acquisition of Eagle Granite Company • U.S. death rates have substantially normalized from higher pandemic levels, Q2 FY2022
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q2 Sales YTD Sales $146.8 $300.4 Sales $131.2 $264.8 • Unfavorable currency impacts of $5.9 million for Q2 and $16.7 million YTD • European businesses continued to be challenged by unfavorable market conditions resulting from the Russia/ Ukraine war Q2 FY2022 Q2 F
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $798.6 $778.0 $729.6 $736.1 $72.7 $44.7 09/30/22 03/31/23 Note: Dark gray shades on the left represent Total Debt. YTD FY2022 YTD FY2023 Cash • Operating cash flow for both periods reflected final payouts for
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 March 31, Six Months Ended March 31, NON-GAAP RECONCILIATION (Unaudited) (In thousands) 2023 2022 2023 2022 Net income (loss) $ 9,125 $ (1,936) $ 12,772 $ (21,746) Income tax provision (benefit) 3,382 3,277 4,694 (3,351) Income (loss) before income taxes $ 12,507 $
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 Six Months Ended March 31, March 31, 2023 2022 2023 2022 per share per share per share per share Net income (loss) attributable to Matthews $ 9,127 $ 0.29 $ (1,905)
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 March 31, 2023 $ 222,889 $ 125,514 $ 131,177 $ — $ 479,580 Changes
Slide 17: Net Debt and Net Debt Leverage Ratio
NET DEBT AND NET DEBT LEVERAGE RATIO NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) March 31, 2023 September 30, 2022 Long-term debt, current maturities $ 2,825 $ 3,277 Long-term debt 775,202 795,291 Total debt 778,027 798,568 Less: Cash and cash equivalents (41,916) (69,016) Net Debt $
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