Matthews International Corporation · NASDAQ:MATW
Matthews International — Q4 2020 Earnings Presentation
16 slides from Matthews International's earnings presentation, Nov 20, 2020
Slide 1: Fourth Quarter Fiscal 2020 Earnings Teleconference
Fourth Quarter Fiscal 2020 Earnings Teleconference November 20, 2020 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: Overview
Matthews mnlocLe OVERVIEW INTERNATIONAL®
Slide 4: Q4 & YTD FY2020 Summary
Q4 & YTD FY2020 SUMMARY ($ in millions except per-share amounts) GAAP and non-GAAP Comparison Q4 Q4 2019 Q4 2020 • Growth in consolidated sales, adjusted EBITDA and Sales $ 392.4 $ 399.1 adjusted EPS for the fourth quarter compared to same Gross Margin 36.3 % 34.2 % quarter last year Diluted (L)EPS
Slide 5: Memorialization
MEMORIALIZATION ($ in millions) Q4 Sales YTD Sales Sales $177.7 $656.0 $162.6 $636.9 • Q4 sales driven by increased unit casket sales related to COVID-19 deaths, improved price realization, and higher sales of cremation equipment • FY2020 sales driven by higher casket sales due to COVID-19 and crema
Slide 6: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q4 Sales YTD Sales Sales $186.0 $179.6 • Sales decrease resulted from decline in 743.9 European sales, private label brand market, $693.1 lower cylinder sales, and lower merchandising sales much of which related to COVID-19 • Partially offset by higher US Brand an
Slide 7: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q4 Sales YTD Sales Sales • Q4 and YTD sales of warehouse automation 156.5 $149.2 43.8 41.9 decreased due to limited access to job sites due to COVID-19 • Orders for warehouse automation remain strong • YTD Product identification sales consistent with prior yea
Slide 8: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow 940.7 905.4 $180.4 834.5 793.2 $131.1 09/30/19 09/30/20 YTD FY 2019 YTD FY 2020 Note: Dark gray shades on the left represent Total Debt. • Operating cash flow of $180.4 million, representing new annual Cash Co
Slide 9: Overview
Matthews euahtss OVERVIEW INTERNATIONAL®
Slide 10: Business Update
BUSINESS UPDATE • Strong core brand packaging in North America in Q4 SGK BRAND • Retail-related businesses and Europe (e.g. tobacco) slower primarily due to COVID-19 • Higher engineered solutions sales; ongoing energy storage opportunities SOLUTIONS • Additional benefits in cost reduction program ex
Slide 11: Outlook for Fiscal 2021
OUTLOOK FOR FISCAL 2021 • Continued challenges and uncertainty in current COVID-19 economic environment • Strong backlogs; COVID-19 may impact ability to deliver • Continued focus on cost initiatives • Focus on operating cash flow generation • Not providing FY2021 guidance due to uncertainty of COVI
Slide 12: Supplemental Information
Matthews Buia 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 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
Slide 14: Adjusted EBITDA Non-GAAP Reconciliation
ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Three Months Ended September 30, Year Ended September 30, 2020 2019 2020 2019 Net income (loss) $ 7,400 $ (71,491) $ (87,652) $ (38,889) Income tax provision (benefit) 3,987 (3,623) (18,685) 806 Income (loss) before income taxes $ 11
Slide 15: Adjusted Net Income and Earnings Per Share Non-GAAP Reconciliation
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, 2020 2019 2020 2019 per share per share per share per share Net income (loss) attributable to Matthews $ 7,406 $ 0.24 $ (71,1
Slide 16: Net Debt Non-GAAP Reconciliation
NET DEBT NON-GAAP RECONCILIATION (Unaudited) (In thousands) September 30, 2020 September 30, 2019 Long-term debt, current maturities $ 26,824 $ 42,503 Long-term debt 807,710 898,194 Total debt 834,534 940,697 Less: Cash and cash equivalents (41,334) (35,302) Net Debt $ 793,200 $ 905,395 * See Discla
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