Matthews International Corporation · NASDAQ:MATW
Matthews International — Q2 2024 Earnings Presentation
17 slides from Matthews International's earnings presentation, May 3, 2024
Slide 1: Second Quarter Fiscal 2024 Earnings Review
Second Quarter Fiscal 2024 Earnings Review May 3, 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 • Benefited 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 • Warehouse automation impacted by market conditions INDUSTRIAL • Progress on new
Slide 5: Outlook for Fiscal 2024
OUTLOOK FOR FISCAL 2024 Key Drivers • Projected adjusted EBITDA to approximate $220 million • Customer interest in the energy storage solutions business remains strong • Further reductions in working capital expected in latter half of fiscal 2024 • Projected further reductions in outstanding debt an
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q2 2024 Summary
Q2 2024 SUMMARY 2nd Quarter ("Q2") Highlights ($ in millions except per-share amounts) Sales Q2 Q2 2023 Q2 2024 • SGK Brand Solutions segment current quarter sales higher than a year ago Sales $ 479.6 $ 471.2 • Energy storage sales also higher than last year Diluted EPS $ 0.29 $ 0.29 GAAP EPS Non-GA
Slide 8: Memorialization
MEMORIALIZATION ($ in millions) Q2 Sales YTD Sales $222.9 $222.2 $429.4 $430.2 Sales • Benefits from recent acquisitions and improved price realization • U.S. death rates have normalized from higher pandemic levels, impacting unit volumes for caskets and memorials Q2 FY2023 Q2 FY2024 FY2023 FY2024 A
Slide 9: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q2 Sales YTD Sales $125.5 Sales $116.1 $234.7 $227.5 • Continued growth of energy business, offset by lower warehouse automation sales • YTD sales growth for product identification and surfaces businesses Q2 FY2023 Q2 FY2024 FY2023 FY2024 Adjusted EBITDA • Low
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q2 Sales YTD Sales $131.2 $132.9 $264.8 $263.5 Sales • Q2 sales growth, primarily reflecting higher sales in the U.S. brand market and European packaging and private-label businesses • Unfavorable currency impacts of $1.3 million for Q2 and $0.3 million YTD Q2 FY2
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $842.8 $44.7 $790.2 $797.3 $748.1 $29.8 09/30/23 03/31/24 Note: Dark gray shades on the left represent Total Debt. YTD FY2023 YTD FY2024 Cash • Operating cash flow for prior period 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) 2024 2023 2024 2023 Net income $ 9,027 $ 9,125 $ 6,724 $ 12,772 Income tax (benefit) provision (1,122) 3,382 (1,848) 4,694 Income before income taxes $ 7,905 $ 12,507 $ 4,876 $
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, 2024 2023 2024 2023 per share per share per share per share Net income attributable to Matthews $ 9,027 $ 0.29 $ 9,127 $ 0.29 $
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, 2024 $ 222,156 $ 116,136 $ 132,931 $ — $ 471,223 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, 2024 December 31, 2023 September 30, 2023 Long-term debt, current maturities $ 5,419 $ 4,948 $ 3,696 Long-term debt 837,357 857,423 786,484 Total debt 842,776 862,371 790,180 Less: Cash and cash
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