Matthews International (MATW) Q2 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 Greetings, and welcome to the Matthews International Second Quarter Fiscal twenty twenty five Financial Results. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Steven Nicola, Chief Financial Officer. Please go ahead. Speaker1 All right. Good morning. Thank you, P ...

Financial Performance - Consolidated sales for Q2 FY2025 were $427.6 million, a decrease of 9.3% from $471.2 million in Q2 FY2024[9] - Net loss attributable to Matthews for Q2 FY2025 was $8.9 million, compared to a net income of $9.0 million in the prior year, representing a 198.8% decline[11] - Adjusted EBITDA for Q2 FY2025 was $51.4 million, down 9.5% from $56.8 million in Q2 FY2024[11] - Year-to-date consolidated sales for FY2025 were $829.5 million, a decrease of 10.0% from $921.2 million in FY2024[12] - Operating profit for the three months ended March 31, 2025, was $5,948, a significant decline of 72.1% from $21,328 in 2024[19] - Total Adjusted EBITDA for the six months ended March 31, 2025, was $91,437 thousand, down from $102,282 thousand in the prior year, reflecting a decrease of approximately 10.6%[27] - The Adjusted EBITDA for the trailing 12 months is $194,312,000, down from $199,698,000 in the previous quarter[35] - The decline in Adjusted EBITDA indicates potential challenges in operational performance[35] Debt and Cash Flow - Long-term debt increased to $815,823 as of March 31, 2025, from $769,614 as of September 30, 2024[23] - As of March 31, 2025, the total debt stands at $822,180,000, an increase from $809,211,000 on December 31, 2024[35] - Net Debt is reported at $781,934,000, showing a slight increase from $775,698,000 as of December 31, 2024[35] - Cash flows from operating activities for the six months ended March 31, 2025, resulted in a net cash used of $18,681, compared to $29,841 provided in 2024[24] - The company reported a net change in cash and cash equivalents of $(570) for the six months ended March 31, 2025, compared to a positive change of $3,396 in 2024[24] - Cash and cash equivalents decreased to $40,246,000 from $33,513,000 in the previous quarter[35] - The increase in the Net Debt Leverage Ratio suggests a higher reliance on debt financing[35] - The company may need to address cash flow management given the rising debt levels and declining EBITDA[35] Strategic Transactions - The SGK transaction is expected to close in early May 2025, with an upfront consideration of $350 million, including $250 million in cash for debt reduction[4] - The company projects a pro forma consolidated adjusted EBITDA of at least $190 million for FY2025, adjusted for the SGK transaction[8] - The company anticipates synergies exceeding $50 million from the combined entity post-SGK transaction[4] - Costs related to the pending sale of the company's interest in the SGK Brand Solutions business amounted to $10,586 thousand for the three months ended March 31, 2025[33] Shareholder Value and Cost Management - The company is evaluating strategic alternatives to unlock shareholder value, believing its inherent value is above current trading levels[6] - Cost reduction initiatives are on track to generate savings above the initial estimate of $50 million[3] Other Financial Metrics - Gross profit for the six months ended March 31, 2025, was $269,804, down 3.8% from $280,535 in 2024, with a gross margin of 32.5%[19] - Dividends declared per share increased by 4.2% to $0.25 for the three months ended March 31, 2025, compared to $0.24 in 2024[19] - The Adjusted EBITDA margin for the three months ended March 31, 2025, was 12.0%, compared to 12.1% for the same period in 2024[27] - The company incurred interest expenses of $17,010 thousand for the three months ended March 31, 2025, compared to $13,783 thousand in the prior year, representing an increase of approximately 23.5%[27] Legal and Acquisition Costs - Acquisition and divestiture costs for the three months ended March 31, 2025, totaled $12,353 thousand, significantly higher than $1,511 thousand in the same period of 2024[30] - Legal costs associated with an ongoing dispute with Tesla totaled $1,757 thousand for the three months ended March 31, 2025, compared to $2,602 thousand in the same period of 2024[33] - The company experienced a loss of $2,072 thousand related to the divestiture of a business in the Industrial Technologies segment for the three and six months ended March 31, 2025[33]

Matthews International (MATW) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.56%. A quarter ago, it was expected that this global provider of industrial technologies, memorialization products and brand solutions would post earnings of $0.26 per share when it actually produced earn ...

Any forward-looking statements contained in this release 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, beliefs, intentions or strategies of the Company regarding the future, including statements regarding the anticipated timing and benefits of the proposed joint venture transaction, and may be identified by the use of words such as " ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ____________________________________________________________ FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2025 Commission File No. 0-09115 ____________________________________________________________ MATTHEWS INTERNATIONAL CORPORATION or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transi ...

Fiscal 2025 Second Quarter Financial Highlights: Consolidated sales of $427.6 million for the FY 2025 2nd QuarterSignificant increase in customer quotes for energy storage solutionsCost reduction programs remain on trackSGK transaction expected to close in early May 2025; Company provides updated projectionsWebcast: Thursday, May 1, 2025, 9:00 a.m., (201) 689-8471 PITTSBURGH, April 30, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) today announced financial results for its se ...

PITTSBURGH, April 15, 2025 (GLOBE NEWSWIRE) -- Matthews International Incorporation ("Matthews" and/or the "Company") previously reported, in February 2025, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with the proposed sale of its interest in SGK Brand Solutions (“SGK”) to a newly formed entity created by affiliates of SGS & Co (“SGS”), which will combine SGK and SGS. Today, the Company has announced the clearance of all remaining foreign ...

PITTSBURGH, April 11, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (Nasdaq GSM: MATW) today announced plans to release its second quarter fiscal year 2025 earnings results after the market closes on Wednesday, April 30, 2025. The Company will host a conference call and webcast to review the financial and operating results for the period and discuss its outlook. Participating in the call will be Joseph C. Bartolacci, President and CEO and Steven F. Nicola, Chief Financial Officer. A question-a ...

PITTSBURGH, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Matthews International Incorporation ("Matthews" and/or the "Company") announced today the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with its proposed sale of its interest in SGK Brand Solutions (“SGK”) to a newly formed entity created by affiliates of SGS & Co (“SGS”), which will combine SGK and SGS. The parties anticipate a closing next quarter, subject to the receipt of remaining outstanding ...

Core Points - Matthews International Corporation announced the preliminary results of its 2025 Annual Meeting of Shareholders, where shareholders voted to elect all three director nominees to the Board of Directors [1] - The Chair of the Board, Alvaro Garcia-Tunon, expressed appreciation for shareholder feedback and indicated that the vote outcome validates the company's strategy and leadership [2] - The final results of the shareholder vote will be certified by an independent Inspector of Elections and reported in a Form 8-K with the U.S. Securities and Exchange Commission [2] Company Overview - Matthews International Corporation is a global provider of memorialization products, industrial technologies, and brand solutions, with over 11,000 employees across more than 30 countries [4] - The Memorialization segment offers products such as memorials, caskets, and cremation-related equipment primarily to cemetery and funeral home customers [4] - The Industrial Technologies segment focuses on high-tech custom energy storage solutions and warehouse automation technologies [4] - The SGK Brand Solutions segment provides packaging solutions and brand experiences to help companies enhance their marketing and brand value [4]