Matthews International Reports Fourth Quarter and Fiscal Year 2024 Financial Results
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Matthews International Reports Fourth Quarter and Fiscal Year 2024 Financial Results
PITTSBURGH, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) has released its financial results for the fourth quarter and fiscal year ending September 30, 2024. Below is a detailed summary of the financial performance and key highlights.
Financial Metrics Summary
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Y-o-Y Change |
|---|---|---|---|---|---|
| Consolidated Sales | $446.7 million | $480.2 million | $1.80 billion | $1.88 billion | Decrease of 4.5% |
| Net Income/Loss (GAAP) | $(68.2) million | $17.7 million | $(59.7) million | $39.3 million | - |
| Earnings Per Share (GAAP) | $(2.21) | $0.56 | $(1.93) | $1.26 | - |
| Adjusted EPS (Non-GAAP) | $0.55 | $0.96 | $2.17 | $2.88 | - |
| Adjusted EBITDA | $58.1 million | $61.9 million | $205.2 million | $225.8 million | Decrease |
Interpretation : Matthews International Corporation reported a year-over-year decrease in consolidated sales and adjusted EBITDA for both the quarter and fiscal year, primarily affected by reduced performance in the Industrial Technologies segment alongside consistent challenges in its energy business. The decrease in profitability, on a GAAP basis, was notably impacted by asset write-downs and charges related to the company's cost reduction initiatives.
Segment Revenue Performance
| Segment | Q4 2024 Performance |
|---|---|
| Memorialization | Higher adjusted EBITDA despite lower unit volumes due to cost control and improved pricing. |
| SGK Brand Solutions | Continued sales growth, marked by margin improvements and recovery post-pandemic. |
| Industrial Technologies | Decline due to customer delays and a soft warehouse automation market, with recent improved order rates suggesting potential recovery. |
Interpretation : The Memorialization segment's performance underscores effective cost management and pricing strategies. SGK Brand Solutions demonstrated strong sales momentum, while the Industrial Technologies segment is poised for recovery contingent on upcoming market conditions and order fulfillment.
Key Operational Developments
- Outstanding debt reduction by $53.8 million.
- Ongoing cost reduction actions, including non-cash goodwill impairment charges.
- Fiscal 2025 adjusted EBITDA guidance set between $205 million and $215 million.
- Corporate and non-operating costs reduced by approximately 5% compared to last year.
Executive Commentary
Joseph C. Bartolacci, President and CEO, highlighted the solid performance of core businesses amidst challenges in the energy sector, ongoing cost control driving improved margins, and anticipated recovery and growth initiatives, especially in the Industrial Technologies segment.
Forward Guidance
The company remains cautious but optimistic, with projections indicating stable performance in the Memorialization and SGK Brand Solutions segments and potential recovery in Industrial Technologies, driven by recent order rate improvements and product launches.
Stock Price Movement
Following the earnings release, Matthews International Corporation stock saw a positive change of approximately 5.48%.
In summary, Matthews International continues to navigate segment-specific challenges while focusing on strategic initiatives to enhance overall company resilience and profitability in the upcoming fiscal year.
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