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Company Overview - Matthews Memorialization, a division of Matthews International Corporation, has acquired The Dodge Company for $57 million, enhancing its product offerings in the death care industry [1] - The Dodge Company is recognized as the largest supplier of embalming chemicals and cosmetics in North America, providing a wide range of products for funeral service providers since its founding in 1893 [5] Strategic Implications - The acquisition aligns with Matthews' strategy to offer a comprehensive range of products and solutions to funeral homes and cemeteries, thereby strengthening its market position [1][2] - Dodge's established customer relationships and reputation for quality in embalming solutions are expected to complement Matthews' existing offerings and enhance customer service continuity [2] Operational Continuity - Post-acquisition, Dodge customers will experience no changes in their purchasing processes, maintaining their relationships with existing sales and customer service representatives [2][3] - Tim Collison, the CEO of Dodge, will continue to lead the company as part of Matthews, ensuring stability and continuity in operations [2] Corporate Structure - Matthews International operates through two main segments: Industrial Technologies and Memorialization, focusing on operational efficiency and long-term growth through innovation and strategic expansion [4] - The Memorialization segment is a leading provider of memorialization products, including caskets and cremation equipment, primarily serving cemetery and funeral home customers [4]

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PITTSBURGH, May 01, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) (“Matthews” or the “Company”) today announced the successful closing of the sale of its SGK Brand Solutions business (“SGK”) to a newly formed entity created by affiliates of SGS & Co (“SGS”). The transaction combines SGK and SGS into a new company that is expected to be a leading global provider of brand solutions. Under the terms of the transaction, Matthews received upfront consideration of $350 million, co ...

Matthews International (MATW) Q2 2025 Earnings Call May 01, 2025 09:00 AM ET Company Participants Steven Nicola - CFO & TreasurerJoseph C. Bartolacci - President and CEODaniel Moore - Director of ResearchColin Rusch - Managing Director - Head of Sustainable Growth & Resource Optimization Research Conference Call Participants Justin Bergner - Portfolio Manager, Research Analyst Operator Greetings, and welcome to the Matthews International Second Quarter Fiscal twenty twenty five Financial Results. At this ti ...

Matthews International (MATW) Q2 2025 Earnings Call May 01, 2025 09:00 AM ET Company Participants Steven Nicola - CFO & TreasurerJoseph C. Bartolacci - President and CEODaniel Moore - Director of ResearchColin Rusch - Managing Director - Head of Sustainable Growth & Resource Optimization Research Conference Call Participants Justin Bergner - Portfolio Manager, Research Analyst Operator Greetings, and welcome to the Matthews International Second Quarter Fiscal twenty twenty five Financial Results. At this ti ...

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]

Core Viewpoint - Matthews International reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.69 per share a year ago [1][2] Financial Performance - The company experienced an earnings surprise of -5.56% for the quarter, and previously, it had a significant earnings surprise of -46.15% when it reported $0.14 per share against an expectation of $0.26 per share [2] - Revenues for the quarter were $427.63 million, missing the Zacks Consensus Estimate by 1.79%, and down from $471.22 million year-over-year [3] - Over the last four quarters, Matthews International has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2][3] Stock Performance - Matthews International shares have declined approximately 22.4% since the beginning of the year, compared to a decline of -5.5% for the S&P 500 [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $427 million, and for the current fiscal year, it is $1.73 on revenues of $1.74 billion [8] - The outlook for the Funeral Services industry, where Matthews International operates, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for performance [9]

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 " ...