NEWS RELEASE Matthews International Corporation Corporate Office Two NorthShore Center Pittsburgh, PA 15212-5851 Phone: (412) 442-8200 February 6, 2025 Contact: Steven F. Nicola Chief Financial Officer and Secretary MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FISCAL 2025 FIRST QUARTER Fiscal 2025 First Quarter Financial Highlights: "Furthermore, the Board's comprehensive evaluation of strategic alternatives for our entire portfolio remains ongoing. • Company maintains outlook for fiscal 2025 (subject to the ...

Core Viewpoint - Matthews International reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.26 per share, and down from $0.37 per share a year ago, indicating a significant earnings surprise of -46.15% [1][2]. Financial Performance - The company posted revenues of $401.84 million for the quarter ended December 2024, which was 6.19% below the Zacks Consensus Estimate and down from $449.99 million year-over-year [3]. - Over the last four quarters, Matthews International has surpassed consensus revenue estimates two times [3]. Stock Performance - Matthews International shares have declined approximately 3.4% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [4]. - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $453.76 million, and for the current fiscal year, it is $2 on revenues of $1.79 billion [8]. - The estimate revisions trend for Matthews International is mixed, and changes in these estimates could impact stock performance [7]. Industry Context - The Funeral Services industry, to which Matthews International belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]. - Another company in the same industry, Service Corp. (SCI), is expected to report quarterly earnings of $1.05 per share, reflecting a year-over-year increase of 12.9% [10].

Core Insights - Matthews International Corporation reported financial results for the first quarter of fiscal 2025, indicating that results were generally in line with expectations, maintaining the outlook for the full fiscal year [1][10] - The company experienced solid performance in the Memorialization and SGK Brand Solutions segments, while the Industrial Technologies segment faced challenges due to litigation with Tesla [1][2] Financial Performance - Consolidated sales for Q1 FY2025 were $401.8 million, a decrease of 10.7% from $450.0 million in Q1 FY2024 [13][14] - The net loss attributable to Matthews was $3.5 million, or $0.11 per share, compared to a loss of $2.3 million, or $0.07 per share in the prior year, representing a 50.8% increase in loss [14][19] - Adjusted EBITDA for Q1 FY2025 was $40.0 million, down 12.0% from $45.5 million in the same quarter last year [13][14] Segment Performance - The Memorialization segment reported sales of $190.5 million, down from $208.1 million, with adjusted EBITDA remaining relatively unchanged [20] - The Industrial Technologies segment saw a decline in sales to $80.5 million from $111.4 million, primarily due to reduced project work with Tesla [20][8] - The SGK Brand Solutions segment had a modest increase in sales to $130.8 million, reflecting improving conditions in the U.S. brand market and increased sales in the Asia-Pacific region [20][7] Strategic Developments - The company is on track to complete the SGK transaction by mid-2025, with an upfront consideration of $350 million, including $250 million in cash for debt reduction [3][10] - Cost reduction actions are underway, with expectations to achieve at least $50 million in savings, despite upfront costs affecting current GAAP results [5][10] - The board is conducting a comprehensive evaluation of strategic alternatives for the entire portfolio [4] Litigation and Costs - A recent arbitration ruling affirmed the company's ownership rights to its Dry Battery Electrode technology, allowing it to market and sell these solutions [2] - Litigation costs related to the Tesla matter have negatively impacted GAAP results, alongside increased healthcare costs of approximately $1.6 million compared to the previous year [9][14] Balance Sheet and Cash Flow - Outstanding debt increased by $32.7 million during Q1 FY2025, reflecting seasonal cash outflows and litigation-related expenses [12][21] - The company reported a net cash used in operating activities of $25.0 million for the quarter, compared to $27.3 million in the prior year [23]

Core Viewpoint - The arbitrator's ruling affirms Matthews International Corporation's right to sell its proprietary Dry Battery Electrode technology to customers other than Tesla, allowing the company to resume marketing and selling its products in the electric vehicle market [2][4]. Company Overview - Matthews International Corporation is a global provider of industrial technologies, memorialization products, and brand solutions, with approximately 12,000 employees across more than 30 countries [6]. Technology and Innovation - The company has a long-standing background in manufacturing advanced Dry Battery Electrode technology and was awarded U.S. Patent No. 12,136,727 B2 for systems related to manufacturing dry electrodes on November 5, 2024, which is expected to lead to further innovations in the DBE industry [3][4]. Market Position - The ruling allows Matthews to capitalize on the growing demand for battery solutions in the electric vehicle market, where manufacturers are seeking innovative technologies [2][3].

Core Viewpoint - Matthews International Corporation emphasizes the importance of shareholder support for its director nominees and highlights the potential risks associated with the opposing nominees from Barington, asserting that their understanding of Matthews' business is inadequate [2][3][5]. Group 1: Shareholder Support and Board Composition - GAMCO Asset Management, a significant shareholder with approximately 4.38% stake, has endorsed Matthews' director nominees, indicating confidence in the current board's ability to create long-term shareholder value [4]. - Matthews' board nominees, including Terry L. Dunlap, Alvaro Garcia-Tunon, and J. Michael Nauman, are presented as having the necessary experience and skills to guide the company's strategic direction effectively [17][18]. Group 2: Critique of Barington's Nominees - Barington's nominees are criticized for lacking relevant experience and understanding of Matthews' business, with specific examples highlighting their past failures and lack of preparedness during interactions with Matthews [12][13][14][15][16]. - The letter argues that Barington's simplistic view of Matthews' business could lead to detrimental decisions that would harm shareholder value [11]. Group 3: Business Overview and Strategy - Matthews International has a long history of evolving through innovation and investment, focusing on memorialization products, industrial technologies, and brand solutions [2][20]. - The company has successfully built a leading position in the memorialization segment, generating predictable free cash flow that supports dividends and reinvestment in high-growth areas [8][10].

Highlights Matthews' Longstanding Culture of Deceit Most Recently Evidenced by its Meandering and Misguided 68-page Presentation Believes Matthews' Status Quo is Untenable and the Election of Ana Amicarella, Chan Galbato and James Mitarotonda is Required to Drive Much-Needed Change and Long-Term Value CreationUrges Shareholders to Vote the GOLD Proxy Card "FOR" the Election of ALL of Barington Capital's Nominees NEW YORK, Jan. 30, 2025 /PRNewswire/ -- Barington Capital Group, L.P. ("Barington Capital"), a f ...

Egan-Jones Recommends Shareholders Vote "WITHHOLD" on Matthews' Nominees Terry L. Dunlap, Alvaro Garcia-Tunon and J. Michael Nauman and "AGAINST" All Matthews' Other Proposals Barington Capital Urges Shareholders to Follow Egan-Jones' Recommendation and Vote the GOLD Proxy Card "FOR" the Election of ALL of its Nominees NEW YORK, Jan. 28, 2025 /PRNewswire/ -- Barington Capital Group, L.P. ("Barington Capital"), a fundamental, value-oriented activist investor that, together with the other participants in its ...

Core Points - Matthews International Corporation is urging shareholders to vote "FOR" its director nominees and "WITHHOLD" on Barington's nominees in the upcoming Annual Meeting scheduled for February 20, 2025 [1][7] - The company has filed an investor presentation with the SEC highlighting its strategic positioning for long-term success [2] Strategic Positioning - The Board and management are focused on portfolio optimization, as demonstrated by the ongoing strategic alternatives process and the planned sale of SGK Brand Solutions [3] - Matthews has diversified its portfolio into new markets and established a global platform for growth under CEO Joe Bartolacci's leadership, particularly in the memorialization business [5] Financial Performance - Since 2014, Matthews has returned approximately $490 million to shareholders through dividends and share repurchases while also investing in capital expenditures and inorganic growth [5] - A cost reduction program is underway, targeting annual consolidated savings of up to $50 million [5] Board Composition - The Board has welcomed three new independent directors since 2020 and nominated a fourth for the 2025 annual meeting, emphasizing a commitment to diversity and experience [5] - The Board collectively owns about 3.3% of the company's shares, indicating alignment with shareholder interests [5] SGK Transaction - The SGK transaction is expected to provide substantial upfront consideration of $350 million at closing, with future synergy-driven value creation [5] Critique of Barington - Barington has not presented new ideas and is perceived as having a short-term focus that could harm shareholder value [6] - The nominees from Barington lack relevant skills and understanding of Matthews' business [6][11]

Details Prolonged Period of Shareholder Value Destruction Caused by Poor Performance, Poor Operating Execution and Poor Capital Allocation Believes CEO and Incumbent Board Are Ineffective, Over Tenured and Entrenched and Cannot be Trusted to Oversee Much-Needed Change Following Years of Empty PromisesBarington's Nominees Bring the Leadership Experience and Sector Expertise the Board Urgently Needs to Unlock Matthews' Embedded Value Urges Shareholders to Vote the GOLD Proxy Card "FOR" the Election of ALL of ...

SGK Sale Illustrates Your Board’s Prudent Stewardship and Why James Mitarotonda and Barington’s Other Nominees Won’t Safeguard Your InvestmentPITTSBURGH, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) (“Matthews” or the “Company”) today sent a letter to its shareholders emphasizing the Company’s commitment to long-term value creation. Key highlights from the letter include: Your Board has taken decisive actions to enhance long-term shareholder value – particularly th ...