Matthews International Corporation (MATW) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in sales to $401.8 million from $450.0 million in the same quarter the previous year. The decrease is attributed to lower sales in the Industrial Technologies and Memorialization segments.
Memorialization segment sales were $190.5 million, down from $208.1 million, reflecting lower unit sales of caskets, granite memorial products, and cremation equipment. Industrial Technologies segment sales decreased to $80.5 million from $111.4 million, due to reduced sales of energy storage solutions and warehouse automation solutions.
SGK Brand Solutions segment sales were $130.8 million, slightly up from $130.5 million, with higher sales of cylinder products in Europe and improved price realization offsetting lower retail-based sales.
Gross profit for the quarter was $125.7 million, compared to $132.4 million in the previous year, with a gross profit margin of 31.3% versus 29.4% last year. The decrease in gross profit was due to lower sales and higher labor costs.
Selling and administrative expenses were $111.4 million, slightly down from $113.1 million, with an increase in compensation costs offset by cost-reduction initiatives.
The company reported a net loss of $3.5 million for the quarter, compared to a net loss of $2.3 million in the previous year. The increase in net loss was due to higher interest expenses and lower gross profit.
Adjusted EBITDA was $40.0 million, down from $45.5 million in the previous year, with declines in the Industrial Technologies segment being the primary driver.
Interest expense increased to $15.7 million from $11.6 million, reflecting higher average interest rates.
The company disclosed ongoing legal proceedings with Tesla $TSLA, Inc., including an arbitration ruling affirming Matthews' rights to sell its dry battery electrode solutions to other customers.
Matthews announced a definitive agreement to sell its SGK Brand Solutions business in exchange for cash, preferred equity, and a 40% interest in a new entity formed with Southern Graphics, Inc.
The company also reported entering into an agreement to acquire a Memorialization business for $57 million, expected to close mid-2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Matthews International Corporation quarterly 10-Q report dated February 7, 2025. To report an error, please email [email protected].