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Matthews International Corporation (MATW-1.12%) 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, 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 earnings@qz.com.