| Monday | ||||
Matthews International… Matthews International announced the sale, on June 26, 2020, of its noncontrolling ownership interest in a pet cremation services business. The Company sold its ownership interest for a sales price of $57.2M, consisting of $42.2M cash and $15.0 million preferred stock. Matthews International intends to apply the cash proceeds from the sale to debt repayment. | ||||
| Over a week ago | ||||
Conference call with… Conference call with management to be held on June 3 hosted by B. Riley FBR. | ||||
| Over a month ago | ||||
Conference call with… Conference call with management to be held on June 3 hosted by B. Riley FBR. | ||||
B. Riley FBR analyst Liam… B. Riley FBR analyst Liam Burke lowered the firm's price target on Matthews to $50 from $65 and keeps a Buy rating on the shares. The analyst cut Q2 and 2020 estimates for Matthews to reflect lower revenue and earnings of the company's businesses that have seen weakness due to the coronavirus-related economic downturn. However, the company's new credit facility reduces financial risk during a period of economic uncertainty, Burke tells investors in a research note. | ||||
| Over a quarter ago | ||||
Matthews International… Matthews International announced that, on March 27, 2020, the Company renewed its domestic revolving credit facility and term loan. The Company also announced the renewal, on March 27, 2020, of its accounts receivable securitization facility. The new revolving credit facility, which provides for borrowings up to $750 million, has a five-year term and is scheduled to mature in March 2025. In addition, the new term loan represents the remaining $35 million balance on the existing term loan. The timing of the new credit facilities reflects the Company's routine process of renewing its credit facilities approximately one year prior to maturity. The existing revolving credit facility was scheduled to mature in April 2021. The Company reduced the revolving credit facility size from $900 million as the existing facility was put in place before the Company issued $300 million of senior notes in December 2017. The new domestic credit facility generally maintains the interest rate structure of the existing facility. The new facility also provides for a temporary increase in the net leverage ratio covenant in light of current global economic conditions. In addition, the Company's interest coverage ratio was revised to reflect adjusted EBITDA, rather than EBIT previously. The Company also announced today the renewal of its $115 million accounts receivable securitization facility for a period of two years under substantially the same terms and conditions as the existing securitization facility. | ||||
Matthews CEO Joseph… Matthews CEO Joseph Bartolacci stated: "We are expecting to begin realizing a portion of the benefits of our cost reduction program by the end of the current fiscal year. As a result, we are maintaining our earnings outlook for fiscal 2020 of mid-single digit percentage growth in adjusted EBITDA and adjusted earnings per share. However, we remain cautious in this outlook due to typical uncertainty on death rates (particularly the impact of the current flu season), continued challenging market conditions in Europe, and as our projections include several significant projects which are subject to customer timing on completion and delivery. The company's fiscal first quarter is generally the slowest quarter seasonally for earnings and operating cash flow. Consistent with historical trends, we are projecting good operating cash flow for the rest of fiscal 2020, particularly in the second half of the fiscal year. We remain focused on reducing our debt and currently project solid debt reduction during fiscal 2020." | |
Reports Q1 revenue… Reports Q1 revenue $364.9M, consensus $357.52M. | |
Mr. Bartolacci further… Mr. Bartolacci further stated: "As noted earlier, we have already started to receive several of the orders delayed from the fiscal 2019 fourth quarter, which will contribute favorably in fiscal 2020. As a result, we are currently targeting revenue growth in our Industrial Technologies and Memorialization segments. In addition, despite challenging conditions in its European markets, we also expect modest revenue growth for the SGK Brand Solutions segment due to improving U.S. market conditions and the recent energy storage order. Further, we expect our cost structure efforts to modestly contribute to fiscal 2020 results. Our strategic review has also resulted in improvements to the commercial structure within our SGK Brand Solutions segment, including the consolidation of several of the segment's trade names. As a result, the amortization of these intangible assets will significantly increase for the next three years. Please note that, while this will unfavorably impact reported net income on a GAAP basis, this non-cash expense will not impact non-GAAP adjusted earnings per share. Based on these factors, we are currently projecting non-GAAP adjusted earnings per share and adjusted EBITDA growth in the mid-single digit percentage range over fiscal 2019." | |
Reports Q4 revenue… Reports Q4 revenue $392.4M, consensus $385.17M. In discussing the company's results for the quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated: "We closed out fiscal 2019 consistent with the preliminary estimates provided on November 8, 2019. Unfavorable currency rate changes and a brand client account loss early in the fiscal year continued to unfavorably impact year-over-year comparability into the fourth fiscal quarter. In addition, delayed orders in our Industrial Technologies segment and for cremation and incineration equipment, combined with challenging market conditions in Europe for the SGK Brand Solutions segment, impacted the current quarter relative to our expectations." | |
Matthews International… Matthews International Corporation announced that its board declared a dividend of 21c per share on the company's common stock, representing an increase of 5.0% to the company's dividend rate. The dividend is payable December 9 to stockholders of record November 25. |