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Exhibit 99.1
July 22, 2003 Edward J. Boyle
CFO, Secretary & Treasurer
412-442-8244
MATTHEWS INTERNATIONAL ANNOUNCES
THIRD QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND
PITTSBURGH, PA, JULY 22, 2003 - Matthews International Corporation (NASDAQ
NNM:MATW) today announced earnings for the third fiscal quarter ended June
30, 2003. Net income for the quarter was $12,289,000 versus $10,558,000 for
the same quarter last year.
Earnings per share for the third quarter of fiscal 2003 were $0.38 compared
to $0.33 a year ago, an increase of 15.2 percent.
Sales in the quarter were $116,145,000 versus $118,825,000 in the second
quarter of fiscal 2002, a decrease of 2.3 percent. Operating profit for the
third quarter was $21,573,000, an increase of 14.2% over the same quarter a
year ago.
Net income for the nine months ended June 30, 2003 was $33,174,000 versus
$28,012,000 for the nine months ended June 30, 2002. Net income for fiscal
2002 excluded a charge of $3,226,000 (net of taxes), or $0.10 per share, for
impairment of goodwill resulting from the adoption of Statement of Financial
Accounting Standards (SFAS) No. 142 "Goodwill and Other Intangible Assets".
Earnings per share for the nine months ended June 30, 2003 increased 17.0
percent to $1.03 compared to $0.88 (before the effect of the accounting
change) for the first nine months a year ago. Sales for the first three
quarters of fiscal 2003 increased 8.4 percent to $340,799,000 versus
$314,254,000 for the first three quarters of fiscal 2002.
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Matthews International Corporation 2 of 3
July 22, 2003
In discussing the financial results for the quarter and first nine months of
the fiscal year, David M. Kelly, Chairman and Chief Executive Officer,
stated:
"The decline in consolidated sales for the third quarter compared to the same
period last year resulted from lower sales of metal caskets, casket
stampings, mausoleums and graphics products and services to the primary
packaging market. Year-to-date sales were higher primarily reflecting the
inclusion of two additional months of York Casket and an increase in foreign
currency exchange rates." The York Casket business was acquired by Matthews
on December 3, 2001.
"The higher level of operating income, net income and earnings per share
compared to the third quarter and first nine months a year ago reflected a
combination of benefits derived from acquisitions, manufacturing
improvements, lower selling and administrative costs, and favorable foreign
currency exchange rates. "
Mr. Kelly also stated that, "The Company paid $10 million on its revolving
credit facility in June 2003. Since the inception of this loan on December
3, 2001, which totaled $124.5 million, we have reduced our debt balance by
$70 million over a period of nineteen months."
The Board of Directors of Matthews International Corporation also declared at
its regularly scheduled meeting today a dividend of $0.0275 per share on the
Company's common stock for the quarter ended June 30, 2003. The dividend is
payable August 14, 2003 to stockholders of record July 31, 2003.
Matthews International Corporation, headquartered in Pittsburgh,
Pennsylvania, is a designer, manufacturer and marketer principally of
memorialization products and caskets for the cemetery and funeral home
industries, and custom made products which are used to identify people,
place, products and events. The Company's products include cast bronze
memorials and other memorialization products; caskets; bronze and aluminum
architectural products; cremators and cremation-related products; mausoleums,
printing plates, pre-press services, and imaging systems for the corrugated
and flexible packaging industries; and marking equipment and consumables for
identifying various consumer and industrial products and containers.
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Matthews International Corporation 3 of 3
July 22, 2003
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In Thousands, except Share Data)
Three Months Ended Nine Months Ended
--------------------- --------------------
6/30/03 6/30/02 6/30/03 6/30/02
------- ------- ------- -------
Sales $116,145 $118,825 $340,799 $314,254
Operating Profit 21,573 18,897 58,885 49,525
Income before Taxes
and Accounting Change 20,086 17,199 54,211 45,624
Income Taxes 7,797 6,641 21,037 17,612
Income before
Accounting Change 12,289 10,558 33,174 28,012
Effect of Accounting
Change, Net of Taxes 0 0 0 (3,226)
Net Income $ 12,289 $ 10,558 $33,174 $ 24,786
Earnings per Share
before Accounting Change $ 0.38 $ 0.33 $ 1.03 $ 0.88
Earnings per Share $ 0.38 $ 0.33 $ 1.03 $ 0.78
Weighted Average Shares 32,342,823 32,001,768 32,188,608 31,723,260
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. Such forward-looking statements involve known and
unknown risks and uncertainties that may cause the Company's actual results
in future periods to be materially different from management's expectations.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that
such expectations will prove correct. Factors that could cause the Company's
results to differ materially from the results discussed in such forward-
looking statements principally include economic, competitive, and
technological factors beyond the Company's control.