1 Exhibit 99.1
April 20, 2004
Steven F. Nicola
CFO, Secretary and Treasurer
412-442-8262
MATTHEWS INTERNATIONAL ANNOUNCES
SECOND QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND
PITTSBURGH, PA, APRIL 20, 2004 - Matthews International Corporation (NASDAQ
NNM: MATW) today announced earnings for the second fiscal quarter ended March
31, 2004. Net income for the quarter was $13,801,000 versus $11,612,000 for
the same quarter last year.
Earnings per share for the second quarter of fiscal 2004 were $0.42 compared
to $0.36 a year ago, an increase of 16.7 percent. Sales in the quarter
increased 8.1 percent to $124,987,000 versus $115,581,000 in the second
quarter of fiscal 2003.
Net income for the six months ended March 31, 2004 was $25,184,000 versus
$20,885,000 for the six months ended March 31, 2003. Earnings per share for
the first half of fiscal 2004 increased 18.5 percent to $0.77 compared to
$0.65 for the first six months a year ago. Sales for the first half of
fiscal 2004 increased 7.7 percent to $241,889,000 versus $224,654,000 for the
first half of fiscal 2003.
In discussing the financial results for the quarter and first half of the
fiscal year, David M. Kelly, Chairman and Chief Executive Officer, stated:
"Our results for the second quarter and first six months reflected a higher
level of sales in all five of the Company's business segments. The
significant factors in the sales growth included the favorable impact of
changes in foreign currency rates, higher volume in our Marking Products
business related primarily to the recent improvement in the domestic economy,
and the acquisition of a European graphics company in the fourth quarter of
fiscal 2003.
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Matthews International Corporation 2 of 3 April 20, 2004
The growth in operating income for the period resulted primarily from
the higher level of sales, the favorable impact of changes in foreign
currency rates, and the European graphics company acquisition. Improvements
in manufacturing efficiencies and other cost structure improvements in
several of our businesses also contributed to our operating income
improvement. However, during the second quarter, the Company's results began
to be affected by the recent significant increases in bronze and steel costs.
These increased costs are expected to have a more significant impact on the
Company's results in the second half of the year and the Company is currently
working on strategies in an effort to mitigate this impact. As such, the
Company's ability to achieve its stated targeted earnings of $1.58 per share
for fiscal 2004 will depend on the level and duration of these cost increases
and the success of our initiatives."
Mr. Kelly also stated that, "The Company paid another $10 million on its
revolving credit facility in March 2004. Since the inception of this loan on
December 3, 2001, which totaled $124.5 million, we have reduced our debt
balance by $100 million."
The Board of Directors of Matthews International Corporation also declared at
its regularly scheduled meeting today a dividend of $0.04 per share on the
Company's common stock for the quarter ended March 31, 2004. The dividend is
payable May 14, 2004 to stockholders of record April 30, 2004.
Matthews International Corporation, headquartered in Pittsburgh,
Pennsylvania, is a designer, manufacturer and marketer principally of
memorialization products, caskets and cremation equipment for the cemetery
and funeral home industries, and custom made products which are used to
identify people, places, products and events. The Company's products include
cast bronze memorials and other memorialization products; caskets; cast and
etched 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,
components and containers.
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Matthews International Corporation 3 of 3 April 20, 2004
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In Thousands, except Share Data)
Three Months Ended Six Months Ended
------------------- --------------------
3/31/04 3/31/03 3/31/04 3/31/03
------- ------- ------- -------
Sales $124,987 $115,581 $241,889 $224,654
Operating Profit 24,166 20,478 44,019 37,312
Income before Taxes 22,550 18,972 41,150 34,125
Income Taxes 8,749 7,360 15,966 13,240
Net Income $13,801 $11,612 $25,184 20,885
Earnings per Share $0.42 $0.36 $0.77 $0.65
Weighted Average Shares 32,700,705 32,147,502 32,652,245 32,086,457
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.