1 Exhibit 99.1
July 20, 2004 Steven F. Nicola
CFO, Secretary & Treasurer
412-442-8262
MATTHEWS INTERNATIONAL ANNOUNCES
THIRD QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND
PITTSBURGH, PA, JULY 20, 2004 - Matthews International Corporation (NASDAQ
NNM: MATW) today announced earnings for the third fiscal quarter ended June
30, 2004. Net income for the quarter was $14,380,000 versus $12,289,000 for
the same quarter last year.
Earnings per share for the third quarter of fiscal 2004 were $0.44 compared
to $0.38 a year ago, an increase of 15.8 percent. Sales in the quarter
increased 3.9 percent to $120,635,000 versus $116,145,000 in the third
quarter of fiscal 2003.
Net income for the nine months ended June 30, 2004 was $39,564,000 versus
$33,174,000 for the nine months ended June 30, 2003. Earnings per share for
the first nine months of fiscal 2004 increased 17.5 percent to $1.21 compared
to $1.03 for the same period a year ago. Sales for the nine months ended
June 30, 2004 increased 6.4 percent to $362,524,000 versus $340,799,000 for
the first nine months of fiscal 2003.
In discussing the financial results for the quarter and year-to-date, David
M. Kelly, Chairman and Chief Executive Officer, stated:
"We were pleasantly surprised with the Company's results during the third
quarter. Despite the significant rise in bronze and steel costs, we were
still able to achieve our original objectives for earnings growth over the
prior year. Our programs for productivity improvements in the York Casket
segment have allowed us to absorb the impact of rising steel costs and still
report improvement in the segment's operating margins over the prior year.
In addition, our recent initiatives in the Bronze segment have helped
mitigate some of the bronze cost increases.
2
Matthews International Corporation 2 of 3 July 20, 2004
We continued to see solid demand for our marking products during the quarter
and sales in our European graphics businesses increased over the prior year.
In addition, changes in foreign currency exchange rates and the acquisition
of a European graphics company in the fourth quarter of fiscal 2003 also
contributed to the sales and earnings improvement."
Mr. Kelly further stated that, "Due to the continued high cost of metals, we
remain concerned with our ability to achieve original budgeted objectives for
the fourth quarter of fiscal 2004. However, based on the level of reported
earnings year-to-date and with the recent acquisition of Cloverleaf Group, we
expect to achieve our initial earnings target of $1.58 per share for fiscal
2004."
The Board of Directors of Matthews International Corporation at its regularly
scheduled meeting today also declared a dividend of $0.04 per share on the
Company's common stock for the quarter ended June 30, 2004. The dividend is
payable August 13, 2004 to stockholders of record July 30, 2004.
Matthews International Corporation, headquartered in Pittsburgh,
Pennsylvania, is a designer, manufacturer and marketer of memorialization
products, caskets and cremation equipment for the cemetery and funeral home
industries; merchandising solutions; and custom made products which are used
to identify people, places, products and events. The Company's products and
services include cast bronze memorials and other memorialization products;
caskets; merchandising display systems; marketing and design services; 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.
3
Matthews International Corporation 3 of 3 July 20, 2004
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In Thousands, except Share Data)
Three Months Ended Nine Months Ended
------------------- ------------------
6/30/04 6/30/03 6/30/04 6/30/03
------- ------- ------- -------
Sales $120,635 $116,145 $362,524 $340,799
Operating Profit 25,212 21,573 69,231 58,885
Income before Taxes 23,498 20,086 64,648 54,211
Income Taxes 9,118 7,797 25,084 21,037
Net Income $14,380 $12,289 $39,564 33,174
Earnings per Share $0.44 $0.38 $1.21 $1.03
Weighted Average Shares 32,718,676 32,342,823 32,659,505 32,188,608
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.