MATW - Earnings call transcript Q3 2021 | Matthews International Corporation

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Operator

Greetings, and welcome to the Matthews International Corporation's Third Quarter Fiscal 2021 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn the conference over to your host, Bill Wilson, Senior Director of Finance, Corporate Development. ahead. go Please

Bill Wilson

Corporate Brock, Steve the you earnings morning, and Chief Director everyone call. Joe today Hi, President our Bartolacci International and Chief third to and of Senior Wilson, Matthews is Officer; XXXX With quarter welcome us This are and thank Executive Bill good Development. Nicola, fiscal conference Officer. year Financial

in and to the stock for can I website. start, section that you we our presentation remind website section. of would on Investors like www.matw.com release The our repurchase also earnings in Before were be the posted release the our call accessed Investors

As a Form the are of set that from Annual could the discussion to safe today this reminder, harbor results company's Report those on cause provisions discussed other the SEC. filings XXXX. with Factors company's and Private any to Act statements connection of differ forth being Litigation pursuant with in are the periodic made the XX-K in forward-looking Securities

we consider In non-GAAP the the you you I Steve. and call as carefully will and information, connection and in any read included turn reconciliation materials presentation financial our today's on website. tables forward-looking our And encourage please financial to with statements read metrics metrics. disclaimer disclosures addition, located will In these discussing non-GAAP be now, to over

Steve Nicola

slide start X. Thank with you I'll Good Bill. morning.

or and per consolidated basis year-to-date per of million On and on $X.XX share on $X.XX year $XXX.X the loss XXXX, a The $X.XX a $X.X compared sales GAAP the and earnings the last net $XX.X our for or new of sales in XX, XXXX reflected ended to basis, and company's GAAP net $XXX.X $X.X company income $X.XX for the XXXX, key income GAAP on XX.X% the release and first increase of year. yesterday, net represented $X.X of the net provided quarter primarily million sales of reported share compared June record of $XXX.X or another billion a quarterly year consolidated GAAP As million $XX million of $X.X or a an ago a share reported basis of write-down. basis loss financial million a company a GAAP per billion million $X.XX third to per of income quarter XX, fiscal the established of goodwill million of company last to consolidated June sales impact compared million ago. highlights net as for The share included, a sales of or year.

adjusted EBITDA consolidated last for $XX.X XX, Second, year-over-year million year, June ended a $XX.X million increase was of representing the compared to XX.X%. XXXX quarter

per $X.XX fiscal share per third of quarter representing the for growth XX%. approximately fiscal was quarter, the compared for earnings adjusted $X.XX XXXX Third, with share third XXXX

XX, last Lastly, on during X.X At the our to debt September XXXX. and EBITDA relative company XX X.X XXXX the recent debt based its measured net March adjusted the X.X net ratio. leverage from June XXXX leverage quarter, ratio again debt XX to net at declined reduced months XX, at

to XXXX or the share primarily earlier noted ago. the million fiscal the last before company was share and a included to XXXX of share lower Consolidated nine impact share for share, from and $XX a third or and per net to to segment our expense or quarter, million ended June were the the compared expense per XX, quarters current Solutions were for to $XX.X XX, $X.XX $X.XX $X.XX the primarily intangible third or compared adjusted $X.XX quarter, Intangible the a both a expense. interest third share for $X.XX on The months earnings intangible related $XX Non-GAAP per fiscal assets depreciation ended for ago. I million As the XX.X%. EBITDA, to per of for XXXX intangible share share share year the of in reduction acceleration XXXX Earnings million amortization expense, was $X.XX per of $X.XX increase per GAAP an last Adjusted compared Brand reported amortization million higher non-GAAP amortization for earnings $X.XX ago, quarter cost June share costs. representing year $X.XX year. $XX.X certain with per per year. income which per year per income a increases other COVID-XX year quarter connection interest earnings the SGK $X.XX adjustments months was per for and in represents of $XX.X ago. reflected adjusted basis taxes, fiscal compared a On compared charges $XX.X amortization, million basis, XXXX nine basis, initiatives share a GAAP EBITDA amortization the compared on and

increase of of quarter for months to For costs. Investment XX, was XXXX, in non-GAAP to realized XXXX addition same company's ago, June three compared and our ago. in income The June sales reconciliations a cost higher and the material $XXX.X to $XXX,XXX earnings These million ended consolidated higher the representing a see the nine XX.X%. $X.X year by programs. improvements share million of the ended an million year reflected EBITDA primarily months adjusted adjusted $XXX.X XX EBITDA savings increases reduction offset the for labor were from adjusted Please per was release. earnings partially the compared impacts

represented the income held certain million Interest $X.X for expense XXXX changes income June in to net periods million $XX.X primarily and respectively in year. and current the declined investment year XXth year interest same XX, average respectively, and quarter a XXXX rates compared reflected through $X.X and income levels market reflecting ended months income deductions million June year. of for the the June months lower and ended nine ago nine ended months for Investment debt June for income $XX.X investment Prior to the investments some and year pre-tax initial $X.X lower value reductions benefit company's plans. $X.X Other compared compared the and impacts and million, the of for million, deductions for million periods $X.X a to and Other quarter pension primarily of trust of to portion XX, COVID-XX. For respectively last million $X.X the XXXX, ago. the $X million was million and costs. $X.X of nine reflects million, include income same to of the post-retirement non-service respectively the XX,

was of and gains deductions $X.X charge pre-tax Other the denominated The for June the XX, an year-to-date $X.X the portion XXXX three year. months to the June taxes million ended $X.X reflected and $X.X and and ago. million, on Consolidated for million year also debt last represented $XX.X related and of non-service compared quarter XXXX XX, last income impact the foreign company's last a losses periods benefit and the benefit year-to-date post-retirement compared year. $X.X goodwill the a principally of losses to the a to of of fees periods respectively the current versus income balances. and current For income changes pre-tax currency periods, cost year-over-year were respectively million a $X.X certain mainly compared million million year. taxes cash million for The pension million, and $X.X company's nine resulting intercompany expense include, consolidated benefit for banking income same the from of months ended

from year begin tax while five, fiscal benefits of XXXX foreign to to increase million our or realization. primarily discrete the the of were equipment segment closure improved attributable Please XX.X%. fiscal tax for XXXX million audits. of higher review cremation memorial compared Slide ago tax a an representing The losses products $XXX.X expenses increase XXXX included $XX.X segment third fiscal turn Additionally, and Memorialization $XXX.X price to included sales discrete primarily results. million, sales of quarter certain and cemetery related to a to was

the the unit expected resulting ago COVID. deaths casket in a of impact year US as quarter Third lower was decrease volume, from than declining reflecting

an during rates sales on segment $XXX.X respectively cemetery caskets, the cremation the compared memorial in were quarter. sales the business XXXX, June is expected ago. to equipment. $XXX.X sales to next energy million adjusted Changes Year months currency brand products increased products costs productivity lower core $XXX.X fiscal or second X. compared Pacific For million products the Sales The direct increase margin quarter, incineration partially and million to was ended quarter an current a XX.X%. million and and compared representing XXXX The date materials increased offset higher labor $X ago. from increase equipment of increase XXXX of steel, nine into during adjusted quarter. segment's SGK of: primarily fiscal memorialization bronze; the favorable reflected completed the year-to-date which year mainly and and commodity to increase last the Slide engineered year-to-date had and higher higher higher particularly to initiatives for in a current acquisition $XX.X turn compared Memorialization by solutions and small the resulted favorable ago. $XX.X and of the exchange unfavorable $XXX year of was $XXX.X were million EBITDA for impacts costs. business The unfavorable The cemetery increase million, Please million, business; of and a primary also cremation our markets. an the Costs of to foreign XXXX company million an segment's the freight the freight and $X.X XX $XX.X the primarily for quarter the ended $XXX.X The increased a sales for reflected continued for lower by increase mainly segment million was to and XX year material UK costs for in labor quarter, segment year. Brand segment's a million sales third UK Europe to effect costs Solutions and during lumber margin sales projects principally compared projects fiscal in EBITDA current to year Asia year ago June year. higher recent million impact sales memorialization benefits offset have impacts

the segment its higher indicative in a retail-based these recovery markets. reported are in we modestly revenues which addition, of In businesses, believe

businesses, recall retail-based impacted segment's been will COVID-XX. have you significantly the As by

fiscal last year-to-date sales compared $XXX.X periods resulted and XX currency the million $XXX.X fiscal Fiscal to for the representing of or were increases million were XXXX The for recent EBITDA the and million for quarter $XX.X sales the $XX.X to cost product warehouse was Brand or million third segment's identification $XX.X for quarter Sales adjusted realized year adjusted higher Technologies $XX.X to structure of the the a sales primarily Slide SGK was XX%. $XX.X initiatives. an compared EBITDA Solutions year to reflected segment $XX.X year-to-date the X. segment in sales year million last year. $XX representing $XXX.X the year. same from $XX.X million the million, to The The segment compared a ended from sales impact For quarter segment million the XXXX June higher $XX.X current date Year million, businesses. both with XXXX had the last increase and for Changes ago. to on were segment last savings increase year for XXXX year. nine ago Please XX.X%. segment's segment of and $XX.X of turn and the foreign million first for million of automation rates periods to favorable respectively $XXX.X compared compared months million year-to-date impacts the million increase quarter fiscal an million compared sales Industrial

June development fiscal quarter, margin continued in change commodity a $XXX.X quarter, year to The of including last $X.X costs. was strong. with for year. $XXX,XXX compared reflected Operating for from in receivable sales the months ago. by flow EBITDA costs a an operating factors with for turn lower The to $X.X compared higher ended increase adjusted $X.X increase million Adjusted Additionally, Slide sales, current XX was Technologies be costs. an million higher year Changes segment's incoming the was X. segment's $XX nine XXXX higher Please million, to year-to-date the sales impacts contribution to currency rates quarter and which consistent orders sales, third the favorable last for pension cash warehouse year-to-date the impacted several quarter third an by $XX.X $XXX.X compared segment mix EBITDA product the of million, with activities Cash million company's was plan, for in due inventories for businesses million and in impact a cash primarily ago. to unfavorable of respectively primarily increase the increase Industrial an had labor and on company's and sales the in year. discretionary which was the these reflecting relatively record offset million quarter XXXX partially was accounts flow

In facility during payment regulations. million taxes calendar FICA on net is million of debt federal covenant the net recent related our COVID-XX The million. $XXX.X with June addition was a at XXXX debt outstanding XXXX to XX, ratio $X.X $XXX.X the cash based Outstanding less debt company made deferred in relief under credit domestic which quarter represents from leverage debt. at

shares XX, XX, XXXX. and outstanding X.X quarter XXXX declined X.X current ratio net the XXXX. XX.X June at XX, million During at March compared at June to XX September our X.X debt at leverage were XXXX to Approximately

purchased program. approximately shares company XXXX remaining authorization company the under shares XX XXX,XXX XX,XXX the the June, approximately quarter, share recent At the under of program. repurchase its had During

As an this a for program. week of X.X additional the authorization Board result, approved shares the million

Finally, declared the the week of X, $X.XXX Board concludes and record This will a review share operations. on payable to financial this stock. Joe on The is XXXX now company's comment August dividend the XX, stockholders per August common of XXXX. our dividend

Joe Bartolacci

Good Steve. you, Thank morning.

As are results as quarter our the our quarter. revenue segments for during of delivered you significantly adjusted very and EBITDA pleased might expect, consolidated with grew the well. our Each we growth record-setting

Funeral resulting North provided Home the results our began in business Our vaccine quarter, of to rate Products death our strong normalization the continued the implementation this performance business deliver segment while from was the as Memorialization Products to Cemetery except expected, see by America.

Our the results this in still parts of achievement fourth the a than we quarter beyond. optimum generated and in and of good and we in what our Much I'm operating challenging reduction while by order region around great have profitability team which proud during comes operate. environment segment, of our our and the higher a at benefits about Technologies Equally we many we driven business. noted business the environments quarter of teams Storage remains important, come. our we continued that from in to our this as to backlogs revenue. bodes realized to world revenues conditions. continue were million. the Europe business, revenues the strong continue growth our the past, was are cost least which in EBITDA of less strong expect quarter Despite saw business returned rates we the existing opportunities. new approximately where revenue in our business Industrial needs still current Products strong our Cemetery to to to very the be SGK another challenges, and very Similarly, however, and well be the win In in clients. In the the normal and $XX Energy our XXXX, Storage higher our as segment, Energy contributed these quarter our the world strong satisfying In business for initiatives our we reflect optimistic very fiscal of brand

million we we to We now business. year projecting build for this are will of $XX revenues backlog be hope another growth fiscal what and significant for continue year our this for about

us opportunities the As more able lithium to I Storage operate businesses the hope in one be adapt success our the our navigating performance pandemic the models our the the satisfaction to businesses In hydrogen that pandemic. markets to business, speak our in has client reduce operating and new All-in-all, In our Brand continue in to to we about business during call, going we Products Home will business, way. to to cells. Energy Funeral crisis soon costs has to in strong working fuel our reflects beyond than noted and opportunities beneficial continue last our been allowed strong high more forward. see

that more e-commerce Industrial our solution our in clients success. While necessary gained automation future realize businesses more segment and as share Technologies market is to a warehouse

forward, APAC are their continue behind the the much in a look vaccinate to ability results the In States challenges businesses our economies in United our we of exceptional, particularly region, citizens. normalized pandemic all although we their see are many significant as performing to not rate. from world, remain As at of the

to result, a in is will components. year our performance. continuing see our although at feeling Also, raw These term. inflationary to strong, are impact of finishing we the revenue continue we As assurance efficiency and pressures, like impacting a that particularly we pressures trends other impact at margins which near least in companies materials operating the operate lower the off our strong give us

the to are take We expect cost but and to possible where ease margins pressures In those pressures. to those price we these continuing actions soon. not meantime, mitigate

we diligently, do Although we expect the work impact inflationary will pressures. the full of offset not to

results XXXX. was quality XXXX you better total since of ability flow evidence is bringing over than X. that businesses the our collections. $XX the on leverage indicates of operating that cash cash that also $XX flow million. some at our report in million, are cash operating to is stock I generate our our impacted Xst was demonstrated target am unusual our Despite positioned third by Regarding fast reduction debt of of by we I were should coming performance, over quarter quarter performance given our the to businesses approaching to reduce happy our payments January net our better January no our Xst, today than and forecast this ratio net less $XXX There debt it timing debt when our assure our that of than

ratio to to authorized has of In back to our that million these based gives leverage improvement our business or us in at continue Our value low the Board of desire conviction shares in the X.X a swift to buy support buyback debt very an shareholders. additional prices. invest on shares great our our aggressively our in flexibility return

results. are noted, evidenced can our of Finally, deliver $XXX our have are about and that we and of for our EBITDA adjusted least still excuse events the may performance can the as strength target our of optimistic we Therefore, to-date raising outside year, as me, cautious balance arise we believe control we expectations you -- as situation intake, will million given and but at impact we for our remain order of now the XXXX. fiscal which our

open questions. it for let's up Now,

Operator

conducting Instructions] Our time, Please question-and-answer today question of Thank we'll Securities. proceed question. Daniel first be session. you. [Operator At from a Moore this CJS with is your

Daniel Moore

Good you. Good for morning, Joe. morning, Thanks taking Steve. Thank questions.

Joe Bartolacci

Good morning.

Steve Nicola

Good morning, Daniel.

Daniel Moore

Start with expect we more warehouse QX Just you for get out in before kicked to back automation. in much facilities? revenue you Are see kind we customers should squeeze your how can of largely And QX? versus the in similar now trying holidays. business

Joe Bartolacci

do to we systems are of conveyor our and has our the facilities warehouses. pandemic than be it So on though, that facilities. back stronger in the should less components Despite the their reflects quarter to and we our with with get into that we're hardware delays revenues forecast causing not next customers' this and quarter ability feeling their saw seeing. that parts all are and what They're

the very also point trends with leave We the to given expect at strong are very, Dan. this year what backlogs

Daniel Moore

around years to the storage Energy years? of And where that said. three the fuel in next you're cell opportunity believe positioning the potential a detail Helpful. $XX What's little size to five hope more revenue of hydrogen the on maybe I be. closing you and million over you

Joe Bartolacci

another year-over-year it project year for as we next backlogs. increase based relates our to we're on what expecting significant So

yet. we strong in-house have backlogs don't even the and have expect we all We orders

is us. another So that we're not going see be pretty we're next comfortable increase. determined big really by significant could feeling year How to

comes material PLCs. a process weigh to orders we will reflect we again We We tons This tons and manufactured in an and the recognize business. that think the made footprint and take have and acquisition side earlier precision we it base very hyper house, to rotary we When processing the milled can are controlled fuel are We complex the driven of it our cell is that large and by but we overall can in facility a hyper hydrogen a knowledge business, timing very, component year. small when expand our cylinders but sophisticated the through deliveries those of revenues. in pressurized, into and are business. and

is saw we intend if manufacture the capability want not bring from bring our to our provide fuel can to production We may to product. to as customers that it. unlike equipment. own rate to deliver We They You engineering business. expectation the the in that. know-how And business our our equipment cells only side lithium

Daniel Moore

triangulate Helpful. A next could. Maybe one just of, quarter. beyond sort more say let's all, and comments if to them trying of I lot the

to margins. across the mitigate You said momentum the and of some caskets of you expect positive of some unfavorable lower businesses impacts

a So be little for interpreting overall offset EBITDA should net we how few slightly maybe think being can a -- helpful. be you Do bit? those grow should we would Just lower basis? year-over-year on any it about and greatly quarters think a you just

Joe Bartolacci

mean, we subside which have not are the all – the Many see in we're to them starting pressures. of subside. feeling So other started inflationary the I like clearly to many but world companies

go prices ratio to flexibility to have opportunities where we buyback there other inventories has because two going share different out our our with intend are through other said program. strength Given our Or a few to be to that. gotten prepared as we we'd quarter to today flow lot lot our now But There's we continue aggressive impact like net can businesses. in improve given at business more about. a talk do of We're we leverage these to through things. and do a have to our that or invest. three of I acquisitions There take tell while could a how we how or that's not they importantly it us you

allow will lot to a point So at different deliver of of us pieces value that shareholder. to the the this puzzle

Daniel Moore

right. All

well. as one last my stole You

Thanks. with any follow-ups. So I'll in jump back queue

Operator

is proceed Burke from Liam with question. question your Please Riley. B. next of The

Liam Burke

Joe. Steve. morning, Thank Good you. Good morning,

Joe Bartolacci

morning, Liam. Good

Steve Nicola

morning, Liam. Good

Liam Burke

and out backlog Joe, what the that And incineration. cremation contribution a with the of driver the from like memorialization? nice you third major growth quarter? look Was in the numbers of revenue deliveries had do the

Joe Bartolacci

had you're the of We of out growth. was value itself, right. growth nice and that that cemetery business our business. -- of being side It's the We products was in for modest but got delivered

We also through a pretty products products our saw of good mix on side. coming home funeral

real So as the a were result funeral cemetery secondary on home third first products; products; our business. the drivers cremation and mix

Liam Burke

backlog on that the And strong? cremation still systems is the

Joe Bartolacci

We're out XX months -- XX months.

Liam Burke

Okay. Great. season Thank revenue? you. of step-up, the anticipating kind holiday season? you And revenue then any going -- or of, Are to higher expect in-store I'm the you looking sort at back-to-school accelerate anticipating modestly retail. Would into Are you display. year-over-year growth that

Joe Bartolacci

are private what strength is we out nature. the still given for which packaging of are and season the business it would would of our retail enough operating. that what story we much Christmas all which the Interestingly in in what normal they I at work, of core packaging yet. in-store point things display retail call businesses of more nature whether We're our seeing marketing would reasonable, Liam sale how side not I but we're our to with normalized They for just be have pretty season not hoped behind be in I we business expect have displays. branding the disappointed are with have that that but of CPGs. spending back-to-school say would than label buttresses call to They're but better that a performance further SGK not we That's been, retail had

Liam Burke

And Okay. Super. one just one. quick more

costs in that You printer Is industrial. mentioned development higher development the cost?

Joe Bartolacci

out its performance Yes, we're our it now with talked say, its we've that a that confirming Suffice for several at beta is it all sites. satisfied is that printhead time. is That testing Liam. proposition in long extremely value about to

but in that setting it That through time are we've moving kind take go It's to a we as production. university a a of now professional will of value bit the expense of midst production process a we've chip fabrication size and confirmed the from bit to confirmed that of get process, little silicon the more proposition. of We to lab.

Liam Burke

Thank Joe. Great. you,

Joe Bartolacci

Yes.

Operator

David open. Please with question. is The is proceed from your next your of question Phoenix. line Niewood Sir,

David Niewood

Hi.

on Hi, Bill. was Steve. I mute. Sorry, and Hi, Joe, hi,

Joe Bartolacci

Good morning.

David Niewood

to last have follow-up. your large who known are of ion this My there's connected evaluating processes dry doing they And battery battery XXXX you is as that are lithium companies reasonable I been of your then players energy not conference battery to storage future That's a that since assume And the the XXXX. that are relates press first speaking XXXX electrode, know question electrode quarterly what's is, it you as And dry any or of lot it doing the do of dry electrode? are all a indicates if you're them? seems press are it my industry additional question. And it cylindrical very industry much battery Since as business. several a that news there to process. to call lot in that flow,

Joe Bartolacci

Okay.

So your talked about first question in David, interestingly this we've the past. enough,

years with in it of space. specialty We manufacturers equipment experience and some had knowledge processing are processing that done. a IP other dry this with rotary cylindrical cell in We've patents lithium we've around

in We cell the lower I also wet but process, would what operate extent. call to a

about necessarily wet and unique just into the suffice are cell. we proposition both But are at it being least everybody. We are unique. talking to comes say selling to when world, is in European contacted where Western we the dry it that by -- cell wet And the people same we're unique, to dry cell at our the process are not time, our world unlike

David Niewood

naming there is Without a how player solvable is ion large has final that of the to to quite battery, or the do of In lithium mind, large out but performance are are they it commercialization not commercialization? there names there Okay. cylindrical the dry and close, hurdle customers, who very your XXXX cell with those -- cell cylinders. says yet, that

Joe Bartolacci

the also feeding at point processes, it, in components our but formulation necessarily of our we're Look, position of associated of process. mix that because this the a to through are not lot that lithium and the not with a just David, mix speak to there's

with you I So you can't we I tell to tell can't what everything is solvable. control respect else. --

David Niewood

appreciate I weeds answers I you I I and the that much appreciate questions, the for and very understand that wish these got in but success. continued guys

Joe Bartolacci

Thank you.

Operator

The your next proceed question. Please Advisers. Blumenthal of Emerald Scott question is from with

Scott Blumenthal

morning, Good Steve. Bill. Joe,

Joe Bartolacci

Scott. morning, Good

Steve Nicola

morning, Good Scott.

Scott Blumenthal

a there's caskets the and over cremation Joe, past And ratio memorialization. year lagged. natural memorialization between

up me comments you would it in So -- told or But Do maybe a two to might of year that know that year in to that of you X.X the the of I you up? caught caught year really quarter by up depressed memorialization you a said maybe your be memorialization quarters think the by quarters. seem end sales, end you essentially the catch you're thought here or by here. going

Joe Bartolacci

have No. were and quarter. comments strong strong Scott expect least another backlogs we My at we

tell. and XXXX it's off and memorialize, you of tell but So expect I XXXX, there'll that difficult so normal much done forth. there ramp to -- a then is go of volumes. be tapering through me, get we I would to much a how excuse

it expectations what be it forecast less? current are today. reflects be could more, our Could Our Sure.

at backlogs point. have We this strong

Scott Blumenthal

Understood.

on the to think So providing next us happen just you is of year. were making rest with you and not for any year commentary going the what

Joe Bartolacci

Absolutely not.

Scott Blumenthal

really that. Okay. appreciate I

that seen in business then maybe talk for Europe. be had me you've demand you can considering wins happening to outside strong would US something be which some that cremation I incineration worldwide would places. equipment, the and what certain about be seem and would Also of know Okay. would we've that

you expand you cremation believe to that able is And opportunity? do the incineration of been kind TAM there? the total have So what

Joe Bartolacci

market continues grow expect. to as you The might

of equipment the by anybody shot. provider We leading else equipment more long human in the world. sell a are We than cremation

our to sales States are gets And of you reach But the broader in and United going the that and with to those expect what's time. result, will most a tell I you As as come have those broader. constrained of things municipalities outside over itself, on made by would municipalities. of COVID been

strong well. business. to in we of expect player a lot Latin product South long-term pretty eastern in consistent value western a this the includes and as a we it backlog to Europe Our backlog Australia, continues is have what that and and of We're comfortable that be, lot deliver to America,

Scott Blumenthal

us of numbers of Okay. or of that that last last the as maybe where given book-to-bill side you couple quarters? idea stand maybe to over you kind with backlog an quarter I you know historically. maybe the Can Joe haven't this flip give

Joe Bartolacci

For business? which

Scott Blumenthal

For incineration equipment. cremation and

Joe Bartolacci

said more pieces and I go is a earlier, months. almost we've that ready that. is sell. These associated not the into whether everything product. to backlog that to got permitting question generally else It's other XX XX, As whether we've The with client there's There's product facilities. are of is got a accept issue construction, equipment of

Scott Blumenthal

backlog Sure. can then has safely I And this assume expanded that Sure. Joe past quarter?

Joe Bartolacci

over expanded But course period of whole it's answer Well, yes, modestly. is yes. the the the

Scott Blumenthal

Okay.

Joe Bartolacci

to think deferred the been lot a this of areas, facilities I come I that has maintenance the that of think these one fruition had. has pandemic during have

operate the equipment long unable was We much never what out came doing. it of there's operating As time. pandemic to function the they challenges as come service be period their for a as they should kind like. they to throughout think way next of was good really Those did would of about the

Scott Blumenthal

That's to know. Super. great

ask might one I about packaging. inflation. We've if seen Now of kind

it seeing material. You're raw in

are packages. impact consumers CP, product course, in the downsize companies encouraging grocery consumer the of the Of to maybe seen kind some change of packaging inflation store. We've seeing that the

of maybe same and package pretty busy accelerating? to the would trends You've seen products of there. Are downsizing price. I prices be the increasing got suspect if these of the charging and are seeing they that's And instead size you on the so, some

Joe Bartolacci

That's Packaging, not our business. part our in It's do pressures you're we inflationary coming Scott. in service. through seeing principally a have packaging of the reason what huge numbers,

the We this seeing high But are very wage time. that material we're pressures. at not but volumes have some pressures,

it our up repackage going We lot and may the very you're this through we're business to of new during right, where performance given new look pandemic has how be. some and also picked that improved as business was been. to cycle sizes and these into or whatever the is CPGs a Generally, pleased go smaller

Scott Blumenthal

And market sale if the a as Right. maybe a but may. printhead last a replacement new opportunity that's Great. The just well? for not opportunity also one I

Joe Bartolacci

maintenance unlike No and the or then a There on printhead and by of that out anticipated repair replaceable has there's been produced consumed the the number what question. an printer by are printer service. is there historically based life -- prints

Scott Blumenthal

any candidate So, then we assume for is printer upgrade. can an safely that existing a installed Matthews

Joe Bartolacci

contributor in We talked is today it portfolio our market this tomorrow. opportunity. make portfolio be a opportunity in huge we is and But printer realized a significant a to Not consider And take small our space over our us. competitive a or opportunity potential the what overall about swing. upgrade Every for this to for technology great a going consider time. This is while. a business we've to performing

Scott Blumenthal

you. Thank it. Got

Joe Bartolacci

Okay. Thank you.

Operator

with from of The proceed next Sidoti your Please Chris question Company. question. & McGinnis is

Chris McGinnis

Yeah. taking Good question. morning. for my Thanks

Joe Bartolacci

morning, Good Chris.

Chris McGinnis

and anything you seems the a the a in like bit you people memorialization. pandemic Can that? change? seen are that -- markets just of Is recognizing seen maybe of cemetery Have little celebrating life be you little us out a there for around coming changing change just or may differently? it bit Have as Thanks.

Joe Bartolacci

We change. a much have seen significant of not

-- some In significant sales competitors cemetery of supply -- very of preneed fact, ours look the of larger customers if reported have properties. you

So revenue rate. we the seeing death flows recent expect world, we're with in be memorialized what to consistent from our might

Chris McGinnis

Yeah.

that Okay. support and you're and capital that question, just the just other seeing demand? Thanks. you needs any about And about. just to EV the Can around then thinking one talk demand

Joe Bartolacci

to the needs I day, of But at into not we'll would is that are pull the to acquisition CapEx be that we're It's big not need not some it say say money. function. end the There capital spend may candidates the a fray. light. to going

the you degree to But $XXX that the spend million money. going in term. might to to are absolutely expect a grow We not near business to

Chris McGinnis

luck in and Thanks good for QX. questions Great. taking

Joe Bartolacci

Thank you.

Steve Nicola

you. Thank

Operator

I'd Bill questions closing turn call There are no to this remarks. additional like Wilson back for at to the time.

Bill Wilson

Brock, you, your in Thank and us thank joining interest you today for and Matthews.

the of contact Thank information and or additional our the me financial visit enjoy our company you results, your day. please website. rest For and about

Operator

conference. today's concludes This

lines for You your may participation. you Thank at your this time. disconnect

Matthews International (MATW) 1 Aug 212021 Q3 Earnings call transcript