MATW - Earnings call transcript Q1 2022 | Matthews International Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Matthews International Corporation First Quarter Fiscal 2022 Financial Results Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this call is being recorded. I’d now like to turn the conference over to your host Steve Nicola, CFO. ahead. go Please

Steve Nicola

Good Steve Ahmed. today welcome our Officer. to Joe Thank the morning company’s I’m Executive Chief Nicola, President me CFO call. Bartolacci, you, and and and is with

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

and SGK surfaces products the was segment company been segment. Form is the in for the via addition, technology businesses This X-K filed In this industrial SEC have it’s in adjusted comparability. December. beginning quarter previously reporting reported brand new engineered segment. year It Prior amounts with was in reporting the solution period

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

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

fiscal of first To Slide key turn quarter. please financial today, the are X. to the XXXX the Now, review here highlights from start some

of business first fiscal an or million for growth million to increase segments a representing reported for ago, XXXX First, the our our sales Each current $XXX.X $XXX.X million consolidated of XX.X%. $XX.X quarter. compared sales year were the quarter,

driven compared Technology segment businesses this energy sales quarter Second, segment, $X.X automation business fiscal $XX.X Adjusted $X product in representing an $XX.X energy or $XX.X year. and includes compared million EBITDA identification to last of million more warehouse increase continued XXXX for year, million and automation million of mainly to million reported our first the than to last XX%. sales. almost which the by were growth the doubled for solutions, warehouse Industrial company's increases higher solutions These

adjusted principal freight accrued Third, but respect as in of reported significant of in company by costs. loss significantly same was a benefit the consolidated unfavorable termination to increased the the costs, as quarter, for sales an XXXX. U.S. over year EBITDA impacts Fifth, reported higher $X.XX XX, plan. current benefit reduction Fourth, the increased with the and for mitigated net This $X.XX compared defined consolidated of the the for and labor well a to completed of of in to the material resulted its settlement $XX the factor $X.XX the quarter, earnings adjusted a from ago. per company share in GAAP company's pension quarter million increase liabilities was September

our XXXX the December the follows. consolidated financial ended for of results summary is XX, quarter Next, as

a GAAP of the quarter company's current mainly share loss of XXXX, an reported last for compared settlement year. $X.X the sales. or million company's $XXX.X higher On a earnings $X.XX GAAP were the of ended XX, related company of representing to ago, the noted, consolidated the for I included $XX.X non-service costs segments a pension $XXX.X business quarter $XX.X the As Each million December our $XX.X same million, compared quarter million, loss increase sales $X.XX basis, pension year a XX.X%. per plan. for of reported the million million principal to or net net which or to of share, is per

with related segment. fiscal amortization On for Consolidated other charges adjusted of to represents also primarily reduction addition, years depreciation, first cost basis, expense, XXXX for income $X.XX EBITDA, non-GAAP XXXX compared a million our share adjusted per initiatives included which first amortization intangible COVID-XX and per brand the and intangible expense, or impact net assets taxes, interest before quarter adjustments costs. income the of fiscal the offset the $XX.X for intangible $X.XX The in higher costs amortization labor compared connection both $XX.X from freight amortization benefit quarter, and basis a primarily company's periods by sales or growth million, GAAP certain ago. of $XX.X the year. in the included net reported $XX.X million of Both for last material In and solutions million the share the was loss expense to SGK on was increased a the consolidated acceleration quarter costs. year was

quarter current in by the In solutions segment. SGK mix sales brand impacted was the addition, unfavorable

Although principal of pension costs, settlement portion and year. non-service retirement include a post related losses fees well pension expense and see million share banking compared primarily Other the adjusted from ago. impact of compared as interest and of Lower the current million represented benefit gains currency prior our and adjusted Technology year ago. income the to discrete adjusted the EBITDA result non-service earnings per Investment debt per the an pension five benefit adjusted per year balances. the our The company's The revaluation for denominated deductions as increase for to reflected Other a items consolidated deductions of of the ago. increased first to $XX.X cash earnings million the as XX, adjusted to or for plans. December share ago. fiscal quarter, contributed $X.XX $X.X average turn an for The compared fiscal was in to income representing EBITDA year. quarter of compared and XXXX lower of costs the loss. Please the interest company's a connection of sales the million Slide share ago. of and and value XXXX, a of million December $X.XX was begin $XX.X rates Please lower to income a pre-tax in the were the December trust lower first for businesses. declined with compared expense a $X.X reconciliations release. quarter quarter growth in a and significant taxes tax million XXXX $X.X charges XX, million, was quarter in quarter the levels XXXX primarily expense to the a $XX.X both $X.X income The investments Interest primarily foreign additional reflects same for ended increase non-GAAP the and the the and billion, Industrial current pre-tax increase ago, net XXXX ended earnings $X.X last on for Income year. taxes were year of solutions for Sales income slightly segment for reduction change to the the reflected year primarily quarter in to for to $X the a quarter benefit the in warehouse consolidated of year last current debt plan. a company's for million to year income The from million of reflected XX%. changes first certain review held year results. segment income reflected energy $X automation taxes higher Investment the to XX, resulted earnings compared ended quarter million, $XX.X for

was to fiscal six. or was $XXX.X segment XXXX offset ago. fiscal increase higher and $XX.X quarter. caskets, the to $X.X million, first quarter for these reflected XXXX the for to The to Adjusted million businesses In cemetery than addition, Technology be increase XXXX incoming an the to doubled quarter, and year by year with a unit sales the for costs. Industrial ago, equipment. through of EBITDA rates the current Backlogs Please sales primarily quarter, $X order product attributable XX%. of first for product million sales memorial increase The strong the sales which higher turn cremation million impact higher compared compared identification fiscal primarily $XXX.X Memorialization improved quarter. for the of more partially representing for a continued segment Slide first million labor were

Our current primarily related unit reflected quarter sales COVID for the deaths.

year a labor XXXX, representing business ended an million based core as addition, a first for effect costs. sales an The well of XXXX increased also sales seven. favorable significant X.X%. the unfavorable continued $XX.X costs, quarter sales mainly fiscal higher brand quarter compared bronze The for segment was In these increase business million, solution and in the markets. as $XX.X Memorialization million Slide during offset an to for SGK for quarter ago, sales to compared Sales Please XX, recovery ago. year a contributed turn base steel, company sales. for and the December freight $XXX reflect segment to price of were quarter. was retail the year products increase retail compared completed segment the fiscal million $XXX.X the increase The EBITDA higher the of higher adjusted packaging and in of for by material cemetery segments improved to The a the reflected the second primarily lumber realization acquisition small segments to impacts XXXX current ago, quarter. brand

sales. quarter quarter you sales, of current the recall, for EBITDA adjusted the currency the solution and Fiscal foreign The by sales, the brand the retail the impact $X.X brand impacted reflected sales related and impact had mix margin merchandising XXXX on will current Changes were ago year compared unfavorable were an year. million a The quarter by mix last change $XX.X significantly in with photography segment $XX.X higher As first a pandemic. segments unfavorable from the sales million reduction in same primarily businesses rates for core decline SGK ago. year segment offset based segment's was a material compared costs. to higher increased in reflected packaging an million which of quarter

was million of some $XX.X flow change flow current eight. activities work efficiencies operating termination. during Please The remote million operating XXXX quarter. the ago. year-over-year and in for In connection production costs increased a quarter the fiscal recovery related by to pension used first reflected to entertainment operating also contribution margins the in cash during Travel $XX.X reflecting Slide the the primarily business travel. addition, compared for activities year turn with and company's impacted Cash quarter to in environments provided plant quarter

mentioned. performance-based increases. compared Inventories was compensation increase debt a million December quarter at part, than recent million, XXXX. increase and reflected primarily December XXXX. $XXX.X commodity was the is The In year $XXX.X just XX, to leverage at higher at payments. based reflected funding current also XXXX, pension credit XX, XXXX, covenant in reflecting debt. of million domestic were $XXX.X the impacts of in ratio million Net The capital compared facility XX, $XXX.X addition, at our impact ago September net debt XX, to changes on in an working Outstanding the I the cost September

leverage was XXXX. at XX. X.X December Our ratio

plan, funding was million at September In XXXX. to million a the termination from pension This pension million at at addition, shares XX, December $XX $XX XX, liability as $XX declined related XXXX. of XX, Approximately result accrued liabilities company's were outstanding the during million the of XX.X current XX, quarter XXXX December our at September $XXX.X million XXXX.

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

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

Joe Bartolacci

We you, I on our revenue helped well. where felt quarter offset the in delivered the during very Good Steve. particularly off record growth despite top started our that strong the inflationary performance line. segments the want quarter, performance challenges a and has the segment of Industrial memorialization delivered line Each current pressures we environment. This morning. revenue Technology to company growth. the for operating newly business the the highlight many was our which bottom cast double-digit year segment the Thank of first strong

the industrials technology that in This the storage growth very performance Remember, quarter, more cash business thanks storage Industrial bottom-line and Technology to our our we of and included storage continued grew backlogs $XXX top-line as million. million quarter, warehouse this in our the reflecting segment surfaces energy Together and top-line we business. the comparability. been group of our segment prior automation high represent markets saw segment, of than to which allow XX% strong EBITDA serve. in business our growing product fastest exceptionally business, we these have energy performance of we this and begin During energy represents fast good of to double parts newly backlog segments starting identification deliver we the have demonstrate this our periods over year, adjusted for to with expect our work combined of to growing $XXX that over company. business businesses our the And the

segment -- segment without EBITDA adjusted to revenues which to that in this inflationary we great believe business, dry cell for to add the this impact will which growth in yet million important fact, year. energy this mitigate ion over we the In this In in XX%, in lithium proprietary product note have new another to revenues we calendar $XXX continue performance company. our be have batteries. next storage will help of story, us expect identification margins over solution to our well is is our business, leg expected elsewhere is the pressures It of what of interest product

Although storage we which was million increase from of $XXX quarter significant we million revenue $XX to our 'XX. still deliver on business, fiscal deliver over year, last during the only a energy for track for are

in to In impact of cemetery the depress our that speed, fact, of which step demand ability quarter, pandemic. performance. the development in flat business. helped businesses a higher our inflationary this a during the our in solution exceptional we electrode during this home we products strong opportunity rates all produce deliver business, EBITDA dry up performance the by continue battery has lithium Also critical have to material proven in of funeral high products business make despite of pressures revenues relatively our the at driven previously reported segment quarter, the in But its profitability while memorialization segment also, the year-over-year warned profitability decline see

our products very strong In of cost cemetery should all our COVID-related at in commodity volume slowness the but decline and another for businesses inefficiencies, mix European help the levels the in and from this profitable our year begin going business actions to a remains expecting The the to environmental and backlog achieve acquired elevated solutions results. to challenging historically us markets Our return in European deliver resulted solid team performance. pricing successfully up segment. all, a the performance and business performance. a continue very confident and accounts All to ability from deliver levels as newly we to address help inflation normal to the contribute anticipated moralization an the quarter forward revenues is EBITDA ramp SGK, year replaced overall to revenue in for a high account are satisfied solid in with in and

termination for the than we Because normal million long the this first company. to the further increased to required ago, closure to by order realized At quarter. of principal pension more our net funds participants, debt we plant to and the a this In million. point $XX outstanding contribution, make effectuate final distributed our plan to of ending plan, the not are this U.S. During $XXX contribution quarter. the the pension liability any quarter, the of liabilities defined thus our benefit one

remain balance focused on over of reducing year. However, debt the we the our

subsiding. a deal to unclear. pandemic uncertainty. As do the look can appear year, to The balance of we is not yet there still the year impact to has be be the What the the great for Inflationary determined. of of death ongoing of balance anticipate we pressures rate is

and that timing is storage to deliveries delivery. of but for expectation are to of Our significant energy continue what retail in readiness subject we're several traffic The customer our normalize, to uncertain will business when extent.

pricing estimates for actions our Despite more in backlogs difficult. taken and of performance predicting current our balance All thanks of strong businesses. have improved these challenges, these and to our the factors make however, our year

of we we on a deliver As at full a year million least believe that can result, $XXX EBITDA basis.

We for our year also relatively expect the consistent remain free year. cash to flow prior with

we that cautious remain is time. hope deliver, our over at we Although will this

it Now questions. for let's open up

Operator

Daniel question Moore At you. a conducting comes Thank Securities. question-and-answer we from time, The this first Instructions] [Operator will session. with CJS be

Daniel Moore

at with the acquisition, industrials about all? was But that products memorialization. lot the the start tuck-in of a as we'll what well. sure cemetery talk was meaningful To contribution I'm

Joe Bartolacci

It a contributor. year-over-year was full maybe a not in modest. $XXX,XXX, California was added it on No, year. $XXX,XXX tuck-in a significant $XXX,XXX, a that was on It not basis

Daniel Moore

maybe versus home or products year-over-year as funeral then about well on growth. And talk Okay. caskets as memorials for volume Both pricing basis?

Joe Bartolacci

effect our great costs, October into February, or further the put upward action Xst balance funeral of Dan, all part getting way. commodity the it pricing raised let's should products, prices large estimation without help detail, raised here recent this taking mitigate in guidance Well, in that prices year. of our of we it's for cover that upward segments, to as a the our home We've were of in insufficient

to covered home in products going So of allows cemetery the to suffice our the to we've be when we commodity say forward. us assured most that it action products, comes that back recent funeral cost it got that

Daniel Moore

that Got around? to it. fair more price way -- other It XX:XX than the would or volume be it's say

Joe Bartolacci

think, a I comment. fair it’s

Daniel Moore

fine. Okay,

Joe Bartolacci

volume is Volume up is well. up as Yeah, as well as price.

Daniel Moore

we backlogs you next quarter, but memorial Got a end side only And quarter few rates have death it. since mentioned the then, pretty remain of a the of or strong. the the or in to mean, size for volumes revert do sample elevated Obviously, expect started to so? or weeks, to remained it's normalize

Joe Bartolacci

know, Yes. at an well, the business funeral need home From business that perspective, you Dan, sale. as quite products is the

not point still based process seeing subside But But cemetery not believe, published still the going if think we budgeting does as typically that the information March, to is several we So expect start months this afterwards. happen beginning elevated. part April early we with which will would latest. decline volumes are tell volumes, occurs we start in us will anticipated have all see that what to we're into a in at of relatively latter that we on to than those higher in our time, at

much to be has last with north. the yet memorialized to of occurred So days in XX the cold what over has cemetery, weather in particularly XX a the

it markers are or As now. setting we're not seeing stones. cemeteries right

the expect we So into to summer. that well continue

Daniel Moore

quarter? one then, in mentioned or what two revenue it. you storage I'm And okay. I'll over was energy missed Perfect, but and the the number contribution the on it sorry. turn I

Joe Bartolacci

million, have million over Only $XXX but $XX of we backlog.

Daniel Moore

Perfect. Exactly.

EV, that Okay. looking update trying sense of beyond kind or the talk or on get dialogues us orders, Thank you. not you you flagship or And with traction. out maybe first you if year gaining better then, you're vehicle booked can customer, having this OEMs about, you're specificity beyond a to electric of how just

Joe Bartolacci

Sure, Dan. with hope I we one believe or manufacturer we one Salesforce, go speak we They're solution we we at is hopefully with auto announced in in portion, we dry European last just mean, over a to or that or through that batteries the are parts sales are associated I all Recognize, a which they quarter, last can was it about cases, degrees discussions course major reality the of once function, manufacturer that is of about, in cell these development, not the we're openly every landed before will a that. the varying choose be the year. that that delivered however, decision.

built they're to for going are formulations that of So to has deliveries be dependent the -- it their also timing to they're dry cell. of use yet. on on the facilities dependent And be some these have

frankly, the year. up active side, to hydrogen a be cell on this are of as side impactful fuel to ramp we side, active, activity well, also meaningfully won't fuel there's that of say the the necessarily cell we're So quite beginning lot that's as on least,

We year. be expect to that next meaningful more

Operator

is question next B. The from Burke you. Liam Securities. with Thank Riley

Liam Burke

there software, How that to order have management COVID-related backlog a up was warehouse how the of is just built for reasons texted facilities. the backlog of the on access much of and tremendous to you amount much now and Joe, and that is growth? related

Joe Bartolacci

of backlogs on relative very are business. would that I to tell you that that Both, size we sitting high very,

function. the typically sales a We We on get have even haven't to starts -- after holiday year the the full season. this front business sales and this we active started

we just finished almost. month you just entered on here we As January up know, the January --

continue is our deliveries. order both from and an prior delays we to So with will But intakes. have in period sales backlog consistent increase sales

Liam Burke

sales. on seeing normalize? memorialization created starting great. differed you And seasonally a Or minimal these Understanding is deferrals? more the of COVID, low to during products, variance visitations a Okay, which quarter for How business? that much lot you're the that is obviously situation has had this where

Joe Bartolacci

that, that to Difficult for we whatever last is XX the days can tell, Omicron or we us has may memorialized for believe about tell been spike XX of Liam but it most to talk most that when we yet. the don't occurred you recent be, what that

still there's from giving expect flow what's the share the think both latter whether to picked up that beyond timing, that's going the as market side. And stone the part well Given the we we in memorial opportunity as of through year. side, on we

seen have in still -- as investment this during delivery picked overall up We segment. We're construction, memorialization has throughout a in well. that the time, strong in a delayed point a projecting crisis, mausoleum at

Operator

Thank next Curator Niewood David from Fund. you. question is the with The

David Niewood

recent Western well a non-Asians protection you energy other reasons, I you are said partly conference side as OEMs that IP as things. and investor At primarily for on you made, manufacturers working believe with the storage presentation

their potential, are attempting may patents? in your ab of violation have cell that of that also announced they Asian are portfolio. else doing dry the indicated there be that that batteries. the if cylindrical ab. protected, it with are of was that cell, assuming XX and one is well only understanding using and spirit if be dry cell violation is are to with out My you technology, in I cell a question is would think XX they they in A commercialize we believe your couple you where primary technology with manufacturers anyone application The patent is, dry of they

Joe Bartolacci

as the into Dave. pretty deeply getting as Thanks, and far We're get I be can. woods you glad to

cell the matter. actual XX-millimeter it it's doesn't by So cell. XX It's dry wet than a ab of size whether or more battery cell, battery is XX cell, dimensional nothing

the So, all preferred that battery are the actual business producing in folks what the But of the auto of we from battery. the are I towards. is of size not moving know, cell that

having time. we electrode today dry cell a at believe anybody said is the Now, that battery there's in that, don't marketplace producing this

leader purposes, that to it market IP we obviously that When For space. comfortable in comes our a are are protection. very we

Let exactly are. me clarify where we

We have filed the anybody prosecuted, been that technology patent taken those and for relate the to see, to And dry operate. applications we're to that are have freedom about world just patents position the we speaking applications until available around being have patent cell largely about. have publicly are those those we a while we

projects More our importantly, ago in than the not we know German businesses. working the this development longer that if everybody We these been done we and developments research in -- through in we've have world. started space many years

So And then in prosecuted, We and we significant. the head-start will is patents our how ultimately think get space this tell. issued? be

Operator

Thank Sidoti Company. you. question with is from next & McGinnis Chris The

Chris McGinnis

the taking you A questions. nice Good morning. Thank morning. quarter. for Good

follow energy. a on Just up

that You about fuel thought out. was few a years side. talked the I hydrogen

can it So you hydrogen be next Is just that the and timing. think you difference guess explain two may correct? between year? sounds the like revenue Do producing the I

Joe Bartolacci

a Well, it's in lower much I'll be time, this producing our battery. than level point revenue at at

all experience projects is the component, as that hydrogen with with bossing So green cell we we're key so a similar or up year, a a fashion, would stack. components, of hydrogen dollars key in exploring fiscal bipolar alternative as the them we working in ends a expecting lithium lot revenue side, work development plate, fuel of the OEMs do of it's for that OEMs. form same we of some as other million solution have one we well energy. But on a have the as about which lot rotary the this technology We're with processing for that are that

it, which their As not me we beyond the versus is is. the intent But of delivery that. you trucking so I what don't maybe side. the and have local we caveat let more a hydrogen we different of battery, kind clarify, trucks, give passenger But as will let me or OEM, know a over that understand road explore application, with I'll understand let you are a

Chris McGinnis

then of is you. just and guess, that historical do mean long memorialization kind profile I on that. takes to the averages? there? appreciate Or up. think how go profile sounds catching margin should couple you Thank And the like how revert a margin your that I back questions, pricing it more there it Does that to get just

Joe Bartolacci

We to this the historical in we're expect averages that be me. closer excuse to one quarter,

Chris McGinnis

you that a That’s any Right. tells right. think that question in around changes just me.. SGK Exactly, that know historical that you And achievable? market that there then still similar make think the margin is

Joe Bartolacci

Yes.

pick to label over and or years. are from the early -- increased saw a couple this will help to spring, some starting life. display of be more the last the We of what seeing maybe lot packaging, expecting the life, We in-store the to struggle life offset nicely work. balance summer, a in-store private quarter. the on into We're that in see year, up the of us seen We're side which of it business, whether we've

Chris McGinnis

the that I share that, thoughts given of your understand this pension forward? just, that maybe added or the use then quarter, around this Do repurchase. a program a size the still And going of that just more have you on now Just cash becomes expect payment authorization? Great. share the your you repurchase past of

Steve Nicola

Chris, yes.

think share a repurchase the has become of the prioritize do year -- I of capital balance during a does certainly that the We still bigger repayment But it think plan allocation. year. during more debt part I becomes to part. of that

Joe Bartolacci

X% cash flow yield. a XX%, we a believe free what Chris, Clearly, is

I out think if unreasonable, At stocks think I minimum, make. us today's there. good out are think Our gets a there unreasonable pretty we find price it supporting so. investment to for And our this you'll

Operator

with Funds Justin you. question Bergner LLC. Thank The from is Gabelli next

Justin Bergner

the ask number Nice about first XXX guide that Should was improvement. just didn't coming from wanted from is suggested an million technologies? of XXX memorialization is better plus I plus industrial that? Clearly your segment guide. Quarter. you I that SGK sort infer unchanged or the it the [indiscernible] EBITDA improvement and you to of But comments quantify outlook all than Or performance on view and your most in the that an in before.

Joe Bartolacci

we you the we comfort it's have, some pricing tell to going But you Omicron better had what we there. tell that's want twofold. it. gave Justin deaths to And get crisis tell to guidance also large I we we we've would I flow will So businesses during of we're gives part that improved our if as than period. extent we're recall, significantly think higher we most going that faced what's not memorialization memorialization. built which well. to profitable When seen that And including November, really that us call that'll it's or backlog to anticipated you here that in that I on face would through. in the entered of you it We've be guidance the side, the the

Justin Bergner

benefit of Great, provide prepared relates the for thanks accomplished more listeners, lithium the what that comment a just for electrodes could speed you production to question in battery the My your you've the little of maybe your second on process? terms dry there in Maybe the color. about remarks. improving for detail

Joe Bartolacci

or test. say production rates. the get the It's are, -- be to a we it's key laboratory, to it can to We suffice much to whole that another lithium equipment So thing batteries them thing getting produce you frankly, specifics, or this very to is that yea, without can one electrode a produce equipment, production production it have getting industry it think before. be dry really and a help for three able one more material into been what which we level piece in into a We're two for to that to. can at produce we've more than go forward. rates industry that functional confident demonstrated, that equipment, that are that equipment confidence OEM solution with the they and realize today we lot will can means proven lithium of dry I we to cell And as are going now that start more is our that

Justin Bergner

mid a for of margin. with guide XX% level? the XX% margin industrial to improved it. and type lastly, that are of quarter, get the that Got you. as teens the the And to margin Thank year industrial technologies and sort EBITDA of first technologies then drivers progresses What the in more average

Joe Bartolacci

deliver by to We quarter who in I of now is said, that business about. storage that delivered going we $XX over that range the to good deduction million margins of quarters, the couple had right that worth $XXX we're spoke at pretty knew around have $XX which here. and next we million delivered energy yet million, during producing We was be

business order our some warehouse business hardware we sales Secondly, in what modest business. have software fairly of is significant we that related seeing rate in related are the automation

a the are related in margin. much We by We come software, have sometimes given but driven than which sales more lower anticipated hardware more in any quarter. may

a more the software better Software And we generates have balance software, us, sales margin the for expect. you coming might year. through as of

Operator

Thank comes you. Emerald question The next Scott Advisers. from Blumenthal with

Scott Blumenthal

do I same marking to a step there mention system? kind you here, couple the are new Or mentioned new back I did not meaningful identification to next I we're time. things few from am you see was to want things year? the because mistaken? Until trying that Hey, revenues that. that going Joe, of guys at a of

Joe Bartolacci

quantities we laboratory and the to been taking those of What -- mass this out and sending is, had chips, successful. silicon now correct. calendar it to lithium taking, manufacturer the we're fab the ion part of is in testing better the produce that that the very year. chip much of professionally, scale take of expected necessary to fiscal And is year, do business, it this kind we have a produce Scott silicon more the to over beta we've like battery product of course That are has done.

with We're to market be we're mean in expect very, doesn't quantities, point. it very this modest today. it just not selling getting at hand we built machines So very, with

Scott Blumenthal

the marketing Joe, you and the margins, suppose, better, that, Okay they compared much current to systems, generation I though, be expect that would of on right?

Joe Bartolacci

Well, the product. there's two to aspects

a better solution of the to our off, the this expect which razor to type a a on profitable nature is proprietary bring But is of business. There our of many obviously, part buy very as new delivery ink, part know. system requires the product, is ink that you first a you little margins of industry So proprietary razor bit equipment of the of we the blade and is itself. ink

where So once drive the it margins want we we to get and be. ink to will delivery get of scale the volumes, the

Scott Blumenthal

kind opportunity Okay, market the super. of frame characterize And us? can you a for or there

Joe Bartolacci

we the market a related It's and that to More speed. very rates called of is currently of operates small products that and board to is is consumer for Today, moving it that it about product very, the operates gypsum hard very The construction or fast product for the coming -- $X.X billion in down product displace in the market. a or of profitable market food will and our a $X.X -- consumer talked market. beer rugged, lines were past like is what's in We've publicly products. well, billion, manufacturer can operate currently fast is about setting. Things industrial moving bottoms heavy a new specific very goods. play part very, goods have We a us. it that the of at high lumber a very

Our do to team to we able not be necessary qualitatively competitive, the product, a global service them. on have basis albeit confront that's

has team easier self-maintained that much the with confronted market a So product.

the having market, a at look to a about is to $X.X printed of million billion a referred billion, attacked that take you for we to product, end repair if of about with third roughly will operators disposable without over market $XXX third credibility we a of front third So it easier about But around team once repair some market it team maintenance. that not hold, believe get the catches some the build a maintenance think having be service be be significant going them. in to to a significant. it time, could around share us do have it's able the world. the to for world to earlier, and revenue, million time or $XXX it We our that And to is X/Xrd is it take of We've worth a to ink. could maintenance. $X.X make do

Scott Blumenthal

Great. That’s that. Thank you. color. appreciate great I

And broaden that is using going this for people. your equipment to enable the you service So fewer product. also to market

Joe Bartolacci

That's the game.

Scott Blumenthal

it. Got

answer to the pension? liability. -- with you Okay, bought questions what couple know regard a the thank I Steve, maybe for the you. about next that of happens can you

you guys it? You find terminated Or next? here? anything company insurance to to settled Do and is what do administer then there left an happens

Steve Nicola

had in There's U.S. lifting happen those pension one to, made choice a small place piece, Scott between heavy the plans have the payments as lump our settlement that's that in take the that'll annuitization left already plan well. And be We October. annuitizations, completed is the we've you're liquidated. employees the made. of offered still purchases referring portion activities. But already sum lump and main sum There's left to that to and been been have

completed. for are the you that That those will, funding, that in all we first the what So if the took really quarter. was completed funding

So left overseas million we proximately be one where permanent, plan then, $XX we liabilities. supplemental that one settled plan will sit the next The that's with with accrued of U.S. already out $XX will of in today, million be in liability, will be that in October there's number, And main that in plan year. U.S.,

Joe Bartolacci

Scott. Yes,

together books been while. on had liability hang And we've balance off during million $XXX liability, -- million last, in pandemic, most we're the the part revolver. our $XXX that's sheet books, We've COVID of with we this think million is of on for significant improved underappreciated time $XXX what this entire over by our this took is period. process a this our bringing that quite a I plus whole closure

For a big item. it's us,

Scott Blumenthal

us have that really, have of guys we do Joe, appreciate noted work really you and all done there. Many the

– can So maybe we

Joe Bartolacci

price Scott. Knowing it discussion, stock is the and driving another

Scott Blumenthal

attention you and what's informed the couple or at I repurchase last to we're this changed pivot -- you pay have to have more the may that Ultimately, we've what's here other so earlier? point? where that, least or, you come the down the people Where a minutes. do target referred half a we've a in to six, going quarters where guys few be over here Hopefully, you of leverage eight last to know then here. At the of turn that. Steve, share target comfortable,

Steve Nicola

yes. Scott,

quarter the We leverage Our delivering. September. up X.X net the on of emphasis still from be the this year of exited a going at which at to X.X, is ratio end is

flexible at in more So can our and of emphasis we do again think year. going active be by three said plan this drive to -- program closer the is year. having still feel to this levels, do we that the more that, But these down end fiscal we to repurchase we be

Scott Blumenthal

during the And I'm thoughts guess bit for enough, that? you if are you headwind, one the fair believe I might, around? your year currency you my at looking little That's Do here. wondering And a I Okay. last Or how a mentioned I Steve. expect has of turn quarter. are here, a what

Joe Bartolacci

Scott compared about a the $X total for to year Right. headwind on was in company million it revenues, a ago.

the the reacts say really rest currency have year our economy the drive that. the of Euro mind outside dollar I to hard would outlook But that British for a principal feel pound. on going I might better you in so. really for couldn't U.S. the is movements. think how be year think the say with the keeping the to beyond that it's and and interest rate I the movements U.S. currencies in

Operator

Daniel comes from next Moore CJS Securities. Thank question you. The with

Daniel Moore

Thank you, again.

really expense this the next what's And just terms nil? quarterly housekeeping the Still for is it adjustments? maybe forward? self-evident. stuff. of going pre pension to Is rate Just in But run tax meaningful

Steve Nicola

speaking, next rest the to insignificant. should Dan. Certainly dollars be It nil a than quarter It year. be for of less million should per relatively the

Daniel Moore

in great. this one it a of amortization same good I Is is numbers. Going different good there with couple sort XX.X. And some think there's And going a run you the rate? for times mentioned run forward, for rate amortization, forward? Or

Joe Bartolacci

to you some near year, of amortization. start In still amortized to be the get to we accelerated the closer should rate, end in next of fully see the we've going that's as term that run and the the as although the decline year,

Operator

I you, you, have and of to would question-and-answer closing Thank for the session. the remarks. CFO Thank ladies reached back end Steve call And like we Nicola, Over to sir. you. to gentlemen, turn

Steve Nicola

Matthews. interest joining in today And to your for thank Ahmed, everyone and us you you. thank

our for visit results. your company additional quarters, please our rest day. Enjoy about and financial website the reminder, a the information As of

Operator

This today's concludes you. Thank conference.

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

Matthews International (MATW) 28 Jan 222022 Q1 Earnings call transcript