- Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Matthews International Corporation Fourth Quarter and Fiscal Year 2022 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, Mr. of Corporate Director International for Senior Corporation. Wilson, Finance Development and Matthews Bill you. Thank

You may begin.

Bill Wilson

Good and Bartolacci, our conference morning, Matthews Melissa. me Steve of you, Thank everyone, Nicola, Development. Corporate Chief quarter Bill Senior With fiscal Executive Finance is and and International are welcome Officer. and year-end and This Chief XXXX Joe Financial call. today Wilson, Director President fourth the to Officer;

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

to In Industrial new segmentation. XXXX, this SGK period from as quarter the safe results Private made with to discussion being this reminder, company's transferred annual Technologies first results filings are Solutions of reflect those XXXX. products Reform differ the of the the to segment XX-K Act SEC. set the Litigation from connection segment, Securities Form business addition, Brand the other discussed and the fiscal that in with are prior cause report company's the in of beginning the periodic today surfaces a pursuant Factors could Any in company and statements forward-looking forth harbor on engineering provisions

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

Joe Bartolacci

a to morning. I’m apologize bit got advance, morning. you, this a cold in Thank Good head we've going Bill. of

we due third to of our on we to the beginning have that the at European revised our pleased of with the that from we forward, economic 'XX businesses are quarter if adjusted guidance the throat exceeded So going continued break the Ukraine. high results. was stemming and impact our end headwinds Despite faced, understand. the fiscal my But in you clear conflict I

results million contribution Our foreign our $X businesses to by strong exchange the in over year-over-year despite regional issues several impacted addition EBITDA due adjusted headlined of our by economic zero overall that the from to conditions. European were headwinds

adjusted guidance our continue Our orders significant despite customers we in from provided initial impacts these in EBITDA the line Moreover, noted our performance, where progress significant as for in energy last multiple anticipating make are with year currency earnings challenges. coming in our months. we business was release, to

these expect as aspects hydrogen of We orders like solutions photovoltaic. like as dry and energy cell will business, cover our mobility green well generation electrode all Solutions Energy including fuel

competitive as our globe our a Our industry in the energy And resulting interest produced billions our in across derived market's many States. from our passed Act, of seeing of the from the the in challenges addition printing, most putting solutions products in our to to experience in processing, United benefits in some acknowledgment of capabilities, facing the Reduction into the market. which today. most the OEMs industry-leading result, validates specialized core recognize a They knocking -- on extensive roll-to-roll of doors. in in renewable significant the and dollars the are be our storage in ramp-up equipment derived of is we Inflation services gives the difficult the solve of energy recently a leading industry in our the us believe history which significance We energy orders increase advantage green

business. opportunities on our are on executing to We plans the capitalizing and grow

the these an most fulfillment businesses the of recent capacity not engineering challenge anticipated and impact fully being seeing R+S already positive manufacturing from orders. from of integrated, Automotive. are our the acquisitions gained We over ease new Despite the

having in energy capacity, facility to Olbrich manufacturing approach allowing Czech when cost highlighted In by our offerings electrode increasing manufacturing brings a Republic. XXX like cells. with solutions addition production portfolio and to of low significant products dry to property to engineers and our the and breadth it and skills, one-stop its us complementary fuel over solutions shopping own hydrogen intellectual comes

Moving Industrial the on to the rest segment. of

year, business. This to North Our had business Solutions of America be retailers outlook the in presents make has orders we competitive the XXXX. from product pace finding a for Warehouse strong largest business to for business keep up -- good to with a continues Similarly, of and In of in development some positive progress the advantages for factory Europe Products R+S constant best of new business anticipated execution products in of to capacity and Identification, a market we today's a services The revenues us our it breed continue the warehouse over on Automotive, XX% added this in of the and in we when and new strong brings when comes this amongst launch systems. basis. of our addition finished automation provider new Identification markets software have currency control our in address. year Product our

process. carbon compared regulations technologies, on our another competitive new this and escape This for will product states increasingly focus to while current product that initiate footprint local VOCs when customers significantly the their during into reducing amount atmosphere more of example, advantage governments be on the emissions. reduces For the as printing yet stringent

million R+S solutions, record automation, of EBITDA identification, Our reported Olbrich includes energy million. warehouse Industrial $XX segment, of product Technologies $XXX sales which and adjusted and

we of ago, the $XXX million To 'XX. believe expect this fiscal be this today segment just could approximately growth had segment revenue. trend in reached you, three We maintain years million remind year, businesses its up that make to in revenue next into $XXX and

ago, better. constant basis you growth businesses to If would be years these compare significantly our were on a to three currency

as We have engine. spoken our these of often growth businesses

clearly are that demonstrating We now.

past normalize. rates performed is poised and normalization the This Moreover, Products higher of several results its the a over has offset very European sales partially modestly revenues death than Memorialization also our was years taking top higher but few these that results next improve the market in ago in in rates. only business Our in the costs. challenges a team expected 'XX. and materially this that results the fourth the to business year-over-year also quarter actions market. organic believe we and fourth Cemetery in taken were maintain reset good just significantly for delivered year. from business lower order in Due of delivered challenges, the 'XX. goodwill years throughout well to expect growth Strong basis segment normalization segment currently particularly situation despite success rates, will SGK, normalized has as We death to a taken level actions on those the that the in EBITDA will will In Cost European casket quarter, quarter. it's the this help unclear the charge is experienced reduction the exceptionally lower beginning when line

continued As to growth. we are expecting we forward consolidated look 'XX,

this cost we absorbed SGK, the taken Europe we have higher business to improve the maintain As our of fastest actions in our businesses our order of during remain the that business. discussed some costs rates for the to these year. year development for we above, high, growing should past expect results in well we Also, throughout in incurring, which the compensate which are businesses. in Memorialization In prices bodes continued overall

currency significant opportunities and particularly is which SGK meet to in addition, in to this economic share translation markets challenging from environments its overall expected competitors client In variable be the market, Europe. a operate The we expand next those performance struggle market are our year. in difficult seeing to demands again as in to environment resulting

We our performance overall expect year. currency impact negatively to again next

be $XXX growth mind, EBITDA despite million and results we fiscal challenging to With factors the between good $XXX our these in environment. 'XX expect million,

our performance, the projections of the orders. possible purposes energy expected our 'XX understanding rates fiscal fiscal The were the we with For would $XX for control by broad deliveries our our fact some driven is of that of do of range for 'XX, higher. projected currency rates not be of if timing EBITDA results million consistent

to we in Technologies possibility of if a clarity, $XXX revenues better as segment, approach we For have to begin performance. this mentioned earlier, Industrial million exceed

throughout our financial it review. over these our Steve orders update I'll to for year. now progress to on hand expect and more We the

Steven Nicola

Slide and Thank I'll morning. Joe, you, with begin X. good

$XXX.X the fourth quarter, XXXX for fiscal the to reported year. fiscal last For million fourth we quarter compared consolidated of $XXX.X million sales

Automotive currency in basis consolidated indicated $XX.X to with earnings XXXX our in constant year, significant rates ago. sales fourth reported higher had a As release were currency million impact acquisitions on last yesterday, GmbH. the Memorialization of sales August unfavorable increase or a quarter a On million, X.X% a growth in fiscal for sales year changes XXXX, of compared impact to our GmbH and acquisitions, current Olbrich approximately ago. R+S and The quarter $XX than occurred Industrial segments which reflected recent sales. added the the in year These Technologies and primarily

the of consolidated same September to GAAP For million, we foreign constant a share $XX.X year. the were unfavorable the reported year-to-date ago. year, $XX XX, basis, company for $X.XX last the per consolidated Changes loss sales last billion of a increase reported of compared to for basis, and billion fiscal million quarter a for per to year of X.X%. a compared compared currency rates $X.XX $X.XX On sales an or of million ended million, or or the XXXX and quarter million respectively, share year loss had in currency On quarter representing net last period year. sales on $X.XX current than or $XX.X $XX.X XXXX, consolidated X.X% $XXX.X same million, impacts $X.X a higher

for we non-cash charge impact primarily result, fourth the or share conditions operating fiscal a per goodwill on a recent $X.XX As SGK in million, $XX.X the results, XXXX quarter. European Brand of impairment of of the segment market Solutions recorded

in with charges continue basis. fiscal to to fiscal these rates. align we particularly we with segment, the were reduction recorded have this structure also response XXXX in current our may results run unfavorably fourth, conditions, sales initiated in XXXX these connection affected in cost further Europe actions Importantly, its a GAAP efforts. actions as have Charges cost for market We in these on better which

of to increases. basis, million material income million which was amortization benefit the For per the On $XX.X the higher ended reported costs quarter taxes, last share compared year. increased XX, costs, labor by increase XXXX adjustments last of $X.XX adjusted The sales for before million, consolidated year higher other or year. income quarter net share per income reflected net expense, September net inflation-related represents the million, cost depreciation fiscal non-GAAP of and $X.X loss a and the the EBITDA, and fourth partially freight other of to adjusted for and interest a $X.XX $XX.X company or XXXX, impacts compared $XX offset

$X.X of year for on impact In unfavorable quarter ago. compared consolidated adjusted current million with EBITDA addition, changes a currency rate had an the

XX, the $X.XX on XX, of For the ended current unfavorable adjusted million. quarter $X.X the EBITDA the quarter Adjusted adjusted consolidated the earnings primarily see earnings $X.XX per constant EBITDA ago. was adjusted a fiscal for Currency company's quarter Interest $X.X to environment. Higher currency year compared adjusted expense for reflecting of the ago. was had reflecting for year quarter, share non-GAAP consolidated Adjusted $X.X year. year per to of share ended September provided increased the adjusted for million consolidated million earnings $X.XX compared the to $X income $X.X decline compared million EBITDA XXXX, a interest fiscal impact adjusted last earnings offset million The a partially ago, year reconciliations higher compared with September current expense $X.XX was the our compared increased a release. million in sales, year fourth rate current changes current year. EBITDA year rate ago. for taxes per Please year an represented for for of to benefit in primarily $XXX.X a by to interest EBITDA the XXXX expense share and was the XXXX

benefit million The of to compared year an basis. $X.X quarter in X increase a contributors and XX, ago, to pretax our had the Growth impact the were current a benefit last to XX%. Slide recent Storage $X.X Please the $X.X $XX for results. for to the Energy income last ago. of of increase. segment the primarily the our were segment year. to of a company's year XXXX, turn acquisitions The sales the than Solutions also begin Industrial a $XXX.X representing current GAAP consolidated a higher ended R+S the year the compared million review segment loss taxes on currency in year-over-year same unfavorable sales on For September compared quarter million for an of of were million of expense rates Technologies business reflected million Changes reported and quarter the current to almost Product the year. Olbrich sales year identification significant

margins contributed decline of year currency Olbrich XXXX XXXX, On the the Industrial last and turn the fiscal than the year. quarter primarily to the cremation fiscal $XXX.X were were Please million segment and to from doubled year. -- Casket increased ended million for million representing $XX.X For million X. than Technologies ago, compared for rates to in R+S. deaths. million or the Slide compared solutions, storage $XXX.X Industrial Technologies in warehouse sales million increased for acquisitions of current fourth quarter year. and COVID-related higher result $XX and the adjusted year-to-date $XX.X memorial year last for increase sales to The Higher basis, segment the unfavorable improved to to current segment's year year reflecting EBITDA the year $XX.X quarter fourth was the a fourth Technologies on a EBITDA inflation. sales related businesses more current quarter $XXX.X for ago, growth pricing sales effects $XXX.X for Adjusted the automation impact The an compared increase current approximately quarter sales Memorialization $XX.X current the quarter million to EBITDA. U.S. in current September the XX, for addition Industrial compared energy Changes ago. of year segment mitigate of product growth for to quarter million adjusted in an to were had unit with sales segment million reflected million identification and a of the cemetery last volumes the lower XX.X%. product a XX% primarily $XX.X

costs quarter as sales ago. ended of compared compared a Memorialization related material by increases. increased impact inflation-related were $XX.X year. XX, September fourth million for segment of higher Memorialization significant higher relatively at fiscal The sales compared offset to unchanged was XXXX, year the unfavorable freight cost ago higher to a as project costs million the last For year $XXX.X adjusted $XX.X EBITDA the effect labor favorable well to other costs, was $XXX million XXXX and year and million

was $XXX.X ended turn the the $XXX.X Slide ago. XXXX, a to XX, segment SGK $XXX.X Brand million million September year for year. compared For adjusted compared million EBITDA year last memorialization to were the current to Please million quarter for XX. Sales $XXX.X Solutions

rate compared constant had the a quarter. quarter $X.X impact segment for basis, improved current on unfavorable of sales the for $XX.X segment year million currency on current million However, Currency changes to sales ago. a the the an

currency $XX.X compared $XX.X a sales improved to however, constant basis, XX, XXXX, million $XX.X decrease reported to On the $XXX.X currency for million impact a last Brand for the Fiscal segment year year, representing the for rate year. $XX.X The For year SGK compared of $X.X adjusted was ago. quarter September full year XXXX ended million of fourth EBITDA million. $XXX.X changes the unfavorable million. sales million segment segment Solutions the was million a the of

unfavorable declines The XXXX, of last For segment mix, costs to and the compared sales sales inflation-related for year increases. September this lower adjusted labor primarily was year. million $XX.X $XX.X impact the XX, other million EBITDA cost ended increased reflected and

by for the million million, XXXX, Please XX, last changes EBITDA operations ago. to compared flow the and rates year-to-date impacts to Slide ended quarter XX. turn $X.X million had and $X.X quarter Cash adjusted compared addition, In September unfavorable respectively, the of was provided on a to year. $XX.X currency $XX period segment's same in million year

company's was the during termination $XX to cash year $XXX.X plan, first XXXX, in principal the connection quarter for to with XX, flow compared year ended contributions September $XXX.X million ago. the settlement. XXXX cash operations Operating of and pension million For by a million fiscal flow planned provided the included

cost quarter to higher fiscal and offset company's impact cash were partially initiatives of strategic trade by company's fiscal of sale debt the facility. the the decreases million inventories, and $XX structure contributions flow Outstanding XX, Net for current the securitized partially from impacted to less be reflected settlement R+S, year. Olbrich which of debt, XX, XXXX the year new debt. related declined charges approximated September higher In $XXX.X fiscal modestly treated to represents the million. XX, at the instead which Outstanding September the of September at addition, of new first as qualified costs sale These XXXX. reduction XXXX million commodity receivables in XXXX. and current receivables under XXXX, debt to which reflecting fourth quarter million $XXX.X compared at The $XX the outstanding was the million plans, facility toward purchase of impacts for and XXXX, approximated receivables of at a cash, the $XXX.X pension June $XXX.X operating debt XX, million the acquisitions the during

company leverage is outstanding XX, $X.X XXXX, in XX leverage at debt. covenant were domestic ratio September on repurchased shares at based Approximately XX.X fourth million. a was XX, the September of XXXX, X.X.The net fiscal at million adjusted on ratio net XXXX Our trailing XXX,XXX during EBITDA, facility based credit our shares quarter, months the cost

of shares $XX.X year, company program. September fiscal approximately of had million. For authorization the at the XX, X.X company current XXXX, shares million million approximately remaining under At the repurchased the a cost X.X

company. since and increase the record open we this stockholders dividend $X.XX to the This XXth concludes payable stock, will Finally, common traded on share consecutive Board company's now XXXX, dividend XXXX. review, financial XX, the call is the to increased December Melissa? the becoming week of XX, November a to dividend questions. per The the quarterly publicly annual representing

Operator

Thank with you. question. Securities. comes proceed [Operator of from with Daniel line the your Instructions] Our CJS question first Please Moore

Daniel Moore

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

Joe Bartolacci

morning. Good

Daniel Moore

embedded obviously little of organic growth of You would through kind guidance? fiscal any really If good gave drill bit, you look 'XX terms as well. maybe on down various the growth at each expectations in helpful a kind the or of we outlook. segments as the look we that's qualitative cadence could, be And for your that of decline of commentary market segments, if in

Joe Bartolacci

first off. in morning, Good that. Dan. do see be Okay, a let's I can with what question, unbundled but to that There's lot

So point Industrial look on energy, years. a especially of to forth. basis, take is currency the constant a be significant. Germany. derived at at reality we also that, the And it some this other materially the most when the right year. our currency about will growth When has look over I is we it been lower at game last least is with relates look at next when very segment, but product of our and in Technologies that out energy clear the so than lower and as We're now revenue identification of business, aspects, The three

business comments, and rate So comments from in the quarter. we in in my some death clearly my segment, We've quarter Technologies said of I standpoint. as When the and normalization our Memorialization at has said organic back in fourth that Industrial occurred in growth seen -- a third and we our Energy our as be look business would good. in

think we modest our European relative out has And going are into in growth. look in we to commentary, of don't performance year, year little no So is we're you in this of currency With happen European would traditionally what a reduction our market, better. There that business you that my what strong we or about impacted, were SGK, be been what next Europe. -- to know expectations EBITDA our got if heard without our not businesses. with contribution And lot. a significantly for reduction business we a going to some as expecting be we're expecting but --

be performance we're expecting some to because to is like our with, our structure lower. we've to overall more have mean, given we're I drop, the of sales we're we're SGK deal to going at that taken. EBITDA going revenue currency So growth, but over but to to organic our be issues there cost have improve us higher the are initiatives going going going actions

geographies. from in in. which business performing But it's mixed bag just look markets on as So are a basis, operating the an It's I we're well. at challenging based overall we

Daniel Moore

still you contribution margins Industrial, and really segment minus those just the up plus in time helpful. of Olbrich fiscal toward about towards million to plan averages road levers That's it down 'XX? on of housekeeping. did contribute kind Drilling pull? to And map revenue kind about What QX? the getting talk just frame for what $XXX Is over or

Steven Nicola

R+S Joe added take for the the of So line. I'll $XX our top million Dan. let the that, acquisitions half to back about But Olbrich, quarter,

Joe Bartolacci

$XX -- me we me you, a does to that for back to was quarter we $XXX it gave not the transparencies on always depending rates million. of let bought million abundantly let So said we tell just and look, going transparent and business currency last plus contribute. then are We or one market minus, the

We overall product capacity are that of lines solution. our we buying and part are are buying

that's capacity. to frankly, the a year walk first. because process we rotary traditional orders from inundated looking Olbrich being is We But for lot business. energy going those capacity can available bought may have guys business is engineers not are do fulfill at orders brought We of are to that. extensive. have world. with engineering I some where we knowledge go orders that an These to is capacity into a next around of that just XXX It's That readily

into that a but of We'll year. and energy on the that probably very business it out contributor ability expecting the or move nice part next lot of business to on on And I'm to a business what is energy whole top capitalizing to their what overall will business good I to there, year a be not deliver address business going side further then of Olbrich from very, a integration able more of going our significant the a to of take to business the year is So significantly, that. think we over be we're have. next it's maybe but

Daniel Moore

And around then on more impact any for the Reduction jump to But Act the dry but you me, Joe, inflation processing more and color specifically, inbound for capabilities. it. can interest alluded you but Got it, out. your last I'll obviously electrode provide generally,

You customers. mentioned multiple

You all expect orders from mainly that they is North if multiple the orders? Europe, into America, that -- customers. over? starting firm translate And Is to inquiries -- are

Joe Bartolacci

stand this understands calls So We've point is not the basically market people. and from where inbound we at it. in just time market, dry new is, our daily it taking the not been a And basis is I'm team sure electrode. on telling

The We is But as time. operating overall a renewable in are with of electrode significantly at its nascent its a at we're looking that at stages fuel hydrogen solution. dealing energy. this are in viable dry which orders cell, we're point development

looking that space is also provider rights market, in print We property different been as have than how and well. it's produced that that of but good photovoltaics. able panel solar Photovoltaics today. as we evolution We're result a a materially rotary occur the intellectual are being basically processing, at a to the can of has

they will be time, we're this going. part electrode So be you to -- not They're where get a at to to significant come, we're that I forward orders. the years of in point to go we magnitude to of going assure dry as mean not going I some but in the

around around bill is years. inquiries in on being and are last literally literally from The misnamed Reduction Inflation energy There United that question we're world, production at most billions world. passed Washington Act. getting the in several thrown in dollars of the States, are hundreds the of your Secondly, the the

in biggest players able from now, this We're will we a to more we new support entrants than talking our X in least to next of are at the battery with with figure be right space, auto challenged all in the development lot -- of with that new out going be other million tell year. I ability we're funding trying these that folks. and revenues we address agreements government to you joint to parts space Some are active the the with to what about have are markets

Now this. put been in -- about it we've to very clear frankly,

of So translate magnanimous I want this -- to kind into projections year. don't into don't next

We we world. than Many that them offer people materially have state never are a battery of figuring solution that of is are out, current is -- but of the those in the battery production many the produced different what yet.

So the where they that is the of behind, largest to players the materially evolution moving they'll relative electrode of down some dry already up. catch are of line are

would 'XX 'XX development in, are they more joint going will these the at result agreements but So be point to and in I of time, call it, orders modest this beyond. orders and

Daniel Moore

back jump All Thank I’ll any And right. with again. follow-ups. you

Operator

B. comes proceed with Please question. you. Thank [Operator with Riley Instructions] Burke Liam Our next question your from the line Securities. of

Liam Burke

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

Joe Bartolacci

Liam. morning, Good

You me. sound like

Liam Burke

feel I good. yeah, but as bad, don’t

Joe Bartolacci

you. Thank

Liam Burke

you've it growth and had et getting look you Has and years act now? trying progressive cetera. What sales management, does normalized? to are last on over growth access like here? several COVID facilities, the fits the Warehouse starts backlog And nice seeing business to

Joe Bartolacci

I are economic -- this put rates mean, barring order cancellations customer that issues way, don't our because of control. it So let's we

continue order bag to be strong target. the the pretty already comfortable Our we're rates to year's that backlog next point and have where they in

to to even start borders good having we're of before growth beyond have we we have look is So that today. it. And this kind there, the continue

players a the with yes, play the small customers. can't market -- I So small in I when that mean, in folks we're comes commentary in you we heard small read who market the our with because like the are I of marketplace some think we names I've list customer we reads it deal to assure with, this, I you best-of-breed but and hoo-zoo.

Liam Burke

the Great. And help offset through guess, margin on memorialization, push increases to we Steve I the price mentioned decline. that

we improvement. margins? as we Can and continue Can continue historic see levels to the expect had to nice to were? year margins what next into You improve sequential a closer that the to get

Joe Bartolacci

That's pricing to recover up did why my respect year of last to recovered expect we've going you're we the cost what we've see year. we the improvement percentage absorbing. that we not remain throughout in as some as pick to So with margin been commentary pricing

in But will as on margin. not that done is of have has So that industry not we cost the margins. improve the passed plus one really things a done whole

see better we're our going is than we've we're the So elsewhere. margins improvement to get we've going where be significant Environmental Solutions had and more to cremation what to going challenges had business, on

get overall So division making our the expect climb, our casketed importantly, performance will entire our I down. profitability in as should that would revenues revenues relatively to more drop, but better, solutions of environmental will that flat modestly cemetery our

Liam Burke

Okay. Joe. you, Thank Great.

Operator

Thank you.

Justin comes of Our question. the Funds. Please Gabelli question with your next Bergner proceed with from line

Justin Bergner

Good everyone. morning,

Joe Bartolacci

morning, Justin. Good

Justin Bergner

I you’re doing Joe well, and hope Steve.

First more you're growth industrial contribution energy in the that Northern question to the growth other the in the fiscal Energy? relates is XXXX coming storage mainly a envisioning and from Is flattish are it businesses from technologies there year. in or

Joe Bartolacci

deliver the of we're The going line, made more out line Justin the for balance -- the on expecting year million those earlier dollar Olbrich roughly of No. next that actually use on comes of good from how addition year top based off, on addition on the That we're of The to to commentary a top $XX significant significant add line Olbrich. first depending adding -- more lot much resources deliver I top that morning. we're will we the elsewhere.

mean very, magnitudes more growing seeing business, orders good given expectation we're very all we to but segments Obviously, the significantly of at -- are delivery. of next the I've magnitude and the need in rates equipment most that's it we piece in will not $XX kind next be it's energy continue year. control say grow do of hope tomorrow. I not that is this do to of year. three control a But our before take million So our our different able I I to to -- have to again, you warned

the -- rates So will are change where to higher recognition what that control. we're will be right about, of revenues it best before a our order It's we year. level deliver. customers here But now ready our ready think timing put numbers our not have in fact of next to that when of that out we're for we been we'll and revenues support the doesn't the seeing guess the the accept talking be and we

Justin Bergner

the then And to orders out million the million $XXX if in variable EBITDA is had major the variability $XXX biggest to so ability revenue in the single to energy to storage? translate you Okay. range,

Joe Bartolacci

basis. I time where $XXX year-over-year year that $XXX said, is a start happen X to at a in we're which That's -- we the That million wondering XX%. COVID is heck's on that, of the you the timing constant question. no if million deliver where the year is on deliver to midpoint, And Yeah, to most of equivalent a the end high talking of prior year. it we But about Justin, stress, deliveries. is if this, our XX% thing that one what think at the a going XXX% I'll relative even $XXX EBITDA about I in Memorialization million, a approach those going currency post growth of we're next to market over business. mean the

Justin Bergner

And trend in the did in technologies XXXX? expected I you up I EBITDA industrial it. close level this are think, continue to for Got to can your those year can the view margins to versus, mean, XX% --

Joe Bartolacci

I actual amount an start to mean, higher when is continuing We're of recognize spending also of expectations still on think fair businesses recognize. income R&D we those I of factors exclude be revenue mean, the of will give yes. amount we perhaps that. and several to there's R&D will timing when in a you we're able margins The recognition develop. and we we to impact spend. all our and The

points development we've spending while here. businesses don't and for to growth research on these a without that get these get -- standpoint been a on to spending businesses from these You

Justin Bergner

on Okay. cell Can a Industrial And give lastly, on opportunity… what's changed to then Technologies. fuel sense big you just hydrogen photovoltaic maybe as – and the better

Joe Bartolacci

panels? how we just about Photovoltaic, say solar

Justin Bergner

I panels, spoken until know you that's haven't something as now. that much Solar about

any just on driving inflecting cell fuel So a the hydrogen to trying drivers if as there's what's to there the as well? get sense inflection

Joe Bartolacci

bought the folks, the buses, a and It cell, as real fuel hydrogen mean The be industry's regard of going think same should the bipolar cell. for product consent with ships plates viability for basically and production company what is trucking, solution a which I fuel some what's overall for coding plate you is we fuel the of for when is for going a at critical the we it's of road it planes solution Inflation those fuel in solution like, show hydrogen Reduction the look bipolar issue to and and the hydrogen we is change believe is cells hydrogen Olbrich also Act. of what the for they alternative is the bipolar discussion you're of In with being said energies to is bipolar pictures whether a cell a viable, or what comes solution industry. looking clearly, that is I those water. processing not we for more called waste today a with a the over the costly can produce your plate, rotary but entry part to the what of plate we

I spending lot factory have announced plate years -- think They engines a several me, of might better money. over heard, Toyota for You a term. cell next fuel hydrogen for the is a bipolar for building in lack excuse of

that has it's will We behind believe to we're curve come lithium but just the Kentucky. the in come, I side. it's think So development -- relative like

Justin Bergner

Okay. Thank you.

Operator

you. Thank

a Please Moore next your of Our question. Securities. is with with question follow-up CJS the from Daniel proceed line

Daniel Moore

I of correct? the that referring that side, bit would on of following Olbrich given believe industrial expansion just excluding assume into housekeeping, margins business. Is that the industrial little flow that will on but Thank that a you're you. impact I margin discussion piece the the on Again, of the up to be

Joe Bartolacci

I correct. done is a they've sales trade. earlier, done very occur attended just That where to going has correct. to I decisions. have able Olbrich we're -- is that some the team successful That of shows we been mean lot trade a The job equipment to on unfortunate Yeah. like are the of some make said a as wonderful

land So need for coming the Unfortunately, where hands all to either the down on orders if some first out time going since on side COVID start -- energy started, to we and of these that's turned we we out see be rates pushed we other or deck. when great that. of have order

Daniel Moore

Yeah.

shoes avoid Just that on wanted modeling would any to sure and make to that. expectations our

Joe Bartolacci

please, hammer Yes, with both. don't us

Daniel Moore

it. again. was right. All Thanks That

Joe Bartolacci

Okay.

Steven Nicola

Thank you.

Operator

you. comments. Thank session. turn that concludes Wilson I'll gentlemen, question-and-answer our any Ladies final the and floor Mr. back for to

Bill Wilson

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

For rest you you, the visit enjoy your company, directly. day. or any website I me Thank our the and additional information of contact encourage to about

Operator

This you. conference. Thank today's concludes

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

Matthews International (MATW) 18 Nov 222022 Q4 Earnings call transcript