PITTSBURGH, July 23 /PRNewswire-FirstCall/ -- Matthews
International Corporation (NASDAQ:MATW) today announced earnings
for the fiscal quarter ended June 30, 2009. Net income for the
Company's fiscal 2009 third quarter was $18,068,000, representing
earnings per share of $0.60. The fiscal 2009 third quarter results
included net unusual charges of approximately $1.3 million
(pre-tax), or $0.03 per share. Unusual items for the current
quarter primarily consisted of charges related to the consolidation
of certain production operations within the Company's Bronze
segment and costs related to operational and systems improvements
in certain of the Company's other businesses, net of favorable
changes in certain asset values resulting from current market
conditions. Fiscal 2009 third quarter earnings also included the
favorable effect of an adjustment of $0.01 per share, primarily
related to changes in the estimated tax accruals for open tax
periods. Net income for the quarter ended June 30, 2008 was
$21,378,000, or $0.69 per share. Sales for the quarter ended June
30, 2009 were $192,047,000, compared to $219,270,000 in the same
quarter a year ago. Third quarter sales for the current fiscal year
included the impact of the Company's acquisition in May 2008 of
Saueressig GmbH & Co. KG ("Saueressig"). Saueressig reported
sales of approximately $26,600,000 for the fiscal 2009 third
quarter, compared to $17,800,000 for the period from the
acquisition date (May 2008) through June 30, 2008. Operating profit
for the three months ended June 30, 2009 was $29,810,000. Operating
profit for the fiscal 2009 third quarter included approximately
$2.1 million of the net unusual charges noted above. Operating
profit was $36,734,000 for the same period last year. Changes in
foreign currency values against the U.S. dollar were estimated to
have an unfavorable impact of approximately $14,300,000 and
$1,900,000, respectively, on the Company's sales and operating
profit compared to the quarter ended June 30, 2008. Net income for
the nine months ended June 30, 2009 was $42,099,000, representing
earnings per share of $1.38. The year-to-date fiscal 2009 results
included unusual charges of approximately $13.2 million (pre-tax),
or $0.28 per share. Unusual charges primarily consisted of
severance and other costs related to the consolidation of certain
production operations within the Company's Bronze segment, costs
related to operational and systems improvements in certain of the
Company's other businesses, and asset adjustments resulting from
current market conditions. In addition, fiscal 2009 earnings
included the favorable effect of adjustments of $0.04 per share to
income tax expense. These adjustments related to the Company's
ability to utilize a European tax loss carryover generated in prior
years and changes in the estimated tax accruals for open tax
periods. Net income for the nine months ended June 30, 2008 was
$59,092,000, or $1.90 per share. Fiscal 2008 earnings included the
favorable effect of a one-time adjustment of $0.06 per share to
income tax expense recorded in the Company's fiscal 2008 first
quarter. This adjustment represented the impact on deferred income
taxes resulting from certain income tax rate reductions in Europe.
Sales for the nine months ended June 30, 2009 were $580,695,000,
compared to $599,445,000 in the same period last year. The
reduction in consolidated sales reflected the impact of the current
recession on unit volumes and selling prices in the Company's
Memorialization and Brand Solutions businesses, a decline in the
casketed death rate compared to the same period last year, and
unfavorable changes in foreign currency values against the U.S.
dollar. These declines were partially offset by the impact of the
acquisition of Saueressig. Saueressig reported sales of
approximately $76,800,000 for the first nine months of fiscal 2009,
compared to $17,800,000 for the period from the acquisition date
(May 2008) through June 30, 2008. Operating profit for the nine
months ended June 30, 2009 was $73,328,000. Fiscal 2009 operating
profit included approximately $12.8 million of the unusual charges
noted above. Operating profit was $97,904,000 for the same period
last year. Changes in foreign currency values against the U.S.
dollar were estimated to have an unfavorable impact of
approximately $28,400,000 and $3,600,000, respectively, on the
Company's year-to-date sales and operating profit compared to the
nine months ended June 30, 2008. In discussing the Company's
results for the current fiscal year, Joseph C. Bartolacci,
President and Chief Executive Officer, stated: "The three months
ended June 30, 2009 was another challenging quarter for Matthews.
In addition to the impact of the current recession on the revenues
for most of our businesses, unit volumes in our Memorialization
businesses were further affected by a decline in the casketed death
rate in many of the territories that we serve, compared to a year
ago." "Sales and operating profits in our Bronze and Casket
segments were lower than a year ago, reflecting a decline in unit
volume and an unfavorable change in product mix, compared to the
third quarter and year-to-date periods last year. In our Brand
Solutions businesses, excluding the impact of the Saueressig
acquisition, sales and operating profits in each of these segments
also declined, reflecting the impact of the recession. A number of
projects were delayed or cancelled by customers as a result of the
current economic conditions." Mr. Bartolacci further stated:
"Although the operating results for the most recent quarter did not
meet our long-term growth objectives, our performance demonstrates
the stability of Matthews in difficult economic circumstances.
Compared to earnings per share of $0.69 in the third quarter last
year, we posted earnings per share for the current quarter of
$0.60, which included net unusual charges of $0.03 per share, a
one-time tax benefit of $0.01 per share and an unfavorable change
in currency values of $0.03 per share." "The predictability of our
results in the near-term remains difficult in this environment and,
as such, we continue to remain very cautious. However, I am
encouraged by the actions that our business leaders are continuing
to take to mitigate the impact of the decline in revenues. Although
the unusual charges associated with these actions have impacted
profitability in the short-term, these steps, as well as other cost
reduction initiatives, should provide long-term benefits to
Matthews as the economy recovers. In addition, despite the current
economic climate, the profitability of Saueressig continued to
improve during the quarter as a result of their recent cost
structure initiatives." The Board of Directors of Matthews
International Corporation also declared at its regularly scheduled
meeting today a dividend of $0.065 per share on the Company's
common stock for the quarter ended June 30, 2009. The dividend is
payable August 18, 2009 to stockholders of record August 4, 2009.
Matthews International Corporation, headquartered in Pittsburgh,
Pennsylvania, is a designer, manufacturer and marketer principally
of memorialization products and brand solutions. Memorialization
products consist primarily of bronze memorials and other
memorialization products, caskets and cremation equipment for the
cemetery and funeral home industries. Brand solutions include
graphics imaging products and services, marking products, and
merchandising solutions. The Company's products and services
include cast bronze memorials and other memorialization products;
caskets; cast and etched architectural products; cremation
equipment and cremation-related products; mausoleums; brand
management; printing plates and cylinders, pre-press services and
imaging services for the primary packaging and corrugated
industries; marking and coding equipment and consumables, and
industrial automation products for identifying, tracking and
conveying various consumer and industrial products, components and
packaging containers; and merchandising display systems and
marketing and design services. Any forward-looking statements
contained in this release are included pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown
risks and uncertainties that may cause the Company's actual results
in future periods to be materially different from management's
expectations. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove correct.
Factors that could cause the Company's results to differ materially
from the results discussed in such forward-looking statements
principally include changes in economic conditions, competitive
environment, death rate, foreign currency exchange rates, and
technological factors beyond the Company's control. MATTHEWS
INTERNATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (Unaudited) (In Thousands, except Share Data)
Three Months Ended Nine Months Ended 6/30/08 6/30/09 6/30/08
6/30/09 Sales $219,270 $192,047 $599,445 $580,695 ----- --------
-------- -------- -------- Operating Profit 36,734 29,810 97,904
73,328 ---------------- ------ ------ ------ ------ Income before
Taxes 33,571 27,554 90,811 63,988 ------------------- ------ ------
------ ------ Income Taxes 12,193 9,486 31,719 21,889 ============
====== ===== ====== ====== Net Income $21,378 $18,068 $59,092
$42,099 ---------- ------- ------- ------- ------- Earnings per
Share $0.69 $0.60 $1.90 $1.38 ------------------ ----- ----- -----
----- Weighted Average Shares 31,041,113 30,222,110 31,085,134
30,503,758 ================ ========== ========== ==========
========== Note: Earnings for the third quarter and first nine
months of fiscal 2009 included net pre-tax unusual charges of
approximately $1.3 million ($0.03 per share) and $13,200,000 ($0.28
per share), respectively, which primarily consisted of severance
and other costs related to the consolidation of certain production
operations within the Company's Bronze segment, costs related to
operational and systems improvements in certain of the Company's
other businesses, and asset adjustments resulting from current
market conditions. In addition, third quarter and year-to-date
fiscal 2009 earnings included the favorable effect of adjustments
of $0.01 and $0.04 per share, respectively, to income tax expense.
Earnings for the first nine months of fiscal 2008 included the
favorable effect of a one-time adjustment of $0.06 per share to
income tax expense. This adjustment represented the impact on
deferred income taxes resulting from certain income tax rate
reductions in Europe. DATASOURCE: Matthews International
Corporation CONTACT: Steven F. Nicola, Chief Financial Officer,
Secretary & Treasurer of Matthews International Corporation,
+1-412-442-8262 Web Site: http://www.matw.com/
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