Matthews International Announces First Quarter Earnings and Declares Quarterly Dividend
January 21 2010 - 4:30PM
PR Newswire (US)
PITTSBURGH, Jan. 21 /PRNewswire-FirstCall/ -- Matthews
International Corporation (NASDAQ:MATW) today announced earnings
for the fiscal quarter ended December 31, 2009. Net income
attributable to the Company was $12,996,000 for the fiscal 2010
first quarter, compared to $11,289,000 for the first three months
of fiscal 2009. Earnings per share for the fiscal 2010 first
quarter were $0.43 per share, compared to $0.37 per share for the
same quarter a year ago. The prior year first quarter results
included unusual charges of approximately $6,600,000 (pre-tax), or
$0.14 per share, which primarily consisted of costs related to the
consolidation of certain production operations within the Company's
Bronze segment, cost structure initiatives in certain of the
Company's other businesses and certain asset adjustments. In
addition, earnings for the first quarter a year ago included the
favorable effect of a one-time adjustment of $0.03 per share to
income tax expense related to the Company's ability to utilize a
European tax loss carryover generated in prior years. Sales for the
quarter ended December 31, 2009 were $192,973,000, compared to
$191,286,000 in the same quarter a year ago. The increase in sales
was principally attributable to the impact of recent acquisitions
and the favorable impact of changes in foreign currency rates.
Excluding these factors, sales were lower than the first quarter a
year ago, mainly attributable to the continued weakness in the
domestic economy, unfavorably affecting unit volumes and product
mix. In addition, the estimated casketed death rate was also lower
than the same quarter last year. Operating profit for the three
months ended December 31, 2009 was $22,176,000, compared to
$20,079,000 in the same quarter a year ago. Operating profit for
the fiscal 2009 first quarter included approximately $5,800,000 of
the unusual charges noted above. Changes in foreign currency values
against the U.S. dollar were estimated to have a favorable impact
of approximately $6,200,000 and $600,000, respectively, on the
Company's sales and operating profit compared to the quarter ended
December 31, 2008. In addition, changes in pension expense had an
unfavorable impact of $1,300,000 (approximately $0.03 per share) on
current period operating results compared to the first fiscal
quarter last year. In discussing the Company's results for the
quarter, Joseph C. Bartolacci, President and Chief Executive
Officer, stated: "I am pleased to report that the Company's
operating results for the fiscal 2010 first quarter were slightly
ahead of our internal expectations. Excluding unusual charges and
the one-time tax benefit from last year's results, fiscal 2010
first quarter earnings were lower than the first quarter of fiscal
2009. However, in the first quarter a year ago, we had not yet
experienced the full effect of the economic decline. As such, our
expectations for the current quarter were tempered by the earnings
trend of the last three fiscal quarters. Going forward, we expect
these comparables to improve. In addition, the results for the
current quarter were achieved despite an increase in pension cost
(non-cash) of approximately $0.03 per share. In the Memorialization
group, sales for our Bronze and Casket businesses were lower than a
year ago, reflecting declines in unit volume (excluding
acquisitions) and an unfavorable shift in product mix as some
customers continued to trend toward lower-priced products. In
addition, the casketed death rate was lower in many of the markets
that we serve. As a result, operating profit for both of these
businesses declined from a year ago (excluding unusual charges).
First quarter sales and operating profit for the Cremation segment
increased from last year, primarily resulting from higher sales of
cremation equipment and the favorable impact of the acquisition of
a small European cremation equipment manufacturer in fiscal 2009.
In the Brand Solutions group, our Graphics Imaging segment reported
an increase in sales and operating profit in the current quarter
compared to last year. Although the segment's U.S. and U.K.
businesses continue to be negatively impacted by the current
recession, the segment benefited from stability in its German
businesses, including improved results from its Saueressig
operation. Saueressig reported generally break-even operating
results a year ago. The sales of this operation have also been
negatively impacted by the economy, but its profitability has
improved as a result of cost-reduction initiatives implemented over
the past 18 months. Sales and operating profits (excluding unusual
charges) for our Markings Products and Merchandising Solutions
businesses were also lower than a year ago. Orders rates for these
businesses continued to be inconsistent in this economic
environment, but have shown intermittent signs of improvement
recently." Mr. Bartolacci further stated: "I believe the current
market conditions will continue to be challenging for most of our
businesses. As such, we will continue to internally stress the
importance of discipline on cost structure relative to revenue run
rates. In November 2009, we indicated that, despite the increase in
pension expense of $5.1 million ($0.11 per share), our earnings for
fiscal 2010 were expected to be at a level relatively consistent
with fiscal 2009 earnings, excluding unusual items. This projection
contemplated that results of interim periods would improve relative
to the comparable prior period as fiscal 2010 progresses. Based on
the results for the fiscal 2010 first quarter and our current
projections for the fiscal year, we are maintaining our guidance at
this time." The Board of Directors of Matthews International
Corporation also declared at its regularly scheduled meeting today
a dividend of $0.07 per share on the Company's common stock for the
quarter ended December 31, 2009. The dividend is payable February
15, 2010 to stockholders of record February 1, 2010. 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
December 31 2009 2008 ==== ==== Sales $192,973 $191,286 -----
-------- -------- Operating Profit 22,176 20,079 ----------------
Income before taxes 21,334 16,316 ------------------- Income Taxes
7,678 5,036 ------------ Net Income 13,656 11,280 ----------
Non-controlling interests (660) 9 ------------------------- ----
Net income attributable to Matthews $12,996 $11,289
----------------------------------- ------- ------- Earnings per
Share - Diluted $0.43 $0.37 ---------------------------- Weighted
Average Shares - Diluted 30,189,047 30,554,071
================================= ==== ==== Note: The fiscal 2009
first quarter results included unusual charges of approximately
$6,600,000 (pre-tax), or $0.14 per share, which primarily consisted
of costs related to the consolidation of certain production
operations within the Company's Bronze segment, cost structure
initiatives in certain of the Company's other businesses and asset
adjustments. In addition, earnings for the fiscal 2009 first
quarter included the favorable effect of a one-time adjustment of
$0.03 per share to income tax expense related to the Company's
ability to utilize a European tax loss carryover generated in prior
years. DATASOURCE: Matthews International Corporation CONTACT:
Steven F. Nicola, Chief Financial Officer, Secretary &
Treasurer, Matthews International Corporation, +1-412-442-8262 Web
Site: http://www.matw.com/
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