Matthews International Corp (MATW) 2024 Q3 法說會逐字稿

Greetings, and welcome to Matthews International third-quarter fiscal 2024 financial results conference call.

您好，歡迎您參加 Matthews International 2024 財年第三季財務業績電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Mr. Bill Wilson, Senior Director, Corporate Development.

現在我很高興向您介紹東道主比爾威爾森先生，他是企業發展高級總監。

Thank you.

謝謝。

Mr. Wilson, you may begin.

威爾遜先生，您可以開始了。

Thank you, Rancho, and good morning, everyone.

謝謝你，蘭喬，大家早安。

And welcome to the Matthews International third-quarter fiscal year 2024 conference call.

歡迎參加 Matthews International 2024 財政年度第三季電話會議。

This is Bill Wilson, Senior Director of Corporate Development.

我是比爾‧威爾遜，企業發展資深總監。

With me today are Joe Bartolacci, President and Chief Executive Officer; and Steve Nicola, our Chief Financial Officer.

今天與我在一起的有總裁兼執行長喬‧巴托拉奇 (Joe Bartolacci)；和我們的財務長史蒂夫·尼古拉。

Before we start, I’d like to remind you that our earnings release was posted on our website, www.matw.com, in the Investors section last night.

在開始之前，我想提醒您，我們的收益報告已在昨晚發佈在我們網站 www.matw.com 的投資者部分。

The presentation for our call can also be accessed in the Investors section of the website under presentations.

我們的電話會議演示也可以在網站的投資者部分的演示下訪問。

Any forward-looking statements in connection with this discussion are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

與本次討論相關的任何前瞻性陳述均根據 1995 年《私人證券訴訟改革法案》的安全港條款作出。

Factors that could cause the company's results to differ from those discussed today are set forth in the company's Annual Report on Form 10-K and other public filings with the SEC.

本公司向 SEC 提交的 10-K 表格年度報告和其他公開文件中列出了可能導致公司業績與今天討論的結果不同的因素。

In addition, we will be discussing non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics.

此外，我們將討論非公認會計準則財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的揭露和調節表。

In connection with any forward-looking statements and non-GAAP financial information, please read the disclaimer included in today's presentation materials located on our website.

關於任何前瞻性陳述和非公認會計準則財務信息，請閱讀我們網站上今天演示材料中包含的免責聲明。

And now I'll turn the call over to Joe.

現在我將把電話轉給喬。

Thank you, Bill.

謝謝你，比爾。

Good morning.

早安.

Despite encountering challenges in our Industrial Technology segment, we were pleased with the results of the remainder of our businesses.

儘管我們的工業技術領域遇到了挑戰，但我們對其餘業務的表現感到滿意。

Consolidated sales and adjusted EBITDA declined on a year-over-year basis, primarily due to ongoing customer delays of shipments and installations for our energy storage products.

合併銷售額和調整後 EBITDA 年比下降，主要是因為客戶持續延遲我們儲能產品的出貨和安裝。

Also slow market conditions in the warehouse automation business continued during the quarter and represented a smaller part of the overall decline in auto in our Industrial Technologies segment.

此外，倉庫自動化業務的市場狀況在本季持續緩慢，在我們工業技術部門的汽車整體下滑中所佔的比例較小。

Our Memorialization segment reported another solid quarter on a year-over-year basis, especially when you consider that the U.S. casketed deaths declined mid-single digits during the quarter, although memorial and casket volumes were down improved pricing and modular OEM sales offset much of the decline.

我們的紀念部門報告了與去年同期相比又一個穩定的季度，特別是當你考慮到美國棺材死亡人數在本季度下降了中個位數時，儘管紀念館和棺材數量下降了定價的提高和模組化OEM 銷售抵消了大部分下降。

Also a small acquisition completed earlier in fiscal 2024 contributed favorably to the favorably to the segment's results.

此外，2024 財年稍早完成的一項小型收購也對該部門的業績做出了積極貢獻。

Although it is early, we saw improved volumes and good product mix through the month of July, which should allow the business to finish the year strong.

儘管現在還為時過早，但我們在 7 月看到了銷量的改善和良好的產品組合，這應該會讓該業務在今年結束時表現強勁。

As stated in the past, this segment is normalized post-COVID at a performance which is significantly higher than pre-COVID.

如過去所述，該細分市場在新冠疫情後已實現正常化，其表現明顯高於新冠疫情前。

SGK continued to demonstrate stable top line growth with another good quarter, quarterly performance benefiting from continued improvement in the pricing environment and cost reduction actions.

SGK 持續展現穩定的營收成長，季度業績表現良好，得益於定價環境的持續改善和成本削減行動。

SGK's growth, also drew from a more buoyant private label market and increased activity in the European packaging market.

SGK 的成長也得益於更活躍的自有品牌市場以及歐洲包裝市場活動的增加。

A welcome sign, which we hope will continue as UK has won several significant new accounts over the last several quarters, driven by greater market differentiation through automation and technological solutions, which have been which have begun to implement, which we have begun to implement, and which are being well received by our clients.

這是一個值得歡迎的跡象，我們希望這一跡象能夠繼續下去，因為英國在過去幾個季度贏得了幾個重要的新客戶，這是透過自動化和技術解決方案實現更大的市場差異化推動的，這些解決方案已經開始實施，我們也已經開始實施，並受到我們客戶的好評。

Assuming market conditions remain consistent, dispositions is positioned for continued improvement in fiscal 2025.

假設市場狀況保持一致，配置將在 2025 財年持續改善。

Additionally, our e-commerce digital initiative continues to deliver positive results, and we expect to exceed the $40 million sales target we set earlier in the fiscal year.

此外，我們的電子商務數位計畫繼續取得積極成果，我們預計將超過本財年早些時候設定的 4,000 萬美元銷售目標。

This represents an area of focus and opportunity for us that our clients are looking for ways to consolidate their e-commerce marketing spend, and we are well positioned to cost-effectively deliver that solution.

這對我們來說是一個重點領域和機會，我們的客戶正在尋找整合其電子商務行銷支出的方法，而我們有能力以經濟高效的方式提供該解決方案。

With respect to our industrial technology segment, total sales were lower for the quarter, primarily driven by continued customer delays of shipments and installations of energy storage equipment.

就我們的工業技術部門而言，本季總銷售額較低，主要是由於客戶持續延遲儲能設備的出貨和安裝。

It is important to note that the particularly strong quarter that was reported last year resulting from the nature and timing of the revenue reported last year.

值得注意的是，去年報告的季度表現尤其強勁，這是由於去年報告的收入的性質和時間安排所致。

The higher margin revenue recognized last year reflected the high value portion of the energy storage order announced last year.

去年確認的較高利潤率收入反映了去年宣布的儲能訂單的高價值部分。

The higher margin is attributable to the proprietary nature of our engineered solution, which was predominantly design and engineering services last year.

較高的利潤率歸因於我們工程解決方案的專有性質，去年主要是設計和工程服務。

The time, the timing and nature of last year's revenue recognition makes for a more difficult comparison this year.

去年收入確認的時間、時機和性質使得今年的比較變得更加困難。

Third quarter warehouse automation results were down consistent with industry trends and users continued to delay placing orders as confirmed by industry data and likely related to the higher interest rate environment.

第三季倉庫自動化業績下降，與產業趨勢一致，用戶持續延後下訂單，產業數據證實，這可能與較高的利率環境有關。

With that said, we do see quoting activity picking up and believe that we have hit the bottom of this slowdown as indication of the recovery begin to appear.

話雖如此，我們確實看到報價活動有所回升，並相信隨著復甦跡象開始出現，我們已經觸底。

Product identification revenues for the third quarter were flat year over year, though we are expecting a strong finish to the year, consistent with our focus on constant innovation, we are expanding our portfolio in this business with the launch of a new line of laser products in August, launch of our laser system is designed for marking and coding and consumer packaged goods and together with our new print head technology, will further develop our strategy of attacking this $2 billion market opportunity with innovative superior solutions.

第三季的產品識別收入與去年同期持平，儘管我們預計今年將有強勁的收官，與我們對持續創新的關註一致，我們正在透過推出新的雷射產品系列來擴大我們在該業務中的產品組合八月份，我們推出了專為標記和編碼以及消費包裝商品而設計的激光系統，與我們的新型打印頭技術一起，將進一步發展我們的戰略，以創新的卓越解決方案來迎接這個20 億美元的市場機會。

Regarding a new printing technology, we are still on track for a launch and early next year.

關於新的印刷技術，我們仍有望在明年初推出。

Our strategy is to continue to develop on this new and disruptive solution, which expands the market opportunity areas which we currently do not serve.

我們的策略是繼續開發這種新的顛覆性解決方案，從而擴大我們目前不服務的市場機會領域。

With respect to our energy business, as I'm sure you are aware, Tesla recently filed a suit attempting to restrict us from selling our dry battery electrode equipment solutions to other companies and alleging that we have misappropriated unidentified trade secrets, resulting in significant damages.

關於我們的能源業務，相信大家都知道，特斯拉最近提起訴訟，試圖限制我們向其他公司出售我們的干電池電極設備解決方案，並指控我們盜用不明商業秘密，造成重大損失。

Our position with respect to the lawsuit remains clear, firm and unchanged.

我們對該訴訟的立場仍然明確、堅定且沒有改變。

This is an effort by Tesla to bully us and force us to transfer our highly valuable proprietary technology to them by undue pressure.

這是特斯拉欺負我們的行為，透過不正當的壓力迫使我們將非常有價值的專有技術轉移給他們。

We have been offering various engineered solutions in the battery industry since 1998 for some of the largest companies in the world.

自 1998 年以來，我們一直在為世界上一些最大的公司提供電池行業的各種工程解決方案。

We produced the first dry battery electrode equipment and converted lithium rich powder to film and applied it to aluminum and copper foils to produce the first dry battery electrode before ever having any discussions, let alone orders from Tesla.

我們生產了第一個乾電池電極設備，將富鋰粉末轉化為薄膜，並將其應用到鋁箔和銅箔上，產生第一個乾電池電極，這之前沒有任何討論，更不用說特斯拉的訂單了。

Tesla sought us out due to our well-established industry leading knowledge.

特斯拉之所以選擇我們，是因為我們擁有完善的產業領先知識。

Our technology provides battery producers, significant reductions in capital and operating expenses, and our multiyear head-start makes us the go-to company when it comes to the equipment needed to produce dry battery electrode.

我們的技術為電池生產商提供了顯著降低資本和營運費用的服務，而我們多年的領先優勢使我們成為生產乾電池電極所需設備的首選公司。

This is a capability that we have developed, marketed and commercialized for over 25 years through relationships with some of the earliest innovators in battery development.

這是我們透過與一些最早的電池開發創新者的合作超過 25 年開發、行銷和商業化的能力。

During that time, we have accumulated extensive know-how and IP on battery equipment in general and in particular, dry battery electrode equipment, which has led to the groundbreaking energy storage capabilities.

在此期間，我們在一般電池設備，特別是乾電池電極設備方面累積了廣泛的專業知識和智慧財產權，從而實現了突破性的儲能能力。

Thus, we remain confident we will prevail in this meritless lawsuit and the entire global industry will benefit from our tremendously valuable technology.

因此，我們仍然有信心在這場毫無根據的訴訟中獲勝，整個全球產業將從我們極其寶貴的技術中受益。

As for the impact of the lawsuit on our business, legal fees are having an impact on our SG&A costs.

至於訴訟對我們業務的影響，法律費用對我們的銷售管理費用產生了影響。

But as stated earlier, we continue to drive industry wide interest in our technology.

但如前所述，我們將繼續推動業界對我們的技術的廣泛興趣。

We continue to take orders for DBE equipment and production lines from the largest global battery manufacturers and automotive OEMs.

我們繼續從全球最大的電池製造商和汽車原始設備製造商那裡獲得 DBE 設備和生產線的訂單。

We are extremely confident in the Company's ongoing ability to produce and sell DBE manufacturing equipment.

我們對公司持續生產和銷售 DBE 製造設備的能力充滿信心。

And we continue to make significant advancements in the technology, improving its efficacy and its speed.

我們繼續在技術方面取得重大進步，提高其功效和速度。

Many have asked how did we get into this business?

很多人問我們是如何進入這個行業的？

It was not an accident.

這並非意外。

Our intellectual property is built on a platform of innovation, especially in the case of our energy business.

我們的智慧財產權建立在創新平台之上，尤其是在我們的能源業務方面。

For years, we have taken activities done in batches such as stamping or pressing and designed equipment to perform these actions and continuous process using roles or calendaring equipment.

多年來，我們採取了批量進行的活動，例如沖壓或壓制，並設計了執行這些操作的設備以及使用角色或壓延設備的連續過程。

These highly engineered calendars play a critical role in the DBE process.

這些精心設計的日曆在 DBE 流程中發揮關鍵作用。

One final piece of clean energy news.

最後一則清潔能源新聞。

As further evidence of our roll to roll process know-how, we were recently awarded Department of Energy cooperative agreement together with General Motors, Neo graft solutions and others for the development of hydrogen fuel cells.

作為我們卷對卷製程技術的進一步證明，我們最近與通用汽車、Neoraft Solutions 和其他公司一起獲得了能源部合作協議，以開發氫燃料電池。

Ground is to fund advancements in the production of fuel cell stacks with inexpensive graphite bipolar plate that will materially reduce the cost of fuel cells.

地面資金將用於資助採用廉價石墨雙極板的燃料電池堆生產的進步，這將大大降低燃料電池的成本。

The hydrogen market is still in its infancy.

氫市場仍處於起步階段。

But as we have done in the past, we are at the forefront of this developing technology, and we are operating with some of the leading companies in the world.

但正如我們過去所做的那樣，我們處於這項開發技術的最前沿，並且我們正在與世界上一些領先的公司合作。

Finally, in our earnings release, we mentioned plans to initiate a cost reduction program in the fourth quarter spanning several of our business units as well as our corporate functions.

最後，在我們的收益報告中，我們提到計劃在第四季度啟動涵蓋我們多個業務部門以及公司職能部門的成本削減計劃。

We are targeting up to $50 million in annual cost savings with the bulk to be driven by changes in our engineering and tooling operations in Europe.

我們的目標是每年節省高達 5000 萬美元的成本，其中大部分是由我們在歐洲的工程和模具業務的變化所推動的。

You may recall that after announcing the acquisition of Albert in the fourth quarter of fiscal 2022, we communicated our intention to extract savings once an agreement was reached with over to the union in Germany.

您可能還記得，在 2022 財年第四季宣布收購 Albert 後，我們表示，一旦與德國工會達成協議，我們將節省開支。

We believe this is the right time to take this action and that it positions our business to capitalize on future growth opportunity opportunities while making albeit a significant contributor to our overall portfolio.

我們相信現在是採取這項行動的正確時機，它使我們的業務能夠利用未來的成長機會，同時為我們的整體投資組合做出重要貢獻。

In addition, a significant portion of the savings comes from the reduction of corporate overhead resulting from years of planning and implementation of a global business services function, which capitalizes on our SAP backbone.

此外，很大一部分節省來自公司管理費用的減少，這是由於多年規劃和實施全球業務服務功能而產生的，該功能利用了我們的 SAP 骨幹。

These actions are expected to span the next two fiscal years, but the majority of the cost savings will be achieved next year.

這些行動預計將持續未來兩個財年，但大部分成本節約將在明年實現。

With respect to our balance sheet, as we have, as we have outlined at the beginning of the fiscal year, we are laser focused on reducing our outstanding debt.

就我們的資產負債表而言，正如我們在本財年年初概述的那樣，我們專注於減少未償債務。

With that in mind, through another quarter of good cash flow management, we reduced our debt by $13 million and planned further reductions through year end.

考慮到這一點，透過另一個季度的良好現金流管理，我們減少了 1,300 萬美元的債務，並計劃在年底進一步減少債務。

Additionally, we are on track to refinance our outstanding bond by fiscal year end.

此外，我們預計在財政年度結束前為未償債券進行再融資。

As we approach fiscal year end, we expect energy storage shipments and installation in orders for warehouse automation to pickup in the fourth quarter and into fiscal 2025.

隨著財年末的臨近，我們預計倉庫自動化訂單中的儲能出貨量和安裝量將在第四季和 2025 財年有所回升。

Memorialization and SGK should be in line with last year's results and provide a solid foundation for growth.

紀念和SGK應該與去年的結果一致，並為成長提供堅實的基礎。

As a result, we project adjusted EBITDA for fiscal 2024 to be in the range of $205 million to $210 million.

因此，我們預計 2024 財年調整後 EBITDA 將在 2.05 億美元至 2.1 億美元之間。

I'll now turn the call over to Steve for more insight on our financial results.

我現在將把電話轉給史蒂夫，以獲取有關我們財務業績的更多見解。

Thank you, Joe. Good morning.

謝謝你，喬。早安.

Let's begin with Slide 7 for the fiscal 2024 third quarter net income attributable to the Company was $1.8 million or $0.06 per share compared to $8.7 million or $0.28 per share a year ago.

讓我們從投影片 7 開始，2024 財年第三季歸屬於公司的淨利為 180 萬美元，即每股 0.06 美元，而一年前為 870 萬美元，即每股 0.28 美元。

On a non-GAAP adjusted basis, earnings for the current quarter were $0.56 per share compared to $0.74 per share last year.

在以非公認會計準則調整後的基礎上，本季每股收益為 0.56 美元，而去年為每股 0.74 美元。

The impacts of lower consolidated adjusted EBITDA and higher interest expense were partially offset by income tax benefits for the current quarter.

較低的綜合調整後 EBITDA 和較高的利息支出的影響被本季度的所得稅優惠部分抵消。

Consolidated sales for the fiscal 2020 for third quarter were $427.8 million compared to $471.9 million a year ago.

2020 財年第三季的綜合銷售額為 4.278 億美元，去年同期為 4.719 億美元。

Our largest businesses, memorialization and SGK Brand Solutions continued to perform relatively well for the quarter as the consolidated sales decrease primarily reflected the decline for the industrial technology segment.

我們最大的業務、紀念活動和 SGK 品牌解決方案在本季持續表現相對良好，因為綜合銷售額的下降主要反映了工業技術領域的下滑。

Sales for the SGK Brand Solutions segment were modestly higher than a year ago, primarily reflecting increased sales for the European packaging business and in the private label market, sales for the Memorialization segment for the current quarter remained relatively steady compared to a year ago, reporting only a modest decline despite lower unit volumes related to a decrease in US casketed deaths.

SGK 品牌解決方案部門的銷售額略高於去年同期，主要反映了歐洲包裝業務和自有品牌市場銷售額的增長，報告稱，本季度紀念部門的銷售額與去年同期相比保持相對穩定儘管單位數量減少與美國棺材死亡人數減少有關，但僅略有下降。

The decline for the industrial technology segment primarily reflected lower sales for its engineering and warehouse automation businesses.

工業技術部門的下滑主要反映了其工程和倉庫自動化業務的銷售下降。

Consolidated adjusted EBITDA for the fiscal 2024 third quarter was $44.7 million compared to $56.2 million a year ago.

2024 財年第三季合併調整後 EBITDA 為 4,470 萬美元，而去年同期為 5,620 萬美元。

The decrease mainly resulted from a decline in the industrial technology segment, primarily related to its engineering and warehouse automation businesses.

這一下降主要是由於工業技術部門的下降，主要與其工程和倉庫自動化業務有關。

Adjusted EBITDA for the Memorialization and SGK Brand Solutions segments were only modestly lower for the quarter, which were substantially offset by lower Corporate and non-operating costs.

本季紀念和 SGK 品牌解決方案部門的調整後 EBITDA 僅小幅下降，但企業和非營運成本的下降大幅抵消了下降。

Please see the reconciliations of adjusted EBITDA and non-GAAP adjusted earnings per share provided in our earnings release.

請參閱我們的收益報告中提供的調整後 EBITDA 和非 GAAP 調整後每股收益的調整表。

And please move to Slide 8 to review our segment results.

請前往投影片 8 查看我們的細分結果。

Sales for the Memorialization segment for the fiscal 2024 third quarter were $202.7 million compared to $208.7 million for the same quarter a year ago.

2024 財年第三季紀念業務的銷售額為 2.027 億美元，去年同期為 2.087 億美元。

Sales volumes for cemetery memorials, caskets and cremation equipment were lower for the quarter compared to last year.

本季墓地紀念館、棺材和火化設備的銷售量低於去年。

As U.S. casketed deaths declined.

隨著美國棺材死亡人數下降。

These declines were significantly offset by the favorable impacts of improved price realization and higher mausoleum sales.

這些下降被價格實現改善和陵墓銷售增加的有利影響所抵消。

Recent acquisitions also contributed to the segment sales for the current quarter.

最近的收購也為本季的部門銷售做出了貢獻。

Memorialization segment adjusted EBITDA for the current quarter was $38.7 million compared to $39.9 million for the same quarter last year.

紀念部門本季調整後的 EBITDA 為 3,870 萬美元，去年同期為 3,990 萬美元。

The decrease primarily resulted from the impact of lower sales volumes and increased labor and material costs.

這一下降主要是由於銷量下降以及勞動力和材料成本增加的影響。

These declines were substantially offset by the favorable impacts of improved pricing and benefits from cost savings initiatives.

這些下降被定價改善的有利影響和成本節約措施的利益所抵消。

Please move to Slide 9.

請移至投影片 9。

Sales for the SGK Brand Solutions segment increased to $33.4 million (sic – see slide 9, "$133.4 million") for the quarter ended June 30, 2024, compared to $132.6 million a year ago.

截至 2024 年 6 月 30 日的季度，SGK 品牌解決方案部門的銷售額增至 3,340 萬美元（原文如此 — 請參閱投影片 9，「1.334 億美元」），而去年同期為 1.326 億美元。

The increase primarily reflected higher sales in the private label market and for the segment's European packaging business and improved price realization to mitigate inflationary cost increases.

這一成長主要反映了自有品牌市場和該部門歐洲包裝業務銷售額的增加以及價格實現的提高，以緩解通貨膨脹成本的增加。

Currency rates had an unfavorable impact of $2.6 million on current quarter sales compared to a year ago.

與去年同期相比，匯率對本季銷售額產生了 260 萬美元的不利影響。

Adjusted EBITDA for the SGK Brand Solutions segment was $16.1 million for the current quarter, which was relatively consistent with the segment's adjusted EBITDA of $16.4 million a year ago.

本季 SGK Brand Solutions 部門調整後 EBITDA 為 1,610 萬美元，與一年前該部門調整後 EBITDA 1,640 萬美元相對一致。

The benefits of higher sales and the segment's cost reduction actions were offset by higher labor related costs and performance-based compensation.

較高的銷售額和該部門的成本削減行動所帶來的好處被較高的勞動力相關成本和基於績效的薪酬所抵消。

The segment's year to date adjusted EBITDA increased 12% to $44.3 million for the current year compared to $39.6 million last year, primarily reflecting the benefits of their cost reduction actions.

該部門今年迄今調整後的 EBITDA 成長了 12%，達到 4,430 萬美元，而去年為 3,960 萬美元，這主要反映了其成本削減行動的好處。

Please move to Slide 10.

請移至投影片 10。

Sales for the industrial technology segment for the fiscal 2024 third quarter were $91.7 million compared to $130.5 million a year ago.

2024 財年第三季工業技術部門的銷售額為 9,170 萬美元，去年同期為 1.305 億美元。

The decrease primarily resulted from lower sales for the segment's engineering and warehouse automation businesses.

下降的主要原因是該部門的工程和倉庫自動化業務的銷售額下降。

As we previously discussed, our engineering sales have been unfavorably affected by customer delays in shipments and installations.

正如我們之前討論的，我們的工程銷售受到客戶出貨和安裝延誤的不利影響。

Additionally, operating results for our warehouse automation business have been unfavorably impacted by the current slow conditions in the U.S. warehouse industry.

此外，我們的倉庫自動化業務的營運表現也受到美國倉庫產業當前低迷狀況的不利影響。

However, we are starting to see signs of improvement based on recent quoting rates.

然而，根據最近的報價率，我們開始看到改善的跡象。

In addition, recent divestitures contributed to this segment's sales decline.

此外，最近的資產剝離導致該部門的銷售額下降。

Changes in foreign currency rates also had an unfavorable impact of $1.4 million on the segment's current quarter sales compared to a year ago.

與去年同期相比，外幣匯率的變化也對該部門當前季度的銷售額產生了 140 萬美元的不利影響。

Adjusted EBITDA for the industrial technology segment for the current quarter was $4.2 million compared to $15 million a year ago.

本季工業技術領域調整後 EBITDA 為 420 萬美元，去年同期為 1,500 萬美元。

The decrease primarily reflected the impacts of the sales declines in the engineering and warehouse automation businesses.

這一下降主要反映了工程和倉庫自動化業務銷售下降的影響。

The declines were partially offset by lower performance-based compensation and the benefits of operational savings initiatives.

這種下降被基於績效的薪資下降和營運節約措施的好處所部分抵消。

Changes in currency exchange rates had an unfavorable impact of $217,000 on the segment's current quarter adjusted EBITDA compared to a year ago.

與去年同期相比，貨幣匯率的變化對該部門本季調整後 EBITDA 產生了 217,000 美元的不利影響。

Please move to Slide 11.

請移至投影片 11。

Cash flow from operating activities for the quarter ended June 30, 2024 was $13.5 million compared to $32.2 million a year ago.

截至 2024 年 6 月 30 日的季度營運活動現金流量為 1,350 萬美元，而去年同期為 3,220 萬美元。

Relative to a year ago, cash flow for the current quarter primarily reflected the Company's lower consolidated adjusted EBITDA, offset partially by the benefit of working capital reductions.

與去年同期相比，本季的現金流量主要反映了公司較低的綜合調整後 EBITDA，但部分被營運資本減少的好處所抵銷。

Outstanding debt was $830 million at June 30, 2024, compared to $843 million at the end of last quarter, representing a reduction of $12.6 million during the third quarter.

截至 2024 年 6 月 30 日，未償債務為 8.3 億美元，而上季末為 8.43 億美元，第三季減少了 1,260 萬美元。

Net debt, which represents outstanding debt less cash, was $787 million at June 30, 2024, compared to $797 million at March 31st, 2024, representing a reduction of $9.8 million during the third quarter.

截至 2024 年 6 月 30 日，淨債務（即未償債務減去現金）為 7.87 億美元，而 2024 年 3 月 31 日為 7.97 億美元，第三季減少了 980 萬美元。

Since the beginning of calendar 2024, the Company has reduced its outstanding debt and net debt balances by $32 million and $37 million, respectively.

自 2024 年初以來，公司已將未償債務和淨債務餘額分別減少了 3,200 萬美元和 3,700 萬美元。

At June 30, 2024, the Company's leverage ratio based on net debt and trailing 12 months adjusted EBITDA was 3.77.

截至2024年6月30日，本公司基於淨負債及過去12個月調整後EBITDA的槓桿率為3.77。

As we reported last quarter, we renewed our $750 million domestic revolving credit facility during the fiscal 2024 second quarter and are now focused on refinancing our bonds, which do not mature until December 2025.

正如我們上季度報告的那樣，我們在2024 財年第二季度續簽了7.5 億美元的國內循環信貸安排，目前專注於為我們的債券進行再融資，這些債券要到2025 年12 月才會到期。

We currently expect this refinancing to be completed before the end of this fiscal year.

我們目前預計此次再融資將在本財年結束前完成。

For the fiscal 2024 third quarter, the Company purchased only approximately 115,000 shares under our stock repurchase program as we remain primarily focused on debt reduction.

在 2024 財年第三季度，該公司根據股票回購計畫僅購買了約 115,000 股股票，因為我們仍然主要關注債務削減。

Approximately 30.6 million shares were outstanding at June 30, 2024.

截至 2024 年 6 月 30 日，已發行股數約 3,060 萬股。

As Joe just noted, we are initiating cost reduction programs beginning this quarter that will span several of our business units and corporate functions.

正如喬剛剛指出的那樣，我們將從本季開始啟動成本削減計劃，該計劃將涵蓋我們的多個業務部門和公司職能部門。

We are targeting annual consolidated savings from these programs to be up to $50 million, with the most significant portion from our engineering and tooling operations in Europe.

我們的目標是透過這些計劃每年節省高達 5000 萬美元的成本，其中大部分來自我們在歐洲的工程和模具業務。

Finally, the Board last week declared a quarterly dividend of $0.24 per share on the Company's common stock.

最後，董事會上週宣布派發公司普通股每股 0.24 美元的季度股息。

Dividend is payable August 19, 2024 to stockholders of record August 5, 2024.

股利將於2024年8月19日支付給2024年8月5日登記在冊的股東。

This concludes the financial review, and we will now open the call for any questions from you.

財務審查到此結束，我們現在將開始電話詢問您的任何問題。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Daniel Moore with CJS Securities.

CJS 證券的丹尼爾摩爾。

Thanks, Steve.

謝謝，史蒂夫。

Good morning, Joe. Good morning, Steve.

早安，喬。早安，史蒂夫。

Thanks for taking the questions.

感謝您提出問題。

Good morning, Dan.

早上好，丹。

Start with the guide and then kind of maybe switch gears to energy storage.

從指南開始，然後可能會切換到能量儲存。

But on the revised guidance for fiscal 24 in terms of the implication for Q4, how much energy storage revenue is in there?

但就24財年修訂後的指引對第四季的影響而言，其中儲能收入有多少？

And just talk about your confidence and any risk that maybe some of that additional revenue or shipments might slip into fiscal '25.

只需談談您的信心和任何風險，即部分額外收入或發貨量可能會滑入 25 財年。

So let me not let me kind of parse that out for you, Dan.

所以，讓我不要讓我為你解析這個問題，丹。

We'd expect to carry over somewhere in a of about $60million to $70 million worth of backlog in the energy business into '25.

我們預計能源業務中價值約 6,000 萬至 7,000 萬美元的積壓訂單將結轉到 25 年。

Our current expectation is we should have about $30 million or so of billings in the month a quarter that we're approaching that on the fourth quarter.

我們目前的預期是，我們每季的帳單應該會達到 3000 萬美元左右，我們將在第四季度接近這個數字。

So our expectations and we've had a a pretty good discussion in terms of that with our customer.

因此，我們的期望和我們已經與客戶進行了很好的討論。

And right now, that's the current plans that we'll ship through late February of next year with some trailing orders to be delivered thereafter.

目前，這是我們將在明年 2 月下旬發貨的當前計劃，並在此後交付一些後續訂單。

That's helpful.

這很有幫助。

And then I think you said in the prepared remarks, you expect energy storage orders to pick up in Q4 and into fiscal '25.

然後我想您在準備好的演講中說過，您預計儲能訂單將在第四季和 25 財年回升。

I don't know if there was orders or

不知道有沒有訂單

(multiple speakers)

（多個發言者）

(multiple speakers) It revenue record revenue, more revenue recognition and warehouse warehouses.

（多位發言者） 它的收入記錄收入，更多的收入確認和倉庫倉庫。

What we're seeing warehouse and product identification is what we're seeing things start to pick up again.

我們看到倉庫和產品識別的情況開始再次好轉。

Got it.

知道了。

That's really helpful sticking there on the DBE. front, you're talking about plans to build battery production capability in house, and I think you said spending an incremental $40 million over the next 12 plus months.

堅持 DBE 確實很有幫助。前面，您談論的是建立內部電池生產能力的計劃，我認為您說過在未來 12 個多月內增加支出 4000 萬美元。

Are those plans still on track?

這些計劃還在照計劃進行嗎？

And what would you know, what would that look like from a capacity perspective once that shows us complete?

你會知道什麼，一旦我們完成了，從容量的角度來看會是什麼樣子？

So let me explain exactly what the first half, the numbers materially lower at as a result of some of the cost structures are initiatives that we've initiated.

因此，讓我準確地解釋一下上半年的情況，由於我們發起的一些成本結構，導致數字大幅下降。

We're freeing up a fair amount of out of real estate to be able to houses.

我們正在釋放大量的房地產來建造住房。

So the capital costs will come down materially.

因此，資本成本將大幅下降。

Secondly, but we're not we're not building production capability as much as we're building a production line.

其次，但我們不是在建立生產能力，而是在建造生產線。

That production line, it will allow an accelerated adoption of the DBE solution by some of the largest customers in the world.

該生產線將使全球一些最大的客戶加速採用 DBE 解決方案。

So we're moving away from selling a lab machine and then a small prototype machine and then and then finally waiting for an order.

因此，我們不再先銷售實驗室機器，然後銷售小型原型機，然後最後等待訂單。

This is the process of standardizing that production line to a methodology that is consistent, and we can sell repeatedly.

這是將生產線標準化為一致​​的方法的過程，我們可以重複銷售。

That will benefit our timeline for adoption, significantly, with some of the largest customers as they tried to go up from where they are today.

這將有利於我們的採用時間表，對一些最大的客戶來說意義重大，因為他們試圖從今天的水平上升。

And more importantly, it should improve our cost structure as we standardize around a definitive solution.

更重要的是，當我們圍繞明確的解決方案進行標準化時，它應該會改善我們的成本結構。

Really helpful.

真的很有幫助。

Tom, one more on energy storage, and then I'll ask one more and jump back in queue.

湯姆，還有一個關於能源儲存的問題，然後我會再問一個，然後跳回隊列。

But I know you're too early to get into fiscal '25 guidance, but you know, given kind of where we are in terms of orders right now, do we think about '25, is it being a growth year in that business?

但我知道你現在進入 25 財年指導還為時過早，但你知道，考慮到我們目前在訂單方面的情況，我們是否認為 25 年是該業務的增長年？

Or would that could that inflection maybe push out to fiscal '26?

或者說這種變化可能會推遲到 26 財年嗎？

I would tell you the '25 is going to be a good year, right now.

我想告訴你，25 年將是美好的一年，就現在而言。

Things can change so dramatically so quickly, Dan, but I would not expect a significant growth year.

丹，事情可能會發生如此巨大的變化，但我不認為今年會有顯著的成長。

I would expect a good year in that business.

我預計該行業將迎來美好的一年。

The cost structure initiatives we're taking over there will make the overall engineering solution better, and we're taking out a significant amount of cost over there.

我們在那裡採取的成本結構措施將使整體工程解決方案變得更好，並且我們正在那裡削減大量成本。

But more importantly, I'm hoping '25 to be once we get past the litigation to be more of an announcement year, where we can speak more freely about what we're doing.

但更重要的是，我希望 25 年在我們度過訴訟之後成為一個公告年，我們可以更自由地談論我們正在做的事情。

That's really helpful.

這真的很有幫助。

Last for me.

最後對我來說。

You mentioned green shoots or maybe my word not yours on warehouse automation maybe or the quoting rate.

您提到了新芽，或者也許是我的話，而不是您對倉庫自動化的看法，或者是報價率。

Any additional color you can give there around what you're seeing hearing from customers and when we might see a little bit of return of that business?

關於您從客戶那裡看到的情況以及我們何時可能看到該業務的一點回報，您可以提供任何其他資訊嗎？

Thanks, again.

再次感謝。

I'm hoping news there have been, unfortunately some that we're working with some of the largest players in the industry down when it comes to e-commerce and store fulfillment.

我希望有消息稱，不幸的是，在電子商務和商店履行方面，我們正在與業內一些最大的參與者合作。

And the names, unfortunately are not helping us to use their names, but I can tell you, they are national brands in every sense those orders are in pipeline right now.

不幸的是，這些名字並不能幫助我們使用他們的名字，但我可以告訴你，從任何意義上說，他們都是國家品牌，這些訂單目前正在醞釀中。

I would say that they're in final negotiations, fairly significant orders and but interest are it has increased significantly around finding moving forward.

我想說的是，他們正在進行最後的談判，訂單相當重要，但人們對尋找進展的興趣顯著增加。

Unfortunately, as you know, this is a cyclical business when it comes to the year, but generally were out of warehouses in the first quarter so don't expect a big first quarter as much as you'll start to see those revenues into the second and third quarter of next year.

不幸的是，如您所知，這是一個週期性業務，就一年而言，但通常在第一季就缺貨，因此不要期望第一季會有很大的成長，因為您將開始觀看到這些收入進入第二季。

Understood.

明白了。

Or two, I'll jump back with any follow-up.

一兩個，我會跳回來進行任何後續行動。

Thanks Joe.

謝謝喬。

Thank you.

謝謝。

Justin Bergner with Gabelli Funds.

賈斯汀伯格納（Justin Bergner）與加貝利基金（Gabelli Funds）。

Good morning, Joe. Good morning, Steve.

早安，喬。早安，史蒂夫。

A few questions here, just to make sure the one-time cost to achieve the savings and the $50 million cost out plan of $40 million, those are all cash?

這裡有幾個問題，只是為了確保實現節省的一次性成本以及 4000 萬美元的 5000 萬美元成本支出計劃，這些都是現金嗎？

No, not all

不，不是全部

No.

不。

The majority of them are cash, Justin, but there is there is a component of it that would be asset write-off related.

其中大部分是現金，賈斯汀，但其中有一部分與資產沖銷有關。

Okay.

好的。

Any quantification of the cash portion?

現金部分有量化嗎？

No, I don't have those numbers with me.

不，我沒有帶這些號碼。

We can get that for you, Justin

我們可以為您找到，賈斯汀

All right.

好的。

And then depending upon how the situation resolves itself with Tesla, I mean, could you see yourselves downsizing the cost takeout program just centered around Europe?

然後，根據特斯拉的情況如何解決，我的意思是，您是否會縮小以歐洲為中心的成本外購計劃？

Let's put it this way.

讓我們這樣說吧。

As it relates to old brick itself, no.

因為它與舊磚本身有關，所以不會。

As it relates to the rest of our engineering business over there perhaps, I mean, the reality is that we're positioning it for growth over there.

因為它可能與我們在那裡的其他工程業務相關，我的意思是，現實是我們正在將其定位為在那裡的成長。

So with the costs that we are taking out were anticipated when we acquired Olbrich.

因此，當我們收購 Olbrich 時，我們已經預料到了所要支出的成本。

If you recall, Olbrich was a business we paid $45 million for that. what is coming out of bankruptcy for all practical purposes, and it has not been a contributor.

如果你還記得的話，我們為奧爾布里奇公司支付了 4500 萬美元。出於所有實際目的，破產後會帶來什麼，但它並沒有做出貢獻。

And in fact, it's been a net loser for the last 18 months as we've gone through this, we're positioning that business to be a mid 10s operating EBITDA business over there, as well as leaving us the capacity and the engineering skills to grow our engineering our energy business.

事實上，在過去 18 個月裡，它一直是淨虧損者，因為我們經歷了這一切，我們將該業務定位為 10 年代中期的 EBITDA 業務，並為我們留下了產能和工程技能發展我們的工程能源業務。

Okay, got it.

好的，明白了。

But that mid 10s would be on a meaningfully lower revenue base?

但 10 多歲的人的收入基礎會明顯較低嗎？

I assume if you're taking that much cost out?

我想如果你要去掉那麼多成本？

We're expecting that revenue base to be upwards of $80 million.

我們預計收入基礎將超過 8000 萬美元。

Okay.

好的。

All right.

好的。

And then others, by the way, suggests and that is just for over not the underlying business as a whole.

順便說一句，其他人提出的建議只是針對整個基礎業務而言的。

Gotcha.

明白了。

All right.

好的。

And then if the Tesla situation is resolved, I mean you wouldn't rule out new orders coming in as we look into fiscal year '25 from that customer as well?

然後，如果特斯拉的情況得到解決，我的意思是，當我們研究該客戶的 25 財年時，您不會排除收到新訂單的可能性嗎？

Right.

正確的。

I wouldn't.

我不會。

And we will look, we will take orders from anybody.

我們會觀察，我們會接受任何人的命令。

We are taking orders, as I said earlier from others, we're not at liberty right now to kind of speak more freely about that, but we continue to take orders and interest rate levels are very high.

我們正在接受訂單，正如我之前從其他人那裡說過的，我們現在不能更自由地談論這一點，但我們繼續接受訂單，而且利率水平非常高。

Okay,

好的，

And as I said in my statement, this is a-- we've been saying it for a while.

正如我在聲明中所說，我們已經這麼說了一段時間了。

This is a solution that is tremendously valuable.

這是一個非常有價值的解決方案。

It takes billions of dollars out of the process.

這個過程需要花費數十億美元。

What you're seeing is the reaction to that.

你所看到的是對此的反應。

Gotcha, I totally understand and all the best working your way through that lawsuit.

明白了，我完全理解，祝你順利度過這場訴訟。

Maybe lastly, I'm in terms of non-core business, you know, with your leverage and your refinancing, how are you thinking about some businesses that may be noncore within the portfolio within the next 12 to 24 months.

也許最後，我就非核心業務而言，你知道，透過你的槓桿和再融資，你如何看待未來 12 到 24 個月內投資組合中可能屬於非核心的一些業務。

It means we are always looking at those.

這意味著我們一直在關注這些。

And I would tell you that given where our debt position is and where we think that our Industrial Technologies business is going.

我想告訴你的是，考慮到我們的債務狀況以及我們認為我們的工業技術業務的發展方向。

We're now approaching that point where we think it's time to consider it more wholesomely.

我們現在正接近這一點，我們認為是時候更全面地考慮它了。

So we're considering everything right now.

所以我們現在正在考慮一切。

Okay.

好的。

And then lastly, just on the share repurchases, not a large QUALITY purchased in the quarter.

最後，僅就股票回購而言，本季並沒有大量購買股票。

Is it safe to say that, you know, those shares were purchased before you saw the Tesla situation coming to a head or just any perspective on why then we would deploy that capital in that way.

可以肯定地說，你知道，這些股票是在你看到特斯拉的情況達到緊要關頭之前購買的，或者只是對為什麼我們會以這種方式部署這些資本有任何看法。

We did not buy a lot, but it was also well before the situation with Tesla's lawsuits.

我們買的不多，但也是早在特斯拉訴訟的情況發生之前。

So that is not something that going into this environment we would be buying in today.

因此，這不是我們今天會在這種環境下購買的東西。

Okay, fantastic.

好吧，太棒了。

All the best, Joe and Steve, thank you.

祝喬和史蒂夫一切順利，謝謝你們。

Thank you

謝謝

Thank you.

謝謝。

Ladies and gentlemen, we have reached the end of question-and-answer session.

女士們、先生們，問答環節已經結束。

I would now like to turn the floor over to Bill Wilson for closing comments.

我現在想請比爾威爾森發表總結意見。

Very good.

非常好。

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

謝謝你們，也謝謝大家今天加入我們以及你們對馬修斯的興趣。

We would encourage you for additional information about the Company and our financial results.

我們鼓勵您提供有關公司和財務業績的更多資訊。

Please visit our website or contact me.

請造訪我們的網站或與我聯絡。

Enjoy the rest of your day.

享受你一天剩下的時間。

Thank you.

謝謝。

This concludes today's teleconference.

今天的電話會議到此結束。

You may disconnect your lines at this time.

此時您可以斷開線路。

Thank you for your participation.

感謝您的參與。