 Financial Highlights: Significant third quarter reduction in debt of 104.9 million Strong third quarter operating cash flow exceeded 57.0 million; YTD exceeded prior year by 34.2 million Memorialization segment reports higher sales for third fiscal quarter and YTD Third quarter GAAP EPS of 0.07; Non-GAAP adjusted EPS of 0.80PITTSBURGH, July 30, 2020 GLOBE NEWSWIRE -- Matthews International Corporation NASDAQ GSM: MATW today announced financial results for its third quarter of fiscal 2020 and nine months ended June 30, 2020.In discussing the results for the Companys fiscal 2020 third quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:I am very pleased with the performance of our overall business during these challenging times. The relative stability of our consolidated results reflects the diversity of our core businesses and highlights what we believe to be the strength of the franchise ... leading market positions in stable end markets. Our performance has allowed us to deliver very strong cash flow for the fiscal 2020 third quarter and corresponding debt reduction which well exceeded last years performance. The Memorialization segment reported sales growth compared to a year ago, reflecting higher casket sales and an increase in sales of cremation equipment. These gains were partially offset by lower cemetery memorial products sales, which were impacted by many local stay-at-home orders that limited families access with cemeteries to arrange for their memorials. However, we anticipate most of these orders are deferred to a future date.Also, while economic conditions were slower during the quarter due to the pandemic, our SGK Brand Solutions segment performed well, particularly in our core brand packaging portion of the business. Despite more competitive customer pricing, sales volumes for our brand packaging business were relatively steady, particularly in the North America and Asia Pacific regions. Engineering sales, which are included in our SGK Brand Solutions segment, increased during the quarter reflecting our recent expansion into the energy storage market, but sales of cylinders and surfaces, primarily in the European region, declined for the quarter reflecting the economic impacts on those markets.Sales for our Industrial Technologies segment declined for the quarter compared to a year ago, also reflecting the slower global economy. Incoming orders for our warehouse automation solutions remained strong, but access to job sites to complete these orders was temporarily restricted due to the pandemic. Backlogs for the warehouse automation business continued to build, and, like our memorial products business, we anticipate these orders are deferred to a future date.I remain extremely proud of the efforts of our leadership team to ensure the safety and well-being of our employees under these challenging conditions and I continue to be equally as proud of the work and commitment of our employees.Third Quarter Fiscal 2020 Consolidated Results Unaudited in millions, except per share dataQ3 FY2020 Q3 FY2019 Change Change Sales359.4 379.3 19.9 5.2 Net income attributable to Matthews2.3 14.6 12.3 84.5 Diluted earnings per share0.07 0.46 0.39 84.8 Non-GAAP adjusted net income24.8 28.4 3.6 12.7 Non-GAAP adjusted EPS0.80 0.90 0.10 11.1 Adjusted EBITDA49.4 59.0 9.6 16.3 Note: See the attached tables for additional important disclosures regarding Matthews use of non-GAAP measures as well as reconciliations of non-GAAP measures to corresponding GAAP measures. Organic sales represent changes in sales excluding the impact of acquisitions, divestitures, and changes in foreign currency exchange rates. Consolidated sales for the quarter ended June 30, 2020 were 359.4 million, compared to 379.3 million for the same quarter a year ago. Net income attributable to the Company for the quarter ended June 30, 2020 was 2.3 million, or 0.07 per share, compared to 14.6 million, or 0.46 per share, for the same quarter last year. A significant portion of the net income decrease related to non-cash charges including the acceleration beginning in the fiscal 2019 fourth quarter of the amortization of certain discontinued trade names in the SGK Brand Solutions segment and a reserve for a letter of credit in connection with a previous incineration equipment project in Saudi Arabia. In addition, the decline reflected charges related to the Companys cost reduction program. Net income for the current quarter also reflected a gain on the divestiture of the Companys ownership interest in a pet cremation business.Adjusted EBITDA net income before interest expense, income taxes, depreciation and amortization, and other adjustments for the fiscal 2020 third quarter was 49.4 million, compared to 59.0 million a year ago. On a non-GAAP adjusted basis, earnings for the fiscal 2020 third quarter were 0.80 per share, compared to 0.90 per share a year ago. See reconciliations of adjusted EBITDA and non-GAAP adjusted earnings per share below.Sales for the Memorialization segment for the fiscal 2020 third quarter were 162.1 million, compared to 158.2 million for the same quarter a year ago. The increase was primarily the result of higher casket and cremation equipment sales, partially offset by lower cemetery memorial products sales. International memorial product sales and mausoleum sales were unfavorably impacted by COVID-19. Changes in foreign currency exchange rates had an unfavorable impact of 369,000 on the segments current quarter sales compared to a year ago.The SGK Brand Solutions segment reported sales of 165.8 million for the quarter ended June 30, 2020, compared to 181.9 million a year ago. The decline primarily reflected lower brand packaging revenues in North America and Europe and a decrease in private label sales. Sales of cylinders primarily supporting the tobacco industry and surfaces also declined for the current quarter. All regions reported some level of commercial impact from COVID-19, but the impact remains difficult to quantify. These declines were partially offset by higher sales for engineered products, primarily reflecting sales into the energy storage industry. Merchandising solutions sales were also higher for the quarter, due in part to new sales of face shields. Changes in currency rates had an unfavorable impact of 3.4 million on current quarter sales compared to a year ago.Sales for the Industrial Technologies segment for the fiscal 2020 third quarter were 31.5 million, compared to 39.1 million a year ago. The decline primarily resulted from lower sales for each of the segments principal product lines primarily reflecting the commercial impacts of COVID-19. Changes in foreign currency rates had an unfavorable impact of 166,000 on current quarter sales compared to a year ago.Nine Months Fiscal 2020 Consolidated Results Unaudited in millions, except per share dataYTD FY2020 YTD FY2019 Change Change Sales1,099.2 1,144.9 45.7 4.0 Net loss income attributable to Matthews94.6 33.1 127.7 385.3 Diluted loss earnings per share3.04 1.05 4.09 389.5 Non-GAAP adjusted net income59.1 72.8 13.7 18.8 Non-GAAP adjusted EPS1.90 2.30 0.40 17.4 Adjusted EBITDA139.0 161.6 22.6 14.0 Note: See the attached tables for additional important disclosures regarding Matthews use of non-GAAP measures as well as reconciliations of non-GAAP measures to corresponding GAAP measures. Organic sales represent changes in sales excluding the impact of acquisitions, divestitures, and changes in foreign currency exchange rates. Consolidated sales for the nine months ended June 30, 2020 were 1.10 billion, compared to 1.14 billion a year ago. Consistent with the results for the third fiscal quarter, the Memorialization segment reported higher year-to-date sales, reflecting increased casket sales partially offset by lower sales of cemetery memorial products. Year-to-date sales for the SGK Brand Solutions segment were lower than a year ago, reflecting lower brand packaging sales in North America and Europe as well as lower sales of cylinders, surfaces and engineered products. Consolidated sales also reflected a decrease in sales for the Industrial Technologies segment, principally due to lower warehouse automation sales resulting primarily from deferrals of existing orders. Changes in foreign currency exchange rates had an unfavorable impact of 10.4 million on consolidated sales compared to a year ago.Net loss attributable to the Company for the first nine months of fiscal 2020 was 94.6 million, or 3.04 per share, compared to net income attributable to the Company of 33.1 million, or 1.05 per share in the prior year. A significant portion of the decrease resulted from the write-down of goodwill and the accelerated amortization of certain discontinued trade names in the SGK Brand Solutions segment, and charges related to the Companys cost reduction program. Net loss for the current year also reflected the third quarter gain on the divestiture of the Companys ownership interest in a pet cremation business and the unfavorable impact of a reserve for a letter of credit in connection with the incineration equipment project in Saudi Arabia. Adjusted EBITDA for the nine months ended June 30, 2020 was 139.0 million, compared to 161.6 million a year ago. On a non-GAAP adjusted basis, earnings for the first nine months of fiscal 2020 were 1.90 per share, compared to 2.30 per share a year ago. The decline primarily resulted from lower adjusted EBITDA offset partially by a reduction in interest expense. 