Matthews International Corporation (NASDAQ GSM: MATW) has released its financial results for the second quarter of fiscal 2024, highlighting both GAAP and non-GAAP metrics. The company's outstanding debt was reduced by $19.6 million, resulting in a lower net debt of $27.2 million compared to the previous period. While GAAP earnings per share remained consistent with the prior year at $0.29, non-GAAP EPS increased to $0.69 from $0.65 a year ago.
The second quarter consolidated sales for fiscal 2024 were $471.2 million, representing a decrease of $8.4 million, or 1.7%, from the same period in the prior year. The net income attributable to Matthews was $9.0 million, with diluted earnings per share of $0.29, unchanged from the previous year. However, on a non-GAAP adjusted basis, earnings for the quarter were $0.69 per share, compared to $0.65 per share a year ago.
For the first six months of fiscal 2024, consolidated sales were $921.2 million, a decrease of $7.6 million, or 0.8%, from the prior year. The net income attributable to Matthews for this period was $6.7 million, with diluted earnings per share of $0.22, down from $12.8 million and $0.41 per share, respectively, in the prior year. On a non-GAAP adjusted basis, earnings for the first six months of fiscal 2024 were $1.06 per share, compared to $1.18 per share a year ago.
The company's adjusted EBITDA for the fiscal 2024 second quarter was $56.8 million, compared to $58.4 million a year ago. For the first six months of fiscal 2024, adjusted EBITDA was $102.3 million, down from $107.7 million in the prior year.
Matthews International's President and CEO, Joseph C. Bartolacci, noted that the memorialization segment's sales for the second quarter were consistent with a year ago, despite lower U.S. death rates. Moreover, the SGK brand solutions business reported sales growth compared to the previous year, primarily driven by increases in its U.S. brand packaging, European packaging, and private label markets.
The company's industrial technologies segment saw its energy storage solutions business achieve another quarter of sales growth, reflecting orders from multiple customers. However, total sales for the segment were lower compared to a year ago, primarily due to slower market conditions for the warehouse automation business.
Looking ahead, Matthews International projects adjusted EBITDA for fiscal 2024 to approximate $220 million, with the impact of customer delays in the energy storage business significantly affecting initial projections. The company also expressed confidence in its long-term strategies and outlook, particularly for the memorialization and SGK brand solutions segments.
Today the company's shares have moved 9.1% to a price of $29.33. If you want to know more, read the company's complete 8-K report here.
