(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
ý | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
December 31, 2023 | September 30, 2023 | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | |||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Contract assets | |||||||||||||||||||||||
Other current assets | |||||||||||||||||||||||
Total current assets | |||||||||||||||||||||||
Investments | |||||||||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||||||
Operating lease right-of-use assets | |||||||||||||||||||||||
Deferred income taxes | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Other intangible assets, net | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total assets | $ | $ | |||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Long-term debt, current maturities | $ | $ | |||||||||||||||||||||
Current portion of operating lease liabilities | |||||||||||||||||||||||
Trade accounts payable | |||||||||||||||||||||||
Accrued compensation | |||||||||||||||||||||||
Accrued income taxes | |||||||||||||||||||||||
Contract liabilities | |||||||||||||||||||||||
Other current liabilities | |||||||||||||||||||||||
Total current liabilities | |||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||
Operating lease liabilities | |||||||||||||||||||||||
Deferred income taxes | |||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||
Total liabilities | |||||||||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Shareholders' equity-Matthews: | |||||||||||||||||||||||
Common stock | $ | $ | |||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||
Treasury stock, at cost | ( | ( | |||||||||||||||||||||
Total shareholders' equity-Matthews | |||||||||||||||||||||||
Noncontrolling interests | ( | ||||||||||||||||||||||
Total shareholders' equity | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Sales | $ | $ | |||||||||
Cost of sales | ( | ( | |||||||||
Gross profit | |||||||||||
Selling expense | ( | ( | |||||||||
Administrative expense | ( | ( | |||||||||
Intangible amortization | ( | ( | |||||||||
Operating profit | |||||||||||
Interest expense | ( | ( | |||||||||
Other income (deductions), net | ( | ( | |||||||||
(Loss) income before income taxes | ( | ||||||||||
Income tax benefit (provision) | ( | ||||||||||
Net (loss) income | ( | ||||||||||
Net loss attributable to noncontrolling interests | |||||||||||
Net (loss) income attributable to Matthews shareholders | $ | ( | $ | ||||||||
(Loss) earnings per share attributable to Matthews shareholders: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ |
Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||
Matthews | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Net (loss) income: | $ | ( | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||
Other comprehensive income (loss) ("OCI"), net of tax: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||
Pension plans and other postretirement benefits | ( | ( | |||||||||||||||||||||||||||||||||
Unrecognized (loss) gain on cash flow hedges: | |||||||||||||||||||||||||||||||||||
Net change from periodic revaluation | ( | ( | |||||||||||||||||||||||||||||||||
Net amount reclassified to earnings | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Net change in unrecognized loss on cash flow hedges | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
OCI, net of tax | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( | $ | $ |
Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non- controlling Interests | Total | |||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Minimum pension liability | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Fair value of cash flow hedges | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Purchase of | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Issuance of | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Transactions with non-controlling interest | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non- controlling Interests | Total | |||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Minimum pension liability | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Fair value of cash flow hedges | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Purchase of | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Issuance of | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||
Cancellations of | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss) income to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred tax benefit | ( | ( | |||||||||
Gain on sale of assets, net | ( | ( | |||||||||
Defined benefit plan settlement losses | |||||||||||
Defined benefit plan settlement payments | ( | ||||||||||
Changes in working capital items | ( | ( | |||||||||
Decrease in other assets | |||||||||||
(Decrease) increase in other liabilities | ( | ||||||||||
Other operating activities, net | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Other investing activities, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt | |||||||||||
Payments on long-term debt | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Dividends | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash | |||||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of year | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Memorialization | Industrial Technologies | SGK Brand Solutions | Consolidated | |||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Central and South America | ||||||||||||||||||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||||||||||||||
Australia | ||||||||||||||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ | $ | $ | $ |
Level 1: | Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. | |||||||
Level 2: | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||
Level 3: | Unobservable inputs for the asset or liability. |
December 31, 2023 | September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Equity and fixed income mutual funds | |||||||||||||||||||||||||||||||||||||||||||||||
Life insurance policies | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
$ | $ |
December 31, 2023 | September 30, 2023 | ||||||||||
Equity and fixed income mutual funds | $ | $ | |||||||||
Life insurance policies | |||||||||||
Equity-method investments | |||||||||||
Other (primarily cost-method) investments | |||||||||||
$ | $ |
December 31, 2023 | September 30, 2023 | ||||||||||
Revolving credit facilities | $ | $ | |||||||||
2025 Senior Notes | |||||||||||
Other borrowings | |||||||||||
Total debt | |||||||||||
Less current maturities | ( | ( | |||||||||
Long-term debt | $ | $ |
Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |||||||||||||
Gross receivables sold | $ | $ | ||||||||||||
Cash collections reinvested | ( | ( | ||||||||||||
Net cash proceeds received | $ | $ |
Derivatives: | December 31, 2023 | September 30, 2023 | ||||||||||||||||||
Interest Rate Swaps | Cross- Currency Swaps | Interest Rate Swaps | Cross- Currency Swaps | |||||||||||||||||
Current assets: | ||||||||||||||||||||
Other current assets | $ | $ | $ | $ | ||||||||||||||||
Long-term assets: | ||||||||||||||||||||
Other assets | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Other current liabilities | ( | |||||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||
Other liabilities | ( | ( | ( | |||||||||||||||||
Total derivatives | $ | ( | $ | ( | $ | $ | ( |
December 31, 2023 | September 30, 2023 | |||||||||||||
Notional amount | $ | $ | ||||||||||||
Weighted-average maturity period (years) | ||||||||||||||
Weighted-average received rate | % | % | ||||||||||||
Weighted-average pay rate | % | % |
Restricted Share Units | Weighted- average Grant-date Fair Value | ||||||||||
Non-vested at September 30, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Expired or forfeited | ( | ||||||||||
Non-vested at December 31, 2023 | $ |
Three Months Ended December 31, 2023 | |||||
Expected volatility | % | ||||
Dividend yield | % | ||||
Average risk-free interest rate | % | ||||
Average expected term (years) |
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Net (loss) income attributable to Matthews shareholders | $ | ( | $ | ||||||||
Weighted-average shares outstanding (in thousands): | |||||||||||
Basic shares | |||||||||||
Effect of dilutive securities | |||||||||||
Diluted shares | |||||||||||
Dividends declared per common share | $ | $ |
Three months ended December 31, | |||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost * | |||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||
Prior service credit | ( | ( | |||||||||||||||||||||
Net actuarial gains * | ( | ( | ( | ( | |||||||||||||||||||
Settlement losses * | |||||||||||||||||||||||
Net benefit cost | $ | $ | $ | ( | $ | ( | |||||||||||||||||
* Non-service components of pension and postretirement expense are included in other income (deductions), net. |
Post-retirement benefit plans | Currency translation adjustment | Cash Flow Hedges | Total | |||||||||||||||||||||||
Attributable to Matthews: | ||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
OCI before reclassification | ( | |||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | (a) | ( | ( | (b) | ( | ||||||||||||||||||||
Net current-period OCI | ( | ( | ||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Attributable to noncontrolling interest: | ||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||
OCI before reclassification | ||||||||||||||||||||||||||
Net current-period OCI | ||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ |
Post-retirement benefit plans | Currency translation adjustment | Cash Flow Hedges | Total | |||||||||||||||||||||||
Attributable to Matthews: | ||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
OCI before reclassification | ||||||||||||||||||||||||||
Amounts reclassified from AOCI | (a) | ( | ( | (b) | ||||||||||||||||||||||
Net current-period OCI | ( | |||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Attributable to noncontrolling interest: | ||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
OCI before reclassification | ||||||||||||||||||||||||||
Net current-period OCI | ||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ |
Amount reclassified from AOCI | ||||||||||||||||||||
Details about AOCI Components | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | Affected line item in the Statement of income | |||||||||||||||||
Postretirement benefit plans | ||||||||||||||||||||
Prior service credit (a) | $ | $ | ||||||||||||||||||
Actuarial losses | Other income (deductions), net | |||||||||||||||||||
Settlement loss | ( | Other income (deductions), net | ||||||||||||||||||
( | Income before income tax (b) | |||||||||||||||||||
( | Income taxes | |||||||||||||||||||
$ | $ | ( | Net income | |||||||||||||||||
Derivatives | ||||||||||||||||||||
Cash flow hedges | $ | $ | Interest expense | |||||||||||||||||
Net investment hedges | Interest expense | |||||||||||||||||||
Income before income tax (b) | ||||||||||||||||||||
( | ( | Income taxes | ||||||||||||||||||
$ | $ | Net income |
(a) Prior service cost amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 11. | ||
(b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
United States – Federal | 2020 and forward | ||||
United States – State | 2019 and forward | ||||
Canada | 2019 and forward | ||||
Germany | 2019 and forward | ||||
United Kingdom | 2022 and forward | ||||
Singapore | 2020 and forward | ||||
Australia | 2018 and forward |
Three Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Sales: | ||||||||||||||
Memorialization | $ | $ | ||||||||||||
Industrial Technologies | ||||||||||||||
SGK Brand Solutions | ||||||||||||||
Consolidated Sales | $ | $ |
Adjusted EBITDA: | ||||||||||||||
Memorialization | $ | $ | ||||||||||||
Industrial Technologies | ||||||||||||||
SGK Brand Solutions | ||||||||||||||
Corporate and Non-Operating | ( | ( | ||||||||||||
Total Adjusted EBITDA | $ | $ | ||||||||||||
Acquisition and divestiture related items (1)** | ( | ( | ||||||||||||
Strategic initiatives and other charges (2)** | ( | ( | ||||||||||||
Highly inflationary accounting losses (primarily non-cash) (3) | ( | ( | ||||||||||||
Stock-based compensation | ( | ( | ||||||||||||
Non-service pension and postretirement expense (4) | ( | ( | ||||||||||||
Depreciation and amortization * | ( | ( | ||||||||||||
Interest expense, including RPA and factoring financing fees (5) | ( | ( | ||||||||||||
Net loss attributable to noncontrolling interests | ( | |||||||||||||
(Loss) income before income taxes | ( | |||||||||||||
Income tax benefit (provision) | ( | |||||||||||||
Net (loss) income | $ | ( | $ |
(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities. | ||
(2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. | ||
(3) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries (see Note 2, "Basis of Presentation"). | ||
(4) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. | ||
(5) Includes fees for receivables sold under the RPA and factoring arrangements totaling $ |
Memorialization | Industrial Technologies | SGK Brand Solutions | Consolidated | ||||||||||||||||||||
Net goodwill at September 30, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Translation and other adjustments | |||||||||||||||||||||||
Net goodwill at December 31, 2023 | $ | $ | $ | $ |
Carrying Amount | Accumulated Amortization | Net | |||||||||||||||
December 31, 2023: | |||||||||||||||||
Indefinite-lived trade names | $ | $ | — | $ | |||||||||||||
Definite-lived trade names | ( | ||||||||||||||||
Customer relationships | ( | ||||||||||||||||
Copyrights/patents/other | ( | ||||||||||||||||
$ | $ | ( | $ | ||||||||||||||
September 30, 2023: | |||||||||||||||||
Indefinite-lived trade names | $ | $ | — | $ | |||||||||||||
Definite-lived trade names | ( | ||||||||||||||||
Customer relationships | ( | ||||||||||||||||
Copyrights/patents/other | ( | ||||||||||||||||
$ | $ | ( | $ |
Three Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Sales: | (Dollar amounts in thousands) | |||||||||||||
Memorialization | $ | 208,071 | $ | 206,502 | ||||||||||
Industrial Technologies | 111,374 | 109,143 | ||||||||||||
SGK Brand Solutions | 130,541 | 133,595 | ||||||||||||
Consolidated Sales | $ | 449,986 | $ | 449,240 |
Adjusted EBITDA: | ||||||||||||||
Memorialization | $ | 36,700 | $ | 39,137 | ||||||||||
Industrial Technologies | 9,622 | 12,202 | ||||||||||||
SGK Brand Solutions | 12,893 | 12,232 | ||||||||||||
Corporate and Non-Operating | (13,733) | (14,280) | ||||||||||||
Total Adjusted EBITDA (1) | $ | 45,482 | $ | 49,291 |
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
(Dollar amounts in thousands) | |||||||||||
Net (loss) income | $ | (2,303) | $ | 3,647 | |||||||
Income tax (benefit) provision | (726) | 1,312 | |||||||||
(Loss) income before income taxes | (3,029) | 4,959 | |||||||||
Net loss attributable to noncontrolling interests | — | 56 | |||||||||
Interest expense, including RPA and factoring financing fees (1) | 12,751 | 10,671 | |||||||||
Depreciation and amortization * | 23,523 | 23,729 | |||||||||
Acquisition and divestiture related items (2)** | 1,237 | 1,285 | |||||||||
Strategic initiatives and other charges (3)** | 5,920 | 1,781 | |||||||||
Highly inflationary accounting losses (primarily non-cash) (4) | 320 | 1,088 | |||||||||
Stock-based compensation | 4,651 | 4,334 | |||||||||
Non-service pension and postretirement expense (5) | 109 | 1,388 | |||||||||
Total Adjusted EBITDA | $ | 45,482 | $ | 49,291 |
(1) Includes fees for receivables sold under the RPA and factoring arrangements totaling $1,175 and $456 for the three months ended December 31, 2023 and 2022, respectively. | ||
(2) Includes certain non-recurring items associated with recent acquisition and divestiture activities. | ||
(3) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. | ||
(4) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries (see Note 2, "Basis of Presentation" in Item 1 - "Financial Statements and Supplementary Data"). | ||
(5) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. |
Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |||||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Gross receivables sold | $ | 92,809 | $ | 106,971 | ||||||||||
Cash collections reinvested | (92,709) | (89,561) | ||||||||||||
Net cash proceeds received | $ | 100 | $ | 17,410 |
December 31, 2023 | September 30, 2023 | |||||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Notional amount | $ | 175,000 | $ | 175,000 | ||||||||||
Weighted-average maturity period (years) | 3.9 | 4.1 | ||||||||||||
Weighted-average received rate | 5.35 | % | 5.32 | % | ||||||||||
Weighted-average pay rate | 3.83 | % | 3.83 | % |
Payments due in fiscal year: | |||||||||||||||||||||||||||||
Total | 2024 Remainder | 2025 to 2026 | 2027 to 2028 | After 2028 | |||||||||||||||||||||||||
Contractual Cash Obligations: | (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Revolving credit facilities | $ | 521,071 | $ | — | $ | 521,071 | (2) | $ | — | $ | — | ||||||||||||||||||
2025 Senior Notes | 330,135 | 7,875 | 322,260 | — | — | ||||||||||||||||||||||||
Finance lease obligations (1) | 16,174 | 3,550 | 7,346 | 4,010 | 1,268 | ||||||||||||||||||||||||
Non-cancelable operating leases (1) | 73,805 | 19,639 | 37,681 | 13,333 | 3,152 | ||||||||||||||||||||||||
Other | 41,483 | 761 | 27,052 | 6,135 | 7,535 | ||||||||||||||||||||||||
Total contractual cash obligations | $ | 982,668 | $ | 31,825 | $ | 915,410 | $ | 23,478 | $ | 11,955 |
Period | Total number of shares purchased | Weighted-average price paid per share | Total number of shares purchased as part of a publicly announced plan | Maximum number of shares that may yet be purchased under the plan | ||||||||||||||||||||||
October 2023 | 84,962 | $ | 36.73 | 84,962 | 1,110,051 | |||||||||||||||||||||
November 2023 | 287,039 | 37.56 | 287,039 | 823,012 | ||||||||||||||||||||||
December 2023 | 93,952 | 34.94 | 93,952 | 729,060 | ||||||||||||||||||||||
Total | 465,953 | $ | 36.88 | 465,953 |
(a) | Exhibits | ||||||||||
Exhibit No. | Description | Method of Filing | |||||||||
3.1 | Restated Articles of Incorporation* | Exhibit Number 3.1 to the Annual Report on Form 10-K for the year ended September 30, 1994 (filed in paper format) | |||||||||
3.2 | Exhibit Number 3.2 to the Annual Report on Form 10-K for the year ended September 30, 2023 | ||||||||||
31.1 | Filed herewith | ||||||||||
31.2 | Filed herewith | ||||||||||
32.1 | Furnished herewith | ||||||||||
32.2 | Furnished herewith | ||||||||||
101.INS | XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed herewith | |||||||||
101.SCH | XBRL Taxonomy Extension Schema | Filed herewith | |||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | Filed herewith | |||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | Filed herewith | |||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | Filed herewith | |||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Filed herewith | |||||||||
104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101) | Filed herewith |
MATTHEWS INTERNATIONAL CORPORATION | |||||||||||
(Registrant) | |||||||||||
Date: | February 2, 2024 | By: /s/ Joseph C. Bartolacci | |||||||||
Joseph C. Bartolacci, President | |||||||||||
and Chief Executive Officer | |||||||||||
Date: | February 2, 2024 | By: /s/ Steven F. Nicola | |||||||||
Steven F. Nicola, Chief Financial Officer | |||||||||||
and Secretary | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Gross Profit [Abstract] | ||
Sales | $ 449,986 | $ 449,240 |
Cost of sales | (317,633) | (310,310) |
Gross profit | 132,353 | 138,930 |
Operating Profit [Abstract] | ||
Selling expense | (34,444) | (33,439) |
Administrative expense | (78,687) | (77,921) |
Intangible amortization | (9,795) | (10,342) |
Operating profit | 9,427 | 17,228 |
Nonoperating Income (Expense) [Abstract] | ||
Interest expense | (11,576) | (10,215) |
Other income (deductions), net | (880) | (2,054) |
(Loss) income before income taxes | (3,029) | 4,959 |
Income tax benefit (provision) | 726 | (1,312) |
Net (loss) income | (2,303) | 3,647 |
Net loss attributable to noncontrolling interests | 0 | 56 |
Net (loss) income attributable to Matthews shareholders | $ (2,303) | $ 3,703 |
(Loss) earnings per share attributable to Matthews shareholders: | ||
Basic (in dollars per share) | $ (0.07) | $ 0.12 |
Diluted (in dollars per share) | $ (0.07) | $ 0.12 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive (Loss) Income |
Treasury Stock |
Non- controlling Interests |
---|---|---|---|---|---|---|---|
Beginning balance at Sep. 30, 2022 | $ 487,076 | $ 36,334 | $ 160,255 | $ 706,749 | $ (190,191) | $ (225,795) | $ (276) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 3,647 | 3,703 | (56) | ||||
Minimum pension liability | 945 | 945 | |||||
Translation adjustment | 20,564 | 20,560 | 4 | ||||
Fair value of cash flow hedges | (404) | (404) | |||||
Total comprehensive income | 24,752 | ||||||
Stock-based compensation | 4,334 | 4,334 | |||||
Purchase of treasury stock | (2,451) | (2,451) | |||||
Issuance of treasury stock | (9,154) | 9,154 | |||||
Cancellations of treasury stock | 1,958 | (1,958) | |||||
Dividends | (8,794) | (8,794) | |||||
Ending balance at Dec. 31, 2022 | 504,917 | 36,334 | 157,393 | 701,658 | (169,090) | (221,050) | (328) |
Beginning balance at Sep. 30, 2023 | 525,281 | 36,334 | 168,211 | 714,727 | (174,404) | (219,200) | (387) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (2,303) | (2,303) | 0 | ||||
Minimum pension liability | (80) | (80) | |||||
Translation adjustment | 11,707 | 11,685 | 22 | ||||
Fair value of cash flow hedges | (4,881) | (4,881) | |||||
Total comprehensive income | 4,443 | ||||||
Stock-based compensation | 4,651 | 4,651 | |||||
Purchase of treasury stock | (17,185) | (17,185) | |||||
Issuance of treasury stock | (25,356) | 25,356 | |||||
Dividends | (8,381) | (8,381) | |||||
Transactions with noncontrolling interests | (412) | 412 | |||||
Ending balance at Dec. 31, 2023 | $ 508,809 | $ 36,334 | $ 147,094 | $ 704,043 | $ (167,680) | $ (211,029) | $ 47 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury stock (in shares) | 465,953 | 89,025 |
Issuance of treasury stock (in shares) | 678,750 | 245,006 |
Cancellations of treasury stock (in shares) | 34,327 |
Nature of Operations |
3 Months Ended |
---|---|
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Matthews International Corporation ("Matthews" or the "Company"), founded in 1850 and incorporated in Pennsylvania in 1902, is a global provider of memorialization products, industrial technologies and brand solutions. The Company manages its businesses under three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. Industrial Technologies includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. SGK Brand Solutions consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. The Company has facilities in North America, Europe, Asia, Australia, and Central and South America.
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Basis of Presentation |
3 Months Ended |
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Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information for commercial and industrial companies and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2024. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2023. The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control and any variable interest entities for which the Company is the primary beneficiary. Investments in certain companies over which the Company exerts significant influence, but does not control the financial and operating decisions, are accounted for as equity method investments. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. All intercompany accounts and transactions have been eliminated. The Company applies highly inflationary accounting for subsidiaries when the cumulative inflation rate for a three-year period meets or exceeds 100 percent. Effective April 1, 2022, the Company has applied highly inflationary accounting to its Turkish subsidiaries. Under highly inflationary accounting, the financial statements of these subsidiaries are remeasured into the Company's reporting currency (U.S. dollar) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the Consolidated Balance Sheets, until such time as the applicable economy is no longer considered highly inflationary. As of December 31, 2023 and September 30, 2023, the Company had net monetary assets related to its Turkish subsidiaries of $4,917 and $4,271, respectively. For the three months ended December 31, 2023 and December 31, 2022, exchange losses related to highly inflationary accounting totaled $320 and $1,088, respectively, and were included in the Consolidated Statements of Income within other income (deductions), net. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 2. Basis of Presentation (continued) New Accounting Pronouncements: Issued In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740) which enhances the transparency and decision usefulness of income tax disclosures including rate reconciliations and income taxes paid among other tax disclosures. The ASU is effective for annual periods for the Company beginning in fiscal year 2026. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) which improves financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities, including enhanced disclosures about significant segment expenses. The ASU is effective for annual periods for the Company beginning in fiscal year 2025, and interim periods beginning in fiscal year 2026. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements. The amendments in this update affect the presentation and disclosure of a variety of topics in the Codification, and align them with Securities and Exchange Commission ("SEC") regulations. The effective date of the amendments of this ASU will be determined for each individual disclosure based on the effective date of the SEC’s removal of the related disclosure from Regulation S-X or Regulation S-K. If the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K by June 30, 2027, then this ASU will not become effective. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Adopted In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50) which enhances the transparency of supplier finance programs by addressing disclosure requirements. Specifically, the amendment requires disclosure of key program terms, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. The adoption of this ASU in the first quarter of fiscal 2024 had no material impact on the Company's consolidated financial statements. The Company facilitates a voluntary supply chain finance program (the "Program") to provide certain suppliers with the opportunity to sell receivables due from the Company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The Company is not a party to the agreements between the suppliers and the financial institutions and has no economic interest in a supplier's decision to sell a receivable. The range of payment terms negotiated with a supplier is consistent, irrespective of whether a supplier participates in the Program. All outstanding payments owed under the Program are recorded within trade accounts payable in the Consolidated Balance Sheets. The Company accounts for all payments made under the Program as a reduction to operating cash flows in changes in working capital within the Consolidated Statements of Cash Flows. The amounts owed to a participating financial institution under the Program and included in trade accounts payable were $3,314 and $3,027 at December 31, 2023 and September 30, 2023, respectively. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract asset/liability, and payment terms and their effect on subsequent revenue recognized by the acquirer. The adoption of this ASU in the first quarter of fiscal 2024 had no material impact on the Company's consolidated financial statements.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The Company disaggregates revenue from contracts with customers by geography, as it believes geographic regions best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregated sales by segment and region for the three months ended December 31, 2023 and 2022 were as follows:
Revenue from products or services provided to customers over time accounted for approximately 19% and 13% of revenue for the three months ended December 31, 2023 and 2022, respectively.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level fair value hierarchy is used to prioritize the inputs used in valuations, as defined below:
The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows:
(1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. The carrying values for other financial assets and liabilities approximated fair value at December 31, 2023 and September 30, 2023.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following:
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Non-current investments consisted of the following:
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Debt and Financing Arrangements |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt at December 31, 2023 and September 30, 2023 consisted of the following:
The Company has a domestic credit facility with a syndicate of financial institutions that includes a $750,000 senior secured revolving credit facility, which matures in March 2025. A portion of the revolving credit facility (not to exceed $350,000) can be drawn in foreign currencies. Borrowings under the revolving credit facility bear interest at the Secured Overnight Financing Rate ("SOFR"), plus a 0.10% per annum rate spread adjustment, plus a factor ranging from 0.75% to 2.00% (1.25% at December 31, 2023) based on the Company's secured leverage ratio. The secured leverage ratio is defined as net secured indebtedness divided by EBITDA (earnings before interest, income taxes, depreciation and amortization) as defined within the domestic credit facility agreement. The Company is required to pay an annual commitment fee ranging from 0.15% to 0.30% (based on the Company's leverage ratio) of the unused portion of the revolving credit facility. The Company incurred debt issuance costs in connection with the domestic credit facility. Unamortized costs were $795 and $949 at December 31, 2023 and September 30, 2023, respectively. The domestic credit facility requires the Company to maintain certain leverage and interest coverage ratios. A portion of the facility (not to exceed $55,000) is available for the issuance of trade and standby letters of credit. Outstanding U.S. dollar denominated borrowings on the revolving credit facility at December 31, 2023 and September 30, 2023 were $454,358 and $405,000, respectively. Outstanding Euro denominated borrowings on the revolving credit facility at December 31, 2023 and September 30, 2023 were €55.0 million ($60,710) and €55.0 million ($58,168), respectively. The weighted-average interest rate on the outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at December 31, 2023 and 2022 was 5.32% and 4.24%, respectively. The Company amended the domestic credit facility in January 2024. Refer to Note 17, "Subsequent Event" for further details. Note 7. Debt and Financing Arrangements (continued) The Company has $299,625 of 5.25% senior unsecured notes due December 1, 2025 (the "2025 Senior Notes"). The 2025 Senior Notes bear interest at a rate of 5.25% per annum with interest payable semi-annually in arrears on June 1 and December 1 of each year. The Company's obligations under the 2025 Senior Notes are guaranteed by certain of the Company's direct and indirect wholly-owned subsidiaries. The Company is subject to certain covenants and other restrictions in connection with the 2025 Senior Notes. The Company incurred direct financing fees and costs in connection with the 2025 Senior Notes. Unamortized costs were $990 and $1,125 at December 31, 2023 and September 30, 2023, respectively. The Company and certain of its domestic subsidiaries sell, on a continuous basis without recourse, their trade receivables to Matthews Receivables Funding Corporation, LLC (“Matthews RFC”), a wholly-owned bankruptcy-remote subsidiary of the Company. In March 2022, Matthews RFC entered into a receivables purchase agreement (“RPA”) to sell up to $125,000 of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” within the RPA) equal to the gross receivables transferred. The parties intend that the transfers of receivables to the Purchasers constitute purchases and sales of receivables. Matthews RFC has guaranteed to each Purchaser the prompt payment of sold receivables, and has granted a security interest in its assets for the benefit of the Purchasers. Under the RPA, which matures in March 2024, each Purchaser’s share of capital accrues yield at a floating rate plus an applicable margin. The Company is the master servicer under the RPA, and is responsible for administering and collecting receivables. The proceeds of the RPA are classified as operating activities in the Company’s Consolidated Statements of Cash Flows. Cash received from collections of sold receivables may be used to fund additional purchases of receivables on a revolving basis, or to reduce all or any portion of the outstanding capital of the Purchasers. The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded. As of December 31, 2023 and September 30, 2023, the amount sold to the Purchasers was $101,900 and $101,800, respectively, which was derecognized from the Consolidated Balance Sheets. As collateral against sold receivables, Matthews RFC maintains a certain level of unsold receivables, which was $57,459 and $57,897 as of December 31, 2023 and September 30, 2023, respectively. The following table sets forth a summary of receivables sold as part of the RPA:
In March 2023, the Company, through its U.K. subsidiary, entered into a non-recourse factoring arrangement. In connection with this arrangement, the Company periodically sells trade receivables to a third-party purchaser in exchange for cash. These transfers of financial assets are recorded at the time the Company surrenders control of the assets. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are de-recognized from the Company's Consolidated Balance Sheets upon transfer. The principal amount of receivables sold under this arrangement was $17,118 during the three months ended December 31, 2023. The discounts on the trade receivables sold are included within administrative expense in the Consolidated Statements of Income. The proceeds from the sale of receivables are classified as operating activities in the Company's Consolidated Statements of Cash Flows. As of December 31, 2023 and September 30, 2023, the amount of factored receivables that remained outstanding was $16,436 and $18,045, respectively. The Company, through certain of its European subsidiaries, has a credit facility with a European bank, which is guaranteed by Matthews. The maximum amount of borrowing available under this facility is €10.0 million ($11,038). The facility also provides €18.5 million ($20,420) for bank guarantees. This facility has no stated maturity date and is available until terminated. Outstanding borrowings under the credit facility totaled €5.4 million ($6,003) at December 31, 2023. There were no outstanding borrowings under the credit facility at September 30, 2023. The weighted-average interest rate on outstanding borrowings under this facility was 6.11% and 3.96% at December 31, 2023 and 2022, respectively. Other borrowings totaled $28,117 and $19,241 at December 31, 2023 and September 30, 2023, respectively. The weighted-average interest rate on all other borrowings was 4.20% and 3.09% at December 31, 2023 and 2022, respectively. Note 7. Debt and Financing Arrangements (continued) As of December 31, 2023 and September 30, 2023, the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets. The Company was in compliance with all of its debt covenants as of December 31, 2023.
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Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company operates internationally and utilizes certain derivative financial instruments to manage its foreign currency, debt and interest rate exposures. At December 31, 2023 and September 30, 2023, derivative instruments were reflected on a gross-basis in the consolidated balance sheets as follows:
The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges:
The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. The interest rate swaps have been designated as cash flow hedges of future variable interest payments which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective. The fair value of the interest rate swaps reflected a net unrealized loss of $1,345 ($1,004 after tax) at December 31, 2023 and a net unrealized gain of $4,006 ($2,991 after tax) at September 30, 2023, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Unrecognized gains of $6,898 ($5,155 after tax) and $8,084 ($6,041 after tax) related to previously terminated LIBOR-based swaps were also included in AOCI as of December 31, 2023 and September 30, 2023, respectively. Assuming market rates remain constant with the rates at December 31, 2023, a gain (net of tax) of approximately $2,577 included in AOCI is expected to be recognized in earnings over the next twelve months. Note 8. Derivatives and Hedging Activities (continued) The Company has a U.S. Dollar/Euro cross currency swap with a notional amount of $81,392, as of December 31, 2023 and September 30, 2023, which has been designated as a net investment hedge of foreign operations. The swap contract matures in September 2027. The Company assesses hedge effectiveness for this contract based on changes in fair value attributable to changes in spot prices. A loss of $5,091 (net of income taxes of $1,728) and a loss of $2,065 (net of income taxes of $701), which represented effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at December 31, 2023 and September 30, 2023, respectively. Income of $259 and $272, which represented the recognized portion of the fair value of cross currency swaps excluded from the assessment of hedge effectiveness, was included in current period earnings as a component of interest expense for the three months ended December 31, 2023 and 2022, respectively. At December 31, 2023 and September 30, 2023, the swap totaled $6,819 and $2,766, respectively, and was included in in the Consolidated Balance Sheets. The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations with a notional amount of €55.0 million ($60,710) as of December 31, 2023. Currency losses of $1,129 (net of income taxes of $383), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at December 31, 2023. Refer to Note 12, "Accumulated Other Comprehensive Income" for further details regarding amounts recorded in AOCI and the Consolidated Statements of Income (Loss) related to derivatives.
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Share-Based Payments |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payments | Share-Based Payments The Company maintains an equity incentive plan (as amended and restated, the "2017 Equity Incentive Plan") that provides for grants of stock options, restricted shares, restricted share units, stock-based performance units and certain other types of stock-based awards. Under the 2017 Equity Incentive Plan, which has a ten-year term from the date the Company's Board of Directors approved of the amendment and restatement of the 2017 Equity Incentive Plan, the maximum number of shares available for grants or awards is an aggregate of 3,450,000 (subject to adjustment upon certain events such as stock dividends or stock splits), following the amendment and restatement of the 2017 Equity Incentive Plan at the Company's 2022 Annual Shareholder Meeting. At December 31, 2023, 1,175,258 shares have been issued under the 2017 Equity Incentive Plan. 1,233,583 time-based restricted share units, 1,579,514 performance-based restricted share units, and 75,000 stock options have been granted under the 2017 Equity Incentive Plan. 1,812,642 of these share-based awards are outstanding as of December 31, 2023. The 2017 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. The number of shares issued under performance-based restricted share units may be up to 200% of the number of performance-based restricted share units, based on the satisfaction of specific criteria established by the plan administrator. For the three-month periods ended December 31, 2023 and 2022, stock-based compensation cost totaled $4,651 and $4,334, respectively. The associated future income tax benefit recognized for stock-based compensation was $684 and $551 for the three-month periods ended December 31, 2023 and 2022, respectively. With respect to the restricted share unit grants, units generally vest on the third anniversary of the grant date. The number of units that vest depend on certain time and performance thresholds. Such performance thresholds include adjusted earnings per share, return on invested capital, appreciation in the market value of the Company's Class A Common Stock, or other targets established by the Compensation Committee of the Board of Directors. Approximately 40% of the outstanding share units vest based on time, while the remaining vest based on pre-defined performance thresholds. The Company issues common stock from treasury shares once the units become vested. Note 9. Share-Based Payments (continued) The transactions for restricted share units for the three months ended December 31, 2023 were as follows:
During the third quarter of fiscal 2021, 75,000 stock options were granted under the 2017 Equity Incentive Plan. The option price for each stock option granted was $41.70, which was equal to the fair market value of the Company's Class A Common Stock on the date of grant. These options vest in one-third increments annually over three years from the grant date. Unvested stock options expire on the earlier of five years from the date of grant, or upon employment termination, retirement or death. The Company generally settles employee stock option exercises with treasury shares. As of December 31, 2023, the total unrecognized compensation cost related to all unvested stock-based awards was $31,712 and is expected to be recognized over a weighted average period of 2.3 years. The fair value of certain stock-based awards that are subject to performance conditions are estimated on the date of grant using a binomial lattice valuation model. The following table indicates the assumptions used in estimating the fair value of certain stock-based awards granted during the three-month period ended December 31, 2023.
The risk-free interest rate is based on United States Treasury yields at the date of grant. The dividend yield is based on the most recent dividend payment and average stock price over the 12 months prior to the grant date. Expected volatilities are based on the historical volatility of the Company's stock price. The expected term for grants in the three months ended December 31, 2023 represents an estimate of the average period of time for restricted share units to vest. The Company maintains the Amended and Restated 2019 Director Fee Plan, the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan (collectively, the "Director Fee Plans"). There will be no further fees or share-based awards granted under the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan. Under the Amended and Restated 2019 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2024, either cash or shares of the Company's Class A Common Stock with a value equal to $90. The annual retainer fee for fiscal 2024 paid to the non-employee Chairman of the Board is $210. Where the annual retainer fee is provided in shares, each director may elect to be paid these shares on a current basis or have such shares credited to a deferred stock account as phantom stock, with such shares to be paid to the director subsequent to leaving the Board. The total number of shares of stock that have been authorized to be issued under the Amended and Restated 2019 Director Fee Plan or credited to a deferred stock compensation account for subsequent issuance is 300,000 shares of Class A Common Stock (subject to adjustment upon certain events such as stock dividends or stock splits), following the amendment and restatement of the 2019 Director Fee Plan at the Company's 2023 Annual Shareholder Meeting. The value of deferred shares is recorded in other liabilities. A total of 45,493 shares and share units had been deferred under the Director Fee Plans as of December 31, 2023. Additionally, non-employee directors each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares or units) with a value of $140 for fiscal 2024. As of December 31, 2023, 336,127 restricted shares and restricted share units have been granted under the Director Fee Plans, 162,898 of which were issued under the 2019 Director Fee Plan. 60,057 restricted share units are unvested at December 31, 2023 under the Director Fee Plans.
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Earnings Per Share Attributable to Matthews' Shareholders |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Attributable to Matthews' Shareholders | Earnings Per Share Attributable to Matthews' Shareholders The information used to compute (loss) earnings per share attributable to Matthews' common shareholders was as follows:
Anti-dilutive securities excluded from the dilution calculation were insignificant for the three months ended December 31, 2022. During periods in which the Company incurs a net loss, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive.
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Pension and Other Postretirement Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company provides defined benefit pension and other postretirement plans to certain employees. Net periodic pension and other postretirement benefit cost for the plans included the following:
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Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in AOCI by component, net of tax, for the three-month periods ended December 31, 2023 and 2022 were as follows:
(a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 11). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 8). Note 12. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three-month periods ended December 31, 2023 and 2022 were as follows:
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Income Taxes |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year. The Company's consolidated income taxes for the first three months of fiscal 2024 were a benefit of $726, compared to an expense of $1,312 for the first three months of fiscal 2023. The difference between the Company’s consolidated income taxes for the first three months of fiscal 2024 compared to the same period for fiscal 2023 resulted from a consolidated pre-tax loss in fiscal 2024 compared to pre-tax income in fiscal 2023 as well as a net tax benefit from discrete items. The Company’s fiscal 2024 three month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to state taxes, foreign statutory rate differentials, tax credits, and a net discrete tax benefit. The Company’s fiscal 2023 three month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to state taxes, foreign statutory rate differentials, and tax credits. The Company had unrecognized tax benefits (excluding penalties and interest) of $4,245 and $3,779 on December 31, 2023 and September 30, 2023, respectively, which would impact the annual effective rate at December 31, 2023 and September 30, 2023, respectively. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $2,913 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitations. The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $804 and $730 at December 31, 2023 and September 30, 2023, respectively. These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions. Note 13. Income Taxes (continued) The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions. As of December 31, 2023, the tax years that remain subject to examination by major jurisdictions generally are:
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Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company manages its businesses under three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. The Company's primary measure of segment profitability is adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA"). Adjusted EBITDA is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of its operating results. These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition and divestiture costs, enterprise resource planning ("ERP") integration costs, and strategic initiatives and other charges. This presentation is consistent with how the Company's chief operating decision maker (the “CODM”) evaluates the results of operations and makes strategic decisions about the business. For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss. In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis. Accordingly, for segment reporting purposes, the Company does not allocate corporate costs to its reportable segments. Corporate costs include management and administrative support to the Company, which consists of certain aspects of the Company’s executive management, legal, compliance, human resources, information technology (including operational support) and finance departments. These costs are included within "Corporate and Non-Operating" in the following table to reconcile to consolidated adjusted EBITDA and are not considered a separate reportable segment. Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to the segments. Note 14. Segment Information (continued) The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income.
* Depreciation and amortization was $6,413 and $5,574 for the Memorialization segment, $6,377 and $5,853 for the Industrial Technologies segment, $9,572 and $11,060 for the SGK Brand Solutions segment, and $1,161 and $1,242 for Corporate and Non-Operating, for the three months ended December 31, 2023 and 2022, respectively. ** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $60 and $378 for the Memorialization segment, $5,367 and $937 for the Industrial Technologies segment, $863 and $521 for the SGK Brand Solutions segment, $867 and $1,230 for Corporate and Non-Operating, for the three months ended December 31, 2023 and 2022, respectively.
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Acquisitions and Divestitures |
3 Months Ended |
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Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Fiscal 2023: In September 2023, the Company completed a small divestiture within the Industrial Technologies segment. Net proceeds from the divestiture totaled approximately $6,700, and the transaction resulted in a pre-tax gain of $1,827, which was recorded as a component of administrative expenses in the fourth quarter of fiscal 2023. The transaction also included $2,250 of contingent consideration, which represents the maximum amount the Company could potentially recognize at the resolution of the two-year contingency period. In March 2023, the Company purchased the remaining ownership interest in a non-consolidated Industrial Technologies subsidiary for $4,759 (net of cash acquired and holdbacks). The Company finalized the allocation of the purchase price in the first quarter of fiscal 2024, resulting in no significant adjustments. In February 2023, the Company acquired Eagle Granite Company ("Eagle") within the Memorialization segment for a total purchase price of $18,384, consisting of cash of $8,650 (net of cash acquired) and a deferred purchase price amount of $9,734, which is scheduled to be paid to the seller two years from the acquisition date. In addition, the Company recorded a liability of approximately $3,800 for potential future contingent consideration related to certain earnout provisions, which, if owed, is scheduled to be paid to the seller four years from the acquisition date. Eagle serves cemeteries and monument companies with a full complement of granite memorialization products. The Company finalized the allocation of the purchase price in the first quarter of fiscal 2024, resulting in adjustments to certain liability accounts. During the first fiscal quarter of 2023, the Company completed small acquisitions within the SGK Brand Solutions segment for a combined purchase price of $1,932 (net of cash acquired and holdbacks). The Company finalized the purchase price allocations in the fourth quarter of fiscal 2023, resulting in an immaterial adjustment to certain tax accounts.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows:
The net goodwill balances at December 31, 2023 and September 30, 2023 included $261,186 of accumulated impairment losses. Accumulated impairment losses at December 31, 2023 and September 30, 2023 were $5,000, $23,946 and $232,240 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively. The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2023 (January 1, 2023) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary. The Company performed an interim assessment of its SGK Brand Solutions goodwill reporting unit as of September 1, 2023. The results of this review indicated that the estimated fair value of the Company's SGK Brand Solutions reporting unit exceeded the carrying value (expressed as a percentage of carrying value) by approximately 4%. The fair value for the reporting unit was determined using level 3 inputs (including estimates of revenue growth, EBITDA contribution and the discount rates) and a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology. If current projections are not achieved or specific valuation factors outside the Company's control (such as discount rates and continued economic and industry challenges) significantly change, additional goodwill write-downs may be necessary in future periods. Note 16. Goodwill and Other Intangible Assets (continued) The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2023 and September 30, 2023, respectively.
The net change in intangible assets during the three months ended December 31, 2023 included the impact of foreign currency fluctuations during the period and additional amortization. Amortization expense on intangible assets was $9,795 and $10,342 for the three-month periods ended December 31, 2023 and 2022, respectively. Amortization expense is estimated to be $26,436 for the remainder of fiscal 2024, $20,493 in 2025, $14,081 in 2026, $13,007 in 2027 and $10,960 in 2028.
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Subsequent Event |
3 Months Ended |
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Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On January 31, 2024, subsequent to the date of the balance sheet, the Company amended its domestic credit facility. The amended domestic credit facility now matures in January 2029, subject to the terms and conditions of the amended facility. Under the amended domestic credit facility, borrowing limits remain unchanged, and borrowings bear interest at SOFR, plus a 0.10% per annum rate spread adjustment, plus a factor ranging from 1.00% to 2.00% based on the Company's leverage ratio. The leverage ratio is defined as total indebtedness divided by EBITDA (earnings before interest, income taxes, depreciation and amortization) as defined within the amended domestic credit facility agreement. Other critical terms of the domestic credit facility remain unchanged.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2023 |
Dec. 31, 2022 |
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Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ (2,303) | $ 3,703 |
Insider Trading Arrangements |
3 Months Ended |
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Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
3 Months Ended |
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Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: Issued In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740) which enhances the transparency and decision usefulness of income tax disclosures including rate reconciliations and income taxes paid among other tax disclosures. The ASU is effective for annual periods for the Company beginning in fiscal year 2026. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) which improves financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities, including enhanced disclosures about significant segment expenses. The ASU is effective for annual periods for the Company beginning in fiscal year 2025, and interim periods beginning in fiscal year 2026. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements. The amendments in this update affect the presentation and disclosure of a variety of topics in the Codification, and align them with Securities and Exchange Commission ("SEC") regulations. The effective date of the amendments of this ASU will be determined for each individual disclosure based on the effective date of the SEC’s removal of the related disclosure from Regulation S-X or Regulation S-K. If the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K by June 30, 2027, then this ASU will not become effective. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Adopted In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50) which enhances the transparency of supplier finance programs by addressing disclosure requirements. Specifically, the amendment requires disclosure of key program terms, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. The adoption of this ASU in the first quarter of fiscal 2024 had no material impact on the Company's consolidated financial statements. The Company facilitates a voluntary supply chain finance program (the "Program") to provide certain suppliers with the opportunity to sell receivables due from the Company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The Company is not a party to the agreements between the suppliers and the financial institutions and has no economic interest in a supplier's decision to sell a receivable. The range of payment terms negotiated with a supplier is consistent, irrespective of whether a supplier participates in the Program. All outstanding payments owed under the Program are recorded within trade accounts payable in the Consolidated Balance Sheets. The Company accounts for all payments made under the Program as a reduction to operating cash flows in changes in working capital within the Consolidated Statements of Cash Flows. The amounts owed to a participating financial institution under the Program and included in trade accounts payable were $3,314 and $3,027 at December 31, 2023 and September 30, 2023, respectively. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract asset/liability, and payment terms and their effect on subsequent revenue recognized by the acquirer. The adoption of this ASU in the first quarter of fiscal 2024 had no material impact on the Company's consolidated financial statements.
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Revenue Recognition (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Disaggregated sales by segment and region for the three months ended December 31, 2023 and 2022 were as follows:
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Fair Value Measurements (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows:
(1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy.
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Inventories (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
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Investments (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Current Investments | Non-current investments consisted of the following:
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Debt and Financing Arrangements (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt at December 31, 2023 and September 30, 2023 consisted of the following:
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Summary of Receivables Sold | The following table sets forth a summary of receivables sold as part of the RPA:
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Derivatives and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Contracts as Reflected on Balance Sheet | At December 31, 2023 and September 30, 2023, derivative instruments were reflected on a gross-basis in the consolidated balance sheets as follows:
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Interest Rate Contracts | The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges:
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Share-Based Payments (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activity | The transactions for restricted share units for the three months ended December 31, 2023 were as follows:
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Schedule of Assumptions Used in Estimating Fair Value | The following table indicates the assumptions used in estimating the fair value of certain stock-based awards granted during the three-month period ended December 31, 2023.
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Earnings Per Share Attributable to Matthews' Shareholders (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Used to Compute Earnings (Loss) per Share Attributable to Matthews' Common Shareholders | The information used to compute (loss) earnings per share attributable to Matthews' common shareholders was as follows:
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Pension and Other Postretirement Benefit Plans (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension and Other Postretirement Benefit Cost | Net periodic pension and other postretirement benefit cost for the plans included the following:
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Accumulated Other Comprehensive Income (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in AOCI by Component | The changes in AOCI by component, net of tax, for the three-month periods ended December 31, 2023 and 2022 were as follows:
(a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 11). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 8).
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Reclassifications out of AOCI | Reclassifications out of AOCI for the three-month periods ended December 31, 2023 and 2022 were as follows:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax Years Subject to Examination | As of December 31, 2023, the tax years that remain subject to examination by major jurisdictions generally are:
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Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About the Company's Segments | The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income.
* Depreciation and amortization was $6,413 and $5,574 for the Memorialization segment, $6,377 and $5,853 for the Industrial Technologies segment, $9,572 and $11,060 for the SGK Brand Solutions segment, and $1,161 and $1,242 for Corporate and Non-Operating, for the three months ended December 31, 2023 and 2022, respectively. ** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $60 and $378 for the Memorialization segment, $5,367 and $937 for the Industrial Technologies segment, $863 and $521 for the SGK Brand Solutions segment, $867 and $1,230 for Corporate and Non-Operating, for the three months ended December 31, 2023 and 2022, respectively.
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Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Attributable to Each Segment | A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows:
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Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2023 and September 30, 2023, respectively.
|
Nature of Operations (Details) |
3 Months Ended |
---|---|
Dec. 31, 2023
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Basis of Presentation (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net monetary assets | $ 4,917 | $ 4,271 | |
Accounts payable, trade | 3,314 | $ 3,027 | |
Other Nonoperating Income (Expense) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Exchange loss due to highly inflationary accounting | $ 320 | $ 1,088 |
Revenue Recognition - Narrative (Details) |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Revenue Benchmark | Product Concentration Risk | Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 19.00% | 13.00% |
Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Inventories, net [Abstract] | ||
Raw materials | $ 72,355 | $ 70,451 |
Work in process | 107,825 | 108,400 |
Finished goods | 77,656 | 81,558 |
Inventories | $ 257,836 | $ 260,409 |
Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 713 | $ 699 |
Life insurance policies | 5,038 | 4,926 |
Equity-method investments | 350 | 323 |
Other (primarily cost-method) investments | 19,123 | 19,040 |
Total non-current investments | $ 25,224 | $ 24,988 |
Debt and Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 862,371 | $ 790,180 |
Finance lease obligations | $ 14,548 | $ 9,271 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Less current maturities | $ (4,948) | $ (3,696) |
Long-term debt | 857,423 | 786,484 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 298,635 | 298,500 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 28,117 | 19,241 |
Revolving credit facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | $ 521,071 | $ 463,168 |
Debt and Financing Arrangements - Summary of Receivables Sold (Details) - Receivables Purchase Agreement - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Gross receivables sold | $ 92,809 | $ 106,971 |
Cash collections reinvested | (92,709) | (89,561) |
Net cash proceeds received | $ 100 | $ 17,410 |
Derivatives and Hedging Activities - Interest Rate Contracts (Details) - Interest Rate Swaps - Cash flow hedges - Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2023 |
Sep. 30, 2023 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 175,000 | $ 175,000 |
Weighted-average maturity period (years) | 3 years 10 months 24 days | 4 years 1 month 6 days |
Weighted-average received rate | 5.35% | 5.32% |
Weighted-average pay rate | 3.83% | 3.83% |
Share-Based Payments - Restricted Stock Activity (Details) - Restricted Stock |
3 Months Ended |
---|---|
Dec. 31, 2023
$ / shares
shares
| |
Restricted Share Units | |
Non-vested at beginning of period (in shares) | shares | 1,728,697 |
Granted (in shares) | shares | 458,320 |
Vested (in shares) | shares | (446,475) |
Expired or forfeited (in shares) | shares | (2,900) |
Non-vested at end of period (in shares) | shares | 1,737,642 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 30.90 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 40.39 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 30.06 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 34.83 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 33.61 |
Share-Based Payments - Assumptions Used in Estimating Fair Value (Details) |
3 Months Ended |
---|---|
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Expected volatility | 31.80% |
Dividend yield | 2.40% |
Average risk-free interest rate | 4.70% |
Average expected term (years) | 3 years |
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Earnings Per Share [Abstract] | ||
Net (loss) income attributable to Matthews shareholders | $ (2,303) | $ 3,703 |
Weighted-average shares outstanding (in thousands): | ||
Basic shares (in shares) | 30,915 | 30,712 |
Effect of dilutive securities (in shares) | 0 | 241 |
Diluted shares (in shares) | 30,915 | 30,953 |
Dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.23 |
Pension and Other Postretirement Benefit Plans - Net Periodic Pension and Other Postretirement Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Amortization: | ||
Settlement losses | $ 0 | $ (24,242) |
Pension | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 30 | 57 |
Interest cost | 129 | 143 |
Amortization: | ||
Prior service credit | 0 | 0 |
Net actuarial gain | (11) | (10) |
Settlement losses | 0 | 1,271 |
Net benefit cost | 148 | 1,461 |
Other Postretirement | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 14 | 19 |
Interest cost | 171 | 161 |
Amortization: | ||
Prior service credit | (91) | (91) |
Net actuarial gain | (180) | (177) |
Settlement losses | 0 | 0 |
Net benefit cost | $ (86) | $ (88) |
Pension and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses | $ 0 | $ (24,242) |
SERP, DB, and ORRP Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit payments | $ 24,242 | |
Settlement losses | $ 1,271 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (726) | $ 1,312 | |
Unrecognized tax benefits | 4,245 | $ 3,779 | |
Decrease reasonably possible in next 12 months | 2,913 | ||
Total penalties and interest accrued | $ 804 | $ 730 |
Acquisitions and Divestitures (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
Feb. 28, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | |||||
Payment to acquire business, net of cash acquired | $ 0 | $ 1,759 | |||
Industrial Technologies | |||||
Business Acquisition [Line Items] | |||||
Payment to acquire business, net of cash acquired | $ 4,759 | ||||
Proceeds from divestitures | $ 6,700 | ||||
Gain on disposition | 1,827 | ||||
Contingent consideration receivable | $ 2,250 | ||||
Contingent consideration receivable, contingency period | 2 years | ||||
Memorialization | |||||
Business Acquisition [Line Items] | |||||
Payment to acquire business, net of cash acquired | $ 8,650 | ||||
Purchase price | 18,384 | ||||
Deferred purchase price amount | $ 9,734 | ||||
Deferred purchase price amount, payment term | 2 years | ||||
Contingent consideration liability | $ 3,800 | ||||
Contingent consideration liability, payment term | 4 years | ||||
SGK Brand Solutions | |||||
Business Acquisition [Line Items] | |||||
Payment to acquire business, net of cash acquired | $ 1,932 |
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 698,109 |
Translation and other adjustments | 10,852 |
Balance at end of period | 708,961 |
Memorialization | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 366,015 |
Translation and other adjustments | 4,013 |
Balance at end of period | 370,028 |
Industrial Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 115,073 |
Translation and other adjustments | 931 |
Balance at end of period | 116,004 |
SGK Brand Solutions | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 217,021 |
Translation and other adjustments | 5,908 |
Balance at end of period | $ 222,929 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Goodwill [Line Items] | |||
Accumulated impairment charges | $ 261,186 | $ 261,186 | |
Percentage of fair value in excess of carrying amount | 4.00% | ||
Amortization expense on intangible assets | 9,795 | $ 10,342 | |
Future amortization expense [Abstract] | |||
Future amortization expense for the remainder 2023 | 26,436 | ||
Future amortization expense 2024 | 20,493 | ||
Future amortization expense 2025 | 14,081 | ||
Future amortization expense 2026 | 13,007 | ||
Future amortization expense 2027 | 10,960 | ||
Memorialization | |||
Goodwill [Line Items] | |||
Accumulated impairment charges | 5,000 | $ 5,000 | |
Industrial Technologies | |||
Goodwill [Line Items] | |||
Accumulated impairment charges | 23,946 | 23,946 | |
SGK Brand Solutions | |||
Goodwill [Line Items] | |||
Accumulated impairment charges | $ 232,240 | $ 232,240 |
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 579,618 | $ 579,261 |
Accumulated Amortization | (428,276) | (418,783) |
Net | 151,342 | 160,478 |
Definite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 151,481 | 151,185 |
Accumulated Amortization | (123,849) | (122,474) |
Net | 27,632 | 28,711 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 377,957 | 378,161 |
Accumulated Amortization | (288,596) | (280,910) |
Net | 89,361 | 97,251 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 19,640 | 19,375 |
Accumulated Amortization | (15,831) | (15,399) |
Net | 3,809 | 3,976 |
Indefinite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 30,540 | 30,540 |
Net | $ 30,540 | $ 30,540 |
Subsequent Event (Details) - Subsequent Event - Revolving credit facilities - SOFR |
Jan. 31, 2024 |
---|---|
Subsequent Event [Line Items] | |
Rate spread adjustment (as a percent) | 0.10% |
Minimum | |
Subsequent Event [Line Items] | |
Rate spread adjustment (as a percent) | 1.00% |
Maximum | |
Subsequent Event [Line Items] | |
Rate spread adjustment (as a percent) | 2.00% |
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