(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, 2022 | September 30, 2022 | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | |||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Restricted cash, current | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Other current liabilities | |||||||||||||||||||||||
Total current liabilities | |||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||
Operating lease liabilities | |||||||||||||||||||||||
Accrued pension | |||||||||||||||||||||||
Postretirement benefits | |||||||||||||||||||||||
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, | |||||||||||
2022 | 2021 | ||||||||||
Sales | $ | $ | |||||||||
Cost of sales | ( | ( | |||||||||
Gross profit | |||||||||||
Selling expense | ( | ( | |||||||||
Administrative expense | ( | ( | |||||||||
Intangible amortization | ( | ( | |||||||||
Operating profit | |||||||||||
Interest expense | ( | ( | |||||||||
Other income (deductions), net | ( | ( | |||||||||
Income (loss) before income taxes | ( | ||||||||||
Income tax (provision) benefit | ( | ||||||||||
Net income (loss) | ( | ||||||||||
Net loss attributable to noncontrolling interests | |||||||||||
Net income (loss) attributable to Matthews shareholders | $ | $ | ( | ||||||||
Earnings (loss) per share attributable to Matthews shareholders: | |||||||||||
Basic | $ | $ | ( | ||||||||
Diluted | $ | $ | ( |
Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||
Matthews | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Net income (loss): | $ | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Other comprehensive income (loss) ("OCI"), net of tax: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||||||||||||||
Pension plans and other postretirement benefits | |||||||||||||||||||||||||||||||||||
Unrecognized gain (loss) on cash flow hedges: | |||||||||||||||||||||||||||||||||||
Net change from periodic revaluation | |||||||||||||||||||||||||||||||||||
Net amount reclassified to earnings | ( | ( | |||||||||||||||||||||||||||||||||
Net change in unrecognized (loss) gain 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, 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 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non- controlling Interests | Total | |||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net 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, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred tax (benefit) provision | ( | ||||||||||
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 | |||||||||||
Increase (decrease) 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, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents and restricted cash 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, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
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, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Life insurance policies | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
December 31, 2022 | September 30, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
$ | $ |
December 31, 2022 | September 30, 2022 | ||||||||||
Life insurance policies | $ | $ | |||||||||
Equity-method investments | |||||||||||
Other (primarily cost-method) investments | |||||||||||
$ | $ |
December 31, 2022 | September 30, 2022 | ||||||||||
Revolving credit facilities | $ | $ | |||||||||
2025 Senior Notes | |||||||||||
Other borrowings | |||||||||||
Total debt | |||||||||||
Less current maturities | ( | ( | |||||||||
Long-term debt | $ | $ |
Derivatives: | December 31, 2022 | September 30, 2022 | ||||||||||||||||||
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, 2022 | September 30, 2022 | |||||||||||||
Notional amount | $ | $ | ||||||||||||
Weighted-average maturity period (years) | ||||||||||||||
Weighted-average received rate | % | % | ||||||||||||
Weighted-average pay rate | % | % |
Shares /Units | Weighted- average Grant-date Fair Value | ||||||||||
Non-vested at September 30, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Expired or forfeited | ( | ||||||||||
Non-vested at December 31, 2022 | $ |
Three Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income (loss) 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 | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost * | |||||||||||||||||||||||
Expected return on plan assets * | ( | ||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||
Prior service credit | ( | ( | |||||||||||||||||||||
Net actuarial loss * | ( | ( | |||||||||||||||||||||
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, 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 | $ | $ | $ | $ |
Post-retirement benefit plans | Currency translation adjustment | Cash Flow Hedges | Total | |||||||||||||||||||||||
Attributable to Matthews: | ||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
OCI before reclassification | ( | |||||||||||||||||||||||||
Amounts reclassified from AOCI | (a) | ( | (b) | |||||||||||||||||||||||
Net current-period OCI | ( | |||||||||||||||||||||||||
Balance, December 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Attributable to noncontrolling interest: | ||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||
OCI before reclassification | ||||||||||||||||||||||||||
Net current-period OCI | ||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ |
Details about AOCI Components | Three Months Ended December 31, 2022 | Three Months Ended December 31, 2021 | Affected line item in the Statement of income | |||||||||||||||||
Postretirement benefit plans | ||||||||||||||||||||
Prior service credit (a) | $ | $ | ||||||||||||||||||
Actuarial losses | ( | Other income (deductions), net | ||||||||||||||||||
Settlement losses | ( | ( | 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 | 2019 and forward | ||||
United States – State | 2018 and forward | ||||
Canada | 2018 and forward | ||||
Germany | 2019 and forward | ||||
United Kingdom | 2021 and forward | ||||
Singapore | 2018 and forward | ||||
Australia | 2017 and forward |
Three Months Ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Sales: | ||||||||||||||
Memorialization | $ | $ | ||||||||||||
Industrial Technologies | ||||||||||||||
SGK Brand Solutions | ||||||||||||||
Consolidated Sales | $ | $ |
Adjusted EBITDA: | ||||||||||||||
Memorialization | $ | $ | ||||||||||||
Industrial Technologies | ||||||||||||||
SGK Brand Solutions | ||||||||||||||
Corporate and Non-Operating | ( | ( | ||||||||||||
Total Adjusted EBITDA | $ | $ | ||||||||||||
RPA financing fees (1) | ( | |||||||||||||
Acquisition costs (2)** | ( | |||||||||||||
Strategic initiatives and other charges (3)** | ( | ( | ||||||||||||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (4)*** | ( | |||||||||||||
Exchange losses related to highly inflationary accounting (5) | ( | |||||||||||||
Defined benefit plan termination related items (6) | ( | ( | ||||||||||||
Stock-based compensation | ( | ( | ||||||||||||
Non-service pension and postretirement expense (7) | ( | ( | ||||||||||||
Depreciation and amortization * | ( | ( | ||||||||||||
Interest expense | ( | ( | ||||||||||||
Net loss attributable to noncontrolling interests | ( | ( | ||||||||||||
Income (loss) before income taxes | ( | |||||||||||||
Income tax (provision) benefit | ( | |||||||||||||
Net income (loss) | $ | $ | ( |
(1) Represents fees for receivables sold under the RPA (see Note 7, "Debt and Financing Arrangements"). | ||
(2) Includes certain non-recurring costs associated with recent acquisition activities. | ||
(3) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels, costs associated with global ERP system integration efforts, and asset write-downs associated with certain operations in Russia, net of recoveries. | ||
(4) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. | ||
(5) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries (see Note 2, "Basis of Presentation"). | ||
(6) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. | ||
(7) 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. |
Memorialization | Industrial Technologies | SGK Brand Solutions | Consolidated | ||||||||||||||||||||
Net goodwill at September 30, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Additions during period | |||||||||||||||||||||||
Translation and other adjustments | |||||||||||||||||||||||
Net goodwill at December 31, 2022 | $ | $ | $ | $ |
Carrying Amount | Accumulated Amortization | Net | |||||||||||||||
December 31, 2022: | |||||||||||||||||
Indefinite-lived trade names | $ | $ | — | $ | |||||||||||||
Definite-lived trade names | ( | ||||||||||||||||
Customer relationships | ( | ||||||||||||||||
Copyrights/patents/other | ( | ||||||||||||||||
$ | $ | ( | $ | ||||||||||||||
September 30, 2022: | |||||||||||||||||
Indefinite-lived trade names | $ | $ | — | $ | |||||||||||||
Definite-lived trade names | ( | ||||||||||||||||
Customer relationships | ( | ||||||||||||||||
Copyrights/patents/other | ( | ||||||||||||||||
$ | $ | ( | $ |
Three Months Ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Sales: | (Dollar amounts in thousands) | |||||||||||||
Memorialization | $ | 206,502 | $ | 210,706 | ||||||||||
Industrial Technologies | 109,143 | 74,331 | ||||||||||||
SGK Brand Solutions | 133,595 | 153,542 | ||||||||||||
Consolidated Sales | $ | 449,240 | $ | 438,579 |
Adjusted EBITDA: | ||||||||||||||
Memorialization | $ | 39,137 | $ | 43,370 | ||||||||||
Industrial Technologies | 12,202 | 7,183 | ||||||||||||
SGK Brand Solutions | 12,232 | 15,414 | ||||||||||||
Corporate and Non-Operating | (14,280) | (12,634) | ||||||||||||
Total Adjusted EBITDA (1) | $ | 49,291 | $ | 53,333 |
Three Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollar amounts in thousands) | |||||||||||
Net income (loss) | $ | 3,647 | $ | (19,810) | |||||||
Income tax provision (benefit) | 1,312 | (6,628) | |||||||||
Income (loss) before income taxes | 4,959 | (26,438) | |||||||||
Net loss attributable to noncontrolling interests | 56 | 7 | |||||||||
Interest expense | 10,215 | 6,507 | |||||||||
Depreciation and amortization * | 23,729 | 33,501 | |||||||||
RPA financing fees (1) | 456 | — | |||||||||
Acquisition costs (2)** | 1,285 | — | |||||||||
Strategic initiatives and other charges (3)** | 1,760 | 3,823 | |||||||||
Non-recurring / incremental COVID-19 costs (4)*** | — | 690 | |||||||||
Exchange losses related to highly inflationary accounting (5) | 1,088 | — | |||||||||
Defined benefit plan termination related items (6) | 21 | 426 | |||||||||
Stock-based compensation | 4,334 | 3,709 | |||||||||
Non-service pension and postretirement expense (7) | 1,388 | 31,108 | |||||||||
Total Adjusted EBITDA | $ | 49,291 | $ | 53,333 |
(1) Represents fees for receivables sold under the RPA (see "Liquidity and Capital Resources"). | ||
(2) Includes certain non-recurring costs associated with recent acquisition activities. | ||
(3) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels, costs associated with global ERP system integration efforts, and asset write-downs associated with certain operations in Russia, net of recoveries. | ||
(4) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. | ||
(5) 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"). | ||
(6) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. | ||
(7) 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. |
December 31, 2022 | September 30, 2022 | |||||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Notional amount | $ | 125,000 | $ | 125,000 | ||||||||||
Weighted-average maturity period (years) | 2.6 | 3.1 | ||||||||||||
Weighted-average received rate | 4.39 | % | 3.14 | % | ||||||||||
Weighted-average pay rate | 1.04 | % | 1.04 | % |
Payments due in fiscal year: | |||||||||||||||||||||||||||||
Total | 2023 Remainder | 2024 to 2025 | 2026 to 2027 | After 2027 | |||||||||||||||||||||||||
Contractual Cash Obligations: | (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Revolving credit facilities | $ | 509,489 | $ | — | $ | 495,391 | $ | — | $ | 14,098 | |||||||||||||||||||
2025 Senior Notes | 345,346 | 7,875 | 31,500 | 305,971 | — | ||||||||||||||||||||||||
Finance lease obligations (1) | 7,050 | 1,754 | 2,494 | 1,538 | 1,264 | ||||||||||||||||||||||||
Non-cancelable operating leases (1) | 81,365 | 18,898 | 39,558 | 18,890 | 4,019 | ||||||||||||||||||||||||
Other | 23,005 | 723 | 11,837 | 2,155 | 8,290 | ||||||||||||||||||||||||
Total contractual cash obligations | $ | 966,255 | $ | 29,250 | $ | 580,780 | $ | 328,554 | $ | 27,671 |
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 2022 | — | $ | — | — | 1,294,842 | |||||||||||||||||||||
November 2022 | 88,042 | 27.54 | 88,042 | 1,206,800 | ||||||||||||||||||||||
December 2022 | 983 | 27.54 | 983 | 1,205,817 | ||||||||||||||||||||||
Total | 89,025 | $ | 27.54 | 89,025 |
(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 3.1 to the Current Report on Form 8-K filed on January 14, 2021 | ||||||||||
10.1 | Filed herewith | ||||||||||
10.2 | Exhibit Number 10.1 to current report on Form 8-K filed on December 30, 2022 | ||||||||||
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: | January 27, 2023 | By: /s/ Joseph C. Bartolacci | |||||||||
Joseph C. Bartolacci, President | |||||||||||
and Chief Executive Officer | |||||||||||
Date: | January 27, 2023 | 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, 2022 |
Dec. 31, 2021 |
|
Income Statement [Abstract] | ||
Sales | $ 449,240 | $ 438,579 |
Cost of sales | (310,310) | (306,942) |
Gross profit | 138,930 | 131,637 |
Selling expense | (33,439) | (30,743) |
Administrative expense | (77,921) | (68,569) |
Intangible amortization | (10,342) | (21,546) |
Operating profit | 17,228 | 10,779 |
Interest expense | (10,215) | (6,507) |
Other income (deductions), net | (2,054) | (30,710) |
Income (loss) before income taxes | 4,959 | (26,438) |
Income tax (provision) benefit | (1,312) | 6,628 |
Net income (loss) | 3,647 | (19,810) |
Net loss attributable to noncontrolling interests | 56 | 7 |
Net income (loss) attributable to Matthews shareholders | $ 3,703 | $ (19,803) |
Earnings (loss) per share attributable to Matthews shareholders: | ||
Basic (in dollars per share) | $ 0.12 | $ (0.62) |
Diluted (in dollars per share) | $ 0.12 | $ (0.62) |
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, 2021 | $ 636,403 | $ 36,334 | $ 149,484 | $ 834,208 | $ (192,739) | $ (190,739) | $ (145) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (19,810) | (19,803) | (7) | ||||
Minimum pension liability | 34,133 | 34,133 | |||||
Translation adjustment | (1,985) | (1,989) | 4 | ||||
Fair value of cash flow hedges | 1,481 | 1,481 | |||||
Comprehensive income (loss) | 13,819 | ||||||
Stock-based compensation | 3,709 | 3,709 | |||||
Purchase of treasury stock | (2,435) | (2,435) | |||||
Issuance of treasury stock | 0 | (6,859) | 6,859 | ||||
Cancellations of treasury stock | 0 | 2,091 | (2,091) | ||||
Dividends | (6,824) | (6,824) | |||||
Ending balance at Dec. 31, 2021 | 644,672 | 36,334 | 148,425 | 807,581 | (159,114) | (188,406) | (148) |
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 income (loss) | 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) | |||||
Comprehensive income (loss) | 24,752 | ||||||
Stock-based compensation | 4,334 | 4,334 | |||||
Purchase of treasury stock | (2,451) | (2,451) | |||||
Issuance of treasury stock | 0 | (9,154) | 9,154 | ||||
Cancellations of treasury stock | 0 | 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) |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury stock (in shares) | 89,025 | 62,746 |
Issuance of treasury stock (in shares) | 245,006 | 174,107 |
Cancellations of treasury stock (in shares) | 34,327 | 31,057 |
Nature of Operations |
3 Months Ended |
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Dec. 31, 2022 | |
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. 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, 2022 | |
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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2023. 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, 2022. 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 applies 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, 2022, the Company had net monetary assets related to its Turkish subsidiaries of $5,229. For the three months ended December 31, 2022, exchange losses related to highly inflationary accounting totaled $1,088 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 October 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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. This ASU is effective for the Company beginning in interim periods starting in fiscal 2024. While the impact of this ASU is dependent on the nature of any future transactions, the Company currently does not expect this ASU to have a significant impact on its 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 delivers a variety of products and services through its business segments. The Memorialization segment produces and delivers 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 designs, manufactures, services and distributes 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. The SGK Brand Solutions segment delivers 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 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, 2022 and 2021 were as follows:
Revenue from products or services provided to customers over time accounted for approximately 13% of revenue for the three months ended December 31, 2022 and 2021. As of December 31, 2022 and September 30, 2022, the Company had contract assets of $59,046 and $48,210, respectively, that were recorded in other current assets within the Consolidated Balance Sheets. As of December 31, 2022 and September 30, 2022, the Company had contract liabilities of $23,747 and $31,871, respectively, that were recorded in other current liabilities within the Consolidated Balance Sheets.
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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, 2022 and September 30, 2022.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | InventoriesInventories consisted of the following:
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Investments |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | InvestmentsNon-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, 2022 and September 30, 2022 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 LIBOR plus a factor ranging from 0.75% to 2.00% (1.25% at December 31, 2022) 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 $1,370 and $1,522 at December 31, 2022 and September 30, 2022, 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, 2022 and September 30, 2022 were $495,391 and $472,057, respectively. The weighted-average interest rate on the outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps) at December 31, 2022 and 2021 was 4.24% and 1.86%, respectively. 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 $1,529 and $1,664 at December 31, 2022 and September 30, 2022, 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. Gross receivables sold and cash collections reinvested under the RPA program were $203,561 and $89,561 for the three months ended December 31, 2022, respectively. 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, 2022 and September 30, 2022, the amount sold to the Purchasers was $114,000 and $96,590, 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 $40,766 and $44,262 as of December 31, 2022 and September 30, 2022, respectively. Note 7. Debt and Financing Arrangements (continued) Previously, the Company had a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions that matured in March 2022. The Securitization Facility did not qualify for sale treatment. Accordingly, the trade receivables and related debt obligations remained on the Company's Consolidated Balance Sheet. Borrowings under the Securitization Facility were based on LIBOR plus 0.75% and the Company was required to pay an annual commitment fee ranging from 0.25% to 0.35% of the unused portion of the Securitization Facility. At December 31, 2021, the interest rate on borrowings under this facility was 0.85%. 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 €25.0 million ($26,771), which includes €8.0 million ($8,567) for bank guarantees. This facility has no stated maturity date and is available until terminated. Outstanding borrowings under the credit facility totaled €13.2 million ($14,098) and €8.2 million ($8,050) at December 31, 2022 and September 30, 2022, respectively. The weighted-average interest rate on outstanding borrowings under this facility was 3.96% at December 31, 2022. Other borrowings totaled $23,080 and $13,434 at December 31, 2022 and September 30, 2022, respectively. The weighted-average interest rate on all other borrowings was 3.09% and 1.88% at December 31, 2022 and 2021, respectively. As of December 31, 2022 and September 30, 2022, 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, 2022.
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Derivatives and Hedging Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Instruments | Derivatives and Hedging Instruments The Company operates internationally and utilizes certain derivative financial instruments to manage its foreign currency, debt and interest rate exposures. At December 31, 2022 and September 30, 2022, 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:
Note 8. Derivatives and Hedging Instruments (continued) 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 an unrealized gain of $10,079 ($7,533 after tax) at December 31, 2022 and an unrealized gain of $10,699 ($7,937 after tax) at September 30, 2022, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Assuming market rates remain constant with the rates at December 31, 2022, a gain (net of tax) of approximately $2,516 included in AOCI is expected to be recognized in earnings over the next twelve months. The Company has a U.S. Dollar/Euro cross currency swap with a notional amount of $81,392 as of December 31, 2022 and September 30, 2022, 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 $1,556 (net of income taxes of $526) and a gain of $2,782 (net of income taxes of $940), which represented effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at December 31, 2022 and September 30, 2022, respectively. Income of $272 and $365, 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, 2022 and 2021, respectively. At December 31, 2022 and September 30, 2022, the swap totaled $2,082 and $3,722, respectively, and was included in in the Consolidated Balance Sheets, respectively. 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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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022, 465,613 shares have been issued under the 2017 Equity Incentive Plan. 1,041,215 time-based restricted share units, 1,312,562 performance-based restricted share units, and 75,000 stock options have been granted under the 2017 Equity Incentive Plan. 1,831,042 of these share-based awards are outstanding as of December 31, 2022. 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, 2022 and 2021, stock-based compensation cost totaled $4,334 and $3,709, respectively. The associated future income tax benefit recognized for stock-based compensation was $551 and $409 for the three-month periods ended December 31, 2022 and 2021, 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 43% 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 shares and restricted share units for the three months ended December 31, 2022 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, 2022, the total unrecognized compensation cost related to all unvested stock-based awards was $32,573 and is expected to be recognized over a weighted average period of 2.5 years. The Company maintains the 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 2019 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2023, either cash or shares of the Company's Class A Common Stock with a value equal to $90. The annual retainer fee for fiscal 2023 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 2019 Director Fee Plan or credited to a deferred stock compensation account for subsequent issuance is 150,000 shares of Common Stock (subject to adjustment upon certain events such as stock dividends or stock splits). In November 2022, the Board of Directors approved the Amended and Restated 2019 Director Fee Plan (the "Amended 2019 Plan"), which increases the maximum number of shares available for grants or awards to an aggregate of 300,000. The Amended 2019 Plan is subject to shareholder approval at the Company's 2023 Annual Shareholder Meeting. The value of deferred shares is recorded in other liabilities. A total of 45,738 shares and share units had been deferred under the Director Fee Plans as of December 31, 2022. 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 2023. As of December 31, 2022, 305,911 restricted shares and restricted share units have been granted under the Director Fee Plans and are outstanding as of December 31, 2022, 132,682 of which were issued under the 2019 Director Fee Plan. 58,008 restricted shares and restricted share units are unvested at December 31, 2022.
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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 earnings (loss) 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:
Benefit payments under the Company's principal defined benefit retirement plan ("DB Plan") were made from plan assets, while benefit payments under the supplemental retirement plan and postretirement benefit plan are made from the Company's operating funds. In the first quarter of fiscal 2023, the Company made lump sum payments totaling $24,242 to fully settle the supplemental retirement plan ("SERP") and defined benefit portion of the officers retirement restoration plan ("ORRP") obligations. The settlement of these plan obligations resulted in the recognition of a non-cash charge of $1,271, which has been presented as a component of other income (deductions), net for the three months ended December 31, 2022. This amount represents the immediate recognition of the deferred AOCI balances related to the SERP and ORRP. In the first quarter of fiscal 2022, the Company terminated its DB Plan and made plan contributions totaling $35,706 to fully fund the planned settlement of the DB Plan obligations. Also during the first quarter of fiscal 2022, lump sum distributions of $185,958 were made from the DB Plan to plan participants, and non-participating annuity contracts totaling $56,274 were purchased by the DB Plan for plan participants, resulting in the full settlement of the DB Plan obligations. The settlement of the DB Plan obligations resulted in the recognition of a non-cash charge of $30,856, which has been presented as a component of other income (deductions), net for the three months ended December 31, 2021. This amount represents the immediate recognition of the remaining portion of the deferred AOCI balances related to the DB Plan.
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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, 2022 and 2021 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, 2022 and 2021 were as follows:
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Income Taxes |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 2023 were an expense of $1,312, compared to a benefit of $6,628 for the first three months of fiscal 2022. The difference between the Company’s consolidated income taxes for the first three months of fiscal 2023 compared to the same period for fiscal 2022 primarily resulted from consolidated pre-tax income in fiscal 2023 compared to a pre-tax loss in fiscal 2022. 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’s fiscal 2022 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 $4,249 and $4,123 on December 31, 2022 and September 30, 2022, respectively, which would impact the annual effective rate at December 31, 2022 and September 30, 2022, respectively. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $1,425 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 $994 and $876 at December 31, 2022 and September 30, 2022, 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, 2022, 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. 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 costs, 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.
Note 14. Segment Information (continued)
* Depreciation and amortization was $5,574 and $5,810 for the Memorialization segment, $5,853 and $2,653 for the Industrial Technologies segment, $11,060 and $23,725 for the SGK Brand Solutions segment, and $1,242 and $1,313 for Corporate and Non-Operating, for the three months ended December 31, 2022 and 2021, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $378 and $671 for the Memorialization segment, $937 and $32 for the Industrial Technologies segment, $521 and $1,229 for the SGK Brand Solutions segment, and $1,209 and $1,891 for Corporate and Non-Operating, for the three months ended December 31, 2022 and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $464 for the Memorialization segment, $4 for the Industrial Technologies segment, $220 for the SGK Brand Solutions segment, and $2 for Corporate and Non-Operating, for the three months ended December 31, 2021.
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Acquisitions |
3 Months Ended |
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Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Fiscal 2023: During the first fiscal quarter of 2023, the Company completed small acquisitions within the SGK Brand Solutions segment for a combined purchase price of $1,759 (net of holdbacks). The preliminary purchase price allocations were not finalized as of December 31, 2022 and remain subject to change as the Company obtains additional information related to working capital and other assets and liabilities. Fiscal 2022: In August 2022, the Company acquired German-based engineering firms OLBRICH and R+S Automotive for a purchase price of approximately €43,700 ($44,469) (net of cash acquired) within the Industrial Technologies segment. OLBRICH is a production and intelligent equipment manufacturer, specializing in purpose-built rotary processing equipment, including equipment used in the manufacturing of dry and wet electrodes for lithium-ion batteries used in electric vehicles and components for hydrogen fuel cells and electrolyzers, with additional strong positions in Specialty & Pharma, Packaging and Home & Décor. R+S Automotive is a specialty engineering services provider of automation, plant and tooling concepts for automotive manufacturing companies around the world. Annual sales for these businesses were approximately $140,000 prior to the acquisition. The preliminary purchase price allocation was not finalized as of December 31, 2022 and remains subject to change as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities.
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Goodwill and Other Intangible Assets |
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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, 2022 and September 30, 2022 included $261,186 of accumulated impairment losses. Accumulated impairment losses at December 31, 2022 and September 30, 2022 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 2022 (January 1, 2022) 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, 2022 and recorded a goodwill write-down totaling $82,454 during the fiscal 2022 fourth quarter. Subsequent to this write-down, the fair value of the SGK Brand Solutions reporting unit approximated its carrying value at September 1, 2022. 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. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2022 and September 30, 2022, respectively.
The net change in intangible assets during the three months ended December 31, 2022 included the impact of foreign currency fluctuations during the period and additional amortization. Amortization expense on intangible assets was $10,342 and $21,546 for the three-month periods ended December 31, 2022 and 2021, respectively. Amortization expense is estimated to be $31,072 for the remainder of fiscal 2023, $39,203 in 2024, $16,158 in 2025, $14,357 in 2026 and $13,364 in 2027.
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Basis of Presentation (Policies) |
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Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: Issued In October 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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. This ASU is effective for the Company beginning in interim periods starting in fiscal 2024. While the impact of this ASU is dependent on the nature of any future transactions, the Company currently does not expect this ASU to have a significant impact on its consolidated financial statements.
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Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Disaggregated sales by segment and region for the three months ended December 31, 2022 and 2021 were as follows:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
|
Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Current Investments | Non-current investments consisted of the following:
|
Debt and Financing Arrangements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt at December 31, 2022 and September 30, 2022 consisted of the following:
|
Derivatives and Hedging Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Contracts as Reflected on Balance Sheet | At December 31, 2022 and September 30, 2022, 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:
|
Share-Based Payments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the three months ended December 31, 2022 were as follows:
|
Earnings Per Share Attributable to Matthews' Shareholders (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Used to Compute Earnings (Loss) per Share Attributable to Matthews' Common Shareholders | The information used to compute earnings (loss) per share attributable to Matthews' common shareholders was as follows:
|
Pension and Other Postretirement Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Accumulated Other Comprehensive Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 and 2021 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, 2022 and 2021 were as follows:
|
Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax Years Subject to Examination | As of December 31, 2022, the tax years that remain subject to examination by major jurisdictions generally are:
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
Note 14. Segment Information (continued)
* Depreciation and amortization was $5,574 and $5,810 for the Memorialization segment, $5,853 and $2,653 for the Industrial Technologies segment, $11,060 and $23,725 for the SGK Brand Solutions segment, and $1,242 and $1,313 for Corporate and Non-Operating, for the three months ended December 31, 2022 and 2021, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $378 and $671 for the Memorialization segment, $937 and $32 for the Industrial Technologies segment, $521 and $1,229 for the SGK Brand Solutions segment, and $1,209 and $1,891 for Corporate and Non-Operating, for the three months ended December 31, 2022 and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $464 for the Memorialization segment, $4 for the Industrial Technologies segment, $220 for the SGK Brand Solutions segment, and $2 for Corporate and Non-Operating, for the three months ended December 31, 2021.
|
Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 and September 30, 2022, respectively.
|
Nature of Operations (Details) |
3 Months Ended |
---|---|
Dec. 31, 2022
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Basis of Presentation (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Net monetary assets | $ 5,229 |
Other Nonoperating Income (Expense) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Exchange loss due to highly inflationary accounting | $ 1,088 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 59,046 | $ 48,210 | |
Contract liabilities | $ 23,747 | $ 31,871 | |
Revenue Benchmark | Product Concentration Risk | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 13.00% | 13.00% |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|
Assets: | ||
Life insurance policies | $ 18,866 | $ 18,808 |
Recurring | ||
Assets: | ||
Derivatives | 10,079 | 14,421 |
Life insurance policies | 4,608 | 4,439 |
Total assets at fair value | 14,687 | 18,860 |
Liabilities: | ||
Derivatives | 2,082 | 0 |
Total liabilities at fair value | 2,082 | 0 |
Recurring | Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Life insurance policies | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Derivatives | 10,079 | 14,421 |
Life insurance policies | 4,608 | 4,439 |
Total assets at fair value | 14,687 | 18,860 |
Liabilities: | ||
Derivatives | 2,082 | 0 |
Total liabilities at fair value | 2,082 | 0 |
Recurring | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Life insurance policies | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|
Inventories, net [Abstract] | ||
Raw materials | $ 61,017 | $ 52,586 |
Work in process | 109,732 | 94,804 |
Finished goods | 74,816 | 78,050 |
Inventories | $ 245,565 | $ 225,440 |
Investments - Non-Current Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|
Non-current investments [Abstract] | ||
Life insurance policies | $ 4,608 | $ 4,439 |
Equity-method investments | 2,974 | 2,729 |
Other (primarily cost-method) investments | 18,866 | 18,808 |
Total non-current investments | $ 26,448 | $ 25,976 |
Debt and Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 837,104 | $ 798,568 |
Finance lease obligations | $ 6,439 | $ 7,066 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Less current maturities | $ (2,977) | $ (3,277) |
Long-term debt | 834,127 | 795,291 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 298,096 | 297,961 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 23,080 | 13,434 |
Revolving credit facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | $ 509,489 | $ 480,107 |
Derivatives and Hedging Instruments - Interest Rate Contracts (Details) - Cash flow hedges - Cash flow hedges - Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 125,000 | $ 125,000 |
Weighted-average maturity period (years) | 2 years 7 months 6 days | 3 years 1 month 6 days |
Weighted-average received rate | 4.39% | 3.14% |
Weighted-average pay rate | 1.04% | 1.04% |
Share-Based Payments - Restricted Stock Activity (Details) - Restricted Stock |
3 Months Ended |
---|---|
Dec. 31, 2022
$ / shares
shares
| |
Shares /Units | |
Non-vested at beginning of period (in shares) | shares | 1,459,233 |
Granted (in shares) | shares | 617,050 |
Vested (in shares) | shares | (180,263) |
Expired or forfeited (in shares) | shares | (139,978) |
Non-vested at end of period (in shares) | shares | 1,756,042 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 33.78 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 27.69 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 35.25 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 40.78 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 30.93 |
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Matthews shareholders | $ 3,703 | $ (19,803) |
Weighted-average shares outstanding (in thousands): | ||
Basic shares (in shares) | 30,712 | 31,719 |
Effect of dilutive securities (in shares) | 241 | 0 |
Diluted shares (in shares) | 30,953 | 31,719 |
Dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.22 |
Pension and Other Postretirement Benefit Plans - Net Periodic Pension and Other Postretirement Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Amortization: | ||
Settlement losses | $ (24,242) | $ (35,706) |
Pension | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 57 | 380 |
Interest cost | 143 | 990 |
Expected return on plan assets | 0 | (1,042) |
Amortization: | ||
Prior service credit | 0 | 47 |
Net actuarial loss | (10) | 201 |
Settlement losses | 1,271 | 30,856 |
Net benefit cost | 1,461 | 31,432 |
Other Postretirement | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 19 | 41 |
Interest cost | 161 | 103 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Prior service credit | (91) | (91) |
Net actuarial loss | (177) | 0 |
Settlement losses | 0 | 0 |
Net benefit cost | $ (88) | $ 53 |
Pension and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses | $ (24,242) | $ (35,706) |
DB Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit payments | 185,958 | |
Settlement losses | 30,856 | |
Employer contributions | 35,706 | |
Annuity contracts purchased | $ 56,274 | |
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, 2022 |
Dec. 31, 2021 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 1,312 | $ (6,628) | |
Unrecognized tax benefits | 4,249 | $ 4,123 | |
Decrease reasonably possible in next 12 months | 1,425 | ||
Total penalties and interest accrued | $ 994 | $ 876 |
Acquisitions (Details) $ in Thousands, € in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2022
USD ($)
|
Aug. 31, 2022
EUR (€)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Business Acquisition [Line Items] | ||||
Payment to acquire business, net of cash acquired | $ 1,759 | $ 0 | ||
OLBRICH and R+S Automotive | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire business, net of cash acquired | $ 44,469 | € 43.7 | ||
Revenues | $ 140,000 |
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 675,421 |
Additions during period | 410 |
Translation and other adjustments | 16,184 |
Balance at end of period | 692,015 |
Memorialization | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 361,782 |
Additions during period | 0 |
Translation and other adjustments | 2,253 |
Balance at end of period | 364,035 |
Industrial Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 107,022 |
Additions during period | 0 |
Translation and other adjustments | 4,507 |
Balance at end of period | 111,529 |
SGK Brand Solutions | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 206,617 |
Additions during period | 410 |
Translation and other adjustments | 9,424 |
Balance at end of period | $ 216,451 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Goodwill [Line Items] | |||
Accumulated impairment charges | $ 261,186 | $ 261,186 | |
Amortization expense on intangible assets | 10,342 | $ 21,546 | |
Future amortization expense [Abstract] | |||
Future amortization expense for the remainder 2023 | 31,072 | ||
Future amortization expense 2024 | 39,203 | ||
Future amortization expense 2025 | 16,158 | ||
Future amortization expense 2026 | 14,357 | ||
Future amortization expense 2027 | 13,364 | ||
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 | |
Brand Solutions | |||
Goodwill [Line Items] | |||
Goodwill write-down | $ 82,454 |
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 586,976 | $ 582,539 |
Accumulated Amortization | (393,220) | (380,385) |
Net | 193,756 | 202,154 |
Definite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 151,064 | 150,528 |
Accumulated Amortization | (119,029) | (117,572) |
Net | 32,035 | 32,956 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 383,983 | 380,593 |
Accumulated Amortization | (259,161) | (248,464) |
Net | 124,822 | 132,129 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 21,389 | 20,878 |
Accumulated Amortization | (15,030) | (14,349) |
Net | 6,359 | 6,529 |
Indefinite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 30,540 | 30,540 |
Net | $ 30,540 | $ 30,540 |
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