NYSE$MATV

Mativ Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Mativ's first quarter results were announced, revealing a sales increase driven by the merger but impacted by customer de-stocking and operational inefficiencies.

Mativ reported a 66.9% increase in sales to $679.0 million, reflecting the merger's benefit. However, the company experienced a GAAP loss of $7.7 million, with GAAP EPS at $(0.14). Adjusted EPS was $0.25. The quarter was affected by customer de-stocking, labor strikes in France, and manufacturing inefficiencies, which pressured margins.

  • Sales increased 66.9% to $679.0 million, driven by the merger; organic sales grew 1% in constant currency.
  • GAAP loss was $7.7 million, with a GAAP EPS of $(0.14).
  • Adjusted EPS was $0.25, and Adjusted EBITDA was $65.7 million.
  • Price increases offset higher input costs, but lower volumes due to customer de-stocking and manufacturing issues impacted margins.

Headline financials

Total Revenue

$679M

Previous: $407M+66.9%
EPS (adj)

$0.25

Previous: $0.25+0.0%
Capital Expenditures

-$19.1M

Previous: -$8.7M-119.5%
Free Cash Flow

-$26.8M

Previous: -$7.1M-277.5%
Net Income

-$7.7M

Previous: $1.6M-581.3%
Operating Income

$9.3M

Previous: $10.6M-12.3%
Gross Profit

$109M

Previous: $92.6M+17.7%
Cash & Equivalents

$97M

Previous: $56.1M+72.9%
Total Assets

$3.67B

Previous: $2.44B+50.5%
Stock-Based Comp

$3.7M

Previous: $3.4M+8.8%

Revenue & EPS history

Mativ · Revenue · Quarterly

$679M

Q1 2023+66.9%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Mativ anticipates delivering significantly improved sequential EBITDA for the remainder of the year and expects to exit 2023 on a strong trajectory toward $100 million EBITDA quarters.

Tailwinds

  • Customer indications suggest the peak de-stocking impacts are subsiding, with normalized volume activity expected in the second half of the year.
  • Improved manufacturing performance is anticipated to translate into better margins as the year progresses.
  • Synergy execution remains on track, with a $25 million EBITDA benefit expected in 2023.
  • SG&A synergies executed in the previous year will be fully realized this year.
  • Input costs are easing, with benefits expected to flow through to margins in the coming quarters.

Headwinds

  • The macro environment remains uncertain.
  • The first quarter was impacted by customer de-stocking, operational inefficiencies in French facilities due to labor strikes, and inefficiencies in several US sites.
  • Continued headwinds are expected in the second quarter.
  • Interest expense was $26.5 million, versus $14.5 million in the prior year period.
  • First quarter of 2023 cash provided by operating activities was negative $20.7 million, and capital spending and software costs totaled $19.2 million, resulting in negative free cash flow of $39.9 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.4%

Avg return

Earnings day

+1.4%

Avg return

5 days after

-1.7%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+39.0%

Q4 2023

Best reaction

-17.8%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%-7.8%-20.3%
Q4 2025-8.0%-25.0%-43.2%
Q3 2025+22.3%+24.8%+14.7%
Q1 2025+8.8%+26.8%+22.7%
Q4 2024-17.8%-23.3%-33.0%
Q3 2024-14.8%-16.3%-24.7%
Q2 2024+26.6%+21.1%+23.4%
Q1 2024+1.9%-6.1%-7.3%
Q4 2023+39.0%+35.0%+44.6%
Q3 2023+2.9%-3.2%-7.0%
Q2 2023-0.4%-0.9%-13.5%
Q1 2023+3.7%+3.0%+2.6%
Q1 2022+3.7%+3.0%+2.6%
Q4 2022+11.3%+3.6%-19.6%
Q3 2022-12.7%-19.5%-15.5%
Q2 2022+15.1%+19.4%+24.9%
Q4 2021-3.2%+3.4%+0.1%
Q3 2021-12.8%-7.2%-21.5%
Q2 2021-1.6%-3.1%-4.6%
Q1 2021-1.2%+0.0%-7.1%
Q4 2020+1.2%+1.1%+4.9%
Q3 2020-2.4%+0.4%-2.9%
Q2 2020+2.9%+7.3%-5.3%
Q1 2020+1.5%-3.0%+20.0%
Q4 2019+1.8%+0.4%-19.2%
Q3 2019+9.1%+10.3%+9.9%
Q2 2019+4.9%+1.5%+4.0%
Q1 2019+1.3%-1.5%-8.1%
Q4 2018-0.7%-1.6%+0.4%
Q3 2018-0.7%-3.8%-15.4%
Q2 2018+6.4%+1.3%-1.9%
Q1 2018-1.9%+0.5%-0.3%
Q4 2017-0.4%+0.3%-0.2%
Q3 2017+8.1%+4.1%+6.9%
Q2 2017+3.8%-0.5%-2.1%
Q1 2017-2.8%-2.9%+3.0%
Q4 2016-0.0%+2.3%-1.4%
Q3 2016+5.2%+7.2%+16.0%
Q2 2016+4.6%+3.2%+7.3%
Q1 2016+0.7%
Q4 2015-1.2%
Q3 2015+1.5%
Q2 2015-4.9%
Q4 2014-3.5%
Q1 2015-0.2%
Q3 2014+1.7%
Q2 2014+2.0%
Q1 2014+1.9%
Q4 2013-1.2%
Q3 2013-16.4%
Q2 2013+0.7%
Q1 2013-0.3%
Q4 2012+0.2%
Q3 2012+1.9%
Q2 2012-8.0%
Q1 2012+0.8%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2010+2.2%
Q3 2011+2.2%
Q2 2011+2.6%
Q4 2010+2.6%
Q2 2010-0.8%
Q1 2011-0.8%
Q1 2010-0.8%

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