NYSE$MATV

Mativ Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a decrease in sales compared to the previous year, but showed sequential volume recovery.

Mativ reported a decrease in sales compared to the prior year, but experienced sequential volume recovery. The company's GAAP loss included organizational realignment, integration, and purchase accounting expenses. Adjusted EBITDA was slightly lower than the previous quarter due to higher cost inventories.

  • Sales decreased 8.9% versus the prior year, reflecting sequential volume recovery.
  • GAAP loss was $(28.0) million, GAAP EPS was $(0.52), which included organizational realignment, integration and purchase accounting expenses.
  • Adjusted income was $1.1 million, Adjusted EPS was $0.02, and Adjusted EBITDA was $45.8 million.
  • An organizational restructuring initiative that will reduce corporate costs by up to $20 million annually as we exit 2024 was initiated.

Headline financials

Total Revenue

$500M

Previous: $679M-26.3%
EPS

-$0.52

Previous: $0.25-308.0%
Adjusted Operating Profit Margin

4.8%

No prior period
Adjusted EBITDA

$45.8M

No prior period
Adjusted EBITDA Margin

9.2%

No prior period
Capital Expenditures

-$12.1M

Previous: -$19.1M+36.6%
Free Cash Flow

-$40.1M

Previous: -$26.8M-49.6%
Net Income

-$28M

Previous: -$7.7M-263.6%
Operating Income

-$13.8M

Previous: $9.3M-248.4%
Gross Profit

$84M

Previous: $109M-22.9%
Cash & Equivalents

$129M

Previous: $97M+32.9%
Total Assets

$2.65B

Previous: $3.67B-27.8%
R&D Expense

$6M

No prior period
Stock-Based Comp

$2.7M

Previous: $3.7M-27.0%

Revenue & EPS history

Mativ · Revenue · Quarterly

$500M

Q1 2024-26.3%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Volume recovery is continuing into Q2, and we continue to believe that we will deliver meaningfully improved EBITDA year-over-year for the remainder of 2024.

Tailwinds

  • Volume recovery is continuing into Q2
  • Expect will reduce non-operating costs by up to $20 million annually as we exit 2024
  • Invest in new assets in filtration and release liners support future top line growth and increase our operating leverage as volume continues to recover
  • Continue to see improving demand
  • Decisions and actions over the past year will deliver incremental value to our customers and shareholders

Headwinds

  • Lower volumes
  • Higher production costs
  • Customer caution in the current uncertain economic environment
  • Impacts from lower volumes and higher production costs more than offset net benefits of input costs/selling price and synergies realization
  • Higher average interest rates and higher average balances on the floating portion of our outstanding debt in 2024

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 2024

Historical avgQ1 2024

+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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