NYSE$MATV

Mativ Holdings Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

SWM's second quarter results reflected EP segment profit stability and AMS portfolio resilience amidst COVID-19 challenges.

SWM reported a 6% decrease in total sales to $254.2 million but demonstrated portfolio resilience with stable Engineered Papers segment profits and Advanced Materials & Structures segment performance despite COVID-19 impacts. Adjusted EPS was $0.90, reflecting solid execution and overall resilience.

  • Second quarter results reflected EP segment profit stability and AMS portfolio resilience in the face of COVID-19
  • Total sales were $254.2 million, down 6%
  • GAAP operating profit was $34.4 million, or 13.5% of sales, down 22%
  • Adjusted EPS was $0.90, down 15%

Headline financials

Total Revenue

$254M

Previous: $270M-5.8%
EPS (adj)

$0.69

Previous: $0.66+4.5%
Adjusted Operating Profit Margin

17.0%

No prior period
Adjusted EBITDA

$52.8M

No prior period
Adjusted EBITDA Margin

20.8%

No prior period
Capital Expenditures

-$14.9M

Previous: -$15.2M+2.0%
Free Cash Flow

$6.6M

Previous: $5.3M+24.5%
Net Income

$21.5M

Previous: $20.5M+4.9%
Operating Income

$34.4M

Previous: $44.2M-22.2%
Gross Profit

$74.3M

Previous: $79M-5.9%
Cash & Equivalents

$63.9M

Previous: $87.8M-27.2%
Total Assets

$1.58B

Previous: $1.49B+6.0%
Stock-Based Comp

$2M

Previous: $1.6M+25.0%

Revenue & EPS history

Mativ · Revenue · Quarterly

$254M

Q2 2020-5.8%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

SWM remains quite profitable, generating high free cash flow and maintaining a strong balance sheet.

Tailwinds

  • SWM is successfully navigating the global economic challenges and health concerns related to COVID-19.
  • Employee base performed exceptionally well, protecting the health of their colleagues while continuing to provide quality products and services to their customers.
  • All sites are now open and fully operational.
  • SWM remains quite profitable, generating high free cash flow and maintaining a strong balance sheet.
  • Still pushing forward on long-term strategic initiatives across the business, ranging from commercial synergy projects related to Tekra, new product development in both AMS and EP, and company-wide cost improvement efforts.

Headwinds

  • Organic sales declined 15%.
  • GAAP operating profit was $34.4 million, or 13.5% of sales, down 22%.
  • Adjusted operating profit was $43.2 million, or 17.0% of sales, down 15%.
  • Adjusted EPS was $0.90, down 15%.
  • Year-to-date 2020 Adjusted EPS was essentially unchanged versus 2019

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 Q2 2020

Historical avgQ2 2020

+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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