NYSE$MATV

Mativ Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a 76% increase in sales and a GAAP EPS of $(0.43).

Mativ Holdings, Inc. reported a 76% increase in sales to $674.1 million, driven by strong growth in release liners, protective solutions, filtration, and paper and specialty packaging. GAAP EPS was $(0.43), while adjusted EPS was $0.74. The company expects 4Q:22 Adjusted EBITDA to be consistent with 3Q:22 Adjusted EBITDA of $93.0 million and continued year-over-year Adjusted EBITDA growth into 2023.

  • Sales increased 76% to $674.1 million with 12% constant currency organic sales growth.
  • GAAP EPS was $(0.43); Adjusted EPS was $0.74.
  • GAAP Operating Loss was $13.9 million; Adjusted Operating Profit was $65.5 million, up 24% on a comparable basis.
  • Pricing actions across the Company driving top-line gains and offsetting raw material cost increases, with margin expansion across most categories.

Headline financials

Total Revenue

$674M

Previous: $384M+75.7%
EPS (adj)

$0.74

Previous: $0.38+94.7%
Adjusted EBITDA

$93M

Previous: $52.8M+76.1%
Capital Expenditures

-$36.5M

Previous: -$23.8M-53.4%
Free Cash Flow

-$59M

Previous: -$11.6M-408.6%
Net Income

-$22.5M

Previous: $12.2M-284.4%
Operating Income

-$13.9M

Previous: $23M-160.4%
Gross Profit

$123M

Previous: $85.2M+44.5%
Cash & Equivalents

$82.3M

Previous: $73.6M+11.8%
Total Assets

$3.71B

Previous: $2.42B+53.4%
Stock-Based Comp

$9.5M

Previous: $1.7M+458.8%

Revenue & EPS history

Mativ · Revenue · Quarterly

$674M

Q3 2022+75.7%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The Company now expects 4Q:22 Adjusted EBITDA to be consistent with 3Q:22 Adjusted EBITDA of $93.0 million and continued year-over-year Adjusted EBITDA growth into 2023. The Company still expects net leverage to be at 3.75x or below by year-end with the benefit of enhanced working capital programs, and to be within the 2.5x to 3.5x target range during 2023

Tailwinds

  • Consistent sequential EBITDA in the fourth quarter, which would represent another period of strong comparable year-over-year growth.
  • Profit growth trends into 2023 as we trend toward $100 million EBITDA quarters.
  • Recovering from the cybersecurity incident's impact on our operating performance.
  • Accelerated synergy realization.
  • Additional pricing actions.

Headwinds

  • Unfavorable currency trends have accelerated.
  • Increase in volatility in the macro backdrop, including global demand uncertainty.
  • Inflationary pressures led by the rapid escalation in energy costs, particularly in Europe.
  • Latest round of pricing actions primarily go into effect late this year and early 2023 and will lag recovery of this rapid increase in energy in the short-term.
  • Impacted by a cybersecurity incident during the third quarter which temporarily disrupted our operations and reduced sales.

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 Q3 2022

Historical avgQ3 2022

+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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