NYSE$MATV

Mativ Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a decrease in sales and a GAAP loss due to a non-cash goodwill impairment charge.

Mativ reported a decrease in sales by 9.7% to $498.2 million. The company had a GAAP loss of $464.3 million, which included a non-cash goodwill impairment charge of $401.0 million. Adjusted EPS was $0.21, and Adjusted EBITDA was $55.4 million, down 20% versus the prior year.

  • Sales decreased 9.7% to $498.2 million, reflecting lower volume partly offset by higher selling prices and currency translation.
  • GAAP loss was $464.3 million, GAAP EPS was $(8.50), including a non-cash goodwill impairment charge of $401.0 million ($7.30 per share).
  • Adjusted income was $11.2 million, Adjusted EPS was $0.21, and Adjusted EBITDA was $55.4 million.
  • Lower volumes more than offset net benefits of price/input costs and synergies.

Headline financials

Total Revenue

$498M

Previous: $674M-26.1%
EPS (adj)

$0.21

Previous: $0.74-71.6%
Adjusted EBITDA

$55.4M

Previous: $93M-40.4%
Capital Expenditures

-$49.4M

Previous: -$36.5M-35.3%
Free Cash Flow

-$504M

Previous: -$59M-754.9%
Net Income

-$455M

Previous: -$22.5M-1922.2%
Operating Income

-$420M

Previous: -$13.9M-2920.9%
Gross Profit

$86.7M

Previous: $123M-29.6%
Cash & Equivalents

$84.7M

Previous: $82.3M+2.9%
Total Assets

$3.12B

Previous: $3.71B-16.0%
R&D Expense

$5.4M

No prior period
Stock-Based Comp

$2.6M

Previous: $9.5M-72.6%

Revenue & EPS history

Mativ · Revenue · Quarterly

$498M

Q3 2023-26.1%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Mativ expects to increase margins across both segments and reach our stated quarterly EBITDA target of $70 million and grow from there. The company intends to use net proceeds from the EP sale to reduce our debt by more than one third.

Tailwinds

  • ATM businesses are well-positioned in large, fast-growing markets
  • ATM provide unique, defensible solutions
  • ATM deliver attractive mid-teen EBITDA margins
  • Expect to increase margins across both segments
  • Continue to execute against a clear long-term strategy

Headwinds

  • Uncertain economic and geopolitical environment
  • Third quarter results reflect the continued impact of weak customer demand
  • Destocking in this environment
  • Normal seasonal slowing in the second half of the year
  • Volume is the biggest near-term challenge in both segments

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 2023

Historical avgQ3 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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