Matthews International Corporation (NASDAQ GSM: MATW) ("Matthews" or the "Company") today issued the following statement in response to the recent statement and nomination notice the Company has received from Barington Capital Group ("Barington"):
Our recent operating results reflect solid performance by our core businesses and demonstrate the resilience of our team in the face of a challenging market environment. As a result of strong execution and oversight by the Matthews Board of Directors and management team, the fundamentals of our businesses and their long-term outlook are strong:
• Memorialization has benefited from pricing actions and several smaller strategic acquisitions, while delivering on cremation and mausoleum-related products that underscore the segment's long-term commitment to diversify its best-in-class offerings within the deathcare industry. Cost control measures taken during the fiscal year have also contributed to an improvement in operating margins.
• SGK recently reported its third consecutive quarter of higher sequential sales and solid margins. Notably, the strategic decision to invest in resources to support the transitioning of components of our core business to an e-commerce digital marketing platform differentiates us from our peers and led to an increase in revenues and organic business opportunities that position us well for 2025.
• Within Industrial Technologies we expect the demand recovery to have a positive impact at the start of our new fiscal year, which should result in meaningful revenue results in the latter part of fiscal 2025 and into 2026.
• Interest in the innovative solutions being offered through our Energy Solutions business remains strong, and we are well positioned both financially and operationally to lead the ongoing transition to electric vehicles through our multi-decade investment in advanced rotary processing technologies and alternative solutions for such technologies.
As previously announced on our fourth quarter earnings call, Matthews has retained J.P. Morgan to support the evaluation of potential strategic alternatives. The Board is dedicated to driving long-term value creation, and the strategic alternatives process is a reflection of that commitment. Importantly, in late November, Matthews also declared its 31st consecutive annual dividend increase since becoming a public company.
