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Sep 30, 2023
Mativ Q3 2023 Earnings Report
Reported a decrease in sales and a GAAP loss due to a non-cash goodwill impairment charge.
Key Takeaways
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.
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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