Mattr (MATR) Q3 2024 earnings summary

Executive summary

• Consolidated Q3 2024 revenue was $250M, Adjusted EBITDA was $37M, and adjusted EPS was $0.23, including discontinued operations in Brazil; results included $3.1M in MEO costs and $1.9M in severance costs.

• Entered agreement to sell Thermotite (Brazilian pipe coating business) for $24M, now classified as Discontinued Operations, expected to close by mid-2025.

• Announced definitive agreement to acquire AmerCable for $280M USD, expected to close around year-end 2024, to be integrated into Connection Technologies and immediately accretive.

• Operational transformation and new manufacturing sites remain on track for substantial completion by year-end 2024.

• Continued active share repurchases under the NCIB, with 1.44M shares repurchased in Q3 for $22.2M.

Financial highlights

• Q3 2024 revenue from continuing operations was $226.2M, up 2% year-over-year; consolidated Adjusted EBITDA was $36.7M, with Adjusted EBITDA from continuing operations at $29.3M.

• Composite Technologies revenue declined 2.7% year-over-year to $136.4M; Adjusted EBITDA was $20.3M, down 37.5% year-over-year.

• Connection Technologies revenue rose 9.9% year-over-year to $89.9M, setting a segment record; Adjusted EBITDA was $12M, down $2.6M year-over-year.

• Discontinued operations (Thermotite) reported Q3 revenue of $24M and Adjusted EBITDA of $7.5M.

• Cash and equivalents at quarter-end were $186M; net cash used in Q3 was $67.6M, mainly due to capex, working capital, and share buybacks.

Outlook and guidance

• Q4 2024 revenue and Adjusted EBITDA from continuing operations expected to be the lowest of the year due to seasonal and macro headwinds, severance, and transaction costs.

• Full-year 2024 revenue expected to be similar to or modestly below 2023; 2025 anticipated to see rising demand and recovery as new facilities ramp up.

• Annualized cost savings of $20M targeted for 2025, with restructuring costs completed by Q4 2024.

• CapEx for 2024 expected at $90M–$100M; 2025 CapEx likely at the upper end of $30M–$50M.

• AmerCable acquisition expected to increase exposure to electrification and be accretive to EPS.