ALPHARETTA, Ga. - Mativ Holdings, Inc. ("Mativ" or the "Company") (NYSE: MATV) reported earnings results for the three months and year ended December 31, 2023. On July 6, 2022, Schweitzer-Mauduit International, Inc. ("SWM") and Neenah, Inc. ("Neenah") completed a merger of equals ("the Merger").
Financial results for periods prior to the Merger reflect only the continuing operations of legacy SWM results. On November 30, 2023, Mativ closed the sale of its Engineered Papers business (the "EP Divestiture"), which is now presented as discontinued operations. Financial results for continuing operations exclude Engineered Papers in all periods.
Adjusted measures are reconciled to GAAP at the end of this release. Financial comparisons are to the prior year period unless stated otherwise. Figures may not sum to total due to rounding. "Comparable" non-GAAP measures are used to compare current period Mativ continuing operations results with the combined reported continuing results for legacy Neenah and SWM operations, adjusted for certain reclassifications and other reporting conformations in the periods prior to the close of the Merger. The Company's December 22, 2022 Form 8-K includes reconciliations of periods prior to the Merger. The Company's December 6, 2023 Form 8-K/A includes reconciliations of periods prior to the EP Divestiture.
Mativ Fourth Quarter 2023 Highlights (Continuing Operations)
- Sales were $452.3 million down 13.7% year over year, reflecting lower volume
- GAAP loss was $13.6 million, GAAP EPS was $(0.25), and GAAP Operating Loss was $2.2 million. Results included $10.6 million ($0.19 per share) related to asset write-downs due to footprint rationalization, integration costs from the Merger, and divestiture costs from the EP Divestiture
- Adjusted EBITDA was $50.0 million, Adjusted income was $13.2 million, and Adjusted EPS was $0.23 (see non-GAAP reconciliations). Adjusted EBITDA was down 20% versus the prior year, as impacts from lower volumes more than offset net benefits of price/input costs and synergies
Mativ Full Year 2023 Highlights (Continuing Operations)
- Sales increased 24% to $2,026.0 million, reflecting the full benefit of the Merger; Sales decreased 9% on a comparable basis, reflecting lower volume partly offset by higher selling prices and favorable currency translation
- GAAP Loss was $507.7 million, GAAP EPS was $(9.33), and GAAP Operating Loss was $413.9 million, which all included significant expenses related to goodwill impairment, integration, and restructuring
- Adjusted EBITDA was $213.4 million, Adjusted Income was $47.3 million, and Adjusted EPS was $0.80; Adjusted EBITDA was down 17% on a comparable basis, as impacts from lower volumes more than offset benefits of price/input costs and synergies
Management Commentary
Chief Executive Officer Julie Schertell commented, "Fiscal year 2023, our first full year as a combined company, was a pivotal year for Mativ. Early on, we identified customer de-stocking trends and assessed potential impacts on our demand expectations near-term. We developed a comprehensive approach to navigate these headwinds and then realized, as the year progressed, that the macro-environment was even more challenging with profound and prolonged customer de-stocking effects and persistent inflation. The combination and magnitude of these factors significantly impacted our end markets and volumes, and challenged us to aggressively adapt our operations, reduce costs, innovate, and reposition the Company for a strong future."
"Throughout these headwinds in 2023, we focused on what we could control and continued to make the right long-term decisions. We divested Engineered Papers, reduced our debt by over 35%, consolidated sites, and achieved our targeted Merger synergies ahead of plan. In January 2024, we also announced an organizational restructuring initiative that we expect will reduce our non-operating costs by $40 million over the next three years.”
Ms. Schertell concluded, "Guided by our strategy, we executed these efforts to set up Mativ for long-term success, and I am looking forward to demonstrating what we can do in 2024. We are seeing some momentum in our markets, and I am encouraged by the opportunities that lie ahead. 2024 is the year of execution, of putting our strategy in play and executing on our plans to achieve our goals for growth in sales and EBITDA, generating strong free cash flow and further reducing our debt and leverage.”
Source: Mativ
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