Mattr Announces Fourth Quarter and Full Year 2024 Results

2 days ago 2

Scroll Up

TORONTO, March 13, 2025 (GLOBE NEWSWIRE) -- Mattr Corp. ("Mattr” or the "Company”) (TSX: MATR) reported today its operational and financial results for the three and twelve months ended December 31, 2024. This press release should be read in conjunction with the Company's Management Discussion and Analysis ("MD&A”) and audited consolidated financial statements for the years ended December 31, 2024 and 20231, which are available on the Company's website and at www.sedarplus.com.

Highlights include1:

  • On a consolidated basis (including Continuing Operations and Discontinued Operations), Mattr reported full year 2024 revenue of $960 million, net loss of $4 million, Adjusted EBITDA2 of $131 million, diluted (Loss) Earnings Per Share ("EPS”) of (0.06) and diluted Adjusted EPS2 of $0.69;
  • Full year Continuing Operations revenue was $885 million and operating income from Continuing Operations was $40 million. Adjusted EBITDA from Continuing Operations was $108 million, a 28% decrease compared to $151 million for full year 2023;
  • During the year the Company recorded Modernization, Expansion and Optimization ("MEO”) costs2 of $18 million (fourth quarter - $3.8 million) of which $12 million (fourth quarter - $0.4 million) were recorded through the Composite Technologies segment and $6 million (fourth quarter - $3.4 million) were recorded through the Connection Technologies segment;
  • On November 8, 2024, the Company (through its subsidiary) entered into a definitive agreement with Nexans USA Inc. ("Nexans”) to acquire AmerCable Incorporated ("AmerCable”), a U.S. manufacturer of highly engineered wire and cable solutions for a purchase price of US$280 million, equivalent to approximately CAD $403 million based on the US-CAD exchange rate as of December 31, 2024, before any working capital adjustments. This transaction was completed on January 2, 2025 and moving forward, AmerCable will be reported within the Company's Connection Technologies segment;
  • Fourth quarter revenue generated by Continuing Operations was $208 million and fourth quarter operating loss from Continuing Operations was $9 million. Fourth quarter Adjusted EBITDA from Continuing Operations was $13 million, a 51% decrease compared to the fourth quarter of 2023;
  • Composite Technologies segment fourth quarter revenue increased by 7% to $120 million compared to $112 million in the prior year's quarter;
  • Connection Technologies segment fourth quarter revenue increased by 11% to $87 million compared to $79 million in the prior year's quarter;
  • For the fourth quarter, Discontinued Operations generated revenue of $24 million, operating income of $8 million and Adjusted EBITDA of $8 million;
  • As at December 31, 2024, the Company had total cash and cash equivalents (including restricted cash) of $502 million and a Net Debt-to-Adjusted EBITDA2 ratio (using a trailing twelve-month consolidated Adjusted EBITDA2) of approximately 1.01 times or 2.5 times proforma for the acquisition of AmerCable;
  • The Company generated $51 million in cash from operating activities during the year ended December 31, 2024, including cash generated from both Continuing Operations and Discontinued Operations on a consolidated basis ("Consolidated Total Operating Activities”). During the same period, the Company invested approximately $101 million in Capital Expenditures to support longer-term growth in its Composite Technologies and Connection Technologies segments and repurchased 3.3 million of its common shares for a total repurchase price of $48 million under its normal course issuer bid ("NCIB”);
  • A net drawdown of $180 million was made on the Credit Facility (as defined herein) during the fourth quarter to help finance the acquisition of AmerCable, bringing the outstanding balance to $180 million; and
  • The Company closed on a private placement offering of debt subscription receipts for aggregate gross proceeds of approximately $127 million. Such subscription receipts were exchanged, in accordance with their terms, on December 24, 2024, into additional 7.25% senior unsecured notes due 2031. These were used to partially fund the purchase price for the acquisition of AmerCable and are reported as restricted cash as of December 31, 2024.

__________________ 1.  The Company's consolidated financial statements for the year ended December 31, 2024, report Continuing Operations as the Company's Composite Technologies and Connection Technologies reporting segments and Financial and Corporate. Discontinued Operations includes Company's Thermotite business, which is its final remaining pipe coating business. Total consolidated figures include Continuing Operations and Discontinued Operations.

2.  Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EPS are non-GAAP measures. MEO costs are a supplementary financial measure. Non-GAAP measures and supplementary financial measures do not have standardized meanings prescribed by GAAP and are not necessarily comparable to similar measures provided by other companies. See "Section 5.0 - Reconciliation of Non-GAAP Measures” for further details and a reconciliation of these non-GAAP measures.

"In 2024, Mattr continued to successfully execute on its strategic transformation designed to enhance full-cycle margins, reduce volatility and position the Company for long-term growth,” said Mike Reeves, Mattr's President & CEO. "With new manufacturing facilities on-line, share repurchases continuing and the strategic acquisition of AmerCable now complete, we are well-positioned for 2025 and beyond.”

"Building upon the portfolio rationalization largely completed in late 2023, over the last 12-months the Company has deployed significant capital to establish and commence production from three new US manufacturing facilities and meaningfully progress the establishment of one additional Canadian manufacturing facility.  During 2024 Mattr also repurchased 5% of its outstanding shares, refinanced its outstanding senior notes to lower its cost of debt, extended its Credit Facility and executed a definitive agreement to acquire AmerCable, a substantial, highly accretive, US-focused addition to our electrification-driven premium wire and cable portfolio.  In parallel with these strategic actions, the Company took steps to lower its annualized fixed-cost base while continuing to invest in the development and commercialization of new product offerings and delivering annual revenue records in three of its four business lines.”

Mr. Reeves continued: "Early in 2025, Mattr completed the acquisition of AmerCable, largely completed the relocation of Shawflex production activity into its remaining new Canadian site and began to lower its revolving debt balance.”

"Outlook for customer demand across the Company's electrification, mineral extraction, retail fueling and water management end markets in 2025 remains strong and, provided that the scale and duration of North American trade tariffs is limited, Mattr currently expects to deliver meaningful year-over-year Adjusted EBITDA, Operating Cash Flow and Adjusted Earnings Per Share growth.”

"Our outlook for 2026 and beyond continues to strengthen.  Having deployed nearly $1 billion of capital over the last four-years, we believe Mattr is well positioned to benefit from accelerating demand for premium, harsh environment products driven by increased electrical power generation expansion (including substantial nuclear refurbishment and potential new site development), electrical utility network expansion and renewal, storm water management needs, data center construction and retail fueling network renewal, compounded by the potential return-to-growth of North American oilfield activity and global automotive production, enhanced global investment in mineral extraction and both technology and geography-driven market share gains across our business lines.”

Mr. Reeves concluded: "We have successfully navigated our multi-year business transformation and believe we are now poised to consistently deliver customer and shareholder value expansion through profitable growth, enhanced cash flow, debt reduction, additional accretive acquisitions and continued share repurchases.”

Selected Financial Highlights

  Three Months EndedYear Ended
  December 31,December 31,
 (in thousands of Canadian dollars, except per share amounts and percentages)2024  2023  2024  2023 
  $  $  $  %$ 
 Revenue207,771  191,471  885,317  880,529 
 Gross Profit47,270 23%57,896 30%243,835 28%278,54132%
 Operating (Loss) Income from Continuing Operations (a)(9,416) -5%(4,262) -2%40,121 5%68,1148%
 Net (Loss) Income from Continuing Operations(20,289)  (3,496)  (6,017)  42,365 
 Net Income (Loss) from Discontinued Operations7,512  (19,510)  2,469  44,854 
 Net (Loss) Income for the period(12,777)  (23,006)  (3,548)  87,219 
 (Loss) Earnings per share:        
          
 Basic(0.20)  (0.33)  (0.06)  1.26 
 Diluted(0.20)  (0.33)  (0.06)  1.25 
 Adjusted EBITDA from Continuing Operations (b)12,718 6%25,894 14%108,224 12%150,78717%
 Adjusted EBITDA from Discontinued Operations (b)8,342 35%111,826 39%22,472 30%237,17627%
 Total Consolidated Adjusted EBITDA from Operations (b)21,060 9%137,719 29%130,696 14%387,96322%
 Total Consolidated Adjusted EPS from Operations (b)        
          
 Basic(0.02)  1.49  0.70  3.46 
 Diluted(0.02)  1.47  0.69  3.43 
(a)Operating loss for the three months ended December 31, 2024, includes $4.9 million restructuring costs and other net, no impairment charges or gain on sale of land and other; while operating income for the three months ended December 31, 2023, includes $2.5 million restructuring costs and other net, $18.5 million impairment charges and $1.7 million gain on sale of land and other. Operating income for the year ended December 31, 2024, includes $8.4 million restructuring costs and other net, no impairment charges and no gain on sale of land and other; Operating income for the year ended December 31, 2023, includes $2.5 million restructuring costs and other, net, impairment charges of $27.2 million, $1.7 million gain on sale of land and other.
(b)Adjusted EBITDA, adjusted EBITDA margins and Adjusted EPS are non-GAAP measures. Non-GAAP measures do not have standardized meanings under GAAP and are not necessarily comparable to similar measures provided by other companies. See "Section 5.0 - Reconciliation of Non-GAAP Measures” for further details and a reconciliation of these non-GAAP measures.

1.0 FOURTH QUARTER HIGHLIGHTS

During the fourth quarter of 2024, the Company, through its subsidiary, entered into a definitive agreement to acquire all of the outstanding shares of AmerCable from Nexans for a purchase price of US$280 million, or approximately CAD $403 million, subject to normal working capital adjustments. This transaction was completed subsequent to quarter end, with final working capital adjustment expected to be completed by mid-2025. Further information regarding the details of the transaction can be found in "Section 3.0 Key Developments” of the MD&A and in the outlook section of this document and the MD&A.

During the fourth quarter of 2024, the Company delivered $207.8 million in revenue from Continuing Operations, which represented a $16.3 million or an 8.5% increase from the same quarter of 2023. The Company's operating loss from Continuing Operations in the fourth quarter of 2024 was $9.4 million, which represented an increase in loss of $5.2 million compared to the fourth quarter of 2023. Adjusted EBITDA from Continuing Operations was $12.7 million during the fourth quarter of 2024, which represented a decrease of $13.2 million compared to the fourth quarter of 2023.

The Company's Composite Technologies segment revenue increased by $7.8 million or 6.9% in the fourth quarter of 2024 compared to the prior year's quarter, primarily as a result of higher US sales of Flexpipe products, driven by continued market share expansion, and higher revenue in the Xerxes segment, primarily driven by a return to more normal levels of fourth quarter construction activity after the fourth quarter of 2023 was negatively affected by transient customer permitting challenges.

The Company's Connection Technologies segment delivered fourth quarter revenue of $87.5 million, representing an $8.5 million, or 10.8%, increase compared to the same quarter of 2023.  This represented a new fourth quarter record, driven primarily by stronger sales of Shawflex wire and cable products into Canadian industrial and infrastructure markets, higher copper prices and stronger year-over-year sales of heat shrink products into automotive end markets.

The fourth quarter of 2024 results also include $4.9 million of restructuring costs associated mostly with organizational changes and right-sizing of the Company's workforce, $2.6 million of non-routine provisions associated with a specific customer order, $2.2 million in non-recurring pension related costs, $1.7 million in costs associated with the acquisition of AmerCable, $1.0 million in costs to pre-position finished goods in the US ahead of potential tariff implementation and $0.6 million of severance costs associated with executive management changes. In contrast, the fourth quarter of 2023 included $18.5 million in impairment charges related to the closure of the Anaheim manufacturing facility and $2.5 million of restructuring costs. The Company's financial results in the fourth quarter of 2024 include the impact of $3.8 million in expenses related to the Company's ongoing MEO strategy compared to $1.7 million of MEO related expenses recorded in the fourth quarter of 2023. Additionally, the Company recorded a recovery of $2.2 million in share-based incentive compensation against operating income from Continuing Operations during the fourth quarter of 2024. Comparatively, operating income from Continuing Operations in the prior year's fourth quarter included an expense of $2.1 million in share-based incentive compensation. Impairment charges, restructuring costs, non-recurring pension related costs, acquisition costs and share-based incentive compensation are adjusted out of the adjusted EBITDA calculation, but MEO, severance costs associated with executive management changes, customer order provisions and inventory pre-positioning costs are included in the adjusted EBITDA calculation.

As at December 31, 2024, the Company had cash and cash equivalents (included restricted cash) totaling $502.5 million, an increase from $334.1 million as at December 31, 2023. The increase in cash compared to year-end 2023 was largely attributable to the drawdown on the credit facility (the "Credit Facility”) of $179.9 million and the increase in senior unsecured notes of $145.6 million. These increases were partially offset by an increase of $39.4 million in capital expenditure and a decrease of $73.3 million in cash provided by operating activities. 

Selected Segment Financial Highlights

  Three Months EndedYear Ended
  December 31,December 31,
 (in thousands of Canadian dollars)2024  2023  2024  2023  
  $  %$  %$  %$  %
 Revenue        
 Composite Technologies120,277  112,489  528,435  535,549  
 Connection Technologies87,494  78,982  356,882  344,980  
 Financial and Corporate-  -  -  -  
 Revenue from Continuing Operations207,771  191,471  885,317  880,529  

This website uses cookies. By continuing to browse the website, you are agreeing to our use of cookies. Read More.

Read Entire Article