Mattr Announces Fourth Quarter and Full Year 2024 Results

"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

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