<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For The Quarterly Period Ended June 30, 2000
Commission File Nos. 0-9115 and 0-24494
MATTHEWS INTERNATIONAL CORPORATION
(Exact Name of registrant as specified in its charter)
PENNSYLVANIA 25-0644320
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
TWO NORTHSHORE CENTER, PITTSBURGH, PA 15212-5851
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (412) 442-8200
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [X] No [ ]
The number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:
Class of Common Stock Outstanding at July 31, 2000
Class A - $1.00 par value 13,265,130 shares
Class B - $1.00 par value 2,059,884 shares
<PAGE> 2
PART I - FINANCIAL INFORMATION
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000 September 30, 1999
------------- ------------------
<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 26,751,718 $ 31,531,686
Short-term investments 1,284,052 147,114
Accounts receivable 46,307,823 45,949,743
Inventories: Materials and finished goods $ 14,914,512 $ 14,883,879
Labor and overhead in process 1,552,432 1,212,485
Supplies 341,916 304,113
---------- ----------
16,808,860 16,400,477
Other current assets 2,796,711 2,862,341
---------- ----------
Total current assets 93,949,164 96,891,361
Investments 14,492,062 11,312,730
Property, plant and equipment: Cost 93,558,490 89,777,983
Less accumulated depreciation (44,771,991) (39,107,236)
---------- ----------
48,786,499 50,670,747
Deferred income taxes and other assets 13,782,801 13,639,723
Goodwill, net of accumulated amortization 48,957,932 53,163,011
----------- -----------
Total assets $219,968,458 $225,677,572
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Long-term debt, current maturities 4,837,675 7,604,443
Accounts payable 9,881,089 9,798,531
Accrued compensation 15,721,975 18,127,646
Accrued income taxes 3,865,785 818,324
Customer prepayments 6,118,029 6,825,149
Other current liabilities 9,264,976 19,117,031
---------- ----------
Total current liabilities 49,689,529 62,291,124
Long-term debt 15,777,597 14,144,038
Estimated finishing costs 4,215,621 4,059,837
Postretirement benefits 19,153,487 19,513,936
Other liabilities 8,045,116 11,046,706
Shareholders' equity:
Common stock 18,166,996 18,166,996
Retained earnings 170,553,099 152,098,622
Accumulated other comprehensive income (loss) (6,789,644) (3,970,000)
Notes receivable (13,806) (54,800)
Treasury stock, at cost (58,829,537) (51,618,887)
----------- -----------
123,087,108 114,621,931
----------- -----------
Total liabilities and shareholders' equity $219,968,458 $225,677,572
=========== ===========
</TABLE>
<PAGE> 3
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------ --------------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales $ 67,872,139 $ 61,405,443 $197,391,066 $176,435,150
Cost of sales 36,773,493 35,912,327 107,627,802 102,325,890
---------- ---------- ----------- -----------
Gross profit 31,098,646 25,493,116 89,763,264 74,109,260
Selling and
administrative expenses 17,768,132 14,366,454 53,538,417 43,723,467
---------- ---------- ----------- -----------
Operating profit 13,330,514 11,126,662 36,224,847 30,385,793
Investment income 436,266 602,371 1,265,253 1,390,170
Interest expense (369,658) (264,940) (1,189,305) (500,822)
Other income
(deductions), net (138,753) (231,865) (172,717) (285,879)
Minority interest (566,284) 128,121 (1,716,144) (95,067)
---------- ---------- ----------- -----------
Income before
income taxes 12,692,085 11,360,349 34,411,934 30,894,195
Income taxes 4,966,728 4,472,287 13,488,774 12,165,816
---------- ---------- ----------- -----------
Net income $ 7,725,357 $ 6,888,062 $ 20,923,160 $ 18,728,379
========== ========== =========== ===========
Basic earnings per share $ .50 $ .44 $ 1.35 $ 1.18
===== ===== ===== =====
Diluted earnings per share $ .49 $ .43 $ 1.32 $ 1.15
===== ===== ===== =====
Dividends per share $.0475 $ .045 $.1425 $ .135
===== ===== ===== =====
</TABLE>
<PAGE> 4
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
June 30,
--------------------------
2000 1999
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 20,923,160 $ 18,728,379
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 9,228,802 7,399,879
Change in deferred taxes 1,753 (339,253)
Changes in working capital items (1,395,867) (8,026,116)
Increase in other assets (313,344) (224,622)
Increase in estimated finishing costs 155,784 476,790
Increase (decrease) in other liabilities (3,001,590) 425,540
Decrease in postretirement benefits (360,449) (455,788)
Net loss on sale of assets 277,802 47,991
Net (gain) loss on investments 113,701 (154,121)
Effect of exchange rate changes on operations (674,076) (268,971)
---------- ----------
Net cash provided by operating activities 24,955,676 17,609,708
---------- ----------
Cash flows from investing activities:
Capital expenditures (5,714,973) (11,592,652)
Proceeds from sale of assets 467,592 156,065
Acquisitions, net of cash acquired (9,520,333) (10,278,531)
Purchases of investment securities (6,716,970) (529,503)
Proceeds from disposition of investment securities 2,031,756 4,227,392
Collections on loans to officers and employees 40,994 208,445
---------- ----------
Net cash used in investing activities (19,411,934) (17,808,784)
---------- ----------
Cash flows from financing activities:
Proceeds from long-term debt 4,023,360 14,645,963
Payments on long-term debt (3,779,161) (600,381)
Proceeds from the sale of treasury stock 197,457 763,065
Purchases of treasury stock (7,672,327) (11,157,235)
Dividends (2,204,463) (2,136,584)
---------- ----------
Net provided by (cash used) in financing activities (9,435,134) 1,514,828
---------- ----------
Effect of exchange rate changes on cash (888,576) (233,511)
---------- ----------
Net increase (decrease) in cash and cash equivalents $ (4,779,968) $ 1,082,241
========== ==========
</TABLE>
<PAGE> 5
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
Note 1. Nature of Operations
Matthews International Corporation ("Matthews"), founded in 1850 and
incorporated in Pennsylvania in 1902, is a designer, manufacturer and
marketer principally of custom-made products which are used to identify
people, places, products and events. The Company's products and operations
are comprised of three business segments: Bronze, Graphics Imaging and
Marking Products. The Bronze segment is a leading manufacturer of cast
bronze memorials and other memorialization products, crematories and
cremation-related products and is a leading builder of mausoleums in the
United States. The Graphics Imaging segment manufactures and provides
printing plates, pre-press services and imaging systems for the corrugated
and flexible packaging industries. The Marking Products segment designs,
manufactures and distributes a wide range of equipment and consumables for
identifying various consumer and industrial products, components and
packaging containers.
The Company has manufacturing and marketing facilities in the United States,
Australia, Canada, Germany, Italy and Sweden.
Note 2. Basis of Presentation
The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information for commercial and industrial companies and the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for fair presentation have been
included. Operating results for the three-month and nine-month periods
ended June 30, 2000 are not necessarily indicative of the results that may
be expected for the fiscal year ending September 30, 2000. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-K for the year
ended September 30, 1999.
The consolidated financial statements include all majority-owned foreign and
domestic subsidiaries. The consolidated financial statements also include
the accounts of the Company's 50%-owned affiliates, Tukaiz Communications,
L.L.C., O.N.E. Color Communications, L.L.C. and, effective April 1, 1999,
S+T GmbH & Co. KG. All intercompany accounts and transactions have
been eliminated.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
<PAGE> 6
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
JUNE 30, 2000
Note 3. Income Taxes
The income tax provision for the period is based on the effective tax rate
expected to be applicable for the full year. The difference between the
estimated effective tax rate of 39.2% and the Federal statutory rate of 35%
primarily reflects the impact of state income taxes.
Note 4. Earnings Per Share
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------- --------------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income $ 7,725,357 $ 6,888,062 $20,923,160 $18,728,379
========== ========== ========== ==========
Weighted average common
shares outstanding 15,420,408 15,788,712 15,529,805 15,901,985
Dilutive securities,
primarily stock options 355,757 378,920 354,990 414,772
---------- ---------- ---------- ----------
Diluted weighted average
common shares outstanding 15,776,165 16,167,632 15,884,795 16,316,757
========== ========== ========== ==========
Basic earnings per share $ .50 $ .44 $1.35 $1.18
==== ==== ==== ====
Diluted earnings per share $ .49 .43 $1.32 $1.15
==== ==== ==== ====
</TABLE>
Note 5. Segment Information
The Company is organized into three business segments based on products and
services. The segments, which are Bronze, Graphics Imaging and Marking
Products, are described under Nature of Operations (Note 1). Management
evaluates segment performance based on operating profit (before income
taxes) and does not allocate non-operating items such as investment income,
interest expense, other income (deductions),net and minority interest.
<PAGE> 7
MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
JUNE 30, 2000
Note 5. Segment Information, continued
Information about the Company's segments follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------- --------------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales to external customers:
Graphics Imaging $ 22,867,129 $ 21,944,128 $ 67,739,715 $ 62,165,106
Marking Products 8,230,426 7,727,258 24,816,068 22,890,652
Bronze 36,774,584 31,734,057 104,835,283 91,379,392
----------- ----------- ----------- -----------
$ 67,872,139 $ 61,405,443 $197,391,066 $176,435,150
=========== =========== =========== ===========
Operating profit:
Graphics Imaging $ 2,643,102 $ 1,302,572 $ 6,942,903 $ 4,226,697
Marking Products 1,484,213 1,164,390 4,362,272 3,086,386
Bronze 9,203,199 8,659,700 24,919,672 23,072,710
----------- ----------- ----------- -----------
$ 13,330,514 $ 11,126,662 $ 36,224,847 $ 30,385,793
=========== =========== =========== ===========
</TABLE>
Note 6. Comprehensive Income
Comprehensive income consists of net income adjusted for changes, net of
tax, in cumulative foreign currency translation, unrealized investment gains
and losses and minimum pension liability. Comprehensive income for the
three-month and nine-month periods ended June 30, 2000 were $7,430,465 and
$18,103,516, respectively, and $6,935,896 and $18,593,190, respectively, for
the three-month and nine-month periods ended June 30, 1999.
Note 7. Accounting Pronouncement
In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial
Statements." SAB No. 101 provides guidance on the recognition, presentation
and disclosure of revenue in financial statements filed with the SEC. SAB
No. 101 outlines basic criteria that must be met to recognize revenue and
provides guidance for disclosure related to revenue recognition policies.
The Company will be required to implement SAB No. 101 in the first quarter
of its fiscal year ending September 30, 2001. The Company is currently
evaluating the pronouncement in order to determine the impact, if any, of
its provisions on the consolidated financial statements.
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statement:
The following discussion should be read in conjunction with the consolidated
financial statements and footnotes thereto included in this Quarterly Report
on Form 10-Q and the Company's Annual Report on Form 10-K for the year ended
September 30, 1999. Any forward-looking statements contained herein are
included pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve
known and unknown risks and uncertainties that may cause the Company's
actual results in future periods to be materially different from
management's expectations. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove correct. Factors
that could cause the Company's results to differ materially from the results
discussed in such forward-looking statements principally include changes in
domestic or international economic conditions, changes in product demand or
pricing as a result of consolidation in the industries in which the Company
operates, changes in product demand or pricing as a result of competitive
pressures, and technological factors beyond the Company's control.
Results of Operations
The following table sets forth certain income statement data of the Company
expressed as a percentage of net sales for the periods indicated.
Nine months ended Years ended
June 30, September 30,
----------------- --------------------
2000 1999 1999 1998 1997
---- ---- ---- ---- ----
Sales 100.0% 100.0% 100.0% 100.0% 100.0%
Gross profit 45.5 42.0 43.1 44.0 44.1
Operating profit 18.4 17.2 17.1 17.0 16.3
Income before income taxes 17.4 17.5 17.2 17.5 17.1
Net income 10.6 10.6 10.5 10.6 10.4
Sales for the nine months ended June 30, 2000 were $197.4 million and were
$21.0 million, or 11.9%, higher than sales of $176.4 million for the nine
months ended June 30, 1999. Bronze segment sales were $13.5 million, or
15%, higher than the first nine months of fiscal 1999 primarily reflecting
the Company's acquisition of Caggiati S.p.A. in June 1999 and higher sales
of architectural and memorial products. These increases were partially
offset by a decline in mausoleum construction revenues. Sales for the
Graphics Imaging segment increased $5.6 million, or 9%, over the same period
a year ago principally resulting from the Company's purchase of a 50%
interest in S+T GmbH & Co. KG ("S+T GmbH") in September 1998. S+T GmbH was
recorded under the equity method of accounting until March 31, 1999. The
consolidated financial statements of Matthews included the accounts of S+T
GmbH effective April 1, 1999 as a result of a change in control. Graphics
Imaging segment sales for the current period also reflected higher sales for
Tukaiz Communications, L.L.C. ("Tukaiz"). The sales increase for Tukaiz, a
50%-owned subsidiary of Matthews, primarily resulted from the installation
of a commercial printing operation in fiscal 1999.
<PAGE> 9
Results of Operations, continued:
For the nine months ended June 30, 2000, Marking Products segment sales were
$1.9 million, or 8%, higher than the first nine months of fiscal 1999. The
increase for the current period resulted primarily from higher sales volume
in North America of ink-jet equipment and related products, reflecting the
favorable impact of the segment's new product development efforts.
Gross profit for the nine months ended June 30, 2000 was $89.8 million,
compared to $74.1 million for the first nine months of fiscal 1999. The
increase of $15.7 million in consolidated gross profit reflected growth in
all three of the Company's business segments. Gross profit in the Bronze
and Graphics Imaging segments were higher for the current period principally
as a result of the Company's recent acquisitions. In addition, higher sales
of architectural and memorial products combined with improved margins
accounted for part of the increase in the Bronze segment. Marking Products
gross profit also improved over the first nine months of fiscal 1999
reflecting an increase in sales volume and a change in product mix.
Consolidated gross profit as a percent of sales for the nine months ended
June 30, 2000 increased to 45.5%, compared to 42.0% for the same period a
year ago, reflecting changes in product mix in both the Bronze and Marking
Products segments and improved results for Tukaiz.
Selling and administrative expenses for the nine months ended June 30, 2000
were $53.5 million, representing an increase of $9.8 million, or 22.4%, over
the same period a year ago. The increase in selling and administrative
expenses principally resulted from the acquisitions of Caggiati S.p.A. and
S+T GmbH combined with an increase in selling and administrative costs
within the Bronze segment. Consolidated selling and administrative expenses
as a percent of sales was 27.1% for the first nine months of fiscal 2000
compared to 24.8% for the same period a year ago.
Operating profit for the nine months ended June 30, 2000 was $36.2 million,
representing an increase of $5.8 million, or 19.2%, over an operating profit
of $30.4 million for the first nine months of fiscal 1999. Graphics Imaging
operating profit for the current period was $2.7 million, or 64%, higher
than the same period last year reflecting higher sales and improved gross
margins. The segment's fiscal 2000 results were favorably impacted by the
Company's investment in S+T GmbH combined with an improvement in the
operating results of Tukaiz. Operating profit for the Bronze segment for
the first nine months of fiscal 2000 was $1.8 million, or 8%, higher than
the same period a year ago. The acquisition of Caggiati S.p.A. combined
with higher sales and improved margins for architectural and memorial
products were the primary factors in the Bronze segment's current operating
results. Operating profit for the Marking Products segment for the nine
months ended June 30, 2000 increased $1.3 million, or 41%, over the same
period a year ago. Higher sales in North America of ink-jet equipment and
related products as a result of the segment's new product development
efforts and a better product mix resulted in the operating profit growth.
Investment income for the first nine months of fiscal 2000 was $1.3 million
compared to $1.4 million for the first nine months of fiscal 1999. Fiscal
1999 investment income included equity income of $244,000 from the Company's
investment in S+T GmbH, which was recorded under the equity method of
accounting through March 31, 1999.
<PAGE> 10
Results of Operations, continued:
Interest expense for the nine months ended June 30, 2000 was $1.2 million,
compared to $501,000 for the first nine months of fiscal 1999. The increase
in interest expense compared to the same period last year principally
related to fiscal 1999 borrowings by Tukaiz and new borrowings and assumed
debt in connection with the acquisition of Caggiati in June 1999.
Other income (deductions), net, for the nine months ended June 30, 2000
represented a reduction to pre-tax income of $173,000 compared to a
reduction of $286,000 for the first nine months of fiscal 1999. Minority
interest for the first nine months of fiscal 2000 was $1.7 million compared
to $95,000 for the same period a year ago. The higher minority interest
deduction for the current period resulted from the Company's investment in
S+T GmbH and an improvement in the operating results of Tukaiz.
The Company's effective tax rate for the first nine months of fiscal 2000
was 39.2%, compared to 39.4% for the year ended September 30, 1999. The
difference between the Company's effective tax rate and the Federal
statutory rate of 35% primarily reflects the impact of state income taxes.
Liquidity and Capital Resources
Net cash provided by operating activities was $25.0 million for the nine
months ended June 30, 2000, compared to $17.6 million for the first nine
months of fiscal 1999. Operating cash flow for both periods primarily
reflected net income adjusted for depreciation and amortization (non-cash
expenses). Operating cash flow for the prior period was impacted by higher
accounts receivable related to mausoleum construction revenues and the
payment of income tax accruals.
Cash used in investing activities was $19.4 million for the nine months
ended June 30, 2000 compared to $17.8 million for the first nine months of
fiscal 1999. Investing activities for the current period reflected capital
expenditures of $5.7 million, net purchases of investment securities of
$4.7 million and cash payments of $3.6 million and $5.6 million,
respectively, in connection with the acquisitions of Caggiati S.p.A. and a
50% interest in S+T GmbH. Under the acquisition agreement for Caggiati
S.p.A., Matthews paid cash of Lit. 20.2 billion (U.S.$10.9 million) at the
closing (June 1, 1999) with Lit. 7.2 billion payable one year after the
closing date (June 1, 2000) and the remaining Lit. 7.2 billion payable two
years after the closing date (June 1, 2001). The cash payment for the
purchase of a 50% interest in S+T GmbH (which was acquired in September
1998) was due in January 2000. Investment securities were purchased in the
fiscal 2000 first quarter to obtain a better rate of return on the Company's
excess cash. Investing activities for the first nine months of fiscal 1999
included capital expenditures of $11.6 million, which were partially offset
by proceeds of $3.7 million from the net disposition of investment
securities. Fiscal 1999 investing activities also included the acquisition
of Caggiati S.p.A. in June 1999.
Capital expenditures for the first nine months of fiscal 2000 were lower
than the same period a year ago principally reflecting the investment last
year in a commercial printing operation at Tukaiz. Capital spending for
property, plant and equipment has averaged $8.9 million for the last three
fiscal years. The capital budget of the Company for fiscal 2000 is
$11.7 million. The Company expects to generate sufficient cash from
operations to fund all anticipated capital spending projects.
<PAGE> 11
Liquidity and Capital Resources, continued
Cash used in financing activities for the nine months ended June 30, 2000
was $9.4 million, consisting of net treasury stock purchases of
$7.5 million, proceeds of $4.0 million from borrowings by Caggiati S.p.A.,
repayments of $3.8 million on long-term debt of Caggiati S.p.A. and Tukaiz,
and dividend payments of $2.2 million to the Company's shareholders. Cash
provided by financing activities was $1.5 million for the nine months ended
June 30, 1999 consisting principally of borrowings of $14.6 million in
connection with the acquisition of Caggiati S.p.A. and capital projects for
Tukaiz, offset by net treasury stock purchases of $10.4 million and the
Company's dividends of $2.1 million. The Company had available lines of
credit with U.S. and Canadian banks, net of outstanding borrowings, of
approximately $11 million at June 30, 2000.
On April 27, 2000, Matthews announced that its Board of Directors approved a
continuation of the Company's stock repurchase program. Previously, the
Board had authorized the repurchase of a total of three million shares of
the Company's Class A and Class B Common Stock, which has been substantially
completed. The current authorization allows Matthews to purchase up to an
additional one million shares. The repurchase program is designed to
increase shareholder value, enlarge the Company's holdings of its Class A
and Class B Common Stock, and add to earnings per share. Repurchased shares
may be retained in treasury, utilized for acquisitions, or reissued to
employees or other purchasers.
At June 30, 2000 and September 30, 1999 and 1998, the Company's current
ratio was 1.9, 1.6 and 1.7, respectively. The Company had cash and cash
equivalents at June 30, 2000 and September 30, 1999 of $26.8 million and
$31.5 million, respectively. Net working capital at June 30, 2000 was $44.3
million. The Company believes that its current liquidity sources, combined
with its operating cash flow and additional borrowing capacity, will be
sufficient to meet its capital needs for the next 12 months.
Accounting Pronouncement
In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial
Statements." SAB No. 101 provides guidance on the recognition, presentation
and disclosure of revenue in financial statements filed with the SEC. SAB
No. 101 outlines basic criteria that must be met to recognize revenue and
provides guidance for disclosure related to revenue recognition policies.
The Company will be required to implement SAB No. 101 in the first quarter
of its fiscal year ending September 30, 2001. The Company is currently
evaluating the pronouncement in order to determine the impact, if any, of
its provisions on the consolidated financial statements.
Year 2000 Issue
The Company has assessed the impact of the Year 2000 issue on its operations
and information systems. Costs incurred for this assessment and for systems
modifications required to address any Year 2000 issues have not been
material. The Company's significant operating and information systems are
Year 2000 compliant and, as such, the Year 2000 issue did not have a
material impact on the consolidated financial position, results of
operations or cash flows of the Company.
<PAGE> 12
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The following Exhibit to this report is filed herewith:
Exhibit
No. Description
------- -----------
27 Financial Data Schedule (via EDGAR)
(b) Reports on Form 8-K
None
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MATTHEWS INTERNATIONAL CORPORATION
(Registrant)
Date 8/10/00 D.M. Kelly
------------ -----------------------------------------
D.M. Kelly, Chairman of the Board,
President and Chief Executive Officer
Date 8/10/00 E.J. Boyle
------------ -----------------------------------------
E.J. Boyle, Vice President, Accounting &
Finance, Treasurer and Secretary
