matv-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒
	For the quarterly period ended	March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
			For the transition period from __________________to __________________

1-13948

(Commission file number)

MATIV HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


Delaware		62-1612879
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

100 Kimball Pl,	Suite 600
Alpharetta,	Georgia	30009
(Address of principal executive offices)		(Zip Code)

1-770-569-4229

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, $0.10 par value	MATV	New York Stock Exchange

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The Company had 54,322,760 shares of common stock outstanding as of May 6, 2024.

MATIV HOLDINGS, INC.

TABLE OF CONTENTS


		Page
	Part I. - Financial Information
Item 1.	Financial Statements	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	34
	Part II. - Other Information
Item 1.	Legal Proceedings	35

Item 1A.	Risk Factors	35

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35

Item 3.	Defaults Upon Senior Securities	35

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	36

Item 6.	Exhibits	37

Signatures		38

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

MATIV HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in millions, except per share amounts)

(Unaudited)




	Three Months Ended March 31,
		2024		2023
Net sales		$	500.2	$	549.0
Cost of products sold		416.2		461.3
Gross profit		84.0		87.7

Selling expense		18.5		20.4
Research and development expense		6.0		6.7
General expense		58.9		62.0
Total nonmanufacturing expenses		83.4		89.1



Restructuring and impairment expense		14.4		0.8
Operating loss		(13.8)		(2.2)
Interest expense		18.3		15.6
Other income (expense), net		1.7		(0.7)
Loss from continuing operations before income taxes		(30.4)		(18.5)
Income tax benefit, net		(2.4)		(3.0)



Net loss from continuing operations		(28.0)		(15.5)
Net income from discontinued operations		—		7.8
Net loss		(28.0)		(7.7)
Dividends to participating securities		—		(0.1)
Net loss attributable to Common Stockholders		$	(28.0)	$	(7.8)





Net loss per share - basic:
Loss per share from continuing operations		$	(0.52)	$	(0.28)
Income per share from discontinued operations		—		0.14
Basic		$	(0.52)	$	(0.14)

Net loss per share – diluted:
Loss per share from continuing operations		$	(0.52)	$	(0.28)
Income per share from discontinued operations		—		0.14
Diluted		$	(0.52)	$	(0.14)

Weighted average shares outstanding:
Basic		54,267,900		54,483,000
Diluted		54,267,900		54,483,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

MATIV HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)

(Unaudited)


	Three Months Ended March 31,
		2024		2023
Net loss		$	(28.0)	$	(7.7)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(9.2)		18.4
Cash flow hedges		2.3		(11.4)
Postretirement benefit plans		0.4		0.5
Other comprehensive income (loss)		(6.5)		7.5
Comprehensive loss		$	(34.5)	$	(0.2)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

MATIV HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

(Unaudited)


	March 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	128.9	$	120.2
Accounts receivable, net	225.8		176.5
Inventories, net	341.0		352.9
Income taxes receivable	28.5		30.6


Other current assets	35.1		32.3

Total current assets	759.3		712.5
Property, plant and equipment, net	652.3		672.5
Finance lease right-of-use assets	17.5		18.2
Operating lease right-of-use assets	46.0		45.6
Deferred income tax benefits	8.6		6.4

Goodwill	470.6		474.1
Intangible assets, net	609.8		631.3
Other assets	88.6		81.8

Total assets	$	2,652.7	$	2,642.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current debt	$	2.7	$	2.8
Finance lease liabilities	1.4		1.4
Operating lease liabilities	10.3		9.9
Accounts payable	165.9

SEC Form 10-Q filed by Mativ Holdings Inc.