matthews international corporation (matw)
20549__________________________________________________________________________________________________________________________FORM 10-K☒Annual Report submitted under Article 15, paragraph 13 (d)
Securities Trading Act of 19-34 fiscal year 2017 or☐Transition reports submitted under sections 13 or 15 (d)
In the Securities Trading Act of 1934, the transition period from ___ to ___ Commission
0-09115 __________________________________________________________________________________________________________________________ Hughes International the company
The exact name of the registrant specified in the articles of association)
PENNSYLVANIA25 0644320 (
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
2 North Shore centers in Pittsburgh, pa15212-5851 (
Main executive office address)(Zip Code)(412)442-8200(
Registrant phone number, including area code)
Securities registered under article 12 (b)
Title of the act: each class name of each exchange registering Class A common stock, $1.
00 par value enas Nasdaq Global Select Market securities registered under section 12th (g)
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Yes. ☐No. ☒Total market value of non-held Class A Common Stock
The registrant\'s affiliate, based on the closing price of Class A common stock on the Nasdaq Global Select Market, the last working day of the second fiscal quarter recently completed by the registrant is approximately $2. 1 billion.
As of October 31, the shares of ordinary shares issued were 32 shares of Class A common shares and 148,579 shares.
Reference included documents: specific parts of the 2018 AGM proxy statement are included in Part III of this report through reference.
Partial statement on forwarding
Forward-Looking Information: any forward-looking information
Outlook statements contained in table 10 of this annual report-K (
In particular, what is included in Project 1, \"business\", project 1A, \"risk factors\" and Project 7 \"Management\'s Discussion and Analysis of Financial Position and operational results)
Under the \"safe harbor\" provisions of the Private Securities Litigation Reform Act of 1995, this report is included. Such forward-
Forward-looking statements involve known and unknown risks and uncertainties that may lead to actual results of DoNews International Corporation (
\"Matthews\" or \"Company \")
In the future period is very different from the expectations of management.
Although the company believes this expectation is reflected in
It appears that the statement is reasonable and there is no guarantee that such expectation will prove to be correct.
In addition to the previously disclosed risk factors and the risk factors discussed elsewhere in table 10 of this year\'s report --
K, factors that may lead to significant differences in company results with the results discussed in such forwarding --
The report mainly includes changes in domestic or international economic conditions, changes in foreign currency exchange rates, and changes in the cost of materials used in the manufacture of the company\'s products, changes in mortality and cremation rates due to the integration of the company\'s operating industry, changes in product demand or pricing, changes in product demand or pricing due to domestic or international competitive pressures, unknown risks related to the company\'s acquisition, network security issues, the effectiveness of the company\'s internal control, in line with domestic and foreign laws and regulations, technical factors beyond the Company\'s control, and other factors described in Item 1A of this form, \"risk factors\" 10-K.
In addition, although no customer of the company is considered to have a separate meaning for consolidated sales, changes in the distribution of the company\'s products or potential losses of one or more of the company\'s major customers are also considered risk factors. ITEM 1. BUSINESS.
Matthews was founded in 1850 and was founded in Pennsylvania in 1902. it mainly provides brand solutions, commemorative products and industrial technology.
Brand Solutions include brand development, deployment, and delivery (
Including brand management, pre-
Media services for consumer goods and retail customers, printing boards and drums and imaging services, merchandising systems, and marketing and design services).
Commemorative products mainly include bronze and granite monuments and other commemorative products, coffins and cremation equipment mainly used in the cemetery and funeral home industry.
Industrial technologies include identification and coding equipment and consumables, industrial automation solutions, and order fulfillment systems for identifying, tracking, selecting and transporting consumers and industrial products.
In October 31, the company and its majority shareholders
There are about 11,000 employees in its subsidiaries.
The company\'s main executive office is located at 15212, two North Shore centers in Pittsburgh, Pennsylvania, and its telephone number is (412)442-
8200 and its website is www. matw. com.
The company submits or provides all required reports to the Securities and Exchange Commission (\"SEC\")
Under the transaction act.
Company Annual Report Form 10-
Quarterly Report on table 10
Q: Current Report of Form 8
K and changes to these reports are provided free of charge on the company\'s website as soon as reasonably practicable after they are submitted or submitted to SEC.
Reports submitted or provided to SEC by the company, including the evidence attached to these reports, may also be read and copied in the public information room of SEC at 100 F Street, New York StateE. Washington, D. C. C.
20549 or by contacting SEC at 1-800-732-0330.
All company reports submitted to or provided to the SEC can be found on its website. sec. gov.
The company has three reporting departments, SGK brand solutions, memory and industrial technology.
The following table lists the reported sales and operating profits of the company\'s business units for the past three financial years.
Detailed financial information related to business units and domestic and international operations see Note 18, \"department information\" in Item 8 \"--
\"Financial Statements and supplementary data. \"2ITEM 1. BUSINESS, (continued)
Year as of September 30
Sales no any customer: SGK brand solve $770,181 $755,975 $798,339 memorialization615 882610,142508 058 industrial Technologies129 545114,347119, 671 comprehensive $1,515,608 $1,480,464 $1,426,068 of business profit: SGK brand 21 Solution $24,919 $42,909 $, 864Memorialization80, 65268, 25270, 064 industrial mobilies7, 0327,65413, 095 comprehensive $112,603 $118,815 $105 in 023 in fiscal207, about 67% of the company\'s sales came from the United States, 26% from Europe, 3% from Asia and 4 from other regions.
For more information on segmentation, see Note 18 \"segmentation information\" in Item 8 \"-
\"Financial Statements and supplementary data\" on page 69th of this report \".
The products and services of the SGK Brand Solutions division are sold all over the world, mainly in the United States, Europe and Asia.
The products of the Memorialization division are sold all over the world, and the main business of the division is located in the United States, Europe, Canada and Australia.
The industrial technology sector, through its subsidiaries in Canada, Sweden, Germany and China, and through other foreign distributors, sells equipment and consumables directly to industrial consumers and distributors in the United States and the world.
Matthews has a minority stake in Industrial Technology products dealers in Asia, Australia and Europe.
SGK brand solution: the SGK brand Solution Department provides brand development, deployment and delivery (
Including brand management, pre-
Media services for consumer goods and retail customers, printing boards and drums and imaging services, merchandising systems, and marketing and design services).
The company has a wide range of products and capabilities related to brand development and brand management, serving consumer goods and retail.
The primary packaging industry consists of manufacturers of printed packaging materials, such as boxes, flexible packaging, folding cartons and bags that are often displayed by consumer goods retailers.
The corrugated packaging industry consists of printing corrugated container manufacturers.
Other major service sectors include the wallpaper, flooring, automotive and textile industries.
The main products and services of this segment include brand development, deployment, delivery, brand management, pre-
Media graphics services, 3-
D. graphic effect drawing, printing, concave drum, steel base, stamping tools, special machinery, engineering assistance, printing process assistance, printing production management, digital asset management, content management, packaging design.
Brand owners and packaging manufacturers use these products and services to develop and print packaging graphics to help identify and sell products in the market.
Other packaging graphics can include nutrition information, product instructions, consumer warning notes, and UPC codes.
Major packaging manufacturers produce printed packaging from paper, film, foil and other composite materials used to display, protect and sell products.
Corrugated packaging manufacturing printing containers for commercial corrugated cardboard production.
Using the company\'s products, the paper is printed and die-cut into a finished container. 3ITEM 1. BUSINESS, (continued)
Segments provide a wide range of value-
Services and products have been added.
Including printing process and printing production management services;
Consultation on printing engineering; pre-
Media preparations including computers
The art, film and proofs of the production;
Accessories for flat panel installation and various pressing tools; and press-
Production guarantee for side printing.
The department also provides creative digital graphics services for brand owners and packaging markets.
The sales of the department also come from the design, engineering, manufacturing and execution of the merchandising and display system.
These systems include permanent and temporary displays, custom store fixtures, brand concept stores, interactive media, custom packaging, and promotional signage for screen and digital printing.
Design and engineering services include concept and model development, graphic design, and prototyping.
The sales and display system is manufactured in accordance with the specifications developed by the department in cooperation with the customer.
The company works closely with manufacturers to provide the appropriate printing forms and tools needed to print the packaging according to user specifications.
The product is mainly made of photosensitive polymer resin and paper materials.
Plates can be prepared in advance according to customer requirementsmounted press-
Multiple configurations are provided to maximize print quality and minimize uptime set by the media.
The recessed drum made of steel, copper and chromium can be customized and designed for a wide range of printing techniques and specific customer printing applications.
The SGK Brand Solutions segment customer base is mainly composed of brand owners and packaging industry converters.
Brand owners are generally large.
Well-known consumer goods companies and retailers with national or global business.
These types of companies tend to buy their graphic needs directly and provide their products with printed forms to packaging printers or electronic documents to make printed plates and recessed drums.
The SGK Brand Solutions division provides services to customers around the world, with major locations in the US, Europe, Australia and Asia.
The main raw materials for this part of the product include photopolymer, steel, copper, film, wood, crushing board, corrugated material, steel structure, plastic, laminated products, ink and graphic art supplies.
At present, all of these materials can be adequately supplied from various industry sources.
The SGK Brand Solutions division is brand management, brand development and pre-
Media Services and manufacturers of printing editions and drums with international influence.
The company\'s business portfolio in North America, Europe and Asia are an important part of Matthews\'s strategy, becoming a global leader in the graphics industry by providing consistent services to multinational customers worldwide.
Competition is based on product quality, timeliness of delivery and price.
The sales and display business is mainly composed of small local companies, which is a decentralized industry.
The competition in the field is based on reliability, creativity and the ability to provide a wide range of goods to sell products and services.
This segment is unique in providing the following capabilities
Deep marketing and sales services with design, engineering and manufacturing capabilities.
These features enable the department to deliver a complete turnkey sales solution quickly and cost-effectively.
By continuously meeting the needs of these customers, the company provides services to national and global customers and provides various values, thus distinguishing it from its competitors.
Support services have been added.
Commemorative: the commemorative department produces and sells a series of commemorative products mainly used in cemeteries, funeral homes and crematorium.
Products mainly sold in the United States, Europe, Canada and Australia include cast bronze memorial, granite memorial, coffin, cremation equipment and other memorial products.
The department also produces and sells building products used to identify or commemorate people, places, events and achievements. 4ITEM 1. BUSINESS, (continued)
Memorial products include Ziping bronze and granite memorial, upright granite memorial and monument, cremation memorial products, granite benches, vases, Cave boards and letters, cremation urn, niche units, other related products and services features of the cemetery and statues are included.
The Chiping monument is a bronze plaque or granite monument containing personal information of the deceased (
Such as name, date of birth, date of death)
Photos and badges.
The bronze and granite memorial in flush is even \"flush\" with the ground, so many cemeteries prefer to trim their lawns and perform general maintenance.
Memorial products in the area also include communities and family tombs in North America.
In addition, other commemorative products of the division include bronze plaques, letters, badges, vases, lamps and photo ceramics that can be attached to granite monuments, tombs, basements and Chiping memorials
The main customers of commemorative products are cemeteries and memorial parks, which in turn sell the company\'s products to consumers.
The commemorative part of the customer can also be in the \"pre-need\" basis. The \"pre-
The \"need\" concept allows families to schedule these purchases before they actually need them.
According to the requirements, the company will (e. g.
Name and date of birth)
And place it in storage for future delivery.
The memorial in storage has been paid in full and ownership has been communicated to each pre-need purchaser.
The department is also a leading manufacturer and distributor of coffin and other funeral home products in North America.
The department produces and sells metal, wood and cremation coffins.
To suit a particular religion, race or other personal preference, the coffin has a variety of colors, interior design, handles and decorations.
The department also sells other funeral home products such as urn, jewelry and stationery.
The segment offers personalized coffins through its distribution network.
Metal coffin made of various cold gauge
Steel, stainless steel, copper and bronze.
Metal coffin usually according to whether the coffin is not
Pad or pad and press the material (i. e.
Copper, copper or steel)
In the case of steel, according to the instrument (thickness)of the metal.
The wooden coffin is mainly made of nine different kinds of wood.
The varieties of wood used are Poplar, pine, ash, oak, pecan, Maple, cherry, walnut and mahogany.
The Memorialization division is a leading
The coffin of wooden structure is made of DingTalk and pin structure, excluding metal parts.
Cremation coffins are mainly made of wood or cardboard covered with cloth or veneers.
These coffins mainly attract cremation consumers, consumers who pay attention to the environment and value-added buyers.
The memorial section also produces coffin parts.
The coffin assembly consists of stamped metal parts, metal locking mechanism for padded metal coffins, adjustable beds and internal panels.
Metal coffin parts for stamping cold production-
The body part of the coffin is made of steel, stainless steel, copper and bronze plates.
The locking mechanism and adjustable bed are produced by stamping and assembling various steel parts.
The department purchases a variety of uncured wood from the sawmill and from the wood dealers that will dry and solidify.
The cured wood is processed into coffin parts.
In addition, the department provides product and service classification planning for funeral service enterprises, as well as product sales and display products.
These products help funeral service professionals to provide information, value and satisfaction to their families.
The department also provides cremation systems, Crematorium Management, cremation services and supplies, waste management and incineration systems, and environmental and energy solutions for human, pet and professional incineration markets.
The main market areas for these products and services are North America and Europe, although the area is also sold to Latin America and the Caribbean, Australia, the Middle East and Asia. 5ITEM 1. BUSINESS, (continued)
The cremation system includes flames.
Systems based on cremation of humans and pets, and equipment for handling cremated remains and other related equipment (
Ventilation workstations, tables, cooler racks, vacuum cleaners).
The main markets for these products are funeral homes, cemeteries, crematorium, pet crematorium, animal processors and veterinarians.
These products are mainly sold directly by department personnel.
Human Crematorium Management/operation represents the actual operation and management of the customer-
At present, the department mainly provides these services to European municipalities and private operators in the United States.
Cremation services and supplies include operator training, preventive maintenance, and \"in-need\" service work on various equipment manufacturing and models.
The work can be as simple as replacing the defective bulb or as complex as a full rebuild and upgrade or retroInstallation on site.
Supplies are consumables associated with normal operation.
Waste Management/incineration systems include intermittent loads and continuous feed, static and rotary systems for incineration of all waste types, and
Loading waste, out
Ash and energy recovery.
The main markets for these products are medical waste disposal, oil and gas \"work camp\" waste, industrial waste and bioQuality generator.
Environmental and energy systems include discharge filtration devices, waste heat recovery equipment, waste gas treatment products, and energy recovery.
The main market is municipal or public/national institutions, cremation industries and other industries that use incinerators to reduce waste and energy production.
The memorial section also produces a range of other products, including urn boxes of various sizes, styles and shapes, as well as granite cremation bases and benches of standard and custom designs.
The division produces bronze and granite alcove units, consisting of many compartments used to display cremation pits in tombs and churches.
The company also sells turnkey cremation gardens, including the design of cremation memorial gardens and all related products.
Building products include bronze and aluminum plaques, etching and letters used to identify, commemorate and identify people, places, events and achievements.
Corporate plaques are often used to identify the name of the building or the name of the company or individual within the building.
These products are also used to commemorate activities or achievements such as military or financial contributions.
The main market for building products in the sector is companies, brother organizations, contractors, churches, hospitals, schools and government agencies.
These products are sold and distributed through a network of independent dealers including signature suppliers, award and recognition companies, and trophy dealers.
The raw materials used in the commemorative part for the manufacture of commemorative objects mainly include bronze and aluminum ingots, granite, sheet metal, coated materials, photopolymers and building materials, which are usually supplied adequately.
Ingot is obtained from various smelters in North America, Europe and Australia.
The main material needed to make the coffin is cold
Steel and wood.
The department also purchases copper, bronze, stainless steel, scrap boards, corrugated materials, paper veneers, fabrics, decorative hardware and coated materials.
Purchase orders or supply agreements are usually negotiated with large integrated steel producers that demonstrate timely delivery, high quality of materials, and competitive prices.
Wood is purchased from many sawmill and wood dealers.
The raw materials used in the manufacture of cremation and incineration products are mainly composed of steel structures, sheet metal, electrical components, combustion devices and refractory materials.
Many suppliers usually have enough supply.
Competition from other manufacturers of commemorative products is based on reputation, product quality, delivery, price and design availability.
The company believes in its excellent quality, broad product line, innovative design, delivery, customer response, experienced people and consumers --
The market-oriented sales system is its competitive advantage.
Competition in the mausoleum building industry includes a variety of construction companies across North America based on design, quality and price.
There are many competitors in the construction market, including companies that make casting and painting marks, plastic materials, sand
Fried Wood and other finished products. 6ITEM 1. BUSINESS, (continued)
The memorial section sells its coffin products in the United States through the company\'s portfolio
It has independent coffin distribution facilities.
The company operates about 100 distribution centers in the United States.
At present, about 85% of casket products are sold through the company.
It has a distribution center.
The coffin business is highly competitive and the company competes with other manufacturers on the basis of product quality, price, service, design availability and product line breadth.
The memorial section offers a range of coffin products that it believes are as comprehensive as any of its major competitors.
There are a large number of coffin industry participants in North America, and some foreign coffin manufacturers mainly from China have participated in the North American market.
The company mainly competes with several manufacturers in the cremation and accessories equipment market on the basis of product design, quality and price.
In the United States, the commemorative market and its three global competitors account for a large part. S.
European Market for cremation equipment.
The memorial section is committed to providing a comprehensive solution for customers who own and operate business in the cemetery and funeral home markets.
The company\'s memorial and coffin products serve relatively stable
The burial market, while its memorial products and cremation equipment also serve the growing cremation market.
Industrial technology: the Industrial Technology Department designs, manufactures and distributes a wide range of marking and coding equipment and consumables, industrial automation solutions, and order fulfillment systems.
Manufacturers, suppliers and distributors around the world rely on the integrated systems of DoNews to identify, track, communicate and pick their products.
Marking System from mechanical marking solution to microprocessor-based ink-
Spray printing systems integrated into customer manufacturing, inventory tracking, and material handling control systems.
The company produces and sells products and systems using different marking technologies, including contact printing, dents, etching, laser and inkjet printing.
Customers often use a combination of these methods to achieve appropriate tagging.
These technologies apply the product information required for identification and traceability and facilitate inventory and quality control, compliance and brand communication.
Fulfillment System complements the tracking and distribution of customer products through automated order fulfillment technology, motors-
Control of drive rollers and material handling systems for product transportation.
Material handling customers include some of the largest automated assembly and distribution companies in the United States.
The company also designs innovative customized solutions to meet the specific customer needs of various industries such as oil exploration and safe scanning.
A large part of the industrial technology sector\'s revenue is attributable to the marking, coding and tracking of consumables and sales of replacement parts required for the products sold by DoNews.
The company develops ink, rubber and steel consumables together with marking equipment using ink, rubber and steel, which is essential to ensure continuous equipment reliability and marking quality.
The main customers of the company\'s identification and fulfillment system products are manufacturers, suppliers and distributors of durable goods, construction products, consumer goods manufacturers (
Including food and beverage processors)
And pharmaceutical manufacturers.
The company also serves a wide range of industrial markets, including metal manufacturers, woven and non-woven manufacturers
Woven fabric, plastic, rubber and automotive products.
Part of the department\'s sales are outside the United States, and in addition to other international distributors, the distribution source is the company\'s subsidiaries in Canada, Sweden, Germany and China.
The company has a minority interest in dealers in Asia, Australia and Europe. 7ITEM 1. BUSINESS, (continued)
The main raw materials for the products of the department include precision components, electronic products, printed parts, tool steel, rubber and chemicals, all of which are currently adequately supplied from various sources.
There are many competitors in the marking and fulfillment system industry, and some companies are well-
Other companies operate in a similar way to the company, offering a wide range of product lines and competing in multiple product markets and countries.
The competition for marking and performing system products is based on product performance, ease of integration into manufacturing and/or distribution processes, services and prices.
The company typically competes with professional companies in specific brand marking solutions and traceability applications.
The Company believes that, in general, its industrial technology sector offers one of the widest range of products to address a wide range of marking, coding, and industrial automation applications.
Patents, trademarks and licenses: the company has a number of trademarks and more than 100 domestic and foreign patents for its products and related technologies.
However, the company believes that the loss of any individual or a large number of patents or trademarks will not have a significant impact on consolidated operations or revenue.
Backlog: due to the nature of the company\'s SGK brand solutions, the business of commemorative and industrial technology is mainly customized products, ordered and served in a short lead time, the backlog is usually not material, except roto-
The concave engineering project of the SGK brand solutions division, the mausoleum and cremation equipment of the memorial department, and the industrial automation and order fulfillment system of the Industrial Technology Department.
For roto, the backlog is within the sales range of about six to twelve months
The project and mausoleum.
The sales backlog of cremation equipment varies from 8 to 10 months of sales.
The backlog of sales in the industrial technology sector is usually different in six weeks of standard products and twelve weeks of customized systems.
Fiscal2018 is expected to fill the company\'s current backlog significantly.
Regulatory matters: the operation of the company is subject to various federal, state and local laws and regulations related to environmental protection.
The company is a party to various environmental matters, including the obligation to investigate and mitigate the environmental impact of the disposal of certain materials in various operating and non-operating placesBusiness premises.
The company is currently conducting environmental assessments and remediation at these locations as appropriate.
See Note 16 \"environmental matters\" in Item 8\"
For details of the financial statements and supplementary materials, please refer to the annex. 8ITEM 1A. RISK FACTORS, (continued)ITEM 1A. RISK FACTORS.
Inherent risks and uncertainties associated with the company\'s business may adversely affect its operational performance and financial position.
The following is a description of the risks and uncertainties that the company currently considers important.
Additional risks that are not currently known or considered irrelevant may also adversely affect the company.
Changes in economic conditions.
Usually, changes in the economic situation at home and abroad will affect the industry operated by the company and its customers and suppliers.
These changes include changes in the consumption rate or usage rate of company products caused by the economic recession, fluctuations in currency exchange rates, changes in raw material prices caused by supply and/or demand conditions.
As consumers and businesses may continue to delay or cancel spending, the uncertainty of the current global economic situation poses a risk.
Other factors that may affect consumer consumption include energy costs, credit market conditions, consumer confidence, and other factors that affect consumer behavior.
These and other economic factors may have an impact on the needs of the company\'s products and services and have a negative impact on the company\'s financial situation and operational results.
The company operates in more than 25 countries around the world. In fiscal207, about 33% of the products the company sells to external customers are sold to customers outside the United States.
In addition, the company\'s manufacturing business, suppliers and employees are distributed in many parts of the world.
Therefore, the future success of the company depends to some extent on itsU. S. markets.
Sales and Operations outside the United States are affected by certain inherent risks, including value fluctuations in the United StatesS.
S. dollar relative to foreign currency, global economic uncertainty, tariffs, quotas, tax and other market barriers, political and economic instability, restrictions on technology import and export, potential protection of limited intellectual property rights, difficulties in staffing and managing international operations may have adverse tax consequences and require compliance with non-U. S.
Laws and regulations.
Changes in foreign currency exchange rates.
Most of the company\'s products are manufactured and sold outside the United States, so the company holds assets, bears liabilities, earns revenue and pays in various currencies.
Consolidated financial statements of the company to the United StatesS.
Therefore, the company must translate the reported value of its foreign assets, liabilities, income and expenses into the United StatesS. dollars.
Increase or decrease in the value of the United StatesS.
Compared to foreign currency, the dollar may have a negative impact on the value of these items in the consolidated financial statements of the company, although the value of these items has not changed in the local currency.
Prices of raw materials rose.
The company\'s profitability is affected by the price of raw materials used in the manufacture of its products.
These prices may fluctuate depending on factors, including changes in supply and demand, domestic and global economic conditions, fluctuations in commodity markets, currency exchange rates, labor costs and fuel --related costs.
If the supplier raises the price of key raw materials, alternative supply sources or alternative materials, it may not exist or be readily available.
The company has a standard sales price structure (i. e. , list prices)
In some of its sections, these sections usually undergo an adjustment review once a year.
In addition, the company has established pricing terms with several customers through contracts or similar arrangements.
Depending on the competitive market conditions and the extent to which the company establishes pricing terms with its customers, the company\'s ability to immediately increase product prices to offset increased costs may be limited.
Major raw material price increases where sales price increases or productivity increases cannot be mitigated will have a negative impact on the company\'s operating results. 9ITEM 1A. RISK FACTORS, (continued)
Changes in mortality and cremation rates.
In general, life expectancy has been growing steadily for decades in the United States and in other countries where the company\'s memory portion operates, and is expected to continue to do so in the future.
The increase in life expectancy will also affect future deaths.
In addition, since the 1960s, the percentage of cremation products in the total death toll in the United States has steadily increased and is expected to continue to increase in the future.
The company expects these trends to continue in the future, and sales of the company\'s memory segment may benefit from the continued growth in the number of ideas;
However, this trend may adversely affect the number of bronze and granite memorial products and coffins sold in the United States.
Changes in product demand or price.
The company\'s business has and will continue to operate in a competitive market.
Changes in product demand or pricing are affected by competition at home and abroad, as well as an increase in consolidated procurement of large customers operating in domestic and global markets.
Commemorative business usually operates in markets with sufficient supply capacity and demand, which is associated with mortality.
Brand Solutions business provides services to global customers who require suppliers to be global in scope and pricecompetitive.
In addition, in recent years, the company has increased its products made overseas, mainly in China and imported into the company\'s United States. S. markets.
These trends are expected to continue and may affect the company\'s future operating results.
Changes in the distribution of the company\'s products or the loss of large customers.
Although the company does not have any customers that have a separate meaning for consolidated sales, it does contract with several big customers in the areas of memory and SGK brand solutions.
While these contracts provide an important channel for large purchasers of the company\'s products, they can require the company to sell the products at contract prices for a long time.
In addition, if the company is unable to maintain the business with the subsequent owner of the business, any significant divestiture of the business attributes or operations by the current customer may result in business losses.
Risks associated with acquisitions.
The company has achieved growth through acquisitions to a certain extent and continues to assess acquisition opportunities that are likely to support and strengthen its business.
However, there is no guarantee that future acquisition opportunities will emerge or that they will be perfected if they do.
In addition, the acquisition involves the inherent risk that the acquired enterprise will not be able to execute as expected, or that the expected synergies of the acquisition integration will not be achieved as quickly as expected, if any
Failure to effectively integrate the acquisition business may hinder the achievement of the expected return on acquisition investment and may have a negative impact on the company\'s operating results and financial situation.
Intellectual property protection.
Certain businesses of the company rely on a variety of intellectual property rights, including patents, copyrights, trademarks and trade secrets, as well as terms of secrecy and licensing arrangements to establish ownership.
If the company does not successfully implement intellectual property rights, its competitive position may be compromised, thereby damaging the company\'s operating results.
In addition, intellectual property rights such as patents, copyrights, trademarks of the company may not provide a significant competitive advantage.
Companies may need to spend a lot of resources to monitor their intellectual property rights, or they may not be able to detect infringement by third parties.
If a company cannot promptly or fundamentally detect infringement and enforce its intellectual property rights, its competitive position may be compromised.
In some cases, the company may choose not to enforce because the infringer has dominant intellectual property status or other commercial reasons.
In addition, competitors may design or develop non-
Competitive Technology violation
In some countries, intellectual property rights and the ability of companies to enforce these rights may not be available or limited, which may make it easier for competitors to gain market share and may result in loss of income. 10ITEM 1A. RISK FACTORS, (continued)
Environmental remediation and compliance.
Due to environmental laws and regulations, the company faces environmental liability risks and operational restrictions.
The company is subject to a wide range of federal, state, local and foreign environmental, health and safety laws and regulations, these laws and regulations deal with air emissions, waste water emissions, the treatment and disposal of solid and hazardous wastes, and the investigation and remediation of pollution.
The risk of potentially substantial costs and liabilities related to compliance with these laws and regulations is an inherent part of the company\'s business and future conditions may develop, generate or be found to generate significant environmental compliance or remediation liability and costs.
Compliance with environmental, health and safety legislation and regulatory requirements may be more restrictive and costly than the company expects, and there is no guarantee that significant expenditures related to such compliance may not be required in the future.
From time to time, the company may be subject to legal proceedings filed by private or government authorities on environmental matters, including matters involving alleged non-compliance with environmental regulations or environmental liability, health and safety laws, property losses or personal injuries.
New laws and regulations, including laws and regulations that may involve greenhouse gas emissions, stricter enforcement of existing laws and regulations, detection of previously unknown pollution or implementation of new cleaning measures
An upward requirement may require the company to bear costs or become the basis for new or increased liabilities that may have a significant adverse effect on the company\'s business, financial position or results of operations.
Technical factors beyond the Company\'s control.
The company operates in certain markets where technology product development helps it compete effectively.
There is no guarantee that the company will be able to develop new products, that new products can be manufactured and sold, or that new products will successfully meet the expectations of customers.
Network security and data leakage.
During the business process, the company collects and stores sensitive data and proprietary business information.
The company may be affected by a service interruption or security system violation, which may result in an interruption, unauthorized access, theft or damage to this information.
Security holes in the company\'s network or data, including physical or electronic disruption
Ins, interruption of vendor services, computer viruses, hacking or similar violations may result in a system outage, shutdown, or unauthorized disclosure of confidential information.
Although the company has not been aware of any significant incident so far, its operations may be disturbed if such security or privacy breaches cannot be prevented, or the company may be subject to legal claims, loss of reputation, financial loss, loss of property or regulatory penalties due to loss or theft of information.
Comply with foreign laws and regulations.
Due to the international scope of the company\'s operations, Matthews is subject to complex business and trade laws and regulations on a global scale. The company\'s external operations are subject to laws and different rules and business practices from the United States.
The company is unable to predict the nature, scope or impact of future regulatory requirements that the company\'s operations may be subject to, or to predict the way in which existing laws are managed or interpreted, this may have a significant and negative impact on the company\'s business and operational results.
For example, in recent years, there has been an increase in the development and implementation of laws on trade compliance and anti-corruption
Corruption like AmericaS.
The Foreign Corruption Act is similar to that of other countries.
While DoNews maintains various internal policies and controls and takes measures, including regular training and internal audits, the company believes that these measures are reasonably calculated, the purpose is to prevent, prevent and detect violations of the company that cannot guarantee that such acts are effective and that individual employees will not engage in inappropriate acts in violation of the company\'s policies and instructions.
Such acts, even allegations, may lead to costly investigations and severe criminal or civil sanctions that may disrupt the business of the company, and may have a significant and adverse impact on the company\'s reputation, business and operational results or financial position. 11ITEM 1A. RISK FACTORS, (continued)
In addition, the company is bound by laws and regulations worldwide that affect its operations outside the United States, including but not limited to intellectual property ownership and infringement, taxation, customs, import and export requirements, against
Corruption and anti-corruption
Bribery, restrictions on foreign exchange control and cash return, foreign investment, data privacy requirements, counter-
Competition, pension and social insurance, employment, the environment, health and safety.
Compliance with these laws and regulations may be onerous and costly and may vary from jurisdiction to jurisdiction.
In addition, the promulgation of new laws, changes in existing laws and the abolition of local regulations by national laws may have a negative impact on the company\'s business and prospects.
In addition, some laws and regulations are relatively new, and there is greater uncertainty in their interpretation and implementation.
There is no guarantee that any of these factors will not have a significant adverse effect on the company\'s business, operating results or financial position.
Effectiveness of internal control.
The Oakley Act of 2002 requires a comprehensive assessment of the company\'s internal controls on financial reporting.
In order to comply with this regulation, the company needs to record and test its internal control over the financial report, and management needs to evaluate and issue a report on the internal control of the financial report, it also requires the company\'s independently registered accounting firm to prove and report the company\'s evaluation of the effectiveness of internal control of financial reports.
Any failure to maintain or implement the new or improved controls required may result in the company\'s failure to meet its periodic reporting obligations or in material misstatements in consolidated financial statements, correcting these or other internal control deficiencies may require significant costs and resources.
If the company cannot issue a reliable financial report, investors may lose confidence in the financial information reported by the company, the market price of the Company\'s common shares may fall sharply, and the company\'s business will also be affected, could damage the financial position and reputation.
Comply with securities laws and regulations;
Conflict minerals report.
The company must comply with various securities laws and regulations, including but not limited to Sabans-
The Oakley Act of 2002 and the Dodd Act
Wall Street Reform and Consumer Protection Act\"Dodd-Frank\"). Dodd-
Among other things, Frank contains provisions aimed at increasing transparency and accountability in certain mineral supply chains from the Democratic Republic of the Congo and neighbouring countries deemed to be in favor of armed groups (
Conflict minerals]. While Dodd-
Frank does not prohibit companies from using conflict minerals, and SEC requires due diligence, disclosure and reporting requirements for companies necessary for product functionality or production.
The company\'s efforts to comply with the Dodd Act
Frank and other evolving laws, regulations and standards may result in increased costs and expenses associated with compliance and potential violations. ITEM 1B.
The employee\'s opinion was not resolved. Not Applicable. 12ITEM 2. PROPERTIES, (continued)ITEM 2. PROPERTIES.
Principal property of the company and majority shareholders-
As of October 31, the subsidiaries owned are as follows (
Property is owned by the company, but as mentioned earlier)
: Location description of the Property sgk brand solution: Antwerp, Belgium manufacturing Chennai, India operating facility (1)
Operating facilities (Chicago)1)
Operating facilities Cincinnati (1)
Clayton, UK Land Management Facility (1)
Operating facilities (1)
Polnow, Polish manufacturing center, UK operating facility (1)
East Butler, German manufacturing company, pompanua factory1)Grenzach-
German manufacturing company, Turkish Manufacturing Company1)
Izmir TurkeyManufacturingJulich, GermanyManufacturingKalamazoo, MIOperating facilityKempen, GermanyManufacturing (1)
Operating facilities in Kowloon, Hong Kong (1)
Operating facilities in London, United Kingdom (1)
British manufacturing (Manchester)1)
Operating facilities in Mississauga, Canada (1)
German manufacturing company, German manufacturing company1)
Manufacturing in Munich, Germany (1)
New Berlin, WIManufacturing (1)
Manufacturing in Germany, Nuremberg, Russia1)
Operation facilities of Penang Island, Malaya Portland, Operation facilities (1)
Craitaro Mexico operating facilityRedmond, WAOperating fund1)St.
San Francisco, United States, United States1)
Operating facilities (Shanghai)1)
Shenzhen operation center, China (1)13ITEM 2. PROPERTIES, (continued)
Location description of the Property sgk brand solution ,(continued)
: Tanovo podgore, a Borland Manufacturing Company (1)
Operating facilities, or operating facilities in Germany (1)
: Office of manufacturing/department, PADivision, Pittsburgh (1)
Po Puka, FLManufacturing/company OfficesApopka, floating facilityAurora, INManufacturingBristol, tndistribution Colorno, ItalyManufacturing (1)
TXDistribution Hub (Dallas)1)
Dandenong, Australia\'s manufacturing industry (1)
Manufacturing, manufacturing, manufacturing (1)
CADistribution Hub (Fontana)1)
Fort Harris, PADistribution Hub (1)
Hyde, a British manufacturing company (1)
Distribution Center (Indianapolis)1)
British manufacturing company, British manufacturing company, British manufacturing company (1)
Monterey manufacturing, Mexico (1)
Richmond, manufacturing (1)
* Late submission of this report, INManufacturingSearcy, Mount ARManufacturingStone, GADistribution hub (1)
Udene, ItalyManufacturing (1)
Manufacturing in Italy (1)
West Point, msdistribution Whittier, manufacturing (1)
Manufacturing technology: Pittsburgh, manufacturing/department office, Beijing, China (1)
Cincinnati, Ohio (1)
Cincinnati, German city, WIManufacturing (1)
Manufacturing/distribution in Gothenburg, Sweden (1)
RicaManufacturing, Lima, Costa Rica (1)
Made in China, Portland, Tianjin (1)14ITEM 2. PROPERTIES, (continued)
Location description of property company office: PAGeneral office, Pittsburgh (1)
These properties are leased by the company according to the operating lease arrangement. (2)
In addition to the properties listed, the Memorialization division leases a total of about 1 warehouse facility.
Operates 1 million square feet of leases in 38 states.
The rent paid by the company for all rental facilities is approximately $36.
4 million in fiscalender.
All properties owned are not hindered.
The Company believes that its facilities are generally well suited for their respective uses and are of sufficient size and design to provide the operational efficiency required by the company to compete.
The company\'s facilities provide enough space to meet the needs of its neighborhood
Regular production requirements and additional capacity available.
In order to meet the demand for products, the company intends to continue to expand and modernize its facilities. ITEM 3.
Matthews will be subject to various legal proceedings and claims in the normal course of business.
Management does not expect the results of these legal proceedings to have a significant adverse effect on Matthews\'s financial position, operating results or cash flow. ITEM 4.
Information disclosure of mine safety. Not applicable.
The executive management of 15 officers and registrants, as of October 31, provided the following information on officers and executive management: Name Position of registrant Joseph C.
Gregory, president and chief executive of Bartolacci57
David F. , chief technology officer, Babe59.
Vice President and Controller of Baker 65
Brian J. , vice president of human resources.
Steven D. executive vice president of strategy and company development.
Robert M, president of the Gackenbach54 Group
Steven F. , Vice President and Treasurer.
Chief Financial Officer and Secretary of Nicola57
David A, president of environmental solutions
Brian D, president of SGK brand solutions.
Joseph C. , vice president and general counsel.
Bartolacci has been appointed president and chief executive since October 2006. Gregory S.
Babewas has been appointed chief technology officer since November 2015.
Prior to that, since joining the company in November 2014, he has served as interim executive vice president of global information technology and integration.
Before joining the company, Sir.
Beibei is president and chief executive of Liquid X printing metals.
Chief executive of rail engineering from June 2013 to November 2014
From July 2012 to June 2013David F.
Baker has been appointed vice president and chief financial officer since February 2010. Marcy L.
Campbell was appointed vice president of human resources in November 2014. Ms.
Campbell served as regional human resources director in January 2013 and as regional human resources manager from November 2005 to December 2012. Brian J.
Since July 2014, Dunn has been appointed executive vice president of strategy and company development.
Prior to that, he served as president of the brand Solutions Group since February 2010. Steven D.
In October 31, 2011, Gackenbach was appointed president of the group. Robert M.
Marsh was appointed vice president and head of finance in February 2016.
He has been a treasurer since joining the company in December 2014.
Before joining the company, Sir.
Marsh is a partner of PNC mezzanine capital, the main mezzanine investment business of PNC Financial Services Group Co. , Ltd (\"PNC\"). Mr.
Marsh joined PNC in 1997. Steven F.
Nicola has been appointed chief financial officer and secretary since December 2003. Paul F.
Rahill was appointed president of environmental solutions in October 2002. David A.
Schawk joined the company in July 2014 as president of sgws brand solutions after acquiring Schawk. Mr.
Schawk has been chief executive of Schawk since July 2012 and has been a member of the Schawk board since 1992. Brian D.
Walters has been appointed vice president and general counsel since February 2009. Part Three, Part Five.
Market for common shares of registrants and related shareholder matters.
Market information: the Company\'s authorized Ordinary Shares are composed of 70,000,000 shares of Class A common shares in US $1. 00 par value.
The company has issued 148,579 shares so far.
The company\'s Class A common stock is traded in the NASDAQ Global Select Market with the symbol \"MATW.
The table below lists the high, low and closing prices of the Nasdaq report\'s display period: Fiscal 2017: Deadline quarter: $66 in September 30, 2017. 65$57. 40$62.
In June 25, 201772 per cent. 6060. 4061.
In March 25, 201777 per cent. 8564. 4567.
December 31, 2016, 65. 1057. 6576.
Finance 2016: $62 for the quarter ended September 30, 2016. 85$54. 76$60.
June 30, 2016, 76. 0549. 3755.
64 54 on March 31, 2016. 8045. 0051.
December 31, 2015, 47. 1046. 0553.
The company has a stock repurchase plan. The buy-
The Back program aims to increase shareholder value, expand holdings of the Company\'s common stock and increase earnings per share.
Shares repurchased may be retained in the Treasury for acquisition or may be reissued to employees or other purchasers in accordance with the limitations of the Company\'s Restated Articles of Association.
According to the current authorization, the board of directors of the company has authorized the repurchase of 000,000 shares of Matthews\'s common stock under the plan, of which 1 shares, as of 816,146, there are still 2017 shares available for repurchase.
During fiscal207, all purchases of the Company\'s common stock were part of the repurchase plan.
In May 2016, the company purchased 970,000 ordinary shares.
Back project from members of the Schawk family, including David. Schawk (
Who is a member of the company\'s board of directors and president of the company, SGK brand solutions)
And some members of the family.
Schawk and/or trust established for the benefit of Mr.
Schawk or his family
The purchase price of the stock is $50.
6921625 per share, equal to 96.
On May 12, 2016, the Nasdaq Global Select Market announced 76% of the average high and low trading prices of ordinary shares. 17ITEM 5.
Market for ordinary shares of registrants and related shareholders ,(continued)
The following table shows the monthly fiscal207 stock repurchase activity: total number of shares purchased weighted-
The average price paid per share is the total number of shares purchased as part of the total number of planned shares publicly announced, according to Plan 2016-$——
2,028,570 November 8, 2016 3,29367.
4983,2931, December 11, 2016, 945,277, 93673.
63 11,9361, 933,341 January 2017-——
February 2017 1,933,341.
98 39,9181, March 8, 2017 93,423-——
1,893,423 667 in April 12, 2017.
661261,893, 297May 38, 49963.
7038,4991, 854,798 062 on June 26, 2017.
552601,854,538 July 5, 2017, 50065.
605,5001, 849,038 August 13, 2017, 66 665.
4513,6661, 835,372, September 19, 2017, 2658.
2219,261, 816,146 Total212, $424 66.
03212,424 holders: according to the company\'s existing records, the number of record holders of the Company\'s common stock as of October 31 was 611.
Dividend: $0 per quarter.
On November 16, 2017, 19 pounds per share was announced to recorded shareholders.
The company pays $0 a quarter. 17, $0. 15, and $0.
During fiscal207, 2016 and 2015, 13 per share per quarter.
At least for the past 40 years, ordinary shares have paid cash dividends every yeareight years.
The Company currently intends to continue to pay quarterly cash dividends on its common stock.
However, there is no guarantee that the dividend will be announced and paid, as the declaration and payment of the dividend is at the discretion of the board of directors of the company and depends on many factors, including but not limited to the financial position of the company, operating results, cash demand, future prospects and other related factors considered by the board.
Securities authorized under the equity compensation plan: see equity compensation plan in item 12 of the seventh page of this report, \"ownership of securities of certain beneficial owners and management. 18ITEM 5.
Market for ordinary shares of registrants and related shareholders ,(continued)
Comparison of five performance charts
Annual cumulative returns for DoNews international corporation, S & P 500 index, S & P 400 index and S & P 600 Index * total returns assumed dividend reinvestment note: performance chart assumes an investment of $100 in Standard & Poor\'s stock of DoNews International Corporation in October 1, 2012 (S&P)
S & P 500, S & P 400 and S & P 600.
The results do not necessarily indicate future performance. 19ITEM 6.
Select financial data.
For the year ended September 30 (1)2016(2)2015(3)2014(4)2013(5)(
The amount is thousand except per share data)(Unaudited)
Net sales $1,515,608 $1,480,464 $1,426,068 $1,106,597 $985,357 operation profit112 603118,815105 02381,52294 615 Interest expense26 37124,34420 61012,62812, net income attributable to shareholders $74,368 $66,749 $63,449 $42,625 per share common stock Income $54,121: Basic $2. 31$2. 04$1. 93$1. 51$1. 96Diluted2. 282. 031. 911. 491. 95Weighted-
Average commonshares outstanding: Basic32, 4032,64 cash, 93928,20927, 255Diluted32, 57032,90433, 1928,48327, $423 cash bonus per month. 68$0. 60$0. 54$0. 46$0.
41 assets total $2,244,649 $2,091,041 $2,143,611 $2,008,026 $1,209,245 Long-term debt, non-
Current 881, 602844,807891, 217714,027351, 068 (1)
Net forecast for fiscal 2017
Revenues of $38,458 and $10,483 affect operating profits and other deductions, respectively. These pre-
Taxes and fees mainly include acquisitions-
Related costs and strategic costs
Reduction initiatives. The pre-
The tax revenue mainly includes the recovery of losses related to the previously disclosed stolen funds of former employees, excluding the relevant costs. (2)
Net forecast for fiscal 2016
Revenues of $36,057 and $78 affect operating profits and other deductions, respectively.
These amounts mainly include acquisitions.
Related costs and strategic costs
Reduction initiatives. (3)
Finance 2015 includes pre-
Revenues of $36,883 and $8,726 affect operating profits and other deductions, respectively, and also include the adverse effects of the relevant adjustments of $1,334 on income tax expenses.
These amounts mainly include acquisitions.
Related fees, trade name-
Reduction initiatives, as well as losses related to theft of funds, were partially offset by gains from multi-party settlements
The employer\'s pension plan obligations, and affect the favorable settlement of the lawsuit, deduct the relevant expenses. (4)
Net forecast for fiscal 2014
About $41,289 in taxes and fees, mainly related to acquisitions