Value Creation Plan and Divestiture Success
Initial benefits from the value creation plan, including a gain from the divestiture of SGK, now Propelis Group, with a reported 40% ownership. Propelis projects an initial annual adjusted EBITDA of $100 million with identified synergies of $60 million, higher than expected.
Debt Reduction and Financial Stability
Outstanding debt was reduced by $120 million during the current quarter, with further reductions expected. This was achieved through proceeds from the SGK divestiture and cost savings initiatives.
Industrial Technologies Segment Performance
Adjusted EBITDA for the segment increased from $4.2 million a year ago to $9 million, primarily due to benefits from cost reduction actions and higher warehouse automation sales.
Memorialization Segment Stability
Reported modest revenue increase driven by the Dodge acquisition and cost savings initiatives, despite lower sales volumes and higher material costs. The segment's adjusted EBITDA increased from $38.7 million to $42.8 million year-over-year.
Launch of New Printhead Technology
The upcoming launch of the Axiom product, featuring a patented silicon-based print engine, presents a significant opportunity in the approximately $2 billion market for fast-moving consumer goods.