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    Justin Bergner • Gabelli Funds

    Justin Bergner's questions to Matthews International Corp (MATW) leadership

    Justin Bergner's questions to Matthews International Corp (MATW) leadership • Q3 2025

    Question

    Justin Bergner from Gabelli Funds asked a series of clarifying questions regarding the status of the RotoGravure/European packaging business sale, the components of the debt reduction bridge post-SGK divestiture, and how the full-year EBITDA guidance incorporates the Propellus stake. He also inquired about recent legal developments with Tesla and the potential conversion timeline for the energy storage pipeline.

    Answer

    President & CEO Joseph Bartolacci clarified the RotoGravure sale is expected to close by September 30, generating over $30 million in net cash. CFO Steven Nicola detailed the debt bridge, citing factors like trapped cash, currency hedges, and the Dodge acquisition. Bartolacci confirmed the $190 million EBITDA guidance includes their estimated, non-lagged share of Propellus's results and noted Tesla's recent legal filings are considered long shots. He also provided a 60-90 day timeline for a potential major order in the battery coating line business.

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    Justin Bergner's questions to Matthews International Corp (MATW) leadership • Q2 2025

    Question

    Justin Bergner of Gabelli Funds asked a series of questions, seeking clarification on whether the $50 million cost savings program was related to the SGK sale and the specifics of the post-close accounting for the SGK joint venture. He also inquired about plans for the share repurchase program, the mechanics of the dry battery electrode retrofit opportunity, and the value proposition of this technology for the grid storage market.

    Answer

    Joseph Bartolacci, President and CEO, clarified that the cost savings are unrelated to SGK and are tied to downsizing in the energy business and at corporate. Steven Nicola, CFO, explained the post-close SGK accounting: GAAP net income will include the equity portion, while adjusted EBITDA will use a 1-quarter lag with a pro forma provided for the current quarter. Bartolacci confirmed they anticipate expanding the share repurchase authorization post-close. He described the retrofit as a drop-in replacement for the wet electrode production step and stated the value proposition for grid storage is identical to EVs, representing a market expansion.

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    Justin Bergner's questions to Matthews International Corp (MATW) leadership • Q1 2025

    Question

    Justin Bergner questioned how the Tesla arbitration ruling affects the strategic review process for the energy business and inquired about forward-looking demand trends for the product identification and warehouse automation businesses.

    Answer

    CEO Joseph Bartolacci explained that with the new clarity from the ruling, the company will resume its long-standing evaluation of strategic alternatives to highlight the energy business's value, while remaining patient to maximize shareholder returns. He described product identification demand as 'steady and growing' and noted that quote activity and order intake for the warehouse automation business are improving.

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    Justin Bergner's questions to GATX Corp (GATX) leadership

    Justin Bergner's questions to GATX Corp (GATX) leadership • Q2 2025

    Question

    Justin Bergner questioned if the entire guidance increase was due to engine leasing, why the guidance range wasn't narrowed, the potential impact of rail merger speculation on the secondary market, and the drivers behind the strong international segment profitability.

    Answer

    EVP & CFO Tom Ellman confirmed the guidance increase is primarily due to engine leasing and the range remains wide because of the lumpy timing of large remarketing gains. Paul Titterton, EVP & President of Rail North America, stated the secondary market remains robust and unimpacted by merger news, driven by strong capital demand. Tom Ellman also clarified that while international profit looks strong, it is tracking slightly below expectations when adjusted for foreign exchange rates due to market challenges in Europe.

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    Justin Bergner's questions to GATX Corp (GATX) leadership • Q1 2025

    Question

    Justin Bergner from Gabelli Funds asked about sequential spot lease rate trends and whether the company's view on the secondary market had strengthened. He also inquired about the reasons for the higher-than-normal cash balance and whether the RRPF joint venture saw unusually high gains from asset sales during the quarter.

    Answer

    President and CEO Robert Lyons responded that sequential lease rates were down slightly, as anticipated. He stated the view on the secondary market is unchanged, with its continued strength highlighting asset quality. The high cash balance was attributed to a strategic $800 million bond issuance to pre-fund 2025 needs. Lyons clarified that the RRPF joint venture's income mix of operating and remarketing income was in line with expectations and not driven by unusual sales.

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    Justin Bergner's questions to GATX Corp (GATX) leadership • Q4 2024

    Question

    Justin Bergner questioned the capital allocation plan for 2025, asking where investment would increase to partially offset the lower volume in Rail North America. He also asked about the impact on debt levels and the timeline for the conclusion of higher maintenance expenses.

    Answer

    EVP and CFO Thomas Ellman explained that Rail International investment is expected to increase by $50-$100 million, while other segments remain similar. He also stated that the company's leverage, measured by debt-to-equity, is expected to remain relatively consistent. Paul Titterton, EVP and President of Rail North America, clarified that 2025 is the last high compliance year and expects net maintenance expense to decrease starting in 2026.

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    Justin Bergner's questions to GATX Corp (GATX) leadership • Q3 2024

    Question

    Justin Bergner of Gabelli Funds asked about sequential lease rate trends, the long-term earnings mix for the RRPF joint venture, and the drivers behind the strong profitability in the Rail International segment.

    Answer

    President and CEO Bob Lyons noted that absolute lease rates saw a very small downtick from Q2 to Q3 but remain at historically high levels, supported by stable supply-side dynamics. Regarding RRPF, EVP and CFO Tom Ellman and CEO Bob Lyons explained that while the earnings mix can vary, the growing fleet size will, on the margin, shift the long-term average toward more operating income, though this change will be gradual. Lyons confirmed Rail International's strong performance was not due to one-offs but reflected solid execution and cost control in Europe and continued growth in India.

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    Justin Bergner's questions to L B Foster Co (FSTR) leadership

    Justin Bergner's questions to L B Foster Co (FSTR) leadership • Q1 2025

    Question

    Justin Bergner of Gabelli Funds questioned the cause of lower gross margins in the Rail segment despite a seemingly favorable product mix, asked about the margin impact from higher steel prices, sought clarity on which business was affected by delayed government funding, and requested an update on April's performance.

    Answer

    CFO Bill Thalman explained the Rail margin pressure was due to the significant volume decline in rail distribution and a tough comparison for the Total Track Monitoring (TTM) business. President and CEO John Kasel stated that the company is prepared to pass on higher steel costs from tariffs, similar to past experiences. He clarified that the delayed funding primarily impacted the rail distribution business tied to transit authorities. Regarding recent trends, Kasel commented that he was 'not discouraged' by April's performance and that his confidence in meeting full-year guidance is based on current activity.

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    Justin Bergner's questions to L B Foster Co (FSTR) leadership • Q4 2024

    Question

    Justin Bergner of Gabelli Funds questioned the potential impact of disruptions at national and state parks on the Precast Concrete business, which segments are expected to drive the anticipated second-half recovery, and whether potential tariffs with Canada and Mexico could negatively affect the Rail business.

    Answer

    President and CEO John Kasel acknowledged that park-related issues could push results toward the lower end of guidance but stated the business remains strong with a solid backlog, supported by the Great American Outdoors Act. He identified the second-half recovery drivers as typical seasonality, a rebound in Protective Coatings, and growth from new Precast Concrete operations in Florida and Tennessee. Regarding tariffs, Kasel noted that while they can create uncertainty, customer demand is strong and contracts provide flexibility to pass on increased costs.

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    Justin Bergner's questions to Trinity Industries Inc (TRN) leadership

    Justin Bergner's questions to Trinity Industries Inc (TRN) leadership • Q4 2024

    Question

    Justin Bergner asked for quantification of the incentive compensation reduction within the guided SG&A savings, confirmation of the Rail Products margin and tax rate guidance, and the reason for lower Q4 leasing margins. He also questioned if the guided level of secondary market sales represents a new normal.

    Answer

    CFO Eric Marchetto clarified that lower incentive compensation accounts for less than half of the $40 million in SG&A savings, representing a reset to target levels after a strong 2024. He confirmed the 7%-8% Rail Products margin guidance and 25%-27% tax rate guidance. CEO Jean Savage explained that leasing margins were impacted by elevated maintenance costs from a compliance interval, a factor expected to persist. Marchetto added that the $40-$50 million gains guidance reflects a strategic choice to invest in the lease fleet rather than maximize sales.

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