– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--Materion Corporation (NYSE: MTRN) today reported first quarter financial results, provided updated 2022 earnings guidance, and shared an update on key strategic initiatives.
First Quarter 2022 Highlights
“I’m extremely proud of our talented team for continuing the momentum with a strong start to 2022, delivering another record quarter, meeting strong end market demand and realizing the benefits of organic outgrowth initiatives and strategic acquisitions,” Jugal Vijayvargiya, Materion President & Chief Executive Officer said. “With our sharp focus on operational excellence and pricing, we were able to deliver record sales and earnings, despite the inflationary environment and other challenges persisting in recent months.”
“We are accelerating our transformation into a leading provider of advanced materials solutions with the first full quarter of sales from the HCS-Electronic Materials acquisition delivering exceptional growth in the fast-growing semiconductor market,” Vijayvargiya continued. “Our broad organic initiatives continue to ramp meaningfully, also contributing strong growth in the quarter, and building solid demand for the future. Our customer-funded precision clad strip plant is nearly complete and on track to contribute meaningfully to our second half results. With the substantial progress so far and exceptional support our team has provided, the customer has made the decision to significantly expand capacity with us and further invest approximately $40 million in our new facility. This award underscores the confidence our customers have in us to support their continued growth and affirms our role as a critical partner in the development of innovative solutions for their most important technical challenges.”
FIRST QUARTER 2022 RESULTS
Net sales for the first quarter of 2022 were $449.0 million, compared to $354.4 million in the prior year first quarter. Value-added sales of $266.8 million were a quarterly record, up 34% from the prior year. In addition to the benefit of the HCS-Electronic Materials acquisition, value-added sales were up 13% organically, driven by strong performance across several major end markets including semiconductor, energy, aerospace and industrial.
Operating profit for the first quarter was $19.6 million and net income was $14.0 million, or $0.68 per diluted share, compared to an operating profit of $19.7 million and net income of $16.8 million, or $0.81 per diluted share in the prior year period. Excluding acquisition and restructuring related costs as detailed in the attached tables, adjusted EBITDA was $44.6 million in the first quarter, another quarterly record and an increase of 49% versus the prior year period.
Adjusted net income was $24.9 million excluding acquisition amortization, or $1.20 per diluted share, an increase of 38% compared to $0.87 per share in the prior year period.
With continued strong end market demand, organic outgrowth resulting from our customer initiatives, and the full year impact of the HCS-Electronic Materials acquisition, we are raising the 2022 adjusted earnings per share guidance to the range of $5.50 to $5.90.
ADJUSTED EARNINGS GUIDANCE
It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 and 5 to this press release.
CONFERENCE CALL
Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, April 28, 2022. The conference call will be available via webcast through the Company’s website at www.materion.com or through www.InvestorCalendar.com. By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 741039 if dialing in. A replay of the call will be available until May 12, 2022 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 44227. The call will also be archived on the Company’s website.
FORWARD-LOOKING STATEMENTS
Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include, in addition to those mentioned elsewhere herein: our ability to achieve the strategic and other objectives related to the acquisition of HCS-Electronic Materials, including any expected synergies; our ability to successfully integrate the HCS-Electronic Materials business and other such acquisitions and achieve the expected results of the acquisition, the ultimate impact of the COVID-19 pandemic on our business, results of operations, financial condition, and liquidity; the global economy, including the impact of tariffs and trade agreements; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success implementing our strategic plans and the timely and successful completion and start-up of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal consignment fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Materion’s stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions on operations from, and other effects of, catastrophic and other extraordinary events; and the risk factors set forth in Part 1, Item 1A of our 2021 Annual Report on Form 10-K.
Materion Corporation is headquartered in Mayfield Heights, Ohio. The Company, through its wholly owned subsidiaries, supplies highly engineered advanced enabling materials to global markets. Products include precious and non-precious specialty metals, inorganic chemicals and powders, specialty coatings, specialty engineered beryllium alloys, beryllium and beryllium composites, and engineered clad and plated metal systems.
Attachment 1 |
||||||||
|
||||||||
Materion Corporation and Subsidiaries |
||||||||
Consolidated Statements of Income |
||||||||
(Unaudited) |
||||||||
|
First Quarter Ended |
|||||||
(Thousands, except per share amounts) |
April 1, 2022 |
|
April 2, 2021 |
|||||
Net sales |
$ |
449,045 |
|
|
$ |
354,386 |
|
|
Cost of sales |
|
373,754 |
|
|
|
287,590 |
|
|
Gross margin |
|
75,291 |
|
|
|
66,796 |
|
|
Selling, general, and administrative expense |
|
41,662 |
|
|
|
36,776 |
|
|
Research and development expense |
|
7,074 |
|
|
|
6,206 |
|
|
Restructuring expense (income) |
|
1,076 |
|
|
|
(378 |
) |
|
Other — net |
|
5,873 |
|
|
|
4,474 |
|
|
Operating profit |
|
19,606 |
|
|
|
19,718 |
|
|
Other non-operating income—net |
|
(1,169 |
) |
|
|
(1,276 |
) |
|
Interest expense — net |
|
3,735 |
|
|
|
761 |
|
|
Income before income taxes |
|
17,040 |
|
|
|
20,233 |
|
|
Income tax expense |
|
3,021 |
|
|
|
3,466 |
|
|
Net income |
$ |
14,019 |
|
|
$ |
16,767 |
|
|
Basic earnings per share: |
|
|
|
|||||
Net income per share of common stock |
$ |
0.69 |
|
|
$ |
0.82 |
|
|
Diluted earnings per share: |
|
|
|
|||||
Net income per share of common stock |
$ |
0.68 |
|
|
$ |
0.81 |
|
|
Weighted-average number of shares of common stock outstanding: |
|
|
|
|||||
Basic |
|
20,464 |
|
|
|
20,374 |
|
|
Diluted |
|
20,724 |
|
|
|
20,628 |
|
|
Attachment 2 |
||||||||
Materion Corporation and Subsidiaries |
||||||||
Consolidated Balance Sheets |
||||||||
|
|
(Unaudited) |
|
|
||||
(Thousands) |
|
April 1, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
20,237 |
|
|
$ |
14,462 |
|
Accounts receivable, net |
|
|
237,712 |
|
|
|
223,553 |
|
Inventories, net |
|
|
386,992 |
|
|
|
361,115 |
|
Prepaid and other current assets |
|
|
27,971 |
|
|
|
28,122 |
|
Total current assets |
|
|
672,912 |
|
|
|
627,252 |
|
Deferred income taxes |
|
|
5,323 |
|
|
|
5,431 |
|
Property, plant, and equipment |
|
|
1,149,458 |
|
|
|
1,132,223 |
|
Less allowances for depreciation, depletion, and amortization |
|
|
(732,529 |
) |
|
|
(723,248 |
) |
Property, plant, and equipment, net |
|
|
416,929 |
|
|
|
408,975 |
|
Operating lease, right-of-use assets |
|
|
70,862 |
|
|
|
63,096 |
|
Intangible assets, net |
|
|
152,922 |
|
|
|
156,736 |
|
Other assets |
|
|
30,063 |
|
|
|
27,369 |
|
Goodwill |
|
|
317,897 |
|
|
|
318,620 |
|
Total Assets |
|
$ |
1,666,908 |
|
|
$ |
1,607,479 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Short-term debt |
|
$ |
15,351 |
|
|
$ |
15,359 |
|
Accounts payable |
|
|
103,438 |
|
|
|
86,243 |
|
Salaries and wages |
|
|
21,848 |
|
|
|
37,544 |
|
Other liabilities and accrued items |
|
|
47,793 |
|
|
|
53,388 |
|
Income taxes |
|
|
5,624 |
|
|
|
4,205 |
|
Unearned revenue |
|
|
7,407 |
|
|
|
7,770 |
|
Total current liabilities |
|
|
201,461 |
|
|
|
204,509 |
|
Other long-term liabilities |
|
|
16,457 |
|
|
|
14,954 |
|
Operating lease liabilities |
|
|
64,569 |
|
|
|
57,099 |
|
Finance lease liabilities |
|
|
15,192 |
|
|
|
16,327 |
|
Retirement and post-employment benefits |
|
|
32,704 |
|
|
|
33,394 |
|
Unearned income |
|
|
96,971 |
|
|
|
97,962 |
|
Long-term income taxes |
|
|
1,205 |
|
|
|
1,190 |
|
Deferred income taxes |
|
|
27,564 |
|
|
|
27,216 |
|
Long-term debt |
|
|
479,821 |
|
|
|
434,388 |
|
Shareholders’ equity |
|
|
730,964 |
|
|
|
720,440 |
|
Total Liabilities and Shareholders’ Equity |
|
$ |
1,666,908 |
|
|
$ |
1,607,479 |
|
Attachment 3 |
||||||||
Materion Corporation and Subsidiaries |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
(Thousands) |
|
April 1, 2022 |
|
April 2, 2021 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
14,019 |
|
|
$ |
16,767 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation, depletion, and amortization |
|
|
13,179 |
|
|
|
8,599 |
|
Amortization of deferred financing costs in interest expense |
|
|
511 |
|
|
|
182 |
|
Stock-based compensation expense (non-cash) |
|
|
1,699 |
|
|
|
1,473 |
|
Deferred income tax (benefit) expense |
|
|
401 |
|
|
|
382 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(15,045 |
) |
|
|
(15,697 |
) |
Inventory |
|
|
(28,129 |
) |
|
|
(23,219 |
) |
Prepaid and other current assets |
|
|
(5 |
) |
|
|
(2,107 |
) |
Accounts payable and accrued expenses |
|
|
(4,177 |
) |
|
|
19,224 |
|
Unearned revenue |
|
|
(343 |
) |
|
|
932 |
|
Interest and taxes payable |
|
|
1,874 |
|
|
|
3,164 |
|
Unearned income due to customer prepayments |
|
|
— |
|
|
|
5,890 |
|
Other-net |
|
|
1,712 |
|
|
|
(140 |
) |
Net cash (used in) provided by operating activities |
|
|
(14,304 |
) |
|
|
15,450 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Payments for purchase of property, plant, and equipment |
|
|
(18,977 |
) |
|
|
(31,250 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
11 |
|
|
|
575 |
|
Net cash used in investing activities |
|
|
(18,966 |
) |
|
|
(30,675 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from borrowings under revolving credit agreement, net |
|
|
49,067 |
|
|
|
14,955 |
|
Repayment of long-term debt |
|
|
(3,839 |
) |
|
|
(377 |
) |
Principal payments under finance lease obligations |
|
|
(686 |
) |
|
|
(675 |
) |
Cash dividends paid |
|
|
(2,520 |
) |
|
|
(2,338 |
) |
Payments of withholding taxes for stock-based compensation awards |
|
|
(2,717 |
) |
|
|
(2,838 |
) |
Net cash provided by financing activities |
|
|
39,305 |
|
|
|
8,727 |
|
Effects of exchange rate changes |
|
|
(260 |
) |
|
|
(446 |
) |
Net change in cash and cash equivalents |
|
|
5,775 |
|
|
|
(6,944 |
) |
Cash and cash equivalents at beginning of period |
|
|
14,462 |
|
|
|
25,878 |
|
Cash and cash equivalents at end of period |
|
$ |
20,237 |
|
|
$ |
18,934 |
|
Attachment 4 |
||||||||
Materion Corporation and Subsidiaries |
||||||||
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA |
||||||||
(Unaudited) |
||||||||
|
First Quarter Ended |
|||||||
(Millions) |
April 1, 2022 |
|
April 2, 2021 |
|||||
Net Sales |
|
|
|
|||||
Performance Materials(1) |
$ |
149.6 |
|
|
$ |
114.1 |
|
|
Electronic Materials(1) |
|
270.8 |
|
|
|
204.7 |
|
|
Precision Optics |
|
28.6 |
|
|
|
35.6 |
|
|
Other |
|
— |
|
|
|
— |
|
|
Total |
$ |
449.0 |
|
|
$ |
354.4 |
|
|
|
|
|
|
|||||
Less: Pass-through Metal Cost |
|
|
|
|||||
Performance Materials(1) |
$ |
20.5 |
|
|
$ |
13.3 |
|
|
Electronic Materials(1) |
|
160.9 |
|
|
|
141.7 |
|
|
Precision Optics |
|
0.1 |
|
|
|
— |
|
|
Other |
|
0.7 |
|
|
|
0.8 |
|
|
Total |
$ |
182.2 |
|
|
$ |
155.8 |
|
|
|
|
|
|
|||||
Value-added Sales (non-GAAP) |
|
|
|
|||||
Performance Materials(1) |
$ |
129.1 |
|
|
$ |
100.8 |
|
|
Electronic Materials(1) |
|
109.9 |
|
|
|
63.0 |
|
|
Precision Optics |
|
28.5 |
|
|
|
35.6 |
|
|
Other |
|
(0.7 |
) |
|
|
(0.8 |
) |
|
Total |
$ |
266.8 |
|
|
$ |
198.6 |
|
|
|
|
|
|
|||||
Gross Margin |
|
|
|
|||||
Performance Materials(1) |
$ |
37.3 |
|
|
$ |
29.6 |
|
|
Electronic Materials(1) |
|
29.5 |
|
|
|
23.8 |
|
|
Precision Optics |
|
8.5 |
|
|
|
13.9 |
|
|
Other |
|
— |
|
|
|
(0.5 |
) |
|
Total |
$ |
75.3 |
|
|
$ |
66.8 |
|
|
(1)The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. See further discussion in the Form 10-Q for the period ended April 1, 2022. |
|
First Quarter Ended |
|||||||
(Millions) |
April 1, 2022 |
|
April 2, 2021 |
|||||
Operating Profit |
|
|
|
|||||
Performance Materials |
$ |
19.1 |
|
|
$ |
13.5 |
|
|
Electronic Materials |
|
8.0 |
|
|
|
8.9 |
|
|
Precision Optics |
|
(0.7 |
) |
|
|
4.6 |
|
|
Other |
|
(6.8 |
) |
|
|
(7.3 |
) |
|
Total |
$ |
19.6 |
|
|
$ |
19.7 |
|
|
|
|
|
|
|||||
Non-Operating (Income) Expense |
|
|
|
|||||
Performance Materials |
$ |
0.2 |
|
|
$ |
0.1 |
|
|
Electronic Materials |
|
— |
|
|
|
— |
|
|
Precision Optics |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
Other |
|
(1.1 |
) |
|
|
(1.2 |
) |
|
Total |
$ |
(1.1 |
) |
|
$ |
(1.3 |
) |
|
|
|
|
|
|||||
Depreciation, Depletion, and Amortization |
|
|
|
|||||
Performance Materials |
$ |
5.9 |
|
|
$ |
3.4 |
|
|
Electronic Materials |
|
4.1 |
|
|
|
2.0 |
|
|
Precision Optics |
|
2.7 |
|
|
|
2.7 |
|
|
Other |
|
0.5 |
|
|
|
0.5 |
|
|
Total |
$ |
13.2 |
|
|
$ |
8.6 |
|
|
|
|
|
|
|||||
Segment EBITDA |
|
|
|
|||||
Performance Materials |
$ |
24.8 |
|
|
$ |
16.8 |
|
|
Electronic Materials |
|
12.1 |
|
|
|
10.9 |
|
|
Precision Optics |
|
2.2 |
|
|
|
7.5 |
|
|
Other |
|
(5.2 |
) |
|
|
(5.6 |
) |
|
Total |
$ |
33.9 |
|
|
$ |
29.6 |
|
|
|
|
|
|
|||||
Special Items |
|
|
|
|||||
Performance Materials |
$ |
2.7 |
|
|
$ |
— |
|
|
Electronic Materials |
|
6.8 |
|
|
|
— |
|
|
Precision Optics |
|
0.2 |
|
|
|
0.3 |
|
|
Other |
|
1.0 |
|
|
|
0.1 |
|
|
Total |
$ |
10.7 |
|
|
$ |
0.4 |
|
|
|
|
|
|
|||||
Adjusted EBITDA Excluding Special Items |
|
|
|
|||||
Performance Materials |
$ |
27.5 |
|
|
$ |
16.8 |
|
|
Electronic Materials |
|
18.9 |
|
|
|
10.9 |
|
|
Precision Optics |
|
2.4 |
|
|
|
7.8 |
|
|
Other |
|
(4.2 |
) |
|
|
(5.5 |
) |
|
Total |
$ |
44.6 |
|
|
$ |
30.0 |
|
|
The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales. |
The Company’s pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company’s results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company’s intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals. |
Attachment 5 |
||||||||||||
Materion Corporation and Subsidiaries |
||||||||||||
Reconciliation of Net sales to Value-added sales, Net Income to EBITDA and Adjusted EBITDA |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
Three Months
|
|
|
|
Three Months
|
|
|
|||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||
Net sales |
$ |
449.0 |
|
|
|
$ |
354.4 |
|
|
|||
Pass-through metal cost |
|
182.2 |
|
|
|
|
155.8 |
|
|
|||
Value-added sales |
$ |
266.8 |
|
|
|
$ |
198.6 |
|
|
|||
|
|
|
|
|
|
|
|
|||||
Net income |
$ |
14.0 |
|
5.2 |
% |
|
$ |
16.8 |
|
8.5 |
% |
|
Income tax expense |
|
3.0 |
|
1.1 |
% |
|
|
3.5 |
|
1.8 |
% |
|
Interest expense - net |
|
3.7 |
|
1.4 |
% |
|
|
0.7 |
|
0.4 |
% |
|
Depreciation, depletion and amortization |
|
13.2 |
|
4.9 |
% |
|
|
8.6 |
|
4.3 |
% |
|
Consolidated EBITDA |
$ |
33.9 |
|
12.7 |
% |
|
$ |
29.6 |
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|||||
Special items |
|
|
|
|
|
|
|
|||||
Restructuring and cost reduction |
$ |
1.1 |
|
0.4 |
% |
|
$ |
0.3 |
|
0.2 |
% |
|
Merger and acquisition costs |
|
9.6 |
|
3.6 |
% |
|
|
0.1 |
|
0.1 |
% |
|
Total special items |
|
10.7 |
|
4.0 |
% |
|
|
0.4 |
|
0.2 |
% |
|
Adjusted EBITDA |
$ |
44.6 |
|
16.7 |
% |
|
$ |
30.0 |
|
15.1 |
% |
|
In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, earnings before earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 6, we have adjusted the results for certain special items such as restructuring and cost reductions and merger and acquisition costs. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations. |
Attachment 6 |
||||||||||||||
Materion Corporation and Subsidiaries |
||||||||||||||
Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings per Share to Adjusted Diluted Earnings per Share |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Three Months
|
|
Diluted |
|
Three Months Ended |
|
Diluted |
|||||||
(Millions) |
April 1, 2022 |
|
EPS |
|
April 2, 2021 |
|
EPS |
|||||||
Net income and EPS |
$ |
14.0 |
|
|
$ |
0.68 |
|
$ |
16.8 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|||||||
Special items |
|
|
|
|
|
|
|
|||||||
Restructuring and cost reduction |
|
1.1 |
|
|
|
|
|
0.3 |
|
|
|
|||
Merger and acquisition costs |
|
9.6 |
|
|
|
|
|
0.1 |
|
|
|
|||
Provision for income taxes(1) |
|
(2.3 |
) |
|
|
|
|
(0.3 |
) |
|
|
|||
Total special items |
|
8.4 |
|
|
|
0.40 |
|
|
0.1 |
|
|
|
0.01 |
|
Adjusted net income and adjusted EPS |
$ |
22.4 |
|
|
$ |
1.08 |
|
$ |
16.9 |
|
|
$ |
0.82 |
|
Acquisition amortization (net of tax) |
|
2.5 |
|
|
|
0.12 |
|
|
1.1 |
|
|
|
0.05 |
|
Adjusted net income and adjusted EPS excl. amortization |
$ |
24.9 |
|
|
$ |
1.20 |
|
$ |
18.0 |
|
|
$ |
0.87 |
|
(1) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. |
Attachment 7 |
||||||||||||||
Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA |
||||||||||||||
(Unaudited) |
||||||||||||||
Performance Materials |
||||||||||||||
|
Three Months
|
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||||
Net sales |
$ |
149.6 |
|
|
|
|
$ |
114.1 |
|
|
|
|||
Pass-through metal cost |
|
20.5 |
|
|
|
|
|
13.3 |
|
|
|
|||
Value-added sales |
$ |
129.1 |
|
|
|
|
$ |
100.8 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
24.8 |
|
|
19.2 |
% |
|
$ |
16.8 |
|
|
16.7 |
% |
|
Merger and acquisition costs |
|
2.7 |
|
|
2.1 |
% |
|
|
— |
|
|
— |
% |
|
Adjusted EBITDA |
$ |
27.5 |
|
|
21.3 |
% |
|
$ |
16.8 |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Electronic Materials |
||||||||||||||
|
Three Months Ended |
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||||
Net sales |
$ |
270.8 |
|
|
|
|
$ |
204.7 |
|
|
|
|||
Pass-through metal cost |
|
160.9 |
|
|
|
|
|
141.7 |
|
|
|
|||
Value-added sales |
$ |
109.9 |
|
|
|
|
$ |
63.0 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
12.1 |
|
|
11.0 |
% |
|
$ |
10.9 |
|
|
17.3 |
% |
|
Restructuring and cost reduction |
|
0.8 |
|
|
0.7 |
% |
|
|
— |
|
|
— |
% |
|
Merger and acquisition costs |
|
6.0 |
|
|
5.5 |
% |
|
|
— |
|
|
— |
% |
|
Adjusted EBITDA |
$ |
18.9 |
|
|
17.2 |
% |
|
$ |
10.9 |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Precision Optics |
||||||||||||||
|
Three Months Ended |
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||||
Net sales |
$ |
28.6 |
|
|
|
|
$ |
35.6 |
|
|
|
|||
Pass-through metal cost |
$ |
0.1 |
|
|
|
|
$ |
— |
|
|
|
|||
Value-added sales |
$ |
28.5 |
|
|
|
|
$ |
35.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
2.2 |
|
|
7.7 |
% |
|
$ |
7.5 |
|
|
21.1 |
% |
|
Restructuring and cost reduction |
|
0.2 |
|
|
0.6 |
% |
|
|
0.3 |
|
|
0.8 |
% |
|
Adjusted EBITDA |
$ |
2.4 |
|
|
8.3 |
% |
|
$ |
7.8 |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Other |
||||||||||||||
|
Three Months
|
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
|
|
April 2, 2021 |
|
|
|||||||
EBITDA |
$ |
(5.2 |
) |
|
|
|
$ |
(5.6 |
) |
|
|
|||
Restructuring and cost reduction |
|
0.1 |
|
|
|
|
|
— |
|
|
|
|||
Merger and acquisition costs |
|
0.9 |
|
|
|
|
|
0.1 |
|
|
|
|||
Adjusted EBITDA |
$ |
(4.2 |
) |
|
|
|
$ |
(5.5 |
) |
|
|
|||
МЭЙФИЛД-ХАЙТС, Огайо -- (BUSINESS WIRE)--Корпорация Materion (NYSE: MTRN) сегодня сообщила о финансовых результатах за первый квартал, представила обновленные прогнозы по прибыли на 2022 год и поделилась обновленной информацией о ключевых стратегических инициативах.
Основные моменты первого квартала 2022 года
“Я чрезвычайно горжусь нашей талантливой командой за то, что она продолжила набирать обороты, успешно стартовав в 2022 году, обеспечив еще один рекордный квартал, удовлетворив высокий спрос конечного рынка и осознав преимущества инициатив по органическому росту и стратегических приобретений”, - сказал Джугал Виджайваргия, президент и главный исполнительный директор Materion. “Благодаря нашему пристальному вниманию к операционному совершенству и ценообразованию мы смогли обеспечить рекордные продажи и прибыль, несмотря на инфляционную среду и другие проблемы, сохраняющиеся в последние месяцы”.
“Мы ускоряем наше превращение в ведущего поставщика передовых решений в области материалов, и первый полный квартал продаж от приобретения HCS-Electronic Materials обеспечивает исключительный рост на быстрорастущем рынке полупроводников”, - продолжил Виджайваргия. “Наши широкие инициативы в области органической продукции продолжают активно развиваться, что также способствует значительному росту в этом квартале и создает устойчивый спрос на будущее. Наш финансируемый заказчиком завод по производству прецизионных плакированных полос почти завершен и находится на пути к значительному вкладу в наши результаты во втором полугодии. Благодаря существенному прогрессу на данный момент и исключительной поддержке, оказанной нашей командой, заказчик принял решение значительно расширить наши производственные мощности и дополнительно инвестировать около 40 миллионов долларов в наше новое предприятие. Эта награда подчеркивает доверие наших клиентов к нам в поддержке их дальнейшего роста и подтверждает нашу роль важнейшего партнера в разработке инновационных решений для их наиболее важных технических задач”.
результаты первого квартала 2022 года
Чистый объем продаж за первый квартал 2022 года составил 449,0 млн долларов по сравнению с 354,4 млн долларов в первом квартале предыдущего года. Продажи с добавленной стоимостью в размере 266,8 млн долларов стали квартальным рекордом, увеличившись на 34% по сравнению с предыдущим годом. В дополнение к выгоде от приобретения HCS-Electronic Materials, продажи с добавленной стоимостью выросли на 13% органически, чему способствовали высокие показатели на нескольких основных конечных рынках, включая полупроводниковый, энергетический, аэрокосмический и промышленный.
Операционная прибыль за первый квартал составила $19,6 млн, а чистая прибыль - $14,0 млн, или $0,68 на разводненную акцию, по сравнению с операционной прибылью в размере $19,7 млн и чистой прибылью в размере $16,8 млн, или $0,81 на разводненную акцию в предыдущем году. Без учета затрат, связанных с приобретением и реструктуризацией, как подробно описано в прилагаемых таблицах, скорректированный показатель EBITDA в первом квартале составил 44,6 млн долларов США, что является еще одним квартальным рекордом и увеличением на 49% по сравнению с предыдущим годом.
Скорректированная чистая прибыль составила $24,9 млн без учета амортизации при приобретении, или $1,20 на разводненную акцию, увеличившись на 38% по сравнению с $0,87 на акцию в предыдущем году.
Учитывая сохраняющийся высокий спрос на конечном рынке, органический рост в результате инициатив наших клиентов и влияние приобретения HCS-Electronic Materials на весь год, мы повышаем прогноз скорректированной прибыли на акцию на 2022 год до диапазона от 5,50 до 5,90 долларов США.
скорректированный прогноз по доходам
Компания не может определить сумму или значимость будущих корректировок, связанных с потенциальными страховыми и судебными исками, унаследованными экологическими затратами, затратами на приобретение и интеграцию, определенными статьями налога на прибыль или другими нештатными расходами, которые Компания корректирует при представлении руководства по скорректированной прибыли. Эти статьи зависят от будущих событий, которые в настоящее время невозможно разумно оценить. Соответственно, Компания не в состоянии без необоснованных усилий согласовать прогнозируемый диапазон скорректированной прибыли за весь год с сопоставимым диапазоном GAAP. Однако статьи, исключенные из руководства по скорректированной прибыли Компании, включают исторические корректировки, указанные в Приложениях 4 и 5 к настоящему пресс-релизу.
конференц-связь
Корпорация Materion проведет телефонную конференцию инвесторов с аналитиками в 9:00 утра по восточному времени 28 апреля 2022 года. Конференц-связь будет доступна через веб-трансляцию через веб-сайт Компании по адресу www.Materion.com или через www.InvestorCalendar.com . По телефону, пожалуйста, наберите (888) 506-0062. Звонки за пределы США можно совершать по номеру (973) 528-0011; пожалуйста, при наборе номера укажите код доступа участника 741039. Повторный вызов будет доступен до 12 мая 2022 года по номеру (877) 481-4010 или (919) 882-2331, если международный; пожалуйста, укажите идентификационный номер повтора 44227. Звонок также будет заархивирован на веб-сайте Компании.
прогнозные заявления
Части повествования, изложенные в этом документе, которые не являются изложением исторических или текущих фактов, являются прогнозными заявлениями. Наши фактические будущие результаты могут существенно отличаться от тех, которые предусмотрены в прогнозных заявлениях, в результате целого ряда факторов. Эти факторы включают, помимо тех, которые упомянуты в этом документе: наши возможности для достижения стратегических и другие задачи, связанные с приобретением ЖКХ-электронные материалы, включая любую ожидается взаимодействия; нашу способность успешно интегрировать ЖКХ-электронные материалы бизнес-и других подобных приобретений и достижения планируемых результатов, приобретения, окончательное воздействие COVID-19 пандемией на наш бизнес, результаты деятельности, финансовое состояние и ликвидность; мировой экономике, в том числе влияние тарифов и торговых соглашений; состояние рынков, которые мы обслуживаем, определяемой территориально или по сегментам; изменения в продукции и финансового состояния клиентов; наши успехи в разработке и внедрении новых продуктов и новых продуктов разгона ставок; наш успех в прохождении затраты на сырье клиентов или иначе смягчить колебания цен на те материалы, в том числе и от колебаний цен по инвентаризации ценностей; наш успех реализации наших стратегических планов и своевременного и успешного завершения и запуска любых проектов капитального строительства; другие финансовые и экономические факторы, включая стоимость и наличие сырья (как цветных и драгоценных металлов), инвентаризации, оценки, металл комиссионные сборы, налоговых ставок, валютных курсов, процентных ставок, пенсионные расходы и обязательные денежные взносы и прочим льготам сотрудникам расходы, затраты на электроэнергию, соответствие нормативам затрат, стоимости и доступности страхования, доступность кредитов, а также влияние Materion складе цена по стоимости поощрительных и компенсационных планов; неопределенность, связанная с последствиями войны, террористической деятельности, и стихийные бедствия, изменения в государственных нормативных требований и принятие нового законодательства, что влияет на наши обязательства и операции; завершение судебного разбирательства вопросам, в соответствии с нашими ожиданиями, что не будет никаких негативных материальных последствий; нарушений по операциям с, а также другие последствия, катастрофические и других чрезвычайных событий; и факторов риска, указанных в части 1, пункт 1А нашей 2021 годовой отчет по форме 10-к.
Штаб-квартира корпорации Materion находится в Мэйфилд-Хайтс, штат Огайо. Компания, через свои дочерние компании, находящиеся в полной собственности, поставляет на мировые рынки высокотехнологичные передовые материалы для обеспечения безопасности. Продукция включает в себя драгоценные и недрагоценные специальные металлы, неорганические химикаты и порошки, специальные покрытия, специальные инженерные бериллиевые сплавы, бериллиевые и бериллиевые композиты, а также инженерные плакированные и покрытые металлические системы.
Attachment 1 |
||||||||
|
||||||||
Materion Corporation and Subsidiaries |
||||||||
Consolidated Statements of Income |
||||||||
(Unaudited) |
||||||||
|
First Quarter Ended |
|||||||
(Thousands, except per share amounts) |
April 1, 2022 |
|
April 2, 2021 |
|||||
Net sales |
$ |
449,045 |
|
|
$ |
354,386 |
|
|
Cost of sales |
|
373,754 |
|
|
|
287,590 |
|
|
Gross margin |
|
75,291 |
|
|
|
66,796 |
|
|
Selling, general, and administrative expense |
|
41,662 |
|
|
|
36,776 |
|
|
Research and development expense |
|
7,074 |
|
|
|
6,206 |
|
|
Restructuring expense (income) |
|
1,076 |
|
|
|
(378 |
) |
|
Other — net |
|
5,873 |
|
|
|
4,474 |
|
|
Operating profit |
|
19,606 |
|
|
|
19,718 |
|
|
Other non-operating income—net |
|
(1,169 |
) |
|
|
(1,276 |
) |
|
Interest expense — net |
|
3,735 |
|
|
|
761 |
|
|
Income before income taxes |
|
17,040 |
|
|
|
20,233 |
|
|
Income tax expense |
|
3,021 |
|
|
|
3,466 |
|
|
Net income |
$ |
14,019 |
|
|
$ |
16,767 |
|
|
Basic earnings per share: |
|
|
|
|||||
Net income per share of common stock |
$ |
0.69 |
|
|
$ |
0.82 |
|
|
Diluted earnings per share: |
|
|
|
|||||
Net income per share of common stock |
$ |
0.68 |
|
|
$ |
0.81 |
|
|
Weighted-average number of shares of common stock outstanding: |
|
|
|
|||||
Basic |
|
20,464 |
|
|
|
20,374 |
|
|
Diluted |
|
20,724 |
|
|
|
20,628 |
|
|
Attachment 2 |
||||||||
Materion Corporation and Subsidiaries |
||||||||
Consolidated Balance Sheets |
||||||||
|
|
(Unaudited) |
|
|
||||
(Thousands) |
|
April 1, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
20,237 |
|
|
$ |
14,462 |
|
Accounts receivable, net |
|
|
237,712 |
|
|
|
223,553 |
|
Inventories, net |
|
|
386,992 |
|
|
|
361,115 |
|
Prepaid and other current assets |
|
|
27,971 |
|
|
|
28,122 |
|
Total current assets |
|
|
672,912 |
|
|
|
627,252 |
|
Deferred income taxes |
|
|
5,323 |
|
|
|
5,431 |
|
Property, plant, and equipment |
|
|
1,149,458 |
|
|
|
1,132,223 |
|
Less allowances for depreciation, depletion, and amortization |
|
|
(732,529 |
) |
|
|
(723,248 |
) |
Property, plant, and equipment, net |
|
|
416,929 |
|
|
|
408,975 |
|
Operating lease, right-of-use assets |
|
|
70,862 |
|
|
|
63,096 |
|
Intangible assets, net |
|
|
152,922 |
|
|
|
156,736 |
|
Other assets |
|
|
30,063 |
|
|
|
27,369 |
|
Goodwill |
|
|
317,897 |
|
|
|
318,620 |
|
Total Assets |
|
$ |
1,666,908 |
|
|
$ |
1,607,479 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Short-term debt |
|
$ |
15,351 |
|
|
$ |
15,359 |
|
Accounts payable |
|
|
103,438 |
|
|
|
86,243 |
|
Salaries and wages |
|
|
21,848 |
|
|
|
37,544 |
|
Other liabilities and accrued items |
|
|
47,793 |
|
|
|
53,388 |
|
Income taxes |
|
|
5,624 |
|
|
|
4,205 |
|
Unearned revenue |
|
|
7,407 |
|
|
|
7,770 |
|
Total current liabilities |
|
|
201,461 |
|
|
|
204,509 |
|
Other long-term liabilities |
|
|
16,457 |
|
|
|
14,954 |
|
Operating lease liabilities |
|
|
64,569 |
|
|
|
57,099 |
|
Finance lease liabilities |
|
|
15,192 |
|
|
|
16,327 |
|
Retirement and post-employment benefits |
|
|
32,704 |
|
|
|
33,394 |
|
Unearned income |
|
|
96,971 |
|
|
|
97,962 |
|
Long-term income taxes |
|
|
1,205 |
|
|
|
1,190 |
|
Deferred income taxes |
|
|
27,564 |
|
|
|
27,216 |
|
Long-term debt |
|
|
479,821 |
|
|
|
434,388 |
|
Shareholders’ equity |
|
|
730,964 |
|
|
|
720,440 |
|
Total Liabilities and Shareholders’ Equity |
|
$ |
1,666,908 |
|
|
$ |
1,607,479 |
|
Attachment 3 |
||||||||
Materion Corporation and Subsidiaries |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
(Thousands) |
|
April 1, 2022 |
|
April 2, 2021 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
14,019 |
|
|
$ |
16,767 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation, depletion, and amortization |
|
|
13,179 |
|
|
|
8,599 |
|
Amortization of deferred financing costs in interest expense |
|
|
511 |
|
|
|
182 |
|
Stock-based compensation expense (non-cash) |
|
|
1,699 |
|
|
|
1,473 |
|
Deferred income tax (benefit) expense |
|
|
401 |
|
|
|
382 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(15,045 |
) |
|
|
(15,697 |
) |
Inventory |
|
|
(28,129 |
) |
|
|
(23,219 |
) |
Prepaid and other current assets |
|
|
(5 |
) |
|
|
(2,107 |
) |
Accounts payable and accrued expenses |
|
|
(4,177 |
) |
|
|
19,224 |
|
Unearned revenue |
|
|
(343 |
) |
|
|
932 |
|
Interest and taxes payable |
|
|
1,874 |
|
|
|
3,164 |
|
Unearned income due to customer prepayments |
|
|
— |
|
|
|
5,890 |
|
Other-net |
|
|
1,712 |
|
|
|
(140 |
) |
Net cash (used in) provided by operating activities |
|
|
(14,304 |
) |
|
|
15,450 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Payments for purchase of property, plant, and equipment |
|
|
(18,977 |
) |
|
|
(31,250 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
11 |
|
|
|
575 |
|
Net cash used in investing activities |
|
|
(18,966 |
) |
|
|
(30,675 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from borrowings under revolving credit agreement, net |
|
|
49,067 |
|
|
|
14,955 |
|
Repayment of long-term debt |
|
|
(3,839 |
) |
|
|
(377 |
) |
Principal payments under finance lease obligations |
|
|
(686 |
) |
|
|
(675 |
) |
Cash dividends paid |
|
|
(2,520 |
) |
|
|
(2,338 |
) |
Payments of withholding taxes for stock-based compensation awards |
|
|
(2,717 |
) |
|
|
(2,838 |
) |
Net cash provided by financing activities |
|
|
39,305 |
|
|
|
8,727 |
|
Effects of exchange rate changes |
|
|
(260 |
) |
|
|
(446 |
) |
Net change in cash and cash equivalents |
|
|
5,775 |
|
|
|
(6,944 |
) |
Cash and cash equivalents at beginning of period |
|
|
14,462 |
|
|
|
25,878 |
|
Cash and cash equivalents at end of period |
|
$ |
20,237 |
|
|
$ |
18,934 |
|
Attachment 4 |
||||||||
Materion Corporation and Subsidiaries |
||||||||
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA |
||||||||
(Unaudited) |
||||||||
|
First Quarter Ended |
|||||||
(Millions) |
April 1, 2022 |
|
April 2, 2021 |
|||||
Net Sales |
|
|
|
|||||
Performance Materials(1) |
$ |
149.6 |
|
|
$ |
114.1 |
|
|
Electronic Materials(1) |
|
270.8 |
|
|
|
204.7 |
|
|
Precision Optics |
|
28.6 |
|
|
|
35.6 |
|
|
Other |
|
— |
|
|
|
— |
|
|
Total |
$ |
449.0 |
|
|
$ |
354.4 |
|
|
|
|
|
|
|||||
Less: Pass-through Metal Cost |
|
|
|
|||||
Performance Materials(1) |
$ |
20.5 |
|
|
$ |
13.3 |
|
|
Electronic Materials(1) |
|
160.9 |
|
|
|
141.7 |
|
|
Precision Optics |
|
0.1 |
|
|
|
— |
|
|
Other |
|
0.7 |
|
|
|
0.8 |
|
|
Total |
$ |
182.2 |
|
|
$ |
155.8 |
|
|
|
|
|
|
|||||
Value-added Sales (non-GAAP) |
|
|
|
|||||
Performance Materials(1) |
$ |
129.1 |
|
|
$ |
100.8 |
|
|
Electronic Materials(1) |
|
109.9 |
|
|
|
63.0 |
|
|
Precision Optics |
|
28.5 |
|
|
|
35.6 |
|
|
Other |
|
(0.7 |
) |
|
|
(0.8 |
) |
|
Total |
$ |
266.8 |
|
|
$ |
198.6 |
|
|
|
|
|
|
|||||
Gross Margin |
|
|
|
|||||
Performance Materials(1) |
$ |
37.3 |
|
|
$ |
29.6 |
|
|
Electronic Materials(1) |
|
29.5 |
|
|
|
23.8 |
|
|
Precision Optics |
|
8.5 |
|
|
|
13.9 |
|
|
Other |
|
— |
|
|
|
(0.5 |
) |
|
Total |
$ |
75.3 |
|
|
$ |
66.8 |
|
|
(1)The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. See further discussion in the Form 10-Q for the period ended April 1, 2022. |
|
First Quarter Ended |
|||||||
(Millions) |
April 1, 2022 |
|
April 2, 2021 |
|||||
Operating Profit |
|
|
|
|||||
Performance Materials |
$ |
19.1 |
|
|
$ |
13.5 |
|
|
Electronic Materials |
|
8.0 |
|
|
|
8.9 |
|
|
Precision Optics |
|
(0.7 |
) |
|
|
4.6 |
|
|
Other |
|
(6.8 |
) |
|
|
(7.3 |
) |
|
Total |
$ |
19.6 |
|
|
$ |
19.7 |
|
|
|
|
|
|
|||||
Non-Operating (Income) Expense |
|
|
|
|||||
Performance Materials |
$ |
0.2 |
|
|
$ |
0.1 |
|
|
Electronic Materials |
|
— |
|
|
|
— |
|
|
Precision Optics |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
Other |
|
(1.1 |
) |
|
|
(1.2 |
) |
|
Total |
$ |
(1.1 |
) |
|
$ |
(1.3 |
) |
|
|
|
|
|
|||||
Depreciation, Depletion, and Amortization |
|
|
|
|||||
Performance Materials |
$ |
5.9 |
|
|
$ |
3.4 |
|
|
Electronic Materials |
|
4.1 |
|
|
|
2.0 |
|
|
Precision Optics |
|
2.7 |
|
|
|
2.7 |
|
|
Other |
|
0.5 |
|
|
|
0.5 |
|
|
Total |
$ |
13.2 |
|
|
$ |
8.6 |
|
|
|
|
|
|
|||||
Segment EBITDA |
|
|
|
|||||
Performance Materials |
$ |
24.8 |
|
|
$ |
16.8 |
|
|
Electronic Materials |
|
12.1 |
|
|
|
10.9 |
|
|
Precision Optics |
|
2.2 |
|
|
|
7.5 |
|
|
Other |
|
(5.2 |
) |
|
|
(5.6 |
) |
|
Total |
$ |
33.9 |
|
|
$ |
29.6 |
|
|
|
|
|
|
|||||
Special Items |
|
|
|
|||||
Performance Materials |
$ |
2.7 |
|
|
$ |
— |
|
|
Electronic Materials |
|
6.8 |
|
|
|
— |
|
|
Precision Optics |
|
0.2 |
|
|
|
0.3 |
|
|
Other |
|
1.0 |
|
|
|
0.1 |
|
|
Total |
$ |
10.7 |
|
|
$ |
0.4 |
|
|
|
|
|
|
|||||
Adjusted EBITDA Excluding Special Items |
|
|
|
|||||
Performance Materials |
$ |
27.5 |
|
|
$ |
16.8 |
|
|
Electronic Materials |
|
18.9 |
|
|
|
10.9 |
|
|
Precision Optics |
|
2.4 |
|
|
|
7.8 |
|
|
Other |
|
(4.2 |
) |
|
|
(5.5 |
) |
|
Total |
$ |
44.6 |
|
|
$ |
30.0 |
|
|
The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales. |
The Company’s pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company’s results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company’s intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals. |
Attachment 5 |
||||||||||||
Materion Corporation and Subsidiaries |
||||||||||||
Reconciliation of Net sales to Value-added sales, Net Income to EBITDA and Adjusted EBITDA |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
Three Months
|
|
|
|
Three Months
|
|
|
|||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||
Net sales |
$ |
449.0 |
|
|
|
$ |
354.4 |
|
|
|||
Pass-through metal cost |
|
182.2 |
|
|
|
|
155.8 |
|
|
|||
Value-added sales |
$ |
266.8 |
|
|
|
$ |
198.6 |
|
|
|||
|
|
|
|
|
|
|
|
|||||
Net income |
$ |
14.0 |
|
5.2 |
% |
|
$ |
16.8 |
|
8.5 |
% |
|
Income tax expense |
|
3.0 |
|
1.1 |
% |
|
|
3.5 |
|
1.8 |
% |
|
Interest expense - net |
|
3.7 |
|
1.4 |
% |
|
|
0.7 |
|
0.4 |
% |
|
Depreciation, depletion and amortization |
|
13.2 |
|
4.9 |
% |
|
|
8.6 |
|
4.3 |
% |
|
Consolidated EBITDA |
$ |
33.9 |
|
12.7 |
% |
|
$ |
29.6 |
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|||||
Special items |
|
|
|
|
|
|
|
|||||
Restructuring and cost reduction |
$ |
1.1 |
|
0.4 |
% |
|
$ |
0.3 |
|
0.2 |
% |
|
Merger and acquisition costs |
|
9.6 |
|
3.6 |
% |
|
|
0.1 |
|
0.1 |
% |
|
Total special items |
|
10.7 |
|
4.0 |
% |
|
|
0.4 |
|
0.2 |
% |
|
Adjusted EBITDA |
$ |
44.6 |
|
16.7 |
% |
|
$ |
30.0 |
|
15.1 |
% |
|
In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, earnings before earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 6, we have adjusted the results for certain special items such as restructuring and cost reductions and merger and acquisition costs. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations. |
Attachment 6 |
||||||||||||||
Materion Corporation and Subsidiaries |
||||||||||||||
Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings per Share to Adjusted Diluted Earnings per Share |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Three Months
|
|
Diluted |
|
Three Months Ended |
|
Diluted |
|||||||
(Millions) |
April 1, 2022 |
|
EPS |
|
April 2, 2021 |
|
EPS |
|||||||
Net income and EPS |
$ |
14.0 |
|
|
$ |
0.68 |
|
$ |
16.8 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|||||||
Special items |
|
|
|
|
|
|
|
|||||||
Restructuring and cost reduction |
|
1.1 |
|
|
|
|
|
0.3 |
|
|
|
|||
Merger and acquisition costs |
|
9.6 |
|
|
|
|
|
0.1 |
|
|
|
|||
Provision for income taxes(1) |
|
(2.3 |
) |
|
|
|
|
(0.3 |
) |
|
|
|||
Total special items |
|
8.4 |
|
|
|
0.40 |
|
|
0.1 |
|
|
|
0.01 |
|
Adjusted net income and adjusted EPS |
$ |
22.4 |
|
|
$ |
1.08 |
|
$ |
16.9 |
|
|
$ |
0.82 |
|
Acquisition amortization (net of tax) |
|
2.5 |
|
|
|
0.12 |
|
|
1.1 |
|
|
|
0.05 |
|
Adjusted net income and adjusted EPS excl. amortization |
$ |
24.9 |
|
|
$ |
1.20 |
|
$ |
18.0 |
|
|
$ |
0.87 |
|
(1) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. |
Attachment 7 |
||||||||||||||
Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA |
||||||||||||||
(Unaudited) |
||||||||||||||
Performance Materials |
||||||||||||||
|
Three Months
|
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||||
Net sales |
$ |
149.6 |
|
|
|
|
$ |
114.1 |
|
|
|
|||
Pass-through metal cost |
|
20.5 |
|
|
|
|
|
13.3 |
|
|
|
|||
Value-added sales |
$ |
129.1 |
|
|
|
|
$ |
100.8 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
24.8 |
|
|
19.2 |
% |
|
$ |
16.8 |
|
|
16.7 |
% |
|
Merger and acquisition costs |
|
2.7 |
|
|
2.1 |
% |
|
|
— |
|
|
— |
% |
|
Adjusted EBITDA |
$ |
27.5 |
|
|
21.3 |
% |
|
$ |
16.8 |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Electronic Materials |
||||||||||||||
|
Three Months Ended |
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||||
Net sales |
$ |
270.8 |
|
|
|
|
$ |
204.7 |
|
|
|
|||
Pass-through metal cost |
|
160.9 |
|
|
|
|
|
141.7 |
|
|
|
|||
Value-added sales |
$ |
109.9 |
|
|
|
|
$ |
63.0 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
12.1 |
|
|
11.0 |
% |
|
$ |
10.9 |
|
|
17.3 |
% |
|
Restructuring and cost reduction |
|
0.8 |
|
|
0.7 |
% |
|
|
— |
|
|
— |
% |
|
Merger and acquisition costs |
|
6.0 |
|
|
5.5 |
% |
|
|
— |
|
|
— |
% |
|
Adjusted EBITDA |
$ |
18.9 |
|
|
17.2 |
% |
|
$ |
10.9 |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Precision Optics |
||||||||||||||
|
Three Months Ended |
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
% of VA |
|
April 2, 2021 |
|
% of VA |
|||||||
Net sales |
$ |
28.6 |
|
|
|
|
$ |
35.6 |
|
|
|
|||
Pass-through metal cost |
$ |
0.1 |
|
|
|
|
$ |
— |
|
|
|
|||
Value-added sales |
$ |
28.5 |
|
|
|
|
$ |
35.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
2.2 |
|
|
7.7 |
% |
|
$ |
7.5 |
|
|
21.1 |
% |
|
Restructuring and cost reduction |
|
0.2 |
|
|
0.6 |
% |
|
|
0.3 |
|
|
0.8 |
% |
|
Adjusted EBITDA |
$ |
2.4 |
|
|
8.3 |
% |
|
$ |
7.8 |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Other |
||||||||||||||
|
Three Months
|
|
|
|
Three Months
|
|
|
|||||||
(Millions) |
April 1, 2022 |
|
|
|
April 2, 2021 |
|
|
|||||||
EBITDA |
$ |
(5.2 |
) |
|
|
|
$ |
(5.6 |
) |
|
|
|||
Restructuring and cost reduction |
|
0.1 |
|
|
|
|
|
— |
|
|
|
|||
Merger and acquisition costs |
|
0.9 |
|
|
|
|
|
0.1 |
|
|
|
|||
Adjusted EBITDA |
$ |
(4.2 |
) |
|
|
|
$ |
(5.5 |
) |
|
|
|||
