Materion Corporation (NYSE: MTRN) today reported third quarter
financial results and affirmed the midpoint of the 2023 earnings
guidance.
Third Quarter 2023 Highlights
- Net sales were $403.1 million; value-added sales1 were $270.5
million
- Strong third quarter operating profit of $36.5 million versus
$29.1 million in the prior year; record third quarter adjusted
EBITDA2 of $55.4 million versus $48.8 million in the prior year, an
increase of 14%
- Record third quarter net income of $1.27 per share, diluted,
and record adjusted earnings of $1.51 per share
- Affirmed full year earnings outlook midpoint of $5.80 per
share, a 10% increase year over year
Growth Highlights
- Announced multiple new opportunities in space & defense,
accelerating the organic growth pipeline
- Outperformed adjusted EBITDA margin target of 20% for second
consecutive quarter
- Delivered twelfth consecutive quarter of adjusted EBITDA and
adjusted EPS growth
“As a result of the outstanding efforts and dedication of our
global team, we delivered another quarter of record earnings,
raising the bar for operational excellence and delivering critical
products and solutions for our customers,” Jugal Vijayvargiya,
Materion President and CEO said.
“Our unique capabilities and exceptional technical expertise
continue to unlock new organic growth opportunities aligned with
global megatrends,” Vijayvargiya said. “These commercial wins and
new partnerships have helped offset the impact of softness in some
of our end markets, while seeding the pipeline for long-term
sustainable growth.”
THIRD QUARTER 2023
RESULTS
Net sales for the quarter were $403.1 million, compared to
$428.2 million in the prior year period. Value-added sales were
$270.5 million for the quarter, down 5% from prior year due to
continued semiconductor market softness, partially offset by
strength in aerospace & defense, telecom & data center and
precision clad strip.
Operating profit for the quarter was $36.5 million and net
income was $26.6 million, or $1.27 per diluted share, compared to
operating profit of $29.1 million and net income of $20.0 million,
or $0.96 per diluted share in the prior year period.
Excluding special items3 primarily related to the targeted cost
improvement initiatives, adjusted EBITDA was $55.4 million in the
quarter, compared to $48.8 million in the prior year period. The
increase was driven mainly by strong price/mix and operational
performance.
Adjusted net income was $31.6 million excluding acquisition
amortization, or $1.51 per diluted share, an increase of 15%
compared to $1.31 per share in the prior year period.
OUTLOOK
With accelerating contributions from our megatrend-aligned
organic pipeline, coupled with strong operational performance, we
remain confident in our ability to execute and deliver another year
of record results. Despite the slower than expected market
recovery, we are narrowing the range and affirming the midpoint of
our full-year adjusted earnings per share guidance in the range of
$5.70 to $5.90, an increase of 10% at the midpoint versus the prior
year.
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 through 9
to this press release.
CONFERENCE CALL
Materion Corporation will host an investor conference call with
analysts at 9:00 a.m. Eastern Time, November 1, 2023. The
conference call will be available via webcast through the Company’s
website at www.materion.com. By phone, please dial (888) 506-0062.
Calls outside the U.S. can dial (973) 528-0011; please reference
participant access code of 841062. A replay of the call will be
available until November 15, 2023 by dialing (877) 481-4010 or
(919) 882-2331 if international; please reference replay ID number
46840. The call will also be archived on the Company’s website.
FOOTNOTES
1 Value-added sales deducts the impact of pass-through metals
from net sales 2 EBITDA represents earnings before interest, taxes,
depreciation, depletion and amortization 3 Details of the special
items can be found in Attachments 4 through 9
ABOUT MATERION
Materion Corporation is a global leader in advanced materials
solutions for high-performance industries including semiconductor,
industrial, aerospace & defense, energy and automotive. With
nearly 100 years of expertise in specialty engineered alloy
systems, inorganic chemicals and powders, precious and non-precious
metals, beryllium and beryllium composites, and precision filters
and optical coatings, Materion partners with customers to enable
breakthrough solutions that move the world forward. Headquartered
in Mayfield Heights, Ohio, the company employs more than 3,500
talented people worldwide, serving customers in more than 60
countries.
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: the global economy, including
inflationary pressures, potential future recessionary conditions
and the impact of tariffs and trade agreements; the impact of any
U.S. Federal Government shutdowns or sequestrations; 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 in identifying
acquisition candidates and in acquiring and integrating such
businesses; the impact of the results of acquisitions on our
ability to fully achieve the strategic and financial objectives
related to these acquisitions; our success in implementing our
strategic plans and the timely and successful start-up and
completion 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 Company’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 in operations from, and
other effects of, catastrophic and other extraordinary events
including outbreaks from infectious diseases and the conflict
between Russia and Ukraine and other hostilities; realization of
expected financial benefits expected from the Inflation Reduction
Act of 2022; and the risk factors set forth in Part 1, Item 1A of
the Company's 2022 Annual Report on Form 10-K.
Attachment 1
Materion Corporation and
Subsidiaries
Consolidated Statements of
Income
(Unaudited)
Third Quarter Ended
Nine Months Ended
(In thousands except per share
amounts)
September 29, 2023
September 30, 2022
September 29, 2023
September 30, 2022
Net sales
$
403,067
$
428,191
$
1,244,144
$
1,322,531
Cost of sales
314,131
345,448
974,817
1,077,070
Gross margin
88,936
82,743
269,327
245,461
Selling, general, and administrative
expense
38,806
38,958
118,053
122,666
Research and development expense
6,322
7,430
21,098
22,096
Restructuring expense (income)
1,077
484
3,194
1,560
Other — net
6,211
6,774
18,178
18,575
Operating profit
36,520
29,097
108,804
80,564
Other non-operating income—net
(685
)
(1,175
)
(2,141
)
(3,512
)
Interest expense — net
7,678
5,888
22,820
14,325
Income before income taxes
29,527
24,384
88,125
69,751
Income tax expense
2,963
4,432
11,891
12,525
Net income
$
26,564
$
19,952
$
76,234
$
57,226
Basic earnings per share:
Net income per share of common stock
$
1.29
$
0.97
$
3.70
$
2.79
Diluted earnings per share:
Net income per share of common stock
$
1.27
$
0.96
$
3.65
$
2.76
Weighted-average number of shares of
common stock outstanding:
Basic
20,640
20,526
20,611
20,502
Diluted
20,905
20,780
20,891
20,756
Attachment 2
Materion Corporation and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(Thousands)
September 29, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
16,401
$
13,101
Accounts receivable, net
186,177
215,211
Inventories, net
452,042
423,080
Prepaid and other current assets
54,972
39,056
Total current assets
709,592
690,448
Deferred income taxes
3,214
3,265
Property, plant, and equipment
1,252,455
1,209,205
Less allowances for depreciation,
depletion, and amortization
(755,626
)
(760,440
)
Property, plant, and equipment—net
496,829
448,765
Operating lease, right-of-use assets
57,747
64,249
Intangible assets, net
134,594
143,219
Other assets
27,186
22,535
Goodwill
319,435
319,498
Total Assets
$
1,748,597
$
1,691,979
Liabilities and Shareholders’
Equity
Current liabilities
Short-term debt
$
38,634
$
21,105
Accounts payable
93,096
107,899
Salaries and wages
27,971
35,543
Other liabilities and accrued items
40,425
54,993
Income taxes
2,001
3,928
Unearned revenue
15,078
15,496
Total current liabilities
217,205
238,964
Other long-term liabilities
11,558
12,181
Operating lease liabilities
54,111
59,055
Finance lease liabilities
13,279
13,876
Retirement and post-employment
benefits
20,089
20,422
Unearned income
109,076
107,736
Long-term income taxes
1,155
665
Deferred income taxes
27,795
28,214
Long-term debt
422,361
410,876
Shareholders’ equity
871,968
799,990
Total Liabilities and Shareholders’
Equity
$
1,748,597
$
1,691,979
Attachment 3
Materion Corporation and
Subsidiaries
Consolidated Statements of
Cash Flows
(Unaudited)
Nine Months Ended
(Thousands)
September 29, 2023
September 30, 2022
Cash flows from operating activities:
Net income
$
76,234
$
57,226
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and
amortization
46,524
39,223
Amortization of deferred financing costs
in interest expense
1,284
1,310
Stock-based compensation expense
(non-cash)
7,578
5,997
Deferred income tax expense (benefit)
(149
)
1,825
Changes in assets and liabilities:
Accounts receivable
27,832
(20,964
)
Inventory
(30,868
)
(64,832
)
Prepaid and other current assets
(16,175
)
(3,019
)
Accounts payable and accrued expenses
(25,533
)
(1,785
)
Unearned revenue
(12,398
)
(2,191
)
Interest and taxes payable
(1,730
)
(1,741
)
Unearned income due to customer
prepayments
16,676
17,501
Other-net
(4,770
)
5,654
Net cash provided by operating
activities
84,505
34,204
Cash flows from investing activities:
Payments for purchase of property, plant,
and equipment
(85,251
)
(54,236
)
Payments for mine development
(9,326
)
—
Proceeds from sale of property, plant, and
equipment
417
827
Payments for acquisition, net of cash
acquired
—
(2,971
)
Net cash used in investing
activities
(94,160
)
(56,380
)
Cash flows from financing activities:
Proceeds from borrowings under credit
facilities, net
39,649
55,735
Repayment of long-term debt
(11,579
)
(11,761
)
Principal payments under finance lease
obligations
(1,297
)
(1,985
)
Cash dividends paid
(7,937
)
(7,584
)
Payments of withholding taxes for
stock-based compensation awards
(5,101
)
(3,056
)
Net cash provided by financing
activities
13,735
31,349
Effects of exchange rate changes
(780
)
(2,953
)
Net change in cash and cash
equivalents
3,300
6,220
Cash and cash equivalents at beginning
of period
13,101
14,462
Cash and cash equivalents at end of
period
$
16,401
$
20,682
Attachment 4
Materion Corporation and
Subsidiaries
Reconciliation of Non-GAAP
Measure - Value-added Sales, Operating Profit, and EBITDA
(Unaudited)
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
September 30, 2022
September 29, 2023
September 30, 2022
Net Sales
Performance Materials
$
184.6
$
169.4
$
554.4
$
473.9
Electronic Materials
192.3
230.8
611.8
762.6
Precision Optics
26.2
28.0
77.9
86.0
Other
—
—
—
—
Total
$
403.1
$
428.2
$
1,244.1
$
1,322.5
Less: Pass-through Metal Cost
Performance Materials
$
15.7
$
20.6
$
51.9
$
62.0
Electronic Materials
116.8
123.9
354.8
447.7
Precision Optics
0.1
—
0.1
0.1
Other
—
0.2
—
1.3
Total
$
132.6
$
144.7
$
406.8
$
511.1
Value-added Sales (non-GAAP)
Performance Materials
$
168.9
$
148.8
$
502.5
$
411.9
Electronic Materials
75.5
106.9
257.0
314.9
Precision Optics
26.1
28.0
77.8
85.9
Other
—
(0.2
)
—
(1.3
)
Total
$
270.5
$
283.5
$
837.3
$
811.4
Gross Margin
Performance Materials(1)
$
57.4
$
41.1
$
166.1
$
117.4
Electronic Materials(1)
23.1
31.9
78.9
100.0
Precision Optics(1)
8.4
9.8
24.3
28.1
Other
—
—
—
—
Total(1)
$
88.9
$
82.8
$
269.3
$
245.5
(1) See reconciliation of gross margin to
adjusted gross margin in Attachment 8
Note: Quarterly information presented
within this document and previously disclosed quarterly information
may not equal the total computed for the year due to rounding
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
September 30, 2022
September 29, 2023
September 30, 2022
Operating Profit/(Loss)
Performance Materials
$
38.9
$
22.9
$
110.9
$
63.8
Electronic Materials
6.0
12.8
24.8
39.0
Precision Optics
0.3
0.8
(1.6
)
0.8
Other
(8.7
)
(7.4
)
(25.3
)
(23.0
)
Total
$
36.5
$
29.1
$
108.8
$
80.6
Non-Operating (Income)/Expense
Performance Materials
$
0.2
$
0.1
$
0.4
$
0.4
Electronic Materials
—
—
—
—
Precision Optics
(0.2
)
(0.2
)
(0.6
)
(0.6
)
Other
(0.7
)
(1.1
)
(2.0
)
(3.3
)
Total
$
(0.7
)
$
(1.2
)
$
(2.2
)
$
(3.5
)
Depreciation, Depletion, and
Amortization
Performance Materials
$
7.7
$
6.1
$
23.6
$
17.5
Electronic Materials
4.1
4.0
12.7
12.3
Precision Optics
2.8
2.6
8.7
7.9
Other
0.5
0.4
1.5
1.5
Total
$
15.1
$
13.1
$
46.5
$
39.2
Segment EBITDA
Performance Materials
$
46.4
$
28.9
$
134.1
$
80.9
Electronic Materials
10.1
16.8
37.5
51.3
Precision Optics
3.3
3.6
7.7
9.3
Other
(7.5
)
(5.9
)
(21.8
)
(18.2
)
Total
$
52.3
$
43.4
$
157.5
$
123.3
Special Items(2)
Performance Materials
$
0.1
$
4.1
$
1.1
$
6.8
Electronic Materials
2.9
0.4
4.5
7.6
Precision Optics
0.1
0.4
1.2
0.7
Other
—
0.5
0.1
2.0
Total
$
3.1
$
5.4
$
6.9
$
17.1
Adjusted EBITDA Excluding Special
Items
Performance Materials
$
46.5
$
33.0
$
135.2
$
87.7
Electronic Materials
13.0
17.2
42.0
58.9
Precision Optics
3.4
4.0
8.9
10.0
Other
(7.5
)
(5.4
)
(21.7
)
(16.2
)
Total
$
55.4
$
48.8
$
164.4
$
140.4
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 market 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.
(2) See additional details of special
items in Attachment 5.
Attachment 5
Materion Corporation and
Subsidiaries
Reconciliation of Net Sales to
Value-added Sales, Net Income to EBITDA and Adjusted EBITDA
(Unaudited)
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
% of VA
September 30, 2022
% of VA
September 29, 2023
% of VA
September 30, 2022
% of VA
Net sales
$
403.1
$
428.2
$
1,244.1
$
1,322.5
Pass-through metal cost
132.6
144.7
406.8
511.1
Value-added sales
$
270.5
$
283.5
$
837.3
$
811.4
Net income
$
26.6
9.8
%
$
20.0
7.1
%
$
76.2
9.1
%
$
57.2
7.0
%
Income tax expense
3.0
1.1
%
4.4
1.6
%
11.9
1.4
%
12.6
1.6
%
Interest expense - net
7.6
2.8
%
5.9
2.1
%
22.9
2.7
%
14.3
1.8
%
Depreciation, depletion and
amortization
15.1
5.6
%
13.1
4.6
%
46.5
5.6
%
39.2
4.8
%
Consolidated EBITDA
$
52.3
19.3
%
$
43.4
15.3
%
$
157.5
18.8
%
$
123.3
15.2
%
Special items
Restructuring and cost reduction
$
3.1
1.1
%
$
0.4
0.1
%
$
6.9
0.8
%
$
1.5
0.2
%
Additional start up resources and
scrap
—
—
%
4.1
1.4
%
—
—
%
4.1
0.5
%
Merger and acquisition costs
—
—
%
0.9
0.3
%
—
—
%
11.5
1.4
%
Total special items
3.1
1.1
%
5.4
1.9
%
6.9
0.8
%
17.1
2.1
%
Adjusted EBITDA
$
55.4
20.5
%
$
48.8
17.2
%
$
164.4
19.6
%
$
140.4
17.3
%
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 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 (which includes
costs associated with temporarily idled facilities as a result of
decreased demand), additional start up resources and scrap 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)
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
Diluted EPS
September 30, 2022
Diluted EPS
September 29, 2023
Diluted EPS
September 30, 2022
Diluted EPS
Net income and EPS
$
26.6
$
1.27
$
20.0
$
0.96
$
76.2
$
3.65
$
57.2
$
2.76
Special items
Restructuring and cost reduction
3.1
0.4
6.9
1.5
Additional start up resources and
scrap
—
4.1
—
4.1
Merger and acquisition costs
—
0.9
—
11.5
Provision for income taxes(1)
(0.6
)
(0.5
)
(2.1
)
(3.1
)
Total special items
2.5
0.12
4.9
0.23
4.8
0.23
14.0
0.67
Adjusted net income and adjusted EPS
$
29.1
$
1.39
$
24.9
$
1.19
$
81.0
$
3.88
$
71.2
$
3.43
Acquisition amortization (net of tax)
2.5
0.12
2.4
0.12
7.4
0.35
7.3
0.35
Adjusted net income and adjusted EPS excl.
amortization
$
31.6
$
1.51
$
27.3
$
1.31
$
88.4
$
4.23
$
78.5
$
3.78
(1) Provision for income taxes includes
the net tax impact on pre-tax adjustments (listed above), the
impact of certain 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
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
% of VA
September 30, 2022
% of VA
September 29, 2023
% of VA
September 30, 2022
% of VA
Net sales
$
184.6
$
169.4
$
554.4
$
473.9
Pass-through metal cost
15.7
20.6
51.9
62.0
Value-added sales
$
168.9
$
148.8
$
502.5
$
411.9
EBITDA
$
46.4
27.5
%
$
28.9
19.4
%
$
134.1
26.7
%
$
80.9
19.6
%
Restructuring and cost reduction
0.1
—
%
—
—
%
1.1
0.2
%
—
—
%
Additional start up resources and
scrap
—
—
%
4.1
2.8
%
—
—
%
4.1
1.0
%
Merger and acquisition costs
—
—
%
—
—
%
—
—
%
2.7
0.7
%
Adjusted EBITDA
$
46.5
27.5
%
$
33.0
22.2
%
$
135.2
26.9
%
$
87.7
21.3
%
Electronic Materials
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
% of VA
September 30, 2022
% of VA
September 29, 2023
% of VA
September 30, 2022
% of VA
Net sales
$
192.3
$
230.8
$
611.8
$
762.6
Pass-through metal cost
116.8
123.9
354.8
447.7
Value-added sales
$
75.5
$
106.9
$
257.0
$
314.9
EBITDA
$
10.1
13.4
%
$
16.8
15.7
%
$
37.5
14.6
%
$
51.3
16.3
%
Restructuring and cost reduction
2.9
3.8
%
—
—
%
4.5
1.8
%
0.8
0.3
%
Merger and acquisition costs
—
—
%
0.4
0.4
%
—
—
%
6.8
2.2
%
Adjusted EBITDA
$
13.0
17.2
%
$
17.2
16.1
%
$
42.0
16.3
%
$
58.9
18.7
%
Precision Optics
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
% of VA
September 30, 2022
% of VA
September 29, 2023
% of VA
September 30, 2022
% of VA
Net sales
$
26.2
$
28.0
$
77.9
$
86.0
Pass-through metal cost
0.1
—
0.1
0.1
Value-added sales
$
26.1
$
28.0
$
77.8
$
85.9
EBITDA
$
3.3
12.6
%
$
3.6
12.9
%
$
7.7
9.9
%
$
9.3
10.8
%
Restructuring and cost reduction
0.1
0.4
%
0.4
1.4
%
1.2
1.5
%
0.6
0.7
%
Merger and acquisition costs
—
—
%
—
—
%
—
—
%
0.1
0.1
%
Adjusted EBITDA
$
3.4
13.0
%
$
4.0
14.3
%
$
8.9
11.4
%
$
10.0
11.6
%
Other
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
% of VA
September 30, 2022
% of VA
September 29, 2023
% of VA
September 30, 2022
% of VA
EBITDA
$
(7.5
)
$
(5.9
)
$
(21.8
)
$
(18.2
)
Restructuring and cost reduction
—
—
0.1
0.1
Merger and acquisition costs
—
0.5
—
1.9
Adjusted EBITDA
$
(7.5
)
$
(5.4
)
$
(21.7
)
$
(16.2
)
Attachment 8
Materion Corporation and
Subsidiaries
Reconciliation of Non-GAAP
Measure - Gross Margin to Adjusted Gross Margin
(Unaudited)
Third Quarter Ended
Nine Months Ended
(Millions)
September 29, 2023
September 30, 2022
September 29, 2023
September 30, 2022
Gross Margin
Performance Materials
$
57.4
$
41.1
$
166.1
$
117.4
Electronic Materials
23.1
31.9
78.9
100.0
Precision Optics
8.4
9.8
24.3
28.1
Other
—
—
—
—
Total
$
88.9
$
82.8
$
269.3
$
245.5
Special Items (1)
Performance Materials
$
—
$
4.1
$
0.7
$
6.7
Electronic Materials
1.8
—
2.4
5.0
Precision Optics
0.1
—
0.4
—
Other
—
—
—
—
Total
$
1.9
$
4.1
$
3.5
$
11.7
Adjusted Gross Margin
Performance Materials
$
57.4
$
45.2
$
166.8
$
124.1
Electronic Materials
24.9
31.9
81.3
105.0
Precision Optics
8.5
9.8
24.7
28.1
Other
—
—
—
—
Total
$
90.8
$
86.9
$
272.8
$
257.2
(1) Special items impacting gross margin
represent restructuring and cost reduction in 2023 and merger and
acquisition costs in 2022.
Attachment 9
Materion Corporation and
Subsidiaries
Reconciliation of Adjusted
Earnings per Share to GAAP Earnings per Share for
Full Year 2023 Outlook and
Year Ended December 31, 2022
(Unaudited)
Forecasted Full Year Ended
December 31, 2023
Low End Earnings per
Share
High End Earnings per
Share
Year Ended December 31,
2022
GAAP diluted earnings per share
$
5.00
$
5.20
$
4.14
Adjustments:
Restructuring, cost reduction and other
special items, net (1)
0.23
0.23
0.66
Acquisition amortization, net
0.47
0.47
0.47
Adjusted diluted earnings per share
$
5.70
$
5.90
$
5.27
(1) We have adjusted the results for
certain special items such as restructuring and cost reductions
(which includes costs associated with temporarily idled facilities
as a result of decreased demand) additional start up resources and
scrap and merger and acquisition costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031711394/en/
Investor Contact: Kyle Kelleher
(216) 383-4931 kyle.kelleher@materion.com
Media Contact: Jason Saragian (216)
383-6893 jason.saragian@materion.com https://materion.com Mayfield
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