Materion Corporation (NYSE: MTRN) today reported record fourth
quarter and full-year 2022 financial results, provided 2023
earnings guidance, and shared an update on key strategic
initiatives.
Fourth Quarter 2022 Highlights
- Net sales were $434.6 million; value-added sales1 increased 30%
year over year to a record $309.2 million
- Operating profit was $39.2 million; adjusted earnings before
interest, taxes, depreciation, depletion and amortization (EBITDA)
was a record at $55.6 million, or 18.0% of value-added sales, a
120-basis point margin expansion year over year
- Net income of $1.38 per share, diluted; adjusted earnings per
share of $1.49, up 32% year over year and an all-time record for
the Company
Full Year 2022 Highlights
- Net sales were $1.76 billion; value-added sales were a record
$1.14 billion, up 33% from the prior year
- Operating profit was $119.8 million; adjusted earnings before
interest, taxes, depreciation, depletion and amortization (EBITDA)
was an annual record at $196.0 million, or 17.1% of value-added
sales
- Net income of $4.14 per share, diluted; record adjusted
earnings per share of $5.27, up 30% from prior year
Announcing Two New Customer Partnerships
- Secured a customer funded project with a $15 million upfront
investment to expand production capabilities to supply critical
materials for clean energy power generation
- Awarded a 3-year supply agreement, with an initial $10 million
order, to supply materials for space propulsion systems
“Our people continue to execute exceptionally well, growing our
pipeline of organic initiatives, building out a leading-edge
portfolio and developing new and deeper partnerships with our
customers,” Jugal Vijayvargiya, Materion President and CEO said.
“Our global team continues to raise the bar for performance,
delivering another quarter of outstanding results, capping off
another record year for our company.”
“This year we made many important advancements in our
transformation, starting with the successful integration of HCS
Electronic Materials, where the power of our combined teams is
generating value beyond our expectations,” Vijayvargiya added. “The
combination of our organic and inorganic initiatives has led to
eleven consecutive quarters of top line growth and has positioned
us well to continue our growth trajectory in 2023.”
FOURTH QUARTER 2022
RESULTS
Net sales for the quarter were $434.6 million, compared to
$397.2 million in the prior year period. Value-added sales of
$309.2 million were a quarterly record, up 30% from the prior year.
In addition to the benefit of the HCS-Electronic Materials
acquisition, organic2 value-added sales were up 26% driven by
strong performance across several major end markets including
industrial, energy and aerospace, as well as contribution from the
precision clad strip project.
Operating profit for the quarter was $39.2 million and net
income was $28.8 million, or $1.38 per diluted share, compared to
operating profit of $15.5 million and net income of $19.7 million,
or $0.95 per diluted share in the prior year period.
Excluding special items, detailed in the attached tables,
adjusted EBITDA was $55.6 million in the quarter, another quarterly
record for the company, compared to $39.8 million in the prior
year. The increase was driven by higher volume and favorable
pricing more than offsetting cost inflation.
Adjusted net income was $30.9 million excluding acquisition
amortization, or $1.49 per diluted share, an increase of 32%
compared to $1.13 per share in the prior year period.
FULL-YEAR 2022 RESULTS
Net sales were $1.76 billion, an increase of 16% as compared to
the prior year. Value-added sales of $1.14 billion were up 33% from
the prior year. Double-digit organic value-added sales growth
across most major end markets, as well as incremental sales related
to the acquisition of HCS-Electronic Materials drove the
increase.
Operating profit for the full year was $119.8 million and net
income was $86.0 million, or $4.14 per diluted share, compared to
operating profit of $77.1 million and net income of $72.5 million,
or $3.50 per diluted share in the prior year period.
Excluding special items, detailed in the attached tables,
adjusted EBITDA was $196.0 million for the full year, another
annual record for the company, compared to $143.6 million in the
prior year. The significant increase was driven mainly by higher
volume, favorable pricing more than offsetting cost inflation and
the benefit of the HCS Electronic Materials acquisition.
Adjusted net income was $109.5 million excluding acquisition
amortization, or $5.27 per diluted share, an increase of 30%
compared to $4.06 per share in the prior year period.
OUTLOOK
Despite an expectation of short-term softness in certain
markets, we expect another year of strong end market outgrowth as a
direct result of our organic initiatives. With this, we are guiding
to the range of $5.50 to $5.90 for full year 2023 adjusted earnings
per share, an increase of 8% 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 7
to this press release.
CONFERENCE CALL
Materion Corporation will host an investor conference call with
analysts at 9:00 a.m. Eastern Time, February 16, 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 450253. A replay of the call will be
available until March 2, 2023 by dialing (877) 481-4010 or (919)
882-2331 if international; please reference replay ID number 46830.
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 Organic results exclude the impact of both acquisition and
currency
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 3,400
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: 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
inflationary pressures, potential future recessionary conditions,
and 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.
Attachment 1
Materion Corporation and
Subsidiaries
Consolidated Statements of
Income
(Unaudited)
Fourth Quarter Ended
Year Ended
(In thousands except per share
amounts)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net sales
$
434,578
$
397,231
$
1,757,109
$
1,510,644
Cost of sales
336,159
324,159
1,413,229
1,226,882
Gross margin
98,419
73,072
343,880
283,762
Selling, general, and administrative
expense
46,672
45,746
169,338
163,777
Research and development expense
6,881
7,411
28,977
26,575
Restructuring expense (income)
13
(60
)
1,573
(438
)
Other — net
5,662
4,465
24,237
16,737
Operating profit
39,191
15,510
119,755
77,111
Other non-operating (income)
expense—net
(1,738
)
(1,283
)
(5,250
)
(5,115
)
Interest expense — net
7,580
2,421
21,905
4,901
Income before income taxes
33,349
14,372
103,100
77,325
Income tax (benefit) expense
4,585
(5,311
)
17,110
4,851
Net income
$
28,764
$
19,683
$
85,990
$
72,474
Basic earnings per share:
Net income per share of common stock
$
1.40
$
0.96
$
4.19
$
3.55
Diluted earnings per share:
Net income per share of common stock
$
1.38
$
0.95
$
4.14
$
3.50
Weighted-average number of shares of
common stock outstanding:
Basic
20,537
20,445
20,511
20,422
Diluted
20,790
20,732
20,760
20,689
Attachment 2
Materion Corporation and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(Thousands)
December 31, 2022
December 31, 2021
Assets
Current assets
Cash and cash equivalents
$
13,101
$
14,462
Accounts receivable, net
215,211
213,819
Inventories, net
423,080
361,115
Prepaid and other current assets
39,056
37,856
Total current assets
690,448
627,252
Deferred income taxes
3,265
5,431
Property, plant, and equipment
1,209,205
1,132,223
Less allowances for depreciation,
depletion, and amortization
(760,440
)
(723,248
)
Property, plant, and equipment—net
448,765
408,975
Operating lease, right-of-use assets
64,249
63,096
Intangible assets
143,219
156,736
Other assets
22,535
27,369
Goodwill
319,498
318,620
Total Assets
$
1,691,979
$
1,607,479
Liabilities and Shareholders’
Equity
Current liabilities
Short-term debt
$
21,105
$
15,359
Accounts payable
107,899
86,243
Salaries and wages
35,543
37,544
Other liabilities and accrued items
54,993
53,388
Income taxes
3,928
4,205
Unearned revenue
15,496
7,770
Total current liabilities
238,964
204,509
Other long-term liabilities
12,181
14,954
Operating lease liabilities
59,055
57,099
Finance lease liabilities
13,876
16,327
Retirement and post-employment
benefits
20,422
33,394
Unearned income
107,736
97,962
Long-term income taxes
665
1,190
Deferred income taxes
28,214
27,216
Long-term debt
410,876
434,388
Shareholders’ equity
799,990
720,440
Total Liabilities and Shareholders’
Equity
$
1,691,979
$
1,607,479
Attachment 3
Materion Corporation and
Subsidiaries
Consolidated Statements of
Cash Flows
(Thousands)
December 31, 2022
December 31, 2021
Cash flows from operating activities:
Net income
$
85,990
$
72,474
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and
amortization
53,436
44,137
Amortization of deferred financing costs
in interest expense
1,734
967
Stock-based compensation expense
(non-cash)
8,813
6,517
Amortization of pension and
post-retirement costs
(146
)
437
(Gain) loss on sale of property, plant,
and equipment
14
(282
)
Deferred income tax (benefit) expense
1,733
(12,957
)
Net pension curtailments and
settlements
(551
)
—
Changes in assets and liabilities, net of
acquired assets and liabilities:
Decrease (increase) in accounts
receivable
(4,377
)
(30,490
)
Decrease (increase) in inventory
(63,986
)
(43,458
)
Decrease (increase) in prepaid and other
current assets
(1,604
)
(3,855
)
Increase (decrease) in accounts payable
and accrued expenses
12,860
40,219
Increase (decrease) in unearned
revenue
207
106
Increase (decrease) in interest and taxes
payable
154
(220
)
Increase (decrease) in unearned income due
to customer prepayments
21,942
13,752
Other — net
(261
)
2,894
Net cash provided by operating
activities
115,958
90,241
Cash flows from investing activities:
Payments for acquisition, net of cash
acquired
(2,971
)
(392,240
)
Payments for purchase of property, plant,
and equipment
(77,608
)
(102,910
)
Proceeds from sale of property, plant, and
equipment
850
881
Net cash used in investing
activities
(79,729
)
(494,269
)
Cash flows from financing activities:
Proceeds from borrowings under revolving
credit agreement, net
(9,046
)
118,297
Proceeds from issuance of debt
9,276
300,000
Repayment of debt
(19,299
)
(2,054
)
Principal payments under finance lease
obligations
(2,736
)
(2,819
)
Cash dividends paid
(10,160
)
(9,697
)
Deferred financing costs
—
(7,403
)
Payments of withholding taxes for
stock-based compensation awards
(3,593
)
(3,318
)
Net cash provided by (used in)
financing activities
(35,558
)
393,006
Effects of exchange rate changes
(2,032
)
(394
)
Net change in cash and cash
equivalents
(1,361
)
(11,416
)
Cash and cash equivalents at beginning
of period
14,462
25,878
Cash and cash equivalents at end of
period
$
13,101
$
14,462
Attachment 4
Materion Corporation and
Subsidiaries
Reconciliation of Non-GAAP
Measure - Value-added Sales, Operating Profit, and EBITDA
(Unaudited)
Fourth Quarter Ended
Year Ended
(Millions)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net Sales
Performance Materials(1)
$
197.6
$
136.4
$
671.5
$
511.9
Electronic Materials(1)
209.3
228.3
971.9
866.8
Precision Optics
27.7
32.5
113.7
131.9
Other
—
—
—
—
Total
$
434.6
$
397.2
$
1,757.1
$
1,510.6
Less: Pass-through Metal Cost
Performance Materials(1)
$
20.0
$
20.6
$
82.0
$
71.5
Electronic Materials(1)
105.3
138.7
529.9
577.7
Precision Optics
—
—
0.1
0.1
Other
0.1
0.5
1.5
1.6
Total
$
125.4
$
159.8
$
613.5
$
650.9
Value-added Sales (non-GAAP)
Performance Materials(1)
$
177.6
$
115.8
$
589.5
$
440.4
Electronic Materials(1)
104.0
89.6
442.0
289.1
Precision Optics
27.7
32.5
113.6
131.8
Other
(0.1
)
(0.5
)
(1.5
)
(1.6
)
Total
$
309.2
$
237.4
$
1,143.6
$
859.7
Gross Margin
Performance Materials(1)(2)
$
57.7
$
33.0
$
175.1
$
132.4
Electronic Materials(1)(2)
31.5
27.3
131.5
100.8
Precision Optics
9.2
12.5
37.3
51.0
Other
—
0.3
—
(0.4
)
Total(2)
$
98.4
$
73.1
$
343.9
$
283.8
(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.
(2) Adjusted gross margin without special
items impacting COGS for Performance Materials for the twelve
months ended December 31, 2022 and December 31, 2021 was $181.8
million and $134.0 million, respectively. Adjusted gross margin
without special items impacting COGS for Electronic Materials for
the twelve months ended December 31, 2022 and December 31, 2021 was
$136.6 million and $104.2 million, respectively. Consolidated
adjusted gross margin without special items impacting COGS for the
twelve months ended December 31, 2022 and December 31, 2021 was
$355.6 million and $289.6 million, respectively. For the fourth
quarter of 2021, adjusted gross margin without special items
impacting COGS for Performance Materials and Electronic Materials
was $34.7 million and $30.7 million, respectively.
Note: Quarterly information presented
within this document and previously disclosed quarterly information
may not equal the total computed for the year due to rounding
Fourth Quarter Ended
Year Ended
(Millions)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Operating Profit (Loss)
Performance Materials
$
37.6
$
16.2
$
101.4
$
67.9
Electronic Materials
12.3
8.8
51.3
35.3
Precision Optics
1.1
3.7
1.9
14.2
Other
(11.8
)
(13.2
)
(34.8
)
(40.3
)
Total
$
39.2
$
15.5
$
119.8
$
77.1
Non-Operating (Income) Expense
Performance Materials
$
0.1
$
0.2
$
0.5
$
0.6
Electronic Materials
—
—
—
0.1
Precision Optics
(0.6
)
(0.2
)
(1.3
)
(0.8
)
Other
(1.2
)
(1.3
)
(4.4
)
(5.0
)
Total
$
(1.7
)
$
(1.3
)
$
(5.2
)
$
(5.1
)
Depreciation, Depletion, and
Amortization
Performance Materials
$
6.8
$
5.0
$
24.3
$
21.7
Electronic Materials
4.2
3.4
16.5
9.6
Precision Optics
2.7
2.7
10.5
10.9
Other
0.5
0.6
2.1
2.0
Total
$
14.2
$
11.7
$
53.4
$
44.2
Segment EBITDA
Performance Materials
$
44.3
$
21.0
$
125.2
$
89.0
Electronic Materials
16.5
12.2
67.8
44.8
Precision Optics
4.4
6.6
13.7
25.9
Other
(10.1
)
(11.3
)
(28.3
)
(33.3
)
Total
$
55.1
$
28.5
$
178.4
$
126.4
Special Items
Performance Materials
$
—
$
1.6
$
6.8
$
1.6
Electronic Materials
0.6
3.7
8.2
3.7
Precision Optics
(0.4
)
—
0.3
0.4
Other
0.3
6.0
2.3
11.5
Total
$
0.5
$
11.3
$
17.6
$
17.2
Adjusted EBITDA Excluding Special
Items
Performance Materials
$
44.3
$
22.6
$
132.0
$
90.6
Electronic Materials
17.1
15.9
76.0
48.5
Precision Optics
4.0
6.6
14.0
26.3
Other
(9.8
)
(5.3
)
(26.0
)
(21.8
)
Total
$
55.6
$
39.8
$
196.0
$
143.6
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.
Attachment 5
Materion Corporation and
Subsidiaries
Reconciliation of Net Sales to
Value-added Sales, Net Income to EBITDA and Adjusted EBITDA
(Unaudited)
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2022
% of VA
December 31, 2021
% of VA
December 31, 2022
% of VA
December 31, 2021
% of VA
Net sales
$
434.6
$
397.2
$
1,757.1
$
1,510.6
Pass-through metal cost
125.4
159.8
613.5
650.9
Value-added sales
$
309.2
$
237.4
$
1,143.6
$
859.7
Net income
$
28.8
9.3
%
19.7
8.3
%
$
86.0
7.5
%
$
72.5
8.4
%
Income tax expense
4.5
1.5
%
(5.3
)
(2.2
)%
17.1
1.5
%
4.8
0.6
%
Interest expense - net
7.6
2.5
%
2.4
1.0
%
21.9
1.9
%
4.9
0.6
%
Depreciation, depletion and
amortization
14.2
4.6
%
11.7
4.9
%
53.4
4.7
%
44.2
5.1
%
Consolidated EBITDA
$
55.1
17.8
%
$
28.5
12.0
%
$
178.4
15.6
%
$
126.4
14.7
%
Special items
Restructuring and cost reduction
$
—
—
%
$
—
—
%
$
1.5
0.1
%
$
0.4
—
%
Pension settlement
(0.5
)
(0.2
)%
—
—
%
(0.5
)
—
%
—
—
%
Additional start up resources and
scrap
—
—
%
—
—
%
4.1
0.4
%
—
—
%
Merger and acquisition costs
1.0
0.3
%
11.3
4.8
%
12.5
1.1
%
16.8
2.0
%
Total special items
0.5
0.2
%
11.3
4.8
%
17.6
1.5
%
17.2
2.0
%
Adjusted EBITDA
$
55.6
18.0
%
$
39.8
16.8
%
$
196.0
17.1
%
$
143.6
16.7
%
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, 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)
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2022
Diluted EPS
December 31, 2021
Diluted EPS
December 31, 2022
Diluted EPS
December 31, 2021
Diluted EPS
Net income and EPS
$
28.8
$
1.38
$
19.7
$
0.95
$
86.0
$
4.14
$
72.5
$
3.50
Special items
Restructuring and cost reduction
—
—
1.5
0.4
Additional start up resources and
scrap
—
—
4.1
—
Merger and acquisition costs
1.0
11.3
12.5
16.8
Pension settlement
(0.5
)
(0.5
)
Provision for income taxes (1)
(0.8
)
(9.6
)
(3.9
)
(10.9
)
Total special items
(0.3
)
(0.01
)
1.7
0.08
13.7
0.66
6.3
0.31
Adjusted net income and adjusted EPS
$
28.5
$
1.37
$
21.4
$
1.03
$
99.7
$
4.80
$
78.8
$
3.81
Acquisition amortization (net of tax)
2.4
0.12
2.0
0.10
9.8
0.47
5.2
0.25
Adjusted net income and adjusted EPS excl.
amortization
$
30.9
$
1.49
$
23.4
$
1.13
$
109.5
$
5.27
$
84.0
$
4.06
(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
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2022
% of VA
December 31, 2021
% of VA
December 31, 2022
% of VA
December 31, 2021
% of VA
Net sales
$
197.6
$
136.4
$
671.5
$
511.9
Pass-through metal cost
20.0
20.6
82.0
71.5
Value-added sales
$
177.6
$
115.8
$
589.5
$
440.4
EBITDA
$
44.3
24.9
%
$
21.0
18.1
%
$
125.2
21.2
%
$
89.0
20.2
%
Additional start up resources and
scrap
—
—
%
—
—
%
4.1
0.7
%
—
—
%
Merger and acquisition costs
—
—
%
1.6
1.4
%
2.7
0.5
%
1.6
0.4
%
Adjusted EBITDA
$
44.3
24.9
%
$
22.6
19.5
%
$
132.0
22.4
%
$
90.6
20.6
%
Electronic Materials
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2022
% of VA
December 31, 2021
% of VA
December 31, 2022
% of VA
December 31, 2021
% of VA
Net sales
$
209.3
$
228.3
$
971.9
$
866.8
Pass-through metal cost
105.3
138.7
529.9
577.7
Value-added sales
$
104.0
$
89.6
$
442.0
$
289.1
EBITDA
$
16.5
15.9
%
$
12.2
13.6
%
$
67.8
15.3
%
$
44.8
15.5
%
Restructuring and cost reduction
—
—
%
—
—
%
0.8
0.2
%
—
—
%
Merger and acquisition costs
0.6
0.6
%
3.7
4.1
%
7.4
1.7
%
3.7
1.3
%
Adjusted EBITDA
$
17.1
16.4
%
$
15.9
17.7
%
$
76.0
17.2
%
$
48.5
16.8
%
Precision Optics
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2022
% of VA
December 31, 2021
% of VA
December 31, 2022
% of VA
December 31, 2021
% of VA
Net sales
$
27.7
$
32.5
$
113.7
$
131.9
Pass-through metal cost
—
—
0.1
0.1
Value-added sales
$
27.7
$
32.5
$
113.6
$
131.8
EBITDA
$
4.4
15.9
%
$
6.6
20.3
%
$
13.7
12.1
%
$
25.9
19.7
%
Restructuring and cost reduction
—
—
%
—
—
%
0.6
0.5
%
0.4
0.3
%
Pension settlement
(0.5
)
(1.8
)%
—
—
%
(0.5
)
(0.4
)%
Merger and acquisition costs
0.1
0.4
%
—
—
%
0.2
0.2
%
—
—
%
Adjusted EBITDA
$
4.0
14.4
%
$
6.6
20.3
%
$
14.0
12.3
%
$
26.3
20.0
%
Other
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2022
% of VA
December 31, 2021
% of VA
December 31, 2022
% of VA
December 31, 2021
% of VA
EBITDA
$
(10.1
)
$
(11.3
)
$
(28.3
)
$
(33.3
)
Restructuring and cost reduction
—
—
0.1
—
Merger and acquisition costs
0.3
6.0
2.2
11.5
Adjusted EBITDA
$
(9.8
)
$
(5.3
)
$
(26.0
)
$
(21.8
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230215005925/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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