10/30/2024 | Press release | Distributed by Public on 10/30/2024 05:10
Third Quarter Ended | Nine Months Ended | |||||||
(In thousands except per share amounts) | September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Net sales | $ | 436,715 | $ | 403,067 | $ | 1,247,868 | $ | 1,244,144 |
Cost of sales | 355,777 | 314,131 | 1,014,859 | 974,817 | ||||
Gross margin | 80,938 | 88,936 | 233,009 | 269,327 | ||||
Selling, general, and administrative expense | 35,009 | 38,806 | 104,454 | 118,053 | ||||
Research and development expense | 7,868 | 6,322 | 22,712 | 21,098 | ||||
Restructuring expense (income) | 1,493 | 1,077 | 6,161 | 3,194 | ||||
Other - net | 5,309 | 6,211 | 14,112 | 18,178 | ||||
Operating profit | 31,259 | 36,520 | 85,570 | 108,804 | ||||
Other non-operating income-net | (642) | (685) | (1,925) | (2,141) | ||||
Interest expense - net | 8,839 | 7,678 | 25,920 | 22,820 | ||||
Income before income taxes | 23,062 | 29,527 | 61,575 | 88,125 | ||||
Income tax expense | 768 | 2,963 | 6,836 | 11,891 | ||||
Net income | $ | 22,294 | $ | 26,564 | $ | 54,739 | $ | 76,234 |
Basic earnings per share: | ||||||||
Net income per share of common stock | $ | 1.07 | $ | 1.29 | $ | 2.64 | $ | 3.70 |
Diluted earnings per share: | ||||||||
Net income per share of common stock | $ | 1.07 | $ | 1.27 | $ | 2.61 | $ | 3.65 |
Weighted-average number of shares of common stock outstanding: | ||||||||
Basic | 20,749 | 20,640 | 20,723 | 20,611 | ||||
Diluted | 20,920 | 20,905 | 20,935 | 20,891 | ||||
(Thousands) | September 27, 2024 | December 31, 2023 | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 17,874 | $ | 13,294 |
Accounts receivable, net | 214,576 | 192,747 | ||
Inventories, net | 476,596 | 441,597 | ||
Prepaid and other current assets | 86,314 | 61,744 | ||
Total current assets | 795,360 | 709,382 | ||
Deferred income taxes | 4,914 | 4,908 | ||
Property, plant, and equipment | 1,328,355 | 1,281,622 | ||
Less allowances for depreciation, depletion, and amortization | (802,294) | (766,939) | ||
Property, plant, and equipment-net | 526,061 | 514,683 | ||
Operating lease, right-of-use assets | 58,871 | 57,645 | ||
Intangible assets, net | 124,281 | 133,571 | ||
Other assets | 26,384 | 21,664 | ||
Goodwill | 321,147 | 320,873 | ||
Total Assets | $ | 1,857,018 | $ | 1,762,726 |
Liabilities and Shareholders' Equity | ||||
Current liabilities | ||||
Short-term debt | $ | 37,542 | $ | 38,597 |
Accounts payable | 130,310 | 125,663 | ||
Salaries and wages | 19,463 | 25,912 | ||
Other liabilities and accrued items | 48,850 | 45,773 | ||
Income taxes | 1,166 | 5,207 | ||
Unearned revenue | 15,497 | 13,843 | ||
Total current liabilities | 252,828 | 254,995 | ||
Other long-term liabilities | 12,513 | 13,300 | ||
Operating lease liabilities | 56,698 | 53,817 | ||
Finance lease liabilities | 13,438 | 13,744 | ||
Retirement and post-employment benefits | 26,178 | 26,334 | ||
Unearned income | 81,553 | 103,983 | ||
Long-term income taxes | 4,551 | 3,815 | ||
Deferred income taxes | 19,608 | 20,109 | ||
Long-term debt | 457,756 | 387,576 | ||
Shareholders' equity | 931,895 | 885,053 | ||
Total Liabilities and Shareholders' Equity | $ | 1,857,018 | $ | 1,762,726 |
Nine Months Ended | ||||
(Thousands) | September 27, 2024 | September 29, 2023 | ||
Cash flows from operating activities: | ||||
Net income | $ | 54,739 | $ | 76,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation, depletion, and amortization | 51,291 | 46,524 | ||
Amortization of deferred financing costs in interest expense | 1,286 | 1,284 | ||
Stock-based compensation expense (non-cash) |
7,715 | 7,578 | ||
Deferred income tax expense (benefit) | (9) | (149) | ||
Changes in assets and liabilities: | ||||
Accounts receivable |
(21,921) | 27,832 | ||
Inventory | (34,215) | (30,868) | ||
Prepaid and other current assets | (24,646) | (16,175) | ||
Accounts payable and accrued expenses | 3,704 | (25,533) | ||
Unearned revenue | (17,568) | (12,398) | ||
Interest and taxes payable |
(3,233) | (1,730) | ||
Unearned income due to customer prepayments | - | 16,676 | ||
Other-net | (5,579) | (4,770) | ||
Net cash provided by operating activities | 11,564 | 84,505 | ||
Cash flows from investing activities: | ||||
Payments for purchase of property, plant, and equipment | (50,730) | (85,251) | ||
Payments for mine development | (10,376) | (9,326) | ||
Proceeds from sale of property, plant, and equipment | 561 | 417 | ||
Net cash used in investing activities | (60,545) | (94,160) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowings under credit facilities, net | 91,057 | 39,649 | ||
Repayment of long-term debt | (22,694) | (11,579) | ||
Principal payments under finance lease obligations | (567) | (1,297) | ||
Cash dividends paid | (8,295) | (7,937) | ||
Payments of withholding taxes for stock-based compensation awards | (6,575) | (5,101) | ||
Net cash provided by financing activities | 52,926 | 13,735 | ||
Effects of exchange rate changes | 635 | (780) | ||
Net change in cash and cash equivalents | 4,580 | 3,300 | ||
Cash and cash equivalents at beginning of period | 13,294 | 13,101 | ||
Cash and cash equivalents at end of period | $ | 17,874 | $ | 16,401 |
Third Quarter Ended | Nine Months Ended | |||||||
(Millions) | September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Net Sales | ||||||||
Performance Materials | $ | 177.4 | $ | 184.6 | $ | 533.5 | $ | 554.4 |
Electronic Materials | 236.9 | 192.3 | 641.6 | 611.8 | ||||
Precision Optics | 22.4 | 26.2 | 72.8 | 77.9 | ||||
Other | - | - | - | - | ||||
Total | $ | 436.7 | $ | 403.1 | $ | 1,247.9 | $ | 1,244.1 |
Less: Pass-through Metal Cost | ||||||||
Performance Materials | $ | 13.8 | $ | 15.7 | $ | 41.2 | $ | 51.9 |
Electronic Materials | 159.1 | 116.8 | 405.0 | 354.8 | ||||
Precision Optics | - | 0.1 | 0.2 | 0.1 | ||||
Other | - | - | - | - | ||||
Total | $ | 172.9 | $ | 132.6 | $ | 446.4 | $ | 406.8 |
Value-added Sales (non-GAAP) | ||||||||
Performance Materials | $ | 163.6 | $ | 168.9 | $ | 492.3 | $ | 502.5 |
Electronic Materials | 77.8 | 75.5 | 236.6 | 257.0 | ||||
Precision Optics | 22.4 | 26.1 | 72.6 | 77.8 | ||||
Other | - | - | - | - | ||||
Total | $ | 263.8 | $ | 270.5 | $ | 801.5 | $ | 837.3 |
Gross Margin | ||||||||
Performance Materials(1)
|
$ | 51.8 | $ | 57.4 | $ | 140.6 | $ | 166.1 |
Electronic Materials(1)
|
23.3 | 23.1 | 73.5 | 78.9 | ||||
Precision Optics(1)
|
5.8 | 8.4 | 18.9 | 24.3 | ||||
Other | - | - | - | - | ||||
Total(1)
|
$ | 80.9 | $ | 88.9 | $ | 233.0 | $ | 269.3 |
(1) See reconciliation of gross margin to adjusted gross margin in Attachment 8
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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 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Operating Profit/(Loss) | ||||||||
Performance Materials | $ | 34.2 | $ | 38.9 | $ | 88.7 | $ | 110.9 |
Electronic Materials | 7.8 | 6.0 | 26.5 | 24.8 | ||||
Precision Optics | (3.0) | 0.3 | (7.7) | (1.6) | ||||
Other | (7.7) | (8.7) | (21.9) | (25.3) | ||||
Total | $ | 31.3 | $ | 36.5 | $ | 85.6 | $ | 108.8 |
Non-Operating (Income)/Expense | ||||||||
Performance Materials | $ | 0.1 | $ | 0.2 | $ | 0.4 | $ | 0.4 |
Electronic Materials | - | - | - | - | ||||
Precision Optics | (0.1) | (0.2) | (0.4) | (0.6) | ||||
Other | (0.6) | (0.7) | (1.9) | (2.0) | ||||
Total | $ | (0.6) | $ | (0.7) | $ | (1.9) | $ | (2.2) |
Depreciation, Depletion, and Amortization | ||||||||
Performance Materials | $ | 10.7 | $ | 7.7 | $ | 27.6 | $ | 23.6 |
Electronic Materials | 4.5 | 4.1 | 13.6 | 12.7 | ||||
Precision Optics | 2.9 | 2.8 | 8.6 | 8.7 | ||||
Other | 0.5 | 0.5 | 1.5 | 1.5 | ||||
Total | $ | 18.6 | $ | 15.1 | $ | 51.3 | $ | 46.5 |
Segment EBITDA | ||||||||
Performance Materials | $ | 44.8 | $ | 46.4 | $ | 115.9 | $ | 134.1 |
Electronic Materials | 12.3 | 10.1 | 40.1 | 37.5 | ||||
Precision Optics | - | 3.3 | 1.3 | 7.7 | ||||
Other | (6.6) | (7.5) | (18.5) | (21.8) | ||||
Total | $ | 50.5 | $ | 52.3 | $ | 138.8 | $ | 157.5 |
Special Items(2)
|
||||||||
Performance Materials | $ | 1.7 | $ | 0.1 | $ | 9.4 | $ | 1.1 |
Electronic Materials | 3.3 | 2.9 | 7.1 | 4.5 | ||||
Precision Optics | 0.5 | 0.1 | 1.7 | 1.2 | ||||
Other | 0.7 | - | 2.7 | 0.1 | ||||
Total | $ | 6.2 | $ | 3.1 | $ | 20.9 | $ | 6.9 |
Adjusted EBITDA Excluding Special Items | ||||||||
Performance Materials | $ | 46.5 | $ | 46.5 | $ | 125.3 | $ | 135.2 |
Electronic Materials | 15.6 | 13.0 | 47.2 | 42.0 | ||||
Precision Optics | 0.5 | 3.4 | 3.0 | 8.9 | ||||
Other | (5.9) | (7.5) | (15.8) | (21.7) | ||||
Total | $ | 56.7 | $ | 55.4 | $ | 159.7 | $ | 164.4 |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Millions) | September 27, 2024 | % of VA | September 29, 2023 | % of VA | September 27, 2024 | % of VA | September 29, 2023 | % of VA | ||||||||
Net sales | $ | 436.7 | $ | 403.1 | $ | 1,247.9 | $ | 1,244.1 | ||||||||
Pass-through metal cost | 172.9 | 132.6 | 446.4 | 406.8 | ||||||||||||
Value-added sales | $ | 263.8 | $ | 270.5 | $ | 801.5 | $ | 837.3 | ||||||||
Net income | $ | 22.3 | 8.5 | % | $ | 26.6 | 9.8 | % | $ | 54.7 | 6.8 | % | $ | 76.2 | 9.1 | % |
Income tax expense | 0.8 | 0.3 | % | 3.0 | 1.1 | % | 6.9 | 0.9 | % | 11.9 | 1.4 | % | ||||
Interest expense - net | 8.8 | 3.3 | % | 7.6 | 2.8 | % | 25.9 | 3.2 | % | 22.9 | 2.7 | % | ||||
Depreciation, depletion and amortization | 18.6 | 7.1 | % | 15.1 | 5.6 | % | 51.3 | 6.4 | % | 46.5 | 5.6 | % | ||||
Consolidated EBITDA | $ | 50.5 | 19.1 | % | $ | 52.3 | 19.3 | % | $ | 138.8 | 17.3 | % | $ | 157.5 | 18.8 | % |
Special items | ||||||||||||||||
Restructuring and cost reduction | $ | 1.6 | 0.6 | % | $ | 3.1 | 1.2 | % | $ | 10.7 | 1.3 | % | $ | 6.9 | 0.8 | % |
Electronic Materials inventory adjustment | 2.8 | 1.1 | % | - | - | % | 2.8 | 0.3 | % | - | - | % | ||||
Business transformation costs | 0.6 | 0.2 | % | - | - | % | 0.6 | 0.1 | % | - | - | % | ||||
Additional start up resources and scrap | 1.2 | 0.5 | % | - | - | % | 6.1 | 0.8 | % | - | - | % | ||||
Merger, acquisition and divestiture related costs | - | - | % | - | - | % | 0.7 | 0.1 | % | - | - | % | ||||
Total special items | 6.2 | 2.4 | % | 3.1 | 1.2 | % | 20.9 | 2.6 | % | 6.9 | 0.8 | % | ||||
Adjusted EBITDA | $ | 56.7 | 21.5 | % | $ | 55.4 | 20.5 | % | $ | 159.7 | 19.9 | % | $ | 164.4 | 19.6 | % |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Millions) | September 27, 2024 | Diluted EPS | September 29, 2023 | Diluted EPS | September 27, 2024 | Diluted EPS | September 29, 2023 | Diluted EPS | ||||||||
Net income and EPS | $ | 22.3 | $ | 1.07 | $ | 26.6 | $ | 1.27 | $ | 54.7 | $ | 2.61 | $ | 76.2 | $ | 3.65 |
Special items | ||||||||||||||||
Restructuring and cost reduction | 1.6 | 3.1 | 10.7 | 6.9 | ||||||||||||
Electronic Materials inventory adjustment | 2.8 | - | 2.8 | - | ||||||||||||
Business transformation costs | 0.6 | - | 0.6 | - | ||||||||||||
Additional start up resources and scrap | 1.2 | - | 6.1 | - | ||||||||||||
Merger, acquisition and divestiture related costs | - | - | 0.7 | - | ||||||||||||
Provision for income taxes(1)
|
(1.4) | (0.6) | (3.6) | (2.1) | ||||||||||||
Total special items | 4.8 | 0.22 | 2.5 | 0.12 | 17.3 | 0.83 | 4.8 | 0.23 | ||||||||
Adjusted net income and adjusted EPS | $ | 27.1 | $ | 1.29 | $ | 29.1 | $ | 1.39 | $ | 72.0 | $ | 3.44 | $ | 81.0 | $ | 3.88 |
Acquisition amortization (net of tax) | 2.5 | 0.12 | 2.5 | 0.12 | 7.4 | 0.35 | 7.4 | 0.35 | ||||||||
Adjusted net income and adjusted EPS excl. amortization | $ | 29.6 | $ | 1.41 | $ | 31.6 | $ | 1.51 | $ | 79.4 | $ | 3.79 | $ | 88.4 | $ | 4.23 |
Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited)
|
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Performance Materials | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Millions) | September 27, 2024 | % of VA | September 29, 2023 | % of VA | September 27, 2024 | % of VA | September 29, 2023 | % of VA | ||||||||
Net sales | $ | 177.4 | $ | 184.6 | $ | 533.5 | $ | 554.4 | ||||||||
Pass-through metal cost | 13.8 | 15.7 | 41.2 | 51.9 | ||||||||||||
Value-added sales | $ | 163.6 | $ | 168.9 | $ | 492.3 | $ | 502.5 | ||||||||
EBITDA | $ | 44.8 | 27.4 | % | $ | 46.4 | 27.5 | % | $ | 115.9 | 23.5 | % | $ | 134.1 | 26.7 | % |
Restructuring and cost reduction | 0.1 | 0.1 | % | 0.1 | - | % | 2.9 | 0.6 | % | 1.1 | 0.2 | % | ||||
Additional start up resources and scrap | 1.2 | 0.7 | % | - | - | % | 6.1 | 1.2 | % | - | - | % | ||||
Business transformation costs | 0.4 | 0.2 | % | - | - | % | 0.4 | 0.1 | % | - | - | % | ||||
Adjusted EBITDA | $ | 46.5 | 28.4 | % | $ | 46.5 | 27.5 | % | $ | 125.3 | 25.4 | % | $ | 135.2 | 26.9 | % |
Electronic Materials | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Millions) | September 27, 2024 | % of VA | September 29, 2023 | % of VA | September 27, 2024 | % of VA | September 29, 2023 | % of VA | ||||||||
Net sales | $ | 236.9 | $ | 192.3 | $ | 641.6 | $ | 611.8 | ||||||||
Pass-through metal cost | 159.1 | 116.8 | 405.0 | 354.8 | ||||||||||||
Value-added sales | $ | 77.8 | $ | 75.5 | $ | 236.6 | $ | 257.0 | ||||||||
EBITDA | $ | 12.3 | 15.8 | % | $ | 10.1 | 13.4 | % | $ | 40.1 | 16.9 | % | $ | 37.5 | 14.6 | % |
Restructuring and cost reduction | 0.5 | 0.7 | % | 2.9 | 3.8 | % | 4.3 | 1.8 | % | 4.5 | 1.8 | % | ||||
Electronic Materials inventory adjustment | 2.8 | 3.6 | % | - | - | % | 2.8 | 1.2 | % | - | - | % | ||||
Adjusted EBITDA | $ | 15.6 | 20.1 | % | $ | 13.0 | 17.2 | % | $ | 47.2 | 19.9 | % | $ | 42.0 | 16.3 | % |
Precision Optics | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Millions) | September 27, 2024 | % of VA | September 29, 2023 | % of VA | September 27, 2024 | % of VA | September 29, 2023 | % of VA | ||||||||
Net sales | $ | 22.4 | $ | 26.2 | $ | 72.8 | $ | 77.9 | ||||||||
Pass-through metal cost | - | 0.1 | 0.2 | 0.1 | ||||||||||||
Value-added sales | $ | 22.4 | $ | 26.1 | $ | 72.6 | $ | 77.8 | ||||||||
EBITDA | $ | - | - | % | $ | 3.3 | 12.6 | % | $ | 1.3 | 1.8 | % | $ | 7.7 | 9.9 | % |
Restructuring and cost reduction | 0.5 | 2.2 | % | 0.1 | 0.4 | % | 1.7 | 2.3 | % | 1.2 | 1.5 | % | ||||
Adjusted EBITDA | $ | 0.5 | 2.2 | % | $ | 3.4 | 13.0 | % | $ | 3.0 | 4.1 | % | $ | 8.9 | 11.4 | % |
Other | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Millions) | September 27, 2024 | % of VA | September 29, 2023 | % of VA | September 27, 2024 | % of VA | September 29, 2023 | % of VA | ||||||||
EBITDA | $ | (6.6) | $ | (7.5) | $ | (18.5) | $ | (21.8) | ||||||||
Restructuring and cost reduction | 0.5 | - | 1.8 | 0.1 | ||||||||||||
Business transformation costs | 0.2 | - | 0.2 | - | ||||||||||||
Merger, acquisition and divestiture related costs |
- | - | 0.7 | - | ||||||||||||
Adjusted EBITDA | $ | (5.9) | $ | (7.5) | $ | (15.8) | $ | (21.7) |
Third Quarter Ended | Nine Months Ended | |||||||
(Millions) | September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Gross Margin | ||||||||
Performance Materials | $ | 51.8 | $ | 57.4 | $ | 140.6 | $ | 166.1 |
Electronic Materials | 23.3 | 23.1 | 73.5 | 78.9 | ||||
Precision Optics | 5.8 | 8.4 | 18.9 | 24.3 | ||||
Other | - | - | - | - | ||||
Total | $ | 80.9 | $ | 88.9 | $ | 233.0 | $ | 269.3 |
Special Items (1)
|
||||||||
Performance Materials | $ | 1.3 | $ | - | $ | 7.5 | $ | 0.7 |
Electronic Materials | 2.6 | 1.8 | 4.6 | 2.4 | ||||
Precision Optics | - | 0.1 | 0.2 | 0.4 | ||||
Other | - | - | - | - | ||||
Total | $ | 3.9 | $ | 1.9 | $ | 12.3 | $ | 3.5 |
Adjusted Gross Margin | ||||||||
Performance Materials | $ | 53.1 | $ | 57.4 | $ | 148.1 | $ | 166.8 |
Electronic Materials | 25.9 | 24.9 | 78.1 | 81.3 | ||||
Precision Optics | 5.8 | 8.5 | 19.1 | 24.7 | ||||
Other | - | - | - | - | ||||
Total | $ | 84.8 | $ | 90.8 | $ | 245.3 | $ | 272.8 |