image_21a.jpg
a2021-02x16_17x35x011a.jpg

MATERION CORPORATION REPORTS FOURTH QUARTER AND FULL-YEAR 2020 FINANCIAL RESULTS AND PROVIDES FIRST QUARTER 2021 EARNINGS GUIDANCE

MAYFIELD HEIGHTS, Ohio – February 18, 2021 - Materion Corporation (NYSE: MTRN) today reported fourth quarter and full-year 2020 financial results, provided first quarter 2021 earnings guidance, and provided an update on key strategic initiatives.

Fourth Quarter 2020 Highlights

Net sales were $339.7 million compared to $287.2 million in the third quarter; value-added sales increased 14% sequentially to $190.8 million

Net income of $0.39 per share, diluted; adjusted earnings of $0.70 per share (including a $.06 per share increase from the change to FIFO accounting), up for the third consecutive quarter

Advanced several key strategic initiatives including:
Completed full quarter of shipments for the new precision clad engineered strip project
Continued Optics Balzers integration, creating a world leader in precision optics
Completed closure of LAC business; and
Finalized restructuring in PAC to streamline operations and improve cost structure

“Our primary concern throughout the global pandemic has been for the health, safety and well-being of our people, while ensuring the continuity of essential operations to deliver for our customers. We continue to be guided by the recommendations of both national and global healthcare organizations in making important COVID-19 decisions,” said Jugal Vijayvargiya, President and Chief Executive Officer.

Mr. Vijayvargiya continued, “I am very pleased with the team’s performance in the fourth quarter, as we delivered sales and earnings growth for the third consecutive quarter and continued to execute on our key strategic initiatives. The significant precision clad engineered strip growth opportunity remains on schedule. To date, we have received $58.8 million of prepayments from the customer in support of our new manufacturing facility. In addition, we made meaningful progress on a number of other strategic initiatives that are important for our future.”

FOURTH QUARTER 2020 RESULTS

Net sales for the fourth quarter of 2020 were $339.7 million, compared to $280.2 million in the prior year fourth quarter. Fourth quarter value-added sales of $190.8 million were up 14% from the third quarter of 2020. Strong performance in the defense and semiconductor end markets,
1
image_31a.jpg



sales to the new precision clad engineered strip customer and final sales of blood glucose test strip products from our LAC business drove the growth on a sequential basis.

Operating profit for the fourth quarter was $6.8 million, and net income was $8.1 million, or $0.39 per diluted share, compared to an operating loss of $0.6 million and net income of $5.5 million in the third quarter. The fourth quarter operating results include a pretax adjustment of $1.6 million of income related to the Company’s decision to change from the last-in, first out (LIFO) method of inventory accounting to the first-in, first out (FIFO) method of inventory accounting. The change was made to reflect more closely the physical flow of goods, to provide more uniformity across a significant majority of the Company’s inventory and to improve comparability with peers. Prior quarters were also adjusted to reflect this accounting change (detailed in the attached tables).

Excluding special items (detailed in the attached tables), adjusted earnings before interest and tax expense were $18.7 million in the fourth quarter, an increase of $4.6 million versus the third quarter, $2.9 million of which resulted from the change from LIFO to FIFO inventory accounting. Improved sales performance was the primary driver of the balance of the increase. Adjusted net income was $14.4 million, or $0.70 per diluted share, an increase of 40% compared to $0.50 per share in the third quarter.

FULL-YEAR 2020 RESULTS

Net sales were $1.2 billion, flat versus 2019. Value-added sales of $678.6 million were down 8% from $733.7 million from the prior year. Strong performance in the semiconductor end market and incremental sales related to the acquisition of Optics Balzers were more than offset by reduced demand throughout 2020 in several of our other key end markets due to the ongoing COVID-19 pandemic, particularly in the aerospace and defense, energy, and industrial end markets.

Operating profit for the full year was $8.2 million, and net income was $15.5 million, or $0.75 per diluted share, compared to operating profit of $70.5 million and net income of $53.4 million, or $2.59 per share, in 2019.

Excluding special items (detailed in the attached tables), adjusted earnings before interest and tax expense were $55.4 million in 2020, down from the prior year amount of $85.8 million. The year over year decrease in earnings was primarily driven by lower volume, partially offset by aggressive cost control efforts. Adjusted net income was $41.8 million, or $2.03 per diluted share, as compared to $3.32 per diluted share in 2019.

OUTLOOK

Predicting full year demand levels continues to be extremely challenging with the ongoing COVID-19 pandemic. As a result, we are providing guidance for the first quarter of 2021. Based on current demand levels, we expect adjusted earnings per diluted share in the first quarter to be in the range of $0.58 to $0.62 per share, an increase of over 50% from the first quarter of 2020.




2
image_31a.jpg


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, February 18, 2021. 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 (877) 407-0778. Callers outside the U.S. can dial (201) 689-8565. A replay of the call will be available until March 4, 2021 by dialing (877) 481-4010 or (919) 882-2331; please reference replay ID number 39478. 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: 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 impact of any U.S. Federal Government shutdowns and 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, including the integration of Optics Balzers; the impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions, including, without limitation, the acquisition of Optics Balzers being accretive in the expected timeframe or at all; our success in 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 financing 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 on operations from,
3
image_31a.jpg


and other effects of, catastrophic and other extraordinary events including the COVID-19 pandemic; and the risk factors set forth in Part 1, Item 1A of our 2019 Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the second quarter 2020.

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.

Investor Contact: Media Contact:
Stephen F. Shamrock John G. McCloskey
(216) 383-4010 (216) 383-6835
stephen.shamrock@materion.com john.mccloskey@materion.com
https://materion.com
Mayfield Hts-g
4
image_31a.jpg


Attachment 1
Materion Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)

Fourth Quarter EndedYear Ended
(In thousands except per share amounts)December 31, 2020December 31, 2019*December 31, 2020December 31, 2019*
Net sales$339,689 $280,161 $1,176,274 $1,185,424 
Cost of sales283,892 225,679 983,641 922,734 
Gross margin55,797 54,482 192,633 262,690 
Selling, general, and administrative expense34,671 31,397 133,963 147,164 
Research and development expense6,179 5,207 20,283 18,271 
Goodwill impairment charges — 9,053 11,560 
Asset impairment charges(294)— 1,419 2,581 
Restructuring expense4,093 — 11,237 785 
Other — net4,320 1,829 8,463 11,783 
Operating profit6,828 16,049 8,215 70,546 
Other non-operating (income) expense—net(1,068)(53)(3,939)3,431 
Interest expense — net1,040 177 3,879 1,579 
Income before income taxes6,856 15,925 8,275 65,536 
Income tax (benefit) expense(1,210)1,579 (7,187)12,142 
Net income$8,066 $14,346 $15,462 $53,394 
Basic earnings per share:
Net income per share of common stock$0.40 $0.70 $0.76 $2.62 
Diluted earnings per share:
Net income per share of common stock$0.39 $0.69 $0.75 $2.59 
Weighted-average number of shares of common stock outstanding:
Basic20,328 20,404 20,338 20,365 
Diluted20,606 20,692 20,603 20,655 
*Prior periods have been adjusted to reflect the change in inventory method, as described in the attached press release.





















5
image_31a.jpg


Attachment 2
Materion Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(Thousands)December 31, 2020December 31, 2019*
Assets
Current assets
Cash and cash equivalents$25,878 $125,007 
Accounts receivable, net166,447 154,751 
Inventories, net250,778 236,253 
Prepaid and other current assets20,896 21,736 
Total current assets463,999 537,747 
Deferred income taxes3,134 1,666 
Property, plant, and equipment998,312 916,965 
Less allowances for depreciation, depletion, and amortization(688,626)(684,689)
Property, plant, and equipment—net309,686 232,276 
Operating lease, right-of-use assets62,089 23,413 
Intangible assets54,672 6,380 
Other assets19,364 17,937 
Goodwill144,916 79,011 
Total Assets$1,057,860 $898,430 
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt$1,937 $868 
Accounts payable55,640 43,206 
Salaries and wages18,809 41,167 
Other liabilities and accrued items40,887 32,477 
Income taxes1,898 1,342 
Unearned revenue7,713 3,380 
Total current liabilities126,884 122,440 
Other long-term liabilities14,313 11,560 
Operating lease liabilities56,761 18,091 
Finance lease liabilities20,539 17,424 
Retirement and post-employment benefits41,877 32,466 
Unearned income86,761 32,891 
Long-term income taxes2,689 3,451 
Deferred income taxes15,864 13,104 
Long-term debt36,542 1,260 
Shareholders’ equity655,630 645,743 
Total Liabilities and Shareholders’ Equity$1,057,860 $898,430 
*Prior periods have been adjusted to reflect the change in inventory method, as described in the attached press release.








6
image_31a.jpg



Attachment 3
Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
(Thousands)20202019*
Cash flows from operating activities:
Net income$15,462 $53,394 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, depletion, and amortization42,384 41,116 
Amortization of deferred financing costs in interest expense790 962 
Stock-based compensation expense (non-cash)
5,528 7,170 
Amortization of pension and post-retirement costs(151)386 
Loss on sale of property, plant, and equipment466 344 
Deferred income tax (benefit) expense(9,850)3,945 
Impairment charges10,472 14,141 
Net pension curtailments and settlements94 3,328 
Changes in assets and liabilities, net of acquired assets and liabilities:
Decrease (increase) in accounts receivable
(707)(23,933)
Decrease (increase) in inventory(1,288)20,485 
Decrease (increase) in prepaid and other current assets2,475 869 
Increase (decrease) in accounts payable and accrued expenses(21,877)(18,575)
Increase (decrease) in unearned revenue2,935 (2,538)
Increase (decrease) in interest and taxes payable
(157)(805)
Increase (decrease) in unearned income due to customer prepayments54,103 4,733 
Domestic pension plan contributions (4,500)
Other-net378 (1,300)
Net cash provided by operating activities101,057 99,222 
Cash flows from investing activities:
Payments for acquisition, net of cash acquired(130,715)— 
Payments for purchase of property, plant, and equipment(67,274)(24,251)
Payments for mine development (2,277)
Proceeds from settlement of currency exchange contract3,249 — 
Proceeds from sale of property, plant, and equipment33 44 
Net cash used in investing activities(194,707)(26,484)
Cash flows from financing activities:
Short-term debt under revolving credit agreement, net34,000 — 
Repayment of long-term debt(20,634)(823)
Principal payments under finance lease obligations(2,213)(1,200)
Cash dividends paid(9,257)(8,856)
Deferred financing costs (2,130)
Repurchase of common stock(6,766)(199)
Payments of withholding taxes for stock-based compensation awards(2,221)(4,846)
Net cash used in financing activities(7,091)(18,054)
Effects of exchange rate changes1,612 (322)
Net change in cash and cash equivalents(99,129)54,362 
Cash and cash equivalents at beginning of period125,007 70,645 
Cash and cash equivalents at end of period$25,878 $125,007 
*Prior periods have been adjusted to reflect the change in inventory method, as described in the attached press release.
7
image_31a.jpg


Attachment 4
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBIT
(Unaudited)
Fourth Quarter EndedThird Quarter EndedYear Ended
(Millions)December 31, 2020December 31, 2019*September 25, 2020*December 31, 2020December 31, 2019*
Net Sales
Performance Alloys and Composites$102.3 $107.2 $91.2 $394.2 $500.2 
Advanced Materials195.0 148.8 165.6 670.9 573.8 
Precision Optics42.4 24.2 30.4 111.2 111.4 
Other— — — — — 
 Total$339.7 $280.2 $287.2 $1,176.3 $1,185.4 
 Less: Pass-through Metal Cost
Performance Alloys and Composites$12.3 $15.9 $9.3 $48.9 $72.1 
Advanced Materials132.6 96.0 108.0 436.9 349.5 
Precision Optics3.6 5.0 2.1 9.3 24.1 
Other0.4 0.8 0.3 2.6 6.0 
 Total$148.9 $117.7 $119.7 $497.7 $451.7 
 Value-added Sales (non-GAAP)
Performance Alloys and Composites$90.0 $91.3 $81.9 $345.3 $428.1 
Advanced Materials62.4 52.8 57.6 234.0 224.3 
Precision Optics38.8 19.2 28.3 101.9 87.3 
Other(0.4)(0.8)(0.3)(2.6)(6.0)
 Total$190.8 $162.5 $167.5 $678.6 $733.7 
Gross Margin
Performance Alloys and Composites$20.9 $28.8 $16.3 $82.0 $151.6 
Advanced Materials20.9 17.1 18.7 73.8 78.6 
Precision Optics13.8 7.0 10.2 37.2 35.8 
Other0.2 1.6 0.1 (0.4)(3.3)
 Total$55.8 $54.5 $45.3 $192.6 $262.7 
Operating Profit (Loss)
Performance Alloys and Composites$3.7 $13.0 $(0.4)$13.6 $73.8 
Advanced Materials6.7 5.4 5.7 22.1 25.1 
Precision Optics1.7 1.6 1.4 (4.4)(3.5)
Other(5.3)(3.9)(7.3)(23.1)(24.9)
 Total$6.8 $16.1 $(0.6)$8.2 $70.5 
*Prior periods have been adjusted to reflect the change in inventory method, as described in the attached press release.
8
image_31a.jpg


Fourth Quarter EndedThird Quarter EndedYear Ended
(Millions)December 31, 2020December 31, 2019*September 25, 2020*December 31, 2020December 31, 2019*
Special Items
Performance Alloys and Composites$8.1 $— $9.9 $25.8 $— 
Advanced Materials0.5 — 0.1 1.3 — 
Precision Optics2.5 — 1.9 15.5 14.5 
Other(0.3)0.5 1.7 0.7 0.9 
 Total$10.8 $0.5 $13.6 $43.3 $15.4 
Operating Profit (Loss) Excluding Special Items
Performance Alloys and Composites$11.8 $13.0 $9.5 $39.4 $73.8 
Advanced Materials7.2 5.4 5.8 23.4 25.1 
Precision Optics4.2 1.6 3.3 11.1 11.0 
Other(5.6)(3.4)(5.6)(22.4)(24.0)
 Total$17.6 $16.6 $13.0 $51.5 $85.9 
Non-Operating (Income) Expense
Performance Alloys and Composites$0.1 $0.1 $0.2 $0.6 $0.7 
Advanced Materials— — — 0.1 — 
Precision Optics(0.1)— (0.2)(0.3)— 
Other(1.1)(0.2)(1.1)(4.3)2.7 
 Total$(1.1)$(0.1)$(1.1)$(3.9)$3.4 
Non-Operating (Income) Expense Special Items
Other$— $— $— $— $3.3 
Total$— $— $— $— $3.3 
EBIT Excluding Special Items
Performance Alloys and Composites$11.7 $12.9 $9.3 $38.8 $73.1 
Advanced Materials7.2 5.4 5.8 23.3 25.1 
Precision Optics4.3 1.6 3.5 11.4 11.0 
Other(4.5)(3.2)(4.5)(18.1)(23.4)
 Total$18.7 $16.7 $14.1 $55.4 $85.8 
*Prior periods have been adjusted to reflect the change in inventory method, as described in the attached press release.

The cost of gold, silver, platinum, palladium, and copper 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.
9
image_31a.jpg


Attachment 5
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures - Profitability
(Unaudited)
Fourth Quarter EndedThird Quarter EndedYear Ended
(Millions except per share amounts)December 31, 2020December 31, 2019*September 25, 2020*December 31, 2020December 31, 2019*
GAAP as Reported
Net sales$339.7 $280.2 $287.2 $1,176.3 $1,185.4 
Operating profit (loss)6.8 16.1 (0.6)8.2 70.5 
Non-operating (income) expense(1.1)(0.1)(1.1)(3.9)3.4 
Net income8.1 14.3 5.5 15.5 53.4 
Shares outstanding - Diluted20,606 20,692 20,592 20,603 20,655 
EPS - Diluted$0.39 $0.69 $0.27 $0.75 $2.59 
Operating Profit Special Items
Impairment charges$(0.3)$— $— $10.5 $14.1 
Mine development costs5.6 — 7.3 12.9 — 
Forfeiture of non-cash stock-based compensation(0.6)— (1.5)(2.1)— 
Non-cash inventory adjustment— — — 1.3 — 
Cost reduction initiatives4.5 — 2.6 11.7 0.8 
COVID-19 related costs0.4 — 0.8 4.1 — 
Merger and acquisition costs1.0 0.4 5.5 8.0 0.4 
Foreign currency hedge gain— — (1.1)(3.3)— 
Legacy legal & environmental costs0.2 0.1 — 0.2 0.1 
Total Operating Profit Special Items$10.8 $0.5 $13.6 $43.3 $15.4 
Operating Profit Special Items - net of tax$8.3 $0.4 $10.6 $33.4 $12.7 
Non-Operating Expense Special Items$— $— $— $— $3.3 
Non-Operating Expense Special Items - net of tax$— $— $— $— $2.6 
Tax Special Items$(2.0)$(1.1)$(5.8)$(7.1)$(0.1)
Special items per diluted share$0.31 $(0.03)$0.23 $1.28 $0.73 
Non-GAAP Measures - Adjusted Profitability
Value-added (VA) sales$190.8 $162.5 $167.5 $678.6 $733.7 
Operating profit17.6 16.6 13.0 51.5 85.9 
Operating profit % of VA9.2 %10.2 %7.8 %7.6 %11.7 %
EBIT18.7 16.7 14.1 55.4 85.8 
EBIT % of VA9.8 %10.3 %8.4 %8.2 %11.7 %
Net income14.4 13.6 10.3 41.8 68.6 
EPS - Diluted$0.70 $0.66 $0.50 $2.03 $3.32 
*Prior periods have been adjusted to reflect the change in inventory method, as described in the attached press release.
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 and taxes (EBIT), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 4, we have adjusted the results for certain special items such as non-cash impairment charges, mine development costs, forfeiture of certain non-cash stock-based compensation, non-cash inventory adjustments, cost reduction initiatives (i.e., severance), COVID-19 related costs, merger and acquisition costs, foreign currency hedge gains, legacy legal and environmental costs, and certain discrete income tax items from the applicable GAAP financial measure. 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.
10
image_31a.jpg


Attachment 6
Materion Corporation and Subsidiaries
Value-added sales by Market
(Unaudited)
Fourth Quarter EndedYear Ended
(Millions)December 31, 2020December 31, 2019 % ChangeDecember 31, 2020December 31, 2019% Change
Materion Corporation
Semiconductor$43.1 $35.8 20.4 %$161.8 $144.2 12.2 %
Industrial33.9 28.2 20.2 %124.1 133.1 (6.8)%
Aerospace and Defense24.6 34.8 (29.3)%87.0 127.0 (31.5)%
Consumer Electronics17.7 15.7 12.7 %57.6 65.8 (12.5)%
Automotive17.2 13.7 25.5 %58.1 59.7 (2.7)%
Energy12.1 14.2 (14.8)%49.1 70.1 (30.0)%
Telecom and Data Center9.5 9.5 — %38.2 54.1 (29.4)%
Other32.7 10.6 208.5 %102.7 79.7 28.9 %
    Total$190.8 $162.5 17.4 %$678.6 $733.7 (7.5)%
Performance Alloys and Composites
Semiconductor$1.1 $0.8 4.2 %$4.2 $5.2 (19.2)%
Industrial20.1 21.0 (4.3)%84.1 96.8 (13.1)%
Aerospace and Defense19.628.1(30.2)%64.2103.4(37.9)%
Consumer Electronics9.610.9(11.9)%45.047.3(4.9)%
Automotive13.211.613.8 %48.851.9(6.0)%
Energy3.37.4(55.4)%18.436.7(49.9)%
Telecom and Data Center9.59.23.3 %37.753.3(29.3)%
Other13.62.3491.3 %42.933.528.1 %
    Total$90.0 $91.3 (1.4)%$345.3 $428.1 (19.3)%
Advanced Materials
Semiconductor$42.0 $34.5 21.7 %$157.1 $138.4 13.5 %
Industrial6.4 4.3 48.8 %21.9 22.0 (0.5)%
Aerospace and Defense0.70.9(22.2)%3.22.910.3 %
Consumer Electronics0.10.1— %0.20.3(33.3)%
Automotive1.52.0(25.0)%5.86.8(14.7)%
Energy8.86.927.5 %30.633.4(8.4)%
Telecom and Data Center0.3(100.0)%0.50.8(37.5)%
Other2.93.8(23.7)%14.719.7(25.4)%
    Total$62.4 $52.8 18.2 %$234.0 $224.3 4.3 %
Precision Optics
Semiconductor$— $0.5 (100.0)%$0.5 $0.7 (28.6)%
Industrial7.4 2.9 155.2 %18.1 14.3 26.6 %
Aerospace and Defense4.4 5.8 (24.1)%19.5 20.7 (5.8)%
Consumer Electronics8.1 4.7 72.3 %21.6 18.2 18.7 %
Automotive2.4 0.1 2,300.0 %3.5 1.0 250.0 %
Energy— — — %— — — %
Telecom and Data Center— — — %— — — %
Other16.5 5.2 217.3 %38.7 32.4 19.4 %
    Total$38.8 $19.2 102.1 %$101.9 $87.3 16.7 %
Eliminations$(0.4)$(0.8)$(2.6)$(6.0)
11
image_31a.jpg



Attachment 7
Quarterly Data LIFO vs. FIFO
(Unaudited)
(Thousands except per share amounts)
First Quarter 2020Second Quarter 2020
Selected ItemsPreviously ReportedAs AdjustedAdjustmentPreviously ReportedAs AdjustedAdjustment
Cost of sales$232,371 $233,376 $1,005 $223,378 $224,513 $1,135 
Gross margin45,575 44,570 (1,005)48,090 46,955 (1,135)
Operating (loss) profit(4,563)(5,568)(1,005)8,706 7,571 (1,135)
(Loss) Income before income taxes(3,865)(4,870)(1,005)8,298 7,163 (1,135)
Income tax (benefit) expense(762)(992)(230)1,620 1,360 (260)
Net (loss) income(3,103)(3,878)(775)6,678 5,803 (875)
Basic earnings per share:
Net (loss) income per share of common stock$(0.15)$(0.19)$(0.04)$0.33 $0.29 $(0.04)
Diluted earnings per share:
Net (loss) income per share of common stock$(0.15)$(0.19)$(0.04)$0.32 $0.28 $(0.04)
Third Quarter 2020Fourth Quarter 2020
Selected ItemsPreviously ReportedAs AdjustedAdjustmentAs Computed Under LIFOAs ReportedDifference
Cost of sales$240,531 $241,860 $1,329 $285,442 $283,892 $(1,550)
Gross margin46,640 45,311 (1,329)54,247 55,797 1,550 
Operating (loss) profit713 (616)(1,329)5,278 6,828 1,550 
(Loss) Income before income taxes455 (874)(1,329)5,306 6,856 1,550 
Income tax (benefit) expense(6,041)(6,345)(304)(1,565)(1,210)355 
Net income6,496 5,471 (1,025)6,871 8,066 1,195 
Basic earnings per share:
Net income per share of common stock$0.32 $0.27 $(0.05)$0.34 $0.40 $0.06 
Diluted earnings per share:
Net income per share of common stock$0.32 $0.27 $(0.05)$0.33 $0.39 $0.06 

First Quarter 2019Second Quarter 2019
Selected ItemsPreviously ReportedAs AdjustedAdjustmentPreviously ReportedAs AdjustedAdjustment
Cost of sales$232,129 $231,835 $(294)$228,249 $225,846 $(2,403)
Gross margin69,312 69,606 294 69,594 71,997 2,403 
Operating profit21,387 21,681 294 22,750 25,153 2,403 
Income before income taxes20,676 20,970 294 19,138 21,541 2,403 
Income tax expense3,770 3,837 67 3,598 4,148 550 
Net income16,906 17,133 227 15,540 17,393 1,853 
Basic earnings per share:
Net income per share of common stock$0.83 $0.85 $0.02 $0.76 $0.85 $0.09 
Diluted earnings per share:
Net income per share of common stock$0.82 $0.83 $0.01 $0.75 $0.84 $0.09 
Third Quarter 2019Fourth Quarter 2019
Selected ItemsPreviously ReportedAs AdjustedAdjustmentPreviously ReportedAs AdjustedAdjustment
Cost of sales$240,748 $239,374 $(1,374)$225,154 $225,679 $525 
Gross margin65,231 66,605 1,374 55,007 54,482 (525)
Operating profit6,289 7,663 1,374 16,574 16,049 (525)
Income before income taxes5,726 7,100 1,374 16,450 15,925 (525)
Income tax expense2,263 2,578 315 1,699 1,579 (120)
Net income3,463 4,522 1,059 14,751 14,346 (405)
Basic earnings per share:
Net income per share of common stock$0.17 $0.22 $0.05 $0.72 $0.70 $(0.02)
Diluted earnings per share:
Net income per share of common stock$0.17 $0.22 $0.05 $0.71 $0.69 $(0.02)
12
image_31a.jpg

View differences made from one to another to evaluate Materion Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Materion Corp.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account