Ohio | 34-1919973 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, no par value | MTRN | New York Stock Exchange |
Item 1. Financial Statements |
Second Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
(Thousands, except per share amounts) | July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021 | ||||||||||||||||||||||
Net sales | $ | 445,295 | $ | 370,999 | $ | 894,340 | $ | 725,385 | ||||||||||||||||||
Cost of sales | 357,868 | 301,418 | 731,622 | 589,008 | ||||||||||||||||||||||
Gross margin | 87,427 | 69,581 | 162,718 | 136,377 | ||||||||||||||||||||||
Selling, general, and administrative expense | 42,047 | 38,060 | 83,708 | 74,836 | ||||||||||||||||||||||
Research and development expense | 7,592 | 6,604 | 14,666 | 12,810 | ||||||||||||||||||||||
Restructuring expense (income) | — | — | 1,076 | (378) | ||||||||||||||||||||||
Other—net | 5,928 | 4,194 | 11,801 | 8,668 | ||||||||||||||||||||||
Operating profit | 31,860 | 20,723 | 51,467 | 40,441 | ||||||||||||||||||||||
Other non-operating income—net | (1,168) | (1,277) | (2,337) | (2,553) | ||||||||||||||||||||||
Interest expense—net | 4,701 | 858 | 8,437 | 1,619 | ||||||||||||||||||||||
Income before income taxes | 28,327 | 21,142 | 45,367 | 41,375 | ||||||||||||||||||||||
Income tax expense | 5,072 | 3,274 | 8,093 | 6,740 | ||||||||||||||||||||||
Net income | $ | 23,255 | $ | 17,868 | $ | 37,274 | $ | 34,635 | ||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||
Net income per share of common stock | $ | 1.13 | $ | 0.87 | $ | 1.82 | $ | 1.70 | ||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||
Net income per share of common stock | $ | 1.12 | $ | 0.87 | $ | 1.80 | $ | 1.68 | ||||||||||||||||||
Weighted-average number of shares of common stock outstanding: | ||||||||||||||||||||||||||
Basic | 20,517 | 20,429 | 20,491 | 20,402 | ||||||||||||||||||||||
Diluted | 20,723 | 20,651 | 20,743 | 20,647 |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 294,268 | $ | 249,619 | $ | 830,779 | $ | 734,906 | ||||||||
Cost of sales | 239,065 | 198,864 | 678,023 | 595,488 | ||||||||||||
Gross margin | 55,203 | 50,755 | 152,756 | 139,418 | ||||||||||||
Selling, general, and administrative expense | 36,415 | 34,177 | 108,118 | 97,101 | ||||||||||||
Research and development expense | 3,429 | 3,237 | 10,103 | 9,860 | ||||||||||||
Other—net | 3,801 | 3,190 | 9,823 | 8,997 | ||||||||||||
Operating profit | 11,558 | 10,151 | 24,712 | 23,460 | ||||||||||||
Interest expense—net | 533 | 490 | 1,721 | 1,417 | ||||||||||||
Income before income taxes | 11,025 | 9,661 | 22,991 | 22,043 | ||||||||||||
Income tax expense | 1,705 | 1,616 | 3,308 | 3,081 | ||||||||||||
Net income | $ | 9,320 | $ | 8,045 | $ | 19,683 | $ | 18,962 | ||||||||
Basic earnings per share: | ||||||||||||||||
Net income per share of common stock | $ | 0.47 | $ | 0.40 | $ | 0.98 | $ | 0.95 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Net income per share of common stock | $ | 0.46 | $ | 0.40 | $ | 0.97 | $ | 0.94 | ||||||||
Cash dividends per share | $ | 0.100 | $ | 0.095 | $ | 0.295 | $ | 0.280 | ||||||||
Weighted-average number of shares of common stock outstanding: | ||||||||||||||||
Basic | 20,040 | 19,957 | 20,007 | 19,996 | ||||||||||||
Diluted | 20,411 | 20,192 | 20,361 | 20,209 |
Second Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
July 1, | July 2, | July 1, | July 2, | |||||||||||||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net income | $ | 23,255 | $ | 17,868 | $ | 37,274 | $ | 34,635 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Foreign currency translation adjustment | (6,343) | 3,193 | (8,390) | (5,664) | ||||||||||||||||||||||
Derivative and hedging activity, net of tax | 1,894 | (273) | 4,164 | 972 | ||||||||||||||||||||||
Pension and post-employment benefit adjustment, net of tax | 16 | 83 | (224) | 247 | ||||||||||||||||||||||
Other comprehensive income (loss) | (4,433) | 3,003 | (4,450) | (4,445) | ||||||||||||||||||||||
Comprehensive income | $ | 18,822 | $ | 20,871 | $ | 32,824 | $ | 30,190 |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 9,320 | $ | 8,045 | $ | 19,683 | $ | 18,962 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 271 | 467 | 1,649 | 2,918 | ||||||||||||
Derivative and hedging activity, net of tax | (120 | ) | 132 | (755 | ) | (489 | ) | |||||||||
Pension and post-employment benefit adjustment, net of tax | 881 | 673 | 2,397 | 2,923 | ||||||||||||
Other comprehensive income | 1,032 | 1,272 | 3,291 | 5,352 | ||||||||||||
Comprehensive income | $ | 10,352 | $ | 9,317 | $ | 22,974 | $ | 24,314 |
July 1, | Dec. 31, | |||||||||||||
(Thousands) | 2022 | 2021 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 32,175 | $ | 14,462 | ||||||||||
Accounts receivable, net | 222,811 | 223,553 | ||||||||||||
Inventories, net | 422,376 | 361,115 | ||||||||||||
Prepaid and other current assets | 29,606 | 28,122 | ||||||||||||
Total current assets | 706,968 | 627,252 | ||||||||||||
Deferred income taxes | 5,018 | 5,431 | ||||||||||||
Property, plant, and equipment | 1,164,273 | 1,132,223 | ||||||||||||
Less allowances for depreciation, depletion, and amortization | (739,776) | (723,248) | ||||||||||||
Property, plant, and equipment, net | 424,497 | 408,975 | ||||||||||||
Operating lease, right-of-use assets | 68,045 | 63,096 | ||||||||||||
Intangible assets, net | 148,364 | 156,736 | ||||||||||||
Other assets | 30,228 | 27,369 | ||||||||||||
Goodwill | 319,994 | 318,620 | ||||||||||||
Total Assets | $ | 1,703,114 | $ | 1,607,479 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term debt | $ | 15,333 | $ | 15,359 | ||||||||||
Accounts payable | 113,708 | 86,243 | ||||||||||||
Salaries and wages | 22,239 | 37,544 | ||||||||||||
Other liabilities and accrued items | 49,148 | 53,388 | ||||||||||||
Income taxes | 1,700 | 4,205 | ||||||||||||
Unearned revenue | 8,097 | 7,770 | ||||||||||||
Total current liabilities | 210,225 | 204,509 | ||||||||||||
Other long-term liabilities | 15,846 | 14,954 | ||||||||||||
Operating lease liabilities | 62,474 | 57,099 | ||||||||||||
Finance lease liabilities | 14,360 | 16,327 | ||||||||||||
Retirement and post-employment benefits | 30,992 | 33,394 | ||||||||||||
Unearned income | 108,126 | 97,962 | ||||||||||||
Long-term income taxes | 1,206 | 1,190 | ||||||||||||
Deferred income taxes | 28,766 | 27,216 | ||||||||||||
Long-term debt | 481,965 | 434,388 | ||||||||||||
Shareholders’ equity | ||||||||||||||
Serial preferred stock (no par value; 5,000 authorized shares, none issued) | — | — | ||||||||||||
Common stock (no par value; 60,000 authorized shares, issued shares of 27,148 at both July 1st and December 31st) | 281,296 | 271,978 | ||||||||||||
Retained earnings | 725,918 | 693,756 | ||||||||||||
Common stock in treasury | (218,356) | (209,920) | ||||||||||||
Accumulated other comprehensive loss | (44,619) | (40,169) | ||||||||||||
Other equity | 4,915 | 4,795 | ||||||||||||
Total shareholders' equity | 749,154 | 720,440 | ||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,703,114 | $ | 1,607,479 |
(Unaudited) | ||||||||
Sept. 29, | Dec. 31, | |||||||
(Thousands) | 2017 | 2016 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 22,486 | $ | 31,464 | ||||
Accounts receivable | 125,417 | 100,817 | ||||||
Inventories | 220,223 | 200,865 | ||||||
Prepaid and other current assets | 19,115 | 12,138 | ||||||
Total current assets | 387,241 | 345,284 | ||||||
Long-term deferred income taxes | 40,332 | 39,409 | ||||||
Property, plant, and equipment | 877,002 | 861,267 | ||||||
Less allowances for depreciation, depletion, and amortization | (632,435 | ) | (608,636 | ) | ||||
Property, plant, and equipment—net | 244,567 | 252,631 | ||||||
Intangible assets | 10,771 | 11,074 | ||||||
Other assets | 6,312 | 5,950 | ||||||
Goodwill | 89,720 | 86,950 | ||||||
Total Assets | $ | 778,943 | $ | 741,298 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities | ||||||||
Short-term debt | $ | 767 | $ | 733 | ||||
Accounts payable | 44,678 | 32,533 | ||||||
Salaries and wages | 30,889 | 29,885 | ||||||
Other liabilities and accrued items | 27,950 | 21,340 | ||||||
Income taxes | 2,953 | 4,781 | ||||||
Unearned revenue | 5,859 | 1,105 | ||||||
Total current liabilities | 113,096 | 90,377 | ||||||
Other long-term liabilities | 18,968 | 17,979 | ||||||
Retirement and post-employment benefits | 92,014 | 91,505 | ||||||
Unearned income | 37,991 | 41,369 | ||||||
Long-term income taxes | 1,593 | 2,100 | ||||||
Deferred income taxes | 279 | 274 | ||||||
Long-term debt | 3,010 | 3,605 | ||||||
Shareholders’ equity | ||||||||
Serial preferred stock | — | — | ||||||
Common stock | 219,817 | 212,702 | ||||||
Retained earnings | 531,683 | 517,903 | ||||||
Common stock in treasury | (161,030 | ) | (154,399 | ) | ||||
Accumulated other comprehensive loss | (82,890 | ) | (86,181 | ) | ||||
Other equity transactions | 4,412 | 4,064 | ||||||
Total shareholders' equity | 511,992 | 494,089 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 778,943 | $ | 741,298 |
Nine Months Ended | Six Months Ended | |||||||||||||||||||||
Sept. 29, | Sept. 30, | July 1, | July 2, | |||||||||||||||||||
(Thousands) | 2017 | 2016 | (Thousands) | 2022 | 2021 | |||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 19,683 | $ | 18,962 | Net income | $ | 37,274 | $ | 34,635 | |||||||||||||
Adjustments to reconcile net income to net cash provided from (used in) operating activities: | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
Depreciation, depletion, and amortization | 33,444 | 34,379 | Depreciation, depletion, and amortization | 26,070 | 19,063 | |||||||||||||||||
Amortization of deferred financing costs in interest expense | 670 | 417 | Amortization of deferred financing costs in interest expense | 780 | 364 | |||||||||||||||||
Stock-based compensation expense (non-cash) | 4,303 | 2,880 | Stock-based compensation expense (non-cash) | 3,694 | 3,512 | |||||||||||||||||
(Gain) loss on sale of property, plant, and equipment | 207 | (601 | ) | |||||||||||||||||||
Deferred income tax expense (benefit) | 1,073 | (676 | ) | Deferred income tax expense (benefit) | 1,966 | 367 | ||||||||||||||||
Changes in assets and liabilities net of acquired assets and liabilities: | ||||||||||||||||||||||
Decrease (increase) in accounts receivable | (21,572 | ) | (19,781 | ) | ||||||||||||||||||
Decrease (increase) in inventory | (9,953 | ) | 3,294 | |||||||||||||||||||
Decrease (increase) in prepaid and other current assets | (6,077 | ) | (956 | ) | ||||||||||||||||||
Increase (decrease) in accounts payable and accrued expenses | 17,991 | (2,207 | ) | |||||||||||||||||||
Increase (decrease) in unearned revenue | 4,746 | (2,546 | ) | |||||||||||||||||||
Increase (decrease) in interest and taxes payable | (2,083 | ) | 898 | |||||||||||||||||||
Increase (decrease) in long-term liabilities | (5,611 | ) | (9,320 | ) | ||||||||||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | |||||||||||||||||||||
Accounts receivable | Accounts receivable | (2,566) | (13,941) | |||||||||||||||||||
Inventory | Inventory | (67,304) | (40,651) | |||||||||||||||||||
Prepaid and other current assets | Prepaid and other current assets | (2,462) | (1,718) | |||||||||||||||||||
Accounts payable and accrued expenses | Accounts payable and accrued expenses | 8,897 | 28,403 | |||||||||||||||||||
Unearned revenue | Unearned revenue | (141) | 3,246 | |||||||||||||||||||
Interest and taxes payable | Interest and taxes payable | (1,765) | 2,868 | |||||||||||||||||||
Unearned income due to customer prepayments | Unearned income due to customer prepayments | 13,059 | 8,043 | |||||||||||||||||||
Other-net | (1,324 | ) | 2,479 | Other-net | 3,913 | (126) | ||||||||||||||||
Net cash provided by operating activities | 35,497 | 27,222 | Net cash provided by operating activities | 21,415 | 44,065 | |||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||
Payments for purchase of property, plant, and equipment | (17,759 | ) | (20,052 | ) | Payments for purchase of property, plant, and equipment | (37,730) | (57,712) | |||||||||||||||
Payments for mine development | (620 | ) | (8,934 | ) | ||||||||||||||||||
Payments for acquisition | (16,504 | ) | — | |||||||||||||||||||
Proceeds from sale of property, plant, and equipment | 53 | 1,366 | Proceeds from sale of property, plant, and equipment | 105 | 603 | |||||||||||||||||
Payments for acquisition, net of cash acquired | Payments for acquisition, net of cash acquired | (2,971) | — | |||||||||||||||||||
Net cash used in investing activities | (34,830 | ) | (27,620 | ) | Net cash used in investing activities | (40,596) | (57,109) | |||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from issuance of short-term debt, net | — | 3,777 | ||||||||||||||||||||
Proceeds from borrowings under revolving credit agreement, net | Proceeds from borrowings under revolving credit agreement, net | 52,794 | 22,500 | |||||||||||||||||||
Proceeds from issuance of long-term debt | 55,000 | 10,000 | Proceeds from issuance of long-term debt | 2,059 | — | |||||||||||||||||
Repayment of long-term debt | (55,608 | ) | (10,517 | ) | Repayment of long-term debt | (7,177) | (1,654) | |||||||||||||||
Principal payments under capital lease obligations | (644 | ) | (549 | ) | ||||||||||||||||||
Principal payments under finance lease obligations | Principal payments under finance lease obligations | (1,334) | (1,512) | |||||||||||||||||||
Cash dividends paid | (5,903 | ) | (5,601 | ) | Cash dividends paid | (5,112) | (4,791) | |||||||||||||||
Deferred financing costs | (300 | ) | (1,000 | ) | ||||||||||||||||||
Common shares withheld for taxes | (2,397 | ) | (868 | ) | ||||||||||||||||||
Repurchase of common stock | (1,086 | ) | (3,798 | ) | ||||||||||||||||||
Net cash used in financing activities | (10,938 | ) | (8,556 | ) | ||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | Payments of withholding taxes for stock-based compensation awards | (2,812) | (3,021) | |||||||||||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 38,418 | 11,522 | |||||||||||||||||||
Effects of exchange rate changes | 1,293 | 524 | Effects of exchange rate changes | (1,524) | (11) | |||||||||||||||||
Net change in cash and cash equivalents | (8,978 | ) | (8,430 | ) | Net change in cash and cash equivalents | 17,713 | (1,533) | |||||||||||||||
Cash and cash equivalents at beginning of period | 31,464 | 24,236 | Cash and cash equivalents at beginning of period | 14,462 | 25,878 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 22,486 | $ | 15,806 | Cash and cash equivalents at end of period | $ | 32,175 | $ | 24,345 |
Common Shares | Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||
(Thousands, except per share amounts) | Common Shares | Common Shares Held in Treasury | Common Stock | Retained Earnings | Common Stock in Treasury | Accumulated Other Comprehensive Loss | Other Equity | Total | |||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | 20,511 | (6,637) | $ | 278,589 | $ | 705,255 | $ | (217,549) | $ | (40,186) | $ | 4,855 | $ | 730,964 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 23,255 | — | — | — | 23,255 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | (4,433) | — | (4,433) | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.125 per share) | — | — | — | (2,592) | — | — | — | (2,592) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | 13 | 13 | 2,671 | — | (676) | — | — | 1,995 | |||||||||||||||||||||||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | (1) | (1) | — | — | (95) | — | — | (95) | |||||||||||||||||||||||||||||||||||||||
Directors’ deferred compensation | — | — | 36 | — | (36) | — | 60 | 60 | |||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2022 | 20,523 | (6,625) | $ | 281,296 | $ | 725,918 | $ | (218,356) | $ | (44,619) | $ | 4,915 | $ | 749,154 | |||||||||||||||||||||||||||||||||
Balance at April 2, 2021 | 20,414 | (6,734) | $ | 264,940 | $ | 645,468 | $ | (206,845) | $ | (46,087) | $ | 3,860 | $ | 661,336 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 17,868 | — | — | — | 17,868 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 3,003 | — | 3,003 | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.120 per share) | — | — | — | (2,453) | — | — | — | (2,453) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | 25 | 25 | 3,215 | (32) | (1,144) | — | — | 2,039 | |||||||||||||||||||||||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | (2) | (2) | — | — | (183) | — | — | (183) | |||||||||||||||||||||||||||||||||||||||
Directors’ deferred compensation | 1 | 1 | 50 | — | (682) | — | 723 | 91 | |||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2021 | 20,438 | (6,710) | $ | 268,205 | $ | 660,851 | $ | (208,854) | $ | (43,084) | $ | 4,583 | $ | 681,701 |
Common Shares | Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||
(Thousands, except per share amounts) | Common Shares | Common Shares Held in Treasury | Common Stock | Retained Earnings | Common Stock in Treasury | Accumulated Other Comprehensive Loss | Other Equity | Total | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 20,448 | (6,700) | $ | 271,978 | $ | 693,756 | $ | (209,920) | $ | (40,169) | $ | 4,795 | $ | 720,440 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 37,274 | — | — | — | 37,274 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (4,450) | — | (4,450) | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.245 per share) | — | — | — | (5,112) | — | — | — | (5,112) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | 108 | 108 | 9,243 | — | (5,549) | — | — | 3,694 | |||||||||||||||||||||||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | (34) | (34) | — | — | (2,812) | — | — | (2,812) | |||||||||||||||||||||||||||||||||||||||
Directors’ deferred compensation | 1 | 1 | 75 | — | (75) | — | 120 | 120 | |||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2022 | 20,523 | (6,625) | $ | 281,296 | $ | 725,918 | $ | (218,356) | $ | (44,619) | $ | 4,915 | $ | 749,154 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 20,328 | (6,820) | $ | 258,642 | $ | 631,058 | $ | (199,187) | $ | (38,639) | $ | 3,756 | $ | 655,630 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 34,635 | — | — | — | 34,635 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (4,445) | — | (4,445) | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.235 per share) | — | — | — | (4,791) | — | — | — | (4,791) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | 152 | 152 | 9,474 | (51) | (5,911) | — | — | 3,512 | |||||||||||||||||||||||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | (45) | (45) | — | — | (3,021) | — | — | (3,021) | |||||||||||||||||||||||||||||||||||||||
Directors’ deferred compensation | 3 | 3 | $ | 89 | $ | — | $ | (735) | $ | — | $ | 827 | $ | 181 | |||||||||||||||||||||||||||||||||
Balance at July 2, 2021 | 20,438 | (6,710) | $ | 268,205 | $ | 660,851 | $ | (208,854) | $ | (43,084) | $ | 4,583 | $ | 681,701 |
(Thousands) | Initial Allocation of Consideration | Measurement Period Adjustments | Updated Allocation | |||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 3,685 | $ | — | $ | 3,685 | ||||||||||||||
Accounts receivable | 28,352 | — | 28,352 | |||||||||||||||||
Inventories | 70,681 | — | 70,681 | |||||||||||||||||
Prepaid and other current assets | 660 | (355) | 305 | |||||||||||||||||
Property, plant, and equipment | 44,681 | 355 | 45,036 | |||||||||||||||||
Operating lease, right-of-use assets | 6,120 | — | 6,120 | |||||||||||||||||
Intangible assets | 107,800 | — | 107,800 | |||||||||||||||||
Other long-term assets | 4,528 | — | 4,528 | |||||||||||||||||
Goodwill | 178,181 | 3,688 | 181,869 | |||||||||||||||||
Total assets acquired | $ | 444,688 | $ | 3,688 | $ | 448,376 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 12,139 | $ | — | $ | 12,139 | ||||||||||||||
Salaries and wages | 2,516 | 435 | 2,951 | |||||||||||||||||
Other liabilities and accrued items | 28 | — | 28 | |||||||||||||||||
Income taxes | 2,183 | 79 | 2,262 | |||||||||||||||||
Other long-term liabilities | 5,543 | 215 | 5,758 | |||||||||||||||||
Operating lease liabilities | 6,042 | — | 6,042 | |||||||||||||||||
Deferred income taxes | 20,300 | — | 20,300 | |||||||||||||||||
Total liabilities assumed | $ | 48,751 | $ | 729 | $ | 49,480 | ||||||||||||||
Net assets acquired | $ | 395,937 | $ | 2,959 | $ | 398,896 |
(Thousands) | Amount | ||
Assets: | |||
Inventories | $ | 7,221 | |
Prepaid and other current assets | 1,107 | ||
Long-term deferred income taxes | 1,450 | ||
Property, plant, and equipment | 7,637 | ||
Intangible assets | 3,236 | ||
Goodwill | 2,605 | ||
Total assets acquired | $ | 23,256 | |
Liabilities: | |||
Other liabilities and accrued items | $ | 1,030 | |
Other long-term liabilities | 430 | ||
Retirement and post-employment benefits | 5,292 | ||
Total liabilities assumed | $ | 6,752 | |
Total purchase price | $ | 16,504 |
(Thousands) | Value at Acquisition | Useful Life | ||||
Customer relationships | $ | 1,861 | 15 years | |||
Technology | 1,375 | 3 years | ||||
Total | $ | 3,236 |
(Thousands) | Value at Acquisition | Useful Life | ||||||||||||
Customer relationships | $ | 50,200 | 13 years | |||||||||||
Technology | 35,300 | 13 years | ||||||||||||
Trade name | 22,300 | 15 years | ||||||||||||
Total | $ | 107,800 |
(Unaudited) | ||||||||
Three months ended | Six months ended | |||||||
July 2, 2021 | July 2, 2021 | |||||||
Net Sales | $ | 409,202 | $ | 794,586 | ||||
Profit income (loss) before taxes | $ | 22,138 | $ | 41,135 |
(Thousands) | Performance Alloys and Composites | Advanced Materials | Precision Coatings | Other | Total | |||||||||||||||
Third Quarter 2017 | ||||||||||||||||||||
Net sales | $ | 109,393 | $ | 157,770 | $ | 27,105 | $ | — | $ | 294,268 | ||||||||||
Intersegment sales | 54 | 12,814 | — | — | 12,868 | |||||||||||||||
Value-added sales | 90,637 | 60,391 | 21,896 | (1,542 | ) | 171,382 | ||||||||||||||
Operating profit (loss) | 6,786 | 9,756 | 1,613 | (6,597 | ) | 11,558 | ||||||||||||||
Third Quarter 2016 | ||||||||||||||||||||
Net sales | $ | 103,699 | $ | 107,250 | $ | 38,670 | $ | — | $ | 249,619 | ||||||||||
Intersegment sales | 47 | 21,505 | — | — | 21,552 | |||||||||||||||
Value-added sales | 87,247 | 45,960 | 25,803 | (2,009 | ) | 157,001 | ||||||||||||||
Operating profit (loss) | 4,357 | 8,245 | 3,432 | (5,883 | ) | 10,151 | ||||||||||||||
First Nine Months 2017 | ||||||||||||||||||||
Net sales | $ | 310,487 | $ | 429,550 | $ | 90,742 | $ | — | $ | 830,779 | ||||||||||
Intersegment sales | 113 | 42,508 | — | — | 42,621 | |||||||||||||||
Value-added sales | 262,534 | 169,720 | 67,810 | (3,602 | ) | 496,462 | ||||||||||||||
Operating profit (loss) | 12,523 | 24,873 | 6,145 | (18,829 | ) | 24,712 | ||||||||||||||
First Nine Months 2016 | ||||||||||||||||||||
Net sales | $ | 292,024 | $ | 328,927 | $ | 113,955 | $ | — | $ | 734,906 | ||||||||||
Intersegment sales | 226 | 54,110 | — | — | 54,336 | |||||||||||||||
Value-added sales | 248,799 | 135,019 | 75,548 | (4,573 | ) | 454,793 | ||||||||||||||
Operating profit (loss) | 6,103 | 20,748 | 9,803 | (13,194 | ) | 23,460 |
(Thousands) | Second Quarter 2022 | Second Quarter 2021 | First Six Months Ended 2022 | First Six Months Ended 2021 | ||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||
Performance Materials(1) | $ | 154,889 | $ | 125,294 | $ | 304,520 | $ | 239,437 | ||||||||||||||||||
Electronic Materials(1) | 260,971 | 213,114 | 531,807 | 417,758 | ||||||||||||||||||||||
Precision Optics | 29,435 | 32,591 | 58,013 | 68,190 | ||||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||||
Net sales | 445,295 | 370,999 | 894,340 | 725,385 | ||||||||||||||||||||||
Segment EBITDA: | ||||||||||||||||||||||||||
Performance Materials | $ | 27,229 | $ | 22,318 | $ | 52,021 | $ | 39,110 | ||||||||||||||||||
Electronic Materials | 22,337 | 10,412 | 34,484 | 21,342 | ||||||||||||||||||||||
Precision Optics | 3,544 | 5,547 | 5,735 | 13,018 | ||||||||||||||||||||||
Other | (7,191) | (5,813) | (12,366) | (11,413) | ||||||||||||||||||||||
Total Segment EBITDA | 45,919 | 32,464 | 79,874 | 62,057 | ||||||||||||||||||||||
Income tax expense | 5,072 | 3,274 | 8,093 | 6,740 | ||||||||||||||||||||||
Interest expense - net | 4,701 | 858 | 8,437 | 1,619 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 12,891 | $ | 10,464 | $ | 26,070 | $ | 19,063 | |||||||||||||||||||
Net income | $ | 23,255 | $ | 17,868 | $ | 37,274 | $ | 34,635 |
(Thousands) | Performance Materials | Electronic Materials | Precision Optics | Other | Total | |||||||||||||||||||||||||||
Second Quarter 2022 | ||||||||||||||||||||||||||||||||
End Market | ||||||||||||||||||||||||||||||||
Semiconductor | $ | 2,446 | $ | 213,742 | $ | 1,530 | $ | — | $ | 217,718 | ||||||||||||||||||||||
Industrial | 41,701 | 11,957 | 7,608 | — | 61,266 | |||||||||||||||||||||||||||
Aerospace and defense | 27,615 | 1,284 | 3,666 | — | 32,565 | |||||||||||||||||||||||||||
Consumer electronics | 16,212 | 280 | 5,814 | — | 22,306 | |||||||||||||||||||||||||||
Automotive | 24,855 | 1,465 | 2,708 | — | 29,028 | |||||||||||||||||||||||||||
Energy | 10,679 | 25,361 | — | — | 36,040 | |||||||||||||||||||||||||||
Telecom and data center | 16,223 | 21 | — | — | 16,244 | |||||||||||||||||||||||||||
Other | 15,158 | 6,861 | 8,109 | — | 30,128 | |||||||||||||||||||||||||||
Total | $ | 154,889 | $ | 260,971 | $ | 29,435 | $ | — | $ | 445,295 | ||||||||||||||||||||||
Second Quarter 2021 | ||||||||||||||||||||||||||||||||
End Market | ||||||||||||||||||||||||||||||||
Semiconductor | $ | 1,806 | $ | 166,968 | $ | 563 | $ | — | $ | 169,337 | ||||||||||||||||||||||
Industrial | 30,264 | 10,687 | 7,634 | — | 48,585 | |||||||||||||||||||||||||||
Aerospace and defense | 19,250 | 1,660 | 5,597 | — | 26,507 | |||||||||||||||||||||||||||
Consumer electronics | 10,722 | 266 | 6,964 | — | 17,952 | |||||||||||||||||||||||||||
Automotive | 25,766 | 1,757 | 2,107 | — | 29,630 | |||||||||||||||||||||||||||
Energy | 4,880 | 24,216 | — | — | 29,096 | |||||||||||||||||||||||||||
Telecom and data center | 13,025 | 39 | — | — | 13,064 | |||||||||||||||||||||||||||
Other | 19,581 | 7,521 | 9,726 | — | 36,828 | |||||||||||||||||||||||||||
Total | $ | 125,294 | $ | 213,114 | $ | 32,591 | $ | — | $ | 370,999 |
(Thousands) | Performance Materials | Electronic Materials | Precision Optics | Other | Total | |||||||||||||||||||||||||||
First Six Months 2022 | ||||||||||||||||||||||||||||||||
End Market | ||||||||||||||||||||||||||||||||
Semiconductor | $ | 4,246 | $ | 428,664 | $ | 2,857 | $ | — | $ | 435,767 | ||||||||||||||||||||||
Industrial | 82,520 | 27,823 | 16,041 | — | 126,384 | |||||||||||||||||||||||||||
Aerospace and defense | 51,299 | 3,898 | 8,812 | — | 64,009 | |||||||||||||||||||||||||||
Consumer electronics | 29,215 | 605 | 11,126 | — | 40,946 | |||||||||||||||||||||||||||
Automotive | 47,091 | 3,122 | 5,026 | — | 55,239 | |||||||||||||||||||||||||||
Energy | 20,778 | 54,481 | — | — | 75,259 | |||||||||||||||||||||||||||
Telecom and data center | 32,303 | 65 | — | — | 32,368 | |||||||||||||||||||||||||||
Other | 37,068 | 13,149 | 14,151 | — | 64,368 | |||||||||||||||||||||||||||
Total | $ | 304,520 | $ | 531,807 | $ | 58,013 | $ | — | $ | 894,340 | ||||||||||||||||||||||
First Six Months 2021 | ||||||||||||||||||||||||||||||||
End Market | ||||||||||||||||||||||||||||||||
Semiconductor | $ | 2,803 | $ | 322,029 | $ | 1,034 | $ | — | $ | 325,866 | ||||||||||||||||||||||
Industrial | 54,294 | 23,277 | 15,009 | — | 92,580 | |||||||||||||||||||||||||||
Aerospace and defense | 41,092 | 3,058 | 12,173 | — | 56,323 | |||||||||||||||||||||||||||
Consumer electronics | 20,766 | 431 | 16,424 | — | 37,621 | |||||||||||||||||||||||||||
Automotive | 49,273 | 3,426 | 4,300 | — | 56,999 | |||||||||||||||||||||||||||
Energy | 9,017 | 51,406 | — | — | 60,423 | |||||||||||||||||||||||||||
Telecom and data center | 24,368 | 109 | — | — | 24,477 | |||||||||||||||||||||||||||
Other | 37,824 | 14,022 | 19,250 | — | 71,096 | |||||||||||||||||||||||||||
Total | $ | 239,437 | $ | 417,758 | $ | 68,190 | $ | — | $ | 725,385 |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Metal consignment fees | $ | 2,436 | $ | 1,665 | $ | 6,183 | $ | 4,851 | ||||||||
Amortization of intangible assets | 1,179 | 1,148 | 3,456 | 3,444 | ||||||||||||
Foreign currency exchange/translation loss (gain) | (201 | ) | 336 | (794 | ) | 977 | ||||||||||
Fixed asset impairment | 114 | — | 314 | — | ||||||||||||
Cost reduction initiatives | 189 | — | 189 | — | ||||||||||||
Net loss (gain) on disposal of fixed assets | 60 | 94 | 207 | (601 | ) | |||||||||||
Other items | 24 | (53 | ) | 268 | 326 | |||||||||||
Total | $ | 3,801 | $ | 3,190 | $ | 9,823 | $ | 8,997 |
(Thousands) | July 1, 2022 | December 31, 2021 | $ change | % change | ||||||||||||||||||||||
Accounts receivable, trade | $ | 213,221 | $ | 213,584 | $ | (363) | — | % | ||||||||||||||||||
Unbilled receivables | 8,916 | 7,961 | 955 | 12 | % | |||||||||||||||||||||
Unearned revenue | 8,097 | 7,770 | 327 | 4 | % |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
(Thousands) | Sept. 29, 2017 | Sept. 30, 2016 | Sept. 29, 2017 | Sept. 30, 2016 | ||||||||||||
Cost of sales | $ | 346 | $ | — | $ | 463 | $ | — | ||||||||
Selling, general, and administrative (SG&A) expense | 127 | — | 1,259 | — | ||||||||||||
Other-net | 189 | — | 189 | — | ||||||||||||
Total | $ | 662 | $ | — | $ | 1,911 | $ | — |
Second Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
July 1, | July 2, | July 1, | July 2, | |||||||||||||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Amortization of intangible assets | $ | 3,099 | $ | 1,005 | $ | 6,230 | $ | 2,178 | ||||||||||||||||||
Metal consignment fees | 2,871 | 2,464 | 5,882 | 4,614 | ||||||||||||||||||||||
Foreign currency (gain) loss | 28 | (33) | (305) | 1,216 | ||||||||||||||||||||||
Net loss (gain) on disposal of fixed assets | 29 | 24 | 18 | (364) | ||||||||||||||||||||||
Other items | (99) | 734 | (24) | 1,024 | ||||||||||||||||||||||
Total | $ | 5,928 | $ | 4,194 | $ | 11,801 | $ | 8,668 |
Second Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
July 1, | July 2, | July 1, | July 2, | |||||||||||||||||||||||
(Thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||||||||||||||
Net income | $ | 23,255 | $ | 17,868 | $ | 37,274 | $ | 34,635 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Denominator for basic EPS: | ||||||||||||||||||||||||||
Weighted-average shares outstanding | 20,517 | 20,429 | 20,491 | 20,402 | ||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Stock appreciation rights | 81 | 79 | 86 | 75 | ||||||||||||||||||||||
Restricted stock units | 82 | 93 | 116 | 108 | ||||||||||||||||||||||
Performance-based restricted stock units | 43 | 50 | 50 | 62 | ||||||||||||||||||||||
Diluted potential common shares | 206 | 222 | 252 | 245 | ||||||||||||||||||||||
Denominator for diluted EPS: | ||||||||||||||||||||||||||
Adjusted weighted-average shares outstanding | 20,723 | 20,651 | 20,743 | 20,647 | ||||||||||||||||||||||
Basic EPS | $ | 1.13 | $ | 0.87 | $ | 1.82 | $ | 1.70 | ||||||||||||||||||
Diluted EPS | $ | 1.12 | $ | 0.87 | $ | 1.80 | $ | 1.68 |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||||
Net income | $ | 9,320 | $ | 8,045 | $ | 19,683 | $ | 18,962 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic EPS: | ||||||||||||||||
Weighted-average shares outstanding | 20,040 | 19,957 | 20,007 | 19,996 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock appreciation rights | 149 | 70 | 148 | 66 | ||||||||||||
Restricted stock units | 94 | 82 | 95 | 86 | ||||||||||||
Performance-based restricted stock units | 128 | 83 | 111 | 61 | ||||||||||||
Diluted potential common shares | 371 | 235 | 354 | 213 | ||||||||||||
Denominator for diluted EPS: | ||||||||||||||||
Adjusted weighted-average shares outstanding | 20,411 | 20,192 | 20,361 | 20,209 | ||||||||||||
Basic EPS | $ | 0.47 | $ | 0.40 | $ | 0.98 | $ | 0.95 | ||||||||
Diluted EPS | $ | 0.46 | $ | 0.40 | $ | 0.97 | $ | 0.94 |
Sept. 29, | Dec. 31, | July 1, | December 31, | |||||||||||||||||||
(Thousands) | 2017 | 2016 | (Thousands) | 2022 | 2021 | |||||||||||||||||
Raw materials and supplies | $ | 44,924 | $ | 36,233 | Raw materials and supplies | $ | 115,970 | $ | 93,518 | |||||||||||||
Work in process | 181,553 | 169,327 | Work in process | 253,012 | 221,638 | |||||||||||||||||
Finished goods | 37,671 | 38,147 | Finished goods | 53,394 | 45,959 | |||||||||||||||||
Subtotal | $ | 264,148 | $ | 243,707 | ||||||||||||||||||
Less: LIFO reserve balance | 43,925 | 42,842 | ||||||||||||||||||||
Inventories | $ | 220,223 | $ | 200,865 | ||||||||||||||||||
Inventories, net | Inventories, net | $ | 422,376 | $ | 361,115 |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
Second Quarter Ended | Second Quarter Ended | |||||||||||||||||||||||||
July 1, | July 2, | July 1, | July 2, | |||||||||||||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Components of net periodic benefit (credit) cost | ||||||||||||||||||||||||||
Service cost | $ | 292 | $ | 436 | $ | 20 | $ | 20 | ||||||||||||||||||
Interest cost | 1,213 | 1,048 | 39 | 29 | ||||||||||||||||||||||
Expected return on plan assets | (2,378) | (2,474) | — | — | ||||||||||||||||||||||
Amortization of prior service (benefit) cost | (18) | (21) | (374) | (374) | ||||||||||||||||||||||
Amortization of net loss (gain) | 420 | 577 | (68) | (69) | ||||||||||||||||||||||
Net periodic benefit (credit) cost | $ | (471) | $ | (434) | $ | (383) | $ | (394) | ||||||||||||||||||
Settlements | — | — | — | — | ||||||||||||||||||||||
Total net benefit (credit) cost | $ | (471) | $ | (434) | $ | (383) | $ | (394) |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
July 1, | July 2, | July 1, | July 2, | |||||||||||||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Components of net periodic benefit (credit) cost | ||||||||||||||||||||||||||
Service cost | $ | 610 | $ | 874 | $ | 42 | $ | 40 | ||||||||||||||||||
Interest cost | 2,436 | 2,096 | 78 | 58 | ||||||||||||||||||||||
Expected return on plan assets | (4,778) | (4,948) | — | — | ||||||||||||||||||||||
Amortization of prior service (benefit) cost | (38) | (42) | (748) | (748) | ||||||||||||||||||||||
Amortization of net loss (gain) | 850 | 1,154 | (136) | (138) | ||||||||||||||||||||||
Net periodic benefit (credit) cost | $ | (920) | $ | (866) | $ | (764) | $ | (788) | ||||||||||||||||||
Settlements | — | — | — | — | ||||||||||||||||||||||
Total net benefit (credit) cost | $ | (920) | $ | (866) | $ | (764) | $ | (788) |
Pension Benefits | Other Benefits | |||||||||||||||
Third Quarter Ended | Third Quarter Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Components of net periodic benefit cost (benefit) | ||||||||||||||||
Service cost | $ | 2,106 | $ | 1,946 | $ | 23 | $ | 26 | ||||||||
Interest cost | 2,372 | 2,595 | 99 | 140 | ||||||||||||
Expected return on plan assets | (3,678 | ) | (3,488 | ) | — | — | ||||||||||
Amortization of prior service benefit | (42 | ) | (115 | ) | (374 | ) | (374 | ) | ||||||||
Amortization of net loss | 1,623 | 1,431 | — | — | ||||||||||||
Net periodic benefit cost (benefit) | $ | 2,381 | $ | 2,369 | $ | (252 | ) | $ | (208 | ) | ||||||
Pension Benefits | Other Benefits | |||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Components of net periodic benefit cost (benefit) | ||||||||||||||||
Service cost | $ | 6,188 | $ | 5,838 | $ | 69 | $ | 77 | ||||||||
Interest cost | 7,098 | 7,785 | 297 | 422 | ||||||||||||
Expected return on plan assets | (11,007 | ) | (10,464 | ) | — | — | ||||||||||
Amortization of prior service benefit | (236 | ) | (345 | ) | (1,122 | ) | (1,122 | ) | ||||||||
Amortization of net loss | 4,821 | 4,292 | — | — | ||||||||||||
Net periodic benefit cost (benefit) | $ | 6,864 | $ | 7,106 | $ | (756 | ) | $ | (623 | ) |
Gains and Losses on Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands) | Foreign Currency | Interest Rate | Precious Metals | Copper | Total | Pension and Post-Employment Benefits | Foreign Currency Translation | Total | ||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | 2,451 | $ | 2,485 | $ | (246) | $ | — | $ | 4,690 | $ | (39,942) | $ | (4,934) | $ | (40,186) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,117 | 756 | 467 | — | 2,340 | — | (6,343) | (4,003) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (110) | 238 | (8) | — | 120 | (10) | — | 110 | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income before tax | 1,007 | 994 | 459 | — | 2,460 | (10) | (6,343) | (3,893) | ||||||||||||||||||||||||||||||||||||||||||
Deferred taxes | 232 | 229 | 105 | — | 566 | (26) | — | 540 | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income after tax | 775 | 765 | 354 | — | 1,894 | 16 | (6,343) | (4,433) | ||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2022 | $ | 3,226 | $ | 3,250 | $ | 108 | $ | — | $ | 6,584 | $ | (39,926) | $ | (11,277) | $ | (44,619) | ||||||||||||||||||||||||||||||||||
Balance at April 2, 2021 | $ | 1,462 | $ | — | $ | 320 | $ | 280 | $ | 2,062 | $ | (43,309) | $ | (4,840) | $ | (46,087) | ||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | 183 | — | (239) | 1,145 | 1,089 | — | 3,193 | 4,282 | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 65 | (1,507) | (1,442) | 77 | — | (1,365) | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income before tax | 183 | — | (174) | (362) | (353) | 77 | 3,193 | 2,917 | ||||||||||||||||||||||||||||||||||||||||||
Deferred taxes | 42 | 0 | (40) | (82) | (80) | (6) | — | (86) | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income after tax | 141 | — | (134) | (280) | (273) | 83 | 3,193 | 3,003 | ||||||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2021 | $ | 1,603 | $ | — | $ | 186 | $ | — | $ | 1,789 | $ | (43,226) | $ | (1,647) | $ | (43,084) |
Gains and Losses on Cash Flow Hedges | ||||||||||||||||||||||||
(Thousands) | Foreign Currency | Precious Metals | Total | Pension and Post-Employment Benefits | Foreign Currency Translation | Total | ||||||||||||||||||
Balance at June 30, 2017 | $ | 1,109 | $ | 93 | $ | 1,202 | $ | (80,842 | ) | $ | (4,282 | ) | $ | (83,922 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | (324 | ) | (205 | ) | (529 | ) | — | 271 | (258 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 433 | (94 | ) | 339 | 1,345 | — | 1,684 |
Gains and Losses on Cash Flow Hedges | ||||||||||||||||||||||||
(Thousands) | Foreign Currency | Precious Metals | Total | Pension and Post-Employment Benefits | Foreign Currency Translation | Total | ||||||||||||||||||
Net current period other comprehensive income (loss) before tax | 109 | (299 | ) | (190 | ) | 1,345 | 271 | 1,426 | ||||||||||||||||
Deferred taxes on current period activity | 41 | (111 | ) | (70 | ) | 464 | — | 394 | ||||||||||||||||
Net current period other comprehensive income (loss) after tax | 68 | (188 | ) | (120 | ) | 881 | 271 | 1,032 | ||||||||||||||||
Balance at September 29, 2017 | $ | 1,177 | $ | (95 | ) | $ | 1,082 | $ | (79,961 | ) | $ | (4,011 | ) | $ | (82,890 | ) | ||||||||
Balance at July 1, 2016 | $ | 958 | $ | — | $ | 958 | $ | (74,546 | ) | $ | (3,037 | ) | $ | (76,625 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | (126 | ) | — | (126 | ) | — | 467 | 341 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 336 | — | 336 | 1,015 | — | 1,351 | ||||||||||||||||||
Net current period other comprehensive income (loss) before tax | 210 | — | 210 | 1,015 | 467 | 1,692 | ||||||||||||||||||
Deferred taxes on current period activity | 78 | — | 78 | 342 | — | 420 | ||||||||||||||||||
Net current period other comprehensive income (loss) after tax | 132 | — | 132 | 673 | 467 | 1,272 | ||||||||||||||||||
Balance at September 30, 2016 | $ | 1,090 | $ | — | $ | 1,090 | $ | (73,873 | ) | $ | (2,570 | ) | $ | (75,353 | ) | |||||||||
Balance at December 31, 2016 | $ | 1,837 | $ | — | $ | 1,837 | $ | (82,358 | ) | $ | (5,660 | ) | $ | (86,181 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | (1,205 | ) | 30 | (1,175 | ) | — | 1,649 | 474 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 219 | (182 | ) | 37 | 3,655 | — | 3,692 | |||||||||||||||||
Net current period other comprehensive income (loss) before tax | (986 | ) | (152 | ) | (1,138 | ) | 3,655 | 1,649 | 4,166 | |||||||||||||||
Deferred taxes on current period activity | (326 | ) | (57 | ) | (383 | ) | 1,258 | — | 875 | |||||||||||||||
Net current period other comprehensive income (loss) after tax | (660 | ) | (95 | ) | (755 | ) | 2,397 | 1,649 | 3,291 | |||||||||||||||
Balance at September 29, 2017 | $ | 1,177 | $ | (95 | ) | $ | 1,082 | $ | (79,961 | ) | $ | (4,011 | ) | $ | (82,890 | ) | ||||||||
Balance at December 31, 2015 | $ | 1,579 | $ | — | $ | 1,579 | $ | (76,796 | ) | $ | (5,488 | ) | $ | (80,705 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | (1,571 | ) | — | (1,571 | ) | — | 2,918 | 1,347 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 793 | — | 793 | 3,045 | — | 3,838 | ||||||||||||||||||
Net current period other comprehensive income (loss) before tax | (778 | ) | — | (778 | ) | 3,045 | 2,918 | 5,185 | ||||||||||||||||
Deferred taxes on current period activity | (289 | ) | — | (289 | ) | 122 | — | (167 | ) | |||||||||||||||
Net current period other comprehensive income (loss) after tax | (489 | ) | — | (489 | ) | 2,923 | 2,918 | 5,352 | ||||||||||||||||
Balance at September 30, 2016 | $ | 1,090 | $ | — | $ | 1,090 | $ | (73,873 | ) | $ | (2,570 | ) | $ | (75,353 | ) |
Gains and Losses on Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands) | Foreign Currency | Interest Rate | Precious Metals | Copper | Total | Pension and Post-Employment Benefits | Foreign Currency Translation | Total | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 2,348 | $ | — | $ | 72 | $ | — | $ | 2,420 | $ | (39,702) | $ | (2,887) | $ | (40,169) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,270 | 3,868 | (53) | — | 5,085 | — | (8,390) | (3,305) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (130) | 353 | 99 | — | 322 | (1,011) | — | (689) | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income before tax | 1,140 | 4,221 | 46 | — | 5,407 | (1,011) | (8,390) | (3,994) | ||||||||||||||||||||||||||||||||||||||||||
Deferred taxes | 262 | 971 | 10 | — | 1,243 | (787) | — | 456 | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income after tax | 878 | 3,250 | 36 | — | 4,164 | (224) | (8,390) | (4,450) | ||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2022 | $ | 3,226 | $ | 3,250 | $ | 108 | $ | — | $ | 6,584 | $ | (39,926) | $ | (11,277) | $ | (44,619) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 519 | $ | — | $ | (170) | $ | 468 | $ | 817 | $ | (43,473) | $ | 4,017 | $ | (38,639) | ||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | 1,268 | — | 502 | 2,436 | 4,206 | — | (5,664) | (1,458) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 140 | — | (39) | (3,041) | (2,940) | 234 | — | (2,706) | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income before tax | 1,408 | — | 463 | (605) | 1,266 | 234 | (5,664) | (4,164) | ||||||||||||||||||||||||||||||||||||||||||
Deferred taxes | 324 | — | 107 | (137) | 294 | (13) | — | 281 | ||||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income after tax | 1,084 | — | 356 | (468) | 972 | 247 | (5,664) | (4,445) | ||||||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2021 | $ | 1,603 | $ | — | $ | 186 | $ | — | $ | 1,789 | $ | (43,226) | $ | (1,647) | $ | (43,084) |
Risk-free interest rate | % | ||||||||
Dividend yield | % | ||||||||
Volatility | % | ||||||||
Expected term (in years) | 4.4 |
(Thousands) | Total Carrying Value in the Consolidated Balance Sheets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | (Thousands) | Total Carrying Value in the Consolidated Balance Sheets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation investments | $ | 2,149 | $ | 1,734 | $ | 2,149 | $ | 1,734 | $ | — | $ | — | $ | — | $ | — | Deferred compensation investments | $ | 2,899 | $ | 4,426 | $ | 2,899 | $ | 4,426 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 149 | 691 | — | — | 149 | 691 | — | — | Foreign currency forward contracts | 2,942 | 3,368 | — | — | 2,942 | 3,368 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | 4,221 | — | — | — | 4,221 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 45 | — | — | — | 45 | — | — | — | Precious metal swaps | 214 | 116 | — | — | 214 | 116 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,343 | $ | 2,425 | $ | 2,149 | $ | 1,734 | $ | 194 | $ | 691 | $ | — | $ | — | Total | $ | 10,276 | $ | 7,910 | $ | 2,899 | $ | 4,426 | $ | 7,377 | $ | 3,484 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation liability | $ | 2,149 | $ | 1,734 | $ | 2,149 | $ | 1,734 | $ | — | $ | — | $ | — | $ | — | Deferred compensation liability | $ | 2,899 | $ | 4,426 | $ | 2,899 | $ | 4,426 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 669 | 1 | — | — | 669 | 1 | — | — | Foreign currency forward contracts | 627 | 136 | — | — | 627 | 136 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 197 | — | — | — | 197 | — | — | — | Precious metal swaps | 76 | 24 | — | — | 76 | 24 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,015 | $ | 1,735 | $ | 2,149 | $ | 1,734 | $ | 866 | $ | 1 | $ | — | $ | — | Total | $ | 3,602 | $ | 4,586 | $ | 2,899 | $ | 4,426 | $ | 703 | $ | 160 | $ | — | $ | — |
September 29, 2017 | December 31, 2016 | July 1, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
(Thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | (Thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Foreign currency forward contracts | |||||||||||||||||||||||||||||||||||||||||
Prepaid and other current assets | Prepaid and other current assets | $ | 14,020 | $ | 533 | $ | 55,063 | $ | 2,132 | |||||||||||||||||||||||||||||||||
Other liabilities and accrued items | Other liabilities and accrued items | 13,466 | 587 | 9,425 | 128 | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts - euro | $ | 14,402 | $ | (11 | ) | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Total | $ | 14,402 | $ | (11 | ) | $ | — | $ | — |
July 1, 2022 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(Thousands) | Notional Amount | Prepaid and other current assets | Other assets | Other liabilities and accrued items | Other long-term liabilities | |||||||||||||||||||||||||||
Foreign currency forward contracts - yen | $ | 4,091 | $ | 453 | $ | 34 | $ | 40 | $ | — | ||||||||||||||||||||||
Foreign currency forward contracts - euro | 31,827 | 1,827 | 95 | — | — | |||||||||||||||||||||||||||
Precious metal swaps | 6,802 | 199 | 15 | 76 | — | |||||||||||||||||||||||||||
Interest rate swap | 100,000 | 1,329 | 2,892 | — | — | |||||||||||||||||||||||||||
Total | $ | 142,720 | $ | 3,808 | $ | 3,036 | $ | 116 | $ | — | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Notional Amount | Prepaid and other current assets | Other assets | Other liabilities and accrued items | Other long-term liabilities | ||||||||||||||||||||||||||||
Foreign currency forward contracts - yen | $ | 3,907 | $ | 131 | $ | 2 | $ | — | $ | — | ||||||||||||||||||||||
Foreign currency forward contracts - euro | 28,412 | 1,102 | — | — | 8 | |||||||||||||||||||||||||||
Precious metal swaps | 6,256 | 116 | — | 24 | — | |||||||||||||||||||||||||||
Total | $ | 38,575 | $ | 1,349 | $ | 2 | $ | 24 | $ | 8 |
September 29, 2017 | December 31, 2016 | |||||||||||||||
(Thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||
Prepaid expenses | ||||||||||||||||
Foreign currency forward contracts - yen | $ | 2,000 | $ | 59 | $ | 2,418 | $ | 239 | ||||||||
Foreign currency forward contracts - euro | 6,829 | 90 | 6,493 | 452 | ||||||||||||
Precious metal swaps | 2,148 | 13 | — | — | ||||||||||||
Total | 10,977 | 162 | 8,911 | 691 | ||||||||||||
Other assets | ||||||||||||||||
Precious metal swaps | 1,932 | 32 | — | — | ||||||||||||
Total | 1,932 | 32 | — | — | ||||||||||||
Other liabilities and accrued items | ||||||||||||||||
Foreign currency forward contracts - euro | 12,689 | (658 | ) | 537 | (1 | ) | ||||||||||
Precious metal swaps | 7,845 | (170 | ) | — | — | |||||||||||
Total | 20,534 | (828 | ) | 537 | (1 | ) | ||||||||||
Other long-term liabilities | ||||||||||||||||
Precious metal swaps | 1,999 | (27 | ) | — | — | |||||||||||
Total | $ | 35,442 | $ | (661 | ) | $ | 9,448 | $ | 690 |
Second Quarter Ended | ||||||||||||||||||||
(Thousands) | July 1, 2022 | July 2, 2021 | ||||||||||||||||||
Hedging relationship | Line item | |||||||||||||||||||
Foreign currency forward contracts | Net sales | $ | (110) | $ | — | |||||||||||||||
Precious metal swaps | Cost of sales | (8) | 65 | |||||||||||||||||
Interest rate swap | Interest expense - net | 238 | — | |||||||||||||||||
Copper swaps | Cost of sales | — | (1,507) | |||||||||||||||||
Total | $ | 120 | $ | (1,442) |
Six Months Ended | ||||||||||||||||||||
(Thousands) | July 1, 2022 | July 2, 2021 | ||||||||||||||||||
Hedging relationship | Line item | |||||||||||||||||||
Foreign currency forward contracts | Net sales | $ | (130) | $ | 140 | |||||||||||||||
Precious metal swaps | Cost of sales | 99 | (39) | |||||||||||||||||
Interest rate swap | Interest expense - net | 353 | — | |||||||||||||||||
Copper swaps | Cost of sales | — | (3,041) | |||||||||||||||||
Total | $ | 322 | $ | (2,940) |
(Thousands) | July 1, 2022 | December 31, 2021 | ||||||||||||
Borrowings under Credit Agreement | $ | 205,091 | $ | 152,296 | ||||||||||
Borrowings under the Term Loan Facility | 292,500 | 300,000 | ||||||||||||
Foreign debt | 4,012 | 2,252 | ||||||||||||
Total debt outstanding | 501,603 | 454,548 | ||||||||||||
Current portion of long-term debt | (15,333) | (15,359) | ||||||||||||
Gross long-term debt | 486,270 | 439,189 | ||||||||||||
Unamortized deferred financing fees | (4,305) | (4,801) | ||||||||||||
Long-term debt | $ | 481,965 | $ | 434,388 | ||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Second Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
(Thousands, except per share data) | 2022 | 2021 | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 445,295 | $ | 370,999 | $ | 74,296 | 20 | % | ||||||||||||||||||||||||||||||||||||||||||
Value-added sales | 277,226 | 207,887 | 69,339 | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin | 87,427 | 69,581 | 17,846 | 26 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin as a % of value-added sales | 32 | % | 33 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative (SG&A) expense | 42,047 | 38,060 | 3,987 | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||
SG&A expense as a % of value-added sales | 15 | % | 18 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development (R&D) expense | 7,592 | 6,604 | 988 | 15 | % | |||||||||||||||||||||||||||||||||||||||||||||
R&D expense as a % of value-added sales | 3 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Restructuring expense | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||
Other—net | 5,928 | 4,194 | 1,734 | 41 | % | |||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 31,860 | 20,723 | 11,137 | 54 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other non-operating (income)—net | (1,168) | (1,277) | 109 | (9) | % | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense—net | 4,701 | 858 | 3,843 | 448 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 28,327 | 21,142 | 7,185 | 34 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 5,072 | 3,274 | 1,798 | 55 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 23,255 | $ | 17,868 | $ | 5,387 | 30 | % | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.12 | $ | 0.87 | $ | 0.25 | 29 | % |
Third Quarter Ended | |||||||||||||||
Sept. 29, | Sept. 30, | $ | % | ||||||||||||
(Thousands, except per share data) | 2017 | 2016 | Change | Change | |||||||||||
Net sales | $ | 294,268 | $ | 249,619 | $ | 44,649 | 18 | % | |||||||
Value-added sales | 171,382 | 157,001 | 14,381 | 9 | % | ||||||||||
Gross margin | 55,203 | 50,755 | 4,448 | 9 | % | ||||||||||
Gross margin as a % of value-added sales | 32 | % | 32 | % | N/A | N/A | |||||||||
Selling, general, and administrative (SG&A) expense | 36,415 | 34,177 | 2,238 | 7 | % | ||||||||||
SG&A expense as a % of value-added sales | 21 | % | 22 | % | N/A | N/A | |||||||||
Research and development (R&D) expense | 3,429 | 3,237 | 192 | 6 | % | ||||||||||
R&D expense as a % of value-added sales | 2 | % | 2 | % | N/A | N/A | |||||||||
Other—net | 3,801 | 3,190 | 611 | 19 | % | ||||||||||
Operating profit | 11,558 | 10,151 | 1,407 | 14 | % | ||||||||||
Interest expense—net | 533 | 490 | 43 | 9 | % | ||||||||||
Income before income taxes | 11,025 | 9,661 | 1,364 | 14 | % | ||||||||||
Income tax expense | 1,705 | 1,616 | 89 | 6 | % | ||||||||||
Net income | $ | 9,320 | $ | 8,045 | $ | 1,275 | 16 | % | |||||||
Diluted earnings per share | $ | 0.46 | $ | 0.40 | $ | 0.06 | 15 | % |
Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
(Thousands, except per share data) | 2022 | 2021 | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 894,340 | $ | 725,385 | $ | 168,955 | 23 | % | ||||||||||||||||||||||||||||||||||||||||||
Value-added sales | 543,994 | 406,469 | 137,525 | 34 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin | 162,718 | 136,377 | 26,341 | 19 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin as a % of value-added sales | 30 | % | 34 | % | ||||||||||||||||||||||||||||||||||||||||||||||
SG&A expense | 83,708 | 74,836 | 8,872 | 12 | % | |||||||||||||||||||||||||||||||||||||||||||||
SG&A expense as a % of value-added sales | 15 | % | 18 | % | ||||||||||||||||||||||||||||||||||||||||||||||
R&D expense | 14,666 | 12,810 | 1,856 | 14 | % | |||||||||||||||||||||||||||||||||||||||||||||
R&D expense as a % of value-added sales | 3 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Restructuring (income) expense | 1,076 | (378) | 1,454 | (385) | % | |||||||||||||||||||||||||||||||||||||||||||||
Other—net | 11,801 | 8,668 | 3,133 | 36 | % | |||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 51,467 | 40,441 | 11,026 | 27 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other non-operating (income)—net | (2,337) | (2,553) | 216 | (8) | % | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense—net | 8,437 | 1,619 | 6,818 | 421 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 45,367 | 41,375 | 3,992 | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 8,093 | 6,740 | 1,353 | 20 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 37,274 | $ | 34,635 | $ | 2,639 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.80 | $ | 1.68 | $ | 0.12 | 7 | % |
Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | $ | % | ||||||||||||
(Thousands, except per share data) | 2017 | 2016 | Change | Change | |||||||||||
Net sales | $ | 830,779 | $ | 734,906 | $ | 95,873 | 13 | % | |||||||
Value-added sales | 496,462 | 454,793 | 41,669 | 9 | % | ||||||||||
Gross margin | 152,756 | 139,418 | 13,338 | 10 | % | ||||||||||
Gross margin as a % of value-added sales | 31 | % | 31 | % | N/A | N/A | |||||||||
SG&A expense | 108,118 | 97,101 | 11,017 | 11 | % | ||||||||||
SG&A expense as a % of value-added sales | 22 | % | 21 | % | N/A | N/A | |||||||||
R&D expense | 10,103 | 9,860 | 243 | 2 | % | ||||||||||
R&D expense as a % of value-added sales | 2 | % | 2 | % | N/A | N/A | |||||||||
Other—net | 9,823 | 8,997 | 826 | 9 | % | ||||||||||
Operating profit | 24,712 | 23,460 | 1,252 | 5 | % | ||||||||||
Interest expense—net | 1,721 | 1,417 | 304 | 21 | % | ||||||||||
Income before income taxes | 22,991 | 22,043 | 948 | 4 | % | ||||||||||
Income tax expense | 3,308 | 3,081 | 227 | 7 | % | ||||||||||
Net income | $ | 19,683 | $ | 18,962 | $ | 721 | 4 | % | |||||||
Diluted earnings per share | $ | 0.97 | $ | 0.94 | $ | 0.03 | 3 | % |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||
(Thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | ||||||||||||||||
Performance Alloys and Composites | $ | 109,393 | $ | 103,699 | $ | 310,487 | $ | 292,024 | ||||||||
Advanced Materials | 157,770 | 107,250 | 429,550 | 328,927 | ||||||||||||
Precision Coatings | 27,105 | 38,670 | 90,742 | 113,955 | ||||||||||||
Other | — | — | — | — | ||||||||||||
Total | $ | 294,268 | $ | 249,619 | $ | 830,779 | $ | 734,906 | ||||||||
Less: pass-through metal costs | ||||||||||||||||
Performance Alloys and Composites | $ | 18,756 | $ | 16,452 | $ | 47,953 | $ | 43,225 | ||||||||
Advanced Materials | 97,379 | 61,290 | 259,830 | 193,908 | ||||||||||||
Precision Coatings | 5,209 | 12,867 | 22,932 | 38,407 | ||||||||||||
Other | 1,542 | 2,009 | 3,602 | 4,573 | ||||||||||||
Total | $ | 122,886 | $ | 92,618 | $ | 334,317 | $ | 280,113 | ||||||||
Value-added sales | ||||||||||||||||
Performance Alloys and Composites | $ | 90,637 | $ | 87,247 | $ | 262,534 | $ | 248,799 | ||||||||
Advanced Materials | 60,391 | 45,960 | 169,720 | 135,019 | ||||||||||||
Precision Coatings | 21,896 | 25,803 | 67,810 | 75,548 | ||||||||||||
Other | (1,542 | ) | (2,009 | ) | (3,602 | ) | (4,573 | ) | ||||||||
Total | $ | 171,382 | $ | 157,001 | $ | 496,462 | $ | 454,793 |
Second Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
July 1, | July 2, | July 1, | July 2, | |||||||||||||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Performance Materials | $ | 154,889 | $ | 125,294 | $ | 304,520 | $ | 239,437 | ||||||||||||||||||
Electronic Materials | 260,971 | 213,114 | 531,807 | 417,758 | ||||||||||||||||||||||
Precision Optics | 29,435 | 32,591 | 58,013 | 68,190 | ||||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||||
Total | $ | 445,295 | $ | 370,999 | $ | 894,340 | $ | 725,385 | ||||||||||||||||||
Less: pass-through metal costs | ||||||||||||||||||||||||||
Performance Materials | $ | 20,923 | $ | 16,696 | $ | 41,436 | $ | 30,007 | ||||||||||||||||||
Electronic Materials | 146,779 | 146,214 | 307,738 | 287,909 | ||||||||||||||||||||||
Precision Optics | 18 | 9 | 67 | 43 | ||||||||||||||||||||||
Other | 349 | 193 | 1,105 | 957 | ||||||||||||||||||||||
Total | $ | 168,069 | $ | 163,112 | $ | 350,346 | $ | 318,916 | ||||||||||||||||||
Value-added sales | ||||||||||||||||||||||||||
Performance Materials | $ | 133,966 | $ | 108,598 | $ | 263,084 | $ | 209,430 | ||||||||||||||||||
Electronic Materials | 114,192 | 66,900 | 224,069 | 129,849 | ||||||||||||||||||||||
Precision Optics | 29,417 | 32,582 | 57,946 | 68,147 | ||||||||||||||||||||||
Other | (349) | (193) | (1,105) | (957) | ||||||||||||||||||||||
Total | $ | 277,226 | $ | 207,887 | $ | 543,994 | $ | 406,469 |
Third Quarter Ended | Second Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | July 1, | July 2, | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
(Thousands) | 2017 | 2016 | Change | Change | (Thousands) | 2022 | 2021 | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 109,393 | $ | 103,699 | $ | 5,694 | 5 | % | Net sales | $ | 154,889 | $ | 125,294 | $ | 29,595 | 24 | % | ||||||||||||||||||||||||||||||||||||
Value-added sales | 90,637 | 87,247 | 3,390 | 4 | % | Value-added sales | 133,966 | 108,598 | 25,368 | 23 | % | ||||||||||||||||||||||||||||||||||||||||||
Operating profit | 6,786 | 4,357 | 2,429 | 56 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | EBITDA | 27,229 | 22,318 | 4,911 | 22 | % |
Nine Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | July 1, | July 2, | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
(Thousands) | 2017 | 2016 | Change | Change | (Thousands) | 2022 | 2021 | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 310,487 | $ | 292,024 | $ | 18,463 | 6 | % | Net sales | $ | 304,520 | $ | 239,437 | $ | 65,083 | 27 | % | ||||||||||||||||||||||||||||||||||||
Value-added sales | 262,534 | 248,799 | 13,735 | 6 | % | Value-added sales | 263,084 | 209,430 | 53,654 | 26 | % | ||||||||||||||||||||||||||||||||||||||||||
Operating profit | 12,523 | 6,103 | 6,420 | 105 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | EBITDA | 52,021 | 39,110 | 12,911 | 33 | % |
Third Quarter Ended | ||||||||||||||
Sept. 29, | Sept. 30, | $ | % | |||||||||||
(Thousands) | 2017 | 2016 | Change | Change | ||||||||||
Net sales | $ | 157,770 | $ | 107,250 | 50,520 | 47 | % | |||||||
Value-added sales | 60,391 | 45,960 | 14,431 | 31 | % | |||||||||
Operating profit | 9,756 | 8,245 | 1,511 | 18 | % |
Nine Months Ended | ||||||||||||||
Sept. 29, | Sept. 30, | $ | % | |||||||||||
(Thousands) | 2017 | 2016 | Change | Change | ||||||||||
Net sales | $ | 429,550 | $ | 328,927 | 100,623 | 31 | % | |||||||
Value-added sales | 169,720 | 135,019 | 34,701 | 26 | % | |||||||||
Operating profit | 24,873 | 20,748 | 4,125 | 20 | % |
Second Quarter Ended | ||||||||||||||||||||||||||||||||||||||
July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||||
(Thousands) | 2022 | 2021 | Change | Change | ||||||||||||||||||||||||||||||||||
Net sales | $ | 260,971 | $ | 213,114 | 47,857 | 22 | % | |||||||||||||||||||||||||||||||
Value-added sales | 114,192 | 66,900 | 47,292 | 71 | % | |||||||||||||||||||||||||||||||||
EBITDA | 22,337 | 10,412 | 11,925 | 115 | % |
Six Months Ended | ||||||||||||||||||||||||||||||||||||||
July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||||
(Thousands) | 2022 | 2021 | Change | Change | ||||||||||||||||||||||||||||||||||
Net sales | $ | 531,807 | $ | 417,758 | 114,049 | 27 | % | |||||||||||||||||||||||||||||||
Value-added sales | 224,069 | 129,849 | 94,220 | 73 | % | |||||||||||||||||||||||||||||||||
EBITDA | 34,484 | 21,342 | 13,142 | 62 | % |
(Thousands) | Third Quarter Ended | (Thousands) | Second Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | Change | 2022 | 2021 | Change | Change | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 27,105 | $ | 38,670 | (11,565 | ) | (30 | )% | Net sales | $ | 29,435 | $ | 32,591 | (3,156) | (10) | % | ||||||||||||||||||||||||||||||||||||
Value-added sales | 21,896 | 25,803 | (3,907 | ) | (15 | )% | Value-added sales | 29,417 | 32,582 | (3,165) | (10) | % | ||||||||||||||||||||||||||||||||||||||||
Operating profit | 1,613 | 3,432 | (1,819 | ) | (53 | )% | ||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | EBITDA | 3,544 | 5,547 | (2,003) | (36) | % |
(Thousands) | Nine Months Ended | (Thousands) | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | Change | 2022 | 2021 | Change | Change | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 90,742 | $ | 113,955 | (23,213 | ) | (20 | )% | Net sales | $ | 58,013 | $ | 68,190 | (10,177) | (15) | % | ||||||||||||||||||||||||||||||||||||
Value-added sales | 67,810 | 75,548 | (7,738 | ) | (10 | )% | Value-added sales | 57,946 | 68,147 | (10,201) | (15) | % | ||||||||||||||||||||||||||||||||||||||||
Operating profit | 6,145 | 9,803 | (3,658 | ) | (37 | )% | ||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | EBITDA | 5,735 | 13,018 | (7,283) | (56) | % |
(Thousands) | Third Quarter Ended | (Thousands) | Second Quarter Ended | |||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | July 1, | July 2, | $ | % | |||||||||||||||||||||||||||||||||
2017 | 2016 | Change | Change | 2022 | 2021 | Change | Change | |||||||||||||||||||||||||||||||||
Net sales | $ | — | $ | — | — | — | % | Net sales | $ | — | $ | — | — | — | % | |||||||||||||||||||||||||
Value-added sales | (1,542 | ) | (2,009 | ) | 467 | (23 | )% | Value-added sales | (349) | (193) | (156) | 81 | % | |||||||||||||||||||||||||||
Operating loss | (6,597 | ) | (5,883 | ) | (714 | ) | 12 | % | ||||||||||||||||||||||||||||||||
EBITDA | EBITDA | (7,191) | (5,813) | (1,378) | 24 | % |
(Thousands) | Six Months Ended | |||||||||||||||||||||||||
July 1, | July 2, | $ | % | |||||||||||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||||||||||||
Net sales | $ | — | $ | — | — | — | % | |||||||||||||||||||
Value-added sales | (1,105) | (957) | (148) | 15 | % | |||||||||||||||||||||
EBITDA | (12,366) | (11,413) | (953) | 8 | % |
(Thousands) | Nine Months Ended | |||||||||||||
Sept. 29, | Sept. 30, | $ | % | |||||||||||
2017 | 2016 | Change | Change | |||||||||||
Net sales | $ | — | $ | — | — | — | % | |||||||
Value-added sales | (3,602 | ) | (4,573 | ) | 971 | (21 | )% | |||||||
Operating loss | (18,829 | ) | (13,194 | ) | (5,635 | ) | 43 | % |
Six Months Ended | ||||||||||||||||||||||||||||||||
July 1, | July 2, | $ | ||||||||||||||||||||||||||||||
(Thousands) | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 21,415 | $ | 44,065 | $ | (22,650) | ||||||||||||||||||||||||||
Net cash used in investing activities | (40,596) | (57,109) | 16,513 | |||||||||||||||||||||||||||||
Net cash provided by financing activities | 38,418 | 11,522 | 26,896 | |||||||||||||||||||||||||||||
Effects of exchange rate changes | (1,524) | (11) | (1,513) | |||||||||||||||||||||||||||||
Net change in cash and cash equivalents | $ | 17,713 | $ | (1,533) | $ | 19,246 |
Nine Months Ended | ||||||||||||
Sept. 29, | Sept. 30, | $ | ||||||||||
(Thousands) | 2017 | 2016 | Change | |||||||||
Net cash provided by operating activities | $ | 35,497 | $ | 27,222 | $ | 8,275 | ||||||
Net cash used in investing activities | (34,830 | ) | (27,620 | ) | (7,210 | ) | ||||||
Net cash used in financing activities | (10,938 | ) | (8,556 | ) | (2,382 | ) | ||||||
Effects of exchange rate changes | 1,293 | 524 | 769 | |||||||||
Net change in cash and cash equivalents | $ | (8,978 | ) | $ | (8,430 | ) | $ | (548 | ) |
July 1, | December 31, | |||||||||||||
(Thousands) | 2022 | 2021 | ||||||||||||
Cash and cash equivalents | $ | 32,175 | $ | 14,462 | ||||||||||
Total outstanding debt | 497,298 | 449,747 | ||||||||||||
Net debt | $ | (465,123) | $ | (435,285) | ||||||||||
Available borrowing capacity | $ | 124,034 | $ | 176,419 |
September 29, | December 31, | |||||||
(Thousands) | 2017 | 2016 | ||||||
Total outstanding debt | $ | 4,007 | $ | 4,615 | ||||
Cash | 22,486 | 31,464 | ||||||
Net debt (cash) | (18,479 | ) | (26,849 | ) | ||||
Available borrowing capacity | $ | 266,405 | $ | 238,886 | ||||
Debt-to-debt-plus-equity ratio | 1 | % | 1 | % |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||
July 1 through August 4, 2017 | 895 | $ | 38.42 | — | $ | 15,703,744 | ||||||||
August 5 through September 1, 2017 | 401 | 38.16 | — | 15,703,744 | ||||||||||
September 1 through September 29, 2017 | 1,062 | 42.88 | — | 15,703,744 | ||||||||||
Total | 2,358 | $ | 40.38 | — | $ | 15,703,744 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
April 2 through May 6, 2022 | — | $ | — | — | $ | 8,316,239 | ||||||||||||||||||||
May 7 through June 3, 2022 | 1,181 | 80.24 | — | 8,316,239 | ||||||||||||||||||||||
June 4 through July 1, 2022 | — | — | — | 8,316,239 | ||||||||||||||||||||||
Total | 1,181 | $ | 80.24 | — | $ | 8,316,239 |
(1) | ||||||||
(2) | On January 14, 2014, |
Item 4. | Mine Safety Disclosures |
Exhibits |
31.1 | Certification of Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a)* | |||||||
31.2 | Certification of Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a)* | |||||||
32 | Certifications of Chief Executive Officer and Chief Financial Officer required by 18 U.S.C. Section 1350* | |||||||
95 | Mine Safety Disclosure Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act for the period ended | |||||||
101.INS | XBRL Instance | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document* | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document* | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments) |
MATERION CORPORATION | ||||||||||||||||
Dated: August 3, 2022 | ||||||||||||||||
/s/ | ||||||||||||||||
Vice President, Finance and Chief Financial Officer | ||||||||||||||||
(Principal Financial |