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 |
First Quarter Ended | ||||||||||||||
(Thousands, except per share amounts) | March 31, 2023 | April 1, 2022 | ||||||||||||
Net sales | $ | 442,526 | $ | 449,045 | ||||||||||
Cost of sales | 351,190 | 373,754 | ||||||||||||
Gross margin | 91,336 | 75,291 | ||||||||||||
Selling, general, and administrative expense | 40,336 | 41,662 | ||||||||||||
Research and development expense | 7,621 | 7,074 | ||||||||||||
Restructuring expense (income) | 664 | 1,076 | ||||||||||||
Other—net | 5,775 | 5,873 | ||||||||||||
Operating profit | 36,940 | 19,606 | ||||||||||||
Other non-operating income—net | (730) | (1,169) | ||||||||||||
Interest expense—net | 7,502 | 3,735 | ||||||||||||
Income before income taxes | 30,168 | 17,040 | ||||||||||||
Income tax expense | 4,580 | 3,021 | ||||||||||||
Net income | $ | 25,588 | $ | 14,019 | ||||||||||
Basic earnings per share: | ||||||||||||||
Net income per share of common stock | $ | 1.24 | $ | 0.69 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Net income per share of common stock | $ | 1.23 | $ | 0.68 | ||||||||||
Weighted-average number of shares of common stock outstanding: | ||||||||||||||
Basic | 20,566 | 20,464 | ||||||||||||
Diluted | 20,887 | 20,724 |
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 |
First Quarter Ended | ||||||||||||||
March 31, | April 1, | |||||||||||||
(Thousands) | 2023 | 2022 | ||||||||||||
Net income | $ | 25,588 | $ | 14,019 | ||||||||||
Other comprehensive (loss) income: | ||||||||||||||
Foreign currency translation adjustment | 2,689 | (2,047) | ||||||||||||
Derivative and hedging activity, net of tax | (2,339) | 2,270 | ||||||||||||
Pension and post-employment benefit adjustment, net of tax | (67) | (240) | ||||||||||||
Other comprehensive loss | 283 | (17) | ||||||||||||
Comprehensive income | $ | 25,871 | $ | 14,002 |
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 |
(Unaudited) | ||||||||||||||
March 31, | Dec. 31, | |||||||||||||
(Thousands) | 2023 | 2022 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 15,243 | $ | 13,101 | ||||||||||
Accounts receivable, net | 207,998 | 215,211 | ||||||||||||
Inventories, net | 434,485 | 423,080 | ||||||||||||
Prepaid and other current assets | 42,128 | 39,056 | ||||||||||||
Total current assets | 699,854 | 690,448 | ||||||||||||
Deferred income taxes | 3,335 | 3,265 | ||||||||||||
Property, plant, and equipment | 1,198,350 | 1,209,205 | ||||||||||||
Less allowances for depreciation, depletion, and amortization | (728,788) | (760,440) | ||||||||||||
Property, plant, and equipment, net | 469,562 | 448,765 | ||||||||||||
Operating lease, right-of-use assets | 62,352 | 64,249 | ||||||||||||
Intangible assets, net | 140,430 | 143,219 | ||||||||||||
Other assets | 22,183 | 22,535 | ||||||||||||
Goodwill | 320,268 | 319,498 | ||||||||||||
Total Assets | $ | 1,717,984 | $ | 1,691,979 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term debt | $ | 27,727 | $ | 21,105 | ||||||||||
Accounts payable | 126,866 | 107,899 | ||||||||||||
Salaries and wages | 22,077 | 35,543 | ||||||||||||
Other liabilities and accrued items | 44,186 | 54,993 | ||||||||||||
Income taxes | 4,669 | 3,928 | ||||||||||||
Unearned revenue | 20,292 | 15,496 | ||||||||||||
Total current liabilities | 245,817 | 238,964 | ||||||||||||
Other long-term liabilities | 14,255 | 12,181 | ||||||||||||
Operating lease liabilities | 57,424 | 59,055 | ||||||||||||
Finance lease liabilities | 14,068 | 13,876 | ||||||||||||
Retirement and post-employment benefits | 20,738 | 20,422 | ||||||||||||
Unearned income | 109,883 | 107,736 | ||||||||||||
Long-term income taxes | 812 | 665 | ||||||||||||
Deferred income taxes | 27,511 | 28,214 | ||||||||||||
Long-term debt | 405,482 | 410,876 | ||||||||||||
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 March 31 and December 31) | 297,802 | 288,100 | ||||||||||||
Retained earnings | 792,421 | 769,418 | ||||||||||||
Common stock in treasury | (231,906) | (220,864) | ||||||||||||
Accumulated other comprehensive loss | (41,626) | (41,909) | ||||||||||||
Other equity | 5,303 | 5,245 | ||||||||||||
Total shareholders' equity | 821,994 | 799,990 | ||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,717,984 | $ | 1,691,979 |
(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 | ||||||||
Sept. 29, | Sept. 30, | |||||||
(Thousands) | 2017 | 2016 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 19,683 | $ | 18,962 | ||||
Adjustments to reconcile net income to net cash provided from (used in) operating activities: | ||||||||
Depreciation, depletion, and amortization | 33,444 | 34,379 | ||||||
Amortization of deferred financing costs in interest expense | 670 | 417 | ||||||
Stock-based compensation expense (non-cash) | 4,303 | 2,880 | ||||||
(Gain) loss on sale of property, plant, and equipment | 207 | (601 | ) | |||||
Deferred income tax expense (benefit) | 1,073 | (676 | ) | |||||
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 | ) | ||||
Other-net | (1,324 | ) | 2,479 | |||||
Net cash provided by operating activities | 35,497 | 27,222 | ||||||
Cash flows from investing activities: | ||||||||
Payments for purchase of property, plant, and equipment | (17,759 | ) | (20,052 | ) | ||||
Payments for mine development | (620 | ) | (8,934 | ) | ||||
Payments for acquisition | (16,504 | ) | — | |||||
Proceeds from sale of property, plant, and equipment | 53 | 1,366 | ||||||
Net cash used in investing activities | (34,830 | ) | (27,620 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of short-term debt, net | — | 3,777 | ||||||
Proceeds from issuance of long-term debt | 55,000 | 10,000 | ||||||
Repayment of long-term debt | (55,608 | ) | (10,517 | ) | ||||
Principal payments under capital lease obligations | (644 | ) | (549 | ) | ||||
Cash dividends paid | (5,903 | ) | (5,601 | ) | ||||
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 | ) | ||||
Effects of exchange rate changes | 1,293 | 524 | ||||||
Net change in cash and cash equivalents | (8,978 | ) | (8,430 | ) | ||||
Cash and cash equivalents at beginning of period | 31,464 | 24,236 | ||||||
Cash and cash equivalents at end of period | $ | 22,486 | $ | 15,806 |
Three Months Ended | ||||||||||||||
March 31, | April 1, | |||||||||||||
(Thousands) | 2023 | 2022 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 25,588 | $ | 14,019 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation, depletion, and amortization | 15,092 | 13,179 | ||||||||||||
Amortization of deferred financing costs in interest expense | 424 | 511 | ||||||||||||
Stock-based compensation expense (non-cash) | 2,250 | 1,699 | ||||||||||||
Deferred income tax (benefit) expense | (52) | 401 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Accounts receivable | 7,538 | (15,045) | ||||||||||||
Inventory | (12,081) | (28,129) | ||||||||||||
Prepaid and other current assets | (2,865) | (5) | ||||||||||||
Accounts payable and accrued expenses | (1,904) | (4,177) | ||||||||||||
Unearned revenue | 254 | (343) | ||||||||||||
Interest and taxes payable | 657 | 1,874 | ||||||||||||
Unearned income due to customer prepayments | 7,724 | — | ||||||||||||
Other-net | (4,520) | 1,712 | ||||||||||||
Net cash (used in) provided by operating activities | 38,105 | (14,304) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Payments for purchase of property, plant, and equipment | (30,014) | (18,977) | ||||||||||||
Proceeds from sale of property, plant, and equipment | 212 | 11 | ||||||||||||
Net cash used in investing activities | (29,802) | (18,966) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from borrowings under revolving credit agreement, net | 4,600 | 49,067 | ||||||||||||
Repayment of debt | (3,907) | (3,839) | ||||||||||||
Principal payments under finance lease obligations | (799) | (686) | ||||||||||||
Cash dividends paid | (2,571) | (2,520) | ||||||||||||
Payments of withholding taxes for stock-based compensation awards | (3,614) | (2,717) | ||||||||||||
Net cash provided by financing activities | (6,291) | 39,305 | ||||||||||||
Effects of exchange rate changes | 130 | (260) | ||||||||||||
Net change in cash and cash equivalents | 2,142 | 5,775 | ||||||||||||
Cash and cash equivalents at beginning of period | 13,101 | 14,462 | ||||||||||||
Cash and cash equivalents at end of period | $ | 15,243 | $ | 20,237 |
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, 2022 | 20,543 | (6,605) | $ | 288,100 | $ | 769,418 | $ | (220,864) | $ | (41,909) | $ | 5,245 | $ | 799,990 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 25,588 | — | — | — | 25,588 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | 283 | — | 283 | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.125 per share) | — | — | — | (2,571) | — | — | — | (2,571) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | 98 | 98 | 9,675 | (14) | (7,411) | — | — | 2,250 | |||||||||||||||||||||||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | (33) | (33) | — | — | (3,614) | — | — | (3,614) | |||||||||||||||||||||||||||||||||||||||
Directors’ deferred compensation | 1 | 1 | 27 | — | (17) | — | 58 | 68 | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 20,609 | (6,539) | $ | 297,802 | $ | 792,421 | $ | (231,906) | $ | (41,626) | $ | 5,303 | $ | 821,994 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 20,448 | (6,700) | $ | 271,978 | $ | 693,756 | $ | (209,920) | $ | (40,169) | $ | 4,795 | $ | 720,440 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 14,019 | — | — | — | 14,019 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (17) | — | (17) | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.12 per share) | — | — | — | (2,520) | — | — | — | (2,520) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | 95 | 95 | 6,572 | — | (4,873) | — | — | 1,699 | |||||||||||||||||||||||||||||||||||||||
Payments of withholding taxes for stock-based compensation awards | (33) | (33) | — | — | (2,717) | — | — | (2,717) | |||||||||||||||||||||||||||||||||||||||
Directors’ deferred compensation | 1 | 1 | 39 | — | (39) | — | 60 | 60 | |||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | 20,511 | (6,637) | $ | 278,589 | $ | 705,255 | $ | (217,549) | $ | (40,186) | $ | 4,855 | $ | 730,964 |
(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) | 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) | Three months ended March 31, 2023 | Three months ended April 1, 2022 | ||||||||||||
Net sales: | ||||||||||||||
Performance Materials (1) | 187,014 | 149,630 | ||||||||||||
Electronic Materials(1) | 228,820 | 270,836 | ||||||||||||
Precision Optics | 26,692 | 28,579 | ||||||||||||
Other | — | — | ||||||||||||
Net sales | $ | 442,526 | $ | 449,045 | ||||||||||
Segment EBITDA: | ||||||||||||||
Performance Materials | 42,770 | 24,792 | ||||||||||||
Electronic Materials | 13,955 | 12,148 | ||||||||||||
Precision Optics | 2,692 | 2,191 | ||||||||||||
Other | (6,655) | (5,177) | ||||||||||||
Total Segment EBITDA | $ | 52,762 | $ | 33,954 | ||||||||||
Income tax expense | 4,580 | 3,021 | ||||||||||||
Interest expense - net | 7,502 | 3,735 | ||||||||||||
Depreciation, depletion and amortization | 15,092 | 13,179 | ||||||||||||
Net income | $ | 25,588 | $ | 14,019 |
(Thousands) | Performance Materials | Electronic Materials | Precision Optics | Other | Total | |||||||||||||||||||||||||||
First Quarter 2023 | ||||||||||||||||||||||||||||||||
End Market | ||||||||||||||||||||||||||||||||
Semiconductor | $ | 2,590 | $ | 180,616 | $ | 911 | $ | — | $ | 184,117 | ||||||||||||||||||||||
Industrial | 38,674 | 12,969 | 8,733 | — | 60,376 | |||||||||||||||||||||||||||
Aerospace and defense | 30,358 | 2,077 | 4,648 | — | 37,083 | |||||||||||||||||||||||||||
Consumer electronics | 9,356 | 187 | 3,255 | — | 12,798 | |||||||||||||||||||||||||||
Automotive | 25,493 | 1,501 | 2,608 | — | 29,602 | |||||||||||||||||||||||||||
Energy | 13,468 | 24,951 | — | — | 38,419 | |||||||||||||||||||||||||||
Telecom and data center | 16,126 | 13 | — | — | 16,139 | |||||||||||||||||||||||||||
Other | 50,949 | 6,506 | 6,537 | — | 63,992 | |||||||||||||||||||||||||||
Total | $ | 187,014 | $ | 228,820 | $ | 26,692 | $ | — | $ | 442,526 | ||||||||||||||||||||||
First Quarter 2022 | ||||||||||||||||||||||||||||||||
End Market | ||||||||||||||||||||||||||||||||
Semiconductor | $ | 1,800 | $ | 214,922 | $ | 1,327 | $ | — | $ | 218,049 | ||||||||||||||||||||||
Industrial | 40,069 | 15,866 | 8,434 | — | 64,369 | |||||||||||||||||||||||||||
Aerospace and defense | 23,684 | 2,614 | 5,145 | — | 31,443 | |||||||||||||||||||||||||||
Consumer electronics | 13,002 | 325 | 5,312 | — | 18,639 | |||||||||||||||||||||||||||
Automotive | 22,235 | 1,657 | 2,464 | — | 26,356 | |||||||||||||||||||||||||||
Energy | 10,849 | 29,119 | — | — | 39,968 | |||||||||||||||||||||||||||
Telecom and data center | 16,081 | 45 | — | — | 16,126 | |||||||||||||||||||||||||||
Other | 21,910 | 6,288 | 5,897 | — | 34,095 | |||||||||||||||||||||||||||
Total | $ | 149,630 | $ | 270,836 | $ | 28,579 | $ | — | $ | 449,045 |
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) | March 31, 2023 | December 31, 2022 | $ change | % change | ||||||||||||||||||||||
Accounts receivable, trade | $ | 208,633 | $ | 215,726 | $ | (7,093) | (3) | % | ||||||||||||||||||
Unbilled receivables | 13,919 | 10,765 | 3,154 | 29 | % | |||||||||||||||||||||
Unearned revenue | 20,292 | 15,496 | 4,796 | 31 | % |
First Quarter Ended | ||||||||||||||
March 31, | April 1, | |||||||||||||
(Thousands) | 2023 | 2022 | ||||||||||||
Amortization of intangible assets | $ | 3,121 | $ | 3,131 | ||||||||||
Metal consignment fees | 2,929 | 3,011 | ||||||||||||
Foreign currency (gain) loss | (208) | (333) | ||||||||||||
Net (gain) loss on disposal of fixed assets | 5 | (11) | ||||||||||||
Other items | (72) | 75 | ||||||||||||
Total | $ | 5,775 | $ | 5,873 |
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 | $ | — |
First Quarter Ended | ||||||||||||||
March 31, | April 1, | |||||||||||||
(Thousands, except per share amounts) | 2023 | 2022 | ||||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||
Net income (loss) | $ | 25,588 | $ | 14,019 | ||||||||||
Denominator: | ||||||||||||||
Denominator for basic EPS: | ||||||||||||||
Weighted-average shares outstanding | 20,566 | 20,464 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock appreciation rights | 103 | 97 | ||||||||||||
Restricted stock units | 105 | 106 | ||||||||||||
Performance-based restricted stock units | 113 | 57 | ||||||||||||
Diluted potential common shares | 321 | 260 | ||||||||||||
Denominator for diluted EPS: | ||||||||||||||
Adjusted weighted-average shares outstanding | 20,887 | 20,724 | ||||||||||||
Basic EPS | $ | 1.24 | $ | 0.69 | ||||||||||
Diluted EPS | $ | 1.23 | $ | 0.68 |
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 |
March 31, | December 31, | |||||||||||||
(Thousands) | 2023 | 2022 | ||||||||||||
Raw materials and supplies | $ | 116,404 | $ | 113,694 | ||||||||||
Work in process | 250,920 | 249,105 | ||||||||||||
Finished goods | 67,161 | 60,281 | ||||||||||||
Inventories, net | $ | 434,485 | $ | 423,080 |
Sept. 29, | Dec. 31, | |||||||
(Thousands) | 2017 | 2016 | ||||||
Raw materials and supplies | $ | 44,924 | $ | 36,233 | ||||
Work in process | 181,553 | 169,327 | ||||||
Finished goods | 37,671 | 38,147 | ||||||
Subtotal | $ | 264,148 | $ | 243,707 | ||||
Less: LIFO reserve balance | 43,925 | 42,842 | ||||||
Inventories | $ | 220,223 | $ | 200,865 |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
First Quarter Ended | First Quarter Ended | |||||||||||||||||||||||||
March 31, | April 1, | March 31, | April 1, | |||||||||||||||||||||||
(Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Components of net periodic benefit (income) cost | ||||||||||||||||||||||||||
Service cost | $ | 222 | $ | 318 | $ | 13 | $ | 22 | ||||||||||||||||||
Interest cost | 1,973 | 1,223 | 68 | 39 | ||||||||||||||||||||||
Expected return on plan assets | (2,439) | (2,400) | — | — | ||||||||||||||||||||||
Amortization of prior service cost (benefit) | (23) | (20) | (139) | (374) | ||||||||||||||||||||||
Amortization of net loss (gain) | (81) | 430 | (95) | (68) | ||||||||||||||||||||||
Total net benefit (income) cost | $ | (348) | $ | (449) | $ | (153) | $ | (381) |
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 | Total | Pension and Post-Employment Benefits | Foreign Currency Translation | Total | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 1,243 | $ | 6,055 | $ | (223) | $ | 7,075 | $ | (40,228) | $ | (8,756) | $ | (41,909) | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (67) | (1,703) | (475) | (2,245) | — | 2,689 | 444 | ||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (35) | (782) | 25 | (792) | (338) | — | (1,130) | ||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income before tax | (102) | (2,485) | (450) | (3,037) | (338) | 2,689 | (686) | ||||||||||||||||||||||||||||||||||||||||
Deferred taxes | (24) | (571) | (103) | (698) | (271) | — | (969) | ||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income after tax | (78) | (1,914) | (347) | (2,339) | (67) | 2,689 | 283 | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 1,165 | $ | 4,141 | $ | (570) | $ | 4,736 | $ | (40,295) | $ | (6,067) | $ | (41,626) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 2,348 | $ | — | $ | 72 | $ | 2,420 | $ | (39,702) | $ | (2,887) | $ | (40,169) | |||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | 153 | 3,112 | (520) | 2,745 | — | (2,047) | 698 | ||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (19) | 115 | 107 | 203 | (1,000) | — | (797) | ||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income before tax | 134 | 3,227 | (413) | 2,948 | (1,000) | (2,047) | (99) | ||||||||||||||||||||||||||||||||||||||||
Deferred taxes | 31 | 742 | (95) | 678 | (760) | — | (82) | ||||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income after tax | 103 | 2,485 | (318) | 2,270 | (240) | (2,047) | (17) | ||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | 2,451 | $ | 2,485 | $ | (246) | $ | 4,690 | $ | (39,942) | $ | (4,934) | $ | (40,186) |
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 | ) |
Risk-free interest rate | % | ||||||||
Dividend yield | % | ||||||||
Volatility | % | ||||||||
Expected term (in years) | 4.5 |
(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 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation investments | $ | 2,149 | $ | 1,734 | $ | 2,149 | $ | 1,734 | $ | — | $ | — | $ | — | $ | — | Deferred compensation investments | $ | 3,860 | $ | 3,001 | $ | 3,860 | $ | 3,001 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 149 | 691 | — | — | 149 | 691 | — | — | Foreign currency forward contracts | 385 | 1,291 | — | — | 385 | 1,291 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | 7,175 | 7,863 | — | — | 7,175 | 7,863 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 45 | — | — | — | 45 | — | — | — | Precious metal swaps | 131 | 118 | — | — | 131 | 118 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,343 | $ | 2,425 | $ | 2,149 | $ | 1,734 | $ | 194 | $ | 691 | $ | — | $ | — | Total | $ | 11,551 | $ | 12,273 | $ | 3,860 | $ | 3,001 | $ | 7,691 | $ | 9,272 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation liability | $ | 2,149 | $ | 1,734 | $ | 2,149 | $ | 1,734 | $ | — | $ | — | $ | — | $ | — | Deferred compensation liability | $ | 3,860 | $ | 3,001 | $ | 3,860 | $ | 3,001 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | 669 | 1 | — | — | 669 | 1 | — | — | Foreign currency forward contracts | 741 | 1,757 | — | — | 741 | 1,757 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | 1,797 | — | — | — | 1,797 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 197 | — | — | — | 197 | — | — | — | Precious metal swaps | 874 | 411 | — | — | 874 | 411 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,015 | $ | 1,735 | $ | 2,149 | $ | 1,734 | $ | 866 | $ | 1 | $ | — | $ | — | Total | $ | 7,272 | $ | 5,169 | $ | 3,860 | $ | 3,001 | $ | 3,412 | $ | 2,168 | $ | — | $ | — |
September 29, 2017 | December 31, 2016 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
(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 | $ | 13,277 | $ | 156 | $ | 12,242 | $ | 791 | |||||||||||||||||||||||||||||||||
Other liabilities and accrued items | Other liabilities and accrued items | 18,054 | 201 | 17,061 | 1,048 | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts - euro | $ | 14,402 | $ | (11 | ) | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Total | $ | 14,402 | $ | (11 | ) | $ | — | $ | — |
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
September 29, 2017 | December 31, 2016 | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
(Thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | (Thousands) | Notional Amount | Prepaid and other current assets | Other assets | Other liabilities and accrued items | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||||
Prepaid expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts - yen | $ | 2,000 | $ | 59 | $ | 2,418 | $ | 239 | Foreign currency forward contracts - yen | $ | 2,063 | $ | 98 | $ | — | $ | 49 | $ | — | |||||||||||||||||||||||||||||
Foreign currency forward contracts - euro | 6,829 | 90 | 6,493 | 452 | Foreign currency forward contracts - euro | 17,129 | 131 | — | 491 | — | ||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 2,148 | 13 | — | — | Precious metal swaps | 8,486 | 131 | — | 874 | — | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | 200,000 | 3,725 | 3,450 | — | 1,797 | ||||||||||||||||||||||||||||||||||||||||||
Total | 10,977 | 162 | 8,911 | 691 | Total | $ | 227,678 | $ | 4,085 | $ | 3,450 | $ | 1,414 | $ | 1,797 | |||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 1,932 | 32 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | 1,932 | 32 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities and accrued items | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | Foreign currency forward contracts - yen | $ | 2,985 | $ | 145 | $ | — | $ | 74 | $ | 26 | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts - euro | 12,689 | (658 | ) | 537 | (1 | ) | Foreign currency forward contracts - euro | 25,712 | 355 | — | 472 | 137 | ||||||||||||||||||||||||||||||||||||
Precious metal swaps | 7,845 | (170 | ) | — | — | Precious metal swaps | 8,758 | 118 | — | 411 | — | |||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | 100,000 | 3,114 | 4,749 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total | 20,534 | (828 | ) | 537 | (1 | ) | Total | $ | 137,455 | $ | 3,732 | $ | 4,749 | $ | 957 | $ | 163 | |||||||||||||||||||||||||||||||
Other long-term liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Precious metal swaps | 1,999 | (27 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 35,442 | $ | (661 | ) | $ | 9,448 | $ | 690 |
First Quarter Ended | ||||||||||||||||||||
(Thousands) | March 31, 2023 | April 1, 2022 | ||||||||||||||||||
Hedging relationship | Line item | |||||||||||||||||||
Foreign currency forward contracts | Net sales | $ | (35) | $ | (19) | |||||||||||||||
Precious metal swaps | Cost of sales | 25 | 107 | |||||||||||||||||
Interest rate swap | Interest expense - net | (782) | 115 | |||||||||||||||||
Total | $ | (792) | $ | 203 |
(Thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||
Borrowings under Credit Agreement | $ | 145,155 | $ | 143,250 | ||||||||||
Borrowings under the Term Loan Facility | 281,250 | 285,000 | ||||||||||||
Foreign debt | 10,366 | 7,541 | ||||||||||||
Total debt outstanding | 436,771 | 435,791 | ||||||||||||
Current portion of long-term debt | (27,727) | (21,105) | ||||||||||||
Gross long-term debt | 409,044 | 414,686 | ||||||||||||
Unamortized deferred financing fees | (3,562) | (3,810) | ||||||||||||
Long-term debt | $ | 405,482 | $ | 410,876 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
First Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, | April 1, | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
(Thousands, except per share data) | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 442,526 | $ | 449,045 | $ | (6,519) | (1) | % | ||||||||||||||||||||||||||||||||||||||||||
Value-added sales | 298,558 | 259,124 | 39,434 | 15 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin | 91,336 | 75,291 | 16,045 | 21 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin as a % of value-added sales | 31 | % | 29 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative (SG&A) expense | 40,336 | 41,662 | (1,326) | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||
SG&A expense as a % of value-added sales | 14 | % | 16 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development (R&D) expense | 7,621 | 7,074 | 547 | 8 | % | |||||||||||||||||||||||||||||||||||||||||||||
R&D expense as a % of value-added sales | 3 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Restructuring (income) expense | 664 | 1,076 | (412) | NM | ||||||||||||||||||||||||||||||||||||||||||||||
Other—net | 5,775 | 5,873 | (98) | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 36,940 | 19,606 | 17,334 | 88 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other non-operating (income)—net | (730) | (1,169) | 439 | (38) | % | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense—net | 7,502 | 3,735 | 3,767 | 101 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 30,168 | 17,040 | 13,128 | 77 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 4,580 | 3,021 | 1,559 | 52 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 25,588 | $ | 14,019 | $ | 11,569 | 83 | % | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.23 | $ | 0.68 | $ | 0.55 | 81 | % |
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 | % |
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 |
First Quarter Ended | ||||||||||||||
March 31, | April 1, | |||||||||||||
(Thousands) | 2023 | 2022 | ||||||||||||
Net sales | ||||||||||||||
Performance Materials | $ | 187,014 | $ | 149,630 | ||||||||||
Electronic Materials | 228,820 | 270,836 | ||||||||||||
Precision Optics | 26,692 | 28,579 | ||||||||||||
Other | — | — | ||||||||||||
Total | $ | 442,526 | $ | 449,045 | ||||||||||
Less: pass-through metal costs | ||||||||||||||
Performance Materials | $ | 19,004 | $ | 20,512 | ||||||||||
Electronic Materials | 124,942 | 168,604 | ||||||||||||
Precision Optics | 22 | 49 | ||||||||||||
Other | — | 756 | ||||||||||||
Total | $ | 143,968 | $ | 189,921 | ||||||||||
Value-added sales | ||||||||||||||
Performance Materials | $ | 168,010 | $ | 129,118 | ||||||||||
Electronic Materials | 103,878 | 102,232 | ||||||||||||
Precision Optics | 26,670 | 28,530 | ||||||||||||
Other | — | (756) | ||||||||||||
Total | $ | 298,558 | $ | 259,124 |
Third Quarter Ended | First Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | March 31, | April 1, | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
(Thousands) | 2017 | 2016 | Change | Change | (Thousands) | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 109,393 | $ | 103,699 | $ | 5,694 | 5 | % | Net sales | $ | 187,014 | $ | 149,630 | $ | 37,384 | 25 | % | ||||||||||||||||||||||||||||||||||||
Value-added sales | 90,637 | 87,247 | 3,390 | 4 | % | Value-added sales | 168,010 | 129,118 | 38,892 | 30 | % | ||||||||||||||||||||||||||||||||||||||||||
Operating profit | 6,786 | 4,357 | 2,429 | 56 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | EBITDA | 42,770 | 24,792 | 17,978 | 73 | % |
Nine Months Ended | |||||||||||||||
Sept. 29, | Sept. 30, | $ | % | ||||||||||||
(Thousands) | 2017 | 2016 | Change | Change | |||||||||||
Net sales | $ | 310,487 | $ | 292,024 | $ | 18,463 | 6 | % | |||||||
Value-added sales | 262,534 | 248,799 | 13,735 | 6 | % | ||||||||||
Operating profit | 12,523 | 6,103 | 6,420 | 105 | % |
First Quarter Ended | ||||||||||||||||||||||||||||||||||||||
March 31, | April 1, | $ | % | |||||||||||||||||||||||||||||||||||
(Thousands) | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||||
Net sales | $ | 228,820 | $ | 270,836 | $ | (42,016) | (16) | % | ||||||||||||||||||||||||||||||
Value-added sales | 103,878 | 102,232 | 1,646 | 2 | % | |||||||||||||||||||||||||||||||||
EBITDA | 13,955 | 12,148 | 1,807 | 15 | % |
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 | % |
(Thousands) | Third Quarter Ended | (Thousands) | First Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | March 31, | April 1, | $ | % | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | Change | 2023 | 2022 | Change | Change | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 27,105 | $ | 38,670 | (11,565 | ) | (30 | )% | Net sales | $ | 26,692 | $ | 28,579 | $ | (1,887) | (7) | % | |||||||||||||||||||||||||||||||||||
Value-added sales | 21,896 | 25,803 | (3,907 | ) | (15 | )% | Value-added sales | 26,670 | 28,530 | (1,860) | (7) | % | ||||||||||||||||||||||||||||||||||||||||
Operating profit | 1,613 | 3,432 | (1,819 | ) | (53 | )% | ||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | EBITDA | 2,692 | 2,191 | 501 | 23 | % |
(Thousands) | Nine Months Ended | |||||||||||||
Sept. 29, | Sept. 30, | $ | % | |||||||||||
2017 | 2016 | Change | Change | |||||||||||
Net sales | $ | 90,742 | $ | 113,955 | (23,213 | ) | (20 | )% | ||||||
Value-added sales | 67,810 | 75,548 | (7,738 | ) | (10 | )% | ||||||||
Operating profit | 6,145 | 9,803 | (3,658 | ) | (37 | )% |
(Thousands) | Third Quarter Ended | (Thousands) | First Quarter Ended | |||||||||||||||||||||||||||||||||||||
Sept. 29, | Sept. 30, | $ | % | March 31, | April 1, | $ | % | |||||||||||||||||||||||||||||||||
2017 | 2016 | Change | Change | 2023 | 2022 | Change | Change | |||||||||||||||||||||||||||||||||
Net sales | $ | — | $ | — | — | — | % | Net sales | $ | — | $ | — | $ | — | — | % | ||||||||||||||||||||||||
Value-added sales | (1,542 | ) | (2,009 | ) | 467 | (23 | )% | Value-added sales | — | (756) | 756 | (100) | % | |||||||||||||||||||||||||||
Operating loss | (6,597 | ) | (5,883 | ) | (714 | ) | 12 | % | ||||||||||||||||||||||||||||||||
EBITDA | EBITDA | (6,655) | (5,177) | (1,478) | 29 | % |
(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 | % |
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | April 1, | $ | ||||||||||||||||||||||||||||||
(Thousands) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | 38,105 | $ | (14,304) | $ | 52,409 | ||||||||||||||||||||||||||
Net cash used in investing activities | (29,802) | (18,966) | (10,836) | |||||||||||||||||||||||||||||
Net cash provided by financing activities | (6,291) | 39,305 | (45,596) | |||||||||||||||||||||||||||||
Effects of exchange rate changes | 130 | (260) | 390 | |||||||||||||||||||||||||||||
Net change in cash and cash equivalents | $ | 2,142 | $ | 5,775 | $ | (3,633) |
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 | ) |
September 29, | December 31, | March 31, | December 31, | |||||||||||||||||||
(Thousands) | 2017 | 2016 | (Thousands) | 2023 | 2022 | |||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 15,243 | $ | 13,101 | |||||||||||||||||
Total outstanding debt | $ | 4,007 | $ | 4,615 | Total outstanding debt | 433,209 | 431,981 | |||||||||||||||
Cash | 22,486 | 31,464 | ||||||||||||||||||||
Net debt (cash) | (18,479 | ) | (26,849 | ) | ||||||||||||||||||
Net debt | Net debt | $ | (417,966) | $ | (418,880) | |||||||||||||||||
Available borrowing capacity | $ | 266,405 | $ | 238,886 | Available borrowing capacity | $ | 186,788 | $ | 185,294 | |||||||||||||
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 | 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) | ||||||||||||||||||||||
January 1 through February 3, 2023 | — | $ | — | — | $ | 8,316,239 | ||||||||||||||||||||
February 4 through March 3, 2023 | 26,823 | 107.67 | — | 8,316,239 | ||||||||||||||||||||||
March 4 through March 31, 2023 | 6,529 | 111.23 | — | 8,316,239 | ||||||||||||||||||||||
Total | 33,352 | $ | 108.37 | — | $ | 8,316,239 |
(1) | |||||||||
(2) | |||||||||
On January 14, 2014, we announced that our Board of Directors had authorized the repurchase of up to $50.0 million of our common stock. |
Item 4. | Mine Safety Disclosures |
Exhibits |
4.4 | Amendment No. 1 dated as of January 13, 2023 to Fourth Amended and Restated Credit Agreement dated as of October 27, 2021, by and among Materion Corporation (the “Company”), Materion Netherlands B.V. (the “Dutch Borrower” and, together with the Company, the “Borrowers”), the financial institutions listed on the signature pages hereof and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”), under that certain Fourth Amended and Restated Credit Agreement dated as of October 27, 2021 by and among the Company, the Dutch Borrower, the other Foreign Subsidiary Borrowers from time to time party thereto (filed as Exhibit 4.4 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022), incorporated herein by reference. | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
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: May 3, 2023 | ||||||||||||||||
/s/ | ||||||||||||||||
Vice President, Finance and Chief Financial Officer | ||||||||||||||||
(Principal Financial |