MTRN - Earnings call transcript Q3 2019

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Operator

Greetings and welcome to the Materion Corporation Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Steve Shamrock, Vice President, Corporate Controller and Investor Relations. sir. you, Thank

begin. You may

Steve Shamrock

President This and is Vijayvargiya, President, morning. Kelley, Shamrock, and Officer. Steve Relations. With Controller Vice Joe Investor and Jugal Executive Corporate Chief me Financial Chief Good Officer; Vice and today President is

call today's quarter will the as follows. an update on Our provide conference Jugal comments opening format is for on and Vijayvargiya key initiatives.

will questions. Kelley review the then we for detailed quarter, for call results Following open financial will the Jugal, Joe up and

that factors may investors section a any the statements we earnings question-and-answer begin, are remind forward-looking future Before those expectations. differ this contemplated that outlook press statements release me materially this in the we result by portion, current including and variety forward-looking announcement, company's as on let a made issued the actual the Those The listed performance are of in based morning. in from factors. of during

profit, items initiatives adjusted Attachment per adjustments. certain to the earnings and net non-recurring current in regard and with both in five impairments, year adjustments number numbers curtailment, comments GAAP income release. pension are this morning's made special prior comparative periods operating purposes Additionally, asset reduction for The income remove year press the for shown and tax cost reflect share in and

over Jugal And now, for turn I'll to it his comments.

Jugal Vijayvargiya

again now of We I'm bottom share operating Thanks, report results profit, for quarter. top earnings consecutive Steve. delivered per thanks Welcome, sales, the very growth. XX quarters quarter third achieved and pleased to once records and and the line call. and joining financial for for margin operating have both everyone record value-added

to profitable our today on execute company position results to deliver growth. for and sustainable continuing multi-pillar growth the are strategy long-term We

of couple quarter from transformation. a in support highlight third of our continued me the Let developments

Interior, to in high-purity a critical Elmore, the the to government beryllium metal partnership of pleased Department contract of beryllium in one listed as Today, upgrading response executive XXXX work the minerals. U.S. announce processing award our of in Department of of XX Defense an in order, U.S. I'm the In to Ohio. with capabilities

may customers. at the Production aware, project increase you to facility. both the plant program Act high-purity processing the be hemisphere, at As capabilities previously government's and western partnered latest in to us Elmore facility beryllium U.S. serve enabling construct Title beryllium will only This U.S. metal the efficiencies Defense we the global better government commercial III the with and production

strengthen partnership Department assets U.S. Defense The Beryllium Department our in Interior as of the the only beryllium illustrate fully-integrated our and and designation our will of with the strategic position importance of the world. supplier

top microelectronics President and as establishing to front, pleased Leo On Solutions. an Group over industries OM significant and at Asia most growing be chemicals in Element strategy. Haas, strengthen our talent. experiences IBM, our of to continued at important team growth extensive am with the high-performing experience specialty experience of organizations with within Dow, years will XX Leo's global enabler Rohm organization building business recently welcome businesses and and to the we brings Advanced industry global Leo Materials have I segment. Linehan

me share let headwinds. We've Now, the offsetting the full macro QX had tremendous on year. success some comments and

long-term to region particularly We're QX in order in taking increasing is effect short-term impacting these with multi-pillar deliver to softness necessary markets. and negatively pressure the see focused all executing growth. remain industrial our look of in China. One We strategy continued actions we and As automotive headwinds entry profitable end Materion the America on telecom North

XX% to With year-over-year which through full the the represents performance the expected and are guidance $X.XX, $X.XX a performance in improvement. QX delivered we narrowing QX, to year

turn cover financials. the will over will Now, the Joe who I call to

Joe Kelley

call today. welcome you, And the to joining everyone Thank us on Jugal.

review provide assumptions profitability earnings and highlights, During my for brief balance cash XXXX and on XXXX. the comments comments, the I by outlook will cover sheet, modeling quarter segment, finally financial cover flow, third

will represent year-over-year sales the in for XXXX profit. consecutive am line quarter we and XXth quarter remarks, strong which my value-added open growth questions. Following the adjusted both I pleased with results, report operating financial to third

The third X% sales, the the pass-through impact third value-added quarter year prior XXXX $XXX.X metal were million which costs of up exclude versus quarter.

The shipments. by and beryllium new in market strength market the driven plus wins increase was timing hydroxide and end defense aerospace of application the

large and investors, shipments those the understand hydroxide be company beryllium who For of orders can you inconsistent the have quarter-to-quarter. followed timing defense

quarter end selling telecom we softness and reduced the in favorable saw Automotive data for was data adjustments, China to China. Offsetting bands into and gains were in center contributors market third market. the were tariffs and XXXX, down the of end In due in center inventory markets. and these automotive demand company-specific the movement both and primary sales the decline and telecom value-added particularly to sales Europe end items.

percent with a offset Gross as value-added gross the Benefits in year was between quarter. unfavorable the value-added profit Expressed were prior margin the mix third sales growth margin XX% segments. $XX.X sales in consistent by was third sales of quarter quarter. million from

million commercial spending sustainable Selling, of resulted expenses, and growth. offset prior deliver a reduced of resources The improvement or investments lower the percentage. general profitable to combination by amount year administrative sales, and from an from in decrease partially core strategic expenses XX% value-added and totaled $XX.X variable

R&D quarter, increased long-term position to sustained increase the have company the $X.X million in product year, investments the XX% over development profitable growth. a prior for expense we for new totaled as

line. test the blood quarter, segment to strip Precision supports company actions Coatings product our restructure in coatings area the During large the the that took glucose business

pressure increase the and The testing sustained The forecasted in and volume a impairment non-cash cost million the by reduction charge product the in and non-cash restructuring other pricing sales asset an impairment rates of $X.X $XX.X goodwill and lower line asset triggered in volume palladium. quarter reimbursement impairment been resulting million driven actions charge. has under in

$XX.X severance-related the non-cash quarter plant. operating amount Adjusted restructuring value-added sales. $XX.X million which of of the cost separated of excludes represents This totaled over XX% a XX.X% the and the million or of for addition, for and is operating record third we XX rightsize an prior profit. increase In $XXX,XXX employees profit, to year impairments

combined and of and recorded third consistent is the tax volume quarter tax goodwill in initiatives of growth of reform to we in sales which rate Shifting statutory the The quarterly items to Commercial an income improvement have taxes, XX exceeded over of $X.X effective past profitability effective operational expense XXXX, with a rate delivered related rate discrete year-to-date impairment quarters. the rate legislation. and tax XX%. because million

to year forecasted our income adjusted was full recorded the tax per rate discrete or totaled items, tax quarter quarter Adjusted third XX% diluted net XX% XXXX. an $X.XX million rate. the these in two per Excluding effective share, comparable of from of for up $X.XX share third XXXX for quarter the our $XX.X

initiatives record Our differentiated level financial to operational product deliver portfolio and performance. focused commercial continues execution on and

review third $XXX me alloys quarter million, business XXXX versus of quarter let up with first X% Now third segment. performance Value-added sales the Starting by performance XXXX. were and composites.

with market, contributed in plus aerospace and defense which corrections. growth. more application increased decreases shipments combined in automotive decreased end end strength These beryllium the with products significant beryllium Continued specifically hydroxide markets inventory is seeing offset demand products of defense the wins volumes to in high-purity

telecom market the challenged center disputes. data addition, and trade end particularly by has ongoing been In the

in leverage value-added fifth XXXX which and the or to has commercial XX% marks This improvements prior million sales, quarter than operational XX% up third the $XX.X in we profit margins quarter this the as delivered million XX% over drive offering. $XX.X totaled of segment year. profit consecutive differentiated product the of Operating the continue segment's greater

end the quarter have end uncertainty. third dispute served has the Value-added contributed offset Looking been at the most in largest of cyclical value-added quarter third for $XX.X compared market Advanced Growth softness China-U.S. in to challenged $XX.X million. This consecutive business Materials million company-specific sales market in were XXXX latest sales segment. quarters to of segment's the XXXX markets ongoing and trade and semiconductor. continued several the end bands to

Operating mix compared $X.X semiconductor with the profit or XX.X% prior sales segment. of $X.X to driver this is softer the for year value-added in XXXX sales quarter. profit totaled of million profit third margins the sales Unfavorable pressuring operating for of million primary quarter

returning levels profit semiconductor softness target in of to Continued segment the market XX% year-end. historic by this of the challenges

to segment. Precision Coatings now finally Turning

slightly value-added million growth in $XX large coatings sold of quarter end value-added third the sales into area and quarter in offset consumer $XX.X recorded below the industrial lower of medical sales sales the in by Third were primarily to optical applications. million products products in electronics due XXXX, coating market,

the this for sales, quarter of totaled in XX% as in third XXXX compared operating prior profit segment the current XXXX. Adjusted the third and quarter. $X.X million quarter value-added was a year percentage both in Expressed million to year $X.X margin of profit operating of

in offset of has end large volume growth the sales of product optical the market, line line coating portion a mix significant Despite and pressure. coating the in to able into decrease profit improvement the area medical products been

now sheet cash receivable in significantly growth. and in XXXX year-to-date pension the flow offset compared to improved Moving $XX by the support cash increased prior to stronger million flow. earnings balance due to investments Operating lower year to the and sales contributions, accounts

deterioration balances From quarter a and calendar year. should has perspective, been no day the close as in receivable the there outstanding normalize sales we

opportunities, in to further We position priorities available a ending support quarter earlier have of return a liquidity cash balance capital sheet, in maintain million inorganic growth continue including allocation and opportunities organic consistently to to net calls, $XX very mentioned shareholders. growth strong the significant and capital

run above spending modeling optimize approximately The amortization Annual adjusted million. should should mine approximately to investments be rate chain. $XX items $X supply Mine average approximately beryllium XX% tax depreciation financial amortization discrete should inventory development XXXX, For to for in million as integrated $XX due million. we purposes XX%. be the run capital and should

earnings XXXX. the now finally, And for outlook

now of favorable commercial year-over-year growth, top operational mix, sales growth We structure. by and manufacturing improvements, consecutive including line improved cost new and have profit driven efficiency delivered product and product XX performance quarters

to full forecasted order activity than XXXX the this XXXX year year and adjusted are represents previously share. demand, $X.XX greater share to earnings our guidance Based to on per $X.XX earnings, improvement our XX% per from $X.XX end we range The over earnings a narrowing of third forecasted the market consecutive and range of $X.XX growth. midpoint current XX%

This our concludes remarks. prepared

questions. open now for will the We line

Session Question-and-Answer

Operator

Thank you.

will with first question-and-answer Our comes [Operator question. Instructions] Marshall Please be Edward Sidoti. with of proceed your the conducting session. line a question We from

Edward Marshall

you? are How morning. Good guys. Hi,

Jugal Vijayvargiya

Good morning, Ed.

Joe Kelley

Ed. Good morning,

Edward Marshall

when and processing significant initially So, guess some tolerances that you in. like up beryllium delays I That place. guys, facility around the and getting kind in pebble the was of plant put getting more faced faced the

As you about. the talked upgrade kind of embark efficiency on, that maybe you

about that of avoid curious occurred? And have some kind Thanks. timing discussing? looks of team, management are might what from the you've of pitfalls past kind kind Just and we like? the what learned of potentially to What those investment

Jugal Vijayvargiya

Yeah. for Ed your thanks question.

$XX million as the you project by earlier. a that was So it's The building actually we did project investment the working that it already happened not that that on we we're the indicated upgrading have. that government is now facility facility,

we've done initiatives of got What this the project a we some lessons program actually thing. that do got good lessons have in details. extensive walked is, disciplined this. you're we those specific talking we're looked actually that done to we're sure that leader specific at and We've the The going with that to of we've reviews a regular execution through management all number with set follow on has make on basis and about, going have place that

indicated, project aligned. that build that initial we compared with specific initiatives it's did I fairly a to small are the As

a understanding good multiyear really a of it. got we've project. is It think I So

So upgrade we that of a year will be year type expect X X a happen. to to it around

so So management learned a monitoring it be successful four we've and incorporated, believe three project in place the very it's got on project basis disciplined that next the a careful we'll lessons we've I to years. got over good

Edward Marshall

What's said the relative, the fairly of upgrade? You small. size

Jugal Vijayvargiya

project of to I'm The the say upgrade in to million million is from the $XX size probably government. the going $XX

Edward Marshall

Or this it. time costs the around believe Does on the well? took fully XX% the therefore that government capital last And that -- this how is as work? Got time of that depreciated occur and does capitalized associated the I it. with

Jugal Vijayvargiya

Yes.

structure through well. similar with and contract are the similar government that a we as this time working have We

Edward Marshall

the at particularly China. I of opportunities think in look customers of about -- semis resourcing internationally When of some is past we've changing and your Great. and how maybe the world and I in for kind how -- talked

color mean move of As the so that are maybe retaining we kind or and Any to where in you we could forth? I add of be customers would that context about comments great. think semis you forward,

Jugal Vijayvargiya

Yes.

tariff there negatives situation you there and and to know and are contributing impact from think some is indirect I our I are as perspective, to mean situation area. positives negative there a semiconductor that China in business. related some some the issues the are clearly this direct to trade

the South that time say our Korea time, contributing some same are lead and discussions of I'll the Japan may things discussions some in that at and over But some positive way. to between materialize

say I'd is So there some both.

to related maybe get Korea the sometime course XXXX a happening these perhaps of we discussions. China little related will through items in the to items and later timeframe. bit some The until longer Whereas term, are continue of now

So expect balance, I to of I are neutralize longer on over of it think negatives. say some in But sort period I'd time. positives general, a and there

Edward Marshall

And kind kind what the in of adjustments we see of you growth occurred it. we called into as out look Got rates. the -- auto

it maybe with how fourth think the As you quarter I and strike look of occurred that the about that guidance and the to GM. I provided kind relates into

are curious be of post say guidance? of go that how the baking we And much kind you impact QX non-recurring that move into into XXXX? Just would of much as how

Jugal Vijayvargiya

Yeah.

first just So market automotive me in about let general. talk

on diversified. business quite Our is automotive

In European fact markets. and majority business Asian of in up ends our in the automotive that is

particular in And of North strike America in mentioned. not an so there that to as you is the large impact

is that Certainly, all aware and know Automotive X% in XX% we're down it's seasonality down for general over Europe, as there America to China. in to of. North in automotive significantly. down is XX% over X% Year-to-date you

impact wouldn't that but related there So say necessarily to due clearly is automotive, to strike. I the it's

as but as market challenged -- to continue start they really will kind continue us. to of until QX, some inventory challenged continue work to very flat, be through we a strength, QX China for for to we us, and corrections some automotive and expect we're Europe relatively to automotive be show

Edward Marshall

step Got one the I'm But increase for out basis in versus outlook not last anticipate look XXXX? the it. the -- XXXX to the down do -- XXXX, quarter looking I I quarter at will organic providing on an from if you're today. we And wondering me if earnings fourth could. you when three, that in know

Jugal Vijayvargiya

let and we're XX% EPS year-to-date far the talk And our third have you as growth. in a all, so in to of that the When full down a represents about over in deliver row first step look what Well, of XX% me what well point QX we year that's at Yeah. just delivered about guiding your improvement QX. year plus XXXX. as

at it focus a over basis our significant So We've I One progress talked basis, the growth. made last see think our sustainable the full to when We've that year we our has years, talked look a strategy. business on the be year-over-year you on Materion year-over-year growth. continues made and about profitable three about has

make is expectation, driving work So difficult continue to even and it our it is basis. these to we're an times drive growth our very during that ongoing on sure to

basis on plus basis. we've row growth said, done an to at be that I able ongoing do XX% a years we As that a on in and expect to three long-term for

some continuing the macro a important headwinds. very, large are despite really make strategic very investments, of to We

remarks increased R&D Joe quarter. that actually R&D the by XX% his the indicated in we've expense, expense in

we're resources We sure to our making excellence. focus in and continue on investing commercial our commercial that

really We improve in our structure as involved are really, to heavily we cost go continue forward.

yearly basis. are on to and expectation strategic be growth the we drive that company our would a long-term continue really So, of focused improvement on we this

Edward Marshall

Thanks I it. Got guys. appreciate much very the comment.

Jugal Vijayvargiya

Ed. Thanks,

Joe Kelley

Thanks, Ed.

Operator

the line proceed Marco question. [Operator of Instructions] next Stonegate question Capital. Our comes from your with Please with Rodriguez

Marco Rodriguez

Thank my taking Good you morning guys. questions. for

Jugal Vijayvargiya

Marco. Hi,

Joe Kelley

Marco. Hey,

Marco Rodriguez

Materials bit obviously there. Hey. then about maybe semiconductor could the wondering if And a Advanced I we little was segment. talk the impacts

with future so operating kind as semi you guidance And of goals looking terms have concerned. far, in very as what's the the XX% semiconductors. far to is not of with that their of on still challenging guys guys hot hitting thus that reported alluded near Some be margin the going

sounds goal? pushed you as right can we being to talk as a the about more that be maybe about it's little bit bit? Obviously maybe So that little just it a far thinking how should out like

Jugal Vijayvargiya

believe goal. types done and expect we first still deliver business that And very deliver let of we've that will those margins. highlight make Historically is absolutely Well, it margins. of margin operating Yeah. clear our goal that and we me those XX% very, types that should and

I the think that timing. to is get we issue

really, the there. you ago, we're we business year we're tell a and that did on internally, to can doing the the all I really progress of that the that improvements continue that work in restructuring number absolutely make are we driving good track

two-thirds semiconductor you business this AM semiconductor for highlighted is macro, on The in of the market.

So I roughly continues very it's it to year, down and this challenged. far XX% year-over-year be think

mean, potential and of as more the semiconductor we on down on road. see potential the invest to Internet projects, more memory Things. the on good invest we XG, as semiconductor I we invest However, for growth related we more that as

this our So are strong the margin. committed very market I long-term think to as as prospects well of business are the and XX% we

the Just the issue that timing is the some have of through we and I challenges think macro near-term. in working simply

Marco Rodriguez

shifting side, of, are are factors other the that Understood. the that bit Coatings took device challenging the Are here to you as is that the reimbursement little I there that not related a well? Is is glucose -- Then, driving medical or were any there general? the charges gains were some just share in gears Or Precision that I'm business? kind that that test market to in there strips. loss it some that aspects business, if impairment particular pretty mistaken challenging think business. still before that occurring much obviously,

Joe Kelley

Yeah.

the was reimbursement been that for rate, under ago. large business, allocation unit one coatings years few It several So reportable the It would I that past issue volume. is has say from a business one share pricing the years pressure is when you think about segment dealing or that Coatings with our the with area inside Precision is and the affected.

But or what's that pressure business. optical been outperforming covering is the up coating

large is growing within that that So been other the and nicely. the segment Coatings has business Precision

the last coatings in segment the years, Coatings VA. our articulated, the optical relatively That's several Precision the the offset reasons I flat large over business. growth So for area has pressure on delivered the by coatings

And forecasted area market. the volumes large serves so medical end coatings relate the future business, of the primarily charge impairment which specifically to the

Marco Rodriguez

that -- And medical the I or blood in altered a there, period? was think glucose dramatically little one-third just mix. challenges since the segment given over of bit XXXX year-to-date side that Has for the the for the revenue

Joe Kelley

Yeah.

there as the year-to-date years last piece the continue it's also coatings larger -- changing the optical several represent pie. improved. mean, of has I So the has look XX.X. over if margin been of at it the profit at has mix that segment to running a you And

mix I mix this helped So improvement the shift has coatings towards or profit say drive optical growth. would us

Marco Rodriguez

decline And you. on at the substantial a sequential and kind of a large here line. Got on then look side, the SG&A expenses year-over-year SG&A taking or obviously, fairly --

you with of level I pointed Is reduction think that $XX any, need that a of has or as that out in to reductions are to so? some be million I'm spending. quarters cost in the well. you Or in assuming did rate? good core this the in, run sort excessive some say, restructuring do couple of, one-time there put let's next back A&M

Joe Kelley

Yes.

were standpoint. initiatives. that I But is a systematic a cost-saving low. So variable large run I'd there were relatively say of do expenses abnormally in low reduction think it balance, But call was the more I'll year-over-year some rate portion some -- from

Jugal Vijayvargiya

Yes.

gain to our SG&A at are fact customer-facing in Whereas I sure improve in investing those thing, regions. are very investing though to looking that of controlled. we're the importantly not that of more something costs only one think And the more more is but are that that we SG&A very, all office is essentially, and highlight I investing opportunities type efficiency. want to addition in think and we the back I making

to help on we've long-term position several feet ground grow be So adds business basis. and business on us a to to and the made our Asia Europe with the able

importantly So SG&A of more I overall think mix spending. SG&A think one but of is the us is the cost the for I makeup

mix on focused SG&A quite so the And we're spending. of makeup the

Marco Rodriguez

question quick Got if may. I it. That's helpful. And last

in Just thought movements were and capital accounts would like fairly of some kind working you it a looking substantially the you kind of mention at looked But healthy year-end. that of receivables the inventory. by decline that normalize did here up

Just in -- kind color little what Just quarter? kind movements of a about of here some driving talk you maybe bit can those the that? to

Joe Kelley

Yes.

spoke then of sales the zero deterioration. balance. From sales which As quarterly is beryllium terms value-added the of very hydroxide, September orders the the of we a both also high, sales there's of our in large defense about we shipments beryllium abnormally outstanding quarter hydroxide. driving Those month for were and performance at so end mentioned in were the products been beryllium and receivable days

normalize And the so as that go the we we to fully year. end anticipate to of that

the On we've tell the years. of inventory lowest in the is will I five level had that you inventory past over side, --

our that so clearly And level. driving to efforts and working capital efficiency as working it are there improvements lower and relates inventory

Marco Rodriguez

Got a I time. guys. it. your lot Thanks appreciate

Joe Kelley

Thank you.

Jugal Vijayvargiya

Thank Marco. you,

Operator

the from KeyBanc. question your line comes with question. of Please proceed with Phil next Gibbs Our

Phil Gibbs

good morning. Hey,

Joe Kelley

morning. Good

Jugal Vijayvargiya

morning, Phil. Good

Phil Gibbs

just The spending markets year XXXX terms just in potential what And the you're seeing that question on is be backdrop? there is that there? can in election given it's on uncertain and if an anxiety of any defense

Jugal Vijayvargiya

Yes.

good the good things the be some highlighted a that that general, defense about for coming to in market just received are I continued progress has And that performer orders there. we of in So there orders Joe the is us. think

tend longer on we working be to In mean general projects. I term more

long-term short-term negative so changes we the And rate focused on because whether are just positive necessarily order project. impact or may the not more to

the favorable some with change I faced prospects get general that the in play the for of us. is think that or could performer But what authorities there long-term If there continues and some some change mean I approval potential changed a indication last similar administration market be time. be some into appointees to come other in to a delays basis, we

Phil Gibbs

terms impacting missed anything highway just the side you're specifically the thing in I telecom that in it, you. of if Thank I seeing but is the macro? And apologize

Jugal Vijayvargiya

and indirect are clearly direct Yes, direct I both a basis. mean impact for us on sales an the

not As directly deal you know allowed to companies are with them.

development therefore in our activities when normal work. And day-to-day that so normal and some XG of to it impacts discussions comes particular the

we well impact then and an a certainly an company mean That is And that we basis, with supply the a who I we're also. that's to on have deal -- is as indirect one them of macros facing. that that

Phil Gibbs

much. very Thanks

Operator

next Our is from Sidoti. Marshall Please question Edward with follow-up your a with question. proceed

Edward Marshall

to to acquisitions Jugal excess balance just perspective. curious initiatives is if one under-levered essentially upgraded and are and sheet on a mean -- we and eventually The probably capital those for go where of is of you around. to I that's so want base I'm now in And a of you've get a my cycle. that's the good nothing to capital But sense getting given you're got to -- growing put Materion going thing economic the facility you I business. lots the with came work

briefly but about maybe think And commented just think kind can know we we cetera? forward? about earlier, are reach? thirst. of of of deals what some sizes how the think how about et -- far you'll And going think kind I'm I you kind of you

Jugal Vijayvargiya

Yes.

position of capital course, have good and we do indicated. as we a you have So, access good cash to

definitely you that there thinking. have our macro So, indicated, time the we are as in put conditions flexibility. now caution same certainly right But at

right the However, we are up. on comes to the thing fully assuming committed -- sheet leveraging balance

been -- companies. have various have We talking to actively in we involved actively

say ongoing. number I'm that to are projects going a continuously have of We

have that not the to We we the help company. projects think will able been find right

been in a that growth. And we Our efficiency side. I focus focus first M&A organic management, dedicate think internal can the the the years cost now improvement, as more into have really been company of we we've couple to for position lot and both

comfortable get leverage to that times of be provided know From a to standpoint, be because perhaps path mean times, willing -- we talked back down we'd what three go a would EBITDA, as X.X to probably be we I to that before, we've with. we'd kind

they we one-shot have probably be can make the deals them, transformational to that There's And that bolt-ons. would focus to medium-sized larger sure because of of type more a nothing the be would company. type of but We want on for right transaction, against transactions. the sort deal a really

And the made and with back with make we bring three that something things. all that last to that progress sure wouldn't over integration do challenges the we want to other we've years, that

focused on we're side. organic organic the very very well involved are expenditures, where could and that, think investments months. the XX have of making is that the on things on organic next side, There be number a we to XX we over in, we utilized So, capital

us the focus its right on clearly then deal a inorganic, And we is can for find. with the of type that

as So, we as involved. communicate. have will And we that actively we're said, certainly I on progress

Edward Marshall

I very much. appreciate your thoughts. Thanks

Jugal Vijayvargiya

Ed. you, Thank

Operator

have to you, further I at we Shamrock, Mr. no questions for closing time. comments. to this would over back now like turn floor the

Steve Shamrock

A concludes our company's the on website, earnings playback is will and third This quarter you. this call. available this recorded XXXX call of Steve Thank be Shamrock, materion.com.

Thank be your to in would this for morning very available you any much. XXX-XXX-XXXX. of follow-up all will Materion. My number thank We participating you interest call on and questions. like is the answer to direct I

Operator

this Ladies teleconference. conclude and today's does gentlemen,

time. day. your wonderful Thank may And You at for you disconnect lines this have your a participation.

Materion (MTRN) 24 Oct 192019 Q3 Earnings call transcript