mtrn-20240329

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-15885

MATERION CORPORATION

(Exact name of Registrant as specified in charter)


Ohio						34-1919973
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

6070 Parkland Blvd., Mayfield Heights, Ohio 44124

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

(216)-486-4200

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	MTRN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨

Non-accelerated filer ¨ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

Number of Shares of Common Stock, without par value, outstanding at March 29, 2024: 20,730,895.

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

Materion Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)


	First Quarter Ended
(Thousands, except per share amounts)	March 29, 2024		March 31, 2023
Net sales	$	385,287	$	442,526
Cost of sales	314,075		351,190
Gross margin	71,212		91,336
Selling, general, and administrative expense	35,844		40,336
Research and development expense	7,142		7,621


Restructuring expense (income)	1,620		664
Other—net	4,357		5,775
Operating profit	22,249		36,940
Other non-operating income—net	(643)		(730)
Interest expense—net	8,279		7,502
Income before income taxes	14,613		30,168
Income tax expense	1,204		4,580
Net income	$	13,409	$	25,588
Basic earnings per share:
Net income per share of common stock	$	0.65	$	1.24
Diluted earnings per share:
Net income per share of common stock	$	0.64	$	1.23
Weighted-average number of shares of common stock outstanding:
Basic	20,679		20,566
Diluted	20,973		20,887

See notes to these consolidated financial statements.

Materion Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)


	First Quarter Ended
	March 29,		March 31,
(Thousands)	2024		2023
Net income	$	13,409	$	25,588
Other comprehensive (loss) income:
Foreign currency translation adjustment	(4,460)		2,689
Derivative and hedging activity, net of tax	2,260		(2,339)
Pension and post-employment benefit adjustment, net of tax	(173)		(67)
Other comprehensive loss	(2,373)		283
Comprehensive income	$	11,036	$	25,871

See notes to these consolidated financial statements.

Materion Corporation and Subsidiaries

Consolidated Balance Sheets


	(Unaudited)
	March 29,		Dec. 31,
(Thousands)	2024		2023
Assets
Current assets
Cash and cash equivalents	$	13,104	$	13,294
Accounts receivable, net	188,282		192,747
Inventories, net	466,574		441,597
Prepaid and other current assets	71,748		61,744
Total current assets	739,708		709,382
Deferred income taxes	4,751		4,908
Property, plant, and equipment	1,304,336		1,281,622
Less allowances for depreciation, depletion, and amortization	(779,893)		(766,939)
Property, plant, and equipment, net	524,443		514,683
Operating lease, right-of-use assets	62,055		57,645
Intangible assets, net	129,053		133,571
Other assets	25,231		21,664
Goodwill	319,943		320,873
Total Assets	$	1,805,184	$	1,762,726
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt	$	46,569	$	38,597
Accounts payable	134,542		125,663
Salaries and wages	16,030		25,912
Other liabilities and accrued items	40,602		45,773
Income taxes	2,079		5,207
Unearned revenue	14,793		13,843
Total current liabilities	254,615		254,995
Other long-term liabilities	13,304		13,300
Operating lease liabilities	59,887		53,817
Finance lease liabilities	13,242		13,744
Retirement and post-employment benefits	25,431		26,334
Unearned income	95,978		103,983
Long-term income taxes	3,686		3,815
Deferred income taxes	20,408		20,109
Long-term debt	428,710		387,576
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 29 and December 31)	324,492

SEC Form 10-Q filed by Materion Corporation