CMC Materials, Inc. | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2022 10-Q, filed May 5, 2022. Its latest SEC filing is a 15-12G from Jul 18, 2022.

The sections below describe the company as of the FY2021 annual report.

What Did They Do?

Sells polishing slurries and pads, high-purity chemicals, and semiconductor test-cleaning products to semiconductor manufacturers. Supplies pipeline additives, valve products, and maintenance services to pipeline companies.

How Did They Make Money?

Semiconductor customers buy polishing materials, chemicals and testing products; these product sales generally occur at shipment or delivery. Pipeline customers buy products and equipment, and also pay for services when completed; consigned products are sold when used.

revenue

Segment	Share	Revenue	How money arrives
Electronic Materials Sold outright	82% FY2018: 95%		Sold outright
Performance Materials Sold outright	18% FY2018: 5.1%		Sold outright

Who Were Their Customers?

Semiconductor customers are generally logic or memory device makers and foundries; CMC sells primarily through direct sales, with distributors in some areas. Pipeline customers include pipeline companies, service companies and utility distributors, reached through direct sales, channel partners, distributors and agents.

Did Revenues Turn Into Profits?

Not on paper. It lost $68.6M in FY2021, but brought in more cash than it spent: $228.5M of free cash flow.

Operating income, FY2021

−1% of revenue

▼ Now a loss vs FY2020 ($216.9M, 19%)

Net income, FY2021

−6% of revenue

▼ Now a loss vs FY2020 ($142.8M, 13%)

Free cash flow, FY2021

19% of revenue

▲ +42% vs FY2020 ($161.4M, 14%)

How Were They Changing?

Since the FY2021 annual report

Latest quarter: Q2 FY2022, the three months to Mar 31, 2022

Revenue: ▲ +12%; vs $290.5M in Q2 FY2021
Net income: ▲ Now profitable; vs −$149.8M in Q2 FY2021

Electronic Materials share of revenue from contract with customer, excluding assessed tax vs 83.5% in Q2 FY2021

Jul 6, 2022 Entegris completed its acquisition of CMC CMC became Entegris's wholly owned subsidiary, and CMC shares were removed from Nasdaq.
May 5, 2022 CMC issued fiscal 2022 outlook for adjusted EBITDA and third-quarter segment revenue It reiterated expected adjusted EBITDA of $355 million to $385 million and forecast low-single-digit third-quarter Electronic Materials revenue growth.

Grew. Revenue grew 2.4x in 4 years, from $507.2M in FY2017 to $1.2B in FY2021, about 24% a year.

Broader product range The earlier report centered on CMP consumables and described precision polishing applications; the latest also describes high-purity semiconductor chemicals, semiconductor test-cleaning products, and pipeline products and services.

Revenue over time

Electronic Materials Performance Materials

$2B$1B$0

FY2017 FY2018 FY2019 FY2020 FY2021

Who Did They Compete With?

Competes with DuPont, Avantor, BASF, Honeywell, Kanto, Technic, LiquidPower Specialty Products, and Baker Hughes