2016 Q2 Form 10-Q Financial Statement

#000110465716000176 Filed on April 29, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2
Revenue $15.24M $17.56M
YoY Change -13.23% 56.51%
Cost Of Revenue $192.2M $237.7M
YoY Change -19.15% -0.21%
Gross Profit $43.36M $52.36M
YoY Change -17.19% 5.13%
Gross Profit Margin 284.53% 298.12%
Selling, General & Admin $30.49M $37.93M
YoY Change -19.63% 9.36%
% of Gross Profit 70.32% 72.45%
Research & Development $3.452M $3.348M
YoY Change 3.11% -2.76%
% of Gross Profit 7.96% 6.39%
Depreciation & Amortization $11.31M $11.91M
YoY Change -5.05% 19.09%
% of Gross Profit 26.08% 22.75%
Operating Expenses $33.94M $41.28M
YoY Change -17.79% 8.27%
Operating Profit $7.532M $13.23M
YoY Change -43.08% -9.17%
Interest Expense $415.0K $657.0K
YoY Change -36.83% -2.23%
% of Operating Profit 5.51% 4.97%
Other Income/Expense, Net
YoY Change
Pretax Income $7.117M $12.58M
YoY Change -43.4% -9.51%
Income Tax $1.749M $3.591M
% Of Pretax Income 24.57% 28.56%
Net Earnings $5.368M $8.984M
YoY Change -40.25% -5.54%
Net Earnings / Revenue 35.23% 51.16%
Basic Earnings Per Share $0.27 $0.45
Diluted Earnings Per Share $0.27 $0.44
COMMON SHARES
Basic Shares Outstanding 20.02M shares 20.14M shares
Diluted Shares Outstanding 20.23M shares 20.49M shares

Balance Sheet

Concept 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $18.90M $21.90M
YoY Change -13.7% 20.99%
Cash & Equivalents $18.87M $21.94M
Short-Term Investments
Other Short-Term Assets $12.90M $30.50M
YoY Change -57.7% 13.38%
Inventory $213.2M $237.0M
Prepaid Expenses
Receivables $112.9M $117.1M
Other Receivables $0.00 $0.00
Total Short-Term Assets $357.9M $406.6M
YoY Change -11.99% -3.56%
LONG-TERM ASSETS
Property, Plant & Equipment $267.3M $248.4M
YoY Change 7.63% -1.47%
Goodwill $86.73M $86.73M
YoY Change 0.0% -2.28%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $5.996M $4.868M
YoY Change 23.17% 0.35%
Total Long-Term Assets $399.2M $374.5M
YoY Change 6.57% 1.44%
TOTAL ASSETS
Total Short-Term Assets $357.9M $406.6M
Total Long-Term Assets $399.2M $374.5M
Total Assets $757.0M $781.1M
YoY Change -3.09% -1.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $32.62M $38.05M
YoY Change -14.28% 15.46%
Accrued Expenses $21.09M $41.17M
YoY Change -48.78% -13.93%
Deferred Revenue
YoY Change
Short-Term Debt $23.11M $667.0K
YoY Change 3364.62% -98.0%
Long-Term Debt Due $23.10M $700.0K
YoY Change 3200.0% -97.9%
Total Short-Term Liabilities $100.1M $94.50M
YoY Change 5.89% -23.35%
LONG-TERM LIABILITIES
Long-Term Debt $14.05M $50.79M
YoY Change -72.33% 8.18%
Other Long-Term Liabilities $18.24M $17.85M
YoY Change 2.17% 9.85%
Total Long-Term Liabilities $32.29M $68.64M
YoY Change -52.95% 8.61%
TOTAL LIABILITIES
Total Short-Term Liabilities $100.1M $94.50M
Total Long-Term Liabilities $32.29M $68.64M
Total Liabilities $132.4M $163.1M
YoY Change -18.87% -12.52%
SHAREHOLDERS EQUITY
Retained Earnings $503.2M $484.2M
YoY Change 3.93% 6.33%
Common Stock $210.2M $201.8M
YoY Change 4.13% 0.88%
Preferred Stock
YoY Change
Treasury Stock (at cost) $150.1M $141.7M
YoY Change 5.94% 16.83%
Treasury Stock Shares
Shareholders Equity $488.1M $464.9M
YoY Change
Total Liabilities & Shareholders Equity $757.0M $781.1M
YoY Change -3.09% -1.23%

Cashflow Statement

Concept 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income $5.368M $8.984M
YoY Change -40.25% -5.54%
Depreciation, Depletion And Amortization $11.31M $11.91M
YoY Change -5.05% 19.09%
Cash From Operating Activities -$16.68M -$4.067M
YoY Change 310.03% -118.74%
INVESTING ACTIVITIES
Capital Expenditures $5.714M $7.196M
YoY Change -20.59% -205.82%
Acquisitions $0.00
YoY Change
Other Investing Activities -$4.000M -$3.700M
YoY Change 8.11% 1750.0%
Cash From Investing Activities -$9.744M -$10.94M
YoY Change -10.96% 56.34%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $462.0K $768.0K
YoY Change -39.84%
Debt Paid & Issued, Net $227.0K $13.93M
YoY Change -98.37%
Cash From Financing Activities $20.60M $24.48M
YoY Change -15.84% -253.97%
NET CHANGE
Cash From Operating Activities -$16.68M -$4.067M
Cash From Investing Activities -$9.744M -$10.94M
Cash From Financing Activities $20.60M $24.48M
Net Change In Cash -$5.816M $9.470M
YoY Change -161.41% -889.17%
FREE CASH FLOW
Cash From Operating Activities -$16.68M -$4.067M
Capital Expenditures $5.714M $7.196M
Free Cash Flow -$22.39M -$11.26M
YoY Change 98.79% -139.52%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Materion Brush Inc., one of the Company's wholly-owned subsidiaries, is a defendant from time to time in proceedings where the plaintiffs allege they have contracted chronic beryllium disease (CBD) or related ailments as a result of exposure to beryllium. The Company will record a reserve for CBD or other litigation when a loss from either settlement or verdict is probable and estimable. Claims filed by third-party plaintiffs may be covered by insurance subject to deductibles which vary based on when the exposure occurred. Reserves are recorded for asserted claims only, and defense costs are expensed as incurred. </font><font style="font-family:inherit;font-size:10pt;">One</font><font style="font-family:inherit;font-size:10pt;"> CBD case remains outstanding and </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> case is on appeal as of the end of the </font><font style="font-family:inherit;font-size:10pt;">first</font><font style="font-family:inherit;font-size:10pt;"> quarter of </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, and the Company does not expect the resolution of these matters to have a material impact on the consolidated financial statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has an active environmental compliance program and records reserves for the probable cost of identified environmental remediation projects. </font><font style="font-family:inherit;font-size:10pt;">The reserves are established based upon analyses conducted by the Company&#8217;s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies.</font><font style="font-family:inherit;font-size:10pt;"> The undiscounted reserve balance was </font><font style="font-family:inherit;font-size:10pt;">$5.7 million</font><font style="font-family:inherit;font-size:10pt;"> at both </font><font style="font-family:inherit;font-size:10pt;">April&#160;1, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">. Environmental projects tend to be long term, and the final actual remediation costs may differ from the amounts currently recorded.</font></div></div>

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