|Bid||168.89 x 1300|
|Ask||169.06 x 4000|
|Day's Range||168.23 - 172.00|
|52 Week Range||85.26 - 174.87|
|Beta (5Y Monthly)||1.28|
|PE Ratio (TTM)||58.39|
|Earnings Date||Aug 05, 2020|
|Forward Dividend & Yield||1.76 (1.04%)|
|Ex-Dividend Date||Jun 23, 2020|
|1y Target Est||160.00|
* Revenue of $274.7 Million, 1.0% Higher than Last Year Primarily Due to Growth in CMP Slurries and Wood Treatment * Diluted EPS of $1.17, 82.8% Higher than Last Year; Adjusted Diluted EPS1 of $1.80, 13.2% Higher than Last Year * Expecting Total Revenue for the Fourth Quarter of Fiscal 2020 to be Up Low Single Digits Sequentially * Provides Full Year Fiscal 2020 Outlook AURORA, Ill., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Cabot Microelectronics Corporation (Nasdaq: CCMP), a leading global supplier of consumable materials to semiconductor manufacturers and pipeline companies, today reported financial results for its third quarter of fiscal 2020, which ended June 30, 2020.Key HighlightsTotal company revenue increased 1.0% over the prior year driven by stronger demand for CMP slurries and CMP pads, as well as higher wood treatment business revenue, which more than offset lower revenue in pipeline performance products, primarily due to softer industry conditions. Net income for the quarter was $34.5 million. Adjusted EBITDA was $92.0 million in the quarter, up 7.3% compared with the prior year. Year to date, the company generated $204.1 million in cash flow from operations, and had $354.7 million of cash on hand and $1,076.0 million in total debt as of June 30, 2020, which includes the $150 million drawn from the company’s revolving credit facility in the second quarter.“We are pleased with our results this quarter, which demonstrate the continued strength and resiliency of our businesses as well as our team’s ability to execute, despite the unprecedented business environment. I am proud of and thankful for the efforts and dedication of our employees globally, who continue to maintain our essential operations and support our customers despite these challenges,” said David Li, President and CEO of Cabot Microelectronics Corporation. “Although near-term outlook remains uncertain across our end markets, we see steady demand from our semiconductor customers as well as improving conditions in our pipeline performance business in the fourth quarter. We expect to continue to drive growth and best in class profitability by leveraging our positions in the most advanced and challenging technologies as well as our deep customer relationships.”Key Financial Information for the Third Quarter of Fiscal 2020 * Revenue was $274.7 million, 1.0% higher than the revenue reported in the same quarter last year. Revenue was down 3.3% compared to the prior quarter primarily due to softer oil and gas industry conditions that negatively impacted revenue in pipeline performance products. * Net income was $34.5 million, 82.9% higher than last year. Adjusted net income was $53.1 million, 13.3% higher compared to adjusted net income in the prior year. Adjusted net income benefited from higher revenue, lower operating expenses, and lower interest expense in the quarter compared to last year. * Diluted earnings per share (EPS) was $1.17, 82.8% higher than last year. Adjusted diluted EPS was $1.80, 13.2% higher than adjusted EPS in the same quarter last year. * Adjusted EBITDA was $92.0 million, up 7.3% compared to adjusted EBITDA in the same quarter last year. Adjusted EBITDA margin for the quarter was 33.5%, compared to adjusted EBITDA margin of 31.5% in the same quarter last year. Electronic Materials – Revenue was $220.4 million for the quarter, 3.9% higher than revenue in the same quarter last year. Higher revenue for CMP slurries and CMP pads offset slightly lower revenue for electronic chemicals. Adjusted EBITDA was $76.9 million, or 34.9% of revenue.Performance Materials – Revenue was $54.4 million for the quarter, 9.0% lower than revenue in the same quarter last year. The decrease was driven by lower demand for pipeline performance products, which more than offset higher revenue in the wood treatment and QED businesses. Adjusted EBITDA was $27.0 million, or 49.6% of revenue.Guidance for the Fourth Quarter and Full Year of Fiscal 2020 With continued uncertainty as to the ongoing macroeconomic and industry impact of the COVID-19 pandemic, the company currently expects fiscal fourth quarter revenue to be up low single digits compared to the company’s revenue in the third quarter of fiscal 2020. Sequentially, Electronic Materials revenue is expected to be approximately flat to up low single digits and Performance Materials revenue is expected to be up low to mid-single digits.The company currently expects full fiscal year 2020 adjusted EBITDA to be between $357 million and $362 million. Additional current expectations are provided on slide 8 in the related slide presentation. Refer to financial tables and “Use of Certain GAAP, non-GAAP Adjusted Financial Information” in the press release below for information about these non-GAAP financial measures and reconciliations of these non-GAAP measures to their most comparable GAAP measure.RELATED SLIDE PRESENTATIONA slide presentation related to this press release will be available at ir.cabotcmp.com in the Quarterly Results section of the Investor Relations center at approximately the same time that this press release is issued.CONFERENCE CALLCabot Microelectronics Corporation’s quarterly earnings conference call will be held at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Thursday, August 6. The conference call will be available via live webcast and replay from the company’s website, www.cabotcmp.com, or by phone at (833) 714-0937. Callers outside the U.S. may dial (778) 560-2685. The conference code for the call is 1775053. A transcript of the formal comments made during the conference call will also be available in the Investor Relations section of the company’s website. ABOUT CABOT MICROELECTRONICS CORPORATIONCabot Microelectronics Corporation, headquartered in Aurora, Illinois, is a leading global supplier of consumable materials to semiconductor manufacturers and pipeline companies. The company’s products play a critical role in the production of advanced semiconductor devices, helping to enable the manufacture of smaller, faster and more complex devices by its customers. Cabot Microelectronics Corporation is also a leading provider of performance materials to pipeline operators. The company's mission is to create value by delivering high-performing and innovative solutions that solve its customers’ challenges. The company has approximately 2,000 employees globally. For more information about Cabot Microelectronics Corporation, visit www.cabotcmp.com, or contact Colleen Mumford, Vice President, Communications and Marketing, at 630-499-2600.USE OF CERTAIN GAAP AND NON-GAAP ADJUSTED FINANCIAL INFORMATIONThe company presented the following measures considered as non-GAAP by the SEC: adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and net debt. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of revenue. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, adjusted for certain items that affect comparability from period to period. These adjustments include items related to the company’s acquisition of KMG Chemicals, Inc. (“KMG”) (“Acquisition”), such as expenses incurred to complete the Acquisition and related integration, costs of restructuring related to the wood treatment business and related adjustments in 2020, costs related to the KMG-Bernuth warehouse fire net of insurance recovery, costs incurred in 2020 related to the Pandemic net of grants received and, in 2019, impact of fair value adjustments to inventory acquired from KMG. The non-GAAP adjusted financial information provided in this press release is a supplement to, and not a substitute for, the company’s financial results presented in accordance with U.S. GAAP. These non-GAAP financial measures are provided to enhance the investor's understanding about the company's ongoing operations. Specifically, the company believes the impact of the adjustments related to the Acquisition, such as expenses incurred to complete the Acquisition and related integration, acquisition-related amortization expenses, costs of restructuring related to the wood treatment business and related adjustments in 2020, costs related to the KMG-Bernuth warehouse fire net of insurance recovery, costs incurred in 2020 related to the Pandemic net of grants received, the effects of Tax Cuts and Jobs Act in December 2017 in the United States (“Tax Act”) and the issued final regulations related to the Tax Act, and in 2019, impact of fair value adjustments to inventory acquired from KMG are not indicative of its core operating results and thus presents these certain metrics excluding these effects. The presentation of non-GAAP adjusted financial information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with U.S. GAAP. Reconciliations of non-GAAP measures to their most comparable GAAP measures are included in the financial statements portion of this press release.Adjusted EBITDA for the Electronic Materials and Performance Materials segments is presented in conformity with Accounting Standards Codification Topic 280, Segment Reporting. This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For these reasons, this measure is excluded from the definition of non-GAAP financial measures under the SEC Regulation G and Item 10(e) of Regulation S-K.FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements, which address a variety of subjects including, for example, future sales and operating results; growth or contraction, and trends in the industries and markets in which the company participates such as the semiconductor, and oil and gas, industries; the acquisition of, investment in, or collaboration with other entities, including the company’s acquisition of KMG, and the expected benefits and synergies of such acquisitions; divestment or disposition, or cessation of investment in certain, of the company’s businesses; new product introductions; development of new products, technologies and markets; product performance; the financial conditions of the company's customers; the competitive landscape that relates to the company’s business; the company's supply chain; natural disasters; various economic or political factors and international or national events, including related to global public health crises such as the COVID-19 pandemic, and the enactment of trade sanctions, tariffs, or other similar matters; the generation, protection and acquisition of intellectual property, and litigation related to such intellectual property or third party intellectual property; environmental, health and safety laws and regulations, and related compliance; the operation of facilities by Cabot Microelectronics; the company's management; foreign exchange fluctuation; the company's current or future tax rate, including the effects of the Tax Cuts and Jobs Act in the United States (“Tax Act”); cybersecurity threats; financing facilities and related debt, pay off or payment of principal and interest, and compliance with covenants and other terms; and, uses and investment of the company's cash balance, including dividends and share repurchases, which may be suspended, terminated or modified at any time for any reason by the company, based on a variety of factors. Statements that are not historical facts, including statements about Cabot Microelectronics’ beliefs, plans and expectations, are forward-looking statements. Such statements are based on current expectations of Cabot Microelectronics’ management and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. For information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to Cabot Microelectronics’ filings with the Securities and Exchange Commission (“SEC”), including the risk factors contained in Cabot Microelectronics’ Annual Report on Form 10-K for the fiscal year ended September 30, 2019 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 to be filed by August 10, 2020. Except as required by law, Cabot Microelectronics undertakes no obligation to update forward-looking statements made by it to reflect new information, subsequent events or circumstances.Contact:Colleen Mumford Vice President, Communications and Marketing Cabot Microelectronics Corporation (630) 499-2600CABOT MICROELECTRONICS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited and amounts in thousands, except per share amounts) Quarter Ended Nine Months Ended June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenue $274,727 $284,193 $271,882 $842,063 $759,051 Cost of sales 152,973 163,091 156,492 470,525 429,508 Gross profit 121,754 121,102 115,390 371,538 329,543 Operating expenses: Research, development and technical 12,165 13,230 12,191 38,206 39,009 Selling, general and administrative 51,847 56,209 50,959 162,495 162,415 Total operating expenses 64,012 69,439 63,150 200,701 201,424 Operating income 57,742 51,663 52,240 170,837 128,119 Interest expense 10,406 10,753 12,757 33,079 32,978 Interest income 131 143 417 589 2,004 Other income (expense), net (201) (1,010) (472) (1,608) (2,897) Income before income taxes 47,266 40,043 39,428 136,739 94,248 Provision for income taxes 12,741 7,144 20,550 30,766 34,790 Net income $34,525 $32,899 $18,878 $105,973 $59,458 Basic earnings per share $1.19 $1.12 $0.65 $3.63 $2.09 Diluted earnings per share $1.17 $1.11 $0.64 $3.58 $2.06 Weighted average basic shares outstanding 29,079 29,287 29,064 29,157 28,399 Weighted average diluted shares outstanding 29,456 29,725 29,568 29,603 28,924 CABOT MICROELECTRONICS CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited and amounts in thousands) June 30, 2020 September 30, 2019 ASSETS: Current assets: Cash and cash equivalents $354,708 $188,495 Accounts receivable, net 137,736 146,113 Inventories 161,805 145,278 Prepaid expenses and other current assets 24,623 28,670 Total current assets 678,872 508,556 Property, plant and equipment, net 356,022 276,818 Other long-term assets 1,450,479 1,476,392 Total assets $2,485,373 $2,261,766 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $50,211 $54,529 Short-term debt 150,000 - Current portion of long-term debt 13,313 13,313 Accrued expenses, income taxes payable and other current liabilities 126,399 103,618 Total current liabilities 339,923 171,460 Long-term debt, net of current portion 912,691 928,463 Other long-term liabilities 207,725 181,466 Total liabilities 1,460,339 1,281,389 Stockholders' equity 1,025,034 980,377 Total liabilities and stockholders' equity $2,485,373 $2,261,766 CABOT MICROELECTRONICS CORPORATION Unaudited Reconciliation of Certain GAAP Financial Measures to Certain Non-GAAP Financial Measures (Unaudited and amounts in thousands, except per share and percentage amounts) Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income Three Months Ended June 30, 2020 June 30, 2019 GAAP Net income $34,525 $18,878 Amortization of acquisition related intangibles 20,786 16,923 Acquisition and integration-related expenses 2,735 2,910 Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 622 4,450 Net costs related to restructuring of wood treatment business1 (293) - Costs related to COVID -19 (Pandemic), net of grants received 112 - Charges for fair value write-up of acquired inventory sold - 42 U.S. tax reform 18 9,128 Tax effect on adjustments to net income2 (5,356) (5,431) Adjusted Net income $53,149 $46,900 1 Represents adjustments to previously recorded severance liability related to the wood treatment business. 2 Tax effect on the adjustments was calculated using the U.S. Federal and state blended tax rate for the respective periods as the related adjustments are mainly U.S. driven. Reconciliation of GAAP Diluted Earnings Per Share to Non-GAAP Adjusted Diluted Earnings Per Share Three Months Ended June 30, 2020 June 30, 2019 GAAP Diluted earnings per share $1.17 $0.64 Adjustments (net of tax)3 : Amortization of acquisition related intangibles 0.55 0.44 Acquisition and integration-related expenses 0.07 0.08 Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 0.02 0.12 Net costs related to restructuring of wood treatment business1 (0.01) - U.S. tax reform - 0.31 Adjusted Diluted earnings per share $1.80 $1.59 3 Tax effect on the adjustments was calculated using the U.S. Federal and state blended tax rate for the respective periods as the related adjustments are mainly U.S. driven. Reconciliation of GAAP Revenue to Non-GAAP Adjusted Gross Profit and Gross Margin Three Months Ended June 30, 2020 June 30, 2019 GAAP revenue $274,727 $271,882 Cost of sales 152,973 156,492 Gross profit and gross margin $121,754 44.3%$115,390 42.4% Adjustments: Amortization of acquisition related intangibles 3,347 3,469 Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 622 4,200 Net costs related to restructuring of wood treatment business1 (293) - Costs related to the Pandemic, net of grants received 198 - Charges for fair value write-up of acquired inventory sold - 42 Adjusted gross profit and gross margin $125,628 45.7%$123,101 45.3% Reconciliation of GAAP Operating expenses to Non-GAAP Adjusted Operating expenses Three Months Ended June 30, 2020 June 30, 2019 GAAP Research, development and technical $12,165 $12,191 GAAP Selling, general, and administrative 51,847 50,959 Operating expenses $64,012 $63,150 Adjustments4 : Amortization of acquisition related intangibles (17,439) (13,454) Acquisition and integration-related expenses (2,735) (2,910) Costs related to KMG-Bernuth warehouse fire, net of insurance recovery - (250) Costs related to the Pandemic, net of grants received 86 - Adjusted operating expenses $43,924 $46,536 4 All the adjustments are related to the Selling, general and administrative expenses. Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA and EBITDA Margin Three Months Ended June 30, 2020 June 30, 2019 GAAP net income $34,525 $18,878 Interest expense 10,406 12,757 Interest income (131) (417) Provision for income taxes 12,741 20,550 Depreciation & amortization 31,324 26,587 EBITDA and EBITDA margin5 $88,865 32.3%$78,355 28.8% Adjustments (pre-tax): Acquisition and integration-related expenses 2,735 2,910 Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 622 4,450 Net costs related to restructuring of wood treatment business1 (293) - Costs related to the Pandemic, net of grants received 112 - Charges for fair value write-up of acquired inventory sold - 42 Adjusted EBITDA and EBITDA margin6 $92,041 33.5%$85,757 31.5% 5 EBITDA represents earnings before interest, taxes, depreciation and amortization. 6 Adjusted EBITDA is calculated by excluding items from EBITDA that are believed to be infrequent or not indicative of the company's continuing operating performance. Fiscal Year 2020 Guidance Reconciliation7 Fiscal Year 2020 Low Fiscal Year 2020 High Net income $134,000 $138,100 Interest expense, net8 43,500 43,500 Provision for income taxes8 38,000 38,900 Depreciation8 42,500 42,500 Amortization 90,000 90,000 EBITDA (Consolidated) $348,000 $353,000 Acquisition and integration-related expenses 7,800 7,800 Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 1,200 1,200 Net costs related to restructuring of wood treatment business1 (300) (300) Costs related to the Pandemic, net of grants received 300 300 Adjusted EBITDA Guidance (Consolidated) $357,000 $362,000 7 This is a reconciliation of our indicated full year net income to our adjusted EBITDA. The amounts above may not reflect certain future charges costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance, including impairment charges associated with the anticipated closure of our wood treatment business. 8 Amounts represent the mid-point of the current financial guidance provided on August 5, 2020. Reconciliation of Cash Flow From Operations to Free Cash Flow Nine months ended June 30, 2020 June 30, 2019 Net cash provided by operating activities $204,083 $117,045 Less: Capital expenditures 107,015 32,691 Free cash flow $97,068 $84,354 Net cash used in investing activities ($105,428) ($1,209,708) Net cash provided by financing activities $67,201 $908,678 Reconciliation of GAAP Debt to Net Debt June 30, 2020 September 30, 2019 Total short-term and long-term debt $1,076,004 $941,776 Less: Cash and cash equivalents 354,708 188,495 Total net debt $721,296 $753,281
Cabot Microelectronics (NASDAQ: CCMP) announces its next round of earnings this Wednesday, August 05. Here is Benzinga's look at Cabot Microelectronics's Q3 earnings report.Earnings and Revenue Wall Street analysts see Cabot Microelectronics reporting earnings of $1.54 per share on sales of $272.10 million. In the same quarter last year, Cabot Microelectronics posted EPS of $1.59 on sales of $271.88 million. If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 3.14%. Here's how the company's reported EPS has stacked up against analyst estimates in the past:Quarter Q2 2020 Q1 2020 Q4 2019 Q3 2019 EPS Estimate 1.70 1.60 1.63 1.57 EPS Actual 1.75 1.92 1.68 1.59 Revenue Estimate 285.93 M 283.32 M 279.32 M 267.13 M Revenue Actual 284.19 M 283.14 M 278.64 M 271.88 M Stock Performance Over the last 52-week period, shares are up 39.62%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.View more earnings on CCMPDon't be surprised to see the stock move on comments made during its conference call. Cabot Microelectronics is scheduled to hold the call at 10:00:00 ET and can be accessed here: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fir.cabotcmp.com%2Finvestors%2Fdefault.aspx&eventid=2405706&sessionid=1&key=4F5E0AB72D3A5AB9AAE70255BE4EF8F0®Tag=&sourcepage=registerSee more from Benzinga * Earnings Preview: CF Industries Holdings * Copa Holdings's Earnings Outlook * Insider Buys SB Financial Group's Stock(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cabot (CCMP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.