Record Revenue of $287.9 Million, 1.7% Higher than Last Year and 5.0% Higher Sequentially Due to Strong Growth in CMP Slurries and CMP PadsDiluted Earnings Per Share (EPS) of $1.07; Adjusted Diluted EPS1 of $1.92, Flat Compared to Last Year Expecting Revenue for Second Quarter Fiscal 2021 to be Up Low Single Digits SequentiallyRaises Full Fiscal Year 2021 Adjusted EBITDA to be Between $367 Million and $387 Million AURORA, Ill., Feb. 03, 2021 (GLOBE NEWSWIRE) -- CMC Materials, Inc. (Nasdaq: CCMP), a leading global supplier of consumable materials primarily to semiconductor manufacturers, today reported financial results for its first quarter of fiscal 2021, which ended December 31, 2020. Key Highlights for the First Quarter Stronger demand in Electronic Materials, which represents over 80% of the company’s revenue, drove a revenue increase of 1.7% compared to the same quarter last year. The increase was slightly offset by lower revenue from pipeline and industrial materials (PIM) products, which continues to be adversely impacted by the COVID-19 pandemic. Net income was $31.5 million compared to $38.5 million in the prior year primarily due to the $7.3 million impairment charge the company took in the quarter for its previously announced strategic decision to exit the wood treatment business by approximately the end of calendar year 2021. Adjusted EBITDA1 was $91.6 million, compared to $95.3 million in the prior year, primarily due to a prior year benefit of $5 million from the timing of certain manufacturing variances. During the quarter, the company generated $54.0 million in cash flow from operations, and $293.2 million in the last twelve months. “Our record revenue this quarter is a reflection of our continued focused execution and innovation, as well as healthy semiconductor industry conditions,” said David Li, President and CEO of CMC Materials, Inc. “Looking ahead, we believe we are well positioned to deliver sequential growth above this record quarter given our robust customer positions and the expectations for continued strength in the semiconductor industry, as well as stabilization in the oil transport and demand sector. We also want to highlight the release of our inaugural Corporate Sustainability Report, which we believe captures our industry leading performance in this important area, and our efforts and ongoing commitment towards employee safety and making a positive impact to the communities in which we operate.” Key Financial Information for the First Quarter Revenue was $287.9 million, 1.7% higher than the same quarter last year. Revenue was up 5.0% sequentially primarily due to higher revenue in CMP slurries and CMP pads.Net income was $31.5 million compared to $38.5 million last year. Adjusted net income1 was $56.8 million, 0.7% lower compared to the prior year, primarily due to the timing of certain manufacturing variances recorded in the prior year, partially offset by higher revenue and lower interest expense.Diluted EPS was $1.07. Adjusted diluted EPS1 was $1.92, flat compared to the same quarter last year. Adjusted EBITDA1 was $91.6 million, down 3.9% compared to last year. Adjusted EBITDA margin1 for the quarter was 31.8%, compared to adjusted EBITDA margin of 33.6% in the same quarter last year, which benefited from the timing of certain manufacturing variances. 1 Refer to financial tables and “Use of Certain GAAP, non-GAAP Adjusted Financial Information” below for information about these non-GAAP financial measures and reconciliations of these non-GAAP measures to their most comparable GAAP measure. Electronic Materials – Revenue was $236.8 million for the quarter, 7.3% higher than revenue in the same quarter last year and 6.3% higher sequentially due to higher revenue in CMP slurries, CMP pads and electronic chemicals. Adjusted EBITDA was $80.8 million, or 34.1% of revenue. Performance Materials – Revenue was $51.1 million for the quarter, 18.2% lower than revenue in the same quarter last year, driven primarily by the impact of the pandemic on demand for PIM products. Higher revenue in the wood treatment and QED businesses partially offset this impact. Revenue was approximately flat sequentially. Adjusted EBITDA was $23.0 million, or 45.0% of revenue. Current Financial Guidance Sequentially, the company currently expects revenue in the second quarter of fiscal 2021 to be up low single digits compared to revenue in the first quarter. Electronic Materials revenue is expected to be up low single digits and Performance Materials revenue is expected to be up high single digits for the quarter. The company is increasing full fiscal year 2021 adjusted EBITDA to be between $367 million and $387 million. With respect to this guidance, and additional current expectations provided in the company’s related slide presentation and prepared commentary document, the company notes the continued uncertainty as to the ongoing macroeconomic environment and the impact of the pandemic on the industries in which the company participates. RELATED SLIDE PRESENTATION AND PREPARED COMMENTARY A slide presentation and corresponding prepared commentary related to this press release will be available at cmcmaterials.com in the Quarterly Results section of the Investor Relations center at approximately the same time that this press release is issued. CONFERENCE CALL CMC Materials’ quarterly earnings conference call will be held at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Thursday, February 4. The conference call will be available via live webcast and replay from the company’s website, cmcmaterials.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 4539453. 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 CMC MATERIALS, INC. CMC Materials, Inc., headquartered in Aurora, Illinois, is a leading global supplier of consumable materials to primarily semiconductor manufacturers. 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. CMC Materials, Inc. 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 2,100 employees globally. For more information about CMC Materials, Inc., visit cmcmaterials.com, or contact Colleen Mumford, Vice President, Communications and Marketing, at 630-499-2600. USE OF CERTAIN GAAP AND NON-GAAP ADJUSTED FINANCIAL INFORMATION The company’s financial results are provided in accordance with accounting principles generally accepted in the United States of America (GAAP) and using certain non-GAAP financial measures. In particular, the Company presents the following non-GAAP financial measures: adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and net debt. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, and excludes certain items that affect comparability from period to period. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of revenue. The non-GAAP financial measures provided in this press release are 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 of KMG Chemicals, Inc. (“KMG”)(“Acquisition”), such as expenses incurred to complete the Acquisition and related integration and acquisition-related amortization expenses, costs of restructuring an