Materion Corporation (NYSE:MTRN) today reported fourth quarter and full-year 2012 results. The Company also confirmed its outlook for a stronger 2013. FOURTH QUARTER AND FULL-YEAR 2012 RESULTS Sales for the fourth quarter were $303.8 million, down approximately 9%, or $30.6 million, compared to sales of $334.4 million for the fourth quarter of 2011. Net of pass-through metal influences, sales were up approximately 4% year over year. The increase in the fourth quarter sales, net of pass-through metal influences, was primarily due to higher demand from the medical, consumer electronics, automotive electronics, telecom infrastructure and the industrial components and commercial aerospace markets. The increase in these markets was offset, in part, by weaker demand from the defense and science, energy and appliance markets. Order entry experienced a lift in the fourth quarter of 2012 and this strength has continued into the first quarter of 2013. Net income for the fourth quarter was $2.5 million, or $0.12 per share, diluted, compared to net income of $0.8 million, or $0.04 per share, diluted, for the same period of the prior year. Fourth quarter 2012 net income was negatively impacted by the previously announced facility consolidation charge of $0.13 per share and the previously announced physical inventory adjustment of $0.25 per share. These negative adjustments were offset in part by an unrelated tax benefit of $0.09 per share related to changes in financial projections. Excluding the above-mentioned adjustments and tax benefit, earnings were $0.41 per share, slightly ahead of the high-end of the previously announced expectation that results would be in the range of $0.37 to $0.40 per share. Sales for the full-year 2012 were $1,273.1 million, a decline of 17% compared to the full-year 2011 record sales of $1,526.7 million. Net of pass-through metal influences, sales were down 3% year over year. The decline in sales, net of pass-through metal influences, in 2012 was due to lower demand from the defense and science, telecom infrastructure, energy and appliance markets. The weakness was partially offset by increased volume from the commercial aerospace, consumer and automotive electronics and medical markets and the full-year results of EIS Optics Limited, which was acquired in the fourth quarter of 2011.
Looking at the universe of stocks we cover at Dividend Channel, on 2/17/15, Materion Corp will trade ex-dividend, for its quarterly dividend of $0.085, payable on 3/3/15. As a percentage of MTRN's recent stock price of $37.16, this dividend works out to approximately 0.23%.
Shareholders of Materion Corp looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the June 2015 covered call at the $40 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.3% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stock rises there and is called away, but MTRN shares would have to climb 11.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 15.1% return from this trading level, in addition to any dividends collected before the stock was called.
In trading on Friday, shares of Materion Corp crossed below their 200 day moving average of $34.17, changing hands as low as $34.10 per share. Materion Corp shares are currently trading off about 1.6% on the day.