Materion (US:MTRN)2022-02-17 21:28Financial Performance - The backlog of unshipped orders as of December 31, 2021, was $481.5 million, an increase from $279.2 million in 2020 and $176.4 million in 2019, with expectations to fill substantially all orders over the next 18 months [28]. - The company’s credit facilities are secured by substantially all assets, exposing it to interest rate fluctuations that could impact net income if rates increase [91]. Acquisitions and Growth Strategy - On November 1, 2021, the company acquired HCS-Electronic Materials for approximately $395.9 million in cash, enhancing its Performance Alloys and Composites and Advanced Materials segments [29]. - The company is actively pursuing acquisitions to drive growth, with a focus on integrating acquired businesses and achieving expected synergies [95]. Workforce and Employee Development - The company employed approximately 3,443 people globally as of December 31, 2021, with 2,183 in manufacturing roles, indicating a strong workforce commitment to operational success [34]. - The company emphasizes talent development through professional training programs and succession planning to cultivate future leaders [42]. - The company has established employee resource groups (ERGs) to promote diversity and inclusion, with four ERGs active as of December 31, 2021 [40]. Regulatory and Safety Compliance - The company is subject to various regulatory laws that may impact its operations, including potential changes to beryllium-related worker safety rules, which could adversely affect financial conditions [32]. - The company has implemented a robust Environmental, Health, and Safety (EHS) program to ensure employee safety, with ongoing training and self-audits [36]. Product Quality and Risk Management - The company’s products are complex and may contain undetected defects, which could lead to installation delays and damage to reputation if issues arise post-deployment [97].