 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 companys 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 teams 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 companys 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.1 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 Corporations 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 companys website, 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 companys 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 companys 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 companys 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 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 companys 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 companys financial results presented in accordance with U.S. GAAP. These non-GAAP financial measures are provided to enhance the investors understanding about the companys 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 10e of Regulation S-K. 