Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

ATOTECH LIMITED

(ATC)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Press Release: Atotech Reports First Quarter 2021 Results and Raises 2021 Full Year Guidance

05/04/2021 | 06:01am EDT
 
   -- Generates first quarter revenue of $353 million, an increase of 25% over 
      the prior year period, including chemistry organic revenue growth of 13% 
 
   -- Reports a net loss of $72 million, primarily reflecting one-time costs 
      associated with the Company's recent refinancing 
 
   -- Delivers adjusted EBITDA of $110 million, a 32% increase over the prior 
      year period 
 
   -- Reduces net leverage to 3.7x 
 
   -- Raises guidance for full year 2021 organic revenue growth, which is now 
      expected to be in the range of 11% to 13%, including full year chemistry 
      organic revenue growth of approximately 9% 
 
   -- Increases guidance for full year 2021 adjusted EBITDA1, which is now 
      anticipated to be in the range of $415 million to $435 million, an 
      increase of $10 million over the prior guidance at the mid-point 
 
 
   BERLIN, May 04, 2021 (GLOBE NEWSWIRE) -- Atotech (NYSE: ATC), a leading 
specialty chemicals technology company and a market leader in advanced 
electroplating solutions, today reported its financial results for the 
first quarter of 2021 and raised its revenue and adjusted EBITDA 
guidance for full year 2021. Chemistry organic revenue growth, a key 
performance indicator for the Company, increased 13% over the first 
quarter of 2020. Chemistry organic revenue growth reflects chemistry 
revenue growth excluding the impact of foreign exchange translation 
("FX") and palladium pass-through ("palladium"). 
 
   Management Commentary 
 
   Geoff Wild, Atotech's Chief Executive Officer said, "We are very pleased 
with our first quarter performance. As we lap the first quarter of the 
Covid-19 pandemic, we delivered strong revenue and EBITDA growth, driven 
by an acceleration in the secular trends that are fueling demand for our 
products. Whether it is the robust smartphone cycle, the increasing 
adoption of 5G, work-from-home and higher PC demand, or the 
electrification of automobiles, our comprehensive solutions address 
customer requirements and we continue to lead the market with our 
customer service approach." 
 
   "Despite several external disruptions putting pressure on global supply 
chains this quarter, we feel confident about delivering strong revenue 
and earnings growth this year and are actively engaged in multiple 
initiatives to mitigate the impact of current supply chain shortages and 
disruptions." 
 
   "I was also very pleased to have successfully completed our refinancing 
during the first quarter. We moved quickly to leverage our stronger 
balance sheet as a result of the IPO, as well as our positive business 
outlook, to significantly lower our cost of borrowing. The combination 
of healthy markets and an improved capital structure have Atotech 
well-positioned to generate meaningful free cash flow in 2021." 
 
   First Quarter 2021 Results 
 
   Total revenue was $353 million for the first quarter, an increase of 25% 
over the prior year period. Total organic revenue, which reflects total 
revenue excluding the impact of FX and palladium, increased 17%. FX was 
a 7% tailwind and palladium increased total revenue by 1% for the 
quarter. These strong quarterly results were driven by organic growth in 
chemistry revenue of 13%, reflecting double-digit increases in both the 
Electronics ("EL") and General Metal Finishing ("GMF") segments. 
 
   Adjusted EBITDA was $110 million for the first quarter, a 32% increase 
over the prior year period, reflecting strong chemistry organic volume 
growth, stable pricing, and FX tailwinds, partially offset by increased 
costs associated with supply chain inefficiencies. 
 
   Diluted earnings per share was $(0.55) for the quarter ended March 31, 
2021, primarily reflecting one-time costs associated with the Company's 
recent refinancing. 
 
   Adjusted EBITDA margin was 31.2% for the first quarter of 2021, a gain 
of 150 basis points. The improvement reflects operating leverage on 
chemistry organic revenue, offset in part by the impact of palladium 
pass-through, the product mix of chemistry versus equipment, and supply 
chain inefficiencies. 
 
   First Quarter 2021 Segment Highlights 
 
   Electronics: Revenue for the first quarter in our Electronics segment of 
$226 million increased 31% over the prior year period. Total organic 
revenue grew 21%, consisting of 15% chemistry organic growth and a 77% 
increase in equipment organic revenue. Palladium pass-through increased 
revenue by 2% and FX was an 8% tailwind for the quarter. 
 
   The Electronics organic revenue increase was driven by strong demand for 
the Company's leading IC substrate and advanced semiconductor packaging 
solutions, as we experienced an acceleration in the secular trends of 5G 
infrastructure and smartphone growth, as well as auto electrification 
and advanced consumer electronics. These trends are also driving strong 
demand for our equipment, as our customers actively upgrade technology 
and expand production capacity. 
 
   Adjusted EBITDA for our Electronics segment was $76 million for the 
quarter, an increase of 38% over the prior year period, primarily driven 
by strong chemistry volume growth, as well as ongoing pricing and cost 
measures.  Adjusted EBITDA margin increased 180 basis points to 33.6%, 
largely reflecting operating leverage on chemistry organic growth, 
offset by the palladium pass-through and the cost of supply chain 
disruptions. 
 
   General Metal Finishing: Revenue for the first quarter in our GMF 
segment of $128 million increased 15% over the prior year period. Total 
organic GMF revenue increased 9%, consisting of 11% chemistry revenue 
growth, partially offset by a decline in equipment revenue. Palladium 
and FX added 1% and 5% to revenue for the quarter, respectively. 
 
   Chemistry organic revenue growth was primarily driven by the continued 
global automotive market recovery and solid demand in other industrial 
end-markets. 
 
   Adjusted EBITDA for our GMF segment was $35 million, an increase of 19% 
over last year, reflecting operating leverage on chemistry volume growth, 
partially offset by supply chain inefficiencies. Adjusted EBITDA margin 
increased 90 basis points to 27.2%. 
 
   Initial Public Offering 
 
   The Company closed its initial public offering of 29,268,000 common 
shares at $17.00 per share on February 8, 2021. The gross proceeds to 
Atotech from the offering were approximately $498 million, before 
deducting the underwriting discount and offering expenses, and were used 
to repay indebtedness and to pay underwriting discounts and offering 
expenses. On March 9, 2021, investment funds affiliated with The Carlyle 
Group sold an additional 4,390,200 common shares pursuant to the 
over-allotment option granted to the underwriters in the initial public 
offering. The shares, representing the full over-allotment option, were 
sold at $17.00 per share less underwriting discounts, and we did not 
receive any proceeds from the sale of these shares by The Carlyle Group. 
 
   Refinancing 
 
   On March 18, 2021, the Company successfully refinanced its existing 
senior secured credit facilities and entered into a new credit agreement 
which provided for a U.S. dollar-denominated senior secured term loan 
facility in an initial aggregate principal amount of $1.35 billion (the 
"USD Term Loan"), a Euro-denominated senior secured term loan facility 
in an initial aggregate principal amount of EUR200.0 million (the "EUR 
Term Loan"), and a senior secured multi-currency revolving credit 
facility that provides for revolving loans and letters of credit in an 
aggregate principal amount of up to $250.0 million. The net proceeds of 
the USD Term Loan and EUR Term Loan were used to fund the refinancing in 
full of the Company's then-outstanding term loan credit facilities, 
which were set to mature in January 2024, and to repay and replace its 
then-existing revolving credit agreement, which was set to mature in 
January 2022. 
 
   Full Year 2021 Guidance 
 
   Regarding the Company's 2021 outlook, Peter Frauenknecht, Atotech's 
Chief Financial Officer said, "As a result of our very strong first 
quarter and our improved outlook for the entire year, we are raising our 
revenue and adjusted EBITDA guidance. We now expect full year 2021 total 
organic revenue growth to be in the range of 11% to 13%, including full 
year organic growth in chemistry revenue of approximately 9%, which 
excludes the impact of FX and palladium pass-through. Additionally, we 
now expect full year 2021 adjusted EBITDA to be in the range of $415 
million to $435 million, which represents a $10 million improvement over 
our prior guidance, at the mid-point." 
 
   Conference Call 
 
   The Company will host a conference call today at 8:00 a.m. Eastern time 
to discuss these results. To participate on the conference call, please 
dial +1 833 714-3263 (United States) or +1 270 823-1866 (international), 
using conference ID 5176076. A link to the live audio webcast, and 
associated materials, will also be available on the Company website at 
investors.atotech.com 
https://www.globenewswire.com/Tracker?data=Vtxt7hLhBOoFAwlGEurS3M6vPOb6UQOIvzCg33h6i11-GBuPkOGeLARstG7r10FFBR7jeu9mYzGwJMBauXzoCeEW_4tLkUhZBCT-SLqS7og= 
. 
 
   Cautionary Statement Regarding Forward-Looking Statements 
 
   This communication contains "forward-looking statements" within the 
meaning of the federal securities laws, including Section 27A of the 
Securities Act of 1933, as amended, and Section 21E of the Securities 
Exchange Act of 1934, as amended. In this context, forward-looking 
statements often address expected future business and financial 
performance and financial condition, and often contain words such as 
"expect," "anticipate," "intend," "plan," "believe," "seek," "see," 
"will," "would," "target," and similar expressions and variations or 
negatives of these words. 
 
   These forward-looking statements, which are subject to risks, 
uncertainties, and assumptions about us, may include projections of our 
future financial performance, our anticipated growth strategies, and 

(MORE TO FOLLOW) Dow Jones Newswires

May 04, 2021 06:00 ET (10:00 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
ATOTECH LIMITED 1.00% 22.22 Delayed Quote.0.00%
DJ INDUSTRIAL 1.06% 34382.13 Delayed Quote.11.16%
PALLADIUM 0.00% 2896.5 Delayed Quote.17.87%
THE CARLYLE GROUP INC. 2.50% 43.51 Delayed Quote.38.39%
All news about ATOTECH LIMITED
05/14ATOTECHá : PURPOSE OF THE NONQUALIFIED EMPLOYEE STOCK PURCHASE AND MATCHING SHAR..
PU
05/06ATOTECHá : RBC Capital Raises Price Target on Atotech to $27 From $26, Maintains..
MT
05/05ATOTECHá : UBS Adjusts Atotech's Price Target to $27 From $26, Maintains Buy Rat..
MT
05/04ATOTECHá : Reports Narrower Q1 Loss, Raises 2021 Outlook
MT
05/04ATOTECHá : Unaudited Interim Condensed Consolidated Financial Statements
PU
05/04Atotech Reports First Quarter 2021 Results and Raises 2021 Full Year Guidance
GL
05/04PRESS RELEASE : Atotech Reports First Quarter 2021 -4-
DJ
05/04PRESS RELEASEá : Atotech Reports First Quarter 2021 -3-
DJ
05/04PRESS RELEASE : Atotech Reports First Quarter 2021 -2-
DJ
05/04PRESS RELEASE : Atotech Reports First Quarter 2021 Results and Raises 2021 Full ..
DJ
More news
Financials (USD)
Sales 2021 1 402 M - -
Net income 2021 149 M - -
Net Debt 2021 1 288 M - -
P/E ratio 2021 180x
Yield 2021 -
Capitalization 4 325 M 4 325 M -
EV / Sales 2021 4,00x
EV / Sales 2022 3,65x
Nbr of Employees 4 592
Free-Float 97,9%
Chart ATOTECH LIMITED
Duration : Period :
Atotech Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ATOTECH LIMITED
Short TermMid-TermLong Term
TrendsBearishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 10
Average target price 26,00 $
Last Close Price 22,22 $
Spread / Highest target 26,0%
Spread / Average Target 17,0%
Spread / Lowest Target 8,01%
EPS Revisions
Managers and Directors
NameTitle
Geoffrey Wild President, Chief Executive Officer & Director
Peter Frauenknecht Chief Financial Officer
John Stephenson Chief Operations Officer
Brian Allan Bernasek Director
Gregor Andreas P. B÷hm Director
Sector and Competitors
1st jan.Capitalization (M$)
ATOTECH LIMITED0.00%4 325
ECOLAB INC.3.56%64 067
SIKA AG13.23%42 978
GIVAUDAN SA2.60%39 059
EMS-CHEMIE HOLDING AG-5.45%20 887
YUNNAN ENERGY NEW MATERIAL CO., LTD.-10.62%17 475