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Form 8-K II-VI INC For: May 12

May 15, 2015 10:03 AM EDT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) May 12, 2015

 

 

II-VI Incorporated

(Exact Name of Registrant as Specified in Its Charter)

 

 

Pennsylvania

(State or Other Jurisdiction of Incorporation)

 

0-16195   25-1214948
(Commission File Number)   (IRS Employer Identification No.)
375 Saxonburg Boulevard, Saxonburg, Pennsylvania   16056
(Address of Principal Executive Offices)   (Zip Code)

(724) 352-4455

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 7.01 Regulation FD Disclosure.

On May 12, 2015, management of II-VI Incorporated (the “Company”) presented at an investor conference. The presentation materials are attached hereto as Exhibit 99.1 and incorporated herein by reference. These materials may also be used at one or more subsequent conferences. The information contained in the attached presentation materials is summary information that is intended to be considered in the context of the Company’s SEC filings and other public announcements. The Company undertakes no duty or obligation to publicly update or revise this information, although it may do so from time to time.

The information in this Current Report on Form 8-K, including the exhibit furnished pursuant to Item 9.01, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section. Furthermore, the information in this Current Report on Form 8-K, including the exhibit furnished pursuant to Item 9.01, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit 99.1 Investor conference presentation materials titled “Our Technologies for Tomorrow’s Innovations” used beginning May 12, 2015.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

II-VI INCORPORATED

(Registrant)

Date: May 15, 2015 By: /s/ Mary Jane Raymond
Name: Mary Jane Raymond
Title: Chief Financial Officer and Treasurer


EXHIBIT INDEX

 

Exhibit No.

  

Description

Exhibit 99.1.    Investor conference presentation materials titled “Our Technologies for Tomorrow’s Innovations” used beginning May 12, 2015.
www.ii-vi.com                   NASDAQ: IIVI
Investor Presentation
May 2015
Our Technologies for Tomorrow’s Innovations
A global leader powered by engineered material
solutions that fully satisfy our customers
Exhibit 99.1
**********************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************


www.ii-vi.com      I     NASDAQ: IIVI
2
Matters discussed in this presentation may contain forward-looking
statements that are subject to risks and uncertainties.  These risks and
uncertainties could cause the forward-looking statements and II-VI
Incorporated’s (the Company’s) actual results to differ materially.  In
evaluating these forward-looking statements, you should specifically
consider the “Risk Factors”
in the Company’s most recent Form 10-K and
Form 10-Q. Forward-looking statements are only estimates and actual
events or results may differ materially.
II-VI Incorporated disclaims any obligation to update information contained
in any forward-looking statement.
This presentation contains certain non-GAAP financial measures. 
Reconciliations of non-GAAP financial measures to their most comparable
GAAP financial measures are presented at the end of this presentation.
Safe Harbor Statement


3
Our Core –
Material Excellence


Global Leader in Engineered Materials
Headquartered in Saxonburg, PA
~ 8,000 Employees in 14 Countries
FY14: $683M Revenue, 5.6% ROS
9 mos YTD: $545M Revenue, 7.7% ROS
2% insider ownership
4
4 CONSECUTIVE DECADES OF PROFITABILITY AND COUNTING
Fiscal Year Revenues
2005
$187
$224
$255
$310
$280
$333
$487
$516
$551
$683
2006
2007
2008
2009
2010
2011
2012
2013
2014
About II-VI


5
Laser Solutions Segment
Leading merchant supplier of CO
2
, Fiber, and
Direct Diode industrial laser components
Leading supplier of CO
2
optics for an install
base of >70,000 high power lasers
First to service EUV Lithography CVD
Diamond optics demand
Laser Optics
Cutting Heads
Semiconductor Laser Chips
Ultra-hard Material Processing
Laser Source Solutions
Focused on expanding our fiber and direct
diode laser footprint as markets grow
Rev.
TAM
Share
$214M
$254M
$218M
$1,000M    $900M     $555M
30%
28%
39%
FY15YTD
FY14
FY13


6
Laser Solutions Segment
Vertical Cavity Surface Emitting Laser (VCSEL)
Market CAGR (‘13-’18): 33%   
Source: BCC Research
Laser Processing Heads & Beam Delivery Components
Market CAGR (‘14-’19): 22%  
Source: Strategies Unlimited


7
Photonics Segment
Worldwide supplier of cutting edge amplification,
pump, and transmission products for optical
communication networks
Leading Supplier of crystals, fiber optics,
precision optics, and optical assemblies for
multiple applications
Leverage vertical integration synergies
to enable a cost structure for market
penetration and growth
Erbium Doped Fiber Amplifiers
Undersea & Terrestrial 980nm Pumps
Optical Switches
Transceivers
Industrial Lasers
Semiconductor
Instrumentation
Optical Communication
Life Sciences
Rev.
TAM
Share
$189M    $217M     $141M
$2.5B       $2.0B
$1.5B
10%         11%
9%
FY15YTD
FY14
FY13


8
Photonics Segment
EDFA/Raman Amplifiers
Market CAGR (‘14-’19): 30%  
Source: Ovum
40G/100G Transceivers for Datacom
Market CAGR (‘14-’19): 45%   
Source: Ovum


9
Focus on strategic markets where II-VI material
expertise and technology enables growth and new
functionality
Free Standing Diamond
Precision Optical Systems
High Value Material Reclamation
Reaction Bonded SiC Tools
Thermal Management
Target military platforms and applications
with growth potential
Identify emerging markets early and
enable the underpinning materials and
technology
Performance Products Segment
Rev.
TAM
Share
FY15YTD
FY14
FY13
$143M      $213M     $192M
$2.4B        $2.3B       $2.1B
8%          10%         9%


10
Performance Products Segment
Sapphire Material and Optics
Market CAGR (‘14-’19): 10%
Source: Internal
Power Generation Products
Market CAGR (‘14-’19): 30%
Source: Internal


11
Gross
Margin
EBITDA
Operating
Margin
Expectations
Margin Performance
Profitability and Expectations
Expect FY15 to exceed
FY14 by 250bps in all 3
margin categories
FY11
FY12
FY13
FY14
9mos YTD
FY15
41.6%
39.0%
36.9%
33.2%
36.1%
26.0%
23.9%
21.7%
15.1%
16.7%
19.6%
15.8%
13.0%
6.8%
9.8%
FY15
FY16
35%-38%
15%-18%
7%-10%
36%-40%
17%-21%
9%-12%


12
Cash and Liquidity
Cash
and
Equivalents
Cash
Flow
from
Operations
Long-Term
Debt
(Including
current
portion)
Shareholders'
Equity
FY13
$185M
$108M
$114M
$636M
FY14
$175M
$95M
$241M
$675M
Cash and Liquidity
FY15YTD
$155M
$86M
$188M
$711M


13
Company Position
Positive Profit Outlook
Leading Market Positions In Diverse End Markets
Investing In Fast Growing Markets
Strong Cash Position
Global Manufacturing Footprint
Growth Via Organic And Acquisitions
Ongoing $50M Stock Buyback Program


14
Non-GAAP Reconciliations
2011
2012
2013
2014 
Nine Months Ended
March 31, 2015 
Reconciliation of EBITDA to Net Earnings
EBITDA
126,609
123,213
119,438
103,218
91,257
Interest expense
103
212
1,160
4,479
3,086
Depreciation and amortization
28,313
34,523
40,792
53,098
39,242
Settlement Agreement
(7,650)
Income taxes
18,517
17,760
18,766
7,325
7,673
Loss (earnings) on discontinued operations, net of taxes
(3,342)
9,443
6,789
(133)
Net earnings
83,018
61,275
51,931
38,449
48,906
Revenues
486,638
516,403
551,075
683,261
545,278
Reconciliation of EBITDA Margin to Return on Sales
EBITDA margin
26.0%
23.9%
21.7%
15.1%
16.7%
As a % of revenues:
Interest Expense
0.0%
0.0%
0.2%
0.7%
0.6%
Depreciation and amortization
5.8%
6.7%
7.4%
7.8%
7.2%
Settlement Agreement
-
-
-
-
(1.4%)
Income taxes
3.8%
3.4%
3.4%
1.1%
1.4%
Loss (earnings) on discontinued operations, net of taxes
(0.7%)
1.8%
1.2%
(0.0%)
-
Return on Sales
17.1%
11.9%
9.4%
5.6%
9.0%
($000's, except %'s; all periods fiscal year)


www.ii-vi.com      I     NASDAQ: IIVI
15
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16
Organization
Photonics
Performance Products
Laser Solutions
M&A / Integration
Tech Management
Trade Compliance
Operation Metrics
Quality
SCM
Legal
Strategic
Resources
Corporate
G&A
R&D
NPI


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