Press Release Details


Entegris Reports Results for Second Quarter of 2019

Jul 25, 2019 at 6:00 AM EDT
  • Second-quarter revenue of $378.9 million, decreased 1%from prior year
  • GAAP net income per diluted share of $0.91
  • Non-GAAP net income per diluted share of $0.39
  • Implementing operating model improvements expected to yield more than $20 million of annualized cost savings

BILLERICA, Mass.--(BUSINESS WIRE)--Jul. 25, 2019-- Entegris, Inc. (NasdaqGS: ENTG), a leader in specialty chemicals and advanced materials solutions for the microelectronics industry, today reported its financial results for the Company’s second quarter ended June 29, 2019.

Second-quarter sales were $378.9 million, a decrease of 1% from the same quarter last year. GAAP second-quarter net income was $124.0 million, or $0.91 per diluted share, which included $122 million net proceeds associated with the terminated Versum transaction, $16.6 million of amortization of intangible assets, $2.2 million of restructuring costs, $1.3 million of integration costs, $1.2 million in deal costs mainly associated with the terminated Versum transaction and a $700 thousand charge for fair value write-up of acquired inventory sold. Non-GAAP net income was $53.4 million and non-GAAP earnings per diluted share was $0.39.

Bertrand Loy, President and Chief Executive Officer, said: "The second quarter was soft for the industry and was somewhat softer than anticipated for Entegris. In spite of the pervasive uncertainty, we are seeing increased evidence that our business will be stronger in the second half of this year."

Mr. Loy added: "Entegris has never been better positioned and more relevant for our customers, as materials and contamination control are becoming increasingly critical to the industry roadmaps. As we’ve shown with the operating model improvements announced today and the recent acquisition of MPD, we are continually assessing and dynamically managing our business model and portfolio to drive growth and returns."

Quarterly Financial Results Summary
(in thousands, except per share data)

GAAP Results

Q2 2019

Q2 2018

Q1 2019

Net sales

$378,874

$383,059

$391,047

Operating income

$54,909

$74,933

$47,491

Operating margin

14.5%

19.6%

12.1%

Net income

$123,997

$54,349

$32,658

Diluted earnings per share (EPS)

$0.91

$0.38

$0.24

Non-GAAP Results

Non-GAAP adjusted operating income

$76,793

$93,473

$92,180

Non-GAAP adjusted operating margin

20.3%

24.4%

23.6%

Non-GAAP net income

$53,432

$69,835

$67,894

Non-GAAP EPS

$0.39

$0.49

$0.50

Third-Quarter Outlook
For the third quarter ending September 28, 2019, the Company expects sales of $385 million to $400 million, net income of $40 million to $46 million and net income per diluted share between $0.29 and $0.34. On a non-GAAP basis, EPS is expected to range from $0.42 to $0.47 per diluted share, which reflects net income on a non-GAAP basis in the range of $57 million to $64 million, which is adjusted for expected amortization and restructuring & integration expenses of approximately $14.2 million (or $0.08 per share) and $8.6 million (or approximately $0.05 per share).

Organizational Changes
Entegris is implementing operating model improvements that will enable the company to be more responsive to customers, increase competitiveness, allow for scalable growth and result in significant cost savings. Efficiencies gained by these changes are expected to result in more than $20 million in annualized cost savings. These actions will largely be in place by the beginning of the fourth quarter this year.

Segment Results
The Company reports its results in the following segments:

Specialty Chemicals and Engineered Materials (SCEM): SCEM provides high-performance and high-purity process chemistries, gases and materials, as well as safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes.

Microcontamination Control (MC): MC solutions purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

Advanced Materials Handling (AMH): AMH develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and substrates for a broad set of applications in the semiconductor industry and other high-technology industries.

Change in Inter-Segment Reporting
In the first quarter of 2019, the Company changed its definition of segment profit to include inter-segment sales. The Company updated its recognition of inter-segment sales to recognize the revenue and profit associated with products and components produced in one segment and supplied to another, before being sold to the ultimate end customer. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at approximate market prices. Prior quarter information was recast to reflect the change in the Company’s definition of segment profit.

Second-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the second quarter on Thursday, July 25, 2019, at 9:00 a.m. Eastern Time. Participants should dial 800-458-4121 or +1 323-794-2093, referencing confirmation code 9712936. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. For a replay of the call, please Click Here using passcode 9712936. The replay will be available starting at 12:00 p.m. ET on Thursday, July 25 through September 7, 2019 at 12:00 p.m. ET.

The call can also be accessed live and on-demand from the Entegris website. Point your web browser to http://investor.entegris.com/events.cfm and follow the link to the webcast. The on-demand playback will be available for six weeks after the conclusion of the teleconference.

Management’s slide presentation concerning the results for the second quarter, which may be referred to during the call, will be posted on the investor relations section of www.entegris.com Thursday morning before the call.

ABOUT ENTEGRIS
Entegris is a leader in specialty chemicals and advanced materials solutions for the microelectronics industry and other high-tech industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, Canada, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

Non-GAAP Information
The Company’s condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA, Adjusted Gross Profit, Adjusted Segment Profit, and Adjusted Operating Income together with related measures thereof, and non-GAAP EPS, are considered “Non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision-making, as a means to evaluate period-to-period comparisons, as well as comparisons to our competitors' operating results. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring business operating results, such as amortization, depreciation and discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing and understanding our results and performance and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze our business. The reconciliations of GAAP Net Income (Loss) to Adjusted Operating Income and Adjusted EBITDA, GAAP Net Income (Loss) to Non-GAAP Earnings per Share, GAAP Gross Profit to Adjusted Gross Profit and GAAP Segment Profit to Adjusted Operating Income are included elsewhere in this release.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include statements related to future period guidance; future sales, net income, net income per diluted share, non-GAAP EPS, non-GAAP net income, expenses and other financial metrics; our performance relative to our markets; the impact, financial or otherwise, of any organizational changes; market and technology trends; the development of new products and the success of their introductions; Company's capital allocation strategy, which may be modified at any time for any reason, including share repurchases, dividends, debt repayments and potential acquisitions; the effect of the Tax Cuts and Jobs Act on our capital allocation strategy; the impact of the acquisitions we have made and commercial partnerships we have established; our ability to execute on our strategies; and other matters. These statements involve risks and uncertainties, and actual results may differ. These risks and uncertainties include, but are not limited to, weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for our products and solutions; our ability to meet rapid demand shifts; our ability to continue technological innovation and introduce new products to meet our customers' rapidly changing requirements; our concentrated customer base; our ability to identify, effect and integrate acquisitions, joint ventures or other transactions; our ability to effectively implement any organizational changes; our ability to protect and enforce intellectual property rights; operational, political and legal risks of our international operations; our dependence on sole source and limited source suppliers; the increasing complexity of certain manufacturing processes; raw material shortages and price increases; changes in government regulations of the countries in which we operate; fluctuation of currency exchange rates; fluctuations in the market price of Entegris’ stock; the level of, and obligations associated with, our indebtedness; and other risk factors and additional information described in our filings with the Securities and Exchange Commission, including under the heading “Risks Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed on February 11, 2019, and in our other periodic filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

 

Three months ended

 

June 29, 2019

June 30, 2018

March 30, 2019

Net sales

$

378,874

 

$

383,059

 

$

391,047

 

Cost of sales

212,600

 

200,681

 

213,654

 

Gross profit

166,274

 

182,378

 

177,393

 

Selling, general and administrative expenses

64,150

 

65,200

 

82,254

 

Engineering, research and development expenses

30,624

 

30,231

 

28,991

 

Amortization of intangible assets

16,591

 

12,014

 

18,657

 

Operating income

54,909

 

74,933

 

47,491

 

Interest expense, net

9,692

 

6,925

 

9,659

 

Other (income) expense, net

(122,015

)

3,877

 

(248

)

Income before income tax expense

167,232

 

64,131

 

38,080

 

Income tax expense

43,235

 

9,782

 

5,422

 

Net income

$

123,997

 

$

54,349

 

$

32,658

 

 

 

 

 

 

 

 

Basic net income per common share:

$

0.92

 

$

0.38

 

$

0.24

 

Diluted net income per common share:

$

0.91

 

$

0.38

 

$

0.24

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

Basic

135,378

 

141,701

 

135,299

 

Diluted

136,581

 

143,238

 

136,692

 

Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

 

Six months ended

 

June 29, 2019

June 30, 2018

Net sales

$

769,921

 

$

750,258

 

Cost of sales

426,254

 

391,883

 

Gross profit

343,667

 

358,375

 

Selling, general and administrative expenses

146,404

 

123,469

 

Engineering, research and development expenses

59,615

 

57,817

 

Amortization of intangible assets

35,248

 

23,683

 

Operating income

102,400

 

153,406

 

Interest expense, net

19,351

 

14,151

 

Other (income) expense, net

(122,263

)

4,016

 

Income before income tax expense

205,312

 

135,239

 

Income tax expense

48,657

 

23,328

 

Net income

$

156,655

 

$

111,911

 

 

 

 

 

 

Basic net income per common share:

$

1.16

 

$

0.79

 

Diluted net income per common share:

$

1.15

 

$

0.78

 

 

 

 

Weighted average shares outstanding:

 

 

Basic

135,338

 

141,641

 

Diluted

136,637

 

143,445

 

Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

 

June 29, 2019

December 31, 2018

ASSETS

 

 

Cash and cash equivalents

$

521,382

 

$

482,062

 

Trade accounts and notes receivable, net

218,682

 

222,055

 

Inventories, net

261,934

 

268,140

 

 

Deferred tax charges and refundable income taxes

18,741

 

17,393

 

Other current assets

27,715

 

39,688

 

Total current assets

1,048,454

 

1,029,338

 

 

 

 

Property, plant and equipment, net

445,254

 

419,529

 

 

 

 

Right-of-use assets

44,176

 

 

Goodwill

583,328

 

550,202

 

Intangible assets

266,425

 

295,687

 

Deferred tax assets and other noncurrent tax assets

23,153

 

10,162

 

Other

13,932

 

12,723

 

Total assets

$

2,424,722

 

$

2,317,641

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Long-term debt, current maturities

4,000

 

4,000

 

Accounts payable

56,986

 

93,055

 

Accrued liabilities

117,783

 

141,020

 

Income tax payable

36,371

 

31,593

 

Total current liabilities

215,140

 

269,668

 

 

 

 

Long-term debt, excluding current maturities

933,675

 

934,863

 

Long-term lease liability

40,612

 

 

Other liabilities

132,746

 

101,085

 

Shareholders’ equity

1,102,549

 

1,012,025

 

Total liabilities and shareholders’ equity

$

2,424,722

 

$

2,317,641

 

Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

Three months ended

Six months ended

 

June 29, 2019

June 30, 2018

June 29, 2019

June 30, 2018

Operating activities:

 

 

 

 

Net income

$

123,997

 

$

54,349

 

$

156,655

 

$

111,911

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation

18,596

 

15,802

 

35,317

 

31,699

 

Amortization

16,591

 

12,014

 

35,248

 

23,683

 

Stock-based compensation expense

4,936

 

4,429

 

9,589

 

8,557

 

Other

446

 

2,101

 

6,140

 

2,883

 

Changes in operating assets and liabilities:

 

 

 

 

Trade accounts and notes receivable

14,545

 

8,698

 

5,436

 

2,687

 

Inventories

5,840

 

(7,517

)

3,709

 

(22,472

)

Accounts payable and accrued liabilities

(7,688

)

19,019

 

(52,707

)

(14,966

)

Income taxes payable and refundable income taxes

58,264

 

(14,207

)

15,391

 

(7,515

)

Other

(4,626

)

3,601

 

13,585

 

639

 

Net cash provided by operating activities

230,901

 

98,289

 

228,363

 

137,106

 

Investing activities:

 

 

 

 

Acquisition of property and equipment

(25,636

)

(26,390

)

(60,101

)

(47,437

)

Acquisition of businesses, net of cash acquired

522

 

(342,569

)

(49,267

)

(380,225

)

Other

 

1,759

 

197

 

1,905

 

Net cash used in investing activities

(25,114

)

(367,200

)

(109,171

)

(425,757

)

Financing activities:

 

 

 

 

Payments on long-term debt

(1,000

)

(2,000

)

(2,000

)

(27,000

)

Issuance of common stock

 

2,554

 

917

 

3,027

 

Taxes paid related to net share settlement of equity awards

(574

)

(290

)

(8,301

)

(14,413

)

Repurchase and retirement of common stock

(15,000

)

(10,000

)

(50,321

)

(20,000

)

Dividend payments

(9,494

)

(9,919

)

(18,964

)

(19,802

)

Other

(247

)

1,750

 

(497

)

1,504

 

Net cash used in financing activities

(26,315

)

(17,905

)

(79,166

)

(76,684

)

Effect of exchange rate changes on cash

(450

)

(6,314

)

(706

)

(2,967

)

Increase (decrease) in cash and cash equivalents

179,022

 

(293,130

)

39,320

 

(368,302

)

Cash and cash equivalents at beginning of period

342,360

 

550,236

 

482,062

 

625,408

 

Cash and cash equivalents at end of period

$

521,382

 

$

257,106

 

$

521,382

 

$

257,106

 

Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)

Note: In the first quarter of 2019, the Company has changed its definition of segment profit to include inter-segment sales. The Company updated its recognition of inter-segment sales to recognize the revenue and profit associated with products and components produced in one segment and supplied to another, before being sold to the ultimate end customer. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at approximate market prices. Inter-segment sales are presented as an elimination below. Prior quarter information was recast to reflect the change in the Company’s definition of segment profit.

 

Three months ended

 

Six months ended

Net sales

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

Specialty Chemicals and Engineered Materials

$

127,552

 

$

134,336

 

$

124,470

 

 

$

252,022

 

$

265,079

 

Microcontamination Control

150,185

 

124,937

 

157,706

 

 

307,891

 

243,860

 

Advanced Materials Handling

107,515

 

130,572

 

116,064

 

 

223,579

 

254,650

 

Inter-segment elimination

(6,378

)

(6,786

)

(7,193

)

 

(13,571

)

(13,331

)

Total net sales

$

378,874

 

$

383,059

 

$

391,047

 

 

$

769,921

 

$

750,258

 

 

Three months ended

 

Six months ended

Segment profit

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

Specialty Chemicals and Engineered Materials

$

24,000

 

$

36,728

 

$

24,431

 

 

$

48,431

 

$

67,649

 

Microcontamination Control

43,126

 

37,214

 

47,323

 

 

90,449

 

77,525

 

Advanced Materials Handling

15,043

 

25,542

 

22,367

 

 

37,410

 

51,005

 

Total segment profit

82,169

 

99,484

 

94,121

 

 

176,290

 

196,179

 

Amortization of intangible assets

16,591

 

12,014

 

18,657

 

 

35,248

 

23,683

 

Unallocated expenses

10,669

 

12,537

 

27,973

 

 

38,642

 

19,090

 

Total operating income

$

54,909

 

$

74,933

 

$

47,491

 

 

$

102,400

 

$

153,406

 

Entegris, Inc. and Subsidiaries
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
(In thousands)
(Unaudited)

 

Three months ended

 

Six months ended

 

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

Net sales

$

378,874

 

$

383,059

 

$

391,047

 

 

$

769,921

 

$

750,258

 

Gross profit-GAAP

$

166,274

 

$

182,378

 

$

177,393

 

 

$

343,667

 

$

358,375

 

Adjustments to gross profit:

 

 

 

 

 

 

Severance and restructuring costs

 

 

358

 

 

358

 

 

Charge for fair value mark-up of acquired inventory sold

695

 

208

 

2,155

 

 

2,850

 

208

 

Adjusted gross profit

$

166,969

 

$

182,586

 

$

179,906

 

 

$

346,875

 

$

358,583

 

 

 

 

 

 

 

 

Gross margin - as a % of net sales

43.9

%

47.6

%

45.4

%

 

44.6

%

47.8

%

Adjusted gross margin - as a % of net sales

44.1

%

47.7

%

46.0

%

 

45.1

%

47.8

%

Entegris, Inc. and Subsidiaries
Reconciliation of GAAP Segment Profit to Adjusted Operating Income
(In thousands)
(Unaudited)

Note: In the first quarter of 2019, the Company has changed its definition of segment profit to include inter-segment sales. The Company updated its recognition of inter-segment sales to recognize the revenue and profit associated with products and components produced in one segment and supplied to another, before being sold to the ultimate end customer. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at approximate market prices. Prior quarter information was recast to reflect the change in the Company’s definition of segment profit.

 

Three months ended

 

Six months ended

Segment profit-GAAP

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

Specialty Chemicals and Engineered Materials

$

24,000

 

$

36,728

 

$

24,431

 

 

$

48,431

 

$

67,649

 

Microcontamination Control

43,126

 

37,214

 

47,323

 

 

90,449

 

77,525

 

Advanced Materials Handling

15,043

 

25,542

 

22,367

 

 

37,410

 

51,005

 

Total segment profit

82,169

 

99,484

 

94,121

 

 

176,290

 

196,179

 

Amortization of intangible assets

16,591

 

12,014

 

18,657

 

 

35,248

 

23,683

 

Unallocated expenses

10,669

 

12,537

 

27,973

 

 

38,642

 

19,090

 

Total operating income

$

54,909

 

$

74,933

 

$

47,491

 

 

$

102,400

 

$

153,406

 

 

Three months ended

 

Six months ended

Adjusted segment profit

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

Specialty Chemicals and Engineered Materials1

$

24,695

 

$

36,728

 

$

25,070

 

 

$

49,765

 

$

67,649

 

Microcontamination Control 2

43,126

 

37,422

 

50,082

 

 

93,208

 

77,733

 

Advanced Materials Handling 3

15,043

 

25,542

 

22,945

 

 

37,988

 

51,005

 

Total adjusted segment profit

82,864

 

99,692

 

98,097

 

 

180,961

 

196,387

 

Amortization of intangible assets4

 

 

 

 

 

 

Unallocated expenses5

6,071

 

6,219

 

5,917

 

 

11,988

 

12,772

 

Total adjusted operating income

$

76,793

 

$

93,473

 

$

92,180

 

 

$

168,973

 

$

183,615

 

1 Adjusted segment profit for Specialty Chemicals and Engineered Materials for the three months ended June 29, 2019, three months ended March 30, 2019 and for the six months ended June 29, 2019 excludes charges for fair value mark-up of acquired inventory sold of $695, $120 and $815, respectively. The three months ended March 30, 2019 and six months ended June 29, 2019 excludes charges for severance and restructuring of $519.
2 Adjusted segment profit for Microcontamination Control for the three and six months ended June 30, 2018, and the three months March 30, 2019 and six months ended June 29, 2019 excludes charges for fair value mark-up of acquired inventory sold of $208 and $2,035, respectively. Adjusted segment profit for three months ended March 30, 2019 and six months ended June 29, 2019 excludes charges for severance and restructuring of $724.
3Adjusted segment profit for Advanced Materials Handling for the three months ended March 30, 2019 and six months ended June 29, 2019 excludes charges for severance and restructuring of $578, respectively.
4 Adjusted amortization of intangible assets excludes amortization expense of $16,591, $12,014 and $18,657 for the three months ended June 29, 2019, June 30, 2018 and March 30, 2019 respectively and $35,248 and $23,683 for the six months ended June 29, 2019 and June 30, 2018, respectively.
5 Adjusted unallocated expenses for the three months ended June 29, 2019, June 30, 2018, and March 30, 2019 excludes deal and integration expenses of $2,428, $6,318, and $22,056. Adjusted unallocated expenses for the six months ended June 29, 2019 and June 30, 2018 excludes deal and integration expenses of $24,484 and $6,318. Adjusted unallocated expenses for the three and six months ended June 29, 2019 excludes restructuring charges of $2,170.

Entegris, Inc. and Subsidiaries
Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)

 

Three months ended

 

Six months ended

 

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

Net sales

$

378,874

 

$

383,059

 

$

391,047

 

 

$

769,921

 

$

750,258

 

Net income

$

123,997

 

$

54,349

 

$

32,658

 

 

$

156,655

 

$

111,911

 

Adjustments to net income:

 

 

 

 

 

 

Income tax expense

43,235

 

9,782

 

5,422

 

 

48,657

 

23,328

 

Interest expense, net

9,692

 

6,925

 

9,659

 

 

19,351

 

14,151

 

Other (income) expense, net

(122,015

)

3,877

 

(248

)

 

(122,263

)

4,016

 

GAAP - Operating income

54,909

 

74,933

 

47,491

 

 

102,400

 

153,406

 

Charge for fair value write-up of acquired inventory sold

695

 

208

 

2,155

 

 

2,850

 

208

 

Deal costs

1,164

 

5,121

 

19,136

 

 

20,300

 

5,121

 

Integration costs

1,264

 

1,197

 

2,920

 

 

4,184

 

1,197

 

Severance and restructuring costs

2,170

 

 

1,821

 

 

3,991

 

 

Amortization of intangible assets

16,591

 

12,014

 

18,657

 

 

35,248

 

23,683

 

Adjusted operating income

76,793

 

93,473

 

92,180

 

 

168,973

 

183,615

 

Depreciation

18,596

 

15,802

 

16,721

 

 

35,317

 

31,699

 

Adjusted EBITDA

$

95,389

 

$

109,275

 

$

108,901

 

 

$

204,290

 

$

215,314

 

 

 

 

 

 

 

 

Adjusted operating margin

20.3

%

24.4

%

23.6

%

 

21.9

%

24.5

%

Adjusted EBITDA - as a % of net sales

25.2

%

28.5

%

27.8

%

 

26.5

%

28.7

%

Entegris, Inc. and Subsidiaries
Reconciliation of GAAP Net Income to Non-GAAP Earnings per Share
(In thousands, except per share data)
(Unaudited)

 

Three months ended

 

Six months ended

 

June 29, 2019

June 30, 2018

March 30, 2019

 

June 29, 2019

June 30, 2018

GAAP net income

$

123,997

 

$

54,349

 

$

32,658

 

 

$

156,655

 

$

111,911

 

Adjustments to net income:

 

 

 

 

 

 

Charge for fair value write-up of acquired inventory sold

695

 

208

 

2,155

 

 

2,850

 

208

 

Deal costs

1,164

 

5,121

 

19,547

 

 

20,711

 

5,121

 

Integration costs

1,264

 

1,197

 

2,920

 

 

4,184

 

1,197

 

Severance and restructuring costs

2,170

 

 

1,821

 

 

3,991

 

 

Versum termination fee, net

(122,000

)

 

 

 

(122,000

)

 

Amortization of intangible assets

16,591

 

12,014

 

18,657

 

 

35,248

 

23,683

 

Tax effect of legal entity restructuring

9,398

 

 

 

 

9,398

 

 

Tax effect of adjustments to net income and discrete items1

20,153

 

(3,702

)

(9,864

)

 

10,289

 

(6,412

)

Tax effect of Tax Cuts and Jobs Act

 

648

 

 

 

 

2,142

 

Non-GAAP net income

$

53,432

 

$

69,835

 

$

67,894

 

 

$

121,326

 

$

137,850

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.91

 

$

0.38

 

$

0.24

 

 

$

1.15

 

$

0.78

 

Effect of adjustments to net income

$

(0.52

)

$

0.11

 

$

0.26

 

 

$

(0.26

)

$

0.18

 

Diluted non-GAAP earnings per common share

$

0.39

 

$

0.49

 

$

0.50

 

 

$

0.89

 

$

0.96

 

1The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate during the respective years.

Source: Entegris, Inc.

Bill Seymour
VP of Investor Relations
T + 1 952 556 1844