UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 26, 2016
ENTEGRIS, INC.
(Exact name of registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation or Organization)
001-32598 | 41-1941551 | |
(Commission File Number) |
(I.R.S. Employer Identification No.) | |
129 Concord Road, Billerica, MA | 01821 | |
(Address of principal executive offices) | (Zip Code) |
(978) 436-6500
(Registrants telephone number, including area code)
N/A
(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:
¨ | 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 2.02. | Results of Operations and Financial Condition. |
On April 26, 2016, the registrant issued a press release to announce results for the first quarter of 2016, ended April 2, 2016 and held a conference call to discuss such results. A copy of this press release and the supplemental slides to which management referred during the conference call are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.
In accordance with General Instructions B.2 of Form 8-K, the information in this Item 2.02 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. The information set forth herein will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit |
Description | |
99.1 | Press Release, dated April 26, 2016 | |
99.2 | First Quarter Earnings Release Presentation Slides, dated April 26, 2016 |
SIGNATURE
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.
ENTEGRIS, INC. | ||||||
Dated: April 26, 2016 | By | /s/ Gregory B. Graves | ||||
Name: | Gregory B. Graves | |||||
Title: | Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press Release, dated April 26, 2016 | |
99.2 | First Quarter Earnings Release Presentation Slides, dated April 26, 2016 |
Exhibit 99.1
PRESS RELEASE
Steven Cantor VP of Corporate Relations T +1 978 436 6750 irelations@entegris.com |
FOR RELEASE AT 7AM ET
Entegris Reports First-Quarter Results
| Quarterly revenue of $267.0 million |
| GAAP net income of $16.2 million, or $0.11 per diluted share |
| Non-GAAP net income of $23.6 million, or $0.17 per diluted share |
BILLERICA, Mass., April 26, 2016 Entegris, Inc. (NasdaqGS: ENTG), a leading provider of yield-enhancing materials and solutions for advanced manufacturing processes, today reported its financial results for the Companys first quarter ended April 2, 2016.
The Company recorded first-quarter sales of $267.0 million. First-quarter net income of $16.2 million, or $0.11 per diluted share, included amortization of intangible assets of $11.3 million. Non-GAAP net income was $23.6 million, or $0.17 per diluted share.
Bertrand Loy, president and chief executive officer, said: I am very pleased with the quality of our execution as our first quarter sales exceeded the high end of our expectations and we generated solid cash flow from operations. During the first quarter we saw strong demand for our advanced microenvironment and liquid packaging product platforms. These products are part of a broad portfolio of solutions that are addressing the semiconductor industrys increasing requirements for higher degrees of purity and cleanliness in their process chemistries and manufacturing processes.
Mr. Loy added: These emerging requirements represent incremental opportunities across the semiconductor ecosystem that we believe will be important growth drivers for Entegris in the future. Looking ahead, continued demand trends for our solutions position us for a strong second quarter.
Quarterly Financial Results Summary
(in millions, except per share data)
GAAP Results |
Q1-2016 | Q1-2015 | Q4-2015 | |||||||||
Net sales |
$ | 267,024 | $ | 263,373 | $ | 266,786 | ||||||
Operating income |
$ | 29,559 | $ | 27,539 | $ | 20,116 | ||||||
Operating margin |
11.1 | % | 10.5 | % | 7.5 | % | ||||||
Net income |
$ | 16,212 | $ | 14,872 | $ | 17,573 | ||||||
Earnings per share (EPS) |
$ | 0.11 | $ | 0.11 | $ | 0.12 | ||||||
Non-GAAP adjusted operating income |
$ | 40,848 | $ | 42,458 | $ | 37,141 | ||||||
Adjusted operating margin |
15.3 | % | 16.1 | % | 13.9 | % | ||||||
Non-GAAP net income |
$ | 23,617 | $ | 25,446 | $ | 28,822 | ||||||
Non-GAAP EPS |
$ | 0.17 | $ | 0.18 | $ | 0.20 |
129 Concord Road | Billerica, MA 01821 USA | T +1 978 436 6500
Second-Quarter Outlook
For the fiscal second quarter ending July 2, 2016 the Company expects sales of $270 million to $285 million, net income of $19 million to $24 million, and net income per diluted share between $0.13 to $0.17 per share. On a non-GAAP basis, EPS is expected to range from $0.18 to $0.22 per diluted share, which reflects net income on a non-GAAP basis in the range of $26 million to $31 million, which is adjusted for expected amortization expense of approximately $11.0 million or $0.05 per share.
Segment Results
The Company reports its results in two business segments: Critical Materials Handling (CMH) and Electronic Materials (EM). Summary results by segment are contained in this press release. CMH provides a broad range of products that filter, handle, dispense, and protect critical materials used in the semiconductor manufacturing process and in other high-technology manufacturing. CMHs products and subsystems include high-purity materials packaging, fluid-handling and dispensing systems, liquid filters, as well as microenvironments that protect critical substrates such as wafers during shipping and manufacturing. CMH also provides specialized graphite components and specialty coatings for use in high temperature applications.
EM provides high performance materials and specialty gas management solutions that enable high yield, cost effective semiconductor manufacturing. EMs products consist of specialized chemistries and performance materials, gas microcontamination control solutions, and sub-atmospheric pressure gas delivery systems for the efficient handling of hazardous gases to semiconductor process equipment.
First-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the first quarter on Tuesday, April 26, 2016, at 10:00 a.m. Eastern Time. Participants should dial 785-424-1666 or toll-free 877-876-9177, referencing confirmation code 4849122. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. A replay of the call will be available starting April 26, 2016 at 1:00 p.m. (ET) until Thursday, June 9, 2016. The replay can be accessed by using passcode 4849122 after dialing 1-719-457-0820 or 1-888-203-1112. A live and on-demand webcast of the call can also be accessed from the investor relations section of Entegris website at www.entegris.com.
Please also refer to Managements slide presentation concerning first-quarter results which may be referred to during the call. This presentation will be posted on the investor relations section of www.entegris.com Tuesday morning before the call.
ABOUT ENTEGRIS
Entegris is a leading provider of yield-enhancing materials and solutions for advanced manufacturing processes in the semiconductor and other high-technology industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.
Entegris, Inc. | page 2 of 10
Non-GAAP Information
The Companys condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA 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 SEC. These financial measures are provided as a complement to financial measures provided in accordance with GAAP. We provide non-GAAP financial measures in order to better assess and measure operating performance. Management believes the non-GAAP measures better portray our baseline performance before certain gains, losses or other charges that may not be indicative of our business or future outlook. We believe these non-GAAP measures will aid investors overall understanding of our results by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will help investors understand how we plan and measure our business. The reconciliations of GAAP to non-GAAP Statements of Operations, GAAP to Adjusted Operating Income and Adjusted EBITDA, and GAAP to Non-GAAP Earnings per Share are included elsewhere in this release.
Forward-Looking Statements
Certain information contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, and involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Statements that include such words as anticipate, believe, estimate, expect, forecast, may, will, should or the negative thereof and similar expressions as they relate to Entegris or our management are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris stock, Entegris future operating results, other acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris periodic public filings with the Securities and Exchange Commission, including discussions appearing under the headings Risks Relating to our Business and Industry, Risks Relating to Our Indebtedness, Manufacturing Risks, International Risks, and Risks Related to Owning Our Common Stock in Item 1A of our Annual Report on Form 10K for the fiscal year ended December 31, 2015, filed with the U.S Securities and Exchange Commission on February 29, 2016, as well as other matters and important factors disclosed previously and from time to time in the filings of Entegris with the U.S. Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update publicly any forward-looking statements contained herein.
Entegris, Inc. | page 3 of 10
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended | ||||||||||||
April 2, 2016 | March 28, 2015 | December 31, 2015 |
||||||||||
Net sales |
$ | 267,024 | $ | 263,373 | $ | 266,786 | ||||||
Cost of sales |
152,318 | 146,837 | 157,488 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit |
114,706 | 116,536 | 109,298 | |||||||||
Selling, general and administrative expenses |
47,956 | 50,890 | 51,024 | |||||||||
Engineering, research and development expenses |
25,902 | 25,800 | 26,717 | |||||||||
Amortization of intangible assets |
11,289 | 12,307 | 11,441 | |||||||||
|
|
|
|
|
|
|||||||
Operating income |
29,559 | 27,539 | 20,116 | |||||||||
Interest expense, net |
9,149 | 9,628 | 9,694 | |||||||||
Other income, net |
(675 | ) | (1,733 | ) | (3,889 | ) | ||||||
|
|
|
|
|
|
|||||||
Income before income tax expense (benefit) and equity in net loss of affiliates |
21,085 | 19,644 | 14,311 | |||||||||
Income tax expense (benefit) |
4,873 | 4,670 | (4,731 | ) | ||||||||
Equity in net loss of affiliates |
| 102 | 1,469 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
$ | 16,212 | $ | 14,872 | $ | 17,573 | ||||||
|
|
|
|
|
|
|||||||
Basic net income per common share: |
$ | 0.12 | $ | 0.11 | $ | 0.13 | ||||||
Diluted net income per common share: |
$ | 0.11 | $ | 0.11 | $ | 0.12 | ||||||
Weighted average shares outstanding: |
||||||||||||
Basic |
140,780 | 139,984 | 140,567 | |||||||||
Diluted |
141,371 | 140,740 | 141,433 |
Entegris, Inc. | page 4 of 10
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
April 2, 2016 | December 31, 2015 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 344,403 | $ | 349,825 | ||||
Short-term investments |
1,140 | 2,181 | ||||||
Accounts receivable, net |
149,824 | 141,409 | ||||||
Inventories |
184,030 | 173,176 | ||||||
Deferred tax charges and refundable income taxes |
18,762 | 18,943 | ||||||
Other current assets |
21,622 | 23,253 | ||||||
|
|
|
|
|||||
Total current assets |
719,781 | 708,787 | ||||||
Property, plant and equipment, net |
322,729 | 321,301 | ||||||
Goodwill |
343,286 | 342,111 | ||||||
Intangible assets |
251,803 | 258,942 | ||||||
Deferred tax assets |
8,241 | 7,771 | ||||||
Other assets |
7,990 | 7,785 | ||||||
|
|
|
|
|||||
Total assets |
$ | 1,653,830 | $ | 1,646,697 | ||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Long-term debt, current maturities |
$ | 50,000 | $ | 50,000 | ||||
Accounts payable |
47,550 | 36,916 | ||||||
Accrued liabilities |
52,528 | 75,859 | ||||||
Income tax payable |
11,625 | 12,775 | ||||||
|
|
|
|
|||||
Total current liabilities |
161,703 | 175,550 | ||||||
Long-term debt, excluding current maturities |
606,630 | 606,044 | ||||||
Other liabilities |
63,743 | 62,220 | ||||||
Shareholders equity |
821,754 | 802,883 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 1,653,830 | $ | 1,646,697 | ||||
|
|
|
|
Entegris, Inc. | page 5 of 10
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended | ||||||||
April 2, 2016 | March 28, 2015 | |||||||
Operating activities: |
||||||||
Net income |
$ | 16,212 | $ | 14,872 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation |
13,700 | 13,319 | ||||||
Amortization |
11,289 | 12,307 | ||||||
Stock-based compensation expense |
2,861 | 2,258 | ||||||
Provision for deferred income taxes |
(211 | ) | (2,833 | ) | ||||
Other |
4,796 | 2,908 | ||||||
Changes in operating assets and liabilities: |
||||||||
Trade accounts and notes receivable |
(6,799 | ) | (32,246 | ) | ||||
Inventories |
(12,998 | ) | (7,512 | ) | ||||
Accounts payable and accrued liabilities |
(9,510 | ) | (5,962 | ) | ||||
Income taxes payable and refundable income taxes |
(726 | ) | 3,241 | |||||
Other |
(1,275 | ) | (484 | ) | ||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities |
17,339 | (132 | ) | |||||
|
|
|
|
|||||
Investing activities: |
||||||||
Acquisition of property and equipment |
(17,819 | ) | (20,488 | ) | ||||
Other |
(2,495 | ) | 1,060 | |||||
|
|
|
|
|||||
Net cash used in investing activities |
(20,314 | ) | (19,428 | ) | ||||
|
|
|
|
|||||
Financing activities: |
||||||||
Payments on long-term debt |
| (25,000 | ) | |||||
Issuance of common stock |
| 520 | ||||||
Repurchase and retirement of common stock |
(3,573 | ) | | |||||
Taxes paid related to net share settlement of equity awards |
(2,067 | ) | (2,053 | ) | ||||
Other |
49 | 135 | ||||||
|
|
|
|
|||||
Net cash used in financing activities |
(5,591 | ) | (26,398 | ) | ||||
|
|
|
|
|||||
Effect of exchange rate changes on cash |
3,144 | (2,354 | ) | |||||
|
|
|
|
|||||
Decrease in cash and cash equivalents |
(5,422 | ) | (48,312 | ) | ||||
Cash and cash equivalents at beginning of year |
349,825 | 389,699 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of year |
$ | 344,403 | $ | 341,387 | ||||
|
|
|
|
Entegris, Inc. | page 6 of 10
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
Three months ended | ||||||||||||
Net sales |
April 2, 2016 |
March 28, 2015 |
December 31, 2015 |
|||||||||
Critical Materials Handling |
$ | 166,229 | $ | 167,468 | $ | 163,567 | ||||||
Electronic Materials |
100,795 | 95,905 | 103,219 | |||||||||
|
|
|
|
|
|
|||||||
Total net sales |
$ | 267,024 | $ | 263,373 | $ | 266,786 | ||||||
|
|
|
|
|
|
Three months ended | ||||||||||||
Segment profit |
April 2, 2016 |
March 28, 2015 |
December 31, 2015 |
|||||||||
Critical Materials Handling |
$ | 37,892 | $ | 41,341 | $ | 33,030 | ||||||
Electronic Materials |
21,575 | 20,222 | 21,953 | |||||||||
|
|
|
|
|
|
|||||||
Total segment profit |
59,467 | 61,563 | 54,983 | |||||||||
Amortization of intangibles |
11,289 | 12,307 | 11,441 | |||||||||
Unallocated expenses |
18,619 | 21,717 | 23,426 | |||||||||
|
|
|
|
|
|
|||||||
Total operating income |
$ | 29,559 | $ | 27,539 | $ | 20,116 | ||||||
|
|
|
|
|
|
Entegris, Inc. | page 7 of 10
Entegris, Inc. and Subsidiaries
GAAP to Non-GAAP Reconciliation of Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended April 2, 2016 |
||||||||||||
U.S. GAAP |
Adjustments | Non-GAAP | ||||||||||
Net sales |
$ | 267,024 | $ | | $ | 267,024 | ||||||
Cost of sales |
152,318 | | 152,318 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit |
114,706 | | 114,706 | |||||||||
Selling, general and administrative expenses |
47,956 | | 47,956 | |||||||||
Engineering, research and development expenses |
25,902 | | 25,902 | |||||||||
Amortization of intangible assets (a) |
11,289 | (11,289 | ) | | ||||||||
|
|
|
|
|
|
|||||||
Operating income |
29,559 | 11,289 | 40,848 | |||||||||
Interest expense, net |
9,149 | | 9,149 | |||||||||
Other income, net (b) |
(675 | ) | 118 | (557 | ) | |||||||
|
|
|
|
|
|
|||||||
Income before income tax expense and equity in net loss of affiliates |
21,085 | 11,171 | 32,256 | |||||||||
Income tax expense (c) |
4,873 | 3,766 | 8,639 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
$ | 16,212 | $ | 7,405 | $ | 23,617 | ||||||
|
|
|
|
|
|
|||||||
Basic income per common share: |
$ | 0.12 | $ | 0.05 | $ | 0.17 | ||||||
Diluted income per common share: |
$ | 0.11 | $ | 0.05 | $ | 0.17 | ||||||
Weighted average shares outstanding: |
||||||||||||
Basic |
140,780 | 140,780 | 140,780 | |||||||||
Diluted |
141,371 | 141,371 | 141,371 |
The above GAAP to Non-GAAP Reconciliation of Statement of Operations is provided as a complement to and should be read in conjunction with the Condensed Consolidated Statements of Operations. The above GAAP to Non-GAAP Reconciliation of Statement of Operations is provided to better facilitate the assessment and measurement of the Companys operating performance.
a) | Amortization expense for the three months ended April 2, 2016 is adjusted for $11.3 million for amortization expense related to acquisitions. |
b) | Other income, net for the three months ended April 2, 2016 is adjusted for a $0.1 million gain on the sale of an equity investment. |
c) | Income tax expense for the three months ended April 2, 2016 is adjusted for $3.8 million related to the adjustments noted above. |
Entegris, Inc. | page 8 of 10
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
Three months ended | ||||||||||||
April 2, 2016 |
March 28, 2015 |
December 31, 2015 |
||||||||||
Net sales |
$ | 267,024 | $ | 263,373 | $ | 266,786 | ||||||
|
|
|
|
|
|
|||||||
Net income |
$ | 16,212 | $ | 14,872 | $ | 17,573 | ||||||
Adjustments to net income: |
||||||||||||
Equity in net loss of affiliates |
| 102 | 1,469 | |||||||||
Income tax expense (benefit) |
4,873 | 4,670 | (4,731 | ) | ||||||||
Interest expense, net |
9,149 | 9,628 | 9,694 | |||||||||
Other income, net |
(675 | ) | (1,733 | ) | (3,889 | ) | ||||||
|
|
|
|
|
|
|||||||
GAAP Operating income |
29,559 | 27,539 | 20,116 | |||||||||
Integration costs |
| 2,612 | 5,584 | |||||||||
Amortization of intangible assets |
11,289 | 12,307 | 11,441 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted operating income |
40,848 | 42,458 | 37,141 | |||||||||
Depreciation |
13,700 | 13,319 | 14,225 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted EBITDA |
$ | 54,548 | $ | 55,777 | $ | 51,366 | ||||||
|
|
|
|
|
|
|||||||
Adjusted operating margin |
15.3 | % | 16.1 | % | 13.9 | % | ||||||
Adjusted EBITDA as a % of net sales |
20.4 | % | 21.2 | % | 19.3 | % | ||||||
|
|
|
|
|
|
Entegris, Inc. | page 9 of 10
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands, except per share data)
(Unaudited)
Three months ended | ||||||||||||
April 2, 2016 |
March 28, 2015 |
December 31, 2015 |
||||||||||
GAAP net income |
$ | 16,212 | $ | 14,872 | $ | 17,573 | ||||||
Adjustments to net income: |
||||||||||||
Integration costs |
| 2,612 | 5,584 | |||||||||
Net (gain) loss on impairment or sale of investment |
(118 | ) | 673 | (2,016 | ) | |||||||
Amortization of intangible assets |
11,289 | 12,307 | 11,441 | |||||||||
Tax effect of adjustments to net income |
(3,766 | ) | (5,018 | ) | (3,760 | ) | ||||||
|
|
|
|
|
|
|||||||
Non-GAAP net income |
$ | 23,617 | $ | 25,446 | $ | 28,822 | ||||||
|
|
|
|
|
|
|||||||
Diluted earnings per common share |
$ | 0.11 | $ | 0.11 | $ | 0.12 | ||||||
Effect of adjustments to net income |
0.05 | 0.08 | 0.08 | |||||||||
Diluted non-GAAP earnings per common share |
$ | 0.17 | $ | 0.18 | $ | 0.20 | ||||||
|
|
|
|
|
|
### END ###
Entegris, Inc. | page 10 of 10
First Quarter FY 2016
Earnings Summary
April 26, 2016
R 4.0 Exhibit 99.2 |
1Q-2016 Financial Results| 2
Forward-Looking Statements and Non-GAAP Disclosures
Certain information contained in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, and involve substantial risks and uncertainties
that could cause actual results to differ materially from the results expressed
in, or implied by, these forward- looking statements.
Statements that include such words as anticipate, believe, estimate, expect, forecast, may, will, should or the negative thereof and similar expressions as they
relate to Entegris or our
management are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris stock, Entegris future operating results,
other acquisition and investment opportunities available to
Entegris, general business and market conditions and other
factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris periodic public filings with the Securities and Exchange Commission,
including discussions appearing under the headings Risks Relating to our
Business and Industry, Risks Relating to Our
Indebtedness, Manufacturing Risks, International Risks, and Risks Related to Owning Our Common Stock in Item 1A of our Annual Report on Form 10K for the fiscal year ended December 31, 2015, filed with the U.S
Securities and Exchange Commission on February 29, 2016, as well as other
matters and important factors disclosed previously and from time
to time in the filings of Entegris with the U.S. Securities and
Exchange Commission. Except as required under the federal
securities laws and the rules and regulations of the Securities
and Exchange Commission, we undertake no obligation to update publicly any
forward-looking statements contained herein.
Safe Harbor Non-GAAP Measures Management uses certain non-GAAP measurements to assess the Companys current and future financial performance. The non-GAAP measurements do not replace the presentation of the Companys GAAP financial
results. These measurements provide supplemental information to assist
management in analyzing the Companys financial position and
results of operations. Reconciliations of the non-GAAP financial measures used throughout this presentation to comparable GAAP measures can be found in Appendix and on the Entegris
website: www.entegris.com. |
1Q-2016 Financial Results| 3
($ Millions) 1Q16 1Q16 Guidance 4Q15 1Q15 1Q16 over 4Q15 1Q16 over 1Q15 Net Revenue $267.0 $250 to $265 $266.8 $263.4 0.1% 1.4% Gross Margin 43.0% 42% to 43% 41.0% 44.2% 4.9% (2.7%) Non-GAAP Operating Expenses $73.9 $72.2 $74.1 2.4% (0.3%) Adjusted EBITA (1) $40.8 $37.1 $42.5 10.0% (4.0%) Adjusted EBITA Margin (1) 15.3% 13.9% 16.1% 10.1% (5.0%) Non-GAAP Tax Rate 26.8% 28% (3.5%) 27.5% NM (2.5%) Non-GAAP Net Income $23.6 $28.8 $25.4 (18.1%) (7.1%) Non-GAAP EPS $0.17 $0.13 to $0.17 $0.20 $0.18 (15.0%) (5.6%) Summary Consolidated Statement of Operations Summary Consolidated Statement of Operations 1. See GAAP to Non-GAAP statements in the Companys press release |
1Q-2016 Financial Results| 4
Results By Segment
Results By Segment
Sales by Segment
4Q15 1Q16 4Q15 1Q16 $ in Millions Profit Margin by Segment (1) 4Q15 1Q16 4Q15 1Q16 % Sales 1. Excludes amortization of intangibles and unallocated expenses. 20.2% 21.3% 22.8% 21.4% Critical Materials Handling Electronic Materials $163.6 $103.2 $166.2 $100.8 Critical Materials Handling Electronic Materials |
1Q-2016 Financial Results| 5
Revenue by Geography
Revenue by Geography
Revenue By Geography
Asia Japan Europe N. America 4Q15 1Q16 Revenue by Geography Sequential Trends $ in Millions 4Q15 1Q16 4Q15 1Q16 4Q15 1Q16 Q1-2016 $61.1 $143.6 $34.3 $27.8 $64.0 $141.2 $35.2 $26.7 US Asia Japan Europe |
1Q-2016 Financial Results| 6
1Q16 4Q15 1Q15 ($ Millions) $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $344.4 20.8% $349.8 21.2% $341.4 19.9% Accounts Receivable, net $149.8 9.1% $141.4 8.6% $184.7 10.7% Inventories $184.0 11.1% $173.2 10.5% $166.2 9.7% Net PP&E $322.7 19.5% $321.3 19.5% $313.1 18.2% Total Assets $1,653.8 $1,646.7 $1,719.8 Current Liabilities (1) $161.7 9.8% $175.6 10.7% $228.0 13.3% Long-term debt, excluding current maturities $606.6 36.7% $606.0 36.8% $653.9 38.0% Total Liabilities $832.0 50.3% $843.8 51.2% $965.3 56.1% Total Shareholders Equity $821.8 49.7% $802.9 48.8% $754.5 43.9% AR Turnover Days 51.2 48.4 64.0 Inventory Turns 3.4 3.5 3.6 Summary Balance Sheet Items Summary Balance Sheet Items 1. Current Liabilities in 1Q15, 4Q15, 1Q16 includes $75 million, $50 million, and $50 million of current maturities of long
term debt |
1Q-2016 Financial Results| 7
EBITDA EBITDA ($ in Millions) $51 $55 19.3% 0 0.05 0.1 0.15 0.2 25 30 35 40 45 50 55 60 4Q15 1Q16 Adjusted EBITDA Adj. EBITDA EBITDA margin $234 $231 22.1% 0 0.05 0.1 0.15 0.2 25 75 125 175 225 275 TTM - 1Q15(1) TTM - 1Q16 Adjusted EBITDA Adj. EBITDA EBITDA margin 20.4% 21.3% |
1Q-2016 Financial Results| 8
($ Millions) 1Q16 4Q15 1Q15 Beginning Cash Balance $349.8 $301.1 $389.7 Cash from operating activities $17.3 $52.2 $(0.1) Capital expenditures $(17.8) $(16.3) $(20.5) Payments on long-term debt - - $(25) Other investing activities $(2.5) $(5.9) $1.1 Other financing activities $(5.6) $6.4 $(1.4) Effect of exchange rates $3.2 $0.5 $(2.4) Ending Cash Balance $344.4 $349.8 $341.4 Free Cash Flow $(0.5) $35.9 $(20.6) Adjusted EBITDA $54.5 $55.8 $51.4 Cash Flows Cash Flows |
1Q-2016 Financial Results| 9
Outlook Outlook ($ Millions, except per share data) 2Q16 Guidance 1Q16 2Q15 Net Revenue $270 to $285 $267.0 $280.7 Gross Margin 43.5% to 44.5% 43.0% 45.6% Non-GAAP Operating Expenses $74 to $77 $73.9 $74.4 Non-GAAP Tax Rate 28% 26.8% 25% Non-GAAP Net Income $26 to $31 $23.6 $33.9 Non-GAAP EPS $0.18 to $0.22 $0.17 $0.24 |
1Q-2016 Financial Results| 10
Appendix and Non-GAAP Reconciliation Table
Appendix and Non-GAAP Reconciliation Table
|
1Q-2016 Financial Results| 11
Non GAAP Reconciliation Table
GAAP to Non-GAAP Reconciliation of Statement of Operations
Non GAAP Reconciliation Table
GAAP to Non-GAAP Reconciliation of Statement of Operations
(In thousands, except per share data)
(Unaudited) a) Amortization expense for the three months ended April 2, 2016 is adjusted for $11.3 million for amortization expense related to
acquisitions. b)
Other income, net for the three months ended April 2, 2016 is adjusted for a
$0.1 million gain on the sale of an equity investment.
c) Income tax expense for the three months ended April 2, 2016 is adjusted for $3.8 million related to the adjustments noted
above. The above GAAP to Non-GAAP Reconciliation of Statement
of Operations is provided as a complement to and should be read in conjunction with the Condensed Consolidated Statements of Operations. The above GAAP to Non-GAAP Reconciliation of Statement of Operations is provided to better facilitate the
assessment and measurement of the Companys operating
performance.
|
1Q-2016 Financial Results| 12
Non GAAP Reconciliation Table
Reconciliation of GAAP to Adjusted Operating Income and Adjusted
EBITDA Non GAAP Reconciliation Table
Reconciliation of GAAP to Adjusted Operating Income and Adjusted
EBITDA (In thousands, except per share data)
(Unaudited) |
1Q-2016 Financial Results| 13
Non GAAP Reconciliation Table
Reconciliation of GAAP to Non-GAAP Earnings Per Share
Non GAAP Reconciliation Table
Reconciliation of GAAP to Non-GAAP Earnings Per Share
(In thousands, except per share data)
(Unaudited) |
Entegris®,
the Entegris Rings Design® and Creating a Material Advantage SM are trademarks of Entegris, Inc. ©2013 Entegris, Inc. All rights reserved. |