Document
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) July 27, 2017
_______________________________________
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
(Registrant’s 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 July 27, 2017, the registrant issued a press release to announce results for the second quarter of 2017, ended July 1, 2017, and will hold a conference call to discuss such results. A copy of this press release and the supplemental slides to which management will refer 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, 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 No. | | Description |
99.1 | | Press Release, dated July 27, 2017 |
99.2 | | Second Quarter 2017 Earnings Release Presentation Slides, dated July 27, 2017 |
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: July 27, 2017
By: /s/ Gregory B. Graves
Name: Gregory B. Graves
Title: Executive Vice President and Chief Financial Officer
EXHIBIT INDEX
|
| | |
Exhibit No. | | Description |
99.1 | | Press Release, dated July 27, 2017 |
99.2 | | Second Quarter 2017 Earnings Release Presentation Slides, dated July 27, 2017 |
Exhibit
|
| | | | |
| | | PRESS RELEASE
Steven Cantor VP of Corporate Relations T + 978 436 6500 irelations@entegris.com |
Exhibit 99.1
FOR RELEASE AT 6:00 AM EST
ENTEGRIS REPORTS STRONG SECOND-QUARTER RESULTS
| |
• | Record second-quarter revenue of $329.0 million |
| |
• | GAAP net income of $40.0 million, or $0.28 per diluted share |
| |
• | Non-GAAP net income of $48.9 million, or $0.34 per diluted share |
| |
• | First-half 2017 revenue of $646.4 million grew 13.4 percent |
| |
• | First-half 2017 adjusted EBITDA reached $164.1 million, or 25.4 percent of revenue |
BILLERICA, Mass., July 27, 2017 - Entegris, Inc. (NasdaqGS: ENTG), a leading specialty materials provider, today reported its financial results for the Company’s second quarter ended July 1, 2017.
Second-quarter sales were $329.0 million, an increase of 8.6% from the same quarter last year and a 3.7% increase sequentially. Second-quarter net income was $40.0 million, or $0.28 per diluted share, which included amortization of intangible assets of $11.0 million, as well as an asset impairment charge and severance expense of $3.6 million. Non-GAAP net income was $48.9 million, or $0.34 per diluted share.
For the first half of fiscal 2017, sales of $646.4 million increased 13.4% from the same period a year ago. First-half 2017 net income was $72.5 million, or $0.51 per share, which included amortization of intangible assets of $22.0 million, as well as an asset impairment charge and severance expense of $3.6 million. Non-GAAP net income for the first half of 2017 was $89.7 million, or $0.63 per diluted share.
Bertrand Loy, president and chief executive officer, said: “I am very pleased with Entegris’ performance thus far this year which puts us on a solid path to grow well in excess of our markets in 2017. Our growth in the second-quarter was driven by positive industry trends and reflected strong performance across our portfolio of solutions, as well as successful product introductions to support the ongoing ramp of advanced semiconductor manufacturing technologies such as 3D NAND. Our first-half sales grew 13% from the prior year, driven by strong growth in Asia, particularly in Korea."
Mr. Loy added: "The quality of our execution and financial performance in the second quarter demonstrates the strength of our business model and our operating leverage, as we generated strong cash flow from operations and achieved an adjusted EBITDA of $88.2 million, or 26.8% of sales."
- more -
|
| | |
_________________________________________________________________________ |
ENTEGRIS, INC.
| 129 Concord Road, Building 2
| T + 1 978 436 6500 |
entegris.com
| Billerica, MA 01821 USA | F + 1 978 436 6745
|
Quarterly Financial Results Summary
(in thousands, except per share data)
|
| | | | | | |
GAAP Results | Q2-2017 | Q2-2016 | Q1-2017 |
Net sales | $329,002 | $303,052 | $317,377 |
Operating income | $59,090 | $46,400 | $50,920 |
Operating margin | 18.0 | % | 15.3 | % | 16.0 | % |
Net income | $39,991 | $32,890 | $32,514 |
Diluted earnings per share (EPS) | $0.28 | $0.23 | $0.23 |
Non-GAAP Results |
Non-GAAP adjusted operating income | $73,826 | $57,462 | $61,865 |
Adjusted operating margin | 22.4 | % | 19.0 | % | 19.5 | % |
Non-GAAP net income | $48,906 | $40,290 | $40,754 |
Non-GAAP EPS | $0.34 | $0.28 | $0.28 |
Third-Quarter Outlook
For the third quarter ending September 30, 2017, the Company expects sales of $325 million to $340 million, net income of $36 million to $43 million, and net income per diluted share between $0.25 and $0.30. On a non-GAAP basis, EPS is expected to range from $0.30 to $0.35 per diluted share, which reflects net income on a non-GAAP basis in the range of $43 million to $50 million, which is adjusted for expected amortization expense of approximately $11 million or $0.05 per share.
Segment Results
As of December 31, 2016, the Company changed its financial segment reporting to the following segments:
Specialty Chemicals and Engineered Materials (SCEM): SCEM provides high-performance and high-purity process chemistries, gases, and materials and 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 and substrates for a broad set of applications in the semiconductor industry and other high-technology industries.
Second-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the second quarter on Thursday, July 27, 2017, at 9:00 a.m. Eastern Time. Participants should dial 1-877-852-6583 or 1-719-325-2495, referencing confirmation code 1492733. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. To access a telephonic replay of the call, please [Click Here]. The replay will be available starting at 12:00 p.m. ET on Thursday, July 27 until Saturday, September 9. 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.
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.
Entegris, Inc. | page 2 of 13
ABOUT ENTEGRIS
Entegris is a leading specialty materials provider 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, 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 to Adjusted Operating Income and Adjusted EBITDA, GAAP Gross Profit to Adjusted Gross Profit, GAAP Segment Profit to Adjusted Operating Income, 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. 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 those about 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; market and technology trends; the development of new products and the success of their introductions; the Company's capital allocation strategy; our ability to execute on our strategies; and other matters. These forward-looking statements are based on current management expectations and assumptions only as of the date of this press release, are not guarantees of future performance and involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. 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 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
Entegris, Inc. | page 3 of 13
ended December 31, 2016, filed on February 17, 2017, and in our other periodic filings. 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 4 of 13
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
|
| | | | | | | |
| | Three months ended |
| | July 1, 2017 | July 2, 2016 | April 1, 2017 |
Net sales | $329,002 | $303,052 | $317,377 |
Cost of sales | 178,699 |
| 163,847 |
| 177,781 |
|
| Gross profit | 150,303 |
| 139,205 |
| 139,596 |
|
Selling, general and administrative expenses | 52,985 |
| 53,597 |
| 50,492 |
|
Engineering, research and development expenses | 27,221 |
| 28,146 |
| 27,239 |
|
Amortization of intangible assets | 11,007 |
| 11,062 |
| 10,945 |
|
| Operating income | 59,090 |
| 46,400 |
| 50,920 |
|
Interest expense, net | 8,103 |
| 9,051 |
| 8,393 |
|
Other (income) expense, net | (46 | ) | (1,054 | ) | 902 |
|
| Income before income tax expense | 51,033 |
| 38,403 |
| 41,625 |
|
Income tax expense | 11,042 |
| 5,513 |
| 9,111 |
|
| Net income | $39,991 | $32,890 | $32,514 |
| | | | |
| | |
Basic net income per common share: | $0.28 | $0.23 | $0.23 |
Diluted net income per common share: | $0.28 | $0.23 | $0.23 |
| | | |
Weighted average shares outstanding: | | | |
| Basic | 141,696 |
| 140,953 |
| 141,501 |
|
| Diluted | 143,508 |
| 141,723 |
| 143,315 |
|
Entegris, Inc. | page 5 of 13
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
|
| | | | | |
| | Six months ended |
| | July 1, 2017 | July 2, 2016 |
Net sales | $646,379 | $570,076 |
Cost of sales | 356,480 |
| 316,165 |
|
| Gross profit | 289,899 |
| 253,911 |
|
Selling, general and administrative expenses | 103,477 |
| 101,553 |
|
Engineering, research and development expenses | 54,460 |
| 54,048 |
|
Amortization of intangible assets | 21,952 |
| 22,351 |
|
| Operating income | 110,010 |
| 75,959 |
|
Interest expense, net | 16,496 |
| 18,200 |
|
Other expense (income), net | 856 |
| (1,729 | ) |
| Income before income tax expense | 92,658 |
| 59,488 |
|
Income tax expense | 20,153 |
| 10,386 |
|
| Net income | $72,505 | $49,102 |
| | | |
| |
Basic net income per common share: | $0.51 | $0.35 |
Diluted net income per common share: | $0.51 | $0.35 |
| | | |
Weighted average shares outstanding: | | |
| Basic | 141,599 |
| 140,867 |
|
| Diluted | 143,411 |
| 141,547 |
|
Entegris, Inc. | page 6 of 13
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
| | | | |
| July 1, 2017 | December 31, 2016 |
ASSETS | | |
Cash and cash equivalents | $405,635 | $406,389 |
Accounts receivable, net | 171,113 |
| 165,675 |
|
Inventories | 194,155 |
| 183,529 |
|
Deferred tax charges and refundable income taxes | 16,716 |
| 20,140 |
|
Other current assets | 21,374 |
| 24,398 |
|
Total current assets | 808,993 |
| 800,131 |
|
| | |
Property, plant and equipment, net | 341,146 |
| 321,562 |
|
| | |
Goodwill | 355,178 |
| 345,269 |
|
Intangible assets | 206,182 |
| 217,548 |
|
Deferred tax assets | 8,622 |
| 8,022 |
|
Other assets | 7,322 |
| 7,000 |
|
Total assets | $1,727,443 | $1,699,532 |
| | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
Long-term debt, current maturities | $100,000 | $100,000 |
Accounts payable | 56,961 |
| 61,617 |
|
Accrued liabilities | 75,275 |
| 83,530 |
|
Income tax payable | 18,786 |
| 16,424 |
|
Total current liabilities | 251,022 |
| 261,571 |
|
| | |
Long-term debt, excluding current maturities | 435,910 |
| 484,677 |
|
Other liabilities | 58,242 |
| 54,066 |
|
Shareholders’ equity | 982,269 |
| 899,218 |
|
Total liabilities and shareholders’ equity | $1,727,443 | $1,699,532 |
Entegris, Inc. | page 7 of 13
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
| | | | | | | | |
| Three months ended | Six months ended |
| July 1, 2017 | July 2, 2016 | July 1, 2017 | July 2, 2016 |
Operating activities: | | | | |
Net income | $39,991 | $32,890 | $72,505 | $49,102 |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
Depreciation | 14,411 |
| 13,825 |
| 28,388 |
| 27,525 |
|
Amortization | 11,007 |
| 11,062 |
| 21,952 |
| 22,351 |
|
Stock-based compensation expense | 4,039 |
| 3,505 |
| 7,909 |
| 6,366 |
|
Provision for deferred income taxes | (215 | ) | (720 | ) | 3,207 |
| (931 | ) |
Other | 6,497 |
| 4,408 |
| 10,130 |
| 9,204 |
|
Changes in operating assets and liabilities: | | | | |
Trade accounts and notes receivable | 4,514 |
| (29,300 | ) | (3,032 | ) | (36,099 | ) |
Inventories | (8,422 | ) | 1,609 |
| (13,837 | ) | (11,389 | ) |
Accounts payable and accrued liabilities | 10,177 |
| 23,065 |
| (13,313 | ) | 13,555 |
|
Income taxes payable and refundable income taxes | 4,209 |
| 1,133 |
| 2,957 |
| 407 |
|
Other | (1,049 | ) | (278 | ) | 1,725 |
| (1,553 | ) |
Net cash provided by operating activities | 85,159 |
| 61,199 |
| 118,591 |
| 78,538 |
|
Investing activities: | | | | |
Acquisition of business net of cash acquired | (20,000 | ) | — |
| (20,000 | ) | — |
|
Acquisition of property and equipment | (20,302 | ) | (14,325 | ) | (42,492 | ) | (32,144 | ) |
Other | 25 |
| 837 |
| 211 |
| (1,658 | ) |
Net cash used in investing activities | (40,277 | ) | (13,488 | ) | (62,281 | ) | (33,802 | ) |
Financing activities: | | | | |
Payments on long-term debt | (25,000 | ) | (25,000 | ) | (50,000 | ) | (25,000 | ) |
Issuance of common stock | 1,864 |
| 2,380 |
| 2,905 |
| 2,380 |
|
Taxes paid related to net share settlement of equity awards | (664 | ) | (136 | ) | (5,239 | ) | (2,203 | ) |
Other | (5,000 | ) | 42 |
| (9,270 | ) | (3,482 | ) |
Net cash used in financing activities | (28,800 | ) | (22,714 | ) | (61,604 | ) | (28,305 | ) |
Effect of exchange rate changes on cash | (1,606 | ) | 4,343 |
| 4,540 |
| 7,487 |
|
Increase (decrease) in cash and cash equivalents | 14,476 |
| 29,340 |
| (754 | ) | 23,918 |
|
Cash and cash equivalents at beginning of period | 391,159 |
| 344,403 |
| 406,389 |
| 349,825 |
|
Cash and cash equivalents at end of period | $405,635 | $373,743 | $405,635 | $373,743 |
Entegris, Inc. | page 8 of 13
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
|
| | | | | | | | | | |
| Three months ended | Six months ended |
Net sales | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 |
Specialty Chemicals and Engineered Materials | $121,174 | $111,782 | $114,435 | $235,609 | $212,889 |
Microcontamination Control | 104,407 |
| 91,584 |
| 100,055 |
| 204,462 |
| 169,203 |
|
Advanced Materials Handling | 103,421 |
| 99,686 |
| 102,887 |
| 206,308 |
| 187,984 |
|
Total net sales | $329,002 | $303,052 | $317,377 | $646,379 | $570,076 |
|
| | | | | | | | | | |
| Three months ended | Six months ended |
Segment profit | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 |
Specialty Chemicals and Engineered Materials | $34,174 | $28,914 | $28,140 | $62,314 | $51,330 |
Microcontamination Control | 36,484 |
| 28,566 |
| 35,581 |
| 72,065 |
| 46,706 |
|
Advanced Materials Handling | 19,573 |
| 22,519 |
| 18,276 |
| 37,849 |
| 41,430 |
|
Total segment profit | 90,231 |
| 79,999 |
| 81,997 |
| 172,228 |
| 139,466 |
|
Amortization of intangibles | 11,007 |
| 11,062 |
| 10,945 |
| 21,952 |
| 22,351 |
|
Unallocated expenses | 20,134 |
| 22,537 |
| 20,132 |
| 40,266 |
| 41,156 |
|
Total operating income | $59,090 | $46,400 | $50,920 | $110,010 | $75,959 |
Entegris, Inc. | page 9 of 13
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
(In thousands)
(Unaudited)
|
| | | | | | | | | | |
| Three months ended | Six months ended |
| July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 |
Net sales | $329,002 | $303,052 | $317,377 | $646,379 | $570,076 |
Gross profit-GAAP | $150,303 | $139,205 | $139,596 | $289,899 | $253,911 |
Adjustments to gross profit: | | | | | |
Impairment of equipment | 1,966 |
| — |
| — |
| 1,966 | — |
|
Adjusted gross profit | $152,269 | $139,205 | $139,596 | $291,865 | $253,911 |
| | | | | |
Gross margin - as a % of net sales | 45.7 | % | 45.9 | % | 44.0 | % | 44.8 | % | 44.5 | % |
Adjusted gross margin - as a % of net sales | 46.3 | % | 45.9 | % | 44.0 | % | 45.2 | % | 44.5 | % |
Entegris, Inc. | page 10 of 13
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP Segment Profit to Adjusted Operating Income
(In thousands)
(Unaudited)
|
| | | | | | | | | | |
| Three months ended | Six months ended |
Segment profit-GAAP | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 |
Specialty Chemicals and Engineered Materials | $34,174 | $28,914 | $28,140 | $62,314 | $51,330 |
Microcontamination Control | 36,484 |
| 28,566 |
| 35,581 |
| 72,065 |
| 46,706 |
|
Advanced Materials Handling | 19,573 |
| 22,519 |
| 18,276 |
| 37,849 |
| 41,430 |
|
Total segment profit | 90,231 |
| 79,999 |
| 81,997 |
| 172,228 |
| 139,466 |
|
Amortization of intangible assets | 11,007 |
| 11,062 |
| 10,945 |
| 21,952 |
| 22,351 |
|
Unallocated expenses | 20,134 |
| 22,537 |
| 20,132 |
| 40,266 |
| 41,156 |
|
Total operating income | $59,090 | $46,400 | $50,920 | $110,010 | $75,959 |
| | | | | |
Segment profit margin-GAAP | | | | | |
Specialty Chemicals and Engineered Materials | 28.2 | % | 25.9 | % | 24.6 | % | 26.4 | % | 24.1 | % |
Microcontamination Control | 34.9 | % | 31.2 | % | 35.6 | % | 35.2 | % | 27.6 | % |
Advanced Materials Handling | 18.9 | % | 22.6 | % | 17.8 | % | 18.3 | % | 22.0 | % |
|
| | | | | | | | | | |
| Three months ended | Six months ended |
Adjusted segment profit | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 |
Specialty Chemicals and Engineered Materials | $34,174 | $28,914 | $28,140 | $62,314 | $51,330 |
Microcontamination Control 1 | 37,927 |
| 28,566 |
| 35,581 |
| 73,508 |
| 46,706 |
|
Advanced Materials Handling 2 | 21,859 |
| 22,519 |
| 18,276 |
| 40,135 |
| 41,430 |
|
Total adjusted segment profit | 93,960 |
| 79,999 |
| 81,997 |
| 175,957 |
| 139,466 |
|
Amortization of intangible assets 3 | — |
| — |
| — |
| — |
| — |
|
Unallocated expenses | 20,134 |
| 22,537 |
| 20,132 |
| 40,266 |
| 41,156 |
|
Total adjusted operating income | $73,826 | $57,462 | $61,865 | $135,691 | $98,310 |
| | | | | |
Adjusted segment profit margin | | | | | |
Specialty Chemicals and Engineered Materials | 28.2 | % | 25.9 | % | 24.6 | % | 26.4 | % | 24.1 | % |
Microcontamination Control | 36.3 | % | 31.2 | % | 35.6 | % | 36.0 | % | 27.6 | % |
Advanced Materials Handling | 21.1 | % | 22.6 | % | 17.8 | % | 19.5 | % | 22.0 | % |
1 Adjusted segment profit for Microcontamination Control for the three and six months ended July 1, 2017 excludes charges for impairment of equipment and severance of $884 and $559, respectively.
2 Adjusted segment profit for Advanced Material Handling for the three and six months ended July 1, 2017 excludes charges for impairment of equipment of $2,286.
3 Adjusted amortization of intangible assets excludes amortization expense of $11,007, $11,062, and $10,945 for the three months ended July 1, 2017, July 2, 2016, and April 1, 2017, respectively and $21,952 and $22,351 for the six months ended July 1, 2017 and July 2, 2016, respectively.
Entegris, Inc. | page 11 of 13
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 |
| July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 |
Net sales | $329,002 | $303,052 | $317,377 | $646,379 | $570,076 |
Net income | $39,991 | $32,890 | $32,514 | $72,505 | $49,102 |
Adjustments to net income: | | | | | |
Income tax expense | 11,042 | 5,513 | 9,111 | 20,153 | 10,386 |
Interest expense, net | 8,103 | 9,051 | 8,393 | 16,496 | 18,200 |
Other (income) expense, net | (46) | (1,054) | 902 | 856 | (1,729) |
GAAP - Operating income | 59,090 | 46,400 | 50,920 | 110,010 | 75,959 |
Severance | 559 | — |
| — |
| 559 | — |
|
Impairment of equipment | 3,170 | — |
| — |
| 3,170 | — |
|
Amortization of intangible assets | 11,007 | 11,062 | 10,945 | 21,952 | 22,351 |
Adjusted operating income | 73,826 | 57,462 | 61,865 | 135,691 | 98,310 |
Depreciation | 14,411 | 13,825 | 13,977 | 28,388 | 27,525 |
Adjusted EBITDA | $88,237 | $71,287 | $75,842 | $164,079 | $125,835 |
| | | | | |
Adjusted operating margin | 22.4 | % | 19.0 | % | 19.5 | % | 21.0 | % | 17.2 | % |
Adjusted EBITDA - as a % of net sales | 26.8 | % | 23.5 | % | 23.9 | % | 25.4 | % | 22.1 | % |
Entegris, Inc. | page 12 of 13
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 |
| July 1, 2017 | July 2, 2016 | April 1, 2017 | | July 1, 2017 | July 2, 2016 |
GAAP net income | $39,991 | $32,890 | $32,514 | | $72,505 | $49,102 |
Adjustments to net income: | | | | | | |
Severance | 559 |
| — |
| — |
| | 559 |
| — |
|
Impairment of equipment | 3,170 |
| — |
| — |
| | 3,170 |
| — |
|
Gain on sale of equity investment | — |
| (38 | ) | — |
| | — |
| (156 | ) |
Amortization of intangible assets | 11,007 |
| 11,062 |
| 10,945 |
| | 21,952 |
| 22,351 |
|
Tax effect of adjustments to net income and discrete items | (5,821 | ) | (3,624 | ) | (2,705 | ) | | (8,526 | ) | (7,390 | ) |
Non-GAAP net income | $48,906 | $40,290 | $40,754 | | $89,660 | $63,907 |
| | | | | | |
Diluted earnings per common share | $0.28 | $0.23 | $0.23 | | $0.51 | $0.35 |
Effect of adjustments to net income | $0.06 | $0.05 | $0.06 | | $0.12 | $0.10 |
Diluted non-GAAP earnings per common share | $0.34 | $0.28 | $0.28 | | $0.63 | $0.45 |
### END ###
Entegris, Inc. | page 13 of 13
entg2q17slides992
JULY 27, 2017
Earnings Summary
Second Quarter 2017
Exhibit 99.2
2
SAFE HARBOR
Certain information contained in this press release may constitute 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 those about 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;
market and technology trends; the development of new products and the success of their introductions; the Company's capital
allocation strategy; our ability to execute on our strategies; and other matters. These forward-looking statements are based on
current management expectations and assumptions only as of the date of this press release, are not guarantees of future
performance and involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ
materially from the results expressed in, or implied by, these forward-looking statements. 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 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, 2016, filed on February 17,
2017, and in our other periodic filings. 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.
3
2Q17 AND 1H17 HIGHLIGHTS
◦ Achieved record second quarter sales of $329.0 million, up 9% from the prior year and up 4% from 1Q17
◦ 1H17 sales of $646.4 million grew 13% from the prior year, reflecting strong growth in Asia, particularly in Korea
◦ Sales strength reflected robust demand for filtration, specialty gas, and advanced deposition materials solutions
◦ Outlook for full year FY2017 is for sales growth in excess of 10%; with expectations for continued positive
momentum for FY2018
◦ Generated record quarterly adjusted EBITDA of $88.2 million, or 26.8% of sales; Year-to-date adjusted EBITDA of
$164.1 million, was 25.4% of sales and grew 30% from the same period a year ago
◦ Generated GAAP EPS of $0.28 and non-GAAP EPS of $0.34, above the high end of our guidance
◦ For the trailing four quarters, GAAP EPS was $0.84 and non-GAAP EPS was $1.11
◦ Repaid $25 million of long-term debt, reducing net leverage ratio to 0.4 times
◦ Repurchased $4 million of stock as part of ongoing share repurchase program
◦ The acquisition of Gore’s microelectronics filtration product line is on track to meet or exceed expectations
◦ The product line will be commercialized under the TrinzikTM product name
$ in millions, except per share data 2Q17 2Q17 Guidance 1Q17 2Q16
2Q17 over
2Q16
2Q17 over
1Q17
Net Revenue $329.0 $315 to $330 $317.4 $303.1 8.5% 3.7%
Gross Margin 45.7% 44.0% 45.9%
Operating Expenses $91.2 $90 to $92 $88.7 $92.8 (1.7%) 2.8%
Operating Income $59.1 $50.9 $46.4 27.4% 16.1%
Operating Margin 18.0% 16.0% 15.3%
Tax Rate 21.6% 21.9% 14.4%
Net Income $40.0 $32 to $37 $32.5 $32.9 21.6% 23.1%
EPS $0.28 $0.22 to $0.26 $0.23 $0.23 21.7% 21.7%
4
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP)
$ in millions, except per share data 2Q17 2Q17 Guidance 1Q17 2Q16
2Q17 over
2Q16
2Q17 over
1Q17
Net Revenue $329.0 $315 to $330 $317.4 $303.1 8.5% 3.7%
Adjusted Gross Margin2 46.3% 44.0% 45.9%
Non-GAAP Operating Expenses3 $78.4 $79 to $81 $77.7 $81.7 (4.0%) 0.9%
Adjusted Operating Income $73.8 $61.9 $57.5 28.3% 19.2%
Adjusted Operating Margin 22.4% 19.5% 19.0%
Non-GAAP Tax Rate4 25.6% 22.5% 18.5%
Non-GAAP Net Income $48.9 $39 to $44 $40.8 $40.3 21.3% 19.9%
Non-GAAP EPS $0.34 $0.27 to $0.31 $0.28 $0.28 21.4% 21.4%
5
1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation.
2. Adjusted gross margin excludes certain impairment of equipment.
3. Non-GAAP Operating Expenses exclude amortization expense, impairment of equipment and severance charges.
4. Non-GAAP Tax Rate reflects the tax effect of non-GAAP adjustments and discrete tax items to GAAP taxes.
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)1
$ in millions, except per share data 1H17 1H16
1H17 over
1H16
Net Revenue $646.4 $570.1 13.4%
Gross Margin 44.8% 44.5%
Operating Expenses $179.9 $178.0 1.1%
Operating Income $110.0 $76.0 44.7%
Operating Margin 17.0% 13.3%
Tax Rate 21.7% 17.5%
Net Income $72.5 $49.1 47.7%
EPS $0.51 $0.35 45.7%
6
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) – YEAR TO DATE
$ in millions, except per share data 1H17 1H16
1H17 over
1H16
Net Revenue $646.4 $570.1 13.4%
Adjusted Gross Margin2 45.2% 44.5%
Non-GAAP Operating Expenses3 $156.2 $155.6 0.4%
Adjusted Operating Income $135.7 $98.3 38.0%
Adjusted Operating Margin 21.0% 17.2%
Non-GAAP Tax Rate4 24.2% 21.8%
Non-GAAP Net Income $89.7 $63.9 40.4%
Non-GAAP EPS $0.63 $0.45 40.0%
7
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP) – YEAR TO DATE
1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation.
2. Adjusted gross margin excludes certain impairment of equipment.
3. Non-GAAP Operating Expenses exclude amortization expense, impairment of equipment and severance charges.
4. Non-GAAP Tax Rate reflects the tax effect of non-GAAP adjustments and discrete tax items to GAAP taxes.
8
1. Represents diluted earnings per share. See Reconciliation of GAAP Net Income to Non-GAAP Earnings per Share in the appendix of this presentation.
EARNINGS PER SHARE1
$0.23
$0.28 $0.28
$0.34
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
1Q17 2Q17
EPS: 2Q17 vs. 1Q17
GAAP Non-GAAP
$0.80
$0.84
$1.05
$1.11
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
1Q17 2Q17
EPS: Trailing 4 Quarters
GAAP Non-GAAP
RESULTS BY SEGMENT1
9
1. Adjusted segment operating margin excludes amortization of intangibles and unallocated expenses.
2. Segment profit for SCEM for 3Q16 includes a charge for severance of $699K.
3. Segment profit for MC for 3Q16 includes a charge for severance of $737K. Segment profit for MC for 2Q17 includes charges for impairment of equipment and severance of $884K and $559K,
respectively.
4. Segment profit for AMH for 3Q16 includes charges for impairment of equipment and severance totaling $6,795K. Segment profit for AMH for 2Q17 includes charges for impairment of equipment of
$2,286K.
0%
10%
20%
30%
40%
$0
$20
$40
$60
$80
$100
$120
2Q16 3Q16 4Q16 1Q17 2Q17
Specialty Chemicals and
Engineered Materials
Segment2
Sales Adj. Op. margin
0%
10%
20%
30%
40%
$0
$20
$40
$60
$80
$100
$120
2Q16 3Q16 4Q16 1Q17 2Q17
Microcontamination
Control Segment3
Sales Adj. Op. margin
0%
10%
20%
30%
40%
$0
$20
$40
$60
$80
$100
$120
2Q16 3Q16 4Q16 1Q17 2Q17
Advanced Materials
Handling Segment4
Sales Adj. Op. margin
$ in millions
REVENUE BY GEOGRAPHY: STRONG GROWTH IN ASIA AND EUROPE
10
N. America
Asia
Japan
Europe
1H17 Revenue by Geography
1H17 Revenue = $646.4 million
4%
21%
-2%
13%
N. America
Asia
Japan
Europe
-10% 0% 10% 20% 30%
1H17 vs. 1H16 Growth Rate
$59.7M
$374.9M
$135.7M
$76.1M
$ in millions 2Q17 1Q17 2Q16
$ Amount % Total $ Amount % Total $ Amount % Total
Cash & Cash Equivalents $405.6 23.5% $391.2 23.1% $373.7 22.0%
Accounts Receivable, net $171.1 9.9% $176.0 10.4% $180.6 10.7%
Inventories $194.2 11.2% $188.3 11.1% $181.1 10.7%
Net PP&E $341.1 19.7% $330.9 19.5% $322.7 19.0%
Total Assets $1,727.4 $1,696.1 $1,695.5
Current Liabilities1 $251.0 14.5% $236.2 13.9% $187.1 11.0%
Long-term debt, excluding
current maturities
$435.9 25.2% $460.3 27.1% $582.2 34.3%
Total Liabilities $745.1 43.1% $751.0 44.3% $834.3 49.2%
Total Shareholders’ Equity $982.3 56.9% $945.1 55.7% $861.2 50.8%
AR - DSOs 47.5 50.6 54.4
Inventory Turns 3.7 3.8 3.6
11
1. Current Liabilities in 2Q17, 1Q17 and 2Q16 includes $100 million of current maturities of long term debt, respectively.
SUMMARY – BALANCE SHEET ITEMS
12
1. See Reconciliation of GAAP Income to Adjusted Operating Income and Adjusted EBITDA in the appendix of this presentation.
ADJUSTED EBITDA MARGIN1
23.2% 24.1%
0
50
100
150
200
250
300
TTM-1Q17 TTM-2Q17
Adjusted EBITDA TTM
Adj. EBITDA in $M Adj. EBITDA as % of Sales
$285M
$302M
23.9%
26.8%
0
10
20
30
40
50
60
70
80
90
1Q17 2Q17
Adjusted EBITDA
Adj. EBITDA in $M Adj. EBITDA as % of Sales
$76M
$88M
$ in millions 2Q17 1Q17 2Q16
Beginning Cash Balance $391.2 $406.4 $344.4
Cash from operating activities $85.2 $33.4 $61.2
Capital expenditures ($20.3) ($22.2) ($14.3)
Payments on long-term debt ($25.0) ($25.0) ($25.0)
Acquisition of business ($20.0) - -
Other investing activities - $0.2 $0.8
Other financing activities ($3.8) ($7.8) $2.3
Effect of exchange rates ($1.7) $6.1 $4.3
Ending Cash Balance $405.6 $391.2 $373.7
Free Cash Flow1 $64.9 $11.2 $46.9
Adjusted EBITDA $88.2 $75.8 $71.3
CASH FLOWS
13
1. Free cash flow equals cash from operations less capital expenditures.
OUTLOOK
14
1. Non-GAAP operating expenses exclude amortization. In 3Q17, amortization is estimated to be approximately $11 million, or $0.05 per share.
$ in millions, except per share data 3Q17 Guidance 2Q17 3Q16
Net Revenue $325 to $340 $329.0 $296.7
Operating Expenses $90 to $92 $91.2 $88.3
Net Income $36 to $43 $40.0 $21.9
EPS $0.25 to $0.30 $0.28 $0.15
$ in millions, except per share data 3Q17 Guidance 2Q17 3Q16
Net Revenue $325 to $340 $329.0 $296.7
Non-GAAP Operating Expenses1 $79 to $81 $78.4 $75.4
Non-GAAP Net Income $43 to $50 $48.9 $34.6
Non-GAAP EPS $0.30 to $0.35 $0.34 $0.24
Non-GAAP
GAAP
Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved.
15
NON-GAAP RECONCILIATION TABLE
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
16
Three months ended Six months ended
July 1, 2017 July 2, 2016 April 1, 2017 July 1, 2017 July 2, 2016
Net Sales $329,002 $303,052 $317,377 $646,379 $570,076
Gross profit-GAAP $150,303 $139,205 $139,596 $289,899 $253,911
Adjustments to gross profit:
Impairment of equipment 1,966 - - 1,966 -
Non-GAAP net income $152,269 $139,205 $139,596 $291,865 $253,911
Gross margin - as a % of net sales 45.7% 45.9% 44.0% 44.8% 44.5%
Adjusted gross margin - as a % of net sales 46.3% 45.9% 44.0% 45.2% 44.5%
$ in thousands
NON-GAAP RECONCILIATION TABLE
RECONCILIATION OF GAAP SEGMENT PROFIT TO ADJUSTED OPERATING INCOME
17
Three months ended Six months ended
Segment profit-GAAP July 1, 2017 July 2, 2016 April 1, 2017 July 1, 2017 July 2, 2016
Specialty Chemicals and Engineered Materials $34,174 $28,914 $28,140 $62,314 $51,330
Microcontamination Control 36,484 28,566 35,581 72,065 46,706
Advanced Materials Handling 19,573 22,519 18,276 37,849 41,430
Total segment profit 90,231 79,999 81,997 172,228 139,466
Amortization of intangible assets 11,007 11,062 10,945 21,952 22,351
Unallocated expenses 20,134 22,537 20,132 40,266 41,156
Total operating income $59,090 $46,400 $50,920 $110,010 $75,959
$ in thousands
Three months ended Six months ended
Adjusted segment profit July 1, 2017 July 2, 2016 April 1, 2017 July 1, 2017 July 2, 2016
Specialty Chemicals and Engineered Materials $34,174 $28,914 $28,140 $62,314 $51,330
Microcontamination Control1 37,927 28,566 35,581 73,508 46,706
Advanced Materials Handling2 21,859 22,519 18,276 40,135 41,430
Total segment profit 93,960 79,999 81,997 175,957 139,466
Amortization of intangible assets3 - - - - -
Unallocated expenses 20,134 22,537 20,132 40,266 41,156
Total operating income $73,826 $57,462 $61,865 $135,691 $98,310
1 Adjusted segment profit for Microcontamination Control for the three and six months ended July 1, 2017 excludes charges for impairment of equipment and severance of $884K and $559K, respectively.
2 Adjusted segment profit for Advanced Material Handling for the three and six months ended July 1, 2017 excludes charges for impairment of equipment of $2,286K.
3 Adjusted amortization of intangible assets excludes amortization expense of $11,007, $11,062, and $10,945 for the three months ended July 1, 2017, July 2, 2016, and April 1, 2017, respectively and
$21,952 and $22,351 for the six months ended July 1, 2017 and July 2, 2016, respectively.
NON-GAAP RECONCILIATION TABLE
RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA
18
Three months ended Six months ended
July 1, 2017 July 2, 2016 April 1, 2017 July 1, 2017 July 2, 2016
Net sales $329,002 $303,052 $317,377 $646,379 $570,076
Net income $39,991 $32,890 $32,514 $72,505 $49,102
Adjustments to net income:
Income tax expense 11,042 5,513 9,111 20,153 10,386
Interest expense, net 8,103 9,051 8,393 16,496 18,200
Other (income) expense, net (46) (1,054) 902 856 (1,729)
GAAP - Operating income 59,090 46,400 50,920 110,010 75,959
Severance 559 - - 559 -
Impairment of equipment 3,170 - - 3,170 -
Amortization of intangible assets 11,007 11,062 10,945 21,952 22,351
Adjusted operating income 73,826 57,462 61,865 135,691 98,310
Depreciation 14,411 13,825 13,977 28,388 27,525
Adjusted EBITDA $88,237 $71,287 $75,842 $164,079 $125,835
Adjusted operating margin 22.4% 19.0% 19.5% 21.0% 17.2%
Adjusted EBITDA - as a % of net sales 26.8% 23.5% 23.9% 25.4% 22.1%
$ in thousands
NON-GAAP RECONCILIATION TABLE
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS PER SHARE
19
Three months ended Six months ended
July 1, 2017 July 2, 2016 April 1, 2017 July 1, 2017 July 2, 2016
GAAP net income $39,991 $32,890 $32,514 $72,505 $49,102
Adjustments to net income:
Severance 559 - - 559 -
Impairment of equipment 3,170 - - 3,170 -
Gain on sale of equity investment - (38) - - (156)
Amortization of intangible assets 11,007 11,062 10,945 21,952 22,351
Tax effect of adjustments to net income and discrete items (5,821) (3,624) (2,705) (8,526) (7,390)
Non-GAAP net income $48,906 $40,290 $40,754 $89,660 $63,907
Diluted earnings per common share $0.28 $0.23 $0.23 $0.51 $0.35
Effect of adjustments to net income $0.06 $0.05 $0.06 $0.12 $0.10
Diluted non-GAAP earnings per common share $0.34 $0.28 $0.28 $0.63 $0.45
$ in thousands, except per share data
20
GAAP SEGMENT TREND DATA
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217
Sales
SCEM 99,897$ 110,569$ 105,285$ 103,127$ 101,107$ 111,782$ 104,494$ 110,945$ 114,435$ 121,174$
MC 75,947 79,293 78,485 82,092 77,619 91,584 94,738 98,717 100,055 104,407
AMH 87,529 90,847 86,483 81,567 88,298 99,686 97,460 98,840 102,887 103,421
Total Sales 263,373$ 280,709$ 270,253$ 266,786$ 267,024$ 303,052$ 296,692$ 308,502$ 317,377$ 329,002$
Segment Profit
SCEM 22,010$ 30,826$ 23,316$ 24,218$ 22,416$ 28,914$ 18,811$ 25,919$ 28,140$ 34,174$
MC 19,874 20,605 21,926 20,671 18,140 28,566 31,617 31,719 35,581 36,484
AMH 19,679 20,860 15,786 10,094 18,911 22,519 15,378 16,644 18,276 19,573
Total Segment Profit 61,563$ 72,291$ 61,028$ 54,983$ 59,467$ 79,999$ 65,806$ 74,282$ 81,997$ 90,231$
Segment Profit Margin
SCEM 22.0% 27.9% 22.1% 23.5% 22.2% 25.9% 18.0% 23.4% 24.6% 28.2%
MC 26.2% 26.0% 27.9% 25.2% 23.4% 31.2% 33.4% 32.1% 35.6% 34.9%
AMH 22.5% 23.0% 18.3% 12.4% 21.4% 22.6% 15.8% 16.8% 17.8% 18.9%
$ in thousands
NON-GAAP SEGMENT TREND DATA
21
1 Adjusted segment profit for SCEM for Q316 excludes charges for severance of $699K.
2 Adjusted segment profit for MC for Q316 excludes charges for severance of $737K. Adjusted segment profit for MC for 2Q17 excludes charges for impairment of equipment and severance of $884K
and $559K, respectively.
3 Adjusted segment profit for AMH for Q316 excludes charges for impairment of equipment and severance related to organizational realignment of $5,826K and $969K, respectively. Adjusted
segment profit for AMH for 2Q17 excludes charges for impairment of equipment of $2,286K.
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217
Sales
SCEM 99,897$ 110,569$ 105,285$ 103,127$ 101,107$ 111,782$ 104,494$ 110,945$ 114,435$ 121,174$
MC 75,947 79,293 78,485 82,092 77,619 91,584 94,738 98,717 100,055 104,407
AMH 87,529 90,847 86,483 81,567 88,298 99,686 97,460 98,840 102,887 103,421
Total Sales 263,373$ 280,709$ 270,253$ 266,786$ 267,024$ 303,052$ 296,692$ 308,502$ 317,377$ 329,002$
Adjusted Segment Profit
SCEM1 22,010$ 30,826$ 23,316$ 24,218$ 22,416$ 28,914$ 19,510$ 25,919$ 28,140$ 34,174$
MC2 19,874 20,605 21,926 20,671 18,140 28,566 32,354 31,719 35,581 37,927
AMH3 19,679 20,860 15,786 10,094 18,911 22,519 22,173 16,644 18,276 21,859
Total Adj. Segment Profit 61,563$ 72,291$ 61,028$ 54,983$ 59,467$ 79,999$ 74,037$ 74,282$ 81,997$ 93,960$
Adjusted Segment Profit Margin
SCEM 22.0% 27.9% 22.1% 23.5% 22.2% 25.9% 18.7% 23.4% 24.6% 28.2%
MC 26.2% 26.0% 27.9% 25.2% 23.4% 31.2% 34.2% 32.1% 35.6% 36.3%
AMH 22.5% 23.0% 18.3% 12.4% 21.4% 22.6% 22.8% 16.8% 17.8% 21.1%
$ in thousands