Oct 27, 2009

Entegris Reports Third Quarter Results

Sales Increase 34 Percent Sequentially; Adjusted EBITDA Reaches $14.5 Million

BILLERICA, Mass., Oct. 27, 2009 (GLOBE NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the fiscal third quarter ended September 26, 2009.

 The Company recorded third-quarter sales of $110.7 million and a net loss of $7.6 million, or $0.07 per share. These results included amortization of intangible assets of $4.7 million and restructuring charges of $2.4 million. The Company reported sales of $82.6 million in the second quarter ended June 27, 2009 and sales of $145.8 million in the third quarter a year ago.

For the first nine months of 2009, sales were $252.3 million, which compared to $442.0 million for the same period a year ago.

Gideon Argov, president and chief executive officer, said: "We saw continued positive trends through the third quarter in both the unit-driven and capital-driven sides of our business. Higher fab utilization at many of our semiconductor customers and capital spending in the industry to implement technology process transitions led to higher demand across our product lines. Business trends in our other markets such as data storage, flat panel display, and LED, were also positive.

"Even with third-quarter sales well below historical levels, we achieved an operating margin of 6 percent of sales, excluding the impact of amortization and restructuring expenses, and $14.5 million of adjusted EBITDA for the quarter. This reflected our improved cost structure, as well as our ability to effectively flex our manufacturing operations to meet the higher demand," Argov said.

At the end of the third quarter, total bank debt was $91.6 million. This represented a decrease of $60.1 million from the $151.7 million in second quarter, largely as the result of a secondary equity offering in September, the proceeds of which were used exclusively to pay down debt. The Company's third-quarter ending cash balance was $78.4 million.

Segment Information (table of results contained at the end of this release)

Contamination Control Solutions sales increased 38 percent sequentially from the second quarter of 2009, driven by demand for filtration products, chemical containers, and liquid dispense pumps.

Microenvironments product sales increased 24 percent sequentially from the second quarter of 2009. The growth reflected demand for shippers needed to support increased production in the semiconductor and data storage industries, as well as demand for wafer transport products.

Specialty Materials sales increased 42 percent sequentially from the second quarter of 2009. The increase was due to higher demand for semiconductor-related graphite and silicon carbide products and a partial recovery of demand for certain industrial products.

Third-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the third quarter on Tuesday, October 27, 2009, at 10:00 a.m. Eastern Time. Participants should dial 1-866-416-5346 (for domestic callers) or 1-913-312-0376 (for callers outside the U.S.). A replay of the call can be accessed at 1-719-457-0820 using passcode 8433843. A webcast of the call can also be accessed from the investor relations section of Entegris' website at www.entegris.com.

About Entegris

Entegris is a leading provider of a wide range of products for purifying, protecting and transporting critical materials used in processing and manufacturing in the semiconductor 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.

The Entegris, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3700

Non-GAAP Information

Adjusted EBITDA margin and non-GAAP operating margin, together with the related measures of Adjusted EBITDA and non-GAAP operating income, 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 reflect operating performance. Management believes the non-GAAP measures help indicate 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 presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP. The calculations of Adjusted EBITDA margin and non-GAAP operating margin 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 in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as well as the matters described under the headings "Risks Relating to our Business and Industry," "Risks Related to our Borrowings", "Manufacturing Risks," "International Risks," and "Risks Related to Investing in Our Securities" in our current report on Form 8-K, dated September 2, 2009, together with the 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. and Subsidiaries             Condensed Consolidated Statements of Operations                  (In thousands, except per share data)                               (Unaudited)                                                 Three months ended                                        -------------------------------                                         Sept. 26,  Sept. 27,  June 27,                                           2009      2008       2009                                        -------------------------------  Net sales                             $ 110,706  $ 145,789  $  82,576  Cost of sales                            65,929     90,391     58,846                                        -------------------------------      Gross profit                         44,777     55,398     23,730  Selling, general and   administrative expenses                 29,175     35,373     25,685  Engineering, research and   development expenses                     8,575     10,284      7,843  Amortization of intangible assets         4,723      4,858      4,931  Impairment of goodwill                       --    379,810         --  Restructuring charges                     2,368      3,332      5,452                                        -------------------------------      Operating loss                          (64)  (378,259)   (20,181)  Interest expense, net                     2,681        614      2,577  Other expense, net                        4,114        947      1,537                                        -------------------------------      Loss before income taxes             (6,859)  (379,820)   (24,295)  Income tax expense (benefit)                623     12,897     (2,252)  Equity in net loss of affiliates            132        195        449                                        -------------------------------      Loss from continuing operations      (7,614)  (392,912)   (22,492)  Loss from discontinued operations,   net of taxes                                --        (90)        --                                        -------------------------------      Net loss                             (7,614)  (393,002)   (22,492)  Net loss attributable to the   noncontrolling  interest                     6         --         --                                        -------------------------------      Net loss attributable       to the Company                   $  (7,608) $(393,002) $ (22,492)                                        ===============================   Basic loss per common share:      Continuing operations             ($   0.07) $   (3.51) ($   0.20)      Net loss per common share         ($   0.07) $   (3.52) ($   0.20)  Diluted loss per common share:      Continuing operations             ($   0.07) $   (3.51) ($   0.20)      Net loss per common share         ($   0.07) $   (3.52) ($   0.20)  Weighted average shares outstanding:      Basic                               115,023    111,796    112,694      Diluted                             115,023    111,796    112,694 
                    Entegris, Inc. and Subsidiaries             Condensed Consolidated Statements of Operations                  (In thousands, except per share data)                               (Unaudited)                                                     Nine months ended                                                   --------------------                                                   Sept. 26,  Sept. 27,                                                      2009       2008                                                   --------------------  Net sales                                        $ 252,320  $ 441,963  Cost of sales                                      178,795    262,690                                                   --------------------      Gross profit                                    73,525    179,273  Selling, general and administrative expenses        84,581    115,800  Engineering, research and development expenses      25,322     31,147  Amortization of intangible assets                   14,635     14,497  Impairment of goodwill                                  --    379,810  Restructuring charges                               12,454      3,332                                                   --------------------      Operating loss                                 (63,467)  (365,313)  Interest expense, net                                7,105        682  Other expense, net                                     429      1,823                                                   --------------------      Loss before income taxes                       (71,001)  (367,818)  Income tax (benefit) expense                        (4,226)    16,312  Equity in net loss of affiliates                     1,076         49                                                   --------------------      Loss from continuing operations                (67,851)  (384,179)  Loss from discontinued operations, net of taxes         --     (1,025)                                                   --------------------      Net loss                                       (67,851)  (385,204)  Net loss attributable to the   noncontrolling interest                                 6         --                                                   --------------------      Net loss attributable to the Company         $ (67,845) $(385,204)                                                   ====================   Basic loss per common share:      Continuing operations                        $   (0.60) $   (3.40)      Discontinued operations                             --  $   (0.01)      Net loss per common share                    $   (0.60) $   (3.41)  Diluted loss per common share:      Continuing operations                        $   (0.60) $   (3.40)      Discontinued operations                             --  $   (0.01)      Net loss per common share                    $   (0.60) $   (3.41)  Weighted average shares outstanding:      Basic                                          113,355    112,942      Diluted                                        113,355    112,942 
                    Entegris, Inc. and Subsidiaries                  Condensed Consolidated Balance Sheets                             (In thousands)                               (Unaudited)                                                      Sept. 26, Dec. 31,                                                       2009      2008                                                     --------  --------  ASSETS  Cash and cash equivalents                          $ 78,376  $115,033  Accounts receivable                                  80,062    70,535  Inventories                                          84,116   102,189  Deferred tax assets, deferred tax charges   and refundable income taxes                         11,001    14,661  Other current assets and assets held for sale         6,615    10,710                                                     --------  --------      Total current assets                            260,170   313,128   Property, plant and equipment, net                  146,726   159,738   Intangible assets                                    82,788    93,139  Deferred tax assets - non-current                    12,126    13,315  Other assets                                         16,219    18,504                                                     --------  --------      Total assets                                   $518,029  $597,824                                                     ========  ========   LIABILITIES AND SHAREHOLDERS' EQUITY  Current maturities of long-term debt                 11,464  $ 13,166  Short-term borrowings                                 7,001        --  Accounts payable                                     27,044    21,782  Accrued liabilities                                  29,475    36,971  Income tax payable and deferred tax liabilities       5,694     7,437                                                     --------  --------      Total current liabilities                        80,678    79,356   Long-term debt, less current maturities              73,135   150,516  Other liabilities                                    26,172    31,782  Shareholders' equity                                338,044   336,170                                                     --------  --------      Total liabilities and shareholders' equity     $518,029  $597,824                                                     ========  ======== 
                     Entegris, Inc. and Subsidiaries             Condensed Consolidated Statements of Cash Flows                             (In thousands)                               (Unaudited)                               Three months ended    Nine months ended  ----------------------------------------------------------------------                            Sept. 26,   Sept. 27,  Sept. 26,  Sept. 27,                               2009       2008        2009      2008  ----------------------------------------------------------------------  Operating activities:  Net loss                $  (7,614)  $(393,002)  $ (67,851)  $(385,204)  Adjustments to   reconcile net loss to   net cash used in   operating activities:  Loss from discontinued   operations                    --          90          --       1,025  Depreciation                7,456       6,476      23,628      18,776  Amortization                4,723       4,858      14,635      14,497  Stock-based   compensation expense       2,120       1,335       6,299       5,558  Charge for fair value   mark-up of acquired   inventory                     51       5,718       4,116       5,718  Impairment of goodwill         --     379,810          --     379,810  Other                       1,662      13,076       3,659      17,527  Changes in operating   assets and liabilities,   excluding effects   of acquisitions:  Trade accounts   receivable   and notes receivable     (17,271)      6,039      (7,486)     14,169  Inventories                  (735)       (539)     10,715        (884)  Accounts payable and   accrued liabilities        6,211      (5,632)      1,783      (9,723)  Income taxes payable   and refundable income   taxes                     (1,803)    (10,008)      2,037     (22,230)  Other                       4,406       3,524       1,340       2,687  ---------------------------------------------------------------------  Net cash (used in)   provided by operating   activities                  (794)     11,745      (7,125)     41,726  ---------------------------------------------------------------------  Investing activities:  Acquisition of property   and equipment             (1,122)     (7,399)    (11,521)    (19,194)  Acquisition of   businesses, net of   cash acquired                493    (161,973)        493    (161,973)  Purchase of equity   investment                    --          --          --     (10,982)  Other                       2,315         110       2,550       1,029  ---------------------------------------------------------------------  Net cash provided by   (used in) investing   activities                 1,686    (169,262)     (8,478)   (191,120)  ---------------------------------------------------------------------  Financing activities:  Payments on short-term   borrowings and   long-term debt          (221,164)    (29,108)   (528,116)    (48,406)  Proceeds from   short-term and   long-term borrowings     156,212     133,000     452,722     133,000  Repurchase and   retirement of common   stock                         --      (4,492)         --     (28,895)  Proceeds from stock   offering                  56,687          --      56,687          --  Issuance of common stock      490         902       1,061       3,088  Payments for debt   issuance costs              (138)         --      (3,638)       (622)  ---------------------------------------------------------------------  Net cash (used in)   provided by financing   activities                (7,913)    100,302     (21,284)     58,165  ---------------------------------------------------------------------  Net cash (used in)   provided by   discontinued   operations                    --          (2)         --         392  ---------------------------------------------------------------------  Effect of exchange rate   changes on cash            1,331      (1,230)        230       4,143  ---------------------------------------------------------------------  Decrease in cash and   cash equivalents          (5,690)    (58,447)    (36,657)    (86,694)  Cash and cash   equivalents   at beginning of period    84,066     132,408     115,033     160,655  ---------------------------------------------------------------------  Cash and cash   equivalents at end   of period              $  78,376   $  73,961   $  78,376   $  73,961  ===================================================================== 
                    Entegris, Inc. and Subsidiaries                         Segment Information                           (In thousands)                             (Unaudited)                                         Three Months Ended                               -------------------------------------  Net sales                    Sept. 26,     Sept. 27,      June 27,                                 2009          2008           2009  ------------------------------------------------------------------  Contamination Control   Solutions                   $  65,649    $  85,806      $  47,541  Microenvironments               32,445       47,630         26,176  Specialty Materials             12,612       12,353          8,859                               ---------    ---------      ---------       Total net sales         $ 110,706    $ 145,789      $  82,576                               =========    =========      =========                                             Three Months Ended                              --------------------------------------  Segment profit (loss)        Sept. 26,     Sept. 27,      June 27,                                  2009         2008           2009  ------------------------------------------------------------------  Contamination Control   Solutions                   $  12,261    $  20,911      $   3,181  Microenvironments                5,186        6,855           (155)  Specialty Materials              1,369        3,832         (1,047)                               ---------    ---------      ---------  Total segment profit         $  18,816    $  31,598      $   1,979  Amortization of intangibles,   impairment of   goodwill, and   restructuring charges          (7,091)    (388,000)       (10,383)  Unallocated expenses           (11,789)     (21,857)       (11,777)                               ---------    ---------      ---------      Total operating loss     $     (64)   $(378,259)     $ (20,181)                               =========    =========      =========                          Entegris, Inc. and Subsidiaries          Reconciliation of GAAP to Non-GAAP Operating Income (Loss)                           and Adjusted EBITDA                             (In thousands)                               (Unaudited)                                          Three Months Ended                               -------------------------------------                               Sept. 26,     Sept. 27,      June 27,                                 2009          2008          2009  ------------------------------------------------------------------  Net sales                    $ 110,706    $ 145,789      $  82,576  ------------------------------------------------------------------  GAAP - Operating loss        $     (64)   $(378,259)     $ (20,181)   Restructuring costs             2,368        3,332          5,452   Impairment of goodwill             --      379,810             --   Amortization of    intangible assets              4,723        4,858          4,931                               ---------    ---------      ---------  Non-GAAP operating income   (loss)                          7,027        9,741         (9,798)    Depreciation                   7,456        6,476          7,903                               ---------    ---------      ---------  Adjusted EBITDA              $  14,483    $  16,217      $  (1,895)                               =========    =========      =========   Non-GAAP operating margin          6.3%         6.7%         (11.9%)  Adjusted EBITDA - as a %   of net sales                     13.1%        11.1%          (2.3%)  ------------------------------------------------------------------ 

CONTACT: Entegris, Inc. Steve Cantor , VP of Corporate Relations 978-436-6750 irelations@entegris.com