Feb 1, 2011

Entegris' Fourth-Quarter Results Cap Record Year

Seventh Consecutive Quarter of Sales Growth;
Non-GAAP EPS Reach $0.23 in Fourth Quarter;
Accelerating Momentum into 2011

BILLERICA, Mass., Feb. 1, 2011 (GLOBE NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the Company's fourth quarter and fiscal year ended December 31, 2010.

The Company recorded fourth-quarter sales of $182.1 million, an increase of 24 percent over the prior year, and 2 percent sequentially. Net income was $27.0 million, or $0.20 per share. These results included amortization of intangible assets of $2.8 million. Non-GAAP earnings per share of $0.23 in the fourth quarter of 2010 compared to $0.13 in the fourth quarter a year ago and $0.18 in the third quarter of 2010. A reconciliation table of GAAP to non-GAAP earnings (loss) per share is contained in this press release.

Fiscal 2010 sales were $688.4 million, representing a 73% increase compared to sales of $398.6 million in 2009. Net income per share of $0.63 compared to a net loss of $0.49 per share a year earlier. On a non-GAAP basis, net income per share in fiscal 2010 was $0.71 compared with a net loss per share of $0.27 for the year earlier.

Gideon Argov, president and chief executive officer, said: "The fourth quarter capped a great year in which we achieved record-level sales, operating profit, and operating cash flow. We demonstrated the operating leverage in our business model, as we achieved substantially higher profits than in prior cycles. We generated $40 million in cash from operations in the fourth quarter and $141 million for the year, which enabled us to end the year with $134 million in cash and no debt.

"Business trends in the fourth quarter were positive. Relatively high fab utilization rates and stable wafer starts at our semiconductor customers contributed to continued growth in our unit-driven sales and a record quarter for our liquid filtration products. Ongoing investments in a number of new fabs drove fourth-quarter sales of our fluid handling components and systems to all-time highs, and should drive increasing orders in 2011 and beyond for a wide range of our next-generation contamination control and wafer handling products. Our sales to other high-technology markets, including solar and LED, also continue to be very promising," Argov said. 

"Moving into 2011, we anticipate accelerating momentum as we continue to execute our growth strategies in a favorable market environment, with increased capital spending plans in the industry and continuing strong global demand for semiconductor devices," Argov said.

For the fiscal first quarter ending April 2, 2011, the Company expects sales to range from approximately $185 million to $190 million. Based on the Company's target model, non-GAAP EPS at this revenue level is expected to range from $0.18 to $0.20.

Fourth-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the fourth quarter on Tuesday, February 1, 2011, at 10:00 a.m. Eastern Time.  Participants should dial 1-913-312-0671 or toll-free 1-877-208-2391, referencing confirmation code 7435836. 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 February 1 at 2:00 p.m. (ET) until March 17, 2011. The replay can be accessed by using passcode 7435836 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.

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

The Company's 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 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, Adjusted Operating Income, and non-GAAP EPS 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 Related to our Borrowings", "Manufacturing Risks," "International Risks," and "Risks Related to Owning Our Securities" in Item 1A of our Annual Report on Form 10–K for the fiscal year ended December 31, 2009, 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. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 Three Months Ended
 December 31,
2010
October 2,
2010
December 31,
2009
Net sales $182,100 $178,230 $146,324
Cost of sales 101,591 98,374 81,600
Charge for fair value mark up of acquired inventory -- -- 437
Gross profit 80,509 79,856 64,287
Selling, general and administrative expenses 38,199 36,478 32,420
Engineering, research and development expenses 10,997 11,381 9,717
Amortization of intangible assets 2,772 2,823 4,602
Restructuring charges -- -- 3,009
Operating income  28,541 29,174 14,539
Interest expense, net 306 342 2,110
Other (income) expense, net (271) 1,283 1,316
Income before income taxes 28,506 27,549 11,113
Income tax (benefit) expense (196) 5,000 1,231
Equity in net loss (earnings) of affiliates 1,838 (217) (210)
Net income  26,864 22,766 10,092
Net loss (income) attributable to noncontrolling interest 139 (348) 32
Net income attributable to Entegris, Inc. 27,003 $22,418 $10,124
       
Amounts attributable to Entegris, Inc.:      
Basic net income per common share: $0.20 $0.17 $0.08
Diluted net income per common share: $0.20 $0.17 $0.08
       
Weighted average shares outstanding:      
Basic 132,314 131,903 129,953
Diluted 133,971 133,071 131,887


Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 Twelve Months Ended
 December 31,
2010
December 31,
2009
Net sales $688,416 398,644
Cost of sales 377,773 256,279
Charge for fair value mark up of acquired inventory -- 4,553
Gross profit 310,643 137,812
Selling, general and administrative expenses 147,051 117,001
Engineering, research and development expenses 43,934 35,039
Amortization of intangible assets 13,231 19,237
Restructuring charges -- 15,463
Operating income (loss)  106,427 (48,928)
Interest expense, net 3,516 9,215
Other expense, net 1,430 1,745
Income (loss) before income taxes 101,481 (59,888)
Income tax expense (benefit) 15,006 (2,996)
Equity in net loss of affiliates 1,353 867
Net income (loss) 85,122 (57,759)
Net (income) loss attributable to noncontrolling interest (766) 38
Net income (loss) attributable to Entegris, Inc. $84,356 $(57,721)
     
Amounts attributable to Entegris, Inc.:    
Basic net income (loss) per common share: $0.64 $(0.49)
Diluted net income (loss) per common share: $0.63 $(0.49)
     
Weighted average shares outstanding:    
Basic 131,685 117,321
Diluted 133,174 117,321
 
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
 December 31, 2010December 31, 2009
ASSETS    
Cash and cash equivalents $133,954 $ 68,700
Accounts receivable, net 124,732 91,122
Inventories 101,043 83,233
Deferred tax assets, deferred tax charges and refundable income taxes 11,484 11,085
Other current assets and assets held for sale 15,878 13,318
Total current assets 387,091 267,458
     
Property, plant and equipment, net 126,725 135,431
     
Intangible assets 65,087 78,470
Deferred tax assets – non-current 10,855 9,670
Other assets 11,627 13,643
Total assets $601,385 $504,672
     
LIABILITIES AND EQUITY   
Current maturities of long-term debt $  -- $ 11,257
Short-term borrowings -- 8,039
Accounts payable 34,631 23,553
Accrued liabilities 59,503 29,832
Income tax payable and deferred tax liabilities 13,500 1,229
Total current liabilities 107,634 73,910
     
Long-term debt, less current maturities -- 52,492
Other liabilities 29,738 28,613
Equity 464,013 349,657
Total liabilities and equity $601,385 $504,672
 
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 Three Months EndedTwelve Months Ended
 December 31, 2010December 31, 2009December 31, 2010December 31, 2009
Operating activities:        
Net income (loss)  $26,864 $10,092 $85,122 $(57,759)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
Depreciation 7,322 7,262 27,967 30,890
Amortization 2,772 4,602 13,231 19,237
Stock-based compensation expense 2,154 1,803 7,588 8,102
Charge for fair value mark-up of acquired inventory -- 437 -- 4,553
Other (2,136) 263 (277) 5,147
Changes in operating assets and liabilities        
Trade accounts and notes receivable 971 (11,717) (26,789) (19,203)
Inventories (3,056) (36) (14,285) 10,679
Accounts payable and accrued liabilities 2,509 (3,362) 34,860 (1,579)
Income taxes payable and refundable income taxes 4,813 1,802 13,243 3,839
Other (2,229) 172 238 287
Net cash provided by operating activities 39,984 11,318 140,898 4,193
Investing activities:        
Acquisition of property and equipment (4,635) (1,641) (16,794) (13,162)
Other 317 276 4,809 3,319
Net cash used in investing activities (4,318) (1,365) (11,985) (9,843)
Financing activities:        
Payments on short-term borrowings and long-term debt (6,203) (271,529) (259,157) (799,645)
Proceeds from short-term and long-term borrowings -- 251,953 186,649 704,675
Proceeds from stock offering, net of offering costs -- (49) -- 56,638
Issuance of common stock 5,136 219 6,799 1,280
Payments for debt issuance costs -- -- (149) (3,638)
Other 85 -- 149 --
Net cash used in financing activities (982) (19,406) (65,709) (40,690)
Effect of exchange rate changes on cash 456 (223) 2,050 7
Increase (decrease) in cash and cash equivalents 35,140 (9,676) 65,254 (46,333)
Cash and cash equivalents at beginning of period 98,814 78,376 68,700 115,033
Cash and cash equivalents at end of period $133,954 $68,700 $133,954 $68,700
 
 
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
 
 Three Months EndedTwelve Months Ended
Net salesDecember 31, 2010October 2, 2010December 31, 2009December 31, 2010December 31, 2009
Contamination Control Solutions $118,106 $113,350 $93,687 $435,858 $241,163
Microenvironments 45,772 47,383 38,162 182,471 111,465
Specialty Materials 18,222 17,497 14,475 70,087 46,016
Total net sales 182,100 $178,230 146,324 $688,416 $398,644
      
 Three Months EndedTwelve Months Ended
Segment profitDecember 31, 2010October 2, 2010December 31, 2009December 31, 2010December 31, 2009
Contamination Control Solutions $34,609 $31,434 $23,127 $122,891 $29,118
Microenvironments 8,098 11,664 8,898 40,907 3,485
Specialty Materials 2,351 2,349 1,985 9,103 2,925
Total segment profit 45,058 45,447 34,010 172,901 35,528
Amortization of intangibles, charge for fair value mark-up of acquired inventory and restructuring charges (2,772) (2,823) (8,048) (13,231) (39,253)
Unallocated expenses (13,745) (13,450) (11,423) (53,243) (45,203)
Total operating income (loss) $28,541 $29,174 $14,539 $106,427 $(48,928)
 
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income (Loss) and Adjusted EBITDA
(In thousands)
(Unaudited)
 
 Three Months EndedTwelve Months Ended
 December 31,
2010
October 2,
2010
December 31,
2009
December 31,
2010
December 31,
2009
Net sales $182,100 $178,230 $146,324 $688,416 $398,644
Net income (loss) attributable to Entegris, Inc. $27,003 $22,418 $10,124 $84,356 $(57,721)
Adjustments to net income (loss) attributable to Entegris, Inc.          
Net (loss) income attributable to noncontrolling interest (139) 348 (32) 766 (38)
Equity in net loss (earnings) of affiliates 1,838 (217) (210) 1,353 867
Income tax expense (benefit) (196) 5,000 1,231 15,006 (2,996)
Other expense, net (271) 1,283 1,316 1,430 1,745
Interest expense, net 306 342 2,110 3,516 9,215
GAAP – Operating income (loss) 28,541 29,174 14,539 106,427 (48,928)
Restructuring charges -- -- 3,009 -- 15,463
Charge for fair value mark-up of acquired inventory -- -- 437 -- 4,553
Amortization of intangible  assets 2,772 2,823 4,602 13,231 19,237
Adjusted operating income (loss)  31,313 31,997 22,587 119,658 (9,675)
Depreciation 7,322 6,755 7,262 27,967 30,890
Adjusted EBITDA 38,635 $38,752 29,849 147,625 21,215
           
Adjusted operating margin 17.2% 18.0% 15.4% 17.4% (2.4)%
Adjusted EBITDA – as a % of net sales 21.2% 21.7% 20.4% 21.4% 5.3%
 
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings (Loss) per Share
(In thousands)
(Unaudited)
 
 Three Months EndedTwelve Months Ended
 December 31, 2010October 2, 2010December 31, 2009December 31, 2010December 31, 2009
GAAP net income (loss) attributable to Entegris, Inc. $27,003 $22,418 $10,124 $84,356 $(57,721)
Adjustments to net income (loss) attributable to Entegris, Inc.:          
Amortization of intangible assets 2,772 2,823 4,602 13,231 19,237
Charge for fair value mark-up of acquired inventory -- -- 437 -- 4,553
Accelerated write-off of debt issuance costs -- -- 500 890 843
Gain on sale of equity investment -- (500) -- (892) --
Impairment of equity investment 2,164 -- 1,000 2,164 1,000
Tax effect of adjustments to net income (loss) attributable to Entegris, Inc. (1,022) (854) (130) (4,871) (161)
Non-GAAP net income (loss) attributable to Entegris, Inc. $30,917 $23,887 $16,533 $94,878 $(32,249)
           
Diluted earnings (loss) per common share attributable to Entegris, Inc.: $0.20 $0.17 $0.08 $0.63 $(0.49)
Effect of adjustments to net income (loss) attributable to Entegris, Inc. 0.03 0.01 0.05 $0.08 0.22
Diluted non-GAAP earnings (loss) per common share attributable to Entegris, Inc.: $0.23 $0.18 $0.13 $0.71 $(0.27)
CONTACT: Steve Cantor

         VP of Corporate Relations

         Tel. 978-436-6750

         irelations@entegris.com