Apr 21, 2011

Entegris Reports Record Sales of $203 Million in First Quarter on 12 Percent Sequential Growth

Non-GAAP EPS of $0.23 in First Quarter; Operating Margin Approaches 20 Percent

BILLERICA, Mass., April 21, 2011 (GLOBE NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the Company's first quarter ended April 2, 2011.

The Company recorded first-quarter sales of $203.1 million, an increase of 27 percent over the prior year, and 12 percent sequentially. Net income was $29.2 million, or $0.22 per share. These results included amortization of intangible assets of $2.7 million. Non-GAAP earnings per share of $0.23 in the first quarter of 2011 increased 53 percent from $0.15 in the first quarter a year ago, and were even with $0.23 in the fourth quarter of 2010, which benefited from a more favorable quarterly tax rate. A reconciliation table of GAAP to non-GAAP earnings per share is contained in this press release.

Gideon Argov, president and chief executive officer, said: "We were very pleased with our results for the first quarter, which reflected the success of our growth strategies in our core semiconductor and adjacent markets. The quarter marked our eighth consecutive quarter of growth, as sales for many of our product groups reached record quarterly highs. New fab investment and semiconductor production levels remained high, which contributed to robust sales of our filtration and fluid handling products for advanced semiconductor processes. Sales of coatings and graphite products were also strong. On an operating basis, we achieved an adjusted operating margin approaching 20 percent of sales."

For the fiscal second quarter ending July 2, 2011, the Company expects sales to range from approximately $200 million to $210 million. Based on the Company's target model, non-GAAP EPS at this revenue level would range from $0.22 to $0.25.

First-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the first quarter on Thursday, April 21, 2011, at 10:00 a.m. Eastern Time.  Participants should dial 1-913-312-0956 or toll-free 1-888-820-9418, referencing confirmation code 1206002. 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 21 at 2:00 p.m. (ET) until June 4, 2011. The replay can be accessed by using passcode 1206002 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," "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, 2010, 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
 April 2, 2011April 3, 2010December 31,
2010
Net sales $203,125 $160,511 $182,100
Cost of sales 114,780 87,360 101,591
Gross profit 88,345 73,151 80,509
Selling, general and administrative expenses 35,790 35,782 38,199
Engineering, research and development expenses 12,532 10,820 10,997
Amortization of intangible assets 2,689 4,272 2,772
Operating income  37,334 22,277 28,541
Interest expense, net 153 1,206 306
Other income, net (428) (293) (271)
Income before income taxes and equity in affiliates 37,609 21,364 28,506
Income tax expense (benefit) 8,273 4,809 (196)
Equity in net (earnings) loss of affiliates (239) (191) 1,838
Net income  29,575 16,746 26,864
Net (income) loss attributable to noncontrolling interest (400) (196) 139
Net income attributable to Entegris, Inc. $29,175 $16,550 $27,003
       
Amounts attributable to Entegris, Inc.:      
Basic net income per common share: $0.22 $0.13 $0.20
Diluted net income per common share: $0.22 $0.12 $0.20
       
Weighted average shares outstanding:      
Basic 133,699 130,954 132,314
Diluted 135,444 132,783 133,971
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
 
 April 2, 2011December 31, 2010
ASSETS    
Cash and cash equivalents $142,578 $133,954
Accounts receivable, net 135,843 124,732
Inventories 100,447 101,043
Deferred tax assets, deferred tax charges and refundable
 income taxes
11,640 11,484
Other current assets and assets held for sale 15,863 15,878
Total current assets 406,371 387,091
     
Property, plant and equipment, net 126,231 126,725
     
Intangible assets 62,540 65,087
Deferred tax assets — non-current 10,569 10,855
Other assets 11,799 11,627
Total assets $617,510 $601,385
     
LIABILITIES AND EQUITY    
Accounts payable $ 39,969 $ 34,631
Accrued liabilities 38,211 59,503
Income tax payable and deferred tax liabilities 10,130 13,500
Total current liabilities 88,310 107,634
     
Other liabilities 29,495 29,738
Equity 499,705 464,013
Total liabilities and equity $617,510 $601,385
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
 Three Months Ended
 April 2, 2011April 3, 2010
Operating activities:    
Net income  $29,575 $16,746
Adjustments to reconcile net income to net cash
provided by operating activities:
   
Depreciation 6,819 6,724
Amortization 2,689 4,272
Stock-based compensation expense 1,922 1,794
Other 303 (2,336)
Changes in operating assets and liabilities:    
Trade accounts and notes receivable (10,130) (12,612)
Inventories 724 (5,035)
Accounts payable and accrued liabilities (15,585) 13,076
Income taxes payable and refundable income taxes (3,559) 5,358
Other (1,631) 36
Net cash provided by operating activities 11,127 28,023
Investing activities:    
Acquisition of property and equipment (6,744) (3,603)
Other (510) 26
Net cash used in investing activities (7,254) (3,577)
Financing activities:    
Payments on short-term borrowings and long-term debt -- (133,715)
Proceeds from short-term and long-term borrowings -- 113,288
Issuance of common stock 2,927 782
Other 114 --
Net cash provided by (used in) financing activities 3,041 (19,645)
Effect of exchange rate changes on cash 1,710 (248)
Increase in cash and cash equivalents 8,624 4,553
Cash and cash equivalents at beginning of period 133,954 68,700
Cash and cash equivalents at end of period $142,578 $ 73,253
 
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
 
 
 Three Months Ended
Net salesApril 2, 2011April 3, 2010December 31,
2010
Contamination Control Solutions $132,244 $100,742 $118,106
Microenvironments 48,182 41,927 45,772
Specialty Materials 22,699 17,842 18,222
 Total net sales $203,125 $160,511 $182,100
 
 
 Three Months Ended
Segment profitApril 2, 2011April 3, 2010December 31,
2010
Contamination Control Solutions $39,760 $28,234 $34,609
Microenvironments 8,379 8,521 7,602
Specialty Materials 4,976 2,801 2,847
Total segment profit 53,115 39,556 45,058
Amortization of intangibles (2,689) (4,272) (2,772)
Unallocated expenses (13,092) (13,007) (13,745)
 Total operating income $37,334 $22,277 $28,541
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
 
 
 Three Months Ended
 April 2, 2011April 3, 2010December 31,
2010
Net sales $203,125 $160,511 $182,100
Net income attributable to Entegris, Inc. $29,175 $16,550 $27,003
Adjustments to net income attributable to Entegris, Inc.      
Net income (loss) attributable to noncontrolling interest 400 196 (139)
Equity in net (earnings) loss of affiliates (239) (191) 1,838
Income tax expense (benefit) 8,273 4,809 (196)
Other income, net (428) (293) (271)
Interest expense, net 153 1,206 306
GAAP — Operating income 37,334 22,277 28,541
 Amortization of intangible  assets 2,689 4,272 2,772
Adjusted operating income  40,023 26,549 31,313
 Depreciation 6,819 6,724 7,322
Adjusted EBITDA $46,842 $33,273 $38,635
       
Adjusted operating margin 19.7% 16.5% 17.2%
Adjusted EBITDA — as a % of net sales 23.1% 20.7% 21.2%
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands)
(Unaudited)
 
 
 Three Months Ended
 April 2, 2011April 3, 2010December 31,
2010
GAAP net income attributable to Entegris, Inc. $29,175 $16,550 $27,003
Adjustments to net income attributable to Entegris, Inc.:      
Amortization of intangible assets 2,689 4,272 2,772
Impairment of equity investment -- -- 2,164
Tax effect of adjustments to net income attributable to Entegris, Inc. (990) (1,567) (1,022)
Non-GAAP net income attributable to Entegris, Inc. $30,874 $19,255 $30,917
       
Diluted earnings per common share attributable to Entegris, Inc.: $0.22 $0.12 $0.20
Effect of adjustments to net income attributable to Entegris, Inc. $0.01 $0.02 0.03
Diluted non-GAAP earnings per common share attributable to Entegris, Inc.: $0.23 $0.15 $0.23
CONTACT: Steve Cantor

         VP of Corporate Relations

         Tel. 978-436-6750

         irelations@entegris.com