Jul 21, 2011

Entegris' Sales and Earnings Grow in Second Quarter

Non-GAAP EPS of $0.24
Record Sales of $209 million and Adjusted Operating Margin of 20.8 percent
Cash Position Approaching $200 million

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

The Company recorded second-quarter sales of $209.2 million, an increase of 25 percent over the prior year, and 3 percent sequentially. Net income was $32.5 million, or $0.24 per diluted share. These results included amortization of intangible assets of $2.6 million.

Non-GAAP earnings per share of $0.24 in the second quarter of 2011 compared to non-GAAP earnings per share of $0.16 in the second quarter a year ago and $0.23 per diluted share in the first quarter of 2011. A reconciliation table of GAAP to non-GAAP earnings per share is contained in this press release.

For the first half of fiscal 2011, sales were $412.3 million, up 26 percent from the first half of 2010. Non-GAAP earnings per diluted share for the first six months of 2011 were $0.47 per share versus $0.30 per share for the same period a year ago.

Gideon Argov, president and chief executive officer, said: "We continue to execute well, achieving a record quarter for sales, profits and cash flow.  Sales of our unit-driven products including wafer shippers and liquid filters grew 6 percent sequentially. On an operating basis, we achieved an adjusted operating margin of nearly 21 percent of sales, a record high for the company, due in part to improved gross margin. We also generated record cash from operations of $52 million and ended the second quarter with cash and short-term investments of $191 million.

Despite signs of softening in the semiconductor industry, we are very encouraged by the long-term prospects for our new contamination control, substrate handling, and specialty materials solutions for next-generation manufacturing processes. In addition, we are confident that our operating model positions us to deliver attractive operating performance throughout the cycle."

For the fiscal third quarter ending September 3, 2011, the Company expects sales to range from approximately $180 million to $190 million. Based on the Company's target model, non-GAAP EPS at this revenue level would range from $0.18 to $0.21.

Second-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the second quarter on Thursday, July 21, 2011, at 10:00 a.m. Eastern Time.  Participants should dial 1-719-325-2336 or toll-free 1-888-857-6930, referencing confirmation code 9818372. 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 July 21 at 1:00 p.m. (ET) until September 3, 2011. The replay can be accessed by using passcode 9818372 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
 July 2, 2011July 3, 2010April 2, 2011
Net sales $209,198 $167,575 $203,125
Cost of sales 114,055 90,448 114,780
Gross profit 95,143 77,127 88,345
Selling, general and administrative expenses 39,126 36,592 35,790
Engineering, research and development expenses 12,462 10,736 12,532
Amortization of intangible assets 2,569 3,364 2,689
Operating income  40,986 26,435 37,334
Interest expense, net 535 1,662 153
Other (income) expense, net (1,530) 711 (428)
Income before income taxes and equity in affiliates 41,981 24,062 37,609
Income tax expense  9,695 5,393 8,273
Equity in net earnings of affiliates (236) (77) (239)
Net income  32,522 18,746 29,575
Net income attributable to noncontrolling interest -- 361 400
Net income attributable to Entegris, Inc. $32,522 $18,385 $29,175
       
Amounts attributable to Entegris, Inc.:      
Basic net income per common share: $0.24 $0.14 $0.22
Diluted net income per common share: $0.24 $0.14 $0.22
       
Weighted average shares outstanding:      
Basic 134,535 131,568 133,699
Diluted 136,113 132,870 135,444
 
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 Six months ended
 July 2, 2011July 3, 2010
Net sales $412,323 $328,086
Cost of sales 228,835 177,808
Gross profit 183,488 150,278
Selling, general and administrative expenses 74,916 72,374
Engineering, research and development expenses 24,994 21,556
Amortization of intangible assets 5,258 7,636
Operating income  78,320 48,712
Interest expense, net 688 2,868
Other (income) expense, net (1,958) 418
Income before income taxes 79,590 45,426
Income tax expense  17,968 10,202
Equity in net earnings of affiliates (475) (268)
Net income 62,097 35,492
Net income attributable to noncontrolling interest 400 557
Net income attributable to Entegris, Inc. $61,697 $34,935
     
Amounts attributable to Entegris, Inc.:    
Basic net income per common share: $0.46 $0.27
Diluted net income per common share: $0.45 $0.26
     
Weighted average shares outstanding:    
Basic 134,117 131,261
Diluted 135,778 132,827
 
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
 July 2, 2011December 31, 2010
ASSETS    
Cash and cash equivalents $189,445 $133,954
Short-term investments 2,044 --
Accounts receivable, net 138,385 124,732
Inventories 104,090 101,043
Deferred tax assets, deferred tax charges and refundable income taxes 14,569 11,484
Other current assets and assets held for sale 12,565 15,878
Total current assets 461,098 387,091
     
Property, plant and equipment, net 129,288 126,725
     
Intangible assets 61,801 65,087
Deferred tax assets — non-current 10,935 10,855
Other assets 9,144 11,627
Total assets $672,266 $601,385
     
LIABILITIES AND EQUITY   
Accounts payable $39,040 $ 34,631
Accrued liabilities 46,035 59,503
Income tax payable and deferred tax liabilities 18,555 13,500
Total current liabilities 103,630 107,634
     
Other liabilities 29,121 29,738
Equity 539,515 464,013
Total liabilities and equity $672,266 $601,385
 
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
 July 2, 2011July 3, 2010July 2, 2011July 3, 2010
Operating activities:        
Net income  $32,522 $18,746 $62,097 $35,492
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation 6,710 7,166 13,529 13,890
Amortization 2,569 3,364 5,258 7,636
Stock-based compensation expense 2,040 1,888 3,962 3,682
Other (603) 2,890 (300) 554
Changes in operating assets and liabilities:        
Trade accounts and notes receivable 3 (13,362) (10,127) (25,974)
Inventories (3,113) (1,559) (2,389) (6,594)
Accounts payable and accrued liabilities 8,011 4,568 (7,574) 17,644
Income taxes payable and refundable income taxes 5,576 1,090 2,017 6,448
Other (1,670) 2,998 (3,301) 3,034
Net cash provided by operating activities 52,045 27,789 63,172 55,812
Investing activities:        
Acquisition of property and equipment (7,839) (4,054) (14,583) (7,657)
Other (189) 3,986 (699) 4,012
Net cash used in investing activities (8,028) (68) (15,282) (3,645)
Financing activities:        
Payments on short-term borrowings and long-term debt -- (96,428) -- (230,143)
Proceeds from short-term and long-term borrowings -- 71,070 -- 184,358
Issuance of common stock 2,406 875 5,333 1,657
Other (1,271) (128) (1,157) (128)
Net cash provided by (used in) financing activities 1,135 (24,611) 4,176 (44,256)
Effect of exchange rate changes on cash 1,715 (1,050) 3,425 (1,298)
Increase in cash and cash equivalents 46,867 2,060 55,491 6,613
Cash and cash equivalents at beginning of period 142,578 73,253 133,954 68,700
Cash and cash equivalents at end of period $189,445 $75,313 $189,445 $75,313
 
 
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
Net salesJuly 2,
2011
July 3,
2010
April 2, 2
011
July 2,
2011
July 3,
2010
Contamination Control Solutions $136,637 $103,660  $132,244 $268,881 $204,403
Microenvironments 51,114 47,403 48,182 99,296 89,330
Specialty Materials 21,447 16,512 22,699 44,146 34,353
Total net sales $209,198 $167,575 $203,125 $412,323 $328,086
     
     
 Three Months EndedSix Months Ended
Segment profitJuly 2,
2011
July 3,
2010
April 2,
2011
July 2,
2011
July 3,
2010
Contamination Control Solutions $44,948 $28,614 $39,760 $84,708 $56,848
Microenvironments 8,589 11,697 8,379 16,968 20,218
Specialty Materials 4,264 2,529 4,976 9,240 5,330
Total segment profit 57,801 42,840 53,115 110,916 82,396
Amortization of intangibles (2,569) (3,364) (2,689) (5,258) (7,636)
Unallocated expenses (14,246) (13,041) (13,092) (27,338) (26,048)
Total operating income $40,986 $26,435 $37,334 $78,320 $48,712
 
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
 July 2, 2011July 3, 2010April 2, 2011July 2, 2011July 3, 2010
Net sales $209,198 $167,575 $203,125 $412,323 $328,086
Net income attributable to Entegris, Inc. $32,522 $18,385 $29,175 $61,697 $34,935
Adjustments to net income attributable to Entegris, Inc.          
Net income attributable to noncontrolling interest -- 361 400 400 557
Equity in net earnings of affiliates (236) (77) (239) (475) (268)
Income tax expense 9,695 5,393 8,273 17,968 10,202
Other (income) expense, net (1,530) 711 (428) (1,958) 418
Interest expense, net 535 1,662 153 688 2,868
GAAP — Operating income 40,986 26,435 37,334 78,320 48,712
Amortization of intangible  assets 2,569 3,364 2,689 5,258 7,636
Adjusted operating income  43,555 29,799 40,023 83,578 56,348
Depreciation 6,710 7,166 6,819 13,529 13,890
Adjusted EBITDA $50,265 $36,965 $46,842 $97,107 $70,238
           
Adjusted operating margin 20.8% 17.8% 19.7% 20.3% 17.2%
Adjusted EBITDA — as a % of net sales 24.0% 22.1% 23.1% 23.6% 21.4%
 
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
 July 2, 2011July 3, 2010April 2, 2011July 2, 2011July 3, 2010
GAAP net income attributable to Entegris, Inc. $32,522 $18,385 $29,175 $61,697 $34,935
Adjustments to net income attributable to Entegris, Inc.:          
Amortization of intangible assets 2,569 3,364 2,689 5,258 7,636
Accelerated write-off of debt issuance costs 282 890 -- 282 890
Gain on sale of equity investment (1,523) (392) -- (1,523) (392)
Tax effect of adjustments to net income attributable to Entegris, Inc. (1,045) (1,428) (990) (2,035) (2,995)
Non-GAAP net income attributable to Entegris, Inc. $32,805 $20,819 $30,874 $63,679 $40,074
           
Diluted earnings per common share attributable to Entegris, Inc.: $0.24 $0.14 $0.22 $0.45 $0.26
Effect of adjustments to net income attributable to Entegris, Inc. $0.00 $0.02 $0.01 $0.01 $0.04
Diluted non-GAAP earnings per common share attributable to Entegris, Inc.: $0.24 $0.16 $0.23 $0.47 $0.30


 

CONTACT: Steve Cantor

         VP of Corporate Relations

         Tel. 978-436-6750

         irelations@entegris.com