Oct 26, 2011

Entegris Reports Results for Third Quarter; Share Buyback Authorization Announced

Sales of $173 million In Line With Industry Trends;
Non-GAAP EPS of $0.17 and Adjusted Operating Margin of 16.5 Percent Within Target Model;
Cash Position Reaches $227 Million

BILLERICA, Mass., Oct. 26, 2011 (GLOBE NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the Company's third quarter ended October 1, 2011.

The Company recorded third-quarter sales of $173.0 million, a decline of 3 percent from the prior year, and 17 percent sequentially. Net income was $22.0 million, or $0.16 per diluted share. These results included amortization of intangible assets of $2.5 million. 

Non-GAAP earnings per share of $0.17 in the third quarter of 2011 compared to non-GAAP earnings per share of $0.18 in the third quarter a year ago and $0.24 per diluted share in the second quarter of 2011. A reconciliation of GAAP to non-GAAP earnings per share is contained in this press release.

For the first nine months of fiscal 2011, sales were $585.3 million, up 16 percent from the first nine months of 2010. Non-GAAP earnings per diluted share for the first nine months of 2011 were $0.64 per share versus $0.48 per share for the same period a year ago.

Gideon Argov, president and chief executive officer, said: "Lower semiconductor production and capital investment across much of the industry led to softer demand throughout the quarter. Decreased fab utilization and wafer starts at many of our semiconductor customers contributed to sequentially lower sales of unit-driven products, including liquid filters, and a lull in fab construction projects impacted our capital-driven sales for the quarter. Even so, we continued to gain traction at the advanced nodes and in new markets, including solar.   

"On an operating basis, we flexed our costs to achieve an adjusted operating margin of 16.5 percent, which is in line with our target model. We generated operating cash flow of $49.6 million in the third quarter, which boosted our cash position to $227 million. 

"While near-term order trends continue to be soft, we are confident that our long-term strategy and our investments will position us to capitalize on opportunities when the industry rebounds. Reflecting this confidence, we are announcing today a $50 million share repurchase program."

For the fiscal fourth quarter ending December 31, 2011, the Company expects sales to range from approximately $155 million to $165 million. Based on the Company's target model, non-GAAP EPS at this revenue level would range from $0.11 to $0.15.

Share Repurchase Authorization Announced

Entegris announced that the Company's Board of Directors has authorized the repurchase of up to $50 million of its common stock in open market transactions in accordance with a repurchase plan under SEC Rule 10b5-1.

Third-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the third quarter on Wednesday, October 26, 2011, at 5:30 p.m. Eastern Time.  Participants should dial 1-719-325-2277 or 1-888-504-7958, referencing confirmation code 1923045. Participants are asked to dial in 8 to 13 minutes prior to the start of the call. A replay of the call will be available starting at 8:30 p.m. ET on October 26 until December 9, 2011. The replay can be accessed by using passcode 1923045 after dialing 1-719-457-0820 or 1-888-203-1112.

The call can also be accessed live and on-demand from the Entegris website. Point your web browser to http://investor.entegris.com/events.cfm and follow the link to the webcast. The on-demand playback will be available for six weeks after the conclusion of the teleconference.

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
 October 1,
2011
October 2,
2010
July 2, 2011
Net sales $173,014 $178,230 $209,198
Cost of sales 98,186 98,374 114,055
Gross profit 74,828 79,856 95,143
Selling, general and administrative expenses 33,533 36,478 39,126
Engineering, research and development expenses 11,957 11,381 12,462
Amortization of intangible assets 2,505 2,823 2,569
Operating income  26,833 29,174 40,986
Interest (income) expense, net (38) 342 535
Other expense (income), net 315 1,283 (1,530)
Income before income taxes and equity in affiliates 26,556 27,549 41,981
Income tax expense  4,582 5,000 9,695
Equity in net earnings of affiliates (14) (217) (236)
Net income  $21,988 $22,766 $32,522
Net income attributable to noncontrolling interest -- 348 --
Net income attributable to Entegris, Inc. $21,988 $22,418 $32,522
       
Amounts attributable to Entegris, Inc.:      
Basic net income per common share: $0.16 $0.17 $0.24
Diluted net income per common share: $0.16 $0.17 $0.24
       
Weighted average shares outstanding:      
Basic 134,995 131,903 134,535
Diluted 136,305 133,071 136,113
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
     
 Nine months ended
 October 1,
2011
October 2,
2010
Net sales $585,337 $506,316
Cost of sales 327,021 276,182
Gross profit 258,316 230,134
Selling, general and administrative expenses 108,449 108,852
Engineering, research and development expenses 36,951 32,937
Amortization of intangible assets 7,763 10,459
Operating income  105,153 77,886
Interest expense, net 650 3,210
Other (income) expense, net (1,643) 1,701
Income before income taxes 106,146 72,975
Income tax expense  22,550 15,202
Equity in net earnings of affiliates (489) (485)
Net income  84,085 58,258
Net income attributable to noncontrolling interest 400 905
Net income attributable to Entegris, Inc. $83,685 $57,353
     
Amounts attributable to Entegris, Inc.:    
Basic net income per common share: $0.62 $0.44
Diluted net income per common share: $0.62 $0.43
     
Weighted average shares outstanding:    
Basic 134,410 131,475
Diluted 135,954 132,908
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
     
 October 1, 2011December 31, 2010
ASSETS    
Cash and cash equivalents  $227,037 $133,954
Short-term investments 2,046 --
Accounts receivable, net 111,150 124,732
Inventories 102,950 101,043
Deferred tax assets, deferred tax charges and refundable income taxes 11,252 11,484
Other current assets and assets held for sale 13,307 15,878
 Total current assets 467,742 387,091
     
Property, plant and equipment, net 130,206 126,725
     
Intangible assets 58,848 65,087
Deferred tax assets — non-current 10,164 10,855
Other assets 9,350 11,627
 Total assets $676,310 $601,385
     
LIABILITIES AND EQUITY    
Accounts payable $28,668 $34,631
Accrued liabilities 48,960 59,503
Income tax payable and deferred tax liabilities 13,082 13,500
 Total current liabilities 90,710 107,634
     
Other liabilities 24,392 29,738
Equity 561,208 464,013
 Total liabilities and equity $676,310 $601,385
 
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
         
 Three Months EndedNine Months Ended
 October 1,
2011
October 2,
2010
October 1,
2011
October 2,
2010
Operating activities:        
Net income  $21,988 $22,766 $84,085 $58,258
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation  6,763 6,755 20,292 20,645
Amortization 2,505 2,823 7,763 10,459
Stock-based compensation expense 1,822 1,752 5,784 5,434
Other (250) 1,305 (550) 1,859
Changes in operating assets and liabilities:        
Trade accounts and notes receivable 25,811 (1,786) 15,684 (27,760)
Inventories (1,815) (4,635) (4,204) (11,229)
Accounts payable and accrued liabilities (7,264) 14,707 (14,838) 32,351
Income taxes payable and refundable income taxes (2,868) 1,982 (851) 8,430
Other 2,906 (567) (395) 2,467
Net cash provided by operating activities 49,598 45,102 112,770 100,914
Investing activities:        
Acquisition of property and equipment (9,563) (4,502) (24,146) (12,159)
Other 95 480 (604) 4,492
Net cash used in investing activities (9,468) (4,022) (24,750) (7,667)
Financing activities:        
Payments on short-term borrowings and long-term debt  -- (22,811) -- (252,954)
Proceeds from short-term and long-term borrowings -- 2,291 -- 186,649
Issuance of common stock 323 6 5,656 1,663
Other 72 43 (1,085) (85)
Net cash provided by (used in) financing activities 395 (20,471) 4,571 (64,727)
Effect of exchange rate changes on cash  (2,933) 2,892 492 1,594
Increase in cash and cash equivalents 37,592 23,501 93,083 30,114
Cash and cash equivalents at beginning of period 189,445 75,313 133,954 68,700
Cash and cash equivalents at end of period $227,037 $98,814 $227,037 $98,814
 
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
           
 Three Months EndedNine Months Ended
Net salesOctober 1,
2011
October 2,
2010
July 2,
2011
October 1,
2011
October 2,
2010
Contamination Control Solutions $110,015 $113,350 $136,637 $378,896 $317,752
Microenvironments 42,738 47,383 51,114 142,034 136,713
Specialty Materials 20,261 17,497 21,447 64,407 51,851
 Total net sales $173,014 $178,230 $209,198 $585,337 $506,316
           
           
 Three Months EndedNine Months Ended
Segment profit October 1,
2011
October 2,
2010
July 2,
2011
October 1,
2011
October 2,
2010
Contamination Control Solutions $29,522 $31,434 $44,948 $114,230 $88,282
Microenvironments 6,790 11,110 8,589 23,758 31,327
Specialty Materials 4,675 2,903 4,264 13,915 8,233
Total segment profit  40,987 45,447 57,801 151,903 127,842
Amortization of intangibles  (2,505) (2,823) (2,569) (7,763) (10,459)
Unallocated expenses (11,649) (13,450) (14,246) (38,987) (39,497)
 Total operating income  $26,833 $29,174 $40,986 $105,153 $77,886
 
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
           
 Three Months EndedNine Months Ended
 October 1,
2011
October 2,
2010
July 2, 2011October 1,
2011
October 2,
2010
Net sales $173,014 $178,230 $209,198 $585,337 $506,316
Net income attributable to Entegris, Inc. $21,988 $22,418 $32,522 $83,685 $57,353
Adjustments to net income attributable to Entegris, Inc.          
Net income attributable to noncontrolling interest -- 348 -- 400 905
Equity in net earnings of affiliates (14) (217) (236) (489) (485)
Income tax expense 4,582 5,000 9,695 22,550 15,202
Other expense (income), net 315 1,283 (1,530) (1,643) 1,701
Interest (income) expense, net (38) 342 535 650 3,210
GAAP — Operating income  26,833 29,174 40,986 105,153 77,886
Amortization of intangible assets 2,505 2,823 2,569 7,763 10,459
Gain associated with pension curtailment (726) -- -- (726) --
Adjusted operating income  28,612 31,997 43,555 112,190 88,345
Depreciation 6,763 6,755 6,710 20,292 20,645
Adjusted EBITDA $35,375 $38,752 $50,265 $132,482 $108,990
           
Adjusted operating margin 16.5% 18.0% 20.8% 19.2% 17.4%
Adjusted EBITDA — as a % of net sales 20.4% 21.7% 24.0% 22.6% 21.5%
 
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands)
(Unaudited)
           
 Three Months EndedNine Months Ended
 October 1,
2011
October 2,
2010
July 2, 2011October 1,
2011
October 2,
2010
GAAP net income attributable to Entegris, Inc. $21,988 $22,418 $32,522 $83,685 $57,353
Adjustments to net income attributable to Entegris, Inc.:          
Amortization of intangible assets 2,505 2,823 2,569 7,763 10,459
Accelerated write-off of debt costs -- -- 282 282 890
Gain on sale of equity investment -- (500) (1,523) (1,523) (892)
Gain associated with pension curtailment (726) -- -- (726) --
Tax effect of adjustments to net income attributable to Entegris, Inc. (458) (854) (1,045) (2,492) (3,849)
Non-GAAP net income attributable to Entegris, Inc. $23,309 $23,887 $32,805 $86,989 $63,961
           
Diluted earnings per common share attributable to Entegris, Inc.: $0.16 $0.17 $0.24 $0.62 $0.43
Effect of adjustments to net income attributable to Entegris, Inc. $0.01 $0.01 $0.00 $0.02 $0.05
Diluted non-GAAP earnings per common share attributable to Entegris, Inc.: $0.17 $0.18 $0.24 $0.64 $0.48
CONTACT: Steve Cantor

         VP of Corporate Relations

         Tel. 978-436-6750

         irelations@entegris.com