Jul 19, 2012

Entegris Reports Second-Quarter Sales of $188 Million

Sales Grow 7 Percent Sequentially; Non-GAAP EPS of $0.16

BILLERICA, Mass., July 19, 2012 (GLOBE NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the Company's second quarter ended June 30, 2012.

The Company recorded second-quarter sales of $188.2 million, an increase of 7 percent sequentially, and a 10 percent decline from the prior year second quarter. Second-quarter operating margin was 16.8 percent, with adjusted operating margin of 18.1 percent, excluding amortization of intangible assets of $2.4 million. Net income for the second quarter was $21.7 million, or $0.16 per share. Non-GAAP earnings per share of $0.16 in the second quarter of 2012 compared to $0.14 in the first quarter of 2012 and $0.24 in the second quarter of 2011. A reconciliation table of GAAP to non-GAAP earnings per share and operating margin is contained in this press release.

For the first half of fiscal 2012, sales were $363.6 million, down 12 percent from the first half of 2011. Non-GAAP earnings per diluted share for the first six months of 2012 were $0.30 per share versus $0.47 per share for the same period a year ago.

Gideon Argov, president and chief executive officer, said: "We performed well in the second quarter, as demand was strong for our advanced contamination control products used to support the ramp of the semiconductor industry's leading edge technologies. Financially, we grew our adjusted operating margin to 18.1 percent and generated $43 million of cash from operations.

While the near-term is somewhat unclear, we believe the long-term trends are favorable. Our previously announced investments to extend our leadership in contamination control and critical substrate handling position us to support next-generation semiconductor manufacturing technologies such as extreme ultra-violet (EUV) and 450 millimeter (mn) wafers. We are very encouraged by recent industry announcements aimed at accelerating the development of these technologies."

For the fiscal third quarter ending September 30, 2012, the Company expects sales to be flat to down 5 percent sequentially, and EPS to range between $0.13 and $0.15. On a non-GAAP basis, EPS is expected to range from $0.14 to $0.16, which reflects net income adjusted for amortization expense.

Second-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the second quarter on Thursday, July 19, 2012, at 10:00 a.m. Eastern Time. Participants should dial 1-913-312-1500 or toll-free 1-888-609-5689, referencing confirmation code 2247309. 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 19 at 2:00 p.m. (ET) until September 1, 2012. The replay can be accessed by using passcode 2247309 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 and credits 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, Adjusted Operating Income, together with related measures thereof, 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, 2011, 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
 June 30, 2012July 2, 2011March 31, 2012
Net sales  $ 188,233  $ 209,198  $ 175,403
Cost of sales  105,487  114,055  99,159
Gross profit  82,746  95,143  76,244
Selling, general and administrative expenses  35,989  39,126  35,048
Engineering, research and development expenses  12,726  12,462  11,989
Amortization of intangible assets  2,420  2,569  2,450
Operating income   31,611  40,986  26,757
Interest expense (income), net  30  535  (2)
Other income, net  (671)  (1,530)  (162)
Income before income taxes and equity in affiliates  32,252  41,981  26,921
Income tax expense   10,579  9,695  9,065
Equity in net income of affiliates  --   (236)  (3)
Net income   $ 21,673  $ 32,522  $ 17,859
       
       
Basic net income per common share  $ 0.16  $ 0.24  $ 0.13
Diluted net income per common share  $ 0.16  $ 0.24  $ 0.13
       
Weighted average shares outstanding:      
Basic  137,303  134,535  136,603
Diluted  138,196  136,113  138,046
       
       
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 Six months ended
 June 30, 2012July 2, 2011
Net sales  $ 363,636  $ 412,323
Cost of sales  204,646  228,835
Gross profit  158,990  183,488
Selling, general and administrative expenses  71,037  74,916
Engineering, research and development expenses  24,715  24,994
Amortization of intangible assets  4,870  5,258
Operating income   58,368  78,320
Interest expense, net  28  688
Other income, net  (833)  (1,958)
Income before income taxes  59,173  79,590
Income tax expense   19,644  17,968
Equity in net income of affiliates  (3)  (475)
Net income   39,532  62,097
Net income attributable to noncontrolling interest  --   400
Net income attributable to Entegris, Inc.  $ 39,532  $ 61,697
     
Amounts attributable to Entegris, Inc.:    
Basic net income per common share  $ 0.29  $ 0.46
Diluted net income per common share  $ 0.29  $ 0.45
     
Weighted average shares outstanding:    
Basic  136,953  134,117
Diluted  138,121  135,778
     
     
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
 June 30, 2012December 31, 2011
ASSETS    
Cash and cash equivalents   $ 286,865 $ 273,593
Accounts receivable, net  115,519  107,223
Inventories  102,905  93,937
Deferred tax assets, deferred tax charges and refundable income taxes  16,389  15,805
Other current assets and assets held for sale  13,298  12,441
Total current assets  534,976  502,999
     
Property, plant and equipment, net  147,437  130,554
     
Intangible assets  53,483  56,453
Deferred tax assets — non-current  24,964  25,119
Other assets  7,867  9,538
Total assets  $ 768,727  $ 724,663
     
LIABILITIES AND EQUITY    
Accounts payable  $ 35,204  $ 30,609
Accrued liabilities  42,902  47,841
Income tax payable and deferred tax liabilities  16,312  14,144
Total current liabilities  94,418  92,594
     
Other liabilities  22,353  23,831
Shareholders' equity  651,956  608,238
Total liabilities and shareholders' equity  $ 768,727  $ 724,663
     
     
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
 June 30, 2012July 2, 2011June 30, 2012July 2, 2011
Operating activities:        
Net income   $ 21,673  $ 32,522  $ 39,532  $ 62,097
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation   7,026  6,710  13,513  13,529
Amortization  2,420  2,569  4,870  5,258
Stock-based compensation expense  2,171  2,040  3,934  3,962
Other  (785)  (603)  1,376  (300)
Changes in operating assets and liabilities:        
Trade accounts and notes receivable  2,476  3  (10,335)  (10,127)
Inventories  (3,491)  (3,113)  (10,997)  (2,389)
Accounts payable and accrued liabilities  1,023  8,011  744  (7,574)
Income taxes payable and refundable income taxes  7,357  5,576  2,679  2,017
Other  3,262  (1,670)  (1,810)  (3,301)
Net cash provided by operating activities  43,132  52,045  43,506  63,172
Investing activities:        
Acquisition of property and equipment  (19,512)  (7,839)  (30,117)  (14,583)
Other  (2,781)  (189)  (2,778)  (699)
Net cash used in investing activities  (22,293)  (8,028)  (32,895)  (15,282)
Financing activities:        
Issuance of common stock  858  2,406  4,194  5,333
Other  110  (1,271)  400  (1,157)
Net cash provided by financing activities  968  1,135  4,594  4,176
Effect of exchange rate changes on cash   (1,873)  1,715  (1,933)  3,425
Increase in cash and cash equivalents  19,934  46,867  13,272  55,491
Cash and cash equivalents at beginning of period  266,931  142,578  273,593  133,954
Cash and cash equivalents at end of period  $ 286,865  $ 189,445  $ 286,865  $ 189,445
         
         
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
           
 Three Months EndedSix Months Ended
Net salesJune 30,
2012
July 2,
2011
March 31,
2012
June 30,
2012
July 2,
2011
Contamination Control Solutions  $ 123,144  $ 136,637  $ 115,552  $ 238,696  $ 268,881
Microenvironments  44,565  51,114  40,705  85,270  99,296
Specialty Materials  20,524  21,447  19,146  39,670  44,146
Total net sales  $ 188,233  $ 209,198  $ 175,403  $ 363,636  $ 412,323
 
 
  Three Months Ended Six Months Ended
Segment profit June 30,
2012
July 2,
2011
March 31,
2012
June 30,
2012
July 2,
2011
Contamination Control Solutions  $ 34,683  $ 44,948  $ 32,069  $ 66,752  $ 84,708
Microenvironments  8,523  8,589  5,528  14,051  16,968
Specialty Materials  4,404  4,264  4,668  9,072  9,240
Total segment profit   47,610  57,801  42,265  89,875  110,916
Amortization of intangibles   (2,420)  (2,569)  (2,450)  (4,870)  (5,258)
Unallocated expenses  (13,579)  (14,246)  (13,058)  (26,637)  (27,338)
Total operating income   $ 31,611  $ 40,986  $ 26,757  $ 58,368  $ 78,320
           
           
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
 June 30,
2012
July 2,
2011
March 31,
2012
June 30,
2012
July 2,
2011
Net sales  $ 188,233  $ 209,198  $ 175,403  $ 363,636  $ 412,323
Net income attributable to Entegris, Inc.:  $ 21,673  $ 32,522  $ 17,859  $ 39,532  $ 61,697
Adjustments to net income attributable to Entegris, Inc.          
Net income attributable to noncontrolling interest  --   --   --   --   400
Equity in net income of affiliates  --   (236)  (3)  (3)  (475)
Income tax expense   10,579  9,695  9,065  19,644  17,968
Other income, net  (671)  (1,530)  (162)  (833)  (1,958)
Interest expense (income), net  30  535  (2)  28  688
GAAP — Operating income   31,611  40,986  26,757  58,368  78,320
Amortization of intangible assets  2,420  2,569  2,450  4,870  5,258
Adjusted operating income   34,031  43,555  29,207  63,238  83,578
Depreciation  7,026  6,710  6,487  13,513  13,529
Adjusted EBITDA  $ 41,057  $ 50,265  $ 35,694  $ 76,751  $ 97,107
           
Adjusted operating margin 18.1% 20.8% 16.7% 17.4% 20.3%
Adjusted EBITDA — as a % of net sales 21.8% 24.0% 20.3% 21.1% 23.6%
           
           
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands)
(Unaudited)
 
 Three Months EndedSix Months Ended
 June 30,
2012
July 2,
2011
March 31,
2012
June 30,
2012
July 2,
2011
GAAP net income attributable to Entegris, Inc.  $ 21,673  $ 32,522  $ 17,859  $ 39,532  $ 61,697
Adjustments to net income attributable to Entegris, Inc.:          
Amortization of intangible assets  2,420  2,569  2,450  4,870  5,258
Accelerated write-off of debt issuance costs   --   282  --   --   282
Gain associated with equity investments  (1,522)  (1,523)  --   (1,522)  (1,523)
Tax effect of adjustments to net income attributable to Entegris, Inc.  (616)  (1,045)  (885)  (1,501)  (2,035)
Non-GAAP net income attributable to Entegris, Inc.  $ 21,955  $ 32,805  $ 19,424  $ 41,379  $ 63,679
           
Diluted earnings per common share attributable to Entegris, Inc. $ 0.16 $ 0.24 $ 0.13 $ 0.29 $ 0.45
Effect of adjustments to net income attributable to Entegris, Inc.  $ 0.00  $ 0.00 $ 0.01 $ 0.01 $ 0.01
Diluted non-GAAP earnings per common share attributable to Entegris, Inc. $ 0.16 $ 0.24 $ 0.14 $ 0.30 $ 0.47
CONTACT: Steven Cantor

         VP of Corporate Relations

         T +1 978 436 6750

         irelations@entegris.com