News Release Details
Entegris Announces Preliminary Fourth Quarter and Full Year 2018 Results
- Fourth-quarter revenue of
$402 million grew 15 percent from prior year, and grew 1 percent from Q318 - Fiscal 2018 revenue of
$1.6 billion increased 15 percent - Fourth-quarter GAAP EPS of
$0.56 to $0.58 ; Non-GAAP EPS of$0.46 to$0.48 - Fiscal 2018 GAAP EPS of
$1.68 to $1.70 ; Non-GAAP EPS of$1.88 to$1.90
The Company expects to report sales of
The Company expects to report sales of
Agreement to Combine with
In a separate
joint press release issued today,
ABOUT
Non-GAAP Information
The Company’s condensed consolidated
financial statements are prepared in conformity with accounting
principles generally accepted in
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The words “believe,” “expect,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,”
“may,” “will,” “would” or the negative thereof and similar expressions
are intended to identify such forward-looking statements. These
forward-looking statements include statements related to future period
guidance; future sales, net income, net income per diluted share,
non-GAAP EPS, non-GAAP net income, expenses and other financial metrics;
our performance relative to our markets; market and technology trends;
the development of new products and the success of their introductions;
Company's capital allocation strategy, which may be modified at any time
for any reason, including share repurchases, dividends, debt repayments
and potential acquisitions; the effect of the Tax Cuts and Jobs Act on
our capital allocation strategy; the impact of the acquisitions we have
made and commercial partnerships we have established; our ability to
execute on our strategies; and other matters. These statements involve
risks and uncertainties, and actual results may differ. These risks and
uncertainties include, but are not limited to, weakening of global
and/or regional economic conditions, generally or specifically in the
semiconductor industry, which could decrease the demand for our products
and solutions; our ability to meet rapid demand shifts; our ability to
continue technological innovation and introduce new products to meet our
customers' rapidly changing requirements; our concentrated customer
base; our ability to identify, effect and integrate acquisitions, joint
ventures or other transactions; our ability to protect and enforce
intellectual property rights; operational, political and legal risks of
our international operations; our dependence on sole source and limited
source suppliers; the increasing complexity of certain manufacturing
processes; raw material shortages and price increases; changes in
government regulations of the countries in which we operate; fluctuation
of currency exchange rates; fluctuations in the market price of
Entegris’ stock; the level of, and obligations associated with, our
indebtedness; and other risk factors and additional information
described in our filings with the
Additional Information about the Merger and Where to Find It
This
communication does not constitute an offer to buy or sell or the
solicitation of an offer to buy or sell any securities or a solicitation
of any vote or approval. This communication relates to a proposed
business combination between
Participants in the Solicitation
Entegris Inc. and Subsidiaries | ||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
31-Dec-18 | 31-Dec-17 | 29-Sep-18 | 31-Dec-18 | 31-Dec-17 | ||||||||||||
Net sales | $401,642 | $350,562 | $398,597 | $1,550,497 | $1,342,532 | |||||||||||
Net income (loss) | $79,125 to $81,925 | ($28,341) | $48,060 | $239,096 to 241,896 | $85,066 | |||||||||||
Adjustments to net income (loss): | ||||||||||||||||
Equity in net loss of affiliates | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income tax (benefit) expense | (19,419) to (22,219) | 70,264 | 11,427 | 12,536 to 15,336 | 99,665 | |||||||||||
Interest expense, net | 8,426 | 7,533 | 7,678 | 30,255 | 31,628 | |||||||||||
Other expense, net | 3,176 | 21,696 | 810 | 8,002 | 25,458 | |||||||||||
GAAP - Operating income | 71,308 | 71,152 | 67,975 | 292,689 | 241,817 | |||||||||||
Charge for fair value write-up of acquired inventory sold | 3,379 | 0 | 3,281 | 6,868 | 0 | |||||||||||
Deal costs | 0 | 0 | 0 | 5,121 | 0 | |||||||||||
Integration costs | 1,288 | 0 | 752 | 3,237 | 0 | |||||||||||
Severance related to organizational realignment | 460 | 0 | 0 | 460 | 2,700 | |||||||||||
Impairment of equipment and intangibles 1 | 0 | 0 | 0 | 0 | 10,400 | |||||||||||
Loss on sale of subsidiary | 0 | 0 | 466 | 466 | 0 | |||||||||||
Amortization of intangible assets | 17,050 | 11,020 | 21,419 | 62,152 | 44,023 | |||||||||||
Adjusted operating income | 93,485 | 82,172 | 93,893 | 370,993 | 298,940 | |||||||||||
Depreciation | 16,468 | 15,035 | 16,537 | 65,116 | 58,208 | |||||||||||
Adjusted EBITDA | $109,953 | $97,207 | $110,430 | $436,109 | $357,148 | |||||||||||
Adjusted operating margin | 23.30% | 23.40% | 23.60% | 23.90% | 22.30% | |||||||||||
Adjusted EBITDA - as a % of net sales | 27.40% | 27.70% | 27.70% | 28.10% | 26.60% |
1 Includes product line impairment charges of $5,330 classified as cost of sales for the twelve months ended December 31, 2017. |
Includes intangible impairment charge of $3,866 classified as selling general and administrative expense for the twelve months ended December 31, 2017. |
Includes product line impairment charge of $320 classified as selling general and administrative expense for the twelve months ended December 31, 2017. |
Includes product line impairment charge of $884 classified as engineering, research and development expense for the twelve months ended December 31, 2017. |
Entegris Inc. and Subsidiaries | ||||||||||||||||
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Earnings Per Share | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
31-Dec-18 | 31-Dec-17 | 29-Sep-18 | 31-Dec-18 | 31-Dec-17 | ||||||||||||
GAAP net income (loss) | $79,125 to $81,925 | ($28,341) | $48,060 | $239,096 to $241,896 | $85,066 | |||||||||||
Adjustments to net income (loss): | ||||||||||||||||
Charge for fair value write-up of inventory acquired | 3,379 | - | 3,281 | 6,868 | - | |||||||||||
Deal costs | - | - | - | 5,121 | - | |||||||||||
Integration costs | 1,288 | - | 752 | 3,237 | - | |||||||||||
Severance related to organizational realignment | 460 | - | - | 460 | 2,700 | |||||||||||
Impairment of equipment and intangibles 1 | - | - | - | - | 13,200 | |||||||||||
Loss on debt extinguishment | 2,319 | 20,687 | - | 2,319 | 20,687 | |||||||||||
Loss on sale of subsidiary | - | - | 466 | 466 | - | |||||||||||
Amortization of intangible assets | 17,050 | 11,020 | 21,419 | 62,152 | 44,023 | |||||||||||
Tax effect of adjustments to net income and discrete items 2 | (5,603) | (10,385) | (5,797) | (17,812) | (26,046) | |||||||||||
Tax effect of legal entity restructuring | (34,478) | - | - | (34,478) | - | |||||||||||
Tax effect of Tax Cuts and Jobs Act | 1,101 | 66,713 | (2,560) | 683 | 66,713 | |||||||||||
Non-GAAP net income | $64,641 to $67,441 | $59,694 | $65,621 | $268,112 to $270,912 | $206,343 | |||||||||||
Diluted (loss) earnings per common share | $0.56 to $0.58 | ($0.20) | $0.34 | $1.68 to $1.70 | $0.59 | |||||||||||
Effect of adjustments to net income | ($0.10) | $0.62 | $0.12 | $0.20 | $0.85 | |||||||||||
Diluted non-GAAP earnings per common share | $0.46 to $0.48 | $0.42 | $0.46 | $1.88 to $1.90 | $1.44 |
1 Includes product line impairment charges of $5,330 classified as cost of sales for the twelve months ended December 31, 2017. |
Includes intangible impairment charge of $3,866 classified as selling general and administrative expense for the twelve months ended December 31, 2017. |
Includes product line impairment charge of $320 classified as selling general and administrative expense for the twelve months ended December 31, 2017. |
Includes product line impairment charge of $884 classified as engineering, research and development expense for the twelve months ended December 31, 2017. |
Includes product line impairment charge of $2,800 classified as other expense for the twelve months ended December 31, 2017. |
2 The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate during the respective years. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190128005197/en/
Source:
Bill Seymour
VP of Investor Relations
T +1 952 556 1844
bill.seymour@entegris.com