News Release Details


Entegris Reports Results for Fourth Quarter Of 2020

Feb 02, 2021 at 6:00 AM EST
  • Fourth-quarter revenue of $518 million, increased 21% from prior year
  • Fourth-quarter GAAP diluted EPS of $0.63, increased 50%
  • Fourth-quarter Non-GAAP diluted EPS of $0.71, increased 29%
  • 2020 revenue of $1,859 million, increased 17% from prior year
  • 2020 GAAP diluted EPS of $2.16, increased 16%
  • 2020 Non-GAAP diluted EPS of $2.54, increased 32%

BILLERICA, Mass.--(BUSINESS WIRE)--Feb. 2, 2021-- Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s fourth quarter ended December 31, 2020.

Fourth-quarter sales were $517.6 million, an increase of 21% from the same quarter last year. Fourth-quarter GAAP net income was $86.6 million, or $0.63 per diluted share, which included $11.9 million of amortization of intangible assets and $1.3 million of integration costs. Non-GAAP net income was $97.1 million for the fourth-quarter and non-GAAP earnings per diluted share was $0.71.

Bertrand Loy, Entegris’ president and chief executive officer, said: “Our fourth quarter results capped off a record year in sales, EBITDA and EPS for Entegris. In 2020, our performance above the market accelerated, driven by wins in new technology nodes and overall demand for our products and solutions. This performance showcased the strength of our team’s execution and our highly resilient, differentiated, unit-driven business model. I can’t say enough about how proud I am of the dedication, ingenuity and perseverance our team demonstrated in such a challenging year.”

Mr. Loy added: “We continue to be very optimistic about the long-term fundamentals of the semiconductor market. Accelerating chip demand and a higher amount of wafers produced at the leading edge, provide a great base for attractive secular industry growth. On top of this, at Entegris, we are benefiting from the growing impact to new device architectures of the intersecting themes of process materials and materials purity. We expect these key trends will continue to result in our rapidly expanding served markets and increased Entegris content per wafer.”

Quarterly Financial Results Summary

(in thousands, except percentages and per share data)

GAAP Results

December 31, 2020

December 31, 2019

September 26, 2020

Net sales

$517,594

$426,998

$480,987

Operating income

$113,228

$84,085

$106,761

Operating margin - as a % of net sales

21.9%

19.7%

22.2%

Net income

$86,624

$57,438

$79,303

Diluted earnings per common share

$0.63

$0.42

$0.58

Non-GAAP Results

Non-GAAP adjusted operating income

$126,945

$104,647

$121,612

Non-GAAP adjusted operating margin - as a % of net sales

24.5%

24.5%

25.3%

Non-GAAP net income

$97,123

$74,582

$91,460

Diluted non-GAAP earnings per common share

$0.71

$0.55

$0.67

First-Quarter Outlook

For the first quarter ending April 3, 2021, the Company expects sales of $510 million to $525 million, net income of $83 million to $90 million and diluted earnings per common share between $0.61 and $0.66. On a non-GAAP basis, the company expects diluted earnings per common share to range from $0.69 to $0.74, reflecting net income on a non-GAAP basis in the range of $94 million to $101 million.

Segment Results

The Company reports its results in the following segments:

Specialty Chemicals and Engineered Materials (SCEM): SCEM provides high-performance and high-purity process chemistries, gases and materials, and safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes.

Microcontamination Control (MC): MC offers solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

Advanced Materials Handling (AMH): AMH develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and other substrates for a broad set of applications in the semiconductor industry, life sciences and other high-technology industries.

Fourth-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the fourth quarter on Tuesday, February 2, 2021, at 9:00 a.m. Eastern Time. Participants should dial 800-437-2398 or +1 323-289-6576, referencing confirmation code 9608918. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. For a replay of the call, please Click Here using passcode 9608918.

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

Management’s slide presentation concerning the results for the third quarter, which may be referred to during the call, will be posted on the Investor Relations section of www.entegris.com Tuesday morning before the call.

ABOUT ENTEGRIS

Entegris is a world-class supplier of advanced materials and process solutions for 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, Canada, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

Non-GAAP Information

The Company’s condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA, adjusted gross profit, adjusted segment profit, and adjusted operating income, non-GAAP net income, non-GAAP adjusted operating margin and diluted non-GAAP earnings per common share, together with related measures thereof, are considered “non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company provides supplemental non-GAAP financial measures to better understand and manage its business and believes these measures provide investors and analysts additional and meaningful information for the assessment of the Company’s ongoing results. Management also uses these non-GAAP measures to assist in the evaluation of the performance of its business segments and to make operating decisions. Management believes that the Company’s non-GAAP measures help indicate the Company’s baseline performance before certain gains, losses or other charges that may not be indicative of the Company’s business or future outlook, and that non-GAAP measures offer a more consistent view of business performance. The Company believes the non-GAAP measures aid investors’ overall understanding of the Company’s results by providing a higher degree of transparency for such items and providing a level of disclosure that will help investors generally understand how management plans, measures and evaluates the Company’s business performance. Management believes that the inclusion of non-GAAP measures provides greater consistency in its financial reporting and facilitates investors’ understanding of the Company’s historical operating trends by providing an additional basis for comparisons to prior periods. The reconciliations of GAAP gross profit to adjusted gross profit, GAAP segment profit to adjusted operating income, GAAP net income to adjusted operating income and adjusted EBITDA, GAAP net income and diluted earnings per common share to non-GAAP net income and diluted non-GAAP earnings per common share and GAAP outlook to non-GAAP outlook are included elsewhere in this release.

Forward-Looking Statements

This press release contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “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; the Company’s performance relative to its markets, including the drivers of such performance; the impact, financial or otherwise, of any organizational changes; market and technology trends, including the expected impact of the Covid-19 pandemic; the development of new products and the success of their introductions; the 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 impact of the acquisitions the Company has made and commercial partnerships the Company has established; the Company’s ability to execute on its strategies; and other matters. These statements involve risks and uncertainties, and actual results may differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the Covid-19 pandemic on the global economy and financial markets, as well as on the Company, our customers and suppliers, which may impact our sales, gross margin, customer demand and our ability to supply our products to our customers; weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company’s products and solutions; the Company’s ability to meet rapid demand shifts; the Company’s ability to continue technological innovation and introduce new products to meet customers' rapidly changing requirements; the Company’s concentrated customer base; the Company’s ability to identify, complete and integrate acquisitions, joint ventures or other transactions; the Company’s ability to effectively implement any organizational changes; the Company’s ability to protect and enforce intellectual property rights; operational, political and legal risks of the Company’s international operations; the Company’s dependence on sole source and limited source suppliers; the increasing complexity of certain manufacturing processes; raw material shortages, supply constraints and price increases; changes in government regulations of the countries in which the Company operates; fluctuation of currency exchange rates; fluctuations in the market price of the Company’s stock; the level of, and obligations associated with, the Company’s indebtedness; and other risk factors and additional information described in the Company’s filings with the Securities and Exchange Commission, including under the heading “Risks Factors" in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed on February 7, 2020, and in the Company’s other periodic filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

 

 

December 31, 2020

December 31, 2019

September 26, 2020

Net sales

$

517,594

 

$

426,998

$

480,987

 

Cost of sales

 

286,722

 

 

229,362

 

254,987

 

 

Gross profit

 

230,872

 

 

197,636

 

226,000

 

Selling, general and administrative expenses

 

68,170

 

 

67,171

 

71,195

 

Engineering, research and development expenses

 

37,558

 

 

30,352

 

36,295

 

Amortization of intangible assets

 

11,916

 

 

16,028

 

11,749

 

 

Operating income

 

113,228

 

 

84,085

 

106,761

 

Interest expense, net

 

12,133

 

 

12,743

 

12,651

 

Other (income) expense, net

 

(5,305

)

 

248

 

(1,752

)

 

Income before income tax expense

 

106,400

 

 

71,094

 

95,862

 

Income tax expense

 

19,776

 

 

13,656

 

16,559

 

 

Net income

$

86,624

 

$

57,438

$

79,303

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

$

0.64

 

$

0.43

$

0.59

 

Diluted earnings per common share:

$

0.63

 

$

0.42

$

0.58

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

Basic

 

134,945

 

 

134,778

 

134,957

 

 

Diluted

 

136,438

 

 

136,470

 

136,252

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Twelve months ended

 

 

December 31, 2020

December 31, 2019

Net sales

$

1,859,313

 

$

1,591,066

 

Cost of sales

 

1,009,591

 

 

879,413

 

 

Gross profit

 

849,722

 

 

711,653

 

Selling, general and administrative expenses

 

265,128

 

 

284,807

 

Engineering, research and development expenses

 

136,057

 

 

121,140

 

Amortization of intangible assets

 

53,092

 

 

66,428

 

 

Operating income

 

395,445

 

 

239,278

 

Interest expense, net

 

47,814

 

 

42,310

 

Other (income), net

 

(6,656

)

 

(121,081

)

 

Income before income tax expense

 

354,287

 

 

318,049

 

Income tax expense

 

59,318

 

 

63,189

 

 

Net income

$

294,969

 

$

254,860

 

 

 

 

 

 

 

Basic earnings per common share:

$

2.19

 

$

1.89

 

Diluted earnings per common share:

$

2.16

 

$

1.87

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

Basic

 

134,837

 

 

135,137

 

 

Diluted

 

136,266

 

 

136,568

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

December 31, 2020

December 31, 2019

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

580,893

$

351,911

Trade accounts and notes receivable, net

 

264,392

 

234,409

Inventories, net

 

323,944

 

287,098

Deferred tax charges and refundable income taxes

 

21,136

 

24,552

Other current assets

 

43,892

 

34,427

Total current assets

 

1,234,257

 

932,397

Property, plant and equipment, net

 

525,367

 

479,544

Other assets:

 

 

Right-of-use assets

 

45,924

 

50,160

Goodwill

 

748,037

 

695,044

Intangible assets, net

 

337,632

 

333,952

Deferred tax assets and other noncurrent tax assets

 

14,519

 

11,245

Other

 

11,960

 

13,744

Total assets

$

2,917,696

$

2,516,086

LIABILITIES AND EQUITY

 

Current liabilities

 

 

Long-term debt, current maturities

$

$

4,000

Accounts payable

 

81,618

 

84,207

Accrued liabilities

 

177,012

 

150,118

Income tax payable

 

43,996

 

26,108

Total current liabilities

 

302,626

 

264,433

Long-term debt, excluding current maturities

 

1,085,783

 

932,484

Long-term lease liability

 

39,730

 

43,827

Other liabilities

 

110,063

 

109,453

Shareholders’ equity

 

1,379,494

 

1,165,889

Total liabilities and equity

$

2,917,696

$

2,516,086

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Three months ended

Twelve months ended

 

December 31,
2020

December 31,
2019

December 31,
2020

December 31,
2019

Operating activities:

 

 

 

 

Net income

$

86,624

 

$

57,438

 

$

294,969

 

$

254,860

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation

 

21,366

 

 

20,352

 

 

83,430

 

 

74,975

 

Amortization

 

11,916

 

 

16,028

 

 

53,092

 

 

66,428

 

Stock-based compensation expense

 

6,368

 

 

4,714

 

 

22,920

 

 

19,629

 

Other

 

(21,500

)

 

(2,585

)

 

11,605

 

 

9,543

 

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

Trade accounts and notes receivable

 

37,906

 

 

27,241

 

 

(27,461

)

 

(3,164

)

Inventories

 

3,506

 

 

(15,665

)

 

(50,772

)

 

(21,354

)

Accounts payable and accrued liabilities

 

30,086

 

 

9,264

 

 

40,162

 

 

(22,647

)

Income taxes payable, refundable income taxes and noncurrent taxes payable

 

40,485

 

 

17,080

 

 

28,490

 

 

(3,494

)

Other

 

(12,739

)

 

(5,223

)

 

(9,761

)

 

7,522

 

Net cash provided by operating activities

 

204,018

 

 

128,644

 

 

446,674

 

 

382,298

 

Investing activities:

 

 

 

 

Acquisition of property and equipment

 

(52,192

)

 

(25,932

)

 

(131,752

)

 

(112,355

)

Acquisition of business, net of cash acquired

 

(767

)

 

(10,996

)

 

(111,912

)

 

(277,369

)

Other

 

73

 

 

1,069

 

 

338

 

 

3,884

 

Net cash used in investing activities

 

(52,886

)

 

(35,859

)

 

(243,326

)

 

(385,840

)

Financing activities:

 

 

 

 

Proceeds from short-term borrowings and long-term debt

 

 

 

 

 

617,000

 

 

 

Payments of short-term borrowings and long-term debt

 

 

 

(2,000

)

 

(468,000

)

 

(4,000

)

Payments for dividends

 

(10,799

)

 

(10,787

)

 

(43,245

)

 

(40,566

)

Issuance of common stock

 

3,839

 

 

2,940

 

 

8,738

 

 

7,291

 

Taxes paid related to net share settlement of equity awards

 

(244

)

 

(145

)

 

(24,800

)

 

(8,722

)

Repurchase and retirement of common stock

 

(14,999

)

 

(15,000

)

 

(44,563

)

 

(80,321

)

Deferred acquisition payments

 

 

 

 

 

(16,125

)

 

 

Other

 

 

 

 

 

(6,856

)

 

(502

)

Net cash (used in) provided by financing activities

 

(22,203

)

 

(24,992

)

 

22,149

 

 

(126,820

)

Effect of exchange rate changes on cash and cash equivalents

 

3,992

 

 

1,370

 

 

3,485

 

 

211

 

Increase (decrease) in cash and cash equivalents

 

132,921

 

 

69,163

 

 

228,982

 

 

(130,151

)

Cash and cash equivalents at beginning of period

 

447,972

 

 

282,748

 

 

351,911

 

 

482,062

 

Cash and cash equivalents at end of period

$

580,893

 

$

351,911

 

$

580,893

 

$

351,911

 

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

 

Three months ended

 

Twelve months ended

Net sales

December 31, 2020

December 31, 2019

September 26, 2020

 

December 31, 2020

December 31, 2019

Specialty Chemicals and Engineered Materials

$

168,625

 

$

146,747

 

$

150,480

 

 

$

609,532

 

$

526,519

 

Microcontamination Control

 

205,626

 

 

169,794

 

 

193,541

 

 

 

742,186

 

 

633,664

 

Advanced Materials Handling

 

151,741

 

 

117,455

 

 

144,370

 

 

 

538,682

 

 

458,290

 

Inter-segment elimination

 

(8,398

)

 

(6,998

)

 

(7,404

)

 

 

(31,087

)

 

(27,407

)

Total net sales

$

517,594

 

$

426,998

 

$

480,987

 

 

$

1,859,313

 

$

1,591,066

 

 

Three months ended

 

Twelve months ended

Segment profit

December 31, 2020

December 31, 2019

September 26, 2020

 

December 31, 2020

December 31, 2019

Specialty Chemicals and Engineered Materials

$

29,761

$

32,822

$

32,600

 

$

127,969

$

98,327

Microcontamination Control

 

71,691

 

57,157

 

64,915

 

 

248,910

 

194,398

Advanced Materials Handling

 

34,321

 

20,686

 

33,266

 

 

111,028

 

75,173

Total segment profit

 

135,773

 

110,665

 

130,781

 

 

487,907

 

367,898

Amortization of intangibles

 

11,916

 

16,028

 

11,749

 

 

53,092

 

66,428

Unallocated expenses

 

10,629

 

10,552

 

12,271

 

 

39,370

 

62,192

Total operating income

$

113,228

$

84,085

$

106,761

 

$

395,445

$

239,278

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

 

 

Three months ended

 

Twelve months ended

 

December 31,
2020

December 31,
2019

September 26,
2020

 

December 31,
2020

December 31,
2019

Net sales

$

517,594

$

426,998

 

$

480,987

 

$

1,859,313

 

$

1,591,066

Gross profit-GAAP

$

230,872

$

197,636

 

$

226,000

 

$

849,722

 

$

711,653

Adjustments to gross profit:

 

 

 

 

 

 

Integration costs

 

 

 

 

 

 

(1,557

)

 

Severance and restructuring costs

 

 

(12

)

 

 

 

465

 

 

1,336

Charge for fair value mark-up of acquired inventory sold

 

 

211

 

 

229

 

 

590

 

 

7,544

Adjusted gross profit

$

230,872

$

197,835

 

$

226,229

 

$

849,220

 

$

720,533

 

 

 

 

 

 

 

Gross margin - as a % of net sales

44.6

%

46.3

%

47.0

%

 

45.7

%

44.7

%

Adjusted gross margin - as a % of net sales

44.6

%

46.3

%

47.0

%

 

45.7

%

45.3

%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

 

 

Three months ended

 

Twelve months ended

Segment profit-GAAP

December 31, 2020

December 31, 2019

September 26, 2020

 

December 31, 2020

December 31, 2019

Specialty Chemicals and Engineered Materials (SCEM)

$

29,761

$

32,822

$

32,600

 

$

127,969

$

98,327

Microcontamination Control (MC)

 

71,691

 

57,157

 

64,915

 

 

248,910

 

194,398

Advanced Materials Handling (AMH)

 

34,321

 

20,686

 

33,266

 

 

111,028

 

75,173

Total segment profit

 

135,773

 

110,665

 

130,781

 

 

487,907

 

367,898

Amortization of intangible assets

 

11,916

 

16,028

 

11,749

 

 

53,092

 

66,428

Unallocated expenses

 

10,629

 

10,552

 

12,271

 

 

39,370

 

62,192

Total operating income

$

113,228

$

84,085

$

106,761

 

$

395,445

$

239,278

 

Three months ended

 

Twelve months ended

Adjusted segment profit

December 31, 2020

December 31, 2019

September 26, 2020

 

December 31, 2020

December 31, 2019

SCEM segment profit

$

29,761

 

$

32,822

 

$

32,600

 

 

$

127,969

 

$

98,327

 

Integration costs

 

 

 

 

 

 

 

 

(1,557

)

 

 

Severance and restructuring costs

 

155

 

 

184

 

 

277

 

 

 

1,061

 

 

2,846

 

Charge for fair value write-up of acquired inventory sold

 

 

 

(476

)

 

 

 

 

235

 

 

4,822

 

SCEM adjusted segment profit

$

29,916

 

$

32,530

 

$

32,877

 

 

$

127,708

 

$

105,995

 

 

 

 

 

 

 

 

MC segment profit

$

71,691

 

$

57,157

 

$

64,915

 

 

$

248,910

 

$

194,398

 

Severance and restructuring costs

 

167

 

 

195

 

 

301

 

 

 

1,152

 

 

3,896

 

Charge for fair value write-up of acquired inventory sold

 

 

 

687

 

 

 

 

 

126

 

 

2,722

 

MC adjusted segment profit

$

71,858

 

$

58,039

 

$

65,216

 

 

$

250,188

 

$

201,016

 

 

 

 

 

 

 

 

AMH segment profit

$

34,321

 

$

20,686

 

$

33,266

 

 

$

111,028

 

$

75,173

 

Severance and restructuring costs

 

121

 

 

(379

)

 

213

 

 

 

1,283

 

 

3,334

 

Charge for fair value write-up of acquired inventory sold

 

 

229

 

 

229

 

 

AMH adjusted segment profit

$

34,442

 

$

20,307

 

$

33,708

 

 

$

112,540

 

$

78,507

 

 

 

 

 

 

 

 

Unallocated general and administrative expenses

$

10,629

 

$

10,552

 

$

12,271

 

 

$

39,370

 

$

62,192

 

Unallocated deal and integration costs

 

(1,300

)

 

(4,323

)

 

(1,902

)

 

 

(7,096

)

 

(36,096

)

Unallocated severance and restructuring costs

 

(58

)

 

 

 

(180

)

 

 

(868

)

 

(2,418

)

Adjusted unallocated general and administrative expenses

$

9,271

 

$

6,229

 

$

10,189

 

 

$

31,406

 

$

23,678

 

 

 

 

 

 

 

 

Total adjusted segment profit

$

136,216

 

$

110,876

 

$

131,801

 

 

$

490,436

 

$

385,518

 

Adjusted amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

Adjusted unallocated general and administrative expenses

 

9,271

 

 

6,229

 

 

10,189

 

 

 

31,406

 

 

23,678

 

Total adjusted operating income

$

126,945

 

$

104,647

 

$

121,612

 

 

$

459,030

 

$

361,840

 

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

 

December 31,
2020

December 31,
2019

September 26,
2020

 

December 31,
2020

December 31,
2019

Net sales

$

517,594

 

$

426,998

 

$

480,987

 

 

$

1,859,313

 

$

1,591,066

 

Net income

$

86,624

 

$

57,438

 

$

79,303

 

 

$

294,969

 

$

254,860

 

Net income - as a % of net sales

 

16.7

%

 

13.5

%

 

16.5

%

 

 

15.9

%

 

16.0

%

Adjustments to net income:

 

 

 

 

 

 

Income tax expense

 

19,776

 

 

13,656

 

 

16,559

 

 

 

59,318

 

 

63,189

 

Interest expense, net

 

12,133

 

 

12,743

 

 

12,651

 

 

 

47,814

 

 

42,310

 

Other (income) expense, net

 

(5,305

)

 

248

 

 

(1,752

)

 

 

(6,656

)

 

(121,081

)

GAAP - Operating income

 

113,228

 

 

84,085

 

 

106,761

 

 

 

395,445

 

 

239,278

 

Operating margin - as a % of net sales

 

21.9

%

 

19.7

%

 

22.2

%

 

 

21.3

%

 

15.0

%

Charge for fair value write-up of acquired inventory sold

 

 

 

211

 

 

229

 

 

 

590

 

 

7,544

 

Deal and transaction costs

 

 

 

973

 

 

642

 

 

 

2,576

 

 

26,164

 

Integration costs

 

1,300

 

 

3,350

 

 

1,260

 

 

 

2,963

 

 

9,932

 

Severance and restructuring costs

 

501

 

 

 

 

971

 

 

 

4,364

 

 

12,494

 

Amortization of intangible assets

 

11,916

 

 

16,028

 

 

11,749

 

 

 

53,092

 

 

66,428

 

Adjusted operating income

 

126,945

 

 

104,647

 

 

121,612

 

 

 

459,030

 

 

361,840

 

Adjusted operating margin - as a % of net sales

 

24.5

%

 

24.5

%

 

25.3

%

 

 

24.7

%

 

22.7

%

Depreciation

 

21,366

 

 

20,352

 

 

20,777

 

 

 

83,430

 

 

74,975

 

Adjusted EBITDA

$

148,311

 

$

124,999

 

$

142,389

 

 

$

542,460

 

$

436,815

 

Adjusted EBITDA - as a % of net sales

 

28.7

%

 

29.3

%

 

29.6

%

 

 

29.2

%

 

27.5

%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share

(In thousands, except per share data)

(Unaudited)

 

 

Three months ended

 

Twelve months ended

 

December 31,
2020

December 31,
2019

September 26,
2020

 

December 31,
2020

December 31,
2019

GAAP net income

$

86,624

 

$

57,438

 

$

79,303

 

 

$

294,969

 

$

254,860

 

Adjustments to net income:

 

 

 

 

 

 

Charge for fair value write-up of inventory acquired

 

 

 

211

 

 

229

 

 

 

590

 

 

7,544

 

Deal and transaction costs

 

 

 

973

 

 

642

 

 

 

2,576

 

 

26,575

 

Integration costs

 

1,300

 

 

3,350

 

 

1,260

 

 

 

2,963

 

 

9,932

 

Severance and restructuring costs

 

501

 

 

 

 

971

 

 

 

4,364

 

 

12,494

 

Loss on debt extinguishment

 

 

 

1,980

 

 

908

 

 

 

2,378

 

 

1,980

 

Versum termination fee, net

 

 

 

 

 

 

 

 

 

 

(122,000

)

Amortization of intangible assets

 

11,916

 

 

16,028

 

 

11,749

 

 

 

53,092

 

 

66,428

 

Tax effect of legal entity restructuring

 

 

 

 

 

 

 

 

 

 

9,398

 

Tax effect of adjustments to net income and discrete items1

 

(3,218

)

 

(5,398

)

 

(3,602

)

 

 

(15,197

)

 

(3,124

)

Non-GAAP net income

$

97,123

 

$

74,582

 

$

91,460

 

 

$

345,735

 

$

264,087

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.63

 

$

0.42

 

$

0.58

 

 

$

2.16

 

$

1.87

 

Effect of adjustments to net income

$

0.08

 

$

0.13

 

$

0.09

 

 

$

0.37

 

$

0.07

 

Diluted non-GAAP earnings per common share

$

0.71

 

$

0.55

 

$

0.67

 

 

$

2.54

 

$

1.93

 

1The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate during the respective years.

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Outlook to Non-GAAP Outlook

(In millions, except per share data)

(Unaudited)

 

 

First-Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income

April 3, 2021

GAAP net income

$83 - $90

Adjustments to net income:

 

Restructuring and integration costs

2

 

 

Amortization of intangible assets

12

 

 

Income tax effect

(3

)

 

Non-GAAP net income

$94 - $101

 

First-Quarter Outlook

Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share

April 3, 2021

Diluted earnings per common share

$0.61 - $0.66

Adjustments to diluted earnings per common share:

 

Restructuring and integration costs

0.01

 

 

Amortization of intangible assets

0.08

 

 

Income tax effect

(0.01

)

 

Diluted non-GAAP earnings per common share

$0.69 - $0.74

 

Bill Seymour
VP of Investor Relations
T + 1 952 556 1844
bill.seymour@entegris.com

Source: Entegris, Inc.