Press Release Details


Entegris Reports Results for Second Quarter of 2020

Jul 23, 2020 at 6:00 AM EDT
  • Second-quarter revenue of $448.4 million, increased 18% from prior year
  • Second-quarter GAAP diluted EPS of $0.50, decreased 45%
  • Second-quarter Non-GAAP diluted EPS of $0.60, increased 54%

BILLERICA, Mass.--(BUSINESS WIRE)--Jul. 23, 2020-- Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s second quarter ended June 27, 2020.

Second-quarter sales were $448.4 million, an increase of 18% from the same quarter last year. GAAP second-quarter net income was $68.0 million, or $0.50 per diluted share, which included $13.2 million of amortization of intangible assets and $2.0 million of severance and restructuring costs. Non-GAAP net income was $81.6 million and non-GAAP earnings per diluted share was $0.60.

Bertrand Loy, president and chief executive officer, said: “I am very pleased with our second quarter results, especially in light of the operational risks and business uncertainty we faced coming into the quarter related to the pandemic. This stronger than expected performance was particularly driven by accelerated demand of our leading-edge solutions.”

Mr. Loy added: “While risks related to the ongoing impact of the pandemic still exist, we are optimistic about our prospects for the rest of 2020. We expect to continue to significantly outperform the market, driven by additional product wins in advanced technology nodes. We feel confident that our disciplined execution and strong liquidity will allow us to navigate this period of uncertainty, while continuing to invest in the future.”

Quarterly Financial Results Summary
(in thousands, except percentages and per share data)

GAAP Results

June 27, 2020

June 29, 2019

March 28, 2020

Net sales

$448,405

$378,874

$412,327

Operating income

$94,712

$54,909

$80,744

Operating margin - as a % of net sales

21.1

%

14.5

%

19.6

%

Net income

$68,036

$123,997

$61,006

Diluted earnings per common share

$0.50

$0.91

$0.45

Non-GAAP Results

Non-GAAP adjusted operating income

$110,835

$76,793

$99,638

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

24.7

%

20.3

%

24.2

%

Non-GAAP net income

$81,581

$53,432

$75,571

Diluted non-GAAP earnings per common share

$0.60

$0.39

$0.55

Third-Quarter Outlook

For the third quarter ending September 26, 2020, the Company expects sales of $450 million to $475 million, net income of $70 million to $78 million and diluted earnings per common share between $0.51 and $0.57. On a non-GAAP basis, diluted earnings per common share is expected to range from $0.60 to $0.66, which reflects net income on a non-GAAP basis in the range of $82 million to $90 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 substrates for a broad set of applications in the semiconductor industry and other high-technology industries.

Entegris’ 2020 Investor and Analyst Day

Entegris will be hosting an Investor and Analyst Day on November 17, 2020 in New York City (or virtually if necessary). More information on this event will be made available in the near future. If you have any questions please reach out to Bill Seymour, V.P. Investor Relations.

Second-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the second quarter on Thursday, July 23, 2020, at 9:00 a.m. Eastern Time. Participants should dial 888-254-3590 or +1 323-994-2093, referencing confirmation code 4374647. 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 4374647.

The call can also be accessed live and on-demand from the Entegris website. Point your web browser 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 second quarter, which may be referred to during the call, will be posted on the investor relations section of www.entegris.com Thursday 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, together with related measures thereof, and non-GAAP net income, non-GAAP adjusted operating margin and diluted non-GAAP earnings per common share, 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 uses these non-GAAP financial measures for financial and operational decision-making, as a means to evaluate period-to-period comparisons, as well as comparisons to the Company’s competitors' operating results. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance and liquidity by excluding certain items that may not be indicative of the Company’s recurring business operating results, such as amortization, depreciation and discrete cash charges that may vary significantly from period to period. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing and understanding the Company’s results and performance and when planning, forecasting, and analyzing future periods. The Company believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by the Company’s institutional investors and the analyst community to help them analyze the Company’s business. 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, effect 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

 

 

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

Net sales

 

$448,405

 

$378,874

 

$412,327

Cost of sales

 

241,033

 

212,600

 

226,849

 

Gross profit

 

207,372

 

166,274

 

185,478

Selling, general and administrative expenses

 

66,872

 

64,150

 

58,891

Engineering, research and development expenses

 

32,572

 

30,624

 

29,632

Amortization of intangible assets

 

13,216

 

16,591

 

16,211

 

Operating income

 

94,712

 

54,909

 

80,744

Interest expense, net

 

12,792

 

9,692

 

10,238

Other (income) expense, net

 

(477)

 

(122,015)

 

878

 

Income before income tax expense

 

82,397

 

167,232

 

69,628

Income tax expense

 

14,361

 

43,235

 

8,622

 

Net income

 

$68,036

 

$123,997

 

$61,006

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

 

$0.51

 

$0.92

 

$0.45

Diluted earnings per common share:

 

$0.50

 

$0.91

 

$0.45

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

134,700

 

135,378

 

134,745

 

Diluted

 

136,007

 

136,581

 

136,369

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Six months ended

 

 

 

June 27, 2020

 

June 29, 2019

Net sales

 

$860,732

 

$769,921

Cost of sales

 

467,882

 

426,254

 

Gross profit

 

392,850

 

343,667

Selling, general and administrative expenses

 

125,763

 

146,404

Engineering, research and development expenses

 

62,204

 

59,615

Amortization of intangible assets

 

29,427

 

35,248

 

Operating income

 

175,456

 

102,400

Interest expense, net

 

23,030

 

19,351

Other expense (income), net

 

401

 

(122,263)

 

Income before income tax expense

 

152,025

 

205,312

Income tax expense

 

22,983

 

48,657

 

Net income

 

$129,042

 

$156,655

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

 

$0.96

 

$1.16

Diluted earnings per common share:

 

$0.95

 

$1.15

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

134,722

 

135,338

 

Diluted

 

136,188

 

136,637

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

June 27, 2020

 

December 31, 2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$532,667

 

$351,911

Trade accounts and notes receivable, net

 

275,557

 

234,409

Inventories, net

 

332,885

 

287,098

Deferred tax charges and refundable income taxes

 

20,291

 

24,552

Other current assets

 

27,447

 

34,427

Total current assets

 

1,188,847

 

932,397

Property, plant and equipment, net

 

475,202

 

479,544

Other assets:

 

 

 

 

Right-of-use assets

 

47,911

 

50,160

Goodwill

 

725,678

 

695,044

Intangible assets, net

 

342,258

 

333,952

Deferred tax assets and other noncurrent tax assets

 

11,772

 

11,245

Other

 

12,372

 

13,744

Total assets

 

$2,804,040

 

$2,516,086

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

 

Long-term debt, current maturities

 

$—

 

$4,000

Accounts payable

 

80,359

 

84,207

Accrued liabilities

 

133,117

 

150,118

Income tax payable

 

24,479

 

26,108

Total current liabilities

 

237,955

 

264,433

Long-term debt, excluding current maturities

 

1,183,992

 

932,484

Long-term lease liability

 

41,704

 

43,827

Other liabilities

 

108,600

 

109,453

Shareholders’ equity

 

1,231,789

 

1,165,889

Total liabilities and equity

 

$2,804,040

 

$2,516,086

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

         

 

 

Three months ended

 

Six months ended

 

 

June 27, 2020

 

June 29, 2019

 

June 27, 2020

 

June 29, 2019

Operating activities:

 

 

 

 

 

 

 

 

Net income

 

$68,036

 

$123,997

 

$129,042

 

$156,655

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

 

 

 

 

 

 

 

 

Depreciation

 

20,639

 

18,596

 

41,287

 

35,317

Amortization

 

13,216

 

16,591

 

29,427

 

35,248

Stock-based compensation expense

 

5,655

 

4,936

 

10,649

 

9,589

Other

 

7,332

 

446

 

12,895

 

6,140

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

 

 

 

 

 

 

 

 

Trade accounts and notes receivable

 

1,908

 

14,545

 

(42,087)

 

5,436

Inventories

 

(37,157)

 

5,840

 

(55,362)

 

3,709

Accounts payable and accrued liabilities

 

43,663

 

(7,688)

 

5,643

 

(52,707)

Income taxes payable, refundable income taxes and noncurrent taxes payable

 

4,637

 

58,264

 

4,412

 

15,391

Other

 

2,092

 

(4,626)

 

5,518

 

13,585

Net cash provided by operating activities

 

130,021

 

230,901

 

141,424

 

228,363

Investing activities:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

(24,288)

 

(25,636)

 

(46,873)

 

(60,101)

Acquisition of business, net of cash acquired

 

(15)

 

522

 

(75,645)

 

(49,267)

Other

 

206

 

 

211

 

197

Net cash used in investing activities

 

(24,097)

 

(25,114)

 

(122,307)

 

(109,171)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from short-term borrowings and long-term debt

 

400,000

 

 

617,000

 

Payments of long-term debt

 

(293,000)

 

(1,000)

 

(368,000)

 

(2,000)

Payments for dividends

 

(10,805)

 

(9,494)

 

(21,652)

 

(18,964)

Issuance of common stock

 

1,198

 

 

1,749

 

917

Taxes paid related to net share settlement of equity awards

 

(1,280)

 

(574)

 

(12,720)

 

(8,301)

Repurchase and retirement of common stock

 

 

(15,000)

 

(29,564)

 

(50,321)

Deferred acquisition payments

 

 

 

(16,125)

 

Other

 

(3,965)

 

(247)

 

(6,855)

 

(497)

Net cash provided by (used in) financing activities

 

92,148

 

(26,315)

 

163,833

 

(79,166)

Effect of exchange rate changes on cash and cash equivalents

 

(482)

 

(450)

 

(2,194)

 

(706)

Increase in cash and cash equivalents

 

197,590

 

179,022

 

180,756

 

39,320

Cash and cash equivalents at beginning of period

 

335,077

 

342,360

 

351,911

 

482,062

Cash and cash equivalents at end of period

 

$532,667

 

$521,382

 

$532,667

 

$521,382

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

         

 

 

Three months ended

 

Six months ended

Net sales

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

Specialty Chemicals and Engineered Materials

 

$146,213

 

$127,552

 

$144,214

 

$290,427

 

$252,022

Microcontamination Control

 

183,758

 

150,185

 

159,261

 

343,019

 

307,891

Advanced Materials Handling

 

126,434

 

107,515

 

116,137

 

242,571

 

223,579

Inter-segment elimination

 

(8,000)

 

(6,378)

 

(7,285)

 

(15,285)

 

(13,571)

Total net sales

 

$448,405

 

$378,874

 

$412,327

 

$860,732

 

$769,921

         

 

 

Three months ended

 

Six months ended

Segment profit

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

Specialty Chemicals and Engineered Materials

 

$32,938

 

$24,000

 

$32,670

 

$65,608

 

$48,431

Microcontamination Control

 

62,137

 

43,126

 

50,167

 

112,304

 

90,449

Advanced Materials Handling

 

22,809

 

15,043

 

20,632

 

43,441

 

37,410

Total segment profit

 

117,884

 

82,169

 

103,469

 

221,353

 

176,290

Amortization of intangibles

 

13,216

 

16,591

 

16,211

 

29,427

 

35,248

Unallocated expenses

 

9,956

 

10,669

 

6,514

 

16,470

 

38,642

Total operating income

 

$94,712

 

$54,909

 

$80,744

 

$175,456

 

$102,400

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

 

 

Three months ended

 

Six months ended

 

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

Net sales

 

$448,405

 

$378,874

 

$412,327

 

$860,732

 

$769,921

Gross profit-GAAP

 

$207,372

 

$166,274

 

$185,478

 

$392,850

 

$343,667

Adjustments to gross profit:

 

 

 

 

 

 

 

 

 

 

Integration costs

 

(1,557)

 

 

 

(1,557)

 

Severance and restructuring costs

 

465

 

 

 

465

 

358

Charge for fair value mark-up of acquired inventory sold

 

 

695

 

361

 

361

 

2,850

Adjusted gross profit

 

$206,280

 

$166,969

 

$185,839

 

$392,119

 

$346,875

 

 

 

 

 

 

 

 

 

 

 

Gross margin - as a % of net sales

 

46.2

%

 

43.9

%

 

45.0

%

 

45.6

%

 

44.6

%

Adjusted gross margin - as a % of net sales

 

46.0

%

 

44.1

%

 

45.1

%

 

45.6

%

 

45.1

%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

         

 

 

Three months ended

 

Six months ended

Segment profit-GAAP

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

Specialty Chemicals and Engineered Materials (SCEM)

 

$32,938

 

$24,000

 

$32,670

 

$65,608

 

$48,431

Microcontamination Control (MC)

 

62,137

 

43,126

 

50,167

 

112,304

 

90,449

Advanced Materials Handling (AMH)

 

22,809

 

15,043

 

20,632

 

43,441

 

37,410

Total segment profit

 

117,884

 

82,169

 

103,469

 

221,353

 

176,290

Amortization of intangible assets

 

13,216

 

16,591

 

16,211

 

29,427

 

35,248

Unallocated expenses

 

9,956

 

10,669

 

6,514

 

16,470

 

38,642

Total operating income

 

$94,712

 

$54,909

 

$80,744

 

$175,456

 

$102,400

         

 

 

Three months ended

 

Six months ended

Adjusted segment profit

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

SCEM segment profit

 

$32,938

 

$24,000

 

$32,670

 

$65,608

 

$48,431

Integration costs

 

(1,557)

 

 

 

(1,557)

 

Severance and restructuring costs

 

455

 

 

174

 

629

 

519

Charge for fair value write-up of acquired inventory sold

 

 

695

 

235

 

235

 

815

SCEM adjusted segment profit

 

$31,836

 

$24,695

 

$33,079

 

$64,915

 

$49,765

 

 

 

 

 

 

 

 

 

 

 

MC segment profit

 

$62,137

 

$43,126

 

$50,167

 

$112,304

 

$90,449

Severance and restructuring costs

 

494

 

 

190

 

684

 

724

Charge for fair value write-up of acquired inventory sold

 

 

 

126

 

126

 

2,035

MC adjusted segment profit

 

$62,631

 

$43,126

 

$50,483

 

$113,114

 

$93,208

 

 

 

 

 

 

 

 

 

 

 

AMH segment profit

 

$22,809

 

$15,043

 

$20,632

 

$43,441

 

$37,410

Severance and restructuring costs

 

814

 

 

135

 

949

 

578

AMH adjusted segment profit

 

$23,623

 

$15,043

 

$20,767

 

$44,390

 

$37,988

 

 

 

 

 

 

 

 

 

 

 

Unallocated general and administrative expenses

 

$9,956

 

$10,669

 

$6,514

 

$16,470

 

$38,642

Unallocated deal and integration costs

 

(2,415)

 

(2,428)

 

(1,479)

 

(3,894)

 

(24,484)

Unallocated severance and restructuring costs

 

(286)

 

(2,170)

 

(344)

 

(630)

 

(2,170)

Adjusted unallocated general and administrative expenses

 

$7,255

 

$6,071

 

$4,691

 

$11,946

 

$11,988

 

 

 

 

 

 

 

 

 

 

 

Total adjusted segment profit

 

$118,090

 

$82,864

 

$104,329

 

$222,419

 

$180,961

Adjusted amortization of intangible assets

 

 

 

 

 

Adjusted unallocated general and administrative expenses

 

7,255

 

6,071

 

4,691

 

11,946

 

11,988

Total adjusted operating income

 

$110,835

 

$76,793

 

$99,638

 

$210,473

 

$168,973

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

         

 

 

Three months ended

 

Six months ended

 

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

Net sales

 

$448,405

 

$378,874

 

$412,327

 

$860,732

 

$769,921

Net income

 

$68,036

 

$123,997

 

$61,006

 

$129,042

 

$156,655

Net income - as a % of net sales

 

15.2

%

 

32.7

%

 

14.8

%

 

15.0

%

 

20.3

%

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

14,361

 

43,235

 

8,622

 

22,983

 

48,657

Interest expense, net

 

12,792

 

9,692

 

10,238

 

23,030

 

19,351

Other (income) expense, net

 

(477)

 

(122,015)

 

878

 

401

 

(122,263)

GAAP - Operating income

 

94,712

 

54,909

 

80,744

 

175,456

 

102,400

Operating margin - as a % of net sales

 

21.1

%

 

14.5

%

 

19.6

%

 

20.4

%

 

13.3

%

Charge for fair value write-up of acquired inventory sold

 

 

695

 

361

 

361

 

2,850

Deal and transaction costs

 

503

 

1,164

 

1,431

 

1,934

 

20,300

Integration costs

 

355

 

1,264

 

48

 

403

 

4,184

Severance and restructuring costs

 

2,049

 

2,170

 

843

 

2,892

 

3,991

Amortization of intangible assets

 

13,216

 

16,591

 

16,211

 

29,427

 

35,248

Adjusted operating income

 

110,835

 

76,793

 

99,638

 

210,473

 

168,973

Adjusted operating margin - as a % of net sales

 

24.7

%

 

20.3

%

 

24.2

%

 

24.5

%

 

21.9

%

Depreciation

 

20,639

 

18,596

 

20,648

 

41,287

 

35,317

Adjusted EBITDA

 

$131,474

 

$95,389

 

$120,286

 

$251,760

 

$204,290

Adjusted EBITDA - as a % of net sales

 

29.3

%

 

25.2

%

 

29.2

%

 

29.2

%

 

26.5

%

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

 

Six months ended

 

 

June 27, 2020

 

June 29, 2019

 

March 28, 2020

 

June 27, 2020

 

June 29, 2019

GAAP net income

 

$68,036

 

$123,997

 

$61,006

 

$129,042

 

$156,655

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

Charge for fair value write-up of inventory acquired

 

 

695

 

361

 

361

 

2,850

Deal and transaction costs

 

503

 

1,164

 

1,431

 

1,934

 

20,711

Integration costs

 

355

 

1,264

 

48

 

403

 

4,184

Severance and restructuring costs

 

2,049

 

2,170

 

843

 

2,892

 

3,991

Loss on debt extinguishment and modification

 

1,470

 

 

 

1,470

 

Versum termination fee, net

 

 

(122,000)

 

 

 

(122,000)

Amortization of intangible assets

 

13,216

 

16,591

 

16,211

 

29,427

 

35,248

Tax effect of legal entity restructuring

 

 

9,398

 

 

 

9,398

Tax effect of adjustments to net income and discrete items1

 

(4,048)

 

20,153

 

(4,329)

 

(8,377)

 

10,289

Non-GAAP net income

 

$81,581

 

$53,432

 

$75,571

 

$157,152

 

$121,326

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$0.50

 

$0.91

 

$0.45

 

$0.95

 

$1.15

Effect of adjustments to net income

 

$0.10

 

$(0.52)

 

$0.11

 

$0.21

 

$(0.26)

Diluted non-GAAP earnings per common share

 

$0.60

 

$0.39

 

$0.55

 

$1.15

 

$0.89

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)

 

 

Third-Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income

 

September 26, 2020

GAAP net income

 

$70 - $78

Adjustments to net income:

 

 

Restructuring and integration costs

 

3

 

Amortization of intangible assets

 

12

 

Income tax effect

 

(3)

 

Non-GAAP net income

 

$82 - $90

 

 

Third-Quarter Outlook

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

 

September 26, 2020

Diluted earnings per common share

 

$0.51 - $0.57

Adjustments to diluted earnings per common share:

 

 

Restructuring and integration costs

 

0.03

 

Amortization of intangible assets

 

0.09

 

Income tax effect

 

(0.03)

 

Diluted non-GAAP earnings per common share

 

$0.60 to $0.66

 

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

Source: Entegris, Inc.