News Release Details
Entegris Reports Second Quarter Results
CHASKA, Minn., Jul 22, 2009 (GlobeNewswire via COMTEX) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the fiscal second quarter ended June 27, 2009.
The Company recorded second-quarter sales of $82.6 million and a net loss of $22.5 million, or $0.20 per share. These results included amortization of intangible assets of $4.9 million and restructuring charges of $5.5 million. The company reported sales of $59.0 million in the first quarter ended March 29, 2009 and sales of $147.9 million in the second quarter a year ago.
Gideon Argov, president and chief executive officer, said: "Our second-quarter results rebounded sharply from the severely depressed levels we experienced in the first quarter of this year, driven primarily by increased demand for our unit-driven liquid filtration and wafer shipping products used in the manufacturing of semiconductors and other electronics products.
"The higher sales, combined with the permanent and temporary cost reductions we implemented in the first quarter, contributed to a significant narrowing of our second-quarter operating loss. Our EBITDA loss for purposes of our bank covenants improved from $15.9 million in the first quarter to $4.3 million in the second quarter, and was well below the $45 million cumulative EBITDA loss allowed for under our bank covenants. We expect that with current business trends we are in the position to generate positive EBITDA beginning in the third quarter," Argov said.
In the second quarter, total funded debt was $151.7 million, reflecting a decrease of $13.4 million from the first quarter. The Company's ending cash balance was $84.1 million.
Segment Information (table of results contained at the end of this release)
Contamination Control Solutions sales increased 39 percent sequentially from the first quarter of 2009. The growth reflected increased demand for liquid filtration products and chemical containers, which was driven by increased semiconductor fab utilization rates, particularly in Asia.
Microenvironments product sales increased 78 percent sequentially from the first quarter of 2009. The growth was primarily due to improved demand for wafer shippers needed to support increased production in the semiconductor industry.
Entegris Specialty Materials sales decreased 12 percent sequentially from the first quarter of 2009. The decline related to softening in the non-semiconductor portions of the Entegris Specialty Materials business, which are sensitive to broader industrial market demand trends that have lagged the second-quarter upturn in the unit-driven semiconductor business.
Second-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the second quarter on Wednesday, July 22, 2009, at 9:00 a.m. Eastern Time. Participants should dial 1-866-290-0920 (for domestic callers) or 1-913-312-0720 (for callers outside the U.S.). A replay of the call can be accessed at 1-719-457-0820 using passcode 4554427. A 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
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 Securities Markets and Ownership of Our Securities" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, 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 27, June 28, March 29,
2009 2008 2009
----------------------------
Net sales $82,576 $147,947 $59,038
Cost of sales 58,846 88,060 49,955
Amortization of acquired inventory
step-up to fair value -- -- 4,065
----------------------------
Gross profit 23,730 59,887 5,018
Selling, general and administrative
expenses 25,685 37,105 29,721
Engineering, research and development
expenses 7,843 10,362 8,904
Amortization of intangible assets 4,931 4,552 4,981
Restructuring charges 5,452 -- 4,634
----------------------------
Operating (loss) income (20,181) 7,868 (43,222)
Interest expense (income), net 2,577 81 1,847
Other (income) expense, net 1,537 249 (5,222)
----------------------------
(Loss) income before income taxes (24,295) 7,538 (39,847)
Income tax (benefit) expense (2,252) 2,021 (2,598)
Equity in net loss (earnings) of
affiliates 449 (8) 496
----------------------------
(Loss) income from continuing
operations (22,492) 5,525 (37,745)
Loss from discontinued operations, net
of taxes -- (592) --
----------------------------
Net (loss) income ($22,492) $4,933 ($37,745)
============================
Basic (loss) income per common share:
Continuing operations ($0.20) $0.05 ($0.34)
Discontinued operations -- (0.01) --
Net (loss) income per common share ($0.20) $0.04 ($0.34)
Diluted (loss) income per common share:
Continuing operations ($0.20) $0.05 ($0.34)
Discontinued operations -- (0.01) --
Net (loss) income per common share ($0.20) $0.04 ($0.34)
Weighted average shares outstanding:
Basic 112,694 114,382 112,348
Diluted 112,694 114,865 112,348
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Six months ended
------------------
June 27, June 28,
2009 2008
------------------
Net sales $141,614 $296,174
Cost of sales 108,801 172,299
Amortization of acquired inventory step-up to
fair value 4,065 --
------------------
Gross profit 28,748 123,875
Selling, general and administrative expenses 55,406 80,427
Engineering, research and development expenses 16,747 20,863
Amortization of intangible assets 9,912 9,639
Restructuring charges 10,086 --
------------------
Operating (loss) income (63,403) 12,946
Interest expense (income), net 4,425 68
Other (income) expense, net (3,686) 876
------------------
(Loss) income before income taxes (64,142) 12,002
Income tax (benefit) expense (4,850) 3,415
Equity in net loss (earnings) of affiliates 945 (146)
------------------
(Loss) income from continuing operations (60,237) 8,733
Loss from discontinued operations, net of taxes -- (935)
------------------
Net (loss) income $(60,237) $7,798
==================
Basic (loss) income per common share:
Continuing operations $(0.54) $0.08
Discontinued operations -- $(0.01)
Net (loss) income per common share $(0.54) $0.07
Diluted (loss) income per common share:
Continuing operations $(0.54) $0.08
Discontinued operations -- $(0.01)
Net (loss) income per common share $(0.54) $0.07
Weighted average shares outstanding:
Basic 112,521 115,075
Diluted 112,521 115,560
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 27, December 31,
2009 2008
------------ ------------
ASSETS
Cash and cash equivalents $84,066 $115,033
Accounts receivable 58,863 70,535
Inventories 81,924 102,189
Deferred tax assets, deferred tax charges
and refundable income taxes 11,862 14,661
Other current assets and assets held for
sale 8,476 10,710
------------ ------------
Total current assets 245,191 313,128
Property, plant and equipment, net 146,393 159,738
Intangible assets 83,258 93,139
Deferred tax assets - non-current 12,397 13,315
Other assets 19,508 18,504
------------ ------------
Total assets $506,747 $597,824
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt 17,090 $13,166
Short-term borrowings 4,183 --
Accounts payable 18,242 21,782
Accrued liabilities 30,665 36,971
Income tax payable and deferred
tax liabilities 7,161 7,437
------------ ------------
Total current liabilities 77,341 79,356
Long-term debt, less current maturities 130,394 150,516
Other liabilities 25,242 31,782
Shareholders' equity 273,770 336,170
------------ ------------
Total liabilities and shareholders'
equity $506,747 $597,824
============ ============
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended Six months ended
---------------------------------------------------------------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
---------------------------------------------------------------------
Operating activities:
Net (loss) income $(22,492) $4,933 $(60,237) $7,798
Adjustments to reconcile net
(loss) income to net cash used
in operating activities:
Loss from discontinued
operations -- 592 -- 935
Depreciation 7,903 6,084 16,173 12,300
Amortization 4,931 4,552 9,912 9,639
Stock-based compensation
expense 2,369 2,323 4,179 4,223
Charge for fair value mark-up
of acquired inventory -- -- 4,065 --
Other (2,474) 3,022 1,997 4,451
Changes in operating assets and
liabilities, excluding effects
of acquisitions:
Trade accounts receivable and
notes receivable (6,381) 5,511 9,786 8,130
Inventories 9,855 2,467 11,450 (345)
Accounts payable and accrued
liabilities (1,595) 1,648 (4,429) (4,091)
Income taxes payable and
refundable income taxes 9,693 340 3,840 (12,222)
Other 1,404 (1,098) (3,068) (837)
---------------------------------------------------------------------
Net cash provided by (used in)
operating activities 3,213 30,374 (6,332) 29,981
---------------------------------------------------------------------
Investing activities:
Acquisition of property and
equipment (2,459) (5,226) (10,399) (11,795)
Purchase of equity investment -- (2,982) -- (10,982)
Other 185 829 236 919
---------------------------------------------------------------------
Net cash used in investing
activities (2,274) (7,379) (10,163) (21,858)
---------------------------------------------------------------------
Financing activities:
Payments on short-term
borrowings and long-term debt (139,018) (14,523) (306,951) (19,298)
Proceeds from short-term and
long-term borrowings 125,000 -- 296,510 --
Repurchase and retirement of
common stock -- (12,308) -- (24,403)
Issuance of common stock -- 466 570 2,186
Payments for debt issuance
costs (36) (13) (3,500) (622)
---------------------------------------------------------------------
Net cash used in financing
activities (14,054) (26,378) (13,371) (42,137)
---------------------------------------------------------------------
Net cash provided by
discontinued operations -- 1,061 -- 394
---------------------------------------------------------------------
Effect of exchange rate changes
on cash 1,731 (4,163) (1,101) 5,373
---------------------------------------------------------------------
Decrease in cash and cash
equivalents (11,384) (6,485) (30,967) (28,247)
Cash and cash equivalents at
beginning of period 95,450 138,893 115,033 160,655
---------------------------------------------------------------------
Cash and cash equivalents at
end of period $84,066 $132,408 $84,066 $132,408
=====================================================================
Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
Net Sales Three Months Ended
-----------------------------
June 27, June 28, March 29,
2009 2008 2009
-----------------------------
Contamination Control Solutions $47,541 $87,262 $34,287
Microenvironments 26,176 58,691 14,682
Entegris Specialty Materials 8,859 1,994 10,069
Total $82,576 $147,947 $59,038
----------------------------------------------------------------------
Segment (loss) profit Three Months Ended
-----------------------------
June 27, June 28, March 29,
2009 2008 2009
-----------------------------
Contamination Control Solutions $3,181 $20,584 $(8,259)
Microenvironments (155) 10,651 (10,048)
Entegris Specialty Materials (1,047) 683 617
Amortization of intangibles,
restructuring (22,160) (24,050) (25,532)
and other charges, and unallocated
expense
Operating (loss) income $(20,181) $7,868 $(43,222)
----------------------------------------------------------------------
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Entegris, Inc.
Entegris, Inc. Steve Cantor, VP of Corporate Relations 978-436-6750 irelations@entegris.com