News Release Details
Entegris Reports Third Quarter Results
The Company recorded third-quarter sales of
For the first nine months of 2009, sales were
Gideon Argov, president and chief executive officer, said: "We saw continued positive trends through the third quarter in both the unit-driven and capital-driven sides of our business. Higher fab utilization at many of our semiconductor customers and capital spending in the industry to implement technology process transitions led to higher demand across our product lines. Business trends in our other markets such as data storage, flat panel display, and LED, were also positive.
"Even with third-quarter sales well below historical levels, we achieved an operating margin of 6 percent of sales, excluding the impact of amortization and restructuring expenses, and
At the end of the third quarter, total bank debt was
Segment Information (table of results contained at the end of this release)
Contamination Control Solutions sales increased 38 percent sequentially from the second quarter of 2009, driven by demand for filtration products, chemical containers, and liquid dispense pumps.Microenvironments product sales increased 24 percent sequentially from the second quarter of 2009. The growth reflected demand for shippers needed to support increased production in the semiconductor and data storage industries, as well as demand for wafer transport products.
Specialty Materials sales increased 42 percent sequentially from the second quarter of 2009. The increase was due to higher demand for semiconductor-related graphite and silicon carbide products and a partial recovery of demand for certain industrial products.
Third-Quarter Results Conference Call Details
About
The
Non-GAAP Information
Adjusted EBITDA margin and non-GAAP operating margin, together with the related measures of Adjusted EBITDA and non-GAAP operating income, 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 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 margin and non-GAAP operating margin 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, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three months ended ------------------------------- Sept. 26, Sept. 27, June 27, 2009 2008 2009 ------------------------------- Net sales $ 110,706 $ 145,789 $ 82,576 Cost of sales 65,929 90,391 58,846 ------------------------------- Gross profit 44,777 55,398 23,730 Selling, general and administrative expenses 29,175 35,373 25,685 Engineering, research and development expenses 8,575 10,284 7,843 Amortization of intangible assets 4,723 4,858 4,931 Impairment of goodwill -- 379,810 -- Restructuring charges 2,368 3,332 5,452 ------------------------------- Operating loss (64) (378,259) (20,181) Interest expense, net 2,681 614 2,577 Other expense, net 4,114 947 1,537 ------------------------------- Loss before income taxes (6,859) (379,820) (24,295) Income tax expense (benefit) 623 12,897 (2,252) Equity in net loss of affiliates 132 195 449 ------------------------------- Loss from continuing operations (7,614) (392,912) (22,492) Loss from discontinued operations, net of taxes -- (90) -- ------------------------------- Net loss (7,614) (393,002) (22,492) Net loss attributable to the noncontrolling interest 6 -- -- ------------------------------- Net loss attributable to the Company $ (7,608) $(393,002) $ (22,492) =============================== Basic loss per common share: Continuing operations ($ 0.07) $ (3.51) ($ 0.20) Net loss per common share ($ 0.07) $ (3.52) ($ 0.20) Diluted loss per common share: Continuing operations ($ 0.07) $ (3.51) ($ 0.20) Net loss per common share ($ 0.07) $ (3.52) ($ 0.20) Weighted average shares outstanding: Basic 115,023 111,796 112,694 Diluted 115,023 111,796 112,694
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Nine months ended -------------------- Sept. 26, Sept. 27, 2009 2008 -------------------- Net sales $ 252,320 $ 441,963 Cost of sales 178,795 262,690 -------------------- Gross profit 73,525 179,273 Selling, general and administrative expenses 84,581 115,800 Engineering, research and development expenses 25,322 31,147 Amortization of intangible assets 14,635 14,497 Impairment of goodwill -- 379,810 Restructuring charges 12,454 3,332 -------------------- Operating loss (63,467) (365,313) Interest expense, net 7,105 682 Other expense, net 429 1,823 -------------------- Loss before income taxes (71,001) (367,818) Income tax (benefit) expense (4,226) 16,312 Equity in net loss of affiliates 1,076 49 -------------------- Loss from continuing operations (67,851) (384,179) Loss from discontinued operations, net of taxes -- (1,025) -------------------- Net loss (67,851) (385,204) Net loss attributable to the noncontrolling interest 6 -- -------------------- Net loss attributable to the Company $ (67,845) $(385,204) ==================== Basic loss per common share: Continuing operations $ (0.60) $ (3.40) Discontinued operations -- $ (0.01) Net loss per common share $ (0.60) $ (3.41) Diluted loss per common share: Continuing operations $ (0.60) $ (3.40) Discontinued operations -- $ (0.01) Net loss per common share $ (0.60) $ (3.41) Weighted average shares outstanding: Basic 113,355 112,942 Diluted 113,355 112,942
Entegris, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) Sept. 26, Dec. 31, 2009 2008 -------- -------- ASSETS Cash and cash equivalents $ 78,376 $115,033 Accounts receivable 80,062 70,535 Inventories 84,116 102,189 Deferred tax assets, deferred tax charges and refundable income taxes 11,001 14,661 Other current assets and assets held for sale 6,615 10,710 -------- -------- Total current assets 260,170 313,128 Property, plant and equipment, net 146,726 159,738 Intangible assets 82,788 93,139 Deferred tax assets - non-current 12,126 13,315 Other assets 16,219 18,504 -------- -------- Total assets $518,029 $597,824 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current maturities of long-term debt 11,464 $ 13,166 Short-term borrowings 7,001 -- Accounts payable 27,044 21,782 Accrued liabilities 29,475 36,971 Income tax payable and deferred tax liabilities 5,694 7,437 -------- -------- Total current liabilities 80,678 79,356 Long-term debt, less current maturities 73,135 150,516 Other liabilities 26,172 31,782 Shareholders' equity 338,044 336,170 -------- -------- Total liabilities and shareholders' equity $518,029 $597,824 ======== ========
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three months ended Nine months ended ---------------------------------------------------------------------- Sept. 26, Sept. 27, Sept. 26, Sept. 27, 2009 2008 2009 2008 ---------------------------------------------------------------------- Operating activities: Net loss $ (7,614) $(393,002) $ (67,851) $(385,204) Adjustments to reconcile net loss to net cash used in operating activities: Loss from discontinued operations -- 90 -- 1,025 Depreciation 7,456 6,476 23,628 18,776 Amortization 4,723 4,858 14,635 14,497 Stock-based compensation expense 2,120 1,335 6,299 5,558 Charge for fair value mark-up of acquired inventory 51 5,718 4,116 5,718 Impairment of goodwill -- 379,810 -- 379,810 Other 1,662 13,076 3,659 17,527 Changes in operating assets and liabilities, excluding effects of acquisitions: Trade accounts receivable and notes receivable (17,271) 6,039 (7,486) 14,169 Inventories (735) (539) 10,715 (884) Accounts payable and accrued liabilities 6,211 (5,632) 1,783 (9,723) Income taxes payable and refundable income taxes (1,803) (10,008) 2,037 (22,230) Other 4,406 3,524 1,340 2,687 --------------------------------------------------------------------- Net cash (used in) provided by operating activities (794) 11,745 (7,125) 41,726 --------------------------------------------------------------------- Investing activities: Acquisition of property and equipment (1,122) (7,399) (11,521) (19,194) Acquisition of businesses, net of cash acquired 493 (161,973) 493 (161,973) Purchase of equity investment -- -- -- (10,982) Other 2,315 110 2,550 1,029 --------------------------------------------------------------------- Net cash provided by (used in) investing activities 1,686 (169,262) (8,478) (191,120) --------------------------------------------------------------------- Financing activities: Payments on short-term borrowings and long-term debt (221,164) (29,108) (528,116) (48,406) Proceeds from short-term and long-term borrowings 156,212 133,000 452,722 133,000 Repurchase and retirement of common stock -- (4,492) -- (28,895) Proceeds from stock offering 56,687 -- 56,687 -- Issuance of common stock 490 902 1,061 3,088 Payments for debt issuance costs (138) -- (3,638) (622) --------------------------------------------------------------------- Net cash (used in) provided by financing activities (7,913) 100,302 (21,284) 58,165 --------------------------------------------------------------------- Net cash (used in) provided by discontinued operations -- (2) -- 392 --------------------------------------------------------------------- Effect of exchange rate changes on cash 1,331 (1,230) 230 4,143 --------------------------------------------------------------------- Decrease in cash and cash equivalents (5,690) (58,447) (36,657) (86,694) Cash and cash equivalents at beginning of period 84,066 132,408 115,033 160,655 --------------------------------------------------------------------- Cash and cash equivalents at end of period $ 78,376 $ 73,961 $ 78,376 $ 73,961 =====================================================================
Entegris, Inc. and Subsidiaries Segment Information (In thousands) (Unaudited) Three Months Ended ------------------------------------- Net sales Sept. 26, Sept. 27, June 27, 2009 2008 2009 ------------------------------------------------------------------ Contamination Control Solutions $ 65,649 $ 85,806 $ 47,541 Microenvironments 32,445 47,630 26,176 Specialty Materials 12,612 12,353 8,859 --------- --------- --------- Total net sales $ 110,706 $ 145,789 $ 82,576 ========= ========= ========= Three Months Ended -------------------------------------- Segment profit (loss) Sept. 26, Sept. 27, June 27, 2009 2008 2009 ------------------------------------------------------------------ Contamination Control Solutions $ 12,261 $ 20,911 $ 3,181 Microenvironments 5,186 6,855 (155) Specialty Materials 1,369 3,832 (1,047) --------- --------- --------- Total segment profit $ 18,816 $ 31,598 $ 1,979 Amortization of intangibles, impairment of goodwill, and restructuring charges (7,091) (388,000) (10,383) Unallocated expenses (11,789) (21,857) (11,777) --------- --------- --------- Total operating loss $ (64) $(378,259) $ (20,181) ========= ========= ========= Entegris, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Operating Income (Loss) and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended ------------------------------------- Sept. 26, Sept. 27, June 27, 2009 2008 2009 ------------------------------------------------------------------ Net sales $ 110,706 $ 145,789 $ 82,576 ------------------------------------------------------------------ GAAP - Operating loss $ (64) $(378,259) $ (20,181) Restructuring costs 2,368 3,332 5,452 Impairment of goodwill -- 379,810 -- Amortization of intangible assets 4,723 4,858 4,931 --------- --------- --------- Non-GAAP operating income (loss) 7,027 9,741 (9,798) Depreciation 7,456 6,476 7,903 --------- --------- --------- Adjusted EBITDA $ 14,483 $ 16,217 $ (1,895) ========= ========= ========= Non-GAAP operating margin 6.3% 6.7% (11.9%) Adjusted EBITDA - as a % of net sales 13.1% 11.1% (2.3%) ------------------------------------------------------------------
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