- Third-quarter revenue of $579 million, increased 20% from prior year
- Third-quarter GAAP diluted EPS of $0.86, increased 48%
- Third-quarter non-GAAP diluted EPS of $0.92, increased 37%
BILLERICA, Mass.–(BUSINESS WIRE)–Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s third quarter ended October 2, 2021.
Third-quarter sales were $579.5 million, an increase of 20% from the same quarter last year. Third-quarter GAAP net income was $117.5 million, or $0.86 per diluted share, which included $11.8 million of amortization of intangible assets and $1.3 million of integration costs. Non-GAAP net income was $125.4 million for the third quarter and non-GAAP earnings per diluted share was $0.92.
Bertrand Loy, Entegris’ president and chief executive officer, said: “In the third quarter, we continued to deliver on our growth strategy in a very dynamic supply chain environment. I am proud that we have been able to achieve over 23 percent organic sales growth year-to-date.”
Mr. Loy added: “While we expect some of the supply chain issues to linger, the record demand for our solution set continues and we are maintaining our outlook for the full year 2021. Looking further ahead, we have a high degree of conviction in our growth prospects, driven by positive secular trends in the semiconductor market and the accelerating pace of transition to more complex device architectures. We believe this is uniquely favorable to our company, because the capabilities we have built around process materials and materials purity will be indispensable enablers of these new chip architectures and will translate into a steadily expanding Entegris content per wafer.”
|
Quarterly Financial Results Summary |
||||||
|
(in thousands, except percentages and per share data) |
||||||
|
GAAP Results |
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|||
|
Net sales |
$579,493 |
$480,987 |
$571,352 |
|||
|
Operating income |
$139,357 |
$106,761 |
$138,889 |
|||
|
Operating margin – as a % of net sales |
24.0% |
22.2% |
24.3% |
|||
|
Net income |
$117,461 |
$79,303 |
$88,770 |
|||
|
Diluted earnings per common share |
$0.86 |
$0.58 |
$0.65 |
|||
|
Non-GAAP Results |
||||||
|
Non-GAAP adjusted operating income |
$152,696 |
$121,612 |
$151,603 |
|||
|
Non-GAAP adjusted operating margin – as a % of net sales |
26.3% |
25.3% |
26.5% |
|||
|
Non-GAAP net income |
$125,383 |
$91,460 |
$116,711 |
|||
|
Diluted non-GAAP earnings per common share |
$0.92 |
$0.67 |
$0.85 |
|||
Fourth-Quarter Outlook
For the fourth quarter ending December 31, 2021, the Company expects sales of $580 million to $600 million, net income of $109 million to $116 million and diluted earnings per common share between $0.80 and $0.85. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.87 to $0.92, reflecting net income on a non-GAAP basis in the range of $119 million to $126 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, life sciences and other high-technology industries.
Third-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the third quarter on Tuesday, October 26, 2021, at 9:00 a.m. Eastern Time. Participants should dial 800-437-2398 or +1 323-289-6576, referencing confirmation code 9127390. 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 9127390.
The call can also be accessed live and on-demand from the Entegris website. Go here 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 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, 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 the impact of the COVID-19 pandemic on the Company’s operations and markets, including supply chain issues related thereto; future period guidance; future sales, net income, diluted earnings per common share, non-GAAP diluted earnings per share, 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 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; raw material shortages, supply and labor constraints and price increases; 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; changes in government regulations of the countries in which the Company operates, including the imposition of tariffs, export controls and other trade laws and restrictions and changes to foreign and national security policy, especially as they relate to China; 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, 2020, filed on February 5, 2021, and in the Company’s other periodic filings. The Company assumes no obligation to update any forward-looking statements or information contained herein, 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 |
||
|
|
|
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
Net sales |
$579,493 |
$480,987 |
$571,352 |
|
|
Cost of sales |
315,289 |
254,987 |
305,968 |
|
|
|
Gross profit |
264,204 |
226,000 |
265,384 |
|
Selling, general and administrative expenses |
71,032 |
71,195 |
72,621 |
|
|
Engineering, research and development expenses |
41,972 |
36,295 |
41,972 |
|
|
Amortization of intangible assets |
11,843 |
11,749 |
11,902 |
|
|
|
Operating income |
139,357 |
106,761 |
138,889 |
|
Interest expense, net |
9,339 |
12,651 |
10,643 |
|
|
Other expense (income), net |
1,917 |
(1,752) |
23,560 |
|
|
|
Income before income tax expense |
128,101 |
95,862 |
104,686 |
|
Income tax expense |
10,640 |
16,559 |
15,916 |
|
|
|
Net income |
$117,461 |
$79,303 |
$88,770 |
|
|
|
|
|
|
|
|
|
|
||
|
Basic earnings per common share: |
$0.87 |
$0.59 |
$0.66 |
|
|
Diluted earnings per common share: |
$0.86 |
$0.58 |
$0.65 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Basic |
135,583 |
134,957 |
135,498 |
|
|
Diluted |
136,631 |
136,252 |
136,533 |
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
|||
|
|
|
Nine months ended |
|
|
|
|
October 2, 2021 |
September 26, 2020 |
|
Net sales |
$1,663,689 |
$1,341,719 |
|
|
Cost of sales |
899,115 |
722,869 |
|
|
|
Gross profit |
764,574 |
618,850 |
|
Selling, general and administrative expenses |
215,042 |
196,958 |
|
|
Engineering, research and development expenses |
121,692 |
98,499 |
|
|
Amortization of intangible assets |
35,616 |
41,176 |
|
|
|
Operating income |
392,224 |
282,217 |
|
Interest expense, net |
31,563 |
35,681 |
|
|
Other expense (income), net |
29,807 |
(1,351) |
|
|
|
Income before income tax expense |
330,854 |
247,887 |
|
Income tax expense |
39,947 |
39,542 |
|
|
|
Net income |
$290,907 |
$208,345 |
|
|
|
|
|
|
|
|
||
|
Basic earnings per common share: |
$2.15 |
$1.55 |
|
|
Diluted earnings per common share: |
$2.13 |
$1.53 |
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
Basic |
135,383 |
134,801 |
|
|
Diluted |
136,556 |
136,209 |
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
|||||
|
|
|
|
October 2, 2021 |
December 31, 2020 |
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$475,752 |
$580,893 |
|||
|
Trade accounts and notes receivable, net |
315,073 |
264,392 |
|||
|
Inventories, net |
|
429,016 |
323,944 |
||
|
Deferred tax charges and refundable income taxes |
21,760 |
21,136 |
|||
|
Other current assets |
34,104 |
43,892 |
|||
|
Total current assets |
1,275,705 |
1,234,257 |
|||
|
Property, plant and equipment, net |
597,630 |
525,367 |
|||
|
Other assets: |
|
|
|
|
|
|
Right-of-use assets |
56,990 |
45,924 |
|||
|
Goodwill |
749,933 |
748,037 |
|||
|
Intangible assets, net |
302,487 |
337,632 |
|||
|
Deferred tax assets and other noncurrent tax assets |
17,565 |
14,519 |
|||
|
Other |
|
11,965 |
11,960 |
||
|
Total assets |
|
$3,012,275 |
$2,917,696 |
||
|
LIABILITIES AND EQUITY |
|
||||
|
Current liabilities |
|
|
|
||
|
Accounts payable |
|
$120,611 |
$81,618 |
||
|
Accrued liabilities |
|
181,813 |
177,012 |
||
|
Income tax payable |
|
6,989 |
43,996 |
||
|
Total current liabilities |
309,413 |
302,626 |
|||
|
Long-term debt, excluding current maturities |
936,704 |
1,085,783 |
|||
|
Long-term lease liability |
|
52,486 |
39,730 |
||
|
Other liabilities |
|
102,892 |
110,063 |
||
|
Shareholders’ equity |
|
1,610,780 |
1,379,494 |
||
|
Total liabilities and equity |
$3,012,275 |
$2,917,696 |
|||
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||
|
|
Three months ended |
Nine months ended |
||
|
|
October 2, 2021 |
September 26, 2020 |
October 2, 2021 |
September 26, 2020 |
|
Operating activities: |
|
|
|
|
|
Net income |
$117,461 |
$79,303 |
$290,907 |
$208,345 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation |
22,841 |
20,777 |
67,510 |
62,064 |
|
Amortization |
11,843 |
11,749 |
35,616 |
41,176 |
|
Stock-based compensation expense |
7,467 |
5,903 |
22,124 |
16,552 |
|
Loss on extinguishment of debt and modification |
— |
908 |
23,338 |
2,378 |
|
Other |
(1,773) |
19,302 |
(1,976) |
30,727 |
|
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
|
Trade accounts and notes receivable |
(5,127) |
(23,280) |
(53,358) |
(65,367) |
|
Inventories |
(45,464) |
1,084 |
(115,187) |
(54,278) |
|
Accounts payable and accrued liabilities |
52,924 |
4,433 |
37,577 |
10,076 |
|
Income taxes payable, refundable income taxes and noncurrent taxes payable |
(8,833) |
(16,407) |
(35,275) |
(11,995) |
|
Other |
(1,835) |
(2,540) |
13,198 |
2,978 |
|
Net cash provided by operating activities |
149,504 |
101,232 |
284,474 |
242,656 |
|
Investing activities: |
|
|
|
|
|
Acquisition of property and equipment |
(48,885) |
(32,687) |
(133,986) |
(79,560) |
|
Acquisition of business, net of cash acquired |
— |
(35,500) |
(2,250) |
(111,145) |
|
Other |
4,326 |
54 |
4,416 |
265 |
|
Net cash used in investing activities |
(44,559) |
(68,133) |
(131,820) |
(190,440) |
|
Financing activities: |
|
|
|
|
|
Proceeds from revolving credit facility and long-term debt |
— |
— |
451,000 |
617,000 |
|
Payments of revolving credit facility and long-term debt |
— |
(100,000) |
(601,000) |
(468,000) |
|
Payments for debt extinguishment costs |
— |
— |
(19,080) |
— |
|
Payments for dividends |
(10,853) |
(10,794) |
(32,650) |
(32,446) |
|
Issuance of common stock |
1,055 |
3,150 |
17,872 |
4,899 |
|
Taxes paid related to net share settlement of equity awards |
(275) |
(11,836) |
(15,368) |
(24,556) |
|
Repurchase and retirement of common stock |
(20,000) |
— |
(50,000) |
(29,564) |
|
Deferred acquisition payments |
— |
— |
— |
(16,125) |
|
Other |
(486) |
(1) |
(5,287) |
(6,856) |
|
Net cash (used in) provided by financing activities |
(30,559) |
(119,481) |
(254,513) |
44,352 |
|
Effect of exchange rate changes on cash and cash equivalents |
333 |
1,687 |
(3,282) |
(507) |
|
Increase (decrease) in cash and cash equivalents |
74,719 |
(84,695) |
(105,141) |
96,061 |
|
Cash and cash equivalents at beginning of period |
401,033 |
532,667 |
580,893 |
351,911 |
|
Cash and cash equivalents at end of period |
$475,752 |
$447,972 |
$475,752 |
$447,972 |
|
Entegris, Inc. and Subsidiaries Segment Information (In thousands) (Unaudited) |
||||||
|
|
Three months ended |
|
Nine months ended |
|||
|
Net sales |
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|
Specialty Chemicals and Engineered Materials |
$176,380 |
$150,480 |
$180,366 |
|
$523,287 |
$440,907 |
|
Microcontamination Control |
225,877 |
193,541 |
227,521 |
|
660,497 |
536,560 |
|
Advanced Materials Handling |
186,200 |
144,370 |
172,502 |
|
507,243 |
386,941 |
|
Inter-segment elimination |
(8,964) |
(7,404) |
(9,037) |
|
(27,338) |
(22,689) |
|
Total net sales |
$579,493 |
$480,987 |
$571,352 |
|
$1,663,689 |
$1,341,719 |
|
|
Three months ended |
|
Nine months ended |
|||
|
Segment profit |
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|
Specialty Chemicals and Engineered Materials |
$41,091 |
$32,600 |
$44,945 |
|
$120,592 |
$98,208 |
|
Microcontamination Control |
78,399 |
64,915 |
78,132 |
|
227,097 |
177,219 |
|
Advanced Materials Handling |
40,503 |
33,266 |
42,093 |
|
114,691 |
76,707 |
|
Total segment profit |
159,993 |
130,781 |
165,170 |
|
462,380 |
352,134 |
|
Amortization of intangibles |
11,843 |
11,749 |
11,902 |
|
35,616 |
41,176 |
|
Unallocated expenses |
8,793 |
12,271 |
14,379 |
|
34,540 |
28,741 |
|
Total operating income |
$139,357 |
$106,761 |
$138,889 |
|
$392,224 |
$282,217 |
|
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Gross Profit to Adjusted Gross Profit (In thousands) (Unaudited) |
|||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|||||
|
Net sales |
$579,493 |
$480,987 |
$571,352 |
|
$1,663,689 |
$1,341,719 |
|||||
|
Gross profit-GAAP |
$264,204 |
$226,000 |
$265,384 |
|
$764,574 |
$618,850 |
|||||
|
Adjustments to gross profit: |
|
|
|
|
|
|
|||||
|
Integration costs |
— |
— |
— |
|
— |
(1,557) |
|||||
|
Severance and restructuring costs |
— |
— |
— |
|
— |
465 |
|||||
|
Charge for fair value mark-up of acquired inventory sold |
— |
229 |
— |
|
— |
590 |
|||||
|
Adjusted gross profit |
$264,204 |
$226,229 |
$265,384 |
|
$764,574 |
$618,348 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Gross margin – as a % of net sales |
45.6% |
47.0% |
46.4% |
|
46.0% |
46.1% |
|||||
|
Adjusted gross margin – as a % of net sales |
45.6% |
47.0% |
46.4% |
|
46.0% |
46.1% |
|||||
|
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Segment Profit to Adjusted Operating Income (In thousands) (Unaudited) |
||||||
|
|
Three months ended |
|
Nine months ended |
|||
|
Segment profit-GAAP |
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|
Specialty Chemicals and Engineered Materials (SCEM) |
$41,091 |
$32,600 |
$44,945 |
|
$120,592 |
$98,208 |
|
Microcontamination Control (MC) |
78,399 |
64,915 |
78,132 |
|
227,097 |
177,219 |
|
Advanced Materials Handling (AMH) |
40,503 |
33,266 |
42,093 |
|
114,691 |
76,707 |
|
Total segment profit |
159,993 |
130,781 |
165,170 |
|
462,380 |
352,134 |
|
Amortization of intangible assets |
11,843 |
11,749 |
11,902 |
|
35,616 |
41,176 |
|
Unallocated expenses |
8,793 |
12,271 |
14,379 |
|
34,540 |
28,741 |
|
Total operating income |
$139,357 |
$106,761 |
$138,889 |
|
$392,224 |
$282,217 |
|
|
Three months ended |
|
Nine months ended |
||||||||
|
Adjusted segment profit |
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|||||
|
SCEM segment profit |
$41,091 |
$32,600 |
$44,945 |
|
$120,592 |
$98,208 |
|||||
|
Integration costs |
— |
— |
— |
|
— |
(1,557) |
|||||
|
Severance and restructuring costs |
69 |
277 |
51 |
|
167 |
906 |
|||||
|
Charge for fair value write-up of acquired inventory sold |
— |
— |
— |
|
— |
235 |
|||||
|
SCEM adjusted segment profit |
$41,160 |
$32,877 |
$44,996 |
|
$120,759 |
$97,792 |
|||||
|
|
|
|
|
|
|
|
|||||
|
MC segment profit |
$78,399 |
$64,915 |
$78,132 |
|
$227,097 |
$177,219 |
|||||
|
Severance and restructuring costs |
75 |
301 |
55 |
|
181 |
985 |
|||||
|
Charge for fair value write-up of acquired inventory sold |
— |
— |
— |
|
— |
126 |
|||||
|
MC adjusted segment profit |
$78,474 |
$65,216 |
$78,187 |
|
$227,278 |
$178,330 |
|||||
|
|
|
|
|
|
|
|
|||||
|
AMH segment profit |
$40,503 |
$33,266 |
$42,093 |
|
$114,691 |
$76,707 |
|||||
|
Severance and restructuring costs |
52 |
213 |
38 |
|
127 |
1,162 |
|||||
|
Charge for fair value write-up of acquired inventory sold |
— |
229 |
— |
|
— |
229 |
|||||
|
AMH adjusted segment profit |
$40,555 |
$33,708 |
$42,131 |
|
$114,818 |
$78,098 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Unallocated general and administrative expenses |
$8,793 |
$12,271 |
$14,379 |
|
$34,540 |
$28,741 |
|||||
|
Unallocated deal and integration costs |
(1,290) |
(1,902) |
(632) |
|
(3,966) |
(5,796) |
|||||
|
Unallocated severance and restructuring costs |
(10) |
(180) |
(36) |
|
(54) |
(810) |
|||||
|
Adjusted unallocated general and administrative expenses |
$7,493 |
$10,189 |
$13,711 |
|
$30,520 |
$22,135 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Total adjusted segment profit |
$160,189 |
$131,801 |
$165,314 |
|
$462,855 |
$354,220 |
|||||
|
Adjusted amortization of intangible assets |
— |
— |
— |
|
— |
— |
|||||
|
Adjusted unallocated general and administrative expenses |
7,493 |
10,189 |
13,711 |
|
30,520 |
22,135 |
|||||
|
Total adjusted operating income |
$152,696 |
$121,612 |
$151,603 |
|
$432,335 |
$332,085 |
|||||
|
|
|||||||||||
|
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA (In thousands) (Unaudited) |
|||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|||||
|
Net sales |
$579,493 |
$480,987 |
$571,352 |
|
$1,663,689 |
$1,341,719 |
|||||
|
Net income |
$117,461 |
$79,303 |
$88,770 |
|
$290,907 |
$208,345 |
|||||
|
Net income – as a % of net sales |
20.3% |
16.5% |
15.5% |
|
17.5% |
15.5% |
|||||
|
Adjustments to net income: |
|
|
|
|
|
|
|||||
|
Income tax expense |
10,640 |
16,559 |
15,916 |
|
39,947 |
39,542 |
|||||
|
Interest expense, net |
9,339 |
12,651 |
10,643 |
|
31,563 |
35,681 |
|||||
|
Other expense (income), net |
1,917 |
(1,752) |
23,560 |
|
29,807 |
(1,351) |
|||||
|
GAAP – Operating income |
139,357 |
106,761 |
138,889 |
|
392,224 |
282,217 |
|||||
|
Operating margin – as a % of net sales |
24.0% |
22.2% |
24.3% |
|
23.6% |
21.0% |
|||||
|
Charge for fair value write-up of acquired inventory sold |
— |
229 |
— |
|
— |
590 |
|||||
|
Deal and transaction costs |
— |
642 |
— |
|
— |
2,576 |
|||||
|
Integration costs |
1,290 |
1,260 |
632 |
|
3,966 |
1,663 |
|||||
|
Severance and restructuring costs |
206 |
971 |
180 |
|
529 |
3,863 |
|||||
|
Amortization of intangible assets |
11,843 |
11,749 |
11,902 |
|
35,616 |
41,176 |
|||||
|
Adjusted operating income |
152,696 |
121,612 |
151,603 |
|
432,335 |
332,085 |
|||||
|
Adjusted operating margin – as a % of net sales |
26.3% |
25.3% |
26.5% |
|
26.0% |
24.8% |
|||||
|
Depreciation |
22,841 |
20,777 |
22,574 |
|
67,510 |
62,064 |
|||||
|
Adjusted EBITDA |
$175,537 |
$142,389 |
$174,177 |
|
$499,845 |
$394,149 |
|||||
|
Adjusted EBITDA – as a % of net sales |
30.3% |
29.6% |
30.5% |
|
30.0% |
29.4% |
|||||
|
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 |
|
Nine months ended |
|||
|
|
October 2, 2021 |
September 26, 2020 |
July 3, 2021 |
|
October 2, 2021 |
September 26, 2020 |
|
GAAP net income |
$117,461 |
$79,303 |
$88,770 |
|
$290,907 |
$208,345 |
|
Adjustments to net income: |
|
|
|
|
|
|
|
Charge for fair value write-up of inventory acquired |
— |
229 |
— |
|
— |
590 |
|
Deal and transaction costs |
— |
642 |
— |
|
— |
2,576 |
|
Integration costs |
1,290 |
1,260 |
632 |
|
3,966 |
1,663 |
|
Severance and restructuring costs |
206 |
971 |
180 |
|
529 |
3,863 |
|
Loss on extinguishment of debt and modification |
— |
908 |
23,338 |
|
23,338 |
2,378 |
|
Amortization of intangible assets |
11,843 |
11,749 |
11,902 |
|
35,616 |
41,176 |
|
Tax effect of adjustments to net income and discrete items1 |
(5,417) |
(3,602) |
(8,111) |
|
(16,749) |
(11,979) |
|
Non-GAAP net income |
$125,383 |
$91,460 |
$116,711 |
|
$337,607 |
$248,612 |
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
$0.86 |
$0.58 |
$0.65 |
|
$2.13 |
$1.53 |
|
Effect of adjustments to net income |
$0.06 |
$0.09 |
$0.20 |
|
$0.34 |
$0.30 |
|
Diluted non-GAAP earnings per common share |
$0.92 |
$0.67 |
$0.85 |
|
$2.47 |
$1.83 |
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) |
||
|
|
Fourth-Quarter Outlook |
|
|
Reconciliation GAAP net income to non-GAAP net income |
December 31, 2021 |
|
|
GAAP net income |
$109 – $116 |
|
|
Adjustments to net income: |
|
|
|
Restructuring and integration costs |
2 |
|
|
Amortization of intangible assets |
10 |
|
|
Income tax effect |
(2) |
|
|
Non-GAAP net income |
$119 – $126 |
|
Contacts
Bill Seymour
VP of Investor Relations
T + 1 952 556 1844
bill.seymour@entegris.com
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