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8-K - FORM 8-K - ENTEGRIS INCd524228d8k.htm

Exhibit 99.1

Entegris Reports First-Quarter Sales of 165 Million

Adjusted Operating Margin Improves to 13.7 Percent; Non-GAAP EPS of $0.13

BILLERICA, Mass., April 23, 2013 – Entegris, Inc. (Nasdaq: ENTG) today reported its financial results for the Company’s first quarter ended March 30, 2013.

The Company recorded first-quarter sales of $165.1 million, which compared to $167.8 million in the fourth quarter of 2012 and $175.4 million in the first quarter a year ago. First-quarter operating margin was 12.3 percent, with adjusted operating margin of 13.7 percent, excluding amortization of intangible assets of $2.3 million. Net income for the first quarter was $16.4 million, or $0.12 per share. Non-GAAP earnings per share of $0.13 in the first quarter of 2013 compared to $0.09 in the fourth quarter of 2012 and $0.14 in the first quarter of 2012. A reconciliation table of GAAP to non-GAAP earnings per share and operating margin is contained in this press release.

Bertrand Loy, president and chief executive officer, said: “The first quarter sales trends were consistent with our expectations. Sales declined modestly from the fourth quarter reflecting the seasonally soft semiconductor production in Asia and weakness in PC-related semiconductor demand, as well as a negative impact from foreign currency. Sales of our Contamination Control Solutions products declined 6 percent sequentially; sales of Microenvironment products grew 3 percent, and sales of Specialty Materials products were up 14 percent.”

“On an operating basis, we executed well. We achieved an adjusted operating margin of 13.7 percent due to an improved gross margin and tight control of operating expenses.”

For the fiscal second quarter ending June 30, 2013, the Company expects sales to be flat to up five percent sequentially, or approximately $165 million to $173 million, and EPS to range between $0.09 to $0.11 per share. On a non-GAAP basis, EPS is expected to range from $0.10 to $0.12 per share, which reflects Non-GAAP net income in the range of $14 million to $17 million, which is adjusted for expected amortization expense of $2.6 million or $0.01 per share.

First-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the first quarter on Tuesday, April 23, 2013, at 10:00 a.m. Eastern Time. Participants should dial 719-325-2402 or toll-free 888-510-1765, referencing confirmation code 6780614. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. A replay of the call will be available starting April 23 at 1:00 p.m. (ET) until June 6, 2013. The replay can be accessed by using passcode 6780614 after dialing 719-457-0820 or 888-203-1112. A live and on-demand 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-technology 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.


NON-GAAP INFORMATION

The Company’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA and Adjusted Operating Income together with related measures thereof, and non-GAAP EPS, 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, Adjusted Operating Income, and non-GAAP EPS 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 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 Owning Our Securities” in Item 1A of our Annual Report on Form 10–K for the fiscal year ended December 31, 2012, 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  
     March 30,
2013
    March 31,
2012
    December 31,
2012
 

Net sales

   $ 165,070      $ 175,403      $ 167,818   

Cost of sales

     97,942        99,159        101,357   
  

 

 

   

 

 

   

 

 

 

Gross profit

     67,128        76,244        66,461   

Selling, general and administrative expenses

     32,421        35,048        37,273   

Engineering, research and development expenses

     12,173        11,989        12,911   

Amortization of intangible assets

     2,287        2,450        2,335   
  

 

 

   

 

 

   

 

 

 

Operating income

     20,247        26,757        13,942   

Other income, net

     (1,348     (164     (895
  

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in affiliates

     21,595        26,921        14,837   

Income tax expense

     5,198        9,065        3,581   

Equity in net income of affiliates

     —          (3     —     
  

 

 

   

 

 

   

 

 

 

Net income

   $ 16,397      $ 17,859      $ 11,256   
  

 

 

   

 

 

   

 

 

 

Basic net income per common share:

      

Diluted net income per common share:

   $ 0.12      $ 0.13      $ 0.08   
   $ 0.12      $ 0.13      $ 0.08   

Weighted average shares outstanding:

      

Basic

     139,025        136,603        137,867   

Diluted

     139,831        138,046        138,907   


Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

                                                             
     March 30, 2013     December 31, 2012  

ASSETS

    

Cash and cash equivalents

   $ 338,846      $ 330,419   

Short-term investments

     —          19,995   

Accounts receivable, net

     103,573        94,016   

Inventories

     100,246        99,144   

Deferred tax assets, deferred tax charges and refundable income taxes

     13,570        20,201   

Other current assets and assets held for sale

     13,503        15,549   
  

 

 

   

 

 

 

Total current assets

     569,738        579,324   

Property, plant and equipment, net

     164,585        157,021   

Intangible assets

     44,791        47,207   

Deferred tax assets – non-current

     16,904        17,167   

Other assets

     9,831        10,825   
  

 

 

   

 

 

 

Total assets

   $ 805,849      $ 811,544   
  

 

 

   

 

 

 

Accounts payable

   $ 38,588      $ 36,341   

Accrued liabilities

     41,473        51,263   

Income tax payable and deferred tax liabilities

     1,906        5,659   
  

 

 

   

 

 

 

Total current liabilities

     81,967        93,263   

Other liabilities

     20,715        23,482   

Shareholders’ equity

     703,167        694,799   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 850,849      $ 811,544   
  

 

 

   

 

 

 


Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Three Months Ended  
     March 30, 2013     March 31, 2012  

Operating activities:

    

Net income

   $ 16,397      $ 17,859   

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

    

Depreciation

     7,296        6,487   

Amortization

     2,287        2,450   

Stock-based compensation expense

     1,688        1,763   

Other

     2,043        2,161   

Changes in operating assets and liabilities:

    

Trade accounts and notes receivable

     (12,893     (12,811

Inventories

     (3,758     (7,506

Accounts payable and accrued liabilities

     (7,015     (279

Income taxes payable and refundable income taxes

     318        (4,678

Other

     1,072        (5,072
  

 

 

   

 

 

 

Net cash provided by operating activities

     7,435        374   
  

 

 

   

 

 

 

Investing activities:

    

Acquisition of property and equipment

     (16,140     (10,605

Proceeds from maturities of short-term investments

     20,000        —     

Other

     12        3   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     3,872        (10,602
  

 

 

   

 

 

 

Financing activities:

    

Issuance of common stock

     4,873        3,336   

Repurchase and retirement of common stock

     (3,777     —     

Other

     741        290   
  

 

 

   

 

 

 

Net cash provided by financing activities

     1,837        3,626   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     (4,717     (60
  

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     8,427        (6,662

Cash and cash equivalents at beginning of period

     330,419        273,593   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 338,846      $ 266,931   
  

 

 

   

 

 

 


Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

                                                                    
     Three Months Ended  

Net sales

   March 30,
2013
    March 31,
2012
    December 31,
2012
 

Contamination Control Solutions

   $ 103,961      $ 115,552      $ 110,266   

Microenvironments

     44,132        40,705        42,684   

Specialty Materials

     16,977        19,146        14,868   
  

 

 

   

 

 

   

 

 

 

Total net sales

   $ 165,070      $ 175,403      $ 167,818   
  

 

 

   

 

 

   

 

 

 
     Three Months Ended  

Segment profit

   March 30,
2013
    March 31,
2012
    December 31,
2012
 

Contamination Control Solutions

   $ 22,078      $ 32,069      $ 22,438   

Microenvironments

     9,325        5,528        6,401   

Specialty Materials

     2,216        4,668        1,046   
  

 

 

   

 

 

   

 

 

 

Total segment profit

     33,619        42,265        29,885   

Amortization of intangibles

     (2,287     (2,450     (2,335

Unallocated expenses

     (11,085     (13,058     (13,608
  

 

 

   

 

 

   

 

 

 

Total operating income

   $ 20,247      $ 26,757      $ 13,942   
  

 

 

   

 

 

   

 

 

 


Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

 

                                                                    
     Three Months Ended  
     March 30,
2013
    March 31,
2012
    December 31,
2012
 

Net sales

   $ 165,070      $ 175,403      $ 167,818   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 16,397      $ 17,859      $ 11,256   

Adjustments to net income:

      

Equity in net income of affiliates

     —          (3     —     

Income tax expense

     5,198        9,065        3,581   

Other income, net

     (1,348     (164     (895
  

 

 

   

 

 

   

 

 

 

GAAP – Operating income

     20,247        26,757        13,942   

Amortization of intangible assets

     2,287        2,450        2,335   
  

 

 

   

 

 

   

 

 

 

Adjusted operating income

     22,534        29,207        16,277   

Depreciation

     7,296        6,487        7,151   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 29,830      $ 35,694      $ 23,428   
  

 

 

   

 

 

   

 

 

 

Adjusted operating margin

     13.7     16.7     9.7

Adjusted EBITDA – as a % of net sales

     18.1     20.3     14.0


Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Earnings per Share

(In thousands)

(Unaudited)

 

                                                                    
     Three Months Ended  
     March 30,
2013
    March 31,
2012
    December 31,
2012
 

GAAP net income

   $ 16,397      $ 17,859      $ 11,256   

Adjustments to net income:

      

Amortization of intangible assets

     2,287        2,450        2,335   

Tax effect of adjustments to net income

     (824     (885     (841
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 17,860      $ 19,424      $ 12,750   
  

 

 

   

 

 

   

 

 

 

Diluted earnings per common share:

   $ 0.12      $ 0.13      $ 0.08   

Effect of adjustments to net income

   $ 0.01      $ 0.01      $ 0.01   

Diluted non-GAAP earnings per common share:

   $ 0.13      $ 0.14      $ 0.09   

###  END  ###