Attached files
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| 8-K - FORM 8-K - ENTEGRIS INC | d678999d8k.htm |
Exhibit 99.1
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||||||
| December 31, 2013 |
September 28, 2013 |
December 31, 2012 |
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| Net sales |
$ | 186,260 | $ | 164,585 | $ | 167,818 | ||||||
| Cost of sales |
106,876 | 94,453 | 101,357 | |||||||||
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| Gross profit |
79,384 | 70,132 | 66,461 | |||||||||
| Selling, general and administrative expenses |
37,559 | 31,746 | 37,273 | |||||||||
| Engineering, research and development expenses |
15,773 | 13,947 | 12,911 | |||||||||
| Amortization of intangible assets |
2,358 | 2,343 | 2,335 | |||||||||
| Contingent consideration fair value adjustment |
— | (1,813 | ) | — | ||||||||
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| Operating income |
23,694 | 23,909 | 13,942 | |||||||||
| Other (income) expense, net |
(663 | ) | 963 | (895 | ) | |||||||
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| Income before income taxes |
24,357 | 22,946 | 14,837 | |||||||||
| Income tax expense |
3,816 | 5,139 | 3,581 | |||||||||
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| Net income |
$ | 20,541 | $ | 17,807 | $ | 11,256 | ||||||
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| Basic net income per common share: |
$ | 0.15 | $ | 0.13 | $ | 0.08 | ||||||
| Diluted net income per common share: |
$ | 0.15 | $ | 0.13 | $ | 0.08 | ||||||
| Weighted average shares outstanding: |
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| Basic |
138,615 | 138,904 | 137,867 | |||||||||
| Diluted |
139,408 | 139,482 | 138,907 | |||||||||
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
| Twelve Months Ended | ||||||||
| December 31, 2013 |
December 31, 2012 |
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| Net sales |
$ | 693,459 | $ | 715,903 | ||||
| Cost of sales |
399,245 | 408,520 | ||||||
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| Gross profit |
294,214 | 307,383 | ||||||
| Selling, general and administrative expenses |
137,123 | 147,405 | ||||||
| Engineering, research and development expenses |
55,320 | 50,940 | ||||||
| Amortization of intangible assets |
9,347 | 9,594 | ||||||
| Contingent consideration fair value adjustment |
(1,813 | ) | — | |||||
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| Operating income |
94,237 | 99,444 | ||||||
| Other income, net |
(1,958 | ) | (259 | ) | ||||
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| Income before income taxes and equity in affiliates |
96,195 | 99,703 | ||||||
| Income tax expense |
21,669 | 30,881 | ||||||
| Equity in net income of affiliates |
— | (3 | ) | |||||
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| Net income |
$ | 74,526 | $ | 68,825 | ||||
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| Basic net income per common share: |
$ | 0.54 | $ | 0.50 | ||||
| Diluted net income per common share: |
$ | 0.53 | $ | 0.50 | ||||
| Weighted average shares outstanding: |
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| Basic |
138,950 | 137,306 | ||||||
| Diluted |
139,618 | 138,412 | ||||||
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| December 31, 2013 | December 31, 2012 | |||||||
| ASSETS |
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| Cash and cash equivalents |
$ | 384,426 | $ | 330,419 | ||||
| Short-term investments |
— | 19,995 | ||||||
| Accounts receivable, net |
101,873 | 94,016 | ||||||
| Inventories |
94,074 | 99,144 | ||||||
| Deferred tax assets, deferred tax charges and refundable income taxes |
20,844 | 20,201 | ||||||
| Other current assets and assets held for sale |
11,088 | 15,549 | ||||||
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| Total current assets |
612,305 | 579,324 | ||||||
| Property, plant and equipment, net |
186,440 | 157,021 | ||||||
| Intangible assets |
43,509 | 47,207 | ||||||
| Deferred tax assets – non-current |
12,039 | 17,167 | ||||||
| Other assets |
21,001 | 10,825 | ||||||
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| Total assets |
$ | 875,294 | $ | 811,544 | ||||
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| Accounts payable |
38,396 | 36,341 | ||||||
| Accrued liabilities |
48,816 | 51,263 | ||||||
| Income tax payable and deferred tax liabilities |
10,373 | 5,659 | ||||||
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| Total current liabilities |
97,585 | 93,263 | ||||||
| Other liabilities |
20,866 | 23,482 | ||||||
| Equity |
756,843 | 694,799 | ||||||
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| Total liabilities and equity |
$ | 875,294 | $ | 811,544 | ||||
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Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
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| Operating activities: |
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| Net income |
$ | 20,541 | $ | 11,256 | $ | 74,526 | $ | 68,825 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation |
7,656 | 7,151 | 29,468 | 28,013 | ||||||||||||
| Amortization |
2,358 | 2,335 | 9,347 | 9,594 | ||||||||||||
| Stock-based compensation expense |
2,069 | 1,851 | 7,928 | 9,881 | ||||||||||||
| Deferred tax valuation allowance and other tax items |
4,950 | 12,012 | 8,232 | 10,822 | ||||||||||||
| Other |
(1,582 | ) | 198 | (716 | ) | 1,903 | ||||||||||
| Changes in operating assets and liabilities: |
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| Trade accounts and notes receivable |
3,359 | 14,916 | (13,363 | ) | 10,626 | |||||||||||
| Inventories |
2,114 | 3,505 | (441 | ) | (6,118 | ) | ||||||||||
| Accounts payable and accrued liabilities |
(3,438 | ) | 4,737 | (4,408 | ) | 6,265 | ||||||||||
| Income taxes payable and refundable income taxes |
(2,508 | ) | (9,351 | ) | 2,731 | (9,897 | ) | |||||||||
| Other |
(810 | ) | (10,269 | ) | (3,902 | ) | (14,752 | ) | ||||||||
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| Net cash provided by operating activities |
34,709 | 38,341 | 109,402 | 115,162 | ||||||||||||
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| Investing activities: |
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| Acquisition of property and equipment |
(11,330 | ) | (10,813 | ) | (60,360 | ) | (49,929 | ) | ||||||||
| Acquisition of business, net of cash acquired |
— | — | (13,358 | ) | (2,961 | ) | ||||||||||
| Purchases of short-term investments, net of proceeds from maturities |
— | (11,994 | ) | 20,000 | (19,990 | ) | ||||||||||
| Other |
1 | 229 | 6,689 | 413 | ||||||||||||
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| Net cash used in investing activities |
(11,329 | ) | (22,578 | ) | (47,029 | ) | (72,467 | ) | ||||||||
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| Financing activities: |
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| Issuance of common stock |
1,018 | 2,742 | 7,685 | 7,431 | ||||||||||||
| Repurchase and retirement of common stock |
(668 | ) | — | (15,494 | ) | (427 | ) | |||||||||
| Other |
2,789 | 2,550 | 3,914 | 3,886 | ||||||||||||
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| Net cash provided by (used in) financing activities |
3,139 | 5,292 | (3,895 | ) | 10,890 | |||||||||||
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| Effect of exchange rate changes on cash |
(875 | ) | 1,534 | (4,471 | ) | 3,241 | ||||||||||
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| Increase in cash and cash equivalents |
25,644 | 22,589 | 54,007 | 56,826 | ||||||||||||
| Cash and cash equivalents at beginning of period |
358,782 | 307,830 | 330,419 | 273,593 | ||||||||||||
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| Cash and cash equivalents at end of period |
$ | 384,426 | $ | 330,419 | $ | 384,426 | $ | 330,419 | ||||||||
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Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| Net sales | December 31, 2013 |
September 28, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
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| Contamination Control Solutions |
$ | 123,665 | $ | 105,150 | $ | 110,266 | $ | 447,410 | $ | 461,838 | ||||||||||
| Microenvironments |
45,680 | 42,520 | 42,684 | 178,201 | 182,375 | |||||||||||||||
| Specialty Materials |
16,915 | 16,915 | 14,868 | 67,848 | 71,690 | |||||||||||||||
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| Total net sales |
$ | 186,260 | $ | 164,585 | $ | 167,818 | $ | 693,459 | $ | 715,903 | ||||||||||
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| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| Segment profit | December 31, 2013 |
September 28, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
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| Contamination Control Solutions |
$ | 30,417 | $ | 25,044 | $ | 22,438 | $ | 106,120 | 116,356 | |||||||||||
| Microenvironments |
8,413 | 8,635 | 6,401 | 35,737 | 37,223 | |||||||||||||||
| Specialty Materials |
970 | 2,001 | 1,046 | 7,087 | 12,230 | |||||||||||||||
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| Total segment profit |
39,800 | 35,680 | 29,885 | 148,944 | 165,809 | |||||||||||||||
| Amortization of intangibles |
(2,358 | ) | (2,343 | ) | (2,335 | ) | (9,347 | ) | (9,594 | ) | ||||||||||
| Contingent consideration fair value adjustment |
— | 1,813 | — | 1,813 | — | |||||||||||||||
| Unallocated expenses |
(13,748 | ) | (11,241 | ) | (13,608 | ) | (47,173 | ) | (56,771 | ) | ||||||||||
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| Total operating income |
$ | 23,694 | $ | 23,909 | $ | 13,942 | $ | 94,237 | $ | 99,444 | ||||||||||
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Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2013 |
September 28, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
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| Net sales |
$ | 186,260 | $ | 164,585 | $ | 167,818 | $ | 693,459 | $ | 715,903 | ||||||||||
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| Net income |
$ | 20,541 | $ | 17,807 | $ | 11,256 | $ | 74,526 | $ | 68,825 | ||||||||||
| Adjustments to net income |
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| Equity in net income of affiliates |
— | — | — | — | (3 | ) | ||||||||||||||
| Income tax expense |
3,816 | 5,139 | 3,581 | 21,669 | 30,881 | |||||||||||||||
| Other (income) expense, net |
(663 | ) | 963 | (895 | ) | (1,958 | ) | (259 | ) | |||||||||||
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| GAAP – Operating income |
23,694 | 23,909 | 13,942 | 94,237 | 99,444 | |||||||||||||||
| Amortization of intangible assets |
2,358 | 2,343 | 2,335 | 9,347 | 9,594 | |||||||||||||||
| Contingent consideration fair value adjustment |
— | (1,813 | ) | — | (1,813 | ) | — | |||||||||||||
| Charge associated with CEO succession and transition plan |
— | — | — | — | 3,928 | |||||||||||||||
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| Adjusted operating income |
26,052 | 24,439 | 16,277 | 101,771 | 112,966 | |||||||||||||||
| Depreciation |
7,656 | 7,205 | 7,151 | 29,468 | 28,013 | |||||||||||||||
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| Adjusted EBITDA |
$ | 33,708 | $ | 31,644 | $ | 23,428 | $ | 131,239 | $ | 140,979 | ||||||||||
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| Adjusted operating margin |
14.0 | % | 14.8 | % | 9.7 | % | 14.7 | % | 15.8 | % | ||||||||||
| Adjusted EBITDA – as a % of net sales |
18.1 | % | 19.2 | % | 14.0 | % | 18.9 | % | 19.7 | % | ||||||||||
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2013 |
September 28, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
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| GAAP net income |
$ | 20,541 | $ | 17,807 | $ | 11,256 | $ | 74,526 | $ | 68,825 | ||||||||||
| Adjustments to net income: |
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| Amortization of intangible assets |
2,358 | 2,343 | 2,335 | 9,347 | 9,594 | |||||||||||||||
| Contingent consideration fair value adjustment |
— | (1,813 | ) | — | (1,813 | ) | — | |||||||||||||
| Reclassification of cumulative translation adjustment associated with liquidated subsidiaries |
48 | 739 | — | 787 | — | |||||||||||||||
| Gain on sale of equity investment |
— | — | — | — | (1,522 | ) | ||||||||||||||
| Charge associated with CEO succession and transition plan |
— | — | — | — | 3,928 | |||||||||||||||
| Tax effect of adjustments to net income attributable to Entegris, Inc. |
(850 | ) | (190 | ) | (841 | ) | (2,714 | ) | (4,643 | ) | ||||||||||
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| Non-GAAP net income |
$ | 22,097 | $ | 18,886 | $ | 12,750 | $ | 80,133 | $ | 76,182 | ||||||||||
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| Diluted earnings per common share |
$ | 0.15 | $ | 0.13 | $ | 0.08 | $ | 0.53 | $ | 0.50 | ||||||||||
| Effect of adjustments to net income |
0.01 | 0.01 | 0.01 | 0.04 | 0.05 | |||||||||||||||
| Diluted non-GAAP earnings per common share |
$ | 0.16 | $ | 0.14 | $ | 0.09 | $ | 0.57 | $ | 0.55 | ||||||||||
### END ###