Entegris Reports Results for Fourth Quarter of 2024
-
Net sales (as reported) of
, increased$850 million 5% from prior year. -
Adjusted net sales (excluding the impact of divestitures) increased
11% from prior year. -
GAAP diluted EPS of
.$0.67 -
Non-GAAP diluted EPS of
.$0.84
Bertrand Loy, Entegris’ President and Chief Executive Officer, said: “We concluded 2024 with strong performance in the fourth quarter, exceeding our guidance for both sales and non-GAAP EPS. For the year, we continued to outperform the market and demonstrated leverage in our model with EBITDA growth that was twice the rate of our sales growth.”
Mr. Loy added: “As we enter 2025, visibility outside of advanced logic and AI-driven applications remains limited and we have yet to see evidence of a significant broad-based semiconductor market rebound. We remain focused on delivering strong market outperformance and profitability, improving free cash flow while continuing to fund critical investments that improve our long-term competitiveness and position us for the industry upturn.”
Mr. Loy concluded: “We are very confident in the strong long-term growth outlook of the semiconductor industry. The industry’s technology roadmaps continue to be opportunity-rich for Entegris, as our customers drive for more complex device architectures and further miniaturization. The resulting process complexity is making our expertise in materials science and materials purity increasingly valuable, positioning us very well for the upcoming technology node transitions, all of which are expected to generate incremental content per wafer opportunities and fuel our market outperformance in the years to come.”
Quarterly Financial Results Summary
(in thousands, except percentages and per share data) |
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GAAP Results |
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Net sales |
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Gross margin - as a % of net sales |
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Operating margin - as a % of net sales |
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Net income |
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Diluted earnings per common share |
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Non-GAAP Results |
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Adjusted gross margin - as a % of net sales |
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Adjusted operating margin - as a % of net sales |
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Adjusted EBITDA - as a % of net sales |
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Diluted non-GAAP earnings per common share |
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First Quarter Outlook
For the Company’s guidance for the first quarter ending March 29, 2025, the Company expects sales of
Segment Results
The Company currently operates in two segments:
Materials Solutions (MS): MS provides materials-based solutions, such as chemical vapor and atomic layer deposition materials, chemical mechanical planarization slurries and pads, ion implantation specialty gases, formulated etch and clean materials, and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership.
Advanced Purity Solutions (APS): APS offers filtration, purification and contamination-control solutions that improve customers’ yield, device reliability and cost by ensuring the purity of critical liquid chemistries and gases and the cleanliness of wafers and other substrates used throughout semiconductor manufacturing processes, the semiconductor ecosystem and other high-technology industries.
Fourth-Quarter Results Conference Call
Entegris will hold a conference call to discuss its results for the fourth quarter on Thursday, February 6, 2025, at 9:00 a.m. Eastern Time. Participants should dial 800-579-2543 or +1 785-424-1789, referencing confirmation ID: ENTGQ424. Participants are asked to dial in 10 minutes prior to the start of the call. For the live webcast and replay of the call, please Click Here.
Management’s slide presentation concerning the results for the fourth quarter will be posted on the Investor Relations section of www.entegris.com.
About Entegris
Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in
Non-GAAP Information
The Company’s condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in
Cautionary Note on Forward-Looking Statements
This news 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 are based on current management expectations and assumptions only as of the date of this news release. They are not guarantees of future performance and they involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, but are not limited to, fluctuations in the demand for semiconductors and the overall volume of semiconductor manufacturing; the impact of global economic uncertainty, including volatile financial markets, inflationary pressures and interest rate fluctuations, economic recessions, national debt and bank failures, raw material shortages, supply and labor constraints, and price increases; fluctuations in the Company’s revenues and operating results and their impact on the Company’s stock price; supply chain interruptions and the Company’s dependence on sole, single and limited source suppliers; operational, political and legal risks of the Company’s international operations; the impact of regional and global instabilities, hostilities and geopolitical uncertainty, including, but not limited to, the ongoing conflicts between
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
||||||
|
Three months ended |
|||||
|
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
|||
Net sales |
|
|
|
|
|
|
Cost of sales |
462,582 |
|
467,611 |
|
435,869 |
|
Gross profit |
387,255 |
|
344,680 |
|
371,825 |
|
Selling, general and administrative expenses |
109,604 |
|
144,680 |
|
108,455 |
|
Engineering, research and development expenses |
81,447 |
|
67,567 |
|
80,903 |
|
Amortization of intangible assets |
46,221 |
|
50,984 |
|
46,226 |
|
Goodwill impairment |
— |
|
10,432 |
|
— |
|
Gain on termination of alliance agreement |
— |
|
(30,000 |
) |
— |
|
Operating income |
149,983 |
|
101,017 |
|
136,241 |
|
Interest expense, net |
50,524 |
|
62,101 |
|
50,419 |
|
Other (income) expense, net |
(13,029 |
) |
12,058 |
|
(212 |
) |
Income before income tax expense (benefit) |
112,488 |
|
26,858 |
|
86,034 |
|
Income tax expense (benefit) |
9,997 |
|
(11,264 |
) |
8,190 |
|
Equity in net loss of affiliates |
248 |
|
145 |
|
262 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
||||
Basic earnings per common share: |
|
|
|
|
|
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|||
Weighted average shares outstanding: |
|
|
|
|||
Basic |
151,236 |
|
150,223 |
|
151,196 |
|
Diluted |
151,900 |
|
151,331 |
|
151,924 |
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
|||
|
Twelve months ended |
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|
Dec 31, 2024 |
Dec 31, 2023 |
|
Net sales |
|
|
|
Cost of sales |
1,754,489 |
2,026,321 |
|
Gross profit |
1,486,719 |
1,497,605 |
|
Selling, general and administrative expenses |
446,567 |
576,194 |
|
Engineering, research and development expenses |
316,111 |
277,313 |
|
Amortization of intangible assets |
190,119 |
214,477 |
|
Goodwill impairment |
— |
115,217 |
|
Gain on termination of alliance agreement |
— |
(184,754 |
) |
Operating income |
533,922 |
499,158 |
|
Interest expense, net |
207,849 |
301,121 |
|
Other expense, net |
4,021 |
25,367 |
|
Income before income tax expense (benefit) |
322,052 |
172,670 |
|
Income tax expense (benefit) |
28,332 |
(8,413 |
) |
Equity in net loss of affiliates |
933 |
414 |
|
Net income |
|
|
|
|
|
|
|
|
|
||
Basic earnings per common share: |
|
|
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
Basic |
150,946 |
149,900 |
|
Diluted |
151,840 |
150,945 |
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
||||||
|
|
|
Dec 31, 2024 |
Dec 31, 2023 |
||
ASSETS |
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
||||
Trade accounts and notes receivable, net |
495,312 |
457,052 |
||||
Inventories, net |
|
638,080 |
607,051 |
|||
Deferred tax charges and refundable income taxes |
39,613 |
63,879 |
||||
Assets held-for-sale |
|
|
5,519 |
278,753 |
||
Other current assets |
108,567 |
113,663 |
||||
Total current assets |
1,616,304 |
1,977,327 |
||||
Property, plant and equipment, net |
1,622,926 |
1,468,043 |
||||
Right-of-use assets |
83,475 |
80,399 |
||||
Goodwill |
3,943,571 |
3,945,860 |
||||
Intangible assets, net |
1,091,746 |
1,281,969 |
||||
Deferred tax assets and other noncurrent tax assets |
12,463 |
31,432 |
||||
Other assets |
|
24,135 |
27,561 |
|||
Total assets |
|
|
|
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LIABILITIES AND EQUITY |
|
|||||
Current liabilities |
|
|
|
|||
Accounts payable |
|
193,261 |
134,211 |
|||
Accrued liabilities |
|
250,172 |
283,158 |
|||
Liabilities held-for-sale |
|
1,213 |
19,223 |
|||
Income tax payable |
|
80,532 |
77,403 |
|||
Total current liabilities |
525,178 |
513,995 |
||||
Long-term debt |
3,981,105 |
4,577,141 |
||||
Long-term lease liabilities |
|
72,159 |
68,986 |
|||
Other liabilities |
|
124,674 |
243,875 |
|||
Shareholders’ equity |
|
3,691,504 |
3,408,594 |
|||
Total liabilities and equity |
|
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
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|
Three months ended |
Twelve months ended |
||||||
|
Dec 31, 2024 |
Dec 31, 2023 |
Dec 31, 2024 |
Dec 31, 2023 |
||||
Operating activities: |
|
|
|
|
||||
Net income |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
48,272 |
|
42,558 |
|
188,120 |
|
172,683 |
|
Amortization |
46,221 |
|
50,984 |
|
190,119 |
|
214,477 |
|
Share-based compensation expense |
15,510 |
|
8,955 |
|
65,859 |
|
61,371 |
|
Provision for deferred income taxes |
(31,835 |
) |
(50,240 |
) |
(78,902 |
) |
(145,606 |
) |
Loss on extinguishment of debt |
2,001 |
|
17,003 |
|
13,386 |
|
27,865 |
|
Impairment of goodwill |
— |
|
10,432 |
|
— |
|
115,217 |
|
Gain on termination of alliance agreement |
— |
|
(30,000 |
) |
— |
|
(184,754 |
) |
(Gain) loss from sale of businesses and held-for-sale assets, net |
— |
|
(4,740 |
) |
(4,311 |
) |
23,839 |
|
Other |
14,852 |
|
45,398 |
|
73,647 |
|
113,232 |
|
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
||||
Trade accounts and notes receivable |
3,044 |
|
903 |
|
(49,031 |
) |
608 |
|
Inventories |
(7,836 |
) |
39,411 |
|
(76,708 |
) |
102,751 |
|
Accounts payable and accrued liabilities |
(43,693 |
) |
(26,437 |
) |
8,870 |
|
(14,633 |
) |
Income taxes payable, refundable income taxes and noncurrent taxes payable |
31,597 |
|
26,597 |
|
7,889 |
|
(10,177 |
) |
Other |
(4,280 |
) |
(10,696 |
) |
(4 |
) |
(13,066 |
) |
Net cash provided by operating activities |
176,096 |
|
158,105 |
|
631,721 |
|
644,476 |
|
Investing activities: |
|
|
|
|
||||
Acquisition of property and equipment |
(107,524 |
) |
(128,665 |
) |
(315,606 |
) |
(456,847 |
) |
Proceeds, net from sale of businesses |
— |
|
680,674 |
|
250,789 |
|
814,960 |
|
Proceeds from termination of alliance agreement |
— |
|
21,900 |
|
— |
|
191,151 |
|
Other |
(387 |
) |
1,888 |
|
(2,262 |
) |
3,807 |
|
Net cash (used in) provided by investing activities |
(107,911 |
) |
575,797 |
|
(67,079 |
) |
553,071 |
|
Financing activities: |
|
|
|
|
||||
Proceeds from debt |
110,000 |
|
— |
|
364,537 |
|
217,449 |
|
Payments of debt |
(260,000 |
) |
(869,725 |
) |
(988,311 |
) |
(1,473,675 |
) |
Payments for debt issuance costs |
— |
|
— |
|
— |
|
(3,475 |
) |
Payments for dividends |
(15,105 |
) |
(15,019 |
) |
(60,583 |
) |
(60,221 |
) |
Issuance of common stock |
429 |
|
5,704 |
|
14,046 |
|
35,878 |
|
Taxes paid related to net share settlement of equity awards |
(688 |
) |
(568 |
) |
(16,834 |
) |
(12,108 |
) |
Other |
(27 |
) |
(468 |
) |
(1,842 |
) |
(1,391 |
) |
Net cash used in financing activities |
(165,391 |
) |
(880,076 |
) |
(688,987 |
) |
(1,297,543 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(5,653 |
) |
9,083 |
|
(3,371 |
) |
(6,514 |
) |
Decrease in cash, cash equivalents and restricted cash |
(102,859 |
) |
(137,091 |
) |
(127,716 |
) |
(106,510 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
432,072 |
|
594,020 |
|
456,929 |
|
563,439 |
|
Cash, cash equivalents and restricted cash at end of period |
|
|
|
|
|
|
|
|
Entegris, Inc. and Subsidiaries Segment Information (In thousands) (Unaudited) |
||||||||||
|
Three months ended |
Twelve months ended |
||||||||
Net sales |
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
|||||
Materials Solutions |
|
|
|
|
|
|
|
|
|
|
Advanced Purity Solutions |
491,193 |
|
449,779 |
|
463,131 |
|
1,850,199 |
|
1,846,596 |
|
Inter-segment elimination |
(2,435 |
) |
(2,453 |
) |
(2,071 |
) |
(9,073 |
) |
(12,137 |
) |
Total net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
Twelve months ended |
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Segment profit |
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
|||||
Materials Solutions |
|
|
|
|
|
|
|
|
|
|
Advanced Purity Solutions |
134,966 |
|
118,021 |
|
127,315 |
|
496,131 |
|
531,448 |
|
Total segment profit |
212,088 |
|
171,225 |
|
199,021 |
|
782,351 |
|
827,823 |
|
Amortization of intangibles |
(46,221 |
) |
(50,984 |
) |
(46,226 |
) |
(190,119 |
) |
(214,477 |
) |
Unallocated expenses |
(15,884 |
) |
(19,224 |
) |
(16,554 |
) |
(58,310 |
) |
(114,188 |
) |
Total operating income |
|
|
|
|
|
|
|
|
|
|
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Gross Profit to Adjusted Gross Profit (In thousands) |
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|
Three months ended |
Twelve months ended |
||||||||
|
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
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Net sales |
|
|
|
|
|
|
|
|
|
|
Gross profit-GAAP |
|
|
|
|
|
|
|
|
|
|
Adjustments to gross profit: |
|
|
|
|
|
|||||
Restructuring costs 1 |
429 |
|
28 |
|
— |
|
429 |
|
8,194 |
|
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross margin - as a % of net sales |
45.6 |
% |
42.4 |
% |
46.0 |
% |
45.9 |
% |
42.5 |
% |
Adjusted gross margin - as a % of net sales |
45.6 |
% |
42.4 |
% |
46.0 |
% |
45.9 |
% |
42.7 |
% |
1 Restructuring charges resulting from cost saving initiatives. |
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Segment Profit to Adjusted Operating Income (In thousands) (Unaudited) |
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|
Three months ended |
Twelve months ended |
||||||||
Adjusted segment profit |
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
|||||
MS segment profit |
|
|
|
|
|
|
|
|
|
|
Restructuring costs 1 |
1,154 |
|
1,635 |
|
— |
|
1,154 |
|
9,261 |
|
(Gain) loss on sale of businesses and held-for-sale assets, net 2 |
— |
|
(4,740 |
) |
— |
|
(4,311 |
) |
23,839 |
|
Goodwill impairment 3 |
— |
|
10,432 |
|
— |
|
— |
|
115,217 |
|
Gain on termination of alliance agreement 4 |
— |
|
(30,000 |
) |
— |
|
— |
|
(184,754 |
) |
Impairment on long-lived assets 5 |
— |
|
30,464 |
|
— |
|
12,967 |
|
30,464 |
|
MS adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
APS segment profit |
|
|
|
|
|
|
|
|
|
|
Restructuring costs 1 |
2,121 |
|
278 |
|
— |
|
2,121 |
|
5,009 |
|
APS adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Unallocated general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
Less: unallocated deal and integration costs |
— |
|
(7,810 |
) |
(426 |
) |
(3,368 |
) |
(56,526 |
) |
Less: unallocated restructuring costs 1 |
(655 |
) |
(388 |
) |
— |
|
(655 |
) |
(475 |
) |
Less: unallocated acquired tax equalization asset reduction 6 |
— |
|
— |
|
(2,959 |
) |
(2,959 |
) |
— |
|
Adjusted unallocated general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
Less: adjusted unallocated general and administrative expenses |
(15,229 |
) |
(11,026 |
) |
(13,169 |
) |
(51,328 |
) |
(57,187 |
) |
Total adjusted operating income |
|
|
|
|
|
1 Restructuring charges resulting from cost saving initiatives. |
2 (Gain) loss from the sale of certain businesses and held-for-sale assets, net. |
3 Non-cash impairment charges associated with goodwill. |
4 Gain on the termination of the alliance agreement with MacDermid Enthone. |
5 Impairment of long-lived assets. |
6 Represents an asset reduction of an acquired tax equalization asset from the CMC Materials acquisition. |
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA (In thousands) (Unaudited) |
||||||||||
|
Three months ended |
Twelve months ended |
||||||||
|
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
|||||
Net sales |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
Net income - as a % of net sales |
12.0 |
% |
4.7 |
% |
9.6 |
% |
9.0 |
% |
5.1 |
% |
Adjustments to net income: |
|
|
|
|
|
|||||
Equity in net loss of affiliates |
248 |
|
145 |
|
262 |
|
933 |
|
414 |
|
Income tax expense (benefit) |
9,997 |
|
(11,264 |
) |
8,190 |
|
28,332 |
|
(8,413 |
) |
Interest expense, net |
50,524 |
|
62,101 |
|
50,419 |
|
207,849 |
|
301,121 |
|
Other (income) expense, net |
(13,029 |
) |
12,058 |
|
(212 |
) |
4,021 |
|
25,367 |
|
GAAP - Operating income |
149,983 |
|
101,017 |
|
136,241 |
|
533,922 |
|
499,158 |
|
Operating margin - as a % of net sales |
17.6 |
% |
12.4 |
% |
16.9 |
% |
16.5 |
% |
14.2 |
% |
Goodwill impairment 1 |
— |
|
10,432 |
|
— |
|
— |
|
115,217 |
|
Deal and transaction costs 2 |
— |
|
— |
|
— |
|
— |
|
3,001 |
|
Integration costs: |
|
|
|
|
|
|||||
Professional fees 3 |
— |
|
4,582 |
|
287 |
|
2,574 |
|
36,650 |
|
Severance costs 4 |
— |
|
(395 |
) |
139 |
|
794 |
|
1,478 |
|
Retention costs 5 |
— |
|
— |
|
— |
|
— |
|
1,687 |
|
Other costs 6 |
— |
|
3,623 |
|
— |
|
— |
|
13,710 |
|
Restructuring costs 7 |
3,930 |
|
2,301 |
|
— |
|
3,930 |
|
14,745 |
|
Acquired tax equalization asset reduction 8 |
— |
|
— |
|
2,959 |
|
2,959 |
|
— |
|
(Gain) loss on sale of businesses and held-for-sale assets, net 9 |
— |
|
(4,740 |
) |
— |
|
(4,311 |
) |
23,839 |
|
Gain on termination of alliance agreement 10 |
— |
|
(30,000 |
) |
— |
|
— |
|
(184,754 |
) |
Impairment of long-lived assets 11 |
— |
|
30,464 |
|
— |
|
12,967 |
|
30,464 |
|
Amortization of intangible assets 12 |
46,221 |
|
50,984 |
|
46,226 |
|
190,119 |
|
214,477 |
|
Adjusted operating income |
200,134 |
|
168,268 |
|
185,852 |
|
742,954 |
|
769,672 |
|
Adjusted operating margin - as a % of net sales |
23.5 |
% |
20.7 |
% |
23.0 |
% |
22.9 |
% |
21.8 |
% |
Depreciation |
48,272 |
|
42,558 |
|
47,098 |
|
188,120 |
|
172,683 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA - as a % of net sales |
29.2 |
% |
26.0 |
% |
28.8 |
% |
28.7 |
% |
26.7 |
% |
1 Non-cash impairment charges associated with goodwill of our Electronic Chemicals and a small, industrial specialty chemicals businesses. |
2 Deal and transaction costs associated with the CMC Materials acquisition and completed divestitures. |
3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other third-party service providers to assist us in integrating CMC Materials into our operations. These fees arise outside of the ordinary course of our continuing operations. |
4 Represents severance charges related to the integration of the CMC Materials acquisition. |
5 Represents retention charges related directly to the CMC Materials acquisition and completed divestitures, and are not part of our normal, recurring cash operating expenses. |
6 Represents other employee-related costs and other costs incurred relating to the CMC Materials acquisition and the completed divestitures. These costs arise outside of the ordinary course of our continuing operations. |
7 Restructuring charges resulting from cost saving initiatives. |
8 Represents an asset reduction of an acquired tax equalization asset from the CMC Materials acquisition. |
9 (Gain) loss from the sale of certain businesses and held-for-sale assets, net. |
10 Gain on termination of the alliance agreement with MacDermid Enthone. |
11 Impairment of long-lived assets. |
12 Non-cash amortization expense associated with intangibles acquired in acquisitions. |
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 |
Twelve months ended |
||||||||
|
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
|||||
GAAP net income |
|
|
|
|
|
|
|
|
|
|
Adjustments to net income: |
|
|
|
|
|
|||||
Goodwill impairment 1 |
— |
|
10,432 |
|
— |
|
— |
|
115,217 |
|
Deal and transaction costs 2 |
— |
|
— |
|
— |
|
— |
|
3,001 |
|
Integration costs: |
|
|
|
|
|
|||||
Professional fees 3 |
— |
|
4,582 |
|
287 |
|
2,574 |
|
36,650 |
|
Severance costs 4 |
— |
|
(395 |
) |
139 |
|
794 |
|
1,478 |
|
Retention costs 5 |
— |
|
— |
|
— |
|
— |
|
1,687 |
|
Other costs 6 |
— |
|
3,623 |
|
— |
|
— |
|
13,710 |
|
Restructuring costs 7 |
3,930 |
|
2,301 |
|
— |
|
3,930 |
|
14,745 |
|
Patent infringement settlement gain, net 8 |
(20,033 |
) |
— |
|
— |
|
(20,033 |
) |
— |
|
Acquired tax equalization asset reduction 9 |
— |
|
— |
|
2,959 |
|
2,959 |
|
— |
|
Loss on extinguishment of debt and modification 10 |
2,001 |
|
17,003 |
|
— |
|
14,348 |
|
29,896 |
|
(Gain) loss on sale of businesses and held-for-sale assets, net 11 |
— |
|
(4,740 |
) |
— |
|
(4,311 |
) |
23,839 |
|
Gain on termination of alliance agreement 12 |
— |
|
(30,000 |
) |
— |
|
— |
|
(184,754 |
) |
Infineum termination fee, net 13 |
— |
|
— |
|
— |
|
— |
|
(10,877 |
) |
Impairment of long-lived assets 14 |
— |
|
30,464 |
|
— |
|
12,967 |
|
30,464 |
|
Amortization of intangible assets 15 |
46,221 |
|
50,984 |
|
46,226 |
|
190,119 |
|
214,477 |
|
Tax effect of adjustments to net income and discrete tax items16 |
(6,837 |
) |
(24,288 |
) |
(9,611 |
) |
(40,146 |
) |
(71,284 |
) |
Non-GAAP net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
|
Effect of adjustments to net income |
|
|
|
|
|
|
|
|
|
|
Diluted non-GAAP earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted weighted averages shares outstanding |
151,900 |
|
151,331 |
|
151,924 |
|
151,840 |
|
150,945 |
|
1 Non-cash impairment charges associated with goodwill of our Electronic Chemicals and a small, industrial specialty chemicals businesses. |
2 Deal and transaction costs associated with the CMC Materials acquisition and completed divestitures. |
3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other third-party service providers to assist us in integrating CMC Materials into our operations. |
4 Represents severance charges related to the integration of the CMC Materials acquisition. |
5 Represents retention charges related directly to the CMC Materials acquisition and completed divestitures, and are not part of our normal, recurring cash operating expenses. |
6 Represents other employee related costs and other costs incurred relating to the CMC Materials acquisition and the completed divestitures. These costs arise outside of the ordinary course of our continuing operations. |
7 Restructuring charges resulting from cost saving initiatives. |
8 During the fourth quarter of 2024, the Company settled a patent infringement litigation and received net proceeds of |
9 Represents an asset reduction of an acquired tax equalization asset from the CMC Materials acquisition. |
10 Loss on extinguishment of debt and modification of our Existing Credit Agreement. |
11 (Gain) loss from the sale of certain businesses and held-for-sale assets, net. |
12 Gain on termination of the alliance agreement with MacDermid Enthone. |
13 Non-recurring gain from the termination fee with Infineum. |
14 Impairment of long-lived assets. |
15 Non-cash amortization expense associated with intangibles acquired in acquisitions. |
16 The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate for each respective year. |
Entegris, Inc. and Subsidiaries Reconciliation of Reported Net Sales to Adjusted Net Sales (excluding divestitures) Non-GAAP (In thousands) (Unaudited) |
||||||||
|
Three months ended |
Twelve months ended |
||||||
|
Dec 31, 2024 |
Dec 31, 2023 |
Sep 28, 2024 |
Dec 31, 2024 |
Dec 31, 2023 |
|||
Net sales |
|
|
|
|
|
|
|
|
Less: divestitures 1 |
— |
(46,844 |
) |
— |
(33,907 |
) |
(458,357 |
) |
Adjusted net sales (excluding divestitures) Non-GAAP |
|
|
|
|
|
|
|
|
1 Adjusted for the impact of net sales from divestitures. |
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Outlook to Non-GAAP Outlook * (In millions, except per share data) (Unaudited) |
|
|
First Quarter Outlook |
Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin |
March 29, 2025 |
Net sales |
|
GAAP - Operating income |
|
Operating margin - as a % of net sales |
|
Restructuring costs |
2 |
Amortization of intangible assets |
46 |
Adjusted operating income |
|
Adjusted operating margin - as a % of net sales |
|
Depreciation |
53 |
Adjusted EBITDA |
|
Adjusted EBITDA - as a % of net sales |
|
|
First Quarter Outlook |
Reconciliation GAAP net income to non-GAAP net income |
March 29, 2025 |
GAAP net income |
|
Adjustments to net income: |
|
Restructuring costs |
2 |
Amortization of intangible assets |
46 |
Income tax effect |
(9) |
Non-GAAP net income |
|
|
First Quarter Outlook |
Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share |
March 29, 2025 |
Diluted earnings per common share |
|
Adjustments to earnings per share: |
|
Restructuring costs |
0.01 |
Amortization of intangible assets |
0.30 |
Income tax effect |
(0.06) |
Diluted non-GAAP earnings per common share |
|
|
|
*As a result of displaying amounts in millions, rounding differences may exist in the tables. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206637324/en/
Bill Seymour
VP of Investor Relations
T + 1 952 556 1844
bill.seymour@entegris.com
Source: Entegris, Inc.