Entegris Reports Results for Second Quarter of 2023
- Second-quarter revenue increased by 30% from the previous year.
- GAAP diluted EPS was $1.31.
- Non-GAAP diluted EPS was $0.66.
- None.
-
Second-quarter revenue (as reported) of
, increased$901 million 30% from prior year -
Second-quarter revenue (proforma), decreased
11% from prior year -
Second-quarter GAAP diluted EPS of
$1.31 -
Second-quarter non-GAAP diluted EPS of
$0.66
Bertrand Loy, Entegris’ president and chief executive officer, said: “Our performance and execution in the second quarter was solid and showcased the resilience of our unit driven model. Sales were down sequentially as expected, but we did see growth in product lines that are of increasing importance to our customers’ technology roadmaps.
“We have made good progress on key initiatives. The CMC Materials integration is proceeding very well, and we are on track to achieve our
“While our expectations for an industry recovery in the short term are modest,” Loy said, “we continue to be extremely optimistic about the long-term secular growth of the semiconductor industry. We have strong conviction in the growing importance of our value proposition, our opportunity to grow our content per wafer, and our ability to continue to outperform the market. During the second half of the year, our focus will be on completing the CMC integration and managing our cost structure, while making the necessary investments in our future.”
Quarterly Financial Results Summary |
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(in thousands, except percentages and per share data) |
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GAAP Results |
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
Net sales |
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Operating income |
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Operating margin - as a % of net sales |
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Net income (loss) |
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Diluted earnings (loss) per common share |
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Non-GAAP Results |
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Non-GAAP adjusted operating income |
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Non-GAAP adjusted operating margin - as a % of net sales |
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Non-GAAP net income |
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Diluted non-GAAP earnings per common share |
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Third-Quarter Outlook
For the third quarter ending September 30, 2023, the Company expects sales of
Segment Results
The Company operates in four segments:
Specialty Chemicals and Engineered Materials (SCEM): SCEM provides advanced materials enabling complex chip designs and improved device electrical performance; including 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 advanced filtration solutions that improve customers’ yield, device reliability and cost; by filtering and purifying critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.
Advanced Materials Handling (AMH): AMH develops solutions that improve customers’ yields by protecting critical materials during manufacturing, transportation, and storage; including products that 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.
Advanced Planarization Solutions (APS): APS develops an end-to-end chemical mechanical planarization (CMP) solution and applications expertise delivered through advanced materials and high purity chemicals; including CMP slurries, pads, formulated cleans and other electronic chemicals used in the semiconductor manufacturing processes.
Second-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the second quarter on Thursday, August 3, 2023, at 9:00 a.m. Eastern Time. Participants should dial 800-245-3047 or +1 203-518-9765, referencing confirmation ID: ENTGQ223. 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 second quarter will be posted on the Investor Relations section of www.entegris.com in the morning before the call.
About Entegris
Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 9,000 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 may include statements about supply chain matters and inflationary pressures; future period guidance or projections; the Company’s performance relative to its markets, including the drivers of such performance; market and technology trends, including the duration and drivers of any growth trends; the development of new products and the success of their introductions; the focus of the Company’s engineering, research and development projects; the Company’s ability to execute on our business strategies, including with respect to Company’s expansion of its manufacturing presence in
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
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|
Three months ended |
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|
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
Net sales |
|
|
|
Cost of sales |
516,834 |
382,092 |
520,711 |
Gross profit |
384,166 |
310,397 |
401,685 |
Selling, general and administrative expenses |
145,596 |
90,685 |
169,867 |
Engineering, research and development expenses |
71,030 |
49,248 |
71,906 |
Amortization of intangible assets |
54,680 |
12,494 |
57,574 |
Goodwill impairment |
— |
— |
88,872 |
Gain on termination of alliance agreement |
(154,754) |
— |
— |
Operating income |
267,614 |
157,970 |
13,466 |
Interest expense, net |
78,605 |
31,343 |
84,821 |
Other expense (income), net |
7,724 |
9,619 |
(4,658) |
Income (loss) before income tax (benefit) expense |
181,285 |
117,008 |
(66,697) |
Income tax (benefit) expense |
(16,491) |
17,517 |
21,469 |
Equity in net loss of affiliates |
130 |
— |
— |
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share: |
|
|
|
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
Basic |
149,825 |
135,895 |
149,426 |
Diluted |
150,837 |
136,454 |
149,426 |
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
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|
Six months ended |
|
|
July 1, 2023 |
July 2, 2022 |
Net sales |
|
|
Cost of sales |
1,037,545 |
721,918 |
Gross profit |
785,851 |
620,217 |
Selling, general and administrative expenses |
315,463 |
177,793 |
Engineering, research and development expenses |
142,936 |
95,963 |
Amortization of intangible assets |
112,254 |
25,145 |
Goodwill impairment |
88,872 |
— |
Gain on termination of alliance agreement |
(154,754) |
— |
Operating income |
281,080 |
321,316 |
Interest expense, net |
163,426 |
44,877 |
Other expense, net |
3,066 |
14,521 |
Income before income tax expense |
114,588 |
262,588 |
Income tax expense |
4,978 |
37,392 |
Equity in net loss of affiliates |
130 |
— |
Net income |
|
|
|
|
|
|
|
|
Basic earnings per common share: |
|
|
Diluted earnings per common share: |
|
|
|
|
|
Weighted average shares outstanding: |
|
|
Basic |
149,626 |
135,783 |
Diluted |
150,609 |
136,503 |
Entegris, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
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|
July 1, 2023 |
December 31, 2022 |
ASSETS |
|
|
Current assets: |
|
|
Cash, cash equivalents and restricted cash |
|
|
Trade accounts and notes receivable, net |
435,973 |
535,485 |
Inventories, net |
740,351 |
812,815 |
Deferred tax charges and refundable income taxes |
55,461 |
47,618 |
Assets held-for-sale |
1,051,947 |
246,531 |
Other current assets |
117,799 |
129,297 |
Total current assets |
2,968,548 |
2,335,185 |
Property, plant and equipment, net |
1,364,760 |
1,393,337 |
Other assets: |
|
|
Right-of-use assets |
81,048 |
94,940 |
Goodwill |
3,970,247 |
4,408,331 |
Intangible assets, net |
1,421,710 |
1,841,955 |
Deferred tax assets and other noncurrent tax assets |
66,682 |
28,867 |
Other |
40,029 |
36,242 |
Total assets |
|
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Short-term debt, including current portion of long-term debt |
— |
151,965 |
Accounts payable |
132,157 |
172,488 |
Accrued liabilities |
311,784 |
328,784 |
Liabilities held-for-sale |
115,784 |
10,637 |
Income tax payable |
86,564 |
98,057 |
Total current liabilities |
646,289 |
761,931 |
Long-term debt, excluding current maturities |
5,492,011 |
5,632,928 |
Long-term lease liability |
69,405 |
80,716 |
Other liabilities |
353,114 |
445,282 |
Shareholders’ equity |
3,352,205 |
3,218,000 |
Total liabilities and equity |
|
|
Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
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|
Three months ended |
Six months ended |
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|
July 1, 2023 |
July 2, 2022 |
July 1, 2023 |
July 2, 2022 |
Operating activities: |
|
|
|
|
Net income |
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation |
43,719 |
24,381 |
90,494 |
48,286 |
Amortization |
54,680 |
12,494 |
112,254 |
25,145 |
Share-based compensation expense |
11,458 |
10,182 |
42,136 |
19,467 |
Loss on extinguishment of debt and modification |
4,482 |
— |
7,269 |
— |
Impairment of Goodwill |
— |
— |
88,872 |
— |
Gain on termination of alliance agreement |
(154,754) |
— |
(154,754) |
— |
Loss on sale of business and held for sale assets |
14,935 |
— |
28,577 |
— |
Other |
(10,318) |
8,492 |
(17,288) |
8,687 |
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
Trade accounts and notes receivable |
9,562 |
(26,138) |
17,941 |
(57,309) |
Inventories |
29,843 |
(47,465) |
(5,009) |
(124,941) |
Accounts payable and accrued liabilities |
(43,638) |
49,468 |
(23,595) |
27,145 |
Income taxes payable, refundable income taxes and noncurrent taxes payable |
(31,437) |
(20,308) |
(15,570) |
(3,548) |
Other |
840 |
313 |
(1,918) |
6,570 |
Net cash provided by operating activities |
127,018 |
110,910 |
278,889 |
174,698 |
Investing activities: |
|
|
|
|
Acquisition of property and equipment |
(116,051) |
(107,692) |
(250,043) |
(192,097) |
Proceeds from sale of business |
759 |
— |
134,286 |
— |
Proceeds from termination of alliance agreement |
169,251 |
— |
169,251 |
— |
Other |
258 |
— |
366 |
1,123 |
Net cash provided by (used in) investing activities |
54,217 |
(107,692) |
53,860 |
(190,974) |
Financing activities: |
|
|
|
|
Proceeds from revolving credit facility, short-term debt and long-term debt |
— |
2,527,314 |
117,170 |
2,606,314 |
Payments of revolving credit facility, short-term debt and long-term debt |
(311,501) |
(114,000) |
(428,671) |
(193,000) |
Payments for debt issuance costs |
(3,475) |
(10,579) |
(3,475) |
(10,579) |
Payments for dividends |
(14,980) |
(13,589) |
(30,150) |
(27,484) |
Issuance of common stock |
18,374 |
5,598 |
36,767 |
8,977 |
Taxes paid related to net share settlement of equity awards |
(240) |
(200) |
(9,646) |
(16,317) |
Other |
(279) |
375 |
(578) |
(587) |
Net cash (used in) provided by financing activities |
(312,101) |
2,394,919 |
(318,583) |
2,367,324 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(11,149) |
(7,638) |
(10,588) |
(10,382) |
(Decrease) increase in cash, cash equivalents and restricted cash |
(142,015) |
2,390,499 |
3,578 |
2,340,666 |
Cash, cash equivalents and restricted cash at beginning of period |
709,032 |
352,732 |
563,439 |
402,565 |
Cash, cash equivalents and restricted cash at end of period |
|
|
|
|
Entegris, Inc. and Subsidiaries Segment Information (In thousands) (Unaudited) |
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|
Three months ended |
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Six months ended |
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Net sales |
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
|
July 1, 2023 |
July 2, 2022 |
Specialty Chemicals and Engineered Materials |
|
|
|
|
|
|
Advanced Planarization Solutions |
240,561 |
28,317 |
250,326 |
|
490,887 |
58,962 |
Microcontamination Control |
283,614 |
274,133 |
269,297 |
|
552,911 |
540,770 |
Advanced Materials Handling |
190,356 |
224,084 |
218,853 |
|
409,209 |
422,197 |
Inter-segment elimination |
(13,604) |
(13,457) |
(14,084) |
|
(27,688) |
(24,982) |
Total net sales |
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
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Segment profit |
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
|
July 1, 2023 |
July 2, 2022 |
Specialty Chemicals and Engineered Materials |
|
|
|
|
|
|
Advanced Planarization Solutions |
42,419 |
10,179 |
(32,790) |
|
9,629 |
21,338 |
Microcontamination Control |
100,661 |
100,107 |
95,997 |
|
196,658 |
198,725 |
Advanced Materials Handling |
35,830 |
46,926 |
48,165 |
|
83,995 |
93,616 |
Total segment profit |
352,229 |
192,751 |
114,640 |
|
466,869 |
386,910 |
Amortization of intangibles |
54,680 |
12,494 |
57,574 |
|
112,254 |
25,145 |
Unallocated expenses |
29,935 |
22,287 |
43,600 |
|
73,535 |
40,449 |
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 |
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Six months ended |
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|
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
|
July 1, 2023 |
July 2, 2022 |
Net Sales |
|
|
|
|
|
|
Gross profit-GAAP |
|
|
|
|
|
|
Adjustments to gross profit: |
|
|
|
|
|
|
Restructuring costs 1 |
— |
— |
7,377 |
|
7,377 |
— |
Adjusted gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin - as a % of net sales |
42.6 % |
44.8 % |
43.5 % |
|
43.1 % |
46.2 % |
Adjusted gross margin - as a % of net sales |
42.6 % |
44.8 % |
44.3 % |
|
43.5 % |
46.2 % |
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 |
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Six months ended |
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Adjusted segment profit |
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
|
July 1, 2023 |
July 2, 2022 |
SCEM segment profit |
|
|
|
|
|
|
Restructuring costs 1 |
— |
— |
6,523 |
|
6,523 |
— |
Loss from the sale of QED and held for sales assets of EC 2 |
1,304 |
— |
13,642 |
|
14,946 |
— |
Gain on termination of alliance agreement4 |
(154,754) |
— |
— |
|
(154,754) |
— |
SCEM adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
APS segment profit |
|
|
|
|
|
21,338 |
Goodwill impairment 3 |
— |
— |
88,872 |
|
88,872 |
— |
Restructuring costs 1 |
— |
— |
585 |
|
585 |
— |
Loss from the sale of QED and held for sales assets of EC 2 |
13,632 |
— |
— |
|
13,632 |
— |
APS adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
MC segment profit |
|
|
|
|
|
|
Restructuring costs 1 |
— |
— |
2,795 |
|
2,795 |
— |
MC adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
AMH segment profit |
|
|
|
|
|
|
Restructuring costs 1 |
— |
— |
1,254 |
|
1,254 |
— |
AMH adjusted segment profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated general and administrative expenses |
|
|
|
|
|
|
Less: unallocated deal and integration costs |
(18,441) |
(12,575) |
(19,975) |
|
(38,416) |
(18,829) |
Less: unallocated restructuring costs 1 |
— |
— |
(86) |
|
(86) |
— |
Adjusted unallocated general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjusted segment profit |
|
|
|
|
|
|
Less: adjusted unallocated general and administrative expenses |
11,494 |
9,712 |
23,539 |
|
35,033 |
21,620 |
Total adjusted operating income |
|
|
|
|
|
|
1 Restructuring charges resulting from cost saving initiatives. |
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2 Loss from the sale of QED and held for sales assets of EC. |
||||||
3 Non-cash impairment charges associated with goodwill. |
||||||
4 Gain on termination of alliance agreement with MacDermid Enthone. |
Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA (In thousands) (Unaudited) |
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Three months ended |
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Six months ended |
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|
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
|
July 1, 2023 |
July 2, 2022 |
Net sales |
|
|
|
|
|
|
Net income (loss) |
|
|
|
|
|
|
Net income (loss) - as a % of net sales |
|
|
( |
|
|
|
Adjustments to net income (loss): |
|
|
|
|
|
|
Equity in net loss of affiliates |
130 |
— |
— |
|
130 |
— |
Income tax (benefit) expense |
(16,491) |
17,517 |
21,469 |
|
4,978 |
37,392 |
Interest expense, net |
78,605 |
31,343 |
84,821 |
|
163,426 |
44,877 |
Other expense (income), net |
7,724 |
9,619 |
(4,658) |
|
3,066 |
14,521 |
GAAP - Operating income |
267,614 |
157,970 |
13,466 |
|
281,080 |
321,316 |
Operating margin - as a % of net sales |
|
|
|
|
|
|
Goodwill Impairment 1 |
— |
— |
88,872 |
|
88,872 |
— |
Deal and transaction costs 2 |
— |
2,410 |
3,001 |
|
3,001 |
7,418 |
Integration costs: |
|
|
|
|
|
|
Professional fees 3 |
13,324 |
9,525 |
11,988 |
|
25,312 |
10,321 |
Severance costs 4 |
965 |
— |
1,362 |
|
2,327 |
— |
Retention costs 5 |
362 |
— |
1,280 |
|
1,642 |
— |
Other costs 6 |
3,789 |
640 |
2,345 |
|
6,134 |
1,090 |
Restructuring costs 7 |
— |
— |
11,242 |
|
11,242 |
— |
Loss on sale of business and held for sale assets 8 |
14,937 |
— |
13,642 |
|
28,579 |
— |
Gain on termination of alliance agreement 9 |
(154,754) |
— |
— |
|
(154,754) |
— |
Amortization of intangible assets 10 |
54,680 |
12,494 |
57,574 |
|
112,254 |
25,145 |
Adjusted operating income |
200,917 |
183,039 |
204,772 |
|
405,689 |
365,290 |
Adjusted operating margin - as a % of net sales |
|
|
|
|
|
|
Depreciation |
43,719 |
24,381 |
46,775 |
|
90,494 |
48,286 |
Adjusted EBITDA |
|
|
|
|
|
|
Adjusted EBITDA - as a % of net sales |
|
|
|
|
|
|
1 Non-cash impairment charges associated with goodwill. |
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2 Deal and transaction costs associated the CMC acquisition and completed and announced divestitures. |
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3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other vendors to assist us in integrating the recently acquired CMC into our operations. These fees arise outside of the ordinary course of our continuing operations. |
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4 Represent severance charges resulting from cost saving initiatives in connection with the CMC acquisition. |
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5 Represents retention charges related directly to the CMC acquisition and completed and announced divestitures, and are not part of our normal, recurring cash operating expenses. |
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6 Represents other employee related costs and other costs incurred relating to the CMC acquisition and the completed and announced divestitures. These costs arise outside of the ordinary course of our continuing operations. |
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7 Restructuring charges resulting from cost saving initiatives. |
||||||
8 Loss from the sale of QED and held for sales assets of EC. |
||||||
9 Gain on termination of alliance agreement with MacDermid Enthone. |
||||||
10 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) |
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|
Three months ended |
|
Six months ended |
|||
|
July 1, 2023 |
July 2, 2022 |
April 1, 2023 |
|
July 1, 2023 |
July 2, 2022 |
GAAP net income (loss) |
|
|
|
|
|
|
Adjustments to net income (loss): |
|
|
|
|
|
|
Goodwill Impairment 1 |
— |
— |
88,872 |
|
88,872 |
— |
Deal and transaction costs 2 |
— |
2,410 |
3,001 |
|
3,001 |
7,418 |
Integration costs: |
|
|
|
|
|
|
Professional fees 3 |
13,324 |
9,525 |
11,988 |
|
25,312 |
10,321 |
Severance costs 4 |
965 |
— |
1,362 |
|
2,327 |
— |
Retention costs 5 |
362 |
— |
1,280 |
|
1,642 |
— |
Other costs 6 |
3,789 |
640 |
2,345 |
|
6,134 |
1,090 |
Restructuring costs 7 |
— |
— |
11,242 |
|
11,242 |
— |
Loss on extinguishment of debt and modification 8 |
4,481 |
— |
3,880 |
|
8,361 |
— |
Loss on sale of business and held for sale assets9 |
14,937 |
— |
13,642 |
|
28,579 |
— |
Infineum termination fee, net 10 |
— |
— |
(10,877) |
|
(10,877) |
— |
Interest expense, net 11 |
— |
22,742 |
— |
|
— |
27,425 |
Amortization of intangible assets 12 |
54,680 |
12,494 |
57,574 |
|
112,254 |
25,145 |
Gain on termination of alliance agreement 13 |
(154,754) |
— |
— |
|
(154,754) |
— |
Tax effect of adjustments to net income (loss) and discrete items14 |
(35,825) |
(10,486) |
1,639 |
|
(34,186) |
(14,646) |
Non-GAAP net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share |
|
|
|
|
|
|
Effect of adjustments to net income (loss) |
|
|
|
|
|
|
Diluted non-GAAP earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted averages shares outstanding |
150,837 |
136,454 |
149,426 |
|
150,609 |
136,503 |
Effect of adjustment to diluted weighted average shares |
— |
— |
955 |
|
— |
— |
Diluted non-GAAP weighted average shares outstanding |
150,837 |
136,454 |
150,381 |
|
150,609 |
136,503 |
1 Non-cash impairment charges associated with goodwill. |
||||||
2 Deal and transaction costs associated with the CMC acquisition and completed and announced divestitures. |
||||||
3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other vendors to assist us in integrating the recently acquired CMC into our operations. These fees arise outside of the ordinary course of our continuing operations. |
||||||
4 Represent severance charges resulting from cost saving initiatives from the CMC acquisition. |
||||||
5 Represents retention charges related directly to the CMC acquisition and completed and announced 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 acquisition and completed and announced divestitures. These costs arise outside of the ordinary course of our continuing operations. |
||||||
7 Restructuring charges resulting from cost saving initiatives. |
||||||
8 Non-recurring loss on extinguishment of debt and modification of our Credit Amendment. |
||||||
9 Loss from the sale of QED and held for sales assets of EC. |
||||||
10 Non-recurring gain from the termination fee with Infineum. |
||||||
11 Non-recurring interest costs related to the financing of the CMC acquisition. |
||||||
12 Non-cash amortization expense associated with intangibles acquired in acquisitions. |
||||||
13 Gain on termination of alliance agreement with MacDermid Enthone. |
||||||
14 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) |
|
|
Third-Quarter Outlook |
Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin |
September 30,2023 |
Net sales |
|
GAAP - Operating income |
|
Operating margin - as a % of net sales |
|
Deal, transaction and integration costs |
12 |
Amortization of intangible assets |
51 |
Adjusted operating income |
|
Adjusted operating margin - as a % of net sales |
|
Depreciation |
47 |
Adjusted EBITDA |
|
Adjusted EBITDA - as a % of net sales |
|
|
Third-Quarter Outlook |
Reconciliation GAAP net income to non-GAAP net income |
September 30,2023 |
GAAP net income |
|
Adjustments to net income: |
|
Deal, transaction and integration costs |
12 |
Amortization of intangible assets |
51 |
Income tax effect |
(11) |
Non-GAAP net income |
|
|
Third-Quarter Outlook |
Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share |
September 30,2023 |
Diluted earnings per common share |
|
Adjustments to diluted earnings per common share: |
|
Deal, transaction and integration costs |
0.09 |
Amortization of intangible assets |
0.34 |
Income tax effect |
(0.09) |
Diluted non-GAAP earnings per common share |
|
Entegris, Inc. and Subsidiaries Reconciliation of Proforma Sales to Proforma Non-GAAP Net Sales (In thousands) (Unaudited) |
|||
|
Three months ended |
Six months ended |
|
|
July 1, 2022 |
April 1, 2022 |
July 1, 2022 |
Proforma Net Sales 1 |
|
|
|
Less: Wood treatment 2 |
(200) |
(10,907) |
(11,107) |
Proforma Net Sales - Non GAAP |
|
|
|
1 The above pro forma results include the addition of CMC Materials, Inc.’s financials recorded prior to the consummation of the merger with the Company on July 6, 2022 to the Company’s reported financials and are provided as a complement to, and should be read in conjunction with, the consolidated financial statements to better facilitate the assessment and measurement of the Company’s operating performance. Intercompany sales between the Company and CMC Materials, Inc have been eliminated. No other adjustments have been included. |
|||
2 The adjustment relates to removal of net sales related to CMC’s wood treatment business. Prior to the acquisition, CMC operated a wood treatment business, which manufactured and sold wood treatment preservatives for utility poles and crossarms. CMC exited this business during the first half of 2022, prior to our acquisition of CMC. The wood treatment business had no ongoing sales at the time of acquisition and removed for comparable purposes. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230803159425/en/
Bill Seymour
VP of Investor Relations
T + 1 952 556 1844
bill.seymour@entegris.com
Source: Entegris, Inc.
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