001-32598 | 41-1941551 | |
(Commission File Number) | (I.R.S. Employer Identification No.) |
129 Concord Road, Billerica, MA | 01821 | |
(Address of principal executive offices) | (Zip Code) |
Exhibit No. | Description | |
99.1 | Press Release, dated July 27, 2017 | |
99.2 | Second Quarter 2017 Earnings Release Presentation Slides, dated July 27, 2017 |
Exhibit No. | Description | |
99.1 | Press Release, dated July 27, 2017 | |
99.2 | Second Quarter 2017 Earnings Release Presentation Slides, dated July 27, 2017 |
![]() | PRESS RELEASE Steven Cantor VP of Corporate Relations T + 978 436 6500 irelations@entegris.com |
• | Record second-quarter revenue of $329.0 million |
• | GAAP net income of $40.0 million, or $0.28 per diluted share |
• | Non-GAAP net income of $48.9 million, or $0.34 per diluted share |
• | First-half 2017 revenue of $646.4 million grew 13.4 percent |
• | First-half 2017 adjusted EBITDA reached $164.1 million, or 25.4 percent of revenue |
_________________________________________________________________________ | ||
ENTEGRIS, INC. | 129 Concord Road, Building 2 | T + 1 978 436 6500 |
entegris.com | Billerica, MA 01821 USA | F + 1 978 436 6745 |
GAAP Results | Q2-2017 | Q2-2016 | Q1-2017 | |||
Net sales | $329,002 | $303,052 | $317,377 | |||
Operating income | $59,090 | $46,400 | $50,920 | |||
Operating margin | 18.0 | % | 15.3 | % | 16.0 | % |
Net income | $39,991 | $32,890 | $32,514 | |||
Diluted earnings per share (EPS) | $0.28 | $0.23 | $0.23 | |||
Non-GAAP Results | ||||||
Non-GAAP adjusted operating income | $73,826 | $57,462 | $61,865 | |||
Adjusted operating margin | 22.4 | % | 19.0 | % | 19.5 | % |
Non-GAAP net income | $48,906 | $40,290 | $40,754 | |||
Non-GAAP EPS | $0.34 | $0.28 | $0.28 |
Three months ended | |||||||
July 1, 2017 | July 2, 2016 | April 1, 2017 | |||||
Net sales | $329,002 | $303,052 | $317,377 | ||||
Cost of sales | 178,699 | 163,847 | 177,781 | ||||
Gross profit | 150,303 | 139,205 | 139,596 | ||||
Selling, general and administrative expenses | 52,985 | 53,597 | 50,492 | ||||
Engineering, research and development expenses | 27,221 | 28,146 | 27,239 | ||||
Amortization of intangible assets | 11,007 | 11,062 | 10,945 | ||||
Operating income | 59,090 | 46,400 | 50,920 | ||||
Interest expense, net | 8,103 | 9,051 | 8,393 | ||||
Other (income) expense, net | (46 | ) | (1,054 | ) | 902 | ||
Income before income tax expense | 51,033 | 38,403 | 41,625 | ||||
Income tax expense | 11,042 | 5,513 | 9,111 | ||||
Net income | $39,991 | $32,890 | $32,514 | ||||
Basic net income per common share: | $0.28 | $0.23 | $0.23 | ||||
Diluted net income per common share: | $0.28 | $0.23 | $0.23 | ||||
Weighted average shares outstanding: | |||||||
Basic | 141,696 | 140,953 | 141,501 | ||||
Diluted | 143,508 | 141,723 | 143,315 |
Six months ended | |||||
July 1, 2017 | July 2, 2016 | ||||
Net sales | $646,379 | $570,076 | |||
Cost of sales | 356,480 | 316,165 | |||
Gross profit | 289,899 | 253,911 | |||
Selling, general and administrative expenses | 103,477 | 101,553 | |||
Engineering, research and development expenses | 54,460 | 54,048 | |||
Amortization of intangible assets | 21,952 | 22,351 | |||
Operating income | 110,010 | 75,959 | |||
Interest expense, net | 16,496 | 18,200 | |||
Other expense (income), net | 856 | (1,729 | ) | ||
Income before income tax expense | 92,658 | 59,488 | |||
Income tax expense | 20,153 | 10,386 | |||
Net income | $72,505 | $49,102 | |||
Basic net income per common share: | $0.51 | $0.35 | |||
Diluted net income per common share: | $0.51 | $0.35 | |||
Weighted average shares outstanding: | |||||
Basic | 141,599 | 140,867 | |||
Diluted | 143,411 | 141,547 |
July 1, 2017 | December 31, 2016 | |||
ASSETS | ||||
Cash and cash equivalents | $405,635 | $406,389 | ||
Accounts receivable, net | 171,113 | 165,675 | ||
Inventories | 194,155 | 183,529 | ||
Deferred tax charges and refundable income taxes | 16,716 | 20,140 | ||
Other current assets | 21,374 | 24,398 | ||
Total current assets | 808,993 | 800,131 | ||
Property, plant and equipment, net | 341,146 | 321,562 | ||
Goodwill | 355,178 | 345,269 | ||
Intangible assets | 206,182 | 217,548 | ||
Deferred tax assets | 8,622 | 8,022 | ||
Other assets | 7,322 | 7,000 | ||
Total assets | $1,727,443 | $1,699,532 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term debt, current maturities | $100,000 | $100,000 | ||
Accounts payable | 56,961 | 61,617 | ||
Accrued liabilities | 75,275 | 83,530 | ||
Income tax payable | 18,786 | 16,424 | ||
Total current liabilities | 251,022 | 261,571 | ||
Long-term debt, excluding current maturities | 435,910 | 484,677 | ||
Other liabilities | 58,242 | 54,066 | ||
Shareholders’ equity | 982,269 | 899,218 | ||
Total liabilities and shareholders’ equity | $1,727,443 | $1,699,532 |
Three months ended | Six months ended | |||||||
July 1, 2017 | July 2, 2016 | July 1, 2017 | July 2, 2016 | |||||
Operating activities: | ||||||||
Net income | $39,991 | $32,890 | $72,505 | $49,102 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 14,411 | 13,825 | 28,388 | 27,525 | ||||
Amortization | 11,007 | 11,062 | 21,952 | 22,351 | ||||
Stock-based compensation expense | 4,039 | 3,505 | 7,909 | 6,366 | ||||
Provision for deferred income taxes | (215 | ) | (720 | ) | 3,207 | (931 | ) | |
Other | 6,497 | 4,408 | 10,130 | 9,204 | ||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts and notes receivable | 4,514 | (29,300 | ) | (3,032 | ) | (36,099 | ) | |
Inventories | (8,422 | ) | 1,609 | (13,837 | ) | (11,389 | ) | |
Accounts payable and accrued liabilities | 10,177 | 23,065 | (13,313 | ) | 13,555 | |||
Income taxes payable and refundable income taxes | 4,209 | 1,133 | 2,957 | 407 | ||||
Other | (1,049 | ) | (278 | ) | 1,725 | (1,553 | ) | |
Net cash provided by operating activities | 85,159 | 61,199 | 118,591 | 78,538 | ||||
Investing activities: | ||||||||
Acquisition of business net of cash acquired | (20,000 | ) | — | (20,000 | ) | — | ||
Acquisition of property and equipment | (20,302 | ) | (14,325 | ) | (42,492 | ) | (32,144 | ) |
Other | 25 | 837 | 211 | (1,658 | ) | |||
Net cash used in investing activities | (40,277 | ) | (13,488 | ) | (62,281 | ) | (33,802 | ) |
Financing activities: | ||||||||
Payments on long-term debt | (25,000 | ) | (25,000 | ) | (50,000 | ) | (25,000 | ) |
Issuance of common stock | 1,864 | 2,380 | 2,905 | 2,380 | ||||
Taxes paid related to net share settlement of equity awards | (664 | ) | (136 | ) | (5,239 | ) | (2,203 | ) |
Other | (5,000 | ) | 42 | (9,270 | ) | (3,482 | ) | |
Net cash used in financing activities | (28,800 | ) | (22,714 | ) | (61,604 | ) | (28,305 | ) |
Effect of exchange rate changes on cash | (1,606 | ) | 4,343 | 4,540 | 7,487 | |||
Increase (decrease) in cash and cash equivalents | 14,476 | 29,340 | (754 | ) | 23,918 | |||
Cash and cash equivalents at beginning of period | 391,159 | 344,403 | 406,389 | 349,825 | ||||
Cash and cash equivalents at end of period | $405,635 | $373,743 | $405,635 | $373,743 |
Three months ended | Six months ended | |||||||||
Net sales | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | |||||
Specialty Chemicals and Engineered Materials | $121,174 | $111,782 | $114,435 | $235,609 | $212,889 | |||||
Microcontamination Control | 104,407 | 91,584 | 100,055 | 204,462 | 169,203 | |||||
Advanced Materials Handling | 103,421 | 99,686 | 102,887 | 206,308 | 187,984 | |||||
Total net sales | $329,002 | $303,052 | $317,377 | $646,379 | $570,076 |
Three months ended | Six months ended | |||||||||
Segment profit | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | |||||
Specialty Chemicals and Engineered Materials | $34,174 | $28,914 | $28,140 | $62,314 | $51,330 | |||||
Microcontamination Control | 36,484 | 28,566 | 35,581 | 72,065 | 46,706 | |||||
Advanced Materials Handling | 19,573 | 22,519 | 18,276 | 37,849 | 41,430 | |||||
Total segment profit | 90,231 | 79,999 | 81,997 | 172,228 | 139,466 | |||||
Amortization of intangibles | 11,007 | 11,062 | 10,945 | 21,952 | 22,351 | |||||
Unallocated expenses | 20,134 | 22,537 | 20,132 | 40,266 | 41,156 | |||||
Total operating income | $59,090 | $46,400 | $50,920 | $110,010 | $75,959 |
Three months ended | Six months ended | |||||||||
July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | ||||||
Net sales | $329,002 | $303,052 | $317,377 | $646,379 | $570,076 | |||||
Gross profit-GAAP | $150,303 | $139,205 | $139,596 | $289,899 | $253,911 | |||||
Adjustments to gross profit: | ||||||||||
Impairment of equipment | 1,966 | — | — | 1,966 | — | |||||
Adjusted gross profit | $152,269 | $139,205 | $139,596 | $291,865 | $253,911 | |||||
Gross margin - as a % of net sales | 45.7 | % | 45.9 | % | 44.0 | % | 44.8 | % | 44.5 | % |
Adjusted gross margin - as a % of net sales | 46.3 | % | 45.9 | % | 44.0 | % | 45.2 | % | 44.5 | % |
Three months ended | Six months ended | |||||||||
Segment profit-GAAP | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | |||||
Specialty Chemicals and Engineered Materials | $34,174 | $28,914 | $28,140 | $62,314 | $51,330 | |||||
Microcontamination Control | 36,484 | 28,566 | 35,581 | 72,065 | 46,706 | |||||
Advanced Materials Handling | 19,573 | 22,519 | 18,276 | 37,849 | 41,430 | |||||
Total segment profit | 90,231 | 79,999 | 81,997 | 172,228 | 139,466 | |||||
Amortization of intangible assets | 11,007 | 11,062 | 10,945 | 21,952 | 22,351 | |||||
Unallocated expenses | 20,134 | 22,537 | 20,132 | 40,266 | 41,156 | |||||
Total operating income | $59,090 | $46,400 | $50,920 | $110,010 | $75,959 | |||||
Segment profit margin-GAAP | ||||||||||
Specialty Chemicals and Engineered Materials | 28.2 | % | 25.9 | % | 24.6 | % | 26.4 | % | 24.1 | % |
Microcontamination Control | 34.9 | % | 31.2 | % | 35.6 | % | 35.2 | % | 27.6 | % |
Advanced Materials Handling | 18.9 | % | 22.6 | % | 17.8 | % | 18.3 | % | 22.0 | % |
Three months ended | Six months ended | |||||||||
Adjusted segment profit | July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | |||||
Specialty Chemicals and Engineered Materials | $34,174 | $28,914 | $28,140 | $62,314 | $51,330 | |||||
Microcontamination Control 1 | 37,927 | 28,566 | 35,581 | 73,508 | 46,706 | |||||
Advanced Materials Handling 2 | 21,859 | 22,519 | 18,276 | 40,135 | 41,430 | |||||
Total adjusted segment profit | 93,960 | 79,999 | 81,997 | 175,957 | 139,466 | |||||
Amortization of intangible assets 3 | — | — | — | — | — | |||||
Unallocated expenses | 20,134 | 22,537 | 20,132 | 40,266 | 41,156 | |||||
Total adjusted operating income | $73,826 | $57,462 | $61,865 | $135,691 | $98,310 | |||||
Adjusted segment profit margin | ||||||||||
Specialty Chemicals and Engineered Materials | 28.2 | % | 25.9 | % | 24.6 | % | 26.4 | % | 24.1 | % |
Microcontamination Control | 36.3 | % | 31.2 | % | 35.6 | % | 36.0 | % | 27.6 | % |
Advanced Materials Handling | 21.1 | % | 22.6 | % | 17.8 | % | 19.5 | % | 22.0 | % |
Three months ended | Six months ended | |||||||||
July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | ||||||
Net sales | $329,002 | $303,052 | $317,377 | $646,379 | $570,076 | |||||
Net income | $39,991 | $32,890 | $32,514 | $72,505 | $49,102 | |||||
Adjustments to net income: | ||||||||||
Income tax expense | 11,042 | 5,513 | 9,111 | 20,153 | 10,386 | |||||
Interest expense, net | 8,103 | 9,051 | 8,393 | 16,496 | 18,200 | |||||
Other (income) expense, net | (46) | (1,054) | 902 | 856 | (1,729) | |||||
GAAP - Operating income | 59,090 | 46,400 | 50,920 | 110,010 | 75,959 | |||||
Severance | 559 | — | — | 559 | — | |||||
Impairment of equipment | 3,170 | — | — | 3,170 | — | |||||
Amortization of intangible assets | 11,007 | 11,062 | 10,945 | 21,952 | 22,351 | |||||
Adjusted operating income | 73,826 | 57,462 | 61,865 | 135,691 | 98,310 | |||||
Depreciation | 14,411 | 13,825 | 13,977 | 28,388 | 27,525 | |||||
Adjusted EBITDA | $88,237 | $71,287 | $75,842 | $164,079 | $125,835 | |||||
Adjusted operating margin | 22.4 | % | 19.0 | % | 19.5 | % | 21.0 | % | 17.2 | % |
Adjusted EBITDA - as a % of net sales | 26.8 | % | 23.5 | % | 23.9 | % | 25.4 | % | 22.1 | % |
Three months ended | Six months ended | ||||||||||
July 1, 2017 | July 2, 2016 | April 1, 2017 | July 1, 2017 | July 2, 2016 | |||||||
GAAP net income | $39,991 | $32,890 | $32,514 | $72,505 | $49,102 | ||||||
Adjustments to net income: | |||||||||||
Severance | 559 | — | — | 559 | — | ||||||
Impairment of equipment | 3,170 | — | — | 3,170 | — | ||||||
Gain on sale of equity investment | — | (38 | ) | — | — | (156 | ) | ||||
Amortization of intangible assets | 11,007 | 11,062 | 10,945 | 21,952 | 22,351 | ||||||
Tax effect of adjustments to net income and discrete items | (5,821 | ) | (3,624 | ) | (2,705 | ) | (8,526 | ) | (7,390 | ) | |
Non-GAAP net income | $48,906 | $40,290 | $40,754 | $89,660 | $63,907 | ||||||
Diluted earnings per common share | $0.28 | $0.23 | $0.23 | $0.51 | $0.35 | ||||||
Effect of adjustments to net income | $0.06 | $0.05 | $0.06 | $0.12 | $0.10 | ||||||
Diluted non-GAAP earnings per common share | $0.34 | $0.28 | $0.28 | $0.63 | $0.45 |
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