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 | ||
99.2 |
Exhibit No. | Description | |
99.1 | ||
99.2 |
PRESS RELEASE Steven Cantor VP of Corporate Relations T + 978 436 6500 irelations@entegris.com |
_________________________________________________________________________ | ||
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 | Q2-2018 | Q2-2017 | Q1-2018 | |||
Net sales | $383,059 | $329,002 | $367,199 | |||
Operating income | $74,933 | $59,090 | $78,473 | |||
Operating margin | 19.6 | % | 18.0 | % | 21.4 | % |
Net income | $54,349 | $39,991 | $57,562 | |||
Diluted earnings per share (EPS) | $0.38 | $0.28 | $0.40 | |||
Non-GAAP Results | ||||||
Non-GAAP adjusted operating income | $93,473 | $73,826 | $90,142 | |||
Non-GAAP adjusted operating margin | 24.4 | % | 22.4 | % | 24.5 | % |
Non-GAAP net income | $69,835 | $48,906 | $68,015 | |||
Non-GAAP EPS | $0.49 | $0.34 | $0.47 |
Three months ended | |||||||
June 30, 2018 | July 1, 2017 | March 31, 2018 | |||||
Net sales | $383,059 | $329,002 | $367,199 | ||||
Cost of sales | 200,681 | 178,699 | 191,202 | ||||
Gross profit | 182,378 | 150,303 | 175,997 | ||||
Selling, general and administrative expenses | 65,200 | 52,985 | 58,269 | ||||
Engineering, research and development expenses | 30,231 | 27,221 | 27,586 | ||||
Amortization of intangible assets | 12,014 | 11,007 | 11,669 | ||||
Operating income | 74,933 | 59,090 | 78,473 | ||||
Interest expense, net | 6,925 | 8,103 | 7,226 | ||||
Other expense (income), net | 3,877 | (46 | ) | 139 | |||
Income before income tax expense | 64,131 | 51,033 | 71,108 | ||||
Income tax expense | 9,782 | 11,042 | 13,546 | ||||
Net income | $54,349 | $39,991 | $57,562 | ||||
Basic net income per common share: | $0.38 | $0.28 | $0.41 | ||||
Diluted net income per common share: | $0.38 | $0.28 | $0.40 | ||||
Weighted average shares outstanding: | |||||||
Basic | 141,701 | 141,696 | 141,581 | ||||
Diluted | 143,238 | 143,508 | 143,652 |
Six months ended | |||||
June 30, 2018 | July 1, 2017 | ||||
Net sales | $750,258 | $646,379 | |||
Cost of sales | 391,883 | 356,480 | |||
Gross profit | 358,375 | 289,899 | |||
Selling, general and administrative expenses | 123,469 | 103,477 | |||
Engineering, research and development expenses | 57,817 | 54,460 | |||
Amortization of intangible assets | 23,683 | 21,952 | |||
Operating income | 153,406 | 110,010 | |||
Interest expense, net | 14,151 | 16,496 | |||
Other expense, net | 4,016 | 856 | |||
Income before income tax expense | 135,239 | 92,658 | |||
Income tax expense | 23,328 | 20,153 | |||
Net income | $111,911 | $72,505 | |||
Basic net income per common share: | $0.79 | $0.51 | |||
Diluted net income per common share: | $0.78 | $0.51 | |||
Weighted average shares outstanding: | |||||
Basic | 141,641 | 141,599 | |||
Diluted | 143,445 | 143,411 |
June 30, 2018 | December 31, 2017 | |||
ASSETS | ||||
Cash and cash equivalents | $257,106 | $625,408 | ||
Accounts receivable, net | 200,395 | 183,434 | ||
Inventories | 265,358 | 198,089 | ||
Deferred tax charges and refundable income taxes | 21,647 | 18,012 | ||
Other current assets | 29,720 | 32,665 | ||
Total current assets | 774,226 | 1,057,608 | ||
Property, plant and equipment, net | 380,259 | 359,523 | ||
Goodwill | 529,933 | 359,688 | ||
Intangible assets | 361,429 | 182,430 | ||
Deferred tax assets | 10,980 | 9,103 | ||
Other assets | 9,281 | 7,820 | ||
Total assets | $2,066,108 | $1,976,172 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term debt, current maturities | — | $100,000 | ||
Accounts payable | 71,895 | 68,762 | ||
Accrued liabilities | 113,659 | 99,374 | ||
Income tax payable | 18,708 | 22,835 | ||
Total current liabilities | 204,262 | 290,971 | ||
Long-term debt, excluding current maturities | 650,223 | 574,380 | ||
Other liabilities | 158,718 | 117,803 | ||
Shareholders’ equity | 1,052,905 | 993,018 | ||
Total liabilities and shareholders’ equity | $2,066,108 | $1,976,172 |
Three months ended | Six months ended | |||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||
Operating activities: | ||||||||
Net income | $54,349 | $39,991 | $111,911 | $72,505 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 15,802 | 14,411 | 31,699 | 28,388 | ||||
Amortization | 12,014 | 11,007 | 23,683 | 21,952 | ||||
Stock-based compensation expense | 4,429 | 4,039 | 8,557 | 7,909 | ||||
Provision for deferred income taxes | (1,036 | ) | (215 | ) | (1,757 | ) | 3,207 | |
Other | 3,137 | 6,497 | 4,640 | 10,130 | ||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts and notes receivable | 8,698 | 4,514 | 2,687 | (3,032 | ) | |||
Inventories | (7,517 | ) | (8,422 | ) | (22,472 | ) | (13,837 | ) |
Accounts payable and accrued liabilities | 19,019 | 10,177 | (14,966 | ) | (13,313 | ) | ||
Income taxes payable and refundable income taxes | (14,207 | ) | 4,209 | (7,515 | ) | 2,957 | ||
Other | 3,601 | (1,049 | ) | 639 | 1,725 | |||
Net cash provided by operating activities | 98,289 | 85,159 | 137,106 | 118,591 | ||||
Investing activities: | ||||||||
Acquisition of property and equipment | (26,390 | ) | (20,000 | ) | (47,437 | ) | (42,492 | ) |
Acquisition of businesses, net of cash acquired | (342,569 | ) | (20,302 | ) | (380,225 | ) | (20,000 | ) |
Other | 1,759 | 25 | 1,905 | 211 | ||||
Net cash used in investing activities | (367,200 | ) | (40,277 | ) | (425,757 | ) | (62,281 | ) |
Financing activities: | ||||||||
Payments on long-term debt | (2,000 | ) | (25,000 | ) | (27,000 | ) | (50,000 | ) |
Issuance of common stock | 2,554 | 1,864 | 3,027 | 2,905 | ||||
Taxes paid related to net share settlement of equity awards | (290 | ) | (664 | ) | (14,413 | ) | (5,239 | ) |
Repurchase and retirement of common stock | (10,000 | ) | (4,000 | ) | (20,000 | ) | (8,000 | ) |
Dividend payments | (9,919 | ) | — | (19,802 | ) | — | ||
Other | 1,750 | (1,000 | ) | 1,504 | (1,270 | ) | ||
Net cash used in financing activities | (17,905 | ) | (28,800 | ) | (76,684 | ) | (61,604 | ) |
Effect of exchange rate changes on cash | (6,314 | ) | (1,606 | ) | (2,967 | ) | 4,540 | |
(Decrease) increase in cash and cash equivalents | (293,130 | ) | 14,476 | (368,302 | ) | (754 | ) | |
Cash and cash equivalents at beginning of period | 550,236 | 391,159 | 625,408 | 406,389 | ||||
Cash and cash equivalents at end of period | $257,106 | $405,635 | $257,106 | $405,635 |
Three months ended | Six months ended | |||||||||
Net sales | June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||
Specialty Chemicals and Engineered Materials | $134,336 | $121,174 | $130,743 | $265,079 | $235,609 | |||||
Microcontamination Control | 124,681 | 104,407 | 118,637 | 243,318 | 204,462 | |||||
Advanced Materials Handling | 124,042 | 103,421 | 117,819 | 241,861 | 206,308 | |||||
Total net sales | $383,059 | $329,002 | $367,199 | $750,258 | $646,379 |
Three months ended | Six months ended | |||||||||
Segment profit1 | June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||
Specialty Chemicals and Engineered Materials | $37,316 | $29,060 | $31,562 | $68,878 | $52,188 | |||||
Microcontamination Control | 39,054 | 31,796 | 41,991 | 81,045 | 62,783 | |||||
Advanced Materials Handling | 23,114 | 15,169 | 23,142 | 46,256 | 29,129 | |||||
Total segment profit | 99,484 | 76,025 | 96,695 | 196,179 | 144,100 | |||||
Amortization of intangibles | 12,014 | 11,007 | 11,669 | 23,683 | 21,952 | |||||
Unallocated expenses | 12,537 | 5,928 | 6,553 | 19,090 | 12,138 | |||||
Total operating income | $74,933 | $59,090 | $78,473 | $153,406 | $110,010 |
Three months ended | Six months ended | ||||||||||
June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||||
Net sales | $383,059 | $329,002 | $367,199 | $750,258 | $646,379 | ||||||
Gross profit-GAAP | $182,378 | $150,303 | $175,997 | $358,375 | $289,899 | ||||||
Adjustments to gross profit: | |||||||||||
Charge for fair value mark-up of acquired inventory sold | 208 | — | — | 208 | — | ||||||
Impairment of equipment | — | 1,966 | — | — | 1,966 | ||||||
Adjusted gross profit | $182,586 | $152,269 | $175,997 | $358,583 | $291,865 | ||||||
Gross margin - as a % of net sales | 47.6 | % | 45.7 | % | 47.9 | % | 47.8 | % | 44.8 | % | |
Adjusted gross margin - as a % of net sales | 47.7 | % | 46.3 | % | 47.9 | % | 47.8 | % | 45.2 | % |
Three months ended | Six months ended | |||||||||
Segment profit-GAAP | June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||
Specialty Chemicals and Engineered Materials | $37,316 | $29,060 | $31,562 | $68,878 | $52,188 | |||||
Microcontamination Control | 39,054 | 31,796 | 41,991 | 81,045 | 62,783 | |||||
Advanced Materials Handling | 23,114 | 15,169 | 23,142 | 46,256 | 29,129 | |||||
Total segment profit | 99,484 | 76,025 | 96,695 | 196,179 | 144,100 | |||||
Amortization of intangible assets | 12,014 | 11,007 | 11,669 | 23,683 | 21,952 | |||||
Unallocated expenses | 12,537 | 5,928 | 6,553 | 19,090 | 12,138 | |||||
Total operating income | $74,933 | $59,090 | $78,473 | $153,406 | $110,010 |
Three months ended | Six months ended | |||||||||
Adjusted segment profit | June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||
Specialty Chemicals and Engineered Materials | $37,316 | $29,060 | $31,562 | $68,878 | $52,188 | |||||
Microcontamination Control 1 | 39,262 | 33,239 | 41,991 | 81,253 | 64,226 | |||||
Advanced Materials Handling 2 | 23,114 | 17,455 | 23,142 | 46,256 | 31,415 | |||||
Total adjusted segment profit | 99,692 | 79,754 | 96,695 | 196,387 | 147,829 | |||||
Amortization of intangible assets3 | — | — | — | — | — | |||||
Unallocated expenses4 | 6,219 | 5,928 | 6,553 | 12,772 | 12,138 | |||||
Total adjusted operating income | $93,473 | $73,826 | $90,142 | $183,615 | $135,691 |
Three months ended | Six months ended | ||||||||||
June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||||
Net sales | $383,059 | $329,002 | $367,199 | $750,258 | $646,379 | ||||||
Net income | $54,349 | $39,991 | $57,562 | $111,911 | $72,505 | ||||||
Adjustments to net income: | |||||||||||
Income tax expense | 9,782 | 11,042 | 13,546 | 23,328 | 20,153 | ||||||
Interest expense, net | 6,925 | 8,103 | 7,226 | 14,151 | 16,496 | ||||||
Other expense, net | 3,877 | (46) | 139 | 4,016 | 856 | ||||||
GAAP - Operating income | 74,933 | 59,090 | 78,473 | 153,406 | 110,010 | ||||||
Charge for fair value write-up of acquired inventory sold | 208 | — | — | 208 | — | ||||||
Deal Costs | 5,121 | — | — | 5,121 | — | ||||||
Integration Costs | 1,197 | — | — | 1,197 | — | ||||||
Severance | — | 559 | — | — | 559 | ||||||
Impairment of equipment | — | 3,170 | — | — | 3,170 | ||||||
Amortization of intangible assets | 12,014 | 11,007 | 11,669 | 23,683 | 21,952 | ||||||
Adjusted operating income | 93,473 | 73,826 | 90,142 | 183,615 | 135,691 | ||||||
Depreciation | 15,802 | 14,411 | 15,897 | 31,699 | 28,388 | ||||||
Adjusted EBITDA | $109,275 | $88,237 | $106,039 | $215,314 | $164,079 | ||||||
Adjusted operating margin | 24.4 | % | 22.4 | % | 24.5 | % | 24.5 | % | 21.0 | % | |
Adjusted EBITDA - as a % of net sales | 28.5 | % | 26.8 | % | 28.9 | % | 28.7 | % | 25.4 | % |
Three months ended | Six months ended | ||||||||||
June 30, 2018 | July 1, 2017 | March 31, 2018 | June 30, 2018 | July 1, 2017 | |||||||
GAAP net income | $54,349 | $39,991 | $57,562 | $111,911 | $72,505 | ||||||
Adjustments to net income: | |||||||||||
Charge for fair value write-up of acquired inventory sold | 208 | — | — | 208 | — | ||||||
Deal Costs | 5,121 | — | — | 5,121 | — | ||||||
Integration Costs | 1,197 | — | — | 1,197 | — | ||||||
Severance | — | 559 | — | — | 559 | ||||||
Impairment of equipment | — | 3,170 | — | — | 3,170 | ||||||
Amortization of intangible assets | 12,014 | 11,007 | 11,669 | 23,683 | 21,952 | ||||||
Tax effect of adjustments to net income and discrete items1 | (3,702 | ) | (5,821 | ) | (2,710 | ) | (6,412 | ) | (8,526 | ) | |
Tax effect of Tax Cuts and Jobs Act | 648 | — | $1,494 | $2,142 | — | ||||||
Non-GAAP net income | $69,835 | $48,906 | $68,015 | $137,850 | $89,660 | ||||||
Diluted earnings per common share | $0.38 | $0.28 | $0.40 | $0.78 | $0.51 | ||||||
Effect of adjustments to net income | $0.11 | $0.06 | $0.07 | $0.18 | $0.12 | ||||||
Diluted non-GAAP earnings per common share | $0.49 | $0.34 | $0.47 | $0.96 | $0.63 |
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