(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
ENTEGRIS, INC. | ||||||||
Dated: April 21, 2020 | By: | /s/ Gregory B. Graves | ||||||
Name: | Gregory B. Graves | |||||||
Title: | Executive Vice President and Chief Financial Officer |
![]() | PRESS RELEASE Bill Seymour VP of Investor Relations T + 1 952 556 1844 bill.seymour@entegris.com |
GAAP Results | March 28, 2020 | March 30, 2019 | December 31, 2019 | ||||||||
Net sales | $412,327 | $391,047 | $426,998 | ||||||||
Operating income | $80,744 | $47,491 | $84,085 | ||||||||
Operating margin | 19.6 | % | 12.1 | % | 19.7 | % | |||||
Net income | $61,006 | $32,658 | $57,438 | ||||||||
Diluted earnings per share (EPS) | $0.45 | $0.24 | $0.42 | ||||||||
Non-GAAP Results | |||||||||||
Non-GAAP adjusted operating income | $99,638 | $92,180 | $104,647 | ||||||||
Non-GAAP adjusted operating margin | 24.2 | % | 23.6 | % | 24.5 | % | |||||
Non-GAAP net income | $75,571 | $67,894 | $74,582 | ||||||||
Non-GAAP EPS | $0.55 | $0.50 | $0.55 | ||||||||
Three months ended | ||||||||||||||
March 28, 2020 | March 30, 2019 | December 31, 2019 | ||||||||||||
Net sales | $ | 412,327 | $ | 391,047 | $ | 426,998 | ||||||||
Cost of sales | 226,849 | 213,654 | 229,362 | |||||||||||
Gross profit | 185,478 | 177,393 | 197,636 | |||||||||||
Selling, general and administrative expenses | 58,891 | 82,254 | 67,171 | |||||||||||
Engineering, research and development expenses | 29,632 | 28,991 | 30,352 | |||||||||||
Amortization of intangible assets | 16,211 | 18,657 | 16,028 | |||||||||||
Operating income | 80,744 | 47,491 | 84,085 | |||||||||||
Interest expense, net | 10,238 | 9,659 | 12,743 | |||||||||||
Other expense (income), net | 878 | (248) | 248 | |||||||||||
Income before income tax expense | 69,628 | 38,080 | 71,094 | |||||||||||
Income tax expense | 8,622 | 5,422 | 13,656 | |||||||||||
Net income | $ | 61,006 | $ | 32,658 | $ | 57,438 | ||||||||
Basic net income per common share: | $ | 0.45 | $ | 0.24 | $ | 0.43 | ||||||||
Diluted net income per common share: | $ | 0.45 | $ | 0.24 | $ | 0.42 | ||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 134,745 | 135,299 | 134,778 | |||||||||||
Diluted | 136,369 | 136,692 | 136,470 |
March 28, 2020 | December 31, 2019 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 335,077 | $ | 351,911 | ||||||||||||||||
Trade accounts and notes receivable, net | 277,796 | 234,409 | ||||||||||||||||||
Inventories, net | 300,694 | 287,098 | ||||||||||||||||||
Deferred tax charges and refundable income taxes | 25,650 | 24,552 | ||||||||||||||||||
Other current assets | 27,089 | 34,427 | ||||||||||||||||||
Total current assets | 966,306 | 932,397 | ||||||||||||||||||
Property, plant and equipment, net | 474,841 | 479,544 | ||||||||||||||||||
Other assets: | ||||||||||||||||||||
Right-of-use assets | 50,058 | 50,160 | ||||||||||||||||||
Goodwill | 726,234 | 695,044 | ||||||||||||||||||
Intangible assets, net | 355,815 | 333,952 | ||||||||||||||||||
Deferred tax assets and other noncurrent tax assets | 11,563 | 11,245 | ||||||||||||||||||
Other | 13,748 | 13,744 | ||||||||||||||||||
Total assets | $ | 2,598,565 | $ | 2,516,086 | ||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Long-term debt, current maturities | $ | 4,000 | $ | 4,000 | ||||||||||||||||
Accounts payable | 81,561 | 84,207 | ||||||||||||||||||
Accrued liabilities | 90,447 | 150,118 | ||||||||||||||||||
Income tax payable | 25,982 | 26,108 | ||||||||||||||||||
Total current liabilities | 201,990 | 264,433 | ||||||||||||||||||
Long-term debt, excluding current maturities | 1,074,888 | 932,484 | ||||||||||||||||||
Long-term lease liability | 43,549 | 43,827 | ||||||||||||||||||
Other liabilities | 106,811 | 109,453 | ||||||||||||||||||
Shareholders’ equity | 1,171,327 | 1,165,889 | ||||||||||||||||||
Total liabilities and equity | $ | 2,598,565 | $ | 2,516,086 |
Three months ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
Operating activities: | ||||||||
Net income | $ | 61,006 | $ | 32,658 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 20,648 | 16,721 | ||||||
Amortization | 16,211 | 18,657 | ||||||
Stock-based compensation expense | 4,994 | 4,653 | ||||||
Other | 5,563 | 5,694 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||
Trade accounts and notes receivable | (43,995) | (9,109) | ||||||
Inventories | (18,205) | (2,131) | ||||||
Accounts payable and accrued liabilities | (38,020) | (45,019) | ||||||
Income taxes payable, refundable income taxes and noncurrent taxes payable | (225) | (42,873) | ||||||
Other | 3,426 | 18,211 | ||||||
Net cash provided by (used in) operating activities | 11,403 | (2,538) | ||||||
Investing activities: | ||||||||
Acquisition of property and equipment | (22,585) | (34,465) | ||||||
Acquisition of business, net of cash | (75,630) | (49,789) | ||||||
Other | 5 | 197 | ||||||
Net cash used in investing activities | (98,210) | (84,057) | ||||||
Financing activities: | ||||||||
Proceeds from short-term borrowings and long-term debt | 217,000 | — | ||||||
Payments on long-term debt | (75,000) | (1,000) | ||||||
Dividend payments | (10,847) | (9,470) | ||||||
Issuance of common stock | 551 | 917 | ||||||
Taxes paid related to net share settlement of equity awards | (11,440) | (7,727) | ||||||
Repurchase and retirement of common stock | (29,654) | (35,321) | ||||||
Deferred acquisition payments | (16,125) | — | ||||||
Other | (2,890) | (250) | ||||||
Net cash provided by (used in) financing activities | 71,595 | (52,851) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,712) | (256) | ||||||
(Decrease) in cash and cash equivalents | (16,924) | (139,702) | ||||||
Cash and cash equivalents at beginning of period | 351,911 | 482,062 | ||||||
Cash and cash equivalents at end of period | $ | 334,987 | $ | 342,360 |
Three months ended | |||||||||||
Net sales | March 28, 2020 | March 30, 2019 | December 31, 2019 | ||||||||
Specialty Chemicals and Engineered Materials | $ | 144,214 | $ | 124,470 | $ | 146,747 | |||||
Microcontamination Control | 159,261 | 157,706 | 169,794 | ||||||||
Advanced Materials Handling | 116,137 | 116,064 | 117,455 | ||||||||
Inter-segment elimination | (7,285) | (7,193) | (6,998) | ||||||||
Total net sales | $ | 412,327 | $ | 391,047 | $ | 426,998 |
Three months ended | |||||||||||
Segment profit | March 28, 2020 | March 30, 2019 | December 31, 2019 | ||||||||
Specialty Chemicals and Engineered Materials | $ | 32,670 | $ | 24,431 | $ | 32,822 | |||||
Microcontamination Control | 50,167 | 47,323 | 57,157 | ||||||||
Advanced Materials Handling | 20,632 | 22,367 | 20,686 | ||||||||
Total segment profit | 103,469 | 94,121 | 110,665 | ||||||||
Amortization of intangibles | 16,211 | 18,657 | 16,028 | ||||||||
Unallocated expenses | 6,514 | 27,973 | 10,552 | ||||||||
Total operating income | $ | 80,744 | $ | 47,491 | $ | 84,085 |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | December 31, 2019 | |||||||||
Net sales | $ | 412,327 | $ | 391,047 | $ | 426,998 | |||||
Gross profit-GAAP | $ | 185,478 | $ | 177,393 | $ | 197,636 | |||||
Adjustments to gross profit: | |||||||||||
Severance and restructuring costs | — | 358 | (12) | ||||||||
Charge for fair value mark-up of acquired inventory sold | 361 | 2,155 | 211 | ||||||||
Adjusted gross profit | $ | 185,839 | $ | 179,906 | $ | 197,835 | |||||
Gross margin - as a % of net sales | 45.0 | % | 45.4 | % | 46.3 | % | |||||
Adjusted gross margin - as a % of net sales | 45.1 | % | 46.0 | % | 46.3 | % |
Three months ended | |||||||||||
Segment profit-GAAP | March 28, 2020 | March 30, 2019 | December 31, 2019 | ||||||||
Specialty Chemicals and Engineered Materials (SCEM) | $ | 32,670 | $ | 24,431 | $ | 32,822 | |||||
Microcontamination Control (MC) | 50,167 | 47,323 | 57,157 | ||||||||
Advanced Materials Handling (AMH) | 20,632 | 22,367 | 20,686 | ||||||||
Total segment profit | 103,469 | 94,121 | 110,665 | ||||||||
Amortization of intangible assets | 16,211 | 18,657 | 16,028 | ||||||||
Unallocated expenses | 6,514 | 27,973 | 10,552 | ||||||||
Total operating income | $ | 80,744 | $ | 47,491 | $ | 84,085 |
Three months ended | |||||||||||
Adjusted segment profit | March 28, 2020 | March 30, 2019 | December 31, 2019 | ||||||||
SCEM segment profit | $ | 32,670 | $ | 24,431 | $ | 32,822 | |||||
Severance and restructuring costs | 174 | 519 | 184 | ||||||||
Charge for fair value write-up of acquired inventory sold | 235 | 120 | (476) | ||||||||
SCEM adjusted segment profit | $ | 33,079 | $ | 25,070 | $ | 32,530 | |||||
MC segment profit | $ | 50,167 | $ | 47,323 | $ | 57,157 | |||||
Severance and restructuring costs | 190 | 724 | 195 | ||||||||
Charge for fair value write-up of acquired inventory sold | 126 | 2,035 | 687 | ||||||||
MC adjusted segment profit | $ | 50,483 | $ | 50,082 | $ | 58,039 | |||||
AMH segment profit | $ | 20,632 | $ | 22,367 | $ | 20,686 | |||||
Severance and restructuring costs | 135 | 578 | (379) | ||||||||
AMH adjusted segment profit | $ | 20,767 | $ | 22,945 | $ | 20,307 | |||||
Unallocated general and administrative expenses | $ | 6,514 | $ | 27,973 | $ | 10,552 | |||||
Unallocated deal and integration costs | (1,479) | (22,056) | (4,323) | ||||||||
Unallocated severance and restructuring costs | (344) | — | — | ||||||||
Adjusted unallocated general and administrative expenses | $ | 4,691 | $ | 5,917 | $ | 6,229 | |||||
Total adjusted segment profit | $ | 104,329 | $ | 98,097 | $ | 110,876 | |||||
Adjusted amortization of intangible assets | — | — | — | ||||||||
Adjusted unallocated expenses | 4,691 | 5,917 | 6,229 | ||||||||
Total adjusted operating income | $ | 99,638 | $ | 92,180 | $ | 104,647 |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | December 31, 2019 | |||||||||
Net sales | $ | 412,327 | $ | 391,047 | $ | 426,998 | |||||
Net income | $ | 61,006 | $ | 32,658 | $ | 57,438 | |||||
Adjustments to net income: | |||||||||||
Income tax expense | 8,622 | 5,422 | 13,656 | ||||||||
Interest expense, net | 10,238 | 9,659 | 12,743 | ||||||||
Other expense (income), net | 878 | (248) | 248 | ||||||||
GAAP - Operating income | 80,744 | 47,491 | 84,085 | ||||||||
Charge for fair value write-up of acquired inventory sold | 361 | 2,155 | 211 | ||||||||
Deal and transaction costs | 1,431 | 19,136 | 973 | ||||||||
Integration costs | 48 | 2,920 | 3,350 | ||||||||
Severance and restructuring costs | 843 | 1,821 | — | ||||||||
Amortization of intangible assets | 16,211 | 18,657 | 16,028 | ||||||||
Adjusted operating income | 99,638 | 92,180 | 104,647 | ||||||||
Depreciation | 20,648 | 16,721 | 20,352 | ||||||||
Adjusted EBITDA | $ | 120,286 | $ | 108,901 | $ | 124,999 | |||||
Net income - as a % of net sales | 14.8 | % | 8.4 | % | 13.5 | % | |||||
Adjusted operating margin | 24.2 | % | 23.6 | % | 24.5 | % | |||||
Adjusted EBITDA - as a % of net sales | 29.2 | % | 27.8 | % | 29.3 | % |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | December 31, 2019 | |||||||||
GAAP net income | $ | 61,006 | $ | 32,658 | $ | 57,438 | |||||
Adjustments to net income: | |||||||||||
Charge for fair value write-up of inventory acquired | 361 | 2,155 | 211 | ||||||||
Deal and transaction costs | 1,431 | 19,547 | 973 | ||||||||
Integration costs | 48 | 2,920 | 3,350 | ||||||||
Severance and restructuring costs | 843 | 1,821 | — | ||||||||
Loss on debt extinguishment and modification | — | — | 1,980 | ||||||||
Amortization of intangible assets | 16,211 | 18,657 | 16,028 | ||||||||
Tax effect of adjustments to net income and discrete items1 | (4,329) | (9,864) | (5,398) | ||||||||
Non-GAAP net income | $ | 75,571 | $ | 67,894 | $ | 74,582 | |||||
Diluted earnings per common share | $ | 0.45 | $ | 0.24 | $ | 0.42 | |||||
Effect of adjustments to net income | $ | 0.11 | $ | 0.26 | $ | 0.13 | |||||
Diluted non-GAAP earnings per common share | $ | 0.55 | $ | 0.50 | $ | 0.55 |
Second-Quarter Outlook | |||||
Reconciliation GAAP net income to non-GAAP net income | June 27, 2020 | ||||
GAAP net income | $50 - $59 | ||||
Adjustments to net income: | |||||
Restructuring and integration costs | 2 | ||||
Amortization of intangible assets | 12 | ||||
Income tax effect | (3) | ||||
Non-GAAP net income | $61 - $70 |
Second-Quarter Outlook | |||||
Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share | June 27, 2020 | ||||
Diluted earnings per common share | $0.37 - $0.43 | ||||
Adjustments to diluted earnings per common share: | |||||
Restructuring and integration costs | 0.01 | ||||
Amortization of intangible assets | 0.09 | ||||
Income tax effect | (0.02) | ||||
Diluted non-GAAP earnings per common share | $0.45 to $0.51 |
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