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(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 INDEX | ||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ENTEGRIS, INC. | ||||||||
Dated: August 2, 2022 | 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 | July 2, 2022 | July 3, 2021 | April 2, 2022 | ||||||||
Net sales | $692,489 | $571,352 | $649,646 | ||||||||
Operating income | $157,970 | $138,889 | $163,346 | ||||||||
Operating margin - as a % of net sales | 22.8 | % | 24.3 | % | 25.1 | % | |||||
Net income | $99,491 | $88,770 | $125,705 | ||||||||
Diluted earnings per common share | $0.73 | $0.65 | $0.92 | ||||||||
Non-GAAP Results | |||||||||||
Non-GAAP adjusted operating income | $183,039 | $151,603 | $182,251 | ||||||||
Non-GAAP adjusted operating margin - as a % of net sales | 26.4 | % | 26.5 | % | 28.1 | % | |||||
Non-GAAP net income | $136,816 | $116,711 | $145,133 | ||||||||
Diluted non-GAAP earnings per common share | $1.00 | $0.85 | $1.06 | ||||||||
Three months ended | ||||||||||||||
July 2, 2022 | July 3, 2021 | April 2, 2022 | ||||||||||||
Net sales | $692,489 | $571,352 | $649,646 | |||||||||||
Cost of sales | 382,092 | 305,968 | 339,826 | |||||||||||
Gross profit | 310,397 | 265,384 | 309,820 | |||||||||||
Selling, general and administrative expenses | 90,685 | 72,621 | 87,108 | |||||||||||
Engineering, research and development expenses | 49,248 | 41,972 | 46,715 | |||||||||||
Amortization of intangible assets | 12,494 | 11,902 | 12,651 | |||||||||||
Operating income | 157,970 | 138,889 | 163,346 | |||||||||||
Interest expense, net | 31,343 | 10,643 | 12,864 | |||||||||||
Other expense, net | 9,619 | 23,560 | 4,902 | |||||||||||
Income before income tax expense | 117,008 | 104,686 | 145,580 | |||||||||||
Income tax expense | 17,517 | 15,916 | 19,875 | |||||||||||
Net income | $99,491 | $88,770 | $125,705 | |||||||||||
Basic earnings per common share: | $0.73 | $0.66 | $0.93 | |||||||||||
Diluted earnings per common share: | $0.73 | $0.65 | $0.92 | |||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 135,895 | 135,498 | 135,670 | |||||||||||
Diluted | 136,454 | 136,533 | 136,552 |
Six months ended | |||||||||||
July 2, 2022 | July 3, 2021 | ||||||||||
Net sales | $1,342,135 | $1,084,196 | |||||||||
Cost of sales | 721,918 | 583,826 | |||||||||
Gross profit | 620,217 | 500,370 | |||||||||
Selling, general and administrative expenses | 177,793 | 144,010 | |||||||||
Engineering, research and development expenses | 95,963 | 79,720 | |||||||||
Amortization of intangible assets | 25,145 | 23,773 | |||||||||
Operating income | 321,316 | 252,867 | |||||||||
Interest expense, net | 44,207 | 22,224 | |||||||||
Other expense, net | 14,521 | 27,890 | |||||||||
Income before income tax expense | 262,588 | 202,753 | |||||||||
Income tax expense | 37,392 | 29,307 | |||||||||
Net income | $225,196 | $173,446 | |||||||||
Basic earnings per common share: | $1.66 | $1.28 | |||||||||
Diluted earnings per common share: | $1.65 | $1.27 | |||||||||
Weighted average shares outstanding: | |||||||||||
Basic | 135,783 | 135,283 | |||||||||
Diluted | 136,503 | 136,518 |
July 2, 2022 | December 31, 2021 | ||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash, cash equivalents and restricted cash | $2,743,231 | $402,565 | |||||||||||||||
Trade accounts and notes receivable, net | 381,251 | 347,413 | |||||||||||||||
Inventories, net | 583,766 | 475,213 | |||||||||||||||
Deferred tax charges and refundable income taxes | 38,907 | 35,312 | |||||||||||||||
Other current assets | 129,003 | 52,867 | |||||||||||||||
Total current assets | 3,876,158 | 1,313,370 | |||||||||||||||
Property, plant and equipment, net | 779,631 | 654,098 | |||||||||||||||
Other assets: | |||||||||||||||||
Right-of-use assets | 68,389 | 66,563 | |||||||||||||||
Goodwill | 789,540 | 793,702 | |||||||||||||||
Intangible assets, net | 308,871 | 335,113 | |||||||||||||||
Deferred tax assets and other noncurrent tax assets | 26,549 | 17,671 | |||||||||||||||
Other | 12,033 | 11,379 | |||||||||||||||
Total assets | $5,861,171 | $3,191,896 | |||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $146,441 | $130,734 | |||||||||||||||
Accrued liabilities | 198,171 | 199,131 | |||||||||||||||
Income tax payable | 48,523 | 49,136 | |||||||||||||||
Total current liabilities | 393,135 | 379,001 | |||||||||||||||
Long-term debt, excluding current maturities | 3,408,801 | 937,027 | |||||||||||||||
Long-term lease liability | 60,893 | 60,101 | |||||||||||||||
Other liabilities | 85,628 | 101,986 | |||||||||||||||
Shareholders’ equity | 1,912,714 | 1,713,781 | |||||||||||||||
Total liabilities and equity | $5,861,171 | $3,191,896 |
Three months ended | Six months ended | |||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||
Operating activities: | ||||||||||||||
Net income | $99,491 | $88,770 | $225,196 | $173,446 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation | 24,381 | 22,574 | 48,286 | 44,669 | ||||||||||
Amortization | 12,494 | 11,902 | 25,145 | 23,773 | ||||||||||
Share-based compensation expense | 10,182 | 7,519 | 19,467 | 14,657 | ||||||||||
Loss on extinguishment of debt and modification | — | 23,338 | — | 23,338 | ||||||||||
Other | 8,492 | (8,369) | 8,687 | (203) | ||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||||
Trade accounts and notes receivable | (26,138) | (26,667) | (57,309) | (48,231) | ||||||||||
Inventories | (47,465) | (30,386) | (124,941) | (69,723) | ||||||||||
Accounts payable and accrued liabilities | 49,468 | 13,244 | 27,145 | (15,347) | ||||||||||
Income taxes payable, refundable income taxes and noncurrent taxes payable | (20,308) | (22,854) | (3,548) | (26,442) | ||||||||||
Other | 313 | 2,784 | 6,570 | 15,033 | ||||||||||
Net cash provided by operating activities | 110,910 | 81,855 | 174,698 | 134,970 | ||||||||||
Investing activities: | ||||||||||||||
Acquisition of property and equipment | (107,692) | (41,771) | (192,097) | (85,101) | ||||||||||
Acquisition of business, net of cash acquired | — | (2,250) | — | (2,250) | ||||||||||
Other | — | 18 | 1,123 | 90 | ||||||||||
Net cash used in investing activities | (107,692) | (44,003) | (190,974) | (87,261) | ||||||||||
Financing activities: | ||||||||||||||
Proceeds from revolving credit facility and long-term debt | 2,527,314 | 451,000 | 2,606,314 | 451,000 | ||||||||||
Payments of revolving credit facility and long-term debt | (114,000) | (601,000) | (193,000) | (601,000) | ||||||||||
Payments for debt extinguishment costs | — | (19,080) | — | (19,080) | ||||||||||
Payments for dividends | (13,589) | (10,889) | (27,484) | (21,797) | ||||||||||
Issuance of common stock | 5,598 | 15,245 | 8,977 | 16,817 | ||||||||||
Taxes paid related to net share settlement of equity awards | (200) | (55) | (16,317) | (15,093) | ||||||||||
Repurchase and retirement of common stock | — | (15,000) | — | (30,000) | ||||||||||
Other | (10,204) | (4,800) | (11,166) | (4,801) | ||||||||||
Net cash provided by (used in) financing activities | 2,394,919 | (184,579) | 2,367,324 | (223,954) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7,638) | (760) | (10,382) | (3,615) | ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 2,390,499 | (147,487) | 2,340,666 | (179,860) | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 352,732 | 548,520 | 402,565 | 580,893 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | $2,743,231 | $401,033 | $2,743,231 | $401,033 |
Three months ended | Six months ended | |||||||||||||||||||
Net sales | July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | |||||||||||||||
Specialty Chemicals and Engineered Materials | $207,729 | $180,366 | $196,421 | $404,150 | $346,907 | |||||||||||||||
Microcontamination Control | 274,133 | 227,521 | 266,637 | 540,770 | 434,620 | |||||||||||||||
Advanced Materials Handling | 224,084 | 172,502 | 198,113 | 422,197 | 321,043 | |||||||||||||||
Inter-segment elimination | (13,457) | (9,037) | (11,525) | (24,982) | (18,374) | |||||||||||||||
Total net sales | $692,489 | $571,352 | $649,646 | $1,342,135 | $1,084,196 |
Three months ended | Six months ended | |||||||||||||||||||
Segment profit | July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | |||||||||||||||
Specialty Chemicals and Engineered Materials | $45,718 | $44,945 | $48,851 | $94,569 | $79,501 | |||||||||||||||
Microcontamination Control | 100,107 | 78,132 | 98,618 | 198,725 | 148,698 | |||||||||||||||
Advanced Materials Handling | 46,926 | 42,093 | 46,690 | 93,616 | 74,188 | |||||||||||||||
Total segment profit | 192,751 | 165,170 | 194,159 | 386,910 | 302,387 | |||||||||||||||
Amortization of intangibles | 12,494 | 11,902 | 12,651 | 25,145 | 23,773 | |||||||||||||||
Unallocated expenses | 22,287 | 14,379 | 18,162 | 40,449 | 25,747 | |||||||||||||||
Total operating income | $157,970 | $138,889 | $163,346 | $321,316 | $252,867 |
Three months ended | Six months ended | |||||||||||||||||||
July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | ||||||||||||||||
Net sales | $692,489 | $571,352 | $649,646 | $1,342,135 | $1,084,196 | |||||||||||||||
Gross profit-GAAP | $310,397 | $265,384 | $309,820 | $620,217 | $500,370 | |||||||||||||||
Adjusted gross profit | $310,397 | $265,384 | $309,820 | $620,217 | $500,370 | |||||||||||||||
Gross margin - as a % of net sales | 44.8 | % | 46.4 | % | 47.7 | % | 46.2 | % | 46.2 | % | ||||||||||
Adjusted gross margin - as a % of net sales | 44.8 | % | 46.4 | % | 47.7 | % | 46.2 | % | 46.2 | % |
Three months ended | Six months ended | |||||||||||||||||||
Segment profit-GAAP | July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | |||||||||||||||
Specialty Chemicals and Engineered Materials (SCEM) | $45,718 | $44,945 | $48,851 | $94,569 | $79,501 | |||||||||||||||
Microcontamination Control (MC) | 100,107 | 78,132 | 98,618 | 198,725 | 148,698 | |||||||||||||||
Advanced Materials Handling (AMH) | 46,926 | 42,093 | 46,690 | 93,616 | 74,188 | |||||||||||||||
Total segment profit | 192,751 | 165,170 | 194,159 | 386,910 | 302,387 | |||||||||||||||
Amortization of intangible assets | 12,494 | 11,902 | 12,651 | 25,145 | 23,773 | |||||||||||||||
Unallocated expenses | 22,287 | 14,379 | 18,162 | 40,449 | 25,747 | |||||||||||||||
Total operating income | $157,970 | $138,889 | $163,346 | $321,316 | $252,867 |
Three months ended | Six months ended | |||||||||||||||||||
Adjusted segment profit | July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | |||||||||||||||
SCEM segment profit | $45,718 | $44,945 | $48,851 | $94,569 | $79,501 | |||||||||||||||
Severance and restructuring costs | — | 51 | — | — | 98 | |||||||||||||||
Charge for fair value write-up of acquired inventory sold | — | — | — | — | — | |||||||||||||||
SCEM adjusted segment profit | $45,718 | $44,996 | $48,851 | $94,569 | $79,599 | |||||||||||||||
MC segment profit | $100,107 | $78,132 | $98,618 | $198,725 | $148,698 | |||||||||||||||
Severance and restructuring costs | — | 55 | — | — | 106 | |||||||||||||||
MC adjusted segment profit | $100,107 | $78,187 | $98,618 | $198,725 | $148,804 | |||||||||||||||
AMH segment profit | $46,926 | $42,093 | $46,690 | $93,616 | $74,188 | |||||||||||||||
Severance and restructuring costs | — | 38 | — | — | 75 | |||||||||||||||
AMH adjusted segment profit | $46,926 | $42,131 | $46,690 | $93,616 | $74,263 | |||||||||||||||
Unallocated general and administrative expenses | $22,287 | $14,379 | $18,162 | $40,449 | $25,747 | |||||||||||||||
Unallocated deal and integration costs | (12,575) | (632) | (6,254) | (18,829) | (2,676) | |||||||||||||||
Unallocated severance and restructuring costs | — | (36) | — | — | (44) | |||||||||||||||
Adjusted unallocated general and administrative expenses | $9,712 | $13,711 | $11,908 | $21,620 | $23,027 | |||||||||||||||
Total adjusted segment profit | $192,751 | $165,314 | $194,159 | $386,910 | $302,666 | |||||||||||||||
Adjusted amortization of intangible assets | — | — | — | — | — | |||||||||||||||
Adjusted unallocated general and administrative expenses | 9,712 | 13,711 | 11,908 | 21,620 | 23,027 | |||||||||||||||
Total adjusted operating income | $183,039 | $151,603 | $182,251 | $365,290 | $279,639 |
Three months ended | Six months ended | |||||||||||||||||||
July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | ||||||||||||||||
Net sales | $692,489 | $571,352 | $649,646 | $1,342,135 | $1,084,196 | |||||||||||||||
Net income | $99,491 | $88,770 | $125,705 | $225,196 | $173,446 | |||||||||||||||
Net income - as a % of net sales | 14.4 | % | 15.5 | % | 19.3 | % | 16.8 | % | 16.0 | % | ||||||||||
Adjustments to net income: | ||||||||||||||||||||
Income tax expense | 17,517 | 15,916 | 19,875 | 37,392 | 29,307 | |||||||||||||||
Interest expense, net | 31,343 | 10,643 | 12,864 | 44,207 | 22,224 | |||||||||||||||
Other expense, net | 9,619 | 23,560 | 4,902 | 14,521 | 27,890 | |||||||||||||||
GAAP - Operating income | 157,970 | 138,889 | 163,346 | 321,316 | 252,867 | |||||||||||||||
Operating margin - as a % of net sales | 22.8 | % | 24.3 | % | 25.1 | % | 23.9 | % | 23.3 | % | ||||||||||
Deal and transaction costs | 2,410 | — | 5,008 | 7,418 | — | |||||||||||||||
Integration costs | 10,165 | 632 | 1,246 | 11,411 | 2,676 | |||||||||||||||
Severance and restructuring costs | — | 180 | — | — | 323 | |||||||||||||||
Amortization of intangible assets | 12,494 | 11,902 | 12,651 | 25,145 | 23,773 | |||||||||||||||
Adjusted operating income | 183,039 | 151,603 | 182,251 | 365,290 | 279,639 | |||||||||||||||
Adjusted operating margin - as a % of net sales | 26.4 | % | 26.5 | % | 28.1 | % | 27.2 | % | 25.8 | % | ||||||||||
Depreciation | 24,381 | 22,574 | 23,905 | 48,286 | 44,669 | |||||||||||||||
Adjusted EBITDA | $207,420 | $174,177 | $206,156 | $413,576 | $324,308 | |||||||||||||||
Adjusted EBITDA - as a % of net sales | 30.0 | % | 30.5 | % | 31.7 | % | 30.8 | % | 29.9 | % |
Three months ended | Six months ended | |||||||||||||||||||
July 2, 2022 | July 3, 2021 | April 2, 2022 | July 2, 2022 | July 3, 2021 | ||||||||||||||||
GAAP net income | $99,491 | $88,770 | $125,705 | $225,196 | $173,446 | |||||||||||||||
Adjustments to net income: | ||||||||||||||||||||
Deal and transaction costs | 2,410 | — | 5,008 | 7,418 | — | |||||||||||||||
Integration costs | 10,165 | 632 | 1,246 | 11,411 | 2,676 | |||||||||||||||
Severance and restructuring costs | — | 180 | — | — | 323 | |||||||||||||||
Loss on extinguishment of debt and modification | — | 23,338 | — | — | 23,338 | |||||||||||||||
Interest expense, net | 22,742 | — | 4,683 | 27,425 | — | |||||||||||||||
Amortization of intangible assets | 12,494 | 11,902 | 12,651 | 25,145 | 23,773 | |||||||||||||||
Tax effect of adjustments to net income and discrete items1 | (10,486) | (8,111) | (4,160) | (14,646) | (11,332) | |||||||||||||||
Non-GAAP net income | $136,816 | $116,711 | $145,133 | $281,949 | $212,224 | |||||||||||||||
Diluted earnings per common share | $0.73 | $0.65 | $0.92 | $1.65 | $1.27 | |||||||||||||||
Effect of adjustments to net income | $0.27 | $0.20 | $0.14 | $0.42 | $0.28 | |||||||||||||||
Diluted non-GAAP earnings per common share | $1.00 | $0.85 | $1.06 | $2.07 | $1.55 |
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