EX-99.1 2 d714244dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Entegris Reports First-Quarter Results

 

    Quarterly revenue of $165.8 million, down 11 percent sequentially

 

    GAAP net income of $14.3 million, or $0.10 per share; Non-GAAP net income of $16.7 million, or $0.12 per share

 

    Operating margin of 11.2 percent; Adjusted operating margin of 13.4 percent

BILLERICA, Mass., April 23, 2014 – Entegris, Inc. (Nasdaq: ENTG) today reported its financial results for the Company’s first quarter ended March 29, 2014.

The Company recorded first-quarter sales of $165.8 million, which compared to $186.3 million in the fourth quarter of 2013 and $165.1 million in the first quarter a year ago. First-quarter operating margin was 11.2 percent, with adjusted operating margin of 13.4 percent, excluding amortization of intangible assets of $2.3 million and transaction-related cost associated with the acquisition of ATMI of $1.3 million. Net income for the first quarter was $14.3 million, or $0.10 per diluted share. Non-GAAP earnings per share of $0.12 in the first quarter of 2014 compared to $0.16 in the fourth quarter of 2013 and $0.13 in the first quarter of 2013. A reconciliation table of GAAP to non-GAAP earnings per share and operating margin is contained in this press release.

Bertrand Loy, president and chief executive officer, said: “As expected, our first-quarter sales declined from the strong fourth quarter reflecting seasonally slower trends and a mixed industry environment. On an operating basis, we performed well, achieving our target operating model and generating cash flow from operations in line with our plans. We remain very pleased with the quality and extent of our intensified partnerships and collaborations with the key technology leaders in the industry, which position us well as these leaders ramp their next-generation manufacturing process technologies.”

Mr. Loy added: “We were pleased to note that ATMI shareholders voted overwhelmingly in favor of our acquisition of ATMI, and we expect to receive the remaining regulatory approval sometime around the end of April. We are excited about the prospects of the combination of Entegris and ATMI for our shareholders, customers, and employees.”

Before any impact or transaction-related costs of the anticipated acquisition of ATMI, for the fiscal second quarter ending June 28, 2014 the Company expects sales of $165 million to $175 million, net income of $13 million to $18 million, and EPS between $0.09 to $0.13 per share. On a non-GAAP basis, EPS is expected to range from $0.10 to $0.14 per share, which reflects net income on a non-GAAP basis in the range of $14 million to $19 million, which is adjusted for expected amortization expense of $2.3 million or $0.01 per share.

First-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the first quarter on Wednesday, April 23, 2014, at 10:00 a.m. Eastern Time. Participants should dial 1-719-325-4900 or toll-free 1-877-795-3599, referencing confirmation code 1009975. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. A replay of the call will be available starting April 23 at 1:00 p.m. (ET) until June 6, 2014. The replay can be accessed by using passcode 1009975 after dialing 1-719-457-0820 or 1-888-203-1112. A live and on-demand webcast of the call can also be accessed from the investor relations section of Entegris’ website at www.entegris.com.


ABOUT ENTEGRIS

Entegris is a leading provider of a wide range of products for purifying, protecting and transporting critical materials used in processing and manufacturing in the semiconductor and other high-technology industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

Non-GAAP Information

The Company’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA and Adjusted Operating Income together with related measures thereof, and non-GAAP EPS, are considered “Non-GAAP financial measures” under the rules and regulations of the SEC. These financial measures are provided as a complement to financial measures provided in accordance with GAAP. We provide non-GAAP financial measures in order to better assess and reflect operating performance. Management believes the non-GAAP measures help indicate our baseline performance before certain gains, losses or other charges that may not be indicative of our business or future outlook. We believe these non-GAAP measures will aid investors’ overall understanding of our results by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will help investors understand how we plan and measure our business. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP. The calculations of Adjusted EBITDA margin, Adjusted Operating Income, and non-GAAP EPS are included elsewhere in this release.

Forward-Looking Statements

Certain information contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, and involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Statements that include such words as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “may,” “will,” “should” or the negative thereof and similar expressions as they relate to Entegris or our management are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris’ stock, Entegris’ future operating results, other acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris’ periodic public filings with the Securities and Exchange Commission, including discussions appearing under the headings “Risks Relating to our Business and Industry,” “Manufacturing Risks,” “International Risks,” and “Risks Related to Owning Our Securities” in Item 1A of our Annual Report on Form 10–K for the fiscal year ended December 31, 2013, as well as other matters and important factors disclosed previously and from time to time in the filings of Entegris with the U.S. Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update publicly any forward-looking statements contained herein.


Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended  
     March 29,
2014
    March 30,
2013
    December 31,
2013
 

Net sales

   $ 165,804      $ 165,070      $ 186,260   

Cost of sales

     94,452        97,942        106,876   
  

 

 

   

 

 

   

 

 

 

Gross profit

     71,352        67,128        79,384   

Selling, general and administrative expenses

     34,787        32,421        37,559   

Engineering, research and development expenses

     15,690        12,173        15,773   

Amortization of intangible assets

     2,336        2,287        2,358   
  

 

 

   

 

 

   

 

 

 

Operating income

     18,539        20,247        23,694   

Other income, net

     (16     (1,348     (663
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     18,555        21,595        24,357   

Income tax expense

     4,243        5,198        3,816   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 14,312      $ 16,397      $ 20,541   
  

 

 

   

 

 

   

 

 

 

Basic net income per common share:

   $ 0.10      $ 0.12      $ 0.15   

Diluted net income per common share:

   $ 0.10      $ 0.12      $ 0.15   

Weighted average shares outstanding:

      

Basic

     138,927        139,025        138,615   

Diluted

     139,706        139,831        139,408   


Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     March 29, 2014      December 31, 2013  

ASSETS

     

Cash and cash equivalents

   $ 381,661       $ 384,426   

Accounts receivable, net

     109,049         101,873   

Inventories

     100,499         94,074   

Deferred tax assets, deferred tax charges and refundable income taxes

     14,595         20,844   

Other current assets

     10,255         11,088   
  

 

 

    

 

 

 

Total current assets

     616,059         612,305   

Property, plant and equipment, net

     189,010         186,440   

Intangible assets

     41,141         43,509   

Deferred tax assets – non-current

     12,041         12,039   

Other assets

     25,251         21,001   
  

 

 

    

 

 

 

Total assets

   $ 883,502       $ 875,294   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Accounts payable

   $ 41,168       $ 38,396   

Accrued liabilities

     43,355         48,816   

Income tax payable and deferred tax liabilities

     6,316         10,373   
  

 

 

    

 

 

 

Total current liabilities

     90,839         97,585   

Other liabilities

     20,870         20,866   

Shareholders’ equity

     771,793         756,843   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 883,502       $ 875,294   
  

 

 

    

 

 

 


Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Three Months Ended  
     March 29, 2014     March 30, 2013  

Operating activities:

    

Net income

   $ 14,312      $ 16,397   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation

     7,832        7,296   

Amortization

     2,336        2,287   

Stock-based compensation expense

     1,877        1,688   

Other

     843        2,043   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (7,217     (12,893

Inventories

     (7,545     (3,758

Accounts payable and accrued liabilities

     (3,554     (7,015

Income taxes payable and refundable income taxes

     2,012        318   

Other

     1,516        1,072   
  

 

 

   

 

 

 

Net cash provided by operating activities

     12,412        7,435   
  

 

 

   

 

 

 

Investing activities:

    

Acquisition of property and equipment

     (13,780     (16,140

Proceeds from maturities of short-term investments

     —          20,000   

Other

     395        12   
  

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (13,385     3,872   
  

 

 

   

 

 

 

Financing activities:

    

Issuance of common stock

     —          4,873   

Taxes paid related to net share settlement of equity awards

     (1,989     —     

Repurchase and retirement of common stock

     —          (3,777

Other

     244        741   
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (1,745     1,837   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     (47     (4,717
  

 

 

   

 

 

 

(Decrease) increase in cash and cash equivalents

     (2,765     8,427   

Cash and cash equivalents at beginning of period

     384,426        330,419   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 381,661      $ 338,846   
  

 

 

   

 

 

 


Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

     Three Months Ended  

Net sales

   March 29,
2014
    March 30,
2013
    December 31,
2013
 

Contamination Control Solutions

   $ 105,318      $ 103,961      $ 123,665   

Microenvironments

     42,791        44,132        45,680   

Specialty Materials

     17,695        16,977        16,915   
  

 

 

   

 

 

   

 

 

 

Total net sales

   $ 165,804      $ 165,070      $ 186,260   
  

 

 

   

 

 

   

 

 

 

 

     Three Months Ended  

Segment profit

   March 29,
2014
    March 30,
2013
    December 31,
2013
 

Contamination Control Solutions

   $ 24,480      $ 22,078      $ 30,417   

Microenvironments

     7,837        9,325        8,413   

Specialty Materials

     1,913        2,216        970   
  

 

 

   

 

 

   

 

 

 

Total segment profit

     34,230        33,619        39,800   

Amortization of intangibles

     (2,336     (2,287     (2,358

Unallocated expenses

     (13,355     (11,085     (13,748
  

 

 

   

 

 

   

 

 

 

Total operating income

   $   18,539      $   20,247      $   23,694   
  

 

 

   

 

 

   

 

 

 


Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

 

     Three Months Ended  
     March 29,
2014
    March 30,
2013
    December 31,
2013
 

Net sales

   $ 165,804      $ 165,070      $ 186,260   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 14,312      $ 16,397      $ 20,541   

Adjustments to net income:

      

Income tax expense

     4,243        5,198        3,816   

Other income, net

     (16     (1,348     (663
  

 

 

   

 

 

   

 

 

 

GAAP – Operating income

     18,539        20,247        23,694   

Amortization of intangible assets

     2,336        2,287        2,358   

Transaction-related costs

     1,281        —          973   
  

 

 

   

 

 

   

 

 

 

Adjusted operating income

     22,156        22,534        27,025   

Depreciation

     7,832        7,296        7,656   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 29,988      $ 29,830      $ 34,681   
  

 

 

   

 

 

   

 

 

 

Adjusted operating margin

     13.4     13.7     14.5

Adjusted EBITDA – as a % of net sales

     18.1     18.1     18.6


Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Earnings per Share

(In thousands)

(Unaudited)

 

     Three Months Ended  
     March 29,
2014
    March 30,
2013
    December 31,
2013
 

GAAP net income

   $ 14,312      $ 16,397      $ 20,541   

Adjustments to net income:

      

Amortization of intangible assets

     2,336        2,287        2,358   

Transaction-related costs

     1,281        —          973   

Reclassification of cumulative translation adjustment associated with liquidated subsidiary

     —          —          48   

Tax effect of adjustments to net income

     (1,279     (824     (1,180
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 16,650      $ 17,860      $ 22,740   
  

 

 

   

 

 

   

 

 

 

Diluted earnings per common share:

   $ 0.10      $ 0.12      $ 0.15   

Effect of adjustments to net income

     0.02        0.01        0.02   

Diluted non-GAAP earnings per common share:

   $ 0.12      $ 0.13      $ 0.16   

### END ###