Entegris Reports Results for Fourth Quarter Of 2021

  • Fourth-quarter revenue of $635 million, increased 23% from prior year
  • Fourth-quarter GAAP diluted EPS of $0.87, increased 38%
  • Fourth-quarter non-GAAP diluted EPS of $0.96, increased 35%
  • 2021 revenue of $2,299 million, increased 24% from prior year
  • 2021 GAAP diluted EPS of $3.00, increased 39%
  • 2021 Non-GAAP diluted EPS of $3.44, increased 35%

BILLERICA, Mass.--()--Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s fourth quarter ended December 31, 2021.

Fourth-quarter sales were $635.2 million, an increase of 23% from the same quarter last year. Fourth-quarter GAAP net income was $118.2 million, or $0.87 per diluted share, which included $12.2 million of amortization of intangible assets and $4.7 million of deal and transaction costs. Non-GAAP net income was $131.8 million for the fourth quarter and non-GAAP earnings per diluted share was $0.96.

Bertrand Loy, Entegris’ president and chief executive officer, said: “Our fourth quarter results capped off a record year for Entegris. I am very proud of the 24 percent sales growth our team achieved in 2021, especially in light of the challenging operating environment. Our strong position in leading-edge solutions that are of increasing importance to customers, drove this above-market growth.”

Mr. Loy added: “Market demand is expected to be strong in 2022 and we have increased conviction in the secular growth of the semiconductor market. In addition, node transitions continue at a rapid pace and device architectures are becoming much more complex. Our capabilities are indispensable enablers of these technologies and translate into a steadily expanding Entegris content per wafer.”

Mr. Loy added: “We are very excited about the pending acquisition of CMC Materials and the potential to create enhanced value for customers. We look forward to closing the acquisition and welcoming our new colleagues to the Entegris team.”

Quarterly Financial Results Summary

(in thousands, except percentages and per share data)

GAAP Results

December 31, 2021

December 31, 2020

October 2, 2021

Net sales

$635,204

$517,594

$579,493

Operating income

$159,544

$113,228

$139,357

Operating margin - as a % of net sales

25.1%

21.9%

24.0%

Net income

$118,219

$86,624

$117,461

Diluted earnings per common share

$0.87

$0.63

$0.86

Non-GAAP Results

Non-GAAP adjusted operating income

$176,770

$126,945

$152,696

Non-GAAP adjusted operating margin - as a % of net sales

27.8%

24.5%

26.3%

Non-GAAP net income

$131,783

$97,123

$125,383

Diluted non-GAAP earnings per common share

$0.96

$0.71

$0.92

First-Quarter Outlook

For the first quarter ending April 2, 2022, the Company expects sales of $630 million to $650 million, net income of $111 million to $118 million and diluted earnings per common share between $0.81 and $0.86. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.96 to $1.01, reflecting net income on a non-GAAP basis in the range of $131 million to $138 million.

Segment Results

The Company reports its results in the following segments:

Specialty Chemicals and Engineered Materials (SCEM): SCEM provides high-performance and high-purity process chemistries, gases and materials, and safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes.

Microcontamination Control (MC): MC offers solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

Advanced Materials Handling (AMH): AMH develops solutions to monitor, protect, transport and deliver critical liquid chemistries, wafers and other substrates for a broad set of applications in the semiconductor, life sciences and other high-technology industries.

Fourth-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the fourth quarter on Tuesday, February 1, 2022, at 9:00 a.m. Eastern Time. Participants should dial 888-394-8218 or +1 323-794-2588, referencing confirmation code 5961315. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. For a replay of the call, please Click Here using passcode 5961315.

The call can also be accessed live and on-demand from the Investor Relations section of www.entegris.com. The on-demand playback will be available for six weeks after the conclusion of the teleconference.

Management’s slide presentation concerning the results for the fourth quarter will be posted on the Investor Relations section of www.entegris.com Tuesday morning before the call.

About Entegris

Entegris is a world-class supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 6,600 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, 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 condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA, adjusted gross profit, adjusted segment profit, adjusted operating income, non-GAAP net income, non-GAAP adjusted operating margin and diluted non-GAAP earnings per common share, together with related measures thereof, are considered “non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company provides supplemental non-GAAP financial measures to better understand and manage its business and believes these measures provide investors and analysts additional and meaningful information for the assessment of the Company’s ongoing results. Management also uses these non-GAAP measures to assist in the evaluation of the performance of its business segments and to make operating decisions. Management believes that the Company’s non-GAAP measures help indicate the Company’s baseline performance before certain gains, losses or other charges that may not be indicative of the Company’s business or future outlook, and that non-GAAP measures offer a more consistent view of business performance. The Company believes the non-GAAP measures aid investors’ overall understanding of the Company’s results by providing a higher degree of transparency for such items and providing a level of disclosure that will help investors generally understand how management plans, measures and evaluates the Company’s business performance. Management believes that the inclusion of non-GAAP measures provides greater consistency in its financial reporting and facilitates investors’ understanding of the Company’s historical operating trends by providing an additional basis for comparisons to prior periods. The reconciliations of GAAP gross profit to adjusted gross profit, GAAP segment profit to adjusted operating income, GAAP net income to adjusted operating income and adjusted EBITDA, GAAP net income and diluted earnings per common share to non-GAAP net income and diluted non-GAAP earnings per common share and GAAP outlook to non-GAAP outlook are included elsewhere in this release.

Additional Information about the Merger and Where to Find It

This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between Entegris and CMC. In connection with the proposed transaction, Entegris filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “Registration Statement”) that included a proxy statement of CMC and that also constitutes a prospectus of Entegris. Each of Entegris and CMC may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the proxy statement/prospectus or Registration Statement or any other document that Entegris or CMC may file with the SEC. The Registration Statement on Form S-4 was declared effective by the SEC on January 28, 2022 and CMC commenced mailing of the definitive proxy statement/prospectus to its stockholders on or about January 28, 2022. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of these documents and other documents containing important information about Entegris and CMC, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Entegris are available free of charge on Entegris’ website at http://Entegris.com or by contacting Entegris’ Investor Relations Department by email at irelations@Entegris.com or by phone at +1 978-436-6500. Copies of the documents filed with the SEC by CMC are available free of charge on CMC’s website at www.CMCmaterials.com/investors or by contacting CMC’s Investor Relations Department by email at investors@CMCmaterials.com by phone at +1 630-499-2600.

Participants in the Solicitation

Entegris, CMC and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Entegris is set forth in Entegris’ in the definitive proxy statement/prospectus included in the Registration Statement, and Entegris’ Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the SEC on February 5, 2021. Information about the directors and executive officers of CMC is set forth in the definitive proxy statement/prospectus included in the Registration Statement, and CMC’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021, which was filed with the SEC on November 12, 2021 and amended by the Form 10-K/A filed with the SEC on January 19, 2022. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors should read the Registration Statement and the proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from Entegris or CMC using the sources indicated above.

Cautionary Note on Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1993, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe” “continue,” “could,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including statements related to anticipated results of operations, business strategies of Entegris, CMC and the combined company, anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on Entegris’ and CMC’s business and future financial and operating results, the expected amount and timing of synergies from the proposed transaction, the anticipated closing date for the proposed transaction and other aspects of CMC’s and Entegris’ operations or operating results, are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Entegris’ and CMC’s control, and could cause actual results to differ materially from those indicated in such forward-looking statements. These factors and risks include, but are not limited to, (i) weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for Entegris’ and CMC’s products and solutions; (ii) the parties’ ability to meet rapid demand shifts; (iii) the parties’ ability to continue technological innovation and introduce new products to meet customers’ rapidly changing requirements; (iv) Entegris’ and CMC’s ability to protect and enforce intellectual property rights; (v) operational, political and legal risks of Entegris’ and CMC’s international operations; (vi) the increasing complexity of certain manufacturing processes; (vii) raw material shortages, supply and labor constraints and price increases; (viii) changes in government regulations of the countries in which Entegris and CMC operate; (ix) the fluctuation of currency exchange rates; (x) fluctuations in the market price of Entegris’ stock; (xi) the level of, and obligations associated with, Entegris’ and CMC’s indebtedness; (xii) the impact of public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; and (xiii) other risk factors and additional information. In addition, risks that could cause actual results to differ from forward-looking statements include: the inherent uncertainty associated with financial or other projections; the prompt and effective integration of Entegris’ businesses and the ability to achieve the anticipated synergies and value-creation contemplated by the proposed transaction; the risk associated with CMC’s ability to obtain the approval of the proposed transaction by its stockholders required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all and the failure of the transaction to close for any other reason; the risk that a regulatory consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; unanticipated difficulties or expenditures relating to the transaction, the outcome of any legal proceedings related to the merger, the response and retention of business partners and employees as a result of the announcement and pendency of the transaction; and the diversion of management time on transaction-related issues. These risks, as well as other risks related to the proposed transaction, are included in the registration statement on Form S-4, as amended, and proxy statement/prospectus that were filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors to be presented in the registration statement on Form S-4, as amended, and proxy statement/prospectus are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For a more detailed discussion of such risks and other factors, see Entegris’ and CMC’s filings with the Securities and Exchange Commission, including under the heading “Risks Factors” in Item 1A of Entegris’ Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the SEC on February 5, 2021, and CMC’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021, which was filed with the SEC on November 12, 2021 and amended by the Form 10-K/A filed with the SEC on January 19, 2022 and in other periodic filings, available on the SEC website or www.Entegris.com or www.cmcmaterials.com. Entegris and CMC assume no obligation to update any forward-looking statements or information, which speak as of their respective dates, to reflect events or circumstances after the date of this communication, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement.

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

 

December 31, 2021

December 31, 2020

October 2, 2021

Net sales

$635,204

$517,594

$579,493

Cost of sales

340,114

286,722

315,289

Gross profit

295,090

230,872

264,204

Selling, general and administrative expenses

77,366

68,170

71,032

Engineering, research and development expenses

45,940

37,558

41,972

Amortization of intangible assets

12,240

11,916

11,843

Operating income

159,544

113,228

139,357

Interest expense, net

9,434

12,133

9,339

Other expense (income), net

1,888

(5,305)

1,917

Income before income tax expense

148,222

106,400

128,101

Income tax expense

30,003

19,776

10,640

Net income

$118,219

$86,624

$117,461

 

 

 

 

 

 

 

Basic earnings per common share:

$0.87

$0.64

$0.87

Diluted earnings per common share:

$0.87

$0.63

$0.86

 

 

 

 

Weighted average shares outstanding:

 

 

 

Basic

135,495

134,945

135,583

Diluted

136,629

136,438

136,631

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Twelve months ended

 

December 31, 2021

December 31, 2020

Net sales

$2,298,893

$1,859,313

Cost of sales

1,239,229

1,009,591

Gross profit

1,059,664

849,722

Selling, general and administrative expenses

292,408

265,128

Engineering, research and development expenses

167,632

136,057

Amortization of intangible assets

47,856

53,092

Operating income

551,768

395,445

Interest expense, net

40,997

47,814

Other expense (income), net

31,695

(6,656)

Income before income tax expense

479,076

354,287

Income tax expense

69,950

59,318

Net income

$409,126

$294,969

 

 

 

 

 

Basic earnings per common share:

$3.02

$2.19

Diluted earnings per common share:

$3.00

$2.16

 

 

 

Weighted average shares outstanding:

 

 

Basic

135,411

134,837

Diluted

136,574

136,266

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

 

December 31, 2021

December 31, 2020

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$402,565

$580,893

Trade accounts and notes receivable, net

347,413

264,392

Inventories, net

475,213

323,944

Deferred tax charges and refundable income taxes

35,312

21,136

Other current assets

52,867

43,892

Total current assets

1,313,370

1,234,257

Property, plant and equipment, net

654,098

525,367

Other assets:

 

 

Right-of-use assets

66,563

45,924

Goodwill

793,702

748,037

Intangible assets, net

335,113

337,632

Deferred tax assets and other noncurrent tax assets

17,671

14,519

Other

11,379

11,960

Total assets

$3,191,896

$2,917,696

LIABILITIES AND EQUITY

 

Current liabilities

 

 

Accounts payable

$130,734

$81,618

Accrued liabilities

199,131

177,012

Income tax payable

49,136

43,996

Total current liabilities

379,001

302,626

Long-term debt, excluding current maturities

937,027

1,085,783

Long-term lease liability

60,101

39,730

Other liabilities

101,986

110,063

Shareholders’ equity

1,713,781

1,379,494

Total liabilities and equity

$3,191,896

$2,917,696

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

Three months ended

Twelve months ended

 

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Operating activities:

 

 

 

 

Net income

$118,219

$86,624

$409,126

$294,969

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

 

 

 

 

Depreciation

22,801

21,366

90,311

83,430

Amortization

12,240

11,916

47,856

53,092

Stock-based compensation expense

7,760

6,368

29,884

22,920

Loss on extinguishment of debt and modification

2,378

23,338

2,378

Other

(1,354)

(23,878)

(3,330)

9,227

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

Trade accounts and notes receivable

(33,408)

37,906

(86,766)

(27,461)

Inventories

(53,185)

3,506

(168,372)

(50,772)

Accounts payable and accrued liabilities

16,000

30,086

53,577

40,162

Income taxes payable, refundable income taxes and noncurrent taxes payable

31,983

40,485

(3,292)

28,490

Other

(5,076)

(12,739)

8,122

(9,761)

Net cash provided by operating activities

115,980

204,018

400,454

446,674

Investing activities:

 

 

 

 

Acquisition of property and equipment

(76,640)

(52,192)

(210,626)

(131,752)

Acquisition of business, net of cash acquired

(89,692)

(767)

(91,942)

(111,912)

Other

34

73

4,450

338

Net cash used in investing activities

(166,298)

(52,886)

(298,118)

(243,326)

Financing activities:

 

 

 

 

Proceeds from revolving credit facility and long-term debt

50,000

501,000

617,000

Payments of revolving credit facility and long-term debt

(50,000)

(651,000)

(468,000)

Payments for debt extinguishment costs

(19,080)

Payments for dividends

(10,895)

(10,799)

(43,545)

(43,245)

Issuance of common stock

6,872

3,839

24,744

8,738

Taxes paid related to net share settlement of equity awards

(722)

(244)

(16,090)

(24,800)

Repurchase and retirement of common stock

(17,109)

(14,999)

(67,109)

(44,563)

Deferred acquisition payments

(16,125)

Other

(130)

(5,417)

(6,856)

Net cash (used in) provided by financing activities

(21,984)

(22,203)

(276,497)

22,149

Effect of exchange rate changes on cash and cash equivalents

(885)

3,992

(4,167)

3,485

(Decrease) increase in cash and cash equivalents

(73,187)

132,921

(178,328)

228,982

Cash and cash equivalents at beginning of period

475,752

447,972

580,893

351,911

Cash and cash equivalents at end of period

$402,565

$580,893

$402,565

$580,893

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

Three months ended

 

Twelve months ended

Net sales

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

Specialty Chemicals and Engineered Materials

$188,004

$168,625

$176,380

 

$711,291

$609,532

Microcontamination Control

258,866

205,626

225,877

 

919,363

742,186

Advanced Materials Handling

197,703

151,741

186,200

 

704,946

538,682

Inter-segment elimination

(9,369)

(8,398)

(8,964)

 

(36,707)

(31,087)

Total net sales

$635,204

$517,594

$579,493

 

$2,298,893

$1,859,313

 

Three months ended

 

Twelve months ended

Segment profit

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

Specialty Chemicals and Engineered Materials

$47,215

$29,761

$41,091

 

$167,807

$127,969

Microcontamination Control

94,203

71,691

78,399

 

321,300

248,910

Advanced Materials Handling

45,304

34,321

40,503

 

159,995

111,028

Total segment profit

186,722

135,773

159,993

 

649,102

487,907

Amortization of intangibles

12,240

11,916

11,843

 

47,856

53,092

Unallocated expenses

14,938

10,629

8,793

 

49,478

39,370

Total operating income

$159,544

$113,228

$139,357

 

$551,768

$395,445

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

 

 

 

 

 

Three months ended

 

Twelve months ended

 

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

Net sales

$635,204

$517,594

$579,493

 

$2,298,893

$1,859,313

Gross profit-GAAP

$295,090

$230,872

$264,204

 

$1,059,664

$849,722

Adjustments to gross profit:

 

 

 

 

 

 

Integration costs

 

(1,557)

Severance and restructuring costs

 

465

Charge for fair value mark-up of acquired inventory sold

428

 

428

590

Adjusted gross profit

$295,518

$230,872

$264,204

 

$1,060,092

$849,220

 

 

 

 

 

 

 

Gross margin - as a % of net sales

46.5%

44.6%

45.6%

 

46.1%

45.7%

Adjusted gross margin - as a % of net sales

46.5%

44.6%

45.6%

 

46.1%

45.7%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

 

 

 

 

 

Three months ended

 

Twelve months ended

Segment profit-GAAP

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

Specialty Chemicals and Engineered Materials (SCEM)

$47,215

$29,761

$41,091

 

$167,807

$127,969

Microcontamination Control (MC)

94,203

71,691

78,399

 

321,300

248,910

Advanced Materials Handling (AMH)

45,304

34,321

40,503

 

159,995

111,028

Total segment profit

186,722

135,773

159,993

 

649,102

487,907

Amortization of intangible assets

12,240

11,916

11,843

 

47,856

53,092

Unallocated expenses

14,938

10,629

8,793

 

49,478

39,370

Total operating income

$159,544

$113,228

$139,357

 

$551,768

$395,445

 

Three months ended

 

Twelve months ended

Adjusted segment profit

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

SCEM segment profit

$47,215

$29,761

$41,091

 

$167,807

$127,969

Integration costs

 

(1,557)

Severance and restructuring costs

155

69

 

167

1,061

Charge for fair value write-up of acquired inventory sold

428

 

428

235

SCEM adjusted segment profit

$47,643

$29,916

$41,160

 

$168,402

$127,708

 

 

 

 

 

 

 

MC segment profit

$94,203

$71,691

$78,399

 

$321,300

$248,910

Severance and restructuring costs

167

75

 

181

1,152

Charge for fair value write-up of acquired inventory sold

 

126

MC adjusted segment profit

$94,203

$71,858

$78,474

 

$321,481

$250,188

 

 

 

 

 

 

 

AMH segment profit

$45,304

$34,321

$40,503

 

$159,995

$111,028

Severance and restructuring costs

121

52

 

127

1,283

Charge for fair value write-up of acquired inventory sold

 

229

AMH adjusted segment profit

$45,304

$34,442

$40,555

 

$160,122

$112,540

 

 

 

 

 

 

 

Unallocated general and administrative expenses

$14,938

$10,629

$8,793

 

$49,478

$39,370

Unallocated deal and integration costs

(4,558)

(1,300)

(1,290)

 

(8,524)

(7,096)

Unallocated severance and restructuring costs

(58)

(10)

 

(54)

(868)

Adjusted unallocated general and administrative expenses

$10,380

$9,271

$7,493

 

$40,900

$31,406

 

 

 

 

 

 

 

Total adjusted segment profit

$187,150

$136,216

$160,189

 

$650,005

$490,436

Adjusted amortization of intangible assets

 

Adjusted unallocated general and administrative expenses

10,380

9,271

7,493

 

40,900

31,406

Total adjusted operating income

$176,770

$126,945

$152,696

 

$609,105

$459,030

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

 

 

 

 

 

Three months ended

 

Twelve months ended

 

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

Net sales

$635,204

$517,594

$579,493

 

$2,298,893

$1,859,313

Net income

$118,219

$86,624

$117,461

 

$409,126

$294,969

Net income - as a % of net sales

18.6%

16.7%

20.3%

 

17.8%

15.9%

Adjustments to net income:

 

 

 

 

 

 

Income tax expense

30,003

19,776

10,640

 

69,950

59,318

Interest expense, net

9,434

12,133

9,339

 

40,997

47,814

Other expense (income), net

1,888

(5,305)

1,917

 

31,695

(6,656)

GAAP - Operating income

159,544

113,228

139,357

 

551,768

395,445

Operating margin - as a % of net sales

25.1%

21.9%

24.0%

 

24.0%

21.3%

Charge for fair value write-up of acquired inventory sold

428

 

428

590

Deal and transaction costs

4,744

 

4,744

2,576

Integration costs

(186)

1,300

1,290

 

3,780

2,963

Severance and restructuring costs

501

206

 

529

4,364

Amortization of intangible assets

12,240

11,916

11,843

 

47,856

53,092

Adjusted operating income

176,770

126,945

152,696

 

609,105

459,030

Adjusted operating margin - as a % of net sales

27.8%

24.5%

26.3%

 

26.5%

24.7%

Depreciation

22,801

21,366

22,841

 

90,311

83,430

Adjusted EBITDA

$199,571

$148,311

$175,537

 

$699,416

$542,460

Adjusted EBITDA - as a % of net sales

31.4%

28.7%

30.3%

 

30.4%

29.2%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

Three months ended

 

Twelve months ended

 

December 31, 2021

December 31, 2020

October 2, 2021

 

December 31, 2021

December 31, 2020

GAAP net income

$118,219

$86,624

$117,461

 

$409,126

$294,969

Adjustments to net income:

 

 

 

 

 

 

Charge for fair value write-up of inventory acquired

428

 

428

590

Deal and transaction costs

4,744

 

4,744

2,576

Integration costs

(186)

1,300

1,290

 

3,780

2,963

Severance and restructuring costs

501

206

 

529

4,364

Loss on extinguishment of debt and modification

 

23,338

2,378

Amortization of intangible assets

12,240

11,916

11,843

 

47,856

53,092

Tax effect of adjustments to net income and discrete items1

(3,662)

(3,218)

(5,417)

 

(20,411)

(15,197)

Non-GAAP net income

$131,783

$97,123

$125,383

 

$469,390

$345,735

 

 

 

 

 

 

 

Diluted earnings per common share

$0.87

$0.63

$0.86

 

$3.00

$2.16

Effect of adjustments to net income

$0.10

$0.08

$0.06

 

$0.44

$0.37

Diluted non-GAAP earnings per common share

$0.96

$0.71

$0.92

 

$3.44

$2.54

1The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate during the respective years.

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Outlook to Non-GAAP Outlook

(In millions, except per share data)

(Unaudited)

 

 

First-Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income

April 2, 2022

GAAP net income

$111 - $118

Adjustments to net income:

 

Restructuring and integration costs

12

Amortization of intangible assets

12

Income tax effect

(4)

Non-GAAP net income

$131 - $138

 

First-Quarter Outlook

Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share

April 2, 2022

Diluted earnings per common share

$0.81 - $0.86

Adjustments to diluted earnings per common share:

 

Restructuring and integration costs

0.09

Amortization of intangible assets

0.09

Income tax effect

(0.03)

Diluted non-GAAP earnings per common share

$0.96 - $1.01

 

Contacts

Bill Seymour
VP of Investor Relations
T + 1 952 556 1844
bill.seymour@entegris.com

Contacts

Bill Seymour
VP of Investor Relations
T + 1 952 556 1844
bill.seymour@entegris.com