Entegris, Inc. · NASDAQ:ENTG
Entegris — Q3 2022 Earnings Presentation
24 slides from Entegris's earnings presentation, Nov 2, 2022
Slide 1: Earnings Summary Third Quarter 2022
Earnings Summary Third Quarter 2022 November 2, 2022
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. Thes
Slide 3: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations (GAAP) $ in millions, except per share data 3Q22 2Q22 3Q21 3Q22 over 3Q21 3Q22 over 2Q22 Net Revenue $993.8 $692.5 $579.5 71.5% 43.5% Gross Margin 37.4% 44.8% 45.6% Operating Expenses $356.8 $152.4 $124.8 185.8% 134.1% Operating Income $14.9 $158.0 $139
Slide 4: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations (Non-GAAP)1 $ in millions, except per share data 3Q22 2Q22 3Q21 3Q22 over 3Q21 3Q22 over 2Q22 Net Revenue $993.8 $692.5 $579.5 71.5% 43.5% Adjusted Gross Margin – as a % of Net 43.6% 44.8% 45.6% Sales2 Non-GAAP Operating Expenses3 $180.4 $127.4 $111.5 6
Slide 5: Microcontamination Control (MC)
Microcontamination Control (MC) 3Q22 Highlights 3Q22 over 3Q22 over $ in millions 3Q22 2Q22 3Q21 3Q21 2Q22 Net Revenue $280.6 $274.1 $225.9 24.2% 2.4% Sales growth (YOY) was strong across all major product lines, including liquid Segment Profit $105.3 $100.1 $78.4 34.3% 5.2% filtration, gas purifica
Slide 6: Advanced Materials Handling (AMH)
Advanced Materials Handling (AMH) 3Q22 Highlights 3Q22 over 3Q22 over $ in millions 3Q22 2Q22 3Q21 3Q21 2Q22 Sales growth (YOY) was strongest in wafer Net Revenue $210.4 $224.1 $186.2 13.0% (6.1%) and fluid handling solutions. The biggest Segment Profit $42.1 $46.9 $40.5 4.0% (10.2%) driver of the s
Slide 7: Specialty Chemicals and Engineered Materials (SCEM)
Specialty Chemicals and Engineered Materials (SCEM)2 3Q22 Highlights 3Q22 over 3Q22 over $ in millions 3Q22 2Q22 3Q21 3Q21 2Q22 Net Revenue1 $224.2 $225.2 $197.3 13.6% (0.4%) Sales growth (YOY) was primarily driven by surface preparation solutions, specialty Segment Profit1 $34.2 $38.1 $36.9 (7.3%)
Slide 8: Advanced Planarization Solutions (APS)
Advanced Planarization Solutions (APS)2 3Q22 Highlights 3Q22 over 3Q22 over $ in millions 3Q22 2Q22 3Q21 3Q21 2Q22 Net Revenue $293.9 $305.3 $269.8 8.9% (3.7%) Sales growth (YOY) was primarily driven by Segment Profit1 $18.9 $84.9 $68.5 (72.4%) (77.7%) the CMP consumable products. The biggest driver
Slide 9: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 3Q22 2Q22 3Q21 $ Amount % Total $ Amount % Total $ Amount % Total Cash, Cash Equivalents & Restricted Cash $754.7 7.4% $2,743.2 46.8% $475.8 15.8% Accounts Receivable, net $519.8 5.1% $381.3 6.5% $315.1 10.5% Inventories $823.6 8.1% $583.8 10.0% $429.0 14.
Slide 10: Cash Flows
Cash Flows $ in millions 3Q22 2Q22 3Q21 Beginning Cash Balance $2,743.2 $352.7 $401.0 Cash provided by operating activities 145.5 110.9 149.5 Capital expenditures (126.7) (107.7) (48.9) Proceeds from revolving credit facilities and debt 2,810.4 2,527.3 — Payments on revolving credit facilities and d
Slide 11: Outlook
Outlook GAAP $ in millions, except per share data 4Q22 Guidance 3Q22 Actual 2Q22 Actual Net Revenue $930 - $970 $993.8 $692.5 Operating Expenses $259 - $264 $356.8 $152.4 Net Income (Loss) $42 - $50 $(73.7) $99.5 Diluted Earnings (Loss) per Common Share $0.28 - $0.33 $(0.50) $0.73 Operating Margin 1
Slide 12: Entegris trademarks notice
Entegris®, the Entegris Rings Design®, and other product names are trademarks of Entegris, Inc. as listed on entegris.com/trademarks. All product names, logos, and company names are trademarks or registered trademarks of their respective owners. Use of them does not imply any affiliation, sponsorshi
Slide 13: Appendix
Appendix Entegris
Slide 14: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Nine months ended $ in thousands October 1, 2022 October 2, 2021 July 2, 2022 October 1, 2022 October 2, 2021 Net sales $993,828 $579,493 $692,489 $2,335,963 $1,663,689 Gross profit-GAAP $371,671 $264,204 $310,397 $991,8
Slide 15: Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP
Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP Operating Expenses and Tax Rate Three months ended $ in millions October 1, 2022 October 2, 2021 July 2, 2022 GAAP operating expenses $356.8 $124.8 $152.4 Adjustments to operating expenses: Deal and transaction costs 31.9 — 2.4 Integ
Slide 16: Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA $ in thousands Three Months Ended Nine months ended October 1, 2022 October 2, 2021 July 2, 2022 October 1, 2022 October 2, 2021 Net sales $993,828 $579,493 $692,489 $2,335,963 $1,663,689 Net (loss) income $(73,703) $
Slide 17: Reconciliation of GAAP Net Income and EPS to Non-GAAP
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 Three months ended Nine months ended October 1, 2022 October 2, 2021 July 2, 2022 October 1, 2022 October 2, 2021 GAAP n
Slide 18: Reconciliation of GAAP Outlook to Non-GAAP Outlook
Reconciliation of GAAP Outlook to Non-GAAP Outlook $ in millions Fourth-Quarter 2022 Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses GAAP operating expenses $259 - $264 Adjustments to net income: Deal, transaction and integration costs 23 Amortization of intangible asse
Slide 19: Reconciliation of GAAP Outlook to Non-GAAP Outlook Continued
Reconciliation of GAAP Outlook to Non-GAAP Outlook Continued Fourth-Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin December 31, 2022 Net sales $930 - $970 GAAP - Operating income $132 - $153 Operating margin - as a % of net sales 14% - 16
Slide 20: Proforma GAAP Segment Trend Data Unaudited
Proforma GAAP Segment Trend Data Unaudited¹ ² Nine months October 1, $ in millions Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 FY 2020 FY 2021 2022 Sales SCEM $ 190.9 $ 181.1 $ 181.6 $ 198.5 $ 193.8 $ 224.3 $ 218.5 $ 220.7 $ 221.4 $ 225.4 $ 224.2 $ 752.1 $ 857.3 $ 671.0 MC 159.3 183.8 193
Slide 21: Proforma GAAP Segment Trend Data Unaudited (continued)
Proforma GAAP Segment Trend Data Unaudited¹ ² (continued) Nine months October 1, $ in millions Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 FY 2020 FY 2021 2022 Total Segment Profit (Loss) $ 177.0 $ 196.1 $ 200.9 $ 205.8 $ (59.5) $ 241.6 $ 216.6 $ 253.4 $ 278.7 $ 262.3 $ 262.4 $ 779.8 $ 65
Slide 22: Proforma Non-GAAP Segment Trend Data Unaudited
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² Nine months October 1, $ in millions Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 FY 2020 FY 2021 2022 Sales - GAAP SCEM $ 190.9 $ 181.1 $ 181.6 $ 198.5 $ 193.8 $ 224.3 $ 218.5 $ 220.7 $ 221.4 $ 225.4 $ 224.2 $ 752.1 $ 857.3 $ 671.0 MC 159.
Slide 23: Proforma Non-GAAP Segment Trend Data Unaudited (continued)
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² (continued) Nine months October 1, $ in millions Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 FY 2020 FY 2021 2022 Segment Profit - GAAP SCEM $ 53.3 $ 49.7 $ 43.3 $ 34.9 $ (170.5) $ 57.2 $ 36.9 $ 41.4 $ 52.2 $ 38.1 $ 39.3 $ 181.2 $ (35.0) $
Slide 24: Proforma Non-GAAP Segment Trend Data Unaudited (continued)
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² (continued) Nine months October 1, $ in millions Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 FY 2020 FY 2021 2022 Adjusted Segment Profit AMH segment Profit $ 20.6 $ 22.8 $ 33.3 $ 34.3 $ 32.1 $ 42.1 $ 40.5 $ 45.3 $ 46.7 $ 46.9 $ 42.1 $ 111