Mks Inc. · NASDAQ:MKSI
Mks — Q3 2024 Earnings Presentation
21 slides from Mks's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial MKS Instruments, Inc. Results November 7, 2024
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financi
Slide 3: Notes on Presentation
Notes on Presentation Use of Non-GAAP Financial Measures This presentation includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non- GAAP financial measures should be viewed in addition to, and not as a subst
Slide 4: Q3 2024 Results: Resilience, Execution, Profitability
Q3 2024 Results: Resilience, Execution, Profitability Q3 2024 Q3 2024 Q3 2024 $896M $232M $1.72 NON-GAAP REVENUE ADJUSTED NET EARNINGS PER EBITDA DILUTED SHARE ● All key financial metrics at or above the high end of guidance ● Strong gross margins above 48%, reflective of the value of our broad and
Slide 5: Semiconductor
Semiconductor Q3 Highlights Business Trends Guidance Q3 2024 Q/Q CHANGE +3% Q4 2024 $378M Y/Y CHANGE +3% $380M+/- $15M REVENUE Y/Y CHANGE1 +8% REVENUE Excluding FX and Ransomware Recovery ● Revenue above high end of guidance range ● Engaged with Equipment OEMs and leading driven by in-quarter deman
Slide 6: Electronics & Packaging
Electronics & Packaging Q3 Highlights Business Trends Q/Q CHANGE +1% Guidance Q3 2024 Q4 2024 $231M Y/Y CHANGE -5% $240M+/- $10M REVENUE Y/Y CHANGE1 -1% REVENUE Excluding FX, Palladium & Ransomware Recovery ● Seasonal growth in chemistry business partially ● Demand overall remains muted, but offset
Slide 7: Specialty Industrial
Specialty Industrial Q3 Highlights Business Trends Q/Q CHANGE -1% Guidance Q3 2024 Q4 2024 $287M Y/Y CHANGE -11% $290M+/- $15M REVENUE Y/Y CHANGE1 -6% REVENUE Excluding FX, Palladium and Ransomware Recovery ● Steady performance in industrial, and research ● Leverages our proprietary technologies an
Slide 8: Q3'24 Revenue & Select Financial Measures
Q3’24 Revenue & Select Financial Measures Q3’24 SUMMARY Y/Y Change Excl. FX, Pd and Ransomware ● Revenue at the high end of guidance driven by Q3'24 Q2'24 Q3'23 Recovery1 Semiconductor and Electronics & Packaging Semiconductor $378M $369M $367M 8% markets Electronics & Packaging $231M $229M $243M -1
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Q3’24 SUMMARY Q3'24 Q2'24 Cash and Cash Equivalents $861M $851M ● Liquidity of more than $1.5 billion, consisting of $861 Accounts Receivable, Net $609M $597M million of cash and cash equivalents and an undrawn Inventories $940M $938M revolving credit facility of $675 milli
Slide 10: Outlook
Outlook Outlook Q4'24 Q3'24 Actual ● Q4 ‘24 Revenue outlook by end-market: Revenue $910M +/- $40M $896M ‒ Semiconductor – $380M +/- $15M Non-GAAP Financial Measures ‒ Electronics & Packaging – $240M +/- $10M Gross Margin 47% +/- 100 bps 48.2% ‒ Specialty Industrial – $290M +/- $15M Operating Expense
Slide 11: MKS is well-positioned for the next cyclical upturn
MKS is well-positioned for the next cyclical upturn ● Executing well while navigating cyclical challenges in end markets ● Differentiated product and technology portfolio ● Uniquely positioned to capitalize on secular trends ahead 11
Slide 12: Q&A
Q&A
Slide 13: Revenue
Revenue Q3’24 Q2’24 Q3’23 Specialty Specialty Specialty Industrial Industrial Industrial 32% 32% Semi 35% Semi Semi 42% 39% 42% Electronics & Electronics & Electronics & Packaging Packaging Packaging 26% 26% 26% Consumables & Service 44% Consumables & Service 43% Consumables & Service 42% 13
Slide 14: Revenue
Revenue Q3'24 vs Q3'23(1) Change Change Excluding FX, Pd & Total Excluding Ransomware Ransomware Q3'24 Q2'24 Q3'23 Change FX Pd FX & Pd Recovery Recovery Semiconductor $ 378 $ 369 $ 367 3% 0% 0% 3% -4% 8% Electronics & Packaging 231 229 243 -5% 0% -3% -1% -1% -1% Specialty Industrial 287 289 322 -11
Slide 15: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q3'24 Q2'24 Q3'23 Net income $ 62 $ 23 $ 39 Acquisition and integration costs (Note 1) 3 2 3 Restructuring and other (Note 2) 1 2 1 Fees and expenses related to amendments to the Term Loan Facility (Note 3) 2 — — Amortization of intangible assets 61 61 68
Slide 16: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q3'24 Q2'24 Q3'23 Operating expenses $ 304 $ 292 $ 308 Acquisition and integration costs (Note 1) 3 2 3 Restructuring and other (Note 2) 1 2 1 Fees and expenses related to amendments to the Term Loan Facility (Note 3) 2 — — Amortization of intangible asset
Slide 17: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Net income (loss) $ 62 $ 23 $ 15 $ (68) $ 39 Interest expense, net 58 74 81 83 89 Other expense (income), net (Note 11) 5 (7) (3) 12 7 (Benefit) provision for income taxes (2) (1) 4 (11) (17) Depreciation 26 25 26 25 25 Amorti
Slide 18: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q3'24 Q2'24 Q3'23 Net cash provided by operating activities $ 163 $ 122 $ 160 Purchases of property, plant and equipment (22) (26) (18) Free cash flow $ 141 $ 96 $ 142 Q3'24 Q2'24 Q3'23 Free cash flow $ 141 $ 96 $ 142 Cash paid for interest 61 77 86 Tax ef
Slide 19: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q3'24 Q2'24 (Benefit) (Benefit) Income Before Provision for Effective Tax Income Before Provision for Effective Tax Income Tax Income Taxes Rate Income Tax Income Taxes Rate GAAP $ 60 $ (2) -4.0% $ 22 $ (1) -3.6% Acquisition and integration costs (Note 1)
Slide 20: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial
Slide 21: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial