Entegris, Inc. · NASDAQ:ENTG
Entegris — Q3 2021 Earnings Presentation
21 slides from Entegris's earnings presentation, Oct 26, 2021
Slide 1: Earnings Summary Third Quarter 2021
Earnings Summary October 26, 2021 Third Quarter 2021 Exhibit 99.2
Slide 2: Forward-looking statements
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. These forward-lo
Slide 3: Third Quarter 2021 Financial Summary
+20% 1$579M REVENUE +31%$139M OPERATING INCOME +48% $0.92 DILUTED NON-GAAP EPS 2 +180 bps24.0%3 OPERATING MARGIN 1. All growth data on this slide is year-on-year. 2. See appendix for GAAP to non-GAAP reconciliations. 3. As a % of net sales. 3 $0.86 DILUTED GAAP EPS +37% Third Quarter 2021 Financial
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
4 $ in millions, except per share data 3Q21 3Q21 Guidance 2Q21 3Q20 3Q21 over 3Q20 3Q21 over 2Q21 Net Revenue $579.5 $575 - $590 $571.4 $481.0 20.5% 1.4% Gross Margin 45.6% 46.4% 47.0% Operating Expenses $124.8 $129 - $131 $126.5 $119.2 4.7% (1.3%) Operating Income $139.4 $138.9 $106.8 30.5% 0.3% Op
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
5 $ in millions, except per share data 3Q21 3Q21 Guidance 2Q21 3Q20 3Q21 over 3Q20 3Q21 over 2Q21 Net Revenue $579.5 $575 - $590 $571.4 $481.0 20.5% 1.4% Adjusted Gross Margin – as a % of Net Sales2 45.6% 46.4% 47.0% Non-GAAP Operating Expenses3 $111.5 $116 - $118 $113.8 $104.6 6.6% (2.0%) Adjusted
Slide 6: Specialty Chemicals and Engineered Materials (SCEM) 3Q21 Highlights
6 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. Year-on-year sales growth was primarily driven by advanced deposition materials and specialty gases. Shortages of key raw materials in the quarter were the primary driver in the modest sequential sales decline. –––
Slide 7: Microcontamination Control (MC) 3Q21 Highlights
7 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. Microcontamination Control (MC) 3Q21 Highlights $ in millions 3Q21 2Q21 3Q20 3Q21 over 3Q20 3Q21 over 2Q21 Net Revenue $225.9 $227.5 $193.5 16.7% (0.7%) Segment Profit $78.4 $78.1 $64.9 20.8% 0.3% Segment Profit Ma
Slide 8: Advanced Materials Handling (AMH) 3Q21 Highlights
8 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. Advanced Materials Handling (AMH) 3Q21 Highlights $ in millions 3Q21 2Q21 3Q20 3Q21 over 3Q20 3Q21 over 2Q21 Net Revenue $186.2 $172.5 $144.4 29.0% 7.9% Segment Profit $40.5 $42.1 $33.3 21.8% (3.8%) Segment Profit
Slide 9: Summary – Balance Sheet Items
9 $ in millions 3Q21 2Q21 3Q20 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $475.8 15.8% $401.0 14.0% $448.0 16.0% Accounts Receivable, net $315.1 10.5% $309.9 10.8% $300.5 10.7% Inventories $429.0 14.2% $387.6 13.5% $329.7 11.8% Net PP&E $597.6 19.8% $563.3 19.6% $490.
Slide 10: Cash Flows
10 $ in millions 3Q21 2Q21 3Q20 Beginning Cash Balance $401.0 $548.5 $532.7 Cash provided by operating activities 149.5 81.9 101.2 Capital expenditures (48.9) (41.8) (32.7) Proceeds from revolving credit facilities and long-term debt — 451.0 — Payments on revolving credit facilities and long-term de
Slide 11: Outlook
11 GAAP $ in millions, except per share data 4Q21 Guidance 3Q21 Actual 2Q21 Actual Net Revenue $580 - $600 $579.5 $571.4 Operating Expenses $128 - $130 $124.8 $126.5 Net Income $109- $116 $117.5 $88.8 Diluted Earnings per Common Share $0.80 - $0.85 $0.86 $0.65 Non-GAAP $ in millions, except per shar
Slide 12: Trademarks
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
14 Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Nine months ended $ in thousands October 2, 2021 September 26, 2020 July 3, 2021 October 2, 2021 September 26, 2020 Net sales $579,493 $480,987 $571,352 $1,663,689 $1,341,719 Gross profit-GAAP $264,204 $226,000 $265,3
Slide 15: Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP
15 Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP Operating Expenses and Tax Rate Three months ended $ in millions October 2, 2021 September 26, 2020 July 3, 2021 GAAP operating expenses $124.8 $119.2 $126.5 Adjustments to operating expenses: Deal and transaction costs — 0.6 — In
Slide 16: Adjusted segment profit reconciliation
16 $ in thousands Three months ended Nine months ended Adjusted segment profit October 2, 2021 September 26, 2020 July 3, 2021 October 2, 2021 September 26, 2020 SCEM segment profit $41,091 $32,600 $44,945 $120,592 $98,208 Integration costs — — — — (1,557) Severance and restructuring costs 69 277 51
Slide 17: Reconciliation of net income to operating income and adjusted EBITDA
17 $ in thousands Three Months Ended Nine months ended October 2, 2021 September 26, 2020 July 3, 2021 October 2, 2021 September 26, 2020 Net sales $579,493 $480,987 $571,352 $1,663,689 $1,341,719 Net income $117,461 $79,303 $88,770 $290,907 $208,345 Net income – as a % of net sales 20.3% 16.5% 15.5
Slide 18: Reconciliation of GAAP net income and EPS to non-GAAP
18 $ in thousands, except per share data Three months ended Nine months ended October 2, 2021 September 26, 2020 July 3, 2021 October 2, 2021 September 26, 2020 GAAP net income $117,461 $79,303 $88,770 $290,907 $208,345 Adjustments to net income: Charge for fair value write-up of inventory acquired
Slide 19: Fourth-Quarter Outlook Reconciliation
19 $ in millions Fourth-Quarter Outlook Reconciliation GAAP net income to non-GAAP net income GAAP net income $109 - $116 Adjustments to net income: Restructuring costs 2 Amortization of intangible assets 10 Income tax effect (2) Non-GAAP net income $119 - $126 Fourth-Quarter Outlook Reconciliation
Slide 20: Quarterly sales and segment profit by segment
20 $ in thousands Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Sales SCEM $127,750 $146,747 $144,214 $146,213 $150,480 $168,625 $166,541 $180,366 $176,380 MC 155,979 169,794 159,261 183,758 193,541 205,626 207,099 227,521 225,877 AMH 117,256 117,455 116,137 126,434 144,370 151,741 148,541 172,502 18
Slide 21: Quarterly sales and adjusted segment profit
21 $ in thousands Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Sales SCEM $127,750 $146,747 $144,214 $146,213 $150,480 $168,625 $166,541 $180,366 $176,380 MC 155,979 169,794 159,261 183,758 193,451 205,626 207,099 227,521 225,877 AMH 117,256 117,455 116,137 126,434 144,370 151,741 148,541 172,502 18