Entegris, Inc. · NASDAQ:ENTG
Entegris — Q1 2023 Earnings Presentation
32 slides from Entegris's earnings presentation, May 11, 2023
Slide 1: Earnings Summary First Quarter 2023
Earnings Summary First Quarter 2023 May 11, 2023
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 1Q23 1Q22 4Q22 1Q23 over 1Q22 1Q23 over 4Q22 Net Revenue $922.4 $649.6 $946.1 42.0% (2.5)% Gross Margin 43.5% 47.7% 42.8% Operating Expenses $388.2 $146.5 $260.7 165.0% 48.9% Operating Income $13.5 $163.3 $143
Slide 4: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations (Non-GAAP)1 $ in millions, except per share data 1Q23 1Q22 4Q22 1Q23 over 1Q22 1Q23 over 4Q22 Net Revenue $922.4 $649.6 $946.1 42.0% (2.5)% Adjusted Gross Margin – as a % of 44.3% 47.7% 42.8% Net Sales Non-GAAP Operating Expenses2 $204.3 $127.6 $185.2 6
Slide 5: Microcontamination Control (MC)
Microcontamination Control (MC) 1Q23 Highlights 1Q23 over 1Q23 over $ in millions 1Q23 1Q22 4Q22 1Q22 4Q22 Net Revenue $269.3 $266.6 $284.7 1.0% (5.4)% Sales decline (SEQ) was driven primarily by lower sales of our CAPEX driven solutions Segment Profit $96.0 $98.6 $107.4 (2.6)% (10.6)% in MC. Segmen
Slide 6: Advanced Materials Handling (AMH)
Advanced Materials Handling (AMH) 1Q23 Highlights 1Q23 over 1Q23 over $ in millions 1Q23 1Q22 4Q22 1Q22 4Q22 Net Revenue $218.9 $198.1 $213.9 10.5% 2.3% Sales growth (YOY) was driven by strength Segment Profit $48.2 $46.7 $48.0 3.2% 0.4% in wafer and fluid handling solutions. –––––– Segment Profit M
Slide 7: Specialty Chemicals and Engineered Materials (SCEM)
Specialty Chemicals and Engineered Materials (SCEM)2 1Q23 Highlights 1Q23 over 1Q23 over $ in millions 1Q23 1Q22 4Q22 1Q22 4Q22 Net Revenue1 $198.0 $210.5 $204.2 (5.9)% (3.0)% Sales decline was driven primarily by the Segment Profit1 $3.3 $52.2 $14.8 (93.7)% (77.7)% impact of the sale of QED in mid-
Slide 8: Advanced Planarization Solutions (APS)
Advanced Planarization Solutions (APS)2 1Q23 Highlights 1Q23 over 1Q23 over $ in millions 1Q23 1Q22 4Q22 1Q22 4Q22 Net Revenue $250.3 $299.1 $253.8 (16.3)% (1.4)% Sales decline was primarily driven by lower sales of CMP consumables, except for SiC Segment Profit1 $(32.8) $88.9 $56.7 (136.9)% (157.8)
Slide 9: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 1Q23 1Q22 4Q22 $ Amount % Total $ Amount % Total $ Amount % Total Cash, Cash Equivalents & Restricted Cash $709.0 7.0% $352.7 10.7% $563.4 5.6% Accounts Receivable, net $511.4 5.1% $372.8 11.4% $535.5 5.3% Inventories $830.9 8.3% $545.6 16.6% $812.8 8.0% N
Slide 10: Cash Flows
Cash Flows $ in millions 1Q23 1Q22 4Q22 Beginning Cash Balance $563.4 $402.6 $754.7 Cash provided by operating activities 151.9 63.8 32.1 Capital expenditures (134.0) (84.4) (147.4) Proceeds from revolving credit facilities and debt 117.2 79.0 — Payments on revolving credit facilities and debt (117.
Slide 11: Outlook
Outlook GAAP $ in millions, except per share data 2Q23 Guidance 1Q23 Actual 4Q22 Actual Net Revenue $870 - $900 $922.4 $946.1 Operating Expenses $262 - $267 $388.2 $260.7 Net Income (Loss) $14 - $21 $(88.2) $57.4 Diluted Earnings (Loss) per Common Share $0.09 - $0.14 $(0.59) $0.38 Operating Margin 1
Slide 12: 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: Summary Consolidated Statement of Operations - Proforma
Summary Consolidated Statement of Operations - Proforma $ in millions, except per share data 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 Net Revenue $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 Gross Margin 45.2% 42.4% 37.4% 42.8% 41.9% 43.5% Operating Expenses $218.2 $226.9 $356.8 $260.7 $1,062.6 $388.2 Opera
Slide 15: Summary – Consolidated Statement of Operations (Non-GAAP) - Proforma
Summary – Consolidated Statement of Operations (Non-GAAP)- Proforma 1 $ in millions, except per share data 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 Net Revenue $958.2 $1,011.7 $993.8 $946.1 $3,909.8 $922.4 Adjusted Gross Margin – as a % of 44.5% 42.0% 43.6% 42.8% 43.2% 44.3% Net Sales2 Non-GAAP Operating Exp
Slide 16: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended $ in thousands April 1, 2023 April 2, 2022 December 31, 2022 Net sales $922.4 $649.6 $946.1 Gross profit-GAAP $401.7 $309.8 $404.5 Adjustments to gross profit: Restructuring costs g* 7.4 — — Adjusted gross profit $409.1
Slide 17: 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 April 1, 2023 April 2, 2022 December 31, 2022 GAAP operating expenses $388.2 $146.5 $260.7 Adjustments to operating expenses: Goodwill impairment a * 88.9 — — Deal and
Slide 18: 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 April 1, 2023 April 2, 2022 December 31, 2022 Net sales $922.4 $649.6 $946.1 Net (loss) income (88.2) 125.7 57.4 Net (loss) income – as a % of net sales (9.6)% 19.3 % 6.1 % Adjustment
Slide 19: Reconciliation of GAAP Net Income and Diluted 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 April 1, 2023 April 2, 2022 December 31, 2022 GAAP net (loss) income $(88.2) $125.7 $57.4 Adjustments
Slide 20: Reconciliation of GAAP Outlook to Non-GAAP Outlook
Reconciliation of GAAP Outlook to Non-GAAP Outlook $ in millions Second -Quarter Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses GAAP operating expenses $262 - $267 Adjustments to net income: Deal, transaction and integration costs 20 Amortization of intangible assets 5
Slide 21: Reconciliation of GAAP Outlook to Non-GAAP Outlook (continued)
Reconciliation of GAAP Outlook to Non-GAAP Outlook (continued) $ in millions Second -Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin Net sales $870 - $900 GAAP - Operating income $103 - $119 Operating margin - as a % of net sales 12% - 13%
Slide 22: Proforma Segment Trend Data Unaudited
Proforma Segment Trend Data Unaudited¹ ² $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Sales SCEM $ 221.4 $ 225.4 $ 224.2 $ 204.2 $ 875.2 $ 198.0 APS 299.1 305.3 293.9 253.8 1,152.1 250.3 MC 266.6 274.1 280.6 284.7 1,106.0 269.3 AMH 198.1 224.1 210.4 213.9 846.5 218.9 Inter-segment elimination (16.
Slide 23: Proforma Segment Trend Data Unaudited (continued)
Proforma Segment Trend Data Unaudited¹ ² (continued) $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Total Segment Profit $ 279.4 $ 263.0 $ 262.4 $ 226.9 $ 1,031.7 $ 114.7 Amortization of intangible assets 28.5 28.3 65.3 53.5 175.6 57.6 Additional Amortization 3 30.6 30.6 — — 62.8 — Transaction Expen
Slide 24: Proforma Non-GAAP Segment Trend Data Unaudited
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Sales - Proforma SCEM $ 221.4 $ 225.4 $ 224.2 $ 204.2 $ 875.2 $ 198.0 APS 299.1 305.3 293.9 253.8 1,152.1 250.3 MC 266.6 274.1 280.6 284.7 1,106.0 269.3 AMH 198.1 224.1 210.4 213.9 846.5 218.9 Inter-segm
Slide 25: Proforma Non-GAAP Segment Trend Data Unaudited (continued)
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² (continued) $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Segment Profit - GAAP SCEM $ 52.2 $ 38.1 $ 39.3 $ 14.8 $ 144.4 $ 3.3 APS 81.9 77.9 75.7 56.7 292.2 96.0 MC 98.6 100.1 105.3 107.4 411.4 48.2 AMH 46.7 46.9 42.1 48.0 183.7 (32.8) Total Segment
Slide 26: Proforma Non-GAAP Segment Trend Data Unaudited (continued)
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² (continued) $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Adjusted Segment Profit AMH segment Profit $ 46.7 $ 46.9 $ 42.1 $ 48.0 $ 183.7 $ 48.2 Severance - Restructuring g* — — — — — 1.2 AMH adjusted segment profit $ 46.7 $ 46.9 $ 42.1 $ 48.0 $ 183.
Slide 27: Reconciliation of Proforma Net Sales to Non-GAAP Net Sales
Reconciliation of Proforma Net Sales to Proforma Non-GAAP Net Sales $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Proforma net sales 1 $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 Removal of Wood treatmentr* 10.9 0.2 — — 11.1 — Proforma Non-GAAP net sales $958.2 $1,011.7 $993.8 $946.1 $3,909.8 $92
Slide 28: Reconciliation of Proforma Operating Expenses and Tax Rate to Non-GAAP
Reconciliation of Proforma Operating Expenses and Tax Rate to Proforma Non-GAAP Operating Expenses and Non-GAAP Tax Rate $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Proforma Operating Expense $218.2 $226.9 $356.8 $260.7 $1,062.6 $388.2 Goodwill impairment a * — — — — — 88.9 Deal and transaction c
Slide 29: Reconciliation of Proforma Net Income to Adjusted Operating Income and EBITDA
Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income and Adjusted EBITDA $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Net sales $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 Net income (loss) 160.3 140.1 (73.8) 57.5 284.1 (88.2) Net income (loss) – as a % of proforma GAAP ne
Slide 30: Reconciliation of Proforma Net Income to Adjusted Operating Income Non-GAAP and EBITDA
Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income Non-GAAP and Adjusted EBITDA Non-GAAP $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Proforma Operating Income $219.9 $201.9 $14.9 $143.8 $580.5 $13.5 Proforma Operating Income - as a % of proforma net sales 22.7 % 20.0 % 1.
Slide 31: Reconciliation of Proforma Net Income and Diluted EPS to Non-GAAP
Reconciliation of Proforma Net Income and Diluted EPS to Proforma Non-GAAP Net Income and Diluted Non-GAAP EPS $ in millions, except per share data Q122 Q222 Q322 Q422 FY 2022 Q123 Proforma Net Income (Loss) $160.3 $140.1 $(73.8) $57.5 $284.1 $(88.2) Adjustments to Proforma Net Income (Loss): Charge
Slide 32: Footnotes
Footnotes a. Non-cash impairment charges associated with goodwill. b. Non-recurring deal and transaction costs associated with the CMC acquisition and completed and announced divestitures. c. Represents professional and vendor fees recorded in connection with services provided by consultants, accoun