Entegris, Inc. · NASDAQ:ENTG
Entegris — Q1 2021 Earnings Presentation
21 slides from Entegris's earnings presentation, Apr 27, 2021
Slide 1: Earnings Summary First Quarter 2021
Earnings Summary April 27, 2021 First 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: First Quarter 2021 Financial Summary
+24% 1$513M REVENUE +41%$114M OPERATING INCOME +38% $0.70 DILUTED NON-GAAP EPS 2 +260 bps22.2% 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 $0.62 DILUTED GAAP EPS +27% First Quarter 2021 Financial
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
4 $ in millions, except per share data 1Q21 1Q21 Guidance 4Q20 1Q20 1Q21 over 1Q20 1Q21 over 4Q20 Net Revenue $512.8 $510 - $525 $517.6 $412.3 24.4% (0.9%) Gross Margin 45.8% 44.6% 45.0% Operating Expenses $121.0 $118 - $120 $117.6 $104.7 15.6% 2.9% Operating Income $114.0 $113.2 $80.7 41.3% 0.7% Op
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
5 $ in millions, except per share data 1Q21 1Q21 Guidance 4Q20 1Q20 1Q21 over 1Q20 1Q21 over 4Q20 Net Revenue $512.8 $510 - $525 $517.6 $412.3 24.4% (0.9%) Adjusted Gross Margin – as a % of Net Sales2 45.8% 44.6% 45.1% Non-GAAP Operating Expenses3 $107.0 $104 - $106 $103.9 $86.2 24.1% 3.0% Adjusted
Slide 6: Specialty Chemicals and Engineered Materials (SCEM) 1Q21 Highlights
6 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. Sales growth (YOY): primarily driven by advanced deposition materials, cleaning chemistries, specialty gases and advanced coatings. –––––– Adj. segment profit margin (SEQ): increase in operating margin was primaril
Slide 7: Microcontamination Control (MC) 1Q21 Highlights
7 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. Microcontamination Control (MC) 1Q21 Highlights $ in millions 1Q21 4Q20 1Q20 1Q21 over 1Q20 1Q21 over 4Q20 Net Revenue $207.1 $205.6 $159.3 30.0% 0.7% Segment Profit $70.6 $71.7 $50.2 40.7% (1.6%) Segment Profit Ma
Slide 8: Advanced Materials Handling (AMH) 1Q21 Highlights
8 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. Advanced Materials Handling (AMH) 1Q21 Highlights $ in millions 1Q21 4Q20 1Q20 1Q21 over 1Q20 1Q21 over 4Q20 Net Revenue $148.5 $151.7 $116.1 27.9% (2.1%) Segment Profit $32.1 $34.3 $20.6 55.6% (6.5%) Segment Profi
Slide 9: Summary – Balance Sheet Items
9 $ in millions 1Q21 4Q20 1Q20 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $548.5 18.7% $580.9 19.9% $335.1 12.9% Accounts Receivable, net $282.6 9.6% $264.4 9.1% $277.8 10.7% Inventories $358.8 12.2% $323.9 11.1% $300.7 11.6% Net PP&E $542.6 18.5% $525.4 18.0% $474.8
Slide 10: Cash Flows
10 $ in millions 1Q21 4Q20 1Q20 Beginning Cash Balance $580.9 $448.0 $351.9 Cash provided by operating activities $53.1 $204.0 $11.4 Capital expenditures ($43.3) ($52.2) ($22.6) Proceeds from short-term borrowings and long-term debt — — $217.0 Payments on short-term borrowings and long-term debt — —
Slide 11: Outlook
11 GAAP $ in millions, except per share data 2Q21 Guidance 1Q21 Actual 4Q20 Actual Net Revenue $530 - $545 $512.8 $517.6 Operating Expenses $122 - $124 $121.0 $117.6 Net Income $77 - $84 $84.7 $86.6 Diluted Earnings per Common Share $0.56 - $0.61 $0.62 $0.63 Non-GAAP $ in millions, except per share
Slide 12: Trademark 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
14 Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended $ in thousands April 3, 2021 March 28, 2020 December 31, 2020 Net sales $512,844 $412,327 $517,594 Gross profit-GAAP $234,986 $185,478 $230,872 Adjustments to gross profit: Charge for fair value mark-up of acquired in
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 April 3, 2021 March 28, 2020 December 31, 2020 GAAP operating expenses $121.0 $104.7 $117.6 Adjustments to operating expenses: Deal and transaction costs — 1.4 — Int
Slide 16: Adjusted segment profit reconciliation
16 $ in thousands Three months ended Adjusted segment profit April 3, 2021 March 28, 2020 December 31, 2020 SCEM segment profit $34,556 $32,670 $29,761 Severance and restructuring costs 47 174 155 Charge for fair value write-up of acquired inventory sold — 235 — SCEM adjusted segment profit $34,603
Slide 17: Reconciliation of Net Income to Adjusted Operating Income and EBITDA
17 $ in thousands Three Months Ended April 3, 2021 March 28, 2020 December 31, 2020 Net sales $512,844 $412,327 $517,594 Net income $84,676 $61,006 $86,624 Net income – as a % of net sales 16.5% 14.8% 16.7% Adjustments to net income: Income tax expense 13,391 8,622 19,776 Interest expense, net 11,58
Slide 18: Reconciliation of GAAP Net Income and EPS to Non-GAAP
18 $ in thousands, except per share data Three months ended April 3, 2021 March 28, 2020 December 31, 2020 GAAP net income $84,676 $61,006 $86,624 Adjustments to net income: Charge for fair value write-up of inventory acquired — 361 — Deal and transaction costs — 1,431 — Integration costs 2,044 48 1
Slide 19: Second-Quarter Outlook Reconciliation
19 $ in millions Second-Quarter Outlook Reconciliation GAAP net income to non-GAAP net income GAAP net income $77 - $84 Adjustments to net income: Restructuring costs 2 Amortization of intangible assets 12 Loss on extinguishment of debt 23 Income tax effect (8) Non-GAAP net income $106 - $113 Second
Slide 20: Quarterly segment sales and profit
20 $ in thousands Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Sales SCEM $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 $150,480 $168,625 $166,541 MC 157,706 150,185 155,979 169,794 159,261 183,758 193,541 205,626 207,099 AMH 116,064 107,515 117,256 117,455 116,137 126,434 144,370 151,741 14
Slide 21: Quarterly adjusted segment profit
21 $ in thousands Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Sales SCEM $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 $150,480 $168,625 $166,541 MC 157,706 150,185 155,979 169,794 159,261 183,758 193,451 205,626 207,099 AMH 116,064 107,515 117,256 117,455 116,137 126,434 144,370 151,741 14