Entegris, Inc. · NASDAQ:ENTG

Entegris — Q4 2017 Earnings Presentation

22 slides from Entegris's earnings presentation, Feb 6, 2018

  1. Slide 1: Earnings Summary Fourth Quarter and Fiscal Year 2017

    FEBRUARY 6, 2018 Earnings Summary Fourth Quarter and Fiscal Year 2017 EXHIBIT 99.2

  2. Slide 2: Safe Harbor

    2 SAFE HARBOR This document contains, and management may make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the neg

  3. Slide 3: 4Q17 Highlights

    3 4Q17 HIGHLIGHTS ◦ 4Q17 sales grew 14% from a year ago and 1% sequentially, reflecting growth across the portfolio and the fifth consecutive record quarter: ◦ Specialty Chemicals and Engineered Materials sales grew 13% from a year ago, achieving it 4th consecutive quarter of record sales and reflec

  4. Slide 4: FY2017 Highlights

    4 FY2017 HIGHLIGHTS ◦ Fiscal 2017 sales grew 14% from a year ago, reflecting record performances for all three divisions: ◦ Specialty Chemicals and Engineered Materials sales grew 13% ◦ Microcontamination Control sales grew 20% ◦ Advanced Materials Handling sales grew 10% ◦ Exceeded our financial co

  5. Slide 5: Summary – Consolidated Statement of Operations (GAAP)

    $ in millions, except per share data 4Q17 4Q17 Guidance 3Q17 4Q16 4Q17 over 4Q16 4Q17 over 3Q17 Net Revenue $350.6 $335 to $345 $345.6 $308.5 13.6% 1.4% Gross Margin 46.7% 45.0% 42.7% Operating Expenses $92.5 $90 to $92 $94.8 $86.9 6.4% (2.4%) Operating Income $71.2 $60.7 $44.9 58.6% 17.3% Operating

  6. Slide 6: Summary – Consolidated Statement of Operations (Non-GAAP)

    $ in millions, except per share data Q417 4Q17 Guidance 3Q17 4Q16 4Q17 over 4Q16 4Q17 over 3Q17 Net Revenue $350.6 $335 to $345 $345.6 $308.5 13.6% 1.4% Adjusted Gross Margin2 46.7% 46.2% 42.7% Non-GAAP Operating Expenses3 $81.5 $79 to $81 $78.4 $76.0 3.2% 0% Adjusted Operating Income $82.2 $81.1 $5

  7. Slide 7: Summary – Consolidated Statement of Operations (GAAP), Fiscal Year

    $ in millions, except per share data Fiscal Year Ended December 31, 2017 Fiscal Year Ended December 31, 2016 Year-over-Year Net Revenue $1,342.5 $1,175.3 14.2% Gross Margin 45.4% 43.3% Operating Expenses $367.2 $353.2 4.0% Operating Income $241.8 $155.5 55.5% Operating Margin 18.0% 13.2 % Tax Rate 5

  8. Slide 8: Summary – Consolidated Statement of Operations (Non-GAAP) – Year to Date

    $ in millions, except per share data Fiscal Year Ended December 31, 2017 Fiscal Year Ended December 31, 2016 Year-over-Year Net Revenue $1,342.5 $1,175.3 14.2% Adjusted Gross Margin2 45.8% 43.8% Non-GAAP Operating Expenses3 $316.1 $306.9 3.0% Adjusted Operating Income $298.9 $208.0 43.7% Adjusted Op

  9. Slide 9: Earnings (Loss) Per Share

    9 1. Represents diluted earnings (loss) per share. See Reconciliation of GAAP Net Income to Non-GAAP Earnings per Share in the appendix of this presentation. EARNINGS (LOSS) PER SHARE1 $0.18 ($0.20) $0.24 $0.42 -$0.30 -$0.20 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 4Q16 4Q17 EPS: 4Q17 vs. 4Q16 GAA

  10. Slide 10: Results by Segment

    RESULTS BY SEGMENT1 10 1. Adjusted segment operating margin excludes amortization of intangibles and unallocated expenses. 2. Segment profit for SCEM for 3Q17 includes a charge for severance of $14K. 3. Segment profit for MC for Q317 includes a charge for severance of $196K. Segment profit for MC fo

  11. Slide 11: Revenue by Geography: Strong Growth in South Korea and China

    REVENUE BY GEOGRAPHY: STRONG GROWTH IN SOUTH KOREA AND CHINA 11 N. America Southeast Asia Taiwan FY2017 Revenue by Geography Revenue = $1,342.5 million $169.5M $120.5M Europe Japan China South Korea 6% 14% 26% 9% 49% 13% -1% Southeast Asia Europe China Japan South Korea N. America Taiwan -5% 5% 15%

  12. Slide 12: Summary – Balance Sheet Items

    $ in millions 4Q17 3Q17 4Q16 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $625.4 31.6% $435.2 24.8% $406.4 23.9% Accounts Receivable, net $183.4 9.3% $183.4 10.4% $165.7 9.7% Inventories $198.1 10.0% $193.3 11.0% $183.5 10.8% Net PP&E $359.5 18.2% $346.7 19.7% $321.6 18

  13. Slide 13: Adjusted EBITDA Margin

    13 1. See Reconciliation of GAAP Income to Adjusted Operating Income and Adjusted EBITDA in the appendix of this presentation. ADJUSTED EBITDA MARGIN1 $264 $357 22.4% 26.6% 0 50 100 150 200 250 300 350 2016 2017 Adjusted Annual EBITDA Adj. EBITDA in $M Adj. EBITDA as % of Sales $70 $76 $97 22.7% 23.

  14. Slide 14: Cash Flows

    $ in millions 4Q17 3Q17 4Q16 Beginning Cash Balance $435.2 $405.6 $411.8 Cash from operating activities $85.7 $89.0 $57.1 Capital expenditures ($25.7) ($25.4) ($20.0) Proceeds from long-term debt 550.0 - - Payments on long-term debt ($385.0) ($25.0) ($25.0) Payments for debt extinguishment costs ($1

  15. Slide 15: Outlook

    OUTLOOK 15 1. Non-GAAP operating expenses exclude amortization. In 1Q18, amortization is estimated to be approximately $11 million, or $0.05 per share. $ in millions, except per share data 1Q18 Guidance 4Q17 Actual 1Q17 Actual Net Revenue $355 to $365 $350.6 $317.4 Operating Expenses $94 to $96 $92.

  16. Slide 16: Trademarks notice

    Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 16

  17. Slide 17: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT 17 Three months ended Twelve months ended December 31, 2017 December 31, 2016 September 30, 2017 December 31, 2017 December 31, 2016 Net Sales $350,562 $308,502 $345,591 $1,342,532 $1,175,270 Gross profit-GAAP

  18. Slide 18: Reconciliation of GAAP Segment Profit to Adjusted Operating Income

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP SEGMENT PROFIT TO ADJUSTED OPERATING INCOME 18 Three months ended Twelve months ended Segment profit-GAAP December 31, 2017 December 31, 2016 September 30, 2017 December 31, 2017 December 31, 2016 Specialty Chemicals and Engineered Materials $35,8

  19. Slide 19: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA 19 Three months ended Twelve months ended December 31, 2017 December 31, 2016 September 30, 2017 December 31, 2017 December 31, 2016 Net sales $350,562 $308,502 $345,591 $1,342,532 $1,175,270 Net (l

  20. Slide 20: Reconciliation of GAAP to Non-GAAP (Loss) Earnings Per Share

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP (LOSS) EARNINGS PER SHARE 20 Three months ended Twelve months ended December 31, 2017 December 31, 2016 September 30, 2017 December 31, 2017 December 31, 2016 GAAP net (loss) income ($28,341) $26,098 $40,902 $85,066 $97,147 Adjustments

  21. Slide 21: GAAP Segment Trend Data

    21 GAAP SEGMENT TREND DATA Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Sales SCEM 99,897$ 110,569$ 105,285$ 103,127$ 101,107$ 111,782$ 104,494$ 110,945$ 114,435$ 121,174$ 124,522$ 125,339$ MC 75,947 79,293 78,485 82,092 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 AMH

  22. Slide 22: Non-GAAP Segment Trend Data

    NON-GAAP SEGMENT TREND DATA 22 1. Adjusted segment profit for SCEM for Q316 excludes charges for severance of $699K. Adjusted segment profit for SCEM for Q317 excludes charges for severance of $14K. 2. Adjusted segment profit for MC for Q316 excludes charges for severance of $737K. Adjusted segment

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