Entegris, Inc. · NASDAQ:ENTG
Entegris — Q1 2017 Earnings Presentation
18 slides from Entegris's earnings presentation, Apr 27, 2017
Slide 1: Earnings Summary First Quarter 2017
APRIL 27, 2017 Earnings Summary First Quarter 2017 Exhibit 99.2
Slide 2: Safe Harbor
2 SAFE HARBOR Certain information contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve substantial risks and uncertainties that could cause actual results to diffe
Slide 3: 1Q17 Highlights
3 1Q17 HIGHLIGHTS ◦ Achieved record sales of $317.4 million, up 19% from the prior year and up 3% from 4Q16 ◦ Record sales of microcontamination control and advanced deposition products ◦ Generated GAAP EPS of $0.23 and non-GAAP EPS of $0.28, above the high end of our guidance ◦ For the trailing fou
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
$ in millions, except per share data 1Q17 1Q17 Guidance 4Q16 1Q16 1Q17 over 1Q16 1Q17 over 4Q16 Net Revenue $317.4 $295 to $310 $308.5 $267.0 18.9% 2.9% Gross Margin 44.0% 42.7% 43.0% Operating Expenses $88.7 $86.9 $85.1 4.2% 2.1% Operating Income $50.9 $44.9 $29.6 72.0% 13.4% Operating Margin 16.0%
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
$ in millions, except per share data 1Q17 1Q17 Guidance 4Q16 1Q16 1Q17 over 1Q16 1Q17 over 4Q16 Net Revenue $317.4 $295 to $310 $308.5 $267.0 18.9% 2.9% Adjusted Gross Margin 44.0% 42.7% 43.0% Non-GAAP Operating Expenses2 $77.7 $76.0 $73.9 5.1% 2.2% Adjusted Operating Income $61.9 $55.8 $40.8 51.7%
Slide 6: Diluted Earnings Per Share
6 1. See Reconciliation of GAAP Net Income to Non-GAAP Earnings per Share in the appendix of this presentation. DILUTED EARNINGS PER SHARE1 $0.18 $0.23 $0.24 $0.28 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 4Q16 1Q17 Diluted EPS: 1Q17 vs. 4Q16 GAAP Non-GAAP $0.68 $0.80 $0.94 $1.05 $0.00 $0.20 $0.40 $
Slide 7: Results by Segment
RESULTS BY SEGMENT1 7 1. Adjusted segment operating margin excludes amortization of intangibles and unallocated expenses. 2. Segment profit for SCEM for 3Q16 includes a charge for severance related to organizational realignment of $699. 3. Segment profit for MC for 3Q16 includes a charge for severan
Slide 8: Revenue by Geography: Strong Growth in Asia and Europe
REVENUE BY GEOGRAPHY: STRONG GROWTH IN ASIA AND EUROPE 8 N. America Asia Japan Europe 1Q17 Revenue by Geography 1Q17 Revenue = $317.4 million 2% 32% 1% 16% N. America Asia Japan Europe 0% 10% 20% 30% 40% 1Q17 vs. 1Q16 Growth Rate $30.9M $185.7M $65.3M $35.4M
Slide 9: Summary – Balance Sheet Items
$ in millions 1Q17 4Q16 1Q16 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $391.2 23.1% $406.4 23.9% $344.4 20.8% Accounts Receivable, net $176.0 10.4% $165.7 9.7% $149.8 9.1% Inventories $188.3 11.1% $183.5 10.8% $184.0 11.1% Net PP&E $330.9 19.5% $321.6 18.9% $322.7 19
Slide 10: Adjusted EBITDA Margin
10 1. See Reconciliation of GAAP Income to Adjusted Operating Income and Adjusted EBITDA in the appendix of this presentation. ADJUSTED EBITDA MARGIN1 $231M $285M 21.3% 23.2% 0 0.05 0.1 0.15 0.2 0 50 100 150 200 250 300 TTM- 1Q16 TTM-1Q17 Adjusted EBITDA TTM Adj. EBITDA in $M Adj. EBITDA as % of Sal
Slide 11: Cash Flows
$ in millions 1Q17 4Q16 1Q16 Beginning Cash Balance $406.4 $411.8 $349.8 Cash from operating activities 33.4 57.1 17.3 Capital expenditures (22.2) (20.0) (17.8) Payments on long-term debt (25.0) (25.0) - Other investing activities 0.2 0.1 (2.5) Other financing activities (7.8) (3.2) (5.6) Effect of
Slide 12: Outlook
OUTLOOK 12 1. Non-GAAP operating expenses exclude amortization. In 2Q17, amortization is estimated to be approximately $11 million, or $0.05 per share. $ in millions, except per share data 2Q17 Guidance 1Q17 2Q16 Net Revenue $315 to $330 $317.4 $303.1 Gross Margin 44.0% 45.9% Operating Expenses $90
Slide 13: Trademark notice
Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 13
Slide 14: Appendix: Non-GAAP Reconciliation Tables
14 APPENDIX: NON-GAAP RECONCILIATION TABLES
Slide 15: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA 15 Three months ended April 1, 2017 April 2, 2016 December 31, 2016 Net sales $317,377 $267,024 $308,502 Net income $32,514 $16,212 $26,098 Adjustments to net income: Income tax expense 9,111 4,873
Slide 16: Reconciliation of GAAP to Non-GAAP Earnings Per Share
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS PER SHARE 16
Slide 17: GAAP Segment Trend Data
17 GAAP SEGMENT TREND DATA Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Sales SCEM 99,897$ 110,569$ 105,285$ 103,127$ 101,107$ 111,782$ 104,494$ 110,945$ 114,435$ MC 75,947 79,293 78,485 82,092 77,619 91,584 94,738 98,717 100,055 AMH 87,529 90,847 86,483 81,567 88,298 99,686 97,460 98,840 102,887 To
Slide 18: Non-GAAP Segment Trend Data
NON-GAAP SEGMENT TREND DATA 18 1 Adjusted segment profit for SCEM for Q316 excludes charges for severance related to organizational realignment of $699. 2 Adjusted segment profit for MC for Q316 excludes charges for severance related to organizational realignment of $737. 3 Adjusted segment profit f