Entegris, Inc. · NASDAQ:ENTG
Entegris — Q3 2020 Earnings Presentation
21 slides from Entegris's earnings presentation, Oct 22, 2020
Slide 1: Earnings Summary Third Quarter 2020
Exhibit 99.2 Earnings Summary Third Quarter 2020 October 22, 2020
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: Third Quarter 2020 Financial Summary
Third Quarter 2020 Financial Summary 1 $0.58 +93% $481M +22% DILUTED GAAP EPS REVENUE $0.67 +34% DILUTED NON-GAAP EPS2 3 $107M 22.2% +880 bps OPERATING INCOME +102% OPERATING MARGIN 3 $122M 25.3% +290 bps ADJUSTED OPERATING INCOME2 +38% ADJUSTED OPERATING MARGIN2 1. All growth data on this slide is
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations (GAAP) 3Q20 over 3Q20 over $ in millions, except per share data 3Q20 3Q20 Guidance 2Q20 3Q19 3Q19 2Q20 Net Revenue $481.0 $450- $475 $448.4 $394.1 22.1% 7.3% Gross Margin 47.0% 46.2% 43.2% Operating Expenses $119.2 $109 - $111 $112.7 $117.6 1.4% 5.8% Op
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations (Non-GAAP)1 3Q20 over 3Q20 over $ in millions, except per share data 3Q20 3Q20 Guidance 2Q20 3Q19 3Q19 2Q20 Net Revenue $481.0 $450- $475 $448.4 $394.1 22.1% 7.3% Adjusted Gross Margin – as a % of 47.0% 46.0% 44.6% Net Sales2 Non-GAAP Operating Expenses
Slide 6: Specialty Chemicals and Engineered Materials (SCEM) 3Q20 Highlights
Specialty Chemicals and Engineered Materials (SCEM) 3Q20 Highlights 3Q20 over 3Q20 over $ in millions 3Q20 2Q20 3Q19 3Q19 2Q20 Sales growth (YOY & SEQ): primarily driven by advanced deposition materials, Net Revenue $150.5 $146.2 $127.8 17.8% 2.9% advanced coatings and cleaning Segment Profit $32.6
Slide 7: Microcontamination Control (MC) 3Q20 Highlights
Microcontamination Control (MC) 3Q20 Highlights Sales growth (YOY): primarily driven by liquid filtration, gas filtration and the impact of the Anow acquisition. 3Q20 over 3Q20 over $ in millions 3Q20 2Q20 3Q19 3Q19 2Q20 –––––– Net Revenue $193.5 $183.8 $156.0 24.1% 5.3% Sales growth (SEQ): primaril
Slide 8: Advanced Materials Handling (AMH) 3Q20 Highlights
Advanced Materials Handling (AMH) 3Q20 Highlights Sales increase (YOY): primarily driven by high purity liquid containers, fluid 3Q20 over 3Q20 over handling products, sensing and control $ in millions 3Q20 2Q20 3Q19 3Q19 2Q20 products, wafer handling products and Net Revenue $144.4 $126.4 $117.3 23
Slide 9: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 3Q20 2Q20 3Q19 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $448.0 16.0 % $532.7 19.0 % $282.7 11.5 % Accounts Receivable, net $300.5 10.7 % $275.6 9.8 % $261.3 10.6 % Inventories $329.7 11.8 % $332.9 11.9 % $290.3 11.8 % Net
Slide 10: Cash Flows
Cash Flows $ in millions 3Q20 2Q20 3Q19 Beginning Cash Balance $532.7 $335.1 $521.4 Cash provided by operating activities $101.2 $130.0 $25.3 Capital expenditures ($32.7) ($24.3) ($26.3) Proceeds from long-term debt $— $400.0 — Payments on short-term borrowings and long-term debt ($100.0) ($293.0) —
Slide 11: Outlook
Outlook GAAP $ in millions, except per share data 4Q20 Guidance 3Q20 Actual 2Q20 Actual Net Revenue $480 - $495 $481.0 $448.4 Operating Expenses Approximately flat vs. Q320 $119.2 $112.7 Net Income $75 - $82 $79.3 $68.0 Diluted Earnings per Common Share $0.55 - $0.60 $0.58 $0.50 Non-GAAP $ in millio
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
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Nine months ended September 26, September 28, September 26, September 28, $ in thousands 2020 2019 June 27, 2020 2020 2019 Net sales $480,987 $394,147 $448,405 $1,341,719 $1,164,068 Gross profit-GAAP $226,000 $170,350 $2
Slide 15: 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 September 26, 2020 September 28, 2019 June 27, 2020 GAAP operating expenses $119.2 $117.6 $112.7 Adjustments to operating expenses: Deal and transaction costs 0.6 4.9 0
Slide 16: Reconciliation of GAAP Segment Profit to Adjusted Operating Income and Adjusted Segment Profit
Reconciliation of GAAP Segment Profit to Adjusted Operating Income and Adjusted Segment Profit $ in thousands Three Months Ended Nine months ended Segment profit-GAAP September 26, 2020 September 28, 2019 June 27, 2020 September 26, 2020 September 28, 2019 Specialty Chemicals and Engineered Material
Slide 17: 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 Nine months ended September 26, 2020 September 28, 2019 June 27, 2020 September 26, 2020 September 28, 2019 Net sales $480,987 $394,147 $448,405 $1,341,719 $1,164,068 Net income $79,3
Slide 18: 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 Nine months ended September 26, 2020 September 28, 2019 June 27, 2020 September 26, 2020 September 28
Slide 19: Reconciliation of GAAP Outlook to Non-GAAP Outlook
Reconciliation of GAAP Outlook to Non-GAAP Outlook $ in millions Fourth-Quarter Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses GAAP operating expenses $115 - $117 Adjustments to net income: Restructuring and integration costs 1 Amortization of intangible assets 12 Non-
Slide 20: GAAP Segment Trend Data
GAAP Segment Trend Data1 $ in thousands Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Sales SCEM $131,234 $133,928 $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 $150,480 MC 151,478 158,500 157,706 150,185 155,979 169,794 159,261 183,758 193,541 AMH 123,227 115,527 116,064 107,515 117,256 117,
Slide 21: Non-GAAP Segment Trend Data
Non-GAAP Segment Trend Data1 $ in thousands Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Sales SCEM $131,234 $133,928 $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 $150,480 MC 151,478 158,500 157,706 150,185 155,979 169,794 159,261 183,758 193,451 AMH 123,227 115,527 116,064 107,515 117,256