Mks Inc. · NASDAQ:MKSI
Mks — Q2 2024 Earnings Presentation
21 slides from Mks's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial MKS Instruments, Inc. Results August 8, 2024
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financi
Slide 3: Notes on Presentation
Notes on Presentation Use of Non-GAAP Financial Measures This presentation includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non- GAAP financial measures should be viewed in addition to, and not as a subst
Slide 4: Q2 2024 Results: Resilience, Execution, Profitability
Q2 2024 Results: Resilience, Execution, Profitability Q2 2024 Q2 2024 Q2 2024 $887M $228M $1.53 NON-GAAP REVENUE ADJUSTED NET EARNINGS PER EBITDA DILUTED SHARE ● Revenue at high end of guidance ● Strong gross margins above 47%, reflective of the value of our proprietary and differentiated solutions
Slide 5: Semiconductor
Semiconductor Q2 Highlights Business Trends Guidance Q2 2024 Q/Q CHANGE 5% Q3 2024 $369M Y/Y CHANGE -16% $360M+/- $15M REVENUE Y/Y CHANGE1 5% REVENUE Excluding FX and Ransomware Recovery ● Revenue exceeded expectations driven by in- ● Strategic photonics win through our World quarter demand convers
Slide 6: Electronics & Packaging
Electronics & Packaging Q2 Highlights Business Trends Q/Q CHANGE +10% Guidance Q2 2024 Q3 2024 $229M Y/Y CHANGE +2% $220M+/- $10M REVENUE Y/Y CHANGE1 +13% REVENUE Excluding FX, Palladium & Ransomware Recovery ● Double-digit growth led by chemistry with ● Combined laser drilling and chemistry some s
Slide 7: Specialty Industrial
Specialty Industrial Q2 Highlights Business Trends Q/Q CHANGE -7% Guidance Q2 2024 Q3 2024 $289M Y/Y CHANGE -14% $290M+/- $15M REVENUE Y/Y CHANGE1 -3% REVENUE Excluding FX, Palladium and Ransomware Recovery ● Revenue decreased from softness in vacuum ● Specialty Industrial market leverages our and
Slide 8: Q2'24 Revenue & Select Financial Measures
Q2’24 Revenue & Select Financial Measures Y/Y Change Excl. FX, Q2’24 S U MMARY Pd and Ransomware ● Revenue at the high end of guidance driven by Q2'24 Q1'24 Q2'23 Recovery1 Semiconductor and Electronics & Packaging Semiconductor $369M $351M $441M 5% markets Electronics & Packaging $229M $208M $225M
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Q2’24 S U MMARY Q2'24 Q1'24 Cash, Cash Equivalents & Short-Term Investments $851M $846M ● Liquidity of more than $1.5 billion, consisting of $851 Accounts Receivable $597M $576M million of cash, cash equivalents and short-term Inventories $938M $971M investments and an undr
Slide 10: Outlook
Outlook Out look Q3'24 Q2'24 Actual ● Q3 ‘24 Revenue outlook by end-market: Revenue $870M +/- $40M $887M ‒ Semiconductor – $360M +/- $15M Non-GAAP Financial Measures ‒ Electronics & Packaging – $220M +/- $10M Gross Margin 46.5% +/- 100 bps 47.3% ‒ Specialty Industrial – $290M +/- $15M Operating Expe
Slide 11: MKS is well-positioned for the next cyclical upturn
MKS is well-positioned for the next cyclical upturn ● Executing well while navigating cyclical softness in end markets ● Differentiated product and technology portfolio ● Favorable secular trends 11
Slide 12: Q&A
Q&A
Slide 13: Revenue
Revenue Q2’24 Q1’24 Q2’23 Specialty Specialty Specialty Industrial Semi Industrial Semi Industrial 32% 36% 34% Semi 42% 40% 44% Electronics & Electronics & Electronics & Packaging Packaging Packaging 26% 24% 22% Consumables & Service 43% Consumables & Service 42% Consumables & Service 38% 13
Slide 14: Revenue
Revenue Q2'24 vs Q2'23(1) Change Change Excluding FX, Pd & Total Excluding Ransomware Ransomware Q2'24 Q1'24 Q2'23 Change FX Pd FX & Pd Recovery Recovery Semiconductor $ 369 $ 351 $ 441 -16% -1% 0% -15% -20% 5% Electronics & Packaging 229 208 225 2% -4% -6% 11% -2% 13% Specialty Industrial 289 309 3
Slide 15: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q2'24 Q1'24 Q2'23 Net income (loss) $ 23 $ 15 $ (1,769) Acquisition and integration costs (Note 1) 2 1 5 Restructuring and other (Note 2) 2 3 11 Amortization of intangible assets 61 62 76 Goodwill and intangible asset impairments (Note 3) — — 1,827 Amortiz
Slide 16: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q2'24 Q1'24 Q2'23 Operating expenses $ 292 $ 309 $ 2,166 Acquisition and integration costs (Note 1) 2 1 5 Restructuring and other (Note 2) 2 3 11 Amortization of intangible assets 61 62 76 Goodwill and intangible asset impairments (Note 3) — — 1,827 Fees a
Slide 17: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Net income (loss) $ 23 $ 15 $ (68) $ 39 $ (1,769) Interest expense, net 74 81 83 89 84 Other (income) expense, net (Note 10) (7) (3) 12 7 11 (Benefit) provision for income taxes (1) 4 (11) (17) (22) Depreciation 25 26 25 25 25
Slide 18: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q2'24 Q1'24 Q2'23 Net cash provided by (used in) operating activities $ 122 $ 67 $ (59) Purchases of property, plant and equipment (26) (18) (18) Free cash flow $ 96 $ 49 $ (77) Q2'24 Q1'24 Q2'23 Free cash flow $ 96 $ 49 $ (77) Cash paid for interest 77 75
Slide 19: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q2'24 Q1'24 (Benefit) Income Before Provision for Effective Tax Income Before Provision for Effective Tax Income Tax Income Taxes Rate Income Tax Income Taxes Rate GAAP $ 22 $ (1) -3.6% $ 19 $ 4 23.1% Acquisition and integration costs (Note 1) 2 — 1 — Rest
Slide 20: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial
Slide 21: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial