Entegris, Inc. · NASDAQ:ENTG
Entegris — Q2 2020 Earnings Presentation
22 slides from Entegris's earnings presentation, Jul 23, 2020
Slide 1: Earnings Summary Second Quarter 2020
Earnings Summary Second Quarter 2020 July 23, 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: Second Quarter 2020 Financial Summary
Second Quarter 2020 Financial Summary $448M +18% 1 $0.50 GAAP EPS -45% REVENUE $0.60 2 +54% NON-GAAP EPS 3 $95M +72% 21.1% +660 bps OPERATING INCOME OPERATING MARGIN $111M +44% 24.7%3 2 +440 bps ADJUSTED OPERATING INCOME2 ADJUSTED OPERATING MARGIN 1. All growth data on this slide is year-on-year. 2.
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations (GAAP) 2Q20 over 2Q20 over $ in millions, except per share data 2Q20 2Q20 Guidance 1Q20 2Q19 2Q19 1Q20 Net Revenue $448.4 $410- $430 $412.3 $378.9 18.3% 8.8% Gross Margin 46.2% 45.0% 43.9% Operating Expenses $112.7 $102 - $104 $104.7 $111.4 1.2% 7.6% Op
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
1 Summary – Consolidated Statement of Operations (Non-GAAP) 2Q20 over 2Q20 over $ in millions, except per share data 2Q20 2Q20 Guidance 1Q20 2Q19 2Q19 1Q20 Net Revenue $448.4 $410- $430 $412.3 $378.9 18.3% 8.8% Adjusted Gross Margin – as a % of 46.0% 45.1% 44.1% Net Sales2 Non-GAAP Operating Expense
Slide 6: Specialty Chemicals and Engineered Materials (SCEM)
1 Specialty Chemicals and Engineered Materials (SCEM) 2Q20 Highlights Sales growth (YOY): primarily driven by 2Q20 over 2Q20 over advanced deposition materials, cleaning $ in millions 2Q20 1Q20 2Q19 2Q19 1Q20 chemistries and the impact of Net Revenue $146.2 $144.2 $127.6 14.6% 1.4% acquisitions. Off
Slide 7: Microcontamination Control (MC)
1 Microcontamination Control (MC) 2Q20 Highlights Sales growth (YOY): primarily driven by 2Q20 over 2Q20 over liquid filtration, gas filtration and the $ in millions 2Q20 1Q20 2Q19 2Q19 1Q20 impact of the Anow acquisition. Net Revenue $183.8 $159.3 $150.2 22.4% 15.4% –––––– Sales growth (SEQ): prima
Slide 8: Advanced Materials Handling (AMH)
1 Advanced Materials Handling (AMH) 2Q20 Highlights 2Q20 over 2Q20 over Sales increase (YOY): primarily driven by $ in millions 2Q20 1Q20 2Q19 2Q19 1Q20 high purity liquid containers and wafer Net Revenue $126.4 $116.1 $107.5 17.6% 8.9% handling products. ––––– Segment Profit $22.8 $20.6 $15.0 51.6%
Slide 9: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 2Q20 1Q20 2Q19 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $532.7 19.0 % $335.1 12.9 % $521.4 21.5 % Accounts Receivable, net $275.6 9.8 % $277.8 10.7 % $218.7 9.0 % Inventories $332.9 11.9 % $300.7 11.6 % $261.9 10.8 % Net P
Slide 10: Cash Flows
Cash Flows $ in millions 2Q20 1Q20 2Q19 Beginning Cash Balance $335.1 $351.9 $342.4 Cash provided by operating activities $130.0 $11.4 $230.9 Capital expenditures ($24.3) ($22.6) ($25.6) Proceeds from short-term borrowings and long-term debt $400.0 $217.0 — Payments on long-term debt ($293.0) ($75.0
Slide 11: Outlook
Outlook GAAP $ in millions, except per share data 3Q20 Guidance 2Q20 Actual 1Q20 Actual Net Revenue $450 - $475 $448.4 $412.3 Operating Expenses $109 - $111 $112.7 $104.7 Net Income $70 - $78 $68.0 $61.0 Diluted Earnings per Common Share $0.51 - $0.57 $0.50 $0.45 Non-GAAP $ in millions, except per s
Slide 12: Liquidity and Capital Structure
Liquidity and Capital Structure $ in millions Liquidity 03/28/2020 06/27/2020 U.S. Cash $134 $313 Foreign Cash $201 $220 Total Cash $335 $533 Undrawn Revolving Credit Facility $158 $300 Total Liquidity $493 $833 Debt Structure 03/28/2020 06/27/2020 Covenants Senior Secured Term Loan (due 2025) $396
Slide 13: Entegris trademarks 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 14: Appendix
Appendix Entegris
Slide 15: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Six months ended $ in thousands June 27, 2020 June 29, 2019 March 28, 2020 June 27, 2020 June 29, 2019 Net sales $448,405 $378,874 $412,327 $860,732 $769,921 Gross profit-GAAP $207,372 $166,274 $185,478 $392,850 $343,667
Slide 16: 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 June 27, 2020 June 29, 2019 March 28, 2020 GAAP operating expenses $112.7 $111.4 $104.7 Adjustments to operating expenses: Deal and transaction costs 0.5 1.1 1.4 Integr
Slide 17: Reconciliation of GAAP Segment Profit to Adjusted Operating Income
Reconciliation of GAAP Segment Profit to Adjusted Operating Income $ in thousands Three Months Ended Six months ended Segment profit-GAAP June 27, 2020 June 29, 2019 March 28, 2020 June 27, 2020 June 29, 2019 Specialty Chemicals and Engineered Materials (SCEM) $32,938 $24,000 $32,670 $65,608 $48,431
Slide 18: 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 Six months ended June 27, 2020 June 29, 2019 March 28, 2020 June 27, 2020 June 29, 2019 Net sales $448,405 $378,874 $412,327 $860,732 $769,921 Net income $68,036 $123,997 $61,006 $129
Slide 19: Reconciliation of GAAP Net Income and 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 Six months ended June 27, 2020 June 29, 2019 March 28, 2020 June 27, 2020 June 29, 2019 GAAP net inco
Slide 20: Reconciliation of GAAP Outlook to Non-GAAP Outlook
Reconciliation of GAAP Outlook to Non-GAAP Outlook $ in millions Third-Quarter Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses GAAP operating expenses $109 - $111 Adjustments to net income: Restructuring and integration costs 2 Amortization of intangible assets 12 Non-G
Slide 21: GAAP Segment Trend Data
1 GAAP Segment Trend Data $ in thousands Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Sales SCEM $130,743 $134,336 $131,234 $133,928 $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 MC 118,923 124,937 151,478 158,500 157,706 150,185 155,979 169,794 159,261 183,758 AMH 124,078 130,572 123,2
Slide 22: Non-GAAP Segment Trend Data
1 Non-GAAP Segment Trend Data $ in thousands Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Sales SCEM $134,336 $131,234 $133,928 $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 MC 124,937 151,478 158,500 157,706 150,185 155,979 169,794 159,261 183,758 AMH 130,572 123,227 115,527 116,064 107,515