Entegris, Inc. · NASDAQ:ENTG
Entegris — Q4 2016 Earnings Presentation
19 slides from Entegris's earnings presentation, Feb 2, 2017
Slide 1: Earnings Summary Fourth Quarter and Fiscal Year 2016
FEBRUARY 2, 2017 Earnings Summary Fourth Quarter and Fiscal Year 2016 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: 4Q16 and FY2016 Highlights
3 4Q16 AND FY2016 HIGHLIGHTS ◦ Achieved record sales of $1.2 billion in fiscal 2016, 9% organic growth and significant outperformance of markets ◦ Generated record EPS and EBITDA for fiscal 2016, and a record EBITDA margin of 22.4 percent ◦ Growth initiatives are on track with key design wins at 10
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
$ in millions, except per share data 4Q16 4Q16 Guidance 3Q16 4Q15 4Q16 over 3Q16 4Q16 over 4Q15 Net Revenue $308.5 $275 to $290 $296.7 $266.8 4.0% 15.6% Gross Margin 42.7% 41.5% 41.0% Operating Expenses $86.9 $88.3 $89.2 (1.6%) (2.6%) Operating Income $44.9 $34.7 $20.1 29.4% 123.4% Operating Margin
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
$ in millions, except per share data 4Q16 4Q16 Guidance 3Q16 4Q15 4Q16 over 3Q16 4Q16 over 4Q15 Net Revenue $308.5 $275 to $290 $296.7 $266.8 4.0% 15.6% Adjusted Gross Margin2 42.7% 43.6% 41.0% Non-GAAP Operating Expenses3 $76.0 $75.4 $72.2 0.8% 5.3% Adjusted Operating Income $55.8 $53.9 $37.1 3.5%
Slide 6: Summary – Consolidated Statement of Operations (GAAP), Fiscal Year
$ in millions, except per share data Fiscal Year Ended December 31, 2016 Fiscal Year Ended December 31, 2015 Year-over-Year Net Revenue $1,175.3 $1,081.1 8.7% Gross Margin 43.3% 43.5% Operating Expenses $353.2 $352.2 0.3% Operating Income $155.5 $118.1 31.7% Operating Margin 13.2% 10.9% Tax Rate 19.
Slide 7: Summary – Consolidated Statement of Operations (Non-GAAP), Fiscal Year
$ in millions, except per share data Fiscal Year Ended December 31, 2016 Fiscal Year Ended December 31, 2015 Year-over-Year Net Revenue $1,175.3 $1,081.1 8.7% Adjusted Gross Margin2 43.8% 43.5% Non-GAAP Operating Expenses3 $306.9 $292.1 5.1% Adjusted Operating Income $208.0 $178.1 16.8% Adjusted Ope
Slide 8: Results by Segment
8 RESULTS BY SEGMENT Critical Materials Handling ◦ Liquid Filters and Purifiers ◦ Gas Filters/Diffusers/Purifiers ◦ Airborne Molecular Contamination Control Products ◦ Microenvironments ◦ Fluid Handling ◦ Sensing & Control ◦ Liquid Packaging ◦ Graphite Products ◦ Specialty Coatings Electronic Materi
Slide 9: Results by Segment
$73.5 $96.1 $110.0 MC4 RESULTS BY SEGMENT 9 1. Excludes amortization of intangibles and unallocated expenses. 2. Segment profit for AMH for the three months ended October 1, 2016 includes charges for impairment of equipment and severance related to organizational realignment totaling $6,795. 3. Segm
Slide 10: Revenue by Geography
22% 56% 13% 9% REVENUE BY GEOGRAPHY 10 Revenue By Geography Asia Japan Europe U.S. $60.1 $170.5 $40.4 $25.7 $63.0 $180.0 $38.3 $27.1 U.S. Asia Japan Europe Quarter-to-Quarter Revenue by Geography $ in millions 3Q16 4Q16 3Q16 4Q16 3Q16 4Q16 FY 2016 3Q16 4Q16
Slide 11: Summary – Balance Sheet Items
$ in millions 4Q16 3Q16 4Q15 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $406.4 23.9% $411.8 24.0% $349.8 21.2% Accounts Receivable, net $165.7 9.7% $167.6 9.8% $141.4 8.6% Inventories $183.5 10.8% $186.0 10.9% $173.2 10.5% Net PP&E $321.6 18.9% $315.5 18.4% $321.3 19.
Slide 12: Adjusted EBITDA Margin
12 1. See Reconciliation of GAAP Income to Adjusted Operating Income and Adjusted EBITDA in the appendix of this presentation. ADJUSTED EBITDA MARGIN1 $232 $264 21.5% 22.4% 0 0.05 0.1 0.15 0.2 0 50 100 150 200 250 2015 2016 Adjusted Annual EBITDA Adj. EBITDA in $M Adj. EBITDA as % of Sales $68 $70 2
Slide 13: Cash Flows
$ in millions 4Q16 3Q16 4Q15 Beginning Cash Balance $411.8 $373.7 $301.1 Cash from operating activities 57.1 71.9 52.2 Capital expenditures (20.0) (13.1) (16.3) Payments on long-term debt (25.0) (25.0) - Other investing activities 0.1 0.1 5.9 Other financing activities (3.2) (0.2) 6.4 Effect of exch
Slide 14: Outlook
OUTLOOK 14 Non-GAAP operating expenses exclude amortization. In 4Q16, amortization is estimated to be approximately $11 million, or $0.05 per share. $ in millions, except per share data 1Q17 Guidance 4Q16 4Q15 Net Revenue $295 to $310 $308.5 $266.8 Gross Margin 42.7% 41.0% Operating Expenses $87 to
Slide 15: Trademarks
Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 15
Slide 16: Appendix: Non-GAAP Reconciliation Tables
16 APPENDIX: NON-GAAP RECONCILIATION TABLES
Slide 17: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA 17 Three months ended Twelve months ended December 31, 2016 December 31, 2015 October 1, 2016 December 31, 2016 December 31, 2015 Net sales $308,502 $266,786 $296,692 $1,175,270 $1,081,121 Net incom
Slide 18: Reconciliation of GAAP Profit to Adjusted Gross Profit
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP PROFIT TO ADJUSTED GROSS PROFIT 18 Three months ended Twelve months ended December 31, 2016 December 31, 2015 October 1, 2016 December 31, 2016 December 31, 2015 Net sales $308,502 $266,786 $296,692 $1,175,270 $1,081,121 Gross profit-GAAP $131,800
Slide 19: Reconciliation of GAAP to Non-GAAP Earnings Per Share
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS PER SHARE 19 Three months ended Twelve months ended December 31, 2016 December 31, 2015 October 1, 2016 December 31, 2016 December 31, 2015 GAAP net income $26,098 $17,573 $21,947 $97,147 $80,296 Adjustments to net income: Sev