Entegris, Inc. · NASDAQ:ENTG
Entegris — Q2 2018 Earnings Presentation
21 slides from Entegris's earnings presentation, Jul 26, 2018
Slide 1: Earnings Summary Second Quarter 2018
EXHIBIT 99.2 JULY 26, 2018 Earnings Summary Second Quarter 2018
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains, and management may make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the n
Slide 3: 2Q18 Highlights
2Q18 HIGHLIGHTS ◦ 2Q18 sales of $383 million grew 16% from same quarter a year ago and 4% from 1Q18, outpacing Entegris’ markets ◦ Growth was across all divisions: ◦ Specialty Chemicals and Engineered Materials sales grew 11% from prior year and 3% sequentially ◦ Microcontamination Control sales gre
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) 2Q18 over 2Q18 over $ in millions, except per share data 2Q18 2Q18 Guidance 1Q18 2Q17 2Q17 1Q18 Net Revenue $383.1 $370 to $385 $367.2 $329.0 16.4% 4.3% Gross Margin 47.6% 47.9% 45.7% Operating Expenses $107.4 $101 to $104 $97.5 $91.2 17.8% 10.2%
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)1 2Q18 over 2Q18 over $ in millions, except per share data 2Q18 2Q18 Guidance 1Q18 2Q17 2Q17 1Q18 Net Revenue $383.1 $370 to $385 $367.2 $329.0 16.4% 4.3% Adjusted Gross Margin2 47.7% 47.9% 46.3% Non-GAAP Operating Expenses3 $89.1 $89 to $92 $
Slide 6: Summary – Consolidated Statement of Operations (GAAP) – Year to Date
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) – YEAR TO DATE 1H18 over $ in millions, except per share data 1H18 1H17 1H17 Net Revenue $750.3 $646.4 16.1% Gross Margin 47.8% 44.8% Operating Expenses $205.0 $179.9 14.0% Operating Income $153.4 $110.0 39.5% Operating Margin 20.4% 17.0% Tax Rat
Slide 7: Summary – Consolidated Statement of Operations (Non-GAAP) – Year to Date
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP) – YEAR TO DATE1 1H18 over $ in millions, except per share data 1H18 1H17 1H17 Net Revenue $750.3 $646.4 16.1% Adjusted Gross Margin2 47.8% 45.2% Non-GAAP Operating Expenses3 $175.0 $156.2 12.0% Adjusted Operating Income $183.6 $135.7 35.3% Ad
Slide 8: Earnings Per Share
EARNINGS PER SHARE1 EPS: 2Q18 vs. 2Q17 EPS: 2Q18 vs. 1Q18 $0.60 $0.60 $0.49 $0.49 $0.50 $0.50 $0.47 $0.40 $0.40 $0.38 $0.40 $0.38 $0.34 $0.30 $0.28 $0.30 $0.20 $0.20 $0.10 $0.10 $0.00 $0.00 2Q17 2Q18 1Q18 2Q18 GAAP Non-GAAP GAAP Non-GAAP 1. Represents diluted earnings per share. See Reconciliation o
Slide 9: Results by Segment
RESULTS BY SEGMENT1 Specialty Chemicals and Microcontamination Advanced Materials Engineered Materials Control Segment3 Handling Segment4 2 $ in millions Segment $140 40% $140 40% $140 40% $120 $120 $120 30% 30% $100 30% $100 $100 $80 $80 $80 20% 20% 20% $60 $60 $60 $40 $40 $40 10% 10% 10% $20 $20 $
Slide 10: Revenue by Geography: Strong Growth in N. America, Korea, Japan, China and Europe
REVENUE BY GEOGRAPHY: STRONG GROWTH IN N. AMERICA, KOREA, JAPAN, CHINA AND EUROPE 1H18 Revenue by Geography 1H18 vs. 1H17 Growth Rate Revenue = $750.3 million Taiwan -14% Taiwan N. America 24% N. America $132.5M $170.1M South Korea 28% Southeast Japan 40% Asia $57.8M $68.8M China 37% Europe $127.5M
Slide 11: Summary – Balance Sheet Items
SUMMARY – BALANCE SHEET ITEMS $ in millions 2Q18 1Q18 2Q17 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $257.1 12.7% $550.2 28.1% $405.6 23.5% Accounts Receivable, net $200.4 9.9% $195.3 10.0% $171.1 9.9% Inventories $265.4 13.1% $214.1 10.9% $194.2 11.2% Net PP&E $380.
Slide 12: Adjusted EBITDA Margin
ADJUSTED EBITDA MARGIN1 Adjusted EBITDA and EBITDA Margin Adjusted TTM EBITDA 28.2% 28.9% 28.5% 27.8% 27.7% 27.7% 400 26.8% $408 $109 $387 $106 350 $96 $97 300 80 $88 250 200 40 150 100 50 0 0 2Q17 3Q17 4Q17 1Q18 2Q18 TTM-1Q18 TTM-2Q18 Adj. EBITDA in $M Adj. EBITDA as % of Sales Adj. EBITDA in $M Ad
Slide 13: Cash Flows
CASH FLOWS $ in millions 2Q18 1Q18 2Q17 Beginning Cash Balance $550.2 $625.4 $391.2 Cash from operating activities $98.3 $38.8 $85.2 Capital expenditures ($26.4) ($21.0) ($20.3) Acquisition of business ($342.6) ($37.7) ($20.0) Payments on long-term debt ($2.0) ($25.0) ($25.0) Repurchase and retireme
Slide 14: Outlook
OUTLOOK GAAP $ in millions, except per share data 3Q18 Guidance 2Q18 Actual 3Q17 Actual Net Revenue $395 to $410 $383.1 $345.6 Operating Expenses1 $108 to $110 $107.4 $94.8 Net Income $52 to $59 $54.3 $40.9 Earnings Per Diluted Share $0.36 to $0.41 $0.38 $0.28 Non-GAAP $ in millions, except per shar
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: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT $ in thousands Three months ended Six months ended June 30, 2018 July 1, 2017 March 31, 2018 June 30, 2018 July 1, 2017 Net Sales $383,059 $329,002 $367,199 $750,258 $646,379 Gross profit-GAAP $182,378 $150,30
Slide 17: Reconciliation of GAAP Segment Profit to Adjusted Operating Income
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP SEGMENT PROFIT TO ADJUSTED OPERATING INCOME $ in thousands Three months ended Six months ended Segment profit-GAAP June 30, 2018 July 1, 2017 March 30, 2018 June 30, 2018 July 1, 2017 Specialty Chemicals and Engineered Materials $37,316 $29,060 $3
Slide 18: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA $ in thousands Three months ended Six months ended June 30, 2018 July 1, 2017 March 31, 2018 June 30, 2018 July 1, 2017 Net sales $383,059 $329,002 $367,199 $750,258 $646,379 Net income $54,349 $39,
Slide 19: Reconciliation of GAAP to Non-GAAP Earnings Per Share
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS PER SHARE $ in thousands, except per share data Three months ended Six months ended June 30, 2018 July 1, 2017 March 31, 2018 June 30, 2018 July 1, 2017 GAAP net income $54,349 $39,991 $57,562 $111,911 $72,505 Adjustments to n
Slide 20: GAAP Segment Trend Data
GAAP SEGMENT TREND DATA $ in thousands Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Sales SCEM $ 101,107 $ 111,782 $ 104,494 $ 110,945 $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,637 124,681 AMH 88,298 99,686 97,
Slide 21: Non-GAAP Segment Trend Data
NON-GAAP SEGMENT TREND DATA $ in thousands Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Sales SCEM $ 101,107 $ 111,782 $ 104,494 $ 110,945 $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,637 124,681 AMH 88,298 99,686