Entegris, Inc. · NASDAQ:ENTG
Entegris — Q4 2023 Earnings Presentation
32 slides from Entegris's earnings presentation, Feb 13, 2024
Slide 1: Earnings Summary: Fourth Quarter 2023
February 13, 2024 Earnings Summary: Fourth Quarter 2023 Exhibit 99.2
Slide 2: Forward-looking statements
2 This news release 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. These forwar
Slide 3: GAAP Summary – Consolidated Statement of Operations
3 $ in millions, except per share data 4Q23 4Q22 3Q23 4Q23 over 4Q22 4Q23 over 3Q23 Net Sales $812.3 $946.1 $888.2 (14.1%) (8.5%) Gross Margin 42.4% 42.8% 41.3% Operating Expenses $243.7 $260.7 $250.0 (6.5%) (2.5%) Operating Income $101.0 $143.8 $117.1 (29.8%) (13.7%) Operating Margin 12.4% 15.2% 13
Slide 4: Non-GAAP Summary – Consolidated Statement of Operations
4 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. 2. Excludes amortization expense, deal and transaction costs, integration costs, goodwill impairment, restructuring costs, impairment of long-lived assets and loss on sale of businesses. 3. Reflects the tax effect
Slide 5: GAAP Summary – Consolidated Statement of Operations (Full Year)
5 GAAP Summary – Consolidated Statement of Operations $ in millions, except per share data Year ended December 31, 2023 Year ended December 31, 2022 Year-over-Year Net Sales $3,523.9 $3,282.0 7.4% Gross Margin 42.5% 42.5% Operating Expenses $998.4 $916.4 8.9% Operating Income $499.2 $480.0 4.0% Oper
Slide 6: Non-GAAP Summary – Full Year
6 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. 2. Excludes charges for fair value write-up of acquired inventory sold, integration costs and severance and restructuring costs. 3. Excludes amortization expense, deal and transaction costs, integration costs, good
Slide 7: Materials Solutions (MS) 4Q23 highlights
7 Materials Solutions (MS) 4Q23 highlights 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. $ in millions 4Q23 4Q22 3Q23 4Q23 over 4Q22 4Q23 over 3Q23 Net Sales1 $365.0 $458.0 $435.5 (20.3%) (16.2%) Segment Profit1 $53.2 $71.5 $57.0 (25.6%) (6.7%) Segment Profit Ma
Slide 8: Microcontamination Control (MC) 4Q23 highlights
8 Microcontamination Control (MC) 4Q23 highlights 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. $ in millions 4Q23 4Q22 3Q23 4Q23 over 4Q22 4Q23 over 3Q23 Net Sales $288.4 $284.7 $286.2 1.3% 0.8% Segment Profit $97.6 $107.4 $101.1 (9.1%) (3.5%) Segment Profit Ma
Slide 9: Advanced Materials Handling (AMH) 4Q23 highlights
9 Advanced Materials Handling (AMH) 4Q23 highlights 1. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. $ in millions 4Q23 4Q22 3Q23 4Q23 over 4Q22 4Q23 over 3Q23 Net Sales $169.2 $213.9 $180.2 (20.9%) (6.1%) Segment Profit $20.5 $48.0 $31.6 (57.3%) (35.1%) Segment Pr
Slide 10: Summary – Balance Sheet Items
10 $ in millions 4Q23 4Q22 3Q23 $ Amount % Total $ Amount % Total $ Amount % Total Cash, Cash Equivalents, and Restricted Cash $456.9 5.2% $563.4 5.6% $594.0 6.0% Accounts Receivable, net $457.1 5.2% $535.5 5.3% $463.1 4.7% Inventories $607.1 6.9% $812.8 8.0% $662.2 6.7% Net PP&E $1,468.0 16.7% $1,3
Slide 11: Cash Flows
11 1. Equals cash from operations less capital expenditures. 2. See GAAP to non-GAAP reconciliation tables in the appendix of this presentation. $ in millions 4Q23 4Q22 3Q23 Beginning Cash Balance $594.0 $754.7 $567.0 Cash provided by operating activities 150.7 32.1 200.0 Capital expenditures (128.7
Slide 12: Outlook
12 $ in millions, except per share data 1Q24 Guidance 4Q23 Actual 3Q23 Actual Net Sales $770 – $790 $812.3 $888.2 Non-GAAP Operating Expenses1 $171 – $174 $176.4 $172.1 Non-GAAP Net Income1 $91 – $98 $97.9 $103.6 Diluted non-GAAP Earnings per Common Share1 $0.60 – $0.65 $0.65 $0.68 Adjusted EBITDA M
Slide 13: Appendix
Appendix B Entegris
Slide 14: Consolidated Statement of Operations – Proforma
14 Summary – Consolidated Statement of Operations – Proforma1 (Includes CMC Materials results) 1The above pro forma results include the addition of CMC Materials Inc.'s (now known as CMC Materials LLC) ("CMC Materials") financials recorded prior to the consummation of the merger with the Company on
Slide 15: Consolidated Statement of Operations (Non-GAAP) – Proforma
15 Summary – Consolidated Statement of Operations (Non-GAAP) – Proforma1 (Includes CMC Materials results) 1. See Proforma to non-GAAP Proforma reconciliation tables in the appendix of this presentation. 2. The adjustment relates to removal of net sales related to CMC Materials’ wood treatment busine
Slide 16: Segment results – Proforma
16 1. During the three months ended September 30, 2023, the Company realigned its financial reporting structure reflecting management and organizational changes. The Company will report its financial performance based on three reportable segments: Materials Solutions (MS), Microcontamination Control
Slide 17: Segment results – Proforma (continued)
17 1. During the three months ended September 30, 2023, the Company realigned its financial reporting structure reflecting management and organizational changes. The Company will report its financial performance based on three reportable segments: Materials Solutions (MS), Microcontamination Control
Slide 18: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
18 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. Three months ended Twelve months ended $ in millions December 31, 2023 December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 Net sa
Slide 19: Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP
19 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP Operating Expenses and Tax Rate $ in millions Three months ended Twelve months ende
Slide 20: Reconciliation of GAAP Net Income to Adjusted Operating Income and EBITDA
20 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. $ in millions Three months ended Twelve months ended December 31, 2023 December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 Net sa
Slide 21: Reconciliation of GAAP Net Income and EPS to Non-GAAP
21 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. 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 mil
Slide 22: First-Quarter Outlook Reconciliation
22 $ in millions First-Quarter Outlook Reconciliation GAAP net income to non-GAAP net income: March 30, 2024 GAAP net income $42 – $49 Adjustments to net income: Deal, transaction and integration costs 8 Amortization of intangible assets 51 Income tax effect (10) Non-GAAP net income $91 – $98 First-
Slide 23: Reconciliation of GAAP Outlook to Non-GAAP Outlook (continued)
23 $ in millions First-Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin March 30, 2024 Net sales $770 – $790 GAAP – Operating income $101 – $115 Operating margin – as a % of net sales 13% – 15% Deal, transaction and integration costs 8 Amor
Slide 24: Proforma segment reconciliation
24 1. During the three months ended September 30, 2023, the Company realigned its financial reporting structure reflecting management and organizational changes. The Company will report its financial performance based on three reportable segments: Materials Solutions (MS), Microcontamination Control
Slide 25: Proforma segment reconciliation (continued)
25 1. During the three months ended September 30, 2023, the Company realigned its financial reporting structure reflecting management and organizational changes. The Company will report its financial performance based on three reportable segments: Materials Solutions (MS), Microcontamination Control
Slide 26: Proforma segment reconciliation (continued)
26 1. During the three months ended September 30, 2023, the Company realigned its financial reporting structure reflecting management and organizational changes. The Company will report its financial performance based on three reportable segments: Materials Solutions (MS), Microcontamination Control
Slide 27: Reconciliation of Proforma Gross Margin
27 $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Proforma Gross Margin $438.0 $428.8 $371.7 $404.5 $1,643.0 $401.7 $384.2 $367.1 $344.7 $1,497.6 Proforma Gross Margin -as a % of GAAP net sales 45.7% 42.4% 37.4% 42.8% 41.9% 43.5% 42.6% 41.3% 42.4% 42.5% Inventory step-up t * — —
Slide 28: Reconciliation of Proforma Operating Expenses and Tax Rate
28 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. Reconciliation of Proforma Operating Expenses and Tax Rate to Proforma Non-GAAP Operating Expenses and Non-GAAP Tax Rate $ in millions Q122 Q222 Q322
Slide 29: Reconciliation of Proforma Net Income to Adjusted EBITDA
29 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income and Adjusted EBITDA $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q32
Slide 30: Reconciliation of Proforma Operating Income and Adjusted EBITDA
30 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income Non-GAAP and Adjusted EBITDA Non-GAAP $ in millions Q122 Q222 Q322 Q422 FY
Slide 31: Reconciliation of Proforma Net Income and Diluted EPS
31 *See footnotes section for reference. As a result of displaying amounts in millions, rounding differences may exist in the tables in this section. Reconciliation of Proforma Net Income and Diluted EPS to Proforma Non-GAAP Net Income and Diluted Non-GAAP EPS $ in millions, except per share data Q1
Slide 32: Footnotes
32 a. Non-cash impairment charges associated with goodwill. b. Non-recurring deal and transaction costs associated with the CMC Materials acquisition and completed and announced divestitures. c. Represents professional and vendor fees recorded in connection with services provided by consultants, acc