Entegris, Inc. · NASDAQ:ENTG
Entegris — Q1 2019 Earnings Presentation
18 slides from Entegris's earnings presentation, Apr 25, 2019
Slide 1: Earnings Summary First Quarter 2019
Exhibit 99.2 Earnings Summary First Quarter 2019 April 25, 2019
Slide 2: Safe Harbor
SAFE HARBOR This document 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 negat
Slide 3: 1Q19 Highlights
1Q19 HIGHLIGHTS ◦ First-quarter revenue of $391.0 million, grew 6% from prior year ◦ GAAP diluted EPS of $0.24 ◦ Non-GAAP diluted EPS of $0.50, increased 6% from prior year ◦ Acquired Digital Specialty Chemicals in March ◦ Fourth-quarter and through the end of January 2019 repurchased a total of 6.6
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) 1Q19 over 1Q19 over $ in millions, except per share data 1Q19 1Q19 Guidance 4Q18 1Q18 1Q18 4Q18 Approx. at same Net Revenue $391.0 $401.6 $367.2 6.5% (2.6%) level as Q4 Gross Margin 45.4% 44.8% 47.9% Operating Expenses $129.9 $108.4 $97.5 33.2% 1
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)1 1Q19 over 1Q19 over $ in millions, except per share data 1Q19 1Q19 Guidance 4Q18 1Q18 1Q18 4Q18 Approx. at same Net Revenue $391.0 $401.6 $367.2 6.5% (2.6%) level as Q4 Adjusted Gross Margin2 46.0% 45.7% 47.9% Non-GAAP Operating Expenses3 $8
Slide 6: Results by Segment
RESULTS BY SEGMENT1 Specialty Chemicals and Microcontamination Advanced Materials Engineered Materials Control Segment3 Handling Segment4 Segment2 $ in millions $160 40% $160 40% $160 40% $140 $140 $140 $120 30% $120 30% $120 30% $100 $100 $100 $80 20% $80 20% $80 20% $60 $60 $60 $40 10% $40 10% $40
Slide 7: Revenue by Geography: Strong Growth in Taiwan and China
REVENUE BY GEOGRAPHY: STRONG GROWTH IN TAIWAN AND CHINA 1Q19 Revenue by Geography 1Q19 vs. 1Q18 Growth Rate Revenue = $ million Taiwan 26% Taiwan N. America 6% N. America $81.8M $91.7 South Korea -3% Japan -7% Southeast $27.0M Asia $35.1M Europe China 14% $61.1M Europe 7% $48.2M Japan Southeast Asia
Slide 8: Summary – Balance Sheet Items
SUMMARY – BALANCE SHEET ITEMS $ in millions 1Q19 4Q18 1Q18 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $342.4 14.8% $482.1 20.8% $550.2 28.1% Accounts Receivable, net $232.1 10.0% $222.1 9.6% $195.3 10.0% Inventories $271.5 11.7% $268.1 11.6% $214.1 10.9% Net PP&E $442
Slide 9: Adjusted EBITDA Margin
ADJUSTED EBITDA MARGIN1 Adjusted TTM EBITDA Adjusted EBITDA and EBITDA Margin 28.1% 27.9% 28.9% 28.5% 27.7% 27.5% 27.8% 400 $109 $110 $110 $106 $109 350 $436 $439 300 80 250 200 150 40 100 50 0 0 TTM-4Q18 TTM-1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Adj. EBITDA in $M Adj. EBITDA as % of Sales Adj. EBITDA in $M
Slide 10: Cash Flows
CASH FLOWS $ in millions 1Q19 4Q18 1Q18 Beginning Cash Balance $482.1 $294.9 $625.4 Cash (used in) provided by operating activities ($2.5) $91.3 $38.8 Capital expenditures ($34.5) ($34.8) ($21.0) Acquisition of business ($49.8) - ($37.7) Proceeds from long-term debt - $400.0 - Payments on long-term
Slide 11: Outlook
OUTLOOK GAAP $ in millions, except per share data 2Q19 Guidance 1Q19 Actual 2Q18 Actual Net Revenue $375 to $390 $391.0 $383.1 Operating Expenses $126 to $128 $129.9 $107.4 Net Income $137 to $144 $32.7 $54.3 Earnings (Per Diluted Share) $1.00 to $1.05 $0.24 $0.38 Non-GAAP $ in millions, except per
Slide 12: Trademarks
Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 12
Slide 13: 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 March 30, 2019 March 31, 2018 December 31, 2018 Net Sales $391,047 $367,199 $401,642 Gross profit-GAAP $177,393 $175,997 $179,740 Adjustments to gross profit: Charge for fair va
Slide 14: Reconciliation of GAAP Segment Profit to Adjusted Operating Income
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP SEGMENT PROFIT TO ADJUSTED OPERATING INCOME Three months ended $ in thousands 1 Segment profit-GAAP March 30, 2019 March 31, 2018 December 31, 2018 Specialty Chemicals and Engineered Materials $24,431 $30,912 $28,221 Microcontamination Control 47,
Slide 15: 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 March 30, 2019 March 31, 2018 December 31, 2018 Net sales $391,047 $367,199 $401,642 Net income $32,658 $57,562 $80,784 Adjustments to net income: Income tax expens
Slide 16: Reconciliation of GAAP to Non-GAAP Earnings Per Share
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS (LOSS) PER SHARE Three months ended March 30 2019 March 31, 2018 December 31, 2018 $ in thousands, except per share data GAAP net income $32,658 $57,562 $80,784 Adjustments to net income: Severance related to organizational re
Slide 17: GAAP Segment Trend Data
GAAP SEGMENT TREND DATA1 $ in thousands Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Sales SCEM $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 MC 100,195 104,587 116,229 115,801 118,923 124,937 151,478 158,500 157,706 AMH 108,371 109,658 111,278 115,436 124
Slide 18: Non-GAAP Segment Trend Data
NON-GAAP SEGMENT TREND DATA1 $ in thousands Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Sales SCEM $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 MC 100,195 104,587 116,229 115,801 118,923 124,937 151,478 158,500 157,706 AMH 108,371 109,658 111,278 115,436