Entegris, Inc. · NASDAQ:ENTG

Entegris — Q4 2018 Earnings Presentation

22 slides from Entegris's earnings presentation, Feb 5, 2019

  1. Slide 1: Earnings Summary Fourth Quarter 2018

    EXHIBIT 99.2 Earnings Summary Fourth Quarter 2018 February 5, 2019

  2. 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

  3. Slide 3: Legal Disclosures

    LEGAL DISCLOSURES Additional Information about the Merger and Where to Find It This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business com

  4. Slide 4: 4Q18 and FY2018 Highlights

    4Q18 AND FY2018 HIGHLIGHTS ◦ Fourth-quarter revenue of $402 million grew 15 percent from prior year ◦ Fourth-quarter GAAP EPS of $0.57; Non-GAAP EPS of $0.47 increased 12% from a year ago ◦ Fiscal 2018 revenue of $1.6 billion increased 15 percent ◦ Fiscal 2018 GAAP EPS of $1.69; Non-GAAP EPS of $1.8

  5. Slide 5: Summary – Consolidated Statement of Operations (GAAP)

    SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) 4Q18 over 4Q18 over $ in millions, except per share data 4Q18 4Q18 Guidance 3Q18 4Q17 4Q17 3Q18 Net Revenue $401.6 $380 to $400 $398.6 $350.6 14.6% 0.8% Gross Margin 44.8% 45.6% 46.7% Operating Expenses $108.4 $111 to $114 $113.7 $92.5 17.2% (4.7

  6. Slide 6: Summary – Consolidated Statement of Operations (Non-GAAP)

    SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)1 4Q18 over 4Q18 over $ in millions, except per share data Q418 4Q18 Guidance 3Q18 4Q17 4Q17 3Q18 Net Revenue $401.6 $380 to $400 $398.6 $350.6 14.6% 0.8% Adjusted Gross Margin2 45.7% 46.4% 46.7% Non-GAAP Operating Expenses3 $90.1 $90 to $93 $

  7. Slide 7: Summary – Consolidated Statement of Operations (GAAP) Fiscal Year

    SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) Fiscal Year Fiscal Year Ended Ended December 31, December 31, $ in millions, except per share data 2018 2017 Year-over-Year Net Revenue $1,550.5 $1,342.5 15.5% Gross Margin 46.4% 45.4% Operating Expenses $427.1 $367.2 16.3% Operating Income $292.

  8. Slide 8: Summary – Consolidated Statement of Operations (Non-GAAP) – Year to Date

    SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)1 – YEAR TO DATE Fiscal Year Ended Fiscal Year Ended $ in millions, except per share data December 31, 2018 December 31, 2017 Year-over-Year Net Revenue $1,550.5 $1,342.5 15.5% Adjusted Gross Margin2 46.9% 45.8% Non-GAAP Operating Expenses3 $3

  9. Slide 9: Earnings Per Share

    (LOSS) EARNINGS PER SHARE1 EPS: 4Q18 vs. 4Q17 FY2018 vs. FY2017 $2.00 $1.89 $0.70 $1.80 $1.69 $0.60 $0.57 $1.60 $1.44 $0.50 $0.47 $1.40 $0.42 $0.40 $1.20 $0.30 $1.00 $0.20 $0.80 $0.59 $0.10 $0.60 $0.00 $0.40 4Q17 4Q18 -$0.10 $0.20 -$0.20 $0.00 -$0.20 FY17 FY18 -$0.30 GAAP Non-GAAP GAAP Non-GAAP 1. R

  10. Slide 10: Results by Segment

    RESULTS BY SEGMENT1 Specialty Chemicals and Microcontamination Advanced Materials Engineered Materials Control Segment2 Handling Segment3 Segment $ in millions 40% $120 40% $120 40% $120 $100 $100 $100 30% 30% 30% $80 $80 $80 $60 20% $60 20% $60 20% $40 $40 $40 10% 10% 10% $20 $20 $20 $0 0% $0 0% 4Q

  11. Slide 11: Revenue by Geography: Strong Growth in South Korea and China

    REVENUE BY GEOGRAPHY: STRONG GROWTH IN SOUTH KOREA AND CHINA FY2018 Revenue by Geography FY2018 vs. FY2017 Growth Rate Revenue = $ million Taiwan 0% Taiwan N. America 21% N. America $289.9M $347.0M South Korea 12% Southeast Japan 24% Asia $118.0M $138.0M Europe China 37% $242.4M Europe 15% $210.8M J

  12. Slide 12: Summary – Balance Sheet Items

    SUMMARY – BALANCE SHEET ITEMS $ in millions 4Q18 3Q18 4Q17 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $482.1 20.8% $294.9 14.0% $625.4 31.6% Accounts Receivable, net $222.1 9.6% $212.7 10.1% $183.4 9.3% Inventories $268.1 11.6% $264.1 12.6% $198.1 10.0% Net PP&E $419.

  13. Slide 13: Adjusted EBITDA Margin

    ADJUSTED EBITDA MARGIN1 Adjusted Annual EBITDA Adjusted EBITDA and EBITDA Margin 28.1% 26.6% 28.9% 28.5% 27.7% 27.7% 27.5% 350 $436 $109 $110 $110 $357 $106 300 $97 80 250 200 150 40 100 50 0 0 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Adj. EBITDA in $M Adj. EBITDA as % of Sales Adj. EBITDA in $M Adj. EBIT

  14. Slide 14: Cash Flows

    CASH FLOWS $ in millions 4Q18 3Q18 4Q17 Beginning Cash Balance $294.9 $257.1 $435.2 Cash from operating activities $91.3 $84.1 $85.7 Capital expenditures ($34.8) ($27.9) ($25.7) Proceeds from long-term debt $400.0 - 550.0 Payments on long-term debt ($108.9) - ($385.0) Payments for debt extinguishmen

  15. Slide 15: Outlook (1Q19)

    OUTLOOK (1Q19) • For the first quarter ending March 30, 2019, the Company expects sales will be approximately at the same level as the fourth quarter of 2018. • The Company expects GAAP EPS will be approximately on the same level as the fourth quarter of 2018, excluding the one-time tax benefit (whi

  16. Slide 16: Trademarks

    Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 16

  17. Slide 17: 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 Twelve months ended December 31, December 31, September 29, December 31, December 31, 2018 2017 2018 2017 2018 Net Sales $401,642 $350,562 $398,597 $1,550,497 $1,342,532 Gross p

  18. Slide 18: 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 Twelve months ended Segment profit-GAAP December 31, 2018 December 31, 2017 September 29, 2018 December 31, 2018 December 31, 2017 Specialty Chemicals and Engineered Mat

  19. Slide 19: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA Three months ended Twelve months ended $ in thousands December 31, 2018 December 31, 2017 September 29, 2018 December 31, 2018 December 31, 2017 Net sales $401,642 $350,562 $398,597 $1,550,497 $1,34

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Earnings (Loss) Per Share

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS (LOSS) PER SHARE Three months ended Twelve months ended December 31, September 29, $ in thousands, except per share data December 31, 2018 2017 2018 December 31, 2018 December 31, 2017 GAAP net income (loss) $80,784 ($28,341)

  21. Slide 21: GAAP Segment Trend Data

    GAAP SEGMENT TREND DATA $ in thousands Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Sales SCEM $ 101,107 $ 111,782 $ 104,494 $ 110,945 $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,637

  22. Slide 22: Non-GAAP Segment Trend Data

    NON-GAAP SEGMENT TREND DATA Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Sales$ in thousands SCEM $ 101,107 $ 111,782 $ 104,494 $ 110,945 $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,

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