Entegris, Inc. · NASDAQ:ENTG
Entegris — Q4 2020 Earnings Presentation
24 slides from Entegris's earnings presentation, Feb 2, 2021
Slide 1: Earnings Summary Fourth Quarter 2020
Earnings Summary February 2, 2021 Fourth Quarter 2020 Exhibit 99.2
Slide 2: Forward-looking statements
This presentation 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 forward-lo
Slide 3: Fourth Quarter 2020 Financial Summary
+21% 1$518M REVENUE +35%$113M OPERATING INCOME +50% $0.71 DILUTED NON-GAAP EPS 2 +220 bps21.9% 3 OPERATING MARGIN 1. All growth data on this slide is year-on-year. 2. See appendix for GAAP to Non-GAAP reconciliations. 3. As a % of net sales. 3 $0.63 DILUTED GAAP EPS +29% Fourth Quarter 2020 Financia
Slide 4: 2020 Financial Summary
+17% 1$1,859M REVENUE +65%$395M OPERATING INCOME +16% $2.54 DILUTED NON-GAAP EPS 2 +630 bps21.3% 3 OPERATING MARGIN 1. All growth data on this slide is year-on-year. 2. See appendix for GAAP to Non-GAAP reconciliations. 3. As a % of net sales. 4 $2.16 DILUTED GAAP EPS +32% 2020 Financial Summary $45
Slide 5: Summary – Consolidated Statement of Operations (GAAP)
5 $ in millions, except per share data 4Q20 4Q20 Guidance 3Q20 4Q19 4Q20 over 4Q19 4Q20 over 3Q20 Net Revenue $517.6 $480 - $495 $481.0 $427.0 21.2% 7.6% Gross Margin 44.6% 47.0% 46.3% Operating Expenses $117.6 Approximately flat vs. Q320 $119.2 $113.6 3.5% (1.3%) Operating Income $113.2 $106.8 $84.
Slide 6: Summary – Consolidated Statement of Operations (Non-GAAP)
6 $ in millions, except per share data 4Q20 4Q20 Guidance 3Q20 4Q19 4Q20 over 4Q19 4Q20 over 3Q20 Net Revenue $517.6 $480 - $495 $481.0 $427.0 21.2% 7.6% Adjusted Gross Margin – as a % of Net Sales2 44.6% 47.0% 46.3% Non-GAAP Operating Expenses3 $103.9 Approximately flat vs. Q320 $104.6 $93.2 11.5%
Slide 7: Summary – Consolidated Statement of Operations (GAAP), Full Year
7 $ in millions, except per share data Year Ended December 31, 2020 Year Ended December 31, 2019 Year-over-Year Net Revenue $1,859.3 $1,591.1 16.9% Gross Margin 45.7% 44.7% Operating Expenses $454.3 $472.4 (3.8%) Operating Income $395.4 $239.3 65.2% Operating Margin 21.3% 15.0% Tax Rate 16.7% 19.9%
Slide 8: Summary – Consolidated Statement of Operations (Non-GAAP), Full Year
8 $ in millions, except per share data Year Ended December 31, 2020 Year Ended December 31, 2019 Year-over-Year Net Revenue $1,859.3 $1,591.1 16.9% Adjusted Gross Margin – as a % of Net Sales2 45.7% 45.3% Non-GAAP Operating Expenses3 $390.2 $358.7 8.8% Adjusted Operating Income $459.0 $361.8 26.9% A
Slide 9: Specialty Chemicals and Engineered Materials (SCEM) 4Q20 Highlights
9 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. Sales growth (YOY): primarily driven by advanced deposition materials, cleaning chemistries, specialty gases, advanced coatings and a modest impact from the Sinmat acquisition. –––––– Sales growth (SEQ): primarily
Slide 10: Microcontamination Control (MC) 4Q20 Highlights
10 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. Microcontamination Control (MC) 4Q20 Highlights $ in millions 4Q20 3Q20 4Q19 4Q20 over 4Q19 4Q20 over 3Q20 Net Revenue $205.6 $193.5 $169.8 21.1% 6.2% Segment Profit $71.7 $64.9 $57.2 25.4% 10.4% Segment Profit Ma
Slide 11: Advanced Materials Handling (AMH) 4Q20 Highlights
11 1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation. Advanced Materials Handling (AMH) 4Q20 Highlights $ in millions 4Q20 3Q20 4Q19 4Q20 over 4Q19 4Q20 over 3Q20 Net Revenue $151.7 $144.4 $117.5 29.2% 5.1% Segment Profit $34.3 $33.3 $20.7 65.9% 3.2% Segment Profit M
Slide 12: Summary – Balance Sheet Items
12 $ in millions 4Q20 3Q20 4Q19 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $580.9 19.9 % $448.0 16.0 % $351.9 14.0 % Accounts Receivable, net $264.4 9.1 % $300.5 10.7 % $234.4 9.3 % Inventories $323.9 11.1 % $329.7 11.8 % $287.1 11.4 % Net PP&E $525.4 18.0 % $490.3 17
Slide 13: Summary – Cash Flow
13 $ in millions 4Q20 3Q20 4Q19 Year ended December 31, 2020 Beginning Cash Balance $448.0 $532.7 $282.7 $351.9 Cash provided by operating activities $204.0 $101.2 $128.6 $446.7 Capital expenditures ($52.2) ($32.7) ($25.9) ($131.8) Proceeds from short-term borrowings and long- term debt $— $— $— $61
Slide 14: Outlook
14 GAAP $ in millions, except per share data 1Q21 Guidance 4Q20 Actual 3Q20 Actual Net Revenue $510 - $525 $517.6 $481.0 Operating Expenses $118 - $120 $117.6 $119.2 Net Income $83 - $90 $86.6 $79.3 Diluted Earnings per Common Share $0.61 - $0.66 $0.63 $0.58 Non-GAAP $ in millions, except per share
Slide 15: Trademarks notice
Entegris®, the Entegris Rings Design®, and other product names are trademarks of Entegris, Inc. as listed on entegris.com/trademarks. All product names, logos, and company names are trademarks or registered trademarks of their respective owners. Use of them does not imply any affiliation, sponsorshi
Slide 16: Appendix
Appendix Entegris
Slide 17: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
17 Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Twelve months ended $ in thousands December 31, 2020 December 31, 2019 September 26, 2020 December 31, 2020 December 31, 2019 Net sales $517,594 $426,998 $480,987 $1,859,313 $1,591,066 Gross profit-GAAP $230,872 $197,
Slide 18: Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP
18 Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP Operating Expenses and Tax Rate Three months ended Twelve months ended $ in millions December 31, 2020 December 31, 2019 September 26, 2020 December 31, 2020 December 31, 2019 GAAP operating expenses $117.6 $113.6 $119.2 $454.3 $4
Slide 19: Adjusted segment profit reconciliation
19 $ in thousands Three months ended Twelve months ended Adjusted segment profit December 31, 2020 December 31, 2019 September 26, 2020 December 31, 2020 December 31, 2019 SCEM segment profit $29,761 $32,822 $32,600 $127,969 $98,327 Integration costs — — — (1,557) — Severance and restructuring costs
Slide 20: Reconciliation of net income to adjusted operating income and EBITDA
20 $ in thousands Three Months Ended Twelve months ended December 31, 2020 December 31, 2019 September 26, 2020 December 31, 2020 December 31, 2019 Net sales $517,594 $426,998 $480,987 $1,859,313 $1,591,066 Net income $86,624 $57,438 $79,303 $294,969 $254,860 Net income – as a % of net sales 16.7 %
Slide 21: Reconciliation of GAAP net income to non-GAAP net income
21 $ in thousands, except per share data Three months ended Twelve months ended December 31, 2020 December 31, 2019 September 26, 2020 December 31, 2020 December 31, 2019 GAAP net income $86,624 $57,438 $79,303 $294,969 $254,860 Adjustments to net income: Charge for fair value write-up of inventory
Slide 22: First-Quarter Outlook Reconciliation
22 $ in millions First-Quarter Outlook Reconciliation GAAP net income to non-GAAP net income GAAP net income $83 - $90 Adjustments to net income: Restructuring and integration costs 2 Amortization of intangible assets 12 Income tax effect (3) Non-GAAP net income $94 - $101 First-Quarter Outlook Reco
Slide 23: Quarterly sales and segment profit by segment
23 $ in thousands Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Sales SCEM $133,928 $124,470 $127,552 $127,750 $146,747 $144,214 $146,213 $150,480 $168,625 MC 158,500 157,706 150,185 155,979 169,794 159,261 183,758 193,541 205,626 AMH 115,527 116,064 107,515 117,256 117,455 116,137 126,434 144,370 15
Slide 24: Segment profit notes
24 1. In 1Q19 the Company changed its definition of segment profit to include inter-segment sales. Prior period information has been recast to reflect the change. Segment profit excludes amortization of intangibles and unallocated expenses. 2. Adjusted segment profit for SCEM for 1Q19, 3Q19, 4Q19, 1