Entegris, Inc. · NASDAQ:ENTG
Entegris — Q1 2020 Earnings Presentation
21 slides from Entegris's earnings presentation, Apr 21, 2020
Slide 1: Earnings Summary First Quarter 2020
Exhibit 99.2 Earnings Summary First Quarter 2020 April 21, 2020
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar
Slide 3: First Quarter 2020 Financial Summary
First Quarter 2020 Financial Summary 1 $0.45 +88% $412MM +5% GAAP EPS REVENUE $0.55 +10% NON-GAAP EPS 4 $120MM +10% $212MM +44% 3 ADJUSTED EBITDA2 TTM FREE CASH FLOW 1. All growth data on this slide is year-on-year. 2. See appendix for EBITDA reconciliations. 3. Free cash flow equals cash from opera
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations (GAAP) 1Q20 over 1Q20 over $ in millions, except per share data 1Q20 1Q20 Guidance 4Q19 1Q19 1Q19 4Q19 Net Revenue $412.3 $415 - $430 $427.0 $391.0 5.4% (3.4)% Gross Margin 45.0% 46.3% 45.4% Operating Expenses $104.7 $111 - $113 $113.6 $129.9 (19.4)% (7
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations (Non-GAAP) 1 1Q20 over 1Q20 over $ in millions, except per share data 1Q20 1Q20 Guidance 4Q19 1Q19 1Q19 4Q19 Net Revenue $412.3 $415 - $430 $427.0 $391.0 5.4% (3.4)% Adjusted Gross Margin2 45.1% 46.3% 46.0% Non-GAAP Operating Expenses3 $86.2 $96 - $98 $
Slide 6: Specialty Chemicals and Engineered Materials Segment (SCEM)
Specialty Chemicals and Engineered Materials Segment (SCEM) 1 1Q20 Highlights 1Q20 over 1Q20 over 1Q20 SCEM Highlights $ in millions 1Q20 4Q19 1Q19 1Q19 4Q19 • Sales growth (YOY): primarily driven by Net Revenue $144.2 $146.7 $124.5 15.8% (1.7)% advanced deposition materials, cleaning chemistries, a
Slide 7: Microcontamination Control (MC)
Microcontamination Control (MC)1 1Q20 Highlights 1Q20 over 1Q20 over 1Q20 MC Highlights $ in millions 1Q20 4Q19 1Q19 1Q19 4Q19 • Sales growth (YOY): growth in liquid filtration, Net Revenue $159.3 $169.8 $157.7 1.0% (6.2)% gas filtration and the impact of the Anow acquisition; more than offset decli
Slide 8: Advanced Materials Handling (AMH)
Advanced Materials Handling (AMH) 1 1Q20 Highlights 1Q20 over 1Q20 over 1Q20 AMH Highlights $ in millions 1Q20 4Q19 1Q19 1Q19 4Q19 • Sales decline (SEQ): primarily driven by wafer Net Revenue $116.1 $117.5 $116.1 —% (1.2)% reticle handling and sensing products. • Adj. Profit Margin increase (SEQ): d
Slide 9: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 1Q20 4Q19 1Q19 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $335.1 12.9% $351.9 14.0% $342.4 14.8% Accounts Receivable, net $277.8 10.7% $234.4 9.3% $232.1 10.0% Inventories $300.7 11.6% $287.1 11.4% $271.5 11.7% Net PP&E $474
Slide 10: Cash Flows
Cash Flows $ in millions 1Q20 4Q19 1Q19 Beginning Cash Balance $351.9 $282.7 $482.1 Cash provided by operating activities $11.4 $128.6 ($2.5) Capital expenditures ($22.6) ($25.9) ($34.5) Proceeds from short-term borrowings and long-term debt $217.0 — — Payments on long-term debt ($75.0) ($2.0) ($1.0
Slide 11: Outlook
Outlook GAAP $ in millions, except per share data 2Q20 Guidance 1Q20 Actual 1Q19 Actual Net Revenue $410 - $430 $412.3 $391.0 Operating Expenses $102 - $104 $104.7 $129.9 Net Income $50 - $59 $61.0 $32.7 Earnings (Per Diluted Share) $0.37 - $0.43 $0.45 $0.24 Non-GAAP $ in millions, except per share
Slide 12: Liquidity and Capital Structure (as of 3/28/2020)
Liquidity and Capital Structure (as of 3/28/2020) $ millions Liquidity U.S. Cash $134 Foreign Cash $201 Total Cash $335 Undrawn Revolving Credit Facility $158 Total Liquidity $493 Debt Structure Covenants Senior Secured Term Loan (due 2025) $396 No maintenance covenants Senior Unsecured Notes (due 2
Slide 13: Trademarks
Entegris®, the Entegris Rings Design-™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved.
Slide 14: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
Non-GAAP Reconciliation Table Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended (In thousands) March 28, 2020 March 30, 2019 December 31, 2019 Net sales $ 412,327 $ 391,047 $ 426,998 Gross profit-GAAP $ 185,478 $ 177,393 $ 197,636 Adjustments to gross profit: Severance
Slide 15: Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP OPERATING EXPENSES AND TAX RATE TO NON-GAAP OPERATING EXPENSES AND TAX RATE Three months ended (In millions) March 28, 2020 March 30, 2019 December 31, 2019 GAAP operating expenses $ 104.7 $ 129.9 $ 113.6 Adjustments to operating expenses: Deal an
Slide 16: 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 Segment profit-GAAP March 28, 2020 March 30, 2019 December 31, 2019 Specialty Chemicals and Engineered Materials (SCEM) $ 32,670 $ 24,431 $ 32,822 Microcontamination Con
Slide 17: Reconciliation of GAAP Net Income to Adjusted Operating Income and EBITDA
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP NET INCOME TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA Three months ended (In thousands) March 28, 2020 March 30, 2019 December 31, 2019 Net sales $ 412,327 $ 391,047 $ 426,998 Net income $ 61,006 $ 32,658 $ 57,438 Adjustments to net income:
Slide 18: Reconciliation of GAAP Net Income and EPS to Non-GAAP
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP NET INCOME AND EARNINGS PER SHARE TO NON-GAAP NET INCOME AND EARNINGS PER SHARE Three months ended (In thousands, except per share data) March 28, 2020 March 30, 2019 December 31, 2019 GAAP net income $ 61,006 $ 32,658 $ 57,438 Adjustments to net
Slide 19: Reconciliation of GAAP Outlook to Non-GAAP Outlook
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP OUTLOOK TO NON-GAAP OUTLOOK (In millions) Second-Quarter Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses June 27, 2020 GAAP operating expenses $102 - $104 Adjustments to net income: Restructuring and integration costs
Slide 20: GAAP Segment Trend Data
GAAP Segment Trend Data 1 (In thousands) Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Sales SCEM $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 $ 127,552 $ 127,750 $ 146,747 $ 144,214 MC 118,923 124,937 151,478 158,500 157,706 150,185 155,979 169,794 159,261 AMH 124,078 130,572 123,227 115,527 11
Slide 21: Non-GAAP Segment Trend Data
NON-GAAP Segment Trend Data1 (In thousands) Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Sales SCEM $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 $ 127,552 $ 127,750 $ 146,747 $ 144,214 MC 118,923 124,937 151,478 158,500 157,706 150,185 155,979 169,794 159,261 AMH 124,078 130,572 123,227 115,527