Entegris, Inc. · NASDAQ:ENTG
Entegris — Q1 2018 Earnings Presentation
17 slides from Entegris's earnings presentation, Apr 26, 2018
Slide 1: Earnings Summary First Quarter 2018
APRIL 26, 2018 Earnings Summary First Quarter 2018 R 2.5 EXHIBIT 99.2
Slide 2: Safe Harbor
2 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
Slide 3: 1Q18 Highlights
3 1Q18 HIGHLIGHTS ◦ 1Q18 sales of $367 million grew 16% from same quarter a year ago and 5% from 4Q17, outpacing Entegris’ markets ◦ Growth was across all divisions: ◦ Specialty Chemicals and Engineered Materials sales grew 14% from prior year and 4% sequentially ◦ Microcontamination Control sales g
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
$ in millions, except per share data 1Q18 1Q18 Guidance 4Q17 1Q17 1Q18 over 1Q17 1Q18 over 4Q17 Net Revenue $367.2 $355 to $365 $350.6 $317.4 15.7% 4.7% Gross Margin 47.9% 46.7% 44.0% Operating Expenses $97.5 $94 to $96 $92.5 $88.7 9.9% 5.4% Operating Income $78.5 $71.2 $50.9 54.2% 10.3% Operating M
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
$ in millions, except per share data 1Q18 1Q18 Guidance 4Q17 1Q17 1Q18 over 1Q17 1Q18 over 4Q17 Net Revenue $367.2 $355 to $365 $350.6 $317.4 15.7% 4.7% Adjusted Gross Margin 47.9% 46.7% 44.0% Non-GAAP Operating Expenses2 $85.9 $83 to $85 $81.5 $77.7 10.6% 5.4% Adjusted Operating Income $90.1 $82.2
Slide 6: Earnings (Loss) Per Share
6 1. Represents diluted earnings (loss) per share. See Reconciliation of GAAP Net Income to Non-GAAP Earnings per Share in the appendix of this presentation. EARNINGS (LOSS) PER SHARE1 $0.23 $0.40 $0.28 $0.47 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 1Q17 1Q18 EPS: 1Q18 vs. 1
Slide 7: Results by Segment
RESULTS BY SEGMENT1 7 1. Adjusted segment operating margin excludes amortization of intangibles and unallocated expenses. Corporate cost related to HR, Finance, and IT are charged back to the Segments starting 1Q18. Prior quarter results are adjusted retrospectively using consistent allocation metho
Slide 8: Revenue by Geography: Strong Growth in N. America, Korea, Japan, and China
REVENUE BY GEOGRAPHY: STRONG GROWTH IN N. AMERICA, KOREA, JAPAN, AND CHINA 8 N. America Europe Japan China South Korea Southeast Asia Taiwan 1Q18 Revenue by Geography Revenue = $367.2 million $51.5M $32.9M -8% 6% 39% 45% 33% 31% -17% Southeast Asia Europe China Japan South Korea N. America Taiwan -2
Slide 9: Summary – Balance Sheet Items
$ in millions 1Q18 4Q17 1Q17 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $550.2 28.1% $625.4 31.6% $391.2 23.1% Accounts Receivable, net $195.3 10.0% $183.4 9.3% $176.0 10.4% Inventories $214.1 10.9% $198.1 10.0% $188.3 11.1% Net PP&E $364.3 18.6% $359.5 18.2% $330.9 1
Slide 10: Adjusted EBITDA Margin
10 1. See Reconciliation of GAAP Income to Adjusted Operating Income and Adjusted EBITDA in the appendix of this presentation. ADJUSTED EBITDA MARGIN1 $357 $387 26.6% 27.8% 0 50 100 150 200 250 300 350 400 TTM-4Q17 TTM-1Q18 Adjusted TTM EBITDA Adj. EBITDA in $M Adj. EBITDA as % of Sales $76 $88 $96
Slide 11: Cash Flows
$ in millions 1Q18 4Q17 1Q17 Beginning Cash Balance $625.4 $435.2 $406.4 Cash from operating activities $38.8 $85.7 $33.4 Capital expenditures ($21.0) ($25.7) ($22.2) Acquisition of business ($37.7) - - Proceeds from long-term debt - 550.0 - Payments on long-term debt ($25.0) ($385.0) ($25.0) Paymen
Slide 12: Outlook
OUTLOOK 12 1. Non-GAAP operating expenses exclude amortization. In 2Q18, amortization is estimated to be approximately $12 million, or $0.06 per share. $ in millions, except per share data 2Q18 Guidance 1Q18 Actual 2Q17 Actual Net Revenue $370 to $385 $367.2 $329.0 Operating Expenses $101 to $104 $9
Slide 13: Trademark notice
Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 13
Slide 14: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA 14 Three months ended March 31, 2018 December 31, 2017 April 1, 2017 Net sales $367,199 $350,562 $317,377 Net income (loss) $57,562 ($28,341) $32,514 Adjustments to net income (loss): Income tax exp
Slide 15: Reconciliation of GAAP to Non-GAAP Earnings (Loss) Per Share
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS (LOSS) PER SHARE 15 Three months ended March 31, 2018 December 31, 2017 April 1, 2017 GAAP net income (loss) $57,562 ($28,341) $32,514 Adjustments to net income (loss): Loss on debt extinguishment - 20,687 - Amortization of in
Slide 16: GAAP Segment Trend Data
16 GAAP SEGMENT TREND DATA Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Sales SCEM 101,107$ 111,782$ 104,494$ 110,945$ 114,435$ 121,174$ 124,522$ 125,339$ 130,743$ MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,637 AMH 88,298 99,686 97,460 98,840 102,887 103,421 104,956 109,573 1
Slide 17: Non-GAAP Segment Trend Data
NON-GAAP SEGMENT TREND DATA 17 1. Segment profit excludes amortization of intangibles and unallocated expenses. Corporate cost related to HR, Finance, and IT are charged back to the Segments starting 1Q18. Prior quarter results are adjusted retrospectively using consistent allocation method. 2. Adju