Entegris Reports Results for Third Quarter Of 2022

  • Third-quarter revenue (as reported) of $994 million, increased 71% from prior year
  • Third-quarter revenue (proforma), increased 14%
  • Third-quarter GAAP diluted EPS of ($0.50)
  • Third-quarter non-GAAP diluted EPS of $0.85

Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s third quarter ended October 1, 2022. Third-quarter sales were $993.8 million, an increase of 71% from the same quarter last year. Third-quarter GAAP net loss was $73.7 million, or $0.50 loss per diluted share, which included $65.3 million of amortization of intangible assets, $20.8 million of integration costs, $31.9 million of deal and transaction costs, $58.4 million contractual and non-cash integration costs and $2.4 million interest expense, net. Non-GAAP net income was $127.8 million for the third quarter and non-GAAP earnings per diluted share was $0.85. All the results presented herein are shown on a “as reported” basis and not on a “proforma” basis, and as a result do not include CMC Materials’ results in prior periods.

Bertrand Loy, Entegris’ president and chief executive officer, said: “Our execution was solid in the third quarter, and we are pleased with our proforma 18 percent year-to-date top line growth, especially in light of the growing economic uncertainty and unfavorable impact of foreign currencies. During the quarter, we continued to benefit from strong demand for our advanced solutions, which are of growing importance to our customers’ leading-edge technology roadmaps and new facility investments.”

Mr. Loy added: “We are also pleased with our steady progress on the CMC Materials integration. As a part of our assessment of the various parts of the CMC portfolio, we recently announced that we entered into a definitive agreement for Infineum to acquire the Pipeline and Industrial Materials business. Going forward, our focus will be on driving revenue and cost synergies, and continuing to pay down the debt.”

Mr. Loy added: “For the full year 2022, despite softening in the semiconductor market and the impact of the new U.S. government export restrictions, we expect to achieve strong growth, well in excess of the market. Looking ahead, our differentiated unit-driven model and experienced team will be key as we navigate the uncertain environment.”

Quarterly Financial Results Summary

(in thousands, except percentages and per share data)

GAAP Results

October 1, 2022

October 2, 2021

July 2, 2022

Net sales

$993,828

$579,493

$692,489

Operating income

$14,889

$139,357

$157,970

Operating margin - as a % of net sales

1.5%

24.0%

22.8%

Net (loss) income

($73,703)

$117,461

$99,491

Diluted (loss) earnings per common share

($0.50)

$0.86

$0.73

Non-GAAP Results

Non-GAAP adjusted operating income

$253,207

$152,696

$183,039

Non-GAAP adjusted operating margin - as a % of net sales

25.5%

26.3%

26.4%

Non-GAAP net income

$127,770

$125,383

$136,816

Diluted non-GAAP earnings per common share

$0.85

$0.92

$1.00

Fourth-Quarter Outlook

For the fourth quarter ending December 31, 2022, the Company expects sales of $930 million to $970 million, net income of $42 million to $50 million and diluted earnings per common share between $0.28 and $0.33. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.75 to $0.80, reflecting net income on a non-GAAP basis in the range of $112 million to $120 million. The company also expects EBITDA of approximately 29% of sales, for the fourth quarter of 2022. We estimate that the impact of the U.S. government’s announced new export controls restricting the sale of semiconductor technology to certain companies in China will reduce sales by approximately $40 million to $50 million in the fourth quarter of 2022 (reflected in the guidance above).

Segment Results

In connection with the completion of the CMC Materials acquisition, the company now operates in four segments (which include the new APS division):

Specialty Chemicals and Engineered Materials (SCEM): SCEM provides advanced materials enabling complex chip designs and improved device electrical performance; including high-performance and high-purity process chemistries, gases and materials and safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes.

Microcontamination Control (MC): MC offers advanced filtration solutions that improve customers’ yield, device reliability and cost; by filtering and purifying critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

Advanced Materials Handling (AMH): AMH develops solutions that improve customers’ yields by protecting critical materials during manufacturing, transportation, and storage; including products that monitor, protect, transport and deliver critical liquid chemistries, wafers, and other substrates for a broad set of applications in the semiconductor, life sciences and other high-technology industries.

Advanced Planarization Solutions (APS): APS develops an end-to-end chemical mechanical planarization (CMP) solution and applications expertise delivered through advanced materials and high purity chemicals; including CMP slurries, pads, formulated cleans and other electronic chemicals used in the semiconductor manufacturing processes.

Third-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the third quarter on Wednesday, November 2, 2022, at 9:00 a.m. Eastern Time. Participants should dial 888-882-4478 or +1 323-794-2591, referencing confirmation code 8055261. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. The call can also be accessed live and on-demand from the Investor Relations section of www.entegris.com.

Management’s slide presentation concerning the results for the third quarter will be posted on the Investor Relations section of www.entegris.com Wednesday morning before the call.

About Entegris

Entegris is a world-class supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 10,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan. Additional information can be found at www.entegris.com.

Non-GAAP Information

The Company’s condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA, adjusted gross profit, adjusted segment profit, adjusted operating income, non-GAAP net income, non-GAAP adjusted operating margin and diluted non-GAAP earnings per common share, together with related measures thereof, are considered “non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company provides supplemental non-GAAP financial measures to better understand and manage its business and believes these measures provide investors and analysts additional and meaningful information for the assessment of the Company’s ongoing results. Management also uses these non-GAAP measures to assist in the evaluation of the performance of its business segments and to make operating decisions. Management believes that the Company’s non-GAAP measures help indicate the Company’s baseline performance before certain gains, losses or other charges that may not be indicative of the Company’s business or future outlook, and that non-GAAP measures offer a more consistent view of business performance. The Company believes the non-GAAP measures aid investors’ overall understanding of the Company’s results by providing a higher degree of transparency for such items and providing a level of disclosure that will help investors generally understand how management plans, measures and evaluates the Company’s business performance. Management believes that the inclusion of non-GAAP measures provides greater consistency in its financial reporting and facilitates investors’ understanding of the Company’s historical operating trends by providing an additional basis for comparisons to prior periods. The reconciliations of GAAP gross profit to adjusted gross profit, GAAP segment profit to adjusted operating income, GAAP net income to adjusted operating income and adjusted EBITDA, GAAP net income and diluted earnings per common share to non-GAAP net income and diluted non-GAAP earnings per common share and GAAP outlook to non-GAAP outlook are included elsewhere in this release.

Cautionary Note on Forward Looking Statements

This news release 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 looking statements may include statements about the ongoing impacts of the COVID-19 pandemic and the conflict in Ukraine on the Company’s operations and markets, including supply chain issues and inflationary pressures related thereto; future period guidance or projections; the Company’s performance relative to its markets, including the drivers of such performance; market and technology trends, including the duration and drivers of any growth trends and the impact of the COVID-19 pandemic on such trends; the development of new products and the success of their introductions; the focus of the Company’s engineering, research and development projects; the Company’s ability to execute on our business strategies, including with respect to Company’s expansion of its manufacturing presence in Taiwan; the Company’s capital allocation strategy, which may be modified at any time for any reason, including share repurchases, dividends, debt repayments and potential acquisitions; the impact of the acquisitions the Company has made and commercial partnerships the Company has established, including the acquisition of CMC Materials, Inc. (“CMC Materials”); trends relating to the fluctuation of currency exchange rates; future capital and other expenditures, including estimates thereof; the Company’s expected tax rate; the impact, financial or otherwise, of any organizational changes; the impact of accounting pronouncements; quantitative and qualitative disclosures about market risk; and other matters. These forward looking statements are based on current management expectations and assumptions only as of the date of this Quarterly Report, are not guarantees of future performance and involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward looking statements. These risks and uncertainties include, but are not limited to, weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company’s products and solutions; the level of, and obligations associated with, the Company’s indebtedness, including the debts incurred in connection with the acquisition of CMC Materials; risks related to the acquisition and integration of CMC Materials, including unanticipated difficulties or expenditures relating thereto; the ability to achieve the anticipated synergies and value-creation contemplated by the acquisition of CMC Materials and the diversion of management time on transaction-related matters; risks related to the COVID-19 pandemic on the global economy and financial markets, as well as on the Company, its customers and suppliers, which may impact its sales, gross margin, customer demand and its ability to supply its products to its customers; raw material shortages, supply and labor constraints and price increases, pricing and inflationary pressures and rising interest rates; operational, political and legal risks of the Company’s international operations; the Company’s dependence on sole source and limited source suppliers; the Company’s ability to meet rapid demand shifts; the Company’s ability to continue technological innovation and introduce new products to meet customers’ rapidly changing requirements; substantial competition; the Company’s concentrated customer base; the Company’s ability to identify, complete and integrate acquisitions, joint ventures or other transactions; the Company’s ability to effectively implement any organizational changes; the Company’s ability to protect and enforce intellectual property rights; the ongoing conflict in Ukraine and the global response thereto; the increasing complexity of certain manufacturing processes; changes in government regulations of the countries in which the Company operates, including the imposition of tariffs, export controls and other trade laws and restrictions and changes to national security and international trade policy, especially as they relate to China; fluctuation of currency exchange rates; fluctuations in the market price of the Company’s stock; and other risk factors and additional information described in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including under the heading “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed on February 4, 2022, and in the Company’s other SEC filings. Except as required under the federal securities laws and the rules and regulations of the SEC, the Company undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates.

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

 

 

October 1, 2022

October 2, 2021

July 2, 2022

Net sales

$993,828

$579,493

$692,489

Cost of sales

622,157

315,289

382,092

 

Gross profit

371,671

264,204

310,397

Selling, general and administrative expenses

226,446

71,032

90,685

Engineering, research and development expenses

64,990

41,972

49,248

Amortization of intangible assets

65,346

11,843

12,494

 

Operating income

14,889

139,357

157,970

Interest expense, net

82,755

9,339

31,343

Other expense, net

12,852

1,917

9,619

 

(Loss) Income before income tax expense

(80,718)

128,101

117,008

Income tax (benefit) expense

(7,015)

10,640

17,517

 

Net (loss) income

$(73,703)

$117,461

$99,491

 

 

 

 

 

 

 

 

Basic (loss) earnings per common share:

$(0.50)

$0.87

$0.73

Diluted (loss) earnings per common share:

$(0.50)

$0.86

$0.73

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

Basic

148,570

135,583

135,895

 

Diluted

148,570

136,631

136,454

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Nine months ended

 

 

October 1, 2022

October 2, 2021

Net sales

$2,335,963

$1,663,689

Cost of sales

1,344,075

899,115

 

Gross profit

991,888

764,574

Selling, general and administrative expenses

404,239

215,042

Engineering, research and development expenses

160,953

121,692

Amortization of intangible assets

90,491

35,616

 

Operating income

336,205

392,224

Interest expense, net

126,962

31,563

Other expense, net

27,373

29,807

 

Income before income tax expense

181,870

330,854

Income tax expense

30,377

39,947

 

Net income

$151,493

$290,907

 

 

 

 

 

 

Basic earnings per common share:

$1.08

$2.15

Diluted earnings per common share:

$1.08

$2.13

 

 

 

 

Weighted average shares outstanding:

 

 

 

Basic

140,045

135,383

 

Diluted

140,892

136,556

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

October 1, 2022

December 31, 2021

ASSETS

 

 

Current assets:

 

 

Cash, cash equivalents and restricted cash

$754,667

$402,565

Trade accounts and notes receivable, net

519,793

347,413

Inventories, net

823,637

475,213

Deferred tax charges and refundable income taxes

22,024

35,312

Other current assets

102,155

52,867

Total current assets

2,222,276

1,313,370

Property, plant and equipment, net

1,383,693

654,098

Other assets:

 

 

Right-of-use assets

95,397

66,563

Goodwill

4,405,292

793,702

Intangible assets, net

1,969,729

335,113

Deferred tax assets and other noncurrent tax assets

18,637

17,671

Other

38,380

11,379

Total assets

$10,133,404

$3,191,896

LIABILITIES AND EQUITY

 

Current liabilities

 

 

Short-term debt, including current portion of long-term debt

$219,787

$—

Accounts payable

187,697

130,734

Accrued liabilities

390,706

199,131

Income tax payable

42,831

49,136

Total current liabilities

841,021

379,001

Long-term debt, excluding current maturities

5,627,698

937,027

Long-term lease liability

82,870

60,101

Other liabilities

465,498

101,986

Shareholders’ equity

3,116,317

1,713,781

Total liabilities and equity

$10,133,404

$3,191,896

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Three months ended

Nine months ended

 

October 1, 2022

October 2, 2021

October 1, 2022

October 2, 2021

Operating activities:

 

 

 

 

Net (loss) income

$(73,703)

$117,461

$151,493

$290,907

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

Depreciation

45,203

22,841

93,489

67,510

Amortization

65,346

11,843

90,491

35,616

Share-based compensation expense

38,077

7,467

57,544

22,124

Loss on extinguishment of debt and modification

2,235

2,235

23,338

Other

52,533

(1,773)

61,220

(1,976)

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

Trade accounts and notes receivable

22,931

(5,127)

(34,378)

(53,358)

Inventories

(55,394)

(45,464)

(180,335)

(115,187)

Accounts payable and accrued liabilities

56,162

52,924

83,307

37,577

Income taxes payable, refundable income taxes and noncurrent taxes payable

(12,089)

(8,833)

(15,637)

(35,275)

Other

4,231

(1,835)

10,801

13,198

Net cash provided by operating activities

145,532

149,504

320,230

284,474

Investing activities:

 

 

 

 

Acquisition of property and equipment

(126,739)

(48,885)

(318,836)

(133,986)

Acquisition of business, net of cash acquired

(4,474,925)

(4,474,925)

(2,250)

Other

1

4,326

1,124

4,416

Net cash used in investing activities

(4,601,663)

(44,559)

(4,792,637)

(131,820)

Financing activities:

 

 

 

 

Proceeds from revolving credit facility, short-term debt and long-term debt

2,810,439

5,416,753

451,000

Payments of revolving credit facility, short-term debt and long-term debt

(223,000)

(416,000)

(601,000)

Payments for debt extinguishment costs

(19,080)

Payments for dividends

(14,929)

(10,853)

(42,413)

(32,650)

Issuance of common stock

1,787

1,055

10,764

17,872

Taxes paid related to net share settlement of equity awards

(6,430)

(275)

(22,747)

(15,368)

Repurchase and retirement of common stock

(20,000)

(50,000)

Other

(89,182)

(486)

(100,348)

(5,287)

Net cash provided by (used in) financing activities

2,478,685

(30,559)

4,846,009

(254,513)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(11,118)

333

(21,500)

(3,282)

(Decrease) increase in cash, cash equivalents and restricted cash

(1,988,564)

74,719

352,102

(105,141)

Cash, cash equivalents and restricted cash at beginning of period

2,743,231

401,033

402,565

580,893

Cash, cash equivalents and restricted cash at end of period

$754,667

$475,752

$754,667

$475,752

 

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

 

Three months ended

 

Nine months ended

Net sales

October 1, 2022

October 2, 2021

July 2, 2022

 

October 1, 2022

October 2, 2021

Specialty Chemicals and Engineered Materials

$224,192

$154,605

$179,412

 

$569,380

$460,707

Microcontamination Control

280,550

225,877

274,133

 

821,320

660,497

Advanced Materials Handling

210,405

186,200

224,084

 

632,602

507,243

Advanced Planarization Solutions

293,854

21,775

28,317

 

352,816

62,580

Inter-segment elimination

(15,173)

(8,964)

(13,457)

 

(40,155)

(27,338)

Total net sales

$993,828

$579,493

$692,489

 

$2,335,963

$1,663,689

 

Three months ended

 

Nine months ended

Segment profit

October 1, 2022

October 2, 2021

July 2, 2022

 

October 1, 2022

October 2, 2021

Specialty Chemicals and Engineered Materials

$34,228

$33,552

$35,539

 

$107,459

$98,760

Microcontamination Control

105,335

78,399

100,109

 

304,062

227,097

Advanced Materials Handling

42,077

40,503

46,926

 

135,693

114,691

Advanced Planarization Solutions

18,903

7,539

10,179

 

40,241

21,832

Total segment profit

200,543

159,993

192,753

 

587,455

462,380

Amortization of intangibles

65,346

11,843

12,494

 

90,491

35,616

Unallocated expenses

120,308

8,793

22,289

 

160,759

34,540

Total operating income

$14,889

$139,357

$157,970

 

$336,205

$392,224

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

 

 

Three months ended

 

Nine months ended

 

October 1, 2022

October 2, 2021

July 2, 2022

 

October 1, 2022

October 2, 2021

Net Sales

$993,828

$579,493

$692,489

 

$2,335,963

$1,663,689

Gross profit-GAAP

$371,671

$264,204

$310,397

 

$991,888

$764,574

Adjustments to gross profit:

 

 

 

 

 

 

Charge for fair value mark-up of acquired inventory sold

61,932

 

61,932

Adjusted gross profit

$433,603

$264,204

$310,397

 

$1,053,820

$764,574

 

 

 

 

 

 

 

Gross margin - as a % of net sales

37.4 %

45.6 %

44.8 %

 

42.5 %

46.0 %

Adjusted gross margin - as a % of net sales

43.6 %

45.6 %

44.8 %

 

45.1 %

46.0 %

 

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

 

 

Three months ended

 

Nine months ended

Adjusted segment profit

October 1, 2022

October 2, 2021

July 2, 2022

 

October 1, 2022

October 2, 2021

SCEM segment profit

$34,228

$33,552

$35,539

 

$107,459

$98,760

Integration costs

 

Severance and restructuring costs

69

 

167

Charge for fair value write-up of acquired inventory sold

5,104

 

5,104

SCEM adjusted segment profit

$39,332

$33,621

$35,539

 

$112,563

$98,927

 

 

 

 

 

 

 

MC segment profit

$105,335

$78,399

$100,109

 

$304,062

$227,097

Severance and restructuring costs

75

 

181

MC adjusted segment profit

$105,335

$78,474

$100,109

 

$304,062

$227,278

 

 

 

 

 

 

 

AMH segment profit

$42,077

$40,503

$46,926

 

$135,693

$114,691

Severance and restructuring costs

52

 

127

AMH adjusted segment profit

$42,077

$40,555

$46,926

 

$135,693

$114,818

 

 

 

 

 

 

 

APS segment profit

$18,903

$7,539

$10,179

 

$40,241

21,832

APS Integration

56,828

 

56,828

APS adjusted segment profit

$75,731

$7,539

$10,179

 

$97,069

$21,832

 

 

 

 

 

 

 

Unallocated general and administrative expenses

$120,308

$8,793

$22,289

 

$160,759

$34,540

Unallocated deal and integration costs

(111,040)

(1,290)

(12,575)

 

(129,869)

(3,966)

Unallocated severance and restructuring costs

(10)

 

(54)

Adjusted unallocated general and administrative expenses

$9,268

$7,493

$9,714

 

$30,890

$30,520

 

 

 

 

 

 

 

Total adjusted segment profit

$262,475

$160,189

$192,753

 

$649,387

$462,855

Adjusted amortization of intangible assets

 

Adjusted unallocated general and administrative expenses

9,268

7,493

9,714

 

30,890

30,520

Total adjusted operating income

$253,207

$152,696

$183,039

 

$618,497

$432,335

 

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

 

 

Three months ended

 

Nine months ended

 

October 1, 2022

October 2, 2021

July 2, 2022

 

October 1, 2022

October 2, 2021

Net sales

$993,828

$579,493

$692,489

 

$2,335,963

$1,663,689

Net (loss) income

$(73,703)

$117,461

$99,491

 

$151,493

$290,907

Net (loss) income - as a % of net sales

(7.4%)

20.3%

14.4%

 

6.5%

17.5%

Adjustments to net (loss) income:

 

 

 

 

 

 

Income tax (benefit) expense

(7,015)

10,640

17,517

 

30,377

39,947

Interest expense, net

82,755

9,339

31,343

 

126,962

31,563

Other expense, net

12,852

1,917

9,619

 

27,373

29,807

GAAP - Operating income

14,889

139,357

157,970

 

336,205

392,224

Operating margin - as a % of net sales

1.5%

24.0%

22.8%

 

14.4%

23.6%

Charge for fair value write-up of acquired inventory sold

61,932

 

61,932

Deal and transaction costs

31,867

2,410

 

39,285

Integration costs

20,762

1,290

10,165

 

32,173

3,966

Contractual and non-cash integration costs

58,411

 

58,411

Severance and restructuring costs

206

 

529

Amortization of intangible assets

65,346

11,843

12,494

 

90,491

35,616

Adjusted operating income

253,207

152,696

183,039

 

618,497

432,335

Adjusted operating margin - as a % of net sales

25.5%

26.3%

26.4%

 

26.5%

26.0%

Depreciation

45,203

22,841

24,381

 

93,489

67,510

Adjusted EBITDA

$298,410

$175,537

$207,420

 

$711,986

$499,845

Adjusted EBITDA - as a % of net sales

30.0%

30.3%

30.0%

 

30.5%

30.0%

 

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share

(In thousands, except per share data)

(Unaudited)

 

 

Three months ended

 

Nine months ended

 

October 1, 2022

October 2, 2021

July 2, 2022

 

October 1, 2022

October 2, 2021

GAAP net (loss) income

$(73,703)

$117,461

$99,491

 

$151,493

$290,907

Adjustments to net income:

 

 

 

 

 

 

Charge for fair value write-up of inventory acquired

61,932

 

61,932

Deal and transaction costs

31,867

2,410

 

39,285

Integration costs

20,762

1,290

10,165

 

32,173

3,966

Contractual and non-cash integration costs

58,411

 

58,411

Severance and restructuring costs

206

 

529

Loss on extinguishment of debt and modification

2,235

 

2,235

23,338

Interest expense, net

2,397

22,742

 

29,822

Amortization of intangible assets

65,346

11,843

12,494

 

90,491

35,616

Tax effect of adjustments to net income and discrete items1

(41,477)

(5,417)

(10,486)

 

(56,123)

(16,749)

Non-GAAP net income

$127,770

$125,383

$136,816

 

$409,719

$337,607

 

 

 

 

 

 

 

Diluted (loss) earnings per common share

$(0.50)

$0.86

$0.73

 

$1.08

$2.13

Effect of adjustments to net income

$1.35

$0.06

$0.27

 

$1.83

$0.34

Diluted non-GAAP earnings per common share

$0.85

$0.92

$1.00

 

$2.91

$2.47

 

 

 

 

 

 

 

Diluted weighted averages shares outstanding

148,570

136,631

136,454

 

140,892

136,556

Effect of adjustment to diluted weighted average shares outstanding

1,099

 

 

Diluted non-GAAP weighted average shares outstanding

149,669

136,631

136,454

 

140,892

136,556

1The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate during the respective years.

 

Entegris, Inc. and Subsidiaries

R
econciliation of GAAP Outlook to Non-GAAP Outlook

(In millions, except per share data)

(Unaudited)

 

 

Fourth-Quarter Outlook

Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin

December 31, 2022

Net sales

$930 - $970

GAAP - Operating income

$132 - $153

Operating margin - as a % of net sales

14% - 16%

Deal, transaction and integration costs

23

Amortization of intangible assets

66

Adjusted operating income

$221 - $242

Adjusted operating margin - as a % of net sales

24% - 25%

Depreciation

45

Adjusted EBITDA

$266 - $287

Adjusted EBITDA - as a % of net sales

29 %

 

Fourth-Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income

December 31, 2022

GAAP net income

$42 - $50

Adjustments to net income:

 

Deal, transaction and integration costs

23

Amortization of intangible assets

66

Income tax effect

(19)

Non-GAAP net income

$112 - $120

 

Fourth-Quarter Outlook

Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share

December 31, 2022

Diluted earnings per common share

$0.28 - $0.33

Adjustments to diluted earnings per common share:

 

Deal, transaction and integration costs

0.15

Amortization of intangible assets

0.44

Income tax effect

(0.12)

Diluted non-GAAP earnings per common share

$0.75 - $0.80

 

Entegris, Inc. and Subsidiaries

Reconciliation of Proforma GAAP Net Sales to Proforma Non-GAAP Net Sales

(In thousands)

(Unaudited)

 

 

Three months ended

 

Nine months ended

 

 

 

 

October 1, 2022

October 2, 2021

 

October 1, 2022

October 2, 2021

 

3Q22 over 3Q21

YTD 3Q22 over 3Q21

Proforma GAAP Net Sales

$993.8

$889.3

 

$2,974.8

$2,568.7

 

11.8 %

15.8 %

Less: Wood treatment

21.2

 

11.1

55.8

 

 

 

Proforma Net Sales - Non GAAP

$993.8

$868.1

 

$2,963.7

$2,512.9

 

14.5 %

17.9 %

 

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