Entegris, Inc.

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Press Release $ENTG Entegris, Inc.

0 COMMENTs 31 Jan
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Entegris Reports Fourth Quarter and Year End Results

BILLERICA, Mass., Jan. 31, 2013 (GLOBE NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the Company's fourth quarter and fiscal year ended December 31, 2012.

The Company recorded fourth-quarter sales of $167.8 million, an increase of two percent from the prior year, and a nine percent decline sequentially. Net income was $11.3 million, or $0.08 per share.   These results included amortization of intangible assets of $2.3 million. Non-GAAP earnings per share of $0.09 in the fourth quarter of 2012 compared to $0.15 in the fourth quarter a year ago and $0.16 in the third quarter of 2012. A reconciliation table of GAAP to non-GAAP earnings per share is contained in this press release.

Fiscal 2012 sales were $716 million, representing a four percent decline compared to sales of $749 million in 2011. Net income per share of $0.50 compared to net income of $0.91 per share a year earlier, which included a one-time tax benefit of $0.15 per share. On a non-GAAP basis, net income per share in fiscal 2012 was $0.55 compared with net income per share of $0.79 for the year earlier.

Bertrand Loy, president and chief executive officer, said: "Our sales in the fourth quarter declined sequentially as expected, and reflected continued soft business trends in the microelectronics and semiconductor industries.  Even so, sales of our filtration products grew in the quarter as liquid filter sales reached record levels for the quarter and the year. This reflects our deepening collaboration with the leading customers in our industry as they address contamination and materials handling challenges in their most advanced manufacturing processes.

"Fourth-quarter operating results were adversely impacted by sales mix and lower utilization at our manufacturing facilities. However, we maintained tight control of our operating expenses, which included $2.4 million, or $0.01 per share, of severance costs related to organizational realignments in a number of areas around the company. For the year, we generated $115 million in cash from operations and ended the year with $350 million in cash, cash equivalents, and short-term investments.

"As we move through 2013, we are committed to strategic allocation of our capital, which over time includes a goal of meaningfully reducing our outstanding share count. To accomplish this, our Board of Directors has authorized a new share repurchase program covering up to $50 million to repurchase," Loy said. 

For the fiscal first quarter ending March 30, 2013, the Company expects sales to be $160 million to $170 million and EPS to range between $0.07 and $0.10. On a non-GAAP basis, EPS is expected to range from $0.08 to $0.11, which reflects Non-GAAP net income in the range of $11 million to $15 million, adjusted for expected amortization expense of $2.3 million or $0.01 per share.

Fourth-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the fourth quarter on Thursday, January  31, 2013, at 10:00 a.m. Eastern Time.  Participants should dial 1-719-457-2645 or 1-888-455-2296, referencing confirmation code 6035420. Participants are asked to dial in 8 to 13 minutes prior to the start of the call. A replay of the call will be available starting at 1:00 p.m. ET on January 31 until March 16, 2013. The replay can be accessed by using passcode 6035420 after dialing 1-719-457-0820 or 1-888-203-1112. A live and on-demand webcast of the call can also be accessed from the investor relations section of Entegris' website at www.entegris.com.

About Entegris

Entegris is a leading provider of a wide range of products for purifying, protecting and transporting critical materials used in processing and manufacturing in the semiconductor and other high-technology industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

The Entegris, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3700

Non-GAAP Information

The Company's consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA and Adjusted Operating Income together with related measures thereof, and non-GAAP EPS, are considered "Non-GAAP financial measures" under the rules and regulations of the SEC. These financial measures are provided as a complement to financial measures provided in accordance with GAAP. We provide non-GAAP financial measures in order to better assess and reflect operating performance. Management believes the non-GAAP measures help indicate our baseline performance before certain gains, losses or other charges that may not be indicative of our business or future outlook. We believe these non-GAAP measures will aid investors' overall understanding of our results by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will help investors understand how we plan and measure our business. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP. The calculations of Adjusted EBITDA margin, Adjusted Operating Income, and non-GAAP EPS are included elsewhere in this release.

Forward-Looking Statements

Certain information contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, and involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Statements that include such words as "anticipate," "believe," "estimate," "expect," "forecast," "may," "will," "should" or the negative thereof and similar expressions as they relate to Entegris or our management are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris' stock, Entegris' future operating results, other acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris' periodic public filings with the Securities and Exchange Commission, including discussions appearing under the headings "Risks Relating to our Business and Industry," "Risks Related to our Borrowings", "Manufacturing Risks," "International Risks," and "Risks Related to Owning Our Securities" in Item 1A of our Annual Report on Form 10–K for the fiscal year ended December 31, 2011, as well as other matters and important factors disclosed previously and from time to time in the filings of Entegris with the U.S. Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update publicly any forward-looking statements contained herein.




Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
   
  Three Months Ended
  December 31,
2012
September 29,
2012
December 31,
2011
Net sales $167,818 $184,449 $163,922
Cost of sales 101,357 102,517 96,308
Gross profit 66,461 81,932 67,614
Selling, general and administrative expenses 37,273 39,095 32,398
Engineering, research and development expenses 12,911 13,314 11,029
Amortization of intangible assets 2,335 2,389 2,462
Operating income  13,942 27,134 21,725
Interest expense (income), net 2 (40) 9
Other (income) expense, net (897) 1,481 (102)
Income before income taxes and equity in affiliates 14,837 25,693 21,818
Income tax  expense (benefit)   3,581 7,656 (18,333)
Equity in net income of affiliates -- -- (10)
Net income $11,256 $18,037 $40,161
       
       
Basic net income per common share: $0.08 $0.13 $0.30
Diluted net income per common share: $0.08 $0.13 $0.29
       
Weighted average shares outstanding:      
Basic 137,867 137,453 135,509
Diluted 138,907 138,499 137,032
     
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 
  Twelve months ended
  December 31,
2012
December 31,
2011
Net sales $715,903 $749,259
Cost of sales 408,520 423,329
Gross profit 307,383 325,930
Selling, general and administrative expenses 147,405 140,847
Engineering, research and development expenses 50,940 47,980
Amortization of intangible assets 9,594 10,225
Operating income  99,444 126,878
Interest (income) expense, net (10) 659
Other income, net (249) (1,745)
Income before income taxes 99,703 127,964
Income tax expense  30,881 4,217
Equity in net income of affiliates (3) (499)
Net income 68,825 124,246
Net income attributable to noncontrolling interest -- 400
Net income attributable to Entegris, Inc. $68,825 $123,846
     
Amounts attributable to Entegris, Inc.:    
Basic net income per common share: $0.50 $0.92
Diluted net income per common share: $0.50 $0.91
     
Weighted average shares outstanding:    
Basic 137,306 134,685
Diluted 138,412 136,223




Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
 
  December 31, 2012 December 31, 2011
ASSETS    
Cash and cash equivalents $330,419 $273,593
Short-term investments 19,995 --
Accounts receivable, net 94,016 107,223
Inventories 99,144 93,937
Deferred tax assets, deferred tax charges and refundable income taxes 20,201 15,805
Other current assets and assets held for sale 15,549 12,441
 Total current assets 579,324 502,999
     
Property, plant and equipment, net 157,021 130,554
     
Intangible assets 49,416 56,453
Deferred tax assets – non-current 17,167 25,119
Other assets 8,616 9,538
 Total assets $811,544 $724,663
     
LIABILITIES AND EQUITY    
Accounts payable $36,341 $30,609
Accrued liabilities 51,263 47,841
Income tax payable and deferred tax liabilities 5,659 14,144
 Total current liabilities 93,263 92,594
     
Other liabilities 23,482 23,831
Equity 694,799 608,238
 Total liabilities and equity $811,544 $724,663

 

 

Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
  Three Months Ended Twelve Months Ended
  December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Operating activities:        
Net income  $11,256 $40,161 $68,825 $124,246
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation 7,151 6,547 28,013 26,839
Amortization 2,335 2,462 9,594 10,225
Stock-based compensation expense 1,851 1,735 9,881 7,519
Deferred tax valuation allowance and other tax items 12,012 (19,254) 10,822 (19,367)
Other 198 978 1,903 541
Changes in operating assets and liabilities:        
Trade accounts and notes receivable 14,916 3,652 10,626 19,336
Inventories 3,505 7,836 (6,118) 3,632
Accounts payable and accrued liabilities 4,737 (289) 6,265 (15,127)
Income taxes payable and refundable income taxes (9,351) 418 (9,897) (433)
Other (10,269) 270 (14,752) (125)
Net cash provided by operating activities 38,341 44,516 115,162 157,286
Investing activities:        
Acquisition of property and equipment (10,813) (6,121) (49,929) (30,267)
Purchases of short-term investments, net of proceeds from maturities (11,994) 2,000 (19,990) (47)
Other 229 440 (2,548) 1,883
Net cash used in investing activities (22,578) (3,681) (72,467) (28,431)
Financing activities:        
Issuance of common stock 2,742 6,034 7,431 11,690
Other 2,550 259 3,459 (826)
Net cash provided by financing activities 5,292 6,293 10,890 10,864
Effect of exchange rate changes on cash 1,534 (572) 3,241 (80)
Increase in cash and cash equivalents 22,589 46,556 56,826 139,639
Cash and cash equivalents at beginning of period 307,830 227,037 273,593 133,954
Cash and cash equivalents at end of period $330,419 $273,593 $330,419 $273,593




 

Entegris, Inc. and Subsidiaries
Segment Information
(In thousands)
(Unaudited)
 
  Three Months Ended Twelve Months Ended
Net sales December 31,
2012
September 29,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Contamination Control Solutions $110,266 $112,876 $105,062 $461,838 $483,958
Microenvironments 42,684 54,421 40,116 182,375 182,150
Specialty Materials 14,868 17,152 18,744 71,690 83,151
 Total net sales $167,818 $184,449 $163,922 $715,903 $749,259
           
  Three Months Ended Twelve Months Ended
Segment profit December 31,
2012
September 29,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Contamination Control Solutions $22,438 $27,166 $26,082 $116,356 $140,313
Microenvironments 6,401 16,771 6,201 37,223 29,959
Specialty Materials 1,046 2,112 4,340 12,230 18,255
Total segment profit 29,885 46,049 36,623 165,809 188,527
Amortization of intangibles (2,335) (2,389) (2,462) (9,594) (10,225)
Unallocated expenses (13,608) (16,526) (12,436) (56,771) (51,424)
 Total operating income $13,942 $27,134 $21,725 $99,444 $126,878
               
Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
(In thousands)
(Unaudited)
 
  Three Months Ended Twelve Months Ended
  December 31, 2012 September 29, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Net sales $167,818 $184,449 $163,922 $715,903 $749,259
Net income attributable to Entegris, Inc. $11,256 $18,037 $40,161 $68,825 $123,846
Adjustments to net income attributable to Entegris, Inc.          
Net income attributable to noncontrolling interest -- -- -- -- 400
Equity in net income of affiliates -- -- (10) (3) (499)
Income tax (benefit) expense 3,581 7,656 (18,333) 30,881 4,217
Other (income) expense, net (897) 1,481 (102) (249) (1,745)
Interest expense (income), net 2 (40) 9 (10) 659
GAAP – Operating income 13,942 27,134 21,725 99,444 126,878
Amortization of intangible assets 2,335 2,389 2,462 9,594 10,225
Charge associated with CEO succession and transition plan -- 3,928 -- 3,928 --
Gain associated with pension curtailment -- -- -- -- (726)
Adjusted operating income  16,277 33,451 24,187 112,966 136,377
Depreciation 7,151 7,349 6,547 28,013 26,839
Adjusted EBITDA $23,428 $40,800 $30,734 $140,979 $163,216
           
Adjusted operating margin 9.7% 18.1% 14.8% 15.8% 18.2%
Adjusted EBITDA – as a % of net sales 14.0% 22.1% 18.7% 19.7% 21.8%




 

Entegris, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Earnings per Share
(In thousands)
(Unaudited)
 
  Three Months Ended Twelve Months Ended
  December 31, 2012 September 29, 2012 December 31, 2011 December 31, 2012 December 31, 2011
GAAP net income attributable to Entegris, Inc. $11,256 $18,037 $40,161 $68,825 $123,846
Adjustments to net income attributable to Entegris, Inc.:          
Amortization of intangible assets 2,335 2,389 2,462 9,594 10,225
Accelerated write-off of debt costs -- -- -- -- 282
Gain on sale of equity investment -- -- -- (1,522) (1,523)
Gain associated with pension curtailment -- -- -- -- (726)
Charge associated with CEO succession and transition plan -- 3,928 -- 3,928 --
Reversal of deferred tax valuation allowance (1) -- -- (20,999) -- (20,999)
Tax effect of adjustments to net income attributable to Entegris, Inc. (841) (2,301) (896) (4,643) (3,355)
Non-GAAP net income attributable to Entegris, Inc. $12,750 $22,053 $20,728 $76,182 $107,750
           
Diluted earnings per common share attributable to Entegris, Inc.: $0.08 $0.13 $0.29 $0.50 $0.91
Effect of adjustments to net income attributable to Entegris, Inc. $0.01 $0.03 ($0.14) $0.05 $0.12
Diluted non-GAAP earnings per common share attributable to Entegris, Inc.: $0.09 $0.16 $0.15 $0.55 $0.79
 
(1) This amount represents the reversal of the remaining valuation allowance on certain of the Company's deferred tax assets. The amount excludes the reversal of the valuation allowance on those deferred tax assets realized in 2011 and 2010 based on earnings in those years.
 
CONTACT: Steve Cantor
         VP of Corporate Relations
         Tel. 978-436-6750
         irelations@entegris.com

Source: Entegris, Inc.
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