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Entegris Reports Results for First Quarter of 2023

  • First-quarter revenue (as reported) of $922.4 million, increased 42% from prior year
  • First-quarter revenue (proforma), decreased 3.7%
  • First-quarter GAAP diluted EPS of $(0.59)
  • First-quarter non-GAAP diluted EPS of $0.65

Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s first quarter ended April 1, 2023. First-quarter sales were $922.4 million, an increase of 42% from the same quarter last year. First-quarter GAAP net loss was $88.2 million, or $0.59 loss per diluted share, which included $88.9 million of goodwill impairment related to the sale of the Electronic Chemicals business, $57.6 million of amortization of intangible assets, $17.0 million of integration costs and $22.5 million of other net costs. Non-GAAP net income was $97.8 million for the first quarter and non-GAAP earnings per diluted share was $0.65. The results for the first quarter of 2022, are shown on a “as reported” basis and not on a “proforma” basis, and as a result do not include CMC Materials’ results.

Bertrand Loy, Entegris’ president and chief executive officer, said: “I am pleased with the quality of our execution and results in the first quarter, especially in light of the dynamic market environment. Sales were down sequentially in the quarter, but we believe we outperformed the market, driven in large part by our strong position at the leading-edge technology nodes.”

Mr. Loy added: “2023 continues to be an uncertain year for the semiconductor industry. Despite these challenges, we have made good progress on key initiatives. The CMC Materials integration is proceeding very well, and on track to hit important milestones. The recently announced agreement to sell the Electronic Chemicals business, along with the sale of the QED business, are critical steps to optimize our portfolio and are expected to result in more than $800 million of proceeds to be used for debt paydown. In addition, we have taken several actions to lower our cost structure.”

Mr. Loy added: “Looking further ahead, the semiconductor industry is poised for long-term growth, on the way to $1 trillion by 2030. At the same time, as device architectures become more complex, our leading capabilities in materials science and materials purity enable us to offer our customers unique mission critical solutions, which will translate into rapidly expanding content per wafer for Entegris.”

Quarterly Financial Results Summary

(in thousands, except percentages and per share data)

GAAP Results

April 1, 2023

April 2, 2022

December 31, 2022

Net sales

$922,396

$649,646

$946,070

Operating income

$13,466

$163,346

$143,776

Operating margin - as a % of net sales

1.5%

25.1%

15.2%

Net (loss) income

($88,166)

$125,705

$57,427

Diluted (loss) earnings per common share

($0.59)

$0.92

$0.38

Non-GAAP Results

Non-GAAP adjusted operating income

$204,772

$182,251

$219,353

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

22.2%

28.1%

23.2%

Non-GAAP net income

$97,782

$145,133

$124,451

Diluted non-GAAP earnings per common share

$0.65

$1.06

$0.83

Second-Quarter Outlook

For the second quarter ending July 1, 2023, the Company expects sales of $870 million to $900 million, GAAP net income of $14 million to $21 million and diluted earnings per common share between $0.09 and $0.14. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.53 to $0.58, reflecting net income on a non-GAAP basis in the range of $80 million to $87 million. The Company also expects EBITDA of approximately 27% to 28% of sales, for the second quarter of 2023.

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.

First-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the first quarter on Thursday, May 11, 2023, at 8:00 a.m. Eastern Time. Participants should dial 800-245-3047 or +1 203-518-9765, referencing confirmation ID: ENTGQ123. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. For the live webcast and replay of the call, please Click Here.

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

About Entegris

Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 9,000 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 supply chain matters and inflationary pressures; 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; 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 and in Colorado Springs; 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. (now known as CMC Materials LLC) (“CMC Materials”); the closing of any announced divestitures, including the timing thereof; 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; raw material shortages, supply and labor constraints and price increases, 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, divestitures or other similar transactions; the Company’s ability to consummate pending transactions on a timely basis or at all and the satisfaction of the conditions precedent to consummation of such pending transactions, including the satisfaction of regulatory conditions on the terms expected, at all or in a timely manner; the Company’s ability to effectively implement any organizational changes; the Company’s ability to protect and enforce intellectual property rights; 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, 2022, filed on February 23, 2023, 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

 

April 1, 2023

April 2, 2022

December 31, 2022

Net sales

$922,396

$649,646

$946,070

Cost of sales

520,711

339,826

541,545

Gross profit

401,685

309,820

404,525

Selling, general and administrative expenses

169,867

87,108

139,246

Engineering, research and development expenses

71,906

46,715

68,041

Amortization of intangible assets

57,574

12,651

53,462

Goodwill impairment

88,872

Operating income

13,466

163,346

143,776

Interest expense, net

84,821

12,864

82,013

Other (income) expense, net

(4,658)

4,902

(3,447)

(Loss) income before income tax expense

(66,697)

145,580

65,210

Income tax expense

21,469

19,875

7,783

Net (loss) income

$(88,166)

$125,705

$57,427

 

 

 

 

 

 

 

Basic (loss) earnings per common share:

$(0.59)

$0.93

$0.39

Diluted (loss) earnings per common share:

$(0.59)

$0.92

$0.38

 

 

 

 

Weighted average shares outstanding:

 

 

 

Basic

149,426

135,670

149,039

Diluted

149,426

136,552

149,909

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 
 

 

April 1, 2023

December 31, 2022

ASSETS

 

 

Current assets:

 

 

Cash, cash equivalents and restricted cash

$709,032

$563,439

Trade accounts and notes receivable, net

511,435

535,485

Inventories, net

830,939

812,815

Deferred tax charges and refundable income taxes

38,845

47,618

Assets held-for-sale

247,932

246,531

Other current assets

118,864

129,297

Total current assets

2,457,047

2,335,185

Property, plant and equipment, net

1,464,420

1,393,337

Other assets:

 

 

Right-of-use assets

91,383

94,940

Goodwill

4,247,504

4,408,331

Intangible assets, net

1,742,336

1,841,955

Deferred tax assets and other noncurrent tax assets

29,795

28,867

Other

34,602

36,242

Total assets

$10,067,087

$10,138,857

LIABILITIES AND EQUITY

 

Current liabilities

 

 

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

$159,045

151,965

Accounts payable

167,177

172,488

Accrued liabilities

339,883

328,784

Liabilities held-for-sale

11,617

10,637

Income tax payable

103,901

98,057

Total current liabilities

781,623

761,931

Long-term debt, excluding current maturities

5,634,710

5,632,928

Long-term lease liability

77,319

80,716

Other liabilities

405,212

445,282

Shareholders’ equity

3,168,223

3,218,000

Total liabilities and equity

$10,067,087

$10,138,857

 

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Three months ended

 

April 1, 2023

April 2, 2022

Operating activities:

 

 

Net (loss) income

$(88,166)

$125,705

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

 

 

Depreciation

46,775

23,905

Amortization

57,574

12,651

Share-based compensation expense

30,678

9,285

Loss on extinguishment of debt and modification

2,787

Impairment of Goodwill

88,872

Loss from sale of business

13,642

Other

(7,100)

195

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

 

 

Trade accounts and notes receivable

8,379

(31,171)

Inventories

(34,852)

(77,476)

Accounts payable and accrued liabilities

20,043

(22,323)

Income taxes payable, refundable income taxes and noncurrent taxes payable

15,867

16,760

Other

(2,628)

6,257

Net cash provided by operating activities

151,871

63,788

Investing activities:

 

 

Acquisition of property and equipment

(133,992)

(84,405)

Proceeds from sale of business

133,527

Other

108

1,123

Net cash used in investing activities

(357)

(83,282)

Financing activities:

 

 

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

117,170

79,000

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

(117,170)

(79,000)

Payments for dividends

(15,170)

(13,895)

Issuance of common stock

18,393

3,379

Taxes paid related to net share settlement of equity awards

(9,406)

(16,117)

Other

(299)

(962)

Net cash used in financing activities

(6,482)

(27,595)

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

561

(2,744)

Increase (decrease) in cash, cash equivalents and restricted cash

145,593

(49,833)

Cash, cash equivalents and restricted cash at beginning of period

563,439

402,565

Cash, cash equivalents and restricted cash at end of period

$709,032

$352,732

 

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

 

Three months ended

Net sales

April 1, 2023

April 2, 2022

December 31, 2022

Specialty Chemicals and Engineered Materials

$198,004

$165,776

$204,214

Advanced Planarization Solutions

250,326

30,645

253,798

Microcontamination Control

269,297

266,637

284,676

Advanced Materials Handling

218,853

198,113

213,890

Inter-segment elimination

(14,084)

(11,525)

(10,508)

Total net sales

$922,396

$649,646

$946,070

 

 

Three months ended

Segment profit

April 1, 2023

April 2, 2022

December 31, 2022

Specialty Chemicals and Engineered Materials

$3,268

$37,692

$14,828

Advanced Planarization Solutions

(32,790)

11,159

56,661

Microcontamination Control

95,997

98,618

107,413

Advanced Materials Handling

48,165

46,690

48,045

Total segment profit

114,640

194,159

226,947

Amortization of intangibles

57,574

12,651

53,462

Unallocated expenses

43,600

18,162

29,709

Total operating income

$13,466

$163,346

$143,776

 

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

 
 

 

Three months ended

 

April 1, 2023

April 2, 2022

December 31, 2022

Net Sales

$922,396

$649,646

$946,070

Gross profit-GAAP

$401,685

$309,820

$404,525

Adjustments to gross profit:

 

 

 

Restructuring costs 1

7,377

Adjusted gross profit

$409,062

$309,820

$404,525

 

 

 

 

Gross margin - as a % of net sales

43.5%

47.7%

42.8%

Adjusted gross margin - as a % of net sales

44.3%

47.7%

42.8%

1 Restructuring charges resulting from cost saving initiatives.

 

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

 

 

Three months ended

Adjusted segment profit

April 1, 2023

April 2, 2022

December 31, 2022

SCEM segment profit

$3,268

$37,692

$14,828

Restructuring costs 1

6,523

Loss on sale of business 2

13,642

SCEM adjusted segment profit

$23,433

$37,692

$14,828

 

 

 

 

APS segment profit

$(32,790)

$11,159

$56,661

Goodwill impairment 3

88,872

Restructuring costs 1

585

Gain on sale of business 2

(254)

APS adjusted segment profit

$56,667

$11,159

$56,407

 

 

 

 

MC segment profit

$95,997

$98,618

$107,413

Restructuring costs 1

2,795

MC adjusted segment profit

$98,792

$98,618

$107,413

 

 

 

 

AMH segment profit

$48,165

$46,690

$48,045

Restructuring costs 1

1,254

AMH adjusted segment profit

$49,419

$46,690

$48,045

 

 

 

 

Unallocated general and administrative expenses

$43,600

$18,162

$29,709

Less: unallocated deal and integration costs

19,975

6,254

22,369

Less: unallocated restructuring costs 1

86

Adjusted unallocated general and administrative expenses

$23,539

$11,908

$7,340

 

 

 

 

Total adjusted segment profit

$228,311

$194,159

$226,693

Less: adjusted unallocated general and administrative expenses

23,539

11,908

7,340

Total adjusted operating income

$204,772

$182,251

$219,353

1 Restructuring charges resulting from cost saving initiatives.

2 Loss (gain) from the sale of businesses.

3 Non-cash impairment charges associated with goodwill.

 

Entegris, Inc. and Subsidiaries

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

(In thousands)

(Unaudited)

 

 

Three months ended

 

April 1, 2023

April 2, 2022

December 31, 2022

Net sales

$922,396

$649,646

$946,070

Net (loss) income

$(88,166)

$125,705

$57,427

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

(9.6%)

19.3%

6.1%

Adjustments to net (loss) income:

 

 

 

Income tax expense (benefit)

21,469

19,875

7,783

Interest expense, net

84,821

12,864

82,013

Other (income) expense, net

(4,658)

4,902

(3,447)

GAAP - Operating income

13,466

163,346

143,776

Operating margin - as a % of net sales

1.5%

25.1%

15.2%

Goodwill Impairment 1

88,872

Deal and transaction costs 2

3,001

5,008

258

Integration costs:

 

 

Professional fees 3

11,988

796

13,723

Severance costs 4

1,362

2,273

Retention costs 5

1,280

457

Other costs 6

2,345

450

2,105

Contractual and non-cash integration costs 7

3,553

Restructuring costs 8

11,242

Loss (gain) on sale of business 9

13,642

(254)

Amortization of intangible assets 10

57,574

12,651

53,462

Adjusted operating income

204,772

182,251

219,353

Adjusted operating margin - as a % of net sales

22.2%

28.1%

23.2%

Depreciation

46,775

23,905

41,882

Adjusted EBITDA

251,547

206,156

261,235

Adjusted EBITDA - as a % of net sales

27.3%

31.7%

27.6%

1 Non-cash impairment charges associated with goodwill.

2 Deal and transaction costs associated the CMC acquisition and completed and announced divestitures.

3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other vendors to assist us in integrating the recently acquired CMC into our operations. These fees arise outside of the ordinary course of our continuing operations.

4 Represent severance charges resulting from cost saving initiatives in connection with the CMC acquisition.

5 Represents retention charges related directly to the CMC acquisition and completed and announced divestitures, and are not part of our normal, recurring cash operating expenses.

6 Represents other employee related costs and other costs incurred relating to the CMC acquisition and the completed and announced divestitures. These costs arise outside of the ordinary course of our continuing operations.

7 Represents non-recurring costs associated with the CMC retention program that was agreed upon and set forth in the definitive acquisition agreement.

8 Restructuring charges resulting from cost saving initiatives.

9 Loss (gain) from the sale of businesses.

10Non-cash amortization expense associated with intangibles acquired in acquisitions.

 

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

 

April 1, 2023

April 2, 2022

December 31, 2022

GAAP net (loss) income

$(88,166)

$125,705

$57,427

Adjustments to net (loss) income:

 

 

 

Goodwill Impairment 1

88,872

Deal and transaction costs 2

3,001

5,008

258

Integration costs:

 

 

 

Professional fees 3

11,988

796

13,723

Severance costs 4

1,362

2,273

Retention costs 5

1,280

457

Other costs 6

2,345

450

2,105

Contractual and non-cash integration costs 7

3,553

Restructuring costs 8

11,242

Loss on extinguishment of debt and modification 9

3,880

1,052

Loss (gain) on sale of business 10

13,642

(254)

Infineum termination fee, net 11

(10,877)

Interest expense, net 12

4,683

Amortization of intangible assets 13

57,574

12,651

53,462

Tax effect of adjustments to net (loss) income and discrete items14

1,639

(4,160)

(9,605)

Non-GAAP net income

$97,782

$145,133

$124,451

 

 

 

 

Diluted (loss) earnings per common share

$(0.59)

$0.92

$0.38

Effect of adjustments to net (loss) income

$1.24

$0.14

$0.45

Diluted non-GAAP earnings per common share

$0.65

$1.06

$0.83

 

 

 

 

Diluted weighted averages shares outstanding

149,426

136,552

149,909

Effect of adjustment to diluted weighted average shares outstanding

955

Diluted non-GAAP weighted average shares outstanding

150,381

136,552

149,909

1 Non-cash impairment charges associated with goodwill.

2 Deal and transaction costs associated with the CMC acquisition and completed and announced divestitures.

3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other vendors to assist us in integrating the recently acquired CMC into our operations. These fees arise outside of the ordinary course of our continuing operations.

4 Represent severance charges resulting from cost saving initiatives from the CMC acquisition.

5 Represents retention charges related directly to the CMC acquisition and completed and announced divestitures, and are not part of our normal, recurring cash operating expenses.

6 Represents other employee related costs and other costs incurred relating to the CMC acquisition and completed and announced divestitures. These costs arise outside of the ordinary course of our continuing operations.

7 Represents non-recurring costs associated with the CMC retention program that was agreed upon and set forth in the definitive acquisition agreement.

8 Restructuring charges resulting from cost saving initiatives.

9 Non-recurring loss on extinguishment of debt and modification of our Credit Amendment.

10 Loss (gain) from the sale of businesses.

11 Non-recurring gain from the termination fee with Infineum.

12 Non-recurring interest costs related to the financing of the CMC acquisition.

13 Non-cash amortization expense associated with intangibles acquired in acquisitions.

14 The 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

Reconciliation of GAAP Outlook to Non-GAAP Outlook

(In millions, except per share data)

(Unaudited)

 

 

Second -Quarter Outlook

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

July 1, 2023

Net sales

$870 - $900

GAAP - Operating income

$103 - $119

Operating margin - as a % of net sales

12% - 13%

Deal, transaction and integration costs

20

Amortization of intangible assets

57

Adjusted operating income

$180 - 196

Adjusted operating margin - as a % of net sales

21% - 22%

Depreciation

58

Adjusted EBITDA

$238 - $254

Adjusted EBITDA - as a % of net sales

27% - 28%

 

 

Second -Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income

July 1, 2023

GAAP net income

$14 - $21

Adjustments to net income:

 

Deal, transaction and integration costs

20

Amortization of intangible assets

57

Income tax effect

(11)

Non-GAAP net income

$80 - $87

 
 

 

Second -Quarter Outlook

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

July 1, 2023

Diluted earnings per common share

$0.09 - $0.14

Adjustments to diluted earnings per common share:

 

Deal, transaction and integration costs

0.13

Amortization of intangible assets

0.38

Income tax effect

(0.07)

Diluted non-GAAP earnings per common share

$0.53 - $0.58

 

Entegris, Inc. and Subsidiaries

Reconciliation of Proforma Sales to Proforma Non-GAAP Net Sales

(In thousands)

(Unaudited)

 

 

Three months ended

 

April 2, 2022

Proforma Net Sales 1

$969,091

Less: Wood treatment 2

(10,907)

Proforma Net Sales - Non GAAP

$958,184

1 The above pro forma results include the addition of CMC Materials, Inc.’s financials recorded prior to the consummation of the merger with the Company on July 6, 2022 to the Company’s reported financials and are provided as a complement to, and should be read in conjunction with, the consolidated financial statements to better facilitate the assessment and measurement of the Company’s operating performance. Intercompany sales between the Company and CMC Materials, Inc have been eliminated. No other adjustments have been included.

2 The adjustment relates to removal of net sales related to CMC’s wood treatment business. Prior to the acquisition, CMC operated a wood treatment business, which manufactured and sold wood treatment preservatives for utility poles and crossarms. CMC exited this business during the first half of 2022, prior to our acquisition of CMC. The wood treatment business had no ongoing sales at the time of acquisition and removed for comparable purposes.

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