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Entegris Reports Fourth Quarter And Year End Results

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

Entegris, Inc.

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