Business Wire | Feb 2, 2021 06:00AM EST

Entegris Reports Results for Fourth Quarter Of 2020

Feb. 02, 2021

BILLERICA, Mass.--(BUSINESS WIRE)--Feb. 02, 2021--Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company's fourth quarter ended December 31, 2020.

Fourth-quarter sales were $517.6 million, an increase of 21% from the same quarter last year. Fourth-quarter GAAP net income was $86.6 million, or $0.63 per diluted share, which included $11.9 million of amortization of intangible assets and $1.3 million of integration costs. Non-GAAP net income was $97.1 million for the fourth-quarter and non-GAAP earnings per diluted share was $0.71.

Bertrand Loy, Entegris' president and chief executive officer, said: "Our fourth quarter results capped off a record year in sales, EBITDA and EPS for Entegris. In 2020, our performance above the market accelerated, driven by wins in new technology nodes and overall demand for our products and solutions. This performance showcased the strength of our team's execution and our highly resilient, differentiated, unit-driven business model. I can't say enough about how proud I am of the dedication, ingenuity and perseverance our team demonstrated in such a challenging year."

Mr. Loy added: "We continue to be very optimistic about the long-term fundamentals of the semiconductor market. Accelerating chip demand and a higher amount of wafers produced at the leading edge, provide a great base for attractive secular industry growth. On top of this, at Entegris, we are benefiting from the growing impact to new device architectures of the intersecting themes of process materials and materials purity. We expect these key trends will continue to result in our rapidly expanding served markets and increased Entegris content per wafer."

Quarterly Financial Results Summary

(in thousands, except percentages and per share data)

GAAP Results December 31, December 31, September 26, 2020 2019 2020

Net sales $517,594 $426,998 $480,987

Operating income $113,228 $84,085 $106,761

Operating margin - as a % of net sales 21.9% 19.7% 22.2%

Net income $86,624 $57,438 $79,303

Diluted earnings per common share $0.63 $0.42 $0.58

Non-GAAP Results

Non-GAAP adjusted operating income $126,945 $104,647 $121,612

Non-GAAP adjusted operating margin - as 24.5% 24.5% 25.3%a % of net sales

Non-GAAP net income $97,123 $74,582 $91,460

Diluted non-GAAP earnings per common $0.71 $0.55 $0.67share

First-Quarter Outlook

For the first quarter ending April 3, 2021, the Company expects sales of $510 million to $525 million, net income of $83 million to $90 million and diluted earnings per common share between $0.61 and $0.66. On a non-GAAP basis, the company expects diluted earnings per common share to range from $0.69 to $0.74, reflecting net income on a non-GAAP basis in the range of $94 million to $101 million.

Segment Results

The Company reports its results in the following segments:

Specialty Chemicals and Engineered Materials (SCEM): SCEM provides 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 solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

Advanced Materials Handling (AMH): AMH develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and other substrates for a broad set of applications in the semiconductor industry, life sciences and other high-technology industries.

Fourth-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the fourth quarter on Tuesday, February 2, 2021, at 9:00 a.m. Eastern Time. Participants should dial 800-437-2398 or +1 323-289-6576, referencing confirmation code 9608918. Participants are asked to dial in 5 to 10 minutes prior to the start of the call. For a replay of the call, please Click Here using passcode 9608918.

The call can also be accessed live and on-demand from the Entegris website. Go to https://investor.entegris.com/events-and-presentations and follow the link to the webcast. The on-demand playback will be available for six weeks after the conclusion of the teleconference.

Management's slide presentation concerning the results for the third quarter, which may be referred to during the call, will be posted on the Investor Relations section of www.entegris.com Tuesday 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 is ISO 9001 certified and 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, and 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.

Forward-Looking Statements

This press 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 include statements related to future period guidance; future sales, net income, net income per diluted share, non-GAAP EPS, non-GAAP net income, expenses and other financial metrics; the Company's performance relative to its markets, including the drivers of such performance; the impact, financial or otherwise, of any organizational changes; market and technology trends, including the expected impact of the Covid-19 pandemic; the development of new products and the success of their introductions; 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; the Company's ability to execute on its strategies; and other matters. These statements involve risks and uncertainties, and actual results may differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the Covid-19 pandemic on the global economy and financial markets, as well as on the Company, our customers and suppliers, which may impact our sales, gross margin, customer demand and our ability to supply our products to our customers; 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 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; 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; operational, political and legal risks of the Company's international operations; the Company's dependence on sole source and limited source suppliers; the increasing complexity of certain manufacturing processes; raw material shortages, supply constraints and price increases; changes in government regulations of the countries in which the Company operates; fluctuation of currency exchange rates; fluctuations in the market price of the Company's stock; the level of, and obligations associated with, the Company's indebtedness; and other risk factors and additional information described in the Company's filings with the Securities and Exchange Commission, including under the heading "Risks Factors" in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed on February 7, 2020, and in the Company's other periodic filings. The Company assumes no obligation to update any forward-looking statements or information, 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

December 31, December 31, September 26, 2020 2019 2020

Net sales $ 517,594 $ 426,998 $ 480,987

Cost of sales 286,722 229,362 254,987

Gross profit 230,872 197,636 226,000

Selling, general and administrative 68,170 67,171 71,195 expenses

Engineering, research and development 37,558 30,352 36,295 expenses

Amortization of intangible assets 11,916 16,028 11,749

Operating income 113,228 84,085 106,761

Interest expense, net 12,133 12,743 12,651

Other (income) expense, net (5,305 ) 248 (1,752 )

Income before income tax expense 106,400 71,094 95,862

Income tax expense 19,776 13,656 16,559

Net income $ 86,624 $ 57,438 $ 79,303





Basic earnings per common share: $ 0.64 $ 0.43 $ 0.59

Diluted earnings per common share: $ 0.63 $ 0.42 $ 0.58



Weighted average shares outstanding:

Basic 134,945 134,778 134,957

Diluted 136,438 136,470 136,252

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Twelve months ended

December 31, 2020

December 31, 2019

Net sales

$

1,859,313

$

1,591,066

Cost of sales

1,009,591

879,413

Gross profit

849,722

711,653

Selling, general and administrative expenses

265,128

284,807

Engineering, research and development expenses

136,057

121,140

Amortization of intangible assets

53,092

66,428

Operating income

395,445

239,278

Interest expense, net

47,814

42,310

Other (income), net

(6,656

)

(121,081

)

Income before income tax expense

354,287

318,049

Income tax expense

59,318

63,189

Net income

$

294,969

$

254,860

Basic earnings per common share:

$

2.19

$

1.89

Diluted earnings per common share:

$

2.16

$

1.87

Weighted average shares outstanding:

Basic

134,837

135,137

Diluted

136,266

136,568

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Twelve months ended

December 31, December 31, 2020 2019

Net sales $ 1,859,313 $ 1,591,066

Cost of sales 1,009,591 879,413

Gross profit 849,722 711,653

Selling, general and administrative expenses 265,128 284,807

Engineering, research and development 136,057 121,140 expenses

Amortization of intangible assets 53,092 66,428

Operating income 395,445 239,278

Interest expense, net 47,814 42,310

Other (income), net (6,656 ) (121,081 )

Income before income tax expense 354,287 318,049

Income tax expense 59,318 63,189

Net income $ 294,969 $ 254,860





Basic earnings per common share: $ 2.19 $ 1.89

Diluted earnings per common share: $ 2.16 $ 1.87



Weighted average shares outstanding:

Basic 134,837 135,137

Diluted 136,266 136,568

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

December 31, 2020

December 31, 2019

ASSETS

Current assets:

Cash and cash equivalents

$

580,893

$

351,911

Trade accounts and notes receivable, net

264,392

234,409

Inventories, net

323,944

287,098

Deferred tax charges and refundable income taxes

21,136

24,552

Other current assets

43,892

34,427

Total current assets

1,234,257

932,397

Property, plant and equipment, net

525,367

479,544

Other assets:

Right-of-use assets

45,924

50,160

Goodwill

748,037

695,044

Intangible assets, net

337,632

333,952

Deferred tax assets and other noncurrent tax assets

14,519

11,245

Other

11,960

13,744

Total assets

$

2,917,696

$

2,516,086

LIABILITIES AND EQUITY

Current liabilities

Long-term debt, current maturities

$

-

$

4,000

Accounts payable

81,618

84,207

Accrued liabilities

177,012

150,118

Income tax payable

43,996

26,108

Total current liabilities

302,626

264,433

Long-term debt, excluding current maturities

1,085,783

932,484

Long-term lease liability

39,730

43,827

Other liabilities

110,063

109,453

Shareholders' equity

1,379,494

1,165,889

Total liabilities and equity

$

2,917,696

$

2,516,086

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

December 31, December 31, 2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 580,893 $ 351,911

Trade accounts and notes receivable, net 264,392 234,409

Inventories, net 323,944 287,098

Deferred tax charges and refundable income 21,136 24,552taxes

Other current assets 43,892 34,427

Total current assets 1,234,257 932,397

Property, plant and equipment, net 525,367 479,544

Other assets:

Right-of-use assets 45,924 50,160

Goodwill 748,037 695,044

Intangible assets, net 337,632 333,952

Deferred tax assets and other noncurrent tax 14,519 11,245assets

Other 11,960 13,744

Total assets $ 2,917,696 $ 2,516,086

LIABILITIES AND EQUITY

Current liabilities

Long-term debt, current maturities $ - $ 4,000

Accounts payable 81,618 84,207

Accrued liabilities 177,012 150,118

Income tax payable 43,996 26,108

Total current liabilities 302,626 264,433

Long-term debt, excluding current maturities 1,085,783 932,484

Long-term lease liability 39,730 43,827

Other liabilities 110,063 109,453

Shareholders' equity 1,379,494 1,165,889

Total liabilities and equity $ 2,917,696 $ 2,516,086

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended

Twelve months ended

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Operating activities:

Net income

$

86,624

$

57,438

$

294,969

$

254,860

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

21,366

20,352

83,430

74,975

Amortization

11,916

16,028

53,092

66,428

Stock-based compensation expense

6,368

4,714

22,920

19,629

Other

(21,500

)

(2,585

)

11,605

9,543

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

Trade accounts and notes receivable

37,906

27,241

(27,461

)

(3,164

)

Inventories

3,506

(15,665

)

(50,772

)

(21,354

)

Accounts payable and accrued liabilities

30,086

9,264

40,162

(22,647

)

Income taxes payable, refundable income taxes and noncurrent taxes payable

40,485

17,080

28,490

(3,494

)

Other

(12,739

)

(5,223

)

(9,761

)

7,522

Net cash provided by operating activities

204,018

128,644

446,674

382,298

Investing activities:

Acquisition of property and equipment

(52,192

)

(25,932

)

(131,752

)

(112,355

)

Acquisition of business, net of cash acquired

(767

)

(10,996

)

(111,912

)

(277,369

)

Other

73

1,069

338

3,884

Net cash used in investing activities

(52,886

)

(35,859

)

(243,326

)

(385,840

)

Financing activities:

Proceeds from short-term borrowings and long-term debt

-

-

617,000

-

Payments of short-term borrowings and long-term debt

-

(2,000

)

(468,000

)

(4,000

)

Payments for dividends

(10,799

)

(10,787

)

(43,245

)

(40,566

)

Issuance of common stock

3,839

2,940

8,738

7,291

Taxes paid related to net share settlement of equity awards

(244

)

(145

)

(24,800

)

(8,722

)

Repurchase and retirement of common stock

(14,999

)

(15,000

)

(44,563

)

(80,321

)

Deferred acquisition payments

-

-

(16,125

)

-

Other

-

-

(6,856

)

(502

)

Net cash (used in) provided by financing activities

(22,203

)

(24,992

)

22,149

(126,820

)

Effect of exchange rate changes on cash and cash equivalents

3,992

1,370

3,485

211

Increase (decrease) in cash and cash equivalents

132,921

69,163

228,982

(130,151

)

Cash and cash equivalents at beginning of period

447,972

282,748

351,911

482,062

Cash and cash equivalents at end of period

$

580,893

$

351,911

$

580,893

$

351,911

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended Twelve months ended

December December December 31, December 31, 31, 31, 2020 2019 2020 2019

Operating activities:

Net income $ 86,624 $ 57,438 $ 294,969 $ 254,860

Adjustments to reconcile netincome to net cash provided by operating activities:

Depreciation 21,366 20,352 83,430 74,975

Amortization 11,916 16,028 53,092 66,428

Stock-based compensation 6,368 4,714 22,920 19,629 expense

Other (21,500 ) (2,585 ) 11,605 9,543

Changes in operating assetsand liabilities, net of effects of acquisitions:

Trade accounts and notes 37,906 27,241 (27,461 ) (3,164 )receivable

Inventories 3,506 (15,665 ) (50,772 ) (21,354 )

Accounts payable and accrued 30,086 9,264 40,162 (22,647 )liabilities

Income taxes payable,refundable income taxes and 40,485 17,080 28,490 (3,494 )noncurrent taxes payable

Other (12,739 ) (5,223 ) (9,761 ) 7,522

Net cash provided by 204,018 128,644 446,674 382,298 operating activities

Investing activities:

Acquisition of property and (52,192 ) (25,932 ) (131,752 ) (112,355 )equipment

Acquisition of business, net (767 ) (10,996 ) (111,912 ) (277,369 )of cash acquired

Other 73 1,069 338 3,884

Net cash used in investing (52,886 ) (35,859 ) (243,326 ) (385,840 )activities

Financing activities:

Proceeds from short-term - - 617,000 - borrowings and long-term debt

Payments of short-term - (2,000 ) (468,000 ) (4,000 )borrowings and long-term debt

Payments for dividends (10,799 ) (10,787 ) (43,245 ) (40,566 )

Issuance of common stock 3,839 2,940 8,738 7,291

Taxes paid related to netshare settlement of equity (244 ) (145 ) (24,800 ) (8,722 )awards

Repurchase and retirement of (14,999 ) (15,000 ) (44,563 ) (80,321 )common stock

Deferred acquisition payments - - (16,125 ) -

Other - - (6,856 ) (502 )

Net cash (used in) provided (22,203 ) (24,992 ) 22,149 (126,820 )by financing activities

Effect of exchange ratechanges on cash and cash 3,992 1,370 3,485 211 equivalents

Increase (decrease) in cash 132,921 69,163 228,982 (130,151 )and cash equivalents

Cash and cash equivalents at 447,972 282,748 351,911 482,062 beginning of period

Cash and cash equivalents at $ 580,893 $ 351,911 $ 580,893 $ 351,911 end of period

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

Three months ended

Twelve months ended

Net sales

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

Specialty Chemicals and Engineered Materials

$

168,625

$

146,747

$

150,480

$

609,532

$

526,519

Microcontamination Control

205,626

169,794

193,541

742,186

633,664

Advanced Materials Handling

151,741

117,455

144,370

538,682

458,290

Inter-segment elimination

(8,398

)

(6,998

)

(7,404

)

(31,087

)

(27,407

)

Total net sales

$

517,594

$

426,998

$

480,987

$

1,859,313

$

1,591,066

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

Three months ended Twelve months ended

Net sales December December September December 31, December 31, 31, 2020 31, 2019 26, 2020 2020 2019

SpecialtyChemicals and $ 168,625 $ 146,747 $ 150,480 $ 609,532 $ 526,519 EngineeredMaterials

Microcontamination 205,626 169,794 193,541 742,186 633,664 Control

Advanced Materials 151,741 117,455 144,370 538,682 458,290 Handling

Inter-segment (8,398 ) (6,998 ) (7,404 ) (31,087 ) (27,407 )elimination

Total net sales $ 517,594 $ 426,998 $ 480,987 $ 1,859,313 $ 1,591,066

Three months ended

Twelve months ended

Segment profit

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

Specialty Chemicals and Engineered Materials

$

29,761

$

32,822

$

32,600

$

127,969

$

98,327

Microcontamination Control

71,691

57,157

64,915

248,910

194,398

Advanced Materials Handling

34,321

20,686

33,266

111,028

75,173

Total segment profit

135,773

110,665

130,781

487,907

367,898

Amortization of intangibles

11,916

16,028

11,749

53,092

66,428

Unallocated expenses

10,629

10,552

12,271

39,370

62,192

Total operating income

$

113,228

$

84,085

$

106,761

$

395,445

$

239,278

Three months ended Twelve months ended

Segment profit December December September December December 31, 2020 31, 2019 26, 2020 31, 2020 31, 2019

Specialty Chemicals and $ 29,761 $ 32,822 $ 32,600 $ 127,969 $ 98,327Engineered Materials

Microcontamination 71,691 57,157 64,915 248,910 194,398Control

Advanced Materials 34,321 20,686 33,266 111,028 75,173Handling

Total segment profit 135,773 110,665 130,781 487,907 367,898

Amortization of 11,916 16,028 11,749 53,092 66,428intangibles

Unallocated expenses 10,629 10,552 12,271 39,370 62,192

Total operating income $ 113,228 $ 84,085 $ 106,761 $ 395,445 $ 239,278

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

Three months ended

Twelve months ended

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

Net sales

$

517,594

$

426,998

$

480,987

$

1,859,313

$

1,591,066

Gross profit-GAAP

$

230,872

$

197,636

$

226,000

$

849,722

$

711,653

Adjustments to gross profit:

Integration costs

-

-

-

(1,557

)

-

Severance and restructuring costs

-

(12

)

-

465

1,336

Charge for fair value mark-up of acquired inventory sold

-

211

229

590

7,544

Adjusted gross profit

$

230,872

$

197,835

$

226,229

$

849,220

$

720,533

Gross margin - as a % of net sales

44.6

%

46.3

%

47.0

%

45.7

%

44.7

%

Adjusted gross margin - as a % of net sales

44.6

%

46.3

%

47.0

%

45.7

%

45.3

%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

Three months ended Twelve months ended

December 31, December 31, September 26, December 31, December 31, 2020 2019 2020 2020 2019

Net sales $ 517,594 $ 426,998 $ 480,987 $ 1,859,313 $ 1,591,066

Gross $ 230,872 $ 197,636 $ 226,000 $ 849,722 $ 711,653profit-GAAP

Adjustmentsto gross profit:

Integration - - - (1,557 ) -costs

Severance andrestructuring - (12 ) - 465 1,336costs

Charge forfair valuemark-up of - 211 229 590 7,544acquiredinventorysold

Adjusted $ 230,872 $ 197,835 $ 226,229 $ 849,220 $ 720,533gross profit



Gross margin- as a % of 44.6 % 46.3 % 47.0 % 45.7 % 44.7 %net sales

Adjustedgross margin 44.6 % 46.3 % 47.0 % 45.7 % 45.3 %- as a % ofnet sales

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

Three months ended

Twelve months ended

Segment profit-GAAP

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

Specialty Chemicals and Engineered Materials (SCEM)

$

29,761

$

32,822

$

32,600

$

127,969

$

98,327

Microcontamination Control (MC)

71,691

57,157

64,915

248,910

194,398

Advanced Materials Handling (AMH)

34,321

20,686

33,266

111,028

75,173

Total segment profit

135,773

110,665

130,781

487,907

367,898

Amortization of intangible assets

11,916

16,028

11,749

53,092

66,428

Unallocated expenses

10,629

10,552

12,271

39,370

62,192

Total operating income

$

113,228

$

84,085

$

106,761

$

395,445

$

239,278

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

Three months ended Twelve months ended

Segment profit-GAAP December December September December December 31, 2020 31, 2019 26, 2020 31, 2020 31, 2019

Specialty Chemicals andEngineered Materials $ 29,761 $ 32,822 $ 32,600 $ 127,969 $ 98,327(SCEM)

Microcontamination Control 71,691 57,157 64,915 248,910 194,398(MC)

Advanced Materials 34,321 20,686 33,266 111,028 75,173Handling (AMH)

Total segment profit 135,773 110,665 130,781 487,907 367,898

Amortization of intangible 11,916 16,028 11,749 53,092 66,428assets

Unallocated expenses 10,629 10,552 12,271 39,370 62,192

Total operating income $ 113,228 $ 84,085 $ 106,761 $ 395,445 $ 239,278

Three months ended

Twelve months ended

Adjusted segment profit

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

SCEM segment profit

$

29,761

$

32,822

$

32,600

$

127,969

$

98,327

Integration costs

-

-

-

(1,557

)

-

Severance and restructuring costs

155

184

277

1,061

2,846

Charge for fair value write-up of acquired inventory sold

-

(476

)

-

235

4,822

SCEM adjusted segment profit

$

29,916

$

32,530

$

32,877

$

127,708

$

105,995

MC segment profit

$

71,691

$

57,157

$

64,915

$

248,910

$

194,398

Severance and restructuring costs

167

195

301

1,152

3,896

Charge for fair value write-up of acquired inventory sold

-

687

-

126

2,722

MC adjusted segment profit

$

71,858

$

58,039

$

65,216

$

250,188

$

201,016

AMH segment profit

$

34,321

$

20,686

$

33,266

$

111,028

$

75,173

Severance and restructuring costs

121

(379

)

213

1,283

3,334

Charge for fair value write-up of acquired inventory sold

-

-

229

229

-

AMH adjusted segment profit

$

34,442

$

20,307

$

33,708

$

112,540

$

78,507

Unallocated general and administrative expenses

$

10,629

$

10,552

$

12,271

$

39,370

$

62,192

Unallocated deal and integration costs

(1,300

)

(4,323

)

(1,902

)

(7,096

)

(36,096

)

Unallocated severance and restructuring costs

(58

)

-

(180

)

(868

)

(2,418

)

Adjusted unallocated general and administrative expenses

$

9,271

$

6,229

$

10,189

$

31,406

$

23,678

Total adjusted segment profit

$

136,216

$

110,876

$

131,801

$

490,436

$

385,518

Adjusted amortization of intangible assets

-

-

-

-

-

Adjusted unallocated general and administrative expenses

9,271

6,229

10,189

31,406

23,678

Total adjusted operating income

$

126,945

$

104,647

$

121,612

$

459,030

$

361,840

Three months ended Twelve months ended

Adjusted December 31, December 31, September 26, December 31, December 31,segment profit 2020 2019 2020 2020 2019

SCEM segment $ 29,761 $ 32,822 $ 32,600 $ 127,969 $ 98,327 profit

Integration - - - (1,557 ) - costs

Severance andrestructuring 155 184 277 1,061 2,846 costs

Charge forfair valuewrite-up of - (476 ) - 235 4,822 acquiredinventory sold

SCEM adjusted $ 29,916 $ 32,530 $ 32,877 $ 127,708 $ 105,995 segment profit



MC segment $ 71,691 $ 57,157 $ 64,915 $ 248,910 $ 194,398 profit

Severance andrestructuring 167 195 301 1,152 3,896 costs

Charge forfair valuewrite-up of - 687 - 126 2,722 acquiredinventory sold

MC adjusted $ 71,858 $ 58,039 $ 65,216 $ 250,188 $ 201,016 segment profit



AMH segment $ 34,321 $ 20,686 $ 33,266 $ 111,028 $ 75,173 profit

Severance andrestructuring 121 (379 ) 213 1,283 3,334 costs

Charge forfair valuewrite-up of - - 229 229 - acquiredinventory sold

AMH adjusted $ 34,442 $ 20,307 $ 33,708 $ 112,540 $ 78,507 segment profit



Unallocatedgeneral and $ 10,629 $ 10,552 $ 12,271 $ 39,370 $ 62,192 administrativeexpenses

Unallocateddeal and (1,300 ) (4,323 ) (1,902 ) (7,096 ) (36,096 )integrationcosts

Unallocatedseverance and (58 ) - (180 ) (868 ) (2,418 )restructuringcosts

Adjustedunallocatedgeneral and $ 9,271 $ 6,229 $ 10,189 $ 31,406 $ 23,678 administrativeexpenses



Total adjusted $ 136,216 $ 110,876 $ 131,801 $ 490,436 $ 385,518 segment profit

Adjustedamortization - - - - - of intangibleassets

Adjustedunallocatedgeneral and 9,271 6,229 10,189 31,406 23,678 administrativeexpenses

Total adjustedoperating $ 126,945 $ 104,647 $ 121,612 $ 459,030 $ 361,840 income

Entegris, Inc. and Subsidiaries

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

(In thousands)

(Unaudited)

Three months ended

Twelve months ended

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

Net sales

$

517,594

$

426,998

$

480,987

$

1,859,313

$

1,591,066

Net income

$

86,624

$

57,438

$

79,303

$

294,969

$

254,860

Net income - as a % of net sales

16.7

%

13.5

%

16.5

%

15.9

%

16.0

%

Adjustments to net income:

Income tax expense

19,776

13,656

16,559

59,318

63,189

Interest expense, net

12,133

12,743

12,651

47,814

42,310

Other (income) expense, net

(5,305

)

248

(1,752

)

(6,656

)

(121,081

)

GAAP - Operating income

113,228

84,085

106,761

395,445

239,278

Operating margin - as a % of net sales

21.9

%

19.7

%

22.2

%

21.3

%

15.0

%

Charge for fair value write-up of acquired inventory sold

-

211

229

590

7,544

Deal and transaction costs

-

973

642

2,576

26,164

Integration costs

1,300

3,350

1,260

2,963

9,932

Severance and restructuring costs

501

-

971

4,364

12,494

Amortization of intangible assets

11,916

16,028

11,749

53,092

66,428

Adjusted operating income

126,945

104,647

121,612

459,030

361,840

Adjusted operating margin - as a % of net sales

24.5

%

24.5

%

25.3

%

24.7

%

22.7

%

Depreciation

21,366

20,352

20,777

83,430

74,975

Adjusted EBITDA

$

148,311

$

124,999

$

142,389

$

542,460

$

436,815

Adjusted EBITDA - as a % of net sales

28.7

%

29.3

%

29.6

%

29.2

%

27.5

%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted Operating Income and AdjustedEBITDA

(In thousands)

(Unaudited)

Three months ended Twelve months ended

December December September December 31, December 31, 31, 31, 26, 2020 2019 2020 2019 2020

Net sales $ 517,594 $ 426,998 $ 480,987 $ 1,859,313 $ 1,591,066

Net income $ 86,624 $ 57,438 $ 79,303 $ 294,969 $ 254,860

Net income -as a % of net 16.7 % 13.5 % 16.5 % 15.9 % 16.0 %sales

Adjustmentsto net income:

Income tax 19,776 13,656 16,559 59,318 63,189 expense

Interest 12,133 12,743 12,651 47,814 42,310 expense, net

Other(income) (5,305 ) 248 (1,752 ) (6,656 ) (121,081 )expense, net

GAAP -Operating 113,228 84,085 106,761 395,445 239,278 income

Operatingmargin - as a 21.9 % 19.7 % 22.2 % 21.3 % 15.0 %% of netsales

Charge forfair valuewrite-up of - 211 229 590 7,544 acquiredinventorysold

Deal andtransaction - 973 642 2,576 26,164 costs

Integration 1,300 3,350 1,260 2,963 9,932 costs

Severance andrestructuring 501 - 971 4,364 12,494 costs

Amortizationof intangible 11,916 16,028 11,749 53,092 66,428 assets

Adjustedoperating 126,945 104,647 121,612 459,030 361,840 income

Adjustedoperatingmargin - as a 24.5 % 24.5 % 25.3 % 24.7 % 22.7 %% of netsales

Depreciation 21,366 20,352 20,777 83,430 74,975

Adjusted $ 148,311 $ 124,999 $ 142,389 $ 542,460 $ 436,815 EBITDA

AdjustedEBITDA - as a 28.7 % 29.3 % 29.6 % 29.2 % 27.5 %% of netsales

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

Twelve months ended

December 31, 2020

December 31, 2019

September 26, 2020

December 31, 2020

December 31, 2019

GAAP net income

$

86,624

$

57,438

$

79,303

$

294,969

$

254,860

Adjustments to net income:

Charge for fair value write-up of inventory acquired

-

211

229

590

7,544

Deal and transaction costs

-

973

642

2,576

26,575

Integration costs

1,300

3,350

1,260

2,963

9,932

Severance and restructuring costs

501

-

971

4,364

12,494

Loss on debt extinguishment

-

1,980

908

2,378

1,980

Versum termination fee, net

-

-

-

-

(122,000

)

Amortization of intangible assets

11,916

16,028

11,749

53,092

66,428

Tax effect of legal entity restructuring

-

-

-

-

9,398

Tax effect of adjustments to net income and discrete items1

(3,218

)

(5,398

)

(3,602

)

(15,197

)

(3,124

)

Non-GAAP net income

$

97,123

$

74,582

$

91,460

$

345,735

$

264,087

Diluted earnings per common share

$

0.63

$

0.42

$

0.58

$

2.16

$

1.87

Effect of adjustments to net income

$

0.08

$

0.13

$

0.09

$

0.37

$

0.07

Diluted non-GAAP earnings per common share

$

0.71

$

0.55

$

0.67

$

2.54

$

1.93

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

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

(In thousands, except per share data)

(Unaudited)

Three months ended Twelve months ended

December December September December December 31, 31, 31, 26, 31, 2019 2020 2019 2020 2020

GAAP net income $ 86,624 $ 57,438 $ 79,303 $ 294,969 $ 254,860

Adjustments to net income:

Charge for fairvalue write-up of - 211 229 590 7,544 inventory acquired

Deal and - 973 642 2,576 26,575 transaction costs

Integration costs 1,300 3,350 1,260 2,963 9,932

Severance and 501 - 971 4,364 12,494 restructuring costs

Loss on debt - 1,980 908 2,378 1,980 extinguishment

Versum termination - - - - (122,000 )fee, net

Amortization of 11,916 16,028 11,749 53,092 66,428 intangible assets

Tax effect of legalentity - - - - 9,398 restructuring

Tax effect ofadjustments to net (3,218 ) (5,398 ) (3,602 ) (15,197 ) (3,124 )income and discreteitems^1

Non-GAAP net income $ 97,123 $ 74,582 $ 91,460 $ 345,735 $ 264,087



Diluted earnings $ 0.63 $ 0.42 $ 0.58 $ 2.16 $ 1.87 per common share

Effect ofadjustments to net $ 0.08 $ 0.13 $ 0.09 $ 0.37 $ 0.07 income

Diluted non-GAAPearnings per common $ 0.71 $ 0.55 $ 0.67 $ 2.54 $ 1.93 share

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

Reconciliation of GAAP Outlook to Non-GAAP Outlook

(In millions, except per share data)

(Unaudited)

First-Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income April 3, 2021

GAAP net income $83 - $90

Adjustments to net income:

Restructuring and integration costs 2

Amortization of intangible assets 12

Income tax effect (3 )

Non-GAAP net income $94 - $101

First-Quarter Outlook

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

April 3, 2021

Diluted earnings per common share

$0.61 - $0.66

Adjustments to diluted earnings per common share:

Restructuring and integration costs

0.01

Amortization of intangible assets

0.08

Income tax effect

(0.01

)

Diluted non-GAAP earnings per common share

$0.69 - $0.74

View source version on businesswire.com: https://www.businesswire.com/news/home/20210202005270/en/

CONTACT: Bill Seymour VP of Investor Relations T + 1 952 556 1844 bill.seymour@entegris.com