Business Wire | Oct 26, 2021 06:00AM EDT

Entegris Reports Results for Third Quarter Of 2021

Oct. 26, 2021

BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 26, 2021--Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company's third quarter ended October 2, 2021.

Third-quarter sales were $579.5 million, an increase of 20% from the same quarter last year. Third-quarter GAAP net income was $117.5 million, or $0.86 per diluted share, which included $11.8 million of amortization of intangible assets and $1.3 million of integration costs. Non-GAAP net income was $125.4 million for the third quarter and non-GAAP earnings per diluted share was $0.92.

Bertrand Loy, Entegris' president and chief executive officer, said: "In the third quarter, we continued to deliver on our growth strategy in a very dynamic supply chain environment. I am proud that we have been able to achieve over 23 percent organic sales growth year-to-date."

Mr. Loy added: "While we expect some of the supply chain issues to linger, the record demand for our solution set continues and we are maintaining our outlook for the full year 2021. Looking further ahead, we have a high degree of conviction in our growth prospects, driven by positive secular trends in the semiconductor market and the accelerating pace of transition to more complex device architectures. We believe this is uniquely favorable to our company, because the capabilities we have built around process materials and materials purity will be indispensable enablers of these new chip architectures and will translate into a steadily expanding Entegris content per wafer."

Quarterly Financial Results Summary

(in thousands, except percentages and per share data)

GAAP Results October 2, September 26, July 3, 2021 2020 2021

Net sales $579,493 $480,987 $571,352

Operating income $139,357 $106,761 $138,889

Operating margin - as a % of net sales 24.0% 22.2% 24.3%

Net income $117,461 $79,303 $88,770

Diluted earnings per common share $0.86 $0.58 $0.65

Non-GAAP Results

Non-GAAP adjusted operating income $152,696 $121,612 $151,603

Non-GAAP adjusted operating margin - as a 26.3% 25.3% 26.5%% of net sales

Non-GAAP net income $125,383 $91,460 $116,711

Diluted non-GAAP earnings per common share $0.92 $0.67 $0.85

Fourth-Quarter Outlook

For the fourth quarter ending December 31, 2021, the Company expects sales of $580 million to $600 million, net income of $109 million to $116 million and diluted earnings per common share between $0.80 and $0.85. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.87 to $0.92, reflecting net income on a non-GAAP basis in the range of $119 million to $126 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, life sciences and other high-technology industries.

Third-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the third quarter on Tuesday, October 26, 2021, at 9:00 a.m. Eastern Time. Participants should dial 800-437-2398 or +1 323-289-6576, referencing confirmation code 9127390. 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 9127390.

The call can also be accessed live and on-demand from the Entegris website. Go here 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 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, 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 the impact of the COVID-19 pandemic on the Company's operations and markets, including supply chain issues related thereto; future period guidance; future sales, net income, diluted earnings per common share, non-GAAP diluted earnings per share, 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 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; raw material shortages, supply and labor constraints and price increases; 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; 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 foreign and national security policy, especially as they relate to China; 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, 2020, filed on February 5, 2021, and in the Company's other periodic filings. The Company assumes no obligation to update any forward-looking statements or information contained herein, which speak as of their respective dates.

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three months ended

October 2, September 26, July 3, 2021 2020 2021

Net sales $579,493 $480,987 $571,352

Cost of sales 315,289 254,987 305,968

Gross profit 264,204 226,000 265,384

Selling, general and administrative 71,032 71,195 72,621expenses

Engineering, research and development 41,972 36,295 41,972expenses

Amortization of intangible assets 11,843 11,749 11,902

Operating income 139,357 106,761 138,889

Interest expense, net 9,339 12,651 10,643

Other expense (income), net 1,917 (1,752) 23,560

Income before income tax expense 128,101 95,862 104,686

Income tax expense 10,640 16,559 15,916

Net income $117,461 $79,303 $88,770





Basic earnings per common share: $0.87 $0.59 $0.66

Diluted earnings per common share: $0.86 $0.58 $0.65



Weighted average shares outstanding:

Basic 135,583 134,957 135,498

Diluted 136,631 136,252 136,533

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Nine months ended

October 2, 2021

September 26, 2020

Net sales

$1,663,689

$1,341,719

Cost of sales

899,115

722,869

Gross profit

764,574

618,850

Selling, general and administrative expenses

215,042

196,958

Engineering, research and development expenses

121,692

98,499

Amortization of intangible assets

35,616

41,176

Operating income

392,224

282,217

Interest expense, net

31,563

35,681

Other expense (income), net

29,807

(1,351)

Income before income tax expense

330,854

247,887

Income tax expense

39,947

39,542

Net income

$290,907

$208,345

Basic earnings per common share:

$2.15

$1.55

Diluted earnings per common share:

$2.13

$1.53

Weighted average shares outstanding:

Basic

135,383

134,801

Diluted

136,556

136,209

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Nine months ended

October 2, 2021 September 26, 2020

Net sales $1,663,689 $1,341,719

Cost of sales 899,115 722,869

Gross profit 764,574 618,850

Selling, general and administrative expenses 215,042 196,958

Engineering, research and development 121,692 98,499expenses

Amortization of intangible assets 35,616 41,176

Operating income 392,224 282,217

Interest expense, net 31,563 35,681

Other expense (income), net 29,807 (1,351)

Income before income tax expense 330,854 247,887

Income tax expense 39,947 39,542

Net income $290,907 $208,345





Basic earnings per common share: $2.15 $1.55

Diluted earnings per common share: $2.13 $1.53



Weighted average shares outstanding:

Basic 135,383 134,801

Diluted 136,556 136,209

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

October 2, 2021

December 31, 2020

ASSETS

Current assets:

Cash and cash equivalents

$475,752

$580,893

Trade accounts and notes receivable, net

315,073

264,392

Inventories, net

429,016

323,944

Deferred tax charges and refundable income taxes

21,760

21,136

Other current assets

34,104

43,892

Total current assets

1,275,705

1,234,257

Property, plant and equipment, net

597,630

525,367

Other assets:

Right-of-use assets

56,990

45,924

Goodwill

749,933

748,037

Intangible assets, net

302,487

337,632

Deferred tax assets and other noncurrent tax assets

17,565

14,519

Other

11,965

11,960

Total assets

$3,012,275

$2,917,696

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$120,611

$81,618

Accrued liabilities

181,813

177,012

Income tax payable

6,989

43,996

Total current liabilities

309,413

302,626

Long-term debt, excluding current maturities

936,704

1,085,783

Long-term lease liability

52,486

39,730

Other liabilities

102,892

110,063

Shareholders' equity

1,610,780

1,379,494

Total liabilities and equity

$3,012,275

$2,917,696

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

October 2, 2021 December 31, 2020

ASSETS

Current assets:

Cash and cash equivalents $475,752 $580,893

Trade accounts and notes receivable, net 315,073 264,392

Inventories, net 429,016 323,944

Deferred tax charges and refundable income 21,760 21,136taxes

Other current assets 34,104 43,892

Total current assets 1,275,705 1,234,257

Property, plant and equipment, net 597,630 525,367

Other assets:

Right-of-use assets 56,990 45,924

Goodwill 749,933 748,037

Intangible assets, net 302,487 337,632

Deferred tax assets and other noncurrent tax 17,565 14,519assets

Other 11,965 11,960

Total assets $3,012,275 $2,917,696

LIABILITIES AND EQUITY

Current liabilities

Accounts payable $120,611 $81,618

Accrued liabilities 181,813 177,012

Income tax payable 6,989 43,996

Total current liabilities 309,413 302,626

Long-term debt, excluding current maturities 936,704 1,085,783

Long-term lease liability 52,486 39,730

Other liabilities 102,892 110,063

Shareholders' equity 1,610,780 1,379,494

Total liabilities and equity $3,012,275 $2,917,696

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended

Nine months ended

October 2, 2021

September 26, 2020

October 2, 2021

September 26, 2020

Operating activities:

Net income

$117,461

$79,303

$290,907

$208,345

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

Depreciation

22,841

20,777

67,510

62,064

Amortization

11,843

11,749

35,616

41,176

Stock-based compensation expense

7,467

5,903

22,124

16,552

Loss on extinguishment of debt and modification

-

908

23,338

2,378

Other

(1,773)

19,302

(1,976)

30,727

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

Trade accounts and notes receivable

(5,127)

(23,280)

(53,358)

(65,367)

Inventories

(45,464)

1,084

(115,187)

(54,278)

Accounts payable and accrued liabilities

52,924

4,433

37,577

10,076

Income taxes payable, refundable income taxes and noncurrent taxes payable

(8,833)

(16,407)

(35,275)

(11,995)

Other

(1,835)

(2,540)

13,198

2,978

Net cash provided by operating activities

149,504

101,232

284,474

242,656

Investing activities:

Acquisition of property and equipment

(48,885)

(32,687)

(133,986)

(79,560)

Acquisition of business, net of cash acquired

-

(35,500)

(2,250)

(111,145)

Other

4,326

54

4,416

265

Net cash used in investing activities

(44,559)

(68,133)

(131,820)

(190,440)

Financing activities:

Proceeds from revolving credit facility and long-term debt

-

-

451,000

617,000

Payments of revolving credit facility and long-term debt

-

(100,000)

(601,000)

(468,000)

Payments for debt extinguishment costs

-

-

(19,080)

-

Payments for dividends

(10,853)

(10,794)

(32,650)

(32,446)

Issuance of common stock

1,055

3,150

17,872

4,899

Taxes paid related to net share settlement of equity awards

(275)

(11,836)

(15,368)

(24,556)

Repurchase and retirement of common stock

(20,000)

-

(50,000)

(29,564)

Deferred acquisition payments

-

-

-

(16,125)

Other

(486)

(1)

(5,287)

(6,856)

Net cash (used in) provided by financing activities

(30,559)

(119,481)

(254,513)

44,352

Effect of exchange rate changes on cash and cash equivalents

333

1,687

(3,282)

(507)

Increase (decrease) in cash and cash equivalents

74,719

(84,695)

(105,141)

96,061

Cash and cash equivalents at beginning of period

401,033

532,667

580,893

351,911

Cash and cash equivalents at end of period

$475,752

$447,972

$475,752

$447,972

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended Nine months ended

October September October September 2, 2021 26, 2020 2, 2021 26, 2020

Operating activities:

Net income $117,461 $79,303 $290,907 $208,345

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

Depreciation 22,841 20,777 67,510 62,064

Amortization 11,843 11,749 35,616 41,176

Stock-based compensation expense 7,467 5,903 22,124 16,552

Loss on extinguishment of debt and - 908 23,338 2,378modification

Other (1,773) 19,302 (1,976) 30,727

Changes in operating assets andliabilities, net of effects of acquisitions:

Trade accounts and notes receivable (5,127) (23,280) (53,358) (65,367)

Inventories (45,464) 1,084 (115,187) (54,278)

Accounts payable and accrued liabilities 52,924 4,433 37,577 10,076

Income taxes payable, refundable income (8,833) (16,407) (35,275) (11,995)taxes and noncurrent taxes payable

Other (1,835) (2,540) 13,198 2,978

Net cash provided by operating 149,504 101,232 284,474 242,656activities

Investing activities:

Acquisition of property and equipment (48,885) (32,687) (133,986) (79,560)

Acquisition of business, net of cash - (35,500) (2,250) (111,145)acquired

Other 4,326 54 4,416 265

Net cash used in investing activities (44,559) (68,133) (131,820) (190,440)

Financing activities:

Proceeds from revolving credit facility - - 451,000 617,000and long-term debt

Payments of revolving credit facility - (100,000) (601,000) (468,000)and long-term debt

Payments for debt extinguishment costs - - (19,080) -

Payments for dividends (10,853) (10,794) (32,650) (32,446)

Issuance of common stock 1,055 3,150 17,872 4,899

Taxes paid related to net share (275) (11,836) (15,368) (24,556)settlement of equity awards

Repurchase and retirement of common (20,000) - (50,000) (29,564)stock

Deferred acquisition payments - - - (16,125)

Other (486) (1) (5,287) (6,856)

Net cash (used in) provided by financing (30,559) (119,481) (254,513) 44,352activities

Effect of exchange rate changes on cash 333 1,687 (3,282) (507)and cash equivalents

Increase (decrease) in cash and cash 74,719 (84,695) (105,141) 96,061equivalents

Cash and cash equivalents at beginning 401,033 532,667 580,893 351,911of period

Cash and cash equivalents at end of $475,752 $447,972 $475,752 $447,972period

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

Three months ended

Nine months ended

Net sales

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

Specialty Chemicals and Engineered Materials

$176,380

$150,480

$180,366

$523,287

$440,907

Microcontamination Control

225,877

193,541

227,521

660,497

536,560

Advanced Materials Handling

186,200

144,370

172,502

507,243

386,941

Inter-segment elimination

(8,964)

(7,404)

(9,037)

(27,338)

(22,689)

Total net sales

$579,493

$480,987

$571,352

$1,663,689

$1,341,719

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

Three months ended Nine months ended

Net sales October September July 3, October 2, September 2, 2021 26, 2020 2021 2021 26, 2020

Specialty Chemicals and $176,380 $150,480 $180,366 $523,287 $440,907Engineered Materials

Microcontamination 225,877 193,541 227,521 660,497 536,560Control

Advanced Materials 186,200 144,370 172,502 507,243 386,941Handling

Inter-segment elimination (8,964) (7,404) (9,037) (27,338) (22,689)

Total net sales $579,493 $480,987 $571,352 $1,663,689 $1,341,719

Three months ended

Nine months ended

Segment profit

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

Specialty Chemicals and Engineered Materials

$41,091

$32,600

$44,945

$120,592

$98,208

Microcontamination Control

78,399

64,915

78,132

227,097

177,219

Advanced Materials Handling

40,503

33,266

42,093

114,691

76,707

Total segment profit

159,993

130,781

165,170

462,380

352,134

Amortization of intangibles

11,843

11,749

11,902

35,616

41,176

Unallocated expenses

8,793

12,271

14,379

34,540

28,741

Total operating income

$139,357

$106,761

$138,889

$392,224

$282,217

Three months ended Nine months ended

Segment profit October September July 3, October September 2, 2021 26, 2020 2021 2, 2021 26, 2020

Specialty Chemicals and $41,091 $32,600 $44,945 $120,592 $98,208Engineered Materials

Microcontamination Control 78,399 64,915 78,132 227,097 177,219

Advanced Materials 40,503 33,266 42,093 114,691 76,707Handling

Total segment profit 159,993 130,781 165,170 462,380 352,134

Amortization of 11,843 11,749 11,902 35,616 41,176intangibles

Unallocated expenses 8,793 12,271 14,379 34,540 28,741

Total operating income $139,357 $106,761 $138,889 $392,224 $282,217

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

Three months ended

Nine months ended

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

Net sales

$579,493

$480,987

$571,352

$1,663,689

$1,341,719

Gross profit-GAAP

$264,204

$226,000

$265,384

$764,574

$618,850

Adjustments to gross profit:

Integration costs

-

-

-

-

(1,557)

Severance and restructuring costs

-

-

-

-

465

Charge for fair value mark-up of acquired inventory sold

-

229

-

-

590

Adjusted gross profit

$264,204

$226,229

$265,384

$764,574

$618,348

Gross margin - as a % of net sales

45.6%

47.0%

46.4%

46.0%

46.1%

Adjusted gross margin - as a % of net sales

45.6%

47.0%

46.4%

46.0%

46.1%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Gross Profit to Adjusted Gross Profit

(In thousands)

(Unaudited)

Three months ended Nine months ended

October September July 3, October 2, September 2, 2021 26, 2020 2021 2021 26, 2020

Net sales $579,493 $480,987 $571,352 $1,663,689 $1,341,719

Gross profit-GAAP $264,204 $226,000 $265,384 $764,574 $618,850

Adjustments to gross profit:

Integration costs - - - - (1,557)

Severance and restructuring - - - - 465costs

Charge for fair valuemark-up of acquired - 229 - - 590inventory sold

Adjusted gross profit $264,204 $226,229 $265,384 $764,574 $618,348



Gross margin - as a % of 45.6% 47.0% 46.4% 46.0% 46.1%net sales

Adjusted gross margin - as 45.6% 47.0% 46.4% 46.0% 46.1%a % of net sales

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

Three months ended

Nine months ended

Segment profit-GAAP

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

Specialty Chemicals and Engineered Materials (SCEM)

$41,091

$32,600

$44,945

$120,592

$98,208

Microcontamination Control (MC)

78,399

64,915

78,132

227,097

177,219

Advanced Materials Handling (AMH)

40,503

33,266

42,093

114,691

76,707

Total segment profit

159,993

130,781

165,170

462,380

352,134

Amortization of intangible assets

11,843

11,749

11,902

35,616

41,176

Unallocated expenses

8,793

12,271

14,379

34,540

28,741

Total operating income

$139,357

$106,761

$138,889

$392,224

$282,217

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Segment Profit to Adjusted Operating Income

(In thousands)

(Unaudited)

Three months ended Nine months ended

Segment profit-GAAP October September July 3, October September 2, 2021 26, 2020 2021 2, 2021 26, 2020

Specialty Chemicals and $41,091 $32,600 $44,945 $120,592 $98,208Engineered Materials (SCEM)

Microcontamination Control 78,399 64,915 78,132 227,097 177,219(MC)

Advanced Materials Handling 40,503 33,266 42,093 114,691 76,707(AMH)

Total segment profit 159,993 130,781 165,170 462,380 352,134

Amortization of intangible 11,843 11,749 11,902 35,616 41,176assets

Unallocated expenses 8,793 12,271 14,379 34,540 28,741

Total operating income $139,357 $106,761 $138,889 $392,224 $282,217

Three months ended

Nine months ended

Adjusted segment profit

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

SCEM segment profit

$41,091

$32,600

$44,945

$120,592

$98,208

Integration costs

-

-

-

-

(1,557)

Severance and restructuring costs

69

277

51

167

906

Charge for fair value write-up of acquired inventory sold

-

-

-

-

235

SCEM adjusted segment profit

$41,160

$32,877

$44,996

$120,759

$97,792

MC segment profit

$78,399

$64,915

$78,132

$227,097

$177,219

Severance and restructuring costs

75

301

55

181

985

Charge for fair value write-up of acquired inventory sold

-

-

-

-

126

MC adjusted segment profit

$78,474

$65,216

$78,187

$227,278

$178,330

AMH segment profit

$40,503

$33,266

$42,093

$114,691

$76,707

Severance and restructuring costs

52

213

38

127

1,162

Charge for fair value write-up of acquired inventory sold

-

229

-

-

229

AMH adjusted segment profit

$40,555

$33,708

$42,131

$114,818

$78,098

Unallocated general and administrative expenses

$8,793

$12,271

$14,379

$34,540

$28,741

Unallocated deal and integration costs

(1,290)

(1,902)

(632)

(3,966)

(5,796)

Unallocated severance and restructuring costs

(10)

(180)

(36)

(54)

(810)

Adjusted unallocated general and administrative expenses

$7,493

$10,189

$13,711

$30,520

$22,135

Total adjusted segment profit

$160,189

$131,801

$165,314

$462,855

$354,220

Adjusted amortization of intangible assets

-

-

-

-

-

Adjusted unallocated general and administrative expenses

7,493

10,189

13,711

30,520

22,135

Total adjusted operating income

$152,696

$121,612

$151,603

$432,335

$332,085

Three months ended Nine months ended

Adjusted segment profit October September July 3, October September 2, 2021 26, 2020 2021 2, 2021 26, 2020

SCEM segment profit $41,091 $32,600 $44,945 $120,592 $98,208

Integration costs - - - - (1,557)

Severance and restructuring 69 277 51 167 906costs

Charge for fair value write-up - - - - 235of acquired inventory sold

SCEM adjusted segment profit $41,160 $32,877 $44,996 $120,759 $97,792



MC segment profit $78,399 $64,915 $78,132 $227,097 $177,219

Severance and restructuring 75 301 55 181 985costs

Charge for fair value write-up - - - - 126of acquired inventory sold

MC adjusted segment profit $78,474 $65,216 $78,187 $227,278 $178,330



AMH segment profit $40,503 $33,266 $42,093 $114,691 $76,707

Severance and restructuring 52 213 38 127 1,162costs

Charge for fair value write-up - 229 - - 229of acquired inventory sold

AMH adjusted segment profit $40,555 $33,708 $42,131 $114,818 $78,098



Unallocated general and $8,793 $12,271 $14,379 $34,540 $28,741administrative expenses

Unallocated deal and (1,290) (1,902) (632) (3,966) (5,796)integration costs

Unallocated severance and (10) (180) (36) (54) (810)restructuring costs

Adjusted unallocated general $7,493 $10,189 $13,711 $30,520 $22,135and administrative expenses



Total adjusted segment profit $160,189 $131,801 $165,314 $462,855 $354,220

Adjusted amortization of - - - - -intangible assets

Adjusted unallocated general 7,493 10,189 13,711 30,520 22,135and administrative expenses

Total adjusted operating $152,696 $121,612 $151,603 $432,335 $332,085income



Entegris, Inc. and Subsidiaries

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

(In thousands)

(Unaudited)

Three months ended

Nine months ended

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

Net sales

$579,493

$480,987

$571,352

$1,663,689

$1,341,719

Net income

$117,461

$79,303

$88,770

$290,907

$208,345

Net income - as a % of net sales

20.3%

16.5%

15.5%

17.5%

15.5%

Adjustments to net income:

Income tax expense

10,640

16,559

15,916

39,947

39,542

Interest expense, net

9,339

12,651

10,643

31,563

35,681

Other expense (income), net

1,917

(1,752)

23,560

29,807

(1,351)

GAAP - Operating income

139,357

106,761

138,889

392,224

282,217

Operating margin - as a % of net sales

24.0%

22.2%

24.3%

23.6%

21.0%

Charge for fair value write-up of acquired inventory sold

-

229

-

-

590

Deal and transaction costs

-

642

-

-

2,576

Integration costs

1,290

1,260

632

3,966

1,663

Severance and restructuring costs

206

971

180

529

3,863

Amortization of intangible assets

11,843

11,749

11,902

35,616

41,176

Adjusted operating income

152,696

121,612

151,603

432,335

332,085

Adjusted operating margin - as a % of net sales

26.3%

25.3%

26.5%

26.0%

24.8%

Depreciation

22,841

20,777

22,574

67,510

62,064

Adjusted EBITDA

$175,537

$142,389

$174,177

$499,845

$394,149

Adjusted EBITDA - as a % of net sales

30.3%

29.6%

30.5%

30.0%

29.4%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted Operating Income and AdjustedEBITDA

(In thousands)

(Unaudited)

Three months ended Nine months ended

October September July 3, October 2, September 2, 2021 26, 2020 2021 2021 26, 2020

Net sales $579,493 $480,987 $571,352 $1,663,689 $1,341,719

Net income $117,461 $79,303 $88,770 $290,907 $208,345

Net income - as a % of net 20.3% 16.5% 15.5% 17.5% 15.5%sales

Adjustments to net income:

Income tax expense 10,640 16,559 15,916 39,947 39,542

Interest expense, net 9,339 12,651 10,643 31,563 35,681

Other expense (income), net 1,917 (1,752) 23,560 29,807 (1,351)

GAAP - Operating income 139,357 106,761 138,889 392,224 282,217

Operating margin - as a % 24.0% 22.2% 24.3% 23.6% 21.0%of net sales

Charge for fair valuewrite-up of acquired - 229 - - 590inventory sold

Deal and transaction costs - 642 - - 2,576

Integration costs 1,290 1,260 632 3,966 1,663

Severance and restructuring 206 971 180 529 3,863costs

Amortization of intangible 11,843 11,749 11,902 35,616 41,176assets

Adjusted operating income 152,696 121,612 151,603 432,335 332,085

Adjusted operating margin - 26.3% 25.3% 26.5% 26.0% 24.8%as a % of net sales

Depreciation 22,841 20,777 22,574 67,510 62,064

Adjusted EBITDA $175,537 $142,389 $174,177 $499,845 $394,149

Adjusted EBITDA - as a % of 30.3% 29.6% 30.5% 30.0% 29.4%net sales

Entegris, Inc. and Subsidiaries

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

(In thousands, except per share data)

(Unaudited)

Three months ended

Nine months ended

October 2, 2021

September 26, 2020

July 3, 2021

October 2, 2021

September 26, 2020

GAAP net income

$117,461

$79,303

$88,770

$290,907

$208,345

Adjustments to net income:

Charge for fair value write-up of inventory acquired

-

229

-

-

590

Deal and transaction costs

-

642

-

-

2,576

Integration costs

1,290

1,260

632

3,966

1,663

Severance and restructuring costs

206

971

180

529

3,863

Loss on extinguishment of debt and modification

-

908

23,338

23,338

2,378

Amortization of intangible assets

11,843

11,749

11,902

35,616

41,176

Tax effect of adjustments to net income and discrete items1

(5,417)

(3,602)

(8,111)

(16,749)

(11,979)

Non-GAAP net income

$125,383

$91,460

$116,711

$337,607

$248,612

Diluted earnings per common share

$0.86

$0.58

$0.65

$2.13

$1.53

Effect of adjustments to net income

$0.06

$0.09

$0.20

$0.34

$0.30

Diluted non-GAAP earnings per common share

$0.92

$0.67

$0.85

$2.47

$1.83

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 Nine months ended

October September July 3, October September 2, 2021 26, 2020 2021 2, 2021 26, 2020

GAAP net income $117,461 $79,303 $88,770 $290,907 $208,345

Adjustments to net income:

Charge for fair value write-up - 229 - - 590of inventory acquired

Deal and transaction costs - 642 - - 2,576

Integration costs 1,290 1,260 632 3,966 1,663

Severance and restructuring 206 971 180 529 3,863costs

Loss on extinguishment of debt - 908 23,338 23,338 2,378and modification

Amortization of intangible 11,843 11,749 11,902 35,616 41,176assets

Tax effect of adjustments tonet income and discrete items^ (5,417) (3,602) (8,111) (16,749) (11,979)1

Non-GAAP net income $125,383 $91,460 $116,711 $337,607 $248,612



Diluted earnings per common $0.86 $0.58 $0.65 $2.13 $1.53share

Effect of adjustments to net $0.06 $0.09 $0.20 $0.34 $0.30income

Diluted non-GAAP earnings per $0.92 $0.67 $0.85 $2.47 $1.83common 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)

Fourth-Quarter Outlook

Reconciliation GAAP net income to non-GAAP net income December 31, 2021

GAAP net income $109 - $116

Adjustments to net income:

Restructuring and integration costs 2

Amortization of intangible assets 10

Income tax effect (2)

Non-GAAP net income $119 - $126

Fourth-Quarter Outlook

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

December 31, 2021

Diluted earnings per common share

$0.80 - $0.85

Adjustments to diluted earnings per common share:

Restructuring and integration costs

0.01

Amortization of intangible assets

0.08

Income tax effect

(0.02)

Diluted non-GAAP earnings per common share

$0.87 - $0.92

View source version on businesswire.com: https://www.businesswire.com/news/home/20211026005286/en/

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