ENTEGRIS INC - FORM 8-K - EX-99.1 - REVISED FINANCIAL STATEMENTS - February 14, 2012

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Exhibit 99.1

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended  
     December 31,
2011		     October 1,
2011		     December 31,
2010		  

Net sales

    $ 163,922      $ 173,014      $ 182,100   

Cost of sales

      96,308        98,186        101,591   
  

 

 

    

 

 

    

 

 

  

Gross profit

      67,614        74,828        80,509   

Selling, general and administrative expenses

      32,398        33,533        38,199   

Engineering, research and development expenses

      11,029        11,957        10,997   

Amortization of intangible assets

      2,462        2,505        2,772   
  

 

 

    

 

 

    

 

 

  

Operating income

      21,725        26,833        28,541   

Interest expense (income), net

      9        (38 )      306   

Other (income) expense, net

      (102 )      315        (271 ) 
  

 

 

    

 

 

    

 

 

  

Income before income taxes and equity in affiliates

      21,818        26,556        28,506   

Income tax (benefit) expense

      (18,333 )      4,582        (196 ) 

Equity in net (income) loss of affiliates

      (10 )      (14 )      1,838   
  

 

 

    

 

 

    

 

 

  

Net income

      40,161        21,988        26,864   

Net loss attributable to noncontrolling interest

      —          —          (139 ) 
  

 

 

    

 

 

    

 

 

  

Net income attributable to Entegris, Inc.

    $ 40,161      $ 21,988      $ 27,003   
  

 

 

    

 

 

    

 

 

  

Amounts attributable to Entegris, Inc.:

       

Basic net income per common share:

    $ 0.30      $ 0.16      $ 0.20   

Diluted net income per common share:

    $ 0.29      $ 0.16      $ 0.20   

Weighted average shares outstanding:

       

Basic

      135,509        134,995        132,314   

Diluted

      137,032        136,305        133,971   

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Twelve months ended  
     December 31,
2011		     December 31,
2010		  

Net sales

    $ 749,259      $ 688,416   

Cost of sales

      423,329        377,773   
  

 

 

    

 

 

  

Gross profit

      325,930        310,643   

Selling, general and administrative expenses

      140,847        147,051   

Engineering, research and development expenses

      47,980        43,934   

Amortization of intangible assets

      10,225        13,231   
  

 

 

    

 

 

  

Operating income

      126,878        106,427   

Interest expense, net

      659        3,516   

Other (income) expense, net

      (1,745 )      1,430   
  

 

 

    

 

 

  

Income before income taxes

      127,964        101,481   

Income tax expense

      4,217        15,006   

Equity in net (income) loss of affiliates

      (499 )      1,353   
  

 

 

    

 

 

  

Net income

      124,246        85,122   

Net income attributable to noncontrolling interest

      400        766   
  

 

 

    

 

 

  

Net income attributable to Entegris, Inc.

    $ 123,846      $ 84,356   
  

 

 

    

 

 

  

Amounts attributable to Entegris, Inc.:

     

Basic net income per common share:

    $ 0.92      $ 0.64   

Diluted net income per common share:

    $ 0.91      $ 0.63   

Weighted average shares outstanding:

     

Basic

      134,685        131,685   

Diluted

      136,223        133,174   

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     December 31, 2011      December 31, 2010  

ASSETS

      

Cash and cash equivalents

    $ 273,593       $ 133,954   

Accounts receivable, net

      107,223         124,732   

Inventories

      93,937         101,043   

Deferred tax assets, deferred tax charges and refundable income taxes

      15,805         11,484   

Other current assets and assets held for sale

      12,441         15,878   
  

 

 

     

 

 

  

Total current assets

      502,999         387,091   

Property, plant and equipment, net

      130,554         126,725   

Intangible assets

      56,453         65,087   

Deferred tax assets – non-current

      25,119         10,855   

Other assets

      9,538         11,627   
  

 

 

     

 

 

  

Total assets

    $ 724,663       $ 601,385   
  

 

 

     

 

 

  

LIABILITIES AND EQUITY

      

Accounts payable

    $ 30,609       $ 34,631   

Accrued liabilities

      47,841         59,503   

Income tax payable and deferred tax liabilities

      14,144         13,500   
  

 

 

     

 

 

  

Total current liabilities

      92,594         107,634   

Other liabilities

      23,831         29,738   

Equity

      608,238         464,013   
  

 

 

     

 

 

  

Total liabilities and equity

    $ 724,663       $ 601,385   
  

 

 

     

 

 

  

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2011		     December 31,
2010		     December 31,
2011		     December 31,
2010		  

Operating activities:

         

Net income

    $ 40,161      $ 26,864      $ 124,246      $ 85,122   

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

         

Depreciation

      6,547        7,322        26,839        27,967   

Amortization

      2,462        2,772        10,225        13,231   

Stock-based compensation expense

      1,735        2,154        7,519        7,588   

Deferred tax valuation allowance and other tax items

      (19,254 )      (5,017 )      (19,367 )      (2,953 ) 

Other

      978        2,881        541        2,676   

Changes in operating assets and liabilities:

         

Trade accounts and notes receivable

      3,652        971        19,336        (26,789 ) 

Inventories

      7,836        (3,056 )      3,632        (14,285 ) 

Accounts payable and accrued liabilities

      (289 )      2,509        (15,127 )      34,860   

Income taxes payable and refundable income taxes

      418        4,813        (433 )      13,243   

Other

      270        (2,229 )      (125 )      238   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      44,516        39,984        157,286        140,898   
  

 

 

    

 

 

    

 

 

    

 

 

  

Investing activities:

         

Acquisition of property and equipment

      (6,121 )      (4,635 )      (30,267 )      (16,794 ) 

Other

      2,440        317        1,836        4,809   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

      (3,681 )      (4,318 )      (28,431 )      (11,985 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Financing activities:

         

Payments on short-term borrowings and long-term debt

      —          (6,203 )      —          (259,157 ) 

Proceeds from short-term and long-term borrowings

      —          —          —          186,649   

Issuance of common stock

      6,034        5,136        11,690        6,799   

Other

      259        85        (826 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      6,293        (982 )      10,864        (65,709 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rate changes on cash

      (572 )      456        (80 )      2,050   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase in cash and cash equivalents

      46,556        35,140        139,639        65,254   

Cash and cash equivalents at beginning of period

      227,037        98,814        133,954        68,700   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 273,593      $ 133,954      $ 273,593      $ 133,954   
  

 

 

    

 

 

    

 

 

    

 

 

  

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

 

     Three Months Ended      Twelve Months Ended  

Net sales

    December 31,
2011		      October 1,
2011		      December 31,
2010		      December 31,
2011		      December 31,
2010		  

Contamination Control Solutions

    $ 105,062       $ 110,015       $ 118,106       $ 483,958       $ 435,858   

Microenvironments

      40,116         42,738         45,772         182,150         182,485   

Specialty Materials

      18,744         20,261         18,222         83,151         70,073   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total net sales

    $ 163,922       $ 173,014       $ 182,100       $ 749,259       $ 688,416   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Three Months Ended     Twelve Months Ended  

Segment profit

    December 31,
2011		     October 1,
2011		     December 31,
2010		     December 31,
2011		     December 31,
2010		  

Contamination Control Solutions

    $ 26,082      $ 29,522      $ 34,609      $ 140,313      $ 122,891   

Microenvironments

      6,201        6,790        7,602        29,959        38,930   

Specialty Materials

      4,340        4,675        2,847        18,255        11,080   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total segment profit

      36,623        40,987        45,058        188,527        172,901   

Amortization of intangibles

      (2,462 )      (2,505 )      (2,772 )      (10,225 )      (13,231 ) 

Unallocated expenses

      (12,436 )      (11,649 )      (13,745 )      (51,424 )      (53,243 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

    $ 21,725      $ 26,833      $ 28,541      $ 126,878      $ 106,427   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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,
2011		     October 1,
2011		     December 31,
2010		     December 31,
2011		     December 31,
2010		  

Net sales

    $ 163,922      $ 173,014      $ 182,100      $ 749,259      $ 688,416   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Entegris, Inc.

    $ 40,161      $ 21,988      $ 27,003      $ 123,846      $ 84,356   

Adjustments to net income attributable to Entegris, Inc.

           

Net (loss) income attributable to noncontrolling interest

      —          —          (139 )      400        766   

Equity in net (income) loss of affiliates

      (10 )      (14 )      1,838        (499 )      1,353   

Income tax (benefit) expense

      (18,333 )      4,582        (196 )      4,217        15,006   

Other (income) expense, net

      (102 )      315        (271 )      (1,745 )      1,430   

Interest expense (income), net

      9        (38 )      306        659        3,516   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GAAP – Operating income

      21,725        26,833        28,541        126,878        106,427   

Amortization of intangible assets

      2,462        2,505        2,772        10,225        13,231   

Gain associated with pension curtailment

      —          (726 )      —          (726 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted operating income

      24,187        28,612        31,313        136,377        119,658   

Depreciation

      6,547        6,763        7,322        26,839        27,967   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 30,734      $ 35,375      $ 38,635      $ 163,216      $ 147,625   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted operating margin

      14.8 %      16.5 %      17.2 %      18.2 %      17.4 % 

Adjusted EBITDA – as a % of net sales

      18.7 %      20.4 %      21.2 %      21.8 %      21.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Earnings per Share

(In thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2011		     October 1,
2011		     December 31,
2010		     December 31,
2011		     December 31,
2010		  

GAAP net income attributable to Entegris, Inc.

    $ 40,161      $ 21,988      $ 27,003      $ 123,846      $ 84,356   

Adjustments to net income attributable to Entegris, Inc.:

           

Amortization of intangible assets

      2,462        2,505        2,772        10,225        13,231   

Accelerated write-off of debt costs

      —          —          —          282        890   

Gain on sale of equity investment

      —          —          —          (1,523 )      (892 ) 

Gain associated with pension curtailment

      —          (726 )      —          (726 )      —     

Reversal of deferred tax valuation allowance (1)

      (20,999 )      —          —          (20,999 )      —     

Impairment of equity investment

      —          —          2,164        —          2,164   

Tax effect of adjustments to net income attributable to Entegris, Inc.

      (863 )      (458 )      (1,022 )      (3,355 )      (4,871 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income attributable to Entegris, Inc.

    $ 20,761      $ 23,309      $ 30,917      $ 107,750      $ 94,878   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per common share attributable to Entegris, Inc.:

    $ 0.29      $ 0.16      $ 0.20      $ 0.91      $ 0.63   

Effect of adjustments to net income attributable to Entegris, Inc.

    $ 0.14      $ 0.01      $ 0.03      $ 0.12      $ 0.08   

Diluted non-GAAP earnings per common share attributable to Entegris, Inc.:

    $ 0.15      $ 0.17      $ 0.23      $ 0.79      $ 0.71   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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.

ENTEGRIS INC Reports