Summary
Entegris, Inc. (ENTG) reported its financial results for the nine months ended September 28, 2019, showing a slight increase in net sales to $1,164.1 million, up 1% from the prior year period. This growth was largely driven by strategic acquisitions, which contributed $71.9 million in net sales, partially offsetting a decrease in volume, pricing, and mix, as well as foreign currency headwinds. The company experienced a decrease in gross profit and margin for both the three-month and nine-month periods, attributed to lower factory utilization, an unfavorable sales mix, and incremental costs associated with integrating recently acquired businesses. Despite these pressures, Entegris reported a significant increase in net income for the nine-month period, reaching $197.4 million, a 30% increase compared to the previous year, primarily due to a substantial one-time gain of $122.0 million from the termination of a merger agreement with Versum Materials, Inc. Management is focusing on organizational changes to enhance responsiveness and competitiveness.
Financial Highlights
55 data points| Revenue | $394.15M |
| Cost of Revenue | $223.80M |
| Gross Profit | $170.35M |
| R&D Expenses | $31.17M |
| SG&A Expenses | $71.23M |
| Operating Income | $52.79M |
| Interest Expense | $11.39M |
| Net Income | $40.77M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 135.09M |
| Shares Outstanding (Diluted) | 136.53M |
Key Highlights
- 1Net sales for the nine months ended September 28, 2019, increased by 1% to $1,164.1 million, driven by acquisitions.
- 2Net income for the nine months increased significantly to $197.4 million, largely due to a $122.0 million termination fee from Versum.
- 3Gross profit decreased by 5% for the nine months ended September 28, 2019, to $514.0 million, with gross margin declining to 44.2% from 47.0% year-over-year.
- 4Operating income for the nine months declined by 30% to $155.2 million, impacted by increased SG&A and amortization expenses.
- 5Entegris completed three acquisitions in 2019: Digital Specialty Chemicals (March), MPD Chemicals (July), and Hangzhou Anow Microfiltration Co. (September), totaling significant investment and adding to goodwill and intangible assets.
- 6Cash and cash equivalents decreased from $482.1 million at the end of 2018 to $282.7 million at September 28, 2019, reflecting investments in acquisitions and share repurchases.
- 7The company recorded restructuring charges of $1.0 million for the third quarter and $8.9 million year-to-date, part of organizational changes to improve efficiency.