10-QPeriod: Q3 FY2020

ENTEGRIS INC Quarterly Report for Q3 Ended Sep 26, 2020

Filed October 22, 2020For Securities:ENTG

Summary

Entegris, Inc. (ENTG) reported solid financial results for the nine months ended September 26, 2020, demonstrating robust growth and improved profitability. Net sales increased by 15% year-over-year to $1.34 billion, driven by strong demand in the semiconductor market and contributions from recent acquisitions. The company's gross profit saw a significant 20% increase, with gross margin improving to 46.1% from 44.2% in the prior year period, attributed to higher factory utilization and a favorable sales mix. Net income for the nine-month period rose to $208.3 million, or $1.53 per diluted share, compared to $197.4 million, or $1.45 per diluted share, in the same period last year. The company also strengthened its balance sheet, with cash and cash equivalents increasing to $448 million and managing its debt effectively. Despite ongoing uncertainties related to the COVID-19 pandemic, Entegris expressed confidence in its liquidity and ability to meet its short-term obligations.

Financial Highlights

54 data points
Beta

Revenue

$480.99M

47.0% Gross Margin

Net Income

$79.30M

16.5% Net Margin

EPS (Diluted)

$0.58

Total Assets

$2.80B

Cash & Equivalents

$447.97M

Free Cash Flow

$68.55M

Financial Statements
Beta
Revenue$480.99M
Cost of Revenue$254.99M
Gross Profit$226.00M
R&D Expenses$36.30M
SG&A Expenses$71.19M
Operating Income$106.76M
Interest Expense$12.78M
Net Income$79.30M
EPS (Basic)$0.59
EPS (Diluted)$0.58
Shares Outstanding (Basic)134.96M
Shares Outstanding (Diluted)136.25M

Key Highlights

  • 1Net sales grew 15% to $1.34 billion for the first nine months of 2020, driven by strong semiconductor market demand and acquisitions.
  • 2Gross profit increased 20% to $618.9 million, with gross margin improving to 46.1% from 44.2%.
  • 3Net income for the nine months rose to $208.3 million, or $1.53 per diluted share.
  • 4Cash and cash equivalents increased to $448.0 million as of September 26, 2020, up from $351.9 million at the end of 2019.
  • 5The company made strategic acquisitions, including Sinmat and GMTI, contributing to revenue growth.
  • 6Operating income showed significant improvement, increasing 21.0% year-over-year for the nine-month period.
  • 7Entegris proactively managed the impacts of the COVID-19 pandemic, maintaining operational continuity and supply chain resilience.

Frequently Asked Questions

Entegris reported a 15% increase in net sales for the nine months ended September 26, 2020, reaching $1.34 billion, up from $1.16 billion in the same period of 2019. This growth was driven by strong demand in the semiconductor market and contributions from recent acquisitions.

Profitability showed improvement. Gross profit increased by 20% to $618.9 million, with a notable expansion in gross margin to 46.1% from 44.2%. Net income for the nine-month period increased to $208.3 million, or $1.53 per diluted share, from $197.4 million, or $1.45 per diluted share, in the prior year.

The company's balance sheet strengthened. Cash and cash equivalents increased significantly to $448.0 million as of September 26, 2020, up from $351.9 million at December 31, 2019. Long-term debt increased to $1.085 billion from $936.5 million, largely due to the issuance of new senior unsecured notes to fund operations and repay existing debt.

Entegris completed strategic acquisitions, including Sinmat and GMTI, which contributed to revenue growth. The company also issued $400 million in senior unsecured notes and used a portion of the proceeds to repay existing debt, strengthening its financial structure.