Entegris(US:ENTG)2024-11-04 11:03Financial Performance - Net sales for Q3 2024 were $808 million, a decrease of 9% from the prior year, but adjusted net sales increased by 7% when excluding divestitures[2] - GAAP net income for Q3 2024 was $77.6 million, significantly higher than $33.2 million in Q3 2023[4] - Basic earnings per common share increased to $1.26 from $0.95, representing a 32.6% growth year-over-year[19] - Total net sales for the three months ended September 28, 2024, were $807.694 million, down 9.1% from $888.239 million in the same period last year[25] - Net income for the three months ended September 28, 2024, was $77.582 million, significantly up from $33.212 million in the same period last year, marking a 133.3% increase[22] - The diluted earnings per share for the three months ended September 28, 2024, was $0.51, an increase from $0.22 in the same period of 2023[30] Margins and Profitability - Adjusted gross margin was 46.0% for Q3 2024, up from 41.4% in Q3 2023, while adjusted operating margin improved to 23.0% from 22.0%[1] - Adjusted EBITDA for Q3 2024 was 28.8% of net sales, an increase from 26.5% in Q3 2023[1] - Operating margin as a percentage of net sales improved to 16.9% for the three months ended September 28, 2024, up from 13.2% in the same period last year[29] - The company reported a net income margin of 9.6% for the three months ended September 28, 2024, compared to 3.7% in the same period last year[29] Future Outlook - The company expects Q4 2024 sales to be between $810 million and $840 million, representing an 8% year-on-year increase when excluding divestitures[5] - The fourth quarter outlook for net sales is projected to be between $810 million and $840 million[33] - The adjusted operating margin for the fourth quarter is expected to be between 22.5% and 23.9% of net sales[33] - Adjusted EBITDA for the fourth quarter is forecasted to be between $231 million and $248 million, representing an adjusted EBITDA margin of 28.5% to 29.5%[33] - GAAP net income for the fourth quarter is estimated to be between $75 million and $86 million[34] - Non-GAAP net income for the fourth quarter is projected to be between $114 million and $125 million[34] - Diluted non-GAAP earnings per share for the fourth quarter are expected to range from $0.75 to $0.82[34] Operational Changes - The company has realigned its operating structure, combining the Microcontamination Control and Advanced Materials Handling segments into one reportable segment[6] - The company plans to continue funding critical investments to enhance its technology capabilities and market position[3] - The company plans to continue focusing on market expansion and new product development to drive future growth[23] Cash and Assets - Cash and cash equivalents at the end of the period were $432.072 million, down from $594.020 million at the end of the previous year[22] - Total assets decreased to $8.472 billion from $8.813 billion, reflecting a 3.9% decline[20] - Total liabilities decreased to $4.880 billion from $5.000 billion, a reduction of 2.4%[21] Segment Performance - Segment profit for Materials Solutions increased to $71.706 million from $56.955 million year-over-year, a growth of 25.9%[24] - Total adjusted segment profit for the three months ended September 28, 2024, was $199.021 million, compared to $206.843 million for the same period in 2023, reflecting a decrease of 3.8%[29] Adjustments and Impairments - The company experienced a goodwill impairment charge of $15.913 million in the three months ended September 30, 2023[30] - The company reported divestitures impacting net sales, with a reduction of $132,250,000 in the three months ended September 30, 2023[31] - Adjusted net sales (excluding divestitures) for the nine months ended September 28, 2024, were $2,357,464,000, reflecting a 2.5% increase from $2,300,122,000 for the same period in the previous year[31]