Entegris, Inc. (ENTG) Q1 2022 Earnings Call Transcript

For the period ending April 1, 2022

April 26, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to Entegris' Q1 2022 Earnings Release Call. Today's call is being recorded.

At this time, for opening remarks and introductions, I would like to turn the call over to Bill Seymour, Vice President of Investor Relations. Please go ahead, sir.

Bill Seymour

Good morning, everyone. Earlier today, we announced the financial results for our first quarter of 2022.

Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements.

Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we have filed with the SEC. Please refer to the information in the disclaimer slide in the presentation.

On this call, we will also refer to non-GAAP financial measures as defined by the SEC in Regulation G. You can find a reconciliation table on today's news release, as well as on the IR page of our Web site, at entegris.com.

On the call today are Bertrand Loy, our CEO; and Greg Graves our CFO.

With that, I'll hand the call over to Bertrand.

Bertrand Loy

Thank you, Bill, and good morning to all. We are very pleased with our strong performance this quarter, which was driven in large part by our team's great execution in what remains a very dynamic operating environment. Looking at our first quarter performance, sales were up 27% year-on-year, growth was significant across all three divisions driven by robust industry conditions and more wafers produced at the leading edge, which continues to translate into strong demand for our products and solutions. Gross margins were up significantly in the quarter. EBITDA margins were almost 32% of sales, representing a 37% increase year-on-year, and non-GAAP EPS was up 51% year-over-year, further demonstrating the leverage in our business model.

Let me now provide more color on our first quarter's sales performance. Our growth in the quarter is the result of our expanding position in leading edge logic and memory nodes. From a product standpoint, we achieved significant growth in our unit-driven solutions, [that all] [Ph] of increasing importance to our customers' technology roadmaps. Those included liquid filtration, advanced deposition materials, and surface preparation solutions, which collectively grew 24% in the quarter. Growth was also very strong in our CapEx-driven solutions, including fluid handling, [indiscernible], and gas filtration and purification products which, in the aggregate, grew more than 50% in the quarter.