Entegris, Inc. (ENTG) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 14, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to the Entegris Q4 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, Entegris’ VP of Investor Relations. Please go ahead, sir.

Bill Seymour

Good morning, everyone. Earlier today, we announced the financial results for our fourth 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 on the disclaimer slide in the presentation.

On this call, we will also refer to non-GAAP financial measures as defined by the SEC and Regulation G. You can find a reconciliation table in today’s news release as well as on our IR page of our website at entegris.com. To help in your modeling, we had provided in our earnings slide the pro forma P&L for all the quarters and full year of 2022. 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. Good morning to all. I’d start that our results in the fourth quarter were solid, especially in light of the recent decline in the semi market. For the quarter, on the pro forma basis, sales were within our guidance up 1% year-on-year and down 5% sequentially. On a reported basis, sales were up 49% year-on-year. EBITDA margins were 28% in a quarter and non-GAAP EPS was $0.83. Looking at the full year 2022 pro forma sales of $3.9 billion were up 13%, and EBITDA exceeded 29% of sales. We estimate our sales growth was approximately 800 basis points above the market growth for the year on a pro forma basis, this above market growth was driven in large part by a strong position at the leading edge technology nodes, led by solutions like liquid filtration, selective edge, gas purification systems and advanced deposition materials, solutions which are of growing importance to our customers and technology road map. Other highlights of 2022 included the announcement of a strategic collaboration with Lam Research to develop dry photoresist for EUV lithography to be used in the production of next generation logic and DRAM semiconductors. Another was the very good progress made in the construction of our new manufacturing facility in Taiwan, which is expected to start initial production by the end of the third quarter of this year. And in December, we announced plans to build a new manufacturing center in Colorado Springs, which is targeted to begin initial commercial operations in the second half of 2024.