☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 41-1941551 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
129 Concord Road, | Billerica, | Massachusetts | 01821 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, $0.01 par value per share | ENTG | The Nasdaq Stock Market LLC |
Large accelerated filer | ý | Accelerated filer | ☐ | ||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ | ||||||||||||||
Emerging growth company | ☐ |
Description | Page | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||||
(In thousands, except share and per share data) | October 1, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 752,787 | $ | 402,565 | |||||||
Restricted cash | 1,880 | — | |||||||||
Trade accounts and notes receivable, net of allowance for credit losses of $4,304 and $2,349 | 519,793 | 347,413 | |||||||||
Inventories, net | 823,637 | 475,213 | |||||||||
Deferred tax charges and refundable income taxes | 22,024 | 35,312 | |||||||||
Other current assets | 102,155 | 52,867 | |||||||||
Total current assets | 2,222,276 | 1,313,370 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $1,120,337 and $653,104 | 1,383,693 | 654,098 | |||||||||
Other assets: | |||||||||||
Right-of-use assets | 95,397 | 66,563 | |||||||||
Goodwill | 4,405,292 | 793,702 | |||||||||
Intangible assets, net of accumulated amortization of $585,137 and $494,601 | 1,969,729 | 335,113 | |||||||||
Deferred tax assets and other noncurrent tax assets | 18,637 | 17,671 | |||||||||
Other | 38,380 | 11,379 | |||||||||
Total assets | $ | 10,133,404 | $ | 3,191,896 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt, including current portion of long-term debt | $ | 219,787 | $ | — | |||||||
Accounts payable | 187,697 | 130,734 | |||||||||
Accrued payroll and related benefits | 149,269 | 108,818 | |||||||||
Accrued interest payable | 74,513 | 6,073 | |||||||||
Other accrued liabilities | 166,924 | 84,240 | |||||||||
Income taxes payable | 42,831 | 49,136 | |||||||||
Total current liabilities | 841,021 | 379,001 | |||||||||
Long-term debt, excluding current maturities, net of unamortized discount and debt issuance costs of $147,515 and $7,973 | 5,627,698 | 937,027 | |||||||||
Pension benefit obligations and other liabilities | 54,048 | 37,816 | |||||||||
Deferred tax liabilities and other noncurrent tax liabilities | 411,450 | 64,170 | |||||||||
Long-term lease liability | 82,870 | 60,101 | |||||||||
Commitments and contingent liabilities | — | — | |||||||||
Equity: | |||||||||||
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued and outstanding as of October 1, 2022 and December 31, 2021 | — | — | |||||||||
Common stock, par value $.01; 400,000,000 shares authorized; issued and outstanding shares as of October 1, 2022: 149,236,984 and 149,034,584, respectively; issued and outstanding shares as of December 31, 2021: 135,719,366 and 135,516,966, respectively | 1,492 | 1,357 | |||||||||
Treasury stock, at cost: 202,400 shares held as of October 1, 2022 and December 31, 2021 | (7,112) | (7,112) | |||||||||
Additional paid-in capital | 2,190,961 | 879,845 | |||||||||
Retained earnings | 988,848 | 879,776 | |||||||||
Accumulated other comprehensive loss | (57,872) | (40,085) | |||||||||
Total equity | 3,116,317 | 1,713,781 | |||||||||
Total liabilities and equity | $ | 10,133,404 | $ | 3,191,896 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands, except per share data) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Net sales | $ | 993,828 | $ | 579,493 | $ | 2,335,963 | $ | 1,663,689 | |||||||||||||||
Cost of sales | 622,157 | 315,289 | 1,344,075 | 899,115 | |||||||||||||||||||
Gross profit | 371,671 | 264,204 | 991,888 | 764,574 | |||||||||||||||||||
Selling, general and administrative expenses | 226,446 | 71,032 | 404,239 | 215,042 | |||||||||||||||||||
Engineering, research and development expenses | 64,990 | 41,972 | 160,953 | 121,692 | |||||||||||||||||||
Amortization of intangible assets | 65,346 | 11,843 | 90,491 | 35,616 | |||||||||||||||||||
Operating income | 14,889 | 139,357 | 336,205 | 392,224 | |||||||||||||||||||
Interest expense | 84,150 | 9,395 | 129,027 | 31,744 | |||||||||||||||||||
Interest income | (1,395) | (56) | (2,065) | (181) | |||||||||||||||||||
Other expense, net | 12,852 | 1,917 | 27,373 | 29,807 | |||||||||||||||||||
(Loss) income before income tax expense | (80,718) | 128,101 | 181,870 | 330,854 | |||||||||||||||||||
Income tax (benefit) expense | (7,015) | 10,640 | 30,377 | 39,947 | |||||||||||||||||||
Net (loss) income | $ | (73,703) | $ | 117,461 | $ | 151,493 | $ | 290,907 | |||||||||||||||
Basic (loss) earnings per common share | $ | (0.50) | $ | 0.87 | $ | 1.08 | $ | 2.15 | |||||||||||||||
Diluted (loss) earnings per common share | $ | (0.50) | $ | 0.86 | $ | 1.08 | $ | 2.13 | |||||||||||||||
Weighted shares outstanding: | |||||||||||||||||||||||
Basic | 148,570 | 135,583 | 140,045 | 135,383 | |||||||||||||||||||
Diluted | 148,570 | 136,631 | 140,892 | 136,556 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Net (loss) income | $ | (73,703) | $ | 117,461 | $ | 151,493 | $ | 290,907 | |||||||||||||||
Other comprehensive (loss) income, net of tax | |||||||||||||||||||||||
Foreign currency translation adjustments | (37,461) | 637 | (48,603) | (1,622) | |||||||||||||||||||
Pension liability adjustments | — | — | 73 | 39 | |||||||||||||||||||
Interest rate swap - cash flow hedge | 40,028 | — | 40,028 | — | |||||||||||||||||||
Income tax expense | (9,285) | — | (9,285) | — | |||||||||||||||||||
Total Interest rate swap - cash flow hedge | 30,743 | — | 30,743 | — | |||||||||||||||||||
Other comprehensive (loss) income | (6,718) | 637 | (17,787) | (1,583) | |||||||||||||||||||
Comprehensive (loss) income | $ | (80,421) | $ | 118,098 | $ | 133,706 | $ | 289,324 |
(In thousands) | Common shares outstanding | Common stock | Treasury shares | Treasury stock | Additional paid-in capital | Retained earnings | Foreign currency translation adjustments | Defined benefit pension adjustments | Interest Rate Swap - Cash flow hedge | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 135,149 | $ | 1,351 | 202 | $ | (7,112) | $ | 844,850 | $ | 577,833 | $ | (36,588) | $ | (840) | $ | — | $ | 1,379,494 | |||||||||||||||||||||||||||||||||||||||||
Shares issued under stock plans | 392 | 4 | — | — | (13,470) | — | — | — | — | (13,466) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 7,138 | — | — | — | — | 7,138 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common stock | (145) | (1) | — | — | (904) | (14,095) | — | — | — | (15,000) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.08 per share) | — | — | — | — | 8 | (10,840) | — | — | — | (10,832) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | — | — | — | 39 | — | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | (3,716) | — | — | (3,716) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 84,676 | — | — | — | 84,676 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 3, 2021 | 135,396 | $ | 1,354 | 202 | $ | (7,112) | $ | 837,622 | $ | 637,574 | $ | (40,304) | $ | (801) | $ | — | $ | 1,428,333 | |||||||||||||||||||||||||||||||||||||||||
Shares issued under stock plans | 559 | 5 | — | 15,185 | — | — | — | — | 15,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 7,519 | — | — | — | — | 7,519 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common stock | (130) | (1) | — | — | (813) | (14,186) | — | — | — | (15,000) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.08 per share) | — | — | — | — | 7 | (10,945) | — | — | — | (10,938) | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | 1,457 | — | — | 1,457 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 88,770 | — | — | — | 88,770 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 3, 2021 | 135,825 | $ | 1,358 | 202 | $ | (7,112) | $ | 859,520 | $ | 701,213 | $ | (38,847) | $ | (801) | — | $ | 1,515,331 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock plans | 65 | 1 | — | 779 | — | — | — | — | 780 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 7,467 | — | — | — | — | 7,467 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (166) | (2) | — | — | (1,050) | (18,948) | — | — | — | (20,000) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.08 per share) | — | — | — | — | — | (10,896) | — | — | — | (10,896) | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | 637 | — | — | 637 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 117,461 | — | — | — | 117,461 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 2, 2021 | 135,724 | $ | 1,357 | 202 | $ | (7,112) | $ | 866,716 | $ | 788,830 | $ | (38,210) | $ | (801) | $ | — | $ | 1,610,780 |
(In thousands) | Common shares outstanding | Common stock | Treasury shares | Treasury stock | Additional paid-in capital | Retained earnings | Foreign currency translation adjustments | Defined benefit pension adjustments | Interest Rate Swap - Cash flow hedge | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 135,719 | $ | 1,357 | 202 | $ | (7,112) | $ | 879,845 | $ | 879,776 | $ | (38,863) | $ | (1,222) | $ | — | $ | 1,713,781 | |||||||||||||||||||||||||||||||||||||||||
Shares issued under stock plans | 366 | 4 | — | — | (12,742) | — | — | — | — | (12,738) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 9,285 | — | — | — | — | 9,285 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.10 per share) | — | — | — | — | — | (13,660) | — | — | — | (13,660) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | — | — | — | 73 | — | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | (2,128) | — | — | (2,128) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 125,705 | — | — | — | 125,705 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 2, 2022 | 136,085 | $ | 1,361 | 202 | $ | (7,112) | $ | 876,388 | $ | 991,821 | $ | (40,991) | $ | (1,149) | $ | — | $ | 1,820,318 | |||||||||||||||||||||||||||||||||||||||||
Shares issued under stock plans | 88 | 1 | — | 5,397 | — | — | — | — | 5,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 10,182 | — | — | — | — | 10,182 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.10 per share) | — | — | — | — | — | (13,661) | — | — | — | (13,661) | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | (9,014) | — | — | (9,014) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 99,491 | — | — | — | 99,491 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2022 | 136,173 | $ | 1,362 | 202 | $ | (7,112) | $ | 891,967 | $ | 1,077,651 | $ | (50,005) | $ | (1,149) | — | $ | 1,912,714 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock plans | 137 | 1 | — | (4,644) | — | — | — | — | (4,643) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 38,077 | — | — | — | — | 38,077 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with CMC Materials acquisition | 12,927 | 129 | — | — | 1,265,561 | — | — | — | — | 1,265,690 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.10 per share) | — | — | — | — | — | (15,100) | — | — | — | (15,100) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swap - Cash flow hedge | — | — | — | — | — | — | — | — | 30,743 | 30,743 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | (37,461) | — | — | (37,461) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (73,703) | — | — | — | (73,703) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2022 | 149,237 | $ | 1,492 | 202 | $ | (7,112) | $ | 2,190,961 | $ | 988,848 | $ | (87,466) | $ | (1,149) | $ | 30,743 | $ | 3,116,317 |
Nine months ended | |||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | |||||||||
Operating activities: | |||||||||||
Net income | $ | 151,493 | $ | 290,907 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 93,489 | 67,510 | |||||||||
Amortization | 90,491 | 35,616 | |||||||||
Share-based compensation expense | 57,544 | 22,124 | |||||||||
Charge for fair value mark-up of acquired inventory sold | 61,932 | — | |||||||||
Provision for deferred income taxes | (56,964) | (12,307) | |||||||||
Loss on extinguishment of debt and modification | 2,235 | 23,338 | |||||||||
Charge for excess and obsolete inventory | 17,582 | 10,066 | |||||||||
Other | 38,670 | 265 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts and notes receivable | (34,378) | (53,358) | |||||||||
Inventories | (180,335) | (115,187) | |||||||||
Accounts payable and accrued liabilities | 83,307 | 37,577 | |||||||||
Other current assets | (4,248) | 10,575 | |||||||||
Income taxes payable and refundable income taxes | (15,637) | (35,275) | |||||||||
Other | 15,049 | 2,623 | |||||||||
Net cash provided by operating activities | 320,230 | 284,474 | |||||||||
Investing activities: | |||||||||||
Acquisition of property, plant and equipment | (318,836) | (133,986) | |||||||||
Acquisition of businesses, net of cash acquired | (4,474,925) | (2,250) | |||||||||
Other | 1,124 | 4,416 | |||||||||
Net cash used in investing activities | (4,792,637) | (131,820) | |||||||||
Financing activities: | |||||||||||
Proceeds from revolving credit facility and short-term debt | 476,000 | 451,000 | |||||||||
Payments of revolving credit facility and short-term debt | (271,000) | (601,000) | |||||||||
Proceeds from long-term debt | 4,940,753 | — | |||||||||
Payments of long-term debt | (145,000) | — | |||||||||
Payments for debt extinguishment costs | — | (19,080) | |||||||||
Payments for debt issuance costs | (99,489) | (5,069) | |||||||||
Payments for dividends | (42,413) | (32,650) | |||||||||
Issuance of common stock | 10,764 | 17,872 | |||||||||
Repurchase and retirement of common stock | — | (50,000) | |||||||||
Taxes paid related to net share settlement of equity awards | (22,747) | (15,368) | |||||||||
Other | (859) | (218) | |||||||||
Net cash provided by (used in) financing activities | 4,846,009 | (254,513) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21,500) | (3,282) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 352,102 | (105,141) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 402,565 | 580,893 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 754,667 | $ | 475,752 |
Supplemental Cash Flow Information | Nine months ended | ||||||||||
(unaudited) | |||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | |||||||||
Non-cash transactions: | |||||||||||
Deferred acquisition payments | $ | — | $ | 250 | |||||||
Equipment purchases in accounts payable | 19,362 | 15,965 | |||||||||
Increase (Decrease) in dividends payable | 8 | (16) | |||||||||
Equity consideration on acquisition of CMC Materials Inc | 1,265,690 | — | |||||||||
Schedule of interest and income taxes paid: | |||||||||||
Interest paid less capitalized interest | 22,917 | 29,759 | |||||||||
Income taxes paid, net of refunds received | 96,729 | 85,409 |
(In thousands) | October 1, 2022 | October 2, 2021 | |||||||||
Balance at beginning of period | $ | 23,050 | $ | 13,852 | |||||||
Revenue recognized that was included in the contract liability balance at the beginning of the period | (26,444) | (13,561) | |||||||||
Increases due to cash received, excluding amounts recognized as revenue during the period | 40,725 | 16,758 | |||||||||
Additions due to acquisitions | 11,108 | — | |||||||||
Balance at end of period | $ | 48,439 | $ | 17,049 |
(In thousands): | |||||
Cash paid to CMC Materials’ shareholders | $ | 3,836,983 | |||
Stock paid to CMC Materials’ shareholders | 1,265,690 | ||||
Repayment of CMC Materials’ indebtedness | 918,578 | ||||
Total purchase price | 6,021,251 | ||||
Less cash and cash equivalents acquired | 280,636 | ||||
Total purchase price, net of cash acquired | $ | 5,740,615 |
(In thousands): | July 6, 2022 | |||||||
Cash and cash equivalents | $ | 280,636 | ||||||
Accounts receivable and other current assets | 206,887 | |||||||
Inventory | 256,598 | |||||||
Property, plant and equipment | 534,363 | |||||||
Identifiable intangible assets | 1,727,119 | |||||||
Other noncurrent assets | 44,149 | |||||||
Current liabilities | (213,089) | |||||||
Deferred tax liabilities and other noncurrent liabilities | (448,550) | |||||||
Net assets acquired | 2,388,113 | |||||||
Goodwill | 3,633,138 | |||||||
Total purchase price | $ | 6,021,251 |
(In thousands) | Amount | Weighted average life in years | |||||||||
Developed technology | $ | 1,005,300 | 6.4 | ||||||||
Trademarks and trade names | 234,400 | 14.9 | |||||||||
Customer relationships | 445,700 | 18.2 | |||||||||
In-process research and development | 30,100 | ||||||||||
Other | 11,619 | 1.2 | |||||||||
$ | 1,727,119 | 10.7 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Net sales | $ | 993,828 | $ | 889,268 | $ | 2,974,780 | $ | 2,568,665 | |||||||||||||||
Net (loss) income | 62,255 | 51,062 | 223,030 | (230,999) | |||||||||||||||||||
Per share amounts: | |||||||||||||||||||||||
Net (loss) income per common share - basic | $ | 0.42 | $ | 0.34 | $ | 1.50 | $ | (1.56) | |||||||||||||||
Net (loss) income per common share - diluted | $ | 0.42 | $ | 0.34 | $ | 1.44 | $ | (1.56) |
(In thousands): | November 30, 2021 | As of April 2, 2022 | |||||||||
Inventories, net | $ | 967 | $ | 967 | |||||||
Other current assets | 19 | 19 | |||||||||
Identifiable intangible assets | 44,910 | 44,910 | |||||||||
Right-of-use assets | 1,912 | 1,912 | |||||||||
Property, plant and equipment | 1,002 | 1,002 | |||||||||
Other noncurrent assets | 18 | 18 | |||||||||
Accounts payable and accrued liabilities | (43) | (30) | |||||||||
Short-term lease liability | (170) | (170) | |||||||||
Long-term lease liability | (1,742) | (1,742) | |||||||||
Net assets acquired | 46,873 | 46,886 | |||||||||
Goodwill | 42,819 | 42,824 | |||||||||
Total purchase price, net of cash acquired | $ | 89,692 | $ | 89,710 |
(In thousands) | Amount | Weighted average life in years | |||||||||
Developed technology | $ | 9,600 | 9.0 | ||||||||
Trademarks and trade names | 3,400 | 15.0 | |||||||||
Customer relationships | 31,800 | 15.5 | |||||||||
Other | 110 | ||||||||||
$ | 44,910 | 14.1 |
(In thousands) | October 1, 2022 | December 31, 2021 | |||||||||
Cash and cash equivalents | $ | 752,787 | $ | 402,565 | |||||||
Restricted cash | 1,880 | — | |||||||||
Total cash, cash equivalents and restricted cash | $ | 754,667 | $ | 402,565 |
(In thousands) | October 1, 2022 | December 31, 2021 | |||||||||
Raw materials | $ | 342,668 | $ | 191,986 | |||||||
Work-in-process | 63,454 | 40,257 | |||||||||
Finished goods | 417,515 | 242,970 | |||||||||
Total inventories, net | $ | 823,637 | $ | 475,213 |
(In thousands) | SCEM | MC | AMH | APS | Total | ||||||||||||||||||||||||
December 31, 2021 | $ | 470,875 | $ | 248,725 | $ | 74,102 | $ | — | $ | 793,702 | |||||||||||||||||||
Addition due to acquisitions | 275,771 | — | — | 3,357,367 | 3,633,138 | ||||||||||||||||||||||||
Purchase accounting adjustments | 5 | — | — | — | 5 | ||||||||||||||||||||||||
Goodwill reallocation | (120,980) | — | — | 120,980 | — | ||||||||||||||||||||||||
Foreign currency translation | (1,863) | (8,667) | — | (11,023) | (21,553) | ||||||||||||||||||||||||
October 1, 2022 | $ | 623,808 | $ | 240,058 | $ | 74,102 | $ | 3,467,324 | $ | 4,405,292 |
October 1, 2022 | |||||||||||||||||
(In thousands) | Gross carrying amount | Accumulated amortization | Net carrying value | ||||||||||||||
Developed technology | $ | 1,298,717 | $ | 281,407 | $ | 1,017,310 | |||||||||||
Trademarks and trade names | 267,718 | 25,680 | 242,038 | ||||||||||||||
Customer relationships | 926,425 | 260,268 | 666,157 | ||||||||||||||
Other | 62,006 | 17,782 | 44,224 | ||||||||||||||
$ | 2,554,866 | $ | 585,137 | $ | 1,969,729 |
December 31, 2021 | |||||||||||||||||
(In thousands) | Gross carrying amount | Accumulated amortization | Net carrying value | ||||||||||||||
Developed technology | $ | 293,982 | $ | 232,722 | $ | 61,260 | |||||||||||
Trademarks and trade names | 33,553 | 20,340 | 13,213 | ||||||||||||||
Customer relationships | 481,674 | 227,350 | 254,324 | ||||||||||||||
Other | 20,505 | 14,189 | 6,316 | ||||||||||||||
$ | 829,714 | $ | 494,601 | $ | 335,113 |
(In thousands) | Remaining 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | ||||||||||||||||||||||||||||||||||
Future amortization expense | $ | 65,728 | 258,598 | 239,039 | 232,754 | 230,526 | 943,084 | $ | 1,969,729 |
(In thousands) | October 1, 2022 | December 31, 2021 | |||||||||
Senior secured term loan facility due 2029 | 2,495,000 | — | |||||||||
Senior secured notes due 2029 | 1,600,000 | — | |||||||||
Senior unsecured notes due 2030 | 895,000 | — | |||||||||
Senior unsecured notes due 2029 | 400,000 | 400,000 | |||||||||
Senior unsecured notes due 2028 | 400,000 | 400,000 | |||||||||
Bridge credit facility due 2023 | 205,000 | — | |||||||||
Senior secured term loan facility due 2025 | — | 145,000 | |||||||||
5,995,000 | 945,000 | ||||||||||
Unamortized discount and debt issuance costs | 147,515 | 7,973 | |||||||||
Total debt, net | $ | 5,847,485 | $ | 937,027 | |||||||
Less short-term debt, including current portion of long-term debt | 219,787 | — | |||||||||
Total long-term debt, net | $ | 5,627,698 | $ | 937,027 |
(In thousands) | Remaining 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | ||||||||||||||||||||||||||||||||||
Contractual debt obligation maturities* | $ | — | 229,950 | 24,950 | 24,950 | 24,950 | 5,690,200 | $ | 5,995,000 |
October 1, 2022 | |||||||||||||||||||||||
(In thousands): | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 752,787 | $ | — | $ | — | $ | 752,787 | |||||||||||||||
Restricted cash | 1,880 | $ | — | $ | — | 1,880 | |||||||||||||||||
Derivative financial instruments - Interest rate swap - cash flow hedge | — | 40,127 | — | 40,127 | |||||||||||||||||||
Total Assets | $ | 754,667 | $ | 40,127 | $ | — | $ | 794,794 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments - Forward exchange contracts | $ | — | $ | 336 | $ | — | $ | 336 | |||||||||||||||
Total Liabilities | $ | — | $ | 336 | $ | — | $ | 336 |
(In thousands) | October 1, 2022 | December 31, 2021 | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Interest rate swap contract - Cash flow hedge | $ | 1,950,000 | $ | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange contracts to purchase U.S. dollars | $ | 4,400 | $ | — | |||||||
Foreign exchange contracts to sell U.S. dollars | 23,175 | — |
(In thousands) | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||
Condensed Consolidated Balance Sheet Location | October 1, 2022 | December 31, 2021 | October 1, 2022 | December 31, 2021 | |||||||||||||||||||
Derivatives designated as hedging instruments - Interest rate swap contract -cash flow hedge | |||||||||||||||||||||||
Other current assets | $ | 19,255 | $ | — | $ | — | $ | — | |||||||||||||||
Other assets - long-term | 20,773 | — | — | — | |||||||||||||||||||
Derivatives not designated as hedging instruments -Foreign exchange contracts | |||||||||||||||||||||||
Other current assets | $ | 99 | $ | — | $ | — | $ | — | |||||||||||||||
Other accrued liabilities | — | — | 336 | — |
(In thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | Condensed Consolidated Statements of Operations Location | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||||
Foreign exchange contracts | Other expense, net | $ | 562 | $ | — | $ | 562 | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate swap contract - Cash flow hedge | $ | 30,743 | $ | — | $ | 30,743 | $ | — |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Basic—weighted common shares outstanding | 148,570 | 135,583 | 140,045 | 135,383 | |||||||||||||||||||
Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock | — | 1,048 | 847 | 1,173 | |||||||||||||||||||
Diluted—weighted common shares and common shares equivalent outstanding | 148,570 | 136,631 | 140,892 | 136,556 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Shares excluded from calculations of diluted EPS | 1,610 | 148 | 415 | 149 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Loss on foreign currency transactions | $ | 13,631 | $ | 1,919 | $ | 28,254 | $ | 6,281 | |||||||||||||||
Loss on extinguishment of debt and modification | 2,235 | — | 2,235 | 23,338 | |||||||||||||||||||
Other, net | (3,014) | (2) | (3,116) | 188 | |||||||||||||||||||
Other expense, net | $ | 12,852 | $ | 1,917 | $ | 27,373 | $ | 29,807 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Net sales | |||||||||||||||||||||||
SCEM | $ | 224,192 | $ | 154,605 | $ | 569,380 | $ | 460,707 | |||||||||||||||
MC | 280,550 | 225,877 | 821,320 | 660,497 | |||||||||||||||||||
AMH | 210,405 | 186,200 | 632,602 | 507,243 | |||||||||||||||||||
APS | 293,854 | 21,775 | 352,816 | 62,580 | |||||||||||||||||||
Inter-segment elimination | (15,173) | (8,964) | (40,155) | (27,338) | |||||||||||||||||||
Total net sales | $ | 993,828 | $ | 579,493 | $ | 2,335,963 | $ | 1,663,689 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Segment profit | |||||||||||||||||||||||
SCEM | $ | 34,228 | $ | 33,552 | $ | 107,459 | $ | 98,760 | |||||||||||||||
MC | 105,335 | 78,399 | 304,062 | 227,097 | |||||||||||||||||||
AMH | 42,077 | 40,503 | 135,693 | 114,691 | |||||||||||||||||||
APS | 18,903 | 7,539 | 40,241 | 21,832 | |||||||||||||||||||
Total segment profit | $ | 200,543 | $ | 159,993 | $ | 587,455 | $ | 462,380 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Total segment profit | $ | 200,543 | $ | 159,993 | $ | 587,455 | $ | 462,380 | |||||||||||||||
Less: | |||||||||||||||||||||||
Amortization of intangible assets | 65,346 | 11,843 | 90,491 | 35,616 | |||||||||||||||||||
Unallocated general and administrative expenses | 120,308 | 8,793 | 160,759 | 34,540 | |||||||||||||||||||
Operating income | 14,889 | 139,357 | 336,205 | 392,224 | |||||||||||||||||||
Interest expense | 84,150 | 9,395 | 129,027 | 31,744 | |||||||||||||||||||
Interest income | (1,395) | (56) | (2,065) | (181) | |||||||||||||||||||
Other expense, net | 12,852 | 1,917 | 27,373 | 29,807 | |||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (80,718) | $ | 128,101 | $ | 181,870 | $ | 330,854 |
Three months ended October 1, 2022 | |||||||||||||||||||||||||||||||||||
(In thousands) | SCEM | MC | AMH | APS | Inter-segment | Total | |||||||||||||||||||||||||||||
North America | $ | 86,259 | $ | 42,716 | $ | 67,794 | $ | 69,618 | $ | (15,173) | $ | 251,214 | |||||||||||||||||||||||
Taiwan | 29,462 | 70,536 | 38,712 | 43,604 | — | 182,314 | |||||||||||||||||||||||||||||
China | 26,805 | 58,398 | 28,717 | 53,040 | — | 166,960 | |||||||||||||||||||||||||||||
South Korea | 19,931 | 30,583 | 29,339 | 40,001 | — | 119,854 | |||||||||||||||||||||||||||||
Japan | 22,563 | 42,505 | 16,336 | 9,604 | — | 91,008 | |||||||||||||||||||||||||||||
Europe | 21,892 | 20,977 | 18,401 | 41,483 | — | 102,753 | |||||||||||||||||||||||||||||
Southeast Asia | 17,280 | 14,835 | 11,106 | 36,504 | — | 79,725 | |||||||||||||||||||||||||||||
$ | 224,192 | $ | 280,550 | $ | 210,405 | $ | 293,854 | $ | (15,173) | $ | 993,828 |
Three months ended October 2, 2021 | |||||||||||||||||||||||||||||||||||
(In thousands) | SCEM | MC | AMH | APS | Inter-segment | Total | |||||||||||||||||||||||||||||
North America | $ | 47,636 | $ | 35,828 | $ | 60,350 | $ | 4,915 | $ | (8,964) | $ | 139,765 | |||||||||||||||||||||||
Taiwan | 24,479 | 57,806 | 26,615 | 4,892 | — | 113,792 | |||||||||||||||||||||||||||||
China | 21,678 | 35,003 | 23,975 | 3,639 | — | 84,295 | |||||||||||||||||||||||||||||
South Korea | 18,319 | 24,763 | 28,487 | 5,336 | — | 76,905 | |||||||||||||||||||||||||||||
Japan | 20,735 | 42,440 | 13,701 | 904 | — | 77,780 | |||||||||||||||||||||||||||||
Europe | 11,952 | 17,583 | 26,041 | 1,299 | — | 56,875 | |||||||||||||||||||||||||||||
Southeast Asia | 9,806 | 12,454 | 7,031 | 790 | — | 30,081 | |||||||||||||||||||||||||||||
$ | 154,605 | $ | 225,877 | $ | 186,200 | $ | 21,775 | $ | (8,964) | $ | 579,493 |
Nine months ended October 1, 2022 | |||||||||||||||||||||||||||||||||||
(In thousands) | SCEM | MC | AMH | APS | Inter-segment | Total | |||||||||||||||||||||||||||||
North America | $ | 191,394 | $ | 113,984 | $ | 205,414 | $ | 82,554 | $ | (40,155) | $ | 553,191 | |||||||||||||||||||||||
Taiwan | 85,040 | 232,711 | 111,722 | 54,338 | — | 483,811 | |||||||||||||||||||||||||||||
China | 77,799 | 142,639 | 87,347 | 61,385 | — | 369,170 | |||||||||||||||||||||||||||||
South Korea | 56,793 | 93,718 | 89,367 | 52,382 | — | 292,260 | |||||||||||||||||||||||||||||
Japan | 65,659 | 137,103 | 44,701 | 11,202 | — | 258,665 | |||||||||||||||||||||||||||||
Europe | 46,499 | 60,670 | 65,976 | 45,986 | — | 219,131 | |||||||||||||||||||||||||||||
Southeast Asia | 46,196 | 40,495 | 28,075 | 44,969 | — | 159,735 | |||||||||||||||||||||||||||||
$ | 569,380 | $ | 821,320 | $ | 632,602 | $ | 352,816 | $ | (40,155) | $ | 2,335,963 |
Nine months ended October 2, 2021 | |||||||||||||||||||||||||||||||||||
(In thousands) | SCEM | MC | AMH | APS | Inter-segment | Total | |||||||||||||||||||||||||||||
North America | $ | 142,994 | $ | 106,568 | $ | 161,792 | $ | 13,295 | $ | (27,338) | $ | 397,311 | |||||||||||||||||||||||
Taiwan | 69,196 | 155,830 | 79,286 | 16,154 | — | 320,466 | |||||||||||||||||||||||||||||
China | 63,442 | 118,595 | 70,418 | 7,756 | — | 260,211 | |||||||||||||||||||||||||||||
South Korea | 58,266 | 83,725 | 73,769 | 15,627 | — | 231,387 | |||||||||||||||||||||||||||||
Japan | 66,258 | 114,654 | 37,875 | 2,520 | — | 221,307 | |||||||||||||||||||||||||||||
Europe | 32,025 | 44,562 | 63,171 | 4,276 | — | 144,034 | |||||||||||||||||||||||||||||
Southeast Asia | 28,526 | 36,563 | 20,932 | 2,952 | — | 88,973 | |||||||||||||||||||||||||||||
$ | 460,707 | $ | 660,497 | $ | 507,243 | $ | 62,580 | $ | (27,338) | $ | 1,663,689 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 993,828 | 100.0 | % | $ | 579,493 | 100.0 | % | $ | 2,335,963 | 100.0 | % | $ | 1,663,689 | 100.0 | % | |||||||||||||||||||||||||||||||
Cost of sales | 622,157 | 62.6 | 315,289 | 54.4 | 1,344,075 | 57.5 | 899,115 | 54.0 | |||||||||||||||||||||||||||||||||||||||
Gross profit | 371,671 | 37.4 | 264,204 | 45.6 | 991,888 | 42.5 | 764,574 | 46.0 | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 226,446 | 22.8 | 71,032 | 12.3 | 404,239 | 17.3 | 215,042 | 12.9 | |||||||||||||||||||||||||||||||||||||||
Engineering, research and development expenses | 64,990 | 6.5 | 41,972 | 7.2 | 160,953 | 6.9 | 121,692 | 7.3 | |||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 65,346 | 6.6 | 11,843 | 2.0 | 90,491 | 3.9 | 35,616 | 2.1 | |||||||||||||||||||||||||||||||||||||||
Operating income | 14,889 | 1.5 | 139,357 | 24.0 | 336,205 | 14.4 | 392,224 | 23.6 | |||||||||||||||||||||||||||||||||||||||
Interest expense | 84,150 | 8.5 | 9,395 | 1.6 | 129,027 | 5.5 | 31,744 | 1.9 | |||||||||||||||||||||||||||||||||||||||
Interest income | (1,395) | (0.1) | (56) | — | (2,065) | (0.1) | (181) | — | |||||||||||||||||||||||||||||||||||||||
Other expense, net | 12,852 | 1.3 | 1,917 | 0.3 | 27,373 | 1.2 | 29,807 | 1.8 | |||||||||||||||||||||||||||||||||||||||
(Loss) income before income taxes | (80,718) | (8.1) | 128,101 | 22.1 | 181,870 | 7.8 | 330,854 | 19.9 | |||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (7,015) | (0.7) | 10,640 | 1.8 | 30,377 | 1.3 | 39,947 | 2.4 | |||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (73,703) | (7.4) | % | $ | 117,461 | 20.3 | % | $ | 151,493 | 6.5 | % | $ | 290,907 | 17.5 | % |
(In thousands) | |||||
Net sales in the quarter ended October 2, 2021 | $ | 579,493 | |||
Increase mainly associated with volume exclusive of CMC Materials | 136,693 | ||||
Increase associated with acquired businesses | 315,405 | ||||
Decrease associated with effect of foreign currency translation | (37,763) | ||||
Net sales in the quarter ended October 1, 2022 | $ | 993,828 |
Three months ended | |||||||||||||||||
October 1, 2022 | October 2, 2021 | Percentage increase in sales | |||||||||||||||
North America | 25 | % | 24 | % | 80 | % | |||||||||||
Taiwan | 18 | % | 20 | % | 60 | % | |||||||||||
China | 17 | % | 15 | % | 98 | % | |||||||||||
South Korea | 12 | % | 13 | % | 56 | % | |||||||||||
Japan | 9 | % | 13 | % | 17 | % | |||||||||||
Europe | 10 | % | 10 | % | 81 | % | |||||||||||
Southeast Asia | 8 | % | 5 | % | 165 | % |
Nine months ended | |||||||||||||||||
October 1, 2022 | October 2, 2021 | Percentage increase in sales | |||||||||||||||
North America | 24 | % | 24 | % | 39 | % | |||||||||||
Taiwan | 21 | % | 19 | % | 51 | % | |||||||||||
South Korea | 13 | % | 14 | % | 26 | % | |||||||||||
Japan | 11 | % | 13 | % | 17 | % | |||||||||||
China | 16 | % | 16 | % | 42 | % | |||||||||||
Europe | 9 | % | 9 | % | 52 | % | |||||||||||
Southeast Asia | 7 | % | 5 | % | 80 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
October 1, 2022 | October 2, 2021 | Percentage point change | October 1, 2022 | October 2, 2021 | Percentage point change | ||||||||||||||||||||||||||||||
Gross margin as a percentage of net revenues: | 37.4 | % | 45.6 | % | (8.2) | 42.5 | % | 46.0 | % | (3.5) |
(In thousands) | |||||
Selling, general and administrative expenses in the quarter ended October 2, 2021 | $ | 71,032 | |||
SG&A expense recorded by CMC Materials and included in Company’s condensed financial statements after the date of the acquisition | 36,223 | ||||
Employee costs, exclusive of CMC Materials | 2,452 | ||||
Deal and transaction costs | 31,867 | ||||
Integration costs | 19,472 | ||||
Contractual and non-cash integration costs | 58,411 | ||||
Professional costs, exclusive of CMC Materials | 1,589 | ||||
Travel costs, exclusive of CMC Materials | 1,617 | ||||
Other increases, net, exclusive of CMC Materials | 3,783 | ||||
Selling, general and administrative expenses in the quarter ended October 1, 2022 | $ | 226,446 |
(In thousands) | |||||
Selling, general and administrative expenses in the nine months ended October 2, 2021 | 215,042 | ||||
SG&A expense recorded by CMC Materials and included in Company’s condensed financial statements after the date of the acquisition | 36,223 | ||||
Employee costs, exclusive of CMC Materials | 10,909 | ||||
Deal and transaction costs | 39,285 | ||||
Integration costs | 28,207 | ||||
Contractual and non-cash integration costs | 58,411 | ||||
Absence of gain on sale of non-core intangibles occurred in the year-ago period, exclusive of CMC Materials | 5,100 | ||||
Professional costs, exclusive of CMC Materials | 2,488 | ||||
Travel costs, exclusive of CMC Materials | 3,121 | ||||
Other increases, net, exclusive of CMC Materials | 5,453 | ||||
Selling, general and administrative expenses in the nine months ended October 1, 2022 | $ | 404,239 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Specialty Chemicals and Engineered Materials | |||||||||||||||||||||||
Net sales | $ | 224,192 | $ | 154,605 | $ | 569,380 | $ | 460,707 | |||||||||||||||
Segment profit | 34,228 | 33,552 | 107,459 | 98,760 | |||||||||||||||||||
Microcontamination Control | |||||||||||||||||||||||
Net sales | $ | 280,550 | $ | 225,877 | $ | 821,320 | $ | 660,497 | |||||||||||||||
Segment profit | 105,335 | 78,399 | 304,062 | 227,097 | |||||||||||||||||||
Advanced Materials Handling | |||||||||||||||||||||||
Net sales | $ | 210,405 | $ | 186,200 | $ | 632,602 | $ | 507,243 | |||||||||||||||
Segment profit | 42,077 | 40,503 | 135,693 | 114,691 | |||||||||||||||||||
Advanced Planarization Solutions | |||||||||||||||||||||||
Net sales | $ | 293,854 | $ | 21,775 | $ | 352,816 | $ | 62,580 | |||||||||||||||
Segment profit | 18,903 | 7,539 | 40,241 | 21,832 | |||||||||||||||||||
Unallocated general and administrative expenses | $ | 120,308 | $ | 8,793 | $ | 160,759 | $ | 34,540 |
In thousands | October 1, 2022 | December 31, 2021 | |||||||||
Cash and cash equivalents including restricted cash | $ | 754,667 | $ | 402,565 | |||||||
Working capital | 1,381,255 | 934,369 | |||||||||
Total debt, net of unamortized discount and debt issuance costs | 5,847,485 | 937,027 |
Nine months ended | |||||||||||
(in thousands) | October 1, 2022 | October 2, 2021 | |||||||||
Net cash provided by operating activities | $ | 320,230 | $ | 284,474 | |||||||
Net cash used in investing activities | (4,792,637) | (131,820) | |||||||||
Net cash provided by (used in) financing activities | 4,846,009 | (254,513) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 352,102 | (105,141) |
(In thousands) | October 1, 2022 | December 31, 2021 | |||||||||
Senior secured term loan facility due 2029 | $ | 2,495,000 | $ | — | |||||||
Senior secured notes due 2029 at 4.75% | 1,600,000 | — | |||||||||
Senior unsecured notes due 2030 at 5.95% | 895,000 | — | |||||||||
Senior unsecured notes due 2029 at 3.625% | 400,000 | 400,000 | |||||||||
Senior unsecured notes due 2028 at 4.375% | 400,000 | 400,000 | |||||||||
Bridge credit facility due 2023 | 205,000 | — | |||||||||
Senior secured term loan facility due 2025 at 2.457% | — | 145,000 | |||||||||
Revolving facility due 2026 | — | — | |||||||||
Total debt (par value) | $ | 5,995,000 | $ | 945,000 |
(In thousands) | October 1, 2022 | December 31, 2021 | |||||||||
U.S. | $ | 335,627 | $ | 107,814 | |||||||
Non-U.S. | 417,160 | 294,751 | |||||||||
Cash and cash equivalents | 752,787 | 402,565 | |||||||||
Restricted cash - U.S. | 1,880 | — | |||||||||
Cash, cash equivalents and restricted cash | $ | 754,667 | $ | 402,565 |
(In thousands) | Total | Due within 3 months of October 1, 2022 | Due later than one year from December 31, 2022 | ||||||||||||||
Long-term debt | $ | 5,995,000 | $ | — | $ | 5,995,000 | |||||||||||
Interest payments on long-term debt | 2,116,019 | 79,646 | 2,036,373 | ||||||||||||||
Total | $ | 8,111,019 | $ | 79,646 | $ | 8,031,373 |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Net sales | $ | 993,828 | $ | 579,493 | $ | 2,335,963 | $ | 1,663,689 | |||||||||||||||
Net (loss) income | $ | (73,703) | $ | 117,461 | $ | 151,493 | $ | 290,907 | |||||||||||||||
Net income - as a % of net sales | (7.4 | %) | 20.3 | % | 6.5 | % | 17.5 | % | |||||||||||||||
Adjustments to net (loss) income | |||||||||||||||||||||||
Income tax (benefit) expense | (7,015) | 10,640 | 30,377 | 39,947 | |||||||||||||||||||
Interest expense | 84,150 | 9,395 | 129,027 | 31,744 | |||||||||||||||||||
Interest income | (1,395) | (56) | (2,065) | (181) | |||||||||||||||||||
Other expense, net | 12,852 | 1,917 | 27,373 | 29,807 | |||||||||||||||||||
GAAP – Operating income | 14,889 | 139,357 | 336,205 | 392,224 | |||||||||||||||||||
Operating margin - as a % of net sales | 1.5 | % | 24.0 | % | 14.4 | % | 23.6 | % | |||||||||||||||
Deal and transaction costs | 31,867 | — | 39,285 | — | |||||||||||||||||||
Integration costs | 20,762 | 1,290 | 32,173 | 3,966 | |||||||||||||||||||
Contractual and non-cash integration costs | 58,411 | — | 58,411 | — | |||||||||||||||||||
Charge for fair value write-up of acquired inventory sold | 61,932 | — | 61,932 | — | |||||||||||||||||||
Severance and restructuring costs | — | 206 | — | 529 | |||||||||||||||||||
Amortization of intangible assets | 65,346 | 11,843 | 90,491 | 35,616 | |||||||||||||||||||
Adjusted operating income | 253,207 | 152,696 | 618,497 | 432,335 | |||||||||||||||||||
Adjusted operating margin - as a % of net sales | 25.5 | % | 26.3 | % | 26.5 | % | 26.0 | % | |||||||||||||||
Depreciation | 45,203 | 22,841 | 93,489 | 67,510 | |||||||||||||||||||
Adjusted EBITDA | $ | 298,410 | $ | 175,537 | $ | 711,986 | $ | 499,845 | |||||||||||||||
Adjusted EBITDA – as a % of net sales | 30.0 | % | 30.3 | % | 30.5 | % | 30.0 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||
(In thousands, except per share data) | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Net (loss) income | $ | (73,703) | $ | 117,461 | $ | 151,493 | $ | 290,907 | |||||||||||||||
Adjustments to net (loss) income | |||||||||||||||||||||||
Deal and transaction costs | 31,867 | — | 39,285 | — | |||||||||||||||||||
Integration costs | 20,762 | 1,290 | 32,173 | 3,966 | |||||||||||||||||||
Contractual and non-cash integration costs | 58,411 | — | 58,411 | — | |||||||||||||||||||
Charge for fair value of acquired inventory sold | 61,932 | — | 61,932 | — | |||||||||||||||||||
Severance and restructuring costs | — | 206 | — | 529 | |||||||||||||||||||
Loss on extinguishment of debt and modification | 2,235 | — | 2,235 | 23,338 | |||||||||||||||||||
Interest expense, net | 2,397 | — | 29,822 | — | |||||||||||||||||||
Amortization of intangible assets | 65,346 | 11,843 | 90,491 | 35,616 | |||||||||||||||||||
Tax effect of adjustments to net (loss) income and certain discrete tax items1 | (41,477) | (5,417) | (56,123) | (16,749) | |||||||||||||||||||
Non-GAAP net income | $ | 127,770 | $ | 125,383 | $ | 409,719 | $ | 337,607 | |||||||||||||||
Diluted (loss) earnings per common share | $ | (0.50) | $ | 0.86 | $ | 1.08 | $ | 2.13 | |||||||||||||||
Effect of adjustments to net (loss) income | 1.35 | 0.06 | 1.83 | 0.34 | |||||||||||||||||||
Diluted non-GAAP earnings per common share | $ | 0.85 | $ | 0.92 | $ | 2.91 | $ | 2.47 | |||||||||||||||
Diluted weighted averages shares outstanding | 148,570 | 136,631 | 140,892 | 136,556 | |||||||||||||||||||
Effect of adjustment to diluted weighted average shares outstanding | 1,099 | — | — | — | |||||||||||||||||||
Diluted non-GAAP weighted average shares outstanding | 149,669 | 136,631 | 140,892 | 136,556 |
Reg. S-K Item 601(b) Reference | Document Incorporates | Referenced Document on file with the Commission | ||||||||||||
(4) | Exhibit 4.3 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 | |||||||||||||
(4) | Exhibit 4.4 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 | |||||||||||||
(4) | Exhibit 4.5 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 | |||||||||||||
(4) | Exhibit 4.7 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 | |||||||||||||
(4) | Exhibit 4.9 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 | |||||||||||||
(4) | Exhibit 4.10 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 | |||||||||||||
(4) | Exhibit 4.11 to Entegris, Inc. Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2022 |
Reg. S-K Item 601(b) Reference | Exhibit No. | Document Filed Herewith | ||||||||||||
(10) | 10.1 | |||||||||||||
(10) | 10.2 | |||||||||||||
(31) | 31.1 | |||||||||||||
(31) | 31.2 | |||||||||||||
(32) | 32.1 | |||||||||||||
(101) | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||||
(101) | 101.SCH | XBRL Taxonomy Extension Schema Document | ||||||||||||
(101) | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||
(101) | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||||
(101) | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||
(101) | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||
(104) | 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||||||||||
ENTEGRIS, INC. | ||||||||
Date: November 2, 2022 | /s/ Gregory B. Graves | |||||||
Gregory B. Graves | ||||||||
Executive Vice President and Chief Financial | ||||||||
Officer (on behalf of the registrant and as | ||||||||
principal financial officer) |
LANDLORD: | |||||
RIVERTECH OWNER LLC | |||||
a Delaware limited liability company | |||||
By: | |||||
Name: Ron J. Hoyl | |||||
Title: Vice President | |||||
Hereunto duly authorized | |||||
TENANT: | |||||
ENTEGRIS, INC. | |||||
a Delaware corporation | |||||
By: | |||||
Name: | |||||
Title: | |||||
Hereunto duly authorized |
Dated: November 2, 2022 | /s/ Bertrand Loy | ||||
Bertrand Loy | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
Dated: November 2, 2022 | /s/ Gregory B. Graves | ||||
Gregory B. Graves | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Dated: November 2, 2022 | /s/ Bertrand Loy | ||||
Bertrand Loy | |||||
Chief Executive Officer | |||||
/s/ Gregory B. Graves | |||||
Gregory B. Graves | |||||
Chief Financial Officer |