Entegris (ENTG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

	Three Months Ended
	December 31, 2011			October 1, 2011			December 31, 2010
Net sales	$	163,922		$	173,014		$	182,100
Cost of sales		96,308			98,186			101,591
Gross profit		67,614			74,828			80,509
Selling, general and administrative expenses		32,398			33,533			38,199
Engineering, research and development expenses		11,029			11,957			10,997
Amortization of intangible assets		2,462			2,505			2,772
Operating income		21,725			26,833			28,541
Interest expense (income), net		9			(38	)		306
Other (income) expense, net		(102	)		315			(271	)
Income before income taxes and equity in affiliates		21,818			26,556			28,506
Income tax (benefit) expense		(18,333	)		4,582			(196	)
Equity in net (income) loss of affiliates		(10	)		(14	)		1,838
Net income		40,161			21,988			26,864
Net loss attributable to noncontrolling interest		—			—			(139	)
Net income attributable to Entegris, Inc.	$	40,161		$	21,988		$	27,003
Amounts attributable to Entegris, Inc.:
Basic net income per common share:	$	0.30		$	0.16		$	0.20
Diluted net income per common share:	$	0.29		$	0.16		$	0.20
Weighted average shares outstanding:
Basic		135,509			134,995			132,314
Diluted		137,032			136,305			133,971

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

	Twelve months ended
	December 31, 2011			December 31, 2010
Net sales	$	749,259		$	688,416
Cost of sales		423,329			377,773
Gross profit		325,930			310,643
Selling, general and administrative expenses		140,847			147,051
Engineering, research and development expenses		47,980			43,934
Amortization of intangible assets		10,225			13,231
Operating income		126,878			106,427
Interest expense, net		659			3,516
Other (income) expense, net		(1,745	)		1,430
Income before income taxes		127,964			101,481
Income tax expense		4,217			15,006
Equity in net (income) loss of affiliates		(499	)		1,353
Net income		124,246			85,122
Net income attributable to noncontrolling interest		400			766
Net income attributable to Entegris, Inc.	$	123,846		$	84,356
Amounts attributable to Entegris, Inc.:
Basic net income per common share:	$	0.92		$	0.64
Diluted net income per common share:	$	0.91		$	0.63
Weighted average shares outstanding:
Basic		134,685			131,685
Diluted		136,223			133,174

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	December 31, 2011		December 31, 2010
ASSETS
Cash and cash equivalents	$	273,593	$	133,954
Accounts receivable, net		107,223		124,732
Inventories		93,937		101,043
Deferred tax assets, deferred tax charges and refundable income taxes		15,805		11,484
Other current assets and assets held for sale		12,441		15,878
Total current assets		502,999		387,091
Property, plant and equipment, net		130,554		126,725
Intangible assets		56,453		65,087
Deferred tax assets – non-current		25,119		10,855
Other assets		9,538		11,627
Total assets	$	724,663	$	601,385
LIABILITIES AND EQUITY
Accounts payable	$	30,609	$	34,631
Accrued liabilities		47,841		59,503
Income tax payable and deferred tax liabilities		14,144		13,500
Total current liabilities		92,594		107,634
Other liabilities		23,831		29,738
Equity		608,238		464,013
Total liabilities and equity	$	724,663	$	601,385

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Operating activities:
Net income	$	40,161		$	26,864		$	124,246		$	85,122
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		6,547			7,322			26,839			27,967
Amortization		2,462			2,772			10,225			13,231
Stock-based compensation expense		1,735			2,154			7,519			7,588
Deferred tax valuation allowance and other tax items		(19,254	)		(5,017	)		(19,367	)		(2,953	)
Other		978			2,881			541			2,676
Changes in operating assets and liabilities:
Trade accounts and notes receivable		3,652			971			19,336			(26,789	)
Inventories		7,836			(3,056	)		3,632			(14,285	)
Accounts payable and accrued liabilities		(289	)		2,509			(15,127	)		34,860
Income taxes payable and refundable income taxes		418			4,813			(433	)		13,243
Other		270			(2,229	)		(125	)		238
Net cash provided by operating activities		44,516			39,984			157,286			140,898
Investing activities:
Acquisition of property and equipment		(6,121	)		(4,635	)		(30,267	)		(16,794	)
Other		2,440			317			1,836			4,809
Net cash used in investing activities		(3,681	)		(4,318	)		(28,431	)		(11,985	)
Financing activities:
Payments on short-term borrowings and long-term debt		—			(6,203	)		—			(259,157	)
Proceeds from short-term and long-term borrowings		—			—			—			186,649
Issuance of common stock		6,034			5,136			11,690			6,799
Other		259			85			(826	)		—
Net cash provided by (used in) financing activities		6,293			(982	)		10,864			(65,709	)
Effect of exchange rate changes on cash		(572	)		456			(80	)		2,050
Increase in cash and cash equivalents		46,556			35,140			139,639			65,254
Cash and cash equivalents at beginning of period		227,037			98,814			133,954			68,700
Cash and cash equivalents at end of period	$	273,593		$	133,954		$	273,593		$	133,954

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

	Three Months Ended						Twelve Months Ended
Net sales	December 31, 2011		October 1, 2011		December 31, 2010		December 31, 2011		December 31, 2010
Contamination Control Solutions	$	105,062	$	110,015	$	118,106	$	483,958	$	435,858
Microenvironments		40,116		42,738		45,772		182,150		182,485
Specialty Materials		18,744		20,261		18,222		83,151		70,073
Total net sales	$	163,922	$	173,014	$	182,100	$	749,259	$	688,416

	Three Months Ended									Twelve Months Ended
Segment profit	December 31, 2011			October 1, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Contamination Control Solutions	$	26,082		$	29,522		$	34,609		$	140,313		$	122,891
Microenvironments		6,201			6,790			7,602			29,959			38,930
Specialty Materials		4,340			4,675			2,847			18,255			11,080
Total segment profit		36,623			40,987			45,058			188,527			172,901
Amortization of intangibles		(2,462	)		(2,505	)		(2,772	)		(10,225	)		(13,231	)
Unallocated expenses		(12,436	)		(11,649	)		(13,745	)		(51,424	)		(53,243	)
Total operating income	$	21,725		$	26,833		$	28,541		$	126,878		$	106,427

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31, 2011			October 1, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Net sales	$	163,922		$	173,014		$	182,100		$	749,259		$	688,416
Net income attributable to Entegris, Inc.	$	40,161		$	21,988		$	27,003		$	123,846		$	84,356
Adjustments to net income attributable to Entegris, Inc.
Net (loss) income attributable to noncontrolling interest		—			—			(139	)		400			766
Equity in net (income) loss of affiliates		(10	)		(14	)		1,838			(499	)		1,353
Income tax (benefit) expense		(18,333	)		4,582			(196	)		4,217			15,006
Other (income) expense, net		(102	)		315			(271	)		(1,745	)		1,430
Interest expense (income), net		9			(38	)		306			659			3,516
GAAP – Operating income		21,725			26,833			28,541			126,878			106,427
Amortization of intangible assets		2,462			2,505			2,772			10,225			13,231
Gain associated with pension curtailment		—			(726	)		—			(726	)		—
Adjusted operating income		24,187			28,612			31,313			136,377			119,658
Depreciation		6,547			6,763			7,322			26,839			27,967
Adjusted EBITDA	$	30,734		$	35,375		$	38,635		$	163,216		$	147,625
Adjusted operating margin		14.8	%		16.5	%		17.2	%		18.2	%		17.4	%
Adjusted EBITDA – as a % of net sales		18.7	%		20.4	%		21.2	%		21.8	%		21.4	%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Earnings per Share

(In thousands)

(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31, 2011			October 1, 2011			December 31, 2010			December 31, 2011			December 31, 2010
GAAP net income attributable to Entegris, Inc.	$	40,161		$	21,988		$	27,003		$	123,846		$	84,356
Adjustments to net income attributable to Entegris, Inc.:
Amortization of intangible assets		2,462			2,505			2,772			10,225			13,231
Accelerated write-off of debt costs		—			—			—			282			890
Gain on sale of equity investment		—			—			—			(1,523	)		(892	)
Gain associated with pension curtailment		—			(726	)		—			(726	)		—
Reversal of deferred tax valuation allowance(1)		(20,999	)		—			—			(20,999	)		—
Impairment of equity investment		—			—			2,164			—			2,164
Tax effect of adjustments to net income attributable to Entegris, Inc.		(863	)		(458	)		(1,022	)		(3,355	)		(4,871	)
Non-GAAP net income attributable to Entegris, Inc.	$	20,761		$	23,309		$	30,917		$	107,750		$	94,878
Diluted earnings per common share attributable to Entegris, Inc.:	$	0.29		$	0.16		$	0.20		$	0.91		$	0.63
Effect of adjustments to net income attributable to Entegris, Inc.	$	0.14		$	0.01		$	0.03		$	0.12		$	0.08
Diluted non-GAAP earnings per common share attributable to Entegris, Inc.:	$	0.15		$	0.17		$	0.23		$	0.79		$	0.71

(1) This amount represents the reversal of the remaining valuation allowance on certain of the Company’s deferred tax assets. The amount excludes the reversal of the valuation allowance on those deferred tax assets realized in 2011 and 2010 based on earnings in those years.