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, 2013			September 28, 2013			December 31, 2012
Net sales	$	186,260		$	164,585		$	167,818
Cost of sales		106,876			94,453			101,357
Gross profit		79,384			70,132			66,461
Selling, general and administrative expenses		37,559			31,746			37,273
Engineering, research and development expenses		15,773			13,947			12,911
Amortization of intangible assets		2,358			2,343			2,335
Contingent consideration fair value adjustment		—			(1,813	)		—
Operating income		23,694			23,909			13,942
Other (income) expense, net		(663	)		963			(895	)
Income before income taxes		24,357			22,946			14,837
Income tax expense		3,816			5,139			3,581
Net income	$	20,541		$	17,807		$	11,256
Basic net income per common share:	$	0.15		$	0.13		$	0.08
Diluted net income per common share:	$	0.15		$	0.13		$	0.08
Weighted average shares outstanding:
Basic		138,615			138,904			137,867
Diluted		139,408			139,482			138,907

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

	Twelve Months Ended
	December 31, 2013			December 31, 2012
Net sales	$	693,459		$	715,903
Cost of sales		399,245			408,520
Gross profit		294,214			307,383
Selling, general and administrative expenses		137,123			147,405
Engineering, research and development expenses		55,320			50,940
Amortization of intangible assets		9,347			9,594
Contingent consideration fair value adjustment		(1,813	)		—
Operating income		94,237			99,444
Other income, net		(1,958	)		(259	)
Income before income taxes and equity in affiliates		96,195			99,703
Income tax expense		21,669			30,881
Equity in net income of affiliates		—			(3	)
Net income	$	74,526		$	68,825
Basic net income per common share:	$	0.54		$	0.50
Diluted net income per common share:	$	0.53		$	0.50
Weighted average shares outstanding:
Basic		138,950			137,306
Diluted		139,618			138,412

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	December 31, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	384,426	$	330,419
Short-term investments		—		19,995
Accounts receivable, net		101,873		94,016
Inventories		94,074		99,144
Deferred tax assets, deferred tax charges and refundable income taxes		20,844		20,201
Other current assets and assets held for sale		11,088		15,549
Total current assets		612,305		579,324
Property, plant and equipment, net		186,440		157,021
Intangible assets		43,509		47,207
Deferred tax assets – non-current		12,039		17,167
Other assets		21,001		10,825
Total assets	$	875,294	$	811,544
Accounts payable		38,396		36,341
Accrued liabilities		48,816		51,263
Income tax payable and deferred tax liabilities		10,373		5,659
Total current liabilities		97,585		93,263
Other liabilities		20,866		23,482
Equity		756,843		694,799
Total liabilities and equity	$	875,294	$	811,544

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2013			December 31, 2012			December 31, 2013			December 31, 2012
Operating activities:
Net income	$	20,541		$	11,256		$	74,526		$	68,825
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		7,656			7,151			29,468			28,013
Amortization		2,358			2,335			9,347			9,594
Stock-based compensation expense		2,069			1,851			7,928			9,881
Deferred tax valuation allowance and other tax items		4,950			12,012			8,232			10,822
Other		(1,582	)		198			(716	)		1,903
Changes in operating assets and liabilities:
Trade accounts and notes receivable		3,359			14,916			(13,363	)		10,626
Inventories		2,114			3,505			(441	)		(6,118	)
Accounts payable and accrued liabilities		(3,438	)		4,737			(4,408	)		6,265
Income taxes payable and refundable income taxes		(2,508	)		(9,351	)		2,731			(9,897	)
Other		(810	)		(10,269	)		(3,902	)		(14,752	)
Net cash provided by operating activities		34,709			38,341			109,402			115,162
Investing activities:
Acquisition of property and equipment		(11,330	)		(10,813	)		(60,360	)		(49,929	)
Acquisition of business, net of cash acquired		—			—			(13,358	)		(2,961	)
Purchases of short-term investments, net of proceeds from maturities		—			(11,994	)		20,000			(19,990	)
Other		1			229			6,689			413
Net cash used in investing activities		(11,329	)		(22,578	)		(47,029	)		(72,467	)
Financing activities:
Issuance of common stock		1,018			2,742			7,685			7,431
Repurchase and retirement of common stock		(668	)		—			(15,494	)		(427	)
Other		2,789			2,550			3,914			3,886
Net cash provided by (used in) financing activities		3,139			5,292			(3,895	)		10,890
Effect of exchange rate changes on cash		(875	)		1,534			(4,471	)		3,241
Increase in cash and cash equivalents		25,644			22,589			54,007			56,826
Cash and cash equivalents at beginning of period		358,782			307,830			330,419			273,593
Cash and cash equivalents at end of period	$	384,426		$	330,419		$	384,426		$	330,419

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

	Three Months Ended									Twelve Months Ended
Net sales	December 31, 2013			September 28, 2013			December 31, 2012			December 31, 2013			December 31, 2012
Contamination Control Solutions	$	123,665		$	105,150		$	110,266		$	447,410		$	461,838
Microenvironments		45,680			42,520			42,684			178,201			182,375
Specialty Materials		16,915			16,915			14,868			67,848			71,690
Total net sales	$	186,260		$	164,585		$	167,818		$	693,459		$	715,903
	Three Months Ended									Twelve Months Ended
Segment profit	December 31, 2013			September 28, 2013			December 31, 2012			December 31, 2013			December 31, 2012
Contamination Control Solutions	$	30,417		$	25,044		$	22,438		$	106,120			116,356
Microenvironments		8,413			8,635			6,401			35,737			37,223
Specialty Materials		970			2,001			1,046			7,087			12,230
Total segment profit		39,800			35,680			29,885			148,944			165,809
Amortization of intangibles		(2,358	)		(2,343	)		(2,335	)		(9,347	)		(9,594	)
Contingent consideration fair value adjustment		—			1,813			—			1,813			—
Unallocated expenses		(13,748	)		(11,241	)		(13,608	)		(47,173	)		(56,771	)
Total operating income	$	23,694		$	23,909		$	13,942		$	94,237		$	99,444

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, 2013			September 28, 2013			December 31, 2012			December 31, 2013			December 31, 2012
Net sales	$	186,260		$	164,585		$	167,818		$	693,459		$	715,903
Net income	$	20,541		$	17,807		$	11,256		$	74,526		$	68,825
Adjustments to net income
Equity in net income of affiliates		—			—			—			—			(3	)
Income tax expense		3,816			5,139			3,581			21,669			30,881
Other (income) expense, net		(663	)		963			(895	)		(1,958	)		(259	)
GAAP – Operating income		23,694			23,909			13,942			94,237			99,444
Amortization of intangible assets		2,358			2,343			2,335			9,347			9,594
Contingent consideration fair value adjustment		—			(1,813	)		—			(1,813	)		—
Charge associated with CEO succession and transition plan		—			—			—			—			3,928
Adjusted operating income		26,052			24,439			16,277			101,771			112,966
Depreciation		7,656			7,205			7,151			29,468			28,013
Adjusted EBITDA	$	33,708		$	31,644		$	23,428		$	131,239		$	140,979
Adjusted operating margin		14.0	%		14.8	%		9.7	%		14.7	%		15.8	%
Adjusted EBITDA – as a % of net sales		18.1	%		19.2	%		14.0	%		18.9	%		19.7	%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Earnings per Share

(In thousands)

(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31, 2013			September 28, 2013			December 31, 2012			December 31, 2013			December 31, 2012
GAAP net income	$	20,541		$	17,807		$	11,256		$	74,526		$	68,825
Adjustments to net income:
Amortization of intangible assets		2,358			2,343			2,335			9,347			9,594
Contingent consideration fair value adjustment		—			(1,813	)		—			(1,813	)		—
Reclassification of cumulative translation adjustment associated with liquidated subsidiaries		48			739			—			787			—
Gain on sale of equity investment		—			—			—			—			(1,522	)
Charge associated with CEO succession and transition plan		—			—			—			—			3,928
Tax effect of adjustments to net income attributable to Entegris, Inc.		(850	)		(190	)		(841	)		(2,714	)		(4,643	)
Non-GAAP net income	$	22,097		$	18,886		$	12,750		$	80,133		$	76,182
Diluted earnings per common share	$	0.15		$	0.13		$	0.08		$	0.53		$	0.50
Effect of adjustments to net income		0.01			0.01			0.01			0.04			0.05
Diluted non-GAAP earnings per common share	$	0.16		$	0.14		$	0.09		$	0.57		$	0.55

### END ###