Entegris Reports Sales and Earnings at an All-Time High for the Fourth Quarter and Fiscal Year 2000
Outlook for First Quarter Good, Company Says
CHASKA, Minn.--(BUSINESS WIRE)--Oct. 11, 2000-- Entegris, Inc. (Nasdaq:ENTG - news), the materials integrity management company, today reported record, all-time high fiscal sales of $343.5 million for the year ended August 26, 2000. Sales jumped a remarkable 42 percent from fiscal 1999 sales of $242.0 million. Record net income increased to $50.6 million, compared with $5.7 million in 1999.
Every Entegris product group had record sales for the year. Fluid Handling products experienced the highest growth with a 77 percent sales increase from fiscal 1999 levels during the semiconductor industry expansion. Microelectronic product sales improved by 31 percent over the prior year.
``This was the strongest year in Entegris' 34-year history of annual profitability,'' said Stan Geyer, chief executive officer. ``Our extraordinary employees, strong product offerings, understanding of the needs of the semiconductor market, worldwide infrastructure, and ability to execute have been key to our record financial performance. We are well positioned for another year of profitable growth and continued long-term success.''
In the fourth quarter 2000, new sales records were set at $95.8 million, up 37 percent from $69.8 million in the fourth quarter last year. Net income, before an extraordinary charge related to the early repayment of debt, was $16.3 million or $0.24 per diluted share, compared to $3.2 million, or $0.05 per diluted share on a comparable basis in 1999. After the extraordinary item, net income for the quarter totaled $15.1 million, or $0.22 per diluted share.
``Fiscal 2000 was a year in which we achieved new levels of operational efficiencies in our global business,'' said James (Jim) E. Dauwalter, president and chief operating officer. ``We continued to manage costs effectively in an environment of incredible growth while investing in new technologies, business-to-business initiatives and an improved systems infrastructure,'' said Dauwalter. ``Given the current industry conditions, we expect sales to increase year-over-year for fiscal 2001 by about 20 percent, and operating margins and net income to improve,'' Dauwalter said.
Gross margins, on a normalized basis, improved 6.6 percentage points to 49.0 percent in the fourth quarter from the fourth quarter 1999 results of 42.4 percent. Capacity absorption, driven by increased sales levels, provided the majority of the gross margin improvement.
Cash and investments increased to $103.0 million during the quarter, a $69.7 million increase from the prior quarter, primarily due to the approximately $100 million, net of expenses, generated by the initial public offering in July 2000. Some of the proceeds from the initial public offering were used for the prepayment of $42 million in debt. The extraordinary charge of $1.1 million, net of tax, is related to fees associated with the prepayment of debt.
Earnings per diluted share for fiscal year 2000 were $0.06 on a reported basis compared to a loss of $2.53 per diluted share for fiscal 1999, excluding the extraordinary charge. On a pro forma basis, earnings for fiscal year 2000 were $0.79 compared to $0.09 for fiscal 1999, excluding the extraordinary charge. For any periods prior to the public offering in July 2000, the company is required to record a market value adjustment to redeemable common stock in its results of operations, to reflect the change in value of shares held by the company's Employee Stock Ownership Trust (ESOT). When the company went public in July 2000 these shares were reclassified to shareholders' equity since the company no longer has the obligation to redeem ESOT shares at the option of the ESOT owners. Therefore, such market value adjustments will not be reported on a going-forward basis. The company will present pro forma earnings per share for comparative purposes.
FORWARD-LOOKING STATEMENTS |
