Entegris pays down $51 million of debt in second half of 2014, ends Q4 with $390 million cash

By Lisa Kerner

Charlotte, N.C., Feb. 10 – Entegris, Inc. president and chief executive officer Bertrand Loy called 2014 a “transformational year” for the company, which included the completion of the ATMI, Inc. acquisition in April.

The company generated $46 million of cash from operations in the quarter, which allowed it to repay $26 million of long-term debt, said Loy during the company’s earnings conference call on Tuesday.

Entegris repaid $25 million of long-term debt in the third quarter.

The company had a cash balance at Dec. 31 of $390 million, compared to $384 million for the prior-year period.

“At year-end, long-term debt, including the term loan and the notes, was $767 million,” said chief financial officer Greg Graves on the call. We anticipate making additional pay downs of $100 million in the next six to nine months, consistent with our current priorities for capital allocation.”

The term loan B totaled $407 million and the notes totaled $360 million at quarter end, according to the earnings presentation.

When asked about the uses of cash, Graves said the company will continue to invest in infrastructure, with $60 million earmarked for capital expenditures in 2015. However, the primary use of cash, he said, is to reduce debt, giving the company “flexibility for strategic moves down the road.”

The company spent $14 million on capital expenditures in the fourth quarter and plans to spend between $15 million and $20 million in the first quarter of 2015.

Interest expense for the fourth quarter was $9.8 million, down from $10.1 million from the third quarter, reflecting lower debt levels, said Graves.

“In summary, against seasonally slower trends and FX headwinds, our topline performed well in the fourth quarter,” said Graves.

Financial highlights

Entegris had sales for the quarter of about $272 million and net income of $9.3 million, or $0.07 per diluted share.

Sales for the full year were $962 million, compared to sales of about $694 million for fiscal 2013.

Net income for the year was $7.9 million, or $0.06 per diluted share.

The company generated adjusted EBITDA of $56 million for the fourth quarter and about $208 million for the full year.

Entegris is a Billerica, Mass.-based provider of products for purifying, protecting and transporting critical materials used in processing and manufacturing in semiconductor and other high-tech industries.

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