Entegris, Inc.

Hey, everyone, and welcome to Integris' Q1 2022 earnings release call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Bill Seymour, Vice President of Investor Relations. Please go ahead, sir.

Good morning, everyone. Earlier today, we announced the financial results for our first quarter of 2022. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we filed with the SEC. Please refer to the information in the disclaimer slide in the presentation. On this call, we will also refer to non-GAAP financial measures as defined by the SEC in Regulation G. You can find a reconciliation table in today's news release, as well as on our IR page of our website at integris.com. On the call today are Bertrand Lawat, our CEO, and Greg Graves, our CFO. With that, I'll hand the call over to Bertrand.

Thank you, Bill, and good morning to all. We are very pleased with our strong performance this quarter, which was driven in large part by our team's great execution in what remains a very dynamic operating environment. Looking at our first quarter performance, sales were up 27% year on year. Growth was significant across all three divisions, driven by robust industry conditions and more wafers produced at the leading edge, which continues to translate into strong demand for products and solutions. Gross margins were up significantly in the quarter. EBITDA margins were almost 32% of sales, representing a 37% increase year-on-year. And on-gap EPS was up 51% year-over-year, further demonstrating the leverage in our business models. Let me now provide more color on our first quarter sales performance. Our growth in the quarter is the result of our expanding position in leading-edge logic and memory nodes. From a product standpoint, we achieved significant growth in our unit-driven solutions that are of increasing importance to our customers' technology roadmaps. Those included liquid filtration, advanced deposition materials, and surface preparation solutions, which collectively grew 24% in the quarter. Growth was also very strong in our CAPEX-driven solutions, including fluid handling, FOOPS, and gas filtration and purification products, which in the aggregate grew more than 50% in the quarter. As you know, these solutions are linked to new investments in additional fab capacity, and of course, when this new fab capacity comes online, it will ultimately drive sales of our consumable products. One other interesting theme worth highlighting is the ongoing strength in mainstream fabs, which have been driving sales of our 200 millimeter wafer handling products and advanced filtration solutions. This growth has been driven by higher mainstream fab activity, new capacity additions, and new requirements for greater chip reliability. Sales of our Aramis high purity bags used for COVID-19 vaccines were up year over year. However, our expectations for Aramis have moderated for the full year as demand for COVID vaccines has started to wane. Moving on, To our pending acquisition of CMC materials, we are pleased with the progress we have made toward the closing of the transaction. As a reminder, on March 3rd, CMC stockholders approved the transaction. On the regulatory front, we cleared the HSR waiting period in the US in January, and we have since received antitrust approvals in Korea and in Taiwan. We are now awaiting approvals from a few remaining jurisdictions. So again, on track and we continue to believe that the transaction will close in the second half of this year. We have also made substantial progress putting in place the capital structure to finance the acquisition and Greg will provide you more details on that in a moment. Finally, our joint teams continue to work diligently on integration planning. We are in the process of developing a detailed integration plan following a playbook we have used in previous transactions, including the ATMI acquisition. I would also like to highlight our recent announcements that Todd Edlund, our COO, will be retiring from Integris at closing. Todd has been a great partner to me and I cannot thank him enough for the impact he has made on Integris during its 30 years of service. Post-close, we will have a flatter leadership organization positioned to rapidly complete the integration, drive revenue and cost synergies, and pay down the debt. Now, transitioning to our outlook for the full year, we are increasing our 2022 guidance And we now expect revenue to grow 18 to 20%, which reflects a combination of stronger market growth and greater market outperformance for Integris. We also expect EBITDA flow through to be in line with our target model and expect full year 2022 non-GAAP EPS to exceed $4.25 per share. Embedded in this guidance, is the expectation that the industry will continue to face supply chain challenges for the balance of the year. And to be clear, this guidance does not include any impact from the pending CMC acquisition. Looking further ahead, we continue to have a high degree of conviction in the positive secular growth of the semiconductor market, driven by accelerated digitalization high performance computing, and IoT, to name just a few. These emerging applications will require new levels of performance from IC devices, and this is why the semiconductor manufacturers are investing in very ambitious process technology roadmaps. These roadmaps are calling for both the introduction of more complex device architectures, as well as further miniaturization of the critical dimensions on the wafer. This is obviously great news for Integris because we operate at the crossroads of material science and materials purity. And these two factors are two of the most critical enablers to the semiconductor technology roadmaps. And as we have laid out, these trends are leading to a rapidly expanding Integris content per wafer. Wrapping it up, we are pleased with our strong start and our prospects for the rest of the year. We have never been more optimistic about the relevance of our solutions to the technology roadmaps of our customers and our opportunity to deliver profitable growth for years to come. Finally, I want to take a moment to thank our customers for the trust and the confidence they place in Integris. And once again, thank the Integris teams around the world for their incredible focus and commitment in this challenging business environment. And of course, we look forward to completing the combination with CMC materials and to welcoming the team to Integris. Now, let me turn the call to Greg. Greg?