Entegris : Reports Fourth Quarter Results

Earnings Summary Fourth Quarter 2019

February 4, 2020

SAFE HARBOR

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "should," "may," "will," "would" or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include statements related to future period guidance; future sales, net income, net income per diluted share, non-GAAP EPS, non-GAAP net income, expenses and other financial metrics; the Company's performance relative to its markets; the impact, financial or otherwise, of any organizational changes; market and technology trends; the development of new products and the success of their introductions; the Company's capital allocation strategy, which may be modified at any time for any reason, including share repurchases, dividends, debt repayments and potential acquisitions; the effect of the Tax Cuts and Jobs Act on the Company's capital allocation strategy; the impact of the acquisitions the Company has made and commercial partnerships the Company has established; the Company's ability to execute on its strategies; and other matters. These statements involve risks and uncertainties, and actual results may differ materially from those

projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, weakening of global and/or regional economic

conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company's products and solutions; the Company's ability to meet rapid demand shifts; the Company's ability to continue technological innovation and introduce new products to meet customers' rapidly changing requirements; risks associated with the impact of public health epidemics, such as the coronavirus currently impacting China, on our employees, customers and suppliers; the Company's concentrated customer base; the Company's ability to identify, effect and integrate acquisitions, joint ventures or other transactions; the Company's ability to effectively implement any organizational changes; the Company's ability to protect and enforce intellectual property rights; operational, political and legal risks of the Company's international operations; the Company's

dependence on sole source and limited source suppliers; the increasing complexity of certain manufacturing processes; raw material shortages, supply

constraints and price increases; changes in government regulations of the countries in which the Company operates; fluctuation of currency exchange rates; fluctuations in the market price of the Company's stock; the level of, and obligations associated with, the Company's indebtedness; and other risk factors and additional information described in the Company's filings with the Securities and Exchange Commission, including under the heading "Risks Factors" in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed on February 11, 2019, and in the Company's other periodic filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

This presentation contains references to "Adjusted EBITDA," "Adjusted EBITDA Margin," "Adjusted EBITDA - as a % of Net Sales", "Adjusted Operating Income," "Adjusted Operating Margin", "Adjusted Gross Profit," "Adjusted Gross Profit Margin", "Adjusted Segment Profit", "Adjusted Segment Profit Margin", "Non-GAAP Net Income" and "Diluted Non-GAAP Earnings per Share" that are not presented in accordance GAAP. The non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures but should instead be read in conjunction with the GAAP financial measures. Further information with respect to and reconciliations of such measures to the most directly comparable GAAP financial measure can be found attached to this presentation.

2

4Q19 AND FY 2019 FINANCIAL HIGHLIGHTS

• Fourth-quarterrevenue of $427.0 million, increased 6% from prior year
• Fiscal 2019 revenue of $1.6 billion, increased 3%
• Fiscal 2019 GAAP diluted EPS of $1.87, increased 11%
• Fiscal 2019 Non-GAAP diluted EPS of $1.93, increased 2%

3

Summary - Consolidated Statement of Operations (GAAP)

					4Q19 over	4Q19 over
$ in millions, except per share data	4Q19	4Q19 Guidance	3Q19	4Q18	4Q18	3Q19
Net Revenue	$427.0	$420 -$435	$394.1	$401.6	6.3%	8.3%
Gross Margin	46.3%		43.2%	44.8%
Operating Expenses	$113.6	$109 - $111	$117.6	$108.4	4.8%	(3.4%)
Operating Income	$84.1		$52.8	$71.3	18.0%	59.3%
Operating Margin	19.7%		13.4%	17.8%
Tax Rate	19.2%		2.1%	(35.3%)
Net Income	$57.4	$51 - $58	$40.8	$80.8	(29.0%)	40.7%
Earnings per diluted share	$0.42	$0.38 - $0.43	$0.30	$0.57	(26.3%)	40.0%

4

Summary - Consolidated Statement of Operations (Non-GAAP)1

					4Q19 over	4Q19 over
$ in millions, except per share data	4Q19	4Q19 Guidance	3Q19	4Q18	4Q18	3Q19
Net Revenue	$427.0	$420 -$435	$394.1	$401.6	6.3%	8.3%
Adjusted Gross Margin2	46.3%		44.6%	45.7%
Non-GAAP Operating	$93.2	$90 - $92	$87.6	$90.1	3.4%	6.4%
Expenses3
Adjusted Operating Income	$104.6		$88.2	$93.5	11.9%	18.6%
Adjusted Operating Margin	24.5%		22.4%	23.3%
Non-GAAP Tax Rate4	20.3%		11.5%	21.3%
Non-GAAP Net Income5	$74.6	$69 - $76	$68.2	$66.3	12.5%	9.4%
Non-GAAP EPS	$0.55	$0.51 - $0.56	$0.50	$0.47	17.0%	10.0%

1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation.
2. Adjusted Gross Margin excludes charge for fair value write-up of acquired inventory sold and severance and restructuring costs.
3. Non-GAAPOperating Expenses exclude amortization expense, deal costs, integration costs, loss on sale of subsidiary, and severance and restructuring costs.
4. Non-GAAPTax Rate reflects the tax effect of non-GAAP adjustments and discrete tax items to GAAP taxes.
5. Non-GAAPNet Income excludes amortization expense, loss on debt extinguishment and modification, the tax effect of non-GAAP adjustments and discrete tax items to GAAP taxes.

5

Summary - Consolidated Statement of Operations (GAAP)

$ in millions, except per share data	Fiscal Year Ended	Fiscal Year Ended
December 31, 2019	December 31, 2018	Year-over-Year
Net Revenue	$1,591.1	$1,550.5	2.6%
Gross Margin	44.7%	46.4%
Operating Expenses	$472.4	$427.1	10.6%
Operating Income	$239.3	$292.7	(18.2%)
Operating Margin	15.0%	18.9%
Tax Rate	19.9%	5.4%
Net Income	$254.9	$240.8	5.9%
EPS	$1.87	$1.69	10.7%

6

Summary - Consolidated Statement of Operations (NON-GAAP)1

$ in millions, except per share data	Fiscal Year Ended	Fiscal Year Ended
December 31, 2019	December 31, 2018	Year-over-Year
Net Revenue	$1,591.1	$1,550.5	2.6%
Adjusted Gross Margin2	45.3%	46.9%
Non-GAAP Operating Expenses3	$358.7	$356.2	0.7%
Adjusted Operating Income	$361.8	$371.0	(2.5%)
Adjusted Operating Margin	22.7%	23.9%
Non-GAAP Tax Rate4	17.7%	19.5%
Non-GAAP Net Income5	$264.1	$269.8	(2.1%)
Non-GAAP EPS	$1.93	$1.89	2.1%

1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation.
2. Adjusted gross margin excludes certain impairment of equipment and severance charges an fair value mark-up of acquired inventory.
3. Non-GAAPOperating Expenses exclude amortization expense, severance charges and impairment of equipment and intangibles.
4. Non-GAAPTax Rate reflects the tax effect of non-GAAP adjustments and discrete tax items to GAAP taxes.
5. Non-GAAPNet Income excludes amortization expense, severance charges, loss on debt extinguishment and modification, the Versum termination fee, net, and impairment of assets.

7

RESULTS BY SEGMENT1

Specialty Chemicals

and Engineered

Materials Segment2

$ in millions
$180			40%
$160			35%
$140			30%
$120
		25%
$100
		20%
$80
		15%
$60
		10%
$40
		5%
$20
$0					0%
		4Q18 1Q19 2Q19 3Q19 4Q19
			Sales		Adj. Op. margin

Microcontamination

			Control Segment3
$180			40%
$160			35%
$140			30%
$120			25%
$100
		20%
$80
		15%
$60
		10%
$40
$20			5%
$0					0%
		4Q18 1Q19 2Q19 3Q19 4Q19
			Sales		Adj. Op. margin

				Advanced
		Materials Handling
				Segment4
$180			40%
$160			35%
$140			30%
$120
		25%
$100
		20%
$80
		15%
$60
		10%
$40
		5%
$20
$0						0%
		4Q18 1Q19 2Q19 3Q19 4Q19
			Sales			Adj. Op. margin

1. In 1Q19, the Company changed its definition of segment profit to include inter-segment sales. Prior period information has been recast to reflect the change. Adjusted segment operating margin excludes amortization of intangibles and unallocated expenses.
2. Segment profit for SCEM includes a charge for fair value write-up of inventory of $120K, $695K, $4,483K and ($476)K for 1Q19, 2Q19, 3Q19 and 4Q19, respectively and severance charges of $519K, $2,143K and 184K in 1Q19, 3Q19 and 4Q19, respectively.
3. Segment profit for MC includes a charge for fair value write-up of inventory of $3,379K, $2,035K and $687K for 4Q18, 1Q19 and 4Q19, respectively. Segment profit for MC includes severance charges of $724K, $2,977K and $195K for 1Q19, 3Q19 and 4Q19, respectively.
4. Segment profit for AMH includes severance and restructuring charges of $460K, $578K, $3,135 and ($379)K for 4Q18, 1Q19, 3Q19 and 4Q19, respectively.

8

REVENUE BY GEOGRAPHY

2019 Revenue by Geography

Revenue = $ million

Taiwan

N. America

$309.8M $380.9M

Southeast

Asia $103.6M

$132.2M Europe

$244.4M

$205.5M

Japan

South Korea

$214.7M

China

2019 vs. 2018 Growth Rate

Taiwan			7%
N. America				10%
South Korea			1%
Japan		-2%
China			5%
Europe		-4%
Southeast Asia	-12%

-20%

-10%

0%

10%

20%

9

Summary - Balance Sheet Items

$ in millions	4Q19
	$ Amount	% Total
Cash & Cash Equivalents	$351.9	14.0%
Accounts Receivable, net	$234.4	9.3%
Inventories	$287.1	11.4%
Net PP&E	$479.5	19.1%
Total Assets	$2,516.1
Current Liabilities1	$264.4	10.5%
Long-term debt, excluding	$932.5	37.1%
current maturities
Total Liabilities	$1,350.2	53.7%
Total Shareholders' Equity	$1,165.9	46.3%
AR - DSOs	50.1
Inventory Turns	3.2

3Q19

$ Amount	% Total
$282.7	11.5%
$261.3	10.6%
$290.3	11.8%
$470.0	19.0%
$2,467.7
$213.1	8.6%
$934.1	37.9%
$1,347.8	54.6%
$1,119.9	45.4%

60.5

3.2

	4Q18
$ Amount	% Total
$482.1	20.8%
$222.1	9.6%
$268.1	11.6%
$419.5	18.1%
$2,317.6
$269.7	11.6%
$934.9	40.3%
$1,305.6	56.3%
$1,012.0	43.7%
	50.4
	3.3

1. Current Liabilities in 4Q19, 3Q19 and 4Q18 includes $4 million of current maturities of long term debt.

10

ADJUSTED EBITDA MARGIN1

Adjusted EBITDA and Adjusted EBITDA Margin

130

120

110

100

90

80

70

60

50

	28.9%							29.3%
	28.5%	27.7%					$125
27.7%	27.7%		27.5%	27.8%		27.3%
26.8%
	$106	$109	$110	$110	$109	25.2%	$108
23.9%	$97
$96					$95

$88

$76

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Adj. EBITDA in $M Adj. EBITDA as % of Sales

1. See Reconciliation of GAAP Income to Adjusted Operating Income and Adjusted EBITDA in the appendix of this presentation.

11

Cash Flows

$ in millions	4Q19	3Q19	4Q18
Beginning Cash Balance	$282.7	$521.4	$294.9
Cash provided by operating activities	$128.6	$25.3	$91.3
Capital expenditures	($25.9)	($26.3)	($34.8)
Proceeds from long-term debt	-	-	$400.0
Acquisition of business	($11.0)	($217.1)	-
Payments on long-term debt	($2.0)	-	($108.9)
Repurchase and retirement of common stock	($15.0)	($15.0)	($143.8)
Dividend payments	($10.8)	($10.8)	($9.9)
Other investing activities	$1.1	$2.6	($0.5)
Other financing activities	$2.8	$3.1	($6.1)
Effect of exchange rates	$1.4	($0.5)	($0.1)
Ending Cash Balance	$351.9	$282.7	$482.1
Free Cash Flow1	$102.7	($1.0)	$56.5
Adjusted EBITDA	$125.0	$107.5	$110.4

1. Free cash flow equals cash from operations less capital expenditures.

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Outlook

GAAP

$ in millions, except per share data	1Q20 Guidance	4Q19 Actual	4Q18 Actual
Net Revenue	$415 -$430	$427.0	$401.6
Operating Expenses	$111	- $113	$113.6	$108.4
Net Income	$56	- $63	$57.4	$80.8
Earnings (Per Diluted Share)	$0.41	- $0.46	$0.42	$0.57

Non-GAAP

$ in millions, except per share data	1Q20 Guidance	4Q19 Actual	4Q18 Actual
Net Revenue	$415	- $430	$427.0	$401.6
Non-GAAP Operating Expenses	$96	- $98	$93.2	$90.1
Non-GAAP Net Income1	$68	- $75	$74.6	$66.3
Non-GAAP EPS	$0.50	- $0.55	$0.55	$0.47

1. See GAAP to Non-GAAP reconciliation tables in the appendix of this presentation.

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Thoughtful and balanced capital allocation

More than $3.5 billion allocated over the past 6 years1

(More than $630 million in 2019)

		Acquisition of ATMI in 2014 ($810M net of cash acquired), PSS,		2019
	Acquisitions	Saes Pure Gas, DSC, MPD, Anow continued "bolt on"		$277M $1.5B
	acquisitions broadened capabilities and leveraged global
		platform
	ER&D	Continued investments and deployment of new products,		$702
	increased customer value, and drove competitive	$119M
		advantage
	CapEx	Increased investments to support superior growth and results	$112M $571

Debt Repayment2

Share Buyback

Dividend

Deleveraging increases financial flexibility

Initiated $10M quarterly share buyback in Q3 2017; increased to $15m in Q2 2019.

Initiated dividend in October 2017. Increased to $0.08 per share in July 2019.

$353

$80M $290

$41M

$90

1. Reflects 2013-2019 capital allocations.
2. Debt reduction following ATMI purchase to 11/18 refinance and through 2019.

14

Entegris Capital Allocation Principles

Capital Structure Targets

• Minimum cash balance of approximately $200 million (globally)
• A debt rating of Ba1 or better

Capital Allocation Priorities

1. Investments in R&D and CAPEX
2. • ER&D: 8% of sales target
   • CAPEX: 7% of sales target
3. Value Accretive Acquisitions
4. • Intend to be a consolidator
   • Targets: Core semiconductor and other adjacent markets
   • Financial Criteria Includes: (1) Accretion by year 2; (2) High single-digit ROIC by year 3; and (3) Growth enabling capabilities or market expansion
5. Return of Capital: Dividends and Share Buybacks1
6. • 60% target payout of annual free cash flow
   • Dividend Target: Ongoing dividend with incremental increases as free cash flow warrants
   • Share Buybacks: Approximately $15 million per quarter, plus opportunistic buybacks when appropriate

1. Capital allocation parameters could change depending on the level of acquisition activity

15

Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved.

NON-GAAP RECONCILIATION TABLE

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

	Three months ended	Twelve months ended
	December 31,	December 31,	September 28,		December 31,	December 31,
	2019	2018	2019		2019	2018
Net Sales	$426,998	$401,642	$394,147		$1,591,066	$1,550,497
Gross profit-GAAP	$197,636	$179,740	$170,350		$711,653	$719,831
Adjustments to gross profit:
Severance and restructuring costs	(12)	460	990		1,336	460
Charge for fair value mark-up of acquired inventory
sold	211	3,379	4,483		7,544	6,868
Adjusted gross profit	$197,835	$183,579	$175,823		$720,533	$727,159
Gross margin - as a % of net sales	46.3%	44.8%	43.2%	44.7%	46.4%
Adjusted gross margin - as a % of net sales	46.3%	45.7%	44.6%	45.3%	46.9%

17

NON-GAAP RECONCILIATION TABLE

RECONCILIATION OF GAAP SEGMENT PROFIT TO ADJUSTED OPERATING INCOME

in thousands		Three months ended					Twelve months ended
Segment profit-GAAP1	December 31,	December 31,	September 28,			December 31,	December 31,
2019	2018	2019			2019	2018
Specialty Chemicals and Engineered Materials	$32,822	$28,221	$17,074		$98,327	$127,080
Microcontamination Control	57,157	46,879	46,792		194,398	166,852
Advanced Materials Handling	20,686	19,096	17,077		75,173	92,327
Total segment profit	110,665	94,196	80,943		367,898	386,259
Amortization of intangible assets	16,028	17,050	15,152		66,428	62,152
Unallocated expenses	10,552	5,838	12,998		62,192	31,418
Total operating income	$84,085	$71,308	$52,793		$239,278	$292,689
		Three months ended			Twelve months ended
Adjusted segment profit		December 31,	December 31,	September 28,				December 31,	December 31,
	2019	2018	2019			2019	2018
Specialty Chemicals and Engineered Materials2	$32,530	$28,221	$23,700		$105,995	$127,080
Microcontamination Control3	58,039	50,258	49,769		201,016	173,720
Advanced Materials Handling4		20,307	19,556	20,212			78,507	93,253
Total adjusted segment profit	110,876	98,035	93,681		385,518	394,053
Adjusted amortization of intangible assets5	-	-	-		-	-
Adjusted unallocated expenses6		6,229	4,550	5,461			23,678	23,060
Total adjusted operating income	$104,647	$93,485	$88,220		$361,840	$370,993

1. In 1Q19, the Company changed its definition of segment profit to include inter-segment sales. Prior period information has been recast to reflect the change.
2. Adjusted segment profit for Specialty Chemicals and Engineered Materials excludes charges for fair value mark-up of acquired inventory sold of ($476), $4,483 for the three months ended December 31, 2019 and September 28, 2019, respectively, and $4,822 for the twelve months ended December 31, 2019. Adjusted segment profit for Specialty Chemicals and Engineered Materials excludes severance and restructuring costs of $184 and $2,143 for the three months ended December 31, 2019 and September 28, 2019, respectively, and $2,846 for the twelve months ended December 31, 2019.

1. Adjusted segment profit for Microcontamination Control excludes charges for fair value mark-up of acquired inventory sold of $687 and $3,379 for the three months ended December 31, 2019 and December 31, 2018, respectively, and $2,722 and $6,868 for the twelve months ended December 31, 2019 and December 31, 2018. Adjusted segment profit for Microcontamination Control excludes severance and restructuring costs of $195 and $2,977 for the three months ended December 31, 2019 and September 28, 2019, respectively, and $3,896 for the twelve months ended December 31, 2019.
2. Adjusted segment profit for Advanced Material Handling excludes severance and restructuring costs of ($379) and $3,135 for the three months ended December 31, 2019 and September 28, 2019, respectively, and $3,334 for the twelve months ended December 31, 2019. Adjusted segment profit for Advanced Materials Handling excludes charges for impairment of equipment and loss on sale of subsidiary of $460 and $466, respectively, for the twelve months ended December 31, 2018.
3. Adjusted amortization of intangible assets excludes amortization expense of $16,028, $17,050, and $15,152 for the three months ended December 31, 2019, December 31, 2018, and September 28, 2019, respectively, and $66,428 and $62,152 for the twelve months ended December 31, 2019 and December 31, 2018, respectively.
4. Adjusted unallocated expenses excludes deal and integration expenses of $4,323, $1,288, and $7,289 for the three months ended December 31, 2019, December 31, 2018 and September 28, 2019, respectively, and $36,096 and $8,358 for the twelve

18 months ended December 31, 2019 and December 31, 2018, respectively. Adjusted unallocated expenses excludes severance and restructuring costs of $248 for the three months ended September 28, 2019 and $2,418 for the twelve months ended December 31, 2019.

NON-GAAP RECONCILIATION TABLE

RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA

	Three months ended	Twelve months ended
	December 31,	December 31,	September 28,		December 31,	December 31,
$ in thousands	2019	2018	2019		2019	2018
Net sales	$426,998	$401,642	$394,147		$1,591,066	$1,550,497
Net income	$57,438	$80,784	$40,767		$254,860	$240,755
Adjustments to net income:
Income tax expense (benefit)	13,656	(21,078)	876		63,189	13,677
Interest expense, net	12,743	8,426	10,216		42,310	30,255
Other expense (income), net	248	3,176	934		(121,081)	8,002
GAAP - Operating income	84,085	71,308	52,793		239,278	292,689
Charge for fair value write-up of
acquired inventory sold	211	3,379	4,483		7,544	6,868
Deal Costs	973	-	4,891		26,164	5,121
Integration Costs	3,350	1,288	2,398		9,932	3,237
Severance and restructuring costs	-	460	8,503		12,494	460
Loss on sale of subsidiary	-	-	-		-	466
Amortization of intangible assets	16,028	17,050	15,152		66,428	62,152
Adjusted operating income	104,647	93,485	88,220		361,840	370,993
Depreciation	20,352	16,880	19,306		74,975	65,116
Adjusted EBITDA	$124,999	$110,365	$107,526		$436,815	$436,109
Net income - as a % of net sales	13.5%	20.1%	10.3%	16.0%	15.5%
Adjusted operating margin	24.5%	23.3%	22.4%	22.7%	23.9%
Adjusted EBITDA - as a % of net sales	29.3%	27.5%	27.3%	27.5%	28.1%

19

NON-GAAP RECONCILIATION TABLE

RECONCILIATION OF GAAP NET INCOME AND EARNINGS PER SHARE TO NON-GAAP NET INCOME AND EARNINGS PER SHARE

	Three months ended	Twelve months ended
	December 31,	December 31,	September 28,		December 31,	December 31,
$ in thousands, except per share data	2019	2018	2019		2019	2018
GAAP net income	$57,438	$80,784	$40,767		$254,860	$240,755
Adjustments to net income:
Charge for fair value write-up of acquired
inventory sold	211	3,379	4,483		7,544	6,868
Deal Costs	973	-	4,891		26,575	5,121
Integration Costs	3,350	1,288	2,398		9,932	3,237
Severance and restructuring costs	-	460	8,503		12,494	460
Loss on debt extinguishment and modification	1,980	2,319	-		1,980	2,319
Versum termination fee, net	-	-	-		(122,000)	-
Loss on sale of subsidiary	-	-	-		-	466
Amortization of intangible assets	16,028	17,050	15,152		66,428	62,152
Tax effect of legal entity restructuring	-	(34,478)	-		9,398	(34,478)
Tax effect of adjustments to net income and
discrete items1	(5,398)	(5,603)	(8,015)		(3,124)	(17,812)
Tax effect of Tax Cuts and Jobs Act	-	1,101	-		-	683
Non-GAAP net income	$74,582	$66,300	$68,179		$264,087	$269,771
Diluted earnings per common share	$0.42	$0.57	$0.30	$1.87	$1.69
Effect of adjustments to net income	$0.13	($0.10)	$0.20	$0.07	$0.20
Diluted non-GAAP earnings per common share	$0.55	$0.47	$0.50	$1.93	$1.89

1. The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate during the respective years.

20

NON-GAAP RECONCILIATION TABLE

RECONCILIATION OF GAAP OUTLOOK TO NON-GAAP OUTLOOK

(In millions, except per share data)

	First-Quarter Outlook
Reconciliation GAAP net income to non-GAAP net income	March 28, 2020
GAAP net income	$56 - $63
Adjustments to net income:
Restructuring and integration costs	2
Amortization of intangible assets	13
Income tax effect	(3)
Non-GAAP net income	$68 - $75

	First-Quarter Outlook
Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share	March 28, 2020
Diluted earnings per common share	$0.41 - $0.46
Adjustments to diluted earnings per common share:
Restructuring and integration costs	0.01
Amortization of intangible assets	0.10
Income tax effect	(0.02)
Diluted non-GAAP earnings per common share	$0.50 to $0.55

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GAAP Segment Trend Data1

$ in thousands Sales SCEM MC AMH Inter-segmentelimination Total Sales

Segment Profit SCEM MC AMH Total Segment Profit

Q117	Q217	Q317	Q417	Q118	Q218	Q318	Q418	Q119		Q219		Q319		Q419
$ 114,435	$ 121,174	$ 124,522	$ 125,339	$ 130,743	$ 134,336	$ 131,234	$ 133,928	$ 124,470	$	127,552	$	127,750	$	146,747
100,195	104,587	116,229	115,801	118,923	124,937	151,478	158,500	157,706		150,185		155,979		169,794
108,371	109,658	111,278	115,436	124,078	130,572	123,227	115,527	116,064		107,515		117,256		117,455
(5,624)	(6,417)	(6,438)	(6,014)	(6,545)	(6,786)	(7,342)	(6,313)	(7,193)		(6,378)		(6,838)		(6,998)
$ 317,377	$ 329,002	$ 345,591	$ 350,562	$ 367,199	$ 383,059	$ 398,597	$ 401,642	$ 391,047	$	378,874	$	394,147	$	426,998

$	22,563	$	28,493	$	28,981	$	29,534	$	30,921	$	36,728	$	31,210	$	28,221	$	24,431	$	24,000	$	17,074	$	32,822
	29,380		29,944		37,429		37,686		40,311		37,214		42,448		46,879		47,323		43,126		46,792		57,157
	16,132		17,588		14,914		20,409		25,463		25,542		22,226		19,096		22,367		15,043		17,077		20,686
$	68,075	$	76,025	$	81,324	$	87,629	$	96,695	$	99,484	$	95,884	$	94,196	$	94,121	$	82,169	$	80,943	$	110,665

1. In 1Q19, the Company changed its definition of segment profit to include inter-segment sales. Prior period information has been recast to reflect the change.

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NON-GAAP Segment Trend Data1

$ in thousands		Q117		Q217		Q317		Q417		Q118		Q218		Q318		Q418		Q119		Q219		Q319		Q419
Sales
SCEM	$	114,435	$	121,174	$	124,522	$	125,339	$	130,743	$	134,336	$	131,234	$	133,928	$	124,470	$	127,552	$	127,750	$	146,747
MC		100,195		104,587		116,229		115,801		118,923		124,937		151,478		158,500		157,706		150,185		155,979		169,794
AMH		108,371		109,658		111,278		115,436		124,078		130,572		123,227		115,527		116,064		107,515		117,256		117,455
Inter-segment elimination		(5,624)		(6,417)		(6,438)		(6,014)		(6,545)		(6,786)		(7,342)		(6,313)		(7,193)		(6,378)		(6,838)		(6,998)
Total Sales	$	317,377	$	329,002	$	345,591	$	350,562	$	367,199	$	383,059	$	398,597	$	401,642	$	391,047	$	378,874	$	394,147	$	426,998
Adjusted Segment Profit
SCEM2	$	22,563	$	28,493	$	28,995	$	29,534	$	30,921	$	36,728	$	31,210	$	28,221	$	25,070	$	24,695	$	23,700	$	32,530
MC3		29,380		31,387		37,625		37,686		40,311		37,422		45,729		50,258		50,082		43,126		49,769		58,039
AMH4		16,132		19,874		20,135		20,409		25,463		25,542		22,692		19,556		22,945		15,043		20,212		20,307
Total Adj. Segment Profit	$	68,075	$	79,754	$	86,755	$	87,629	$	96,695	$	99,692	$	99,631	$	98,035	$	98,097	$	82,864	$	93,681	$	110,876
Adjusted Segment Profit Margin
SCEM		19.7%		23.5%		23.3%		23.6%		23.7%		27.3%		23.8%		21.1%		20.1%		19.4%		18.6%		22.2%
MC		29.3%		30.0%		32.4%		32.5%		33.9%		30.0%		30.2%		31.7%		31.8%		28.7%		31.9%		34.2%
AMH		14.9%		18.1%		18.1%		17.7%		20.5%		19.6%		18.4%		16.9%		19.8%		14.0%		17.2%		17.3%

1. In 1Q19, the Company changed its definition of segment profit to include inter-segment sales. Prior period information has been recast to reflect the change. Segment profit excludes amortization of intangibles and unallocated expenses.
2. Adjusted segment profit for SCEM for 3Q17, 1Q19, 3Q19 and 4Q19 excludes charges for severance and restructuring of $14, $519, $2,143 and $184. Adjusted segment profit for SCEM for 1Q19, 2Q19, 3Q19 and 4Q19 excludes fair value mark-up of inventory and severance charges of $120, $695, $4,483 and ($476), respectively.
3. Adjusted segment profit for MC for 2Q17 excludes charges for impairment of equipment and severance of $884 and $559, respectively. Adjusted segment profit for MC for 3Q17, 1Q19, 3Q19 and 4Q19 excludes charges for severance of $196, $724, $2,977 and $195, respectively. Adjusted segment profit for MC for 2Q18, 3Q18, 4Q18, 1Q19 and 4Q19 excludes charges for fair value mark-up of acquired inventory sold of $208, $3,281, $3,379, $2,035 and $687, respectively.
4. Adjusted segment profit for AMH for 2Q17 excludes charges for impairment of equipment of $2,286. Adjusted segment profit for AMH for 3Q17 excludes impairment of equipment and severance and restructuring of $3,364 and $1,857 respectively. Adjusted segment profit for AMH for 3Q18 excludes loss on sale of subsidiary of $466. Adjusted segment profit for AMH for 4Q18, 1Q19, 3Q19 and 4Q19 excludes severance and restructuring of $460, $578, $3,135 and ($379)K, respectively.

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