8-K
0001049502false00010495022023-02-272023-02-27

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2023

 

 

MKS INSTRUMENTS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Massachusetts

000-23621

04-2277512

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

2 Tech Drive

Suite 201

 

Andover, Massachusetts

 

01810

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 978 645-5500

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, no par value

 

MKSI

 

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On February 27, 2023, MKS Instruments, Inc. announced its financial results for the quarter ended December 31, 2022. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

99.1 Press Release dated February 27, 2023

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

MKS Instruments, Inc.

 

 

 

 

Date:

February 27, 2023

By:

/s/ Seth H. Bagshaw

 

 

 

Name: Seth H. Bagshaw
Title: Executive Vice President, Chief Financial Officer and Treasurer

 


EX-99

 

https://cdn.kscope.io/fdefbc9fab914b02613d22979044cf73-img23390321_0.jpg 

EXHIBIT 99.1

 

MKS Instruments Reports Fourth Quarter And Full-Year 2022 Financial Results

 

Record quarterly revenue of $1.09 billion, up 42% year-over-year, exceeding the high-end of guidance
Quarterly GAAP net income per diluted share of $0.81 and quarterly Non-GAAP net earnings per diluted share of $2.00, exceeding the high-end of guidance
Quarterly GAAP net income of $54 million and quarterly Adjusted EBITDA of $282 million, exceeding the high-end of guidance
Quarterly operating cash flow of $184 million and free cash flow of $130 million
Record annual revenue of $3.55 billion, up 20% year-over-year

Andover, Mass, Feb. 27, 2023 -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that transform our world, today reported fourth quarter and full year 2022 financial results. The Company also announced that it will be filing a Form 12b-25 with the SEC today, as it requires additional time to file its Form 10-K for the year ended December 31, 2022 due to the ransomware event it identified on February 3, 2023.

“Fourth quarter revenue and Non-GAAP EPS exceeded the high-end of our guidance range, capping an important year for MKS in which we firmly established the company as a foundational technology solutions provider focused on the core building blocks of advanced electronic devices,” said John T.C. Lee, President and Chief Executive Officer.

Mr. Lee added, “We are well into the recovery phase of our manufacturing and service operations following the ransomware incident identified on February 3rd, and we expect these operations will be restored over the coming weeks. I am very thankful for our dedicated employees who have worked tirelessly to help bring interrupted systems back online. Our team is focused on making up for lost time, delivering on our commitments and meeting the needs of our customers, whose support during the past weeks we’ve greatly appreciated.”

“We delivered strong revenue and profitability in the fourth quarter as a result of solid operational execution,” said Seth H. Bagshaw, Executive Vice President and Chief Financial Officer. “We also generated strong free cash flow in the quarter, as evidenced by a $100 million voluntary term loan prepayment made in December.”

Mr. Bagshaw added, “We are looking forward to returning to solid growth and profitability as our business normalizes, with a focus on driving attractive gross margins associated with our proprietary and

 


 

high-value solutions, disciplined investment in the growth of our business, and extending our long-standing track record of accelerated de-levering following an acquisition.”

First Quarter 2023 Outlook

The Company anticipates the previously announced ransomware incident identified on February 3, 2023 to have a material impact on the Company's first quarter results. The full scope of the costs and related impacts of the incident has not yet been determined. As a result, the Company will not provide its usual first quarter guidance at this time.

Prior to the ransomware event, the Company expected revenue in the first quarter of approximately $1 billion. The Company currently estimates the impact from the incident on first quarter revenue to be at least $200 million.

The Company expects to resume its normal guidance practice for the second quarter.

Conference Call Details

A conference call with management will be held on Tuesday, February 28, 2023 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS' website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the MKS Investor Relations webpage at https://investor.mks.com/.

About MKS Instruments

MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world's leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

 


 

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS' reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results.

For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

 

 


 

Selected GAAP and Non-GAAP Financial Measures

(In millions, except per share data)

 

 

Quarter

 

 

Full Year

 

 

Q4 2022

 

 

Q3 2022

 

 

Q4 2021

 

 

2022

 

 

2021

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Semiconductor

$

503

 

 

$

536

 

 

$

495

 

 

$

2,041

 

 

$

1,825

 

Electronics & Packaging

 

266

 

 

 

166

 

 

 

73

 

 

$

541

 

 

$

344

 

Specialty Industrial

 

316

 

 

 

253

 

 

 

196

 

 

$

964

 

 

$

780

 

Total net revenues

$

1,085

 

 

$

954

 

 

$

764

 

 

$

3,547

 

 

$

2,950

 

GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

44.7

%

 

 

40.8

%

 

 

46.4

%

 

 

43.6

%

 

 

46.8

%

Operating margin

 

15.0

%

 

 

12.4

%

 

 

23.8

%

 

 

17.4

%

 

 

23.7

%

Net income

$

54

 

 

$

6

 

 

$

150

 

 

$

333

 

 

$

551

 

Diluted EPS

$

0.81

 

 

$

0.09

 

 

$

2.69

 

 

$

5.56

 

 

$

9.90

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

45.9

%

 

 

44.9

%

 

 

46.4

%

 

 

45.1

%

 

 

46.8

%

Operating margin

 

23.6

%

 

 

25.1

%

 

 

27.1

%

 

 

24.5

%

 

 

27.0

%

Net earnings

$

133

 

 

$

167

 

 

$

168

 

 

$

597

 

 

$

634

 

Diluted EPS

$

2.00

 

 

$

2.74

 

 

$

3.02

 

 

$

9.97

 

 

$

11.38

 

 

Additional Financial Information

At December 31, 2022, the Company had $910 million in cash and short-term investments, $5.1 billion of secured term loan principal outstanding, and up to $500 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the fourth quarter of 2022, the Company paid a cash dividend of $15 million or $0.22 per diluted share.

 

 


 

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS”, the “Company”, “our”, or “we”) and the impact of the ransomware event we identified on February 3, 2023. These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the need to generate sufficient cash flows to service and repay the substantial indebtedness we have incurred in connection with our acquisition of Atotech Limited (“Atotech” and such transaction, the “Atotech Acquisition”), which we completed in August 2022; the terms of our existing term loans under which we incurred such debt; our entry into the chemicals technology business through the Atotech Acquisition, in which we do not have experience and which may expose us to significant additional liabilities; the risk that we are unable to integrate the Atotech Acquisition successfully or realize the anticipated synergies, cost savings and other benefits of the Atotech Acquisition; the ongoing assessment and impact of the ransomware event we identified on February 3, 2023, including legal, reputational, financial and contractual risks resulting from the incident, and other risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business and the businesses of Atotech and Electro Scientific Industries, Inc., which we acquired in February 2019, and financial risks associated with those and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand and the impact of COVID-19 or any other pandemic, including with respect to such supply chain disruptions, component shortages and price increases; risks associated with doing business internationally, including trade compliance, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers

 


 

upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning local and international operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described in MKS’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Annual Report on Form 10-K for the year ended December 31, 2022.

###

Company Contact:

David Ryzhik

Vice President, Investor Relations

Telephone: (978) 557-5180

Email: david.ryzhik@mksinst.com

 


 

 

MKS Instruments, Inc.

Unaudited Consolidated Statements of Operations

(In millions, except per share data)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

Products

$

965

 

$

841

 

$

668

 

$

3,119

 

$

2,579

 

Services

 

120

 

 

113

 

 

96

 

 

428

 

 

371

 

Total net revenues

 

1,085

 

 

954

 

 

764

 

 

3,547

 

 

2,950

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

Products

 

531

 

 

506

 

 

359

 

 

1,774

 

 

1,371

 

Services

 

69

 

 

58

 

 

50

 

 

226

 

 

199

 

Total cost of revenues

 

600

 

 

564

 

 

409

 

 

2,000

 

 

1,570

 

Gross profit

 

485

 

 

390

 

 

355

 

 

1,547

 

 

1,380

 

Research and development

 

73

 

 

63

 

 

51

 

 

241

 

 

200

 

Selling, general and administrative

 

168

 

 

126

 

 

97

 

 

488

 

 

385

 

Acquisition and integration costs

 

11

 

 

31

 

 

9

 

 

52

 

 

30

 

Restructuring and other

 

1

 

 

5

 

 

1

 

 

10

 

 

11

 

Amortization of intangible assets

 

69

 

 

47

 

 

15

 

 

146

 

 

55

 

Gain on sale of long-lived assets

 

 

 

 

 

 

 

(7

)

 

 

Income from operations

 

163

 

 

118

 

 

182

 

 

617

 

 

699

 

Interest income

 

(2

)

 

(1

)

 

 

 

(4

)

 

 

Interest expense

 

85

 

 

80

 

 

6

 

 

177

 

 

25

 

Other expense (income), net

 

15

 

 

(1

)

 

(2

)

 

11

 

 

9

 

Income before income taxes

 

65

 

 

40

 

 

178

 

 

433

 

 

665

 

Provision for income taxes

 

11

 

 

34

 

 

28

 

 

100

 

 

114

 

Net income

$

54

 

$

6

 

$

150

 

$

333

 

$

551

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

Basic

$

0.81

 

$

0.09

 

$

2.71

 

$

5.57

 

$

9.95

 

Diluted

$

0.81

 

$

0.09

 

$

2.69

 

$

5.56

 

$

9.90

 

Cash dividends per common share

$

0.22

 

$

0.22

 

$

0.22

 

$

0.88

 

$

0.86

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

66.6

 

 

61.0

 

 

55.5

 

 

59.7

 

 

55.4

 

Diluted

 

66.7

 

 

61.1

 

 

55.7

 

 

59.9

 

 

55.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 


 

MKS Instruments, Inc.

Unaudited Consolidated Balance Sheet

(In millions)

 

December 31,

 

December 31,

 

 

2022

 

2021

 

ASSETS

 

 

 

 

Cash and cash equivalents

$

909

 

$

966

 

Short-term investments

 

1

 

 

76

 

Trade accounts receivable, net

 

720

 

 

443

 

Inventories

 

977

 

 

577

 

Other current assets

 

187

 

 

85

 

Total current assets

 

2,794

 

 

2,147

 

Property, plant and equipment, net

 

800

 

 

326

 

Right-of-use assets

 

234

 

 

184

 

Goodwill

 

4,308

 

 

1,228

 

Intangible assets, net

 

3,173

 

 

576

 

Other assets

 

186

 

 

79

 

Total assets

$

11,495

 

$

4,540

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Short-term debt

$

93

 

$

9

 

Accounts payable

 

426

 

 

168

 

Accrued compensation

 

101

 

 

132

 

Income taxes payable

 

51

 

 

25

 

Lease liabilities

 

26

 

 

18

 

Deferred revenue and customer advances

 

94

 

 

37

 

Other current liabilities

 

161

 

 

71

 

Total current liabilities

 

952

 

 

460

 

Long-term debt, net

 

4,834

 

 

808

 

Non-current deferred taxes

 

783

 

 

99

 

Non-current accrued compensation

 

138

 

 

49

 

Non-current lease liability

 

215

 

 

193

 

Other non-current liabilities

 

90

 

 

44

 

Total liabilities

 

7,012

 

 

1,653

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

Additional paid-in capital

 

2,142

 

 

907

 

Retained earnings

 

2,272

 

 

1,991

 

Accumulated other comprehensive income (loss)

 

69

 

 

(11

)

Total stockholders' equity

 

4,483

 

 

2,887

 

Total liabilities and stockholders' equity

$

11,495

 

$

4,540

 

 

 

 

 

 

 

 

 

 

 

 


 

MKS Instruments, Inc.

Unaudited Consolidated Statements of Cash Flows

(In millions)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net income

$

54

 

$

6

 

$

150

 

$

333

 

$

551

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

96

 

 

64

 

 

28

 

 

216

 

 

104

 

Amortization of inventory step-up adjustment to fair value

 

13

 

 

39

 

 

 

 

52

 

 

 

Unrealized loss (gain) on derivatives not designated as hedging instruments

 

7

 

 

(1

)

 

(3

)

 

13

 

 

(4

)

Amortization of debt issuance costs and original issue discount

 

10

 

 

46

 

 

 

 

56

 

 

2

 

Gain on sale of long-lived assets

 

 

 

 

 

 

 

(7

)

 

 

Stock-based compensation

 

13

 

 

10

 

 

9

 

 

45

 

 

37

 

Provision for excess and obsolete inventory

 

11

 

 

3

 

 

3

 

 

21

 

 

16

 

Deferred income taxes

 

(50

)

 

6

 

 

(6

)

 

(46

)

 

2

 

Other

 

 

 

1

 

 

2

 

 

3

 

 

4

 

Changes in operating assets and liabilities, net of acquired assets and liabilities

 

30

 

 

25

 

 

11

 

 

(157

)

 

(72

)

Net cash provided by operating activities

 

184

 

 

199

 

 

194

 

 

529

 

 

640

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Acquisition of business, net of cash acquired

 

 

 

(4,473

)

 

 

 

(4,473

)

 

(268

)

Purchases of investments

 

 

 

 

 

 

 

(1

)

 

(497

)

Maturities of investments

 

 

 

 

 

135

 

 

77

 

 

478

 

Sales of investments

 

 

 

 

 

35

 

 

 

 

169

 

Proceeds from sale of long-lived assets

 

1

 

 

 

 

 

 

9

 

 

 

Purchases of property, plant and equipment

 

(54

)

 

(26

)

 

(23

)

 

(164

)

 

(87

)

Net cash (used in) provided by investing activities

 

(53

)

 

(4,499

)

 

147

 

 

(4,552

)

 

(205

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Proceeds from borrowings, net of deferred financing fees paid

 

3

 

 

4,979

 

 

 

 

4,988

 

 

1

 

Payments of borrowings

 

(127

)

 

(826

)

 

(2

)

 

(962

)

 

(15

)

Payments of finance leases

 

(2

)

 

 

 

 

 

(2

)

 

 

Dividend payments

 

(15

)

 

(13

)

 

(12

)

 

(52

)

 

(47

)

Net proceeds (payments) related to employee stock awards

 

4

 

 

 

 

11

 

 

(1

)

 

(4

)

Net cash (used in) provided by financing activities

 

(137

)

 

4,140

 

 

(3

)

 

3,971

 

 

(65

)

Effect of exchange rate changes on cash and cash equivalents

 

31

 

 

(21

)

 

(5

)

 

(5

)

 

(12

)

Increase (decrease) in cash and cash equivalents

 

25

 

 

(181

)

 

333

 

 

(57

)

 

358

 

Cash and cash equivalents at beginning of period

 

884

 

 

1,065

 

 

633

 

 

966

 

 

608

 

Cash and cash equivalents at end of period

$

909

 

$

884

 

 

966

 

$

909

 

$

966

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 


 

The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:

 

 

MKS Instruments, Inc.

Schedule Reconciling Selected Non-GAAP Financial Measures

(In millions, except per share data)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

Net income

$

54

 

$

6

 

$

150

 

$

333

 

$

551

 

Acquisition and integration costs (Note 1)

 

11

 

 

31

 

 

9

 

 

52

 

 

30

 

Acquisition inventory step-up (Note 2)

 

13

 

 

39

 

 

 

 

52

 

 

 

Amortization of debt issuance costs (Note 3)

 

7

 

 

43

 

 

 

 

51

 

 

1

 

Restructuring and other (Note 4)

 

1

 

 

5

 

 

1

 

 

10

 

 

11

 

Amortization of intangible assets

 

69

 

 

47

 

 

15

 

 

146

 

 

55

 

Gain on sale of long-lived assets (Note 5)

 

 

 

 

 

 

 

(7

)

 

 

Currency hedge (gain) loss (Note 6)

 

 

 

 

 

(3

)

 

(5

)

 

7

 

Reversal of indefinite reinvestment assertion (Note 7)

 

 

 

30

 

 

 

 

30

 

 

 

Windfall tax benefit on stock-based compensation (Note 8)

 

 

 

 

 

 

 

(1

)

 

(4

)

Withholding tax related to Brexit (Note 9)

 

 

 

 

 

 

 

 

 

3

 

Tax effect of Non-GAAP adjustments (Note 10)

 

(22

)

 

(34

)

 

(4

)

 

(64

)

 

(20

)

Non-GAAP net earnings

$

133

 

$

167

 

$

168

 

$

597

 

$

634

 

Non-GAAP net earnings per diluted share

$

2.00

 

$

2.74

 

$

3.02

 

$

9.97

 

$

11.38

 

Weighted average diluted shares outstanding

 

66.7

 

 

61.1

 

 

55.7

 

 

59.9

 

 

55.7

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

184

 

$

199

 

$

194

 

$

529

 

$

640

 

Purchases of property, plant and equipment

 

(54

)

 

(26

)

 

(23

)

 

(164

)

 

(87

)

Free cash flow

$

130

 

$

173

 

$

171

 

$

365

 

$

553

 

 

 

 

 


 

MKS Instruments, Inc.

Schedule Reconciling Selected Non-GAAP Financial Measures

(In millions)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

485

 

$

390

 

$

355

 

$

1,547

 

$

1,380

 

Gross margin

 

44.7

%

 

40.8

%

 

46.4

%

 

43.6

%

 

46.8

%

Acquisition inventory step-up (Note 2)

 

13

 

 

39

 

 

 

 

52

 

 

 

Non-GAAP gross profit

$

498

 

$

429

 

$

355

 

$

1,599

 

$

1,380

 

Non-GAAP gross margin

 

45.9

%

 

44.9

%

 

46.4

%

 

45.1

%

 

46.8

%

Operating expenses

$

322

 

$

272

 

$

173

 

$

930

 

$

681

 

Acquisition and integration costs (Note 1)

 

11

 

 

31

 

 

9

 

 

52

 

 

30

 

Restructuring and other (Note 4)

 

1

 

 

5

 

 

1

 

 

10

 

 

11

 

Gain on sale of long-lived assets (Note 5)

 

 

 

 

 

 

 

(7

)

 

 

Amortization of intangible assets