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8-K - FORM 8-K - Brooks Automation, Inc.b84717e8vk.htm
Exhibit 99.1
(LOGO)
Press Release
For Immediate Release
Brooks Automation Reports First Quarter Financial Results
  §   Diluted Earnings per Share of $0.36
 
  §   Excluding special charges adjusted diluted earnings of $0.37
Chelmsford, Massachusetts February 3, 2011 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s first quarter of fiscal year 2011 ended on December 31, 2010.
Revenues for the first quarter of fiscal 2011 were $178.4 million, compared to revenues of $106.2 million in the first quarter of fiscal 2010, an increase of 68.0%. Sequentially, revenues declined 1.8% from fourth quarter fiscal 2010 revenues of $181.6 million.
Net income attributable to Brooks Automation, Inc. (“Brooks”) for the first quarter of fiscal 2011 amounted to $23.5 million, or $0.36 per diluted share.
Excluding special charges, the adjusted net income of $23.7 million or $0.37 per diluted share compares on a sequential basis with $24.4 million or $0.38 per diluted share and improves from a loss of $(1.1) million or $(0.02) per diluted share in the first quarter of fiscal 2010. Special charges and their impact on comparative results are identified in the unaudited table included with this release. Including special charges, the Net Income attributable to Brooks in the fourth quarter was $24.2 million or $0.38 per diluted share and the Net Loss attributable to Brooks in the first quarter of fiscal 2010 was $(2.8) million or $(0.04) per diluted share.
Adjusted Earnings before Interest, Tax, Depreciation and Amortization for the first quarter of fiscal 2011 was $29.9 million, which compared to $29.7 million in the fourth quarter of fiscal 2010 and $5.6 million in the first quarter of fiscal 2010. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated statements of operations, balance sheets and statements of cash flows included in this release.
— more —
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

Brooks Automation Reports First Quarter Financial Results           page two
Net cash provided by operating activities for the first quarter of fiscal 2011 was $17.7 million, which net of capital expenditures of $1.6 million resulted in an increase of total cash and marketable securities to $157.9 million at December 31, 2010.
Martin S. Headley, Executive Vice-President and Chief Financial Officer observed, “Continued margin expansion in each of our segments resulted in continued sequential growth in Operating Profits and Adjusted EBITDA. The increase in operating profitability was offset by the anticipated $1.5 million increase in our income tax provision that resulted in our small step back in reported earnings. Margin expansion also drove the Company to exceed profit and earnings projections on revenues comparable with guidance.”
Commenting on recent activities, Stephen S. Schwartz, Chief Executive Officer and President of Brooks stated, “Our developing strength across a broad universe of OEMs is expanding our market share and leading us to many new opportunities in adjacent markets. Although we have experienced a moderated start to the fiscal year, we are firmer in our assurance that fiscal 2011 will represent a strong year in growth of revenues and earnings over fiscal 2010.”
Dr. Schwartz added “We believe that we are well positioned to start putting our strong balance sheet to work in fueling our growth strategy of expanded presence outside of our traditional markets.”
Brooks management will web cast its first quarter earnings conference tomorrow at 10:00 a.m. Eastern Time to discuss the attached quarterly results and business highlights. During the call, Company management will respond to questions concerning, but not limited to, the Company’s financial performance, business conditions and industry outlook. Their responses could contain information that has not been previously disclosed.
Analysts, investors and members of the media can access the live broadcast available on Brooks’ website at www.brooks.com. The call will be archived on this website for convenient on-demand replay.
# # #
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions to the global semiconductor and related industries. Our products and services are meeting the needs of customers across a broad spectrum of applications and industries and the global semiconductor manufacturing sector is our largest served market. When demanding productivity and availability objectives are essential factors for success, customers throughout the world turn to Brooks Automation, Inc. For more information go to www.brooks.com or email sales@brooks.com.
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

Brooks Automation Reports First Quarter Financial Results           page three
“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks’ financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include statements regarding our revenue and operating margin expectations, our ability to develop further our business in new and adjacent markets, and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet increased demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; continuing uncertainties in global political and economic conditions, and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q. As a result we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.
Contact:
Barbara Culhane
Corporate Marketing Manager
Brooks Automation, Inc.
978-262-2400
www.brooks.com
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
                 
    December 31,     September 30,  
    2010     2010  
Assets
               
Current assets
               
Cash and cash equivalents
  $ 62,312     $ 59,823  
Marketable securities
    50,662       49,011  
Accounts receivable, net
    87,613       92,273  
Inventories, net
    127,143       115,787  
Prepaid expenses and other current assets
    8,416       10,437  
 
           
Total current assets
    336,146       327,331  
Property, plant and equipment, net
    61,985       63,669  
Long-term marketable securities
    44,953       33,593  
Goodwill
    48,138       48,138  
Intangible assets, net
    10,194       11,123  
Equity investment in joint ventures
    32,519       31,746  
Other assets
    2,640       2,624  
 
           
Total assets
  $ 536,575     $ 518,224  
 
           
Liabilities and equity
               
Current liabilities
               
Accounts payable
  $ 62,323     $ 65,734  
Deferred revenue
    4,024       4,365  
Accrued warranty and retrofit costs
    7,882       8,195  
Accrued compensation and benefits
    11,804       13,677  
Accrued restructuring costs
    2,525       3,509  
Accrued income taxes payable
    1,104       1,040  
Accrued expenses and other current liabilities
    12,032       11,635  
 
           
Total current liabilities
    101,694       108,155  
Income taxes payable
    12,590       12,446  
Long-term pension liability
    5,610       5,466  
Other long-term liabilities
    2,812       2,805  
 
           
Total liabilities
    122,706       128,872  
 
           
Contingencies
               
Equity
               
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding
           
Common stock, $0.01 par value, 125,000,000 shares authorized, 78,898,626 shares issued and 65,436,757 shares outstanding at December 31, 2010, 78,869,331 shares issued and 65,407,462 shares outstanding at September 30, 2010
    789       789  
Additional paid-in capital
    1,803,390       1,803,121  
Accumulated other comprehensive income
    20,272       19,510  
Treasury stock at cost, 13,461,869 shares at December 31, 2010 and September 30, 2010
    (200,956 )     (200,956 )
Accumulated deficit
    (1,210,163 )     (1,233,649 )
 
           
Total Brooks Automation, Inc. stockholders’ equity
    413,332       388,815  
Noncontrolling interest in subsidiaries
    537       537  
 
           
Total equity
    413,869       389,352  
 
           
Total liabilities and equity
  $ 536,575     $ 518,224  
 
           
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                 
    Three months ended  
    December 31,  
    2010     2009  
Revenues
               
Product
  $ 161,424     $ 91,521  
Services
    16,943       14,676  
 
           
Total revenues
    178,367       106,197  
 
           
Cost of revenues
               
Product
    109,203       67,245  
Services
    11,845       12,706  
 
           
Total cost of revenues
    121,048       79,951  
 
           
Gross profit
    57,319       26,246  
 
           
Operating expenses
               
Research and development
    8,898       7,541  
Selling, general and administrative
    24,478       18,979  
Restructuring charges
    214       1,522  
 
           
Total operating expenses
    33,590       28,042  
 
           
Operating income (loss)
    23,729       (1,796 )
Interest income
    275       328  
Interest expense
    1       16  
Loss on investment
          191  
Other (income) expense, net
    (161 )     197  
 
           
Income (loss) before income taxes and equity in earnings (losses) of joint ventures
    24,164       (1,872 )
Income tax provision
    988       635  
 
           
Income (loss) before equity in earnings (losses) of joint ventures
    23,176       (2,507 )
Equity in earnings (losses) of joint ventures
    310       (370 )
 
           
Net income (loss)
  $ 23,486     $ (2,877 )
Add: Net loss attributable to noncontrolling interests
          82  
 
           
Net income (loss) attributable to Brooks Automation, Inc.
  $ 23,486     $ (2,795 )
 
           
 
               
Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.37     $ (0.04 )
 
           
Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.36     $ (0.04 )
 
           
Shares used in computing earnings (loss) per share
               
Basic
    64,263       63,394  
Diluted
    64,475       63,394  
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
                 
    Three months ended  
    December 31,  
    2010     2009  
Cash flows from operating activities
               
Net income (loss)
  $ 23,486     $ (2,877 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
               
Depreciation and amortization
    4,274       4,794  
Stock-based compensation
    1,209       1,517  
Amortization of premium on marketable securities
    410       136  
Undistributed (earnings) losses of joint ventures
    (310 )     370  
Gain on disposal of long-lived assets
    (13 )      
Loss on investment
          191  
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    4,949       (14,759 )
Inventories
    (11,289 )     (5,163 )
Prepaid expenses and other current assets
    2,117       (834 )
Accounts payable
    (3,424 )     19,902  
Deferred revenue
    (330 )     1,199  
Accrued warranty and retrofit costs
    (314 )     32  
Accrued compensation and benefits
    (2,810 )     (2,834 )
Accrued restructuring costs
    (985 )     (605 )
Accrued expenses and other
    713       413  
 
           
Net cash provided by operating activities
    17,683       1,482  
 
           
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (1,638 )     (461 )
Purchases of marketable securities
    (38,704 )     (43,983 )
Sale/maturity of marketable securities
    25,225       29,853  
Proceeds from the sale of investment
          240  
 
           
Net cash used in investing activities
    (15,117 )     (14,351 )
 
           
Effects of exchange rate changes on cash and cash equivalents
    (77 )     48  
 
           
Net increase (decrease) in cash and cash equivalents
    2,489       (12,821 )
Cash and cash equivalents, beginning of period
    59,823       59,985  
 
           
Cash and cash equivalents, end of period
  $ 62,312     $ 47,164  
 
           
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
Supplemental Information
(In thousands, except per share data)
(unaudited)
Notes on Non-GAAP Financial Measures:
The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and as a means to evaluate period-to-period comparisons. These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
The press release includes financial measures which exclude the effects of non-recurring income and special charges such as restructuring charges and gains or losses on investments. Management believes these measures are useful to investors because it eliminates accounting charges that do not reflect Brooks’ day-to-day operations. A table reconciling income (loss) and diluted earnings (loss) per share from operations is presented below:
                                                 
    Quarter ended  
    December 31, 2010     September 30, 2010     December 31, 2009  
    $     per share     $     per share     $     per share  
Net income (loss) attributable to Brooks Automation, Inc.
  $ 23,486     $ 0.36     $ 24,176     $ 0.38     $ (2,795 )   $ (0.04 )
 
                                               
Restructuring charges
    214       0.00       235       0.00       1,522       0.02  
Loss on investment
                            191       0.00  
 
                                   
 
                                               
Adjusted net income (loss) attributable to Brooks
                                               
Automation, Inc.
    23,700       0.37       24,411       0.38       (1,082 )     (0.02 )
 
                                               
Stock-based compensation
    1,209       0.02       1,678       0.03       1,517       0.02  
 
                                   
 
                                               
Adjusted net income attributable to Brooks Automation, Inc., excluding stock-based compensation
  $ 24,909     $ 0.39     $ 26,089     $ 0.41     $ 435     $ 0.01  
 
                                   
                         
    Quarter ended  
    Dec 31,     Sept 30,     Dec 31,  
    2010     2010     2009  
Net income (loss) attributable to Brooks Automation, Inc.
  $ 23,486     $ 24,176     $ (2,795 )
 
                       
Less: Interest income
    (275 )     (307 )     (328 )
Add: Interest expense
    1       46       16  
Add: Income tax provision (benefit)
    988       (527 )     635  
Add: Depreciation
    3,345       3,419       3,846  
Add: Amortization of completed technology
    479       479       457  
Add; Amortization of acquired intangible assets
    450       493       491  
Add: Stock-based compensation
    1,209       1,678       1,517  
Add: Restructuring charges
    214       235       1,522  
Add: Loss on investment
                191  
 
                 
 
                       
Adjusted EBITDA
  $ 29,897     $ 29,692     $ 5,552  
 
                 
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com