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8-K - FORM 8-K - Brooks Automation, Inc.b87137e8vk.htm
EX-99.2 - EX-99.2 - Brooks Automation, Inc.b87137exv99w2.htm
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma condensed consolidated financial statements of Brooks Automation, Inc. (the “Company”) have been prepared to reflect the closing on June 28, 2011 of the sale of assets related to the Company’s contract manufacturing business, as described in Item 1.01 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on April 26, 2011 and in Item 2.01 of the Company’s Current Report on Form 8-K filed with the SEC on June 29, 2011 (the “Asset Sale”).
The unaudited pro forma condensed consolidated statements of operations for the six months ended March 31, 2011 and the fiscal year ended September 30, 2010 are based on the Company’s historical consolidated statements of operations, and give effect to the Asset Sale as if it had occurred on October 1, 2009. The anticipated non-recurring after tax gain on the Asset Sale is not reflected in the unaudited pro forma condensed consolidated statements of operations. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2011 is based on the Company’s historical balance sheet as of March 31, 2011, and gives effect to the Asset Sale as if it had occurred on March 31, 2011. The anticipated non-recurring after tax gain on the asset sale is reflected in the unaudited pro forma condensed consolidated balance sheet.
The unaudited pro forma condensed consolidated financial statements presented below are based on the assumptions and adjustments described in the accompanying notes and do not reflect any adjustments for non-recurring items, overhead and administrative expense reductions, or changes in operating strategies arising as a result of the Asset Sale. These unaudited pro forma condensed consolidated financial statements reflect the estimated net proceeds of the Asset Sale as an increase to cash and cash equivalents. The Company expects that it will utilize these funds in strategic investments that leverage its existing technology capabilities, particularly into market sectors other than wafer front end semiconductor capital equipment. The actual effect of the Asset Sale on the business, financial condition and results of operations of the Company, due to this and other factors, including those set forth in the Company’s most recent Annual Report on Form 10-K filed with the SEC, could differ materially from the pro forma adjustments presented herein. However, the Company’s management believes that the assumptions used and the adjustments made in this presentation are reasonable under the circumstances and given the information available.
The unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not historical facts or necessarily indicative of the operating results or the financial position that would have been achieved had the Asset Sale been consummated as of the dates indicated or of the results that may be obtained in the future. Readers are cautioned not to place undue reliance on such information and the Company makes no representations regarding the information set forth below or its ultimate performance compared to it. These unaudited pro forma condensed consolidated financial statements and the accompanying notes should be read together with (1) the Company’s audited consolidated financial statements and the accompanying notes as of and for the fiscal year ended September 30, 2010, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2010, which was filed with the SEC on November 23, 2010 and (2) the Company’s unaudited condensed consolidated financial statements and accompanying notes as of and for the six months ended March 31, 2011 and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2011, which was filed with the SEC on May 5, 2011.

 


 

Brooks Automation, Inc.
Pro Forma Condensed Consolidated Statements of Operations
(Unaudited)
For the six months ended March 31, 2011
                                 
    Historical     Disposed     Pro Forma     Pro Forma  
In thousands, except per share data   Brooks     Business (a)     Adjustments     Brooks  
 
                               
Revenues
                               
Product
  $ 336,635     $ (95,013 )   $     $ 241,622  
Services
    34,383                   34,383  
 
                       
Total revenues
    371,018       (95,013 )           276,005  
 
                       
Cost of revenues
                               
Product
    228,066       (81,781 )           146,285  
Services
    23,959                   23,959  
 
                       
Total cost of revenues
    252,025       (81,781 )           170,244  
 
                       
Gross profit
    118,993       (13,232 )           105,761  
 
                       
Operating expenses
                               
Research and development
    18,340       (938 )           17,402  
Selling, general and administrative
    49,723       (3,650 )     (252 )(c)     45,821  
Restructuring charges
    460                   460  
 
                       
Total operating expenses
    68,523       (4,588 )     (252 )     63,683  
 
                       
Operating income
    50,470       (8,644 )     252       42,078  
Interest income, net
    507       (1 )           506  
Other income, net
    417       64             481  
 
                       
Income before income taxes and equity in earnings of joint ventures
    51,394       (8,581 )     252       43,065  
Income tax provision (benefit)
    2,023       (199 )(b)           1,824  
 
                       
Income before equity in earnings of joint ventures
    49,371       (8,382 )     252       41,241  
Equity in earnings of joint ventures
    718                   718  
 
                       
Net income
  $ 50,089     $ (8,382 )   $ 252     $ 41,959  
Add: Net income attributable to noncontrolling interests
    (18 )                 (18 )
 
                       
Net income attributable to Brooks Automation, Inc.
  $ 50,071     $ (8,382 )   $ 252     $ 41,941  
 
                       
Basic net income per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.78     $ (0.13 )   $     $ 0.65  
 
                       
Diluted net income per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.77     $ (0.13 )   $     $ 0.65  
 
                       
Shares used in computing earnings per share
                               
Basic
    64,388       64,388       64,388       64,388  
Diluted
    64,801       64,801       64,801       64,801  
See Notes to Pro Forma Condensed Consolidated Financial Statements.

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Brooks Automation, Inc.
Pro Forma Condensed Consolidated Statements of Operations
(Unaudited)
For the fiscal year ended September 30, 2010
                                 
    Historical     Disposed     Pro Forma     Pro Forma  
In thousands, except per share data   Brooks     Business (a)     Adjustments     Brooks  
Revenues
                               
Product
  $ 532,174     $ (155,542 )   $     $ 376,632  
Services
    60,798                   60,798  
 
                       
Total revenues
    592,972       (155,542 )           437,430  
 
                       
Cost of revenues
                               
Product
    377,599       (138,053 )           239,546  
Services
    49,078                   49,078  
 
                       
Total cost of revenues
    426,677       (138,053 )           288,624  
 
                       
Gross profit
    166,295       (17,489 )           148,806  
 
                       
Operating expenses
                               
Research and development
    31,162       (1,991 )           29,171  
Selling, general and administrative
    85,597       (7,163 )           78,434  
Restructuring charges
    2,529                   2,529  
 
                       
Total operating expenses
    119,288       (9,154 )           110,134  
 
                       
Operating income
    47,007       (8,335 )           38,672  
Interest income, net
    1,041       (3 )           1,038  
Other income, net
    8,016       16             8,032  
 
                       
Income before income taxes and equity in earnings of joint ventures
    56,064       (8,322 )           47,742  
Income tax provision (benefit)
    (2,746 )     (276 )(b)           (3,022 )
 
                       
Income before equity in earnings of joint ventures
    58,810       (8,046 )           50,764  
Equity in earnings of joint ventures
    215                   215  
 
                       
Net income
  $ 59,025     $ (8,046 )   $     $ 50,979  
Add: Net income attributable to noncontrolling interests
    (43 )                 (43 )
 
                       
Net income attributable to Brooks Automation, Inc.
  $ 58,982     $ (8,046 )   $     $ 50,936  
 
                       
Basic net income per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.92     $ (0.13 )   $     $ 0.80  
 
                       
Diluted net income per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.92     $ (0.13 )   $     $ 0.79  
 
                       
Shares used in computing earnings per share
                               
Basic
    63,777       63,777       63,777       63,777  
Diluted
    64,174       64,174       64,174       64,174  
See Notes to Pro Forma Condensed Consolidated Financial Statements.

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Brooks Automation, Inc.
Pro Forma Condensed Consolidated Balance Sheet
(Unaudited)
As of March 31, 2011
                         
    Historical     Disposed     Pro Forma  
In thousands   Brooks     Business (d)     Brooks  
 
                       
Assets
                       
Current assets
                       
Cash and cash equivalents
  $ 59,328     $ 75,430 (e)   $ 134,758  
Restricted cash
    3,788             3,788  
Marketable securities
    59,540             59,540  
Accounts receivable, net
    99,646       (11,648 )     87,998  
Inventories, net
    126,615       (39,452 )     87,163  
Prepaid expenses and other current assets
    6,372       (260 )     6,112  
 
                 
Total current assets
    355,289       24,070       379,359  
Property, plant and equipment, net
    60,499       (1,186 )     59,313  
Long-term marketable securities
    55,832             55,832  
Goodwill
    48,138             48,138  
Intangible assets, net
    9,265             9,265  
Equity investment in joint ventures
    33,535             33,535  
Other assets
    2,725       (141 )     2,584  
 
                 
Total assets
  $ 565,283     $ 22,743     $ 588,026  
 
                 
Liabilities and equity
                       
Current liabilities
                       
Accounts payable
  $ 61,042     $ (18,490 )   $ 42,552  
Deferred revenue
    4,515       (607 )     3,908  
Accrued warranty and retrofit costs
    7,667       (494 )     7,173  
Accrued compensation and benefits
    12,919       (918 )     12,001  
Accrued restructuring costs
    1,553             1,553  
Accrued income taxes payable
    1,294       1,884 (f)     3,178  
Accrued expenses and other current liabilities
    10,051       (695 )     9,356  
 
                 
Total current liabilities
    99,041       (19,320 )     79,721  
Income taxes payable
    12,974             12,974  
Long-term pension liability
    5,754             5,754  
Other long-term liabilities
    3,071             3,071  
 
                 
Total liabilities
    120,840       (19,320 )     101,520  
 
                 
 
                       
Equity
                       
Common stock
    796             796  
Additional paid-in capital
    1,805,799             1,805,799  
Accumulated other comprehensive income
    21,827             21,827  
Treasury stock
    (200,956 )           (200,956 )
Accumulated deficit
    (1,183,578 )     42,063 (g)     (1,141,515 )
 
                 
Total Brooks Automation, Inc. stockholders’ equity
    443,888       42,063       485,951  
Noncontrolling interest in subsidiaries
    555             555  
 
                 
Total equity
    444,443       42,063       486,506  
 
                 
Total liabilities and equity
  $ 565,283     $ 22,743     $ 588,026  
 
                 
See Notes to Pro Forma Condensed Consolidated Financial Statements.

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Brooks Automation, Inc.
Notes to Pro Forma Condensed Consolidated Financial Statements
(Unaudited)
 
(a)   Reflects the elimination of the financial results of operations and accumulated other comprehensive income amounts associated with the Asset Sale as if it had occurred on October 1, 2009. Intercompany sales from Historical Brooks to the Disposed Business of $75.4 million and $40.8 million for the twelve months ended September 30, 2010 and the six months ended March 31, 2011, respectively, are retained in the Pro Forma Brooks presentation as such sales will continue post disposition. The profits reported on these intercompany transactions are based on the historical transfer prices charged, which approximate the pricing negotiated between the Company and the Buyers in the commercial agreements entered into in conjunction with the Asset Sale.
 
(b)   Reflects the adjustment to the Company’s income tax expense resulting from the pro forma impact of the sale of the Disposed Business, but excludes any tax expense directly attributed to the gain on the transaction. The deferred tax assets as of March 31, 2011 had a full valuation allowance, as such the tax rate differs from the statutory rate due to utilization of net operating losses in certain jurisdictions related to the disposed entity.
 
(c)   Elimination of non-recurring professional fees incurred in connection with the Asset Sale. Additional professional fees will be incurred in connection with the closing of the Asset Sale.
 
(d)   Reflects the elimination of the assets and liabilities transferred to the Buyers in the Asset Sale as if the sale had occurred on March 31, 2011.
 
(e)   Includes the estimated net proceeds of the sale of $75.4 million, which are net of $2.6 million of transaction costs.
 
(f)   Includes estimated taxes on the gain from the Asset Sale of $1.9 million.
 
(g)   Includes an estimated gain on the Asset Sale of $42.1 million, which is reflective of estimated transaction costs and the estimated income taxes to be incurred on the transaction.

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