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8-K - FORM 8-K - Brooks Automation, Inc.b87581e8vk.htm
EX-99.2 - EX-99.2 - Brooks Automation, Inc.b87581exv99w2.htm
Exhibit 99.1
(BOOKS AUTOMATION LOGO)
Press Release
For Immediate Release
Brooks Automation Reports Third Quarter Financial Results And Initiates
Payment of A Quarterly Cash Dividend
Chelmsford, Massachusetts August 4, 2011 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s third quarter of fiscal year 2011 ended on June 30, 2011.
Revenues for the third quarter of fiscal 2011 were $186.1 million, compared to revenues of $156.8 million in the third quarter of fiscal 2010, an increase of 18.7%. Sequentially, revenues decreased 3.4% from second quarter fiscal 2011 revenues of $192.7 million. Order bookings for the third quarter of fiscal 2011 were $190.8 million, a 1.5% sequential decrease as compared to order bookings in the fiscal second quarter of $193.7 million.
Net income attributable to Brooks Automation, Inc. for the third quarter of fiscal 2011 amounted to $66.2 million, or $1.02 per diluted share. The result included the gain on sale of the contract manufacturing business which resulted in a pre-tax gain of $45.0 million with associated taxes on the gain of $2.4 million. This and other special charges and non-recurring income and their impact on comparative results are identified in the unaudited table included with this release.
Excluding special charges or non-recurring income, the adjusted net income of $23.3 million or $0.36 per diluted share compares on a sequential basis with $26.8 million or $0.41 per diluted share and improves on income of $16.9 million or $0.26 per diluted share in the third quarter of fiscal 2010. Including special charges and non-recurring income, the Net income attributable to Brooks in the second quarter of fiscal 2011 and the third quarter of fiscal 2010 was $26.6 million, or $0.41 per diluted share, and $16.6 million, or $0.26 per diluted share, respectively.
Revenues for the nine months ended June 30, 2011 were $557.2 million, a 35.5% increase over revenues of $411.3 million for the nine months ended June 30, 2010. Net income attributable to Brooks for the nine months ended June 30, 2011 was $116.3 million or $1.79 per diluted share, as compared to $34.8 million or $0.54 per diluted share for the nine months ended June 30, 2010. Excluding the impact of special charges and non-recurring income, net income increased to $73.9 million or $1.14 per diluted share for the nine months ended June 30, 2011 as compared to $25.9 million or $0.40 per diluted share, for the nine months ended June 30, 2010.
— more —
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

     
Brooks Automation Reports Third Quarter Financial Results   page two
Adjusted Earnings before Interest, Tax, Depreciation and Amortization for the third quarter of fiscal 2011 was $29.5 million, which compared to $34.1 million in the second quarter of fiscal 2011 and $22.5 million in the third 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. Adjusted Earnings before Interest, Tax, Deprecation and Amortization for the nine months ended June 30, 2011 was $93.5 million as compared to $45.4 million for the nine months ended June 30, 2010.
Net cash provided by operating activities for the third quarter of fiscal 2011 was $28.3 million, which together with net proceeds from the company’s M&A activities of $76.7 million and net of capital expenditures of $1.0 million resulted in an increase of total cash and marketable securities to $282.4 million at June 30, 2011. For the first nine months of the fiscal year cash from operating activities was $67.2 million and the increase in total cash and marketable securities was $139.9 million.
Steve Schwartz, Chief Executive Officer and President of Brooks stated, “We have seen a high level of uncertainty associated with our near-term revenues into semiconductor markets with significant demand adjustments from our OEM customers consistent with the public outlook they have provided. This trend had been generally negative, however our positioning into adjacent markets is cushioning Brooks from the worst of this current demand correction.”
Dr. Schwartz continued, “In the coming months we will have significant focus on the successful integration of our Nexus Biosystems and RTS Life Sciences acquisitions. The formation of Brooks Life Science Systems is intended to be a vehicle for substantial long term growth in the Life Sciences market of which our initial growth in Biobanking and Automated Sample Management Systems will be a key foundation.”
The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on September 30, 2011 to stock holders of record on September 9, 2011. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors.
Martin Headley, Executive Vice-President and Chief Financial Officer, observed that “The initiation of a dividend payment represents a third leg to enhancing shareholder value following the focus on higher performing components in our core business and the start of investment in a new growth platform through recent acquisitions.”
— more —
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

     
Brooks Automation Reports Third Quarter Financial Results   page three
Brooks management will webcast its third quarter earnings conference at 4:30 p.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 markets where our technologies provide superior value in controlled environments; our engineering competencies provide our customers with speed to market; and our global service capabilities ensure rapid uptime response. Global semiconductor manufacturing is our heritage and the largest market we currently serve. However, through our product initiatives and business acquisitions, we are increasingly meeting the needs of customers across a broad spectrum of applications in life sciences, analytical & research markets, and clean energy solutions. For more information go to www.brooks.com.
“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 demand for our products due to difficulties in obtaining components and materials from our suppliers - particularly those manufacturing in Japan — 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)
                 
    June 30,     September 30,  
    2011     2010  
Assets
               
Current assets
               
Cash and cash equivalents
  $ 133,115     $ 59,823  
Restricted cash
    760        
Marketable securities
    64,804       49,011  
Accounts receivable, net
    82,547       92,273  
Inventories, net
    93,525       115,787  
Prepaid expenses and other current assets
    10,179       10,437  
 
           
Total current assets
    384,930       327,331  
Property, plant and equipment, net
    58,270       63,669  
Long-term marketable securities
    83,686       33,593  
Goodwill
    51,694       48,138  
Intangible assets, net
    10,395       11,123  
Equity investment in joint ventures
    34,747       31,746  
Other assets
    2,637       2,624  
 
           
Total assets
  $ 626,359     $ 518,224  
 
           
Liabilities and equity
               
Current liabilities
               
Accounts payable
  $ 45,177     $ 65,734  
Deferred revenue
    7,640       4,365  
Accrued warranty and retrofit costs
    7,617       8,195  
Accrued compensation and benefits
    15,449       13,677  
Accrued restructuring costs
    566       3,509  
Accrued income taxes payable
    3,930       1,040  
Accrued expenses and other current liabilities
    9,777       11,635  
 
           
Total current liabilities
    90,156       108,155  
Income taxes payable
    13,223       12,446  
Long-term pension liability
    5,728       5,466  
Other long-term liabilities
    3,280       2,805  
 
           
Total liabilities
    112,387       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, 79,521,639 shares issued and 66,059,770 shares outstanding at June 30, 2011, 78,869,331 shares issued and 65,407,462 shares outstanding at September 30, 2010
    795       789  
Additional paid-in capital
    1,807,102       1,803,121  
Accumulated other comprehensive income
    23,865       19,510  
Treasury stock at cost, 13,461,869 shares at June 30, 2011 and September 30, 2010
    (200,956 )     (200,956 )
Accumulated deficit
    (1,117,395 )     (1,233,649 )
 
           
Total Brooks Automation, Inc. stockholders’ equity
    513,411       388,815  
Noncontrolling interest in subsidiaries
    561       537  
 
           
Total equity
    513,972       389,352  
 
           
Total liabilities and equity
  $ 626,359     $ 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     Nine months ended  
    June 30,     June 30,  
    2011     2010     2011     2010  
Revenues
                               
Product
  $ 166,658     $ 141,681     $ 502,783     $ 366,467  
Services
    19,478       15,109       54,371       44,873  
 
                       
Total revenues
    186,136       156,790       557,154       411,340  
 
                       
Cost of revenues
                               
Product
    115,299       99,086       342,933       263,556  
Services
    13,867       11,799       38,258       36,683  
 
                       
Total cost of revenues
    129,166       110,885       381,191       300,239  
 
                       
Gross profit
    56,970       45,905       175,963       111,101  
 
                       
Operating expenses
                               
Research and development
    10,025       7,901       28,365       23,119  
Selling, general and administrative
    24,676       21,200       74,399       61,021  
Restructuring charges
    97       288       557       2,294  
 
                       
Total operating expenses
    34,798       29,389       103,321       86,434  
 
                       
Operating income
    22,172       16,516       72,642       24,667  
Interest income
    350       221       886       814  
Interest expense
    10       7       39       34  
Sale of intellectual property rights
                      7,840  
Sale of contract manufacturing business
    45,009             45,009        
Loss on investment
                      191  
Other (income) expense, net
    (1,068 )     7       (1,485 )     295  
 
                       
Income before income taxes and equity in earnings (losses) of joint ventures
    68,589       16,723       119,983       32,801  
Income tax provision (benefit)
    3,300       (35 )     5,323       (2,219 )
 
                       
Income before equity in earnings (losses) of joint ventures
    65,289       16,758       114,660       35,020  
Equity in earnings (losses) of joint ventures
    900       (112 )     1,618       (303 )
 
                       
Net income
  $ 66,189     $ 16,646     $ 116,278     $ 34,717  
Add: Net loss (income) attributable to noncontrolling interests
    (6 )     (74 )     (24 )     89  
 
                       
Net income attributable to Brooks Automation, Inc.
  $ 66,183     $ 16,572     $ 116,254     $ 34,806  
 
                       
Basic net income per share attributable to Brooks Automation, Inc. common stockholders
  $ 1.02     $ 0.26     $ 1.80     $ 0.55  
 
                       
Diluted net income per share attributable to Brooks Automation, Inc. common stockholders
  $ 1.02     $ 0.26     $ 1.79     $ 0.54  
 
                       
Shares used in computing earnings per share
                               
Basic
    64,668       63,969       64,481       63,679  
Diluted
    65,141       64,264       64,941       64,123  
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)
                 
    Nine months ended  
    June 30,  
    2011     2010  
Cash flows from operating activities
               
Net income
  $ 116,278     $ 34,717  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    12,336       14,029  
Sale of intellectual property rights
          (7,840 )
Stock-based compensation
    5,211       4,889  
Amortization of premium on marketable securities
    1,534       626  
Undistributed (earnings) losses of joint ventures
    (1,618 )     303  
(Gain) loss on disposal of long-lived assets
    24       (4 )
Sale of contract manufacturing business
    (45,009 )      
Loss on investment
          191  
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    (461 )     (33,946 )
Inventories
    (11,248 )     (33,683 )
Prepaid expenses and other current assets
    3,245       (3,065 )
Accounts payable
    (11,812 )     44,256  
Deferred revenue
    (1,410 )     1,598  
Accrued warranty and retrofit costs
    (638 )     1,769  
Accrued compensation and benefits
    (72 )     (2,433 )
Accrued restructuring costs
    (2,943 )     (3,043 )
Accrued expenses and other
    3,802       (482 )
 
           
Net cash provided by operating activities
    67,219       17,882  
 
           
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (4,163 )     (1,908 )
Purchases of marketable securities
    (145,821 )     (95,722 )
Sale/maturity of marketable securities
    78,644       67,492  
Increase in restricted cash
    (760 )      
Proceeds from the sale of the contract manufacturing business
    75,664        
Proceeds from assets sold
    4,372        
Acquisition of RTS Life Sciences, net of cash acquired
    (3,381 )      
Proceeds from the sale of intellectual property rights
          7,840  
Purchase of intangible assets
          (892 )
Other
          243  
 
           
Net cash provided by (used in) investing activities
    4,555       (22,947 )
 
           
Cash flows from financing activities
               
Proceeds from issuance of common stock, net of issuance costs
    681       609  
 
           
Net cash provided by financing activities
    681       609  
 
           
Effects of exchange rate changes on cash and cash equivalents
    837       (542 )
 
           
Net increase (decrease) in cash and cash equivalents
    73,292       (4,998 )
Cash and cash equivalents, beginning of period
    59,823       59,985  
 
           
Cash and cash equivalents, end of period
  $ 133,115     $ 54,987  
 
           
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

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 and diluted earnings per share from operations is presented below:
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

                                                 
    Quarter ended  
    June 30, 2011     March 31, 2011     June 30, 2010  
    $     per share     $     per share     $     per share  
Net income attributable to Brooks Automation, Inc.
  $ 66,183     $ 1.02     $ 26,585     $ 0.41     $ 16,572     $ 0.26  
 
                                               
Purchase accounting impact on contracts acquired
    313       0.00                          
Restructuring charges
    97       0.00       246       0.00       288       0.00  
Gain on sale of contract manufacturing, net of tax
    (42,588 )     (0.65 )                        
Litigation settlement
    (664 )     (0.01 )                        
 
                                   
Adjusted net income attributable to Brooks Automation, Inc.
    23,341       0.36       26,831       0.41       16,860       0.26  
 
                                               
Stock-based compensation
    1,595       0.02       2,407       0.04       1,328       0.02  
 
                                   
Adjusted net income attributable to Brooks Automation, Inc. — excluding stock- based compensation
  $ 24,936     $ 0.38     $ 29,238     $ 0.45     $ 18,188     $ 0.28  
 
                                   
                                 
    Nine Months Ended  
    June 30, 2011     June 30, 2010  
    $     per share     $     per share  
Net income attributable to Brooks Automation, Inc.
  $ 116,254     $ 1.79     $ 34,806     $ 0.54  
 
Purchase accounting impact on contracts acquired
    313       0.00              
Restructuring charges
    557       0.01       2,294       0.04  
Gain on sale of contract manufacturing, net of tax
    (42,588 )     (0.66 )            
Litigation settlement
    (664 )     (0.01 )            
Sale of intellectual property rights, net of tax
                (7,519 )     (0.12 )
Loss on investment
                191       0.00  
One-time income tax benefit
                (3,899 )     (0.06 )
 
                       
Adjusted net income attributable to Brooks Automation, Inc.
  $ 73,872       1.14     $ 25,873       0.40  
 
                               
Stock-based compensation
    5,211       0.08       4,889       0.08  
 
                       
Adjusted net income attributable to Brooks Automation, Inc. — excluding stock- based compensation
  $ 79,083     $ 1.22     $ 30,762     $ 0.48  
 
                       
                                         
    Quarter ended     Nine months ended  
    June 30,     Mar 31,     June 30,     June 30,     June 30,  
    2011     2011     2010     2011     2010  
Net income attributable to Brooks Automation, Inc.
  $ 66,183     $ 26,585     $ 16,572       116,254       34,806  
 
Less: Interest income
    (350 )     (261 )     (221 )     (886 )     (814 )
Add: Interest expense
    10       28       7       39       34  
Add: Income tax provision (benefit)
    3,300       1,035       (35 )     5,323       (2,219 )
Add: Depreciation
    2,990       3,109       3,597       9,444       11,144  
Add: Amortization of completed technology
    539       480       479       1,498       1,408  
Add: Amortization of acquired intangible assets
    495       449       493       1,394       1,477  
Add: Stock-based compensation
    1,595       2,407       1,328       5,211       4,889  
Add: Restructuring charges
    97       246       288       557       2,294  
Add: Loss on investment
                            191  
Add: Purchase accounting impact on contracts acquired
                    313       313        
Less: Gain on sale of contract manufacturing, pre-tax
                    (45,009 )     (45,009 )      
Less: Litigation settlement
                            (664 )     (664 )
Less: Sale of intellectual property rights, pre-tax
                            (7,840 )
 
                                       
 
                             
Adjusted EBITDA
  $ 29,499     $ 34,078     $ 22,508     $ 93,474     $ 45,370  
 
                             
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com