 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| (Mark One) |
||
| þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
| For the quarterly period ended: June 30, 2002 | ||
OR
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
| For the transition period from | to | |||||
Commission File Number 0-25434
BROOKS-PRI AUTOMATION, INC.
| Delaware | 04-3040660 | |
|
|
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| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
15 Elizabeth Drive
Chelmsford, Massachusetts
(Address of principal executive offices)
01824
(Zip Code)
Registrant’s telephone number, including area code: (978) 262-2400
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
þ No
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practical date (June 30, 2002):
| Common stock, $0.01 par value | 33,913,439 shares |
BROOKS-PRI AUTOMATION, INC.
INDEX
| Page Number | ||||||||
| PART I. | FINANCIAL INFORMATION |
|||||||
| Item 1. | Consolidated Financial Statements |
|||||||
Consolidated Balance Sheets as of June 30, 2002 (unaudited)
and September 30, 2001 |
3 | |||||||
Consolidated Statements of Operations for the three and nine months
ended June 30, 2002 and 2001 (unaudited) |
4 | |||||||
Consolidated Statements of Cash Flows for the nine months ended
June 30, 2002 and 2001 (unaudited) |
5 | |||||||
Notes to Consolidated Financial Statements (unaudited) |
6 | |||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and
Results of Operations |
24 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|||||||
| PART II. | OTHER INFORMATION |
53 | ||||||
| Item 5. | Other Information |
53 | ||||||
| Item 6. | Exhibits and Reports on Form 8-K |
54 | ||||||
| Signatures | 57 | |||||||
BROOKS-PRI AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
| June 30, | September 30, | ||||||||||
| 2002 | 2001 | ||||||||||
| (unaudited) | |||||||||||
| (In thousands, except share data) | |||||||||||
ASSETS |
|||||||||||
Current assets |
|||||||||||
Cash and cash equivalents |
$ | 138,668 | $ | 160,239 | |||||||
Marketable securities |
65,476 | 43,593 | |||||||||
Accounts receivable, net, including related party receivables of $37 and
$32, respectively |
107,283 | 93,565 | |||||||||
Inventories |
88,036 | 49,295 | |||||||||
Prepaid expenses and other current assets |
21,099 | 9,836 | |||||||||
Deferred income taxes |
87,174 | 26,608 | |||||||||
Total current assets |
507,736 | 383,136 | |||||||||
Property, plant and equipment |
|||||||||||
Buildings and land |
30,711 | 31,910 | |||||||||
Computer equipment and software |
43,466 | 38,497 | |||||||||
Machinery and equipment |
24,083 | 17,349 | |||||||||
Furniture and fixtures |
14,434 | 11,240 | |||||||||
Leasehold improvements |
24,207 | 10,069 | |||||||||
Construction in progress |
15,864 | 11,026 | |||||||||
| 152,765 | 120,091 | ||||||||||
Less: Accumulated depreciation and amortization |
(69,478 | ) | (53,632 | ) | |||||||
| 83,287 | 66,459 | ||||||||||
Long-term marketable securities |
82,577 | 125,887 | |||||||||
Goodwill |
406,888 | 60,128 | |||||||||
Intangible assets, net |
162,387 | 40,788 | |||||||||
Deferred income taxes |
85,880 | 19,280 | |||||||||
Other assets |
34,025 | 14,026 | |||||||||
Total assets |
$ | 1,362,780 | $ | 709,704 | |||||||
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’ EQUITY |
|||||||||||
Current liabilities |
|||||||||||
Notes payable |
$ | 17,000 | $ | 17,122 | |||||||
Current portion of long-term debt |
31 | 392 | |||||||||
Accounts payable |
40,838 | 18,595 | |||||||||
Deferred revenue |
26,919 | 15,507 | |||||||||
Accrued compensation and benefits |
22,585 | 12,835 | |||||||||
Accrued acquisition-related and restructuring costs |
16,556 | 3,702 | |||||||||
Accrued income taxes payable |
— | 7,691 | |||||||||
Deferred income taxes |
17,808 | 423 | |||||||||
Accrued expenses and other current liabilities |
47,199 | 24,706 | |||||||||
Total current liabilities |
188,936 | 100,973 | |||||||||
Long-term debt |
175,618 | 175,031 | |||||||||
Deferred income taxes |
48,650 | 6,546 | |||||||||
Accrued long-term restructuring |
9,480 | 1,559 | |||||||||
Other long-term liabilities |
1,027 | 664 | |||||||||
Total liabilities |
423,711 | 284,773 | |||||||||
Commitments
and contingencies (Note 12) |
|||||||||||
Minority interests |
963 | 762 | |||||||||
Stockholders’ equity |
|||||||||||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none
issued and outstanding |
— | — | |||||||||
Common stock, $0.01 par value, 100,000,000 shares and 43,000,000 shares
authorized and 33,913,439 shares and 18,903,165 shares issued and
outstanding, respectively |
339 | 189 | |||||||||
Additional paid-in capital |
1,045,994 | 471,991 | |||||||||
Deferred compensation |
(15,381 | ) | (5 | ) | |||||||
Accumulated other comprehensive loss |
(768 | ) | (2,586 | ) | |||||||
Accumulated deficit |
(92,078 | ) | (45,420 | ) | |||||||
Total stockholders’ equity |
938,106 | 424,169 | |||||||||
Total liabilities, minority interests and stockholders’ equity |
$ | 1,362,780 | $ | 709,704 | |||||||
The accompanying notes are an integral part of these consolidated financial statements.
BROOKS-PRI AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three months ended | Nine months ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2002 | 2001 (1) | 2002 | 2001 (1) | |||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||
Revenues |
||||||||||||||||||
Product, including related party revenues of $48 and
$565 for the three and nine month periods ended
June 30, 2002, respectively, and $13,934
for the period from October 1, 2000 through
January 23, 2001 (see Note 8) |
$ | 59,943 | $ | 75,225 | $ | 138,228 | $ | 253,731 | ||||||||||
Services |
25,819 | 21,589 | 62,840 | 66,461 | ||||||||||||||
Total revenues |
85,762 | 96,814 | 201,068 | 320,192 | ||||||||||||||
Cost of revenues |
||||||||||||||||||
Product |
41,272 | 37,567 | 90,777 | 128,196 | ||||||||||||||
Services |
17,818 | 14,179 | 43,927 | 47,443 | ||||||||||||||
Total cost of revenues |
59,090 | 51,746 | 134,704 | 175,639 | ||||||||||||||
Gross profit |
26,672 | 45,068 | 66,364 | 144,553 | ||||||||||||||
Operating expenses |
||||||||||||||||||
Research and development |
20,679 | 16,533 | 50,254 | 45,543 | ||||||||||||||
Selling, general and administrative |
28,244 | 23,879 | 66,228 | 71,648 | ||||||||||||||
Amortization of acquired intangible assets (See Note 3) |
5,522 | 7,844 | 11,711 | 20,479 | ||||||||||||||
Acquisition-related and restructuring charges |
10,817 | 699 | 10,926 | 1,717 | ||||||||||||||
Total operating expenses |
65,262 | 48,955 | 139,119 | 139,387 | ||||||||||||||
Income (loss) from operations |
(38,590 | ) | (3,887 | ) | (72,755 | ) | 5,166 | |||||||||||
Interest income |
2,440 | 2,975 | 7,894 | 9,124 | ||||||||||||||
Interest expense |
2,624 | 1,042 | 7,896 | 1,342 | ||||||||||||||
Other income (expense), net |
400 | 163 | 1,045 | (451 | ) | |||||||||||||
Income (loss) before income taxes and minority interests |
(38,374 | ) | (1,791 | ) | (71,712 | ) | 12,497 | |||||||||||
Income tax provision (benefit) |
(14,207 | ) | (2,199 | ) | (24,964 | ) | 9,318 | |||||||||||
Income (loss) before minority interests |
(24,167 | ) | 408 | (46,748 | ) | 3,179 | ||||||||||||
Minority interests in income (loss) of consolidated subsidiaries |
30 | (110 | ) | (90 | ) | (262 | ) | |||||||||||
Net income (loss) |
(24,197 | ) | 518 | (46,658 | ) | 3,441 | ||||||||||||
Accretion and dividends on preferred stock |
— | (30 | ) | — | (90 | ) | ||||||||||||
Net income (loss) attributable to common stockholders |
$ | (24,197 | ) | $ | 488 | $ | (46,658 | ) | $ | 3,351 | ||||||||
Earnings (loss) per share |
||||||||||||||||||
Basic |
$ | (0.89 | ) | $ | 0.03 | $ | (2.08 | ) | $ | 0.19 | ||||||||
Diluted |
$ | (0.89 | ) | $ | 0.03 | $ | (2.08 | ) | $ | 0.18 | ||||||||
Shares used in computing earnings (loss) per share |
||||||||||||||||||
Basic |
27,341 | 17,920 | 22,448 | 17,739 | ||||||||||||||
Diluted |
27,341 | 19,426 | 22,448 | 18,898 | ||||||||||||||
| (1) | Restated to reflect the acquisition of Progressive Technologies, Inc., in a pooling of interests transaction effective July 12, 2001. |
The accompanying notes are an integral part of these consolidated financial statements.
BROOKS-PRI AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Nine months ended | |||||||||||
| June 30, | |||||||||||
| 2002 | 2001 (1) | ||||||||||
| (In thousands) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||||||
Net income (loss) |
$ | (46,658 | ) | $ | 3,441 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|||||||||||
Depreciation and amortization |
24,515 | 31,534 | |||||||||
Compensation expense related to common stock |
1,815 | 23 | |||||||||
Provision for losses on accounts receivable |
1,773 | 455 | |||||||||
Writedown of excess and obsolete inventories |
2,266 | 1,901 | |||||||||
Deferred income taxes |
(9,996 | ) | (8,969 | ) | |||||||
Amortization of debt discount |
628 | 4 | |||||||||
Minority interests |
(90 | ) | (262 | ) | |||||||
Loss on disposal of long-lived assets |
75 | 75 | |||||||||
Changes in operating assets and liabilities: |
|||||||||||
Accounts receivable |
17,069 | (11,486 | ) | ||||||||
Inventories |
220 | (9,174 | ) | ||||||||
Prepaid expenses and other current assets |
(1,382 | ) | (3,259 | ) | |||||||
Accounts payable |
12,033 | (5,620 | ) | ||||||||
Deferred revenue |
922 | (631 | ) | ||||||||
Accrued compensation and benefits |
955 | (344 | ) | ||||||||
Accrued acquisition-related and restructuring costs |
(7,150 | ) | (137 | ) | |||||||
Accrued expenses and other current liabilities |
(19,734 | ) | 13,832 | ||||||||
Net cash provided by (used in) operating activities |
(22,739 | ) | 11,383 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||||||
Purchases of fixed assets |
(16,906 | ) | (43,409 | ) | |||||||
Acquisition of businesses, net of cash acquired |
(10,077 | ) | (32,131 | ) | |||||||
Purchases of marketable securities |
(56,866 | ) | (133,655 | ) | |||||||
Sale/maturity of marketable securities |
78,293 | 100,258 | |||||||||
Proceeds from sale of long-lived assets |
57 | ||||||||||