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8-K - FORM 8-K - Brooks Automation, Inc.d436268d8k.htm

Exhibit 99.1

LOGO

Brooks Automation Reports Fiscal Fourth Quarter and Full Year Ended September 30, 2012 Results

CHELMSFORD, Mass., November 8, 2012 — Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing and life sciences today reported financial results for the fourth quarter and full year ended September 30, 2012.

Fiscal Fourth Quarter of 2012 Financial and Operational Highlights:

 

   

Revenues were $119.4 million;

 

   

Life Sciences revenues increased 25% on a sequential basis to $13.9 million;

 

   

GAAP Net Income was $116.2 million;

 

   

Generated Adjusted EBITDA of $10.2 million;

 

   

GAAP EPS of $1.77 per share;

 

   

Achieved Adjusted EPS of $0.08 per share

Fiscal Full Year of 2012 Financial and Operational Highlights:

 

   

Revenues were $519.5 million;

 

   

Generated Operating Cash Flow of $36.0 million, or $42.4 million before a pension plan settlement

 

   

Cash, Cash Equivalents and Marketable Securities as of September 30th were $200 million, or $3.05 per Diluted Share with No Debt

 

   

GAAP EPS of $2.08 per share for the full year;

 

   

Adjusted EPS was $0.48 for the full year;

 

   

Adjusted EBITDA was $58.9 million;

 

   

Generated 78 Design-in-Wins with OEM customers forging continued market share gains in semiconductor and adjacent markets

Summary of GAAP and Non-GAAP Earnings

 

     Fiscal 2012      Fiscal 2012      Fiscal 2011           Fiscal Year      Fiscal Year  
$ 000’s except EPS    4th Quarter      3rd Quarter      4th Quarter           2012      2011  

GAAP Net Income attributable to Brooks

     116,217         8,028         12,692            136,789         130,385   

GAAP Diluted Earnings per share

   $ 1.77       $ 0.12       $ 0.19          $ 2.08       $ 2.01   

Adjusted Net Income attributable to Brooks

     5,496         8,943         12,713            31,306         88,025   

Adjusted Diluted Earnings per Share

   $ 0.08       $ 0.14       $ 0.20          $ 0.48       $ 1.35   

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.

Management Comments

“Strength in our Brooks Life Science Systems revenue and gross margin slightly offset accelerating market weakness for semiconductor equipment products and enabled us to achieve the high end of our revenue guidance and beat our


bottom-line guidance for the quarter,” stated Steve Schwartz, President and Chief Executive Officer of Brooks. “The revenue base of our Life Science Systems business expanded in the fourth quarter, equating to 12% of our total revenue as of September 30, 2012. We are continually focused on the business performance across all of our segments and with that sentiment, we utilized our financial strength shortly after the quarter end to acquire Crossing Automation, Inc., which provides automation products primarily to global Semiconductor Front End markets. This acquisition will immediately contribute to our top and bottom line during fiscal 2013. Crossing has a product and customer franchise that is complementary to Brooks and the acquisition will meaningfully expand Brooks’ capabilities in atmospheric automation.”

Dr. Schwartz continued, “In spite of a continuing challenging environment, during fiscal year 2012, we generated $59 million of adjusted EBITDA enabling us to reinvest in our business, return capital to our shareholders in the form of a robust dividend, and make strategic acquisitions when appropriate. In addition, we continue to demonstrate market leadership with 78 design-in-wins in our technology business during our fiscal year 2012. Thus, while current market conditions continue to be weak our strategic position continues to strengthen.”

Martin Headley, Executive Vice President and Chief Financial Officer of Brooks, noted, “We ended fiscal 2012 with a very strong balance sheet of $200 million of cash and cash equivalents and no debt. Cumulative financial performance over recent years resulted in the reversal of $122 million of valuation allowances against our deferred tax assets. During the quarter we also terminated our previously frozen US defined benefit pension plan. Consequently, we close the fiscal year with Net Tangible Assets of $521 million, or $7.93 per share.”

Fiscal Fourth Quarter 2012 Results

Revenues for the fourth quarter of fiscal 2012 declined by $21.0 million to $119.4 million from $140.4 million in the third quarter of fiscal 2012 with a reduction of $24.9 million in product sales to Front End Semiconductor markets. Revenues were $11.5 million lower than in the fourth quarter of fiscal 2011 as gains in the Brooks Life Science Systems segment of $5.5 million were offset by the weaker market conditions for our semiconductor and industrial products.

Order bookings for the fourth quarter of fiscal 2012 decreased to $97.5 million, compared to order bookings in the fiscal third quarter of $128.0 million.

Gross profit margin was 32.3% for the fourth quarter of fiscal 2012, compared to gross profit margins of 32.9% for the third quarter of fiscal 2012 and 35.9% for the fourth quarter of fiscal 2011.

Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) for the fourth quarter of fiscal 2012 was $10.2 million, which compared to $17.2 million in the third quarter of fiscal 2012 and $18.3 million in the fourth quarter of fiscal 2011.

There were a number of special charges and one-time benefits recognized during the fourth quarter and the impact of these on earnings are set out in detail in the unaudited table included with this release. The Company took special charges of $8.9 million on terminating the US defined benefit pension plan and $2.2 million on implementing a restructuring plan that included an approximate 10% reduction in the Company’s workforce. The Company also recognized a $122 million one-time income tax benefit from releasing valuation allowances against certain deferred tax assets.

Net cash provided by operating activities for the fourth quarter of fiscal 2012 was $3.5 million which was net of $6.4 million utilized in the pension plan settlement. For the full fiscal year ended September 30, 2012, cash from operating activities was $36.0 million, or $42.4 million before the pension plan settlement.

Full Fiscal Year 2012 Results

Revenues for the full fiscal year ended September 30, 2012 were $519.5 million, compared to revenues of $688.1 million for the full fiscal year ended September 30, 2011. Fiscal 2011 revenues included $137.3 million of revenues from the Contract manufacturing business that the Company divested during June 2011.

GAAP net income for fiscal 2012 was $136.8 million, or $2.08 per diluted share, as compared to GAAP net income of $130.4 million, or $2.01 per share for fiscal 2011.There are a number of special charges and one-time gains reflected in both fiscal 2012 and fiscal 2011. The impact on earnings of these items is set out in the unaudited table included with this release. Excluding the impact of these items, Adjusted Net Income attributable to Brooks declined from $88.0 million or $1.35 per diluted share to $31.3 million or $0.48 per diluted share.


Quarterly Cash Dividend

The Company additionally announced that the Board of Directors has declared a dividend of $0.08 per share payable on December 28, 2012 to stockholders of record on December 7, 2012. 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.

Guidance for First Fiscal Quarter of Fiscal 2013

The Company announced revenue and earnings guidance for the first quarter of fiscal 2013. Revenues are expected to be in the range of $85 million and $95 million. Non-GAAP net loss per diluted share, excluding special charges, is expected to range between $(0.07) and $(0.15).

Conference Call

Brooks management will webcast its fourth quarter earnings conference today at 4:30 p.m. Eastern Time to discuss the fiscal fourth quarter and year-end 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. Management’s responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks’ website at www.brooks.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call (800) 381-7839 (US & Canada only) or (212) 231-2912 to listen to the live webcast.

About Brooks Automation, Inc.

Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing, life sciences, and clean energy. Our technologies, engineering competencies and global service capabilities provide customers speed to market, and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, we have been a leading partner to the global semiconductor manufacturing market and through product development initiatives and strategic business acquisitions; we have expanded our reach to meet the needs of customers in the life sciences industry, analytical & research markets and clean energy solutions. Brooks is headquartered in Chelmsford, MA, with direct operations in North America, Europe and Asia.

For more information, please visit 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 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.


BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(unaudited)

 

     September 30,
2012
    September 30,
2011
 
ASSETS     

Current assets

    

Cash and cash equivalents

   $ 54,639      $ 58,833   

Restricted cash

     763        1,293   

Marketable securities

     85,646        65,695   

Accounts receivable, net

     78,855        76,701   

Inventories

     102,985        107,654   

Deferred tax assets

     15,531          

Prepaid expenses and other current assets

     9,070        10,348   
  

 

 

   

 

 

 

Total current assets

     347,489        320,524   

Property, plant and equipment, net

     64,478        68,596   

Long-term marketable securities

     59,946        81,290   

Long-term deferred tax assets

     104,626          

Goodwill

     88,440        84,727   

Intangible assets, net

     39,400        44,314   

Equity investment in joint ventures

     31,428        34,950   

Other assets

     6,153        2,557   
  

 

 

   

 

 

 

Total assets

   $ 741,960      $ 636,958   
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities

    

Accounts payable

   $ 28,988      $ 40,199   

Deferred revenue

     9,986        14,073   

Accrued warranty and retrofit costs

     7,329        7,438   

Accrued compensation and benefits

     14,118        17,288   

Accrued restructuring costs

     2,098        293   

Accrued income taxes payable

     1,699        4,015   

Accrued expenses and other current liabilities

     16,973        12,433   
  

 

 

   

 

 

 

Total current liabilities

     81,191        95,739   

Income taxes payable

     6,356        11,728   

Long-term pension liability

     1,688        7,161   

Other long-term liabilities

     3,424        3,394   
  

 

 

   

 

 

 

Total liabilities

     92,659        118,022   
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity

    

Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2012 and 2011

     —          —     

Common stock, $0.01 par value, 125,000,000 shares authorized, 79,790,557 shares issued and 66,328,688 shares outstanding at September 30, 2012, 79,737,189 shares issued and 66,275,320 shares outstanding at September 30, 2011

     798        797   

Additional paid-in capital

     1,817,706        1,809,287   

Accumulated other comprehensive income

     23,642        17,324   

Treasury stock at cost, 13,461,869 shares at September 30, 2012 and 2011

     (200,956     (200,956

Accumulated deficit

     (992,524     (1,108,105
  

 

 

   

 

 

 

Total Brooks Automation, Inc. stockholders’ equity

     648,666        518,347   

Noncontrolling interests in subsidiaries

     635        589   
  

 

 

   

 

 

 

Total equity

     649,301        518,936   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 741,960      $ 636,958   
  

 

 

   

 

 

 


BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND TWELVE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(In thousands, except per share data)

(unaudited)

 

     Three months ended
September 30,
    Twelve months ended
September 30,
 
     2012     2011     2012     2011  

Revenues

        

Product

   $ 98,070      $ 108,334      $ 431,961      $ 611,117   

Services

     21,379        22,617        87,490        76,988   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     119,449        130,951        519,451        688,105   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

        

Product

     65,824        68,677        283,377        411,610   

Services

     15,018        15,216        62,588        53,474   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

     80,842        83,893        345,965        465,084   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     38,607        47,058        173,486        223,021   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Research and development

     11,295        11,481        47,464        39,846   

Selling, general and administrative

     24,867        28,143        101,223        102,542   

Restructuring charges

     2,150        479        3,275        1,036   

Pension settlement

     8,937        —          8,937        —     

In-process research and development

     —          —          3,026        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     47,249        40,103        163,925        143,424   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (8,642     6,955        9,561        79,597   

Interest income

     369        267        1,213        1,153   

Interest expense

     (2     (26     (14     (65

Sale of contract manufacturing business

     —          —          —          45,009   

Other income, net

     163        397        660        1,882   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes and equity in earnings of joint ventures

     (8,112     7,593        11,420        127,576   

Income tax provision (benefit)

     (123,908     (3,369     (123,282     1,954   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before equity in earnings of joint ventures

     115,796        10,962        134,702        125,622   

Equity in earnings of joint ventures

     457        1,758        2,133        4,815   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     116,253        12,720      $ 136,835        130,437   

Net income attributable to noncontrolling interests

     (36     (28     (46     (52
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Brooks Automation, Inc.

   $ 116,217      $ 12,692      $ 136,789      $ 130,385   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per share attributable to Brooks Automation, Inc. common stockholders

   $ 1.78      $ 0.20      $ 2.10      $ 2.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share attributable to Brooks Automation, Inc. common stockholders

   $ 1.77      $ 0.19      $ 2.08      $ 2.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing income per share

        

Basic

     65,397        64,750        65,128        64,549   

Diluted

     65,738        65,118        65,722        65,003   


BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 

     Year Ended September 30,  
     2012     2011  

Cash flows from operating activities

    

Net income

   $ 136,835      $ 130,437   

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

    

Depreciation and amortization

     21,620        17,249   

Stock-based compensation

     8,647        6,752   

Amortization of premium on marketable securities

     2,401        2,283   

Undistributed (earnings) losses of joint ventures

     2,942        (2,416

Deferred income tax benefit

     (122,136     (276

Pension settlement

     8,937        —     

Gain on sale of contract manufacturing business

     —          (45,009

(Gain) loss on disposal of long-lived assets

     (63     10   

Changes in operating assets and liabilities, net of acquisitions and disposals:

    

Accounts receivable

     (784     9,916   

Inventories

     5,874        (19,131

Prepaid expenses and other current assets

     726        1,806   

Accounts payable

     (11,182     (15,099

Deferred revenue

     (4,684     1,841   

Accrued warranty and retrofit costs

     (123     (1,420

Accrued compensation and benefits

     (4,878     1,717   

Accrued restructuring costs

     1,930        (3,212

Accrued pension

     (5,772     2,014   

Accrued expenses and other current liabilities

     (4,252     188   
  

 

 

   

 

 

 

Net cash provided by operating activities

     36,038        87,650   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchases of property, plant and equipment

     (8,653     (6,455

Purchases of marketable securities

     (132,015     (186,718

Sale/maturity of marketable securities

     131,317        120,095   

Decrease (increase) in restricted cash

     530        (1,293

Proceeds from the sale of the contract manufacturing business

     —          78,249   

Acquisitions, net of cash acquired

     (9,216     (88,309

Other investment

     (3,000     —     

Other

     —          181   
  

 

 

   

 

 

 

Net cash used in investing activities

     (21,037     (84,250
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from the issuance of common stock under stock option and stock purchase plans

     1,705        1,358   

Common stock dividend paid

     (20,953     (5,180
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (19,248     (3,822
  

 

 

   

 

 

 

Effects of exchange rate changes on cash and cash equivalents

     53        (568
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (4,194     (990

Cash and cash equivalents, beginning of year

     58,833        59,823   
  

 

 

   

 

 

 

Cash and cash equivalents, end of year

   $ 54,639      $ 58,833   
  

 

 

   

 

 

 


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 acquisition related charges. 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.


     Quarter ended  
     September 30, 2012     June 30, 2012      September 30, 2011  
     $     per share     $      per share      $     per share  

Net income attributable to Brooks Automation, Inc.

   $ 116,217      $ 1.77      $ 8,028       $ 0.12       $ 12,691      $ 0.19   

Purchase accounting impact on contracts acquired

     —          —          35         0.00         957        0.01   

Restructuring charges

     2,150        0.03        880         0.01         479        0.01   

Pension settlement

     8,937        0.14        —           —           —          —     

Merger costs

     —          —          —           —           719        0.01   

Inventory charges recorded for acquistions

     —          —          —           —           625        0.01   

One-time tax benefit

     (121,808     (1.85     —           —           (2,758     (0.04
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted net income attributable to Brooks Automation, Inc.

     5,496        0.08        8,943         0.14         12,713        0.20   

Stock-based compensation

     1,744        0.03        1,979         0.03         1,541        0.02   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted net income attributable to Brooks Automation, Inc. - excluding stock-based compensation

   $ 7,240      $ 0.11      $ 10,922       $ 0.17       $ 14,254      $ 0.22   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

     Year ended  
     September 30, 2012     September 30, 2011  
     $     per share     $     per share  

Net income attributable to Brooks Automation, Inc.

   $ 136,789      $ 2.08      $ 130,385      $ 2.01   

Purchase accounting impact on contracts acquired

     866        0.01        1,270        0.02   

Restructuring charges

     3,275        0.05        1,036        0.02   

Gain on sale of contract manufacturing, net of tax

     —          —          (42,588     (0.66

Merger costs

     221        0.00        719        0.01   

Inventory charges recorded for acquisitions

     —          —          625        0.01   

Litigation settlement

     —          —          (664     (0.01

Pension settlement

     8,937        0.14        —          —     

In-process R&D purchased

     3,026        0.05        —          —     

One-time income tax benefit

     (121,808     (1.85     (2,758     (0.04
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to Brooks Automation, Inc.

     31,306        0.48        88,025        1.35   

Stock-based compensation

     8,647        0.13        6,752        0.10   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to Brooks Automation, Inc. - excluding stock-based compensation

   $ 39,953      $ 0.61      $ 94,777      $ 1.46   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Quarter ended     Year ended  
     Sep 30,
2012
    June 30,
2012
    Sep 30,
2011
    Sep 30,
2012
    Sep 30,
2011
 

Net income attributable to Brooks Automation, Inc.

   $ 116,217      $ 8,028      $ 12,691        136,789        130,385   

Less: Interest income

     (369     (292     (267     (1,213     (1,153

Add: Interest expense

     2        5        26        14        65   

Add: Income tax provision (benefit)

     (123,908     985        (3,369     (123,282     1,954   

Add: Depreciation

     3,399        3,466        3,177        13,407        12,621   

Add: Amortization of completed technology

     935        936        718        3,595        2,216   

Add: Amortization of acquired intangible assets

     1,127        1,136        1,018        4,618        2,412   

Add: Stock-based compensation

     1,744        1,979        1,541        8,647        6,752   

Add: Restructuring charges

     2,150        880        479        3,275        1,036   

Add: In-process R&D purchased

     —          —          —          3,026        —     

Add: Purchase accounting impact on contracts acquired

     —          35        957        866        1,270   

Add: Merger costs

     —          —          719        221        719   

Add: Inventory charges recorded for acquisitions

     —          —          625        —          625   

Add: Pension settlement

     8,937        —          —          8,937        —     

Less: Gain on sale of contract manufacturing, pre-tax

     —          —          —          —          (45,009

Less: Litigation settlement

     —          —          —          —          (664
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 10,234      $ 17,158      $ 18,315      $ 58,900      $ 113,229   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Contact:

Lynne Yassemedis

Brooks Automation, Inc.

978-262-4443

lynne.yassemedis@brooks.com

John Mills

Senior Managing Director

ICR, LLC

310-954-1105

john.mills@icrinc.com