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8-K - FORM 8-K - Brooks Automation, Inc.d476431d8k.htm

Exhibit 99.1

 

LOGO

Brooks Automation Reports Fiscal First Quarter Ended December 31, 2012 Results and Timetable for Chief Financial Officer Retirement

CHELMSFORD, Mass., January 31, 2013 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 first quarter ended December 31, 2012.

Fiscal First Quarter 2013 Financial and Operational Highlights:

 

   

Revenues were $98.0 Million; Order Bookings were $92.6 million;

 

   

Life Sciences revenues increased 10% on a year-over-year basis;

 

   

GAAP Loss Per Share was $(0.14); Adjusted Loss Per Share excluding special charges was $(0.06);

 

   

Cash flow from operations was $5.1 million;

 

   

Cash, Cash Equivalents and Marketable Securities, as of December 31, was $142 million, or $2.17 per diluted share with no Debt;

 

   

Generated 21 Design-in-Wins for Semiconductor and Adjacent market customers.

Summary of GAAP and Non-GAAP Earnings

 

$000’s except EPS    Fiscal 2013
1st Quarter
    Fiscal 2012
4th Quarter
     Fiscal 2012
1st Quarter
 

GAAP Net Income (Loss) attributable to Brooks

   $ (9,236   $ 116,217       $ 2,823   

GAAP Diluted Earnings (Loss) per share

   $ (0.14   $ 1.77       $ 0.04   

Adjusted Net Income (Loss) attributable to Brooks

   $ (3,842   $ 5,496       $ 3,607   

Adjusted Diluted Earnings (Loss) per Share

   $ (0.06   $ 0.08       $ 0.06   

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

“Consistent with our outlook for the quarter, we experienced a 20% sequential decline in product revenues for front-end semiconductor applications and a 31% sequential decline in revenues into our industrial customers as caution and uncertainty drove weak demand across almost all market sectors we serve. However, our Life Science Systems business increased on both a sequential and year-over-year basis as we continue to win the majority of the market share opportunities for automated sample management systems,” said Steve Schwartz, President and Chief Executive Officer of Brooks. “The integration of Crossing Automation into Brooks is moving ahead effectively and quickly. We are ahead of our aggressive schedule to drive annualized integration synergies of $12 million within the first five quarters of ownership. We are also pleased with the opportunities already opening up for revenue growth in atmospheric automation from developments using both Brooks and Crossing technologies.”

Dr. Schwartz continued, “We see modest improvement in most of our markets in the March 2013 quarter. While near term visibility is limited, we view favorably the capital expenditure plans of end users for our products and consequently expect a far stronger second half to our current fiscal year.”

First Quarter Fiscal 2013 Results

Revenues for the first quarter of fiscal 2013 were $98.0 million, compared to revenues of $119.5 million in the fourth quarter of fiscal 2012 and $120.2 million in the first quarter of fiscal 2012. The revenues for the first quarter of fiscal 2013 included $6.5 million of product sales and $2.0 million of service sales from the acquisition of Crossing Automation that closed one month into the quarter.


Revenues for the Brooks Global Services segment increased 0.3% on a sequential basis compared to the fiscal fourth quarter of 2012 with the addition of Crossing service revenues. Revenues for the Brooks Product Solutions segment declined 26% sequentially due to overall industry weakness. Revenues for the Brooks Life Science Systems segment grew sequentially to $14.1 million compared to the fourth quarter of 2012 at $13.9 million and grew 10% on a year-over-year basis.

Order bookings for the first quarter of fiscal 2013 declined sequentially 5% to $92.6 million, compared to order bookings in the fiscal fourth quarter 2012 of $97.5 million.

Gross profit margin was 29.7% for the first quarter of fiscal 2013, compared to gross profit margins of 32.3% for the fourth quarter of fiscal 2012 and 33.6% for the first quarter of fiscal 2012. Excluding acquisition related nonrecurring charges, gross profit margin was 31.9% for the first quarter of fiscal 2013, compared to gross profit margins of 32.3% for the fourth quarter of fiscal 2012 and 33.9% for the first quarter of fiscal 2012. The first quarter of fiscal 2013 sequential margin improvements in Services and Life Sciences were offset by a decrease in Product Solutions margins off lower revenue volumes.

Adjusted EBITDA (as defined in the Notes on non-GAAP measures) for the first quarter of fiscal 2013 was $3.3 million, which compared to $10.2 million in the fourth quarter of fiscal 2012 and $10.6 million in the first quarter of fiscal 2012.

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.

Net cash provided by operating activities for the first quarter of fiscal 2013 was $5.1 million, which resulted in total cash, cash equivalents and marketable securities of $142 million at December 31, 2012.

Quarterly Cash Dividend

The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on March 29, 2013 to stockholders of record on March 8, 2013. 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 Second Fiscal Quarter

The Company announced revenue and earnings guidance for the second quarter of fiscal 2013. Revenues are expected to range between $102 and $110 million and non-GAAP earnings per share are expected to range between breakeven and a loss of $(0.05). Including restructuring and acquisition related charges, GAAP adjusted loss per share is expected to be between $(0.03) and $(0.10) per diluted share.

Retirement of Chief Financial Officer

The Company announced that Martin S. Headley, Executive Vice President and Chief Financial Officer has given notice of his intention to retire. The Company and Mr. Headley have agreed in principle to the terms of a retention agreement pursuant to which he would remain in his role through the end of June 2013. The Company will be initiating a search and expects to be able to name a successor within this timeframe.

“It has been my distinct pleasure to have worked closely with Martin over the past three years,” states Dr. Schwartz. “Martin’s extensive financial experience and strategic insight have made him an outstanding partner and business leader as we repositioned the Company. We will miss his leadership and guidance but wish him the best in his retirement.”

“My tenure at Brooks has afforded an opportunity to work with many outstanding people and address unique business challenges and I am extremely proud of what we have accomplished at Brooks over my five plus years as CFO,” stated Mr. Headley. “As I have been considering my future plans over the last several weeks, I have worked closely with Steve and our Board to ensure that we will have a smooth transition.”

Conference Call

Brooks management will webcast its first quarter earnings conference today at 4:30 p.m. Eastern Time to discuss the fiscal first quarter 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.

The call will be broadcast live over the Internet 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 1-800-734-8583 (North America only) or 1-212-231-2930 to listen to the live broadcast.

 

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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.

 

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

“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.

 

3


BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

 

     December 31,
2012
    September 30,
2012
 

Assets

    

Current assets

    

Cash and cash equivalents

   $ 54,923      $ 54,639   

Restricted cash

     768        763   

Marketable securities

     48,070        85,646   

Accounts receivable, net

     63,832        78,855   

Inventories

     105,123        102,985   

Deferred tax assets

     18,134        15,531   

Prepaid expenses and other current assets

     9,879        9,070   
  

 

 

   

 

 

 

Total current assets

     300,729        347,489   

Property, plant and equipment, net

     65,006        64,478   

Long-term marketable securities

     38,996        59,946   

Long-term deferred tax assets

     101,135        104,626   

Goodwill

     114,043        88,440   

Intangible assets, net

     67,439        39,400   

Equity investment in joint ventures

     30,437        31,428   

Other assets

     7,044        6,153   
  

 

 

   

 

 

 

Total assets

   $ 724,829      $ 741,960   
  

 

 

   

 

 

 

Liabilities and equity

    

Current liabilities

    

Accounts payable

   $ 21,199      $ 28,988   

Deferred revenue

     8,927        9,986   

Accrued warranty and retrofit costs

     7,724        7,329   

Accrued compensation and benefits

     13,425        14,118   

Accrued restructuring costs

     4,793        2,098   

Accrued income taxes payable

     891        1,699   

Accrued expenses and other current liabilities

     17,248        16,973   
  

 

 

   

 

 

 

Total current liabilities

     74,207        81,191   

Income taxes payable

     8,065        6,356   

Long-term pension liability

     1,415        1,688   

Other long-term liabilities

     3,853        3,424   
  

 

 

   

 

 

 

Total liabilities

     87,540        92,659   
  

 

 

   

 

 

 

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, 79,807,305 shares issued and 66,345,436 shares outstanding at December 31, 2012, 79,790,557 shares issued and 66,328,688 shares outstanding at September 30, 2012

     798        798   

Additional paid-in capital

     1,819,402        1,817,706   

Accumulated other comprehensive income

     24,420        23,642   

Treasury stock at cost, 13,461,869 shares at December 31, 2012 and September 30, 2012

     (200,956     (200,956

Accumulated deficit

     (1,007,027     (992,524
  

 

 

   

 

 

 

Total Brooks Automation, Inc. stockholders’ equity

     636,637        648,666   

Noncontrolling interest in subsidiaries

     652        635   
  

 

 

   

 

 

 

Total equity

     637,289        649,301   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 724,829      $ 741,960   
  

 

 

   

 

 

 

 

4


BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

 

     Three months ended
December 31,
 
     2012     2011  

Revenues

    

Product

   $ 77,323      $ 97,098   

Services

     20,702        23,130   
  

 

 

   

 

 

 

Total revenues

     98,025        120,228   
  

 

 

   

 

 

 

Cost of revenues

    

Product

     54,481        64,289   

Services

     14,386        15,582   
  

 

 

   

 

 

 

Total cost of revenues

     68,867        79,871   
  

 

 

   

 

 

 

Gross profit

     29,158        40,357   
  

 

 

   

 

 

 

Operating expenses

    

Research and development

     11,518        11,949   

Selling, general and administrative

     25,947        26,742   

Restructuring and other charges

     4,757        203   
  

 

 

   

 

 

 

Total operating expenses

     42,222        38,894   
  

 

 

   

 

 

 

Operating income (loss)

     (13,064     1,463   

Interest income

     275        279   

Interest expense

     (1     (7

Other income (expense), net

     (93     346   
  

 

 

   

 

 

 

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

     (12,883     2,081   

Income tax provision (benefit)

     (3,670     300   
  

 

 

   

 

 

 

Income (loss) before equity in earnings (losses) of joint ventures

     (9,213     1,781   

Equity in earnings (losses) of joint ventures

     (6     1,050   
  

 

 

   

 

 

 

Net income (loss)

   $ (9,219   $ 2,831   

Net income attributable to noncontrolling interests

     (17     (8
  

 

 

   

 

 

 

Net income (loss) attributable to Brooks Automation, Inc.

   $ (9,236   $ 2,823   
  

 

 

   

 

 

 

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

   $ (0.14   $ 0.04   
  

 

 

   

 

 

 

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

   $ (0.14   $ 0.04   
  

 

 

   

 

 

 

Shares used in computing earnings (loss) per share

    

Basic

     65,567        64,812   

Diluted

     65,567        65,309   

 

 

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BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

 

     Three months ended
December 31,
 
     2012     2011  

Cash flows from operating activities

    

Net income (loss)

   $ (9,219   $ 2,831   

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

    

Depreciation and amortization

     6,441        5,268   

Stock-based compensation

     2,511        1,743   

Amortization of premium on marketable securities

     370        654   

Undistributed earnings (losses) of joint ventures

     6        (1,050

Deferred income tax benefit

     (4,310     —     

Pension settlement

     87        —     

Loss on disposal of long-lived assets

     13        —     

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

    

Accounts receivable

     20,216        3,935   

Inventories

     6,841        5,874   

Prepaid expenses and other current assets

     317        (490

Accounts payable

     (10,793     (5,910

Deferred revenue

     (1,340     (2,427

Accrued warranty and retrofit costs

     (1,127     (152

Accrued compensation and benefits

     (4,054     (4,270

Accrued restructuring costs

     2,390        32   

Accrued expenses and other current liabilities

     (3,237     (929
  

 

 

   

 

 

 

Net cash provided by operating activities

     5,112        5,109   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchases of property, plant and equipment

     (641     (2,063

Purchases of marketable securities

     (18,168     (23,579

Sale/maturity of marketable securities

     75,622        24,549   

Acquisition, net of cash acquired

     (56,033     (8,716

Payment of deferred leasing cost

     (686     —     

(Increase) decrease in restricted cash

     —          430   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     94        (9,379
  

 

 

   

 

 

 

Cash flows from financing activities

    

Common stock dividend paid

     (5,311     (5,185
  

 

 

   

 

 

 

Net cash used in financing activities

     (5,311     (5,185
  

 

 

   

 

 

 

Effects of exchange rate changes on cash and cash equivalents

     389        (165
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     284        (9,620

Cash and cash equivalents, beginning of period

     54,639        58,833   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 54,923      $ 49,213   
  

 

 

   

 

 

 

 

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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 (loss) and diluted earnings (loss) per share from operations is presented below.

 

     Quarter ended  
     December 31, 2012     September 30, 2012     December 31, 2011  
     $     per share     $     per share     $      per share  

Net income (loss) attributable to Brooks Automation, Inc.

   $ (9,236   $ (0.14   $ 116,217      $ 1.77      $ 2,823       $ 0.04   

Adjustments, net of tax:

             

Purchase accounting impact on inventory and contracts acquired

     1,513        0.02        —          —          360         0.01   

Restructuring charges

     3,425        0.05        2,150        0.03        203         0.00   

Pension settlement

     —          —          8,937        0.14        —           —     

Merger costs

     456        0.01        —          —          221         0.00   

One-time tax benefit

     —          —          (121,808     (1.85     —           —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted net income (loss) attributable to Brooks Automation, Inc.

     (3,842     (0.06     5,496        0.08        3,607         0.06   

Stock-based compensation

     2,511        0.04        1,744        0.03        1,743         0.03   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

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

   $ (1,331   $ (0.02   $ 7,240      $ 0.11      $ 5,350       $ 0.08   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
     Quarter ended  
     December 31, 2012     September 30, 2012     December 31, 2011  
     $     %     $     %     $      %  

Gross profit / gross margin percentage

   $ 29,158        29.7     38,607        32.3   $ 40,357         33.6

Adjustments:

             

Purchase accounting impact on inventory and contracts acquired

     2,102        2.1     —          —          360         0.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted gross profit / gross margin percentage

   $ 31,260        31.9   $ 38,607        32.3   $ 40,717         33.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

     Quarter ended  
     Dec 31,
2012
    Sep 30,
2012
    Dec 31,
2011
 

Net income (loss) attributable to Brooks Automation, Inc.

   $ (9,236   $ 116,217      $ 2,823   

Less: Interest income

     (275     (369     (279

Add: Interest expense

     1        2        7   

Add: Income tax provision (benefit)

     (3,670     (123,908     300   

Add: Depreciation

     3,704        3,399        3,262   

Add: Amortization of completed technology

     1,185        935        789   

Add: Amortization of acquired intangible assets

     1,552        1,127        1,217   

Add: Stock-based compensation

     2,511        1,744        1,743   

Add: Restructuring charges

     4,757        2,150        203   

Add: Purchase accounting impact on inventory and contracts acquired

     2,102        —          360   

Add: Merger costs

     634        —          221   

Add: Pension settlement

     —          8,937        —     
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 3,265      $ 10,234      $ 10,646   
  

 

 

   

 

 

   

 

 

 

 

7