Press Release
For Immediate Release
August 5, 2010
August 5, 2010
Brooks Automation Reports Third Quarter Financial Results
Chelmsford, Massachusetts August 5, 2010 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s third quarter of fiscal year 2010 ended on June 30, 2010.
Revenues for the third quarter of 2010 were $156.8 million, compared to revenues of $43.9 million in the third quarter of 2009, an increase of 257.3%. Sequentially, revenues grew 5.7% from second quarter revenues of $148.4 million.
Net income attributable to Brooks Automation, Inc. (“Brooks”) for the third quarter of fiscal 2010 amounted to $16.6 million, or $0.26 per diluted share.
Excluding non-recurring income and special charges, the adjusted net income of $16.9 million or $0.26 per diluted share improved on a sequential basis from $10.1 million or $0.16 per diluted share and compares with a loss of $(23.0) million or $(0.37) per diluted share in the third quarter of fiscal 2009. Non recurring income and special charges and their impact on comparative results are identified in the unaudited table included with this release. Including non-recurring income and special charges, the Net Income attributable to Brooks in the second quarter was $21.0 million or $0.33 per diluted share and the Net Loss attributable to Brooks in the third quarter of the prior year was $(25.7) million or $(0.41) per diluted share.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the third quarter of fiscal 2010 was $22.5 million, which compared to $17.3 million in the second quarter of fiscal 2010 and $(17.2) million in the third quarter of fiscal 2009. 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 nine months ended June 30, 2010 was $17.9 million, which together with proceeds from the sale of intellectual property rights in the second fiscal quarter of $7.8 million resulted in an increase of total cash and marketable securities to $132.9 million at June 30, 2010.
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Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com.
| Brooks Automation Reports Third Quarter Financial Results | page two |
Revenues for the nine months ended June 30, 2010 were $411.3 million, a 166.0% increase from $154.6 million for the same prior fiscal year period. Net income attributable to Brooks for the current fiscal year to date was $34.8 million, as compared to the prior year period’s net loss of $(213.4) million. Excluding non-recurring income and special charges, the adjusted income (loss) from operations was $25.9 million or $0.40 per diluted share in the first nine months of fiscal 2010 as compared to a loss of $(89.0) million or $(1.42) per diluted share in the same prior fiscal year period. Non-recurring income and special charges are identified in the unaudited financial information included in this release.
Commenting on recent activities, Robert J. Lepofsky, Chief Executive Officer of Brooks stated, “Business activity continues to be strong across our entire portfolio of critical component and system solutions. Over the course of twelve months our top line has more than tripled and today we are delivering the best operating performance in the entire history of Brooks. In addition to solid execution in the core business our longer term growth initiatives outside of traditional semiconductor markets have moved forward as planned. Last quarter we saw initial shipments of new system platforms for the LED market and increasing interest in our innovative Simplicity Systems instrumentation products.”
Mr. Lepofsky added, “All current indications from our global customer base are for continued strong performance. We anticipate continued revenue growth and expanding operating margins in the near term and have high expectations for our business opportunities in targeted new market segments next year and beyond.”
Brooks management will webcast its third quarter earnings conference today 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 atwww.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 the global semiconductor and related industries. Our products and services are meeting the needs of customers across a broad spectrum of applications and industries and the global semiconductor manufacturing sector is our largest served market. When demanding productivity and availability objectives are essential factors for success, customers throughout the world turn to Brooks Automation, Inc. For more information go to www.brooks.com or email sales@brooks.com.
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com
| Brooks Automation Reports Third Quarter Financial Results | page three |
“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 increased 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, the impact of global health concerns, 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
Barbara Culhane
Corporate Marketing Manager
Brooks Automation, Inc.
978-262-2400
www.brooks.com
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
| June 30, | September 30, | |||||||
| 2010 | 2009 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 54,987 | $ | 59,985 | ||||
| Marketable securities | 49,123 | 28,046 | ||||||
| Accounts receivable, net | 71,932 | 38,428 | ||||||
| Inventories, net | 116,896 | 84,738 | ||||||
| Prepaid expenses and other current assets | 13,059 | 9,992 | ||||||
| Total current assets | 305,997 | 221,189 | ||||||
| Property, plant and equipment, net | 65,531 | 74,793 | ||||||
| Long-term marketable securities | 28,816 | 22,490 | ||||||
| Goodwill | 48,138 | 48,138 | ||||||
| Intangible assets, net | 12,093 | 14,081 | ||||||
| Equity investment in joint ventures | 29,795 | 29,470 | ||||||
| Other assets | 2,560 | 3,161 | ||||||
| Total assets | $ | 492,930 | $ | 413,322 | ||||
| Liabilities and equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 70,506 | $ | 26,360 | ||||
| Deferred revenue | 4,402 | 2,916 | ||||||
| Accrued warranty and retrofit costs | 7,476 | 5,698 | ||||||
| Accrued compensation and benefits | 11,869 | 14,317 | ||||||
| Accrued restructuring costs | 4,138 | 5,642 | ||||||
| Accrued income taxes payable | 1,679 | 2,686 | ||||||
| Accrued expenses and other current liabilities | 12,266 | 12,870 | ||||||
| Total current liabilities | 112,336 | 70,489 | ||||||
| Accrued long-term restructuring | 450 | 2,019 | ||||||
| Income taxes payable | 11,098 | 10,755 | ||||||
| Long-term pension liability | 8,428 | 7,913 | ||||||
| Other long-term liabilities | 2,506 | 2,523 | ||||||
| Total liabilities | 134,818 | 93,699 | ||||||
| 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, 78,796,148 shares issued and 65,334,279 shares outstanding at June 30, 2010, 77,883,173 shares issued and 64,421,304 shares outstanding at September 30, 2009 | 788 | 779 | ||||||
| Additional paid-in capital | 1,800,960 | 1,795,619 | ||||||
| Accumulated other comprehensive income | 14,740 | 16,318 | ||||||
| Treasury stock at cost, 13,461,869 shares at June 30, 2010 and September 30, 2009 | (200,956 | ) | (200,956 | ) | ||||
| Accumulated deficit | (1,257,825 | ) | (1,292,631 | ) | ||||
| Total Brooks Automation, Inc. stockholders’ equity | 357,707 | 319,129 | ||||||
| Noncontrolling interest in subsidiaries | 405 | 494 | ||||||
| Total equity | 358,112 | 319,623 | ||||||
| Total liabilities and equity | $ | 492,930 | $ | 413,322 | ||||
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
| Three months ended | Nine months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues | ||||||||||||||||
| Product | $ | 141,789 | $ | 31,510 | $ | 366,699 | $ | 116,479 | ||||||||
| Services | 15,001 | 12,366 | 44,641 | 38,142 | ||||||||||||
| Total revenues | 156,790 | 43,876 | 411,340 | 154,621 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Product | 99,118 | 29,301 | 263,634 | 115,078 | ||||||||||||
| Services | 11,767 | 10,617 | 36,605 | 36,477 | ||||||||||||
| Impairment of long-lived assets | — | 408 | — | 20,924 | ||||||||||||
| Total cost of revenues | 110,885 | 40,326 | 300,239 | 172,479 | ||||||||||||
| Gross profit (loss) | 45,905 | 3,550 | 111,101 | (17,858 | ) | |||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 7,901 | 7,549 | 23,119 | 24,492 | ||||||||||||
| Selling, general and administrative | 21,200 | 19,559 | 61,021 | 72,400 | ||||||||||||
| Impairment of goodwill | — | — | — | 71,800 | ||||||||||||
| Impairment of long-lived assets | — | — | — | 14,588 | ||||||||||||
| Restructuring charges | 288 | 2,327 | 2,294 | 12,293 | ||||||||||||
| Total operating expenses | 29,389 | 29,435 | 86,434 | 195,573 | ||||||||||||
| Operating income (loss) | 16,516 | (25,885 | ) | 24,667 | (213,431 | ) | ||||||||||
| Interest income | 221 | 536 | 814 | 2,079 | ||||||||||||
| Interest expense | 7 | 60 | 34 | 258 | ||||||||||||
| Sale of intellectual property rights | — | — | 7,840 | — | ||||||||||||
| Loss on investment | — | — | 191 | 1,185 | ||||||||||||
| Other (income) expense, net | 7 | (114 | ) | 295 | 35 | |||||||||||
| Income (loss) before income taxes and equity in earnings (losses) of joint ventures | 16,723 | (25,295 | ) | 32,801 | (212,830 | ) | ||||||||||
| Income tax provision (benefit) | (35 | ) | 148 | (2,219 | ) | 728 | ||||||||||
| Income (loss) before equity in earnings (losses) of joint ventures | 16,758 | (25,443 | ) | 35,020 | (213,558 | ) | ||||||||||
| Equity in earnings (losses) of joint ventures | (112 | ) | (59 | ) | (303 | ) | 253 | |||||||||
| Net income (loss) | $ | 16,646 | $ | (25,502 | ) | $ | 34,717 | $ | (213,305 | ) | ||||||
| Add: Net loss (income) attributable to noncontrolling interests | (74 | ) | (240 | ) | 89 | (63 | ) | |||||||||
| Net income (loss) attributable to Brooks Automation, Inc. | $ | 16,572 | $ | (25,742 | ) | $ | 34,806 | $ | (213,368 | ) | ||||||
| Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders | $ | 0.26 | $ | (0.41 | ) | $ | 0.55 | $ | (3.40 | ) | ||||||
| Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders | $ | 0.26 | $ | (0.41 | ) | $ | 0.54 | $ | (3.40 | ) | ||||||
| Shares used in computing earnings (loss) per share | ||||||||||||||||
| Basic | 63,969 | 63,011 | 63,679 | 62,835 | ||||||||||||
| Diluted | 64,264 | 63,011 | 64,123 | 62,835 | ||||||||||||
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
| Nine months ended | ||||||||
| June 30, | ||||||||
| 2010 | 2009 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 34,717 | $ | (213,305 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 14,029 | 20,841 | ||||||
| Impairment of goodwill | — | 71,800 | ||||||
| Impairment of long-lived assets | — | 35,512 | ||||||
| Sale of intellectual property rights | (7,840 | ) | — | |||||
| Stock-based compensation | 4,889 | 5,007 | ||||||
| Amortization of premium on marketable securities | 626 | 70 | ||||||
| Undistributed (earnings) losses of joint ventures | 303 | (253 | ) | |||||
| Gain on disposal of long-lived assets | (4 | ) | (12 | ) | ||||
| Loss on investment | 191 | 1,185 | ||||||
| Changes in operating assets and liabilities, net of acquisitions and disposals: | ||||||||
| Accounts receivable | (33,946 | ) | 38,432 | |||||
| Inventories | (33,683 | ) | 14,324 | |||||
| Prepaid expenses and other current assets | (3,065 | ) | 5,199 | |||||
| Accounts payable | 44,256 | (21,533 | ) | |||||
| Deferred revenue | 1,598 | (658 | ) | |||||
| Accrued warranty and retrofit costs | 1,769 | (2,558 | ) | |||||
| Accrued compensation and benefits | (2,433 | ) | (4,313 | ) | ||||
| Accrued restructuring costs | (3,043 | ) | (1,902 | ) | ||||
| Accrued expenses and other | (482 | ) | (757 | ) | ||||
| Net cash provided by (used in) operating activities | 17,882 | (52,921 | ) | |||||
| Cash flows from investing activities | ||||||||
| Purchases of property, plant and equipment | (1,908 | ) | (10,843 | ) | ||||
| Purchases of marketable securities | (95,722 | ) | (53,316 | ) | ||||
| Sale/maturity of marketable securities | 67,492 | 58,903 | ||||||
| Proceeds from the sale of intellectual property rights | 7,840 | — | ||||||
| Proceeds from the sale of long-lived assets | — | 1,093 | ||||||
| Purchase of intangible assets | (892 | ) | (38 | ) | ||||
| Other | 243 | — | ||||||
| Net cash used in investing activities | (22,947 | ) | (4,201 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of common stock, net of issuance costs | 609 | 675 | ||||||
| Net cash provided by financing activities | 609 | 675 | ||||||
| Effects of exchange rate changes on cash and cash equivalents | (542 | ) | (886 | ) | ||||
| Net decrease in cash and cash equivalents | (4,998 | ) | (57,333 | ) | ||||
| Cash and cash equivalents, beginning of period | 59,985 | 110,269 | ||||||
| Cash and cash equivalents, end of period | $ | 54,987 | $ | 52,936 | ||||
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com
BROOKS AUTOMATION, INC.
Supplemental Information
(In thousands, except per share data)
(unaudited)
Supplemental Information
(In thousands, except per share data)
(unaudited)
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 charges such as the sale of intellectual property rights, one-time tax refunds, non-cash impairment charges, 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 (loss) and diluted earnings (loss) per share from operations is presented below:
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com
| Quarter ended | ||||||||||||||||||||||||
| June 30, 2010 | March 31, 2010 | June 30, 2009 | ||||||||||||||||||||||
| $ | per share | $ | per share | $ | per share | |||||||||||||||||||
| Net income (loss) attributable to Brooks Automation, Inc. | $ | 16,572 | $ | 0.26 | $ | 21,029 | $ | 0.33 | $ | (25,742 | ) | $ | (0.41 | ) | ||||||||||
| Impairment charges — cost of revenues | — | — | — | — | 408 | 0.01 | ||||||||||||||||||
| Restructuring charges | 288 | 0.00 | 484 | 0.01 | 2,327 | 0.04 | ||||||||||||||||||
| One-time income tax benefit | — | — | (3,899 | ) | (0.06 | ) | — | — | ||||||||||||||||
| Sale of intellectual property rights, net of tax | — | — | (7,519 | ) | (0.12 | ) | — | — | ||||||||||||||||
| Adjusted net income (loss) attributable to Brooks Automation, Inc. | 16,860 | 0.26 | 10,095 | 0.16 | (23,007 | ) | (0.37 | ) | ||||||||||||||||
| Stock-based compensation | 1,328 | 0.02 | 2,044 | 0.03 | 1,613 | 0.03 | ||||||||||||||||||
| Adjusted net income (loss) attributable to Brooks Automation, Inc. — excluding stock-based compensation | $ | 18,188 | $ | 0.28 | $ | 12,139 | $ | 0.19 | $ | (21,394 | ) | $ | (0.34 | ) | ||||||||||
| Nine Months Ended | ||||||||||||||||
| June 30, 2010 | June 30, 2009 | |||||||||||||||
| $ | per share | $ | per share | |||||||||||||
| Net income (loss) attributable to Brooks Automation, Inc. | $ | 34,806 | $ | 0.54 | $ | (213,368 | ) | $ | (3.40 | ) | ||||||
| Impairment charges — cost of revenues | — | — | 20,924 | 0.33 | ||||||||||||
| Impairment charges — operating expense | — | — | 86,388 | 1.37 | ||||||||||||
| Restructuring charges | 2,294 | 0.04 | 12,293 | 0.20 | ||||||||||||
| Restructuring related inventory charges | — | — | 3,612 | 0.06 | ||||||||||||
| Loss on investment | 191 | 0.00 | 1,185 | 0.02 | ||||||||||||
| One-time income tax benefit | (3,899 | ) | (0.06 | ) | — | — | ||||||||||
| Sale of intellectual property rights, net of tax | (7,519 | ) | (0.12 | ) | — | — | ||||||||||
| Adjusted net income (loss) attributable to Brooks Automation, Inc. | 25,873 | 0.40 | (88,966 | ) | (1.42 | ) | ||||||||||
| Stock-based compensation | 4,889 | 0.08 | 5,007 | 0.08 | ||||||||||||
| Adjusted net income (loss) attributable to Brooks Automation, Inc. — excluding stock-based compensation | $ | 30,762 | $ | 0.48 | $ | (83,959 | ) | $ | (1.34 | ) | ||||||
| Quarter ended | Nine months ended | |||||||||||||||||||
| June 30, | Mar 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| Net income (loss) attributable to Brooks Automation, Inc. | $ | 16,572 | $ | 21,029 | $ | (25,742 | ) | $ | 34,806 | $ | (213,368 | ) | ||||||||
| Less: Interest income | (221 | ) | (265 | ) | (536 | ) | (814 | ) | (2,079 | ) | ||||||||||
| Add: Interest expense | 7 | 11 | 60 | 34 | 258 | |||||||||||||||
| Add: Income tax provision (benefit) | (35 | ) | (2,819 | ) | 148 | (2,219 | ) | 728 | ||||||||||||
| Add: Depreciation | 3,597 | 3,701 | 3,679 | 11,144 | 11,455 | |||||||||||||||
| Add: Amortization of completed technology | 479 | 472 | 457 | 1,408 | 5,119 | |||||||||||||||
| Add: Amortization of acquired intangible assets | 493 | 493 | 381 | 1,477 | 4,267 | |||||||||||||||
| Add: Stock-based compensation | 1,328 | 2,044 | 1,613 | 4,889 | 5,007 | |||||||||||||||
| Add: Restructuring related inventory charges | — | — | — | — | 3,612 | |||||||||||||||
| Add: Impairment charges — cost of revenues | — | — | 408 | — | 20,924 | |||||||||||||||
| Add: Impairment charges — operating expense | — | — | — | — | 86,388 | |||||||||||||||
| Add: Restructuring charges | 288 | 484 | 2,327 | 2,294 | 12,293 | |||||||||||||||
| Add: Loss on investment | — | — | — | 191 | 1,185 | |||||||||||||||
| Sale of intellectual property rights, pre-tax | — | (7,840 | ) | — | (7,840 | ) | — | |||||||||||||
| Adjusted EBITDA | $ | 22,508 | $ | 17,310 | $ | (17,205 | ) | $ | 45,370 | $ | (64,211 | ) | ||||||||
Brooks Automation, Inc.• 15 Elizabeth Drive• Chelmsford, Massachusetts 01824• (978)262-2400•www.brooks.com