CHELMSFORD, Mass., Aug. 4, 2011 (GLOBE NEWSWIRE) -- 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.
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."
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.
| 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. | ||||
| 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. | ||
| 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 |
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:
| 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 | |