CHELMSFORD, Mass., Aug. 9, 2012 (GLOBE NEWSWIRE) -- 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 third quarter and nine-months ended June 30, 2012.
Fiscal Third Quarter of 2012 Financial and Operational Highlights:
- Revenues were $140.4 million; Order Bookings were $128.0 million;
- GAAP EPS was $0.12 and EPS excluding special charges was $0.14;
- Adjusted EBITDA was $17.2 million;
- Cash, Cash Equivalents and Marketable Securities as of June 30th were $203.7 million, or $3.10 per diluted share;
- Generated 61 Design-in-Wins with OEM Customers during the first nine months of fiscal 2012.
Summary of GAAP and Non-GAAP Earnings
| Fiscal 2012 | Fiscal 2012 | Fiscal 2011 | 9 months ended | 9 months ended | ||||||||
| $ 000's except EPS | 3rd Quarter | 2nd Quarter | 3rd Quarter | June 30, 2012 | June 30, 2011 | |||||||
| GAAP Net Income attributable to Brooks | 8,028 | 9,721 | 66,915 | 20,572 | 117,693 | |||||||
| GAAP Diluted Earnings per share | $ 0.12 | $ 0.15 | $ 1.03 | $ 0.31 | $ 1.81 | |||||||
| Adjusted Net Income attributable to Brooks | 8,943 | 13,260 | 24,073 | 25,810 | 75,311 | |||||||
| Adjusted Diluted Earnings per Share | $ 0.14 | $ 0.20 | $ 0.37 | $ 0.39 | $ 1.16 | |||||||
The results above reflect certain immaterial revisions to prior periods related to equity in earnings from our joint venture with Ulvac Cryogenics, Inc. Refer to our quarterly report on Form 10-Q for the quarter ended June 30, 2012 for details regarding these revisions.
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
"While we achieved the bottom end of our revenue guidance in an increasingly difficult market environment, the mix of those revenues resulted in our net income slightly below our earnings guidance," stated Steve Schwartz, President & Chief Executive Officer of Brooks. "Additionally, our Life Science Systems revenue was temporarily affected in the third quarter by the timing of tender awards for major systems, notably in Europe. The planning for significant investment by research institutes in Sample Storage and Management Systems continues and we are confident in the longer term growth profile of this market-leading business."
Dr. Schwartz continued, "During the first nine months of this fiscal year we generated $48.7 million of adjusted EBITDA, and have made improvements within our business. We have also demonstrated market leadership as evidenced by the 61 Design-in-Wins within the technology business over this period. Despite negative macro-economic events we are well-positioned to generate higher margins in the coming quarters and continue market share gains in many areas of our business."
Martin Headley, Executive Vice President and Chief Financial Officer of Brooks, noted "We have built a very strong balance sheet with cash and cash equivalents at the end of the quarter of $203.7 million and no debt. We continue to be active in working appropriate opportunities for exercising our capital structure."
Third Quarter of Fiscal 2012 Results
Revenues for the third quarter of fiscal 2012 were $140.4 million, compared to revenues of $139.3 million in the second quarter of fiscal 2012 and $186.1 million in the third quarter of fiscal 2011, which included $42.3 million from the Contract Manufacturing business that was sold at the end of the third quarter of fiscal 2011. Revenues for the Brooks Product Solutions segment increased 4.1% on a sequential basis compared to the second fiscal quarter of 2012. Revenues for the Brooks Life Science Systems segment decreased 23.6% sequentially primarily due to fewer systems opportunities awarded during the quarter while revenues for the Brooks Global Services segment increased 1.4% sequentially on higher pump service revenues.
Order bookings for the third quarter of fiscal 2012 decreased to $128.0 million, compared to order bookings in the fiscal second quarter of $155.3 million. The decrease in bookings was impacted by an overall decrease in semiconductor industry bookings and aforementioned reductions in bookings for Brooks Life Science Systems. The Company expects its bookings from Brooks Life Science Systems to increase in the fourth quarter of fiscal 2012 for fiscal 2013 delivery.
Gross profit margin was 32.9% for the third quarter of fiscal 2012, compared to gross profit margins of 34.7% for the second quarter of fiscal 2012 and 30.6% for the third quarter of fiscal 2011. The third quarter of fiscal 2012 improved 230 basis points compared to the third quarter of fiscal 2011 primarily due to revenue mix with higher Brooks Life Science Systems revenue and the divestiture of lower margin Contract Manufacturing segment business. On a sequential basis, gross margin was down 180 basis points primarily due to revenue mix in the Brooks Product Solutions segment as well as the Brooks Global Services segment. The Company expects an improvement in overall gross margin during the fourth quarter of fiscal 2012 compared to fiscal third quarter of 2012.
Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) for the third quarter of fiscal 2012 was $17.2 million, which compared to $20.9 million in the second quarter of fiscal 2012 and $30.2 million in the third quarter of fiscal 2011.
Net cash provided by operating activities for the third quarter of fiscal 2012 was $10.9 million. The Company ended the third quarter of fiscal 2012 with total cash and marketable securities of $203.7 million at June 30, 2012.
Nine Months ended June 30, 2012 Results
Revenues for the nine months ended June 30, 2012 were $400.0 million, compared to revenues of $557.2 million for the nine months ended June 30, 2011, which included $137.3 million from the Contract Manufacturing business that was sold at the end of the third quarter of fiscal 2011.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on September 28, 2012 to stockholders of record on September 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 Fourth Fiscal Quarter of Fiscal 2012
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2012. Revenues are expected to decrease between 15 and 20%. Non-GAAP diluted earnings per share, excluding special charges are expected to range between $0.00 and $0.06. The Company did not provide GAAP earnings guidance given uncertainties surrounding special charges including charges associated with the termination of an existing defined benefit pension plan and potential tax benefits from reversing certain valuations allowance against deferred tax assets.
Conference Call
Brooks management will webcast its third quarter earnings conference today at 4:30 p.m. Eastern Time to discuss the fiscal third 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 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 (888) 339-2688 (U.S. only) or (617) 847-3007 to listen to the live broadcast. The passcode for this telephone access is 141 084 80.
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 | ||
| (unaudited) | ||
| (In thousands, except share and per share data) | ||
|
June 30, 2012 |
September 30, 2011 |
|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $61,564 | $58,833 |
| Restricted cash | 762 | 1,293 |
| Marketable securities | 87,606 | 65,695 |
| Accounts receivable, net | 87,297 | 76,701 |
| Inventories | 106,819 | 107,654 |
| Prepaid expenses and other current assets | 10,396 | 10,348 |
| Total current assets | 354,444 | 320,524 |
| Property, plant and equipment, net | 65,024 | 68,596 |
| Long-term marketable securities | 54,498 | 81,290 |
| Goodwill | 88,440 | 84,727 |
| Intangible assets, net | 41,111 | 44,314 |
| Equity investment in joint ventures | 35,785 | 34,950 |
| Other assets | 6,021 | 2,557 |
| Total assets | $645,323 | $636,958 |
| Liabilities and equity | ||
| Current liabilities | ||
| Accounts payable | $46,606 | $40,199 |
| Deferred revenue | 10,789 | 14,073 |
| Accrued warranty and retrofit costs | 7,370 | 7,438 |
| Accrued compensation and benefits | 15,187 | 17,288 |
| Accrued restructuring costs | 751 | 293 |
| Accrued income taxes payable | 4,317 | 4,015 |
| Accrued expenses and other current liabilities | 14,105 | 12,433 |
| Total current liabilities | 99,125 | 95,739 |
| Income taxes payable | 10,092 | 11,728 |
| Long-term pension liability | 7,161 | 7,161 |
| Other long-term liabilities | 3,397 | 3,394 |
| Total liabilities | 119,775 | 118,022 |
| 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, 79,694,001 shares issued and 66,232,132 shares outstanding at June 30, 2012, 79,737,189 shares issued and 66,275,320 shares outstanding at September 30, 2011 | 797 | 797 |
| Additional paid-in capital | 1,815,114 | 1,809,287 |
| Accumulated other comprehensive income | 13,429 | 17,324 |
| Treasury stock at cost, 13,461,869 shares at June 30, 2012 and September 30, 2011 | (200,956) | (200,956) |
| Accumulated deficit | (1,103,435) | (1,108,105) |
| Total Brooks Automation, Inc. stockholders' equity | 524,949 | 518,347 |
| Noncontrolling interest in subsidiaries | 599 | 589 |
| Total equity | 525,548 | 518,936 |
| Total liabilities and equity | $645,323 | $636,958 |
| BROOKS AUTOMATION, INC. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (unaudited) | ||||
| (In thousands, except per share data) | ||||
|
Three months ended June 30, |
Nine months ended June 30, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Revenues | ||||
| Product | $119,172 | $166,658 | $333,891 | $502,783 |
| Services | 21,265 | 19,478 | 66,111 | 54,371 |
| Total revenues | 140,437 | 186,136 | 400,002 | 557,154 |
| Cost of revenues | ||||
| Product | 77,821 | 115,299 | 217,553 | 342,933 |
| Services | 16,376 | 13,867 | 47,570 | 38,258 |
| Total cost of revenues | 94,197 | 129,166 | 265,123 | 381,191 |
| Gross profit | 46,240 | 56,970 | 134,879 | 175,963 |
| Operating expenses | ||||
| Research and development | 11,691 | 10,025 | 36,169 | 28,365 |
| Selling, general and administrative | 25,344 | 24,676 | 76,356 | 74,399 |
| Restructuring charges | 880 | 97 | 1,125 | 557 |
| In-process research and development | — | — | 3,026 | — |
| Total operating expenses | 37,915 | 34,798 | 116,676 | 103,321 |
| Operating income | 8,325 | 22,172 | 18,203 | 72,642 |
| Interest income | 292 | 350 | 844 | 886 |
| Interest expense | (5) | (10) | (12) | (39) |
| Sale of contact manufacturing business | — | 45,009 | — | 45,009 |
| Other income, net | 202 | 1,068 | 497 | 1,485 |
| Income before income taxes and equity in earnings of joint ventures | 8,814 | 68,589 | 19,532 | 119,983 |
| Income tax provision | 985 | 3,300 | 626 | 5,323 |
| Income before equity in earnings of joint ventures | 7,829 | 65,289 | 18,906 | 114,660 |
| Equity in earnings of joint ventures | 196 | 1,632 | 1,676 | 3,057 |
| Net income | $8,025 | $66,921 | $20,582 | $117,717 |
| Net loss (income) attributable to noncontrolling interests | 3 | (6) | (10) | (24) |
| Net income attributable to Brooks Automation, Inc. | $8,028 | $66,915 | $20,572 | $117,693 |
| Basic net income per share attributable to Brooks Automation, Inc. common stockholders | $0.12 | $1.03 | $0.32 | $1.83 |
| Diluted net income per share attributable to Brooks Automation, Inc. common stockholders | $0.12 | $1.03 | $0.31 | $1.81 |
| Shares used in computing earnings per share | ||||
| Basic | 65,264 | 64,668 | 65,038 | 64,481 |
| Diluted | 65,781 | 65,141 | 65,677 | 64,941 |
| BROOKS AUTOMATION, INC. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| (In thousands) | ||
|
Nine months ended June 30, |
||
| 2012 | 2011 | |
| Cash flows from operating activities | ||
| Net income | $20,582 | $117,717 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 16,159 | 12,336 |
| Stock-based compensation | 6,903 | 5,211 |
| Amortization of premium on marketable securities | 1,804 | 1,534 |
| Undistributed earnings of joint ventures | (1,676) | (3,057) |
| (Gain) loss on disposal of long-lived assets | (62) | 24 |
| Sale of contract manufacturing business | — | (45,009) |
| Changes in operating assets and liabilities, net of acquisitions and disposals: | ||
| Accounts receivable | (10,007) | (461) |
| Inventories | 961 | (11,248) |
| Prepaid expenses and other current assets | (1,141) | 3,245 |
| Accounts payable | 6,496 | (11,812) |
| Deferred revenue | (3,625) | (1,410) |
| Accrued warranty and retrofit costs | (72) | (638) |
| Accrued compensation and benefits | (3,869) | (72) |
| Accrued restructuring costs | 465 | (2,943) |
| Accrued expenses and other current liabilities | (344) | 3,802 |
| Net cash provided by operating activities | 32,574 | 67,219 |
| Cash flows from investing activities | ||
| Purchases of property, plant and equipment | (6,364) | (4,163) |
| Purchases of marketable securities | (93,306) | (145,821) |
| Sale/maturity of marketable securities | 96,499 | 78,644 |
| Proceeds from the sale of the contract manufacturing business | — | 75,664 |
| Proceeds from assets sold | — | 4,372 |
| Acquisitions, net of cash acquired | (8,716) | (3,381) |
| Other investment | (3,000) | — |
| Decrease (increase) in restricted cash | 531 | (760) |
| Net cash (used in) provided by investing activities | (14,356) | 4,555 |
| Cash flows from financing activities | ||
| Proceeds from the issuance of common stock, net of issuance costs | 841 | 681 |
| Common stock dividend paid | (15,719) | — |
| Net cash (used in) provided by financing activities | (14,878) | 681 |
| Effects of exchange rate changes on cash and cash equivalents | (609) | 837 |
| Net increase in cash and cash equivalents | 2,731 | 73,292 |
| Cash and cash equivalents, beginning of period | 58,833 | 59,823 |
| Cash and cash equivalents, end of period | $61,564 | $133,115 |
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 | ||||||
| June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||
| $ | per share | $ | per share | $ | per share | |
| Net income attributable to Brooks Automation, Inc. | $ 8,028 | $ 0.12 | $ 9,722 | $ 0.15 | $ 66,915 | $ 1.03 |
| Purchase accounting impact on contracts acquired | 35 | 0.00 | 471 | 0.01 | 313 | 0.00 |
| Restructuring charges | 880 | 0.01 | 42 | 0.00 | 97 | 0.00 |
| Gain on sale of contract manufacturing, net of tax | -- | -- | -- | -- | (42,588) | (0.65) |
| Litigation settlement | -- | -- | -- | -- | (664) | (0.01) |
| In-process R&D purchased | -- | -- | 3,026 | 0.05 | -- | -- |
| Adjusted net income attributable to Brooks Automation, Inc. | 8,943 | 0.14 | 13,261 | 0.20 | 24,073 | 0.37 |
| Stock-based compensation | 1,979 | 0.03 | 3,181 | 0.05 | 1,595 | 0.02 |
| Adjusted net income attributable to Brooks Automation, Inc., excluding stock-based compensation | $ 10,922 | $ 0.17 | $ 16,442 | $ 0.25 | $ 25,668 | $ 0.39 |
| Nine Months Ended | ||||||
| June 30, 2012 | June 30, 2011 | |||||
| $ | per share | $ | per share | |||
| Net income attributable to Brooks Automation, Inc. | $ 20,572 | $ 0.31 | $ 117,693 | $ 1.81 | ||
| Purchase accounting impact on contracts acquired | 866 | 0.01 | 313 | 0.00 | ||
| Restructuring charges | 1,125 | 0.02 | 557 | 0.01 | ||
| Gain on sale of contract manufacturing, net of tax | -- | -- | (42,588) | (0.66) | ||
| Litigation settlement | -- | -- | (664) | (0.01) | ||
| Merger costs | 221 | 0.00 | -- | -- | ||
| In-process R&D purchased | 3,026 | 0.05 | -- | -- | ||
| Adjusted net income attributable to Brooks Automation, Inc. | $ 25,810 | 0.39 | $ 75,311 | 1.16 | ||
| Stock-based compensation | 6,903 | 0.11 | 5,211 | 0.08 | ||
| Adjusted net income attributable to Brooks Automation, Inc. - excluding stock-based compensation | $ 32,713 | $ 0.50 | $ 80,522 | $ 1.24 | ||
| Quarter ended | Nine months ended | |||||
|
June 30, 2012 |
Mar 31, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
||
| Net income attributable to Brooks Automation, Inc. | $ 8,028 | $ 9,722 | $ 66,915 | 20,572 | 117,693 | |
| Less: Interest income | (292) | (273) | (350) | (844) | (886) | |
| Add: Interest expense | 5 | -- | 10 | 12 | 39 | |
| Add: Income tax provision (benefit) | 985 | (659) | 3,300 | 626 | 5,323 | |
| Add: Depreciation | 3,466 | 3,280 | 2,990 | 10,008 | 9,444 | |
| Add: Amortization of completed technology | 936 | 935 | 539 | 2,660 | 1,498 | |
| Add: Amortization of acquired intangible assets | 1,136 | 1,138 | 495 | 3,491 | 1,394 | |
| Add: Stock-based compensation | 1,979 | 3,181 | 1,595 | 6,903 | 5,211 | |
| Add: Restructuring charges | 880 | 42 | 97 | 1,125 | 557 | |
| Add: Purchase accounting impact on contracts acquired | 35 | 471 | 313 | 866 | 313 | |
| Add: Merger costs | -- | -- | -- | 221 | -- | |
| Add: In-process R&D purchased | -- | 3,026 | -- | 3,026 | -- | |
| Less: Gain on sale of contract manufacturing, pre-tax | -- | -- | (45,009) | -- | (45,009) | |
| Less: Litigation settlement | -- | -- | (664) | -- | (664) | |
| Adjusted EBITDA | $ 17,158 | $ 20,863 | $ 30,231 | $ 48,666 | $ 94,913 | |