CABOT MICROELECTRONICS CORPORATION
|
|||||||||||||||||||
PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
|
|||||||||||||||||||
FOR THE YEAR ENDED SEPTEMBER 30, 2015
|
|||||||||||||||||||
(in thousands, except per share amounts)
|
|||||||||||||||||||
Historical
|
|||||||||||||||||||
Cabot
|
Pro Forma
|
Pro Forma
|
|||||||||||||||||
Microelectronics
|
NexPlanar
|
Adjustments
|
Note 4
|
Combined
|
|||||||||||||||
Revenue
|
$
|
414,097
|
$
|
23,228
|
$
|
437,325
|
|||||||||||||
Cost of goods sold
|
201,866
|
15,210
|
4,571
|
a)
|
|
221,647
|
|||||||||||||
Gross profit
|
212,231
|
8,018
|
(4,571
|
)
|
215,678
|
||||||||||||||
Operating expenses:
|
|||||||||||||||||||
Research, development and technical
|
59,778
|
2,964
|
|
|
|
62,742
|
|||||||||||||
Selling and marketing
|
24,983
|
4,839
|
1,870
|
a)
|
|
31,692
|
|||||||||||||
General and administrative
|
52,430
|
4,080
|
(526
|
)
|
b)
|
|
55,984
|
||||||||||||
Total operating expenses
|
137,191
|
11,883
|
1,344
|
150,418
|
|||||||||||||||
Operating income
|
75,040
|
(3,865
|
)
|
(5,915
|
)
|
65,260
|
|||||||||||||
Interest expense
|
4,524
|
595
|
(595
|
)
|
c)
|
|
4,524
|
||||||||||||
Other income (expense), net
|
681
|
0
|
681
|
||||||||||||||||
Income (loss) before income taxes
|
71,197
|
(4,460
|
)
|
(5,320
|
)
|
61,417
|
|||||||||||||
Provision (benefit) for income taxes
|
15,051
|
(4
|
)
|
(1,862
|
)
|
d)
|
|
13,185
|
|||||||||||
Net income
|
$
|
56,146
|
$
|
(4,456
|
)
|
$
|
(3,458
|
)
|
$
|
48,232
|
|||||||||
Basic earnings per share
|
$
|
2.32
|
$
|
1.99
|
|||||||||||||||
Weighted-average basic shares outstanding
|
24,040
|
24,040
|
|||||||||||||||||
Diluted earnings per share
|
$
|
2.26
|
$
|
1.94
|
|||||||||||||||
Weighted-average diluted shares outstanding
|
24,632
|
24,632
|
|||||||||||||||||
See accompanying notes to the unaudited pro forma condensed combined financial information
|
CABOT MICROELECTRONICS CORPORATION
|
|||||||||||||||||||
PRO FORMA CONDENSED COMBINED BALANCE SHEET
|
|||||||||||||||||||
SEPTEMBER 30, 2015
|
|||||||||||||||||||
(in thousands)
|
|||||||||||||||||||
Historical
|
|||||||||||||||||||
Cabot
|
Pro Forma
|
Pro Forma
|
|||||||||||||||||
Microelectronics
|
NexPlanar
|
Adjustments
|
Note 4
|
Combined
|
|||||||||||||||
ASSETS
|
|||||||||||||||||||
Current assets:
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
354,190
|
$
|
16,334
|
$
|
(142,321
|
)
|
e)
|
|
$
|
228,203
|
||||||||
Accounts receivable, less allowance for doubtful accounts
|
49,405
|
2,889
|
52,294
|
||||||||||||||||
Inventories
|
70,678
|
2,083
|
403
|
f)
|
|
73,164
|
|||||||||||||
Prepaid expenses and other current assets
|
12,840
|
1,712
|
14,552
|
||||||||||||||||
Deferred income taxes
|
7,395
|
0
|
7,395
|
||||||||||||||||
Total current assets
|
494,508
|
23,018
|
(141,918
|
)
|
375,608
|
||||||||||||||
Property, plant and equipment, net
|
93,743
|
4,714
|
242
|
g)
|
|
98,699
|
|||||||||||||
Goodwill
|
40,442
|
0
|
59,626
|
h)
|
|
100,068
|
|||||||||||||
Other intangible assets, net
|
4,565
|
0
|
61,000
|
i)
|
|
65,565
|
|||||||||||||
Deferred income taxes
|
12,212
|
0
|
17,200
|
j)
|
|
29,412
|
|||||||||||||
Other long-term assets
|
15,004
|
60
|
15,064
|
||||||||||||||||
Total assets
|
$
|
660,474
|
$
|
27,792
|
$
|
(3,850
|
)
|
$
|
684,416
|
||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
Current liabilities:
|
|||||||||||||||||||
Accounts payable
|
$
|
15,448
|
$
|
962
|
$
|
16,410
|
|||||||||||||
Current portion of long-term debt
|
8,750
|
0
|
8,750
|
||||||||||||||||
Accrued expenses, income taxes payable and other current liabilities
|
36,446
|
1,960
|
|
38,406
|
|||||||||||||||
Total current liabilities
|
60,644
|
2,922
|
0
|
63,566
|
|||||||||||||||
Long-term debt, net of current portion
|
155,313
|
0
|
155,313
|
||||||||||||||||
Deferred income taxes
|
76
|
0
|
21,400
|
j)
|
|
21,476
|
|||||||||||||
Other long-term liabilities
|
15,477
|
225
|
15,702
|
||||||||||||||||
Total liabilities
|
231,510
|
3,147
|
21,400
|
256,057
|
|||||||||||||||
Commitments and contingencies
|
|||||||||||||||||||
Stockholders' equity:
|
|||||||||||||||||||
Common stock
|
33
|
0
|
33
|
||||||||||||||||
Preferred stock
|
0
|
1,860
|
(1,860
|
)
|
k)
|
|
|||||||||||||
Capital in excess of par value of common stock
|
495,673
|
76,367
|
(76,367
|
)
|
k)
|
|
495,673
|
||||||||||||
Retained earnings
|
284,088
|
(53,582
|
)
|
52,977
|
k)
|
|
283,483
|
||||||||||||
Accumulated other comprehensive loss
|
(6,090
|
)
|
0
|
(6,090
|
)
|
||||||||||||||
Treasury stock at cost
|
(344,740
|
)
|
0
|
(344,740
|
)
|
||||||||||||||
Total stockholders' equity
|
428,964
|
24,645
|
(25,250
|
)
|
428,359
|
||||||||||||||
Total liabilities and stockholders' equity
|
$
|
660,474
|
$
|
27,792
|
$
|
(3,850
|
)
|
$
|
684,416
|
||||||||||
See accompanying notes to the unaudited pro forma condensed combined financial information
|
NexPlanar Corporation
|
Nine Months
|
Three Months
|
Year
|
|||||||||
Unaudited Statements of Operations
|
Ended
|
Ended
|
Ended
|
|||||||||
(in thousands)
|
9/30/15
|
12/31/14
|
9/30/15
|
|||||||||
Revenue, net
|
$
|
12,106
|
$
|
3,900
|
$
|
16,006
|
||||||
Revenue - related party, net
|
5,487
|
1,735
|
7,222
|
|||||||||
Net revenue
|
17,593
|
5,635
|
23,228
|
|||||||||
Cost of goods sold
|
11,715
|
3,495
|
15,210
|
|||||||||
Gross margin
|
5,878
|
2,140
|
8,018
|
|||||||||
Research and development
|
2,302
|
662
|
2,964
|
|||||||||
Selling and marketing
|
3,444
|
1,395
|
4,839
|
|||||||||
General and administrative
|
3,159
|
921
|
4,080
|
|||||||||
Operating loss
|
(3,027
|
)
|
(838
|
)
|
(3,865
|
)
|
||||||
Interest and other expense, net
|
444
|
151
|
595
|
|||||||||
Loss before income taxes
|
(3,471
|
)
|
(989
|
)
|
(4,460
|
)
|
||||||
Provision (benefit) for income taxes
|
0
|
(4
|
)
|
(4
|
)
|
|||||||
Net loss
|
$
|
(3,471
|
)
|
$
|
(985
|
)
|
$
|
(4,456
|
)
|
Total purchase consideration
|
$
|
141,716
|
Cash
|
$
|
16,334
|
||
Accounts receivable
|
2,889
|
|||
Inventories
|
2,486
|
|||
Prepaid expenses and other current assets
|
1,712
|
|||
Property, plant and equipment
|
4,956
|
|||
Other long-term assets
|
60
|
|||
Intangible assets
|
61,000
|
|||
Deferred tax assets
|
17,200
|
|||
Accounts payable
|
(962
|
)
|
||
Accrued expenses and other current liabilities
|
(1,960
|
)
|
||
Other long-term liabilities
|
(225
|
)
|
||
Deferred tax liabilities
|
(21,400
|
)
|
||
Total identifiable net assets
|
82,090
|
|||
Goodwill
|
59,626
|
|||
$
|
141,716
|
|||
Financial Statement Line Item
|
Historical NexPlanar Amount
|
Reclassification Adjustment
|
Revised Historical NexPlanar Amount
|
|||||||||
Statement of Operations year ended September 30, 2015
|
||||||||||||
Revenue, net
|
$
|
16,006
|
$
|
(16,006
|
)
|
$
|
-
|
|||||
Revenue - related parties, net
|
7,222
|
(7,222
|
)
|
-
|
||||||||
Revenue
|
-
|
23,228
|
23,228
|
|||||||||
Interest and other expense, net
|
595
|
(595
|
)
|
-
|
||||||||
Interest expense
|
-
|
595
|
595
|
|||||||||
Balance Sheet as of September 30, 2015
|
||||||||||||
Accounts receivable
|
2,452
|
(2,452
|
)
|
-
|
||||||||
Accounts receivable - related parties
|
437
|
(437
|
)
|
-
|
||||||||
Accounts receivable, less allowance for doubtful accounts
|
-
|
2,889
|
2,889
|
|||||||||
Accrued payroll and related benefits
|
1,063
|
(1,063
|
) |
-
|
||||||||
Other accrued expenses
|
844
|
(844
|
)
|
-
|
||||||||
Short-term portion of other long-term liabilities
|
53
|
(53
|
)
|
-
|
||||||||
Accrued expenses, income taxes payable and other current liabilities
|
-
|
1,960
|
1,960
|
|||||||||
Preferred stock series F
|
1
|
(1
|
)
|
-
|
||||||||
Preferred stock series E
|
1
|
(1
|
)
|
-
|
||||||||
Preferred stock series E warrants
|
182
|
(182
|
)
|
-
|
||||||||
Preferred stock series D-X and D-1X
|
1
|
(1
|
)
|
-
|
||||||||
Preferred stock series D warrants
|
124
|
(124
|
)
|
-
|
||||||||
Preferred stock series C-X
|
2
|
(2
|
)
|
-
|
||||||||
Preferred stock series C warrants
|
1,549
|
(1,549
|
)
|
-
|
||||||||
Preferred stock
|
-
|
1,860
|
1,860
|
|||||||||
Additional paid-in capital
|
76,367
|
(76,367
|
)
|
-
|
||||||||
Capital in excess of par value of common stock
|
-
|
76,367
|
76,367
|
|||||||||
Accumulated deficit
|
(53,582
|
)
|
53,582
|
-
|
||||||||
Retained earnings
|
$
|
-
|
$
|
(53,582
|
)
|
$
|
(53,582
|
)
|
Year ended
|
||||
Amortization of intangible assets
|
September 30, 2015
|
|||
Cost of goods sold
|
$
|
4,571
|
||
Selling and marketing
|
1,870
|
|||
Total amortization expense
|
$
|
6,441
|
September 30,
|
||||
Cash paid
|
2015
|
|||
Cash paid for purchase consideration
|
$
|
141,716
|
||
Cash paid and charged to expense
|
605
|
|||
Total cash paid at acquisition
|
$
|
142,321
|
Preliminary
Fair Value |
Useful Life
(in years) |
Method of
Amortization |
|||||||
Trade names
|
$
|
8,000
|
7
|
Straight-line
|
|||||
Customer relationships
|
8,000
|
11
|
Straight-line
|
||||||
Developed technology - product A
|
25,000
|
7
|
Straight-line
|
||||||
Developed technology - product B
|
8,000
|
8
|
Straight-line
|
||||||
In-process technology
|
12,000
|
9
|
see note a
|
||||||
Total identifiable intangible assets
|
$
|
61,000
|
September 30,
|
||||
Deferred tax assets and liabilities
|
2015
|
|||
Non-current deferred tax assets
|
$
|
17,200
|
||
Non-current deferred tax liabilities
|
$
|
21,400
|
||
September 30,
|
||||
Equity adjustments
|
2015
|
|||
Preferred stock
|
||||
Reverse historical NexPlanar balance
|
$
|
(1,860
|
)
|
|
Capital in excess of par value of common stock
|
||||
Reverse historical NexPlanar balance
|
$
|
(76,367
|
)
|
|
Retained earnings
|
||||
Reverse historical NexPlanar balance
|
$
|
53,582
|
||
Cash paid for settlement of stock options charged to expense
|
(605
|
)
|
||
Total retained earnings adjustments
|
$
|
52,977
|