UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 9, 2012 (February 8, 2012)
BROOKS AUTOMATION, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction
of incorporation)
0-25434 | 04-3040660 | |
(Commission File Number) |
(IRS Employer Identification No.) | |
15 Elizabeth Drive, Chelmsford, MA | 01824 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (978) 262-2400.
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
On February 9, 2012, Brooks Automation, Inc. (Brooks or the Company) announced via press release its financial results for the fiscal quarter ended December 31, 2011. A copy of the press release is attached hereto as Exhibit 99.1.
In connection with the conference call to be held by the Company on February 9, 2012 to discuss its financial results for the fiscal quarter ended December 31, 2011, the Company will reference a slide presentation, which was made available in advance of the call through the Companys website. The slide presentation is attached as Exhibit 99.2 hereto.
Limitation on Incorporation by Reference. The information in this Item 2.02 and in Item 9.01 of this Current Report, including the exhibits attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in this press release attached as an exhibit hereto, the press release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements.
Item 5.07 | Submission of Matters to a Vote of Security Holders |
The Annual Meeting of the stockholders of Brooks Automation, Inc. (the Company) was held on February 8, 2012. The stockholders elected each of the Companys nominees for director, approved an amendment to the Companys 1995 Employee Stock Purchase Plan, approved, on an advisory basis the overall compensation of the Companys executive officers, recommended, on an advisory basis, a frequency of once every year for advisory votes on executive compensation, and ratified the appointment of PricewaterhouseCoopers LLP as the Companys independent registered accounting firm for the 2012 fiscal year. The proposals below are described in detail in the Companys definitive proxy statement dated December 23, 2011. The results are as follows:
1. | Election of Directors |
For | Withhold | Broker Non-Votes | ||||||||||
A. Clinton Allen |
51,376,970 | 584,377 | 5,040,578 | |||||||||
Joseph R. Martin |
50,330,270 | 1,631,077 | 5,040,578 | |||||||||
John K. McGillicuddy |
50,039,892 | 1,921,455 | 5,040,578 | |||||||||
Krishna G. Palepu |
51,327,787 | 633,560 | 5,040,578 | |||||||||
C.S. Park |
51,320,769 | 640,578 | 5,040,578 | |||||||||
Kirk P. Pond |
51,160,485 | 800,862 | 5,040,578 | |||||||||
Stephen S. Schwartz |
51,357,434 | 603,913 | 5,040,578 | |||||||||
Alfred Woollacott, III |
51,254,973 | 706,374 | 5,040,578 | |||||||||
Mark S. Wrighton |
51,576,033 | 385,314 | 5,040,578 |
2. | Approval of Amendment to Companys 1995 Employee Stock Purchase Place to increase the number of shares available for issuance thereunder by 1,000,000 shares, from 3,000,000 to 4,000,000 |
For |
Against |
Abstain |
Broker Non-Votes | |||
51,311,041 |
456,657 | 193,649 | 5,040,578 |
3. | Approval, on an advisory basis, of the overall compensation of the Companys executive officers |
For |
Against |
Abstain |
Broker Non-Votes | |||
50,816,768 |
1,085,567 | 59,012 | 5,040,578 |
4. | Recommendation, on an advisory basis, of the frequency of advisory votes on executive compensation |
1 Year |
2 Years |
3 Years |
Abstain |
Broker Non-Votes | ||||
46,333,652 |
142,215 | 5,426,168 | 59,312 | 5,040,578 |
5. | Ratification of the selection of PricewaterhouseCoopers LLP |
For |
Against |
Abstain |
Broker Non-Votes | |||
52,952,338 |
3,915,135 | 134,452 | |
Based on these results, and consistent with the recommendation of the Companys Board of Directors, the Company intends to hold an advisory vote on executive compensation annually until the next required non-binding advisory vote on the frequency of future votes regarding executive compensation.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
99.1 | Press release issued on February 9, 2012 by Brooks Automation, Inc. | |
99.2 | Investor Conference Call Slide Presentation. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BROOKS AUTOMATION, INC. |
/s/ Jason Joseph |
Jason Joseph |
Vice President, General Counsel and Secretary |
Date: February 9, 2012
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press release issued on February 9, 2012 by Brooks Automation, Inc. | |
99.2 | Investor Conference Call Slide Presentation. |
Exhibit 99.1
Brooks Automation Reports Fiscal First Quarter Ended December 31, 2011 Results
CHELMSFORD, Mass., Feb. 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, life sciences, and clean energy, today reported preliminary financial results for the first quarter ended December 31, 2011.
Fiscal First Quarter of 2012 Financial and Operational Highlights:
| Revenues were $120.2 Million; Order Bookings increased 16.5% sequentially to $128.5 million; |
| GAAP EPS was $0.05 and EPS excluding special charges was $0.06; |
| Adjusted EBITDA was $10.8 million; |
| Cash, Cash Equivalents and Marketable Securities as of December 31st were $194.5 million, or $2.98 per diluted share with no Debt; |
| Generated 22 Design-in-Wins with OEM Customers, forging Continued Market Share Gains. |
Management Comments
After a slow start to the quarter our semiconductor equipment business recovered later in the quarter resulting in revenues and earnings at the high end of our guidance. We see this momentum accelerating in the March quarter and expect it to be a significant driver behind improving results. We are very pleased with the controllable aspects of our overall financial and operational performance during the first quarter including our integration of the Life Science Systems business which is moving ahead in-line with our expectations, stated Steve Schwartz, President & Chief Executive Officer of Brooks. We grew first quarter Life Science Systems revenue to approximately 10% of overall revenue, and we are excited about a number of new product lines we are introducing to our customers including the new Celigo® product line acquired at the end of December.
Dr. Schwartz continued, With our strong cash position, no debt and increasing cash flow as the cyclical market recovery continues, we believe that we will continue to be extremely well placed to continue our existing strong levels of reinvestment in the business as well as make prudently focused strategic acquisitions that build on our core competencies.
First Quarter of Fiscal 2012 Results
Revenues for the first quarter of fiscal 2012 were $120.2 million, compared to revenues of $131.0 million in the fourth quarter of fiscal 2011 and $178.4 million in the first quarter of fiscal 2011, which included $45.9 million from the contract manufacturing business that was sold at the end of the third quarter of 2011. Revenues for the Brooks Global Services segment decreased 7.7% on a sequential basis compared to the fiscal fourth quarter of 2011, and revenues for the Brooks Product Solutions segment declined 13.4% sequentially due to overall industry weakness.
Order bookings for the first quarter of fiscal 2012 grew 16.5% to $128.5 million, compared to order bookings in the fiscal fourth quarter of $110.3 million.
Gross profit margin was 33.6% for the first quarter of fiscal 2012, compared to gross profit margins of 35.9% for the fourth quarter of fiscal 2011 and 32.1% for the first quarter of fiscal 2011. The first quarter of fiscal 2012 margins were impacted by revenue mix, adverse absorption of fixed overhead costs during the cyclical revenue decline and a number of acquisition and integration related expenses related to Brooks Life Science Systems.
Net income for the first quarter of fiscal 2012 amounted to $3.0 million, or $0.05 per diluted share, which includes $784 thousand of special charges primarily associated with the Life Science Systems merger and acquisition activities. Adjusted Net income excluding these special charges was $3.8 million and compares to $12.1 million or $0.19 per diluted share for the fourth quarter of fiscal 2011 and $23.7 million or $0.37 per diluted share in the first quarter of fiscal 2011.
Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) for the first quarter of fiscal 2012 was $10.8 million, which compared to $17.7 million in the fourth quarter of fiscal 2011 and $29.9 million in the first quarter of fiscal 2011. 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 2012 was $5.1 million, which resulted in total cash and marketable securities of $194.5 million at December 31, 2011.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on March 30, 2012 to stockholders of record on March 9, 2012. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Companys Board of Directors.
Guidance for Second Fiscal Quarter
The Company announced revenue and earnings guidance for the second quarter of fiscal 2012. Revenues are expected to range between $132 and $140 million and GAAP earnings, including a charge associated with the acquisition of in process research & development, is expected to range between $0.09 and $0.14. Adjusted EPS excluding this charge is expected to be between $0.15 and $0.20 per diluted share.
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 Companys 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 (800) 688-0796 (US only) or (617) 614-4070 to listen to the live broadcast. The passcode for this telephone access is 633 410 70.
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 - particularly those manufacturing in Thailand - 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)
December 31, 2011 |
September 30, 2011 |
|||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 49,213 | $ | 58,833 | ||||
Restricted cash |
863 | 1,293 | ||||||
Marketable securities |
79,465 | 65,695 | ||||||
Accounts receivable, net |
73,684 | 76,701 | ||||||
Inventories, net |
102,612 | 107,654 | ||||||
Prepaid expenses and other current assets |
10,467 | 10,348 | ||||||
|
|
|
|
|||||
Total current assets |
316,304 | 320,524 | ||||||
Property, plant and equipment, net |
67,349 | 68,596 | ||||||
Long-term marketable securities |
65,826 | 81,290 | ||||||
Goodwill |
88,440 | 84,727 | ||||||
Intangible assets, net |
45,547 | 44,314 | ||||||
Equity investment in joint ventures |
35,357 | 34,612 | ||||||
Other assets |
2,981 | 2,557 | ||||||
|
|
|
|
|||||
Total assets |
$ | 621,804 | $ | 636,620 | ||||
|
|
|
|
|||||
Liabilities and equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 34,257 | $ | 40,199 | ||||
Deferred revenue |
11,980 | 14,073 | ||||||
Accrued warranty and retrofit costs |
7,293 | 7,438 | ||||||
Accrued compensation and benefits |
13,150 | 17,288 | ||||||
Accrued restructuring costs |
321 | 293 | ||||||
Accrued income taxes payable |
3,387 | 4,015 | ||||||
Accrued expenses and other current liabilities |
14,040 | 12,433 | ||||||
|
|
|
|
|||||
Total current liabilities |
84,428 | 95,739 | ||||||
Income taxes payable |
11,706 | 11,728 | ||||||
Long-term pension liability |
7,239 | 7,161 | ||||||
Other long-term liabilities |
3,677 | 3,394 | ||||||
|
|
|
|
|||||
Total liabilities |
107,050 | 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, 79,716,314 shares issued and 66,254,445 shares outstanding at December 31, 2011, 79,737,189 shares issued and 66,275,320 shares outstanding at September 30, 2011 |
797 | 797 | ||||||
Additional paid-in capital |
1,810,829 | 1,809,287 | ||||||
Accumulated other comprehensive income |
16,273 | 19,480 | ||||||
Treasury stock at cost, 13,461,869 shares at December 31, 2011 and September 30, 2011 |
(200,956 | ) | (200,956 | ) | ||||
Accumulated deficit |
(1,112,786 | ) | (1,110,599 | ) | ||||
|
|
|
|
|||||
Total Brooks Automation, Inc. stockholders equity |
514,157 | 518,009 | ||||||
Noncontrolling interest in subsidiaries |
597 | 589 | ||||||
|
|
|
|
|||||
Total equity |
514,754 | 518,598 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | 621,804 | $ | 636,620 | ||||
|
|
|
|
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three months ended December 31, |
||||||||
2011 | 2010 | |||||||
Revenues |
||||||||
Product |
$ | 97,098 | $ | 161,189 | ||||
Services |
23,130 | 17,178 | ||||||
|
|
|
|
|||||
Total revenues |
120,228 | 178,367 | ||||||
|
|
|
|
|||||
Cost of revenues |
||||||||
Product |
64,289 | 108,973 | ||||||
Services |
15,582 | 12,075 | ||||||
|
|
|
|
|||||
Total cost of revenues |
79,871 | 121,048 | ||||||
|
|
|
|
|||||
Gross profit |
40,357 | 57,319 | ||||||
|
|
|
|
|||||
Operating expenses |
||||||||
Research and development |
11,949 | 8,898 | ||||||
Selling, general and administrative |
26,742 | 24,478 | ||||||
Restructuring charges |
203 | 214 | ||||||
|
|
|
|
|||||
Total operating expenses |
38,894 | 33,590 | ||||||
|
|
|
|
|||||
Operating income |
1,463 | 23,729 | ||||||
Interest income |
279 | 275 | ||||||
Interest expense |
(7 | ) | (1 | ) | ||||
Other income, net |
346 | 161 | ||||||
|
|
|
|
|||||
Income before income taxes and equity in earnings of joint ventures |
2,081 | 24,164 | ||||||
Income tax provision |
300 | 988 | ||||||
|
|
|
|
|||||
Income before equity in earnings of joint ventures |
1,781 | 23,176 | ||||||
Equity in earnings of joint ventures |
1,225 | 310 | ||||||
|
|
|
|
|||||
Net income |
$ | 3,006 | $ | 23,486 | ||||
Net income attributable to noncontrolling interests |
(8 | ) | | |||||
|
|
|
|
|||||
Net income attributable to Brooks Automation, Inc. |
$ | 2,998 | $ | 23,486 | ||||
|
|
|
|
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Basic net income per share attributable to Brooks Automation, Inc. common stockholders |
$ | 0.05 | $ | 0.37 | ||||
|
|
|
|
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Diluted net income per share attributable to Brooks Automation, Inc. common stockholders |
$ | 0.05 | $ | 0.36 | ||||
|
|
|
|
|||||
Shares used in computing earnings per share |
||||||||
Basic |
64,812 | 64,263 | ||||||
Diluted |
65,309 | 64,475 |
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Three months
ended December 31, |
||||||||
2011 | 2010 | |||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 3,006 | $ | 23,486 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
5,268 | 4,274 | ||||||
Stock-based compensation |
1,743 | 1,209 | ||||||
Amortization of premium on marketable securities |
654 | 410 | ||||||
Undistributed earnings of joint ventures |
(1,225 | ) | (310 | ) | ||||
Gain on disposal of long-lived assets |
| (13 | ) | |||||
Changes in operating assets and liabilities, net of acquisitions and disposals: |
||||||||
Accounts receivable |
3,935 | 4,949 | ||||||
Inventories |
5,874 | (11,289 | ) | |||||
Prepaid expenses and other current assets |
(490 | ) | 2,117 | |||||
Accounts payable |
(5,910 | ) | (3,424 | ) | ||||
Deferred revenue |
(2,427 | ) | (330 | ) | ||||
Accrued warranty and retrofit costs |
(152 | ) | (314 | ) | ||||
Accrued compensation and benefits |
(4,270 | ) | (2,810 | ) | ||||
Accrued restructuring costs |
32 | (985 | ) | |||||
Accrued expenses and other |
(929 | ) | 713 | |||||
|
|
|
|
|||||
Net cash provided by operating activities |
5,109 | 17,683 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Purchases of property, plant and equipment |
(2,063 | ) | (1,638 | ) | ||||
Purchases of marketable securities |
(23,579 | ) | (38,704 | ) | ||||
Sale/maturity of marketable securities |
24,549 | 25,225 | ||||||
Acquisition, net of cash acquired |
(8,716 | ) | | |||||
Decrease in restricted cash |
430 | | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
(9,379 | ) | (15,117 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Common stock dividend paid |
(5,185 | ) | | |||||
|
|
|
|
|||||
Net cash used in financing activities |
(5,185 | ) | | |||||
|
|
|
|
|||||
Effects of exchange rate changes on cash and cash equivalents |
(165 | ) | (77 | ) | ||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
(9,620 | ) | 2,489 | |||||
Cash and cash equivalents, beginning of period |
58,833 | 59,823 | ||||||
|
|
|
|
|||||
Cash and cash equivalents, end of period |
$ | 49,213 | $ | 62,312 | ||||
|
|
|
|
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 | ||||||||||||||||||||||||
December 31, 2011 | September 30, 2011 | December 31, 2010 | ||||||||||||||||||||||
$ | per share | $ | per share | $ | per share | |||||||||||||||||||
Net income (loss) attributable to Brooks Automation, Inc. |
$ | 2,998 | $ | 0.05 | $ | 12,098 | $ | 0.19 | $ | 23,486 | $ | 0.36 | ||||||||||||
Purchase accounting impact on contracts acquired |
360 | 0.01 | 957 | 0.01 | | | ||||||||||||||||||
Restructuring charges |
203 | 0.00 | 479 | 0.01 | 214 | 0.00 | ||||||||||||||||||
Merger costs |
221 | 0.00 | 719 | 0.01 | | | ||||||||||||||||||
Inventory charges recorded for acquisitions |
| | 625 | 0.01 | | | ||||||||||||||||||
One-time tax benefit |
| | (2,758 | ) | (0.04 | ) | | | ||||||||||||||||
|
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|
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|
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|
|
|||||||||||||
Adjusted net income (loss) attributable to Brooks Automation, Inc. |
3,782 | 0.06 | 12,120 | 0.19 | 23,700 | 0.37 | ||||||||||||||||||
Stock-based compensation |
1,734 | 0.03 | 1,541 | 0.02 | 1,209 | 0.02 | ||||||||||||||||||
|
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|
|
|
|
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|
|||||||||||||
Adjusted net income attributable to Brooks Automation, Inc., excluding stock-based compensation |
$ | 5,516 | $ | 0.08 | $ | 13,661 | $ | 0.21 | $ | 24,909 | $ | 0.39 | ||||||||||||
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Quarter ended | ||||||||||||
Dec 31, 2011 |
Sept 30, 2011 |
Dec 31, 2010 |
||||||||||
Net income (loss) attributable to Brooks Automation, Inc. |
$ | 2,998 | $ | 12,098 | $ | 23,486 | ||||||
Less: Interest income |
(279 | ) | (267 | ) | (275 | ) | ||||||
Add: Interest expense |
7 | 26 | 1 | |||||||||
Add: Income tax provision (benefit) |
300 | (3,369 | ) | 988 | ||||||||
Add: Depreciation |
3,262 | 3,177 | 3,345 | |||||||||
Add: Amortization of completed technology |
789 | 718 | 479 | |||||||||
Add; Amortization of acquired intangible assets |
1,217 | 1,018 | 450 | |||||||||
Add: Stock-based compensation |
1,743 | 1,541 | 1,209 | |||||||||
Add: Restructuring charges |
203 | 479 | 214 | |||||||||
Add: Merger costs |
221 | 719 | | |||||||||
Add: Purchase accounting impact on contracts acquired |
360 | 957 | | |||||||||
Add: Inventory charges recorded for acquisitions |
| 625 | | |||||||||
|
|
|
|
|
|
|||||||
Adjusted EBITDA |
$ | 10,821 | $ | 17,722 | $ | 29,897 | ||||||
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CONTACT:
Barbara Culhane
Brooks Automation, Inc.
Corporate Marketing Manager
978-262-2400
barbara.culhane@brooks.com
John Mills
Senior Managing Director
ICR, LLC
310-954-1105
john.mills@icrinc.com
Exhibit 99.2
|
Exhibit 99.2
1st Quarter Fiscal 2012 Financial Results Conference Call
February 9, 2012
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information
1
|
Safe Harbor Statement
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to materially differ, either better or worse, from those projected. Further discussions of risk factors are available in the Companys most recent SEC filings including form 10-K for the fiscal year ended 9/30/11. The Company assumes no obligation to update the information in this presentation.
Regulation G
This presentation contains certain non-GAAP measures which are provided to assist in an understanding of the Brooks business and its operational performance. These measures should always be considered in conjunction with the appropriate GAAP measure. Reconciliations of all non-GAAP amounts to the relevant GAAP amount are provided in either an attachment to our first quarter financial results press release issued on February 9, 2012 or as an attachment to call slides used to accompany prepared comments made during our financial results conference call of the same date. Both documents are available on our web site at www.brooks.com.
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 2
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Significant Events in the December Quarter
Full quarter of Nexus BioSystems acquisition compared to 2 months reflected in September quarter
Balance sheet includes Celigo product line acquisition that closed on December 30, 2011
Significant slow down in Semiconductor activity early in the quarter with a strong rebound in the last few weeks of the quarter
Industrial capital spend reductions with largest declines for Polycold mixed gas cryo chillers
Effective tax rate fluctuating from quarter to quarter
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 3
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Revenue and Operating Profits Waterfall
Revenues Operating Profit
$ millions before Special Charges
4th Quarter Fiscal 2011 $ 131.0 $ 9.7
Brooks Life Science Systems 4.3 1.6
Brooks Product Solutions ( 13.2) ( 7.4)
Brooks Global Services ( 1.8) ( 1.3)
Amortization increase in SG&A ( 0.2)
1st Quarter Fiscal 2012 $ 120.2 $ 2.3
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 4
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Fixed Cost Absorption and Mix Impact Margins
$ millions Q4FY11 Q1FY12 Change
Revenues $ 131.0 $ 120.2 $ ( 10.8)
Gross Profit, (excluding acquisition accounting)* 48.6 40.7 (7.9)
Gross Margin % 37.1% 33.9%3.2%
Research & development 11.5 11.9 (0.4)
Selling, general & administrative 27.4 26.5 0.9
Operating Income (before special charges)* $ 9.7 $ 2.3 $ (7.4)
* Non GAAP measure See www.brooks.com for reconciliation to the appropriate GAAP measure
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 5
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Income Taxes impact Special Charges
$ millions Q4FY11 Q1FY12 Change
Revenues $ 131.0 $ 120.2 $ ( 10.8)
Operating profit (before special charges)* 9.7 2.3 ( 7.4)
Special charges* 0.0 ( 0.8) ( 0.8)
Other items 0.7 0.6 ( 0.1)
Income tax benefit (provision), 0.6 ( 0.3) ( 0.9)
excluding non-recurring items*
Minorities & joint venture earnings 1.1 1.2 0.1
Net Income Attributable to Brooks $ 12.1 $ 3.0 $ (9.1)
GAAP DEPS $ 0.19 $ 0.05 $(0.14)
Adjusted DEPS * $ 0.19 $ 0.06 $(0.13)
* Non GAAP measure See www.brooks.com for reconciliation to the appropriate GAAP measure
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 6
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Cash and Cash flow
$ millions FY12 Q1
Adjusted EBITDA * $ 10.8
Working Capital movements (4.3)
Restructuring & undistributed joint venture earnings ( 1.4)
Cash Flow from Operations 5.1 Capital expenditures ( 2.1) Dividends ( 5.2) Celigo acquisition ( 8.7) Other ( 0.4)
Net Change in Cash and Marketable securities ( 11.3)
Cash and Marketable securities at December 31 $ 194.5
* Non GAAP measure See www.brooks.com for reconciliation to the appropriate GAAP measure
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 7
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Diversification and Dilution of Customer Exposures
FY11 Q1 FY12 Q1
# of >10% Customers 2 1
% of Business to Top
47% 25%
3 Customers
9% 11%
11% 51%
18%
FY12Q1
Semi front end products
BGS
Industrial
Life Sciences
Other adjacencies
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 8
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Brooks Life Science Systems
Reconciliation of GAAP to underlying performance
Q1FY12 Adjust- Q1FY12
$ millions Comments
GAAP ments Non-GAAP
Adjustment for fair value
Revenues $ 12.8 $ 0.5 $ 13.3 accounting on contracts
acquired
Gross Profit 4.8 0.4 5.2 39% underlying gross margin
Increased R&D with
Operating 5.5 0.0 5.5 integration savings offsetting
Expenses full quarter effect for SG&A
Segment $( 0.6) $( 0.3)
Operating Loss
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 9
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Brooks Product Solutions Sequential Performance
Comments on
$ millions Q4FY11 Q1FY12
Sequential Trends
Industrial product revenues
Revenues $ 98.5 $ 85.3 down $10 million
Margin of 33.3% impacted by
Gross Profit 36.7 28.4 absorption and mix
Operating Expenses 28.7 27.3
Segment Operating
Income $ 8.0 $ 1.1 1.3% operating margin
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 10
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Brooks Global Services Sequential Performance
Comments on $ millions Q4FY11 Q1FY12 Sequential Trends
Revenues $ 23.9 $ 22.1 Decline in spare part demand
Spares mix and favorable Gross Profit 8.7 7.1 materials cost in Sept quarter
Operating Expenses 4.5 4.2
Segment Operating $ 4.2 $ 2.9 13.3% operating margin Income
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 11
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Revenue, Margin & Earnings Guidance
$ millions Q1FY11 Q2FY12 Comments on Sequential Trends
Front End Semiconductor equipment
recovery. Continued growth in Life
Revenues $ 120.2 $132.0$140.0 Science Systems business.
$3.5 million reduction in expenses
Adjusted Diluted from recovery of previously expensed
$ 0.06 $ 0.15$0.20
Earnings Per Share* legal costs and $1.2 million income
tax benefit
$3.0 million in-process R&D charge
GAAP Diluted from IP acquisition. Small
$ 0.05 $ 0.09$0.14
Earnings Per Share acquisition accounting adjustments
for Life Science Systems
* Non GAAP measure. See www.brooks.com for reconciliation of historical measure to GAAP measure
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 12
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1st Quarter Fiscal 2012 Financial Results Conference Call
February 9, 2012
© Copyright 2012 by Brooks Automation, Inc. Proprietary Information 13
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GAAP to Non-GAAP Reconciliation Q4 FY11 vs. Q1 FY12
GAAP non-GAAP GAAP non-GAAP
in millions Q4 FY11 Adjust Q4 FY11 Q1 FY12 Adjust Q1 FY12
Revenues $ 131.0 $$ 131.0 $ 120.2 $$ 120.2
Cost of revenues 84.0 (1.6) 82.4 79.9 (0.4) 79.5
Gross profit 47.0 1.6 48.6 40.3 0.4 40.7
Operating expense:
Research & development 11.5 11.5 11.9 11.9
Selling, general & administrative 28.1 (0.7) 27.4 26.7 (0.2) 26.5
Restructuring 0.5 (0.5)0.2 (0.2) -
40.1 (1.2) 38.9 38.8 (0.4) 38.4
Operating profit (loss) 6.9 2.8 9.7 1.5 0.8 2.3
Interest income, net 0.3 0.3 0.3 0.3
Sale of contract manufacturing business -
Other, net 0.4 0.4 0.3 0.3
Income before taxes, joint ventures and minority interest 7.6 2.8 10.4 2.1 0.8 2.9
Income tax provision (3.4) 2.8 (0.6) 0.3 0.3
Net income before joint ventures and minority interest 11.0 11.0 1.8 0.8 2.6
Joint venture income (losses) 1.1 1.1 1.2 1.2
Net income 12.1 12.1 3.0 0.8 3.8
Net (income) loss attributable to minority interests (0.0) (0.0) (0.0) (0.0)
Net income (loss) attributable to Brooks $ 12.1 $$ 12.1 $ 3.0 $ 0.8 $ 3.8
Basic earnings per share attributable to Brooks $ 0.19 $$ 0.19 $ 0.05 $ 0.01 $ 0.06
Diluted earnings per share attributable to Brooks $ 0.19 $$ 0.19 $ 0.05 $ 0.01 $ 0.06
Basic shares for EPS 64,750 64,750 64,750 64,812 64,812 64,812
Diluted shares for EPS 65,118 65,118 65,118 65,309 65,309 65,309
Adjustments
Cost of revenues
Purchasing accounting adjustments to sales contracts $ (1.0) $ (0.4)
Inventory charges recorded for acquisitions (0.6)
$ (1.6) $ (0.4)
Operating expense:
Merger costs $ (0.7) $ (0.2)
Restructuring (0.5) (0.2)
$ (1.2) $ (0.4)
Income tax provision
One-time benefit from uncertain tax positions $ 2.8 $
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