Brooks Automation Reports Fiscal First Quarter Ended December 31, 2012 Results and Timetable for Chief Financial Officer Retirement CHELMSFORD, Mass., Jan. 31, 2013 (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 first quarter ended December 31, 2012. Fiscal First Quarter 2013 Financial and Operational Highlights: *Revenues were $98.0 Million; Order Bookings were $92.6 million; *Life Sciences revenues increased 10% on a year-over-year basis; *GAAP Loss Per Share was $(0.14); Adjusted Loss Per Share excluding special charges was $(0.06); *Cash flow from operations was $5.1 million; *Cash, Cash Equivalents and Marketable Securities, as of December 31, was $142 million, or $2.17 per diluted share with no Debt; *Generated 21 Design-in-Wins for Semiconductor and Adjacent market customers. Summary of GAAP and Non-GAAP Earnings Fiscal 2013 Fiscal 2012 Fiscal 2012 $000's except EPS 1st Quarter 4th Quarter 1st Quarter GAAP Net Income (Loss) attributable to $(9,236) $116,217 $2,823 Brooks GAAP Diluted Earnings (Loss) per share $(0.14) $1.77 $0.04 Adjusted Net Income (Loss) attributable to $(3,842) $5,496 $3,607 Brooks Adjusted Diluted Earnings (Loss) per Share $(0.06) $0.08 $0.06 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 "Consistent with our outlook for the quarter, we experienced a 20% sequential decline in product revenues for front-end semiconductor applications and a 31% sequential decline in revenues into our industrial customers as caution and uncertainty drove weak demand across almost all market sectors we serve.However, our Life Science Systems business increased on both a sequential and year-over-year basis as we continue to win the majority of the market share opportunities for automated sample management systems," said Steve Schwartz, President and Chief Executive Officer of Brooks. "The integration of Crossing Automationinto Brooks is moving ahead effectively and quickly.We are ahead of our aggressive schedule to drive annualized integration synergies of $12 million within the first five quarters of ownership. We are also pleased with the opportunities already opening up for revenue growth in atmospheric automation from developments using both Brooks and Crossing technologies." Dr. Schwartz continued, "We see modest improvement in most of our markets in the March 2013 quarter.While near term visibility is limited, we view favorably the capital expenditure plans of end users for our products and consequently expect a far stronger second half to our current fiscal year." First Quarter Fiscal 2013 Results Revenues for the first quarter of fiscal 2013 were $98.0 million, compared to revenues of $119.5 million in the fourth quarter of fiscal 2012 and $120.2 million in the first quarter of fiscal 2012. The revenues for the first quarter of fiscal 2013 included $6.5 million of product sales and $2.0 million of service sales from the acquisition of Crossing Automation that closed one month into the quarter. Revenues for the Brooks Global Services segment increased 0.3% on a sequential basis compared to the fiscal fourth quarter of 2012 with the addition of Crossing service revenues.Revenues for the Brooks Product Solutions segment declined 26% sequentially due to overall industry weakness. Revenues for the Brooks Life Science Systems segment grew sequentially to $14.1 million compared to the fourth quarter of 2012 at $13.9 million and grew 10% on a year-over-year basis. Order bookings for the first quarter of fiscal 2013 declined sequentially 5% to $92.6 million, compared to order bookings in the fiscal fourth quarter 2012 of $97.5 million. Gross profit margin was 29.7% for the first quarter of fiscal 2013, compared to gross profit margins of 32.3% for the fourth quarter of fiscal 2012 and 33.6% for the first quarter of fiscal 2012.Excluding acquisition related nonrecurring charges, gross profit margin was 31.9% for the first quarter of fiscal 2013, compared to gross profit margins of 32.3% for the fourth quarter of fiscal 2012 and 33.9% for the first quarter of fiscal 2012. The first quarter of fiscal 2013 sequential margin improvements in Services and Life Sciences were offset by a decrease in Product Solutions margins off lower revenue volumes. Adjusted EBITDA (as defined in the Notes on non-GAAP measures) for the first quarter of fiscal 2013 was $3.3 million, which compared to $10.2 million in the fourth quarter of fiscal 2012 and $10.6 million in the first quarter of fiscal 2012. 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 2013 was $5.1 million, which resulted in total cash, cash equivalents and marketable securities of $142 million at December 31, 2012. Quarterly Cash Dividend The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on March 29, 2013 to stockholders of record on March 8, 2013. 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 Second Fiscal Quarter The Company announced revenue and earnings guidance for the second quarter of fiscal 2013.Revenues are expected to range between $102 and $110 million and non-GAAP earnings per share are expected to range between breakeven and a loss of $(0.05).Including restructuring and acquisition related charges, GAAP adjusted loss per share is expected to be between $(0.03) and $(0.10) per diluted share. Retirement of Chief Financial Officer The Company announced that Martin S. Headley, Executive Vice President and Chief Financial Officer has given notice of his intention to retire.The Company and Mr. Headley have agreed in principle to the terms of a retention agreement pursuant to which he would remain in his role through the end of June 2013.The Company will be initiating a search and expects to be able to name a successor within this timeframe. "It has been my distinct pleasure to have worked closely with Martin over the past three years," states Dr. Schwartz."Martin's extensive financial experience and strategic insight have made him an outstanding partner and business leader as we repositioned the Company.We will miss his leadership and guidance but wish him the best in his retirement." "My tenure at Brooks has afforded an opportunity to work with many outstanding people and address unique business challenges and I am extremely proud of what we have accomplished at Brooks over my five plus years as CFO," stated Mr. Headley."As I have been considering my future plans over the last several weeks, I have worked closely with Steve and our Board to ensure that we will have a smooth transition." 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 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 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 1-800-734-8583 (North America only) or 1-212-231-2930 to listen to the live broadcast. 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) December31, September30, 2012 2012 Assets Current assets Cash and cash equivalents $54,923 $54,639 Restricted cash 768 763 Marketable securities 48,070 85,646 Accounts receivable, net 63,832 78,855 Inventories 105,123 102,985 Deferred tax assets 18,134 15,531 Prepaid expenses and other current assets 9,879 9,070 Total current assets 300,729 347,489 Property, plant and equipment, net 65,006 64,478 Long-term marketable securities 38,996 59,946 Long-term deferred tax assets 101,135 104,626 Goodwill 114,043 88,440 Intangible assets, net 67,439 39,400 Equity investment in joint ventures 30,437 31,428 Other assets 7,044 6,153 Total assets $724,829 $741,960 Liabilities and equity Current liabilities Accounts payable $21,199 $28,988 Deferred revenue 8,927 9,986 Accrued warranty and retrofit costs 7,724 7,329 Accrued compensation and benefits 13,425 14,118 Accrued restructuring costs 4,793 2,098 Accrued income taxes payable 891 1,699 Accrued expenses and other current liabilities 17,248 16,973 Total current liabilities 74,207 81,191 Income taxes payable 8,065 6,356 Long-term pension liability 1,415 1,688 Other long-term liabilities 3,853 3,424 Total liabilities 87,540 92,659 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, 79,807,305 shares issued and 66,345,436 shares outstanding at December31, 2012, 79,790,557 798 798 shares issued and 66,328,688 shares outstanding at September30, 2012 Additional paid-in capital 1,819,402 1,817,706 Accumulated other comprehensive income 24,420 23,642 Treasury stock at cost, 13,461,869 shares at (200,956) (200,956) December31, 2012 and September30, 2012 Accumulated deficit (1,007,027) (992,524) Total Brooks Automation, Inc. stockholders' equity 636,637 648,666 Noncontrolling interest in subsidiaries 652 635 Total equity 637,289 649,301 Total liabilities and equity $724,829 $741,960 BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) Three months ended December31, 2012 2011 Revenues Product $77,323 $97,098 Services 20,702 23,130 Total revenues 98,025 120,228 Cost of revenues Product 54,481 64,289 Services 14,386 15,582 Total cost of revenues 68,867 79,871 Gross profit 29,158 40,357 Operating expenses Research and development 11,518 11,949 Selling, general and administrative 25,947 26,742 Restructuring and other charges 4,757 203 Total operating expenses 42,222 38,894 Operating income (loss) (13,064) 1,463 Interest income 275 279 Interest expense (1) (7) Other income (expense), net (93) 346 Income (loss) before income taxes and equity in earnings (12,883) 2,081 (losses) of joint ventures Income tax provision (benefit) (3,670) 300 Income (loss) before equity in earnings (losses) of joint (9,213) 1,781 ventures Equity in earnings (losses) of joint ventures (6) 1,050 Net income (loss) ($9,219) $2,831 Net income attributable to noncontrolling interests (17) (8) Net income (loss) attributable to Brooks Automation, Inc. ($9,236) $2,823 Basic net income (loss) per share attributable to Brooks ($0.14) $0.04 Automation, Inc. common stockholders Diluted net income (loss) per share attributable to Brooks ($0.14) $0.04 Automation, Inc. common stockholders Shares used in computing earnings (loss) per share Basic 65,567 64,812 Diluted 65,567 65,309 BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) Three months ended December31, 2012 2011 Cash flows from operating activities Net income (loss) ($9,219) $2,831 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 6,441 5,268 Stock-based compensation 2,511 1,743 Amortization of premium on marketable securities 370 654 Undistributed earnings (losses) of joint ventures 6 (1,050) Deferred income tax benefit (4,310) — Pension settlement 87 — Loss on disposal of long-lived assets 13 — Changes in operating assets and liabilities, net of acquisitions and disposals: Accounts receivable 20,216 3,935 Inventories 6,841 5,874 Prepaid expenses and other current assets 317 (490) Accounts payable (10,793) (5,910) Deferred revenue (1,340) (2,427) Accrued warranty and retrofit costs (1,127) (152) Accrued compensation and benefits (4,054) (4,270) Accrued restructuring costs 2,390 32 Accrued expenses and other current liabilities (3,237) (929) Net cash provided by operating activities 5,112 5,109 Cash flows from investing activities Purchases of property, plant and equipment (641) (2,063) Purchases of marketable securities (18,168) (23,579) Sale/maturity of marketable securities 75,622 24,549 Acquisition, net of cash acquired (56,033) (8,716) Payment of deferred leasing cost (686) — (Increase) decrease in restricted cash — 430 Net cash provided by (used in) investing activities 94 (9,379) Cash flows from financing activities Common stock dividend paid (5,311) (5,185) Net cash used in financing activities (5,311) (5,185) Effects of exchange rate changes on cash and cash 389 (165) equivalents Net increase (decrease) in cash and cash equivalents 284 (9,620) Cash and cash equivalents, beginning of period 54,639 58,833 Cash and cash equivalents, end of period $54,923 $49,213 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 (loss) and diluted earnings (loss) per share from operations is presented below. Quarter ended December 31, 2012 September 30, 2012 December 31, 2011 $ per share $ per $ per share share Net income (loss) attributable to $(9,236) $(0.14) $116,217 $1.77 $2,823 $0.04 Brooks Automation, Inc. Adjustments, net of tax: Purchase accounting impact on inventory 1,513 0.02 -- -- 360 0.01 and contracts acquired Restructuring 3,425 0.05 2,150 0.03 203 0.00 charges Pension settlement -- -- 8,937 0.14 -- -- Merger costs 456 0.01 -- -- 221 0.00 One-time tax -- -- (121,808) (1.85) -- -- benefit Adjusted net income (loss) attributable (3,842) (0.06) 5,496 0.08 3,607 0.06 to Brooks Automation, Inc. Stock-based 2,511 0.04 1,744 0.03 1,743 0.03 compensation Adjusted net income (loss) attributable to Brooks Automation, Inc. - $(1,331) $(0.02) $7,240 $0.11 $5,350 $0.08 excluding stock-based compensation Quarter ended December 31, 2012 September 30, 2012 December 31, 2011 $ % $ % $ % Gross profit / gross margin $29,158 29.7% $ 38,607 32.3% $40,357 33.6% percentage Adjustments: Purchase accounting impact on inventory 2,102 2.1% -- -- 360 0.3% and contracts acquired Adjusted gross profit / gross $31,260 31.9% $38,607 32.3% $40,717 33.9% margin percentage Quarter ended Dec 31, Sep 30, Dec 31, 2012 2012 2011 Net income (loss) attributable to $(9,236) $116,217 $2,823 Brooks Automation, Inc. Less: Interest (275) (369) (279) income Add: Interest 1 2 7 expense Add: Income tax (3,670) (123,908) 300 provision (benefit) Add: Depreciation 3,704 3,399 3,262 Add: Amortization of completed 1,185 935 789 technology Add: Amortization of acquired 1,552 1,127 1,217 intangible assets Add: Stock-based 2,511 1,744 1,743 compensation Add: Restructuring 4,757 2,150 203 charges Add: Purchase accounting impact 2,102 -- 360 on inventory and contracts acquired Add: Merger costs 634 -- 221 Add: Pension -- 8,937 -- settlement Adjusted EBITDA $3,265 $10,234 $10,646 CONTACT: Lynne Yassemedis Brooks Automation, Inc. 978-262-4443 firstname.lastname@example.org John Mills Senior Managing Director ICR, LLC 310-954-1105 email@example.com
Brooks Automation Reports Fiscal First Quarter Ended December 31, 2012 Results and Timetable for Chief Financial Officer
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