Brooks announces earning and a major acquisition:
rooks Automation Reports Fiscal Fourth Quarter of 2015 Results Ended September 30, 2015
Brooks Automation, Inc.2 hours ago GlobeNewswire
? ? ? ?
CHELMSFORD, Mass., Nov. 05, 2015 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. ( BRKS), a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, today reported financial results for the fourth quarter and full year ended September 30, 2015.
Fiscal Fourth Quarter of 2015 Financial and Operational Highlights:
Revenue was $145.8 million;GAAP Net Income was $6.6 million with diluted EPS of $0.10;Non-GAAP Net Income was $11.4 million with diluted EPS of $0.17;Total order bookings were $113.5 million;Adjusted Gross Margin improved to 37.1%;Operating cash flow was $22.3 million.
Fiscal Full Year 2015 Financial and Operational Highlights:
Revenue was $552.7 million, an increase of 14% compared to the prior fiscal year;GAAP net income was $14.2 million with diluted EPS of $0.21;Non-GAAP net income was $30.5 million with diluted EPS of $0.45;Operating cash flow was $43.7 million;Total of Cash, Cash Equivalents, and Marketable Securities, as of September 30, was $214.0 million or $3.12 per diluted share with no bank debt.
Summary of GAAP and Non-GAAP Earnings
| | Quarter Ended | | | September 30, | | June 30, | | September 30, | | Dollars in thousands, except per share data | 2015 | | 2015 | | 2014 | | GAAP net income attributable to Brooks Automation, Inc. | $ | 6,563 | | | $ | 7,681 | | | $ | 248 | | | GAAP diluted earnings per share | $ | 0.10 | | | $ | 0.11 | | | $ | 0.00 | | | | | | | | | | Non-GAAP net income attributable to Brooks Automation, Inc. | $ | 11,394 | | | $ | 10,277 | | | $ | 4,726 | | | Non-GAAP diluted earnings per share | $ | 0.17 | | | $ | 0.15 | | | $ | 0.07 | |
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.
Management Comments
“We finished the fiscal year with a strong fourth quarter led by the strength of our new products that serve the semiconductor industry. Our Contamination Control Solutions products are rapidly becoming the standard for fabs,” stated Dr. Steve Schwartz, Chief Executive Officer of Brooks. “Our improved earnings are a testament to our superior products and the improvements we have made in our cost structure. We exited the fiscal year leaner and more flexible than we started the year and better positioned to deal with the variability in the semiconductor space. With our announcement earlier today of the agreement to acquire BioStorage Technologies, we are broadening our base in the growth space of the Life Sciences market.”
GAAP Summary
Revenue increased 1% sequentially to $145.8 million in the fourth quarter of fiscal 2015, while gross margin improved 90 basis points to 36.2% and operating expense was $42.7 million, an increase of $1.6 million. Other (expense) income, net was an expense of $2.2 million in the quarter as the company reduced the value of a building held for sale by $1.9 million. The GAAP net income result was $6.6 million and diluted EPS was $0.10.
Amortization of intangibles, special charges, and one-time items are appropriately included in the GAAP summary of earnings. The impact on earnings of these items is set out in the unaudited table included with this release.
Results of Q4 Fiscal 2015 (Non-GAAP Discussion)
Non-GAAP net income was $11.4 million in the fourth fiscal quarter, resulting in non-GAAP earnings per share of $0.17. This compares to non-GAAP net income of $10.3 million and non-GAAP EPS of $0.15 in the third quarter.
As noted above, revenue for the fourth fiscal quarter of 2015 was $145.8 million, an increase of 1% compared to the third fiscal quarter of 2015. Global Services revenue increased 6% to $24.9 million on increased repair activity. Life Science Systems revenue increased 2% to $17.1 million driven by a store systems project delivered in Japan. Product Solutions revenue declined 1% to $103.8 million. The segment saw an increase in sales of contamination control solutions offset by lower sales of automation and Polycold vacuum offerings.
Adjusted gross margin, which excludes amortization, was 37.1% in the quarter, up from 36.2% in the prior quarter. The Product Solutions adjusted gross margin was 38.5% in the fourth quarter compared to 37.3% in the prior period. The gross margin improvement was primarily driven by product mix and improved cost performance in the cryogenic pump offerings. The Life Science Systems adjusted gross margin was 27.9% compared to 30.2% in the prior quarter. The Global Services adjusted gross margin was 37.5% in the fourth quarter compared to 35.6% in the prior quarter. In summary, the total adjusted gross profit increase of $1.6 million includes an increase of $1.9 million in the Product Solutions and Global Services segments on higher revenue with improved margins, and a decrease of $0.3 million from Life Science Systems segment on lower margins.
Total order bookings in the fourth quarter were $113.5 million compared to $151.7 million in the third quarter. The Life Science Systems business had $12.4 million of new orders in the fourth quarter, bringing total backlog to $40 million and 12-month backlog to $30 million. Bookings for the semiconductor business in the Product Solutions and Global Services segments totaled $101.1 million, compared to $137.9 million in the third quarter.
Non-GAAP operating expense of $39.5 million increased 2% sequentially driven primarily by increased research and development expense.
Other (expense) income, net was an expense of $0.3 million in the fourth quarter, compared to income of $0.5 million in the third quarter. Interest income, net was $0.1 million in the fourth quarter, unchanged from the prior quarter.
Adjusted EBITDA in the quarter was $20.3 million, a 2% increase compared to the third quarter. Cash flow from operations for the fourth quarter was $22.3 million, compared to $16.5 million in the third quarter. The Company's cash, cash equivalents, and marketable securities decreased $0.6 million in the fourth quarter to $214.0 million.
Fiscal Year 2015 Results (Non-GAAP Discussion)
Revenue for the full fiscal year ended September 30, 2015 was $553 million, an increase of 14% compared to revenue of $483 million in 2014. The year-over-year growth was driven by growth in Product Solutions of 20% and Life Science Systems of 8%. Global Services revenue was flat year-over-year. Non-GAAP net income increased 78% to $30.5 million, or $0.45 per diluted share in fiscal 2015 from $17.2 million or $0.25 per diluted share in 2014.
During fiscal year 2015, we invested approximately $23 million of cash for the acquisitions of FluidX and Contact including debt paydown, and returned $27 million to shareholders in the form of dividends. Operating cash flow for the fiscal year of $44 million combined with our total financing and investing activity, resulted in the year-end balance for cash and equivalents of $214 million at September 30, 2015.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on December 22, 2015 to stockholders of record on December 4, 2015. 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 First Fiscal Quarter of Fiscal 2016
The Company announced revenue and earnings guidance for the first quarter of fiscal 2016. Revenue is expected to be in the range of $110 million to $117 million. Non-GAAP diluted earnings per share is expected to be in the range of ($0.03) to $0.01.
Conference Call
What the webcast called "A perfect fit" 20 % growth in backlog for the next 3 years with similat martgins.
A high price but they are pumped 127 million for last years revenue of 40 million and next years expected to be 50 million plus synergies!
Brooks Automation Announces Agreement to Acquire BioStorage Technologies
Brooks Automation, Inc.2 hours ago GlobeNewswire
? ? ? ?
Related Quotes
BRKS11.49+1.14%
Brooks Automation, Inc.? Watchlist
11.49+0.13(1.14%)
NASDAQ4:00 PM EST
Brooks Automation Inc Earnings Call scheduled for 4:30 pm ET today
CCBN 2 hrs 14 mins ago
BROOKS AUTOMATION INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements and Exh
EDGAR Online 2 hrs 17 mins ago
More
CHELMSFORD, Mass., Nov. 05, 2015 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. ( BRKS), a leading worldwide provider of automated and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, announced today that it has entered into a definitive agreement to acquire BioStorage Technologies, Inc. BioStorage Technologies, headquartered in Indianapolis, Indiana, is a leading, global provider of comprehensive sample management programs and integrated cold chain solutions for the bioscience industry. The cash purchase price is approximately $127 million, subject to adjustments for working capital and other items at closing. The acquisition is expected to close in December upon satisfaction of customary closing conditions and regulatory approvals.
“The ability to provide comprehensive sample asset management solutions is critical for our customers as they look to drive increased efficiencies and speed to market,” stated Dr. Steve Schwartz, Chief Executive Officer, Brooks Automation, Inc. “BioStorage Technologies brings strong customer relationships and excellent organizational capability, along with market-leading outsourced service solutions that enable customers to focus on their core business activities. This merger allows us access to a much broader customer base that is storing samples at ultracold temperatures and simultaneously provides a means by which BioStorage can use our tools to expand into new market opportunities like hospitals and universities.”
Dusty Tenney, President of the Brooks Life Science Systems business, added, “This acquisition combined with our existing offerings, particularly automation for sample storage and formatting, uniquely positions us to help our clients increase scientific productivity with a fully integrated sample management cold chain solution. We can enhance and manage workflow from collection and inventory management to eventual sample processing and disposition.”
BioStorage Technologies generated approximately $40 million of revenue in the last 12 months reported and management expects it to become accretive to Brooks’ non-GAAP earnings within the first half of fiscal 2016. The Company indicated that additional information related to the acquisition will be provided on the regularly scheduled fourth quarter fiscal 2015 earnings call later today, November 5, 2015.
Evercore acted as financial advisor and Mintz, Levin, Cohn, Ferris, Glovesky and Popeo acted as legal counsel to Brooks Automation in connection with the transaction.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences. Brooks’ 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, Brooks has been a leading partner to the global semiconductor manufacturing market and, through product development initiatives and strategic business acquisitions, has expanded offerings 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, 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, but are not limited to statements about the anticipated benefits of the proposed transaction, the expected future capabilities of the combined companies, and the companies' ability to achieve the closing conditions and close the transaction in the expected timeframe. Factors that could cause results to differ from our expectations include the following: the risk that the conditions to the closing of the transaction are not satisfied, including the risk that required regulatory approvals are not obtained; uncertainties as to the timing of the closing of the transaction; unexpected costs, charges or expenses resulting from the transaction; and potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction. In addition, actual results are subject to other risks that relate more broadly to Brooks’ overall business, including those 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. |
