Azenta, Inc. · NASDAQ:AZTA
Azenta — Brooks Automation — Q3 FY2010 Earnings Presentation
14 slides from Azenta's earnings presentation, Aug 5, 2010
Slide 1: 3rd Quarter Fiscal 2010 Financial Results Conference Call
3rd Quarter Fiscal 2010 Financial Results Conference Call Thursday, August 5, 2010 4:30 p.m. ET
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
Safe Harbor Statement & Non-GAAP Financial Measures "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 r
Slide 3: 67% Increase in Non-GAAP Earnings
67% Increase in Non-GAAP Earnings $millions Q2 FY10 Q3 FY10 Change Revenues $ 148.4 $ 156.8 $ 8.4 Operating Profit before Special Charges 10.4 16.8 6.4 Non-Recurring Income & (Special Charges) 7.3 (0.3) (7.6) Interest & Other Income 0.2 0.2 0.0 Taxes 2.8 0.0 (2.8) Minorities & Joint Venture Earnings
Slide 4: Margin Expansion continues
Margin Expansion continues $millions Q2 FY10 Q3 FY10 Change Revenues $ 148.4 $ 156.8 $ 8.4 Gross Profit % to sales 38.9 26.3% 45.9 29.3% 7.0 R&D Expense 7.7 7.9 (0.2) SG&A Expense 20.8 21.2 (0.4) Operating Profit before Special Charges $ 10.4 7.0% $ 16.8 10.7% $ 6.4
Slide 5: Revenue and Earnings Waterfall
Revenue and Earnings Waterfall 2nd Quarter Fiscal 2010 $ 148.4 $ 10.4 Critical Solutions business growth 4.0 2.6 Systems Solutions business growth 4.6 3.2 GCO (Service) business growth ( 0.2) 0.1 Increased engineering investments ( 0.2) Stock compensation expense 0.7 3rd Quarter Fiscal 2010 $ 156.8
Slide 6: $90 million Annualized Adjusted EBITDA Run Rate
$90 million Annualized Adjusted EBITDA Run Rate Q3FY09 Q4 FY09 Q1FY10 Q2FY10 Q3FY10 Revenues 43.9 64.1 106.2 148.4 156.8 Adj EBITDA -17.2 -8.7 5.6 17.3 22.5 R E V E N E S A D J E B I T D A
Slide 7: Continued Cash Growth
Continued Cash Growth Adjusted EBITDA $ 22.5 Restructuring cash flow ( 1.5) Net Interest income 0.2 Working capital support of revenue growth (12.6) Cash flow from Continuing Operations 8.6 Capital Expenditures ( 0.7) Currency and other ( 0.7) Net Change in Cash and Marketable Investments $ 7.2 A re
Slide 8: Critical Balance Sheet Accounts
Critical Balance Sheet Accounts $ millions March 2010 June 2010 Comments on Sequential Trends Cash and Marketable Securities 125.8 132.9 Accounts receivable, net 67.6 71.9 DSO approximately flat Inventories, net 103.5 116.9 Investment to support cost reductions Accounts payable ( 66.7) ( 70.5) Accru
Slide 9: Critical Solutions Segment
Critical Solutions Segment $ millions Q2FY10 Q3FY10 Comments on Sequential Trends Revenues $ 60.0 $ 64.0 6.7% sequential growth Gross Profit 22.6 25.6 Margins improve to 40.0% Operating Expenses 14.9 15.4 Higher engineering investments Segment Operating Income $ 7.7 $ 10.2 16% operating margin
Slide 10: Systems Solutions Segment
Systems Solutions Segment $ millions Q2FY10 Q3FY10 Comments on Sequential Trends Revenues $ 72.6 $ 77.2 6.3% sequential growth Gross Profit 13.1 16.8 21.8% gross margin Operating Expenses 9.0 9.2 Segment Operating Income $ 4.1 $ 7.6 9.8% operating margin
Slide 11: Global Customer Operations
Global Customer Operations $ millions Q2FY10 Q3FY10 Comments on Sequential Trends Revenues $ 15.7 $ 15.6 Gross Profit 3.3 3.5 22.5% service & repair margins Operating Expenses 3.8 3.8 Segment Operating Loss $( 0.5) $( 0.3) Includes costs of global customer support
Slide 12: Looking Forward
Looking Forward September quarter - Revenues in excess of $175 million and Diluted EPS of between $0.31 and $0.34. ROIC of the business driven to above 35% No evidence of December quarter slow down resulting in Calendar Year 2010 non-GAAP Diluted EPS above $1.00.
Slide 13: Exiting FY10 at Close to $120 million Adjusted EBITDA Run Rate
Exiting FY10 at Close to $120 million Adjusted EBITDA Run Rate Q3FY09 Q4 FY09 Q1FY10 Q2FY10 Q3FY10 Q4 FY10 Revenues 43.9 64.1 106.2 148.4 156.8 175 Adj EBITDA -17.2 -8.7 5.6 17.3 22.5 29 R E V E N E S A D J E B I T D A
Slide 14: 3rd Quarter Fiscal 2010 Financial Results Conference Call
3rd Quarter Fiscal 2010 Financial Results Conference Call Thursday, August 5, 2010 4:30 p.m. ET