Azenta, Inc. · NASDAQ:AZTA
Azenta — Brooks Automation — Q4 2010 Earnings Presentation
18 slides from Azenta's earnings presentation, Nov 10, 2010
Slide 1: 4th Quarter Fiscal 2010 Financial Results Conference Call
1 4th Quarter Fiscal 2010 Financial Results Conference Call Wednesday, November 10, 2010 4:30 p.m. ET
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
2 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
Slide 3: 45% Increase in Non-GAAP Earnings
45% Increase in Non-GAAP Earnings Tax Benefit 0.0 0.5 0.5 Interest & Other Income 0.2 0.9 0.7 Minorities & Joint Venture Earnings (0.1) 0.4 0.5 Net Income attributable to Brooks $ 16.6 $ 24.2 $ 7.6 Non-Recurring Income & (Special Charges) (0.3) (0.2) 0.1 Operating Profit before Special Charges 16.8
Slide 4: Margin Expansion Continues
Margin Expansion continues SG&A Expense 21.2 24.6 (3.4) $ 22.6 $ 5.8 12.4% $ 16.8 10.7% Operating Profit before Special Charges R&D Expense 7.9 8.0 (0.1) 55.2 9.3 30.4% 45.9 29.3% Gross Profit % to sales Revenues $ 156.8 $ 181.6 $ 24.8 Q4 Change FY10 Q3 FY10 $millions 4
Slide 5: Revenue and Profits Waterfall
Revenue and Profits Waterfall Increased SG&A expense ( 3.0) GCO (Service) business growth 1.3 0.7 Increased engineering investments ( 0.1) $ 22.6 ( 0.4) 3.8 4.8 $ 16.8 Systems Solutions business growth 12.6 $ 181.6 10.9 $ 156.8 Critical Solutions business growth 4th Quarter Fiscal 2010 Stock compens
Slide 6: Fiscal Year Comparisons
Fiscal Year Comparisons Operating Profit (loss) # (104.3) 49.5 153.8 Operating Expense # 122.8 116.8 6.0 $ 50.1 $ 153.0 8.4% $ (102.9) (47.1)% Adjusted Net Income (loss) # 147.8 166.3 28.0% 18.5 8.5% Gross Profit # % to sales Revenues $ 218.7 $ 593.0 $ 374.3 Fiscal Change 2010 Fiscal 2009 $millions
Slide 7: Growth to $120 million Annualized Adjusted EBITDA Run Rate
7 Growth to $120 million Annualized Adjusted EBITDA Run Rate Q3FY09 Q4 FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Revenues 43.9 64.1 106.2 148.4 156.8 181.6 Adj EBITDA -17.2 -8.7 5.6 17.3 22.5 29.7 REVENUES ADJEBITDA
Slide 8: Cash Flow Components
8 Cash Flow Components Adjusted EBITDA* $ 29.7 Restructuring cash flow ( 2.1) Net interest income 0.2 Pension plan funding ( 4.0) Working capital support of revenue growth ( 13.8) Cash flow from Continuing Operations 10.0 Capital expenditures ( 1.6) Currency and other 1.1 Net Change in Cash and Mark
Slide 9: Critical Balance Sheet Accounts
9 Critical Balance Sheet Accounts $ millions June 2010 September 2010 Comments on Sequential Trends Cash, cash equivalents and marketable securities 132.9 142.4 Accounts receivable, net 71.9 92.3 Late receipt from a major OEM Inventories, net 116.9 115.8 De-bottlenecking successes Accounts payable (
Slide 10: Return on Invested Capital
Return on Invested Capital Q3 FY10 Q4 FY10 Net Income 16.6 24.1 Less: Special charges and interest income (0.1) (0.0) Operating return 16.5 24.2 Shareholders Equity 358.1 389.4 Less: Cash and marketable securities (132.9) ( 142.4) Investment in operations 225.2 247.0 Return on Invested Capital 29.3%
Slide 11: Critical Solutions Segment
11 Critical Solutions Segment $ millions Q3FY10 Q4FY10 Comments on Sequential Trends Revenues $ 64.0 $ 75.0 17.1% sequential growth Gross Profit 25.6 30.4 Margins improve to 40.5% Operating Expenses 15.4 16.9 Higher performance based incentive and corporate expense Segment Operating Income $ 10.2 $
Slide 12: Systems Solutions Segment
12 Systems Solutions Segment $ millions Q3FY10 Q4FY10 Comments on Sequential Trends Revenues $ 77.2 $ 89.8 16.3% sequential growth Gross Profit 16.8 20.6 22.9% gross margin Operating Expenses 9.2 10.7 Higher performance based incentive and corporate expense Segment Operating Income $ 7.6 $ 9.9 11% o
Slide 13: Global Customer Operations
13 Global Customer Operations $ millions Q3FY10 Q4FY10 Comments on Sequential Trends Revenues $ 15.6 $ 16.9 8.3% sequential growth Gross Profit 3.6 4.2 25.1% service & repair margins Operating Expenses 3.8 4.5 Higher corporate cost allocation Segment Operating Loss $( 0.2) $( 0.3) Includes costs of
Slide 14: Revenue and Earnings Guidance
14 Revenue and Earnings Guidance December Quarter Revenues $175 to $182 million Diluted Adjusted EPS $0.30 to $0.35.CY10 Revenues $662 to $669 million Diluted Adjusted EPS $1.10 to $1.15.
Slide 15: Beyond December
15 Beyond December Inputs for continued SCE spending strength balanced against current push-out behaviors Acceleration of innovation investments targeted at products that will make an impact in 2011 Even with some SCE market slowdown in 2011 our FY11 results will show considerable revenue and earnin
Slide 16: 4th Quarter Fiscal 2010 Financial Results Conference Call
16 4th Quarter Fiscal 2010 Financial Results Conference Call Wednesday, November 10, 2010 4:30 p.m. ET
Slide 17: Appendix
17 Appendix
Slide 18: GAAP to Non-GAAP Reconciliation
18 GAAP to Non-GAAP Reconciliation