Vacuum and Analysis Division Achieves New Quarterly Record for Semiconductor Revenue

ANDOVER, Mass., Oct. 26, 2016 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ:MKSI), a global provider of technologies that enable advanced processes and improve productivity, today reported third quarter 2016 financial results. 

Financial Highlights for the Third Quarter of 2016

• Revenue of $381 million
• GAAP net income of $32.5 million, or $0.60 per diluted share
• Non-GAAP net earnings of $47.9 million, or $0.88 per diluted share

"We had a very strong third quarter driven by continued growth in our semiconductor business, which rose 15% sequentially on a pro-forma basis,” said Gerald Colella, Chief Executive Officer and President.  Mr. Colella added, "Our results reflect the depth of our customer relationships and our increasing leverage to key technology inflections driving the semiconductor market, including the transition to smaller node sizes, 3D NAND, multi-patterning, and advanced packaging; moreover, many of these inflections are still in their early stages and provide opportunities for continued growth going forward."

“We continue to execute on our strategy to delever and reduce our interest cost.  During the third quarter, we made a $60 million voluntary pre-payment on our term-loan facility, bringing our total pre-payments to date to $110 million.  These prepayments, combined with our debt repricing on June 9^th, have reduced our annual Non-GAAP interest cost by $9 million or over 20% since we completed the Newport acquisition,” said Seth Bagshaw, Vice President and Chief Financial Officer.

Results for the Third Quarter of 2016
Sales of $381 million increased 6% from pro forma second quarter sales of $359 million. GAAP net income of $32.5 million included amortization of intangible assets of $12.5 million and aggregate acquisition and integration-related costs of $2.6 million associated with the acquisition of Newport Corporation, which closed on April 29, 2016.  Non-GAAP net earnings were $47.9 million, or $0.88 per diluted share.

Quarterly Financial Results
(in millions, except per share data)
	Q3 2016				Q2 2016
GAAP Results
Net revenues	$	381			$	326
Gross margin		44.2	%			41.7	%
Operating margin		13.9	%			5.9	%
Net income	$	32.5			$	9.2
Diluted EPS	$	0.60			$	0.17
Non-GAAP Results
Gross margin		45.5	%			44.8	%
Operating margin		19.2	%			18.1	%
Net earnings	$	47.9			$	38.7
Diluted EPS	$	0.88			$	0.72

Additional Financial Information
The Company had $426 million in cash and short-term investments as of September 30, $668 million outstanding under its term loan, and during the quarter, paid a dividend of $9.1 million or $0.17 per diluted share.

Fourth Quarter Outlook  
Based on current business levels, the Company expects that sales in the fourth quarter of 2016 may range from $370 to $410 million, and at these volumes, GAAP net income could range from $0.68 to $0.92 per diluted share and non-GAAP net earnings could range from $0.87 to $1.10 per diluted share.

Conference Call Details
A conference call with management will be held on Thursday, October 27, 2016 at 8:30 a.m. (Eastern Time).  To participate in the conference call, please dial (877) 212-6076 for domestic callers and (707) 287-9331 for international callers, and an operator will connect you.  Participants will need to provide the operator with the Conference ID of 89631196, which has been reserved for this call.  A live and archived webcast of the call will be available on the Company’s website at www.mksinst.com.  

About MKS Instruments
MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor, and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity.  Our products are derived from our core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, RF & DC power, reactive gas generation, vacuum technology, lasers, photonics, sub-micron positioning, vibration isolation, and optics.  Our primary served markets include semiconductor capital equipment, general industrial, life sciences, and research.  Additional information can be found at www.mksinst.com.

Use of Non-GAAP Financial Results
Non-GAAP amounts exclude amortization of acquired intangible assets, costs associated with completed and announced acquisitions, acquisition integration costs, sale of previously written down inventory, an inventory step-up adjustment related to an acquisition, restructuring charges, fees and expenses related to repricing of term loan, amortization of debt issuance costs, net proceeds from an insurance policy, the tax effect of a legal entity restructuring, other discrete tax benefits and charges, and the related tax effect of these adjustments.  These non-GAAP measures are not in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP).  MKS' management believes the presentation of these non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results.  Pro forma revenue amounts assume the acquisition of Newport had occurred as of the beginning of the second quarter of 2016.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the future financial performance of MKS, our future business prospects, our future growth, and our expected synergies and cost savings from our recent acquisition of Newport Corporation.  These statements are only predictions based on current assumptions and expectations.  Actual events or results may differ materially from those in the forward-looking statements set forth herein.  Among the important factors that could cause actual events to differ materially from those in the forward-looking statements are the conditions affecting the markets in which we operate, including the fluctuations in capital spending in the semiconductor industry, and other advanced manufacturing markets, fluctuations in net sales to our major customers, our ability to successfully integrate Newport’s operations and employees, unexpected costs, charges or expenses resulting from the Newport acquisition, the terms of the term loan financing, MKS’ ability to realize anticipated synergies and cost savings from the Newport acquisition, our ability to successfully grow our business, potential adverse reactions or changes to business relationships resulting from the Newport acquisition, potential fluctuations in quarterly results, the challenges, risks and costs involved with integrating the operations of any other acquired companies, dependence on new product development, rapid technological and market change, acquisition strategy, manufacturing and sourcing risks, volatility of stock price, international operations, financial risk management, and the other factors described in MKS’ most recent Quarterly Report on Form 10-Q filed with the SEC.  MKS is under no obligation to, and expressly disclaims any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release.

MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
			Three Months Ended
			September 30,				September 30,				June 30,
				2016				2015				2016
Net revenues:
Products			$	335,156			$	179,441			$	285,471
Services				45,504				29,891				40,390
Total net revenues				380,660				209,332				325,861
Cost of revenues:
Products				183,789				95,710				163,993
Services				28,486				19,393				25,955
Total cost of revenues				212,275				115,103				189,948
Gross profit				168,385				94,229				135,913
Research and development				32,268				17,217				28,214
Selling, general and administrative				70,424				33,396				71,429
Acquisition costs				233				-				8,205
Restructuring				-				562				24
Amortization of intangible assets				12,452				1,691				8,855
Income from operations				53,008				41,363				19,186
Interest (expense) income, net				(11,604	)			721				(7,944	)
Other income, net				844				-				1,126
Income from operations before income taxes				42,248				42,084				12,368
Provision for income taxes				9,699				12,315				3,158
Net income			$	32,549			$	29,769			$	9,210
Net income per share:
Basic			$	0.61			$	0.56			$	0.17
Diluted			$	0.60			$	0.56			$	0.17
Cash dividends per common share			$	0.17			$	0.17			$	0.17
Weighted average shares outstanding:
Basic				53,574				53,314				53,461
Diluted				54,315				53,568				53,806
The following supplemental Non-GAAP earnings information is presented
to aid in understanding MKS' operating results:
Net income			$	32,549			$	29,769			$	9,210
Adjustments:
Acquisition costs (Note 1)				233				-				8,205
Acquisition inventory step-up (Note 2)				4,971				-				10,119
Fees and expenses relating to repricing of term loan (Note 3)				-				-				713
Amortization of debt issuance costs (Note 4)				2,838				-				1,629
Integration costs (Note 5)				2,408				-				11,850
Restructuring (Note 6)				-				562				24
Net proceeds from an insurance policy (Note 7)				(1,323	)			-				-
Tax expense from legal entity restructuring (Note 8)				1,532				-				-
Amortization of intangible assets				12,452				1,691				8,855
Pro forma tax adjustments				(7,790	)			(543	)			(11,896	)
Non-GAAP net earnings (Note 9)			$	47,870			$	31,479			$	38,709
Non-GAAP net earnings per share (Note 9)			$	0.88			$	0.59			$	0.72
Weighted average shares outstanding				54,315				53,568				53,806
Income from operations			$	53,008			$	41,363			$	19,186
Adjustments:
Acquisition costs (Note 1)				233				-				8,205
Acquisition inventory step-up (Note 2)				4,971				-				10,119
Fees and expenses relating to repricing of term loan (Note 3)				-				-				713
Integration costs (Note 5)				2,408				-				11,850
Restructuring (Note 6)				-				562				24
Amortization of intangible assets				12,452				1,691				8,855
Non-GAAP income from operations (Note 10)			$	73,072			$	43,616			$	58,952
Non-GAAP operating margin percentage (Note 10)				19.2	%			20.8	%			18.1	%
Gross profit			$	168,385			$	94,229			$	135,913
Acquisition inventory step-up (Note 2)				4,971				-				10,119
Non-GAAP gross profit (Note 11)			$	173,356			$	94,229			$	146,032
Non-GAAP gross profit percentage (Note 11)				45.5	%			45.0	%			44.8	%
Interest (expense) income, net			$	(11,604	)		$	721			$	(7,944	)
Amortization of debt issuance costs (Note 4)				2,838				-				1,629
Non-GAAP interest (expense) income, net			$	(8,766	)		$	721			$	(6,315	)
Note 1: We recorded $0.2 million and $8.2 million of acquisition costs during the three months ended September 30, 2016 and June 30, 2016, respectively, related to the Newport Corporation acquisition, which closed during the second quarter of 2016.
Note 2: We recorded $5.0 million and $10.1 million in cost of sales during the three months ended September 30, 2016  and June 30, 2016, respectively, related to the step-up of inventory to fair value as a result of the Newport Corporation acquisition. This was charged to cost of sales over inventory turns of three months.
Note 3: We recorded $0.7 million of fees and expenses during the three months ended June 30, 2016 related to the repricing of our Term Loan Credit Agreement.
Note 4: We recorded $2.8 million and $1.6 million of additional interest expense during the three months ended September 30, 2016 and June 30, 2016, respectively, related to the amortization of debt issuance costs affiliated with our Term Loan Credit Agreement and ABL Facility.
Note 5: We recorded $2.4 million and $11.9 million of integration costs during the three months ended September 30, 2016 and June 30, 2016, respectively, related to the Newport Corporation acquisition.
Note 6: The three months ended September 30, 2015, includes restructuring charges related to the outsourcing of an international manufacturing operation and the consolidation of certain other foreign manufacturing locations.
Note 7: We recorded net proceeds of $1.3 million from a company owned life insurance policy.
Note 8: We recorded a tax expense of $1.5 million related to a legal entity restructuring.
Note 9: The Non-GAAP net earnings and Non-GAAP net earnings per share amounts exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, amortization of debt issuance costs, integration costs related to the acquisition of Newport Corporation, restructuring costs, net proceeds from an insurance policy, the tax effect of a legal entity restructuring, amortization of intangible assets and the related tax effect of these adjustments to reflect the expected full year effective tax rate in the related period.
Note 10: The Non-GAAP income from operations and Non-GAAP operating margin percentages exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, integration costs related to the acquisition of Newport Corporation, restructuring costs, and amortization of intangible assets.
Note 11:  The Non-GAAP gross profit amounts and Non-GAAP gross profit percentages exclude an inventory step-up adjustment related to an acquisition.

 

 

MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
				Nine Months Ended
				September 30,
					2016				2015
Net revenues:
Products				$	774,248			$	553,818
Services					115,954				87,319
Total net revenues					890,202				641,137
Cost of revenues:
Products					433,134				294,211
Services					74,857				56,853
Total cost of revenues					507,991				351,064
Gross profit					382,211				290,073
Research and development					77,709				51,464
Selling, general and administrative					175,803				97,532
Acquisition costs					10,932				30
Restructuring					24				1,569
Amortization of intangible assets					22,990				5,071
Income from operations					94,753				134,407
Interest (expense) income, net					(18,668	)			2,015
Other income, net					2,336				-
Income from operations before income taxes					78,421				136,422
Provision for income taxes					19,099				39,647
Net income				$	59,322			$	96,775
Net income per share:
Basic				$	1.11			$	1.82
Diluted				$	1.10			$	1.81
Cash dividends per common share				$	0.510			$	0.505
Weighted average shares outstanding:
Basic					53,423				53,304
Diluted					53,895				53,562
The following supplemental Non-GAAP earnings information is presented
to aid in understanding MKS' operating results:
Net income				$	59,322			$	96,775
Adjustments:
Acquisition costs (Note 1)					10,932				30
Acquisition inventory step-up (Note 2)					15,090				-
Fees and expenses relating to repricing of term loan (Note 3)					713				-
Amortization of debt issuance costs (Note 4)					4,467				-
Integration costs (Note 5)					14,258				-
Restructuring (Note 6)					24				1,569
Sale of previously written down inventory (Note 7)					-				(2,098	)
Net proceeds from an insurance policy (Note 8)					(1,323	)			-
Tax expense from legal entity restructuring (Note 9)					1,532				-
Amortization of intangible assets					22,990				5,071
Pro forma tax adjustments					(21,279	)			(1,241	)
Non-GAAP net earnings (Note 10)				$	106,726			$	100,106
Non-GAAP net earnings per share (Note 10)				$	1.98			$	1.87
Weighted average shares outstanding					53,895				53,562
Income from operations				$	94,753			$	134,407
Adjustments:
Acquisition costs (Note 1)					10,932				30
Acquisition inventory step-up (Note 2)					15,090				-
Fees and expenses relating to repricing of term loan (Note 3)					713				-
Integration costs (Note 5)					14,258				-
Restructuring (Note 6)					24				1,569
Sale of previously written down inventory (Note 7)					-				(2,098	)
Amortization of intangible assets					22,990				5,071
Non-GAAP income from operations (Note 11)				$	158,760			$	138,979
Non-GAAP operating margin percentage (Note 11)					17.8	%			21.7	%
Gross profit				$	382,211			$	290,073
Acquisition inventory step-up (Note 2)					15,090				-
Sale of previously written down inventory (Note 7)					-				(2,098	)
Non-GAAP gross profit (Note 12)				$	397,301			$	287,975
Non-GAAP gross profit percentage (Note 12)					44.6	%			44.9	%
Interest (expense) income, net				$	(18,668	)		$	2,015
Amortization of debt issuance costs (Note 4)					4,467				-
Non-GAAP interest (expense) income, net				$	(14,201	)		$	2,015
Note 1: We recorded $10.9 million of acquisition costs during the nine months ended September 30, 2016 related to the Newport Corporation acquisition, which closed during the second quarter of 2016. We recorded $0.03 million of acquisition costs during the nine months ended September 30, 2015 related to the Precisive LLC acquisition, which closed during the first quarter of 2015.
Note 2: We recorded $15.1 million in cost of sales during the nine months ended September 30, 2016 related to the step-up of inventory to fair value as a result of the Newport Corporation acquisition. This was charged to cost of sales over inventory turns of three months.
Note 3: We recorded $0.7 million of fees and expenses during the nine months ended September 30, 2016 related to the repricing of our Term Loan Credit Agreement.
Note 4: We recorded $4.5 million of amortization expense during the nine months ended September 30, 2016 related to the amortization of debt issuance costs affiliated with our Term Loan Credit Agreement and ABL Facility.
Note 5: We recorded $14.3 million of integration costs during the nine months ended September 30, 2016 related to the Newport Corporation acquisition.
Note 6: We recorded $1.6 million of restructuring costs during the nine months ended September 30, 2015 related to the outsourcing of an international manufacturing operation.
Note 7: Cost of sales for the nine months ended September 30, 2015, include the reversal of a special charge of $2.1 million for obsolete inventory, which was sold in the second quarter of 2015.
Note 8: We recorded net proceeds of $1.3 million from a company owned life insurance policy.
Note 9: We recorded a tax expense of $1.5 million related to a legal entity restructuring.
Note 10: The Non-GAAP net earnings and Non-GAAP net earnings per share amounts exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, amortization of debt issuance costs, integration costs related to the acquisition of Newport Corporation, restructuring costs, the reversal of certain previously written off inventory items that were subsequently sold, net proceeds from an insurance policy, the tax effect of a legal entity restructuring, amortization of intangible assets and the related tax effect of these adjustments to reflect the expected full year effective tax rate in the related period.
Note 11: The Non-GAAP income from operations and Non-GAAP operating margin percentages exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, integration costs related to the acquisition of Newport Corporation, restructuring costs, the reversal of certain previously written off inventory items that were subsequently sold and amortization of intangible assets.
Note 12:  The Non-GAAP gross profit amounts and Non-GAAP gross profit percentages exclude an inventory step-up adjustment related to the acquisition of Newport Corporation and the reversal of certain previously written off inventory items that were subsequently sold.

 

MKS Instruments, Inc.
Reconciliation of GAAP Income Tax Rate to Non-GAAP Income Tax Rate
(In thousands)
		Three Months Ended September 30, 2016												Three Months Ended June 30, 2016
		Income Before				Provision (benefit)				Effective				Income Before				Provision (benefit)				Effective
		Income Taxes				for Income Taxes				Tax Rate				Income Taxes				for Income Taxes				Tax Rate
GAAP		$	42,248			$	9,699				23.0	%		$	12,368			$	3,158				25.5	%
Adjustments:
Acquisition costs (Note 1)			233				-								8,205				-
Acquisition inventory step-up (Note 2)			4,971				-								10,119				-
Fees and expenses relating to repricing of term loan (Note 3)			-				-								713				-
Amortization of debt issuance costs (Note 4)			2,838				-								1,629				-
Integration costs (Note 5)			2,408				-								11,850				-
Restructuring			-				-								24				-
Net proceeds from an insurance policy (Note 7)			(1,323	)			-								-				-
Tax expense from legal entity restructuring (Note 8)			-				(1,532	)							-				-
Amortization of intangible assets			12,452				-								8,855				-
Tax effect of pro forma adjustments			-				7,790								-				11,708
Adjustment to pro forma tax rate			-				-								-				188
Non-GAAP		$	63,827			$	15,957				25.0	%		$	53,763			$	15,054				28.0	%
		Three Months Ended September 30, 2015
		Income Before				Provision (benefit)				Effective
		Income Taxes				for Income Taxes				Tax Rate
GAAP		$	42,084			$	12,315				29.3	%
Adjustments:
Restructuring (Note 6)			562				-
Amortization of intangible assets			1,691				-
Tax effect of pro forma adjustments			-				755
Adjustment to pro forma tax rate			-				(212	)
Non-GAAP		$	44,337			$	12,858				29.0	%
		Nine Months Ended September 30, 2016												Nine Months Ended September 30, 2015
		Income Before				Provision (benefit)				Effective				Income Before				Provision (benefit)				Effective
		Income Taxes				for Income Taxes				Tax Rate				Income Taxes				for Income Taxes				Tax Rate
GAAP		$	78,421			$	19,099				24.4	%		$	136,422			$	39,647				29.1	%
Adjustments:
Acquisition costs (Note 1)			10,932				-								30				-
Acquisition inventory step-up (Note 2)			15,090				-								-				-
Fees and expenses relating to repricing of term loan (Note 3)			713				-								-				-
Amortization of debt issuance costs (Note 4)			4,467				-								-				-
Integration costs (Note 5)			14,258				-								-				-
Restructuring (Note 6)			24				-								1,569				-
Net proceeds from an insurance policy (Note 7)			(1,323	)			-								-				-
Tax expense from legal entity restructuring (Note 8)			-				(1,532	)							-				-
Amortization of intangible assets			22,990				-								5,071				-
Sale of previously written down inventory (Note 9)			-				-								(2,098	)			-
Tax effect of pro forma adjustments			-				21,001								-				1,883
Adjustment to pro forma tax rate			-				278								-				(642	)
Non-GAAP		$	145,572			$	38,846				26.7	%		$	140,994			$	40,888				29.0	%
Note 1: We recorded $0.2 million and $10.9 million of acquisition costs during the three and nine months ended September 30, 2016, respectively, related to the Newport Corporation acquisition, which closed during the second quarter of 2016. We recorded $0.03 million of acquisition costs during the nine months ended September 30, 2015 related to the Precisive LLC acquisition, which closed during the first quarter of 2015.
Note 2: We recorded $5.0 million and $15.1 million of amortization expense, respectively, during the three and nine months ended September 30, 2016 related to the step-up of inventory to fair value as a result of the Newport Corporation acquisition.
Note 3: We recorded $0.7 million of fees and expenses during the three months ended June 30, 2016 and nine months ended September 30, 2016 related to the repricing of our Term Loan Credit Agreement.
Note 4: We recorded $2.8 million and $4.5 million of additional interest expense during the three and nine months ended September 30, 2016 and $1.6 million during the three months ended June 30, 2016, related to the amortization of debt issuance costs affiliated with our Term Loan Credit Agreement and ABL Facility.
Note 5: We recorded $2.4 million and $14.3 million of integration costs during the three and nine months ended September 30, 2016 and $11.9 million during the three months ended June 30, 2016 related to the Newport Corporation acquisition.
Note 6: We recorded $1.6 million of restructuring costs during the nine months ended September 30, 2015 related to the outsourcing of an international manufacturing operation.
Note 7: We recorded net proceeds of $1.3 million from a company owned life insurance policy.
Note 8: We recorded a tax expense of $1.5 million related to a legal entity restructuring.
Note 9: Cost of sales for the nine months ended September 30, 2015, include the reversal of a special charge of $2.1 million for obsolete inventory, which was sold in the second quarter of 2015.
MKS Instruments, Inc.
Reconciliation of Q4-16 Guidance - GAAP Net Income to Non-GAAP Net Earnings
(In thousands, except per share data)
		Three Months Ended December 31, 2016
		Low Guidance								High Guidance
		$ Amount				$ Per Share				$ Amount				$ Per Share
GAAP net income		$	36,800			$	0.68			$	50,000			$	0.92
Amortization			12,300				0.23				12,300				0.23
Debt issuance costs			820				0.02				820				0.02
Acquisition costs			200				0.00				200				0.00
Integration costs			1,600				0.03				1,600				0.03
Tax effect of adjustments (Note 1)			(4,720	)			(0.09	)			(4,920	)			(0.09	)
Non-GAAP net earnings		$	47,000			$	0.87			$	60,000			$	1.10
Q4 -16 forecasted shares							54,300								54,300
Note 1: The Non-GAAP adjustments are tax effected at the applicable statutory rates.

 

MKS Instruments, Inc.
Unaudited Consolidated Balance Sheet
(In thousands)
					September 30,				December 31,
						2016				2015
ASSETS
Cash and cash equivalents					$	366,874			$	227,574
Restricted cash						5,931				-
Short-term investments						53,104				430,663
Trade accounts receivable, net						243,853				101,883
Inventories						278,965				152,631
Other current assets						53,616				26,760
	Total current assets					1,002,343				939,511
Property, plant and equipment, net						179,694				68,856
Goodwill						594,635				199,703
Intangible assets, net						419,811				44,027
Long-term investments						15,256				-
Other assets						29,926				21,250
Total assets					$	2,241,665			$	1,273,347
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt					$	11,528			$	-
Accounts payable						68,371				23,177
Accrued compensation						63,424				28,424
Income taxes payable						13,758				4,024
Other current liabilities						73,354				35,359
	Total current liabilities					230,435				90,984
Long-term debt, net						639,068				-
Non-current deferred taxes						91,928				2,655
Non-current accrued compensation						44,739				13,395
Other liabilities						19,956				5,432
	Total liabilities					1,026,126				112,466
Stockholders' equity:
Common stock						113				113
Additional paid-in capital						770,444				744,725
Retained earnings						458,369				427,214
Accumulated other comprehensive loss						(13,387	)			(11,171	)
	Total stockholders' equity					1,215,539				1,160,881
Total liabilities and stockholders' equity					$	2,241,665			$	1,273,347

Company Contact:  
Seth H. Bagshaw
Vice President, Chief Financial Officer and Treasurer
Telephone:  978.645.5578

Investor Relations Contact:  
Monica Gould
The Blueshirt Group
Telephone:  212.871.3927
Email:  monica@blueshirtgroup.com