CHELMSFORD, Mass., July 30, 2020 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the third fiscal quarter, ended June 30, 2020.
Financial Results Summary
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Quarter Ended
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Dollars in millions, except per share data
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June 30,
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March 31,
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June 30,
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Change vs.
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2020
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2020
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2019
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|
Prior Qtr
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Prior Year
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|
|
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Revenue
|
|
$
|
220
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|
$
|
220
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|
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$
|
204
|
|
0
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%
|
8
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%
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|
|
|
Semiconductor Solutions
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$
|
127
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$
|
125
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$
|
116
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|
2
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%
|
9
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%
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Life Sciences
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$
|
93
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$
|
95
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$
|
88
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(2)
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%
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6
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%
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|
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|
|
|
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|
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|
|
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Diluted EPS Continuing Operations
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$
|
0.19
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|
$
|
0.12
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|
|
$
|
0.01
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|
49
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%
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N/M
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Diluted EPS Total
|
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$
|
0.19
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|
$
|
0.12
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|
|
$
|
0.10
|
|
50
|
%
|
85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP Diluted EPS Continuing Operations
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$
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0.32
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|
$
|
0.25
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|
|
$
|
0.20
|
|
26
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%
|
60
|
%
|
|
|
Management Comments
"Despite the current environment's headwinds, we delivered a strong performance in the quarter," commented Steve Schwartz, president and CEO. "Our Life Sciences business witnessed robust demand for its sample management offerings and gene synthesis services. Due to many customer lab closures around the world, our gene sequencing business had a slow start to the quarter but has steadily increased and is now approaching pre-COVID levels. We continue to see a ramp in Semiconductor with increased demand for both automation systems and robots. The real story here is about the relentless team of Brooks employees working through the most difficult of environments without missing a beat!"
Summary of GAAP Results for Continuing Operations
- Revenue for the third fiscal quarter was $220 million, up 8% year over year. Diluted EPS from continuing operations was $0.19 per share compared to $0.01 per share in the third quarter of 2019.
- Life Sciences revenue of $93 million grew 6% year over year and was down 2% sequentially. Year-over-year organic growth was 5%, led by consumables, instruments, and storage services. GENEWIZ revenue declined 9% sequentially but remained 1% above the third quarter 2019 revenue.
- Semiconductor Solutions revenue was $127 million, an increase of 9% year over year and 2% sequentially.
- GAAP operating income was $19 million, compared to $16 million in the third quarter of 2019. GAAP operating margin at 8.7% was 60 basis points higher year over year and 210 basis points higher sequentially.
- Net interest expense was $0.8 million for the quarter, a $7.1 million reduction from the third quarter of 2019.
Summary of Non-GAAP Results for Continuing Operations
- Diluted EPS from continuing operations for the third quarter was $0.32, up 26% from the second quarter of 2020 and up 60% over the prior year.
- Operating income was $30 million, an increase of 15% sequentially and year over year. Operating margin was 13.5%, up 180 basis points sequentially and 80 basis points year over year. The margin expansion was driven primarily by stronger gross margin.
- Gross margin was 43.5%, an increase of 130 basis points sequentially and 110 basis points year over year. Gross margin expansion in both segments, Life Sciences and Semiconductor Solutions, drove the improvement year over year, while the sequential momentum was driven by the Semiconductor business.
- Life Sciences operating margin was 7.1%, approximately flat year over year and lower by 150 basis points from the prior quarter. Gross margin performance of 44.6%, up 140 basis points year over year and lower by 120 basis points sequentially, was the primary driver. The Life Sciences Products business reported 40 basis points of improvement sequentially but was more than offset by the lower margins of the Life Sciences Services business.
- Semiconductor Solutions operating margin was 18.4%, an increase of 100 basis points from the prior year and up 510 basis points from the second quarter of 2020. Gross margin of 42.7%, up 100 basis points year over year and 320 basis points sequentially, was the primary driver of operating margin expansion.
- Adjusted EBITDA was $40 million, up 12% from the third quarter of 2019 and 16% sequentially.
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.
Cash and Liquidity
- Cash flow from operations was $26 million for the quarter and on a year-to-date basis, and cash flow from operations, excluding the $92 million tax payment made in the second quarter on the gain on the sale of the Semiconductor cryogenics business, was $78 million, an increase of $19 million from the same period the prior year.
- The Company ended the third quarter with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $263 million. With total debt of $51 million, net cash was $212 million.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 25, 2020 to stockholders of record on September 4, 2020. 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 Fourth Quarter Fiscal 2020
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2020. Revenue is expected to be in the range of $229 million to $241 million and non-GAAP diluted earnings per share is expected to be in the range of $0.32 to $0.40. GAAP diluted earnings per share for the fourth fiscal quarter is expected to be in the range of $0.19 to $0.27.
Conference Call and Webcast
Brooks management will webcast its third quarter earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks' website at www.brooks.investorroom.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-754-1366 (US & Canada only) or +1-212-231-2930 for international callers to listen to the live webcast.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analysis provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.
"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 our revenue and earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, and our ability to deliver financial success in the future. Factors that could cause results to differ from our expectations include the following: the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally, the 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; uncertainties in global political and economic conditions, and other factors and other risks, 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.
About Brooks Automation
Brooks (Nasdaq: BRKS) is a leading provider of life science sample-based solutions and semiconductor manufacturing solutions worldwide. The Company's Life Sciences business provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Brooks Life Sciences' GENEWIZ division is a leading provider of DNA gene sequencing and gene synthesis services. With over 40 years as a partner to the semiconductor manufacturing industry, Brooks is a provider of industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world's leading semiconductor chip makers and equipment manufacturers. Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe and Asia. For more information, visit www.brooks.com.
INVESTOR CONTACTS:
Mark Namaroff
Director, Investor Relations
Brooks Automation
978.262.2635
mark.namaroff@brooks.com
Sherry Dinsmore
Brooks Automation
978.262.2400
sherry.dinsmore@brooks.com
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BROOKS AUTOMATION, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited)
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(In thousands, except per share data)
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Three Months Ended
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Nine Months Ended
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June 30,
|
|
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June 30,
|
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2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
|
142,323
|
|
$
|
128,397
|
|
|
$
|
413,329
|
|
$
|
381,827
|
|
Services
|
|
78,027
|
|
|
75,483
|
|
|
|
237,748
|
|
|
199,810
|
|
Total revenue
|
|
220,350
|
|
|
203,880
|
|
|
|
651,077
|
|
|
581,637
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
81,989
|
|
|
77,203
|
|
|
|
245,930
|
|
|
229,580
|
|
Services
|
|
45,573
|
|
|
43,167
|
|
|
|
137,092
|
|
|
115,951
|
|
Total cost of revenue
|
|
127,562
|
|
|
120,370
|
|
|
|
383,022
|
|
|
345,531
|
|
Gross profit
|
|
92,788
|
|
|
83,510
|
|
|
|
268,055
|
|
|
236,106
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
14,004
|
|
|
14,235
|
|
|
|
43,727
|
|
|
41,485
|
|
Selling, general and administrative
|
|
59,714
|
|
|
52,596
|
|
|
|
178,866
|
|
|
158,509
|
|
Restructuring charges
|
|
(29)
|
|
|
256
|
|
|
|
1,125
|
|
|
685
|
|
Total operating expenses
|
|
73,689
|
|
|
67,087
|
|
|
|
223,718
|
|
|
200,679
|
|
Operating income
|
|
19,099
|
|
|
16,423
|
|
|
|
44,337
|
|
|
35,427
|
|
Interest income
|
|
29
|
|
|
108
|
|
|
|
865
|
|
|
847
|
|
Interest expense
|
|
(810)
|
|
|
(8,041)
|
|
|
|
(2,265)
|
|
|
(21,348)
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(9,051)
|
|
Other income (expenses), net
|
|
498
|
|
|
(309)
|
|
|
|
(1,318)
|
|
|
(1,116)
|
|
Income before income taxes
|
|
18,816
|
|
|
8,181
|
|
|
|
41,619
|
|
|
4,759
|
|
Income tax benefit
|
|
5,120
|
|
|
7,260
|
|
|
|
5,557
|
|
|
400
|
|
Income from continuing operations
|
|
13,696
|
|
|
921
|
|
|
|
36,062
|
|
|
4,359
|
|
Income (loss) from discontinued operations, net of tax
|
|
—
|
|
|
6,333
|
|
|
|
(182)
|
|
|
20,731
|
|
Net income
|
$
|
13,696
|
|
$
|
7,254
|
|
|
$
|
35,880
|
|
$
|
25,090
|
|
Basic net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.19
|
|
$
|
0.01
|
|
|
$
|
0.48
|
|
$
|
0.06
|
|
Income (loss) from discontinued operations, net of tax
|
|
-
|
|
|
0.09
|
|
|
|
(0.00)
|
|
|
0.29
|
|
Basic net income per share
|
$
|
0.19
|
|
$
|
0.10
|
|
|
$
|
0.49
|
|
$
|
0.35
|
|
Diluted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.19
|
|
$
|
0.01
|
|
|
$
|
0.49
|
|
$
|
0.06
|
|
Income (loss) from discontinued operations, net of tax
|
|
-
|
|
|
0.09
|
|
|
|
(0.00)
|
|
|
0.29
|
|
Diluted net income per share
|
$
|
0.19
|
|
$
|
0.10
|
|
|
$
|
0.49
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
73,759
|
|
|
72,188
|
|
|
|
73,473
|
|
|
71,903
|
|
Diluted
|
|
73,860
|
|
|
72,470
|
|
|
|
73,766
|
|
|
72,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKS AUTOMATION, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
(In thousands, except share and per share data)
|
|
|
June 30,
|
|
September 30,
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
256,633
|
|
$
|
301,642
|
|
Marketable securities
|
|
136
|
|
|
34,124
|
|
Accounts receivable, net
|
|
183,167
|
|
|
165,602
|
|
Inventories
|
|
117,686
|
|
|
99,445
|
|
Prepaid expenses and other current assets
|
|
44,389
|
|
|
46,332
|
|
Total current assets
|
|
602,011
|
|
|
647,145
|
|
Property, plant and equipment, net
|
|
111,416
|
|
|
100,669
|
|
Long-term marketable securities
|
|
2,939
|
|
|
2,845
|
|
Long-term deferred tax assets
|
|
3,489
|
|
|
5,064
|
|
Goodwill
|
|
500,062
|
|
|
488,602
|
|
Intangible assets, net
|
|
226,623
|
|
|
251,168
|
|
Other assets
|
|
57,377
|
|
|
20,506
|
|
Total assets
|
$
|
1,503,917
|
|
$
|
1,515,999
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Current portion of long-term debt
|
$
|
828
|
|
$
|
829
|
|
Accounts payable
|
|
70,344
|
|
|
58,919
|
|
Deferred revenue
|
|
31,162
|
|
|
29,435
|
|
Accrued warranty and retrofit costs
|
|
7,881
|
|
|
7,175
|
|
Accrued compensation and benefits
|
|
33,847
|
|
|
31,375
|
|
Accrued restructuring costs
|
|
437
|
|
|
1,040
|
|
Accrued income taxes payable
|
|
16,253
|
|
|
99,263
|
|
Accrued expenses and other current liabilities
|
|
45,053
|
|
|
44,234
|
|
Total current liabilities
|
|
205,805
|
|
|
272,270
|
|
Long-term debt
|
|
49,563
|
|
|
50,315
|
|
Long-term tax reserves
|
|
19,609
|
|
|
18,274
|
|
Long-term deferred tax liabilities
|
|
10,613
|
|
|
20,636
|
|
Long-term pension liabilities
|
|
5,724
|
|
|
5,338
|
|
Long-term operating lease liabilities
|
|
29,280
|
|
|
—
|
|
Other long-term liabilities
|
|
8,470
|
|
|
10,212
|
|
Total liabilities
|
|
329,064
|
|
|
377,045
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par value - 125,000,000 shares authorized, 87,222,115 shares issued and 73,760,246 shares outstanding at June 30, 2020, 85,759,700 shares issued and 72,297,831 shares outstanding at September 30, 2019
|
|
872
|
|
|
857
|
|
Additional paid-in capital
|
|
1,936,619
|
|
|
1,921,954
|
|
Accumulated other comprehensive income
|
|
10,977
|
|
|
3,511
|
|
Treasury stock at cost - 13,461,869 shares
|
|
(200,956)
|
|
|
(200,956)
|
|
Accumulated deficit
|
|
(572,659)
|
|
|
(586,412)
|
|
Total stockholders' equity
|
|
1,174,853
|
|
|
1,138,954
|
|
Total liabilities and stockholders' equity
|
$
|
1,503,917
|
|
$
|
1,515,999
|
|
BROOKS AUTOMATION, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
(In thousands)
|
|
|
Nine Months Ended
|
|
June 30,
|
|
2020
|
|
2019
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
$
|
35,880
|
|
$
|
25,090
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
49,760
|
|
|
40,429
|
|
Impairment of property, plant and equipment
|
|
301
|
|
|
—
|
|
Stock-based compensation
|
|
12,348
|
|
|
15,172
|
|
Amortization of premium on marketable securities and deferred financing costs
|
|
177
|
|
|
766
|
|
Earnings of equity method investments
|
|
—
|
|
|
(4,876)
|
|
Deferred income taxes
|
|
(9,319)
|
|
|
(9,207)
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
9,051
|
|
Other gains on disposals of assets
|
|
163
|
|
|
156
|
|
Loss on sale of divestiture, net of tax
|
|
319
|
|
|
—
|
|
Taxes paid stemming from divestiture
|
|
(91,500)
|
|
|
—
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
Accounts receivable
|
|
(15,719)
|
|
|
(6,456)
|
|
Inventories
|
|
(17,695)
|
|
|
(6,431)
|
|
Prepaid expenses and current assets
|
|
12,554
|
|
|
2,109
|
|
Accounts payable
|
|
11,032
|
|
|
(6,761)
|
|
Deferred revenue
|
|
214
|
|
|
4,959
|
|
Accrued warranty and retrofit costs
|
|
580
|
|
|
1,022
|
|
Accrued compensation and tax withholdings
|
|
1,928
|
|
|
(9,404)
|
|
Accrued restructuring costs
|
|
(609)
|
|
|
(361)
|
|
Proceeds from recovery on insurance claim
|
|
—
|
|
|
1,082
|
|
Accrued expenses and current liabilities
|
|
(4,347)
|
|
|
1,901
|
|
Net cash (used in) provided by operating activities
|
|
(13,933)
|
|
|
58,241
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(29,685)
|
|
|
(15,548)
|
|
Purchases of marketable securities
|
|
(10,843)
|
|
|
(1,290)
|
|
Sales of marketable securities
|
|
2,492
|
|
|
48,904
|
|
Maturities of marketable securities
|
|
42,226
|
|
|
2,557
|
|
Acquisitions, net of cash acquired
|
|
(15,743)
|
|
|
(442,704)
|
|
Purchase of other investment
|
|
(1,000)
|
|
|
—
|
|
Net cash used in investing activities
|
|
(12,553)
|
|
|
(408,081)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds from term loans, net of discount
|
|
—
|
|
|
686,386
|
|
Proceeds from issuance of common stock
|
|
2,332
|
|
|
1,548
|
|
Payments of financing costs
|
|
—
|
|
|
(687)
|
|
Principal payments on debt
|
|
(828)
|
|
|
(354,940)
|
|
Payments of capital leases
|
|
(957)
|
|
|
(849)
|
|
Common stock dividends paid
|
|
(22,127)
|
|
|
(21,658)
|
|
Net cash (used in) provided by financing activities
|
|
(21,580)
|
|
|
309,800
|
|
Effects of exchange rate changes on cash and cash equivalents
|
|
3,095
|
|
|
(816)
|
|
Net decrease in cash and cash equivalents
|
|
(44,971)
|
|
|
(40,856)
|
|
Cash and cash equivalents and restricted cash, beginning of period
|
|
305,171
|
|
|
197,708
|
|
Cash and cash equivalents and restricted cash, end of period
|
$
|
260,200
|
|
$
|
156,852
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
256,633
|
|
$
|
156,802
|
|
Restricted cash included in prepaid expenses and other current assets
|
|
3,567
|
|
|
50
|
|
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows
|
$
|
260,200
|
|
$
|
156,852
|
Notes on Non-GAAP Financial Measures:
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 adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
|
|
|
Quarter Ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
|
|
|
per diluted
|
|
|
|
per diluted
|
|
|
|
per diluted
|
|
Dollars in thousands, except per share data
|
|
$
|
|
share
|
|
$
|
|
share
|
|
$
|
|
share
|
|
Net income from continuing operations
|
|
$
|
13,696
|
|
$
|
0.19
|
|
$
|
9,192
|
|
$
|
0.12
|
|
$
|
921
|
|
$
|
0.01
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
10,390
|
|
|
0.14
|
|
|
10,355
|
|
|
0.14
|
|
|
9,050
|
|
|
0.12
|
|
Restructuring charges
|
|
|
(29)
|
|
|
(0.00)
|
|
|
578
|
|
|
0.01
|
|
|
256
|
|
|
0.00
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Merger costs
|
|
|
10
|
|
|
0.00
|
|
|
279
|
|
|
0.00
|
|
|
156
|
|
|
0.00
|
|
Restructuring related charges
|
|
|
301
|
|
|
0.00
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tax Reform (1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,281
|
|
|
0.06
|
|
Tax adjustments (1)
|
|
|
1,502
|
|
|
0.02
|
|
|
1,046
|
|
|
0.01
|
|
|
974
|
|
|
0.01
|
|
Tax effect of adjustments
|
|
|
(2,561)
|
|
|
(0.03)
|
|
|
(2,997)
|
|
|
(0.04)
|
|
|
(1,345)
|
|
|
(0.02)
|
|
Non-GAAP adjusted net income from continuing operations
|
|
$
|
23,309
|
|
$
|
0.32
|
|
$
|
18,453
|
|
$
|
0.25
|
|
$
|
14,293
|
|
$
|
0.20
|
|
Stock based compensation, pre-tax
|
|
|
3,725
|
|
|
0.05
|
|
|
4,214
|
|
|
0.06
|
|
|
5,277
|
|
|
0.07
|
|
Tax rate
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
Stock-based compensation, net of tax
|
|
|
3,166
|
|
|
0.04
|
|
|
3,582
|
|
|
0.05
|
|
|
4,485
|
|
|
0.06
|
|
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations
|
|
$
|
26,475
|
|
$
|
0.36
|
|
$
|
22,035
|
|
$
|
0.30
|
|
$
|
18,778
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
73,860
|
|
|
—
|
|
|
73,789
|
|
|
—
|
|
|
72,470
|
|
|
|
|
Nine Months Ended
|
|
|
June 30, 2020
|
|
June 30, 2019
|
|
|
|
|
per diluted
|
|
|
|
per diluted
|
|
Dollars in thousands, except per share data
|
|
$
|
|
share
|
|
$
|
|
share
|
|
Net income from continuing operations
|
|
$
|
36,062
|
|
$
|
0.49
|
|
$
|
4,359
|
|
$
|
0.06
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
Purchase accounting impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
0.00
|
|
Amortization of intangible assets
|
|
|
31,331
|
|
|
0.42
|
|
|
26,230
|
|
|
0.36
|
|
Restructuring related charges
|
|
|
301
|
|
|
|
|
|
—
|
|
|
|
|
Restructuring charges
|
|
|
1,125
|
|
|
0.02
|
|
|
685
|
|
|
0.01
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
9,051
|
|
|
0.13
|
|
Merger costs
|
|
|
484
|
|
|
0.01
|
|
|
6,546
|
|
|
0.09
|
|
Tax Reform - rate change applied to deferred tax liabilities (2)
|
|
|
—
|
|
|
—
|
|
|
1,796
|
|
|
0.02
|
|
Tax adjustments (1)
|
|
|
(2,789)
|
|
|
(0.04)
|
|
|
(1,275)
|
|
|
(0.02)
|
|
Tax effect of adjustments
|
|
|
(8,113)
|
|
|
(0.11)
|
|
|
(9,122)
|
|
|
(0.13)
|
|
Non-GAAP adjusted net income from continuing operations
|
|
$
|
58,401
|
|
$
|
0.79
|
|
$
|
38,454
|
|
$
|
0.53
|
|
Stock-based compensation, pre-tax
|
|
|
12,348
|
|
|
0.17
|
|
|
14,574
|
|
|
0.20
|
|
Tax rate
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
Stock-based compensation, net of tax
|
|
|
10,496
|
|
$
|
0.14
|
|
|
12,388
|
|
|
0.17
|
|
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations
|
|
$
|
68,897
|
|
$
|
0.93
|
|
$
|
50,842
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
73,766
|
|
|
—
|
|
|
72,313
|
|
|
|
(1)
|
The Company elected to apply the tax benefit related to the stock compensation windfall realized in the quarters ended December 31, 2019 and 2018 to the non-GAAP full year tax rate. The Company elected to exclude a deferred tax benefit realized in the three month period ended December 31, 2019 related to the extension of the 15 percent tax rate incentive in China.
|
|
(2)
|
Adjustments are related to U.S. Federal Tax Reform Transition Tax.
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
GAAP net income
|
|
$
|
13,696
|
|
$
|
9,127
|
|
$
|
7,254
|
|
$
|
35,880
|
|
$
|
25,090
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss (income) from discontinued operations
|
|
|
—
|
|
|
65
|
|
|
(6,333)
|
|
|
182
|
|
|
(20,731)
|
|
Less: Interest income
|
|
|
(29)
|
|
|
(137)
|
|
|
(108)
|
|
|
(865)
|
|
|
(847)
|
|
Add: Interest expense
|
|
|
810
|
|
|
718
|
|
|
8,041
|
|
|
2,265
|
|
|
21,348
|
|
Add: Income tax benefit
|
|
|
5,120
|
|
|
3,400
|
|
|
7,260
|
|
|
5,557
|
|
|
400
|
|
Add: Depreciation
|
|
|
6,290
|
|
|
6,247
|
|
|
5,037
|
|
|
18,429
|
|
|
14,196
|
|
Add: Amortization of completed technology
|
|
|
2,779
|
|
|
2,740
|
|
|
2,863
|
|
|
8,194
|
|
|
7,661
|
|
Add: Amortization of customer relationships and acquired intangible assets
|
|
|
7,611
|
|
|
7,615
|
|
|
6,187
|
|
|
23,137
|
|
|
18,569
|
|
Add: Loss on extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,051
|
|
Earnings before interest, taxes, depreciation and amortization
|
|
$
|
36,277
|
|
$
|
29,775
|
|
$
|
30,201
|
|
$
|
92,779
|
|
$
|
74,737
|
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Earnings before interest, taxes, depreciation and amortization
|
|
$
|
36,277
|
|
$
|
29,775
|
|
$
|
30,201
|
|
$
|
92,779
|
|
$
|
74,737
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Stock-based compensation
|
|
|
3,725
|
|
|
4,214
|
|
|
5,277
|
|
|
12,348
|
|
|
14,574
|
|
Add: Restructuring charges
|
|
|
(29)
|
|
|
578
|
|
|
256
|
|
|
1,125
|
|
|
685
|
|
Add: Restructuring related charges
|
|
|
301
|
|
|
—
|
|
|
|
|
|
301
|
|
|
|
|
Add: Purchase accounting impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
Add: Merger costs
|
|
|
10
|
|
|
279
|
|
|
156
|
|
|
484
|
|
|
6,546
|
|
Adjusted earnings before interest, taxes, depreciation and amortization
|
|
$
|
40,284
|
|
$
|
34,846
|
|
$
|
35,890
|
|
$
|
107,037
|
|
$
|
96,726
|
|
|
|
|
Quarter Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
GAAP gross profit/margin percentage
|
|
$
|
92,788
|
|
42.1
|
%
|
|
$
|
90,281
|
|
41.0
|
%
|
|
$
|
83,510
|
|
41.0
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
2,779
|
|
1.3
|
|
|
|
2,740
|
|
1.2
|
|
|
|
2,863
|
|
1.4
|
|
|
Restructuring related charges
|
|
|
301
|
|
0.1
|
|
|
|
—
|
|
0.0
|
|
|
|
—
|
|
0.0
|
|
|
Non-GAAP adjusted gross profit/gross margin percentage
|
|
$
|
95,868
|
|
43.5
|
%
|
|
$
|
93,021
|
|
42.2
|
%
|
|
$
|
86,373
|
|
42.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
GAAP gross profit/margin percentage
|
|
$
|
268,055
|
|
41.2
|
%
|
|
$
|
236,106
|
|
40.6
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
8,194
|
|
1.3
|
|
|
|
7,661
|
|
1.3
|
|
|
Purchase accounting impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
184
|
|
0.0
|
|
|
Restructuring related charges
|
|
|
301
|
|
0.0
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross profit/gross margin percentage
|
|
$
|
276,550
|
|
42.5
|
%
|
|
$
|
243,951
|
|
41.9
|
%
|
|
|
Brooks Semiconductor Solutions Group
|
|
|
Quarter Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
GAAP gross profit/margin percentage
|
|
$
|
53,524
|
|
42.1
|
%
|
|
$
|
48,637
|
|
38.9
|
%
|
|
$
|
47,493
|
|
40.9
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
717
|
|
0.6
|
|
|
|
722
|
|
0.6
|
|
|
|
879
|
|
0.8
|
|
|
Non-GAAP adjusted gross profit/margin percentage
|
|
$
|
54,241
|
|
42.7
|
%
|
|
$
|
49,359
|
|
39.5
|
%
|
|
$
|
48,372
|
|
41.7
|
%
|
|
|
|
Brooks Life Sciences
|
|
|
Quarter Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
GAAP gross profit/margin percentage
|
|
$
|
39,264
|
|
42.1
|
%
|
|
$
|
41,663
|
|
43.7
|
%
|
|
$
|
36,017
|
|
41.0
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
2,063
|
|
2.2
|
|
|
|
2,017
|
|
2.1
|
|
|
|
1,984
|
|
2.3
|
|
|
Restructuring related charges
|
|
|
301
|
|
0.3
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross profit/margin percentage
|
|
$
|
41,628
|
|
44.6
|
%
|
|
$
|
43,680
|
|
45.8
|
%
|
|
$
|
38,001
|
|
43.3
|
%
|
|
|
|
Brooks Semiconductor Solutions Group
|
|
|
Nine Months Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
GAAP gross profit/margin percentage
|
|
$
|
148,443
|
|
40.0
|
%
|
|
$
|
139,393
|
|
40.8
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
2,172
|
|
0.6
|
|
|
|
2,732
|
|
0.8
|
|
|
Purchase accounting impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
184
|
|
0.1
|
|
|
Non-GAAP adjusted gross profit/margin percentage
|
|
$
|
150,615
|
|
40.6
|
%
|
|
$
|
142,309
|
|
41.7
|
%
|
|
|
|
Brooks Life Sciences
|
|
|
Nine Months Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
GAAP gross profit/margin percentage
|
|
$
|
119,612
|
|
42.7
|
%
|
|
$
|
96,713
|
|
40.3
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
6,022
|
|
2.1
|
|
|
|
4,928
|
|
2.1
|
|
|
Restructuring related charges
|
|
|
301
|
|
0.1
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross profit/margin percentage
|
|
$
|
125,935
|
|
44.9
|
%
|
|
$
|
101,641
|
|
42.3
|
%
|
|
|
Brooks Semiconductor Solutions Group
|
|
Brooks Life Sciences
|
|
Total Segments
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
GAAP operating profit
|
|
$
|
22,697
|
|
$
|
15,984
|
|
$
|
19,322
|
|
$
|
4,227
|
|
$
|
6,100
|
|
$
|
4,202
|
|
$
|
26,924
|
|
$
|
22,084
|
|
$
|
23,524
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
717
|
|
|
722
|
|
|
879
|
|
|
2,063
|
|
|
2,017
|
|
|
1,984
|
|
|
2,780
|
|
|
2,739
|
|
|
2,863
|
|
Restructuring related charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted operating profit
|
|
$
|
23,414
|
|
$
|
16,706
|
|
$
|
20,201
|
|
$
|
6,591
|
|
$
|
8,117
|
|
$
|
6,186
|
|
$
|
30,005
|
|
$
|
24,823
|
|
$
|
26,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segments
|
|
Corporate
|
|
Total
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
GAAP operating profit (loss)
|
|
$
|
26,924
|
|
$
|
22,084
|
|
$
|
23,524
|
|
$
|
(7,825)
|
|
$
|
(7,512)
|
|
$
|
(7,101)
|
|
$
|
19,099
|
|
$
|
14,572
|
|
$
|
16,423
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
2,780
|
|
|
2,739
|
|
|
2,863
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,780
|
|
|
2,739
|
|
|
2,863
|
|
Amortization of customer relationships and acquired intangible assets
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,611
|
|
|
7,615
|
|
|
6,187
|
|
|
7,611
|
|
|
7,615
|
|
|
6,187
|
|
Restructuring charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29)
|
|
|
578
|
|
|
256
|
|
|
(29)
|
|
|
578
|
|
|
256
|
|
Merger costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
279
|
|
|
156
|
|
|
10
|
|
|
279
|
|
|
156
|
|
Restructuring related charges
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
301
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted operating profit (loss)
|
|
$
|
30,005
|
|
$
|
24,823
|
|
$
|
26,387
|
|
$
|
(233)
|
|
$
|
960
|
|
$
|
(502)
|
|
$
|
29,772
|
|
$
|
25,783
|
|
$
|
25,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions Group
|
|
Brooks Life Sciences
|
|
Total Segments
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|
GAAP operating profit
|
|
$
|
52,949
|
|
$
|
53,450
|
|
$
|
14,359
|
|
$
|
8,936
|
|
$
|
67,308
|
|
$
|
62,386
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
2,172
|
|
|
2,732
|
|
|
6,022
|
|
|
4,928
|
|
|
8,194
|
|
|
7,661
|
|
Purchase accounting impact on inventory and contracts acquired
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
Restructuring related charges
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
301
|
|
|
—
|
|
Non-GAAP adjusted operating profit
|
|
$
|
55,121
|
|
$
|
56,366
|
|
$
|
20,682
|
|
$
|
13,864
|
|
$
|
75,803
|
|
$
|
70,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segments
|
|
Corporate
|
|
Total
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|
GAAP operating profit (loss)
|
|
$
|
67,308
|
|
$
|
62,386
|
|
$
|
(22,971)
|
|
$
|
(26,959)
|
|
$
|
44,337
|
|
$
|
35,427
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology
|
|
|
8,194
|
|
|
7,661
|
|
|
—
|
|
|
—
|
|
|
8,194
|
|
|
7,661
|
|
Amortization of customer relationships and acquired intangible assets
|
|
|
—
|
|
|
—
|
|
|
23,137
|
|
|
18,569
|
|
|
23,137
|
|
|
18,569
|
|
Restructuring charges
|
|
|
—
|
|
|
—
|
|
|
1,125
|
|
|
685
|
|
|
1,125
|
|
|
685
|
|
Purchase accounting impact on inventory and contracts acquired
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
Merger costs
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|
6,546
|
|
|
484
|
|
|
6,546
|
|
Restructuring related charges
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
Non-GAAP adjusted operating profit (loss)
|
|
$
|
75,803
|
|
$
|
70,231
|
|
$
|
1,775
|
|
$
|
(1,159)
|
|
$
|
77,578
|
|
$
|
69,072
|
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SOURCE Brooks Automation