EX-99.1 2 brks-20200430ex99115325c.htm EX-99.1 Ex99_1_Current_Folio_Q1s

Exhibit 99.1

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Brooks Automation Reports Results of its Second Quarter of Fiscal 2020, Ended March 31, 2020, and Announces Quarterly Cash Dividend

 

Double-digit Revenue Growth in Both Segments Supports High Growth in EPS

 

 

CHELMSFORD, Mass., April 30, 2020 (PR Newswire) -- Brooks Automation, Inc. (Nasdaq: BRKS), today reported financial results for the second fiscal quarter, ended March 31, 2020.

 

 

Financial Results Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

 

 

Dollars in millions, except per share data

 

March 31, 

 

December 31,

 

 

March 31, 

 

Change vs.

 

 

 

 

 

2020

 

2019

 

 

2019

 

Prior Qtr

 

Prior Year

 

 

 

Revenue

    

$

220

    

$

210

 

    

$

198

 

 5

%

11

%

 

 

Semiconductor Solutions

 

$

125

 

$

119

 

 

$

113

 

 5

%

11

%

 

 

Life Sciences

 

$

95

 

$

92

 

 

$

86

 

 4

%

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS Continuing Operations

 

$

0.12

 

$

0.18

 

 

$

(0.04)

 

(30)

%

NM

 

 

 

Diluted EPS Total

 

$

0.12

 

$

0.18

 

 

$

0.05

 

(30)

%

161

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Diluted EPS Cont. Operations

 

$

0.25

 

$

0.23

 

 

$

0.17

 

11

%

48

%

 

 

 

 

Management Comments

“We performed well in the second quarter as we met our customers’ needs in each business,” commented Steve Schwartz, CEO of Brooks Automation.  “Our Life Sciences business overcame some COVID-19 headwinds at various stages of the quarter, including temporary closure of our China operations.  Despite the challenges, our dedicated team delivered strong growth across both businesses.  We are particularly proud that our Life Sciences products and services have satisfied urgent demand from our customers involved with COVID-19 research.  Strong demand for our Semiconductor products continued throughout the quarter as chip manufacturers maintained their spending plans.” 

 

Summary of GAAP Results for Continuing Operations

·

Revenue of $220 million grew 11% year over year and diluted EPS from continuing operations was $0.12 per share compared to a loss of ($0.04) per share in the second quarter of 2019. 

·

Life Sciences revenue of $95 million grew 11% year over year and 4% sequentially.  Year-over-year organic growth was 11%.

·

Semiconductor Solutions revenue was $125 million, an increase of 11% year over year and 5% sequentially.  Increased shipments for Automation Systems and another record revenue quarter from Contamination Control Solutions drove the sequential growth.

·

GAAP operating income was $15 million, compared to $14 million in the second quarter of 2019. The increase was driven by higher revenue and a 40 basis point improvement in gross margins.  GAAP operating margins were lower in the second quarter, compared with the prior year, on higher R&D and SG&A expense.     

·

Net interest expense was $0.6 million for the quarter, a $7.1 million reduction from the second quarter of 2019.

 

Summary of Non-GAAP Results for Continuing Operations

·

Diluted EPS from continuing operations for the second quarter was $0.25, up 11% from the first quarter of 2020 and up 48% over the prior year.  

·

Operating income was $26 million, an increase of 10% year over year and 17% sequentially.  Sequential revenue growth of 5% and gross margin improvement of 60 basis points drove the higher operating margin higher by 120 basis points.

·

Gross margin was 42.2%, an increase of 20 basis points from the second quarter of 2019 and 60 basis points from the first quarter of 2020.  Continued gross margin expansion in Life Sciences drove the improvement year over year and sequentially. 

·

Life Sciences operating margin was 8.5%, up 260 basis points year over year and 200 basis points sequentially.  Gross margin performance of 45.8%, up 330 basis points year over year and 150 basis points sequentially, was the primary driver.  Sample Management gross margin improvement of 570 basis points year over year was the primary driver.  Year-over-year improvement was evident in each product area of large stores systems, cryogenic systems, BioStorage services, and consumables.

·

The Semiconductor Solutions operating margin was 13.4%, a decline of 340 basis points from the prior year and up 70 basis points from the first quarter of 2020.  A heavier mix of revenue from Tier 1 customers resulted in softer gross margins in the quarter.  Sequential revenue growth of 5% with stable gross margins contributed to the sequential operating margin expansion.   

·

Adjusted EBITDA was $34.8 million, up 6% from the second quarter of 2019 and 9% 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 ($66) million for the second quarter.  During the quarter the Company paid $92 million to settle taxes related to the 2019 gain on sale of the Semiconductor Cryogenics business.  Excluding this payment, cash flow from operations was $26 million.  On a year-to-date basis, the cash flow from operations, excluding the noted tax payments, was $51 million, an increase of $29 million compared to the first half of the 2019 fiscal year. 

·

During the quarter, the Company acquired RURO, Inc, a life sciences informatics company, for a cash purchase price of approximately $16 million, net of cash acquired.  The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $249 million.  With total debt of $51 million, net cash was $198 million.

 

Quarterly Cash Dividend

The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 26, 2020 to stockholders of record on June 5, 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.

2

 

Guidance for Third Quarter Fiscal 2020

The Company announced revenue and earnings guidance for the third quarter of fiscal 2020.  Revenue is expected to be in the range of $200 million to $215 million and non-GAAP diluted earnings per share is expected to be in the range of $0.16 to $0.24.  GAAP diluted earnings per share for the third fiscal quarter is expected to be in the range of $0.04 to $0.12.

 

Conference Call and Webcast

Brooks management will webcast its second 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 800-906-5934 (US & Canada only) or +1-212-231-2904 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

3

on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.

 

About Brooks Automation
Brooks 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

 

 

 

 

 

 

 

4

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 (In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

March 31, 

 

 

March 31, 

 

 

2020

 

2019

 

 

2020

 

2019

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

139,144

    

$

128,056

 

 

$

271,006

    

$

253,430

 

Services

 

81,083

 

 

70,334

 

 

 

159,721

 

 

124,327

 

Total revenue

 

220,227

 

 

198,390

 

 

 

430,727

 

 

377,757

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

83,970

 

 

77,803

 

 

 

163,941

 

 

152,376

 

Services

 

45,976

 

 

40,071

 

 

 

91,519

 

 

72,785

 

Total cost of revenue

 

129,946

 

 

117,874

 

 

 

255,460

 

 

225,161

 

Gross profit

 

90,281

 

 

80,516

 

 

 

175,267

 

 

152,596

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

15,322

 

 

14,101

 

 

 

29,723

 

 

27,249

 

Selling, general and administrative

 

59,809

 

 

52,373

 

 

 

119,152

 

 

105,914

 

Restructuring charges

 

578

 

 

370

 

 

 

1,154

 

 

429

 

Total operating expenses

 

75,709

 

 

66,844

 

 

 

150,029

 

 

133,592

 

Operating income

 

14,572

 

 

13,672

 

 

 

25,238

 

 

19,004

 

Interest income

 

137

 

 

316

 

 

 

836

 

 

739

 

Interest expense

 

(718)

 

 

(8,018)

 

 

 

(1,455)

 

 

(13,308)

 

Loss on extinguishment of debt

 

 —

 

 

(9,051)

 

 

 

 —

 

 

(9,051)

 

Other expenses, net

 

(1,399)

 

 

(778)

 

 

 

(1,816)

 

 

(807)

 

Income (loss) before income taxes

 

12,592

 

 

(3,859)

 

 

 

22,803

 

 

(3,423)

 

Income tax benefit

 

3,400

 

 

(1,030)

 

 

 

437

 

 

(6,860)

 

Income (loss) from continuing operations

 

9,192

 

 

(2,829)

 

 

 

22,366

 

 

3,437

 

(Loss) income from discontinued operations, net of tax

 

(65)

 

 

6,250

 

 

 

(182)

 

 

14,399

 

Net income

$

9,127

 

$

3,421

 

 

$

22,184

 

$

17,836

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

0.12

 

$

(0.04)

 

 

$

0.30

 

$

0.05

 

(Loss) income from discontinued operations, net of tax

 

(0.00)

 

 

0.09

 

 

 

(0.00)

 

 

0.20

 

Basic net income per share

$

0.12

 

$

0.05

 

 

$

0.30

 

$

0.25

 

Diluted net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

0.12

 

$

(0.04)

 

 

$

0.30

 

$

0.05

 

(Loss) income from discontinued operations, net of tax

 

(0.00)

 

 

0.09

 

 

 

(0.00)

 

 

0.20

 

Diluted net income per share

$

0.12

 

$

0.05

 

 

$

0.30

 

$

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding used in computing net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

73,708

 

 

72,077

 

 

 

73,331

 

 

71,760

 

Diluted

 

73,789

 

 

72,292

 

 

 

73,752

 

 

72,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

 (In thousands, except share and per share data)

 

 

 

 

 

 

 

March 31, 

 

September 30,

 

2020

 

2019

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

$

242,274

    

$

301,642

Marketable securities

 

162

 

 

34,124

Accounts receivable, net

 

179,014

 

 

165,602

Inventories

 

107,699

 

 

99,445

Prepaid expenses and other current assets

 

43,379

 

 

46,332

Total current assets

 

572,528

 

 

647,145

Property, plant and equipment, net

 

108,744

 

 

100,669

Long-term marketable securities

 

2,555

 

 

2,845

Long-term deferred tax assets

 

5,080

 

 

5,064

Goodwill

 

498,502

 

 

488,602

Intangible assets, net

 

236,095

 

 

251,168

Other assets

 

55,827

 

 

20,506

Total assets

$

1,479,331

 

$

1,515,999

Liabilities and Stockholders' Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Current portion of long-term debt

$

828

 

$

829

Accounts payable

 

63,958

 

 

58,919

Deferred revenue

 

29,090

 

 

29,435

Accrued warranty and retrofit costs

 

7,910

 

 

7,175

Accrued compensation and benefits

 

31,220

 

 

31,375

Accrued restructuring costs

 

935

 

 

1,040

Accrued income taxes payable

 

9,134

 

 

99,263

Accrued expenses and other current liabilities

 

53,960

 

 

44,234

Total current liabilities

 

197,035

 

 

272,270

Long-term debt

 

49,951

 

 

50,315

Long-term tax reserves

 

18,841

 

 

18,274

Long-term deferred tax liabilities

 

12,190

 

 

20,636

Long-term pension liabilities

 

5,594

 

 

5,338

Long-term operating lease liabilities

 

27,233

 

 

 —

Other long-term liabilities

 

7,354

 

 

10,212

Total liabilities

 

318,198

 

 

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, 87,214,622 shares issued and 73,752,753 shares outstanding at March 31, 2020, 85,759,700 shares issued and 72,297,831 shares outstanding at September 30, 2019

 

872

 

 

857

Additional paid-in capital

 

1,932,893

 

 

1,921,954

Accumulated other comprehensive income

 

7,299

 

 

3,511

Treasury stock at cost - 13,461,869 shares

 

(200,956)

 

 

(200,956)

Accumulated deficit

 

(578,975)

 

 

(586,412)

Total stockholders' equity

 

1,161,133

 

 

1,138,954

Total liabilities and stockholders' equity

$

1,479,331

 

$

1,515,999

 

 

 

 

 

 

 

 

 

 

 

 

6

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

 

 

 

 

 

 

 

Six Months Ended

 

March 31, 

 

2020

 

2019

Cash flows from operating activities

 

 

 

 

 

Net income

$

22,184

    

$

17,836

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

33,079

 

 

26,339

Stock-based compensation

 

8,624

 

 

9,717

Amortization of premium on marketable securities and deferred financing costs

 

94

 

 

556

Earnings of equity method investments

 

 —

 

 

(3,041)

Deferred income taxes

 

(9,477)

 

 

(12,472)

Loss on extinguishment of debt

 

 —

 

 

9,051

Other gains on disposals of assets

 

125

 

 

34

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

 

(12,670)

 

 

(9,654)

Inventories

 

(9,094)

 

 

(9,992)

Prepaid expenses and current assets

 

5,374

 

 

1,938

Accounts payable

 

5,807

 

 

(6,088)

Deferred revenue

 

(1,478)

 

 

5,410

Accrued warranty and retrofit costs

 

735

 

 

740

Accrued compensation and tax withholdings

 

(522)

 

 

(11,123)

Accrued restructuring costs

 

(112)

 

 

(57)

Proceeds from recovery on insurance claim

 

 —

 

 

886

Accrued expenses and current liabilities

 

8,455

 

 

2,149

Net cash (used in) provided by operating activities

 

(40,057)

 

 

22,229

Cash flows from investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(21,170)

 

 

(9,676)

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

 

(4,038)

 

 

(402,209)

Cash flows from financing activities

 

 

 

 

 

Proceeds from term loans, net of discount

 

 —

 

 

686,386

Proceeds from issuance of common stock

 

2,330

 

 

1,548

Payments of financing costs

 

 —

 

 

(687)

Principal payments on debt

 

(414)

 

 

(352,289)

Payments of capital leases

 

(639)

 

 

(487)

Common stock dividends paid

 

(14,747)

 

 

(14,429)

Net cash (used in) provided by financing activities

 

(13,470)

 

 

320,042

Effects of exchange rate changes on cash and cash equivalents

 

(1,803)

 

 

(553)

Net decrease in cash and cash equivalents

 

(59,368)

 

 

(60,491)

Cash and cash equivalents and restricted cash, beginning of period

 

305,171

 

 

197,708

Cash and cash equivalents and restricted cash, end of period

$

245,803

 

$

137,217

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets

 

 

 

 

 

Cash and cash equivalents

$

242,274

 

$

137,168

Restricted cash included in prepaid expenses and other current assets

 

3,529

 

 

49

Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows

$

245,803

 

$

137,217

7

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. In this context, the Company has also removed the effect of reversing the valuation allowance reserve on the U.S. deferred income tax assets.  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

 

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

 

 

 

 

per diluted

 

 

 

per diluted

 

 

 

per diluted

Dollars in thousands, except per share data    

 

$

 

share

 

$

 

share

 

$

 

share

Net income from continuing operations

    

$

9,192

    

$

0.12

    

$

13,174

    

$

0.18

    

$

(2,829)

    

$

(0.04)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

10,355

 

 

0.14

 

 

10,584

 

 

0.14

 

 

9,405

 

 

0.13

Restructuring charges

 

 

578

 

 

0.01

 

 

576

 

 

0.01

 

 

370

 

 

0.01

Loss on extinguishment of debt

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

9,051

 

 

0.13

Merger costs

 

 

279

 

 

0.00

 

 

195

 

 

0.00

 

 

36

 

 

0.00

Tax adjustments (1)

 

 

1,046

 

 

0.01

 

 

(5,230)

 

 

(0.07)

 

 

803

 

 

0.01

Tax effect of adjustments 

 

 

(2,997)

 

 

(0.04)

 

 

(2,662)

 

 

(0.04)

 

 

(4,593)

 

 

(0.06)

Non-GAAP adjusted net income from continuing operations

 

$

18,453

 

$

0.25

 

$

16,637

 

$

0.23

 

$

12,243

 

$

0.17

  Stock based compensation, pre-tax

 

 

4,214

 

 

0.06

 

 

4,410

 

 

0.06

 

 

5,121

 

 

0.07

  Tax rate

 

 

15

%

 

 

 

15

%

 

 

 

15

%

 

Stock-based compensation, net of tax

 

 

3,582

 

 

0.05

 

 

3,749

 

 

0.05

 

 

4,353

 

 

0.06

Non-GAAP adjusted net income excluding stock-based compensation - continuing operations

 

$

22,035

 

$

0.30

 

$

20,386

 

$

0.28

 

$

16,596

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing non-GAAP diluted net income per share

 

 

 

 

73,789

 

 

 

 

73,645

 

 

 

 

72,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

March 31, 2020

 

March 31, 2019

 

 

 

 

per diluted

 

 

 

per diluted

Dollars in thousands, except per share data    

 

$

 

share

 

$

 

share

Net income from continuing operations

    

$

22,366

    

$

0.30

    

$

3,437

    

$

0.05

Adjustments:

 

 

 

 

 

 

 

 

 —

 

 

 

Purchase accounting impact on inventory and contracts acquired

 

 

 —

 

 

 —

 

 

184

 

 

0.00

Amortization of intangible assets

 

 

20,940

 

 

0.28

 

 

17,180

 

 

0.24

Restructuring charges

 

 

1,154

 

 

0.02

 

 

429

 

 

0.01

Loss on extinguishment of debt

 

 

 —

 

 

 

 

9,051

 

 

Merger costs

 

 

473

 

 

0.01

 

 

6,390

 

 

0.09

Tax Reform - rate change applied to deferred tax liabilities (2)

 

 

 —

 

 

 —

 

 

(1,125)

 

 

(0.02)

Tax adjustments (1)

 

 

(4,167)

 

 

(0.06)

 

 

(3,608)

 

 

(0.05)

Tax effect of adjustments

 

 

(5,676)

 

 

(0.08)

 

 

(7,777)

 

 

(0.11)

Non-GAAP adjusted net income from continuing operations

 

$

35,090

 

$

0.48

 

$

24,161

 

$

0.33

Stock-based compensation, pre-tax

 

 

8,624

 

 

0.12

 

 

9,297

 

 

0.13

Tax rate

 

 

15

%

 

 

 

15

%

 

Stock-based compensation, net of tax

 

 

7,330

 

$

0.10

 

 

7,902

 

 

0.11

Non-GAAP adjusted net income excluding stock-based compensation - continuing operations

 

$

42,420

 

$

0.58

 

$

32,063

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing non-GAAP diluted net income per share

 

 

 

 

73,752

 

 

 

 

72,215

 

(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.

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

March 31, 

 

December 31,

 

March 31, 

 

March 31, 

 

March 31, 

Dollars in thousands

 

2020

 

2019

 

2019

 

2020

 

2019

GAAP net income

    

$

9,127

    

$

13,057

    

$

3,421

    

$

22,184

    

$

17,836

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Loss (income) from discontinued operations

 

 

65

 

 

117

 

 

(6,250)

 

 

182

 

 

(14,399)

Less: Interest income

 

 

(137)

 

 

(699)

 

 

(316)

 

 

(836)

 

 

(739)

Add: Interest expense

 

 

718

 

 

737

 

 

8,018

 

 

1,455

 

 

13,308

Add: Income tax benefit

 

 

3,400

 

 

(2,963)

 

 

(1,030)

 

 

437

 

 

(6,860)

Add: Depreciation

 

 

6,247

 

 

5,891

 

 

5,099

 

 

12,139

 

 

9,159

Add: Amortization of completed technology

 

 

2,740

 

 

2,674

 

 

2,791

 

 

5,415

 

 

4,798

Add: Amortization of customer relationships and acquired intangible assets

 

 

7,615

 

 

7,910

 

 

6,614

 

 

15,525

 

 

12,382

Add: Loss on extinguishment of debt

 

 

 —

 

 

 —

 

 

9,051

 

 

 —

 

 

9,051

Earnings before interest, taxes, depreciation and amortization

 

$

29,775

 

$

26,724

 

$

27,398

 

$

56,501

 

$

44,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

March 31, 

 

December 31,

 

March 31, 

 

March 31, 

 

March 31, 

Dollars in thousands

 

2020

 

2019

 

2019

 

2020

 

2019

Earnings before interest, taxes, depreciation and amortization

    

$

29,775

    

$

26,724

    

$

27,398

    

$

56,501

    

$

44,536

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Stock-based compensation

 

 

4,214

 

 

4,410

 

 

5,121

 

 

8,624

 

 

9,297

Add: Restructuring charges

 

 

578

 

 

576

 

 

370

 

 

1,154

 

 

429

Add: Purchase accounting impact on inventory and contracts acquired

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

184

Add: Merger costs

 

 

279

 

 

195

 

 

36

 

 

473

 

 

6,390

Adjusted earnings before interest, taxes, depreciation and amortization

 

$

34,846

 

$

31,905

 

$

32,925

 

$

66,752

 

$

60,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Dollars in thousands

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

GAAP gross profit/margin percentage

    

$

90,281

    

41.0

%

    

$

84,986

    

40.4

%

    

$

80,516

    

40.6

%  

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

2,740

 

1.2

 

 

 

2,674

 

1.3

 

 

 

2,791

 

1.4

 

Non-GAAP adjusted gross profit/gross margin percentage

 

$

93,021

 

42.2

%  

 

$

87,660

 

41.6

%  

 

$

83,307

 

42.0

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

Dollars in thousands

 

March 31, 2020

 

March 31, 2019

GAAP gross profit/margin percentage

    

$

175,267

    

40.7

%  

    

$

152,596

    

40.4

%  

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

5,415

 

1.3

 

 

 

4,798

 

1.3

 

Purchase accounting impact on inventory and contracts acquired

 

 

 —

 

 —

 

 

 

184

 

0.0

 

Non-GAAP adjusted gross profit/gross margin percentage

 

$

180,682

 

41.9

%  

 

$

157,578

 

41.7

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brooks Semiconductor Solutions Group

 

 

Quarter Ended

Dollars in thousands

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

GAAP gross profit/margin percentage

    

$

48,637

    

38.9

%

 

$

46,300

    

39.0

%

 

$

45,987

    

40.7

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

722

 

0.6

 

 

 

732

 

0.6

 

 

 

916

 

0.8

 

Non-GAAP adjusted gross profit/margin percentage

 

$

49,359

 

39.5

%

 

$

47,032

 

39.6

%

 

$

46,903

 

41.6

%

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brooks Life Sciences

 

 

Quarter Ended

Dollars in thousands

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

GAAP gross profit/margin percentage

    

$

41,663

 

43.7

%

 

$

38,686

 

42.2

%

 

$

34,529

 

40.4

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

2,017

 

2.1

 

 

 

1,942

 

2.1

 

 

 

1,875

 

2.2

 

Non-GAAP adjusted gross profit/margin percentage

 

$

43,680

 

45.8

%

 

$

40,628

 

44.3

%

 

$

36,404

 

42.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brooks Semiconductor Solutions Group

 

 

Six Months Ended

Dollars in thousands

 

March 31, 2020

 

March 31, 2019

GAAP gross profit/margin percentage

 

$

94,936

    

39.0

%

 

$

91,901

    

40.7

%

Adjustments:

    

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

1,455

 

0.6

 

 

 

1,853

 

0.8

 

Purchase accounting impact on inventory and contracts acquired

 

 

 —

 

 —

 

 

 

184

 

0.1

 

Non-GAAP adjusted gross profit/margin percentage

 

$

96,391

 

39.5

%

 

$

93,938

 

41.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brooks Life Sciences

 

 

Six Months Ended

Dollars in thousands

 

March 31, 2020

 

March 31, 2019

GAAP gross profit/margin percentage

 

$

80,348

    

43.0

%

 

$

60,695

    

39.9

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

3,960

 

2.1

 

 

 

2,945

 

1.9

 

Non-GAAP adjusted gross profit/margin percentage

 

$

84,308

 

45.1

%

 

$

63,640

 

41.8

%

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brooks Semiconductor Solutions Group

 

Brooks Life Sciences

 

Total Segments

 

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

 

March 31, 

 

December 31,

 

March 31, 

 

March 31, 

 

December 31,

 

March 31, 

 

March 31, 

 

December 31,

 

March 31, 

Dollars in thousands

 

2020

 

2019

 

2019

 

2020

 

2019

 

2019

 

2020

 

2019

 

2019

GAAP operating profit

  

$

15,984

  

$

14,268

  

$

17,987

  

$

6,100

  

$

4,032

  

$

3,143

 

$

22,084

  

$

18,300

  

$

21,130

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

722

 

 

732

 

 

916

 

 

2,017

 

 

1,942

 

 

1,875

 

 

2,739

 

 

2,674

 

 

2,791

Non-GAAP adjusted operating profit

 

$

16,706

 

$

15,000

 

$

18,903

 

$

8,117

 

$

5,974

 

$

5,018

 

$

24,823

 

$

20,974

 

$

23,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Segments

 

Corporate

 

Total

 

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

 

March 31, 

 

December 31,

 

March 31, 

 

March 31, 

 

December 31,

 

March 31, 

 

March 31, 

 

December 31,

 

March 31, 

Dollars in thousands

 

2020

 

2019

 

2019

 

2020

 

2019

 

2019

 

2020

 

2019

 

2019

GAAP operating profit (loss)

  

$

22,084

  

$

18,300

  

$

21,130

  

$

(7,512)

  

$

(7,634)

  

$

(7,458)

  

$

14,572

  

$

10,666

  

$

13,672

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

2,739

 

 

2,674

 

 

2,791

 

 

 —

 

 

 —

 

 

 —

 

 

2,739

 

 

2,674

 

 

2,791

Amortization of customer relationships and acquired intangible assets

 

 

 —

 

 

 —

 

 

 —

 

 

7,615

 

 

7,910

 

 

6,614

 

 

7,615

 

 

7,910

 

 

6,614

Restructuring charges

 

 

 —

 

 

 —

 

 

 —

 

 

578

 

 

576

 

 

370

 

 

578

 

 

576

 

 

370

Merger costs

 

 

 —

 

 

 —

 

 

 —

 

 

279

 

 

195

 

 

36

 

 

279

 

 

195

 

 

36

Non-GAAP adjusted operating profit (loss)

 

$

24,823

 

$

20,974

 

$

23,921

 

$

960

 

$

1,047

 

$

(438)

 

$

25,783

 

$

22,021

 

$

23,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brooks Semiconductor Solutions Group

 

Brooks Life Sciences

 

Total Segments

 

 

Six Months Ended

 

Six Months Ended

 

Six Months Ended

Dollars in thousands

  

March 31, 2020

  

March 31, 2019

  

March 31, 2020

  

March 31, 2019

  

March 31, 2020

  

March 31, 2019

GAAP operating profit

 

$

30,252

 

$

34,128

 

$

10,132

 

$

4,733

 

$

40,384

 

$

38,861

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

1,455

 

 

1,853

 

 

3,960

 

 

2,945

 

 

5,415

 

 

4,798

Purchase accounting impact on inventory and contracts acquired

 

 

 —

 

 

184

 

 

 —

 

 

 —

 

 

 —

 

 

184

Non-GAAP adjusted operating profit

 

$

31,707

 

$

36,165

 

$

14,092

 

$

7,678

 

$

45,799

 

$

43,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Segments

 

Corporate

 

Total

 

 

Six Months Ended

 

Six Months Ended

 

Six Months Ended

Dollars in thousands

  

March 31, 2020

  

March 31, 2019

  

March 31, 2020

  

March 31, 2019

  

March 31, 2020

  

March 31, 2019

GAAP operating profit (loss)

 

$

40,384

 

$

38,861

 

$

(15,146)

 

$

(19,857)

 

$

25,238

 

$

19,004

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

 

5,415

 

 

4,798

 

 

 —

 

 

 —

 

 

5,415

 

 

4,798

Amortization of customer relationships and acquired intangible assets

 

 

 —

 

 

 —

 

 

15,525

 

 

12,382

 

 

15,525

 

 

12,382

Restructuring charges

 

 

 —

 

 

 —

 

 

1,154

 

 

429

 

 

1,154

 

 

429

Purchase accounting impact on inventory and contracts acquired

 

 

 —

 

 

184

 

 

 —

 

 

 —

 

 

 —

 

 

184

Merger costs

 

 

 —

 

 

 —

 

 

473

 

 

6,390

 

 

473

 

 

6,390

Non-GAAP adjusted operating profit (loss)

 

$

45,799

 

$

43,843

 

$

2,006

 

$

(656)

 

$

47,805

 

$

43,187

 

11