CHELMSFORD, Mass., Feb. 6, 2020 /PRNewswire/ -- Brooks
Automation, Inc. (Nasdaq: BRKS), a leader in automation solutions
for the semiconductor manufacturing and life sciences industries,
today reported financial results for the first fiscal quarter of
2020, ended December 31, 2019.
|
|
Financial Results
Summary
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
Dollars in millions, except per share
data
|
|
December 31,
|
|
September
30,
|
|
|
December 31,
|
|
Change
vs.
|
|
|
|
|
|
2019
|
|
2019
|
|
|
2018
|
|
Prior
Qtr
|
|
Prior
Year
|
|
|
|
Revenue
|
|
$
|
210
|
|
$
|
199
|
|
|
$
|
179
|
|
6
|
%
|
17
|
%
|
|
|
Semiconductor Solutions
Group
|
|
$
|
119
|
|
$
|
105
|
|
|
$
|
113
|
|
13
|
%
|
5
|
%
|
|
|
Life
Sciences
|
|
$
|
92
|
|
$
|
94
|
|
|
$
|
67
|
|
(3)
|
%
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
Continuing Operations
|
|
$
|
0.18
|
|
$
|
0.07
|
|
|
$
|
0.09
|
|
150
|
%
|
106
|
%
|
|
|
Diluted EPS
Total
|
|
$
|
0.18
|
|
$
|
5.68
|
|
|
$
|
0.20
|
|
(97)
|
%
|
(11)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted EPS
Cont. Operations
|
|
$
|
0.23
|
|
$
|
0.23
|
|
|
$
|
0.17
|
|
(3)
|
%
|
37
|
%
|
|
|
|
Management Comments
"The results of our first fiscal quarter of 2020 showed good
growth in each segment and we are solidly on track for a strong
year," commented Steve Schwartz, CEO
of Brooks Automation. "Our Semiconductor Solutions business
was lifted by another record quarter of revenue from Contamination
Control Solutions, we delivered another quarter of gross margin
improvement in Life Sciences Sample Management, and we had strong
cash flow from operations."
Summary of GAAP Results for Continuing Operations
- Revenue of $210 million grew 17%
year-over-year and diluted EPS from continuing operations was
$0.18, which has doubled from
$0.09 in the first quarter of
2019.
- Life Sciences revenue of $92
million grew 38% year-over-year, helped by the acquisition
and continued growth of GENEWIZ, which was acquired on November 15, 2018. The organic growth of GENEWIZ
was 22% and for Sample Management 3%, year-over-year.
- Semiconductor Solutions revenue of $119
million grew 5% year-over-year and 13% sequentially, driven
by strong shipments of Contamination Control Solutions to end-user
fabs and vacuum robots to OEM customers.
- GAAP operating income was $11
million, compared to $5
million in the first quarter of 2019. The increase was
driven by the growth and expanded operating margins in Life
Sciences. Life Sciences margins benefited from 340 basis points
expansion of gross margins in Sample Management and improved mix
from a full quarter of the higher margin results of GENEWIZ
compared to a half quarter a year ago.
- Amortization of intangibles was $11
million, an increase of approximately $3 million due to carrying GENEWIZ for a full
quarter in 2020 versus a half quarter of ownership in the first
fiscal quarter of 2019.
- Net interest expense was zero for the quarter, a $5 million reduction from the first quarter of
2019.
- Cash flow from operations was $26
million in the quarter, compared to $6 million in the first quarter of 2019. The
ending balance of total debt was $51
million and the balance of cash, cash equivalents,
restricted cash, and marketable securities was $353 million. In January
2020, subsequent to the first quarter reporting period, the
Company used $93 million of this cash
balance to settle income taxes related to the 2019 gain on the sale
of the Semiconductor Cryogenics business.
Summary of Non-GAAP Results for Continuing Operations
- Diluted EPS from continuing operations for the quarter was
$0.23, up 37% from the first quarter
of 2019.
- Operating margins were 10.5%, down 50 basis points
year-over-year. The current quarter includes higher SG&A
expense driven primarily by the additional structure acquired with
GENEWIZ and subsequent investments for its growth. The first fiscal
quarter included excess professional fees of approximately
$2 million, primarily associated with
the previously disclosed material weaknesses that impacted
operating margins negatively by approximately 100 basis
points.
- Non-GAAP gross margins were 41.6%, an increase of 20 basis
points from the first quarter of 2019 driven by improved margins in
Life Sciences, partially offset by lower margins in
Semiconductor.
- Life Sciences non-GAAP operating margins were 6.5%, up 250
basis points year-over-year. The improvement was primarily driven
at the gross margin line which was 44.3%, up 350 basis points
year-over-year. This reflects 340 basis point improvement in Sample
Management gross margins and the favorable mix of acquiring the
GENEWIZ business which carries higher gross margins.
- The Semiconductor Solutions non-GAAP operating margins were
12.6%, a decline of 270 basis points. The decline reflects softer
gross margins of 39.6%, lower by 210 basis points from the prior
year, primarily driven by the mix of revenue.
- Adjusted EBITDA was $32 million,
up 14% from the first quarter of 2019.
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.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors
has reiterated a dividend of $0.10
per share payable on March 27, 2020 to stockholders of
record on March 6, 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 Fiscal Second Quarter Fiscal 2020
The Company announced revenue and earnings guidance for the
second quarter of fiscal 2020. Revenue is expected to be in
the range of $213 million to
$225 million and non-GAAP diluted
earnings per share is expected to be in the range of $0.22 to $0.28. GAAP diluted earnings per share for
the second fiscal quarter is expected to be in the range of
$0.09 to $0.15.
Conference Call
Brooks management will webcast its first 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.com, and will be archived online on this website for
convenient on-demand replay. In addition, you may call
800-728-2056 (US & Canada
only) or +1-212-231-2922 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 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 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; risks and uncertainties related
to the coronavirus originating in Wuhan,
China and its effects on the Company's operations in
China, including supply chain, and
the operations of our customers in China; 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, Inc.
Brooks is a leading provider of life science and semiconductor
manufacturing automation solutions worldwide. The Company
applies its automation and cryogenics expertise to provide a full
suite of reliable cold-chain sample management solutions across
life sciences in areas such as drug development, clinical research
and advanced cell therapies. Brooks recently added global
capability for gene sequencing and gene synthesis services through
its strategic acquisition of GENEWIZ, expanding its sample-based
services offerings. With over 40 years as a partner to the
semiconductor manufacturing industry, Brooks is a provider of
industry-leading precision robotics, integrated automation systems
and services. 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
John Mills
Senior Managing Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com
BROOKS AUTOMATION,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
131,862
|
|
$
|
125,375
|
|
|
|
|
Services
|
|
|
78,638
|
|
|
53,993
|
|
|
|
|
Total
revenue
|
|
|
210,500
|
|
|
179,368
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
79,971
|
|
|
74,574
|
|
|
|
|
Services
|
|
|
45,543
|
|
|
32,713
|
|
|
|
|
Total cost of
revenue
|
|
|
125,514
|
|
|
107,287
|
|
|
|
|
Gross
profit
|
|
|
84,986
|
|
|
72,081
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
14,401
|
|
|
13,148
|
|
|
|
|
Selling, general and
administrative
|
|
|
59,343
|
|
|
53,541
|
|
|
|
|
Restructuring
charges
|
|
|
576
|
|
|
59
|
|
|
|
|
Total operating
expenses
|
|
|
74,320
|
|
|
66,748
|
|
|
|
|
Operating
income
|
|
|
10,666
|
|
|
5,333
|
|
|
|
|
Interest
income
|
|
|
699
|
|
|
423
|
|
|
|
|
Interest
expense
|
|
|
(737)
|
|
|
(5,290)
|
|
|
|
|
Other expenses,
net
|
|
|
(417)
|
|
|
(30)
|
|
|
|
|
Income before income
taxes
|
|
|
10,211
|
|
|
436
|
|
|
|
|
Income tax
benefit
|
|
|
(2,963)
|
|
|
(5,830)
|
|
|
|
|
Income from
continuing operations
|
|
|
13,174
|
|
|
6,266
|
|
|
|
|
(Loss) income from
discontinued operations, net of tax
|
|
|
(117)
|
|
|
8,149
|
|
|
|
|
Net income
|
|
$
|
13,057
|
|
$
|
14,415
|
|
|
|
|
Basic net income per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share from continuing operations
|
|
$
|
0.18
|
|
$
|
0.09
|
|
|
|
|
Basic net (loss) income
per share from discontinued operations
|
|
|
(0.00)
|
|
|
0.11
|
|
|
|
|
Basic net income per
share
|
|
$
|
0.18
|
|
$
|
0.20
|
|
|
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share from continuing operations
|
|
$
|
0.18
|
|
$
|
0.09
|
|
|
|
|
Diluted net (loss)
income per share from discontinued operations
|
|
|
(0.00)
|
|
|
0.11
|
|
|
|
|
Diluted net income
per share
|
|
$
|
0.18
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing net income per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
72,972
|
|
|
71,450
|
|
|
|
|
Diluted
|
|
|
73,645
|
|
|
72,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKS AUTOMATION,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(unaudited)
|
(In thousands,
except share and per share data)
|
|
|
December 31,
|
|
September 30,
|
|
2019
|
|
2019
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
335,319
|
|
$
|
301,642
|
Marketable
securities
|
|
11,233
|
|
|
34,124
|
Accounts receivable,
net
|
|
165,176
|
|
|
165,602
|
Inventories
|
|
105,181
|
|
|
99,445
|
Prepaid expenses and
other current assets
|
|
46,560
|
|
|
46,332
|
Total current
assets
|
|
663,469
|
|
|
647,145
|
Property, plant and
equipment, net
|
|
105,296
|
|
|
100,669
|
Long-term marketable
securities
|
|
3,039
|
|
|
2,845
|
Long-term deferred tax
assets
|
|
6,004
|
|
|
5,064
|
Goodwill
|
|
490,370
|
|
|
488,602
|
Intangible assets,
net
|
|
242,248
|
|
|
251,168
|
Other
assets
|
|
48,532
|
|
|
20,506
|
Total
assets
|
$
|
1,558,958
|
|
$
|
1,515,999
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
827
|
|
$
|
829
|
Accounts
payable
|
|
65,306
|
|
|
58,919
|
Deferred
revenue
|
|
29,042
|
|
|
29,435
|
Accrued warranty and
retrofit costs
|
|
7,493
|
|
|
7,175
|
Accrued compensation
and benefits
|
|
25,810
|
|
|
31,375
|
Accrued restructuring
costs
|
|
844
|
|
|
1,040
|
Accrued income taxes
payable
|
|
100,451
|
|
|
99,263
|
Accrued expenses and
other current liabilities
|
|
53,179
|
|
|
44,234
|
Total current
liabilities
|
|
282,952
|
|
|
272,270
|
Long-term
debt
|
|
49,918
|
|
|
50,315
|
Long-term tax
reserves
|
|
18,543
|
|
|
18,274
|
Long-term deferred tax
liabilities
|
|
13,636
|
|
|
20,636
|
Long-term pension
liabilities
|
|
5,397
|
|
|
5,338
|
Long-term operating
lease liabilities
|
|
20,526
|
|
|
—
|
Other long-term
liabilities
|
|
9,291
|
|
|
10,212
|
Total
liabilities
|
|
400,263
|
|
|
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, 87,080,017 shares issued
and 73,618,148 shares outstanding at December 31, 2019,
85,759,700 shares issued and 72,297,831 shares outstanding at
September 30, 2019
|
|
871
|
|
|
857
|
Additional paid-in
capital
|
|
1,926,350
|
|
|
1,921,954
|
Accumulated other
comprehensive income
|
|
13,154
|
|
|
3,511
|
Treasury stock at cost
- 13,461,869 shares
|
|
(200,956)
|
|
|
(200,956)
|
Accumulated
deficit
|
|
(580,724)
|
|
|
(586,412)
|
Total stockholders'
equity
|
|
1,158,695
|
|
|
1,138,954
|
Total liabilities and
stockholders' equity
|
$
|
1,558,958
|
|
$
|
1,515,999
|
BROOKS AUTOMATION,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
December 31,
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
|
$
|
13,057
|
|
$
|
14,415
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
16,477
|
|
|
11,838
|
Stock-based
compensation
|
|
4,410
|
|
|
4,467
|
Amortization of
premium on marketable securities and deferred financing
costs
|
|
67
|
|
|
235
|
Earnings of equity
method investments
|
|
—
|
|
|
(1,772)
|
Deferred income
taxes
|
|
(8,183)
|
|
|
(7,682)
|
Other gains on
disposals of assets
|
|
126
|
|
|
6
|
Loss on sale of
divestiture, net of tax
|
|
319
|
|
|
—
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
|
1,503
|
|
|
(13,826)
|
Inventories
|
|
(4,335)
|
|
|
(12,260)
|
Prepaid expenses and
current assets
|
|
6,120
|
|
|
1,029
|
Accounts
payable
|
|
5,255
|
|
|
7,932
|
Deferred
revenue
|
|
(720)
|
|
|
6,385
|
Accrued warranty and
retrofit costs
|
|
221
|
|
|
572
|
Accrued compensation
and tax withholdings
|
|
(5,755)
|
|
|
(13,842)
|
Accrued restructuring
costs
|
|
(203)
|
|
|
(181)
|
Accrued expenses and
current liabilities
|
|
(2,616)
|
|
|
8,948
|
Net cash provided by
operating activities
|
|
25,743
|
|
|
6,264
|
Cash flows from
investing activities
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(9,614)
|
|
|
(3,560)
|
Purchases of
marketable securities
|
|
(10,742)
|
|
|
(1,290)
|
Sales of marketable
securities
|
|
—
|
|
|
48,904
|
Maturities of
marketable securities
|
|
33,584
|
|
|
2,557
|
Acquisitions, net of
cash acquired
|
|
—
|
|
|
(445,210)
|
Net cash provided by
(used) in investing activities
|
|
13,228
|
|
|
(398,599)
|
Cash flows from
financing activities
|
|
|
|
|
|
Proceeds from term
loans, net of discount
|
|
—
|
|
|
340,540
|
Principal payments on
debt
|
|
(414)
|
|
|
(1,789)
|
Payments of capital
leases
|
|
(319)
|
|
|
(121)
|
Common stock dividends
paid
|
|
(7,369)
|
|
|
(7,208)
|
Net cash provided by
(used in) financing activities
|
|
(8,102)
|
|
|
331,422
|
Effects of exchange
rate changes on cash and cash equivalents
|
|
2,808
|
|
|
(1,004)
|
Net increase
(decrease) in cash and cash equivalents
|
|
33,677
|
|
|
(61,917)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
|
305,171
|
|
|
197,708
|
Cash and cash
equivalents and restricted cash, end of period
|
$
|
338,848
|
|
$
|
135,791
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
335,319
|
|
$
|
135,741
|
Restricted cash
included in prepaid expenses and other current assets
|
|
3,529
|
|
|
50
|
Total cash, cash
equivalents and restricted cash shown in the consolidated
statements of cash flows
|
$
|
338,848
|
|
$
|
135,791
|
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
|
|
|
December 31, 2019
|
|
September 30, 2019
|
|
December 31, 2018
|
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
Dollars in
thousands, except per share data
|
|
|
|
share
|
|
|
|
share
|
|
|
|
share
|
Net income from
continuing operations
|
|
$
|
13,174
|
|
$
|
0.18
|
|
$
|
5,195
|
|
$
|
0.07
|
|
$
|
6,266
|
|
$
|
0.09
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
0.00
|
Amortization of
intangible assets
|
|
|
10,584
|
|
|
0.14
|
|
|
8,931
|
|
|
0.12
|
|
|
7,776
|
|
|
0.11
|
Restructuring
charges
|
|
|
576
|
|
|
0.01
|
|
|
1,209
|
|
|
0.02
|
|
|
59
|
|
|
0.00
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
—
|
|
|
5,288
|
|
|
0.07
|
|
|
—
|
|
|
—
|
Merger
costs
|
|
|
195
|
|
|
0.00
|
|
|
134
|
|
|
0.00
|
|
|
6,354
|
|
|
0.09
|
Restructuring related
charges
|
|
|
—
|
|
|
—
|
|
|
285
|
|
|
0.00
|
|
|
—
|
|
|
—
|
Adjustment of
valuation allowance against deferred tax assets
|
|
|
—
|
|
|
—
|
|
|
(233)
|
|
|
(0.00)
|
|
|
—
|
|
|
—
|
Tax Reform
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,125)
|
|
|
(0.02)
|
Tax adjustments
(2)
|
|
|
(5,230)
|
|
|
(0.07)
|
|
|
—
|
|
|
—
|
|
|
(4,411)
|
|
|
(0.06)
|
Tax effect of
adjustments
|
|
|
(2,662)
|
|
|
(0.04)
|
|
|
(3,932)
|
|
|
(0.05)
|
|
|
(3,184)
|
|
|
(0.04)
|
Non-GAAP adjusted
net income from continuing operations
|
|
$
|
16,637
|
|
$
|
0.23
|
|
$
|
16,877
|
|
$
|
0.23
|
|
$
|
11,919
|
|
$
|
0.17
|
Stock
based compensation, pre-tax
|
|
|
4,410
|
|
|
0.06
|
|
|
4,941
|
|
|
0.07
|
|
|
4,176
|
|
|
0.06
|
Tax
rate
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
Stock-based
compensation, net of tax
|
|
|
3,749
|
|
|
0.05
|
|
|
4,200
|
|
|
0.06
|
|
|
3,550
|
|
|
0.05
|
Non-GAAP adjusted net
income excluding stock-based compensation - continuing
operations
|
|
$
|
20,386
|
|
$
|
0.28
|
|
$
|
21,077
|
|
$
|
0.29
|
|
$
|
15,469
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
73,645
|
|
|
—
|
|
|
72,558
|
|
|
—
|
|
|
72,165
|
|
|
(1)
|
Adjustments are
related to U.S. Federal Tax Reform Transition Tax.
|
|
|
(2)
|
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 and a deferred tax benefit realized in the
three month period ended December 31, 2018 related to a change in
the Company's state effective tax rate driven by the acquisition of
GENEWIZ.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
Dollars in thousands
|
|
2019
|
|
2019
|
|
2018
|
|
GAAP net
income
|
|
$
|
13,057
|
|
$
|
412,326
|
|
$
|
14,415
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Less: Loss (income)
from discontinued operations
|
|
|
117
|
|
|
(407,131)
|
|
|
(8,149)
|
|
Less: Interest
income
|
|
|
(699)
|
|
|
(602)
|
|
|
(423)
|
|
Add: Interest
expense
|
|
|
737
|
|
|
902
|
|
|
5,290
|
|
Add: Income tax
benefit
|
|
|
(2,963)
|
|
|
(511)
|
|
|
(5,830)
|
|
Add:
Depreciation
|
|
|
5,891
|
|
|
5,094
|
|
|
4,060
|
|
Add: Amortization of
completed technology
|
|
|
2,674
|
|
|
2,764
|
|
|
2,007
|
|
Add: Amortization of
customer relationships and acquired intangible assets
|
|
|
7,910
|
|
|
6,167
|
|
|
5,769
|
|
Add: Loss on
extinguishment of debt
|
|
|
—
|
|
|
5,288
|
|
|
—
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
|
26,724
|
|
$
|
24,297
|
|
$
|
17,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
Dollars in thousands
|
|
2019
|
|
2019
|
|
2018
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
|
26,726
|
|
$
|
24,297
|
|
$
|
17,139
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Add: Stock-based
compensation
|
|
|
4,410
|
|
|
4,941
|
|
|
4,176
|
|
Add: Restructuring
charges
|
|
|
576
|
|
|
1,209
|
|
|
59
|
|
Add: Restructuring
related charges
|
|
|
—
|
|
|
285
|
|
|
—
|
|
Add: Purchase
accounting impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
184
|
|
Add: Merger
costs
|
|
|
195
|
|
|
134
|
|
|
6,354
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
|
31,907
|
|
$
|
30,866
|
|
$
|
27,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Dollars in
thousands
|
|
December 31, 2019
|
|
September 30, 2019
|
|
December 31, 2018
|
GAAP gross
profit/margin percentage
|
|
$
|
84,986
|
|
40.4
|
%
|
|
$
|
80,153
|
|
40.2
|
%
|
|
$
|
72,081
|
|
40.2
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,674
|
|
1.3
|
|
|
|
2,764
|
|
1.4
|
|
|
|
2,007
|
|
1.1
|
|
Restructuring related
charges
|
|
|
—
|
|
—
|
|
|
|
285
|
|
0.1
|
|
|
|
—
|
|
—
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
184
|
|
0.1
|
|
Non-GAAP adjusted
gross profit/gross margin percentage
|
|
$
|
87,660
|
|
41.6
|
%
|
|
$
|
83,202
|
|
41.8
|
%
|
|
$
|
74,272
|
|
41.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks
Semiconductor Solutions Group
|
|
|
Quarter
Ended
|
Dollars in
thousands
|
|
December 31, 2019
|
|
September 30, 2019
|
|
December 31, 2018
|
GAAP gross
profit/margin percentage
|
|
$
|
46,300
|
|
39.0
|
%
|
|
$
|
42,262
|
|
40.2
|
%
|
|
$
|
45,915
|
|
40.7
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
732
|
|
0.6
|
|
|
|
868
|
|
0.8
|
|
|
|
937
|
|
0.8
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
184
|
|
0.2
|
|
Non-GAAP adjusted
gross profit/margin percentage
|
|
$
|
47,032
|
|
39.6
|
%
|
|
$
|
43,130
|
|
41.1
|
%
|
|
$
|
47,036
|
|
41.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Life
Sciences
|
|
|
Quarter
Ended
|
Dollars in
thousands
|
|
December 31, 2019
|
|
September 30, 2019
|
|
December 31, 2018
|
GAAP gross
profit/margin percentage
|
|
$
|
38,686
|
|
42.2
|
%
|
|
$
|
37,891
|
|
40.2
|
%
|
|
$
|
26,166
|
|
39.3
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,942
|
|
2.1
|
|
|
|
1,896
|
|
2.0
|
|
|
|
1,070
|
|
1.6
|
|
Restructuring related
charges
|
|
|
—
|
|
—
|
|
|
|
285
|
|
0.3
|
|
|
|
—
|
|
—
|
|
Non-GAAP adjusted
gross profit/margin percentage
|
|
$
|
40,628
|
|
44.3
|
%
|
|
$
|
40,072
|
|
42.6
|
%
|
|
$
|
27,236
|
|
40.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions Group
|
|
Brooks Life Sciences
|
|
Total
Segments
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
Dollars in thousands
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
GAAP operating
profit
|
|
$
|
14,268
|
|
$
|
12,726
|
|
$
|
16,141
|
|
$
|
4,032
|
|
$
|
4,586
|
|
$
|
1,590
|
|
$
|
18,300
|
|
$
|
17,312
|
|
$
|
17,731
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
732
|
|
|
868
|
|
|
937
|
|
|
1,942
|
|
|
1,896
|
|
|
1,070
|
|
|
2,674
|
|
|
2,764
|
|
|
2,007
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
Restructuring related
charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
285
|
|
|
—
|
|
|
—
|
|
|
285
|
|
|
—
|
Non-GAAP adjusted
operating profit
|
|
$
|
15,000
|
|
$
|
13,594
|
|
$
|
17,262
|
|
$
|
5,974
|
|
$
|
6,767
|
|
$
|
2,660
|
|
$
|
20,974
|
|
$
|
20,361
|
|
$
|
19,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments
|
|
Corporate
|
|
Total
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
Dollars in thousands
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
GAAP operating profit
(loss)
|
|
$
|
18,300
|
|
$
|
17,312
|
|
$
|
17,731
|
|
$
|
(7,634)
|
|
$
|
(6,702)
|
|
$
|
(12,398)
|
|
$
|
10,666
|
|
$
|
10,610
|
|
$
|
5,333
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,674
|
|
|
2,764
|
|
|
2,007
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,674
|
|
|
2,764
|
|
|
2,007
|
Amortization of
customer relationships and acquired intangible assets
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,910
|
|
|
6,167
|
|
|
5,769
|
|
|
7,910
|
|
|
6,167
|
|
|
5,769
|
Restructuring
charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
576
|
|
|
1,209
|
|
|
59
|
|
|
576
|
|
|
1,209
|
|
|
59
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
Merger costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195
|
|
|
134
|
|
|
6,354
|
|
|
195
|
|
|
134
|
|
|
6,354
|
Restructuring related
charges
|
|
|
—
|
|
|
285
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
285
|
|
|
—
|
Non-GAAP adjusted
operating profit (loss)
|
|
$
|
20,974
|
|
$
|
20,361
|
|
$
|
19,922
|
|
$
|
1,047
|
|
$
|
808
|
|
$
|
(216)
|
|
$
|
22,021
|
|
$
|
21,169
|
|
$
|
19,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Brooks Automation