CHELMSFORD, Mass., April 30, 2020 /PRNewswire/ -- 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.
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 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
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
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
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands, except per share data
|
|
$
|
|
per
diluted
share
|
|
$
|
|
per
diluted
share
|
|
$
|
|
per
diluted
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/brooks-automation-reports-results-of-its-second-quarter-of-fiscal-2020-ended-march-31-2020-and-announces-quarterly-cash-dividend-301050554.html
SOURCE Brooks Automation