News Releases
Brooks Automation Reports Results of Fourth Quarter of Fiscal 2021, Ended September 30, 2021, and Announces Quarterly Cash Dividend
Strong Double-Digit Growth Quarter Underscores Robust Demand Environment in Life Sciences

CHELMSFORD, Mass., Nov. 10, 2021 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the fiscal quarter ended September 30, 2021.

Summary of GAAP Results
Results of continuing operations reflect the Life Sciences business. Due to the announced divestiture in the fourth fiscal quarter of 2021, results of the Semiconductor Automation business are treated as discontinued operations and reflected in total diluted EPS.

   

Quarter Ended

         

Year Ended

     

Dollars in millions, except per share data

 

September 30, 

 

September 30, 

         

September 30, 

 

September 30, 

     
   

2021

 

2020

 

Change

     

2021

 

2020

 

Change

 

Revenue - Continuing Operations

 

$

137

 

$

108

 

27

%

   

$

514

 

$

389

 

32

%

Diluted EPS - Continuing Operations

 

$

(0.30)

 

$

(0.01)

 

NM

     

$

(0.39)

 

$

(0.36)

 

9

%

Total Diluted EPS

 

$

0.29

 

$

0.39

 

(25)

%

   

$

1.49

 

$

0.88

 

69

%

Summary of Non-GAAP Results
The aggregate view of revenue and EPS is shown on a non-GAAP basis for investors to compare results to the performance reports provided in previous periods and to the Company's most recent guidance.

                                       
   

Quarter Ended

         

Year Ended

     

Dollars in millions, except per share data

 

September 30, 

 

September 30, 

         

September 30, 

 

September 30, 

     
   

2021

 

2020

 

Change

     

2021

 

2020

 

Change

 

Revenue - Continuing Operations

 

$

137

 

$

108

 

27

%

   

$

514

 

$

389

 

32

%

Revenue - Discontinued Operations

 

$

205

 

$

138

 

49

%

   

$

680

 

$

509

 

34

%

Aggregate view of Revenue

 

$

342

 

$

246

 

39

%

   

$

1,194

 

$

897

 

33

%

                                       

Non-GAAP Diluted EPS  - Continuing Operations

 

$

0.12

 

$

0.09

 

32

%

   

$

0.48

 

$

0.02

 

NM

%

Non-GAAP Total Diluted EPS

 

$

0.78

 

$

0.47

 

67

%

   

$

2.58

 

$

1.26

 

105

%

On September 20, 2021 the Company announced that it had entered into a definitive agreement to sell its Semiconductor Automation business. In accordance with GAAP, sales and expenses directly related to that business must be removed from their applicable income statement caption for continuing operations and reported for all periods presented as net income from discontinued operations in the GAAP financial statements. For this transition quarter, we present the non-GAAP summary above to provide a view of the entire business including the Semiconductor Automation business for direct comparison to prior guidance and historical results.

Management Comments
"We ended the 2021 fiscal year with another strong quarter in what has been a truly transformational year for the company," stated Steve Schwartz, President and CEO. "Life Sciences delivered another quarter of growth in excess of 20%, and we continue to see a long runway ahead. In addition, late in the quarter we announced the new name and brand of our life sciences business, Azenta. We are excited for the opportunity to launch into the marketplace under a single, unified life sciences brand."

Summary of GAAP Results
Revenue excludes the Semiconductor Automation revenue as a result of the pending sale of this business. Profits related to this business are included in discontinued operations.

Fourth Quarter, Fiscal 2021

  • Revenue from continuing operations for the fourth quarter was $137 million, up 27% year over year driven by strong growth in both Life Sciences Products and Services. Year-over-year organic growth was 24%.
  • Revenue from Life Science Products grew 38% year over year, and Life Sciences Services grew 20%.
  • Operating loss for the quarter was $21 million and gross margin was 48.3%.  Operating expenses in the quarter include approximately $8 million related to the pending divestiture of the Semiconductor Automation business and $13 million of non-cash charges due to the retirement of tradenames related to the rebranding of the Life Sciences business.  Non-operating expenses include $16 million of charges for the release of a tax indemnification asset, which is offset within tax expense with the reduction of tax liability.
  • Total diluted EPS of $0.29 includes $0.59 of diluted EPS from discontinued operations.  Diluted loss per share from continuing operations was $0.30 per share, down $0.29 compared to the fourth quarter of 2020, primarily driven by operating expenses related to the pending divestiture of the Semiconductor Automation business and the impact of the retirement of tradenames related to the rebranding of the Life Sciences business.

Full Year, Fiscal 2021

  • Revenue for fiscal 2021 was $514 million, an increase of 32% compared to fiscal 2020 driven by 54% growth in Life Science Products and 21% growth in Life Science Services. Excluding the effect of the exit of the RUCDR alliance in Q4 2020, Life Sciences Services grew 30%. Year-over-year organic growth was 33%.
  • Operating loss for fiscal 2021 was $31 million, a $6 million reduction in operating loss compared to fiscal 2020. Gross margin was 47.5%, a 320 basis point increase year-over-year.
  • Diluted EPS was $1.49 for the fiscal year, up 69% year-over-year driven by strong growth and operating leverage, partially offset by expenses in the period including $20 million due to the pending divestiture of the Semiconductor Automation business and $13 million due to the retirement of tradenames related to the rebranding of the Life Sciences business. Non-operating expenses include $16 million of charges for the release of a tax indemnification asset, which is offset within tax expense with the reduction of tax liability.

Summary of Non-GAAP Earnings for Continuing Operations
The Continuing Operations view shown on a non-GAAP basis provides investors additional performance information by excluding the impact of M&A costs, amortization, restructuring, purchase price accounting, and special charges or gains, such as impairment losses. This profile will be used in reporting future results and excludes the Semiconductor Automation business, which is now part of discontinued operations. 

Fourth Quarter, Fiscal 2021

  • Diluted EPS for the fourth quarter was $0.12, up 32% year over year.
  • Adjusted EBITDA was $21 million, up 38% from the fourth quarter of 2020 and 13% sequentially.
  • Operating income was $11 million, an increase of 48% year over year, and operating margin was 8.2%, up 120 basis points year over year driven by margin leverage in Life Science Products partially offset by increased costs in Life Sciences Services.
  • Gross margin of 49.7% was down 80 basis points year over year driven lower margins in the Life Sciences Services business related to higher materials and labor costs.

Full Year, Fiscal 2021

  • Diluted EPS for fiscal 2021 was $0.48, compared to $0.02 in fiscal 2020.
  • Adjusted EBITDA was $86 million, up 205% from fiscal 2020.
  • Operating income was $47 million, compared to $0.3 million in fiscal 2020, and operating margin was 9.1%, up 910 basis points year over year driven by gross margin improvement in both segments as well as operating leverage.
  • Gross margin of 50.1% was up 360 basis points year over year driven by performance improvement of 290 basis points driven by improvement in both Products and Services as well as 70 basis points of favorable mix as a result of exiting the RUCDR alliance agreement.
  • The non-GAAP tax rate was 20.3%.

Commentary on Non-GAAP Earnings in an Aggregate View with Semiconductor Automation Included
The aggregate view is shown on a non-GAAP basis for investors wishing to compare results to the performance reports provided in previous periods and to the Company's most recent guidance.

Fourth Quarter, Fiscal 2021

  • Revenue in aggregate for the fourth quarter was $342 million, up 39% year over year. The Semiconductor Automation business generated revenue of $205 million, up 49% year over year and up 45% on an organic basis. Life Sciences generated revenue of $137 million, up 27% year over year and up 24% on an organic basis.
  • Non-GAAP EPS was $0.78 in the quarter, an increase of 67% year over year.

Full Year, Fiscal 2021

  • Revenue in aggregate for fiscal 2021 was $1,194 million, up 33% year over year. The Semiconductor Automation business generated revenue of $680 million, up 34% year over year and up 31% on an organic basis. Life Sciences generated revenue of $514 million, up 32% year over year and up 33% on an organic basis.
  • Non-GAAP EPS was $2.58 for the full year, an increase of 105% year over year.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on December 23, 2021 to stockholders of record on December 3, 2021.  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 Continuing Operations for First Quarter Fiscal 2022
The Company announced revenue and earnings guidance for continuing operations for the first quarter of fiscal 2022.  Revenue is expected to be in the range of $130 million to $140 million and GAAP diluted loss per share for the first fiscal quarter is expected to be in the range of $0.14 to $0.06.   Non-GAAP diluted earnings per share from continuing operations is expected to be in the range of $0.04 to $0.12

Brooks 2021 Investor Day Featuring Azenta Life Sciences
The Company will host a virtual investor day on November 16th from 9:00am to 12:00pm Eastern Time. The investor day will feature our Life Sciences business, the recently rebranded Azenta Life Sciences. Please visit our website at brooks.investorroom.com or click here to register.

Conference Call and Webcast
Brooks management will webcast its fourth 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 800-786-1918 (US & Canada only) or +1-212-231-2907 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 analyses 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, our ability to deliver financial success in the future, and certainty and/or timing of completion of the pending sale of our Semiconductor Automation business to Thomas H. Lee Partners, L.P., and our ability to invest the expected cash proceeds from the sale. Factors that could cause results to differ from our expectations include the following:  the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally, the volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions, and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.

About Brooks Automation
Brooks (Nasdaq: BRKS) operates two global, market-leading businesses, Life Sciences and Semiconductor Solutions, each with its own distinct area of focus and expertise. The Life Sciences business, to be operated under the new Azenta brand, 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. On September 20, 2021, the Company announced the pending sale to Thomas H. Lee Partners of its Semiconductor Automation business, which provides industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world's leading semiconductor chip makers and equipment manufacturers as well as collaborative robotics and automation capabilities for multi-market applications. Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe, and Asia. For more information, please visit www.brooks.com.

BROOKS INVESTOR CONTACTS:

Sara Silverman
Director of Investor Relations
Brooks Automation
978.262.2635
sara.silverman@brooks.com

Sherry Dinsmore
Brooks Automation
978.262.4301
sherry.dinsmore@brooks.com

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

               
     

Three Months Ended

   

Year Ended

 
     

September 30, 

   

September 30,

 
     

2021

 

2020

   

2021

 

2020

 

Revenue

                             

Products

   

$

48,745

 

$

34,347

   

$

181,036

 

$

110,567

 

Services

     

88,194

   

73,899

     

332,667

   

277,970

 

Total revenue

     

136,939

   

108,246

     

513,703

   

388,537

 

Cost of revenue

                             

Products

     

25,118

   

19,363

     

96,678

   

44,243

 

Services

     

45,679

   

36,345

     

173,216

   

172,146

 

Total cost of revenue

     

70,797

   

55,708

     

269,894

   

216,389

 

Gross profit

     

66,142

   

52,538

     

243,809

   

172,148

 

Operating expenses

                             

Research and development

     

6,599

   

4,636

     

22,412

   

17,818

 

Selling, general and administrative

     

80,453

   

49,170

     

252,101

   

190,256

 

Restructuring charges

     

332

   

114

     

385

   

674

 

Total operating expenses

     

87,384

   

53,920

     

274,898

   

208,748

 

Operating loss

     

(21,242)

   

(1,382)

     

(31,089)

   

(36,600)

 

Interest income

     

129

   

(16)

     

632

   

849

 

Interest expense

     

(552)

   

(679)

     

(2,037)

   

(2,944)

 

Other expenses, net

     

(16,212)

   

(124)

     

(16,475)

   

(1,597)

 

Loss before income taxes

     

(37,877)

   

(2,201)

     

(48,969)

   

(40,292)

 

Income tax benefit

     

(15,480)

   

(1,620)

     

(20,100)

   

(13,930)

 

Loss from continuing operations

   

$

(22,397)

 

$

(581)

   

$

(28,869)

 

$

(26,362)

 

Income from discontinued operations, net of tax

     

44,201

   

29,554

     

139,616

   

91,215

 

Net income

   

$

21,804

 

$

28,973

   

$

110,747

 

$

64,853

 

Basic net income per share:

                             

Loss from continuing operations

   

$

(0.30)

 

$

(0.01)

   

$

(0.39)

 

$

(0.36)

 

Income from discontinued operations, net of tax

     

0.59

   

0.40

     

1.88

   

1.25

 

Basic net income per share

   

$

0.29

 

$

0.39

   

$

1.49

 

$

0.88

 

Diluted net income per share:

                             

Loss from continuing operations

   

$

(0.30)

 

$

(0.01)

   

$

(0.39)

 

$

(0.36)

 

Income from discontinued operations, net of tax

     

0.59

   

0.40

     

1.88

   

1.24

 

Diluted net income per share

   

$

0.29

 

$

0.39

   

$

1.49

 

$

0.88

 
                               

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

                             

Basic

     

74,330

   

73,808

     

74,229

   

73,557

 

Diluted

     

74,532

   

74,004

     

74,455

   

73,850

 
                               

 

BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

 
 

September 30, 

 

September 30,

 

2021

 

2020

           

Assets

         

Current assets

         

Cash and cash equivalents

$

227,427

 

$

250,649

Marketable securities

 

81

   

51

Accounts receivable, net

 

119,877

   

94,791

Inventories

 

60,398

   

37,125

Prepaid expenses and other current assets

 

58,198

   

43,974

Current assets held for sale

 

311,385

   

222,863

Total current assets

 

777,366

   

649,453

Property, plant and equipment, net

 

130,719

   

88,735

Long-term marketable securities

 

3,598

   

3,101

Long-term deferred tax assets

 

10,043

   

3,976

Goodwill

 

469,356

   

453,177

Intangible assets, net

 

186,534

   

212,323

Other assets

 

58,068

   

49,782

Non-current assets held for sale

 

183,828

   

98,718

Total assets

$

1,819,512

 

$

1,559,265

Liabilities and Stockholders' Equity

         

Current liabilities

         

Current portion of long-term debt

$

 

$

827

Accounts payable

 

42,360

   

25,689

Deferred revenue

 

25,724

   

25,776

Accrued warranty and retrofit costs

 

2,330

   

2,211

Accrued compensation and benefits

 

33,183

   

28,669

Accrued restructuring costs

 

304

   

122

Accrued income taxes payable

 

8,711

   

1,975

Accrued expenses and other current liabilities

 

103,537

   

43,017

Current liabilities held for sale

 

128,939

   

82,832

Total current liabilities

 

345,088

   

211,118

Long-term debt

 

49,677

   

49,588

Long-term tax reserves

 

1,973

   

18,471

Long-term deferred tax liabilities

 

13,030

   

17,797

Long-term pension liabilities

 

705

   

895

Long-term operating lease liabilities

 

45,088

   

18,905

Other long-term liabilities

 

6,173

   

1,302

Non-current liabilities held for sale

 

32,444

   

27,575

Total liabilities

 

494,178

   

345,651

Commitments and contingencies

         

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, 87,808,922 shares issued and 74,347,053 shares outstanding at September 30, 2021, 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2020

 

878

   

873

Additional paid-in capital

 

1,976,112

   

1,942,850

Accumulated other comprehensive income

 

19,351

   

21,919

Treasury stock at cost - 13,461,869 shares

 

(200,956)

   

(200,956)

Accumulated deficit

 

(470,051)

   

(551,072)

Total Brooks Automation, Inc. stockholders' equity

 

1,325,334

   

1,213,614

Noncontrolling interest in subsidiary

 

   

Total stockholders' equity

 

1,325,334

   

1,213,614

Total liabilities and stockholders' equity

$

1,819,512

 

$

1,559,265

 

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

 
 

Year Ended

 
 

September 30, 

 
 

2021

 

2020

 

Cash flows from operating activities

           

Net income

$

110,747

 

$

64,853

 

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

           

Depreciation and amortization

 

65,333

   

65,496

 

Impairment of intangible assets

 

13,364

   

 

Stock-based compensation

 

27,456

   

16,317

 

Amortization of premium on marketable securities and deferred financing costs

 

225

   

233

 

Deferred income taxes

 

(17,265)

   

(5,407)

 

Other gains on disposals of assets

 

260

   

226

 

Adjustment to the gain on divestiture, net of tax

 

948

   

319

 

Taxes paid stemming from divestiture

 

   

(91,500)

 

Changes in operating assets and liabilities, net of acquisitions:

           

Accounts receivable

 

(69,643)

   

(18,755)

 

Inventories

 

(50,443)

   

(13,144)

 

Prepaid expenses and current assets

 

(15,968)

   

25,642

 

Accounts payable

 

30,967

   

792

 

Deferred revenue

 

(3,939)

   

(139)

 

Accrued warranty and retrofit costs

 

54

   

760

 

Accrued compensation and tax withholdings

 

7,298

   

11,097

 

Accrued restructuring costs

 

124

   

(865)

 

Accrued expenses and current liabilities

 

50,339

   

(18,059)

 

Net cash provided by operating activities

 

149,857

   

37,866

 

Cash flows from investing activities

           

Purchases of property, plant and equipment

 

(52,805)

   

(39,924)

 

Purchases of marketable securities

 

(151)

   

(10,894)

 

Sales of marketable securities

 

25

   

2,492

 

Maturities of marketable securities

 

96

   

42,328

 

Acquisitions, net of cash acquired

 

(95,514)

   

(15,744)

 

Settlement (issuance) of notes receivable

 

2,000

   

(1,000)

 

Net cash used in investing activities

 

(146,349)

   

(22,742)

 

Cash flows from financing activities

           

Proceeds from issuance of common stock

 

5,812

   

4,595

 

Principal payments on debt

 

(828)

   

(828)

 

Payments of finance leases

 

(1,164)

   

(1,277)

 

Common stock dividends paid

 

(29,726)

   

(29,513)

 

Net cash used in financing activities

 

(25,906)

   

(27,023)

 

Effects of exchange rate changes on cash and cash equivalents

 

5,205

   

9,254

 

Net decrease in cash, cash equivalents and restricted cash

 

(17,193)

   

(2,645)

 

Cash, cash equivalents and restricted cash, beginning of period

 

302,526

   

305,171

 

Cash and cash equivalents and restricted cash, end of period

$

285,333

 

$

302,526

 
             

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

           

Cash and cash equivalents of continuing operations

 

227,427

   

250,649

 

Cash and cash equivalents included in assets held for sale

 

45,000

   

45,000

 

Short-term restricted cash included in prepaid expenses and other current assets

 

7,145

   

3,567

 

Long-term restricted cash included in other assets

 

5,761

   

3,310

 

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

$

285,333

 

$

302,526

 

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 adjusts 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. For fiscal year 2021, management has excluded a charge related to liabilities for import tariffs related to imports in prior fiscal years. The cost of import tariffs which pertain to the current fiscal year imports were not removed from non-GAAP results. 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

   

September 30, 2021

 

June 30, 2021

 

September 30, 2020

       

per diluted

     

per diluted

     

per diluted

Dollars in thousands, except per share data    

 

$

 

share

 

$

 

share

 

$

 

share

Net loss from continuing operations

 

$

(22,397)

 

$

(0.30)

 

$

(1,842)

 

$

(0.02)

 

$

(581)

 

$

(0.01)

Adjustments:

                                   

Amortization of intangible assets

   

9,515

   

0.13

   

9,570

   

0.13

   

8,833

   

0.12

Impairment of intangible assets

   

13,364

   

0.18

   

   

   

   

Restructuring charges

   

332

   

0.00

   

   

   

114

   

0.00

Merger and acquisition costs

   

8,427

   

0.11

   

2,526

   

0.03

   

19

   

0.00

Rebranding and transformation costs

   

827

   

0.01

   

   

   

   

Indemnification asset release

   

16,007

   

0.21

   

   

   

   

Other adjustments

   

   

   

(83)

   

(0.00)

   

   

Tax adjustments (1)

   

(10,345)

   

(0.14)

   

179

   

0.00

   

153

   

0.00

Tax effect of adjustments 

   

(6,967)

   

(0.09)

   

(2,688)

   

(0.04)

   

(1,928)

   

(0.03)

Non-GAAP adjusted net income from continuing operations

 

$

8,763

 

$

0.12

 

$

7,662

 

$

0.10

 

$

6,610

 

$

0.09

Income from discontinued operations, net of tax

   

44,201

   

0.59

   

41,009

   

0.55

   

29,554

   

0.40

Adjustments to discontinued operations:

               

                 

Amortization of intangible assets

   

436

   

0.01

   

1,178

   

0.02

   

736

   

0.01

Purchase accounting impact on inventory and contracts acquired

   

211

   

0.00

   

140

   

0.00

   

   

Tax effect of adjustments related to discontinued operations

   

4,362

   

0.06

   

3,482

   

0.05

   

(2,394)

   

(0.03)

Non-GAAP adjusted net income from discontinued operations

   

49,210

   

0.66

   

45,809

   

0.61

   

27,896

   

0.38

Non-GAAP adjusted net income attributable to Brooks

 

$

57,973

 

$

0.78

 

$

53,471

 

$

0.72

 

$

34,506

 

$

0.47

   Stock based compensation, pre-tax

   

5,138

   

0.07

   

4,344

   

0.06

   

2,654

   

0.04

   Tax rate

   

15

%

 

   

15

%

 

   

15

%

 

Stock-based compensation, net of tax

   

4,367

   

0.06

   

3,692

   

0.05

   

2,256

   

0.03

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

 

$

13,130

 

$

0.18

 

$

11,354

 

$

0.15

 

$

8,866

 

$

0.12

                                     

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

   

   

74,532

   

   

74,495

   

   

74,004

 

   

Year Ended

   

September 30, 2021

 

September 30, 2020

       

per diluted

     

per diluted

Dollars in thousands, except per share data    

 

$

 

share

 

$

 

share

Net loss from continuing operations

 

$

(28,869)

 

$

(0.39)

 

$

(26,362)

 

$

(0.36)

Adjustments:

                       

Amortization of intangible assets

   

37,372

   

0.50

   

35,375

   

0.48

Restructuring related charges

   

   

   

301

     

Restructuring charges

   

385

   

0.01

   

674

   

0.01

Tariff adjustment

   

5,497

   

0.07

   

   

Merger and acquisition costs

   

20,662

   

0.28

   

501

   

0.01

Impairment of intangible assets

   

13,364

   

0.18

   

   

Rebranding and transformation costs

   

827

   

0.01

   

   

Indemnification asset release

   

16,007

   

0.21

   

   

Other adjustments

   

(83)

   

(0.00)

   

   

Tax adjustments (1)

   

(11,919)

   

(0.16)

   

(863)

   

(0.01)

Tax effect of adjustments

   

(17,314)

   

(0.23)

   

(8,451)

   

(0.11)

Non-GAAP adjusted net income from continuing operations

 

$

35,929

 

$

0.48

 

$

1,175

 

$

0.02

Income from discontinued operations, net of tax

   

139,616

   

1.88

   

91,215

   

1.23

Adjustments to discontinued operations:

                       

Amortization of intangible assets

   

2,297

   

0.03

   

2,908

   

0.04

Purchase accounting impact on inventory and contracts acquired

   

351

   

0.00

   

   

Tax effect of adjustments related to discontinued operations

   

13,570

   

0.18

   

(2,264)

   

(0.03)

Non-GAAP adjusted net income from discontinued operations

 

$

155,834

 

$

2.09

 

$

91,859

 

$

1.23

Non-GAAP adjusted net income attributable to Brooks

 

$

191,763

 

$

2.58

 

$

93,034

 

$

1.25

Stock-based compensation, pre-tax

   

20,051

   

0.27

   

10,506

   

0.14

Tax rate

   

15

%

 

   

15

%

 

Stock-based compensation, net of tax

   

17,043

 

$

0.23

   

8,930

   

0.12

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

 

$

52,972

 

$

0.71

 

$

10,105

 

$

0.14

                         

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

   

   

74,455

   

   

73,850

   

(1)

Tax adjustments during the quarter ended and year ended September 30, 2021 include $2.0 million of excluded tax benefits related to valuation allowance reversals and $16.6 million of excluded tax benefits related to tax reserve reversals. The excluded benefits are offset by the exclusion of $4.1 million of withholding tax costs associated with foreign cash repatriation and $3.4 million of charges relating to the write-off of an intangible asset that offsets the tax reserve reversal.  During the quarter ended September 30, 2021, the company realized a benefit of $1.5 million related to the timing differences in recognizing the tax benefit related to stock compensation windfall tax deductions.  The benefit for US GAAP is recognized in the period of vesting but included in the annual effective tax rate for Non-GAAP reporting. During the year ended September 30, 2020, the Company elected to exclude a deferred tax benefit of $0.5 million realized related to the extension of the 15 percent tax rate incentive in China.

   
                               
   

Quarter Ended

 

Year Ended

   

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

September 30, 

Dollars in thousands

 

2021

 

2021

 

2020

 

2021

 

2020

GAAP net income

 

$

21,804

 

$

39,166

 

$

28,973

 

$

110,747

 

$

64,853

Adjustments:

                             

Less: Income from discontinued operations

   

(44,201)

   

(41,009)

   

(29,554)

   

(139,616)

   

(91,215)

Less: Interest income

   

(129)

   

(409)

   

16

   

(632)

   

(849)

Add: Interest expense

   

552

   

477

   

679

   

2,037

   

2,944

Add: Income tax benefit

   

(15,480)

   

(760)

   

(1,620)

   

(20,100)

   

(13,930)

Add: Depreciation

   

5,055

   

4,873

   

5,195

   

19,488

   

18,747

Add: Amortization of completed technology

   

1,873

   

2,173

   

2,077

   

8,073

   

8,099

Add: Amortization of customer relationships and acquired intangible assets

   

7,642

   

7,396

   

6,756

   

29,299

   

27,276

(Loss) earnings before interest, taxes, depreciation and amortization

 

$

(22,884)

 

$

11,907

 

$

12,522

 

$

9,296

 

$

15,925

                               
   

Quarter Ended

 

Year Ended

   

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

September 30, 

Dollars in thousands

 

2021

 

2021

 

2020

 

2021

 

2020

(Loss) earnings before interest, taxes, depreciation and amortization

 

$

(22,884)

 

$

11,907

 

$

12,522

 

$

9,296

 

$

15,925

Adjustments:

                             

Add: Stock-based compensation

   

5,138

   

4,344

   

2,719

   

20,051

   

10,817

Add: Restructuring charges

   

332

   

   

114

   

385

   

674

Add: Restructuring related charges

   

   

   

   

   

301

Add: Merger and acquisition costs

   

8,427

   

2,526

   

19

   

20,662

   

502

Add: Tariff adjustment

   

   

   

   

5,497

   

Impairment of intangible assets

   

13,364

   

   

   

13,364

   

Rebranding and transformation costs

   

827

   

   

   

827

   

Indemnification asset release

   

16,007

   

   

   

16,007

   

Less: Other adjustments

   

   

(83)

   

   

(83)

   

Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations

 

$

21,211

 

$

18,694

 

$

15,374

 

$

86,006

 

$

28,219

 

   

Quarter Ended

 

Dollars in thousands

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

GAAP gross profit

 

$

66,142

 

48.3

%

 

$

62,431

 

48.4

%

 

$

52,538

 

48.5

%

Adjustments:

                                   

Amortization of completed technology

   

1,873

 

1.4

     

2,173

 

1.7

     

2,077

 

1.9

 

Other adjustment

   

 

     

(83)

 

(0.1)

     

 

0.0

 

Non-GAAP adjusted gross profit

 

$

68,015

 

49.7

%

 

$

64,521

 

50.0

%

 

$

54,615

 

50.5

%

                                     
                         
   

Year Ended

Dollars in thousands

 

September 30, 2021

 

September 30, 2020

GAAP gross profit

 

$

243,809

 

47.5

%

 

$

172,148

 

44.3

%

Adjustments:

                       

Amortization of completed technology

   

8,073

 

1.6

     

8,099

 

2.1

 

Restructuring related charges

   

 

     

301

 

0.1

 

Other adjustment

   

(83)

 

0.0

             

Tariff adjustment

   

5,497

 

1.1

     

 

 

Non-GAAP adjusted gross profit

 

$

257,296

 

50.1

%

 

$

180,548

 

46.5

%

                                                                         
                                                                         
   

Brooks Life Sciences Products

 

Brooks Life Sciences Services

   

Quarter Ended

 

Quarter Ended

Dollars in thousands

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

GAAP gross profit

 

$

25,329

 

47.7

%

 

$

22,655

 

46.6

%

 

$

16,701

 

43.2

%

 

$

40,815

 

48.7

%

 

$

39,772

 

49.4

%

 

$

35,832

 

51.5

%

Adjustments:

                                                                       

Amortization of completed technology

   

132

 

0.2

     

432

 

0.9

     

293

 

0.8

     

1,741

 

2.1

     

1,742

 

2.2

     

1,784

 

2.6

 

Other adjustment

   

 

     

 

     

 

     

 

     

(83)

 

(0.1)

     

 

 

Non-GAAP adjusted gross profit

 

$

25,461

 

47.9

%

 

$

23,087

 

47.5

%

 

$

16,994

 

44.0

%

 

$

42,556

 

50.8

%

 

$

41,431

 

51.5

%

 

$

37,616

 

54.0

%

                                                                         
                                               
   

Brooks Life Sciences Products

Brooks Life Sciences Services

   

Year Ended

Year Ended

Dollars in thousands

 

September 30, 2021

 

September 30, 2020

September 30, 2021

 

September 30, 2020

GAAP gross profit

 

$

92,566

 

46.4

%

 

$

55,718

 

42.9

%

$

151,210

 

48.1

%

 

$

116,428

 

45.0

%

Adjustments:

                                             

Amortization of completed technology

   

1,117

 

0.6

     

1,165

 

0.9

   

6,957

 

2.2

     

6,935

 

2.7

 

Restructuring related charges

   

 

     

 

   

 

     

301

 

0.1

 

Other adjustment

   

 

     

 

   

(83)

 

(0.0)

     

 

 

Tariff adjustment

   

 

     

 

   

5,497

 

1.8

     

 

 

Non-GAAP adjusted gross profit

 

$

93,683

 

46.9

%

 

$

56,883

 

43.8

%

$

163,581

 

52.1

%

 

$

123,664

 

47.8

%

                                               
                                     
   

Brooks Life Sciences Products

 

Brooks Life Sciences Services

   

Quarter Ended

 

Quarter Ended

   

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

June 30, 

 

September 30, 

Dollars in thousands

 

2021

 

2021

 

2020

 

2021

 

2021

 

2020

GAAP operating profit

 

$

6,470

 

$

4,629

 

$

1,007

 

$

2,602

 

$

4,115

 

$

4,932

Adjustments:

                                   

Amortization of completed technology

   

132

   

432

   

293

   

1,741

   

1,742

   

1,784

Other adjustment

   

   

   

   

   

(83)

   

Non-GAAP adjusted operating profit

 

$

6,602

 

$

5,061

 

$

1,300

 

$

4,343

 

$

5,774

 

$

6,716

                                                       
                                                       
   

Total Segments

 

Corporate

 

Total

   

Quarter Ended

 

Quarter Ended

 

Quarter Ended

   

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

June 30, 

 

September 30, 

Dollars in thousands

 

2021

 

2021

 

2020

 

2021

 

2021

 

2020

 

2021

 

2021

 

2020

GAAP operating profit (loss)

 

$

9,072

 

$

8,744

 

$

5,939

 

$

(30,314)

 

$

(9,627)

 

$

(7,321)

 

$

(21,242)

 

$

(883)

 

$

(1,382)

Adjustments:

                                                     

Amortization of completed technology

   

1,873

   

2,174

   

2,077

   

   

   

   

1,873

   

2,174

   

2,077

Amortization of customer relationships and acquired intangible assets

   

   

   

   

7,642

   

7,396

   

6,756

   

7,642

   

7,396

   

6,756

Restructuring charges

   

   

   

   

332

   

   

114

   

332

   

   

114

Impairment of intangible assets

   

   

   

   

13,364

   

   

   

13,364

   

   

Rebranding and transformation costs

   

   

   

   

827

   

   

   

827

   

   

Other adjustment

   

   

(83)

   

   

   

   

   

   

(83)

   

Merger and acquisition costs

   

   

   

   

8,427

   

2,526

   

19

   

8,427

   

2,526

   

19

Non-GAAP adjusted operating profit (loss)

 

$

10,945

 

$

10,835

 

$

8,016

 

$

278

 

$

295

 

$

(432)

 

$

11,223

 

$

11,130

 

$

7,584

                         
                         
   

Brooks Life Sciences Products

 

Brooks Life Sciences Services

   

Year Ended

 

Year Ended

Dollars in thousands

 

September 30, 

 

September 30, 

 

September 30, 

 

September 30, 

   

2021

 

2020

 

2021

 

2020

GAAP operating profit (loss)

 

$

21,977

 

$

(4,206)

 

$

10,289

 

$

(4,376)

Adjustments:

                       

Amortization of completed technology

   

1,117

   

1,165

   

6,957

   

6,935

Restructuring related charges

   

   

   

   

301

Other adjustment

   

   

   

(83)

   

Tariff adjustment

   

   

   

5,497

   

Non-GAAP adjusted operating profit

 

$

23,094

 

$

(3,041)

 

$

22,660

 

$

2,860

                                     
                                     
   

Total Segments

 

Corporate

 

Total

   

Year Ended

 

Year Ended

 

Year Ended

Dollars in thousands

 

September 30, 

 

September 30, 

 

September 30, 

 

September 30, 

 

September 30, 

 

September 30, 

   

2021

 

2020

 

2021

 

2020

 

2021

 

2020

GAAP operating profit (loss)

 

$

32,266

 

$

(8,582)

 

$

(63,355)

 

$

(28,018)

 

$

(31,089)

 

$

(36,600)

Adjustments:

                                   

Amortization of completed technology

   

8,073

   

8,100

   

   

   

8,073

   

8,100

Amortization of customer relationships and acquired intangible assets

   

   

   

29,299

   

27,276

   

29,299

   

27,276

Restructuring charges

   

   

   

385

   

674

   

385

   

674

Restructuring related charges

   

   

301

   

   

   

   

301

Tariff adjustment

   

5,497

   

   

   

   

5,497

   

Impairment of intangible assets

   

         

13,364

         

13,364

   

Rebranding and transformation costs

   

         

827

         

827

   

Other adjustment

   

(83)

   

   

   

   

(83)

   

Merger and acquisition costs

   

   

   

20,662

   

501

   

20,662

   

501

Non-GAAP adjusted operating profit (loss)

 

$

45,753

 

$

(181)

 

$

1,182

 

$

433

 

$

46,935

 

$

252

 

(PRNewsfoto/Brooks Automation)

 

 

SOURCE Brooks Automation

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