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Brooks Automation Reports Results of Fourth Quarter of Fiscal 2021, Ended September 30, 2021, and Announces Quarterly Cash Dividend

November 10, 2021 GMT
(PRNewsfoto/Brooks Automation)
(PRNewsfoto/Brooks Automation)
(PRNewsfoto/Brooks Automation)

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

%

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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

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SOURCE Brooks Automation