Brooks Automation Reports its Fourth Quarter and Year-End Results of Fiscal 2020, Ended September 30, 2020, and Announces Quarterly Cash Dividend

Rhea-AI Summary

Brooks Automation reported strong financial results for Q4 and FY 2020, with revenues of $246 million and $897 million, reflecting year-over-year increases of 24% and 15%, respectively. Diluted EPS from continuing operations surged to $0.39, up from $0.07 in Q4 2019. The Semiconductor Solutions and Life Sciences segments demonstrated robust growth, with increases of 31% and 15% in Q4. Non-GAAP diluted EPS also rose by 100% to $0.47. The company ended Q4 with $306 million in cash and announced a dividend of $0.10 per share. For Q1 FY 2021, revenue guidance is set between $237 million and $251 million.

Positive

• Q4 revenue increased 24% YoY to $246 million.
• FY 2020 revenue grew 15% YoY to $897 million.
• Diluted EPS from continuing operations rose 447% YoY to $0.39.
• Adjusted EBITDA increased 75% YoY to $54 million.
• Semiconductor Solutions revenue up 31% YoY, Life Sciences up 15% YoY.

Negative

• Total diluted EPS fell from $6.04 in FY 2019 to $0.88 in FY 2020 due to prior year's gains from discontinued operations.

CHELMSFORD, Mass., Nov. 10, 2020 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the fourth fiscal quarter and fiscal year, ended September 30, 2020.

Financial Results Summary
		Quarter Ended										Year Ended
Dollars in millions, except per share data		September 30,			September 30,							September 30,			September 30,
		2020			2019			Change				2020			2019			Change
Revenue		$	246		$	199		24	%			$	897		$	781		15	%
Semiconductor Solutions		$	138		$	105		31	%			$	509		$	447		14	%
Life Sciences		$	108		$	94		15	%			$	389		$	334		16	%
Diluted EPS Continuing Operations		$	0.39		$	0.07		447	%			$	0.88		$	0.13		567	%
Diluted EPS Total		$	0.39		$	5.68		NM				$	0.88		$	6.04		NM
Non-GAAP Diluted EPS Continuing Operations		$	0.47		$	0.23		100	%			$	1.26		$	0.76		65	%
Adjusted EBITDA		$	54		$	31		75	%			$	161		$	128		26	%

Management Comments
"We delivered a robust quarter and completed a milestone year for the company," commented Steve Schwartz, President and CEO. "The Semiconductor Solutions and Life Sciences businesses each continued their momentum during the quarter, once again achieving operating margin expansion and delivering double-digit growth for the year. The growth is proof of our ability to lead and service two markets that have remained robust in spite of the pandemic. Our global team's dedication and our business model's strength keeps us positioned to address the ever-changing challenges of these unprecedented times as we move into fiscal 2021." 

Summary of GAAP Results

Fourth Quarter, Fiscal 2020

• Revenue for the fourth fiscal quarter was $246 million, up 24% year over year. Diluted EPS from continuing operations was $0.39 per share compared to $0.07 per share in the fourth quarter of 2019.
• Life Sciences revenue of $108 million grew 15% year over year and 16% sequentially. Year-over-year organic growth was 17%. Life Science Products grew 20% year over year, and Life Science Services grew 12%. Organic revenue growth in Q4, from what was previously defined as Sample Management, was 14% year-over-year.
• Semiconductor Solutions revenue was $138 million, an increase of 31% year over year and 9% sequentially. The growth was primarily driven by 50% year-over-year growth in Automation, while Contamination Control Solutions and Services each contributed single-digit growth.  

Full Year, Fiscal 2020

• Revenue for fiscal 2020 was $897 million, an increase of 15% compared to fiscal 2019, supported by double-digit growth in both Life Sciences and Semiconductor.
• Life Sciences revenue of $389 million was 16% higher than fiscal 2019. Life Sciences Products grew 9% and Life Sciences Services grew 20%, year over year. In total, the Life Sciences business organic growth was 10%, including 7% organic growth from Sample Management.
• Semiconductor Solutions revenue was $509 million, up 14% over the prior year. Growth was led by Contamination Control Solutions at 33%, while Automation products and Services increased 8% and 1%, respectively.
• Pre-tax income from continuing operations of $75 million was up $66 million from the prior year. The improvement was significantly driven by operating income of $78 million, which was up $32 million, or 70%, year over year. Net interest expense was $2 million for the year, a reduction of $19 million from 2019. In addition, the prior fiscal year included a $14 million loss on the extinguishment of debt.
• The GAAP effective tax rate was 13.3% for the year.
• Diluted EPS from continuing operations was $0.88 compared to $0.13 in 2019. Total diluted EPS for this fiscal year was $0.88 compared to $6.04 in 2019. Discontinued operations in fiscal 2019 provided $5.91 per diluted share primarily from the $409 million gain on the sale of the Semiconductor Cryogenics business.

Summary of Non-GAAP Results for Continuing Operations

Fourth Quarter, Fiscal 2020

• Diluted EPS from continuing operations for the fourth quarter was $0.47, up 100% over the prior year and up 48% sequentially.
• Operating income was $45 million, an increase of 112% year over year and 51% sequentially. Operating margin was 18.2%, up 760 basis points year over year and 470 basis points sequentially. The margin expansion was driven by gross margin improvements coupled with operating expense control.
• Gross margin was 46.6%, an increase of 490 basis points year over year and 310 basis points sequentially. Gross margin expansion was driven by improvements in both Life Sciences and Semiconductor Solutions, both sequentially and year over year.
• The total Life Sciences operating margin was 16.2%, an increase of 900 basis points year over year and 910 basis points from the prior quarter. Gross margin performance of 50.5%, which was up 790 basis points year over year and up 580 basis points sequentially, was the primary driver of improved operating margin. The Life Sciences Products business gross margin remained stable with a 50 basis point decline sequentially, and an increase of 390 basis points year over year, driven by sustained improvements achieved earlier in the fiscal year. The Life Sciences Services sequential improvement consisted of 590 basis points that was driven by improved performance, and another 350 basis points from the favorable mix effect of unwinding the Alliance support agreement with RUCDR. In the Alliance arrangement, RUCDR performed the substantive services while Brooks Life Sciences provided contract management and other support services which came at low gross margins. In this fourth fiscal quarter, we dissolved the business arrangement and going forward we will have only a nominal amount of revenue in final support of some ongoing contracts. The reported margins for Life Science Services are up 1,020 basis points year over year.
• Semiconductor Solutions operating margin was 20.2%, an increase of 720 basis points from the prior year and up 170 basis points from the third quarter of 2020. Gross margin of 43.6%, up 260 basis points year over year and 90 basis points sequentially, was the primary driver of the operating margin expansion.
• Adjusted EBITDA was $54 million, up 75% from the fourth quarter of 2019 and 34% sequentially.

Full Year, Fiscal 2020

• Non-GAAP diluted EPS from continuing operations was $1.26, a 65% increase compared to $0.76 in 2019. The increase reflects the 15% revenue growth described in the GAAP summary, 200 basis points improvement in non-GAAP operating margin, and a reduction in net interest expense of $19 million.
• The non-GAAP effective tax rate for the year was 21.9%.
• Operating income was $122 million, a 36% increase from 2019, supported by non-GAAP gross margins of 43.6%, which improved 170 basis points. The increase in gross margin was driven by 410 basis points improvement in the Life Sciences gross margin.

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 for the fourth quarter was $52 million. On a full year basis, excluding the $92 million tax payment made in the second quarter for the gain on the sale of the Semiconductor cryogenics business, cash flow from operations increased 24% to $129 million. This compares to cash from operations in 2019 of $104 million excluding the transaction fees associated with the sale of the Semiconductor cryogenics business.
• The Company ended the fourth quarter with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $306 million. With total debt of $51 million, net cash at September 30, 2020 was $255 million.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on December 17, 2020 to stockholders of record on December 4, 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 First Quarter Fiscal 2021
The Company announced revenue and earnings guidance for the first quarter of fiscal 2021.  Revenue is expected to be in the range of $237 million to $251 million and non-GAAP diluted earnings per share is expected to be in the range of $0.37 to $0.47.  GAAP diluted earnings per share for the first fiscal quarter is expected to be in the range of $0.27 to $0.37.

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 800-897-4057 (US & Canada only) or +1-212-231-2914 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 (Nasdaq: BRKS) 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							Year Ended
				September 30,							September 30,
				2020			2019				2020			2019
Revenue
Products				$	160,547		$	122,202			$	573,876		$	504,029
Services					85,649			77,009				323,397			276,819
Total revenue					246,196			199,211				897,273			780,848
Cost of revenue
Products					91,400			72,658				337,442			302,237
Services					42,827			46,399				179,807			162,351
Total cost of revenue					134,227			119,057				517,249			464,588
Gross profit					111,969			80,154				380,024			316,260
Operating expenses
Research and development					15,336			14,882				59,063			56,368
Selling, general and administrative					62,271			53,451				241,137			211,960
Restructuring charges					241			1,209				1,366			1,894
Total operating expenses					77,848			69,542				301,566			270,222
Operating income					34,121			10,612				78,458			46,038
Interest income					(16)			602				849			1,449
Interest expense					(679)			(903)				(2,944)			(22,250)
Loss on extinguishment of debt					—			(5,288)				—			(14,339)
Other expenses, net					(73)			(339)				(1,391)			(1,455)
Income before income taxes					33,353			4,684				74,972			9,443
Income tax benefit					4,380			(511)				9,937			(111)
Income  from continuing operations				$	28,973		$	5,195			$	65,035		$	9,554
Income (loss) from discontinued operations, net of tax					—			407,130				(182)			427,862
Net income				$	28,973		$	412,325			$	64,853		$	437,416
Basic net income per share:
Income from continuing operations				$	0.39		$	0.07			$	0.88		$	0.13
Income (loss) from discontinued operations, net of tax					-			5.63				(0.00)			5.95
Basic net income per share				$	0.39		$	5.71			$	0.88		$	6.08
Diluted net income per share:
Income from continuing operations				$	0.39		$	0.07			$	0.88		$	0.13
Income (loss) from discontinued operations, net of tax					-			5.61				(0.00)			5.91
Diluted net income per share				$	0.39		$	5.68			$	0.88		$	6.04
Weighted average shares outstanding used in computing net income per share:
Basic					73,808			72,273				73,557			71,992
Diluted					74,004			72,558				73,850			72,386

 

BROOKS AUTOMATION, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data)
	September 30,			September 30,
	2020			2019
Assets
Current assets
Cash and cash equivalents	$	295,649		$	301,642
Marketable securities		67			34,124
Accounts receivable, net		188,291			165,602
Inventories		114,834			99,445
Prepaid expenses and other current assets		50,612			46,332
Total current assets		649,453			647,145
Property, plant and equipment, net		117,665			100,669
Long-term marketable securities		3,101			2,845
Long-term deferred tax assets		4,979			5,064
Goodwill		501,536			488,602
Intangible assets, net		218,325			251,168
Other assets		64,066			20,506
Total assets	$	1,559,125		$	1,515,999
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long-term debt	$	827		$	829
Accounts payable		61,758			58,919
Deferred revenue		31,357			29,435
Accrued warranty and retrofit costs		8,201			7,175
Accrued compensation and benefits		43,267			31,375
Accrued restructuring costs		181			1,040
Accrued income taxes payable		10,094			99,263
Accrued expenses and other current liabilities		55,433			44,234
Total current liabilities		211,118			272,270
Long-term debt		49,588			50,315
Long-term tax reserves		19,168			18,274
Long-term deferred tax liabilities		17,798			20,636
Long-term pension liabilities		6,406			5,338
Long-term operating lease liabilities		31,855			—
Other long-term liabilities		9,578			10,212
Total liabilities		345,511			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, 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2020, 85,759,700 shares issued and 72,297,831 shares outstanding at September 30, 2019		873			857
Additional paid-in capital		1,942,850			1,921,954
Accumulated other comprehensive income		21,919			3,511
Treasury stock at cost - 13,461,869 shares		(200,956)			(200,956)
Accumulated deficit		(551,072)			(586,412)
Total stockholders' equity		1,213,614			1,138,954
Total liabilities and stockholders' equity	$	1,559,125		$	1,515,999

 

BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)
	Year Ended
	September 30,
	2020			2019
Cash flows from operating activities
Net income	$	64,853		$	437,416
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		65,496			54,454
Impairment of property, plant and equipment		—			285
Stock-based compensation		16,317			20,113
Amortization of premium on marketable securities and deferred financing costs		233			1,121
Earnings of equity method investments		—			(6,188)
Deferred income taxes		(5,407)			(15,161)
Loss on extinguishment of debt		—			14,339
Other gains on disposals of assets		226			209
Loss (gain) on sale of divestiture, net of tax		319			(408,575)
Contingent transaction fees paid stemming from divestiture		—			(13,388)
Taxes paid stemming from divestiture		(91,500)			—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(18,755)			(11,445)
Inventories		(13,144)			(2,933)
Prepaid expenses and current assets		25,642			(16,009)
Accounts payable		792			4,695
Deferred revenue		(139)			4,213
Accrued warranty and retrofit costs		760			1,109
Accrued compensation and tax withholdings		11,097			(6,453)
Accrued restructuring costs		(865)			399
Proceeds from recovery on insurance claim		—			1,082
Accrued expenses and current liabilities		(18,059)			31,615
Net cash provided by operating activities		37,866			90,898
Cash flows from investing activities
Purchases of property, plant and equipment		(39,924)			(23,861)
Purchases of marketable securities		(10,894)			(35,225)
Sales of marketable securities		2,492			48,903
Maturities of marketable securities		42,328			2,557
Proceeds from divestiture		—			661,642
Acquisitions, net of cash acquired		(15,744)			(442,704)
Purchase of other investment		(1,000)			—
Net cash (used in) provided by investing activities		(22,742)			211,312
Cash flows from financing activities
Proceeds from term loans, net of discount		—			686,386
Proceeds from issuance of common stock		4,595			3,422
Payments of financing costs		—			(687)
Principal payments on debt		(828)			(850,190)
Payments of finance leases		(1,277)			(1,197)
Common stock dividends paid		(29,513)			(28,895)
Net cash used in financing activities		(27,023)			(191,161)
Effects of exchange rate changes on cash and cash equivalents		9,254			(3,586)
Net (decrease) increase in cash and cash equivalents		(2,645)			107,463
Cash, cash equivalents and restricted cash, beginning of period		305,171			197,708
Cash and cash equivalents and restricted cash, end of period	$	302,526		$	305,171
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	295,649		$	301,642
Short-term restricted cash included in prepaid expenses and other current assets		3,567			3,529
Long-term restricted cash included in other assets		3,310			—
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	302,526		$	305,171

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. 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, 2020						June 30, 2020						September 30, 2019
					per diluted						per diluted						per diluted
Dollars in thousands, except per share data		$			share			$			share			$			share
Net income from continuing operations		$	28,973		$	0.39		$	13,696		$	0.19		$	5,195		$	0.07
Adjustments:
Amortization of intangible assets			10,442			0.14			10,390			0.14			8,931			0.12
Restructuring charges			241			0.00			(29)			(0.00)			1,209			0.02
Loss on extinguishment of debt			—			—			—			—			5,288			0.07
Merger costs			19			0.00			10			0.00			134			0.00
Restructuring related charges			—			—			301			0.00			285			0.00
Tax adjustments (1)			(800)			(0.01)			1,502			0.02			—			—
Tax effect of adjustments			(4,369)			(0.06)			(2,561)			(0.03)			(4,165)			(0.06)
Non-GAAP adjusted net income from continuing operations		$	34,506		$	0.47		$	23,309		$	0.32		$	16,877		$	0.23
Stock based compensation, pre-tax			3,969			0.05			3,725			0.05			4,941			0.07
Tax rate			15	%		—			15	%		—			15	%		—
Stock-based compensation, net of tax			3,374			0.05			3,166			0.04			4,200			0.06
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations		$	37,880		$	0.51		$	26,475		$	0.36		$	21,077		$	0.29
Shares used in computing non-GAAP diluted net income per share			—			74,004			—			73,860			—			72,558

 

		Year Ended
		September 30, 2020						September 30, 2019
					per diluted						per diluted
Dollars in thousands, except per share data		$			share			$			share
Net income from continuing operations		$	65,035		$	0.88		$	9,554		$	0.13
Adjustments:
Purchase accounting impact on inventory and contracts acquired			—			—			184			0.00
Amortization of intangible assets			41,773			0.57			35,161			0.49
Restructuring related charges			301			0.00			285
Restructuring charges			1,366			0.02			1,894			0.03
Loss on extinguishment of debt			—			—			14,339			0.20
Merger costs			501			0.01			6,679			0.09
Tax Reform - rate change applied to deferred tax liabilities (2)			—			—			1,796			0.02
Tax adjustments (1)			(3,510)			(0.05)			(233)			(0.00)
Tax effect of adjustments			(12,561)			(0.17)			(14,328)			(0.20)
Non-GAAP adjusted net income from continuing operations		$	92,905		$	1.26		$	55,331		$	0.76
Stock-based compensation, pre-tax			16,317			0.22			19,516			0.27
Tax rate			15	%		—			15	%		—
Stock-based compensation, net of tax			13,869		$	0.19			16,589			0.23
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations		$	106,774		$	1.45		$	71,920		$	0.99
Shares used in computing non-GAAP diluted net income per share			—			73,850			—			72,386

(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									Year Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
Dollars in thousands		2020			2020			2019			2020			2019
GAAP net income		$	28,973		$	13,696		$	412,325		$	64,853		$	437,416
Adjustments:
Less: Loss (income) from discontinued operations			—			—			(407,130)			182			(427,862)
Less: Interest income			16			(29)			(602)			(849)			(1,449)
Add: Interest expense			679			810			902			2,944			22,250
Add: Income tax benefit			4,380			5,120			(511)			9,937			(111)
Add: Depreciation			5,295			6,290			5,094			23,723			19,289
Add: Amortization of completed technology			2,813			2,779			2,764			11,007			10,424
Add: Amortization of customer relationships and acquired intangible assets			7,629			7,611			6,167			30,766			24,737
Add: Loss on extinguishment of debt			—			—			5,287			—			14,339
Earnings before interest, taxes, depreciation and amortization		$	49,785		$	36,277		$	24,296		$	142,563		$	99,033

 

		Quarter Ended									Year Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
Dollars in thousands		2020			2020			2019			2020			2019
Earnings before interest, taxes, depreciation and amortization		$	49,785		$	36,277		$	24,296		$	142,563		$	99,033
Adjustments:
Add: Stock-based compensation			3,969			3,725			4,941			16,317			19,516
Add: Restructuring charges			240			(29)			1,209			1,366			1,894
Add: Restructuring related charges			—			301			285			301			285
Add: Purchase accounting impact on inventory and contracts acquired			—			—			—			—			184
Add: Merger costs			19			10			134			502			6,679
Adjusted earnings before interest, taxes, depreciation and amortization		$	54,013		$	40,284		$	30,865		$	161,049		$	127,591

 

		Quarter Ended
Dollars in thousands		September 30, 2020						June 30, 2020						September 30, 2019
GAAP gross profit/margin percentage		$	111,969		45.5	%		$	92,788		42.1	%		$	80,154		40.2	%
Adjustments:
Amortization of completed technology			2,813		1.1				2,779		1.3				2,764		1.4
Restructuring related charges			—		—				301		0.1				285		0.1
Non-GAAP adjusted gross profit/gross margin percentage		$	114,782		46.6	%		$	95,868		43.5	%		$	83,203		41.8	%
															1

 

		Year Ended
Dollars in thousands		September 30, 2020						September 30, 2019
GAAP gross profit/margin percentage		$	380,024		42.4	%		$	316,260		40.5	%
Adjustments:
Amortization of completed technology			11,007		1.2				10,424		1.3
Purchase accounting impact on inventory and contracts acquired			—		—				184		—
Restructuring related charges			301		0.0				285		0
Non-GAAP adjusted gross profit/gross margin percentage		$	391,332		43.6	%		$	327,153		41.9	%

 

		Brooks Semiconductor Solutions Group
		Quarter Ended
Dollars in thousands		Sep 30, 2020						Jun 30, 2020						Sep 30, 2019
GAAP gross profit/margin percentage		$	59,435		43.1	%		$	53,524		42.1	%		$	42,262		40.2	%
Adjustments:
Amortization of completed technology			736		0.5				717		0.6				868		0.8
Non-GAAP adjusted gross profit/margin percentage		$	60,171		43.6	%		$	54,241		42.7	%		$	43,130		41.1	%

 

		Brooks Life Sciences Products																		Brooks Life Sciences Services
		Quarter Ended																		Quarter Ended
Dollars in thousands		Sep 30, 2020						Jun 30, 2020						Sep 30, 2019						Sep 30, 2020						Jun 30, 2020						Sep 30, 2019
GAAP gross profit/margin percentage		$	16,701		43.2	%		$	13,258		43.6	%		$	12,575		39.2	%		$	35,832		51.5	%		$	26,006		41.4	%		$	25,316		40.8	%
Adjustments:
Amortization of completed technology			293		0.8				287		0.9				304		0.9				1,784		2.6				1,776		2.8				1,592		2.6
Restructuring related charges			—		—				—		—				—		—				—		—				301		0.5				285		0.5
Non-GAAP adjusted gross profit/margin percentage		$	16,994		44.0	%		$	13,545		44.5	%		$	12,879		40.1	%		$	37,616		54.0	%		$	28,083		44.7	%		$	27,193		43.8	%

 

		Brooks Life Sciences Total
		Quarter Ended
Dollars in thousands		Sep 30, 2020						Jun 30, 2020						Sep 30, 2019
GAAP gross profit/margin percentage		$	52,533		48.5	%		$	39,264		42.1	%		$	37,891		40.2	%
Adjustments:
Amortization of completed technology			2,077		1.9				2,063		2.2				1,896		2.0
Purchase accounting impact on inventory and contracts acquired			—		—				—		—				—		—
Restructuring related charges			—		—				301		0.3				285		0.3
Non-GAAP adjusted gross profit/margin percentage		$	54,610		50.5	%		$	41,628		44.6	%		$	40,072		42.6	%

 

		Brooks Semiconductor Solutions Group
		Year Ended September 30,
Dollars in thousands		2020						2019
GAAP gross profit/margin percentage		$	207,896		40.9	%		$	181,659		40.7	%
Adjustments:
Amortization of completed technology			2,908		0.6				3,600		0.8
Purchase accounting impact on inventory and contracts acquired			—		—				184		0.0
Non-GAAP adjusted gross profit/margin percentage		$	210,804		41.4	%		$	185,443		41.5	%

 

		Brooks Life Sciences Products											Brooks Life Sciences Services
		Year Ended September 30,											Year Ended September 30,
Dollars in thousands		2020						2019					2020						2019
GAAP gross profit/margin percentage		$	55,718		42.9	%		$	43,577		36.6	%	$	116,428		45.0	%		$	91,027		42.3	%
Adjustments:
Amortization of completed technology			1,165		0.9				1,238		1.0			6,935		2.7				5,586		2.6
Restructuring related charges			—		—				—		—			301		0.1				285		0.1
Non-GAAP adjusted gross profit/margin percentage		$	56,883		43.8	%		$	44,815		37.7	%	$	123,664		47.8	%		$	96,898		45.0	%

 

		Brooks Life Sciences Total
		Year Ended September 30,
Dollars in thousands		2020						2019
GAAP gross profit/margin percentage		$	172,146		44.3	%		$	134,604		40.3	%
Adjustments:											-
Amortization of completed technology			8,100		2.1				6,824		2.0
Restructuring related charges			301		0.1				285		0.1
Non-GAAP adjusted gross profit/margin percentage		$	180,547		46.5	%		$	141,713		42.4	%

 

		Brooks Semiconductor Solutions Group									Brooks Life Sciences Products									Brooks Life Sciences Services									Brooks Life Sciences Total
		Quarter Ended									Quarter Ended									Quarter Ended									Quarter Ended
		Sept 30,			Jun 30,			Sept 30,			Sept 30,			Jun 30,			Sept 30,			Sept 30,			Jun 30,			Sept 30,			Sept 30,			Jun 30,			Sept 30,
Dollars in thousands		2020			2020			2019			2020			2020			2019			2020			2020			2019			2020			2020			2019
GAAP operating profit		$	27,094		$	22,697		$	12,726		$	4,072		$	2,195		$	828		$	11,353		$	2,032		$	3,758		$	15,425		$	4,227		$	4,586
Adjustments:
Amortization of completed technology			736			717			868			293			287			304			1,784			1,776			1,592			2,077			2,063			1,896
Restructuring related charges			—			—			—			—			—			—			—			301			285			—			301			285
Non-GAAP adjusted operating profit		$	27,830		$	23,414		$	13,594		$	4,365		$	2,482		$	1,132		$	13,137		$	4,109		$	5,635		$	17,502		$	6,591		$	6,767

 

		Total Segments									Corporate									Total
		Quarter Ended									Quarter Ended									Quarter Ended
		Sept 30,			Jun 30,			Sept 30,			Sept 30,			Jun 30,			Sept 30,			Sept 30,			Jun 30,			Sept 30,
Dollars in thousands		2020			2020			2019			2020			2020			2019			2020			2020			2019
GAAP operating profit (loss)		$	42,519		$	26,924		$	17,312		$	(8,398)		$	(7,825)		$	(6,700)		$	34,121		$	19,099		$	10,612
Adjustments:
Amortization of completed technology			2,813			2,780			2,764			—			—			—			2,813			2,780			2,764
Amortization of customer relationships and acquired intangible assets			—			—			—			7,629			7,611			6,167			7,629			7,611			6,167
Restructuring charges			—			—			—			241			(29)			1,209			241			(29)			1,209
Merger costs			—			—			—			19			10			134			19			10			134
Restructuring related charges			—			301			285			—			—			—			—			301			285
Non-GAAP adjusted operating profit (loss)		$	45,332		$	30,005		$	20,361		$	(509)		$	(233)		$	810		$	44,823		$	29,772		$	21,171

 

		Brooks Semiconductor Solutions Group						Brooks Life Sciences Products						Brooks Life Sciences Services							Brooks Life SciencesTotal
		Year Ended September 30,						Year Ended September 30,						Year Ended September 30,							Year Ended September 30,
Dollars in thousands		2020			2019			2020			2019			2020			2019				2020			2019
GAAP operating profit		$	80,043		$	66,176		$	8,188		$	(3,073)		$	21,596		$	16,595			$	29,784		$	13,522
Adjustments:
Amortization of completed technology			2,908			3,600			1,165			1,238			6,935			5,586				8,100			6,824
Purchase accounting impact on inventory and contracts acquired			—			184			—			—			—			285				—			285
Restructuring related charges			—			—			—			—			301			—				301			—
Non-GAAP adjusted operating profit		$	82,951		$	69,960		$	9,353		$	(1,835)		$	28,832		$	22,466			$	38,185		$	20,631

 

		Total Segments						Corporate						Total
		Year Ended September 30,						Year Ended September 30,						Year Ended September 30,
Dollars in thousands		2020			2019			2020			2019			2020			2019
GAAP operating profit (loss)		$	109,827		$	79,698		$	(31,369)		$	(33,660)		$	78,458		$	46,038
Adjustments:
Amortization of completed technology			11,008			10,424			—			—			11,008			10,424
Amortization of customer relationships and acquired intangible assets			—			—			30,766			24,737			30,766			24,737
Restructuring charges			—			—			1,366			1,894			1,366			1,894
Purchase accounting impact on inventory and contracts acquired			—			469			—			—			—			469
Merger costs			—			—			501			6,679			501			6,679
Restructuring related charges			301			—			—			—			301			—
Non-GAAP adjusted operating profit (loss)		$	121,136		$	90,591		$	1,264		$	(350)		$	122,400		$	90,241

 

 

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SOURCE Brooks Automation

FAQ

What were Brooks Automation's Q4 2020 financial results?

Brooks Automation reported Q4 2020 revenues of $246 million, a 24% increase from the previous year, and diluted EPS of $0.39.

How did Brooks Automation perform in fiscal year 2020?

For fiscal year 2020, Brooks Automation recorded revenues of $897 million, up 15% year-over-year, with diluted EPS from continuing operations at $0.88.

What is Brooks Automation's guidance for Q1 FY 2021?

Brooks Automation expects Q1 FY 2021 revenue between $237 million and $251 million, with non-GAAP diluted EPS projected between $0.37 and $0.47.

What were the growth rates for Semiconductor and Life Sciences segments?

In Q4 2020, Semiconductor Solutions saw a 31% revenue increase, while Life Sciences grew 15% year-over-year.

What was the cash position of Brooks Automation at the end of Q4 2020?

Brooks Automation ended Q4 2020 with $306 million in cash and cash equivalents and total debt of $51 million.