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

Rhea-AI Summary

Brooks Automation, Inc. (Nasdaq: BRKS) reported Q4 2021 revenue of $137 million, a 27% increase year-over-year, driven by strong growth in Life Sciences. Total diluted EPS was $0.29, reflecting a 25% decrease from 2020, while diluted loss per share from continuing operations was $0.30. For fiscal 2021, revenue rose 32% to $514 million. The company announced a pending divestiture of its Semiconductor Automation business and rebranded its Life Sciences sector as Azenta. Guidance for Q1 2022 expects revenue between $130 million and $140 million.

Positive

• Q4 revenue from continuing operations increased by 27% year-over-year to $137 million.
• Fiscal 2021 revenue increased by 32% year-over-year, driven by significant growth in Life Sciences Products and Services.
• Life Sciences revenue grew by 38% year-over-year, and Life Sciences Services grew by 20%.
• Non-GAAP diluted EPS for Q4 was $0.78, a 67% increase year-over-year.

Negative

• Diluted EPS from continuing operations was a loss of $0.30, down from a loss of $0.01 in Q4 2020.
• Q4 operating loss was $21 million, primarily due to divestiture-related expenses.

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 16^th 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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FAQ

What were Brooks Automation's Q4 2021 financial results?

Brooks Automation reported Q4 2021 revenue of $137 million, a 27% year-over-year increase, with a diluted EPS of $0.29.

How did Brooks Automation's revenue perform in fiscal 2021?

In fiscal 2021, Brooks Automation achieved revenue of $514 million, a 32% increase compared to fiscal 2020.

What is the guidance for Brooks Automation's Q1 2022 revenue?

Brooks Automation expects Q1 2022 revenue to be between $130 million and $140 million.

What is the impact of the Semiconductor Automation business divestiture?

The Semiconductor Automation business will be reported as discontinued operations, affecting the overall financial metrics reported.

What were the growth metrics for Brooks Automation's Life Sciences business?

Life Sciences revenue grew by 38% year-over-year, with services increasing by 20%.