Brooks Automation Reports Results of Fiscal Third Quarter of 2018, Ended June 30, 2018
CHELMSFORD, Mass., Aug. 6, 2018 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS), a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, today reported financial results for the third quarter of 2018, ended June 30, 2018.
Highlights of Fiscal Third Quarter of 2018
-- Revenue was $223 million, 8% higher compared to 2018 Q2 and 23% higher
compared to 2017 Q3;
-- GAAP Net Income was $23 million with diluted EPS of $0.32;
-- Non-GAAP Net Income was $32 million;
-- Non-GAAP diluted EPS of $0.46 was 14% higher compared to 2018 Q2.
Summary of GAAP and Non-GAAP Earnings
Quarter Ended
-------------
June 30, March 31, June 30,
Dollars in thousands, except per share data 2018 2018 2017
---- ---- ----
GAAP net income attributable to Brooks Automation, Inc. $22,717 $67,020 $17,350
GAAP diluted earnings per share $0.32 $0.95 $0.25
Non-GAAP net income attributable to Brooks Automation, Inc. $32,358 $28,267 $25,353
Non-GAAP diluted earnings per share $0.46 $0.40 $0.36
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.
Management Comments
"The results in the third quarter of our 2018 fiscal year continue to highlight the capability of two strong business segments well-positioned in two strong markets," commented Steve Schwartz, CEO of Brooks Automation. "Revenue growth of 23% year over year was driven by both segments with 20% growth in our Semiconductor business unit, and 35% growth in Life Sciences. The acquisitions in this quarter of Tec-Sem, which added to our Semiconductor reticle stocker offerings, and BioSpeciMan, which added reach and customer relationships in Canada to our Life Science's biostorage offerings, will further enhance our growth capability going forward."
GAAP Summary
Revenue for the third quarter of fiscal 2018 increased 8% to $223 million compared to the second quarter of fiscal 2018. Gross profits increased 6% from the second quarter of fiscal 2018, providing gross margins of 39.9%, 70 bps below the second quarter. Operating expense of $62 million increased 3%, or $2 million, primarily driven by the two acquisitions that closed in April 2018. Income tax expense totaled $3 million. GAAP net income in the quarter was $23 million and diluted earnings per share was $0.32.
The amortization of intangible assets, restructuring charges, impact of purchase price accounting adjustments, charges related to M&A and special charges are appropriately included in the GAAP summary of earnings discussed above. The impact on earnings of such non-GAAP adjustments is referenced in the unaudited table included within this press release.
In the following analysis of the non-GAAP results, Brooks 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. Brooks also excludes special charges or gains, such as impairment losses, gains or losses from the sale of assets, as well as other gains and charges that are assessed to not be representative of the normal operations of the business.
Results of Q3 Fiscal 2018 (Non-GAAP Discussion)
Third quarter non-GAAP net income was $32 million, resulting in non-GAAP earnings per share of $0.46. This compares to non-GAAP net income of $28 million and non-GAAP earnings per share of $0.40 in the second quarter of fiscal 2018, and non-GAAP net income of $25 million and non-GAAP earnings per share of $0.36 in the third quarter of fiscal 2017. Compared sequentially to the second quarter, the Company reported 80 basis points expansion at the non-GAAP operating profit margin line and the non-GAAP net income margin line in the third quarter. The primary driver of the margin expansion was 8% revenue growth with only 3% growth of non-GAAP operating expense.
As noted above, revenue for the third fiscal quarter of 2018 was $223 million, up 8% compared to the second fiscal quarter of 2018. The Semiconductor Solutions segment revenue was higher in the third quarter compared to the second quarter by $15 million, or 9%, at $174 million. The Life Sciences segment revenue grew $1 million, or 2%, sequentially to $50 million. The Life Sciences segment revenue increased 35% year-over-year in total and 13% on an organic basis.
Adjusted gross margin, which excludes amortization and purchase accounting impacts, was 40.9% in the third quarter, slightly below the prior quarter by 20 basis points. The Semiconductor Solutions segment non-GAAP adjusted gross margin was 41.7% in the third quarter, which was 20 basis points higher than last quarter's results reflecting improved margins in vacuum automation. The Life Sciences segment non-GAAP adjusted gross margin was 38.1% in the third quarter, 170 basis points lower than the second quarter, primarily driven by higher costs in store systems. In summary, the total Brooks non-GAAP adjusted gross profit increased by 7% or $6 million compared to the second quarter, driven primarily by the revenue growth and improved gross margins in Semiconductor Solutions.
The Company's non-GAAP tax rate in the quarter was 10%, approximately flat to the second quarter tax rate. The non-GAAP tax provision in the third quarter was $3 million, which increased $0.2 million compared to the second quarter.
Cash flow from operations was $19 million in the third quarter. The company made payments of $18 million for acquisitions and paid $7 million in dividends. The total of cash, cash equivalents, and marketable securities reported was $232 million as of June 30, 2018.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 28, 2018 to stockholders of record on September 7, 2018. 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 Fiscal Fourth Quarter 2018
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2018. Revenue is expected to be in the range of $203 million to $213 million and non-GAAP diluted earnings per share is expected to be in the range of $0.35 to $0.43. GAAP diluted earnings per share for the fourth quarter is expected to be in the range of $0.21 to $0.28, reflecting the impact of amortization, purchase price accounting, and anticipated restructuring charges.
Conference Call
Brooks management will webcast its third quarter earnings conference call today at 5:00 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.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 877-256-3282 (US & Canada only) or +1-212-271-4657 (international) to listen to the live webcast.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences. Brooks' technologies, engineering competencies and global service capabilities provide customers speed to market and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, Brooks has been a leading partner to the global semiconductor manufacturing market as a provider of precision automation and cryogenic vacuum solutions. Since 2011, Brooks has applied its automation and cryogenics expertise to meet the sample storage needs of customers in the life sciences industry. Brooks' life sciences offerings include a broad range of products and services for on-site infrastructure for sample management in ?20°C to -190°C temperatures, as well as comprehensive outsource service solutions across the complete life cycle of biological samples including collection, transportation, processing, storage, protection, retrieval and disposal. Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe and Asia. For more information, visit www.brooks.com.
"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 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.
CONTACTS:
Sherry Dinsmore
Brooks Automation
978.262.2400
sherry.dinsmore@brooks.com
John Mills
Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
June 30, June 30,
-------- --------
2018 2017 2018 2017
---- ---- ---- ----
Revenue
Products $174,113 $141,957 $476,788 $396,684
Services 49,367 39,760 143,280 114,321
------ ------ ------- -------
Total revenue 223,480 181,717 620,068 511,005
------- ------- ------- -------
Cost of revenue
Products 104,443 85,658 282,977 243,360
Services 29,816 24,487 88,426 74,606
------ ------ ------ ------
Total cost of revenue 134,259 110,145 371,403 317,966
------- ------- ------- -------
Gross profit 89,221 71,572 248,665 193,039
------ ------ ------- -------
Operating expenses
Research and development 14,177 11,958 40,501 34,148
Selling, general and administrative 48,283 40,016 136,695 109,496
Restructuring charges 82 828 131 2,663
--- --- --- -----
Total operating expenses 62,542 52,802 177,327 146,307
------ ------ ------- -------
Operating income 26,679 18,770 71,338 46,732
Interest income 689 137 1,193 432
Interest expense (2,465) (93) (6,842) (286)
Gain on settlement of equity method investment - - - 1,847
Other expense, net (316) (314) (2,228) (848)
---- ---- ------ ----
Income before income taxes and earnings of equity method investments 24,587 18,500 63,461 47,877
Income tax (benefit) provision 3,310 3,680 (37,720) 9,900
----- ----- ------- -----
Income before equity in earnings of equity method investments 21,277 14,820 101,181 37,977
Equity in earnings of equity method investments 1,329 2,530 4,931 7,249
----- ----- ----- -----
Net income $22,606 $17,350 $106,112 $45,226
======= ======= ======== =======
Net loss attributable to noncontrolling interest 111 - 111 -
Net income attributable to Brooks Automation, Inc. 22,717 17,350 106,223 45,226
Basic net income per share $0.32 $0.25 $1.51 $0.65
Diluted net income per share 0.32 0.25 1.50 0.64
Dividend declared per share 0.10 0.10 0.30 0.30
Weighted average shares outstanding used in computing net income per share:
Basic 70,596 69,711 70,425 69,496
Diluted 70,978 70,405 70,933 70,198
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
June 30, September 30,
2018 2017
---- ----
Assets
Current assets
Cash and cash equivalents $179,376 $101,622
Marketable securities 42,096 28
Accounts receivable, net 156,678 120,828
Inventories 132,298 106,395
Prepaid expenses and other current assets 31,432 23,138
------ ------
Total current assets 541,880 352,011
Property, plant and equipment, net 61,537 58,462
Long-term marketable securities 10,511 2,642
Long-term deferred tax assets 46,312 1,692
Goodwill 282,205 233,638
Intangible assets, net 106,195 83,520
Equity method investment 37,074 28,593
Other assets 5,716 6,070
----- -----
Total assets $1,091,430 $766,628
========== ========
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long term debt $2,000 $ -
Accounts payable 67,589 49,100
Deferred revenue 24,612 24,292
Accrued warranty and retrofit costs 8,759 8,054
Accrued compensation and benefits 25,727 27,065
Accrued restructuring costs 214 1,708
Accrued income taxes payable 7,953 11,417
Accrued expenses and other current liabilities 28,044 25,142
------ ------
Total current liabilities 164,898 146,778
Long-term debt 194,470 -
Long-term tax reserves 1,430 1,687
Long-term deferred tax liabilities 6,545 3,748
Long-term pension liabilities 5,268 1,979
Other long-term liabilities 5,723 4,792
----- -----
Total liabilities 378,334 158,984
------- -------
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, 84,096,224 shares 841 833
issued and 70,634,355 shares outstanding at June 30, 2018, 83,294,848 shares issued and
69,832,979 shares outstanding at September 30, 2017
Additional paid-in capital 1,891,304 1,874,918
Accumulated other comprehensive income 18,373 15,213
Treasury stock at cost - 13,461,869 shares (200,956) (200,956)
Accumulated deficit (997,342) (1,082,364)
-------- ----------
Total Brooks Automation, Inc. stockholders' equity 712,220 607,644
------- -------
Noncontrolling interest in subsidiary 876 -
Total stockholders' equity 713,096 607,644
------- -------
Total liabilities and stockholders' equity $1,091,430 $766,628
========== ========
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Nine Months Ended
June 30,
--------
2018 2017
---- ----
Cash flows from operating activities
Net income $106,112 $45,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 27,621 20,649
Gain on settlement of equity method investment - (1,847)
Stock-based compensation 14,999 11,081
Amortization of premium on marketable securities and deferred financing costs 565 24
Earnings of equity method investments (4,931) (7,249)
Loss recovery on insurance claim (1,103) -
Deferred income tax benefit (48,274) 498
Other gains on disposals of assets - (106)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (32,887) (14,644)
Inventories (21,647) (12,851)
Prepaid expenses and other current assets (4,395) (6,076)
Accounts payable 16,656 9,470
Deferred revenue 487 17,875
Accrued warranty and retrofit costs (192) 1,299
Accrued compensation and tax withholdings (1,252) 279
Accrued restructuring costs (1,523) (4,201)
Accrued expenses and other current liabilities (7,478) 1,954
------ -----
Net cash provided by operating activities 42,758 61,381
------ ------
Cash flows from investing activities
Purchases of property, plant and equipment (9,320) (6,827)
Purchases of marketable securities (58,312) (240)
Sales and maturities of marketable securities 8,450 3,590
Acquisitions, net of cash acquired (82,977) (5,346)
Purchases of other investments - (170)
Proceeds from sales of property, plant and equipment 200 -
--- ---
Net cash used in investing activities (141,959) (8,993)
-------- ------
Cash flows from financing activities
Proceeds from issuance of common stock 1,395 960
Proceeds from term loan 197,554 -
Payment of deferred financing costs (318) (27)
Repayment of term loan (1,000) -
Common stock dividends paid (21,202) (20,932)
------- -------
Net cash provided by (used in) financing activities 176,429 (19,999)
------- -------
Effects of exchange rate changes on cash and cash equivalents 526 (394)
--- ----
Net increase in cash and cash equivalents 77,754 31,995
Cash and cash equivalents, beginning of period 101,622 85,086
------- ------
Cash and cash equivalents, end of period $179,376 $117,081
======== ========
Notes on Non-GAAP Financial Measures:
These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. In this context, the Company has also removed the effect of reversing the valuation allowance reserve on the U.S. deferred income tax assets. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
Quarter Ended
-------------
June 30, 2018 March 31, 2018 June 30, 2017
------------- -------------- -------------
per diluted per diluted per diluted
Dollars in thousands, except per share data $ share $ share $ share
--- ----- --- ----- --- -----
Net income attributible to Brooks Automation, Inc. $22,717 $0.32 $67,020 $0.95 $17,350 $0.25
Adjustments:
------------
Purchase accounting impact on inventory and 736 0.01 - - 71 -
contracts acquired
Amortization of intangible assets 6,584 0.09 5,611 0.08 4,330 0.06
Restructuring charges 82 0.00 49 0.00 828 0.01
Merger costs 2,460 0.03 2,666 0.04 3,654 0.05
Adjustment of valuation allowance against 690 0.01 (46,158) (0.65) - -
deferred tax assets
Tax effect of adjustments (800) (0.01) (922) (0.01) (880) (0.01)
Net loss attributible to noncontrolling interest (111) (0.00) - - - -
---- ----- --- --- --- ---
Non-GAAP adjusted net income attributible to 32,358 0.46 28,266 0.40 25,353 0.36
Brooks Automation, Inc.
Stock based compensation, pre-tax 4,870 - 5,320 - 4,197 -
Tax rate 10% - 10% - 15% -
Stock-based compensation, net of tax 4,402 0.06 4,778 0.07 3,559 0.05
----- ---- ----- ---- ----- ----
Non-GAAP adjusted net income attributible to $36,760 $0.52 $33,044 $0.47 $28,912 $0.41
Brooks Automation, Inc.- excluding stock-based
compensation
Shares used in computing non-GAAP diluted - 70,978 - 70,613 - 70,405
net income attributible to Brooks Automation,
Inc. per share
Nine Months Ended
-----------------
June 30, 2018 June 30, 2017
------------- -------------
per diluted per diluted
Dollars in thousands, except per share data $ share $ share
--- ----- --- -----
Net income attributible to Brooks Automation, Inc. $106,223 $1.50 $45,226 $0.64
Adjustments:
------------
Purchase accounting impact on inventory and 1,896 0.03 523 0.01
contracts acquired
Amortization of intangible assets 17,688 0.25 12,743 0.18
Restructuring charges 131 0.00 2,663 0.04
Merger costs 5,739 0.08 4,839 0.07
Less: Fair value adjustment of equity investment - - (1,847) (0.03)
Add: True-up of BioCision stub period adjustment - - 203 -
Adjustment of valuation allowance against (45,468) (0.64) - -
deferred tax assets
Tax effect of adjustments (2,301) (0.03) (1,856) (0.03)
Tax Reform - rate change applied to deferred tax (671) (0.01) - -
liabilities
Net loss attributible to noncontrolling interest (111) (0.00) - -
---- ----- --- ---
Non-GAAP adjusted net income attributible to 83,126 1.17 62,494 0.89
Brooks Automation, Inc.
Stock-based compensation, pre-tax 14,999 - 11,081 -
Tax rate 11% - 16% -
Stock-based compensation, net of tax 13,289 $0.19 9,330 0.13
------ ----- ----- ----
Non-GAAP adjusted net income attributible to $96,415 $1.36 $71,824 $1.02
Brooks Automation, Inc.- excluding stock-based
compensation
Shares used in computing non-GAAP diluted net - 70,933 - 70,198
income attributible to Brooks Automation, Inc. per share
Quarter Ended
-------------
June 30, 2018 March 31, 2018 June 30, 2017
------------- -------------- -------------
Dollars in thousands $ % $ % $ %
--- --- --- --- --- ---
GAAP gross profit/gross margin percentage $89,221 39.9% $84,229 40.6% $71,572 39.4%
Adjustments:
------------
Amortization of completed technology 1,504 0.7% 982 0.5% 1,051 0.6%
Purchase accounting impact on 736 0.3% - 0.0% 71 0.0%
inventory and contracts acquired
Non-GAAP adjusted gross $91,461 40.9% $85,211 41.1% $72,694 40.0%
profit/gross margin percentage
Nine Months Ended
-----------------
June 30, 2018 June 30, 2017
------------- -------------
Dollars in thousands $ % $ %
--- --- --- ---
GAAP gross profit/gross margin percentage $248,665 40.1% $193,039 37.8%
Adjustments:
------------
Amortization of completed 3,390 0.5% 3,105 0.6%
technology
Purchase accounting impact on 1,896 0.3% 523 0.1%
inventory and contracts acquired
Non-GAAP adjusted gross $253,951 41.0% $196,667 38.5%
profit/gross margin percentage
Quarter Ended Nine Months Ended
------------- -----------------
June 30, March 31, June 30, June 30, June 30,
Dollars in thousands 2018 2018 2017 2018 2017
---- ---- ---- ---- ----
GAAP net income attributable to Brooks Automation, Inc. $22,717 $67,020 $17,350 $106,223 $45,226
Adjustments:
------------
Less: Interest income (689) (356) (137) (1,193) (432)
Add: Interest expense 2,465 2,196 93 6,842 286
Add: Income tax provision 3,310 (43,880) 3,680 (37,720) 9,900
Add: Depreciation 3,403 3,500 2,589 9,933 7,907
Add: Amortization of completed technology 1,504 982 1,051 3,390 3,105
Add: Amortization of customer relationships 5,080 4,629 3,279 14,298 9,638
and acquired intangible assets
Earnings before interest, taxes, depreciation and $37,790 $34,091 $27,905 $101,773 $75,630
amortization
Quarter Ended Nine Months Ended
------------- -----------------
June 30, March 31, June 30, June 30, June 30,
Dollars in thousands 2018 2018 2017 2018 2017
---- ---- ---- ---- ----
Earnings before interest, taxes, depreciation and $37,790 $34,091 $27,905 $101,773 $75,630
amortization
Adjustments:
------------
Less: Fair value adjustment of equity method - - - - (1,847)
investment
Add: Stock-based compensation 4,870 5,320 4,197 14,999 11,081
Add: Restructuring charges 82 49 828 131 2,663
Add: BioCision stub period adjustment - - - - 203
Add: Purchase accounting impact on inventory 736 - 71 1,896 523
and contracts acquired
Add: Merger costs 2,460 2,666 3,654 5,739 4,839
----- ----- ----- ----- -----
Adjusted earnings before interest, taxes, $45,938 $42,126 $36,655 $124,538 $93,092
depreciation and amortization
Quarter Ended Nine Months Ended
------------- -----------------
June 30, March 31, June 30, June 30, June 30,
Dollars in thousands 2018 2018 2017 2018 2017
---- ---- ---- ---- ----
GAAP selling, general and administrative $48,283 $47,236 $40,016 $136,695 $109,496
expenses
Adjustments:
------------
Less: Amortization of customer relationships (5,080) (4,629) (3,279) (14,298) (9,638)
and acquired intangible assets
Less: Merger costs (2,460) (2,666) (3,654) (5,739) (4,839)
------ ------ ------ ------ ------
Non-GAAP adjusted selling, general and $40,743 $39,941 $33,083 $116,658 $95,019
administrative expenses
Research and development expenses $14,177 $13,125 $11,958 $40,501 $34,148
------- ------- ------- ------- -------
Non-GAAP adjusted operating expenses $54,920 $53,066 $45,041 $157,159 $129,167
======= ======= ======= ======== ========
Quarter Ended Nine Months Ended
------------- -----------------
June 30, March 31, June 30, June 30, June 30,
Dollars in thousands 2018 2018 2017 2018 2017
---- ---- ---- ---- ----
GAAP equity in earnings of equity method $1,329 $1,422 $2,530 $4,931 $7,249
investments
Adjustments:
------------
Add: BioCision stub period adjustment - - - - 203
--- --- --- --- ---
Non-GAAP adjusted equity in earnings of equity $1,329 $1,422 $2,530 $4,931 $7,452
method investments
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Quarter Ended Quarter Ended
------------- -------------
June 30, March 31, June 30, June 30, March 31, June 30,
Dollars in thousands 2018 2018 2017 2018 2018 2017
---- ---- ---- ---- ---- ----
GAAP gross profit $70,634 $65,299 $58,083 $18,587 $18,930 $13,489
Adjustments:
------------
Amortization of completed 1,147 570 626 357 412 425
technology
Purchase accounting impact on 736 - - - - 71
inventory and contracts acquired
Non-GAAP adjusted gross profit $72,517 $65,869 $58,709 $18,944 $19,342 $13,985
======= ======= ======= ======= ======= =======
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Nine Months Ended Nine Months Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
Dollars in thousands 2018 2017 2018 2017
---- ---- ---- ----
GAAP gross profit $195,386 $154,877 $53,279 $38,162
Adjustments:
------------
Amortization of completed technology 2,250 1,879 1,140 1,226
Purchase accounting impact on inventory and 736 125 1,160 398
contracts acquired
Non-GAAP adjusted gross profit $198,372 $156,881 $55,579 $39,786
======== ======== ======= =======
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Quarter Ended Quarter Ended
------------- -------------
June 30, March 31, June 30, June 30, March 31, June 30,
Dollars in thousands 2018 2018 2017 2018 2018 2017
---- ---- ---- ---- ---- ----
GAAP gross margin 40.6% 41.1% 40.1% 37.4% 39.0% 36.7%
Adjustments:
------------
Amortization of completed 0.7% 0.4% 0.4% 0.7% 0.8% 1.2%
technology
Purchase accounting impact on 0.4% - - % - % - % 0.2%
inventory and contracts acquired
Non-GAAP adjusted gross margin 41.7% 41.5% 40.5% 38.1% 39.8% 38.0%
==== ==== ==== ==== ==== ====
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Nine Months Ended Nine Months Ended
June 30, June 30, June 30, June 30,
Dollars in thousands 2018 2017 2018 2017
---- ---- ---- ----
GAAP gross margin 41.2% 38.1% 36.6% 36.4%
Adjustments:
------------
Amortization of completed technology 0.5% 0.5% 0.8% 1.2%
Purchase accounting impact on inventory and 0.1% - % 0.8% 0.4%
contracts acquired
Non-GAAP adjusted gross margin 41.8% 38.6% 38.2% 38.0%
==== ==== ==== ====
Brooks Semiconductor Solutions Group Brooks Life Sciences Total Segments
------------------------------------ -------------------- --------------
Quarter Ended Quarter Ended Quarter Ended
------------- ------------- -------------
June 30, March 31, June 30, June 30, March 31, June 30, June 30, March 31, June 30,
Dollars in thousands 2018 2018 2017 2018 2018 2017 2018 2018 2017
---- ---- ---- ---- ---- ---- ---- ---- ----
GAAP operating profit $33,674 $30,836 $26,188 $2,034 $2,683 $1,134 $35,708 $33,519 $27,322
Adjustments:
------------
Amortization of completed 1,147 570 626 357 412 425 1,504 982 1,051
technology
Purchase accounting impact on inventory 736 - - - 71 736 - 71
and contracts acquired
Non-GAAP adjusted operating profit $35,557 $31,406 $26,814 $2,391 $3,095 $1,630 $37,948 $34,501 $28,444
======= ======= ======= ====== ====== ====== ======= ======= =======
Total Segments Corporate Total
-------------- --------- -----
Quarter Ended Quarter Ended Quarter Ended
------------- ------------- -------------
June 30, March 31, June 30, June 30, March 31, June 30, June 30, March 31, June 30,
Dollars in thousands 2018 2018 2017 2018 2018 2017 2018 2018 2017
---- ---- ---- ---- ---- ---- ---- ---- ----
GAAP operating profit (loss) $35,708 $33,519 $27,322 $(9,029) $(9,700) $(8,552) $26,679 $23,819 $18,770
Adjustments:
------------
Amortization of completed 1,504 982 1,051 - - - 1,504 982 1,051
technology
Amortization of customer - - - 5,080 4,629 3,279 5,080 4,629 3,279
relationships and acquired
intangible assets
Restructuring charges - - - 82 49 828 82 49 828
Purchase accounting impact 736 - 71 - - - 736 - 71
on inventory and contracts
acquired
Merger costs - - - 2,460 2,666 3,654 2,460 2,666 3,654
--- --- --- ----- ----- ----- ----- ----- -----
Non-GAAP adjusted $37,948 $34,501 $28,444 $(1,407) $(2,356) $(791) $36,541 $32,145 $27,653
operating profit (loss)
Brooks Semiconductor Solutions Group Brooks Life Sciences Total Segments
------------------------------------ -------------------- --------------
Nine Months Ended Nine Months Ended Nine Months Ended
----------------- ----------------- -----------------
Dollars in thousands June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- ------------- ------------- -------------
GAAP operating profit $90,872 $63,562 $4,577 $2,535 $95,449 $66,097
Adjustments:
------------
Amortization of completed 2,250 1,879 1,140 1,226 3,390 3,105
technology
Purchase accounting impact on 736 125 1,160 398 1,896 523
inventory and contracts acquired
Non-GAAP adjusted operating profit $93,858 $65,566 $6,877 $4,159 $100,735 $69,725
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Total Segments Corporate Total
-------------- --------- -----
Nine Months Ended Nine Months Ended Nine Months Ended
----------------- ----------------- -----------------
Dollars in thousands June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- ------------- ------------- -------------
GAAP operating profit (loss) $95,449 $66,097 $(24,111) $(19,365) $71,338 $46,732
Adjustments:
------------
Amortization of completed 3,390 3,105 - - 3,390 3,105
technology
Amortization of customer - - 14,298 9,638 14,298 9,638
relationships and acquired intangible
assets
Restructuring charges - - 131 2,663 131 2,663
Purchase accounting impact on 1,896 523 - - 1,896 523
inventory and contracts acquired
Merger costs - - 5,739 4,839 5,739 4,839
--- --- ----- ----- ----- -----
Non-GAAP adjusted operating profit (loss) $100,735 $69,725 $(3,943) $(2,225) $96,792 $67,500
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SOURCE Brooks Automation
