Brooks Automation Reports Results of its Second Quarter of Fiscal 2020, Ended March 31, 2020, and Announces Quarterly Cash Dividend

CHELMSFORD, Mass., April 30, 2020 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS), today reported financial results for the second fiscal quarter, ended March 31, 2020.

Financial Results Summary






                                                 
         
          Quarter Ended



                 Dollars in millions, except
                  per share data             March 31,                      December 31,            March 31,   Change vs.


                                                  2020                               2019                  2019    Prior Qtr               Prior Year




     Revenue                                             $
        220                        $
       210                             $
         198             5
         %     11
        %


      Semiconductor Solutions                             $
        125                        $
       119                             $
         113             5
         %     11
        %



     Life Sciences                                        $
        95                         $
       92                              $
         86             4
         %     11
        %




      Diluted EPS Continuing                             $
        0.12                       $
       0.18                          $
         (0.04)                (30)
       Operations                                                                                                                                          %    
           NM



     Diluted EPS Total                                  $
        0.12                       $
       0.18                            $
         0.05                 (30)
                                                                                                                                                           %    161
         %




      Non-GAAP Diluted EPS Cont.
       Operations                                        $
        0.25                       $
       0.23                            $
         0.17            11
         %     48
        %

Management Comments
"We performed well in the second quarter as we met our customers' needs in each business," commented Steve Schwartz, CEO of Brooks Automation. "Our Life Sciences business overcame some COVID-19 headwinds at various stages of the quarter, including temporary closure of our China operations. Despite the challenges, our dedicated team delivered strong growth across both businesses. We are particularly proud that our Life Sciences products and services have satisfied urgent demand from our customers involved with COVID-19 research. Strong demand for our Semiconductor products continued throughout the quarter as chip manufacturers maintained their spending plans."

Summary of GAAP Results for Continuing Operations

    --  Revenue of $220 million grew 11% year over year and diluted EPS from
        continuing operations was $0.12 per share compared to a loss of ($0.04)
        per share in the second quarter of 2019.
    --  Life Sciences revenue of $95 million grew 11% year over year and 4%
        sequentially.  Year-over-year organic growth was 11%.
    --  Semiconductor Solutions revenue was $125 million, an increase of 11%
        year over year and 5% sequentially.  Increased shipments for Automation
        Systems and another record revenue quarter from Contamination Control
        Solutions drove the sequential growth.
    --  GAAP operating income was $15 million, compared to $14 million in the
        second quarter of 2019. The increase was driven by higher revenue and a
        40 basis point improvement in gross margins.  GAAP operating margins
        were lower in the second quarter, compared with the prior year, on
        higher R&D and SG&A expense.
    --  Net interest expense was $0.6 million for the quarter, a $7.1 million
        reduction from the second quarter of 2019.

Summary of Non-GAAP Results for Continuing Operations

    --  Diluted EPS from continuing operations for the second quarter was $0.25,
        up 11% from the first quarter of 2020 and up 48% over the prior year.
    --  Operating income was $26 million, an increase of 10% year over year and
        17% sequentially.  Sequential revenue growth of 5% and gross margin
        improvement of 60 basis points drove the higher operating margin higher
        by 120 basis points.
    --  Gross margin was 42.2%, an increase of 20 basis points from the second
        quarter of 2019 and 60 basis points from the first quarter of 2020. 
        Continued gross margin expansion in Life Sciences drove the improvement
        year over year and sequentially.
    --  Life Sciences operating margin was 8.5%, up 260 basis points year over
        year and 200 basis points sequentially.  Gross margin performance of
        45.8%, up 330 basis points year over year and 150 basis points
        sequentially, was the primary driver.  Sample Management gross margin
        improvement of 570 basis points year over year was the primary driver. 
        Year-over-year improvement was evident in each product area of large
        stores systems, cryogenic systems, BioStorage services, and consumables.
    --  The Semiconductor Solutions operating margin was 13.4%, a decline of 340
        basis points from the prior year and up 70 basis points from the first
        quarter of 2020.  A heavier mix of revenue from Tier 1 customers
        resulted in softer gross margins in the quarter.  Sequential revenue
        growth of 5% with stable gross margins contributed to the sequential
        operating margin expansion.
    --  Adjusted EBITDA was $34.8 million, up 6% from the second quarter of 2019
        and 9% sequentially.

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 was ($66) million for the second quarter. 
        During the quarter the Company paid $92 million to settle taxes related
        to the 2019 gain on sale of the Semiconductor Cryogenics business. 
        Excluding this payment, cash flow from operations was $26 million.  On a
        year-to-date basis, the cash flow from operations, excluding the noted
        tax payments, was $51 million, an increase of $29 million compared to
        the first half of the 2019 fiscal year.
    --  During the quarter, the Company acquired RURO, Inc, a life sciences
        informatics company, for a cash purchase price of approximately $16
        million, net of cash acquired.  The Company ended the quarter with a
        total balance of cash, cash equivalents, restricted cash, and marketable
        securities of $249 million.  With total debt of $51 million, net cash
        was $198 million.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 26, 2020 to stockholders of record on June 5, 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 Third Quarter Fiscal 2020
The Company announced revenue and earnings guidance for the third quarter of fiscal 2020. Revenue is expected to be in the range of $200 million to $215 million and non-GAAP diluted earnings per share is expected to be in the range of $0.16 to $0.24. GAAP diluted earnings per share for the third fiscal quarter is expected to be in the range of $0.04 to $0.12.

Conference Call and Webcast
Brooks management will webcast its second 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 800-906-5934 (US & Canada only) or +1-212-231-2904 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 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                                              Six Months Ended


                                                                   March 31,                                                 March 31,



                                                   2020                         2019                                    2020              2019




       Revenue



       Products                                        $
          139,144                             $
              128,056                         $
            271,006         $
              253,430



       Services                                               81,083                                          70,334                                   159,721                     124,327




       Total revenue                                         220,227                                         198,390                                   430,727                     377,757




       Cost of revenue



       Products                                               83,970                                          77,803                                   163,941                     152,376



       Services                                               45,976                                          40,071                                    91,519                      72,785




       Total cost of revenue                                 129,946                                         117,874                                   255,460                     225,161




       Gross profit                                           90,281                                          80,516                                   175,267                     152,596




       Operating expenses


        Research and development                               15,322                                          14,101                                    29,723                      27,249


        Selling, general and
         administrative                                        59,809                                          52,373                                   119,152                     105,914



       Restructuring charges                                     578                                             370                                     1,154                         429



        Total operating expenses                               75,709                                          66,844                                   150,029                     133,592




       Operating income                                       14,572                                          13,672                                    25,238                      19,004



       Interest income                                           137                                             316                                       836                         739



       Interest expense                                        (718)                                        (8,018)                                  (1,455)                   (13,308)


        Loss on extinguishment of debt                                                   (9,051)                                                                  (9,051)



       Other expenses, net                                   (1,399)                                          (778)                                  (1,816)                      (807)



        Income (loss) before income taxes                      12,592                                         (3,859)                                   22,803                     (3,423)



       Income tax benefit                                      3,400                                         (1,030)                                      437                     (6,860)



        Income (loss) from continuing
         operations                                             9,192                                         (2,829)                                   22,366                       3,437


        (Loss) income from discontinued
         operations, net of tax                                  (65)                                          6,250                                     (182)                     14,399




       Net income                                        $
          9,127                               $
              3,421                          $
            22,184          $
              17,836



                     Basic net income per share:

    ---

        Income (loss) from
         continuing operations                             $
          0.12                              $
              (0.04)                           $
            0.30            $
              0.05


        (Loss) income from discontinued
         operations, net of tax                                (0.00)                                           0.09                                    (0.00)                       0.20



        Basic net income per
         share                                             $
          0.12                                $
              0.05                            $
            0.30            $
              0.25


                     Diluted net income per share:

    ---

        Income (loss) from
         continuing operations                             $
          0.12                              $
              (0.04)                           $
            0.30            $
              0.05


        (Loss) income from discontinued
         operations, net of tax                                (0.00)                                           0.09                                    (0.00)                       0.20



        Diluted net income per
         share                                             $
          0.12                                $
              0.05                            $
            0.30            $
              0.25




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



       Basic                                                  73,708                                          72,077                                    73,331                      71,760



       Diluted                                                73,789                                          72,292                                    73,752                      72,215


                                                                                   
              BROOKS AUTOMATION, INC.


                                                                                 
              CONSOLIDATED BALANCE SHEETS


                                                                                         
              (unaudited)


                                                                               
      (In thousands, except share and per share data)






                                                                                                                                  March 31,                     September 30,


                                                                                                                                       2020                               2019

                                                                                                                                                                          ---




              Assets



              Current assets



              Cash and cash equivalents                                                                                                      $
            242,274                  $
             301,642



              Marketable securities                                                                                                                      162                              34,124



              Accounts receivable, net                                                                                                               179,014                             165,602



              Inventories                                                                                                                            107,699                              99,445



              Prepaid expenses and other current assets                                                                                               43,379                              46,332




              Total current assets                                                                                                                   572,528                             647,145



              Property, plant and equipment, net                                                                                                     108,744                             100,669



              Long-term marketable securities                                                                                                          2,555                               2,845



              Long-term deferred tax assets                                                                                                            5,080                               5,064



              Goodwill                                                                                                                               498,502                             488,602



              Intangible assets, net                                                                                                                 236,095                             251,168



              Other assets                                                                                                                            55,827                              20,506




              Total assets                                                                                                                 $
            1,479,331                $
             1,515,999

                                                                                                                                                                                               ===


              Liabilities and Stockholders' Equity



              Current liabilities



              Current portion of long-term debt                                                                                                 $
             828                     $
              829



              Accounts payable                                                                                                                        63,958                              58,919



              Deferred revenue                                                                                                                        29,090                              29,435



              Accrued warranty and retrofit costs                                                                                                      7,910                               7,175



              Accrued compensation and benefits                                                                                                       31,220                              31,375



              Accrued restructuring costs                                                                                                                935                               1,040



              Accrued income taxes payable                                                                                                             9,134                              99,263



              Accrued expenses and other current liabilities                                                                                          53,960                              44,234




              Total current liabilities                                                                                                              197,035                             272,270



              Long-term debt                                                                                                                          49,951                              50,315



              Long-term tax reserves                                                                                                                  18,841                              18,274



              Long-term deferred tax liabilities                                                                                                      12,190                              20,636



              Long-term pension liabilities                                                                                                            5,594                               5,338



              Long-term operating lease liabilities                                                                                                   27,233



              Other long-term liabilities                                                                                                              7,354                              10,212




              Total liabilities                                                                                                                      318,198                             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,                                                                             872                                 857
    87,214,622 shares issued and 73,752,753 shares outstanding at
    March 31, 2020, 85,759,700 shares issued and 72,297,831 shares
    outstanding at September 30, 2019



              Additional paid-in capital                                                                                                           1,932,893                           1,921,954



              Accumulated other comprehensive income                                                                                                   7,299                               3,511



              Treasury stock at cost - 13,461,869 shares                                                                                           (200,956)                          (200,956)



              Accumulated deficit                                                                                                                  (578,975)                          (586,412)




              Total stockholders' equity                                                                                                           1,161,133                           1,138,954




              Total liabilities and stockholders' equity                                                                                   $
            1,479,331                $
             1,515,999

                                                                                                                                                                                               ===



                                      
              BROOKS AUTOMATION, INC.


                               
              CONSOLIDATED STATEMENTS OF CASH FLOWS


                                            
              (unaudited)


                                           
              (In thousands)






                                                                                     Six Months Ended


                                                                                         March 31,



                                                                        2020                          2019

                                                                                                      ---


     Cash flows from operating activities



     Net income                                                                $
         22,184                       $
           17,836


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



     Depreciation and amortization                                                  33,079                                26,339



     Stock-based compensation                                                        8,624                                 9,717


      Amortization of premium on marketable securities and
       deferred financing costs                                                          94                                   556



     Earnings of equity method investments                                                                (3,041)



     Deferred income taxes                                                         (9,477)                             (12,472)



     Loss on extinguishment of debt                                                                         9,051



     Other gains on disposals of assets                                                125                                    34



     Loss on sale of divestiture, net of tax                                           319



     Taxes paid stemming from divestiture                                         (91,500)


      Changes in operating assets and liabilities, net of
       acquisitions:



     Accounts receivable                                                          (12,670)                              (9,654)



     Inventories                                                                   (9,094)                              (9,992)



     Prepaid expenses and current assets                                             5,374                                 1,938



     Accounts payable                                                                5,807                               (6,088)



     Deferred revenue                                                              (1,478)                                5,410



     Accrued warranty and retrofit costs                                               735                                   740



     Accrued compensation and tax withholdings                                       (522)                             (11,123)



     Accrued restructuring costs                                                     (112)                                 (57)



     Proceeds from recovery on insurance claim                                                                886



     Accrued expenses and current liabilities                                        8,455                                 2,149



      Net cash (used in) provided by operating activities                          (40,057)                               22,229




     Cash flows from investing activities



     Purchases of property, plant and equipment                                   (21,170)                              (9,676)



     Purchases of marketable securities                                           (10,843)                              (1,290)



     Sales of marketable securities                                                  2,492                                48,904



     Maturities of marketable securities                                            42,226                                 2,557



     Acquisitions, net of cash acquired                                           (15,743)                            (442,704)



     Purchase of other investment                                                  (1,000)




     Net cash used in investing activities                                         (4,038)                            (402,209)




     Cash flows from financing activities



     Proceeds from term loans, net of discount                                                            686,386



     Proceeds from issuance of common stock                                          2,330                                 1,548



     Payments of financing costs                                                                            (687)



     Principal payments on debt                                                      (414)                            (352,289)



     Payments of capital leases                                                      (639)                                (487)



     Common stock dividends paid                                                  (14,747)                             (14,429)



      Net cash (used in) provided by financing activities                          (13,470)                              320,042



      Effects of exchange rate changes on cash and cash
       equivalents                                                                  (1,803)                                (553)




     Net decrease in cash and cash equivalents                                    (59,368)                             (60,491)


      Cash and cash equivalents and restricted cash, beginning
       of period                                                                    305,171                               197,708



      Cash and cash equivalents and restricted cash,
       end of period                                                           $
         245,803                      $
           137,217

                                                                                                                               ===



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



     Cash and cash equivalents                                                $
         242,274                      $
           137,168


      Restricted cash included in prepaid expenses and other
       current assets                                                                 3,529                                    49



      Total cash, cash equivalents and restricted
       cash shown in the consolidated statements of
       cash flows                                                              $
         245,803                      $
           137,217

                                                                                                                               ===

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

                                                                                                                                   ---

                                                    March 31, 2020                        December 31, 2019                  March 31, 2019





                     Dollars in thousands, except
                      per share data              
     
                $                     per diluted             
       
          $            per diluted                  
     
     $       per diluted

                                                                                          share                                           share                                    share



        Net income from continuing
         operations                                                     $
       9,192                                $
        0.12                           $
        13,174           $
              0.18    $
          (2,829)    $
            (0.04)


                     Adjustments:

    ---

        Amortization of intangible
         assets                                                             10,355                                      0.14                                 10,584                       0.14              9,405                 0.13


        Restructuring charges                                                  578                                      0.01                                    576                       0.01                370                 0.01


        Loss on extinguishment of
         debt                                                                                                                                                                                           9,051                 0.13



       Merger costs                                                           279                                      0.00                                    195                       0.00                 36                 0.00


        Tax adjustments (1)                                                  1,046                                      0.01                                (5,230)                    (0.07)               803                 0.01


        Tax effect of adjustments                                          (2,997)                                   (0.04)                               (2,662)                    (0.04)           (4,593)              (0.06)



                     Non-GAAP adjusted net income
                      from continuing operations                   $
     
         18,453                          $
       
          0.25                       $
     
          16,637       $
     
                0.23 $
     
            12,243 $
       
              0.17



                        Stock based compensation,
                         pre-tax                                             4,214                                      0.06                                  4,410                       0.06              5,121                 0.07


                        Tax rate                                                15                                                                              15                                           15

                                                                                 %                                                                              %                                           %


        Stock-based compensation,
         net of tax                                                          3,582                                      0.05                                  3,749                       0.05              4,353                 0.06



        Non-GAAP adjusted net income
         excluding stock-based
         compensation - continuing
         operations                                                    $
       22,035                                $
        0.30                           $
        20,386           $
              0.28     $
          16,596       $
            0.23





        Shares used in computing non-
         GAAP diluted net income per
         share                                                                                                       73,789                                                           73,645                                 72,292




                                                                
        
         Six Months Ended

                                                                                                           ---

                                                 March 31, 2020                             March 31, 2019



                                                                                            per diluted                         per diluted


                     Dollars in thousands,
                      except per share data    
     
                $                                share              
       
          $     share



        Net income from continuing
         operations                                                     $
        22,366                                 $
        0.30                  $
         3,437     $
          0.05


                     Adjustments:

    ---

        Purchase accounting impact
         on inventory and
         contracts acquired                                                                                                                             184             0.00


        Amortization of intangible
         assets                                                               20,940                                       0.28                        17,180             0.24


        Restructuring charges                                                  1,154                                       0.02                           429             0.01


        Loss on extinguishment of
         debt                                                                                                                                         9,051



       Merger costs                                                             473                                       0.01                         6,390             0.09


        Tax Reform -rate change
         applied to deferred tax
         liabilities (2)                                                                                                                            (1,125)          (0.02)


        Tax adjustments (1)                                                  (4,167)                                    (0.06)                      (3,608)          (0.05)


        Tax effect of adjustments                                            (5,676)                                    (0.08)                      (7,777)          (0.11)



                     Non-GAAP adjusted net
                      income from continuing
                      operations                                  $
       
          35,090                           $
       
          0.48             $
     
           24,161 $
     
            0.33



                     Stock-based compensation,
                      pre-tax                                                  8,624                                       0.12                         9,297             0.13


                     Tax rate                                                     15
                                                                                                                                                          %
                                                                                   %                                                                     15


        Stock-based compensation,
         net of tax                                                            7,330                                 $
        0.10                         7,902             0.11



        Non-GAAP adjusted net
         income excluding stock-
         based compensation -
         continuing operations                                          $
        42,420                                 $
        0.58                 $
         32,063     $
          0.44





        Shares used in computing
         non-GAAP diluted net
         income per share                                                                                               73,752                                        72,215



              (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               Six Months Ended



                                          March 31,                    December 31,          March 31,      March 31,                 March 31,


                     Dollars in thousands      2020                             2019                   2019         2020                       2019




       GAAP net income                               $
      9,127                         $
              13,057                $
        3,421               $
       22,184 $
        17,836


                     Adjustments:

    ---

        Less: Loss (income) from
         discontinued operations                             65                                        117                    (6,250)                      182     (14,399)



       Less: Interest income                             (137)                                     (699)                     (316)                    (836)       (739)



       Add: Interest expense                               718                                        737                      8,018                     1,455       13,308



       Add: Income tax benefit                           3,400                                    (2,963)                   (1,030)                      437      (6,860)



       Add: Depreciation                                 6,247                                      5,891                      5,099                    12,139        9,159


        Add: Amortization of completed
         technology                                       2,740                                      2,674                      2,791                     5,415        4,798


        Add: Amortization of customer
         relationships and acquired
         intangible assets                                7,615                                      7,910                      6,614                    15,525       12,382


        Add: Loss on extinguishment of
         debt                                                                                                                 9,051                                 9,051



        Earnings before interest, taxes,
         depreciation and amortization               $
      29,775                         $
              26,724               $
        27,398               $
       56,501 $
        44,536




                                               
          
       Quarter Ended               Six Months Ended



                                           March 31,                    December 31,          March 31,      March 31,              March 31,


                     Dollars in thousands       2020                             2019                   2019         2020                    2019



        Earnings before interest, taxes,
         depreciation and amortization               $
     29,775                           $
              26,724               $
     27,398               $
     56,501 $
      44,536


                     Adjustments:

    ---

        Add: Stock-based compensation                    4,214                                        4,410                   5,121                   8,624      9,297


        Add: Restructuring charges                         578                                          576                     370                   1,154        429


        Add: Purchase accounting impact on
         inventory and contracts acquired                                                                                                                      184



       Add: Merger costs                                  279                                          195                      36                     473      6,390



        Adjusted earnings before interest,
         taxes, depreciation and
         amortization                                $
     34,846                           $
              31,905               $
     32,925               $
     66,752 $
      60,836




                                                   
          
       Quarter Ended

                                                                                         ---

                     Dollars in thousands March 31, 2020                     December 31, 2019     March 31, 2019



        GAAP gross profit/                               $
     90,281          41.0               $
     84,986          40.4 $
     80,516   40.6
         margin percentage
                                                                              %                                   %              %


                     Adjustments:

    ---

        Amortization of
         completed technology                                2,740           1.2                   2,674           1.3     2,791    1.4



        Non-GAAP adjusted                                $
     93,021          42.2               $
     87,660          41.6 $
     83,307   42.0
         gross profit/gross
         margin percentage                                                    %                                   %              %




                                          
              
          Six Months Ended

                                                                              ---

                     Dollars in thousands  March 31, 2020                           March 31, 2019



        GAAP gross profit/                                $
              175,267     40.7             $
     152,596  40.4
         margin percentage
                                                                                    %                          %


                     Adjustments:

    ---

        Amortization of
         completed technology                                           5,415      1.3                  4,798   1.3


        Purchase accounting
         impact on inventory
         and contracts acquired                                                                         184   0.0



        Non-GAAP adjusted                                 $
              180,682     41.9             $
     157,578  41.7
         gross profit/gross
         margin percentage                                                          %                          %




                                             
              
          Brooks Semiconductor Solutions Group

                                                                                                                      ---

                                                         
        
                Quarter Ended



                     Dollars in thousands March 31, 2020                                            December 31, 2019         March 31, 2019



        GAAP gross profit/                                 $
          48,637                          38.9                   $
     46,300          39.0 $
     45,987   40.7
         margin percentage
                                                                                                     %                                       %              %


                     Adjustments:

    ---

        Amortization of
         completed
         technology                                                   722                           0.6                         732           0.6       916    0.8



        Non-GAAP adjusted                                  $
          49,359                          39.5                   $
     47,032          39.6 $
     46,903   41.6
         gross profit/
         margin percentage                                                                           %                                       %              %




                                                     
            
           Brooks Life Sciences

                                                                                                              ---

                                                         
          
             Quarter Ended



                     Dollars in thousands March 31, 2020                                    December 31, 2019         March 31, 2019



        GAAP gross profit/                                 $
         41,663                   43.7                   $
     38,686          42.2 $
     34,529   40.4
         margin percentage
                                                                                             %                                       %              %


                     Adjustments:

    ---

        Amortization of
         completed
         technology                                                2,017                    2.1                       1,942           2.1     1,875    2.2



        Non-GAAP adjusted                                  $
         43,680                   45.8                   $
     40,628          44.3 $
     36,404   42.6
         gross profit/
         margin percentage                                                                   %                                       %              %




                                                        Brooks Semiconductor Solutions Group

                                                                                             ---

                                          
              
                Six Months Ended



                     Dollars in thousands   March 31, 2020                                        March 31, 2019



        GAAP gross profit/                                     $
              94,936                39.0            $
     91,901  40.7
         margin percentage
                                                                                                   %                        %


                     Adjustments:

    ---

        Amortization of
         completed
         technology                                                         1,455                 0.6                1,853   0.8


        Purchase accounting
         impact on inventory
         and contracts
         acquired                                                                                                    184   0.1



        Non-GAAP adjusted                                      $
              96,391                39.5            $
     93,938  41.6
         gross profit/
         margin percentage                                                                         %                        %




                                          
              
            Brooks Life Sciences

                                                                                   ---

                                            
              
            Six Months Ended



                     Dollars in thousands     March 31, 2020                            March 31, 2019



        GAAP gross profit/                                   $
              80,348        43.0            $
     60,695 39.9
         margin percentage
                                                                                         %                       %


                     Adjustments:

    ---

        Amortization of
         completed
         technology                                                       3,960         2.1                2,945  1.9



        Non-GAAP adjusted                                    $
              84,308        45.1            $
     63,640 41.8
         gross profit/
         margin percentage                                                               %                       %




                                                      Brooks Semiconductor Solutions Group               
         
                Brooks Life Sciences                        
      
                Total Segments

                                                                                                ---                     ---                                                                            ---

                                              
          
                Quarter Ended                            
          
                Quarter Ended                            
      
                Quarter Ended



                                          March 31,                                        December 31,         March 31,                        March 31,                December 31,                     March 31,      March 31,               December 31,         March 31,


                     Dollars in thousands      2020                                                 2019               2019                              2020                         2019                           2019           2020                       2019                 2019




       GAAP operating profit                       $
              15,984                                      $
          14,268                                    $
     17,987                                 $
            6,100                  $
     4,032                   $
              3,143    $
     22,084 $
     18,300 $
     21,130


                     Adjustments:

    ---

        Amortization of completed
         technology                                                722                                                 732                                          916                                           2,017                     1,942                               1,875        2,739     2,674     2,791



        Non-GAAP adjusted operating
         profit                                     $
              16,706                                      $
          15,000                                    $
     18,903                                 $
            8,117                  $
     5,974                   $
              5,018    $
     24,823 $
     20,974 $
     23,921




                                              
         
       Total Segments                 
          
             Corporate                            
           
                Total

                                                                            ---                   ---                                                                        ---

                                              
         
       Quarter Ended                
          
             Quarter Ended                        
         
                Quarter Ended



                                          March 31,                    December 31,      March 31,                  March 31,                  December 31,                        March 31,      March 31,                     December 31,            March 31,


                     Dollars in thousands      2020                             2019            2019                        2020                           2019                              2019           2020                             2019                    2019



        GAAP operating profit (loss)                 $
     22,084                       $
          18,300                              $
     21,130                                  $
              (7,512)                  $
        (7,634)                    $
             (7,458)      $
       14,572   $
       10,666   $
       13,672


                     Adjustments:

    ---

        Amortization of completed
         technology                                      2,739                                2,674                                  2,791                                                                                                                                      2,739         2,674         2,791


        Amortization of customer
         relationships and acquired
         intangible assets                                                                                                                                                             7,615                           7,910                                  6,614             7,615         7,910         6,614



       Restructuring charges                                                                                                                                                            578                             576                                    370               578           576           370



       Merger costs                                                                                                                                                                     279                             195                                     36               279           195            36



        Non-GAAP adjusted operating
         profit (loss)                               $
     24,823                       $
          20,974                              $
     23,921                                      $
              960                     $
        1,047                      $
              (438)      $
       25,783   $
       22,021   $
       23,483




                                          Brooks Semiconductor Solutions Group               Brooks Life Sciences                     Total Segments



                                                    Six Months Ended                           Six Months Ended                      Six Months Ended



                     Dollars in thousands            March 31, 2020                      March 31, 2019              March 31, 2020           March 31, 2019           March 31, 2020 March 31, 2019




       GAAP operating profit                                                  $
     30,252                          $
              34,128                         $
     10,132                $
              4,733 $
     40,384 $
      38,861


                     Adjustments:

    ---

        Amortization of completed
         technology                                                                1,455                                       1,853                             3,960                            2,945     5,415      4,798


        Purchase accounting impact on
         inventory and contracts acquired                                                                                       184                                                                                  184



        Non-GAAP adjusted operating
         profit                                                                $
     31,707                          $
              36,165                         $
     14,092                $
              7,678 $
     45,799 $
      43,843




                                           Total Segments            
     
              Corporate                        
     
           Total



                                          Six Months Ended                     Six Months Ended                        Six Months Ended



                     Dollars in thousands  March 31, 2020                March 31, 2019            March 31, 2020                March 31, 2019                March 31, 2020    March 31, 2019



        GAAP operating profit (loss)                       $
     40,384                            $
              38,861                              $
        (15,146)                $
             (19,857)  $
      25,238  $
      19,004


                     Adjustments:

    ---

        Amortization of completed
         technology                                            5,415                                         4,798                                                                                      5,415       4,798


        Amortization of customer
         relationships and acquired
         intangible assets                                                                                                                            15,525                              12,382       15,525      12,382



       Restructuring charges                                                                                                                          1,154                                 429        1,154         429


        Purchase accounting impact on
         inventory and contracts acquired                                                                     184                                                                                                   184



       Merger costs                                                                                                                                     473                               6,390          473       6,390



        Non-GAAP adjusted operating
         profit (loss)                                     $
     45,799                            $
              43,843                                 $
        2,006                   $
              (656)  $
      47,805  $
      43,187

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SOURCE Brooks Automation