Print Page  |  Close Window

PRESS RELEASE

<< Back
Brooks Automation Reports Fourth Quarter Results of Fiscal Year Ended September 30, 2017

CHELMSFORD, Mass., Nov. 09, 2017 (GLOBE NEWSWIRE) -- 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 fourth quarter of the fiscal year ended September 30, 2017.

Fiscal Fourth Quarter of 2017 Financial and Operational Highlights:

  • Total revenue was $182 million;  15% growth compared to 2016 Q4;
  • Life Sciences revenue was $44 million;  39% growth vs. 2016 Q4;
  • Semiconductor revenue was $138 million; 10% growth vs. 2016 Q4;
  • GAAP Net Income was $17 million with diluted EPS of $0.25;
  • Non-GAAP Net Income was $25 million with diluted EPS of $0.35; and
  • Cash flow from operations was $35 million.

Fiscal Year 2017 Financial and Operational Highlights:

  • Total revenue was $693 million;  24% growth compared to 2016, with 22% organic growth;
  • Life Sciences revenue was $149 million; 38% growth, with 27% organic growth;
  • Semiconductor revenue was $544 million;  20% growth, with all being organic growth;
  • GAAP Net Income was $63 million with diluted EPS of $0.89;
  • Non-GAAP Net Income was $87 million with diluted EPS of $1.23; and
  • Cash flow from operations was $96 million.


Summary of GAAP and Non-GAAP Earnings
 
  Quarter Ended
  September 30,    June 30,    September 30, 
Dollars in thousands, except per share data 2017   2017   2016
GAAP net income $  17,386   $  17,350   $  10,547
GAAP diluted earnings per share $  0.25   $  0.25   $  0.15
                 
Non-GAAP net income $  24,522   $  25,353   $  15,324
Non-GAAP diluted earnings per share $  0.35   $  0.36   $  0.22
                 

A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated statements of operations, balance sheets and statements of cash flows included in this release.

Management Comments
“Our fiscal 2017 has been a year filled with key milestones and the fourth quarter was no exception. We achieved another record for gross margins in our Semiconductor segment and for the Company, while we continued to expand our Life Sciences business,” commented Steve Schwartz, CEO of Brooks Automation.  “Life Sciences revenue grew 20% quarter over quarter to comprise 24% of our fourth quarter revenue. In early October we purchased 4titude, which will complement our existing Life Sciences business and continue to drive our Life Science’s revenue growth.  For the full fiscal year 2017, we delivered 24% top-line growth and 163% adjusted EPS growth with both segments contributing materially to this solid performance.  We finished the year in a strong position and we are poised for continued momentum in fiscal year 2018.”

GAAP Summary of Q4 Fiscal 2017
Revenue for the fourth quarter of fiscal 2017 was $182 million, flat compared to the third quarter of fiscal 2017 and 15% higher than the fourth fiscal quarter of 2016.  The flat sequential revenue reflected growth of 20% in the Brooks Life Sciences Systems segment offset by an expected 5% decline in the Brooks Semiconductor Solutions Group segment.  The year-over-year 15% growth was driven by 39% growth in Life Sciences and 10% growth in Semiconductor Solutions.  Total gross margin was 40.9% which improved 150 basis points from the third quarter of fiscal 2017.  Operating expenses of $57 million increased 8%, or $4 million, from the previous quarter, driven primarily by higher non-cash stock incentive accruals and increased R&D costs.  In the fourth quarter, the Company incurred $0.6 million of restructuring charges, compared to $0.8 million in the third quarter. GAAP net income in the quarter was $17 million and diluted earnings per share was $0.25.

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. Brooks currently includes a valuation allowance reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for the non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in deriving the non-GAAP tax rate.

Discussion of Non-GAAP Results
Non-GAAP net income was $25 million in the fourth quarter, resulting in non-GAAP earnings per share of $0.35. This compares to non-GAAP net income of $25 million and non-GAAP earnings per share of $0.36 in the third quarter of fiscal 2017, and non-GAAP net income of $15 million and non-GAAP earnings per share of $0.22 in the fourth quarter of fiscal 2016.

As noted above, revenue for the fourth fiscal quarter of 2017 was $182 million, flat compared to the third fiscal quarter of 2017.  As projected, the Semiconductor Solutions revenue was 5% lower in the fourth quarter compared to the third quarter, largely driven by lower Contamination Control Solutions sales.  Growth in the Life Sciences segment offset this decline, with revenue growth of $7.2 million or 20% sequentially to $44 million.  Storage services, store systems, cryo systems, and consumables all expanded, contributing $3.7 million of the total growth.  Life Sciences also added $3.5 million of revenue from businesses acquired in the quarter, primarily from the PBMMI storage services business. 

Adjusted gross margin was 41.3% in the fourth quarter, up 130 basis points from the prior quarter.  The Semiconductor Solutions segment adjusted gross margin was 42.3% in the fourth quarter compared to 40.5% in the prior quarter reflecting improved production costs and revenue mix.  The Life Sciences segment adjusted gross margin was 38.2% in the fourth quarter compared to 38.0% in the prior quarter, supported by improved margins in the core systems business.  In summary, the total adjusted gross profit increased by $2.5 million compared to the prior quarter, supported by 20% growth of adjusted gross profit in Life Sciences and approximately flat adjusted gross profit in the Semiconductor segment on lower revenue with higher margins.

Bookings for the Semiconductor Solutions segment in the fourth quarter totaled $142 million, compared to $131 million in the third quarter.  Backlog for the segment finished at $115 million, $4 million above the third quarter ending backlog.  Bookings in the Life Sciences segment totaled $35 million of new contract value in the fourth quarter, compared to $42 million in the third quarter. 

Fourth quarter non-GAAP operating expenses were $49 million, an increase of 10%, or $4.3 million, compared to the third quarter.  The sequential change was driven by a 10% increase in SG&A and a 7% increase in R&D.  Within operating expenses, $2.0 million of the increase was a non-cash charge to the stock compensation accrual for long term incentive plans.

Adjusted EBITDA was $37 million in the fourth quarter, an improvement of $0.8 million, or 2%, compared to the third fiscal quarter.  Cash flow from operations increased from $18 million in the third quarter to $35 million in the fourth quarter, and culminated in $96 million total cash from operations for fiscal 2017.  The Company's balance of cash, cash equivalents, and marketable securities was $104 million as of September 30, 2017 compared to $120 million at the end of the third quarter.  Impacting cash on the balance sheet were dividends paid of $7 million and  cash used for acquisitions of $39 million.

Fiscal Year 2017 Results (non-GAAP discussion)
For fiscal 2017, total revenue increased 24% to $693 million compared to revenue of $560 million for fiscal 2016 with Life Science revenue growth of 38% and Semiconductor Solutions growth of 20%.  Adjusted net income was $87 million, which improved 167% compared to $33 million of adjusted net income in fiscal year 2016.

Subsequent Events
On October 5, 2017, the Company announced the acquisition of 4titude, Ltd., a manufacturer of scientific consumables for biological sample materials used in a variety of genomic analytical applications, for approximately $66 million in cash, subject to customary working capital and other adjustments.  The Company also announced it had secured a seven year $200 million senior secured term loan.  

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on December 22, 2017 to stockholders of record on December 1, 2017. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.

Guidance for First Quarter of Fiscal 2018
The Company announced revenue and earnings guidance for the first quarter of fiscal 2018. Revenue is expected to be in the range of $182 million to $188 million. The Company’s newly established debt is estimated to drive $2.2 million of interest expense. Non-GAAP diluted earnings per share is expected to be in the range of $0.27 to $0.32. GAAP diluted earnings per share for the first quarter is expected to be in the range of $0.19 to $0.24, reflecting the impact of amortization, purchase price accounting, charges related to M&A and anticipated restructuring charges.

Conference Call
Brooks management will webcast its fourth quarter earnings conference call today at 8:30 a.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 800-954-0648 (US & Canada only) or 415-226-5357 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 temperatures of ‑20°C to -150°C, 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.



BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                       
  Three Months Ended   Year Ended
  September 30,    September 30, 
  2017     2016     2017     2016  
Revenue                      
Products $  136,940     $  119,545     $  533,624     $  421,783  
Services    44,940        38,008        159,261        138,540  
   Total revenue    181,880        157,553        692,885        560,323  
Cost of revenue                      
Products    80,452        75,158        323,812        267,974  
Services    27,063        25,830        101,669        94,268  
   Total cost of revenue    107,515        100,988        425,481        362,242  
Gross profit    74,365        56,565        267,404        198,081  
Operating expenses                      
Research and development    12,856        12,335        47,004        51,543  
Selling, general and administrative    43,565        31,594        153,061        130,261  
Restructuring charges    563        2,232        3,226        12,039  
   Total operating expenses    56,984        46,161        203,291        193,843  
Operating income    17,381        10,404        64,113        4,238  
Interest income    32        142        464        452  
Interest expense    (122 )      (101 )      (408 )      (157 )
Gain on settlement of equity method investment    —        —        1,847        —  
Other income (expense), net    203        (290 )      (645 )      (579 )
Income before income taxes and equity in earnings of equity method investments    17,494        10,155        65,371        3,954  
Income tax provision    2,240        740        12,140        75,810  
Income (loss) before equity in earnings of equity method investments    15,254        9,415        53,231        (71,856 )
Equity in earnings of equity method investments    2,132        1,132        9,381        2,380  
Net income (loss) $  17,386     $  10,547     $  62,612     $  (69,476 )
Basic net income (loss) per share $  0.25     $  0.15     $  0.90     $  (1.01 )
Diluted net income (loss) per share    0.25        0.15        0.89        (1.01 )
Dividend declared per share    0.10        0.10        0.40        0.40  
                       
Weighted average shares outstanding used in computing net income (loss) per share:                      
Basic    69,808        68,718        69,575        68,507  
Diluted    70,681        69,540        70,485        68,507  
                       


BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
           
  September 30,    September 30,
   2017      2016  
Assets          
Current assets          
   Cash and cash equivalents $  101,622     $  85,086  
   Marketable securities    28        39  
   Accounts receivable, net    120,828        106,372  
   Inventories    106,395        92,572  
   Prepaid expenses and other current assets    23,138        15,265  
      Total current assets    352,011        299,334  
Property, plant and equipment, net    58,462        54,885  
Long-term marketable securities    2,642        6,096  
Long-term deferred tax assets    1,692        1,982  
Goodwill    233,638        202,138  
Intangible assets, net    83,520        81,843  
Equity method investments    28,593        27,273  
Other assets    6,070        12,354  
      Total assets $  766,628     $  685,905  
Liabilities and Stockholders' Equity          
Current liabilities          
Accounts payable $  49,100     $  41,128  
Deferred revenue    24,292        14,966  
Accrued warranty and retrofit costs    8,054        6,324  
Accrued compensation and benefits    27,065        21,254  
Accrued restructuring costs    1,708        5,939  
Accrued income taxes payable    11,417        7,554  
Accrued expenses and other current liabilities    25,142        22,628  
      Total current liabilities    146,778        119,793  
Long-term tax reserves    1,687        2,681  
Long-term deferred tax liabilities    3,748        2,913  
Long-term pension liabilities    1,979        2,557  
Other long-term liabilities    4,792        4,271  
      Total liabilities    158,984        132,215  
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, 83,294,848 shares issued and 69,832,979 shares outstanding at September 30, 2017, 82,220,270 shares issued and 68,758,401 shares outstanding at  September 30, 2016    833        821  
Additional paid-in capital    1,874,918        1,855,703  
Accumulated other comprehensive income    15,213        15,166  
Treasury stock at cost - 13,461,869 shares    (200,956 )      (200,956 )
Accumulated deficit    (1,082,364 )      (1,117,044 )
      Total stockholders' equity    607,644        553,690  
      Total liabilities and stockholders' equity $  766,628     $  685,905  


BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
           
  Year Ended
  September 30, 
  2017     2016  
Cash flows from operating activities          
Net income (loss) $  62,612     $  (69,476 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
  Depreciation and amortization    28,149        28,046  
  Gain on settlement of equity method investment    (1,847 )      —  
  Impairment of other assets    —        807  
  Stock-based compensation    17,278        11,737  
  Amortization of premium on marketable securities and deferred financing costs    252        339  
  Earnings of equity method investments    (9,381 )      (2,380 )
  Deferred income tax provision    517        70,273  
  Pension settlement    (259 )      —  
  Other gains on disposal of assets    (406 )      (41 )
  Changes in operating assets and liabilities, net of acquisitions:          
      Accounts receivable    (11,178 )      (1,796 )
      Inventories    (12,792 )      8,565  
      Prepaid expenses and other current assets    (5,829 )      (428 )
      Accounts payable    7,846        (5,143 )
      Deferred revenue    8,049        (3,290 )
      Accrued warranty and retrofit costs    1,602        290  
      Accrued compensation and tax withholdings    5,565        (3,234 )
      Accrued restructuring costs    (4,241 )      3,860  
      Accrued pension costs    (32 )      (811 )
      Accrued expenses and other current liabilities    10,319        2,229  
            Net cash provided by operating activities    96,224        39,547  
Cash flows from investing activities          
Purchases of property, plant and equipment    (12,677 )      (12,848 )
Purchases of technology intangibles    (240 )      —  
Purchases of marketable securities    —        (12,901 )
Sales and maturities of marketable securities    3,590        139,388  
Acquisitions, net of cash acquired    (44,791 )      (125,248 )
Disbursement for a loan receivable    —        (1,821 )
Purchases of other investments    (170 )      (250 )
Proceeds from sales of property, plant and equipment    100        2,806  
            Net cash used in investing activities    (54,188 )      (10,874 )
Cash flows from financing activities          
Proceeds from issuance of common stock    2,040        1,888  
Payment of deferred financing costs    (28 )      (708 )
Proceeds from line of credit    —        366  
Common stock dividends paid    (27,932 )      (27,503 )
            Net cash used in financing activities    (25,920 )      (25,957 )
Effects of exchange rate changes on cash and cash equivalents    420        1,648  
Net increase in cash and cash equivalents    16,536        4,364  
Cash and cash equivalents, beginning of period    85,086        80,722  
Cash and cash equivalents, end of period $  101,622     $  85,086  


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. Brooks currently includes a valuation allowance reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in establishing the non-GAAP tax rate. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.

                                     
    Quarter Ended
    September 30, 2017   June 30, 2017   September 30, 2016
        per diluted       per diluted       per diluted
Dollars in thousands, except per share data    $   share   $   share   $   share
GAAP net income   $  17,386     $  0.25     $  17,350     $  0.25     $  10,547     $  0.15  
Adjustments:                                    
Purchase accounting impact on inventory and contracts acquired      —        —        71        0.00        125        —  
Amortization of intangible assets      4,403        0.06        4,330        0.06        3,826        0.06  
Impairment of other assets      —        —        —        —        807        0.01  
Restructuring charges      563        0.01        828        0.01        2,232        0.03  
Merger costs      3,470        0.05        3,654        0.05        81        —  
Tax effect of adjustments      (1,300 )      (0.02 )      (880 )      (0.01 )      (2,293 )      (0.03 )
Non-GAAP adjusted net income      24,522        0.35        25,353        0.36        15,324        0.22  
  Stock based compensation, pre-tax      6,197              4,197              3,532        
  Tax rate      13   %          15   %          16   %    
Stock-based compensation, net of tax      5,416        0.08        3,559        0.05        2,967        0.04  
Non-GAAP adjusted net income - excluding stock-based compensation   $  29,938     $  0.42     $  28,912     $  0.41     $  18,291     $  0.26  
                                     
Shares used in computing non-GAAP diluted net income per share            70,681              70,405              69,540  


                                     
                Year Ended
                September 30, 2017   September 30, 2016
                    per diluted       per diluted
Dollars in thousands, except per share data                $   share   $   share
GAAP net income (loss)               $  62,612     $  0.89     $  (69,476 )   $  (1.01 )
Adjustments:                                    
Purchase accounting impact on inventory and contracts acquired                  523        0.01        624        0.01  
Amortization of intangible assets                  17,146        0.24        14,979        0.22  
Impairment of other assets                              807        0.01  
Restructuring charges                  3,226        0.05        12,039        0.17  
Gain on sale of a building                  —              (56 )      —  
Merger costs                  8,309        0.12        3,384        0.05  
Less: Fair value adjustment of equity investment                  (1,847 )      (0.03 )      —        —  
Add: True-up of BioCision stub period adjustment                  203              —        —  
Establishment of valuation allowance against deferred tax assets                              79,340        1.14  
Tax effect of adjustments                  (3,157 )      (0.04 )      (9,016 )      (0.13 )
Non-GAAP adjusted net income                  87,015        1.23        32,625        0.47  
Stock-based compensation, pre-tax                  17,278              11,737        
Tax rate                  15   %          47   %    
Stock-based compensation, net of tax                  14,686     $  0.21        6,232        0.09  
Non-GAAP adjusted net income - excluding stock-based compensation               $  101,701     $  1.44     $  38,857     $  0.56  
                                     
Shares used in computing non-GAAP diluted net income per share                        70,485              69,367  


                                     
    Quarter Ended  
    September 30, 2017   June 30, 2017   September 30, 2016
Dollars in thousands   $     $     $  
GAAP gross profit/gross margin percentage   $  74,365   40.9 %   $  71,572   39.4 %   $  56,565   35.9
Adjustments:                                    
Amortization of completed technology      810   0.4      1,051   0.6      1,083   0.7
Purchase accounting impact on inventory and contracts acquired      —   0.0      71   0.0      125   0.1
Non-GAAP adjusted gross profit/gross margin percentage   $  75,175   41.3   $  72,694   40.0   $  57,773   36.7


                                     
                Year Ended
                September 30, 2017   September 30, 2016
Dollars in thousands               $       $  
GAAP gross profit/gross margin percentage               $  267,404   38.6   $  198,081   35.4
Adjustments:                                    
Amortization of completed technology                  3,915   0.6      4,180   0.7
Purchase accounting impact on inventory and contracts acquired                  523   0.1      624   0.1
Non-GAAP adjusted gross profit/gross margin percentage               $  271,842   39.2   $  202,885   36.2


                               
    Quarter Ended   Year Ended
    September 30,    June 30,    September 30,    September 30,    September 30, 
Dollars in thousands   2017     2017     2016     2017     2016  
GAAP net income (loss)   $  17,386     $  17,350     $  10,547     $  62,612     $  (69,476 )
Adjustments:                              
Less: Interest income      (32 )      (137 )      (142 )      (464 )      (452 )
Add: Interest expense      122        93        101        408        157  
Add: Income tax provision      2,240        3,680        740        12,140        75,810  
Add: Depreciation      3,096        2,589        2,900        11,003        13,067  
Add: Amortization of completed technology      810        1,051        1,083        3,915        4,180  
Add: Amortization of customer relationships and acquired intangible assets      3,593        3,279        2,743        13,231        10,799  
Earnings before interest, taxes, depreciation and amortization   $  27,215     $  27,905     $  17,972     $  102,845     $  34,085  


                               
    Quarter Ended   Year Ended
    September 30,    June 30,    September 30,    September 30,    September 30, 
Dollars in thousands   2017   2017   2016   2017     2016  
Earnings before interest, taxes, depreciation and amortization   $  27,215   $  27,905   $  17,972   $  102,845     $  34,085  
Adjustments:                              
Add: Impairment of other assets      —      —     807      —       807  
Less: Fair value adjustment of equity method investment      —      —          (1,847 )      
Add: Stock-based compensation      6,197      4,197      3,532      17,278        11,737  
Add: Restructuring charges      563      828      2,232      3,226        12,039  
Add: BioCision stub period adjustment      —      —          203        
Add: Purchase accounting impact on inventory and contracts acquired      —      71      125      523        624  
Less: Gain on sale of a building              —            (56 )
Add: Merger costs      3,470      3,654      81      8,309        3,384  
Adjusted earnings before interest, taxes, depreciation and amortization   $  37,445   $  36,655   $  24,749   $  130,537     $  62,620  


                               
    Quarter Ended   Year Ended
    September 30,    June 30,    September 30,    September 30,    September 30, 
Dollars in thousands   2017     2017     2016     2017     2016  
GAAP selling, general and administrative expenses   $  43,565     $  40,016     $  31,594     $  153,061     $  130,261  
Adjustments:                              
Less: Amortization of customer relationships and acquired intangible assets      (3,593 )      (3,279 )      (2,743 )      (13,231 )      (10,799 )
Less: Impairment of other assets      —        —        (807 )      —        (807 )
Less: Merger costs      (3,470 )      (3,654 )      (81 )      (8,309 )      (3,384 )
Non-GAAP adjusted selling, general and administrative expenses   $  36,502     $  33,083     $  27,963     $  131,521     $  115,271  
Research and development expenses   $  12,856     $  11,958     $  12,335     $  47,004     $  51,543  
Non-GAAP adjusted operating expenses   $  49,358     $  45,041     $  40,298     $  178,525     $  166,814  


                               
    Quarter Ended   Year Ended
    September 30,    June 30,    September 30,    September 30,    September 30, 
Dollars in thousands   2017   2017   2016   2017   2016
GAAP equity in earnings of equity method investments   $  2,132   $  2,530   $  1,132   $  9,381   $  2,380
Adjustments:                              
Add: BioCision stub period adjustment      —              203    
Non-GAAP adjusted equity in earnings of equity method investments   $  2,132   $  2,530   $  1,132   $  9,584   $  2,380


                                     
    Brooks Semiconductor Solutions Group   Brooks Life Science Systems
    Quarter Ended   Quarter Ended
    September 30,    June 30,    September 30,    September 30,    June 30,    September 30, 
Dollars in thousands   2017   2017   2016   2017   2017   2016
GAAP gross profit   $  57,775   $  58,083   $  44,513   $  16,590   $  13,489   $  12,052
Adjustments:                                    
Amortization of completed technology      627      626      711      183      425      372
Purchase accounting impact on inventory and contracts acquired      —      —      125      —      71      —
Non-GAAP adjusted gross profit   $  58,402   $  58,709   $  45,349   $  16,773   $  13,985   $  12,424


                         
    Brooks Semiconductor Solutions Group   Brooks Life Science Systems
    Year Ended   Year Ended
    September 30,    September 30,    September 30,    September 30, 
Dollars in thousands   2017   2016   2017   2016
GAAP gross profit   $  212,652   $  159,018   $  54,752   $  39,063
Adjustments:                        
Amortization of completed technology      2,506      2,715      1,409      1,465
Purchase accounting impact on inventory and contracts acquired      125      624      398    
Non-GAAP adjusted gross profit   $  215,283   $  162,357   $  56,559   $  40,528


                                       
    Brooks Semiconductor Solutions Group   Brooks Life Science Systems  
    Quarter Ended   Quarter Ended  
    September 30,    June 30,    September 30,    September 30,    June 30,    September 30,   
Dollars in thousands   2017   2017   2016   2017   2017   2016  
GAAP gross margin      41.9 %    40.1 %    35.4 %    37.8 %    36.7 %    38.1 %
Adjustments:                                      
Amortization of completed technology      0.5 %    0.4 %    0.6 %    0.4 %    1.2 %    1.2 %
Purchase accounting impact on inventory and contracts acquired      —      —      0.1 %    - %    0.2 %    -  
Non-GAAP adjusted gross margin      42.3 %    40.5 %    36.0 %    38.2 %    38.0 %    39.2 %


                         
    Brooks Semiconductor Solutions Group
    Brooks Life Science Systems  
    Year Ended
    Year Ended  
    September 30,      September 30,      September 30,      September 30,    
Dollars in thousands   2017
    2016 
    2017 
    2016 
 
GAAP gross margin    39.1  %    35.2    36.8   36.1
Adjustments:                        
Amortization of completed technology    0.5    0.6    0.9    1.4
Purchase accounting impact on inventory and contracts acquired    —  %    0.1    0.3    —
Non-GAAP adjusted gross margin    39.6  %    35.9    38.0    37.5


                                                       
    Brooks Semiconductor Solutions Group   Brooks Life Science Systems   Total Segments
    Quarter Ended   Quarter Ended   Quarter Ended
    September 30,    June 30,    September 30,    September 30,    June 30,    September 30,    September 30,    June 30,    September 30, 
Dollars in thousands   2017   2017   2016   2017   2017   2016   2017   2017   2016
GAAP operating profit   $  23,154   $  26,188   $  15,208   $  2,160   $  1,134   $  1,104   $  25,314   $  27,322   $  16,312
Adjustments:                                                      
Amortization of completed technology      627      626      711      183      425      372      810      1,051      1,083
Purchase accounting impact on inventory and contracts acquired      —      —      125      —      71      —      —      71      125
Non-GAAP adjusted operating profit   $  23,781   $  26,814   $  16,044   $  2,343   $  1,630   $  1,476   $  26,124   $  28,444   $  17,520


                                                       
    Total Segments   Corporate   Total
    Quarter Ended   Quarter Ended   Quarter Ended
    September 30,    June 30,    September 30,    September 30,    June 30,    September 30,    September 30,    June 30,    September 30, 
Dollars in thousands   2017   2017   2016   2017     2017     2016     2017   2017   2016
GAAP operating profit (loss)   $  25,314   $  27,322   $  16,312   $  (7,933 )   $  (8,552 )   $  (5,908 )   $  17,381   $  18,770   $  10,404
Adjustments:                                                      
Amortization of completed technology      810      1,051      1,083      —        —        —        810      1,051      1,083
Amortization of customer relationships and acquired intangible assets      —      —      —      3,593        3,279        2,743        3,593      3,279      2,743
Restructuring charges      —      —      —      563        828        2,232        563      828      2,232
Purchase accounting impact on inventory and contracts acquired      —      71      125      —        —        —        —      71      125
Merger costs      —      —      —      3,470        3,654        81        3,470      3,654      81
Non-GAAP adjusted operating profit (loss)   $  26,124   $  28,444   $  17,520   $  (307 )   $  (791 )   $  (852 )   $  25,817   $  27,653   $  16,668


                                     
    Brooks Semiconductor Solutions Group   Brooks Life Science Systems   Total Segments
    Year Ended   Year Ended   Year Ended
Dollars in thousands   September 30, 2017   September 30, 2016   September 30, 2017   September 30, 2016   September 30, 2017   September 30, 2016
GAAP operating profit (loss)   $  86,716   $  37,926   $  4,695   $  (6,451 )   $  91,411   $  31,476
Adjustments:                                    
Amortization of completed technology      2,506      2,715      1,409      1,465        3,915      4,180
Purchase accounting impact on inventory and contracts acquired      125      624      398      —        523      624
Non-GAAP adjusted operating profit (loss)   $  89,347   $  41,265   $  6,502   $  (4,986 )   $  95,849   $  36,280


                                     
    Total Segments   Corporate   Total
    Year Ended   Year Ended   Year Ended
Dollars in thousands   September 30, 2017   September 30, 2016   September 30, 2017   September 30, 2016   September 30, 2017   September 30, 2016
GAAP operating profit (loss)   $  91,411   $  31,476   $  (27,298 )   $  (27,238 )   $  64,113   $  4,238
Adjustments:                                    
Amortization of completed technology      3,915      4,180      —        —        3,915      4,180
Amortization of customer relationships and acquired intangible assets      —      —      13,231        10,799        13,231      10,799
Restructuring charges      —      —      3,226        12,039        3,226      12,039
Purchase accounting impact on inventory and contracts acquired      523      624      —        —        523      624
Merger costs      —      —      8,309        3,384        8,309      3,384
Non-GAAP adjusted operating profit (loss)   $  95,849   $  36,280   $  (2,532 )   $  (1,016 )   $  93,317   $  35,264


CONTACTS:
Sherry Dinsmore
Brooks Automation
978.262.4301
sherry.dinsmore@brooks.com

John Mills
Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com

 

Brooks Automation, Inc.