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Brooks Automation Reports Results of First Quarter of Fiscal 2021, Ended December 31, 2020, and Announces Quarterly Cash Dividend

CHELMSFORD, Mass., Feb. 2, 2021 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the first fiscal quarter of 2021, ended December 31, 2020.



Financial Results Summary




Quarter Ended








Dollars in millions, except per share data


December 31, 


September 30, 



December 31, 


Change vs.






2020


2020



2019


Prior Qtr


Prior Year




Revenue


$

250


$

246



$

210


1

%

19

%



Semiconductor Solutions


$

131


$

138



$

119


(5)

%

11

%



Life Sciences


$

118


$

108



$

92


9

%

29

%





















Diluted EPS Continuing Operations


$

0.36


$

0.39



$

0.18


(7)

%

103

%



Diluted EPS Total


$

0.35


$

0.39



$

0.18


(11)

%

98

%





















Non-GAAP Diluted EPS Continuing Operations


$

0.47


$

0.47



$

0.23


1

%

108

%





















Adjusted EBITDA


$

58


$

54



$

32


7

%

81

%





Management Comments
"We are very pleased with the results of our first quarter of 2021 as we continued our trajectory of strong profitable growth," commented Steve Schwartz, president and CEO. "Our life sciences business had another exceptional quarter, driven by both product and services offerings. Semiconductor remains robust and is poised to accelerate in the second quarter given a healthy order backlog and market tailwinds."

Summary of GAAP Results
First Quarter, Fiscal 2021

  • Revenue for the first quarter was $250 million, up 19% year over year, supported by growth in both Life Sciences and Semiconductor Solutions. Diluted EPS from continuing operations was $0.36 per share compared to $0.18 per share in the first quarter of 2020.
  • Life Sciences revenue of $118 million grew 29% year over year. Year-over-year organic growth was 32%. Life Sciences Products grew 53% year over year, and Life Sciences Services grew 17%. Life Sciences Services increased 28%, excluding the effect of the recent exit of the RUCDR alliance.
  • Semiconductor Solutions revenue was $131 million, an increase of 11% year over year.
  • GAAP operating income was $31 million, compared to $11 million in the first quarter of 2020. GAAP operating margin was 12.4%, up 730 basis points year over year.

Summary of Non-GAAP Results for Continuing Operations
First Quarter, Fiscal 2021

  • Diluted EPS for the first quarter was $0.47, up 108% year over year.
  • Operating income was $44 million, an increase of 99% year over year, and operating margin was 17.5%, up 710 basis points year over year. Gross margin of 46.3% was up 470 basis points year over year and was the primary contributor to the operating margin improvement. Year-over-year gross margin expansion in both Life Sciences and Semiconductor Solutions drove this improvement.
  • Life Sciences operating margin was 18.8%, up from 6.5% in the prior year. The year-over-year improvement was driven by gross margin of 50.2%, up 590 basis points year over year. An additional 640 basis points improvement came from the leverage of operating expense which grew only 7% to support the 29% revenue growth. The 590 basis point year-over-year improvement in Life Sciences gross margin was driven by the Products business, up 310 basis points, and the Services business, up 790 basis points. The favorable mix effect of unwinding the RUCDR alliance agreement drove 210 basis points of the total Life Sciences business gross margin improvement while 380 basis points of the increase was due to performance improvement.
  • Semiconductor Solutions operating margin was 16.4%, an increase of 380 basis points from the prior year. Gross margin was 42.8%, up 320 basis points year over year, primarily driven by growth and favorable mix in vacuum robots compared to the prior year.
  • Adjusted EBITDA was $58 million, up 81% from the first quarter of 2020 and 7% 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 $44 million for the quarter, an increase of $18 million year over year.
  • The Company ended the first fiscal quarter of 2021 with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $323 million. With total debt of $50 million, net cash was $272 million.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on March 26, 2021 to stockholders of record on March 5, 2021.  Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.

Guidance for Second Quarter Fiscal 2021
The Company announced revenue and earnings guidance for the second quarter of fiscal 2021.  Revenue is expected to be in the range of $267 million to $283 million and non-GAAP diluted earnings per share is expected to be in the range of $0.48 to $0.57.  GAAP diluted earnings per share for the second fiscal quarter is expected to be in the range of $0.33 to $0.42

Conference Call and Webcast
Brooks management will webcast its first 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 800-734-8583 (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 (Nasdaq: BRKS) is a leading provider of life science sample-based solutions and semiconductor manufacturing solutions worldwide. The Company's Life Sciences business provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Brooks Life Sciences' GENEWIZ division is a leading provider of 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.

BROOKS INVESTOR CONTACTS:

Sara Silverman
Director of Investor Relations
Brooks Automation
978.262.2635
sara.silverman@brooks.com

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

 

 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)

























Three Months Ended







December 31, 







2020


2019





Revenue











Products


$

159,616


$

131,862





Services



89,887



78,638





Total revenue



249,503



210,500





Cost of revenue











Products



91,503



79,971





Services



44,872



45,543





Total cost of revenue



136,375



125,514





Gross profit



113,128



84,986





Operating expenses











Research and development



16,083



14,401





Selling, general and administrative



66,030



59,343





Restructuring charges



87



576





Total operating expenses



82,200



74,320





Operating income



30,928



10,666





Interest income



76



699





Interest expense



(556)



(737)





Other income (expenses), net



1,329



(417)





Income before income taxes



31,777



10,211





Income tax benefit



4,770



(2,963)





Income from continuing operations



27,007



13,174





Loss from discontinued operations, net of tax



(979)



(117)





Net income


$

26,028


$

13,057





Basic net income per share:











Income from continuing operations


$

0.35


$

0.18





Loss from discontinued operations, net of tax



(0.01)



(0.00)





Basic net income per share


$

0.35


$

0.18





Diluted net income per share:











Income from continuing operations


$

0.36


$

0.18





Loss from discontinued operations, net of tax



(0.01)



(0.00)





Diluted net income per share


$

0.35


$

0.18
















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











Basic



74,021



72,972





Diluted



74,283



73,645
















               

 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)














December 31, 


September 30,


2020


2020







Assets






Current assets






Cash and cash equivalents

$

308,517


$

295,649

Marketable securities


55



67

Accounts receivable, net


196,679



188,291

Inventories


123,917



114,834

Prepaid expenses and other current assets


45,988



50,612

Total current assets


675,156



649,453

Property, plant and equipment, net


126,947



117,665

Long-term marketable securities


3,410



3,101

Long-term deferred tax assets


4,765



4,979

Goodwill


512,989



501,536

Intangible assets, net


219,866



218,325

Other assets


71,599



64,066

Total assets

$

1,614,732


$

1,559,125

Liabilities and Stockholders' Equity






Current liabilities






Current portion of long-term debt

$

414


$

827

Accounts payable


67,811



61,758

Deferred revenue


35,661



31,357

Accrued warranty and retrofit costs


8,228



8,201

Accrued compensation and benefits


31,693



43,267

Accrued restructuring costs


106



181

Accrued income taxes payable


15,972



10,094

Accrued expenses and other current liabilities


65,885



55,433

Total current liabilities


225,770



211,118

Long-term debt


49,629



49,588

Long-term tax reserves


19,458



19,168

Long-term deferred tax liabilities


15,132



17,798

Long-term pension liabilities


6,741



6,406

Long-term operating lease liabilities


34,173



31,855

Other long-term liabilities


11,675



9,578

Total liabilities


362,578



345,511

Stockholders' Equity






Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding




Common stock, $0.01 par value - 125,000,000 shares authorized, 87,672,132 shares issued and 74,210,263 shares outstanding at December 31, 2020, 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2020


877



873

Additional paid-in capital


1,949,556



1,942,850

Accumulated other comprehensive income


35,145



21,919

Treasury stock at cost - 13,461,869 shares


(200,956)



(200,956)

Accumulated deficit


(532,468)



(551,072)

Total stockholders' equity


1,252,154



1,213,614

Total liabilities and stockholders' equity

$

1,614,732


$

1,559,125

 

 


BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)














Three Months Ended


December 31, 


2020


2019

Cash flows from operating activities






Net income

$

26,028


$

13,057

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






Depreciation and amortization


15,746



16,477

Stock-based compensation


6,710



4,410

Amortization of premium on marketable securities and deferred financing costs


56



67

Deferred income taxes


(4,960)



(8,183)

Other gains on disposals of assets


1



126

Adjustment to the gain on divestiture, net of tax


948



319

Changes in operating assets and liabilities, net of acquisitions:






Accounts receivable


(4,504)



1,503

Inventories


(6,307)



(4,335)

Prepaid expenses and current assets


28,945



6,120

Accounts payable


5,727



5,255

Deferred revenue


3,186



(720)

Accrued warranty and retrofit costs


(185)



221

Accrued compensation and tax withholdings


(12,307)



(5,755)

Accrued restructuring costs


(75)



(203)

Accrued expenses and current liabilities


(15,279)



(2,616)

Net cash provided by operating activities


43,730



25,743

Cash flows from investing activities






Purchases of property, plant and equipment


(15,227)



(9,614)

Purchases of marketable securities


(4)



(10,742)

Maturities of marketable securities




33,584

Acquisitions, net of cash acquired


(15,061)



Net cash (used in) provided by investing activities


(30,292)



13,228

Cash flows from financing activities






Principal payments on debt


(414)



(414)

Payments of finance leases


(319)



(319)

Common stock dividends paid


(7,424)



(7,369)

Net cash used in financing activities


(8,157)



(8,102)

Effects of exchange rate changes on cash and cash equivalents


11,250



2,808

Net increase in cash and cash equivalents


16,531



33,677

Cash, cash equivalents and restricted cash, beginning of period


302,526



305,171

Cash and cash equivalents and restricted cash, end of period

$

319,057


$

338,848







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






Cash and cash equivalents

$

308,517


$

335,319

Short-term restricted cash included in prepaid expenses and other current assets


3,571



3,529

Long-term restricted cash included in other assets


6,969



Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows

$

319,057


$

338,848

Notes on Non-GAAP Financial Measures:
These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.






















Quarter Ended



December 31, 2020


September 30, 2020


December 31, 2019





per diluted




per diluted




per diluted

Dollars in thousands, except per share data    


$


share


$


share


$


share

Net income from continuing operations


$

27,007


$

0.36


$

28,973


$

0.39


$

13,174


$

0.18

Adjustments:



















Amortization of intangible assets



9,745



0.13



10,442



0.14



10,584



0.14

Restructuring charges



87



0.00



241



0.00



576



0.01

Merger costs



2,991



0.04



19



0.00



195



0.00

Tax adjustments (1)



(1,999)



(0.03)



(800)



(0.01)



(5,230)



(0.07)

Tax effect of adjustments 



(2,880)



(0.04)



(4,369)



(0.06)



(2,662)



(0.04)

Non-GAAP adjusted net income from continuing operations


$

34,951


$

0.47


$

34,506


$

0.47


$

16,637


$

0.23

   Stock based compensation, pre-tax



6,710



0.09



3,969



0.05



4,410



0.06

   Tax rate



15

%




15

%




15

%


Stock-based compensation, net of tax



5,704



0.08



3,374



0.05



3,749



0.05

Non-GAAP adjusted net income excluding stock-based compensation - continuing operations


$

40,655


$

0.55


$

37,880


$

0.51


$

20,386


$

0.28




















Shares used in computing non-GAAP diluted net income per share





74,283





74,004





73,645



(1)

The Company elected to apply the tax benefit related to the stock compensation windfall realized in the quarters ended December 31, 2020 and 2019 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.

 

 














Quarter Ended




December 31, 


September 30,


December 31, 


Dollars in thousands


2020


2020


2019


GAAP net income


$

26,028


$

28,973


$

13,057


Adjustments:











Less: Loss (income) from discontinued operations



979





117


Less: Interest income



(76)



16



(699)


Add: Interest expense



556



679



737


Add: Income tax benefit



4,770



4,380



(2,963)


Add: Depreciation



6,001



5,295



5,891


Add: Amortization of completed technology



2,389



2,813



2,674


Add: Amortization of customer relationships and acquired intangible assets



7,356



7,629



7,910


Earnings before interest, taxes, depreciation and amortization


$

48,003


$

49,785


$

26,724


 

 














Quarter Ended




December 31, 


September 30,


December 31, 


Dollars in thousands


2020


2020


2019


Earnings before interest, taxes, depreciation and amortization


$

48,003


$

49,785


$

26,724


Adjustments:











Add: Stock-based compensation



6,710



3,969



4,410


Add: Restructuring charges



87



240



576


Add: Merger costs



2,991



19



195


Adjusted earnings before interest, taxes, depreciation and amortization


$

57,791


$

54,013


$

31,905


 

 






















Quarter Ended


Dollars in thousands


December 31, 2020


September 30, 2020


December 31, 2019

GAAP gross profit/margin percentage


$

113,128


45.3

%


$

111,969


45.5

%


$

84,986


40.4

%

Adjustments:



















Amortization of completed technology



2,389


1.0




2,813


1.1




2,674


1.3


Non-GAAP adjusted gross profit/gross margin percentage


$

115,517


46.3

%


$

114,782


46.6

%


$

87,660


41.6

%




















 

 






















Brooks Semiconductor Solutions Group



Quarter Ended

Dollars in thousands


December 31, 2020


September 30, 2020


December 31, 2019

GAAP gross profit/margin percentage


$

55,789


42.5

%


$

59,435


43.1

%


$

46,300


39.0

%

Adjustments:



















Amortization of completed technology



384


0.3




736


0.5




732


0.6


Non-GAAP adjusted gross profit/margin percentage


$

56,173


42.8

%


$

60,171


43.6

%


$

47,032


39.6

%

 

 








































Brooks Life Sciences Products


Brooks Life Sciences Services



Quarter Ended


Quarter Ended

Dollars in thousands


December 31, 2020


September 30, 2020


December 31, 2019


December 31, 2020


September 30, 2020


December 31, 2019

GAAP gross profit/margin percentage


$

20,531


45.1

%


$

16,701


43.2

%


$

12,378


41.6

%


$

36,810


50.7

%


$

35,832


51.5

%


$

26,308


42.5

%

Adjustments:





































Amortization of completed technology



273


0.6




293


0.8




292


1.0




1,732


2.4




1,784


2.6




1,650


2.7


Non-GAAP adjusted gross profit/margin percentage


$

20,804


45.7

%


$

16,994


44.0

%


$

12,670


42.6

%


$

38,542


53.1

%


$

37,616


54.0

%


$

27,958


45.1

%






































 

 






















Brooks Life Sciences Total



Quarter Ended

Dollars in thousands


December 31, 2020


September 30, 2020


December 31, 2019

GAAP gross profit/margin percentage


$

57,341


48.5

%


$

52,533


48.5

%


$

38,686


42.1

%

Adjustments:



















Amortization of completed technology



2,005


1.7




2,077


1.9




1,942


2.1


Non-GAAP adjusted gross profit/margin percentage


$

59,346


50.2

%


$

54,610


50.5

%


$

40,628


44.3

%

 

 








































Brooks Semiconductor Solutions Group


Brooks Life Sciences Products


Brooks Life Sciences Services


Brooks Life Sciences Total



Quarter Ended


Quarter Ended


Quarter Ended


Quarter Ended



Dec 31,


Sept 30,


Dec 31,


Dec 31,


Sept 30,


Dec 31,


Dec 31,


Sept 30,


Dec 31,


Dec 31,


Sept 30,


Dec 31,

Dollars in thousands


2020


2020


2019


2020


2020


2019


2020


2020


2019


2020


2020


2019

GAAP operating profit


$

21,154


$

27,094


$

14,268


$

7,669


$

4,072


$

69


$

12,579


$

11,353


$

3,963


$

20,248


$

15,425


$

4,032

Adjustments:





































Amortization of completed technology



384



736



732



273



293



292



1,732



1,784



1,650



2,005



2,077



1,942

Non-GAAP adjusted operating profit


$

21,538


$

27,830


$

15,000


$

7,942


$

4,365


$

361


$

14,311


$

13,137


$

5,613


$

22,253


$

17,502


$

5,974

 

 































Total Segments


Corporate


Total



Quarter Ended


Quarter Ended


Quarter Ended



Dec 31,


Sept 30,


Dec 31,


Dec 31,


Sept 30,


Dec 31,


Dec 31,


Sept 30,


Dec 31,

Dollars in thousands


2020


2020


2019


2020


2020


2019


2020


2020


2019

GAAP operating profit (loss)


$

41,402


$

42,519


$

18,300


$

(10,474)


$

(8,398)


$

(7,634)


$

30,928


$

34,121


$

10,666

Adjustments:




























Amortization of completed technology



2,389



2,813



2,674









2,389



2,813



2,674

Amortization of customer relationships and acquired intangible assets









7,356



7,629



7,910



7,356



7,629



7,910

Restructuring charges









87



241



576



87



241



576

Merger costs









2,991



19



195



2,991



19



195

Non-GAAP adjusted operating profit (loss)


$

43,791


$

45,332


$

20,974


$

(40)


$

(509)


$

1,047


$

43,751


$

44,823


$

22,021





























 

 

(PRNewsfoto/Brooks Automation)

 

 

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