PR Newswire | Nov 10, 2021 04:06PM EST

September 30, 2021, and Announces Quarterly Cash Dividend

11/10 15:05 CST

Brooks Automation Reports Results of Fourth Quarter of Fiscal 2021, Ended September 30, 2021, and Announces Quarterly Cash DividendStrong Double-Digit Growth Quarter Underscores Robust Demand Environment in Life Sciences CHELMSFORD, Mass., Nov. 10, 2021

CHELMSFORD, Mass., Nov. 10, 2021 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the fiscal quarter ended September 30, 2021.

Summary of GAAPResultsResults of continuing operations reflect the Life Sciences business. Due to the announced divestiture in the fourth fiscal quarter of 2021, results of the Semiconductor Automation business are treated as discontinued operations and reflected in total diluted EPS.

Quarter Ended Year Ended

Dollars in millions, except per share dataSeptember 30, September 30, September 30, September 30,

2021 2020 Change 2021 2020 Change

Revenue - Continuing Operations $137 $108 27 %$514 $389 32 %

Diluted EPS - Continuing Operations $(0.30) $(0.01) NM $(0.39) $(0.36) 9 %

Total Diluted EPS $0.29 $0.39 (25) %$1.49 $0.88 69 %

Summary of Non-GAAP ResultsThe aggregate view of revenue and EPS is shown on a non-GAAP basis for investors to compare results to the performance reports provided in previous periods and to the Company's most recent guidance.



Quarter Ended Year Ended

Dollars in millions, except per share dataSeptember 30, September 30, September 30, September 30,

2021 2020 Change 2021 2020 Change

Revenue - Continuing Operations $ 137 $ 108 27 %$ 514 $ 389 32 %

Revenue - Discontinued Operations $ 205 $ 138 49 %$ 680 $ 509 34 %

Aggregate view of Revenue $ 342 $ 246 39 %$ 1,194 $ 897 33 %



Non-GAAP Diluted EPS - Continuing $ 0.12 $ 0.09 32 %$ 0.48 $ 0.02 NM %Operations

Non-GAAP Total Diluted EPS $ 0.78 $ 0.47 67 %$ 2.58 $ 1.26 105 %

On September 20, 2021 the Company announced that it had entered into a definitive agreement to sell its Semiconductor Automation business. In accordance with GAAP, sales and expenses directly related to that business must be removed from their applicable income statement caption for continuing operations and reported for all periods presented as net income from discontinued operations in the GAAP financial statements. For this transition quarter, we present the non-GAAP summary above to provide a view of the entire business including the Semiconductor Automation business for direct comparison to prior guidance and historical results.

Management Comments"We ended the 2021 fiscal year with another strong quarter in what has been a truly transformational year for the company," stated Steve Schwartz, President and CEO. "Life Sciences delivered another quarter of growth in excess of 20%, and we continue to see a long runway ahead. In addition, late in the quarter we announced the new name and brand of our life sciences business, Azenta. We are excited for the opportunity to launch into the marketplace under a single, unified life sciences brand."

Summary of GAAP ResultsRevenue excludes the Semiconductor Automation revenue as a result of the pending sale of this business. Profits related to this business are included in discontinued operations.

Fourth Quarter, Fiscal 2021

* Revenue from continuing operations for the fourth quarter was $137 million, up 27% year over year driven by strong growth in both Life Sciences Products and Services. Year-over-year organic growth was 24%. * Revenue from Life Science Products grew 38% year over year, and Life Sciences Services grew 20%. * Operating loss for the quarter was $21 million and gross margin was 48.3%. Operating expenses in the quarter include approximately $8 million related to the pending divestiture of the Semiconductor Automation business and $13 million of non-cash charges due to the retirement of tradenames related to the rebranding of the Life Sciences business. Non-operating expenses include $16 million of charges for the release of a tax indemnification asset, which is offset within tax expense with the reduction of tax liability. * Total diluted EPS of $0.29 includes $0.59 of diluted EPS from discontinued operations. Diluted loss per share from continuing operations was $0.30 per share, down $0.29 compared to the fourth quarter of 2020, primarily driven by operating expenses related to the pending divestiture of the Semiconductor Automation business and the impact of the retirement of tradenames related to the rebranding of the Life Sciences business.

Full Year, Fiscal 2021

* Revenue for fiscal 2021 was $514 million, an increase of 32% compared to fiscal 2020 driven by 54% growth in Life Science Products and 21% growth in Life Science Services. Excluding the effect of the exit of the RUCDR alliance in Q4 2020, Life Sciences Services grew 30%. Year-over-year organic growth was 33%. * Operating loss for fiscal 2021 was $31 million, a $6 million reduction in operating loss compared to fiscal 2020. Gross margin was 47.5%, a 320 basis point increase year-over-year. * Diluted EPS was $1.49 for the fiscal year, up 69% year-over-year driven by strong growth and operating leverage, partially offset by expenses in the period including $20 million due to the pending divestiture of the Semiconductor Automation business and $13 million due to the retirement of tradenames related to the rebranding of the Life Sciences business. Non-operating expenses include $16 million of charges for the release of a tax indemnification asset, which is offset within tax expense with the reduction of tax liability.

Summary of Non-GAAP Earnings for Continuing OperationsThe Continuing Operations view shown on a non-GAAP basis provides investors additional performance information by excluding the impact of M&A costs, amortization, restructuring, purchase price accounting, and special charges or gains, such as impairment losses. This profile will be used in reporting future results and excludes the Semiconductor Automation business, which is now part of discontinued operations.

Fourth Quarter, Fiscal 2021

* Diluted EPS for the fourth quarter was $0.12, up 32% year over year. * Adjusted EBITDA was $21 million, up 38% from the fourth quarter of 2020 and 13% sequentially. * Operating income was $11 million, an increase of 48% year over year, and operating margin was 8.2%, up 120 basis points year over year driven by margin leverage in Life Science Products partially offset by increased costs in Life Sciences Services. * Gross margin of 49.7% was down 80 basis points year over year driven lower margins in the Life Sciences Services business related to higher materials and labor costs.

Full Year, Fiscal 2021

* Diluted EPS for fiscal 2021 was $0.48, compared to $0.02 in fiscal 2020. * Adjusted EBITDA was $86 million, up 205% from fiscal 2020. * Operating income was $47 million, compared to $0.3 million in fiscal 2020, and operating margin was 9.1%, up 910 basis points year over year driven by gross margin improvement in both segments as well as operating leverage. * Gross margin of 50.1% was up 360 basis points year over year driven by performance improvement of 290 basis points driven by improvement in both Products and Services as well as 70 basis points of favorable mix as a result of exiting the RUCDR alliance agreement. * The non-GAAP tax rate was 20.3%.

Commentary on Non-GAAP Earnings in an Aggregate View with Semiconductor Automation IncludedThe aggregate view is shown on a non-GAAP basis for investors wishing to compare results to the performance reports provided in previous periods and to the Company's most recent guidance.

Fourth Quarter, Fiscal 2021

* Revenue in aggregate for the fourth quarter was $342 million, up 39% year over year. The Semiconductor Automation business generated revenue of $205 million, up 49% year over year and up 45% on an organic basis. Life Sciences generated revenue of $137 million, up 27% year over year and up 24% on an organic basis. * Non-GAAP EPS was $0.78 in the quarter, an increase of 67% year over year.

Full Year, Fiscal 2021

* Revenue in aggregate for fiscal 2021 was $1,194 million, up 33% year over year. The Semiconductor Automation business generated revenue of $680 million, up 34% year over year and up 31% on an organic basis. Life Sciences generated revenue of $514 million, up 32% year over year and up 33% on an organic basis. * Non-GAAP EPS was $2.58 for the full year, an increase of 105% year over year.

Quarterly Cash DividendThe Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on December 23, 2021 to stockholders of record on December 3, 2021. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.

Guidance for Continuing Operations for First Quarter Fiscal 2022The Company announced revenue and earnings guidance for continuing operations for the first quarter of fiscal 2022. Revenue is expected to be in the range of $130 million to $140 million and GAAP diluted loss per share for the first fiscal quarter is expected to be in the range of $0.14 to $0.06. Non-GAAP diluted earnings per share from continuing operations is expected to be in the range of $0.04 to $0.12.

Brooks 2021 Investor Day Featuring Azenta Life SciencesThe Company will host a virtual investor day on November 16th from 9:00am to 12:00pm Eastern Time. The investor day will feature our Life Sciences business, the recently rebranded Azenta Life Sciences. Please visit our website at brooks.investorroom.com or click here to register.

Conference Call and WebcastBrooks management will webcast its fourth quarter earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks' website at www.brooks.investorroom.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-786-1918 (US & Canada only) or +1-212-231-2907 for international callers to listen to the live webcast.

Regulation G - Use of Non-GAAP financial MeasuresThe Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, our ability to deliver financial success in the future, and certainty and/or timing of completion of the pending sale of our Semiconductor Automation business to Thomas H. Lee Partners, L.P., and our ability to invest the expected cash proceeds from the sale. Factors that could cause results to differ from our expectations include the following: the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally, the volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions, and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.

About Brooks AutomationBrooks (Nasdaq: BRKS) operates two global, market-leading businesses, Life Sciences and Semiconductor Solutions, each with its own distinct area of focus and expertise. The Life Sciences business, to be operated under the new Azenta brand, provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. On September 20, 2021, the Company announced the pending sale to Thomas H. Lee Partners of its Semiconductor Automation business, which provides industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world's leading semiconductor chip makers and equipment manufacturers as well as collaborative robotics and automation capabilities for multi-market applications. Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe, and Asia. For more information, please visit www.brooks.com.

BROOKS INVESTOR CONTACTS:

Sara SilvermanDirector of Investor RelationsBrooks Automation978.262.2635sara.silverman@brooks.com

Sherry DinsmoreBrooks Automation978.262.4301sherry.dinsmore@brooks.com

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)



Three Months Ended Year Ended

September 30, September 30,

2021 2020 2021 2020

Revenue

Products $48,745 $34,347 $181,036 $110,567

Services 88,194 73,899 332,667 277,970

Total revenue 136,939 108,246 513,703 388,537

Cost of revenue

Products 25,118 19,363 96,678 44,243

Services 45,679 36,345 173,216 172,146

Total cost of revenue 70,797 55,708 269,894 216,389

Gross profit 66,142 52,538 243,809 172,148

Operating expenses

Research and development 6,599 4,636 22,412 17,818

Selling, general and administrative 80,453 49,170 252,101 190,256

Restructuring charges 332 114 385 674

Total operating expenses 87,384 53,920 274,898 208,748

Operating loss (21,242) (1,382) (31,089) (36,600)

Interest income 129 (16) 632 849

Interest expense (552) (679) (2,037) (2,944)

Other expenses, net (16,212) (124) (16,475) (1,597)

Loss before income taxes (37,877) (2,201) (48,969) (40,292)

Income tax benefit (15,480) (1,620) (20,100) (13,930)

Loss from continuing operations $(22,397)$(581) $(28,869)$(26,362)

Income from discontinued operations, net of tax 44,201 29,554 139,616 91,215

Net income $21,804 $28,973 $110,747 $64,853

Basic net income per share:

Loss from continuing operations $(0.30) $(0.01) $(0.39) $(0.36)

Income from discontinued operations, net of tax 0.59 0.40 1.88 1.25

Basic net income per share $0.29 $0.39 $1.49 $0.88

Diluted net income per share:

Loss from continuing operations $(0.30) $(0.01) $(0.39) $(0.36)

Income from discontinued operations, net of tax 0.59 0.40 1.88 1.24

Diluted net income per share $0.29 $0.39 $1.49 $0.88



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

Basic 74,330 73,808 74,229 73,557

Diluted 74,532 74,004 74,455 73,850



BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)



September 30, September 30,

2021 2020



Assets

Current assets

Cash and cash equivalents $227,427 $250,649

Marketable securities 81 51

Accounts receivable, net 119,877 94,791

Inventories 60,398 37,125

Prepaid expenses and other current assets 58,198 43,974

Current assets held for sale 311,385 222,863

Total current assets 777,366 649,453

Property, plant and equipment, net 130,719 88,735

Long-term marketable securities 3,598 3,101

Long-term deferred tax assets 10,043 3,976

Goodwill 469,356 453,177

Intangible assets, net 186,534 212,323

Other assets 58,068 49,782

Non-current assets held for sale 183,828 98,718

Total assets $1,819,512 $1,559,265

Liabilities and Stockholders' Equity

Current liabilities

Current portion of long-term debt $- $827

Accounts payable 42,360 25,689

Deferred revenue 25,724 25,776

Accrued warranty and retrofit costs 2,330 2,211

Accrued compensation and benefits 33,183 28,669

Accrued restructuring costs 304 122

Accrued income taxes payable 8,711 1,975

Accrued expenses and other current liabilities 103,537 43,017

Current liabilities held for sale 128,939 82,832

Total current liabilities 345,088 211,118

Long-term debt 49,677 49,588

Long-term tax reserves 1,973 18,471

Long-term deferred tax liabilities 13,030 17,797

Long-term pension liabilities 705 895

Long-term operating lease liabilities 45,088 18,905

Other long-term liabilities 6,173 1,302

Non-current liabilities held for sale 32,444 27,575

Total liabilities 494,178 345,651

Commitments and contingencies

Stockholders' Equity

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

Common stock, $0.01 par value - 125,000,000 shares authorized, 87,808,922 shares issued and 74,347,053 shares outstanding at 878 873 September 30, 2021, 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2020

Additional paid-in capital 1,976,112 1,942,850

Accumulated other comprehensive income 19,351 21,919

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

Accumulated deficit (470,051) (551,072)

Total Brooks Automation, Inc. stockholders' equity 1,325,334 1,213,614

Noncontrolling interest in subsidiary - -

Total stockholders' equity 1,325,334 1,213,614

Total liabilities and stockholders' equity $1,819,512 $1,559,265

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)



Year Ended

September 30,

2021 2020

Cash flows from operating activities

Net income $110,747 $64,853

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

Depreciation and amortization 65,333 65,496

Impairment of intangible assets 13,364 -

Stock-based compensation 27,456 16,317

Amortization of premium on marketable securities and deferred financing costs 225 233

Deferred income taxes (17,265) (5,407)

Other gains on disposals of assets 260 226

Adjustment to the gain on divestiture, net of tax 948 319

Taxes paid stemming from divestiture - (91,500)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable (69,643) (18,755)

Inventories (50,443) (13,144)

Prepaid expenses and current assets (15,968) 25,642

Accounts payable 30,967 792

Deferred revenue (3,939) (139)

Accrued warranty and retrofit costs 54 760

Accrued compensation and tax withholdings 7,298 11,097

Accrued restructuring costs 124 (865)

Accrued expenses and current liabilities 50,339 (18,059)

Net cash provided by operating activities 149,857 37,866

Cash flows from investing activities

Purchases of property, plant and equipment (52,805) (39,924)

Purchases of marketable securities (151) (10,894)

Sales of marketable securities 25 2,492

Maturities of marketable securities 96 42,328

Acquisitions, net of cash acquired (95,514) (15,744)

Settlement (issuance) of notes receivable 2,000 (1,000)

Net cash used in investing activities (146,349) (22,742)

Cash flows from financing activities

Proceeds from issuance of common stock 5,812 4,595

Principal payments on debt (828) (828)

Payments of finance leases (1,164) (1,277)

Common stock dividends paid (29,726) (29,513)

Net cash used in financing activities (25,906) (27,023)

Effects of exchange rate changes on cash and cash equivalents 5,205 9,254

Net decrease in cash, cash equivalents and restricted cash (17,193) (2,645)

Cash, cash equivalents and restricted cash, beginning of period 302,526 305,171

Cash and cash equivalents and restricted cash, end of period $285,333 $302,526



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

Cash and cash equivalents of continuing operations 227,427 250,649

Cash and cash equivalents included in assets held for sale 45,000 45,000

Short-term restricted cash included in prepaid expenses and other current 7,145 3,567 assets

Long-term restricted cash included in other assets 5,761 3,310

Total cash, cash equivalents and restricted cash shown in the consolidated $285,333 $302,526 statements of cash flows

Notes on Non-GAAP Financial Measures:These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. For fiscal year 2021, management has excluded a charge related to liabilities for import tariffs related to imports in prior fiscal years. The cost of import tariffs which pertain to the current fiscal year imports were not removed from non-GAAP results. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

Quarter Ended

September 30, 2021 June 30, 2021 September 30, 2020

per diluted per diluted per diluted

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

Net loss from continuing operations $(22,397) $ (0.30)$(1,842) $ (0.02)$(581) $ (0.01)

Adjustments:

Amortization of intangible assets 9,515 0.13 9,570 0.13 8,833 0.12

Impairment of intangible assets 13,364 0.18 - - - -

Restructuring charges 332 0.00 - - 114 0.00

Merger and acquisition costs 8,427 0.11 2,526 0.03 19 0.00

Rebranding and transformation costs 827 0.01 - - - -

Indemnification asset release 16,007 0.21 - - - -

Other adjustments - - (83) (0.00) - -

Tax adjustments ^(1) (10,345) (0.14) 179 0.00 153 0.00

Tax effect of adjustments (6,967) (0.09) (2,688) (0.04) (1,928) (0.03)

Non-GAAP adjusted net income from continuing operations $8,763 $ 0.12 $7,662 $ 0.10 $6,610 $ 0.09

Income from discontinued operations, net of tax 44,201 0.59 41,009 0.55 29,554 0.40

Adjustments to discontinued operations: -

Amortization of intangible assets 436 0.01 1,178 0.02 736 0.01

Purchase accounting impact on inventory and contracts acquired 211 0.00 140 0.00 - -

Tax effect of adjustments related to discontinued operations 4,362 0.06 3,482 0.05 (2,394) (0.03)

Non-GAAP adjusted net income from discontinued operations 49,210 0.66 45,809 0.61 27,896 0.38

Non-GAAP adjusted net income attributable to Brooks $57,973 $ 0.78 $53,471 $ 0.72 $34,506 $ 0.47

Stock based compensation, pre-tax 5,138 0.07 4,344 0.06 2,654 0.04

Tax rate 15 % - 15 % - 15 % -

Stock-based compensation, net of tax 4,367 0.06 3,692 0.05 2,256 0.03

Non-GAAP adjusted net income excluding stock-based compensation$13,130 $ 0.18 $11,354 $ 0.15 $8,866 $ 0.12 - continuing operations



Shares used in computing non-GAAP diluted net income per share - 74,532 - 74,495 - 74,004

Year Ended

September 30, 2021 September 30, 2020

per diluted per diluted

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

Net loss from continuing operations $(28,869) $ (0.39)$(26,362) $ (0.36)

Adjustments:

Amortization of intangible assets 37,372 0.50 35,375 0.48

Restructuring related charges - - 301

Restructuring charges 385 0.01 674 0.01

Tariff adjustment 5,497 0.07 - -

Merger and acquisition costs 20,662 0.28 501 0.01

Impairment of intangible assets 13,364 0.18 - -

Rebranding and transformation costs 827 0.01 - -

Indemnification asset release 16,007 0.21 - -

Other adjustments (83) (0.00) - -

Tax adjustments ^(1) (11,919) (0.16) (863) (0.01)

Tax effect of adjustments (17,314) (0.23) (8,451) (0.11)

Non-GAAP adjusted net income from continuing operations $35,929 $ 0.48 $1,175 $ 0.02

Income from discontinued operations, net of tax 139,616 1.88 91,215 1.23

Adjustments to discontinued operations:

Amortization of intangible assets 2,297 0.03 2,908 0.04

Purchase accounting impact on inventory and contracts acquired 351 0.00 - -

Tax effect of adjustments related to discontinued operations 13,570 0.18 (2,264) (0.03)

Non-GAAP adjusted net income from discontinued operations $155,834 $ 2.09 $91,859 $ 1.23

Non-GAAP adjusted net income attributable to Brooks $191,763 $ 2.58 $93,034 $ 1.25

Stock-based compensation, pre-tax 20,051 0.27 10,506 0.14

Tax rate 15 % - 15 % -

Stock-based compensation, net of tax 17,043 $ 0.23 8,930 0.12

Non-GAAP adjusted net income excluding stock-based compensation$52,972 $ 0.71 $10,105 $ 0.14 - continuing operations



Shares used in computing non-GAAP diluted net income per share - 74,455 - 73,850

Tax adjustments during the quarter ended and year ended September 30, 2021 include $2.0 million of excluded tax benefits related to valuation allowance reversals and $16.6 million of excluded tax benefits related to tax reserve reversals. The excluded benefits are offset by the exclusion of $4.1 million of withholding tax costs associated with foreign cash repatriation and $3.4 million of charges relating to the write-off of an intangible asset that offsets the tax reserve reversal. During the quarter(1) ended September 30, 2021, the company realized a benefit of $1.5 million related to the timing differences in recognizing the tax benefit related to stock compensation windfall tax deductions. The benefit for US GAAP is recognized in the period of vesting but included in the annual effective tax rate for Non-GAAP reporting. During the year ended September 30, 2020, the Company elected to exclude a deferred tax benefit of $0.5 million realized related to the extension of the 15 percent tax rate incentive in China.



Quarter Ended Year Ended

September 30, June 30, September 30, September 30, September 30,

Dollars in thousands 2021 2021 2020 2021 2020

GAAP net income $21,804 $39,166 $28,973 $110,747 $64,853

Adjustments:

Less: Income from discontinued operations (44,201) (41,009) (29,554) (139,616) (91,215)

Less: Interest income (129) (409) 16 (632) (849)

Add: Interest expense 552 477 679 2,037 2,944

Add: Income tax benefit (15,480) (760) (1,620) (20,100) (13,930)

Add: Depreciation 5,055 4,873 5,195 19,488 18,747

Add: Amortization of completed technology 1,873 2,173 2,077 8,073 8,099

Add: Amortization of customer relationships and acquired intangible 7,642 7,396 6,756 29,299 27,276 assets

(Loss) earnings before interest, taxes, $(22,884) $11,907 $12,522 $9,296 $15,925 depreciation and amortization



Quarter Ended Year Ended

September 30, June 30, September 30, September 30, September 30,

Dollars in thousands 2021 2021 2020 2021 2020

(Loss) earnings before interest, taxes, $(22,884) $11,907 $12,522 $9,296 $15,925 depreciation and amortization

Adjustments:

Add: Stock-based compensation 5,138 4,344 2,719 20,051 10,817

Add: Restructuring charges 332 - 114 385 674

Add: Restructuring related charges - - - - 301

Add: Merger and acquisition costs 8,427 2,526 19 20,662 502

Add: Tariff adjustment - - - 5,497 -

Impairment of intangible assets 13,364 - - 13,364 -

Rebranding and transformation costs 827 - - 827 -

Indemnification asset release 16,007 - - 16,007 -

Less: Other adjustments - (83) - (83) -

Adjusted earnings before interest, taxes, depreciation and amortization - $21,211 $18,694 $15,374 $86,006 $28,219 Continuing operations

Quarter Ended

Dollars in thousands September 30, 2021June 30, 2021 September 30, 2020

GAAP gross profit $66,142 48.3% $62,43148.4 %$52,538 48.5%

Adjustments:

Amortization of completed technology 1,873 1.4 2,173 1.7 2,077 1.9

Other adjustment - - (83) (0.1) - 0.0

Non-GAAP adjusted gross profit $68,015 49.7% $64,52150.0 %$54,615 50.5%





Year Ended

Dollars in thousands September 30, 2021September 30, 2020

GAAP gross profit $243,80947.5 %$172,14844.3 %

Adjustments:

Amortization of completed technology 8,073 1.6 8,099 2.1

Restructuring related charges - - 301 0.1

Other adjustment (83) 0.0

Tariff adjustment 5,497 1.1 - -

Non-GAAP adjusted gross profit $257,29650.1 %$180,54846.5 %





Brooks Life Sciences Products Brooks Life Sciences Services

Quarter Ended Quarter Ended

Dollars in thousands September 30, 2021June 30, 2021 September 30, 2020September 30, 2021June 30, 2021 September 30, 2020

GAAP gross profit $25,32947.7% $22,65546.6%$16,70143.2% $40,815 48.7 %$39,77249.4 %$35,832 51.5 %

Adjustments:

Amortization of completed technology 132 0.2 432 0.9 293 0.8 1,741 2.1 1,742 2.2 1,784 2.6

Other adjustment - - - - - - - - (83) (0.1) - -

Non-GAAP adjusted gross profit $25,46147.9% $23,08747.5%$16,99444.0% $42,556 50.8 %$41,43151.5 %$37,616 54.0 %





Brooks Life Sciences Products Brooks Life Sciences Services

Year Ended Year Ended

Dollars in thousands September 30, 2021September 30, 2020September 30, 2021September 30, 2020

GAAP gross profit $92,566 46.4% $55,718 42.9% $151,21048.1 %$ 116,42845.0%

Adjustments:

Amortization of completed technology 1,117 0.6 1,165 0.9 6,957 2.2 6,935 2.7

Restructuring related charges - - - - - - 301 0.1

Other adjustment - - - - (83) (0.0) - -

Tariff adjustment - - - - 5,497 1.8 - -

Non-GAAP adjusted gross profit $93,683 46.9% $56,883 43.8% $163,58152.1 %$ 123,66447.8%





Brooks Life Sciences Products Brooks Life Sciences Services

Quarter Ended Quarter Ended

September 30, June 30, September 30, September 30, June 30, September 30,

Dollars in thousands 2021 2021 2020 2021 2021 2020

GAAP operating profit $6,470 $4,629 $1,007 $2,602 $4,115 $4,932

Adjustments:

Amortization of completed technology 132 432 293 1,741 1,742 1,784

Other adjustment - - - - (83) -

Non-GAAP adjusted operating profit $6,602 $5,061 $1,300 $4,343 $5,774 $6,716





Total Segments Corporate Total

Quarter Ended Quarter Ended Quarter Ended

September 30, June 30, September 30, September 30, June 30, September 30, September 30, June 30, September 30,

Dollars in thousands 2021 2021 2020 2021 2021 2020 2021 2021 2020

GAAP operating profit (loss) $ 9,072 $8,744 $5,939 $ (30,314) $(9,627)$ (7,321) $ (21,242) $(883) $ (1,382)

Adjustments:

Amortization of completed technology 1,873 2,174 2,077 - - - 1,873 2,174 2,077

Amortization of customer relationships - - - 7,642 7,396 6,756 7,642 7,396 6,756 and acquired intangible assets

Restructuring charges - - - 332 - 114 332 - 114

Impairment of intangible assets - - - 13,364 - - 13,364 - -

Rebranding and transformation costs - - - 827 - - 827 - -

Other adjustment - (83) - - - - - (83) -

Merger and acquisition costs - - - 8,427 2,526 19 8,427 2,526 19

Non-GAAP adjusted operating profit (loss)$ 10,945 $10,835 $8,016 $ 278 $295 $ (432) $ 11,223 $11,130 $ 7,584





Brooks Life Sciences Products Brooks Life Sciences Services

Year Ended Year Ended

Dollars in thousands September 30, September 30, September 30, September 30,

2021 2020 2021 2020

GAAP operating profit (loss) $ 21,977 $ (4,206) $ 10,289 $(4,376)

Adjustments:

Amortization of completed technology 1,117 1,165 6,957 6,935

Restructuring related charges - - - 301

Other adjustment - - (83) -

Tariff adjustment - - 5,497 -

Non-GAAP adjusted operating profit $ 23,094 $ (3,041) $ 22,660 $2,860





Total Segments Corporate Total

Year Ended Year Ended Year Ended

Dollars in thousands September 30, September 30, September 30, September 30, September 30, September 30,

2021 2020 2021 2020 2021 2020

GAAP operating profit (loss) $ 32,266 $ (8,582) $ (63,355) $ (28,018) $ (31,089) $ (36,600)

Adjustments:

Amortization of completed technology 8,073 8,100 - - 8,073 8,100

Amortization of customer relationships - - 29,299 27,276 29,299 27,276 and acquired intangible assets

Restructuring charges - - 385 674 385 674

Restructuring related charges - 301 - - - 301

Tariff adjustment 5,497 - - - 5,497 -

Impairment of intangible assets - 13,364 13,364 -

Rebranding and transformation costs - 827 827 -

Other adjustment (83) - - - (83) -

Merger and acquisition costs - - 20,662 501 20,662 501

Non-GAAP adjusted operating profit (loss)$ 45,753 $ (181) $ 1,182 $ 433 $ 46,935 $ 252

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SOURCE Brooks Automation