CHELMSFORD, Mass., April 28, 2016 (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 second quarter of 2016, ended March 31, 2016.
Fiscal Second Quarter of 2016 Financial and Operational Highlights:
- Revenue was $135.3 million;
- GAAP Net Loss was $(83.9) million with diluted EPS of $(1.22), including the recording of a reserve of $79.3 million on deferred tax assets;
- Non-GAAP Net Income was $4.9 million with diluted EPS of $0.07;
- Adjusted EBITDA in the quarter was $11.3 million;
- Cash flow from operations was $12.8 million; and
- Total of Cash, Cash Equivalents, and Marketable Securities, as of March 31, 2016, was $68.3 million.
Summary of GAAP and Non-GAAP Earnings (Losses)
| Quarter Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| Dollars in thousands, except per share data | 2016 | 2015 | 2015 | ||||||||
| GAAP net (loss) income | $ | (83,939 | ) | $ | (4,648 | ) | $ | 2,711 | |||
| GAAP diluted (loss) earnings per share | $ | (1.22 | ) | $ | (0.07 | ) | $ | 0.04 | |||
| Non-GAAP net income | $ | 4,920 | $ | 1,246 | $ | 5,429 | |||||
| Non-GAAP diluted earnings per share | $ | 0.07 | $ | 0.02 | $ | 0.08 | |||||
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.
Management Comments
“Our second quarter results reflect continued momentum towards achieving the strategic and financial objectives of expanding our Life Science business as a larger percentage of overall revenue, strengthening the portfolio and capabilities of the Semiconductor business, and improving the profitability of the overall business,” commented Stephen Schwartz, CEO of Brooks Automation. “Our top line is benefiting from improved semiconductor demand, the acquisition of BioStorage Technologies, and the diversity of the end-markets we serve. We continue to see increased market demand and adoption of our products, including our vacuum automation, contamination control solutions, and automated cryogenic bio-sample management. Our previously announced restructuring initiative is nearly complete and is enabling improved alignment of sales and service, while lowering our cost structure by approximately $16 million annually. As we move into the second half of fiscal 2016, we are confident about the momentum in the markets we serve and our ability to move into our next phase of growth and profitability.”
GAAP Summary
Revenue increased 13% sequentially to $135.3 million in the second quarter of fiscal 2016 driven by improved semiconductor demand and a full quarter of revenue contributions from the November 30, 2015 acquisition of BioStorage Technologies. Gross margin was 34.6%, 0.8 percentage points better than the first fiscal quarter of 2016. Research and Development expense was $13.1 million, 1% lower than first quarter and Selling, General and Administrative expense was $32.7 million, 4% lower than the first quarter. In this quarter, the Company incurred $7.3 million of restructuring charges and also reduced accruals for incentive based compensation by $1.7 million for employees separated from the Company. While the restructuring action positions the Company for improved profitability going forward, the restructuring charge in the quarter drove a pre-tax loss for the total Company and for the U.S. entity. GAAP accounting requires that, in consideration of the loss in the U.S. combined with losses in recent years excluding income from discontinued operations, the Company record a full reserve against its U.S. deferred tax assets. The non-cash charge of $79.3 million resulted in a reported GAAP net loss of $(83.9) million and diluted loss per share of $(1.22).
Amortization of intangibles, special charges, and one-time items are included in the GAAP summary of earnings. The impact on earnings of these items is set out in the unaudited table included with this release.
Results of Q2 Fiscal 2016 (Non-GAAP Discussion)
Non-GAAP net income was $4.9 million in the second quarter, resulting in non-GAAP diluted earnings per share of $0.07. Our non-GAAP earnings include the benefit of reduced incentive compensation accruals for employees separated in the quarter which amounted to $1.7 million and benefited non-GAAP EPS by two cents per share. Excluding the benefit of the reduced accrual, the non-GAAP net income was $3.5 million and non-GAAP EPS was $0.05. These profit measures compare to first quarter 2016 non-GAAP net income of $1.2 million and non-GAAP earnings per share of $0.02.
As noted above, revenue for the second fiscal quarter of 2016 was $135.3 million, up 13% compared to the first fiscal quarter of 2016. Product Solutions increased 13% to $86.8 million, and Global Services declined 2% to $22.0 million. The Company grew Life Sciences revenue by $5.6 million, or 27% sequentially to $26.5 million, driven by $4.9 million of incremental revenue from a full quarter of BioStorage Technologies acquired November 30, 2015.
Adjusted gross margin, which excludes amortization, purchase accounting impacts and special charges, was 35.3% in the second quarter, up 0.3 percentage points from the prior quarter. The Product Solutions adjusted gross margin was 36.0% in the second quarter compared to 36.6% in the prior period, with improved margins in Automation products and weaker margins in the Cryogenic products. Life Sciences adjusted gross margin was 38.5% in the second quarter compared to 30.1% in the first fiscal quarter driven by improved mix in the results of the recently acquired BioStorage business. The Global Services adjusted gross margin was 28.9% in the second quarter compared to 34.0% in the prior quarter, impacted largely by lower volume and increased material costs. In summary, the total adjusted gross profit increased by $5.8 million compared to the prior quarter, driven primarily by revenue increases across Product Solutions and Life Sciences and improved adjusted gross margins in Life Sciences.
Bookings for the semiconductor business from the Product Solutions and Global Services segments totaled $108.6 million, compared to $111.1 million in the first quarter. Bookings for the life sciences business totaled $38.5 million, including $10.3 million of new orders from the legacy business and $28.2 million of new contract value from BioStorage.
Non-GAAP operating expense of $42.5 million increased $0.3 million sequentially. Operating expenses associated with the acquisition of BioStorage drove a $2.3 million expansion, which was largely offset by $1.6 million of incentive compensation accrual reversals related to employees separated in the restructuring initiative.
Adjusted EBITDA in the quarter was $11.3 million, and cash flow provided by operations was $12.8 million in the quarter. The Company's cash, cash equivalents, and marketable securities increased $3.1 million to $68.3 million as of March 31, 2016, which reflects the operating cash flow, dividend payment and capital expenditures during the quarter.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 24, 2016 to stockholders of record on June 3, 2016. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.
Guidance for Third Fiscal Quarter of 2016
The Company announced revenue and earnings guidance for the third quarter of fiscal 2016. Revenue is expected to be in the range of $140 million to $147 million and non-GAAP diluted earnings per share is expected to be in the range of $0.10 to $0.14. The Company expects the non-GAAP tax rate for the 2016 fiscal year to be in the range of 15-20%.
Conference Call
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.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-708-6791 (US & Canada only) or 303-223-4375 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 and, by applying expertise in automation and cryogenics, has expanded its offerings to meet the sample storage needs of customers in the life sciences industry. Brooks recently completed a strategic acquisition of BioStorage Technologies, Inc., complementing Brooks’ life sciences offerings with comprehensive outsource services. Brooks now offers, in addition to a broad range of products and services for on-site infrastructure for sample management in temperatures of -20°C to -150°C, 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 direct operations in North America, Europe and Asia. For more information, visit www.brooks.com.
| CONTACT: | Lynne Yassemedis |
| Brooks Automation, Inc. | |
| 978-262-4443 | |
| lynne.yassemedis@brooks.com | |
| John Mills | |
| Senior Managing Director | |
| ICR, LLC | |
| 310-954-1105 | |
| john.mills@icrinc.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 statements regarding our revenue and operating margin expectations, our ability to develop further our business in new and adjacent markets, and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: 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; continuing uncertainties in global political and economic conditions, and other factors and other risks 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 BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
| March 31, 2016 | September 30, 2015 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 62,162 | $ | 80,722 | |||
| Marketable securities | 66 | 70,021 | |||||
| Accounts receivable, net | 104,225 | 86,448 | |||||
| Inventories | 100,738 | 100,619 | |||||
| Deferred tax assets | 3,819 | 17,609 | |||||
| Assets held for sale | 2,895 | 2,900 | |||||
| Prepaid expenses and other current assets | 21,801 | 15,158 | |||||
| Total current assets | 295,706 | 373,477 | |||||
| Property, plant and equipment, net | 54,957 | 41,855 | |||||
| Long-term marketable securities | 6,059 | 63,287 | |||||
| Long-term deferred tax assets | 756 | 70,476 | |||||
| Goodwill | 202,347 | 121,408 | |||||
| Intangible assets, net | 89,495 | 55,446 | |||||
| Equity method investments | 25,093 | 24,308 | |||||
| Other assets | 9,982 | 9,397 | |||||
| Total assets | $ | 684,395 | $ | 759,654 | |||
| Liabilities and Stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 39,303 | $ | 44,890 | |||
| Deferred revenue | 34,419 | 17,886 | |||||
| Accrued warranty and retrofit costs | 5,735 | 6,089 | |||||
| Accrued compensation and benefits | 17,311 | 20,401 | |||||
| Accrued restructuring costs | 7,389 | 2,073 | |||||
| Accrued income taxes payable | 6,356 | 6,111 | |||||
| Deferred tax liabilities | 335 | 1,251 | |||||
| Accrued expenses and other current liabilities | 17,508 | 15,550 | |||||
| Total current liabilities | 128,356 | 114,251 | |||||
| Long-term tax reserves | 2,989 | 3,644 | |||||
| Long-term deferred tax liabilities | 8,052 | 3,196 | |||||
| Long-term pension liabilities | 3,181 | 3,118 | |||||
| Other long-term liabilities | 3,863 | 3,400 | |||||
| Total liabilities | 146,441 | 127,609 | |||||
| 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, 82,078,175 shares issued and 68,616,306 shares outstanding at March 31, 2016; 81,093,052 shares issued and 67,631,183 shares outstanding at September 30, 2015 | 821 | 811 | |||||
| Additional paid-in capital | 1,849,655 | 1,846,357 | |||||
| Accumulated other comprehensive income | 10,823 | 5,898 | |||||
| Treasury stock at cost- 13,461,869 shares | (200,956 | ) | (200,956 | ) | |||
| Accumulated deficit | (1,122,389 | ) | (1,020,065 | ) | |||
| Total stockholders' equity | 537,954 | 632,045 | |||||
| Total liabilities and stockholders' equity | $ | 684,395 | $ | 759,654 | |||
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Revenue | |||||||||||||||
| Product | $ | 101,462 | $ | 116,395 | $ | 190,642 | $ | 216,125 | |||||||
| Services | 33,819 | 22,918 | 64,594 | 45,924 | |||||||||||
| Total revenue | 135,281 | 139,313 | 255,236 | 262,049 | |||||||||||
| Cost of revenue | |||||||||||||||
| Product | 65,346 | 79,048 | 123,496 | 149,268 | |||||||||||
| Services | 23,135 | 14,240 | 44,386 | 27,668 | |||||||||||
| Total cost of revenue | 88,481 | 93,288 | 167,882 | 176,936 | |||||||||||
| Gross profit | 46,800 | 46,025 | 87,354 | 85,113 | |||||||||||
| Operating expenses | |||||||||||||||
| Research and development | 13,111 | 12,678 | 26,389 | 26,167 | |||||||||||
| Selling, general and administrative | 32,692 | 29,609 | 66,813 | 59,020 | |||||||||||
| Restructuring and other charges | 7,336 | 685 | 8,811 | 3,353 | |||||||||||
| Total operating expenses | 53,139 | 42,972 | 102,013 | 88,540 | |||||||||||
| Operating (loss) income | (6,339 | ) | 3,053 | (14,659 | ) | (3,427 | ) | ||||||||
| Interest income | 50 | 228 | 255 | 479 | |||||||||||
| Interest expense | (16 | ) | (98 | ) | (19 | ) | (200 | ) | |||||||
| Other (loss) income, net | (124 | ) | 1,161 | (183 | ) | 2,180 | |||||||||
| (Loss) income before income taxes and equity in earnings (losses) of equity method investments | (6,429 | ) | 4,344 | (14,606 | ) | (968 | ) | ||||||||
| Income tax provision (benefit) | 78,220 | 1,560 | 74,850 | (1,550 | ) | ||||||||||
| (Loss) income before equity in earnings (losses) of equity method investments | (84,649 | ) | 2,784 | (89,456 | ) | 582 | |||||||||
| Equity in earnings (losses) of equity method investments | 710 | (73 | ) | 869 | (605 | ) | |||||||||
| Net (loss) income | (83,939 | ) | 2,711 | (88,587 | ) | (23 | ) | ||||||||
| Basic net (loss) income per share | $ | (1.22 | ) | $ | 0.04 | $ | (1.30 | ) | $ | — | |||||
| Diluted net (loss) income per share | $ | (1.22 | ) | $ | 0.04 | $ | (1.30 | ) | $ | — | |||||
| Dividend declared per share | $ | 0.10 | $ | 0.10 | $ | 0.20 | $ | 0.20 | |||||||
| Weighted average shares outstanding used in computing net (loss) income per share: | |||||||||||||||
| Basic | 68,556 | 67,387 | 68,342 | 67,255 | |||||||||||
| Diluted | 68,556 | 68,414 | 68,342 | 67,255 | |||||||||||
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
| Six Months Ended March 31, | |||||||
| 2016 | 2015 | ||||||
| Cash flows from operating activities | |||||||
| Net loss | $ | (88,587 | ) | $ | (23 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 13,849 | 12,733 | |||||
| Stock-based compensation | 6,568 | 7,108 | |||||
| Amortization of premium on marketable securities | 315 | 634 | |||||
| Undistributed (earnings) losses of equity method investments | (869 | ) | 605 | ||||
| Deferred income tax provision (benefit) | 73,454 | (2,728 | ) | ||||
| Gain on disposal of long-lived assets | — | (4 | ) | ||||
| Changes in operating assets and liabilities, net of acquisitions and disposals: | |||||||
| Accounts receivable | (664 | ) | (13,269 | ) | |||
| Inventories | (374 | ) | 2,474 | ||||
| Prepaid expenses and other current assets | (2,046 | ) | (5,365 | ) | |||
| Accounts payable | (7,073 | ) | 8,345 | ||||
| Deferred revenue | 15,538 | (3,868 | ) | ||||
| Accrued warranty and retrofit costs | (333 | ) | (274 | ) | |||
| Accrued compensation and benefits | (7,297 | ) | (6,200 | ) | |||
| Accrued restructuring costs | 5,323 | (6 | ) | ||||
| Accrued expenses and other current liabilities | (7,433 | ) | 4,791 | ||||
| Net cash provided by operating activities | 371 | 4,953 | |||||
| Cash flows from investing activities | |||||||
| Purchases of property, plant and equipment | (6,090 | ) | (3,647 | ) | |||
| Purchases of marketable securities | (12,900 | ) | (30,739 | ) | |||
| Sales and maturities of marketable securities | 139,388 | 47,625 | |||||
| Disbursement for a loan receivable | (741 | ) | — | ||||
| Acquisitions, net of cash acquired | (125,498 | ) | (17,257 | ) | |||
| Proceeds from sales of property, plant and equipment | — | 6 | |||||
| Purchases of other investments | (250 | ) | (5,000 | ) | |||
| Net cash used in investing activities | (6,091 | ) | (9,012 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from issuance of common stock | 948 | 867 | |||||
| Principal repayments of capital lease obligations | — | (244 | ) | ||||
| Common stock dividends paid | (13,738 | ) | (13,480 | ) | |||
| Net cash used in financing activities | (12,790 | ) | (12,857 | ) | |||
| Effects of exchange rate changes on cash and cash equivalents | (50 | ) | (4,022 | ) | |||
| Net decrease in cash and cash equivalents | (18,560 | ) | (20,938 | ) | |||
| Cash and cash equivalents, beginning of period | 80,722 | 94,114 | |||||
| Cash and cash equivalents, end of period | $ | 62,162 | $ | 73,176 | |||
Notes on Non-GAAP Financial Measures:
The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and as a means to evaluate period-to-period comparisons. 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 believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
The press release includes financial measures which exclude the effects of special charges such as restructuring charges and acquisition related charges. Management believes these measures are useful to investors because it eliminates accounting charges that do not reflect Brooks' day-to-day operations. Tables reconciling GAAP to the non-GAAP measures are presented below.
| Quarter Ended | |||||||||||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||
| Dollars in thousands, except per share data | $ | Per Diluted Share | $ | Per Diluted Share | $ | Per Diluted Share | |||||||||||||||||
| GAAP net (loss) income | $ | (83,939 | ) | $ | (1.22 | ) | $ | (4,648 | ) | $ | (0.07 | ) | $ | 2,711 | $ | 0.04 | |||||||
| Adjustments, net of tax: | |||||||||||||||||||||||
| Purchase accounting impact on inventory and contracts acquired | 205 | 0.00 | 82 | 0.00 | — | 0.00 | |||||||||||||||||
| Amortization of intangible assets | 3,122 | 0.05 | 2,386 | 0.03 | 2,219 | 0.03 | |||||||||||||||||
| Restructuring charges | 6,016 | 0.09 | 969 | 0.01 | 457 | 0.01 | |||||||||||||||||
| Merger costs | 176 | 0.00 | 2,457 | 0.04 | 42 | 0.00 | |||||||||||||||||
| Change in valuation allowance against deferred tax assets | 79,340 | 1.15 | — | 0.00 | — | 0.00 | |||||||||||||||||
| Non-GAAP adjusted net income | 4,920 | 0.07 | 1,246 | 0.02 | 5,429 | 0.08 | |||||||||||||||||
| Stock-based compensation, pre-tax | 1,855 | 4,713 | 3,625 | ||||||||||||||||||||
| Tax rate | 16 | % | 30 | % | 30 | % | |||||||||||||||||
| Stock-based compensation, net of tax (a) | 1,556 | 0.02 | 3,299 | 0.05 | 2,531 | 0.04 | |||||||||||||||||
| Non-GAAP adjusted net income - excluding stock-based compensation | $ | 6,476 | $ | 0.09 | $ | 4,545 | $ | 0.07 | $ | 7,960 | $ | 0.12 | |||||||||||
| Shares used in computing non-GAAP diluted net (loss) income per share | 69,101 | 69,243 | 68,414 | ||||||||||||||||||||
| (a) The tax rate represents the effective tax rate on non-GAAP taxable ordinary income. We expanded our disclosure to correct and clarify the after tax impact of stock-based compensation on Non-GAAP adjusted net income and diluted EPS. For additional information on the impact of this correction on prior periods, please refer to the conference call presentation included in Investor Relations section of the Brooks website at www.brooks.com. | |||||||||||||||||||||||
| Six Months Ended | |||||||||||||||
| March 31, 2016 | March 31, 2015 | ||||||||||||||
| Dollars in thousands, except per share data | $ | Per Diluted Share | $ | Per Diluted Share | |||||||||||
| GAAP net loss | $ | (88,587 | ) | $ | (1.30 | ) | $ | (23 | ) | $ | 0.00 | ||||
| Adjustments, net of tax: | |||||||||||||||
| Purchase accounting impact on inventory and contracts acquired | 287 | 0.00 | 1,164 | 0.02 | |||||||||||
| Amortization of intangible assets | 5,508 | 0.08 | 4,440 | 0.07 | |||||||||||
| Impairment of equity method investments | — | 0.00 | 681 | 0.01 | |||||||||||
| Restructuring charges | 6,985 | 0.10 | 2,243 | 0.03 | |||||||||||
| Merger costs | 2,633 | 0.04 | 367 | 0.01 | |||||||||||
| Change in valuation allowance against deferred tax assets | 79,340 | 1.14 | — | 0.00 | |||||||||||
| Non-GAAP adjusted net income | 6,166 | 0.09 | 8,872 | 0.13 | |||||||||||
| Stock-based compensation, pre-tax | 6,568 | 7,108 | |||||||||||||
| Tax rate | 26 | % | 30 | % | |||||||||||
| Stock-based compensation, net of tax (a) | 4,855 | $ | 0.07 | 4,989 | $ | 0.07 | |||||||||
| Non-GAAP adjusted net income - excluding stock-based compensation | $ | 11,021 | $ | 0.16 | $ | 13,861 | $ | 0.20 | |||||||
| Shares used in computing non-GAAP diluted net loss per share | 69,313 | 68,419 | |||||||||||||
| (a) The tax rate represents the effective tax rate on non-GAAP taxable ordinary income. We expanded our disclosure to correct and clarify the after tax impact of stock-based compensation on Non-GAAP adjusted net income and diluted EPS. For additional information on the impact of this correction on prior periods, please refer to the conference call presentation included in Investor Relations section of the Brooks website at www.brooks.com. | |||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||||||||||
| Dollars in thousands | $ | % | $ | % | $ | % | ||||||||||||||
| GAAP gross profit/gross margin percentage | $ | 46,800 | 34.6 | % | $ | 40,554 | 33.8 | % | $ | 46,025 | 33.0 | % | ||||||||
| Adjustments: | ||||||||||||||||||||
| Amortization of intangible assets | 718 | 0.5 | % | 1,296 | 1.1 | % | 1,299 | 0.9 | % | |||||||||||
| Purchase accounting impact on inventory and contracts acquired | 250 | 0.2 | % | 125 | 0.1 | % | — | — | % | |||||||||||
| Non-GAAP adjusted gross profit/gross margin percentage | $ | 47,768 | 35.3 | % | $ | 41,975 | 35.0 | % | $ | 47,324 | 34.0 | % | ||||||||
| Six Months Ended | |||||||||||||
| March 31, 2016 | March 31, 2015 | ||||||||||||
| Dollars in thousands | $ | % | $ | % | |||||||||
| GAAP gross profit/gross margin percentage | $ | 87,354 | 34.2 | % | $ | 85,113 | 32.5 | % | |||||
| Adjustments: | |||||||||||||
| Amortization of intangible assets | 2,014 | 0.8 | % | 2,604 | 1.0 | % | |||||||
| Purchase accounting impact on inventory and contracts acquired | 375 | 0.1 | % | 1,511 | 0.6 | % | |||||||
| Non-GAAP adjusted gross profit/gross margin percentage | $ | 89,743 | 35.2 | % | $ | 89,228 | 34.1 | % | |||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||
| Dollars in thousands | 2016 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||
| GAAP net (loss) income | $ | (83,939 | ) | $ | (4,648 | ) | $ | 2,711 | $ | (88,587 | ) | $ | (23 | ) | |||||
| Adjustments: | |||||||||||||||||||
| Less: Interest income | (50 | ) | (205 | ) | (228 | ) | (255 | ) | (479 | ) | |||||||||
| Add: Interest expense | 16 | 3 | 98 | 19 | 200 | ||||||||||||||
| Add: Income tax provision (benefit) | 78,220 | (3,370 | ) | 1,560 | 74,850 | (1,550 | ) | ||||||||||||
| Add: Depreciation | 3,596 | 2,938 | 3,117 | 6,534 | 6,302 | ||||||||||||||
| Add: Amortization of completed technology | 718 | 1,296 | 1,299 | 2,014 | 2,604 | ||||||||||||||
| Add: Amortization of customer relationships and acquired intangible assets | 3,091 | 2,211 | 1,914 | 5,302 | 3,826 | ||||||||||||||
| Earnings (losses) before interest, taxes, depreciation and amortization | $ | 1,652 | $ | (1,775 | ) | $ | 10,471 | $ | (123 | ) | $ | 10,880 | |||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||
| Dollars in thousands | 2016 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||
| Earnings (losses) before interest, taxes, depreciation and amortization | $ | 1,652 | $ | (1,775 | ) | $ | 10,471 | $ | (123 | ) | $ | 10,880 | |||||||
| Adjustments: | |||||||||||||||||||
| Add: Stock-based compensation | 1,855 | 4,713 | 3,625 | 6,568 | 7,108 | ||||||||||||||
| Add: Restructuring charges | 7,336 | 1,475 | 685 | 8,811 | 3,353 | ||||||||||||||
| Add: Purchase accounting impact on inventory and contracts acquired | 250 | 125 | — | 375 | 1,511 | ||||||||||||||
| Add: Merger costs | 215 | 2,996 | 64 | 3,211 | 389 | ||||||||||||||
| Add: Impairment of equity method investments | — | — | — | — | 681 | ||||||||||||||
| Adjusted earnings before interest, taxes, depreciation and amortization | $ | 11,308 | $ | 7,534 | $ | 14,845 | $ | 18,842 | $ | 23,922 | |||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||
| Dollars in thousands | 2016 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||
| GAAP selling, general and administrative expenses | $ | 32,692 | $ | 34,121 | $ | 29,609 | $ | 66,813 | $ | 59,020 | |||||||||
| Adjustments: | |||||||||||||||||||
| Less: Amortization of customer relationships and acquired intangible assets | (3,091 | ) | (2,211 | ) | (1,914 | ) | (5,302 | ) | (3,826 | ) | |||||||||
| Less: Merger costs | (215 | ) | (2,996 | ) | (64 | ) | (3,211 | ) | (389 | ) | |||||||||
| Non-GAAP adjusted selling, general and administrative expenses | $ | 29,386 | $ | 28,914 | $ | 27,631 | $ | 58,300 | $ | 54,805 | |||||||||
| Brooks Product Solutions Segment | Brooks Global Services Segment | Brooks Life Science Segment | |||||||||||||||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||
| Dollars in thousands | March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||||||||||||||||||
| GAAP gross profit | $ | 30,570 | $ | 27,101 | $ | 33,995 | $ | 6,373 | $ | 7,558 | $ | 7,043 | $ | 9,857 | $ | 5,895 | $ | 4,987 | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 390 | 802 | 744 | — | 102 | 157 | 328 | 393 | 398 | ||||||||||||||||||||||||||
| Purchase accounting impact on inventory and contracts acquired | 250 | 125 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Non-GAAP adjusted gross profit | $ | 31,210 | $ | 28,028 | $ | 34,739 | $ | 6,373 | $ | 7,660 | $ | 7,200 | $ | 10,185 | $ | 6,288 | $ | 5,385 | |||||||||||||||||
| Brooks Product Solutions Segment | Brooks Global Services Segment | Brooks Life Science Segment | |||||||||||||||||||||
| Six Month Ended | Six Month Ended | Six Month Ended | |||||||||||||||||||||
| Dollars in thousands | March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||||||||||
| GAAP gross profit | 57,671 | 60,917 | $ | 13,931 | $ | 15,506 | $ | 15,752 | $ | 8,690 | |||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Amortization of intangible assets | 1,192 | 1,492 | 102 | 314 | 721 | 798 | |||||||||||||||||
| Purchase accounting impact on inventory and contracts acquired | 375 | 551 | — | — | — | 960 | |||||||||||||||||
| Non-GAAP adjusted gross profit | $ | 59,238 | $ | 62,960 | $ | 14,033 | $ | 15,820 | $ | 16,473 | $ | 10,448 | |||||||||||
| Brooks Product Solutions Segment | Brooks Global Services Segment | Brooks Life Science Segment | ||||||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||||||||||||||
| Dollars in thousands | March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||||||
| GAAP gross margin | 35.2 | % | 35.4 | % | 34.4 | % | 28.9 | % | 33.6 | % | 30.8 | % | 37.2 | % | 28.2 | % | 28.5 | % | ||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Amortization of intangible assets | 0.4 | % | 1.0 | % | 0.8 | % | — | % | 0.5 | % | 0.7 | % | 1.2 | % | 1.9 | % | 2.3 | % | ||||||||
| Purchase accounting impact on inventory and contracts acquired | 0.3 | % | 0.2 | % | — | % | — | % | — | % | — | % | — | % | — | % | ||||||||||
| Non-GAAP adjusted gross margin | 36.0 | % | 36.6 | % | 35.1 | % | 28.9 | % | 34.0 | % | 31.5 | % | 38.5 | % | 30.1 | % | 30.7 | % | ||||||||
| Brooks Product Solutions Segment | Brooks Global Services Segment | Brooks Life Science Segment | |||||||||||||||
| Six Month Ended | Six Month Ended | Six Month Ended | |||||||||||||||
| Dollars in thousands | March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||||
| GAAP gross margin | 35.3 | % | 33.5 | % | 31.3 | % | 33.7 | % | 33.3 | % | 25.4 | % | |||||
| Adjustments: | |||||||||||||||||
| Amortization of intangible assets | 0.7 | % | 0.8 | % | 0.2 | % | 0.7 | % | 1.5 | % | 2.3 | % | |||||
| Purchase accounting impact on inventory and contracts acquired | 0.2 | % | 0.3 | % | — | % | — | % | — | % | 2.8 | % | |||||
| Non-GAAP adjusted gross margin | 36.3 | % | 34.6 | % | 31.5 | % | 34.4 | % | 34.8 | % | 30.5 | % | |||||