Bruker Corporation (NASDAQ: BRKR):
2008 Highlights
�
Q4-08
�
FY08
-- Revenue:
�
$315.2 million
�
$1.107 billion
-- Operating Cash Flow:
$86.5 million
$105.5 million
-- GAAP EPS per diluted
share:
$0.16
$0.39
-- Non-GAAP EPS per diluted
share:
$0.18
$0.47
Bruker Corporation (NASDAQ: BRKR) today reported financial
results for the fourth quarter and year ended December 31,
2008.
Reminder: On February 26, 2008, Bruker BioSciences Corporation
closed its acquisition of the Bruker BioSpin Group, and renamed
itself Bruker Corporation. Under US GAAP, this transaction is
accounted for as an acquisition of businesses under common control,
and as a result all one-time transaction costs are expensed in the
period in which they are incurred, rather than being added to
goodwill. In addition, expenses incurred subsequent to the
consummation of the acquisition, such as interest expenses incurred
on acquisition related debt, are not reflected in the financial
results of periods prior to the date of the acquisition, as they
typically would be in pro-forma financials in acquisitions of
unrelated parties. After the closing of the transaction all
historical financial statements are required to be restated by
combining the historical consolidated financial statements of
Bruker BioSciences Corporation with those of the Bruker BioSpin
Group. Accordingly, the financial results for the three and twelve
months ended December 31, 2008 and 2007, included within this
release, represent the combined historical consolidated financial
statements of Bruker BioSciences Corporation with those of the
Bruker BioSpin Group.
Financial Results
In the fourth quarter of 2008, revenue was $315.2 million,
compared to revenue of $344.8 in the fourth quarter of 2007.
Excluding the effects of foreign currency translation, fourth
quarter revenue decreased by 3% year-over-year. Sequentially,
revenues in the fourth quarter of 2008 increased by 30%, compared
to revenue of $242.1 million in the third quarter of 2008. For the
year 2008, revenue increased by 7% to $1,107.1 million, compared to
revenue of $1,032.4 million for the year 2007. Excluding the
effects of foreign currency translation, full year 2008 revenue
increased by 3% year-over-year.
GAAP operating income in the fourth quarter of 2008 was $48.9
million, compared to $66.4 million in the fourth quarter of 2007.
For the year 2008, GAAP operating income was $108.2 million,
compared to $137.7 million for the year 2007. Including the
adjustments in the attached reconciliation, non-GAAP operating
income in the fourth quarter of 2008 was $52.6 million, compared to
$74.0 million in the fourth quarter of 2007. For the year 2008,
non-GAAP operating income was $121.2 million, compared to $147.3
million in 2007.
GAAP net income for the fourth quarter of 2008 was $26.2
million, or $0.16 per diluted share, compared to $40.3 million, or
$0.24 per diluted share, in the fourth quarter of 2007. For the
year 2008, GAAP net income was $64.9 million, or $0.39 per diluted
share, compared to $98.9 million, or $0.60 per diluted share, in
the year 2007. Including the adjustments in the attached
reconciliation, non-GAAP net income for the fourth quarter of 2008
was $30.4 million, or $0.18 per diluted share, compared to $47.7
million, or $0.29 per diluted share, in the fourth quarter of 2007.
For the year 2008, non-GAAP net income was $77.9 million, or $0.47
per diluted share, compared to $107.9 million, or $0.66 per diluted
share, in 2007.
Cash flow from operations for the full year 2008 was $105.5
million, compared to $120.9 million in 2007. Free cash flow,
defined as operating cash flow less capital expenditures, was $58.1
million during 2008, compared to $93.9 million during 2007. Capital
expenditures for the year 2008 were $47.4 million, which was
approximately $20 million higher than in 2007 due to the expansion
of two manufacturing locations in 2008. During the year 2008, the
Company repaid $187.0 million of the debt incurred to finance the
Bruker BioSpin Group acquisition in February 2008. As of December
31, 2008, Bruker had cash and cash equivalents of $167.7 million,
and net debt of $56.1 million.
Comment and Outlook
Frank Laukien, President and CEO, commented: �Our fourth quarter
was again our strongest quarter of the year. In the fourth quarter
of 2008, we had strong new order bookings and we ended the year
2008 with a healthy backlog. However, in 2008 our margins were well
below our goals, and we have put aggressive cost-cutting
initiatives in place, which include voluntary top-management salary
decreases for 2009, selected staff reductions, hiring and salary
freezes for 2009, and cut-backs in discretionary spending. In
addition, we continue to drive numerous gross margin improvement
projects, from which we expect to benefit in 2009 and beyond.�
Dr. Laukien continued with an outlook for the year 2009: �This
year offers significant challenges due to the deepening global
recession and uncertain outlook. Bruker is relatively well
positioned to deal with these challenges, as we have an
exceptionally strong technology, IP and product portfolio and broad
international diversification. Bruker also derives more than 60% of
its revenue from universities, medical schools, as well as other
non-profit and government customers, who tend to be less sensitive
to economic conditions. Some of our demand drivers are even
counter-cyclical, and a few of our customers have already begun to
benefit from counter-cyclical supplementary budgets and various
national stimulus packages.�
Bruker�s CFO Bill Knight added: �Financially, we expect to
continue to have a strong balance sheet, positive operating and
free cash flow, ample borrowing capacity, and clear opportunities
to improve our margins, balance sheet metrics and cash flow
generation. On this solid financial foundation, we will invest
further in our future, even during 2009, with additional market
development in attractive applied markets, including food and
consumer safety, pharma PAT, forensics and toxicology, as well as
in clinical research and IVD, homeland security and explosives
detection, and advanced superconducting magnets and devices.
Leveraging our strong technology base into these near-term
additional growth and margin opportunities makes strategic sense
for Bruker, and we intend to emerge from this recession as an even
stronger company.�
Mr. Knight continued: �Given the apparent further deterioration
of the global economy in January and February 2009, and the
uncertainty of the timing and effect of various international
stimulus efforts, forecasting for the full year 2009 is extremely
difficult. We have nevertheless established internal financial
goals for ourselves in 2009, and intend to drive Bruker
towards:
- a currency-adjusted low single
digit percentage decline in revenue or flat revenue,
- an improvement in non-GAAP
operating margin and EPS, and
- a positive net cash position
before the end of 2009.�
USE OF NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), we use the
measures of non-GAAP operating income, non-GAAP net income and
non-GAAP EPS, which exclude certain items such as one-time
restructuring charges, acquisition-related charges, non-cash
stock-based compensation, and other special charges. We exclude
these items because they are outside of our normal operations and,
in certain cases, are difficult to forecast accurately for future
periods. We believe that such non-GAAP measures helps investors to
gain a better understanding of our core operating results and
future prospects, consistent with how management measures and
forecasts the Company�s performance, especially when comparing such
results to previous periods or forecasts. However, the non-GAAP
financial measures included in this press release are not meant to
be a better presentation or a substitute for results of operations
prepared in accordance with GAAP. Reconciliations of such non-GAAP
financial measures to the most directly comparable GAAP financial
measures are set forth in the accompanying tables.
Specifically:
- Reconciliation of Operating
Income
- Reconciliations of Net Income
and Earnings Per Share
EARNINGS CONFERENCE CALL
Bruker Corporation will host an operator-assisted earnings
conference call at 8:30 a.m. Eastern Time on Tuesday, March 3,
2009. To listen to the webcast, investors can go to
http://ir.bruker.com and click on the live web broadcast symbol.
The webcast will be available through the Company web site for 30
days. Investors can also listen and participate on the telephone in
the US and Canada by calling 888-339-2688, or +1-617-847-3007
outside the US and Canada. Investors should refer to the Bruker
Earnings Call. A telephone replay of the conference call will be
available one hour after the conference call by dialing
888-286-8010 in the US and Canada, or +1-617-801-6888 outside the
US and Canada, and then entering replay pass code 34501830. For
more information, please visit http://ir.bruker.com.
CAUTIONARY STATEMENT
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking statements
as that term is defined in the Private Securities Litigation Reform
Act of 1995. Any forward-looking statements contained herein are
based on current expectations, but are subject to a number of risks
and uncertainties. The factors that could cause actual future
results to differ materially from current expectations include, but
are not limited to, risks and uncertainties relating to adverse
changes in conditions in the global economy and volatility in the
capital markets, the integration of businesses we have acquired or
may acquire in the future, changing technologies, product
development and market acceptance of our products, the cost and
pricing of our products, manufacturing, competition, dependence on
collaborative partners and key suppliers, capital spending and
government funding policies, changes in governmental regulations,
intellectual property rights, litigation, and exposure to foreign
currency fluctuations. These and other factors are identified and
described in more detail in our filings with the SEC, including,
without limitation, our annual report on Form 10-K for the year
ended December 31, 2007, our most recent quarterly reports on Form
10-Q and our current reports on Form 8-K. We disclaim any intent or
obligation to update these forward-looking statements other than as
required by law.
Bruker Corporation
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions, except per share
data)
� � � � � �
Three Months Ended December 31, Tweleve
Months Ended December 31, 2008 2007 2008
2007 � Product revenue $ 279.1 $ 305.6 $ 974.9 $ 913.2
Service revenue 34.6 37.8 126.9 115.4 Other revenue � 1.5 � � � 1.4
� � � 5.3 � � � 3.8 � Total revenue 315.2 344.8 1,107.1 1,032.4 �
Cost of product revenue 146.8 150.3 527.5 483.2 Cost of service
revenue � 15.1 � � � 24.4 � � � 74.6 � � � 73.6 � Total cost of
revenue � 161.9 � � � 174.7 � � � 602.1 � � � 556.8 � � Gross
profit 153.3 170.1 505.0 475.6 �
Operating Expenses: Sales
and marketing 50.1 49.3 183.8 160.1 General and administrative 19.0
17.2 70.7 59.6 Research and development 33.0 30.3 133.8 110.8
Restructuring charges 2.3 - 2.3 - Acquisition related charges � - �
� � 6.9 � � � 6.2 � � � 7.4 � Total operating expenses � 104.4 � �
� 103.7 � � � 396.8 � � � 337.9 � � Operating income 48.9 66.4
108.2 137.7 � Foreign exchange gains (losses), net (5.3 ) 2.0 (11.2
) (3.9 ) Interest and other income (expense), net � (1.9 ) � � (0.7
) � � (3.8 ) � � 9.7 � � Income before income tax provision and
minority interest in consolidated subsidiaries 41.7 67.7 93.2 143.5
Income tax provision � 15.5 � � � 27.4 � � � 28.0 � � � 44.3 � �
Income before minority interest in consolidated subsidiaries 26.2
40.3 65.2 99.2 Minority interest in consolidated subsidiaries � - �
� � - � � � 0.3 � � � 0.3 � Net income $ 26.2 � � $ 40.3 � � $ 64.9
� � $ 98.9 � � Net income per share: Basic $ 0.16 � � $ 0.25 � � $
0.40 � � $ 0.61 � Diluted $ 0.16 � � $ 0.24 � � $ 0.39 � � $ 0.60 �
� Weighted average shares outstanding: Basic � 163.1 � � � 162.0 �
� � 162.7 � � � 161.2 � Diluted � 164.6 � � � 164.7 � � � 165.6 � �
� 164.3 �
Bruker Corporation
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions)
� � �
December 31, December 31, 2008
2007 �
ASSETS
�
Current assets:
�
Cash, short-term investments, & restricted cash $ 167.7 $ 344.6
Accounts receivable, net 171.9 185.2 Inventories 425.1 446.4 Other
current assets � 56.0 � 57.5 Total current assets 820.7 1,033.7 �
Property and equipment, net 221.3 207.6 Intangible and other assets
� 74.3 � 69.4 � Total assets
$
1,116.3
$
1,310.7
�
LIABILITIES AND SHAREHOLDERS' EQUITY � Current
liabilities: Short-term borrowings $ 41.0 $ 35.6 Accounts payable
43.3 52.3 Customer deposits 199.6 233.5 Other current liabilities �
235.8 � 239.7 Total current liabilities 519.7 561.1 � Long-term
debt 182.8 8.6 Other long-term liabilities 101.1 105.5 Minority
interest in subsidiaries 0.8 0.5 � Total shareholders' equity �
311.9 � 635.0 � Total liabilities and shareholders' equity $
1,116.3 $ 1,310.7
Bruker Corporation
RECONCILIATION OF OPERATING
INCOME
(in millions)
� � � �
Three Months Ended Twelve Months Ended
December 31, December 31, 2008 �
2007
2008 �
2007 � GAAP Operating Income (a) $ 48.9 $ 66.4
$ 108.2 $ 137.7 � Adjustments: � Bruker BioSpin Acquisition Related
Charges (b) - 6.9 6.2 7.4 � Non-Cash Stock-Based Compensation
Charges (c) 1.4 0.7 4.5 2.2 � Restructuring Charges (e) � 2.3 � - �
2.3 � - � Non-GAAP Operating Income $ 52.6 $ 74.0 $ 121.2 $ 147.3
Bruker Corporation
RECONCILIATIONS OF NET INCOME
and EPS
(in millions, except earnings
per share)
� � � �
Three Months Ended Twelve Months Ended
December 31, December 31, 2008 �
2007
2008 �
2007 � GAAP Net Income (a) $ 26.2 $ 40.3 $
64.9 $ 98.9 � Adjustments: � Bruker BioSpin Acquisition Related
Charges, Net of Tax (b) - 6.9 6.2 7.4 � Non-Cash Stock-Based
Compensation Charges, Net of Tax (c) 1.2 0.5 3.8 1.6 �
Restructuring Charges, Net of Tax (d) � 3.0 � - � 3.0 � - �
Non-GAAP Net Income $ 30.4 $ 47.7 $ 77.9 $ 107.9 � � � �
Three
Months Ended �
Twelve Months Ended December 31,
December 31, 2008 �
2007 2008 �
2007 � GAAP Diluted Earnings Per Share $ 0.16 $ 0.24 $ 0.39
$ 0.60 � Adjustments: � Bruker BioSpin Acquisition Related Charges,
Net of Tax (b) - 0.04 0.04 0.05 � Non-Cash Stock-Based Compensation
Charges, Net of Tax (c) - 0.01 0.02 0.01 � Restructuring Charges,
Net of Tax (d) � 0.02 � - � 0.02 � - � Non-GAAP Diluted Earnings
Per Share $ 0.18 $ 0.29 $ 0.47 $ 0.66 � Weighted Average Diluted
Shares Outstanding: � 164.6 � 164.7 � 165.6 � 164.3
(a) �GAAP� (Reported) results were determined in accordance with
United States Generally Accepted Accounting Principles (GAAP).
(b) Results in 2008 and 2007 include charges associated with the
acquisition of the Bruker BioSpin Group. Under US GAAP, this
transaction was accounted for as an acquisition of businesses under
common control, and as a result, all one-time transaction costs,
including investment banking, legal and accounting fees, were
expensed as incurred.
(c) Results in 2008 and 2007 include charges associated with
non-cash stock-based compensation.
(d) Results in 2008 include restructuring charges, primarily
associated with severance obligations due to headcount
reductions.
(e) Result in 2008 included in restructuring charges were one
time additional German and Swiss income taxes of $1.7 million
associated with the liquidation of a tax ineffective legal entity
within the Bruker BioSpin segment.
Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Jul 2023 to Jul 2024