Company reports solid organic revenue growth
and increased profitability
Bruker Corporation (NASDAQ: BRKR) today reported financial
results for its third quarter ended September 30, 2015.
Bruker’s revenues for the third quarter of 2015 were $396.1
million, a decline of 5.6 percent compared to the third quarter of
2014. Excluding a 2.8 percent negative effect from divestitures,
and a 10.9 percent negative effect from changes in foreign exchange
rates, Bruker reported year-over-year organic revenue growth of 8.1
percent in the third quarter of 2015.
Third quarter 2015 GAAP earnings per diluted share (EPS) were
$0.07, compared to GAAP EPS of $0.03 in the third quarter of 2014.
Bruker reported third quarter 2015 non-GAAP EPS of $0.19, an
increase of 36 percent compared to non-GAAP EPS of $0.14 in the
third quarter of 2014. Bruker generated $44.7 million in free cash
flow in the third quarter of 2015, compared to $3.6 million in the
third quarter of 2014. A reconciliation of GAAP to non-GAAP
financial measures is provided in the Company’s financial tables
accompanying this press release.
For the first nine months of 2015, Bruker’s revenues declined
11.9 percent to $1.15 billion, compared to $1.30 billion for the
first nine months of 2014. Excluding a 2.7 percent net negative
effect from acquisitions and divestitures, and an 11.1 percent
negative effect from changes in foreign exchange rates, Bruker
reported year-over-year organic revenue growth of 1.9 percent for
the first nine months of 2015.
Bruker reported GAAP EPS of $0.24 in the first nine months of
2015, compared to $0.18 in the first nine months of 2014. Non-GAAP
EPS for the first nine months of 2015 were $0.51, an 11 percent
increase compared to non-GAAP EPS of $0.46 in the first nine months
of 2014.
“We reported significantly higher organic revenue growth,
profitability and free cash flow in the third quarter of 2015 as a
result of stronger performance by our BioSpin and CALID Groups,”
said Frank Laukien, President & CEO of Bruker. “In addition to
healthy organic revenue growth and margin expansion in many of our
divisions, our third quarter 2015 also benefited from favorable
product mix and some earlier customer acceptances, which were
originally not expected until our fourth quarter. As a result, our
full year 2015 performance will be less dependent on our fourth
quarter results than we previously forecasted.”
Dr. Laukien continued: “Through the first nine months of 2015,
we have generated healthy year-over-year improvements in our gross
margins, while driving operating expense leverage and reducing our
working capital. This combination of fundamental profitability
improvements and outperformance in Q3-15 enables us to increase our
full year 2015 guidance.”
Updates in 2015 Financial Outlook
Bruker now expects to expand its full-year 2015 non-GAAP
operating margin by more than 150 basis points compared to 2014.
Moreover, the Company now expects full-year 2015 non-GAAP EPS in
the range of $0.75 to $0.80.
Quarterly Earnings Call
Bruker will host a conference call and webcast to discuss its
financial results, business outlook, and related corporate and
financial matters at 4:45 p.m. Eastern Standard Time today. To
listen to the webcast, investors can go to http://ir.bruker.com and
click on the “Events & Presentations” hyperlink. A slide
presentation that will be referenced during the webcast will be
posted to the Company’s website shortly before the webcast begins.
Investors can also listen to the earnings webcast via telephone by
dialing 1-877-270-2148 or +1-412-902-6510, and referencing
“Bruker’s Third Quarter 2015 Earnings Conference Call”. A telephone
replay of the conference call will be available by dialing
1-877-344-7529 or +1-412-317-0088 and entering conference
number: 10075030. The replay will be available beginning one hour
after the end of the conference through November 12, 2015.
About Bruker Corporation
For more than 50 years, Bruker has enabled scientists to make
breakthrough discoveries and develop new applications that improve
the quality of human life. Bruker’s high-performance scientific
research instruments and high-value analytical solutions enable
scientists to explore life and materials at molecular, cellular and
microscopic levels.
In close cooperation with our customers, Bruker is enabling
innovation, productivity and customer success in life science
molecular research, in applied and pharma applications, and in
microscopy, nano-analysis and industrial applications, as well as
in cell biology, preclinical imaging, clinical research,
microbiology and molecular diagnostics. For more information,
please visit: http://www.bruker.com.
Use of Non-GAAP Financial Measures
The non-GAAP financial measures used by Bruker Corporation in
this press release are non-GAAP gross profit; non-GAAP gross profit
margin; non-GAAP operating income; non-GAAP operating margin;
non-GAAP interest and other income (expense) net; non-GAAP profit
before tax; non-GAAP tax rate; non-GAAP net income; non-GAAP
earnings per share; and free cash flow. These non-GAAP measures
exclude costs related to restructuring costs, acquisition and
related integration expenses, amortization of acquired intangible
assets and other costs that are non-recurring in nature. There are
limitations in using non-GAAP financial measures as they are not
prepared in accordance with U.S. generally accepted accounting
principles and may be different from non-GAAP financial measures
used by other companies.
We believe that the non-GAAP financial measures provide useful
and supplementary information to investors regarding our quarterly
and annual performance. It is our belief that these non-GAAP
financial measures are particularly important as Bruker implements
restructuring initiatives to expand operating margins. The
financial impact of these activities, particularly restructuring
activities, can be large and may adversely affect the comparability
of our results from period-to-period. We define free cash flow as
net cash provided by operating activities less additions to
property, plant, and equipment. We believe free cash flow is a
useful measure to evaluate our business as it indicates the amount
of cash generated after additions to property, plant, and equipment
that is available for, among other things, strategic acquisitions,
investments in our business, and repayment of debt.
We regularly use non-GAAP financial measures internally to
understand, manage, and evaluate our business results and make
operating decisions. We also measure our employees and compensate
them, in part, based on such non-GAAP measures. For the same
reasons, we also use this information for our forecasting
activities.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. The non-GAAP financial measures
are meant to supplement, and to be viewed in conjunction with, GAAP
financial measures. They are limited in value because they exclude
charges that have a material effect on our reported results and,
therefore, should not be relied upon as the sole financial measures
to evaluate our financial results. Investors are encouraged to
review the reconciliation of the financial measures to their most
directly comparable GAAP financial measures as provided in the
tables accompanying this press release.
Forward Looking Statements
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 risks and
uncertainties that could cause actual results to differ materially
from those projected, including, but 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, our ability to successfully implement our restructuring
initiatives, 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, realization of
anticipated benefits from economic stimulus programs, intellectual
property rights, litigation, exposure to foreign currency
fluctuations and other risk factors discussed from time to time in
our filings with the Securities and Exchange Commission. 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, 2014 and
subsequently filed Quarterly Reports on Form 10-Q. We expressly
disclaim any intent or obligation to update these forward-looking
statements other than as required by law.
-tables follow-
Bruker
CorporationCONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in millions) September
30, December 31, 2015 2014
ASSETS
Current assets: Cash and cash equivalents $ 331.0 $ 319.5
Short-term investments 201.3 178.0 Accounts receivable, net 242.3
293.2 Inventories 478.3 477.4 Other current assets 133.5
98.2 Total current assets 1,386.4 1,366.3 Property,
plant and equipment, net 232.4 249.9 Intangibles, net and other
long-term assets 224.1 248.6 Total assets $
1,842.9 $ 1,864.8
LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Current portion of long-term
debt $ 130.3 $ 0.8 Accounts payable 87.4 76.0 Customer advances
170.4 189.5 Other current liabilities 288.0 316.4
Total current liabilities 676.1 582.7 Long-term debt 241.1
354.2 Other long-term liabilities 157.7 156.2 Total
shareholders' equity 768.0 771.7 Total
liabilities and shareholders' equity $ 1,842.9 $ 1,864.8
Bruker CorporationCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended (in millions,
except per share amounts) September 30, September
30, 2015 2014
2015 2014 Revenues $
396.1 $ 419.8 $ 1,145.6 $ 1,300.9 Cost of revenues 228.6
252.5 648.5 753.4
Gross profit 167.5 167.3 497.1 547.5 Operating expenses:
Selling, general and administrative 96.1 108.0 289.2 332.5 Research
and development 34.3 42.1 109.0 132.6 Other charges, net 8.9
12.3 23.9 21.5 Total
operating expenses 139.3 162.4 422.1
486.6 Operating income 28.2 4.9 75.0
60.9 Interest and other income (expense), net (4.6 )
4.1 (14.3 ) (3.1 ) Income before income
taxes and noncontrolling interest in consolidated subsidiaries 23.6
9.0 60.7 57.8 Income tax provision 10.7 2.7
17.8 24.7 Consolidated net
income 12.9 6.3 42.9 33.1 Net income attributable to noncontrolling
interests in consolidated subsidiaries 1.1 0.8
2.7 2.5 Net income attributable to
Bruker Corporation $ 11.8 $ 5.5 $ 40.2 $ 30.6
Net income per common share attributable to Bruker
Corporation shareholders: Basic $ 0.07 $ 0.03 $ 0.24
$ 0.18 Diluted $ 0.07 $ 0.03 $ 0.24 $ 0.18
Weighted average common shares outstanding: Basic
167.8 168.0 168.2 167.5
Diluted 168.7 169.6 169.1
169.5
Bruker CorporationCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (unaudited) (in millions) Three
Months Ended September 30, Nine Months Ended
September 30, 2015 2014
2015 2014 Cash
flows from operating activities: Consolidated net income $ 12.9 $
6.3 $ 42.9 $ 33.1 Adjustments to reconcile consolidated net income
to cash flows from operating activities: Depreciation and
amortization 13.3 17.6 40.0 47.6 Write-down of demonstration
inventories to net realizable value 5.1 7.4 15.0 22.6 Stock-based
compensation expense 2.2 2.1 5.8 7.1 Deferred income taxes (0.5 )
(0.3 ) (1.1 ) - Loss (gain) on disposal of product line - (8.7 )
0.2 (9.0 ) Other non-cash expenses, net 8.6 9.6 9.5 11.1 Changes in
operating assets and liabilities, net of acquisitions and
divestitures: Accounts receivable (4.9 ) (7.4 ) 37.7 21.5
Inventories (1.8 ) (8.5 ) (40.7 ) (46.9 ) Accounts payable and
accrued expenses 12.1 15.8 4.8 24.7 Income taxes payable, net 12.2
(7.6 ) (4.5 ) (14.8 ) Deferred revenue (0.1 ) 0.3 (1.2 ) 2.2
Customer advances (2.3 ) (0.3 ) (9.7 ) (35.1 ) Other changes in
operating assets and liabilities, net (2.7 ) (12.8 )
(19.1 ) (19.1 ) Net cash provided by operating
activities 54.1 13.5 79.6
45.0 Cash flows from investing activities:
Purchases of short-term investments (28.9 ) (53.0 ) (78.0 ) (120.8
) Maturities of short-term investments 1.0 - 41.3 - Cash paid for
acquisitions, net of cash acquired - (3.9 ) - (3.9 ) Proceeds from
disposal of product line - 12.1 - 12.8 Purchases of property, plant
and equipment (9.4 ) (9.9 ) (22.8 ) (26.7 ) Proceeds from sales of
property, plant and equipment - 1.8
0.7 2.9 Net cash used in investing
activities (37.3 ) (52.9 ) (58.8 )
(135.7 ) Cash flows from financing activities: Proceeds from
revolving lines of credit 7.0 - 17.0 - Repayment of other debt, net
(0.2 ) (0.2 ) (0.4 ) (0.7 ) Proceeds from issuance of common stock,
net 0.8 2.5 7.0 7.3 Payment of contingent consideration - - (3.0 )
- Repurchase of common stock (7.7 ) - (24.9 ) - Changes in
restricted cash - 0.7 1.4 0.7 Cash payments to noncontrolling
interest - - (0.5 ) (1.1 ) Excess tax benefit related to stock
option awards - - 2.2
- Net cash (used in) provided by financing activities
(0.1 ) 3.0 (1.2 ) 6.2
Effect of exchange rate changes on cash and cash equivalents
(6.5 ) (24.2 ) (8.1 ) (25.0 ) Net change in
cash and cash equivalents 10.2 (60.6 ) 11.5 (109.5 ) Cash and cash
equivalents at beginning of period 320.8 389.8
319.5 438.7 Cash and cash
equivalents at end of period $ 331.0 $ 329.2 $ 331.0
$ 329.2
Bruker Corporation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES*
(unaudited)
(in millions, except per
share amounts) Three Months Ended September 30, Nine
Months Ended September 30, 2015
2014 2015 2014
Reconciliation of Non-GAAP Operating
Income, Non-GAAPProfit Before Tax, Non-GAAP Net Income, and
Non-GAAP EPS
GAAP Operating Income $ 28.2 $ 4.9 $ 75.0 $ 60.9
Non-GAAP Adjustments: Restructuring Costs 12.7 16.2 21.2 29.3
Acquisition-Related Costs 1.2 1.4 (1.4 ) 3.0 Purchased Intangible
Amortization 5.1 5.1 15.5 15.1 Other Costs 5.6
8.3 21.2 12.4 Total Non-GAAP
Adjustments: $ 24.6 $ 31.0 $ 56.5 $ 59.8
Non-GAAP Operating Income $ 52.8 $ 35.9 $
131.5 $ 120.7 Non-GAAP Operating Margin 13.3 % 8.6 % 11.5 % 9.3 %
Non-GAAP Interest & Other Income (Expense), net (4.6 )
(2.2 ) (14.1 ) (9.7 )
Non-GAAP Profit Before Tax 48.2 33.7
117.4 111.0 Non-GAAP Income Tax Provision (15.5 ) (9.1 )
(28.1 ) (31.1 ) Non-GAAP Tax Rate 32.2 % 27.0 % 23.9 % 28.0 %
Minority Interest (1.1 ) (0.8 ) (2.7 ) (2.5 )
Non-GAAP Net Income Attributable to Bruker 31.6 23.8 86.6
77.4 Weighted Average Shares Outstanding (Diluted) 168.7
169.6 169.1 169.5
Non-GAAP Earnings
Per Share $ 0.19 $ 0.14 $ 0.51 $ 0.46
Reconciliation of GAAP and Non-GAAP Gross Profit
GAAP
Gross Profit $ 167.5 $ 167.3 $ 497.1 $ 547.5 Non-GAAP
Adjustments: Restructuring Costs 9.7 13.4 15.9 22.3
Acquisition-Related Costs 0.9 0.2 1.2 0.9 Purchased Intangible
Amortization 4.6 4.6 14.0
13.8 Total Non-GAAP Adjustments: 15.2
18.2 31.1 37.0
Non-GAAP Gross Profit $ 182.7 $ 185.5 $ 528.2 $ 584.5
Non-GAAP Gross Margin 46.1 %
44.2 % 46.1
% 44.9 %
Reconciliation of GAAP and Non-GAAP Interest
& Other Income (Expense), net
GAAP Interest & Other
Income (Expense), net $ (4.6 ) $ 4.1 $ (14.3 ) $ (3.1 )
Non-GAAP Adjustments: Sale of Product Line - (8.7 ) 0.2 (9.0 )
Other - 2.4 - 2.4
Non-GAAP Interest & Other Income (Expense), net
$ (4.6 ) $ (2.2 )
$ (14.1 ) $ (9.7 )
* Please refer to our press release for a full explanation for
the use of non-GAAP measures.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151104006749/en/
Bruker CorporationJoshua Young, +1-978-667-9580, ext. 1479Vice
President, Investor Relations & Corporate
Developmentjoshua.young@Bruker.com
Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Jul 2023 to Jul 2024