BILLERICA, Mass., Feb. 8, 2018 /PRNewswire/ -- Bruker
Corporation (NASDAQ: BRKR) today announced financial results for
its fourth quarter and fiscal year ended December 31, 2017.
Bruker's revenues for the fourth quarter of 2017 were
$530.5 million, an increase of 12.8%
compared to the fourth quarter of 2016. In the fourth quarter of
2017, Bruker's year-over-year organic revenue growth was 4.0%,
while growth from acquisitions was 3.6%, and the favorable effect
from changes in foreign currency rates was 5.2%.
Fourth quarter 2017 GAAP operating income was $93.7 million, compared to $76.9 million in the fourth quarter of 2016, and
GAAP operating margin was 17.7%, versus 16.4% in the fourth quarter
of 2016. Non-GAAP operating income was $110.8 million, an increase of 20% over
$92.0 million in the fourth quarter
of 2016. Bruker's fourth quarter 2017 non-GAAP operating margin was
20.9%, compared to 19.6% in the fourth quarter of 2016.
Due to the effects of U.S. tax reform, Bruker recorded a charge
of $68.9 million in the fourth
quarter 2017, resulting in a GAAP loss per diluted share of
($0.02), compared to GAAP earnings
per diluted share (EPS) of $0.43 in
the fourth quarter of 2016. Fourth quarter 2017 non-GAAP EPS were
$0.51, an increase of 11% compared to
$0.46 in the fourth quarter of 2016.
A reconciliation of non-GAAP to GAAP financial measures is provided
in the tables accompanying this press release.
For the year 2017, Bruker's revenues increased 9.6% to
$1.766 billion, compared to
$1.611 billion in the year 2016. In
2017, Bruker's year-over-year organic revenue growth was 3.6%,
while growth from acquisitions was 4.8%, and the favorable effect
from changes in foreign currency rates was 1.2%. Bruker's
year-over-year organic revenue growth of 3.6% in 2017 consisted of
organic revenue growth of 2.7% in the Bruker Scientific Instruments
(BSI) segment and of 14.5% in the BEST segment, net of intercompany
eliminations.
For the year 2017, GAAP operating income was $214.7 million, compared to $177.2 million in 2016, and GAAP operating margin
was 12.2%, versus 11.0% in 2016. Non-GAAP operating income was
$276.1 million in 2017, an increase
of 16% over non-GAAP operating income of $237.9 million in 2016. Bruker's 2017 non-GAAP
operating margin was 15.6%, compared to 14.8% in 2016.
Fiscal year 2017 GAAP diluted EPS were $0.49, compared to $0.95 in 2016. The decrease was primarily due to
the effects of U.S. tax reform in the fourth quarter of 2017.
Non-GAAP EPS for 2017 were $1.21,
compared to $1.19 in the year 2016,
which had benefitted from an unusually favorable tax rate, as
previously disclosed.
Frank Laukien, President and CEO
of Bruker, commented: "We are encouraged by our finish to the year,
as Bruker exceeded our recently increased full year 2017 revenue
growth and non-GAAP EPS objectives. In 2017, low-single digit
year-over-year organic revenue growth returned to our core
Scientific Instruments segment, whereas our BEST segment delivered
mid-teens organic revenue growth. For 2018, we expect further
gradual improvement in our full year Scientific Instruments organic
growth rate, while BEST revenues are expected to decline in the low
single digits organically year-over-year."
Dr. Laukien continued: "We are also pleased that Bruker achieved
80 bps of non-GAAP operating margin expansion in 2017, even with 45
bps of acquisition headwinds and 20 bps of currency headwinds. For
the full year 2018, we expect continued healthy non-GAAP operating
margin expansion, despite a substantial currency headwind."
Fiscal Year 2018 Financial Outlook
Bruker is providing initial revenue growth, operating margin
expansion and EPS guidance for fiscal year (FY) 2018 based on
average foreign exchange rates for the month of January 2018.
For FY 2018, the Company expects revenue growth of approximately
7%, including organic revenue growth of approximately 3%, and a
foreign currency revenue tailwind of approximately 4%. The Company
projects an increase in FY 2018 non-GAAP operating margin ranging
from 50 basis points (bps) to 80 bps year-over-year, including an
estimated 70 bps margin headwind from foreign currency translation.
Finally, for FY 2018 Bruker expects non-GAAP EPS between
$1.34 and $1.38, an 11% to 14% increase compared to
2017.
For the Company's outlook for FY 2018 non-GAAP operating
margin and non-GAAP EPS, we are not able to provide without
unreasonable effort the most directly comparable GAAP financial
measures, or reconciliations to such GAAP financial measures on a
forward-looking basis. Please see "Use of Non-GAAP Financial
Measures" below for a description of items excluded from our
expected non-GAAP operating margin and non-GAAP EPS.
Quarterly Earnings Call
Bruker will host a conference call and webcast to discuss its
financial results, business outlook, and related corporate and
financial matters today at 4:30 p.m. Eastern
Standard Time. 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
1-888-437-2685 (US toll free) or +1-412-317-6702 (international),
and referencing "Bruker's Fourth Quarter and Fiscal Year 2017
Earnings Conference Call". A telephone replay of the
conference call will be available by dialing 1-877-344-7529 (US
toll free) or +1-412-317-0088 (international) and entering
conference number: 10116535. The replay will be available beginning
one hour after the end of the conference through March 8, 2018.
About Bruker Corporation
For more than 55 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
instruments and high-value analytical and diagnostic solutions
enable scientists to explore life and materials at molecular,
cellular and microscopic levels. In close cooperation with our
customers, Bruker is enabling innovation, improved productivity and
customer success in life science molecular research, in applied and
pharma applications, in microscopy and nanoanalysis, and in
industrial applications, as well as in cell biology, preclinical
imaging, clinical phenomics and proteomics research, microbiology
and molecular pathology research. For more information, please
visit: www.bruker.com.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. generally accepted
accounting principles (GAAP), we use the following non-GAAP
financial measures in this press release and in the earnings
webcast: non-GAAP gross profit; non-GAAP gross profit margin;
non-GAAP operating income; non-GAAP operating margin; non-GAAP
profit before tax; non-GAAP tax rate; non-GAAP net income and
non-GAAP earnings per share. These non-GAAP measures exclude costs
related to restructuring actions, acquisition and related
integration expenses, amortization of acquired intangible assets,
the estimated impact of US tax reform and other non-operational
costs.
We also refer to organic revenue growth, return on invested
capital and free cash flow in this press release and in the
earnings webcast, which are also non-GAAP financial measures. We
define the term organic revenue as GAAP revenue excluding the
effect of changes in foreign currency translation rates and the
effect of acquisitions and divestitures, and believe it is a useful
measure to evaluate our continuing business. 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 because it
indicates the amount of cash generated after additions to property,
plant, and equipment that is available for, among other things,
acquisitions, investments in our business, repayment of debt and
return of capital to shareholders. We define return on invested
capital (ROIC) as non-GAAP operating profit after income tax
divided by average total capital, which we define as debt plus
equity minus cash. We believe ROIC is an important measure of
how effectively the Company invests its capital.
The presentation of these non-GAAP financial measures is not
intended to be a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP and may
be different from non-GAAP financial measures used by other
companies, and therefore, may not be comparable among
companies. We believe these non-GAAP financial measures
provide meaningful supplemental information regarding our
performance. Specifically, management believes that the non-GAAP
measures mentioned above provide relevant and useful information
which is widely used by analysts, investors and competitors in our
industry, as well as by our management, in assessing both
consolidated and business unit performance.
We use these non-GAAP financial measures to evaluate our
period-over-period operating performance because our management
believes this provides a more comparable measure of our continuing
business by adjusting for certain items that are not reflective of
the underlying performance of our business. These measures may also
be useful to investors in evaluating the underlying operating
performance of our business and forecasting future results.
We regularly use these 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 and use
this information for our planning and forecasting
activities.
Additional information relating to these non-GAAP financial
measures and reconciliations to the most directly comparable GAAP
financial measures is provided in the tables accompanying this
press release following our GAAP financial statements and in our
slide presentation, which is available through the "Earnings
Release" hyperlink on Bruker's Investor Relations web site
ir.bruker.com.
With respect to the Company's outlook for 2018 non-GAAP
operating margin, non-GAAP EPS and non-GAAP tax rate, we are not
providing the most directly comparable GAAP financial measures or
corresponding reconciliations to such GAAP financial measures on a
forward-looking basis, because we are unable to predict with
reasonable certainty certain items that may affect such measures
calculated and presented in accordance with GAAP without
unreasonable effort. Our expected non-GAAP operating margin, tax
rate and EPS ranges exclude primarily the future impact of
restructuring actions, unusual gains and losses,
acquisition-related expenses and purchase accounting fair value
adjustments. These reconciling items are uncertain, depend on
various factors outside our management's control and could
significantly impact, either individually or in the aggregate, our
future period operating margins, EPS and tax rate calculated and
presented in accordance with GAAP.
Forward Looking Statements
Any statements contained in this press release which do not
describe historical facts may constitute forward-looking statements
within the meaning of 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
indicated, 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, fluctuations in foreign
currency exchange rates, 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, key suppliers and contract manufacturers,
capital spending and government funding policies, changes in
governmental regulations, the use and protection of intellectual
property rights, litigation, and other risk factors discussed from
time to time in our filings with the Securities and Exchange
Commission, or SEC. 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, 2016 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
Corporation
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
325.0
|
|
$
342.4
|
|
Short-term
investments
|
114.2
|
|
157.9
|
|
Accounts receivable,
net
|
319.3
|
|
243.9
|
|
Inventories
|
|
486.2
|
|
440.4
|
|
Other current
assets
|
114.1
|
|
91.3
|
|
|
Total current
assets
|
1,358.8
|
|
1,275.9
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
266.5
|
|
239.1
|
Intangibles, net and
other long-term assets
|
323.2
|
|
293.4
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
1,948.5
|
|
$
1,808.4
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
-
|
|
$
20.1
|
|
Accounts
payable
|
90.8
|
|
86.1
|
|
Customer
advances
|
111.7
|
|
149.0
|
|
Other current
liabilities
|
322.0
|
|
269.5
|
|
|
Total current
liabilities
|
524.5
|
|
524.7
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
415.6
|
|
391.6
|
Other long-term
liabilities
|
274.9
|
|
199.0
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
733.5
|
|
693.1
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,948.5
|
|
$
1,808.4
|
Bruker
Corporation
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(in millions,
except per share amounts)
|
December
31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
530.5
|
|
$
470.3
|
|
$
1,765.9
|
|
$
1,611.3
|
Cost of
revenues
|
275.3
|
|
249.9
|
|
952.9
|
|
868.8
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
255.2
|
|
220.4
|
|
813.0
|
|
742.5
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
112.1
|
|
100.1
|
|
415.9
|
|
390.5
|
Research and
development
|
43.5
|
|
38.2
|
|
162.7
|
|
149.0
|
Other charges,
net
|
5.9
|
|
5.2
|
|
19.7
|
|
25.8
|
Total operating
expenses
|
161.5
|
|
143.5
|
|
598.3
|
|
565.3
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
93.7
|
|
76.9
|
|
214.7
|
|
177.2
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense), net
|
(5.1)
|
|
11.5
|
|
(16.9)
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes and noncontrolling
|
|
|
|
|
|
|
|
|
interest in
consolidated subsidiaries
|
88.6
|
|
88.4
|
|
197.8
|
|
177.6
|
Income tax
provision
|
91.6
|
|
19.3
|
|
117.5
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
income (loss)
|
(3.0)
|
|
69.1
|
|
80.3
|
|
154.5
|
Net income
attributable to noncontrolling
|
|
|
|
|
|
|
|
|
interests in
consolidated subsidiaries
|
0.4
|
|
0.1
|
|
1.7
|
|
0.9
|
Net income (loss)
attributable to Bruker Corporation
|
$
(3.4)
|
|
$
69.0
|
|
$
78.6
|
|
$
153.6
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share attributable to
|
|
|
|
|
|
|
|
|
Bruker Corporation
shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.02)
|
|
$
0.43
|
|
$
0.50
|
|
$
0.95
|
|
Diluted
|
$
(0.02)
|
|
$
0.43
|
|
$
0.49
|
|
$
0.95
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
155.7
|
|
160.1
|
|
158.1
|
|
161.4
|
|
Diluted
|
155.7
|
|
160.7
|
|
159.1
|
|
162.2
|
Bruker
Corporation
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(in
millions)
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Consolidated
net income (loss)
|
|
$
(3.0)
|
|
$
69.1
|
|
$
80.3
|
|
$
154.5
|
Adjustments to
reconcile consolidated net income to cash flows
|
|
|
|
|
|
|
|
|
from operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
15.7
|
|
13.9
|
|
63.9
|
|
54.3
|
|
Stock-based
compensation expense
|
|
2.6
|
|
2.6
|
|
11.0
|
|
9.4
|
|
Deferred income
taxes
|
|
33.2
|
|
9.4
|
|
28.2
|
|
(22.7)
|
|
Other non-cash
expenses, net
|
|
5.5
|
|
(1.1)
|
|
11.6
|
|
24.1
|
Changes in
operating assets and liabilities, net of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(47.1)
|
|
(23.8)
|
|
(55.5)
|
|
(8.4)
|
|
Inventories
|
|
|
30.9
|
|
30.2
|
|
(6.6)
|
|
(43.2)
|
|
Accounts
payable and accrued expenses
|
|
42.3
|
|
(8.1)
|
|
33.7
|
|
(19.6)
|
|
Income taxes
payable, net
|
|
11.5
|
|
(7.0)
|
|
5.2
|
|
(26.8)
|
|
Deferred
revenue
|
|
|
4.2
|
|
1.9
|
|
4.0
|
|
4.9
|
|
Customer
advances
|
|
|
6.9
|
|
(0.8)
|
|
(27.8)
|
|
(7.3)
|
|
Other changes
in operating assets and liabilities, net
|
1.0
|
|
4.5
|
|
6.4
|
|
11.6
|
Net cash
provided by operating activities
|
|
103.7
|
|
90.8
|
|
154.4
|
|
130.8
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of
short-term investments
|
|
-
|
|
(48.9)
|
|
(118.5)
|
|
(126.5)
|
|
Maturities of
short-term investments
|
|
52.8
|
|
42.6
|
|
186.8
|
|
165.0
|
|
Cash paid for
acquisitions, net of cash acquired
|
(0.5)
|
|
(23.1)
|
|
(66.3)
|
|
(24.3)
|
|
Purchases of
property, plant and equipment
|
(12.4)
|
|
(11.1)
|
|
(43.7)
|
|
(37.1)
|
|
Proceeds from
sales of property, plant and equipment
|
4.6
|
|
0.2
|
|
11.5
|
|
1.1
|
Net cash
provided by (used in) investing activities
|
|
44.5
|
|
(40.3)
|
|
(30.2)
|
|
(21.8)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from
revolving lines of credit
|
|
-
|
|
47.0
|
|
154.0
|
|
146.0
|
|
Repayment of
revolving lines of credit
|
|
(65.0)
|
|
-
|
|
(130.0)
|
|
-
|
|
Repayment of
note purchase agreement
|
|
-
|
|
-
|
|
(20.0)
|
|
-
|
|
Proceeds
(Repayment) of other debt, net
|
|
0.1
|
|
(0.2)
|
|
(0.9)
|
|
(0.1)
|
|
Proceeds from
issuance of common stock, net
|
4.7
|
|
1.3
|
|
20.0
|
|
11.5
|
|
Repurchase of
common stock
|
|
(22.5)
|
|
(16.5)
|
|
(152.2)
|
|
(160.0)
|
|
Payment of
dividends
|
|
(6.3)
|
|
(6.4)
|
|
(25.4)
|
|
(25.8)
|
|
Payment of
contingent consideration
|
|
-
|
|
-
|
|
(3.5)
|
|
-
|
|
Cash payments
to noncontrolling interest
|
(0.5)
|
|
-
|
|
(1.0)
|
|
(0.7)
|
|
Excess tax
benefit related to stock option awards
|
-
|
|
0.9
|
|
-
|
|
1.2
|
Net cash (used
in) provided by financing activities
|
|
(89.5)
|
|
26.1
|
|
(159.0)
|
|
(27.9)
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
2.4
|
|
(13.0)
|
|
17.8
|
|
(6.4)
|
Net change in
cash, cash equivalents and restricted cash
|
61.1
|
|
63.6
|
|
(17.0)
|
|
74.7
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
267.8
|
|
282.3
|
|
345.9
|
|
271.2
|
Cash, cash
equivalents and restricted cash at end of period
|
$
328.9
|
|
$
345.9
|
|
$
328.9
|
|
$
345.9
|
Bruker
Corporation
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share amounts)
|
Three Months
Ended December 31,
|
|
Twelve
Months Ended December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Non-GAAP Operating Income, Non-GAAP Profit
Before Tax, Non-GAAP Net Income, and Non-GAAP EPS
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
93.7
|
|
$
76.9
|
|
$
214.7
|
|
$
177.2
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Restructuring
Costs
|
7.7
|
|
8.0
|
|
16.2
|
|
20.8
|
Acquisition-Related
Costs
|
0.8
|
|
0.7
|
|
10.2
|
|
11.1
|
Purchased Intangible
Amortization
|
7.0
|
|
5.5
|
|
29.6
|
|
21.7
|
Other
Costs
|
1.6
|
|
0.9
|
|
5.4
|
|
7.1
|
Total
Non-GAAP Adjustments:
|
$
17.1
|
|
$
15.1
|
|
$
61.4
|
|
$
60.7
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
$
110.8
|
|
$
92.0
|
|
$
276.1
|
|
$
237.9
|
Non-GAAP Operating Margin
|
20.9%
|
|
19.6%
|
|
15.6%
|
|
14.8%
|
|
|
|
|
|
|
|
|
Non-GAAP Interest
& Other Expense, net
|
(4.6)
|
|
2.3
|
|
(17.5)
|
|
(8.8)
|
Non-GAAP Profit
Before Tax
|
106.2
|
|
94.3
|
|
258.6
|
|
229.1
|
|
|
|
|
|
|
|
|
Non-GAAP Income Tax
Provision
|
(26.0)
|
|
(20.5)
|
|
(64.7)
|
|
(35.9)
|
Non-GAAP Tax Rate
|
24.5%
|
|
21.7%
|
|
25.0%
|
|
15.7%
|
|
|
|
|
|
|
|
|
Minority
Interest
|
(0.4)
|
|
(0.1)
|
|
(1.7)
|
|
(0.9)
|
|
|
|
|
|
|
|
|
Non-GAAP Net
Income Attributable to Bruker
|
79.8
|
|
73.7
|
|
192.2
|
|
192.3
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding (Diluted)
|
156.9
|
|
160.7
|
|
159.1
|
|
162.2
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings
Per Share
|
$
0.51
|
|
$
0.46
|
|
$
1.21
|
|
$
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Gross Profit
|
|
|
|
|
|
|
|
GAAP Gross
Profit
|
$
255.2
|
|
$
220.4
|
|
$
813.0
|
|
$
742.5
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Restructuring
Costs
|
4.0
|
|
4.6
|
|
5.6
|
|
11.0
|
Acquisition-Related
Costs
|
0.1
|
|
(0.2)
|
|
5.7
|
|
2.1
|
Purchased Intangible
Amortization
|
5.6
|
|
4.7
|
|
24.0
|
|
18.7
|
Other
Costs
|
0.1
|
|
-
|
|
0.8
|
|
0.1
|
Total
Non-GAAP Adjustments:
|
9.8
|
|
9.1
|
|
36.1
|
|
31.9
|
Non-GAAP Gross
Profit
|
$
265.0
|
|
$
229.5
|
|
$
849.1
|
|
$
774.4
|
Non-GAAP Gross Margin
|
50.0%
|
|
48.8%
|
|
48.1%
|
|
48.1%
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Tax Rate
|
|
|
|
|
|
|
|
GAAP Tax
Rate
|
103.4%
|
|
21.8%
|
|
59.4%
|
|
13.0%
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Tax Impact of
Non-GAAP Adjustments
|
-1.6%
|
|
-0.2%
|
|
-0.1%
|
|
-1.0%
|
Tax Authority
Settlements
|
0.0%
|
|
0.1%
|
|
0.0%
|
|
0.1%
|
Valuation Allowance
Release
|
0.0%
|
|
0.3%
|
|
0.0%
|
|
3.7%
|
U.S. Tax Reform- Toll
Charge
|
-62.1%
|
|
0.0%
|
|
-27.8%
|
|
0.0%
|
U.S. Tax Reform- Tax
Rate Change
|
-1.3%
|
|
0.0%
|
|
-0.6%
|
|
0.0%
|
U.S. Tax Reform-
Change in APB 23
|
-14.4%
|
|
0.0%
|
|
-6.5%
|
|
0.0%
|
Other Discrete
Items
|
0.5%
|
|
-0.3%
|
|
0.6%
|
|
-0.1%
|
Total
Non-GAAP Adjustments:
|
-78.9%
|
|
-0.1%
|
|
-34.4%
|
|
2.7%
|
Non-GAAP Tax
Rate
|
24.5%
|
|
21.7%
|
|
25.0%
|
|
15.7%
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Interest & Other Income (Expense),
net
|
|
|
|
|
|
|
GAAP Interest
& Other Income (Expense), net
|
$
(5.1)
|
|
$
11.5
|
|
$
(16.9)
|
|
$
0.4
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Bargain Purchase
Gain
|
0.5
|
|
(9.2)
|
|
(0.6)
|
|
(9.2)
|
Non-GAAP Interest
& Other Income (Expense), net
|
$
(4.6)
|
|
$
2.3
|
|
$
(17.5)
|
|
$
(8.8)
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Earnings Per Share (Diluted)
|
|
|
|
|
|
|
GAAP Earnings Per
Share (Diluted)
|
$
(0.02)
|
|
$
0.43
|
|
$
0.49
|
|
$
0.95
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Restructuring
Costs
|
0.05
|
|
0.05
|
|
0.10
|
|
0.13
|
Acquisition-Related
Costs
|
0.01
|
|
0.01
|
|
0.06
|
|
0.07
|
Purchased Intangible
Amortization
|
0.04
|
|
0.03
|
|
0.19
|
|
0.14
|
Other
Costs
|
0.01
|
|
0.01
|
|
0.03
|
|
0.04
|
Bargain Purchase
Gain
|
0.00
|
|
(0.06)
|
|
-
|
|
(0.06)
|
Income Tax Rate
Differential
|
0.42
|
|
(0.01)
|
|
0.33
|
|
(0.08)
|
Total
Non-GAAP Adjustments:
|
0.53
|
|
0.03
|
|
0.72
|
|
0.24
|
Non-GAAP Earnings
Per Share (Diluted)
|
$
0.51
|
|
$
0.46
|
|
$
1.21
|
|
$
1.19
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Operating Cash Flow and Non-GAAP Free Cash Flow
|
|
|
|
|
|
|
GAAP Operating
Cash Flow
|
$
103.7
|
|
$
90.8
|
|
$
154.4
|
|
$
130.8
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
(12.4)
|
|
(11.1)
|
|
(43.7)
|
|
(37.1)
|
Non-GAAP Free Cash
Flow
|
$
91.3
|
|
$
79.7
|
|
$
110.7
|
|
$
93.7
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Revenue and Non-GAAP Revenue
|
|
|
|
|
|
|
|
GAAP Revenue as of
Prior Comparable Period
|
$
470.3
|
|
$
478.2
|
|
$
1,611.3
|
|
$
1,623.8
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Acquisitions and
divestitures
|
16.8
|
|
8.9
|
|
77.2
|
|
32.4
|
Currency
|
24.6
|
|
(6.4)
|
|
19.6
|
|
(8.3)
|
Organic
|
18.8
|
|
(10.4)
|
|
57.8
|
|
(36.6)
|
Total
Non-GAAP Adjustments:
|
60.2
|
|
(7.9)
|
|
154.6
|
|
(12.5)
|
Non-GAAP
Revenue
|
$
530.5
|
|
$
470.3
|
|
$
1,765.9
|
|
$
1,611.3
|
Organic Revenue Growth
|
4.0%
|
|
-2.2%
|
|
3.6%
|
|
-2.3%
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Return on Invested Capital (ROIC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income (from above)
|
$
110.8
|
|
$
92.0
|
|
$
276.1
|
|
$
237.9
|
Less: Non-GAAP
Income Tax Provision (from above)
|
(26.0)
|
|
(20.5)
|
|
(64.7)
|
|
(35.9)
|
Non-GAAP Operating
Income after Tax
|
$
84.8
|
|
$
71.5
|
|
$
211.4
|
|
$
202.0
|
|
|
|
|
|
|
|
|
Average Total Invested Capital:
|
|
|
|
|
|
|
|
Average Long-Term
Debt
|
$
448.1
|
|
$
368.1
|
|
$
403.6
|
|
$
328.8
|
Average Current
portion of Long-Term Debt
|
0.0
|
|
20.1
|
|
10.1
|
|
10.4
|
Average Total
Shareholders' Equity
|
736.7
|
|
697.0
|
|
713.3
|
|
713.0
|
Less: Average
Cash and Cash Equivalents
|
(294.5)
|
|
(310.5)
|
|
(333.7)
|
|
(304.8)
|
Average
Total Invested Capital
|
$
890.3
|
|
$
774.7
|
|
$
793.3
|
|
$
747.4
|
|
|
|
|
|
|
|
|
Return on Invested
Capital (ROIC)
|
9.5%
|
|
9.2%
|
|
26.6%
|
|
27.0%
|
Days Inventory
Outstanding is calculated as follows: GAAP Average Inventory
balance divided by (GAAP Revenue less Non-GAAP Gross Profit
(defined above))
|
|
|
|
|
|
Days Payable
Outstanding is calculated as follows: GAAP Average Accounts
Payable balance divided by (GAAP Revenue less Non-GAAP Gross Profit
(defined above) plus the Change in GAAP Inventory
balance)
|
|
|
|
|
|
|
|
|
Days Sales
Outstanding is calculated as follows: GAAP Average Accounts
Receivable balance divided by GAAP Revenue
|
Contacts:
Miroslava
Minkova
Head of Investor Relations
Bruker Corporation
T: +1 (978) 663 – 3660, ext. 1479
E: miroslava.minkova@bruker.com
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SOURCE Bruker Corporation