- Q1 2022 revenue growth of 7.3% year-over-year (yoy); organic
revenue growth of 10.5%
- Q1 2022 GAAP EPS $0.41; non-GAAP EPS $0.49, up 11.4%
yoy
- Raising fiscal year 2022 organic revenue outlook on strong
demand for the Company’s high-performance life science tools,
scientific instruments and diagnostic solutions
Bruker Corporation (Nasdaq: BRKR) today announced financial
results for its first quarter ended March 31, 2022.
First Quarter 2022 Financial Results
Bruker’s revenues for the first quarter of 2022 were $595.0
million, an increase of 7.3% compared to $554.7 million in the
first quarter of 2021. In the first quarter of 2022, revenues
increased 10.5% organically year-over-year. Growth from
acquisitions was 1.0%, while foreign currency transactions had a
negative effect of 4.2%.
First quarter 2022 Bruker Scientific Instruments (BSI) revenues
of $539.5 million increased 6.6% year-over-year, with organic
revenue growth of 9.5%. First quarter 2022 Bruker Energy &
Supercon Technologies (BEST) revenues of $59.7 million increased
13.9% year-over-year. Organic growth for BEST, net of intercompany
eliminations, was 21.0%.
First quarter 2022 GAAP operating income was $96.5 million
compared to $89.1 million in the first quarter of 2021,
representing GAAP operating margins of 16.2%, and 16.1%,
respectively. Non-GAAP operating income was $115.8 million in the
first quarter of 2022, compared to $102.2 million in the first
quarter of 2021. Bruker’s first quarter 2022 non-GAAP operating
margin was 19.5%, an increase of 110 basis points (bps) compared to
18.4% in the first quarter of 2021.
First quarter 2022 GAAP diluted earnings per share (EPS) were
$0.41, compared to $0.37 in the first quarter of 2021. First
quarter 2022 non-GAAP diluted EPS were $0.49, an increase of 11.4%
compared to $0.44 in the first quarter of 2021.
A reconciliation of non-GAAP to GAAP financial measures is
provided in the tables accompanying this press release.
Frank H. Laukien, President and CEO of Bruker, commented:
“Bruker had a solid start to 2022, with first quarter organic
revenue growth of 10.5% and good operating improvements
year-over-year, despite supply chain and logistics challenges.
Robust demand for Bruker’s differentiated instruments and
high-performance solutions allowed us to achieve even stronger
double-digit year-over-year organic bookings growth. Given our
solid first quarter revenue and broad-based strength in bookings
and backlog, we are raising our organic revenue growth guidance for
the full year 2022.”
He continued: “In the first quarter and in April 2022, we made
several key acquisitions and equity investments in proteomics,
spatial biology, biopharma, applied markets and cancer biomarker
companies. We intend to ramp strategic marketing, commercial and
R&D investments in our high-growth, high-margin Project
Accelerate 2.0 initiatives throughout 2022.”
Fiscal Year 2022 Financial Outlook
Bruker is increasing its FY 2022 organic revenue growth guidance
to reflect strong demand for its high-performance life science
tools, scientific instruments, and diagnostic solutions.
For FY 2022, Bruker expects 5% to 7% year-over-year reported
revenue growth, including:
- organic growth of 7% to 9%, an increase of 1% compared to prior
guidance
- M&A contributions of approximately 1.5%, an increase of
0.5% from prior guidance, and
- foreign currency translation headwinds of approximately -3.5%,
vs. prior guidance of -2%.
Consistent with prior guidance, in FY 2022, Bruker expects
non-GAAP operating margin expansion of 30 bps to 60 bps from 19.4%
in FY 2021.
Bruker continues to expect FY 2022 non-GAAP EPS of $2.29 to
$2.33, a 9% to 11% increase year-over-year.
Bruker’s organic revenue growth, non-GAAP operating margin
expansion and non-GAAP EPS guidance for FY 2022 are based on
foreign exchange rates as of March 31, 2022.
For the Company’s outlook for FY 2022, organic revenue growth,
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, May 4, 2022 at 8:30 a.m. Eastern Daylight
Time. To listen to the webcast, investors can go to
https://ir.bruker.com and click on the “Q1 2022 Earnings Webcast”
hyperlink. A slide presentation that will be referenced during the
webcast will be posted to our Investor Relations 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
First Quarter 2022 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 replay
access code: 1338189. The replay will be available beginning one
hour after the end of the conference call through June 4, 2022.
About Bruker Corporation (Nasdaq: BRKR)
Bruker is enabling 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 and cell biology research, in applied and pharma
applications, in microscopy and nanoanalysis, as well as in
industrial applications. Bruker offers differentiated, high-value
life science and diagnostics systems and solutions in preclinical
imaging, clinical phenomics research, proteomics and multiomics,
spatial and single-cell biology, functional structural and
condensate biology, as well as in clinical microbiology and
molecular diagnostics. 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: non-GAAP gross profit; non-GAAP gross profit
margin; non-GAAP operating income; non-GAAP operating profit;
non-GAAP operating margin; non-GAAP SG&A expense; non-GAAP
profit before tax; non-GAAP tax rate; non-GAAP net income and
non-GAAP diluted earnings per share. These non-GAAP measures
exclude costs related to restructuring actions, acquisition and
related integration expenses, amortization of acquired intangible
assets and other non-operational costs.
We also may refer to organic revenue growth or decline, free
cash flow and return on invested capital, 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 and cash equivalents. 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; however, we
urge investors to review the reconciliation of these financial
measures to the comparable GAAP financial measures included in the
accompanying tables, and not to rely on any single financial
measure to evaluate our business. 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 certain non-GAAP measures and use this
information for our planning and forecasting activities.
Additional information relating to the non-GAAP financial
measures used in this press release and reconciliations to the most
directly comparable GAAP financial measures are provided in the
tables accompanying this press release following our GAAP financial
statements.
With respect to our outlook for 2022 non-GAAP organic revenue,
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 organic revenue,
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 Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including statements regarding our fiscal year 2022
financial outlook, our outlook for organic revenue growth, non-GAAP
operating margin, non-GAAP EPS and non-GAAP tax rate; management’s
expectations for the impact of foreign currency and acquisitions,
and for future financial and operational performance and business
outlook; future economic conditions; the duration and impact of
supply chain challenges; strategic investments; and statements
found under the “Use of Non-GAAP Financial Measures” section of
this release. 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 the length and severity of the COVID-19
pandemic, the impact of the pandemic on global economic conditions,
the length and severity of any resulting recession, the impact of
supply chain challenges, including inflationary pressures, the
impact of geopolitical tensions and any resulting sanctions,
continued volatility in the capital markets, the integration and
assumption of liabilities of businesses we have acquired or may
acquire in the future, our restructuring and cost-control
initiatives, changing technologies, product development and market
acceptance of our products, the cost and pricing of our products,
manufacturing and outsourcing, competition, dependence on
collaborative partners, key suppliers and third-party distributors,
capital spending and government funding policies, changes in
governmental regulations, intellectual property rights, litigation,
exposure to foreign currency fluctuations, our ability to service
our debt obligations and fund our anticipated cash needs, the
effect of a concentrated ownership of our common stock, loss of key
personnel, payment of future dividends 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, 2021, as may be updated by our
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)
March 31, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
816.1
$
1,068.2
Short-term investments
100.0
100.0
Accounts receivable, net
413.8
416.9
Inventories
739.9
710.1
Assets held for sale
—
4.4
Other current assets
196.7
172.2
Total current assets
2,266.5
2,471.8
Property, plant and equipment, net
403.8
406.1
Goodwill, intangibles, net and other
long-term assets
896.1
772.1
Total assets
$
3,566.4
$
3,650.0
LIABILITIES, REDEEMABLE
NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$
11.0
$
112.4
Accounts payable
161.2
147.4
Customer advances
214.7
197.5
Other current liabilities
509.3
481.2
Total current liabilities
896.2
938.5
Long-term debt
1,205.4
1,221.8
Other long-term liabilities
426.7
404.9
Redeemable noncontrolling interest
6.8
0.2
Total shareholders’ equity
1,031.3
1,084.6
Total liabilities, redeemable
noncontrolling interest and shareholders’ equity
$
3,566.4
$
3,650.0
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
(in millions, except per share
data)
Three Months Ended March
31,
2022
2021
Revenue
$
595.0
$
554.7
Cost of revenue
288.7
276.0
Gross profit
306.3
278.7
Operating expenses:
Selling, general and administrative
145.7
131.8
Research and development
56.6
54.8
Other charges, net
7.5
3.0
Total operating expenses
209.8
189.6
Operating income
96.5
89.1
Interest and other income (expense),
net
(2.5
)
(3.8
)
Income before income taxes and
noncontrolling interest in consolidated
subsidiaries
94.0
85.3
Income tax provision
31.9
27.5
Consolidated net income
62.1
57.8
Net income attributable to noncontrolling
interests in consolidated subsidiaries
0.5
1.1
Net income attributable to Bruker
Corporation
$
61.6
$
56.7
Net income per common share attributable
to Bruker Corporation shareholders:
Basic
$
0.41
$
0.37
Diluted
$
0.41
$
0.37
Weighted average common shares
outstanding:
Basic
150.4
151.8
Diluted
151.4
153.2
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (unaudited)
(in millions)
Three Months Ended March
31,
2022
2021
Cash flows from operating activities:
Consolidated net income
$
62.1
$
57.8
Adjustments to reconcile consolidated net
income to cash flows from operating activities:
Depreciation and amortization
21.7
22.3
Stock-based compensation expense
8.0
3.8
Deferred income taxes
(4.0
)
4.9
Other non-cash expenses, net
(6.2
)
4.9
Changes in operating assets and
liabilities, net of acquisitions and divestitures:
Accounts receivable
(2.4
)
0.8
Inventories
(49.0
)
(41.6
)
Accounts payable and accrued expenses
(0.1
)
35.5
Income taxes payable, net
0.6
10.1
Deferred revenue
22.7
14.1
Customer advances
22.6
2.5
Other changes in operating assets and
liabilities, net
1.8
(17.1
)
Net cash provided by operating
activities
77.8
98.0
Cash flows from investing activities:
Cash paid for strategic investments at
cost
(12.0
)
—
Cash paid for acquisitions, net of cash
acquired
(83.8
)
(4.0
)
Purchases of property, plant and
equipment
(19.0
)
(24.7
)
Proceeds from sales of property, plant and
equipment
12.7
1.2
Net proceeds from cross currency swap
agreements
0.3
3.5
Net cash used in investing activities
(101.8
)
(24.0
)
Cash flows from financing activities:
Repayment of other debt, net
(0.4
)
(0.1
)
Repayment of 2012 Note Purchase
Agreement
(105.0
)
—
Repayment of 2019 Note Purchase
Agreement
(0.8
)
—
Proceeds from issuance of common stock,
net
3.1
1.1
Payment of contingent consideration
(1.2
)
(0.4
)
Payment of dividends to common
stockholders
(7.5
)
(6.1
)
Repurchase of common stock
(105.6
)
(32.6
)
Net cash used in financing activities
(217.4
)
(38.1
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(10.7
)
(21.0
)
Net change in cash, cash equivalents and
restricted cash
(252.1
)
14.9
Cash, cash equivalents and restricted cash
at beginning of period
1,071.7
685.5
Cash, cash equivalents and restricted cash
at end of period
$
819.6
$
700.4
Bruker Corporation
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
(unaudited and in millions, except per
share data)
Reconciliation of Non-GAAP Operating
Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income and Non-
GAAP Earnings Per Share
Three Months Ended March
31,
2022
2021
GAAP operating income
$
96.5
$
89.1
Non-GAAP Adjustments: Restructuring Costs
0.4
2.4
Acquisition-Related Costs
5.3
0.9
Purchased Intangible Amortization
9.3
9.0
Other Costs
4.3
0.8
Total Non-GAAP Adjustments:
19.3
13.1
Non-GAAP operating income
$
115.8
$
102.2
Non-GAAP operating margin
19.5
%
18.4
%
Non-GAAP Interest & Other Expense, net
(4.2
)
(3.8
)
Non-GAAP Profit Before Tax
111.6
98.4
Non-GAAP Income Tax Provision
(36.5
)
(30.6
)
Non-GAAP Tax Rate
32.7
%
31.1
%
Minority Interest
(0.5
)
(1.1
)
Non-GAAP Net Income Attributable to Bruker
74.6
66.7
Weighted average shares outstanding (diluted)
151.4
153.2
Non-GAAP earnings per share
$
0.49
$
0.44
Reconciliation of GAAP and Non-GAAP Gross
Profit
Three Months Ended March
31,
2022
2021
GAAP Gross Profit
$
306.3
$
278.7
Non-GAAP Adjustments: Restructuring Costs
0.1
1.1
Acquisition-Related Costs
0.2
—
Purchased Intangible Amortization
4.5
4.5
Other Costs
2.2
—
Total Non-GAAP Adjustments:
7.0
5.6
Non-GAAP Gross Profit
$
313.3
$
284.3
Non-GAAP Gross Margin
52.7
%
51.3
%
Reconciliation of GAAP and Non-GAAP Selling, General and
Administrative (SG&A) Expenses
Three Months Ended March
31,
2022
2021
GAAP SG&A Expenses
$
145.7
$
131.8
Non-GAAP Adjustments: Purchased Intangible Amortization
(4.8
)
(4.5
)
Non-GAAP SG&A Expenses
$
140.9
$
127.3
Reconciliation of GAAP Tax Rate to
Non-GAAP Tax Rate
Three Months Ended March
31,
2022
2021
GAAP Tax Rate
33.9
%
32.2
%
Non-GAAP Adjustments: Tax Impact of Non-GAAP Adjustments
-0.4
%
-0.4
%
Other Discrete Items
-0.8
%
-0.7
%
Total Non-GAAP Adjustments:
-1.2
%
-1.1
%
Non-GAAP Tax Rate
32.7
%
31.1
%
Reconciliation of GAAP Earnings Per
Share to Non-GAAP Earnings Per Share (Diluted)
Three Months Ended March
31,
2022
2021
GAAP Earnings Per Share (Diluted)
$
0.41
$
0.37
Non-GAAP Adjustments: Restructuring Costs
—
0.02
Acquisition-Related Costs
0.04
0.01
Purchased Intangible Amortization
0.06
0.06
Other Costs
0.01
0.01
Income Tax Rate Differential
(0.03
)
(0.03
)
Total Non-GAAP Adjustments:
0.08
0.07
Non-GAAP Earnings Per Share (Diluted)
$
0.49
$
0.44
Reconciliation of GAAP Operating Cash Flow and Non-GAAP
Free Cash Flow
Three Months Ended March
31,
2022
2021
GAAP Operating Cash Flow
$
77.8
$
98.0
Non-GAAP Adjustments: Purchases of property, plant and equipment
(19.0
)
(24.7
)
Non-GAAP Free Cash Flow
$
58.8
$
73.3
Reconciliation of Non-GAAP Return on Invested Capital
(ROIC) Trailing Twelve MonthsEnded March 31, 2022
Non-GAAP operating income
$
483.8
Less: Non-GAAP income tax provision
(132.0
)
Non-GAAP operating income after tax
$
351.8
Average Total Invested Capital Average Long-Term Debt
$
962.7
Average Current Portion of Long-Term Debt
59.7
Average Total Shareholder's Equity
1,009.9
Less: Average Cash and Cash Equivalents
756.5
Average Total Invested Capital
$
1,275.9
Return on Invested Capital (ROIC)
27.6
%
Bruker Corporation
REVENUE
(unaudited and in millions)
Three Months Ended March
31,
2022
2021
Revenue by Group: Bruker BioSpin
$
157.8
$
159.4
Bruker CALID
203.2
192.4
Bruker Nano
178.5
154.4
BEST
59.7
52.4
Eliminations
(4.2
)
(3.9
)
Total Revenue
$
595.0
$
554.7
Three Months Ended March
31,
2022
2021
Revenue by End Customer Geography: United States
$
155.0
$
119.0
Europe
201.9
219.9
Asia Pacific
188.9
180.5
Other
49.2
35.3
Total Revenue
$
595.0
$
554.7
Reconciliation of GAAP Reported Revenue
Growth to Organic Revenue Growth
Three Months Ended March
31,
2022
2021
Total Bruker
GAAP Revenue as of Prior Comparable Period
$
554.7
$
424.0
Non-GAAP Adjustments: Acquisitions and divestitures
5.8
3.2
Organic
58.2
100.7
Currency
(23.7
)
26.8
Total Non-GAAP Adjustments:
40.3
130.7
GAAP Revenue
$
595.0
$
554.7
Revenue Growth
7.3
%
30.8
%
Organic Revenue Growth
10.5
%
23.8
%
Three Months Ended March
31,
2022
2021
Bruker Scientific Instruments
(1)
GAAP Revenue as of Prior Comparable Period
$
506.2
$
381.5
Non-GAAP Adjustments: Acquisitions and divestitures
5.8
3.2
Organic
48.0
97.7
Currency
(20.5
)
23.8
Total Non-GAAP Adjustments:
33.3
124.7
GAAP Revenue
$
539.5
$
506.2
Revenue Growth
6.6
%
32.7
%
Organic Revenue Growth
9.5
%
25.6
%
Three Months Ended March
31,
2022
2021
BEST, net of Intercompany
Eliminations
GAAP Revenue as of Prior Comparable Period
$
48.5
$
42.5
Non-GAAP Adjustments: Organic
10.2
3.0
Currency
(3.2
)
3.0
Total Non-GAAP Adjustments:
7.0
6.0
GAAP Revenue
$
55.5
$
48.5
Revenue Growth
14.4
%
14.1
%
Organic Revenue Growth
21.0
%
7.1
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504005438/en/
Justin Ward Sr. Director, Investor Relations & Corporate
Development Bruker Corporation T: +1 (978) 663–3660, ext. 1479 E:
Investor.Relations@bruker.com
Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Sep 2024 to Oct 2024
Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Oct 2023 to Oct 2024