BILLERICA, Mass.--(BUSINESS WIRE)--May. 2, 2013--
Bruker Corporation (NASDAQ: BRKR) today reported financial results for
its first quarter ended March 31, 2013.
Revenues for the first quarter of 2013 declined by 3.0 percent to $393.4
million, compared to $405.6 million in Q1 2012. Excluding a 1.5 percent
negative effect from changes in foreign exchange rates and a 0.4 percent
net negative effect from acquisitions and divestitures, Bruker’s
revenues declined year-over-year by 1.1 percent in the first quarter of
2013.
Bruker reported first quarter 2013 GAAP operating income of $12.2
million, or 3.1% of revenues, compared to $34.4 million, or 8.5% of
revenues in the first quarter 2012. First quarter 2013 GAAP earnings per
diluted share (EPS) were $0.03, compared to EPS of $0.09 in the first
quarter of 2012.
On a non-GAAP basis, Bruker reported first quarter 2013 non-GAAP
operating income of $23.6 million, or 6.0% of revenues, compared to
$43.6 million, or 10.7% of revenues, in Q1 of 2012. First quarter 2013
non-GAAP EPS were $0.08, compared to $0.14 in the first quarter of 2012.
A reconciliation of GAAP to non-GAAP financial measures is provided in
the Company’s financial tables accompanying this press release.
“Our first quarter performance was adversely affected by changes in
foreign exchange rates, weakness in the semiconductor and data storage
industries, and temporary operational issues,” said
Frank Laukien
,
President and CEO of Bruker. “While we are disappointed with our slow
start to the year, our first quarter bookings grew year-over-year, and
we believe we can regain momentum in the remaining quarters of 2013. As
a result, excluding the effects of currency, our full year 2013 outlook
for organic revenue growth remains unchanged.”
From a segment perspective, Bruker Scientific Instruments (BSI) reported
an organic revenue decline of 1.0 percent in the first quarter of 2013,
while Bruker’s Energy and Superconducting Technologies (BEST) segment
reported organic revenue growth of 3.4 percent, both year-over-year.
“Our first quarter 2013 performance was adversely affected by changes in
foreign exchange rates, particularly the steep drop in the Japanese
Yen,” said
Charles Wagner
, Chief Financial Officer of Bruker. “Our
business in Japan represents approximately ten percent of our revenue,
but only a small portion of our expenses. Consequently, these rate
changes not only lowered our revenue, but also disproportionately
reduced our profitability in the first quarter. We remain focused on
delivering the savings from the productivity initiatives we announced
previously. During Q1, we accomplished two significant divestiture and
outsourcing milestones related to these programs, and we continue to
develop other opportunities to improve our operational efficiency.”
Bruker is updating its guidance for 2013 primarily as a result of
weakness in the Japanese Yen. The Company expects to see a reduction of
reported revenue growth rates by approximately 2 percent due to the
recent Yen depreciation. This reduction is expected to result in
reported revenue growth of 2 to 3 percent for the full year 2013. Bruker
now expects to report full year 2013 non-GAAP EPS of between $0.80 and
$0.83, a reduction of $0.08 from previous guidance, also due primarily
to the weaker Yen.
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 Time today. To listen to the webcast, investors can
go to http://ir.bruker.com
and click on the live webcast 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 1-866-900-5380 or
+1-706-758-6539, and referencing conference code: 49670707. A telephone
replay of the conference call will be available for two days, beginning
approximately one hour after the conference call concludes, and can be
accessed by dialing 1-855-859-2056 or +1-404-537-3406, and then entering
replay passcode 49670707.
Use of Non-GAAP Financial Measures
The non-GAAP financial measures used for 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 initiates restructuring
activities to expand operating margins. The financial impact of these
activities, particularly restructuring activities, can be large and
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, 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, the outcome of any actions that may be taken by government
agencies in connection with FCPA compliance matters we have disclosed to
them, changes in governmental regulations, realization of anticipated
benefits from economic stimulus programs, intellectual property rights,
litigation, and 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, 2012, our most recent quarterly report on Form 10-Q and our current
reports on Form 8-K. We expressly disclaim any intent or obligation to
update these forward-looking statements other than as required by law.
|
Bruker Corporation
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
269.4
|
|
|
$
|
310.6
|
|
Accounts receivable, net
|
|
|
|
273.4
|
|
|
|
289.3
|
|
Inventories
|
|
|
|
621.7
|
|
|
|
611.5
|
|
Other current assets
|
|
|
|
113.0
|
|
|
|
98.3
|
|
Total current assets
|
|
|
|
1,277.5
|
|
|
|
1,309.7
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
279.7
|
|
|
|
283.6
|
|
Intangible and other long-term assets
|
|
|
|
254.7
|
|
|
|
263.1
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,811.9
|
|
|
$
|
1,856.4
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
1.1
|
|
|
$
|
1.3
|
|
Accounts payable
|
|
|
|
75.8
|
|
|
|
69.6
|
|
Customer advances
|
|
|
|
263.1
|
|
|
|
267.3
|
|
Other current liabilities
|
|
|
|
303.2
|
|
|
|
343.6
|
|
Total current liabilities
|
|
|
|
643.2
|
|
|
|
681.8
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
335.5
|
|
|
|
335.9
|
|
Other long-term liabilities
|
|
|
|
140.6
|
|
|
|
129.0
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
692.6
|
|
|
|
709.7
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
1,811.9
|
|
|
$
|
1,856.4
|
|
|
|
|
|
|
|
|
|
Bruker Corporation
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(in millions, except per share amounts)
|
|
|
March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
393.4
|
|
|
|
$
|
405.6
|
|
|
Cost of revenues
|
|
|
|
218.9
|
|
|
|
|
215.2
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
174.5
|
|
|
|
|
190.4
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
106.8
|
|
|
|
|
104.4
|
|
|
Research and development
|
|
|
|
49.4
|
|
|
|
|
48.2
|
|
|
Other charges, net
|
|
|
|
6.1
|
|
|
|
|
3.4
|
|
|
Total operating expenses
|
|
|
|
162.3
|
|
|
|
|
156.0
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
12.2
|
|
|
|
|
34.4
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
|
|
(3.9
|
)
|
|
|
|
(7.5
|
)
|
|
|
|
|
|
|
|
|
|
Income before income taxes and noncontrolling interest in
consolidated subsidiaries
|
|
|
|
8.3
|
|
|
|
|
26.9
|
|
|
Income tax provision
|
|
|
|
2.6
|
|
|
|
|
11.8
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income
|
|
|
|
5.7
|
|
|
|
|
15.1
|
|
|
Net income attributable to noncontrolling interests in
consolidated subsidiaries
|
|
|
|
0.3
|
|
|
|
|
-
|
|
|
Net income attributable to Bruker Corporation
|
|
|
$
|
5.4
|
|
|
|
$
|
15.1
|
|
|
|
|
|
|
|
|
|
|
Net income per common share attributable to
|
|
|
|
|
|
|
|
Bruker Corporation shareholders:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.03
|
|
|
|
$
|
0.09
|
|
|
Diluted
|
|
|
$
|
0.03
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
166.4
|
|
|
|
|
165.7
|
|
|
Diluted
|
|
|
|
168.1
|
|
|
|
|
166.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bruker Corporation
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Consolidated net income
|
|
|
$
|
5.7
|
|
|
|
$
|
15.1
|
|
|
Adjustments to reconcile consolidated net income to cash flows
from operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
15.2
|
|
|
|
|
13.6
|
|
|
Write-down of demonstration inventories to net realizable value
|
|
|
|
7.8
|
|
|
|
|
6.8
|
|
|
Stock-based compensation expense
|
|
|
|
1.8
|
|
|
|
|
1.9
|
|
|
Deferred income taxes
|
|
|
|
(2.6
|
)
|
|
|
|
(1.3
|
)
|
|
Other non-cash expenses, net
|
|
|
|
(1.2
|
)
|
|
|
|
2.0
|
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
8.7
|
|
|
|
|
28.9
|
|
|
Inventories
|
|
|
|
(37.0
|
)
|
|
|
|
(52.5
|
)
|
|
Accounts payable and accrued expenses
|
|
|
|
(7.8
|
)
|
|
|
|
(8.8
|
)
|
|
Income taxes payable
|
|
|
|
(4.0
|
)
|
|
|
|
(14.3
|
)
|
|
Deferred revenue
|
|
|
|
2.9
|
|
|
|
|
(3.7
|
)
|
|
Customer advances
|
|
|
|
3.7
|
|
|
|
|
25.7
|
|
|
Other changes in operating assets and liabilities, net
|
|
|
|
(11.4
|
)
|
|
|
|
(8.6
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
(18.2
|
)
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Cash paid for acquisitions, net of cash acquired
|
|
|
|
(0.8
|
)
|
|
|
|
(21.7
|
)
|
|
Disposal of product line
|
|
|
|
0.5
|
|
|
|
|
-
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(14.6
|
)
|
|
|
|
(11.6
|
)
|
|
Sales of property, plant and equipment
|
|
|
|
0.6
|
|
|
|
|
0.8
|
|
|
Net cash used in investing activities
|
|
|
|
(14.3
|
)
|
|
|
|
(32.5
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Repayments of revolving lines of credit
|
|
|
|
-
|
|
|
|
|
(216.5
|
)
|
|
Proceeds from Note Purchase Agreement
|
|
|
|
-
|
|
|
|
|
240.0
|
|
|
Repayment of other debt, net
|
|
|
|
(0.7
|
)
|
|
|
|
(7.8
|
)
|
|
Payment of deferred financing costs
|
|
|
|
-
|
|
|
|
|
(1.4
|
)
|
|
Proceeds from issuance of common stock, net
|
|
|
|
4.1
|
|
|
|
|
1.8
|
|
|
Changes in restricted cash
|
|
|
|
(3.1
|
)
|
|
|
|
(1.3
|
)
|
|
Net cash provided by financing activities
|
|
|
|
0.3
|
|
|
|
|
14.8
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(9.0
|
)
|
|
|
|
(3.6
|
)
|
|
Net change in cash and cash equivalents
|
|
|
|
(41.2
|
)
|
|
|
|
(16.5
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
310.6
|
|
|
|
|
246.0
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
269.4
|
|
|
|
$
|
229.5
|
|
|
|
|
|
|
|
|
|
|
Bruker Corporation
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES* (unaudited)
|
|
|
|
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
Reconciliation to Non-GAAP Operating Income, Non-GAAP
Interest
& Other Income (Expense), net, Non-GAAP Profit Before
Tax,
Non-GAAP Net Income, and Non-GAAP EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
|
$
|
12.2
|
|
|
|
$
|
34.4
|
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Restructuring Costs
|
|
|
|
3.2
|
|
|
|
|
-
|
|
|
Acquisition-Related Costs
|
|
|
|
0.6
|
|
|
|
|
0.7
|
|
|
Purchased Intangible Amortization
|
|
|
|
5.1
|
|
|
|
|
5.1
|
|
|
Other Costs
|
|
|
|
2.5
|
|
|
|
|
3.4
|
|
|
Total Non-GAAP Adjustments:
|
|
|
$
|
11.4
|
|
|
|
$
|
9.2
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
|
$
|
23.6
|
|
|
|
$
|
43.6
|
|
|
Non-GAAP Operating Margin
|
|
|
|
6.0
|
%
|
|
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
GAAP Interest & Other Income (Expense), net
|
|
|
|
(3.9
|
)
|
|
|
|
(7.5
|
)
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Gain on disposal of product line
|
|
|
|
(0.9
|
)
|
|
|
|
-
|
|
|
Non-GAAP Interest & Other Income (Expense), net
|
|
|
$
|
(4.8
|
)
|
|
|
$
|
(7.5
|
)
|
|
Non-GAAP Profit Before Tax
|
|
|
|
18.8
|
|
|
|
|
36.1
|
|
|
|
|
|
|
|
|
|
|
Income Tax Provision
|
|
|
|
(5.1
|
)
|
|
|
|
(12.3
|
)
|
|
Non-GAAP Tax Rate
|
|
|
|
27.1
|
%
|
|
|
|
34.1
|
%
|
|
|
|
|
|
|
|
|
|
Minority Interest
|
|
|
|
(0.3
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income Attributable to Bruker
|
|
|
|
13.4
|
|
|
|
|
23.8
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding (Diluted)
|
|
|
|
168.1
|
|
|
|
|
166.9
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings Per Share
|
|
|
$
|
0.08
|
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
|
|
|
|
|
|
|
GAAP Gross Profit
|
|
|
$
|
174.5
|
|
|
|
$
|
190.4
|
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Acquisition-Related Costs
|
|
|
|
0.2
|
|
|
|
|
0.7
|
|
|
Purchased Intangible Amortization
|
|
|
|
4.8
|
|
|
|
|
4.3
|
|
|
Total Non-GAAP Adjustments:
|
|
|
$
|
5.0
|
|
|
|
$
|
5.0
|
|
|
Non-GAAP Gross Profit
|
|
|
$
|
179.5
|
|
|
|
$
|
195.4
|
|
|
Non-GAAP Gross Margin
|
|
|
|
45.6
|
%
|
|
|
|
48.2
|
%
|
|
|
|
|
|
|
|
|
* Please refer to our press release for a full explanation for the use
of non-GAAP measures.
Source: Bruker Corporation
Bruker Corporation
Joshua Young, 978-667-9580, ext. 1479
Vice
President, Investor Relations
joshua.young@Bruker.com