BILLERICA, Mass.--(BUSINESS WIRE)--
Bruker Corporation (NASDAQ: BRKR) today reported financial results for
its first quarter ended March 31, 2014.
Bruker’s revenues for the first quarter of 2014 grew by 7.7 percent to
$423.7 million, compared to $393.4 million in the first quarter of 2013.
Excluding a 1.1 percent net positive effect from acquisitions and
divestitures, Bruker reported year-over-year organic revenue growth of
6.6 percent in the first quarter of 2014. Changes in foreign exchange
rates had a negligible effect on revenues during the quarter.
Bruker reported first quarter 2014 GAAP operating income of $20.6
million, or 4.9% of revenues, compared to $12.2 million, or 3.1% of
revenues, in the first quarter of 2013. First quarter 2014 GAAP earnings
per diluted share (EPS) were $0.05, compared to EPS of $0.03 in the
first quarter of 2013.
On a non-GAAP basis, Bruker reported first quarter 2014 operating income
of $32.1 million, or 7.6% of revenues, compared to $23.6 million, or
6.0% of revenues, in the first quarter of 2013. First quarter 2014
non-GAAP EPS were $0.11, compared to $0.08 in the first quarter of 2013.
Free cash flow in the first quarter of 2014 was $9.3 million, a $42.1
million increase compared to ($32.8) million in the first quarter of
2013. A reconciliation of GAAP to non-GAAP financial measures is
provided in the Company’s financial tables accompanying this press
release.
“Our year is off to a reasonable start, with year-over-year revenue
growth and non-GAAP operating margin expansion compared to a relatively
weak first quarter of 2013,” said Frank Laukien, President and CEO of
Bruker. “Our research, applied and clinical markets are healthy, whereas
our industrial markets grew slowly after declining last year. Looking
ahead, we remain on track to deliver our full-year 2014 guidance, but we
may see variability in our quarterly results.”
Bruker is maintaining its full year 2014 guidance of year-over-year
revenue growth of 3 to 4 percent and non-GAAP earnings per share growth
of 10 to 14 percent.
“Good revenue growth combined with control over operating expenses
enabled us to deliver solid operating margin expansion in the first
quarter compared to Q1 2013,” said Charles Wagner, Chief Financial
Officer of Bruker. “We generated growth in all of our Groups and drove
year-over-year improvements in working capital and free cash flow. Our
focus for the remainder of the year will be on continuing to transform
our supply chain and launching initiatives that will further lower our
production costs.”
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 Daylight 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 First
Quarter 2014 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: 10045335. The replay
will be available beginning one hour after the end of the conference
through May 13, 2014 at 9:00 a.m. EDT.
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, 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, 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, 2013. 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,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
454.0
|
|
|
$
|
438.7
|
|
Accounts receivable, net
|
|
|
|
295.0
|
|
|
|
307.6
|
|
Inventories
|
|
|
|
620.5
|
|
|
|
589.8
|
|
Other current assets
|
|
|
|
107.2
|
|
|
|
95.8
|
|
Total current assets
|
|
|
|
1,476.7
|
|
|
|
1,431.9
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
296.7
|
|
|
|
299.5
|
|
Intangible and other long-term assets
|
|
|
|
254.3
|
|
|
|
256.9
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
2,027.7
|
|
|
$
|
1,988.3
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
0.7
|
|
|
$
|
0.7
|
|
Accounts payable
|
|
|
|
116.4
|
|
|
|
74.8
|
|
Customer advances
|
|
|
|
251.2
|
|
|
|
258.6
|
|
Other current liabilities
|
|
|
|
302.8
|
|
|
|
314.5
|
|
Total current liabilities
|
|
|
|
671.1
|
|
|
|
648.6
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
354.1
|
|
|
|
354.3
|
|
Other long-term liabilities
|
|
|
|
134.2
|
|
|
|
135.2
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
868.3
|
|
|
|
850.2
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
2,027.7
|
|
|
$
|
1,988.3
|
|
|
|
|
|
|
|
|
|
|
|
Bruker Corporation
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(in millions, except per share amounts)
|
|
|
March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
423.7
|
|
|
|
$
|
393.4
|
|
|
Cost of revenues
|
|
|
|
244.0
|
|
|
|
|
218.9
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
179.7
|
|
|
|
|
174.5
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
109.5
|
|
|
|
|
106.8
|
|
|
Research and development
|
|
|
|
46.0
|
|
|
|
|
49.4
|
|
|
Other charges, net
|
|
|
|
3.6
|
|
|
|
|
6.1
|
|
|
Total operating expenses
|
|
|
|
159.1
|
|
|
|
|
162.3
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
20.6
|
|
|
|
|
12.2
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
|
|
(4.9
|
)
|
|
|
|
(3.9
|
)
|
|
|
|
|
|
|
|
|
|
Income before income taxes and noncontrolling interest in
consolidated subsidiaries
|
|
|
|
15.7
|
|
|
|
|
8.3
|
|
|
Income tax provision
|
|
|
|
5.7
|
|
|
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income
|
|
|
|
10.0
|
|
|
|
|
5.7
|
|
|
Net income attributable to noncontrolling interests in
consolidated subsidiaries
|
|
|
|
1.3
|
|
|
|
|
0.3
|
|
|
Net income attributable to Bruker Corporation
|
|
|
$
|
8.7
|
|
|
|
$
|
5.4
|
|
|
|
|
|
|
|
|
|
|
Net income per common share attributable to Bruker Corporation
shareholders:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.05
|
|
|
|
$
|
0.03
|
|
|
Diluted
|
|
|
$
|
0.05
|
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
167.3
|
|
|
|
|
166.4
|
|
|
Diluted
|
|
|
|
169.4
|
|
|
|
|
168.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bruker Corporation
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Consolidated net income
|
|
|
$
|
10.0
|
|
|
|
$
|
5.7
|
|
|
Adjustments to reconcile consolidated net income to cash flows
|
|
|
|
|
|
|
|
from operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
15.2
|
|
|
|
|
15.2
|
|
|
Write-down of demonstration inventories to net realizable value
|
|
|
|
7.6
|
|
|
|
|
7.8
|
|
|
Stock-based compensation expense
|
|
|
|
2.0
|
|
|
|
|
1.8
|
|
|
Deferred income taxes
|
|
|
|
0.3
|
|
|
|
|
(2.6
|
)
|
|
Gain on disposal of product line
|
|
|
|
(0.3
|
)
|
|
|
|
(0.9
|
)
|
|
Other non-cash expenses, net
|
|
|
|
1.0
|
|
|
|
|
(0.3
|
)
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
12.7
|
|
|
|
|
8.7
|
|
|
Inventories
|
|
|
|
(37.9
|
)
|
|
|
|
(37.0
|
)
|
|
Accounts payable and accrued expenses
|
|
|
|
21.9
|
|
|
|
|
(7.8
|
)
|
|
Income taxes payable
|
|
|
|
2.0
|
|
|
|
|
(4.0
|
)
|
|
Deferred revenue
|
|
|
|
5.0
|
|
|
|
|
2.9
|
|
|
Customer advances
|
|
|
|
(7.6
|
)
|
|
|
|
3.7
|
|
|
Other changes in operating assets and liabilities, net
|
|
|
|
(13.4
|
)
|
|
|
|
(11.4
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
18.5
|
|
|
|
|
(18.2
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Cash paid for acquisitions, net of cash acquired
|
|
|
|
-
|
|
|
|
|
(0.8
|
)
|
|
Disposal of product line
|
|
|
|
0.7
|
|
|
|
|
0.5
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(9.2
|
)
|
|
|
|
(14.6
|
)
|
|
Sales of property, plant and equipment
|
|
|
|
0.6
|
|
|
|
|
0.6
|
|
|
Net cash used in investing activities
|
|
|
|
(7.9
|
)
|
|
|
|
(14.3
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Repayment of other debt, net
|
|
|
|
(0.2
|
)
|
|
|
|
(0.7
|
)
|
|
Proceeds from issuance of common stock, net
|
|
|
|
3.0
|
|
|
|
|
4.1
|
|
|
Changes in restricted cash
|
|
|
|
(0.3
|
)
|
|
|
|
(3.1
|
)
|
|
Net cash provided by financing activities
|
|
|
|
2.5
|
|
|
|
|
0.3
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
2.2
|
|
|
|
|
(9.0
|
)
|
|
Net change in cash and cash equivalents
|
|
|
|
15.3
|
|
|
|
|
(41.2
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
438.7
|
|
|
|
|
310.6
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
454.0
|
|
|
|
$
|
269.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bruker Corporation
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES* (unaudited)
|
|
|
|
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
Reconciliation of Non-GAAP Operating Income, Non-GAAP Profit
Before Tax, Non-GAAP Net Income, and Non-GAAP EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
|
$
|
20.6
|
|
|
|
$
|
12.2
|
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Restructuring Costs
|
|
|
|
2.4
|
|
|
|
|
3.2
|
|
|
Acquisition-Related Costs
|
|
|
|
1.1
|
|
|
|
|
0.6
|
|
|
Purchased Intangible Amortization
|
|
|
|
5.2
|
|
|
|
|
5.1
|
|
|
Other Costs
|
|
|
|
2.8
|
|
|
|
|
2.5
|
|
|
Total Non-GAAP Adjustments:
|
|
|
$
|
11.5
|
|
|
|
$
|
11.4
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
|
$
|
32.1
|
|
|
|
$
|
23.6
|
|
|
Non-GAAP Operating Margin
|
|
|
|
7.6
|
%
|
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
Non-GAAP Interest & Other Income (Expense), net
|
|
|
|
(5.2
|
)
|
|
|
|
(4.8
|
)
|
|
Non-GAAP Profit Before Tax
|
|
|
|
26.9
|
|
|
|
|
18.8
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income Tax Provision
|
|
|
|
(6.9
|
)
|
|
|
|
(5.1
|
)
|
|
Non-GAAP Tax Rate
|
|
|
|
25.5
|
%
|
|
|
|
27.1
|
%
|
|
|
|
|
|
|
|
|
|
Minority Interest
|
|
|
|
(1.3
|
)
|
|
|
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income Attributable to Bruker
|
|
|
|
18.7
|
|
|
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding (Diluted)
|
|
|
|
169.4
|
|
|
|
|
168.1
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings Per Share
|
|
|
$
|
0.11
|
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and Non-GAAP Gross Profit
|
|
|
|
|
|
|
|
GAAP Gross Profit
|
|
|
$
|
179.7
|
|
|
|
$
|
174.5
|
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Restructuring Costs
|
|
|
|
2.2
|
|
|
|
|
-
|
|
|
Acquisition-Related Costs
|
|
|
|
0.5
|
|
|
|
|
0.2
|
|
|
Purchased Intangible Amortization
|
|
|
|
4.8
|
|
|
|
|
4.8
|
|
|
Total Non-GAAP Adjustments:
|
|
|
|
7.5
|
|
|
|
|
5.0
|
|
|
Non-GAAP Gross Profit
|
|
|
$
|
187.2
|
|
|
|
$
|
179.5
|
|
|
Non-GAAP Gross Margin
|
|
|
|
44.2
|
%
|
|
|
|
45.6
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and Non-GAAP Interest & Other Income
(Expense), net
|
|
|
|
|
|
|
|
GAAP Interest & Other Income (Expense), net
|
|
|
$
|
(4.9
|
)
|
|
|
$
|
(3.9
|
)
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
Sale of Product Line
|
|
|
|
(0.3
|
)
|
|
|
|
(0.9
|
)
|
|
Non-GAAP Interest & Other Income (Expense), net
|
|
|
$
|
(5.2
|
)
|
|
|
$
|
(4.8
|
)
|
|
|
|
|
|
|
|
|
* Please refer to our press release for a full explanation for the use
of non-GAAP measures.
Source: Bruker Corporation