- Fiscal Year 2015 (FY-15) GAAP EPS grows
82% year-over-year to $0.60
- FY-15 non-GAAP operating margin
increases 310 basis points year-over-year to 13.3%
- FY-15 non-GAAP EPS grows 19%
year-over-year to $0.89
- FY-15 free cash flow more than doubles
to $195 million
Bruker Corporation (NASDAQ: BRKR) today reported financial
results for its fourth quarter ended December 31, 2015.
Bruker’s revenues for the fourth quarter of 2015 were $478.2
million, a decline of 5.9 percent compared to revenues of $508.0
million in the fourth quarter of 2014. Excluding a 0.6 percent net
negative effect from acquisitions & divestitures, and a 7.8
percent negative effect from changes in foreign exchange rates,
Bruker reported year-over-year organic revenue growth of 2.5
percent for the fourth quarter of 2015.
Fourth quarter 2015 GAAP earnings per diluted share (EPS) were
$0.36, compared to GAAP EPS of $0.15 in the fourth quarter of 2014.
Bruker reported fourth quarter 2015 non-GAAP EPS of $0.38, an
increase of 27 percent compared to non-GAAP EPS of $0.30 in the
fourth quarter of 2014. The Company generated $138.2 million in
free cash flow in the fourth quarter of 2015, a $76.0 million
increase from free cash flow of $62.2 million in the fourth quarter
of 2014. A reconciliation of GAAP to non-GAAP financial measures is
provided in the financial tables accompanying this press
release.
For the full year 2015, Bruker’s revenues declined 10.2 percent
to $1.62 billion, compared to $1.81 billion for 2014. Excluding a
2.1 percent net negative effect from acquisitions &
divestitures, and a 10.2 percent negative effect from changes in
foreign exchange rates, Bruker reported year-over-year organic
revenue growth of 2.1% percent for 2015.
Bruker reported GAAP EPS of $0.60 for the full year 2015,
compared to $0.33 for 2014. Non-GAAP EPS for 2015 were $0.89, a 19
percent increase compared to non-GAAP EPS of $0.75 for 2014. For
2015, Bruker reported $195.0 million in free cash flow, compared to
$80.5 million in 2014.
“Our performance improvements in 2015 are clear evidence that
the initiatives we have implemented over the past three years are
beginning to make Bruker a stronger and more profitable company,”
said Frank Laukien, President & CEO of Bruker. “During 2015, we
increased our non-GAAP operating margin by more than 300 basis
points, we more than doubled our free cash flow, and our return on
invested capital (RoIC) reached 21.8 percent, despite currency
headwinds and weak demand in some of our markets. Our three-year
transformation has enabled us to strengthen our portfolio, lower
our fixed costs, reduce our working capital, reinvest in profitable
growth opportunities, and improve our processes and systems.
Dr. Laukien continued: “As we look ahead to 2016, we believe we
can further improve our profitability by strengthening our
commercial practices, implementing lean manufacturing and expanding
our outsourcing programs. We also will continue to invest in new
products and expand into adjacent markets that we believe will
generate profitable revenue growth in the future. With a stronger
foundation now in place, we expect to deliver gradually
accelerating organic revenue growth, further margin increases, and
improvements in our working capital ratio in 2016.”
2016 Financial Outlook
For the full year 2016, Bruker expects organic revenue growth of
approximately 3 percent. The Company expects to increase its 2016
non-GAAP operating profit margin by approximately 100 basis points
year-over-year. With an assumed 2016 non-GAAP tax rate range of
25%-28%, Bruker expects non-GAAP earnings per share to be between
$0.97 and $1.02 in 2016.
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 1-866-777-2509 or +1-412-317-5413, and referencing
“Bruker’s Fourth Quarter and Full Year 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: 10080524. The replay will be available beginning
one hour after the end of the conference through February 17,
2016.
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; return on invested capital; 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 define
return on invested capital (RoIC) as non-GAAP operating profit
after income tax and minority interest divided by average total
capital, which we define as debt plus equity minus cash. We believe
that RoIC is an important measure for how effectively the Company
invests its capital.
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 Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions) December 31, December 31,
2015 2014 ASSETS
Current assets: Cash and cash equivalents $ 267.1 $ 319.5
Short-term investments 201.2 178.0 Accounts receivable, net 234.7
293.2 Inventories 422.0 477.4 Other current assets 106.6
98.2 Total current assets 1,231.6 1,366.3 Property,
plant and equipment, net 231.1 249.9 Intangibles, net and other
long-term assets 268.2 248.6 Total assets $
1,730.9 $ 1,864.8
LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Current portion of long-term
debt $ 0.7 $ 0.8 Accounts payable 72.1 76.0 Customer advances 178.3
189.5 Other current liabilities 303.5 316.4 Total
current liabilities 554.6 582.7 Long-term debt 266.0 354.2
Other long-term liabilities 177.4 156.2 Total shareholders'
equity 732.9 771.7 Total liabilities and
shareholders' equity $ 1,730.9 $ 1,864.8
Bruker
Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) Three Months Ended Twelve
Months Ended (in millions, except per share amounts)
December 31, December 31, 2015 2014
2015 2014 Revenues $ 478.2 $ 508.0 $ 1,623.8 $
1,808.9 Cost of revenues 266.7 292.2
915.2 1,045.6 Gross profit 211.5
215.8 708.6 763.3 Operating expenses: Selling, general and
administrative 103.0 118.5 392.2 451.0 Research and development
36.7 41.6 145.7 174.2 Impairment of assets 0.3 4.6 4.6 11.5 Other
charges, net 0.8 6.6 20.4
21.2 Total operating expenses 140.8
171.3 562.9 657.9
Operating income 70.7 44.5 145.7 105.4 Interest and other
income (expense), net (3.4 ) (1.0 ) (17.7 )
(4.1 ) Income before income taxes and noncontrolling
interest in consolidated subsidiaries 67.3 43.5 128.0 101.3 Income
tax provision 5.3 17.0 23.1
41.7 Consolidated net income 62.0 26.5
104.9 59.6 Net income attributable to noncontrolling interests in
consolidated subsidiaries 0.6 0.4
3.3 2.9 Net income attributable to
Bruker Corporation $ 61.4 $ 26.1 $ 101.6 $
56.7 Net income per common share attributable to
Bruker Corporation shareholders: Basic $ 0.37 $ 0.16
$ 0.60 $ 0.34 Diluted $ 0.36 $ 0.15 $
0.60 $ 0.33 Weighted average common shares
outstanding: Basic 167.8 168.2
168.2 167.8 Diluted 168.7
169.6 169.1 169.5
Bruker Corporation CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (unaudited) (in millions) Three
Months Ended December 31, Twelve Months Ended December
31, 2015 2014 2015 2014 Cash flows
from operating activities: Consolidated net income $ 62.0 $ 26.5
$
104.9 $ 59.6 Adjustments to reconcile consolidated net income to
cash flows from operating activities: Depreciation and amortization
13.3 12.1 53.3 59.7 Write-down of demonstration inventories to net
realizable value 4.4 5.6 19.4 28.2 Stock-based compensation expense
2.2 2.3 8.0 9.4 Deferred income taxes (28.3 ) (9.2 ) (29.4 ) (9.2 )
Loss (gain) on disposal of product line - 0.7 0.2 (8.3 ) Impairment
and other non-cash expenses, net 17.0 3.1 26.5 14.2 Changes in
operating assets and liabilities, net of acquisitions and
divestitures: Accounts receivable 7.3 (36.0 ) 45.0 (14.5 )
Inventories 35.3 51.5 (5.4 ) 4.6 Accounts payable and accrued
expenses 7.8 (15.7 ) 12.6 9.0 Income taxes payable, net 27.2 20.4
22.7 5.6 Deferred revenue 5.0 10.7 3.8 12.9 Customer advances 11.1
(13.1 ) 1.4 (48.2 ) Other changes in operating assets and
liabilities, net (14.7 ) 10.4 (33.8 )
(8.7 ) Net cash provided by operating activities
149.6 69.3 229.2 114.3
Cash flows from investing activities: Purchases of
short-term investments (81.4 ) (90.8 ) (159.4 ) (211.6 ) Maturities
of short-term investments 77.4 19.0 118.7 19.0 Cash paid for
acquisitions, net of cash acquired (28.6 ) - (28.6 ) (3.9 )
Proceeds from disposal of product line 0.2 12.5 0.2 25.3 Purchases
of property, plant and equipment (11.4 ) (7.1 ) (34.2 ) (33.8 )
Proceeds from sales of property, plant and equipment 0.2
0.2 0.9 3.1 Net
cash used in investing activities (43.6 ) (66.2 )
(102.4 ) (201.9 ) Cash flows from financing
activities: Proceeds from revolving lines of credit 25.0 - 42.0 -
Repayment of revolving lines of credit (129.5 ) - (129.5 ) -
Repayment of other debt, net (0.2 ) (0.1 ) (0.6 ) (0.8 ) Proceeds
from issuance of common stock, net 3.8 0.6 10.8 7.9 Payment of
contingent consideration - - (3.0 ) - Repurchase of common stock
(65.1 ) - (90.0 ) - Changes in restricted cash - - 1.4 0.7 Cash
payments to noncontrolling interest (0.8 ) - (1.3 ) (1.1 ) Excess
tax benefit related to stock option awards - -
2.2 - Net cash (used in)
provided by financing activities (166.8 ) 0.5
(168.0 ) 6.7 Effect of exchange rate changes
on cash and cash equivalents (3.1 ) (13.3 )
(11.2 ) (38.3 ) Net change in cash and cash equivalents
(63.9 ) (9.7 ) (52.4 ) (119.2 ) Cash and cash equivalents at
beginning of period 331.0 329.2
319.5 438.7 Cash and cash equivalents at end
of period $ 267.1 $ 319.5 $ 267.1 $ 319.5
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,
2015 2014 2015 2014
Reconciliation of Non-GAAP Operating
Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income, and
Non-GAAP EPS
GAAP Operating Income $ 70.7 $ 44.5 $ 145.7 $ 105.4 Non-GAAP
Adjustments: Restructuring Costs 8.1 6.8 29.3 36.1
Acquisition-Related Costs (3.3 ) 1.0 (4.7 ) 4.0 Purchased
Intangible Amortization 5.3 5.1 20.8 20.2 Other Costs 2.9
6.3 24.1 18.7
Total Non-GAAP Adjustments: $ 13.0 $ 19.2 $ 69.5
$ 79.0
Non-GAAP Operating Income $ 83.7
$ 63.7 $ 215.2 $ 184.4 Non-GAAP Operating Margin
17.5
%
12.5
%
13.3
%
10.2
%
Non-GAAP Interest & Other Income (Expense), net (3.4 )
(0.3 ) (17.5 ) (10.0 )
Non-GAAP Profit Before Tax 80.3 63.4
197.7 174.4 Non-GAAP Income Tax Provision (15.3 ) (12.7 )
(43.4 ) (43.8 ) Non-GAAP Tax Rate
19.1
%
20.0
%
22.0
%
25.1
%
Minority Interest (0.6 ) (0.4 ) (3.3 ) (2.9 )
Non-GAAP Net Income Attributable to Bruker 64.4 50.3 151.0
127.7 Weighted Average Shares Outstanding (Diluted) 168.7
169.6 169.1 169.5
Non-GAAP Earnings Per Share $ 0.38 $ 0.30
$ 0.89 $ 0.75
Reconciliation of GAAP and Non-GAAP Gross Profit
GAAP Gross
Profit $ 211.5 $ 215.8 $ 708.6 $ 763.3 Non-GAAP Adjustments:
Restructuring Costs 5.3 2.7 21.2 25.0 Acquisition-Related Costs 1.3
0.2 2.5 1.1 Purchased Intangible Amortization 4.7
4.5 18.7 18.3 Total
Non-GAAP Adjustments: 11.3 7.4
42.4 44.4
Non-GAAP Gross Profit $ 222.8
$ 223.2 $ 751.0 $ 807.7 Non-GAAP Gross Margin
46.6
%
43.9
%
46.2
%
44.7
%
Reconciliation of GAAP and Non-GAAP Interest &
Other Income (Expense), net
GAAP Interest & Other Income
(Expense), net $ (3.4 ) $ (1.0 ) $ (17.7 ) $ (4.1 ) Non-GAAP
Adjustments: Sale of Product Line - 0.7 0.2 (8.3 ) Other -
- - 2.4
Non-GAAP Interest & Other Income (Expense), net
$ (3.4 ) $ (0.3 )
$ (17.5 ) $ (10.0 )
*
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/20160210006448/en/
Bruker CorporationJoshua Young, +1-978-667–9580, ext. 1479Vice
President, Investor Relations & Corporate
Developmentjoshua.young@Bruker.com
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