- Q1 2021 revenue growth of 30.8% year-over-year, organic
revenue growth of 23.8%
- Q1 2021 GAAP EPS of $0.37; non-GAAP EPS of $0.44, compared
to $0.14 in Q1 2020
- Raising fiscal year 2021 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, 2021.
First Quarter 2021 Financial Results
Bruker’s revenues for the first quarter of 2021 were $554.7
million, an increase of 30.8% compared to $424.0 million in the
first quarter of 2020. In the first quarter of 2021, on an organic
basis, Bruker’s revenues grew 23.8% year-over-year. Foreign
currency translation had a positive effect of 6.2% and growth from
acquisitions added 0.8%.
First quarter 2021 Bruker Scientific Instruments (BSI) revenues
of $506.2 million increased 32.7% compared to the first quarter of
2020, including organic revenue growth of 25.6%. The revenue growth
reflected strong demand for Bruker’s high performance life science
tools, scientific instruments and diagnostic solutions, with
greater than 20% year-over-year organic revenue increases in all
three Bruker Scientific Instruments (BSI) groups. First quarter
2021 Bruker Energy & Supercon Technologies (BEST) revenues of
$52.4 million increased 13.4% compared to the first quarter of
2020, including an organic revenue increase, net of intercompany
eliminations, of 7.1%.
First quarter 2021 GAAP operating income was $89.1 million,
compared to $16.4 million in the first quarter of 2020,
representing GAAP operating margins of 16.1% and 3.9%,
respectively. Non-GAAP operating income in the first quarter of
2021 was $102.2 million, compared to $32.2 million in the first
quarter of 2020. Bruker’s first quarter 2021 non-GAAP operating
margin was 18.4%, compared to 7.6% in the first quarter of
2020.
First quarter 2021 GAAP diluted earnings per share (EPS) were
$0.37, compared to $0.07 in the first quarter of 2020. First
quarter 2021 non-GAAP diluted EPS were $0.44, compared to $0.14 in
the first quarter of 2020. The year-over-year increases in the
Company’s GAAP and non-GAAP operating income, operating margins and
EPS were due to the higher revenues, improved gross margins and
favorable operating expense leverage.
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 an excellent start to 2021, with strong year-over-year
revenue growth and remarkable operating performance improvements.
During the quarter, we experienced strong revenue growth for our
Project Accelerate products and solutions, particularly for
proteomics and biopharma solutions, as well as for our core
scientific instruments from strengthening academic, applied,
industrial and semiconductor markets.”
Dr. Laukien continued: “With robust Scientific Instruments order
trends in the first quarter, we are raising our full year 2021
revenue growth, operating margin and earnings outlook. We believe
Bruker is now well positioned for a strong year, as we invest in
our very large Project Accelerate 2.0 opportunities in proteomics,
spatial biology and diagnostics, as well as in operational
excellence and productivity throughout Bruker.”
Fiscal Year 2021 (FY 2021) Financial Outlook
Bruker is increasing its FY 2021 revenue growth, operating
margin expansion and EPS outlook to reflect strong demand for its
high-performance life science tools, scientific instruments and
diagnostic solutions.
For FY 2021, Bruker now expects, in comparison to FY 2020:
- organic revenue growth of approximately 11% to 13%, an increase
of 4% compared to prior guidance,
- a foreign currency revenue tailwind of approximately 3%,
- reported revenue growth of approximately 14% to 16%,
- non-GAAP operating margin expansion of 210 bps to 250 bps, an
increase of 60 bps compared to prior guidance. This compares to
non-GAAP operating margin of 16.0% in FY 2020 and includes
accelerated R&D investments of approximately 10% of revenue as
well as a foreign currency headwind of approximately 50 basis
points,
- non-GAAP EPS of $1.82 to $1.87, an increase of $0.10 compared
to prior guidance, and representing a year-over-year increase of
35% to 39%.
Bruker’s revenue growth, non-GAAP operating margin expansion and
non-GAAP EPS guidance for FY 2021 are based on foreign exchange
rates as of April 30, 2021.
For the Company’s outlook for FY 2021 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 5, 2021 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 2021 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 2021 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 10154422. The replay will be available beginning
one hour after the end of the conference call through June 5,
2021.
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 and free
cash flow, 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.
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 2021 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 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 2021
financial outlook, including our outlook for revenue growth,
foreign currency impact, non-GAAP operating margin, non-GAAP EPS
and non-GAAP tax rate; management’s expectations for future
financial and operational performance and business outlook; the
impact of the COVID-19 pandemic; future economic conditions; the
market demand for our products; the impact of Project Accelerate;
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 and the length and severity of any resulting recession,
the availability and adoption of vaccines, continued volatility in
the capital markets, risks in the supply chain, including for
semiconductor chips, the integration and assumption of liabilities
of businesses we have acquired or may acquire in the future, the
impact of changes in law, including changes in tax rates,
fluctuations in foreign currency exchange rates, our ability to
successfully implement our restructuring initiatives and other cost
reduction initiatives, changing technologies, product development
and market acceptance of our products, the success of our R&D
investment initiatives, the cost and pricing of our products,
manufacturing, competition, loss of key personnel, dependence on
collaborative partners, key suppliers and contract manufacturers,
capital spending and government funding policies, changes in
governmental regulations, international trade disputes, 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, 2020, 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
(in millions)
March 31, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
696.8
$
681.8
Short-term investments
50.0
50.0
Accounts receivable, net
326.0
335.3
Inventories
700.7
692.3
Other current assets
172.7
165.6
Total current assets
1,946.2
1,925.0
Property, plant and equipment, net
384.1
395.5
Goodwill, intangible assets, net and other
long-term assets
704.6
728.5
Total assets
$
3,034.9
$
3,049.0
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Current portion of long-term debt
$
108.4
$
2.2
Accounts payable
152.3
134.6
Customer advances
182.2
189.2
Other current liabilities
500.6
465.9
Total current liabilities
943.5
791.9
Long-term debt
715.8
842.3
Other long-term liabilities
393.9
440.5
Total shareholders’ equity
981.7
974.3
Total liabilities and shareholders’
equity
$
3,034.9
$
3,049.0
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in millions, except per share
data)
Three Months Ended March
31,
2021
2020
Revenue
$
554.7
$
424.0
Cost of revenue
276.0
231.7
Gross profit
278.7
192.3
Operating expenses:
Selling, general and administrative
131.8
121.2
Research and development
54.8
48.5
Other charges, net
3.0
6.2
Total operating expenses
189.6
175.9
Operating income
89.1
16.4
Interest and other income (expense),
net
(3.8)
(2.9)
Income before income taxes and
noncontrolling interest in consolidated subsidiaries
85.3
13.5
Income tax provision
27.5
2.9
Consolidated net income
57.8
10.6
Net income attributable to noncontrolling
interest in consolidated subsidiaries
1.1
0.1
Net income attributable to Bruker
Corporation
$
56.7
$
10.5
Net income per common share attributable
to Bruker Corporation shareholders:
Basic
$
0.37
$
0.07
Diluted
$
0.37
$
0.07
Weighted average common shares
outstanding:
Basic
151.8
154.2
Diluted
153.2
155.4
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in millions)
Three Months Ended March
31,
2021
2020
Cash flows from operating activities:
Consolidated net income
$
57.8
$
10.6
Adjustments to reconcile consolidated net
income to cash flows from operating activities:
Depreciation and amortization
22.3
19.0
Stock-based compensation expense
3.8
3.3
Deferred income taxes
4.9
1.1
Other non-cash expenses, net
4.9
11.7
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
0.8
29.5
Inventories
(41.6)
(61.0)
Accounts payable and accrued expenses
33.2
19.1
Income taxes payable, net
12.4
(15.0)
Deferred revenue
14.1
20.6
Customer advances
2.5
16.5
Other changes in operating assets and
liabilities, net
(17.1)
(20.4)
Net cash provided by operating
activities
98.0
35.0
Cash flows from investing activities:
Purchases of short-term investments
—
(50.0)
Cash paid for acquisitions, net of cash
acquired
(4.0)
(22.0)
Purchases of property, plant and
equipment
(24.7)
(30.5)
Proceeds from sales of property, plant and
equipment
1.2
—
Net proceeds from cross-currency swap
agreements
3.5
1.9
Net cash used in investing activities
(24.0)
(100.6)
Cash flows from financing activities:
Repayments of revolving lines of
credit
—
197.5
Proceeds (repayment) of other debt,
net
(0.1)
0.9
Proceeds from issuance of common stock,
net
1.1
0.6
Payment of contingent consideration
(0.4)
(0.3)
Payment of dividends to common
stockholders
(6.1)
(6.2)
Purchase of common stock
(32.6)
—
Cash payments to noncontrolling
interests
—
(1.2)
Net cash (used in) provided by financing
activities
(38.1)
191.3
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(20.9)
(8.7)
Net change in cash, cash equivalents and
restricted cash
15.0
117.0
Cash, cash equivalents and restricted cash
at beginning of period
685.4
681.9
Cash, cash equivalents and restricted cash
at end of period
$
700.4
$
798.9
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,
2021
2020
GAAP operating income
$
89.1
$
16.4
Non-GAAP adjustments:
Restructuring costs
2.4
2.3
Acquisition-related costs
0.9
(1.1)
Purchased intangible amortization
9.0
8.7
Other costs
0.8
5.9
Total non-GAAP adjustments
$
13.1
$
15.8
Non-GAAP operating income
$
102.2
$
32.2
Non-GAAP operating margin
18.4%
7.6%
Non-GAAP interest & other expense,
net
(3.8)
(2.9)
Non-GAAP profit before tax
98.4
29.3
Non-GAAP income tax provision
(30.6)
(7.0)
Non-GAAP tax rate
31.1%
23.9%
Minority interest
(1.1)
(0.1)
Non-GAAP net income attributable to
Bruker
66.7
22.2
Weighted average shares outstanding
(diluted)
153.2
155.4
Non-GAAP earnings per share
$
0.44
$
0.14
Reconciliation of GAAP Gross Profit to
Non-GAAP Gross Profit
Three Months Ended March
31,
2021
2020
GAAP gross profit
278.7
192.3
Non-GAAP adjustments:
Restructuring
1.1
0.8
Purchased intangible amortization
4.5
4.9
Other costs
—
0.1
Total non-GAAP adjustments
5.6
5.8
Non-GAAP gross profit
284.3
198.1
Non-GAAP gross margin
51.3%
46.7%
Reconciliation of GAAP Selling, General
and Administrative (SG&A) Expenses to Non-GAAP SG&A
Expenses
Three Months Ended March
31,
2021
2020
GAAP SG&A expenses
$
131.8
$
121.2
Non-GAAP adjustments:
Purchased intangible amortization
(4.5)
(3.8)
Non-GAAP SG&A expenses
$
127.3
$
117.4
Bruker Corporation
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES - Continued
(unaudited and in millions, except per
share data)
Reconciliation of GAAP Tax Rate to
Non-GAAP Tax Rate
Three Months Ended March
31,
2021
2020
GAAP tax rate
32.2%
21.5%
Non-GAAP adjustments:
Tax impact of non-GAAP adjustments
(0.4%)
(0.2%)
Other discrete items
(0.7%)
2.6%
Total non-GAAP adjustments
(1.1%)
2.4%
Non-GAAP tax rate
31.1%
23.9%
Reconciliation of GAAP Earnings Per
Share to Non-GAAP Earnings Per Share (Diluted)
Three Months Ended March
31,
2021
2020
GAAP earnings per share
(diluted)
$
0.37
$
0.07
Non-GAAP adjustments:
Restructuring costs
0.02
0.01
Acquisition-related costs
0.01
(0.01)
Purchased intangible amortization
0.06
0.06
Other costs
0.01
0.04
Income tax rate differential
(0.03)
(0.03)
Total non-GAAP adjustments
0.07
0.07
Non-GAAP earnings per share
(diluted)
$
0.44
$
0.14
Reconciliation of GAAP Operating Cash
Flow to Non-GAAP Free Cash Flow
Three Months Ended March
31,
2021
2020
GAAP operating cash flow
$
98.0
$
35.0
Non-GAAP adjustments:
Purchases of property, plant and
equipment
(24.7)
(30.5)
Non-GAAP Free Cash Flow
$
73.3
$
4.5
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
Bruker Corporation
REVENUE
(unaudited and in millions)
Three Months Ended March
31,
2021
2020
Revenue by Group:
Bruker BioSpin
$
159.4
$
120.9
Bruker CALID
192.4
140.5
Bruker Nano
154.4
120.1
BEST
52.4
46.2
Eliminations
(3.9)
(3.7)
Total revenue
$
554.7
$
424.0
Three Months Ended March
31,
2021
2020
Revenue by End Customer
Geography:
United States
$
119.0
$
109.4
Europe
219.9
144.9
Asia Pacific
180.5
137.2
Other
35.3
32.5
Total revenue
$
554.7
$
424.0
Reconciliation of GAAP Reported Revenue
Growth to Organic Revenue Growth
Three Months Ended March
31,
2021
2020
Total Bruker
GAAP revenue as of prior comparable
period
$
424.0
$
461.4
Non-GAAP adjustments:
Acquisitions and divestitures
3.2
4.3
Organic
100.7
(36.2)
Currency
26.8
(5.5)
Total non-GAAP adjustments
130.7
(37.4)
Revenue
$
554.7
$
424.0
Revenue growth
30.8%
(8.1%)
Organic revenue growth
23.8%
(7.9%)
Three Months Ended March
31,
2021
2020
Bruker Scientific Instruments
(1)
GAAP revenue as of prior comparable
period
$
381.5
$
416.8
Non-GAAP adjustments:
Acquisitions and divestitures
3.2
3.3
Organic
97.7
(34.3)
Currency
23.8
(4.3)
Total non-GAAP adjustments
124.7
(35.3)
Revenue
$
506.2
$
381.5
Revenue growth
32.7%
(8.5%)
Organic revenue growth
25.6%
(8.2%)
(1) Bruker Scientific Instruments (BSI) revenue reflects the sum
of the BSI Life Science and BSI Nano Segments as presented in our
2020 Form 10-K.
Bruker Corporation
REVENUE - Continued
(unaudited and in millions)
Reconciliation of GAAP Reported Revenue
Growth to Organic Revenue Growth
Three Months Ended March
31,
2021
2020
BEST, net of Intercompany
Eliminations
GAAP revenue as of prior comparable
period
$
42.5
$
44.6
Non-GAAP adjustments:
Acquisitions and divestitures
—
1.0
Organic
3.0
(1.9)
Currency
3.0
(1.2)
Total non-GAAP adjustments
6.0
(2.1)
Revenue
$
48.5
$
42.5
Revenue growth
14.1%
(4.7%)
Organic revenue growth
7.1%
(4.3%)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210505005197/en/
Miroslava Minkova Senior Director, Investor Relations &
Corporate Development Bruker Corporation T: +1 (978) 663–3660, ext.
1479 E: Investor.Relations@bruker.com
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