- Q4 2019 revenue growth of 8.4% and organic revenue growth of
5.2% year-over-year
- FY 2019 revenue growth of 9.3% and organic revenue growth of
5.7%
- Q4 2019 GAAP operating income of $117.7 million, non-GAAP
operating income of $132.5 million
- FY 2019 GAAP operating income of $300.9 million, non-GAAP
operating income of $364.0 million
Bruker Corporation (Nasdaq: BRKR) today announced certain
preliminary operating results for its fourth quarter and fiscal
year ended December 31, 2019. Bruker further indicated that the
Company’s Audit Committee of the Board of Directors has initiated
an internal investigation into an allegation recently received in
connection with the year-end close, primarily relating to income
tax matters including the effective income tax rate for 2019 and
the related income tax balance sheet accounts. Accordingly, Bruker
is not yet in a position to report final financial results
including its tax rate, EPS, cash flow and balance sheet for the
fourth quarter and fiscal year ended December 31, 2019.
Preliminary Fourth Quarter 2019 Operating Results
Bruker’s revenues for the fourth quarter of 2019 were $599.9
million, an increase of 8.4% compared to the fourth quarter of
2018. In the fourth quarter of 2019, Bruker’s year-over-year
organic revenue growth was 5.2%. Growth from acquisitions was 4.3%,
constant currency growth was 9.5%, while foreign currency
translation had a negative effect of 1.1%.
Fourth quarter 2019 Bruker Scientific Instruments (BSI) segment
revenues of $546.6 million increased 9.2% year-over-year, including
organic growth of 5.8%. Fourth quarter 2019 Bruker Energy &
Supercon Technologies (BEST) segment revenues of $57.7 million
increased 3.8% year-over-year. On an organic basis, BEST segment
revenues declined 0.5% year-over-year, net of intercompany
eliminations.
Fourth quarter 2019 GAAP operating income was $117.7 million,
compared to $106.4 million in the fourth quarter of 2018,
representing GAAP operating margins of 19.6% and 19.2%,
respectively. Non-GAAP operating income was $132.5 million,
compared to $122.8 million in the fourth quarter of 2018. Bruker’s
fourth quarter 2019 non-GAAP operating margin was 22.1%, compared
to 22.2% in the fourth quarter of 2018.
Preliminary Fiscal Year 2019 Operating Results
In fiscal year 2019, Bruker’s revenues were $2,072.6 million, an
increase of 9.3% from $1,895.6 million in 2018. In fiscal year
2019, Bruker’s organic revenue growth was 5.7% year-over-year.
Growth from acquisitions was 6.3%, constant currency growth was
12.0%, while foreign currency translation had a negative effect of
2.7%.
Fiscal year 2019 BSI segment revenues of $1,877.6 million
increased 10.0% year-over-year, including organic growth of 5.8%.
Fiscal year 2019 BEST segment revenues of $209.9 million increased
7.8% year-over-year, including organic growth of 4.9%, net of
intercompany eliminations.
Fiscal year 2019 GAAP operating income was $300.9 million,
compared to $262.4 million in 2018, representing GAAP operating
margins of 14.5% and 13.8%, respectively. Fiscal year 2019 non-GAAP
operating income was $364.0 million, compared to $317.9 million in
2018. Bruker’s non-GAAP operating margin in fiscal year 2019 was
17.6%, an increase of 80 basis points, compared to 16.8% in
2018.
A reconciliation of non-GAAP to GAAP financial measures is
provided in the tables accompanying this press release.
Bruker President and CEO Frank Laukien commented: “Our fourth
quarter capped off a strong year for Bruker operationally. In 2019,
we combined organic revenue growth of 5.7% with accretive
acquisitions to achieve 12% constant-currency growth. Our revenues
exceeded $2 billion for the first time, and Bruker’s non-GAAP
operating margin reached 17.6%. We have continued to invest in our
Project Accelerate initiatives, particularly in functional
structural biology by GHz-class NMR, in 4D proteomics on our novel
timsTOF platform, and in clinical microbiology on our
market-leading MALDI Biotyper platform.”
Dr. Laukien concluded: “Our Bruker Management Process has
enabled us to make excellent operational progress in 2019, and we
believe we enter 2020 well-positioned to continue to drive
profitable growth. We expect to further advance our dual strategy
of Project Accelerate, complemented by Operational Excellence. Our
outlook for FY 2020 includes organic revenue growth of 4% to 5%,
and non-GAAP operating margin expansion of 70 to 90 basis points
compared to FY 2019.”
Fiscal Year 2020 (FY 2020) Preliminary Revenue and Operating
Margin Outlook
For FY 2020, Bruker projects year-over-year organic revenue
growth of 4% to 5% and non-GAAP operating margin expansion of 70 to
90 basis points compared to FY 2019. Bruker expects to provide FY
2020 EPS guidance, when we report our final FY 2019 financial
results.
Bruker’s preliminary FY 2020 outlook does not include a
potential negative impact from the COVID-19 coronavirus outbreak on
full year results, as such impact is not estimable at this
time.
For our outlook for FY 2020 non-GAAP operating margin, we are
not able to provide without unreasonable effort the most directly
comparable GAAP financial measure, or reconciliations to such GAAP
financial measure 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.
Internal Investigation
Bruker also announced that the Company’s Audit Committee of the
Board of Directors has initiated an internal investigation into an
allegation recently received in connection with the year-end close,
primarily relating to income tax matters including the effective
income tax rate for 2019 and the related income tax balance sheet
accounts. The Audit Committee is overseeing the investigation with
the assistance of independent, experienced external legal counsel.
The investigation is in its early stages and the Company cannot
predict its duration or outcome.
Conference Call Information
Bruker will host a conference call and webcast to discuss its
preliminary operating results, business outlook, and related
corporate and financial matters today, February 18th, at 8:30 a.m.
Eastern Standard Time. To listen to the webcast, investors can go
to https://ir.bruker.com and click on the “Q4 2019 Preliminary
Operating Results Webcast” hyperlink. Investors can also listen to
the webcast via telephone by dialing 1-888-437-2685 (US toll free)
or +1-412-317-6702 (international) and referencing “Bruker’s Fourth
Quarter 2019 Preliminary Results 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: 10139554. The replay will be
available beginning one hour after the end of the conference
through March 18, 2020.
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 research, in applied and pharma applications, in
microscopy and nanoanalysis, and in industrial applications, as
well as in cell biology, preclinical imaging, clinical phenomics
and proteomics research and clinical microbiology. 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 in this press release or in the preliminary
results webcast: organic revenue and revenue growth on a constant
currency basis; 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. 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 in this press
release or on the preliminary results webcast, which is also a
non-GAAP financial measure. 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. Related to organic growth, we also present constant
currency information to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign
currency rate fluctuations. To present this information, current
and comparative prior period results for entities reporting in
currencies other than U.S. dollars are converted into U.S. dollars
using the average exchange rates from the comparative period rather
than the actual exchange rates in effect during the respective
periods.
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 these non-GAAP financial
measures and reconciliations to the most directly comparable GAAP
financial measures is provided in the tables accompanying this
press release following our GAAP financial statements and in our
slide presentation, which is available through the “Quarterly
Results” hyperlink in the “Financial Info” section on Bruker’s
Investor Relations web site ir.bruker.com.
With respect to our outlook for 2020 non-GAAP operating margin,
we are not providing the most directly comparable GAAP financial
measure or corresponding reconciliations to such GAAP financial
measure on a forward-looking basis, because we are unable to
predict with reasonable certainty certain items that may affect
such a measure calculated and presented in accordance with GAAP
without unreasonable effort. Our expected non-GAAP operating margin
excludes 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 calculated and
presented in accordance with GAAP.
Preliminary Financial Information
The anticipated results discussed in this press release are
based on management’s preliminary, unaudited analysis of financial
results for the period and year ended December 31, 2019. As of the
date of this press release, Bruker has not completed its year end
procedures for the period ended December 31, 2019, and the
Company’s independent registered accounting firm has not audited
the preliminary financial data discussed in this press release.
During the course of the Company’s year-end closing procedures and
review process, the Company may identify items that would require
it to make adjustments, which may be material to the information
presented above. As a result, the estimates above constitute
forward-looking information and are subject to risks and
uncertainties, including possible adjustments to preliminary
operating results.
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 preliminary financial
results presented in this press release, management’s expectations
for future financial and operational performance, expected growth,
and business outlook; statements regarding our business focus; our
preliminary fiscal year 2020 outlook, including our outlook for
revenue growth, growth from acquisitions, non-GAAP operating
margin; and the impact of foreign currency; 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 outcome of the internal investigation announced
today, changes resulting from the Company’s finalization of its
financial statements for and as of the period and year ended
December 31, 2019, information or changes in facts or circumstances
that may occur prior to the filing of our Annual Report on Form
10-K for the year ended December 31, 2019 that are required to be
included in such annual report, adverse changes in conditions in
the global economy and volatility in the capital markets, the
coronavirus outbreak, the integration and assumption of liabilities
of businesses we have acquired or may acquire in the future,
fluctuations in foreign currency exchange rates, 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, loss of key personnel, dependence on collaborative
partners, key suppliers and contract manufacturers, capital
spending and government funding policies, changes in governmental
regulations, 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,
2018. We expressly disclaim any intent or obligation to update
these forward-looking statements other than as required by law.
Bruker Corporation PRELIMINARY CONSOLIDATED
CONDENSED OPERATING RESULTS (unaudited) Three Months
Ended Twelve Months Ended (in millions, except per
share amounts) December 31, December 31,
2019
2018
2019
2018
Revenues
$
599.9
$
553.6
$
2,072.6
$
1,895.6
Cost of revenues
303.6
280.8
1,077.3
995.6
Gross profit
296.3
272.8
995.3
900.0
Operating expenses: Selling, general and administrative
130.3
117.3
500.2
444.7
Research and development
46.7
44.8
187.7
173.4
Other charges, net
1.6
4.3
6.5
19.5
Total operating expenses
178.6
166.4
694.4
637.6
Operating income
117.7
106.4
300.9
262.4
Gross Profit Margin
49.4
%
49.3
%
48.0
%
47.5
%
Operating Margin
19.6
%
19.2
%
14.5
%
13.8
%
Bruker Corporation PRELIMINARY 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,
2019
2018
2019
2018
Reconciliation of Non-GAAP Operating Income
GAAP Operating
Income
$
117.7
$
106.4
$
300.9
$
262.4
Non-GAAP Adjustments: Restructuring Costs
2.8
2.7
1.4
9.4
Acquisition-Related Costs
1.6
3.4
16.8
7.3
Purchased Intangible Amortization
9.1
7.4
38.3
28.9
Other Costs
1.3
2.9
6.6
9.9
Total Non-GAAP Adjustments:
$
14.8
$
16.4
$
63.1
$
55.5
Non-GAAP Operating Income
$
132.5
$
122.8
$
364.0
$
317.9
Non-GAAP Operating Margin
22.1
%
22.2
%
17.6
%
16.8
%
Reconciliation of GAAP and Non-GAAP Gross Profit
GAAP Gross Profit
$
296.3
$
272.8
$
995.3
$
900.0
Non-GAAP Adjustments: Restructuring Costs
1.2
1.8
5.3
2.6
Acquisition-Related Costs
2.9
2.3
12.2
3.9
Purchased Intangible Amortization
5.1
5.0
23.4
21.6
Other Costs
-
0.6
0.8
0.6
Total Non-GAAP Adjustments:
9.2
9.7
41.7
28.7
Non-GAAP Gross Profit
$
305.5
$
282.5
$
1,037.0
$
928.7
Non-GAAP Gross Margin
50.9
%
51.0
%
50.0
%
49.0
%
Reconciliation of GAAP and Non-GAAP Selling, General and
Administrative (SG&A) Expenses
GAAP SG&A Expenses
$
130.3
$
117.3
$
500.2
$
444.7
Non-GAAP Adjustments: Purchased Intangible Amortization
4.0
2.4
14.9
7.3
Non-GAAP SG&A Expenses
$
126.3
$
114.9
$
485.3
$
437.4
Bruker Corporation PRELIMINARY REVENUE
(unaudited) (in millions) Three Months Ended
December 31, Twelve Months Ended December 31,
2019
2018
2019
2018
Revenue by Group: Bruker BioSpin
$
199.0
$
179.9
$
621.4
$
591.1
Bruker CALID
176.6
153.9
623.5
547.8
Bruker Nano
171.0
166.7
632.7
568.1
BEST
57.7
55.6
209.9
194.8
Eliminations
(4.4
)
(2.5
)
(14.9
)
(6.2
)
Total Revenue
$
599.9
$
553.6
$
2,072.6
$
1,895.6
Revenue by End Customer Geography: United States
$
150.5
$
142.1
$
529.8
$
489.4
Europe
218.7
219.6
718.8
701.3
Asia Pacific
186.5
152.4
651.0
549.2
Other
44.2
39.5
173.0
155.7
Total Revenue
$
599.9
$
553.6
$
2,072.6
$
1,895.6
Reconciliation of GAAP Reported Revenue Growth to Organic
Revenue Growth
Total Bruker GAAP Revenue as of Prior
Comparable Period
$
553.6
$
530.5
$
1,895.6
$
1,765.9
Non-GAAP Adjustments: Acquisitions and divestitures
24.0
17.0
118.4
28.2
Organic
28.9
18.2
108.9
76.0
Constant Currency Revenue Growth:
52.9
35.2
227.3
104.2
Currency
(6.6
)
(12.1
)
(50.3
)
25.5
Total Non-GAAP Adjustments:
46.3
23.1
177.0
129.7
Non-GAAP Revenue
$
599.9
$
553.6
$
2,072.6
$
1,895.6
Revenue Growth
8.4
%
4.4
%
9.3
%
7.3
%
Organic Revenue Growth
5.2
%
3.4
%
5.7
%
4.3
%
Constant Currency Revenue Growth
9.5
%
6.6
%
12.0
%
5.9
%
Reconciliation of GAAP Reported Revenue Growth to Organic
Revenue Growth
BSI Segment GAAP Revenue as of Prior
Comparable Period
$
500.5
$
484.4
$
1,707.0
$
1,583.9
Non-GAAP Adjustments: Acquisitions and divestitures
22.3
17.0
113.6
28.2
Organic
29.1
10.1
99.7
74.4
Constant Currency Revenue Growth:
51.4
27.1
213.3
102.6
Currency
(5.3
)
(11.0
)
(42.7
)
20.5
Total Non-GAAP Adjustments:
46.1
16.1
170.6
123.1
Non-GAAP Revenue
$
546.6
$
500.5
$
1,877.6
$
1,707.0
Revenue Growth
9.2
%
3.3
%
10.0
%
7.8
%
Organic Revenue Growth
5.8
%
2.1
%
5.8
%
4.7
%
Constant Currency Revenue Growth
10.3
%
5.6
%
12.5
%
6.5
%
Reconciliation of GAAP Reported Revenue Growth to Organic
Revenue Growth
BEST Segment, net of Intercompany
Eliminations GAAP Revenue as of Prior Comparable Period
$
53.1
$
46.1
$
188.6
$
182.0
Non-GAAP Adjustments: Acquisitions and divestitures
1.7
-
4.8
-
Organic
(0.3
)
8.1
9.3
1.6
Constant Currency Revenue Growth:
1.4
8.1
14.1
1.6
Currency
(1.2
)
(1.1
)
(7.7
)
5.0
Total Non-GAAP Adjustments:
0.2
7.0
6.4
6.6
Non-GAAP Revenue
$
53.3
$
53.1
$
195.0
$
188.6
Revenue Growth
0.4
%
15.2
%
3.4
%
3.6
%
Organic Revenue Growth
-0.5
%
17.6
%
4.9
%
0.9
%
Constant Currency Revenue Growth
2.8
%
17.6
%
7.4
%
0.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200218005319/en/
Miroslava Minkova Director, Investor Relations & Corporate
Development Bruker Corporation T: +1 (978) 663–3660, ext. 1479 E:
Investor.Relations@bruker.com
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