Bruker Reports Fourth Quarter and Full Year 2023 Financial Results
- None.
- None.
Insights
The reported Q4 and full-year financial results from Bruker Corporation reflect a robust performance, with revenues and organic growth figures surpassing the previous year's metrics. The 20.6% year-over-year increase in Q4 revenues and the 17.1% increase for the full year are indicative of strong demand for the company's products and services. However, the reported decrease in non-GAAP EPS for Q4 by 5.4% year-over-year, despite the gain from the PhenomeX acquisition, suggests margin pressures or increased expenses that investors should be aware of.
It is also noteworthy that the non-GAAP operating margin has declined, both for Q4 and the full year, which could be a point of concern for profitability analysis. The projected revenue growth for FY 2024, including organic growth and contributions from M&A, coupled with the anticipated non-GAAP EPS growth, presents a positive outlook, albeit at a slower pace than the previous year. Investors should consider these projections alongside industry trends and potential macroeconomic factors that could affect performance.
Bruker's emphasis on R&D investment and its positioning in the post-genomic era highlight the company's strategic focus on innovation and growth within the life sciences sector. The double-digit organic revenue growth across all four groups is a testament to the company's diversified portfolio and its ability to capitalize on secular growth trends. The mention of a 'bargain purchase gain' from the PhenomeX acquisition indicates a strategic move that may have added significant value to Bruker's assets relative to the cost, which could be a positive signal for the company's M&A strategy.
Looking forward, the forecasted 5% to 7% organic revenue growth for FY 2024 suggests that Bruker anticipates continued solid demand for its offerings. The planned revenue growth at constant exchange rates (CER) also provides insight into the company's expectations for performance without the influence of currency fluctuations, which is a critical factor for multinational corporations like Bruker.
The financial results indicate that Bruker is experiencing growth in a competitive market, which can be partially attributed to macroeconomic factors such as foreign currency translation effects that have provided a tailwind to reported revenues. The company's ability to achieve growth in various market conditions is a positive sign of its economic resilience. However, the decrease in non-GAAP operating margin and return on invested capital (ROIC) could point to rising costs or inefficiencies that may need to be addressed to maintain profitability.
Moreover, the guidance for FY 2024, including the anticipated foreign currency translation tailwind, suggests that Bruker is factoring in potential economic conditions that could impact its financials. The use of non-GAAP financial measures, such as ROIC, provides additional context for evaluating the company's financial health and operational efficiency beyond standard GAAP metrics.
-
Q4 2023 revenues of
$854.5 million 20.6% year-over-year (yoy); organic revenue up15.9% yoy -
Q4 2023 GAAP EPS of
$1.41 $0.99 -
Q4 2023 non-GAAP EPS of
$0.70 5.4% yoy; pro forma non-GAAP EPS excluding PhenomeX acquisition up8.1% yoy -
Full year 2023 revenues of
$2.96 billion 17.1% yoy; organic revenue growth of14.5% yoy -
Full year 2023 GAAP EPS of
$2.90 $2.58 10.3% yoy; pro forma non-GAAP EPS excluding PhenomeX acquisition up14.5% yoy -
Bruker expects 2024 constant-exchange rate (CER) revenue growth of
8% to10% yoy, including organic revenue growth of5% to7% .
Bruker’s President and CEO Frank Laukien commented: “Bruker’s transformation into a fast-growth company is on track after three consecutive years of double-digit organic revenue growth. Remarkably, in 2023 our industry-leading
Dr. Laukien continued: “Demand for our innovative and differentiated products and solutions has remained solid, as Bruker emerges as a leader in the post-genomic era – a powerful new secular growth trend. For fiscal year 2024, we again expect to achieve well above-market organic revenue and non-GAAP EPS growth.”
Fourth Quarter (Q4) 2023 Financial Results
Bruker’s revenues for Q4 2023 were
Q4 2023 Bruker Scientific Instruments (BSI) revenues of
Q4 2023 GAAP operating income was
Q4 2023 GAAP diluted earnings per share (EPS) were
[1] In Q4 2023, Bruker recorded a GAAP gain of
Fiscal Year (FY) 2023 Financial Results
FY 2023, Bruker’s revenues were
FY 2023 BSI revenues of
FY 2023 GAAP operating income was
FY 2023 GAAP diluted EPS were
Return on invested capital (ROIC), a non-GAAP measure, was
Fiscal Year 2024 Outlook
Bruker expects FY 2024 revenues of
-
Organic revenue growth of
5% to7% -
Constant exchange rate (CER) revenue growth of
8% to10% , with M&A[2] contributions of ~3% -
Foreign currency translation tailwind of ~
1%
Bruker expects FY 2024 non-GAAP EPS of
Bruker’s revenue and non-GAAP EPS guidance are based on foreign currency exchange rates as of January 31, 2024.
For the Company’s outlook for 2024 organic revenue growth, M&A revenue growth, constant exchange rate revenue growth, 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 EPS.
[2] FY 2024 guidance excludes M&A transactions that have not yet closed, regardless of any earlier announcement, including Chemspeed and ELITech.
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, February 13, 2024, at 8:30 am Eastern Standard Time. To listen to the webcast, investors can go to https://ir.bruker.com and click on the “Q4 2023 Earnings Webcast” hyperlink. A slide presentation will be referenced during the webcast and 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 (
Bruker is enabling investors to pre-register for the earnings conference call so that they can expedite their entry into the call and avoid the need to wait for a live operator. In order to pre-register for the call, investors can visit https://dpregister.com/sreg/10185998/fb79eecad8 and enter their contact information. Investors will then be issued a personalized phone number and PIN to dial into the live conference call. Individuals can pre-register any time prior to the start of the conference call on February 13.
A telephone replay of the conference call will be available by dialing 1-877-344-7529 (
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 research, semiconductor metrology and cleantech 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
We also may refer to organic revenue growth or decline, free cash flow or use, return on invested capital and non-GAAP earnings before interest taxes depreciation and amortization (EBITDA) 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 the term M&A revenue as GAAP revenue from M&A activities [excluding the effect of changes in foreign currency translation rates], and believe it is a useful measure to evaluate the effect of acquisitions on our operations.] We define the term constant-exchange rate (CER) currency revenue as GAAP revenue excluding the effect of changes in foreign currency translation rates. 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. We define return on invested capital (ROIC) as non-GAAP operating profit after income tax divided by average total capital, which we define as debt plus equity minus cash and cash equivalents. We believe ROIC is an important measure of how effectively the Company invests its capital. We define non-GAAP EBITDA as non-GAAP net income adjusting out the effects of interest expense, net, non-GAAP income tax expense and GAAP depreciation and amortization, with purchased intangible amortization already adjusted out of non-GAAP net income. We believe non-GAAP EBITDA is an important means of comparing profitability of comparable companies.
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 2024 non-GAAP organic revenue, non-GAAP M&A revenue, non-GAAP constant exchange rate (CER) revenue, 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 organic revenue, 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 2024 financial outlook, our outlook for reported revenue growth, organic revenue growth, M&A revenue growth contributions, constant exchange rate (CER) currency revenue growth, foreign currency translation revenue impact, non-GAAP operating margin, non-GAAP EPS and non-GAAP tax rate; management’s expectations for the impact of foreign currency and acquisitions, expectations regarding the benefits of our acquisition of PhenomeX Inc.; and for future financial and operational performance and business outlook; future economic conditions; the duration and impact of supply chain and geopolitical challenges; strategic investments; 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 COVID-19, the length and severity of any recession and the impact on global economic conditions, the impact of supply chain challenges, including inflationary pressures, the impact of geopolitical tensions and any sanctions, including any reduction in natural gas exports from
Bruker Corporation |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
(in millions) |
||||||||
|
|
December 31,
|
|
|
December 31,
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
488.3 |
|
|
$ |
645.5 |
|
Accounts receivable, net |
|
|
492.0 |
|
|
|
472.7 |
|
Inventories |
|
|
968.3 |
|
|
|
800.1 |
|
Other current assets |
|
|
216.4 |
|
|
|
194.9 |
|
Total current assets |
|
|
2,165.0 |
|
|
|
2,113.2 |
|
Property, plant and equipment, net |
|
|
599.7 |
|
|
|
487.0 |
|
Goodwill, intangibles, net and other long-term assets |
|
|
1,474.1 |
|
|
|
1,011.6 |
|
Total assets |
|
$ |
4,238.8 |
|
|
$ |
3,611.8 |
|
|
|
|
|
|
|
|
||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of long-term debt |
|
$ |
121.2 |
|
|
$ |
18.7 |
|
Accounts payable |
|
|
202.7 |
|
|
|
178.4 |
|
Deferred revenue and customer advances |
|
|
400.0 |
|
|
|
370.2 |
|
Other current liabilities |
|
|
467.1 |
|
|
|
347.0 |
|
Total current liabilities |
|
|
1,191.0 |
|
|
|
914.3 |
|
Long-term debt |
|
|
1,160.3 |
|
|
|
1,200.5 |
|
Other long-term liabilities |
|
|
474.2 |
|
|
|
365.2 |
|
|
|
|
|
|
|
|
||
Redeemable noncontrolling interests |
|
|
18.6 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
||
Total shareholders' equity |
|
|
1,394.7 |
|
|
|
1,125.7 |
|
Total liabilities, redeemable noncontrolling interests and shareholders' equity |
|
$ |
4,238.8 |
|
|
$ |
3,611.8 |
|
Bruker Corporation |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||
(in millions, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
$ |
854.5 |
|
|
$ |
708.4 |
|
|
$ |
2,964.5 |
|
|
$ |
2,530.7 |
|
Cost of revenue |
|
|
424.2 |
|
|
|
342.5 |
|
|
|
1,451.2 |
|
|
|
1,225.0 |
|
Gross profit |
|
|
430.3 |
|
|
|
365.9 |
|
|
|
1,513.3 |
|
|
|
1,305.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
211.3 |
|
|
|
164.7 |
|
|
|
729.4 |
|
|
|
607.4 |
|
Research and development |
|
|
83.4 |
|
|
|
63.5 |
|
|
|
294.8 |
|
|
|
235.9 |
|
Other charges, net |
|
|
32.1 |
|
|
|
6.7 |
|
|
|
52.2 |
|
|
|
29.7 |
|
Total operating expenses |
|
|
326.8 |
|
|
|
234.9 |
|
|
|
1,076.4 |
|
|
|
873.0 |
|
Operating income |
|
|
103.5 |
|
|
|
131.0 |
|
|
|
436.9 |
|
|
|
432.7 |
|
Bargain purchase gain |
|
|
144.1 |
|
|
|
— |
|
|
|
144.1 |
|
|
|
— |
|
Interest and other income (expense) |
|
|
(6.7 |
) |
|
|
(10.0 |
) |
|
|
(36.8 |
) |
|
|
(18.8 |
) |
Interest and other income (expense), net |
|
|
137.4 |
|
|
|
(10.0 |
) |
|
|
107.3 |
|
|
|
(18.8 |
) |
Income before income taxes, equity in income of unconsolidated investees, net of tax, and noncontrolling interests in consolidated subsidiaries |
|
|
240.9 |
|
|
|
121.0 |
|
|
|
544.2 |
|
|
|
413.9 |
|
Income tax provision |
|
|
37.1 |
|
|
|
23.4 |
|
|
|
117.7 |
|
|
|
116.4 |
|
Equity in income of unconsolidated investees, net of tax |
|
|
0.8 |
|
|
|
0.7 |
|
|
|
2.0 |
|
|
|
1.0 |
|
Consolidated net income |
|
|
204.6 |
|
|
|
98.3 |
|
|
|
428.5 |
|
|
|
298.5 |
|
Net income attributable to noncontrolling interests in consolidated subsidiaries |
|
|
(0.9 |
) |
|
|
0.9 |
|
|
|
1.3 |
|
|
|
1.9 |
|
Net income attributable to Bruker Corporation |
|
$ |
205.5 |
|
|
$ |
97.4 |
|
|
$ |
427.2 |
|
|
$ |
296.6 |
|
Net income per common share attributable to Bruker Corporation shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.41 |
|
|
$ |
0.66 |
|
|
$ |
2.92 |
|
|
$ |
2.00 |
|
Diluted |
|
$ |
1.41 |
|
|
$ |
0.66 |
|
|
$ |
2.90 |
|
|
$ |
1.99 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
145.5 |
|
|
|
147.1 |
|
|
|
146.4 |
|
|
|
148.6 |
|
Diluted |
|
|
146.0 |
|
|
|
147.9 |
|
|
|
147.2 |
|
|
|
149.4 |
|
Bruker Corporation |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
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(in millions) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated net income |
|
$ |
204.6 |
|
|
$ |
98.3 |
|
|
$ |
428.5 |
|
|
$ |
298.5 |
|
Adjustments to reconcile consolidated net income to cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
37.3 |
|
|
|
24.5 |
|
|
|
114.9 |
|
|
|
88.8 |
|
Stock-based compensation expense |
|
|
6.2 |
|
|
|
4.7 |
|
|
|
24.0 |
|
|
|
27.7 |
|
Deferred income taxes |
|
|
(36.0 |
) |
|
|
10.9 |
|
|
|
(23.2 |
) |
|
|
(14.8 |
) |
Bargain purchase gain on acquisition |
|
|
(144.1 |
) |
|
|
|
|
|
(144.1 |
) |
|
|
|
||
Impairment of strategic investments and other long-lived assets |
|
|
2.7 |
|
|
|
— |
|
|
|
22.2 |
|
|
|
— |
|
Gain on sale of strategic investment |
|
|
— |
|
|
|
— |
|
|
|
(6.8 |
) |
|
|
— |
|
Gain on sale of property, plant and equipment |
|
|
0.9 |
|
|
|
— |
|
|
|
(8.5 |
) |
|
|
— |
|
Other non-cash expenses, net |
|
|
13.8 |
|
|
|
6.5 |
|
|
|
32.1 |
|
|
|
18.3 |
|
Changes in operating assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
11.5 |
|
|
|
(28.2 |
) |
|
|
(0.9 |
) |
|
|
(67.9 |
) |
Inventories |
|
|
22.3 |
|
|
|
1.2 |
|
|
|
(125.0 |
) |
|
|
(137.9 |
) |
Accounts payable and accrued expenses |
|
|
12.0 |
|
|
|
12.9 |
|
|
|
23.1 |
|
|
|
13.2 |
|
Income taxes payable, net |
|
|
92.8 |
|
|
|
(17.4 |
) |
|
|
79.3 |
|
|
|
(6.8 |
) |
Deferred revenue and customer advances |
|
|
(7.1 |
) |
|
|
42.2 |
|
|
|
(0.6 |
) |
|
|
52.7 |
|
Other changes in operating assets and liabilities, net |
|
|
(11.4 |
) |
|
|
15.9 |
|
|
|
(64.9 |
) |
|
|
2.6 |
|
Net cash provided by operating activities |
|
|
205.5 |
|
|
|
171.5 |
|
|
|
350.1 |
|
|
|
274.4 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of property, plant and equipment |
|
|
(31.5 |
) |
|
|
(34.6 |
) |
|
|
(106.9 |
) |
|
|
(129.2 |
) |
Maturity of short-term investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
100.0 |
|
Proceeds from sale of strategic investment |
|
|
3.0 |
|
|
|
— |
|
|
|
14.8 |
|
|
|
— |
|
Cash paid for strategic investments |
|
|
(5.4 |
) |
|
|
(19.4 |
) |
|
|
(24.7 |
) |
|
|
(60.2 |
) |
Cash paid for acquisitions, net of cash acquired |
|
|
(4.3 |
) |
|
|
(96.8 |
) |
|
|
(226.6 |
) |
|
|
(182.3 |
) |
Proceeds from sales of property, plant and equipment |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
11.1 |
|
|
|
13.9 |
|
Net proceeds from cross-currency swap agreements |
|
|
1.3 |
|
|
|
1.4 |
|
|
|
6.4 |
|
|
|
6.2 |
|
Net cash used in investing activities |
|
|
(36.7 |
) |
|
|
(149.3 |
) |
|
|
(325.9 |
) |
|
|
(251.6 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from long-term debt |
|
|
(1.2 |
) |
|
|
3.5 |
|
|
|
2.0 |
|
|
|
3.9 |
|
Proceeds (repayment) of other debt, net |
|
|
(1.5 |
) |
|
|
(2.0 |
) |
|
|
(8.5 |
) |
|
|
(3.6 |
) |
Repayment of 2012 Note Purchase Agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105.0 |
) |
Repayment of 2019 Note Purchase Agreement |
|
|
(3.7 |
) |
|
|
(3.7 |
) |
|
|
(15.0 |
) |
|
|
(6.0 |
) |
Proceeds from issuance of common stock, net |
|
|
4.7 |
|
|
|
2.0 |
|
|
|
9.5 |
|
|
|
2.8 |
|
Payment of contingent consideration |
|
|
— |
|
|
|
(1.0 |
) |
|
|
(2.7 |
) |
|
|
(2.7 |
) |
Payment of dividends to common shareholders |
|
|
(7.3 |
) |
|
|
(7.4 |
) |
|
|
(29.4 |
) |
|
|
(29.8 |
) |
Repurchase of common stock |
|
|
(50.4 |
) |
|
|
(26.3 |
) |
|
|
(152.3 |
) |
|
|
(263.1 |
) |
Proceeds from (payment for) the sale (purchase) of noncontrolling interests |
|
|
(0.5 |
) |
|
|
(1.2 |
) |
|
|
3.0 |
|
|
|
(11.8 |
) |
Net cash used in financing activities |
|
|
(59.9 |
) |
|
|
(36.1 |
) |
|
|
(193.4 |
) |
|
|
(415.3 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
15.8 |
|
|
|
33.3 |
|
|
|
12.1 |
|
|
|
(30.5 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
124.7 |
|
|
|
19.4 |
|
|
|
(157.1 |
) |
|
|
(423.0 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
366.9 |
|
|
|
629.3 |
|
|
|
648.7 |
|
|
|
1,071.7 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
491.6 |
|
|
$ |
648.7 |
|
|
$ |
491.6 |
|
|
$ |
648.7 |
|
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
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP operating income |
|
$ |
103.5 |
|
|
$ |
131.0 |
|
|
$ |
436.9 |
|
|
$ |
432.7 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restructuring costs |
|
|
16.6 |
|
|
|
0.4 |
|
|
|
22.3 |
|
|
|
4.8 |
|
Acquisition-related costs |
|
|
11.4 |
|
|
|
4.3 |
|
|
|
19.3 |
|
|
|
19.7 |
|
Purchased intangible amortization |
|
|
13.7 |
|
|
|
9.6 |
|
|
|
47.1 |
|
|
|
37.1 |
|
Other costs |
|
|
9.3 |
|
|
|
3.6 |
|
|
|
20.7 |
|
|
|
11.3 |
|
Total Non-GAAP adjustments: |
|
|
51.0 |
|
|
|
17.9 |
|
|
|
109.4 |
|
|
|
72.9 |
|
Non-GAAP operating income |
|
$ |
154.5 |
|
|
$ |
148.9 |
|
|
$ |
546.3 |
|
|
$ |
505.6 |
|
Non-GAAP operating margin |
|
|
18.1 |
% |
|
|
21.0 |
% |
|
|
18.4 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP interest & other expense, net |
|
|
(6.7 |
) |
|
|
(10.0 |
) |
|
|
(22.7 |
) |
|
|
(20.4 |
) |
Non-GAAP profit before tax |
|
|
147.8 |
|
|
|
138.9 |
|
|
|
523.6 |
|
|
|
485.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP income tax provision |
|
|
(46.3 |
) |
|
|
(28.6 |
) |
|
|
(142.6 |
) |
|
|
(134.4 |
) |
Non-GAAP tax rate |
|
|
31.3 |
% |
|
|
20.6 |
% |
|
|
27.2 |
% |
|
|
27.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Minority interest |
|
|
0.9 |
|
|
|
(0.9 |
) |
|
|
(1.3 |
) |
|
|
(1.9 |
) |
Non-GAAP net income attributable to Bruker |
|
|
102.4 |
|
|
|
109.4 |
|
|
|
379.7 |
|
|
|
348.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP net income attributable to Bruker excluding BCA |
|
|
117.5 |
|
|
|
109.4 |
|
|
|
394.8 |
|
|
|
348.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding (diluted) |
|
|
146.0 |
|
|
|
147.9 |
|
|
|
147.2 |
|
|
|
149.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP earnings per share |
|
$ |
0.70 |
|
|
$ |
0.74 |
|
|
$ |
2.58 |
|
|
$ |
2.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP earnings per share excluding BCA |
|
$ |
0.80 |
|
|
$ |
0.74 |
|
|
$ |
2.68 |
|
|
$ |
2.34 |
|
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP gross profit |
|
$ |
430.3 |
|
|
$ |
365.9 |
|
|
$ |
1,513.3 |
|
|
$ |
1,305.7 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restructuring costs |
|
|
2.1 |
|
|
|
(0.2 |
) |
|
|
3.5 |
|
|
|
0.9 |
|
Acquisition-related costs |
|
|
2.0 |
|
|
|
0.1 |
|
|
|
2.5 |
|
|
|
0.4 |
|
Purchased intangible amortization |
|
|
7.4 |
|
|
|
4.8 |
|
|
|
24.3 |
|
|
|
18.3 |
|
Other costs |
|
|
1.0 |
|
|
|
1.7 |
|
|
|
4.0 |
|
|
|
4.8 |
|
Total Non-GAAP adjustments: |
|
|
12.5 |
|
|
|
6.4 |
|
|
|
34.3 |
|
|
|
24.4 |
|
Non-GAAP gross profit |
|
$ |
442.8 |
|
|
$ |
372.3 |
|
|
$ |
1,547.6 |
|
|
$ |
1,330.1 |
|
Non-GAAP gross margin |
|
|
51.8 |
% |
|
|
52.6 |
% |
|
|
52.2 |
% |
|
|
52.6 |
% |
Bruker Corporation |
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued |
||||||||||||||||
(unaudited and in millions, except per share data) |
||||||||||||||||
|
||||||||||||||||
Reconciliation of GAAP Selling, General and Administrative (SG&A) Expenses to Non-GAAP SG&A Expenses |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP SG&A expenses |
|
$ |
211.3 |
|
|
$ |
164.7 |
|
|
$ |
729.4 |
|
|
$ |
607.4 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchased intangible amortization |
|
|
(6.1 |
) |
|
|
(4.8 |
) |
|
|
(22.5 |
) |
|
|
(18.8 |
) |
Non-GAAP SG&A expenses |
|
$ |
205.2 |
|
|
$ |
159.9 |
|
|
$ |
706.9 |
|
|
$ |
588.6 |
|
Reconciliation of GAAP Interest and Other Income (Expense), net to Non-GAAP Interest and Other Income (Expense), net |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP interest and other income (expense), net |
|
$ |
137.4 |
|
|
$ |
(10.0 |
) |
|
$ |
107.3 |
|
|
$ |
(18.8 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments related adjustments |
|
|
(144.1 |
) |
|
|
— |
|
|
|
(130.0 |
) |
|
|
(1.6 |
) |
Non-GAAP interest and other income (expense), net |
|
$ |
(6.7 |
) |
|
$ |
(10.0 |
) |
|
$ |
(22.7 |
) |
|
$ |
(20.4 |
) |
Reconciliation of GAAP Tax Rate to Non-GAAP Tax Rate |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP tax rate |
|
|
15.4 |
% |
|
|
19.3 |
% |
|
|
21.6 |
% |
|
|
28.1 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tax impact of non-GAAP adjustments |
|
|
19.3 |
% |
|
|
1.7 |
% |
|
|
6.5 |
% |
|
|
-1.8 |
% |
Other discrete items |
|
|
-3.4 |
% |
|
|
-0.4 |
% |
|
|
-0.9 |
% |
|
|
1.4 |
% |
Total non-GAAP adjustments: |
|
|
15.9 |
% |
|
|
1.3 |
% |
|
|
5.6 |
% |
|
|
-0.4 |
% |
Non-GAAP tax rate |
|
|
31.3 |
% |
|
|
20.6 |
% |
|
|
27.2 |
% |
|
|
27.7 |
% |
Reconciliation of GAAP Earnings Per Share to Non-GAAP Earnings Per Share (Diluted) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP earnings per share (diluted) |
|
$ |
1.41 |
|
|
$ |
0.66 |
|
|
$ |
2.90 |
|
|
$ |
1.99 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restructuring Costs |
|
|
0.11 |
|
|
|
— |
|
|
|
0.15 |
|
|
|
0.03 |
|
Acquisition-related costs |
|
|
0.08 |
|
|
|
0.03 |
|
|
|
0.13 |
|
|
|
0.13 |
|
Purchased intangible amortization |
|
|
0.09 |
|
|
|
0.07 |
|
|
|
0.32 |
|
|
|
0.25 |
|
Other costs |
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.06 |
|
Interest and other income (expense), net |
|
|
(0.99 |
) |
|
|
— |
|
|
|
(0.88 |
) |
|
|
— |
|
Income tax rate differential |
|
|
(0.06 |
) |
|
|
(0.03 |
) |
|
|
(0.18 |
) |
|
|
(0.12 |
) |
Total non-GAAP adjustments: |
|
|
(0.71 |
) |
|
|
0.08 |
|
|
|
(0.32 |
) |
|
|
0.35 |
|
Non-GAAP earnings per share (diluted) |
|
$ |
0.70 |
|
|
$ |
0.74 |
|
|
$ |
2.58 |
|
|
$ |
2.34 |
|
Bruker Corporation |
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued |
||||||||||||||||
(unaudited and in millions, except per share data) |
||||||||||||||||
|
||||||||||||||||
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Free Cash Flow |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP operating cash flow |
|
$ |
205.5 |
|
|
$ |
171.5 |
|
|
$ |
350.1 |
|
|
$ |
274.4 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of property, plant and equipment |
|
|
(31.5 |
) |
|
|
(34.6 |
) |
|
|
(106.9 |
) |
|
|
(129.2 |
) |
Non-GAAP free cash flow |
|
$ |
174.0 |
|
|
$ |
136.9 |
|
|
$ |
243.2 |
|
|
$ |
145.2 |
|
Reconciliation of Non-GAAP Return on Invested Capital (ROIC) |
||||||||
|
|
FY 2023 |
|
|
FY 2022 |
|
||
Non-GAAP operating income |
|
$ |
546.3 |
|
|
$ |
505.6 |
|
Less: non-GAAP income tax provision |
|
|
(142.5 |
) |
|
|
(134.4 |
) |
Non-GAAP operating income after tax |
|
$ |
403.8 |
|
|
$ |
371.2 |
|
|
|
|
|
|
|
|
||
Average total invested capital |
|
|
|
|
|
|
||
Average long-term debt |
|
$ |
1,181.9 |
|
|
$ |
1,213.0 |
|
Average current portion of long-term debt |
|
|
70.0 |
|
|
|
65.6 |
|
Average total shareholders' equity |
|
|
1,272.6 |
|
|
|
1,108.3 |
|
Less: average cash and cash equivalents |
|
|
(566.9 |
) |
|
|
(856.9 |
) |
Average total invested capital |
|
$ |
1,957.6 |
|
|
$ |
1,530.0 |
|
|
|
|
|
|
|
|
||
Return on invested capital (ROIC) |
|
|
20.6 |
% |
|
|
24.3 |
% |
Reconciliation of Non-GAAP EBITDA |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Non-GAAP net income attributable to Bruker |
|
$ |
102.4 |
|
|
$ |
109.4 |
|
|
$ |
379.7 |
|
|
$ |
348.9 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Expense, net1 |
|
|
2.1 |
|
|
|
3.2 |
|
|
|
8.9 |
|
|
|
13.3 |
|
Non-GAAP Income Tax Provision (from above) |
|
|
46.3 |
|
|
|
28.6 |
|
|
|
142.6 |
|
|
|
134.4 |
|
GAAP Depreciation Expense |
|
|
23.6 |
|
|
|
14.9 |
|
|
|
67.8 |
|
|
|
51.7 |
|
Amortization Expense2 |
|
|
0.6 |
|
|
|
— |
|
|
|
0.8 |
|
|
|
0.7 |
|
Total Non-GAAP adjustments: |
|
|
72.6 |
|
|
|
46.7 |
|
|
|
220.1 |
|
|
|
200.1 |
|
Non-GAAP EBITDA |
|
$ |
175.0 |
|
|
$ |
156.1 |
|
|
$ |
599.8 |
|
|
$ |
549.0 |
|
Non-GAAP EBITDA Margin |
|
|
20.5 |
% |
|
|
22.0 |
% |
|
|
20.2 |
% |
|
|
21.7 |
% |
1 GAAP Interest Expense, net |
||||||||||||||||
2 GAAP Amortization Expense - with purchased intangible amortization already adjusted out of non-GAAP net income |
||||||||||||||||
Bruker Corporation |
||||||||||||||||
REVENUE |
||||||||||||||||
(unaudited and in millions) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue by group: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bruker BioSpin |
|
$ |
257.9 |
|
|
$ |
203.4 |
|
|
$ |
798.5 |
|
|
$ |
696.7 |
|
Bruker CALID |
|
|
257.2 |
|
|
|
221.2 |
|
|
|
960.4 |
|
|
|
822.2 |
|
Bruker Nano |
|
|
268.5 |
|
|
|
227.2 |
|
|
|
941.9 |
|
|
|
787.0 |
|
BEST |
|
|
75.2 |
|
|
|
58.9 |
|
|
|
280.7 |
|
|
|
237.1 |
|
Eliminations |
|
|
(4.3 |
) |
|
|
(2.3 |
) |
|
|
(17.0 |
) |
|
|
(12.3 |
) |
Total revenue |
|
$ |
854.5 |
|
|
$ |
708.4 |
|
|
$ |
2,964.5 |
|
|
$ |
2,530.7 |
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue by end customer geography: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
212.2 |
|
|
$ |
177.8 |
|
|
$ |
777.7 |
|
|
$ |
696.1 |
|
|
|
|
284.2 |
|
|
|
236.2 |
|
|
|
981.3 |
|
|
|
839.3 |
|
|
|
|
296.2 |
|
|
|
242.8 |
|
|
|
989.0 |
|
|
|
804.9 |
|
Other |
|
|
61.9 |
|
|
|
51.6 |
|
|
|
216.5 |
|
|
|
190.4 |
|
Total revenue |
|
$ |
854.5 |
|
|
$ |
708.4 |
|
|
$ |
2,964.5 |
|
|
$ |
2,530.7 |
|
Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
Total Bruker |
|
|
Total Bruker |
|
||||||||||
GAAP revenue as of prior comparable period |
|
$ |
708.4 |
|
|
$ |
683.5 |
|
|
$ |
2,530.7 |
|
|
$ |
2,417.9 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisitions and divestitures |
|
|
19.0 |
|
|
|
11.6 |
|
|
|
56.2 |
|
|
|
34.3 |
|
Organic |
|
|
112.5 |
|
|
|
60.8 |
|
|
|
366.4 |
|
|
|
246.5 |
|
Currency |
|
|
14.6 |
|
|
|
(47.5 |
) |
|
|
11.2 |
|
|
|
(168.0 |
) |
Total Non-GAAP adjustments: |
|
|
146.1 |
|
|
|
24.9 |
|
|
|
433.8 |
|
|
|
112.8 |
|
GAAP revenue |
|
$ |
854.5 |
|
|
$ |
708.4 |
|
|
$ |
2,964.5 |
|
|
$ |
2,530.7 |
|
Revenue growth |
|
|
20.6 |
% |
|
|
3.6 |
% |
|
|
17.1 |
% |
|
|
4.7 |
% |
Organic revenue growth |
|
|
15.9 |
% |
|
|
8.9 |
% |
|
|
14.5 |
% |
|
|
10.2 |
% |
Bruker Corporation |
||||||||||||||||
REVENUE - Continued |
||||||||||||||||
(unaudited and in millions) |
||||||||||||||||
Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth - Continued |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
Bruker Scientific Instruments (1) |
|
|
Bruker Scientific Instruments (1) |
|
||||||||||
GAAP revenue as of prior comparable period |
|
$ |
651.8 |
|
|
$ |
629.2 |
|
|
$ |
2,305.9 |
|
|
$ |
2,208.1 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisitions and divestitures |
|
|
19.0 |
|
|
|
11.6 |
|
|
|
56.2 |
|
|
|
34.3 |
|
Organic |
|
|
101.0 |
|
|
|
53.4 |
|
|
|
333.4 |
|
|
|
210.0 |
|
Currency |
|
|
11.8 |
|
|
|
(42.4 |
) |
|
|
5.3 |
|
|
|
(146.5 |
) |
Total non-GAAP adjustments: |
|
|
131.8 |
|
|
|
22.6 |
|
|
|
394.9 |
|
|
|
97.8 |
|
GAAP revenue |
|
$ |
783.6 |
|
|
$ |
651.8 |
|
|
$ |
2,700.8 |
|
|
$ |
2,305.9 |
|
Revenue growth |
|
|
20.2 |
% |
|
|
3.6 |
% |
|
|
17.1 |
% |
|
|
4.4 |
% |
Organic revenue growth |
|
|
15.5 |
% |
|
|
8.5 |
% |
|
|
14.5 |
% |
|
|
9.5 |
% |
(1) Bruker Scientific Instruments (BSI) revenue reflects the sum of the BSI BioSpin, CALID and Nano Segments as presented in our 2022 10K. |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
BEST, net of Intercompany Eliminations |
|
|
BEST, net of Intercompany Eliminations |
|
||||||||||
GAAP revenue as of prior comparable period |
|
$ |
56.6 |
|
|
$ |
54.3 |
|
|
$ |
224.8 |
|
|
$ |
209.8 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Organic |
|
|
11.5 |
|
|
|
7.4 |
|
|
|
33.0 |
|
|
|
36.5 |
|
Currency |
|
|
2.8 |
|
|
|
(5.1 |
) |
|
|
5.9 |
|
|
|
(21.5 |
) |
Total non-GAAP adjustments: |
|
|
14.3 |
|
|
|
2.3 |
|
|
|
38.9 |
|
|
|
15.0 |
|
GAAP revenue |
|
$ |
70.9 |
|
|
$ |
56.6 |
|
|
$ |
263.7 |
|
|
$ |
224.8 |
|
Revenue growth |
|
|
25.3 |
% |
|
|
4.2 |
% |
|
|
17.3 |
% |
|
|
7.1 |
% |
Organic revenue growth |
|
|
20.3 |
% |
|
|
13.6 |
% |
|
|
14.7 |
% |
|
|
17.4 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213882810/en/
Justin Ward
Sr. Director, Investor Relations & Corporate Development
Bruker Corporation
T: +1 (978) 313-5800
E: Investor.Relations@bruker.com
Source: Bruker Corporation
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