Bruker Reports First Quarter 2019 Financial Results

BILLERICA, Mass., May 2, 2019 /PRNewswire/ -- Bruker Corporation (Nasdaq: BRKR) today announced financial results for its first quarter ended March 31, 2019.

Bruker's revenues for the first quarter of 2019 were $461.4 million, an increase of 6.9% compared to the first quarter of 2018. In the first quarter of 2019, Bruker's year-over-year organic revenue growth was 5.5%. Growth from acquisitions was 6.0%, while foreign currency translation had a negative effect of 4.6%.

First quarter 2019 Bruker Scientific Instruments (BSI) segment revenues of $416.8 million increased 7.7% compared to the first quarter of 2018, including organic growth of 5.5%. First quarter 2019 Bruker Energy & Supercon Technologies (BEST) segment revenues of $44.6 million decreased 0.2% compared to the first quarter of 2018, including organic growth, net of intercompany eliminations, of 5.4%.

First quarter 2019 GAAP operating income was $41.9 million, compared to $38.1 million in the first quarter of 2018, representing a GAAP operating margin of 9.1%, compared to 8.8% in the first quarter of 2018. Non-GAAP operating income was $62.3 million, compared to $52.9 million in the first quarter of 2018. Bruker's first quarter 2019 non-GAAP operating margin was 13.5%, up 125 basis points (bps) from 12.3% in the first quarter of 2018, including a favorable impact of 80 bps from changes in foreign currency rates.

First quarter 2019 GAAP diluted earnings per share (EPS) were $0.20, compared to $0.17 in the first quarter of 2018. First quarter 2019 non-GAAP diluted EPS were $0.28, a 16.7% increase compared to $0.24 in the first quarter of 2018.

A reconciliation of non-GAAP to GAAP financial measures is provided in the tables accompanying this press release.

Frank Laukien, President and CEO of Bruker, commented: "Bruker is off to a solid start in fiscal year 2019, with good organic revenue growth, as well as sustained margin expansion and EPS improvement. Our dual strategy of portfolio transformation and operational excellence continues to yield improving results. With attractive secular growth opportunities for our Project Accelerate initiatives, great product innovation, and mostly healthy end markets, we believe that Bruker is on track to deliver on our updated 2019 financial commitments."

Fiscal Year (FY) 2019 Financial Outlook

Bruker is raising its full year 2019 revenue and earnings guidance to reflect positive first quarter 2019 financial performance and recent acquisitions, partially offset by higher unfavorable foreign exchange impact on revenues for the year. The Company now expects year-over-year revenue growth of 7.0% to 8.0%, including the following updates from our previously issued outlook on February 11, 2019:

• organic revenue growth of 4.5% to 5.5%;
• growth from acquisitions of approximately 5.0%;
• constant currency revenue growth of 9.5% to 10.5%;
• a foreign currency revenue headwind of approximately 2.5%;
• non-GAAP operating margin expansion of 90 bps to 120 bps, from 16.8% in FY 2018, including an estimated 30 bps tailwind from foreign currency translation in FY 2019, and
• non-GAAP EPS of $1.57 to $1.61, an increase of 12% to 15% compared to FY 2018.

For the Company's outlook for FY 2019 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 2^nd, at 4:30 p.m. Eastern Daylight Time. To listen to the webcast, investors can go to https://ir.bruker.com and click on the "Q1 2019 Earnings Webcast" 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 1-888-437-2685 (US toll free) or +1-412-317-6702 (international),and referencing "Bruker's First Quarter 2019 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: 10131125. The replay will be available beginning one hour after the end of the conference through June 2, 2019.

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 earnings 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 profit before tax; non-GAAP tax rate; non-GAAP net income and non-GAAP 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 refer to organic revenue growth and free cash flow in this press release or on the earnings webcast, 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. 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 only 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. 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 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 "Bruker Earnings Release" hyperlink on Bruker's Investor Relations web site ir.bruker.com. 

With respect to the Company's outlook for 2019 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 management's expectations for future financial and operational performance, expected growth, and business outlook; statements regarding our business focus; our fiscal year 2019 outlook; 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 adverse changes in conditions in the global economy and volatility in the capital markets, 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.

-tables follow-

Contacts:
Pam Clark
Investor Relations
Bruker Corporation 
T: +1 (978) 663–3660, ext 1479
E: [email protected]

SOURCE Bruker Corporation

Related Links

https://www.bruker.com

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