Contenu connexe Similaire à Bruker q1 2014 earnings presentation final Similaire à Bruker q1 2014 earnings presentation final (20) Plus de InvestorBruker (7) Bruker q1 2014 earnings presentation final1. Bruker Corporation (NASDAQ: BRKR)
Q1 2014 Earnings Presentation
Frank Laukien, President & CEO
Charles Wagner, EVP & CFO
Joshua Young, VP, Investor RelationsMay 7, 2014
Innovation with Integrity
2. Any statements contained in this presentation that do not describe historical facts may constitute
forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.
Any forward-looking statements contained herein are based on current expectations, but are subject to
risks and uncertainties that could cause actual results to differ materially from those projected, including,
but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy
and volatility in the capital markets, the integration of businesses we have acquired or may acquire in the
future, changing technologies, product development and market acceptance of our products, the cost and
pricing of our products, manufacturing, competition, dependence on collaborative partners and key
suppliers, capital spending and government funding policies, changes in governmental regulations,
realization of anticipated benefits from economic stimulus programs, intellectual property rights,
litigation, and exposure to foreign currency fluctuations and other risk factors discussed from time to time
in our filings with the Securities and Exchange Commission. These and other factors are identified and
described in more detail in our filings with the SEC, including, without limitation, our annual report on
Form 10-K for the year ended December 31, 2013. We will also be referencing non-GAAP financial
measures in this presentation. A reconciliation of non-GAAP to GAAP results is available in our earnings
press release and in this presentation.
Bruker Corporation
Safe Harbor & Reg. G Statement
© Bruker Corporation 2
4. $0.08
$0.11
Q1 2013
Q1 2014
Q1 Financials
Revenues [$ m]
Non-GAAP EPS
Solid start to the year with operating margin
expansion and growth from all three BSI Groups
+8%
+38%
© Bruker Corporation 4
393
424
Q1 13 Q1 14
Q1 2014 Performance
Organic revenue growth of ~7% y-o-y
1.Double-digit growth in CALID, driven by
Optics and Life Science divisions; easy
comparison to weak Q1 2013
2.Mid-single digit revenue growth in BioSpin
and BMAT Groups
3.Continued revenue growth in Europe
Non-GAAP Operating margin expands by 160
basis points; operating expense control more
than offsets currency impact on gross margins
38% non-GAAP EPS growth in Q1 2014
compared to Q1 2013
Free cash flow improves by $42M, totaling $9M
in Q1 2014 compared to ($33M) in Q1 2013
5. Bruker BioSpin Group
Mid-single digit revenue growth, with strongest growth in Asia
Pacific, continued growth in Europe
Quarter-to-quarter fluctuations in product/geographic mix
Pre-Clinical Imaging Division posts a strong quarter driven by MRI
revenue growth; improving molecular imaging trends
Outsourcing programs in Germany and France on track
Bruker CALID Group
Double-digit growth in revenues, compared to weak Q1 2013
Optics and Life Science & Clinical (LSC) Divisions drive growth
Optics: new products Tango and Lumos well-accepted
LSC: MALDI Biotyper good momentum, Q-TOF products
perform well; divested Leipzig machine shop in Q1 2014
CAM Division posts weak performance; Sales management
combined with LSC in Q1 2014; review of cost structure underway
Detection Division revenues dip due to export license delays
5© Bruker Corporation
GROUP OVERVIEW:
Q1 2014 Performance
6. Bruker MAT Group
BMAT Group delivers mid-single digit revenue growth, compared
to a weak Q1 2013
General industrial markets stabilize, but no recovery yet in
microelectronics markets
Research and academic markets remain healthy
BAXS, BNS, and BNA Divisions all grew, compared to Q1 2013;
BNS benefited from fluorescence microscopy acquisition
Profitability improved compared to Q1 2013, as operating
expenses were reduced by second–half 2013 restructuring actions
BEST Segment
Revenue growth of 12% and non-GAAP operating margin of 8.0%
Growth benefits from revenue timing, and margin benefits from
2013 cost initiatives
Contract renewals with key MRI customers for superconducting
wire
GROUP OVERVIEW:
Q1 2014 Performance
6© Bruker Corporation
8. NON-GAAP FINANCIAL PERFORMANCE:
Q1 2014 Overview
[$ m, except EPS] Q1 2014 Q1 2013 Δ
Revenues 423.7 393.4 8%
Operating Income 32.1 23.6 36%
Margin (%) 7.6% 6.0%
EPS 0.11 0.08 38%
Free Cash Flow 9.3 -32.8 42.1M
Revenue growth in all BSI
Groups and at BEST
Operating margin
expansion, driven by
control of operating
expenses
EPS growth of 38%
Free cash flow of $9 million
8© Bruker Corporation
COMMENTS
[$ m] Mar 31,2014 Dec 31,2013 Δ
Net Cash 99.2 83.7 19%
Working capital (WC)* 799.1 822.6 -3%
WC-to-revenue ratio 0.43 0.45 -0.02
* WC = (Accounts Receivable +
Inventory – Accounts Payable)
9. Q1 2013 Organic Currency Acquisition Q1 2014
393.4
423.7
Q1 2014 revenue bridge
Revenue growth driven
by Europe and Asia
Minimal net currency
impact, with stronger
Euro offset by weaker
Yen and other currencies
Benefit from BMAT
acquisition of Prairie
Technologies’
fluorescence microscopy
products, completed in
September 2013
9© Bruker Corporation
Q1 2014 DRIVERS
Q1 2014 Revenue bridge [$ m]
25.9 0.0 4.4
Organic Currency
Acquisitions &
Divestitures Total
6.6% 0.0% 1.1% 7.7%
Q1 2014 Revenue Growth for Bruker Corp.
10. Q1 2014 Non-GAAP Results
Gross margin decline of
140 bps primarily due to
currency impact
Y-o-y impact of Yen
devaluation lessens in
Q2 2014 and beyond
Expense control and
2013 restructuring drive
300 bps decline in
operating expense
Tax rate of 25.5% is
below full-year 2014
expectation, due to
timing of discrete items
10© Bruker Corporation
COMMENTS[$ m] Q1 2014 Q1 2013 Δ
Total Revenues 423.7 393.4 8%
Gross Profit 187.2 179.5 4%
Margin (% of sales) 44.2% 45.6%
SG&A -109.1 -106.5 2%
(% of revenues) 25.7% 27.1%
R&D -46.0 -49.4 -7%
(% of revenues) 10.9% 12.6%
Operating Income 32.1 23.6 36%
(% of revenues) 7.6% 6.0%
Tax Rate 25.5% 27.1% -160 bps
Net Income* 18.7 13.4 40%
EPS $0.11 $0.08 38%
Shares Outstanding 169.4 168.1 NM
* Attributable to BrukerSum of items may not total due to rounding
11. Q1 2014 Reconciliation of GAAP and
Non-GAAP Results
[$ m] Q1 2014 Q1 2013
GAAP Operating Income 20.6 12.2
Restructuring Costs 2.4 3.2
Acquisition Related Costs 1.1 0.6
Purchased Intangible Amortization 5.2 5.1
Other Costs 2.8 2.5
TOTAL 11.5 11.4
Non-GAAP Operating Income 32.1 23.6
Non-GAAP Net Interest Income (Expense) & Other -5.2 -4.8
Non GAAP Profit Before Tax 26.9 18.8
Taxes -6.9 -5.1
Non-GAAP Tax Rate 25.5% 27.1%
Minority Interest -1.3 -0.3
Non-GAAP Net Income* 18.7 13.4
Non-GAAP EPS $0.11 $0.08
11© Bruker Corporation
* Attributable to BrukerSum of items may not total due to rounding
12. Balance sheet
[$ m] Mar 31, 2014 Dec 31, 2013 Δ
Cash & Cash Equivalents 454.0 438.7 3%
Financial Debt 354.8 355.0 NM
Net Cash 99.2 83.7 19%
12© Bruker Corporation
[$ m] Mar 31, 2014 Dec 31, 2013 Δ
Total Assets 2,027.7 1,988.3 2%
Working Capital 799.1 822.6 -3%
Intangible & Other Assets 254.3 256.9 -1%
13. Q1 2014 Cash Flow Statement
Inventory DIO improved
by 30 days vs. Q1 2013
– Still room for
improvement
Cash flow benefit from
timing of payments
Capex now at a more
normalized level
13© Bruker Corporation
COMMENTS[$ m] Q1 2014 Q1 2013 Δ
Net Income 10.0 5.7 4.3
Depreciation & amortization 15.2 15.2 0.0
Changes in working capital* 17.0 -20.5 37.5
Other -23.7 -18.6 -5.1
Operating cash flow 18.5 -18.2 36.7
Capital expenditures -9.2 -14.6 5.4
Free cash flow 9.3 -32.8 42.1
15. Bruker FY 2014 Guidance
Revenue Growth (reported) 3% to 4%
Restructuring Costs ~$15-$20M
Non-GAAP Tax Rate ~29%-30%
Non-GAAP EPS Growth 10% to 14%
15© Bruker Corporation
FY 2014 Guidance
No change to full-year
guidance
Revenue growth of all
three BSI Groups similar to
total company growth
Less than $50M of capex
Q2-14 financial
performance expected to
be similar to relatively
strong Q2-13
Current currency
assumptions:
Yen/USD: 103
EUR/USD: 1.38
ASSUMPTIONS
17. Q1 2014 GAAP Results
[$ m] Q1 2014 Q1 2013 Δ
Total Revenues 423.7 393.4 8%
Gross Profit 179.7 174.5 3%
Margin (% of sales) 42.4% 44.4%
SG&A -109.5 -106.8 3%
(% of revenues) 25.8% 27.1%
R&D -46.0 -49.4 -7%
(% of revenues) 10.9% 12.6%
Operating Income 20.6 12.2 69%
(% of revenues) 4.9% 3.1%
Net Income* 8.7 5.4 61%
EPS $0.05 $0.03 67%
Shares Outstanding 169.4 168.1 NM
17© Bruker Corporation
* Attributable to BrukerSum of items may not total due to rounding
18. Q1 SEGMENT RESULTS:
BSI and BEST GAAP Performance
[$ m] Q1 2014 Q1 2013 Δ
REVENUE
Scientific Instruments (BSI) 393.9 366.3 8%
Organic Revenue Growth (%) 6.6% -1.0%
Energy & Supercon Technologies (BEST) 34.8 31.2 12%
Organic Revenue Growth (%) 7.4% 3.4%
Corporate Eliminations & Other -5.0 -4.1
Total Revenue 423.7 393.4 8%
OPERATING INCOME
Scientific Instruments (BSI) 16.6 10.6 57%
Energy & Supercon Technologies (BEST) 2.8 0.9 211%
Corporate Eliminations and Other 1.2 0.7
Total Operating Income 20.6 12.2 69%
18© Bruker Corporation
Sum of items may not total due to rounding