Bruker Corporation · NASDAQ:BRKR
Bruker — Q3 2013 Earnings Presentation
26 slides from Bruker's earnings presentation, Nov 1, 2013
Slide 1: Q3 2013 Earnings Presentation
Bruker Corporation (NASDAQ: BRKR) Q3 2013 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO November 1, 2013 Joshua Young, VP, Investor Relations
Slide 2: Safe Harbor & Reg. G Statement
Bruker Corporation Safe Harbor & Reg. G Statement 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 he
Slide 3: Q3 & YTD 2013 Business Update
Q3 & YTD 2013 Business Update © Bruker Corporation 3
Slide 4: Weak industrial markets, decline in BioSpin revenues and tough comparison drive Q3 results
Weak industrial markets, decline in BioSpin revenues and tough y-o-y comparison drive results Q3 2013 Performance Q3 Financials Organic revenue decline 2.4% year-over-year Revenues [$ m] -2% 1. Weak industrial demand leads to low- single digit decline of BMAT revenues 448 439 2. BioSpin performanc
Slide 5: Our YTD revenue growth is roughly in-line with the broader life science tools market
Our YTD revenue growth is roughly in-line with the broader life science tools market Q3 2013 YTD Performance Q3 YTD Performance Organic revenue growth of 2.0% Revenues [$ bn] +1% 1. CALID & BioSpin generate mid-single 1.29 digit revenue growth 1.27 2. BMAT revenues decline mid-single digits, with
Slide 6: Group Overview: Q3 & YTD 2013 Performance
GROUP OVERVIEW: Q3 & YTD 2013 Performance Bruker CALID* Group Optics division posted strong growth in Q3 13, and is on track to post solid full year results Life Science & Clinical division posts modest Q3 13 growth after slow start to year; double-digit MALDI Biotyper growth continues CAM div
Slide 7: Group Overview: Q3 & YTD 2013 Performance
GROUP OVERVIEW: Q3 & YTD 2013 Performance Bruker MAT Group Q3 BMAT Group revenues down low-single digits year-over-year Industrial markets remain weak, with modest y-o-y and sequential improvement in new order bookings after a challenging H1 2013 AXS growth in Q3 13 led by X-Ray Fluorescence p
Slide 8: Actions in 2013 expected to drive $15M to $20M of cost savings in 2014
We are taking actions in 2013 that are expected to drive $15M to $20M of cost savings in 2014 Q4 2013 • Closing CAM plant/R&D facility in Europe Facility • Closing BEST CGM business unit in Europe Closures • Closing BMI plant • On-going outsourcing of BioSpin and other Outsource Groups’ non-core man
Slide 9: While 2013 will be a difficult year, we are laying the foundation for profitable growth
While 2013 will be a difficult year, we are laying the foundation for profitable growth 1 We have made significant organizational and management changes that will provide positive benefits in the future 2 We are reducing our cost structure and have established better operating expense discipline thr
Slide 10: Q3 2013 Financial Update
Q3 2013 Financial Update © Bruker Corporation 10
Slide 11: Q3 2013 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q3 2013 Overview [$ m] Q3 2013 Q3 2012 Δ COMMENTS Revenues 439.0 447.8 -2% Organic revenue decline of 2.4% Operating Income 47.3 69.4 -32% Y-O-Y operating income Margin (%) 10.8% 15.5% decline primarily driven by BEST (Rosatom) and EPS 0.20 0.28 -29% BioSpin Fre
Slide 12: Q3 2013 revenue bridge
Q3 2013 revenue bridge Q3 2013 DRIVERS Q3 2013 Revenues for Bruker Corp. Net positive currency Acquisitions & benefit due to the Organic Currency Divestitures Total strengthening of the Euro during the quarter; -2.4% 0.5% -0.1% -2.0% Yen impact remains negative compared to 2012 Negative net effe
Slide 13: Q3 2013 Non-GAAP Results
Q3 2013 Non-GAAP Results [$ m] Q3 2013 Q3 2012 Δ COMMENTS Total Revenues 439.0 447.8 -2% Rosatom added ~$16M to Q3 12 Gross Profit Gross Profit 198.2 215.9 -8% Margin (% of sales) 45.1% 48.2% Operating spending continues to be well- SG&A -105.4 -101.6 4% controlled (% of revenues) 24.0% 22.7%
Slide 14: Q3 2013 Reconciliation of GAAP to Non-GAAP Results
Q3 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] Q3 2013 Q3 2012 GAAP Operating Income 31.5 60.3 Restructuring Costs 8.6 0.1 Acquisition Related Costs 1.3 -0.3 Purchased Intangible Amortization 5.1 5.5 Other Costs 0.8 3.8 TOTAL 15.8 9.1 Non-GAAP Operating Income 47.3 69.4 Non-GAAP Net Intere
Slide 15: YTD 2013 Non-GAAP Results
YTD 2013 Non-GAAP Results [$ m] YTD 2013 YTD 2012 Δ Total Revenues 1,287.3 1,274.1 1% Gross Profit 584.2 604.9 -3% Margin (% of sales) 45.4% 47.5% SG&A -318.6 -313.9 1% (% of revenues) 24.7% 24.6% R&D -141.4 -145.0 -2% (% of revenues) 11.0% 11.4% Operating Income 124.2 146.0 -15% (% of revenues) 9.6
Slide 16: YTD 2013 Reconciliation of GAAP to Non-GAAP Results
YTD 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] YTD 2013 YTD 2012 GAAP Operating Income 87.2 116.8 Restructuring Costs 13.6 0.4 Acquisition Related Costs 2.2 2.9 Purchased Intangible Amortization 15.3 16.2 Other Costs 5.9 9.7 TOTAL 37.0 29.2 Non-GAAP Operating Income 124.2 146.0 Non-GAAP N
Slide 17: Balance sheet
Balance sheet [$ m] Sept 30, 2013 Dec 31, 2012 Δ Total Assets 1,936.2 1,856.4 4% Equity 780.6 709.7 10% Cash & Cash Equivalents 306.8 310.6 -1% Inventory 632.0 611.5 3% Intangible & Other Assets 265.9 263.1 1% Financial Debt 355.7 337.2 5% Net Debt 48.9 26.6 84% © Bruker Corporation 17
Slide 18: Q3 2013 Cash Flow Statement
Q3 2013 Cash Flow Statement [$ m] Q3 2013 Q3 2012 Δ COMMENTS Net Income 16.9 39.9 -23.0 Working capital improves as accounts payable and accounts receivable Depreciation & amortization 15.2 13.9 1.3 become a source of cash compared to a use of Changes in working capital* 9.0 -24.8 33.8 cash in Q3
Slide 19: 2013 Guidance
2013 Guidance © Bruker Corporation 19
Slide 20: Lowering FY 2013 Guidance
Lowering FY 2013 Guidance Bruker FY 2013 Guidance ASSUMPTIONS Full year revenues of Revenue Growth (reported) -1% to 0% $1,780M to $1,800M, reflect assumption for organic revenue growth of 0% to 1% Restructuring Costs ~$20-$25M BMAT Q4 13 revenue down double-digits y-o-y, compared to strong Q4 1
Slide 21: Appendix
Appendix © Bruker Corporation 21
Slide 22: Q3 2013 GAAP Results
Q3 2013 GAAP Results [$ m] Q3 2013 Q3 2012 Δ Total Revenues 439.0 447.8 -2% Gross Profit 193.2 210.1 -8% Margin (% of sales) 44.0% 46.9% SG&A -105.7 -102.4 3% (% of revenues) 24.1% 22.9% R&D -45.5 -44.9 1% (% of revenues) 10.4% 10.0% Operating Income 31.5 60.3 -48% (% of revenues) 7.2% 13.5% Net Inc
Slide 23: YTD 2013 GAAP Results
YTD 2013 GAAP Results [$ m] YTD 2013 YTD 2012 Δ Total Revenues 1,287.3 1,274.1 1% Gross Profit 569.3 587.7 -3% Margin (% of sales) 44.2% 46.1% SG&A -319.6 -316.4 1% (% of revenues) 24.8% 24.8% R&D -141.4 -145.0 -2% (% of revenues) 11.0% 11.4% Operating Income 87.2 116.8 -25% (% of revenues) 6.8% 9.2
Slide 24: YTD 2013 revenue bridge
YTD 2013 revenue bridge YTD 2013 Revenues for Bruker Corp. Acquisitions & Organic Currency Divestitures Total 2.0% -0.6% -0.4% 1.0% H1 2013 Revenue bridge [$ m] 24.8 -7.3 -4.3 1,274.1 1,287.3 Q3 YTD 2012 Organic Currency Acquisition Q3 YTD 2013 © Bruker Corporation 24
Slide 25: YTD 2013 Cash Flow Statement
YTD 2013 Cash Flow Statement [$ m] YTD 2013 YTD 2012 Δ Net Income 45.9 64.9 -19.0 Depreciation & amortization 45.4 42.5 2.9 Changes in working capital* -32.6 -42.8 10.2 Other -45.1 -22.4 -22.7 Operating cash flow 13.6 42.2 -28.6 Capital expenditures -41.3 -49.8 8.5 Free cash flow -27.7 -7.6 -20.1 *
Slide 26: BSI and BEST GAAP Performance
Q3 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q3 2013 Q3 2012 Δ REVENUE Scientific Instruments (BSI) 410.6 408.9 0% Energy & Supercon Technologies (BEST) 32.5 42.4 -23% Corporate Eliminations & Other -4.1 -3.5 Total Revenue 439.0 447.8 -2% OPERATING INCOME (LOSS) Scientific Instruments (BS