Bruker Corporation · NASDAQ:BRKR
Bruker — Q1 2016 Earnings Presentation
21 slides from Bruker's earnings presentation, May 4, 2016
Slide 1: Bruker Corporation Q1 2016 Earnings Presentation
Bruker Corporation (NASDAQ: BRKR) Q1 2016 Earnings Presentation Frank Laukien, President & CEO Anthony Mattacchione, SVP & CFO May 4, 2016 Joshua Young, VP, IR & Corporate Development Innovation with Integrity
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: Q1 2016 Business Update
Q1 2016 Business Update 3
Slide 4: Momentum continues with good organic revenue growth and margin expansion in Q1-16
Momentum continues with good organic revenue growth and margin expansion in Q1-16 Q1-2016 Performance Q1 Financials Revenues [$ m] +6% Revenue growth of $22M, or +6.2% y-o-y − FX lowers revenue by -0.9% y-o-y 353 375 − Jordan Valley acquisition adds +1.5% y-o-y Organic revenue growth of +5.6% y-
Slide 5: Q1 2016 Performance: BioSpin and CALID Groups
GROUP OVERVIEW: Q1 2016 Performance Bruker BIOSPIN Group Strong revenue growth for BioSpin Group due to weak Q1-15 comparison and high order growth in 2015 BioSpin NMR products benefit from volume and price increases, as well as from acceptance of first shielded Aeon™ 1 GHz NMR Steady growth i
Slide 6: Q1 2016 Performance: NANO Group and BEST
GROUP OVERVIEW: Q1 2016 Performance Bruker NANO Group Weak NANO Group revenue performance primarily due to soft industrial markets: petroleum, mining, metals and cement AXS reports sluggish start to the year with weakness in Europe and lower funding for single-crystal products Nano Surfaces co
Slide 7: World's first shielded Aeon 1 GHz System installed
ENC 2016 ANNOUNCEMENT: World's first shielded Aeon 1 GHz System installed Aeon 1 GHz at Research Center for Bio-Macromolecules at University of Bayreuth Active shielding reduces space requirements by > one order of magnitude Aeon 1 GHz magnets leverage advanced BEST superconductors Active refr
Slide 8: NMR expansion into applied markets; New workflows & consumables for MALDI Biotyper
ENC & ECCMID CONFERENCE ANNOUNCEMENTS IN APRIL 2016: NMR expansion into applied markets; New workflows & consumables for MALDI Biotyper NMR HoneyScreener NMR WineScreener MBT Biotargets 96 New Honey Profiling Updated Wine Profiling Disposable MBT Biotargets module in NMR module in NMR 96 impro
Slide 9: 2016 Key Priorities
2016 Key Priorities Continue Margin Expansion as we transition from our three-year Transformation phase to our next phase of Operational & Commercial Excellence Strengthen systems and management insights by harmonizing business processes and ERP platforms Accelerate profitable growth in four strateg
Slide 10: Q1 2016 Financial Update
Q1 2016 Financial Update 10
Slide 11: Q1-2016 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q1-2016 Overview [$ m, except EPS] Q1-2016 Q1-2015 Δ COMMENTS Revenues 375.4 353.5 +6% Operating leverage results in increased operating income Operating Income 47.3 35.8 +32% and EPS Margin (%) 12.6% 10.1% Reduction in customer advances, taxes on cash Non-GAAP EP
Slide 12: Q1 2016 revenue bridge
Q1 2016 revenue bridge Q1 2016 DRIVERS Q1 2016 Revenue for Bruker Corp. Organic revenue growth of +5.6% driven by Organic Currency Portfolio Total strong performance in BioSpin and CALID +5.6% -0.9% +1.5% +6.2% Groups First full quarter of Jordan Valley acquisition Q1-2016 Revenue Bridge [$ m] d
Slide 13: Q1 2016 Non-GAAP Results
Q1 2016 Non-GAAP Results [$ m, except EPS] Q1 2016 Q1 2015 Δ COMMENTS Total Revenues 375.4 353.5 +6% Gross margin: increase in BioSpin volume, mix, Gross Profit 175.4 167.1 +5% price, and restructuring Margin (% of revenues) 46.7% 47.3% effects; offset by lower SG&A -92.0 -94.1 -2% NANO volume and
Slide 14: Q1 2016 Cash Flow Statement
Q1 2016 Cash Flow Statement [$ m] Q1 2016 Q1 2015 Δ COMMENTS Net Income 23.6 6.9 +16.7 Y-o-Y free cash flow comparison driven by: Depreciation & amortization 13.2 13.5 -0.3 – Higher customer advances due to strong Changes in working capital* -1.3 30.5 -31.8 NMR orders in Q1-15 Other -49.5 -23.9 -2
Slide 15: 2016 Outlook
2016 Outlook 15
Slide 16: FY-2016 Guidance - Unchanged
FY-2016 Guidance - Unchanged FY-2016 Guidance 2016 ASSUMPTIONS FY 2016 tax rate: Organic Revenue Growth Approximately +3% 25%-28% Fully diluted share count: 163M-165M Non-GAAP Operating Approximately +100 bps shares Margin Expansion y-o-y Capex: ~$50M Non-GAAP EPS $0.97 - $1.02 Current curre
Slide 17: Appendix
Appendix 17
Slide 18: Q1 2016 GAAP Results
Q1 2016 GAAP Results [$ m, except EPS] Q1 2016 Q1 2015 Δ Total Revenues 375.4 353.5 +6% Gross Profit 166.8 160.2 +4% Margin (% of sales) 44.4% 45.3% SG&A -92.7 -94.6 -2% (% of revenues) 24.7% 26.8% R&D -36.1 -37.2 -3% (% of revenues) 9.6% 10.5% Operating Income 34.0 15.2 +124% (% of revenues) 9.1% 4
Slide 19: Q1 2016 Reconciliation of GAAP and Non-GAAP Results
Q1 2016 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q1 2016 Q1 2015 GAAP Operating Income 34.0 15.2 Restructuring Costs 3.8 3.3 Acquisition-Related Costs 1.9 0.2 Purchased Intangible Amortization 5.4 5.2 Other Costs 2.2 11.9 TOTAL 13.3 20.6 Non-GAAP Operating Income 47.3 35.8 Non-G
Slide 20: Balance sheet
Balance sheet [$ m] Mar 31, 2016 Dec 31, 2015 Mar 31, 2015 Total Assets 1,739.8 1,730.0 1,771.7 Working Capital* 598.4 584.6 614.4 Intangibles, Net & Other Long-Term 275.4 267.4 238.3 Assets [$ m] Mar 31, 2016 Dec 31, 2015 Mar 31, 2015 Cash, Cash Equivalents & Short-term 420.5 468.3 492.3 Investment
Slide 21: BSI and BEST GAAP Performance
Q1-16 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q1 2016 Q1 2015 Δ REVENUE Scientific Instruments (BSI) 350.4 327.5 +7% Organic Revenue Growth (%) +6.2% -3.6% Energy & Supercon Technologies (BEST) 27.2 27.5 -1% Organic Revenue Growth (%) +0.2% -4.1% Corporate Eliminations -2.2 -1.5 To