Bruker Corporation · NASDAQ:BRKR
Bruker — Q2 2013 Earnings Presentation
26 slides from Bruker's earnings presentation, Jul 31, 2013
Slide 1: Q2 2013 Earnings Presentation
Bruker Corporation (NASDAQ: BRKR) Q2 2013 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO July 31, 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: Q2 & H1 2013 Business Update
Q2 & H1 2013 Business Update © Bruker Corporation 3
Slide 4: After slow start to 2013, business has rebounded & YTD performance is on track
After slow start to 2013, business has rebounded & YTD performance is on track Q2 2013 Performance Q2 2013 Financials Good organic revenue growth of 9.5% in Revenues [$ m] +8% tough environment 1. Fewer operational issues 455 2. Market environment remains “mixed” 421 Effective management of oper
Slide 5: After slow start to 2013, business has rebounded & YTD performance is on track (H1)
After slow start to 2013, business has rebounded & YTD performance is on track H1 2013 Performance H1 2013 Financials Reported revenue growth of 3%: on track Revenues [$ m] +3% with guidance Organic revenue growth: 4.3% 848 Non-GAAP operating margin declined 20 basis 826 points, including ~100
Slide 6: Group Overview: Q2 2013 Performance
GROUP OVERVIEW: Q2 2013 Performance Bruker CALID* Group Good performance by Optics division after weak Q1, due to improved production and order execution Detection division: strong performance in quarter CAM division: good orders, expect growth & lower loss in H2 Life Science & Clinical divi
Slide 7: Group Overview: Q2 2013 Performance
GROUP OVERVIEW: Q2 2013 Performance Bruker MAT Group Weak performance primarily due to soft demand from industrial and microelectronics/semiconductor customers Revenue in all BMAT divisions was flat or down Good adoption of new Dimension FastScan AFM products in data storage and life science m
Slide 8: Q2 2013 Significant Product Introductions
Q2 2013 Significant Product Introductions Bruker continues dual strategy of Innovation & Transformation ECCMID April 2013 ENC April 2013 ASMS June 2013 MALDI Biotyper™ (MBT) NEW Actively Refrigerated eXtreme ID for Proteomics • 800 units installed worldwide Ascend™ Aeon Magnets NEW performance-leadi
Slide 9: While markets remain uncertain, we are on track after the first six months of 2013
While markets remain uncertain, we are on track after the first six months of 2013 1 Continue to focus on innovation, controlling expenses, organizational change and operational excellence initiatives 2 Expect strength in BioSpin and CALID will offset weakness in BMAT & industrial markets in H2 2013
Slide 10: Q2 2013 Financial Update
Q2 2013 Financial Update © Bruker Corporation 10
Slide 11: Q2 2013 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q2 2013 Overview [$ m] Q2 2013 Q2 2012 Δ COMMENTS Revenues 454.9 420.7 8% Rebound of revenues from weak Q1 led by BioSpin & Operating Income 53.3 33.0 62% CALID Groups Margin (%) 11.7% 7.8% Operating margin improved due to lower operating EPS 0.18 0.12 50% expense
Slide 12: Q2 2013 revenue bridge
Q2 2013 revenue bridge Q2 2013 DRIVERS Q2 2013 Revenues for Bruker Corp. Excluding Rosatom Acquisitions & license, organic revenue Organic Currency Divestitures Total growth was 8.1% 9.5% -0.8% -0.6% 8.1% Weak Japanese Yen drove negative FX impact in the quarter Negative net effect from Q2 201
Slide 13: Q2 2013 Non-GAAP Results
Q2 2013 Non-GAAP Results [$ m] Q2 2013 Q2 2012 Δ COMMENTS Total Revenues 454.9 420.7 8% Gross margin declined by ~60 basis points Gross Profit 206.5 194.6 6% primarily due to Margin (% of sales) 45.4% 46.3% currency; BMAT revenue declines also affected SG&A -106.7 -109.7 -3% gross margin (% of rev
Slide 14: Q2 2013 Reconciliation of GAAP to Non-GAAP Results
Q2 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] Q2 2013 Q2 2012 GAAP Operating Income 43.5 22.1 Restructuring Costs 1.8 0.1 Acquisition Related Costs 0.3 2.4 Purchased Intangible Amortization 5.1 5.6 Other Costs 2.6 2.8 TOTAL 9.8 10.9 Non-GAAP Operating Income 53.3 33.0 Non-GAAP Net Interes
Slide 15: H1 2013 Non-GAAP Results
H1 2013 Non-GAAP Results [$ m] H1 2013 H1 2012 Δ Total Revenues 848.3 826.3 3% Gross Profit 386.0 390.0 -1% Margin (% of sales) 45.5% 47.2% SG&A -213.2 -213.3 0% (% of revenues) 25.1% 25.8% R&D -95.9 -100.1 -4% (% of revenues) 11.3% 12.1% Operating Income 76.9 76.6 0% (% of revenues) 9.1% 9.3% Net I
Slide 16: H1 2013 Reconciliation of GAAP to Non-GAAP Results
H1 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] H1 2013 H1 2012 GAAP Operating Income 55.7 56.5 Restructuring Costs 5.0 0.3 Acquisition Related Costs 0.9 3.2 Purchased Intangible Amortization 10.2 10.7 Other Costs 5.1 5.9 TOTAL 21.2 20.1 Non-GAAP Operating Income 76.9 76.6 Non-GAAP Net Inte
Slide 17: Balance sheet
Balance sheet [$ m] June 30, 2013 Dec 31, 2012 Δ Total Assets 1,801.8 1,856.4 -3% Equity 722.7 709.7 2% Cash & Cash Equivalents 250.9 310.6 -19% Inventory 601.8 611.5 -2% Intangible & Other Assets 250.2 263.1 -5% Financial Debt 336.5 337.2 NM Net Debt 85.6 26.6 222% © Bruker Corporation 17
Slide 18: Q2 2013 Cash Flow Statement
Q2 2013 Cash Flow Statement [$ m] Q2 2013 Q2 2012 Δ COMMENTS Net Income 23.3 9.9 13.4 Cash flow affected by higher receivables and tax payments Depreciation & amortization 15.0 15.0 -- Year-over-year Changes in working capital* -21.0 -5.2 -15.8 difference in “Other” is driven by large Rosatom Ot
Slide 19: 2013 Guidance
2013 Guidance © Bruker Corporation 19
Slide 20: Unchanged Guidance for FY 2013
Unchanged Guidance for FY 2013 (as issued on May 2, 2013) Bruker FY 2013 Guidance ASSUMPTIONS Organic revenue growth Revenue Growth ~2%-3% approximately 3% Profitability skewed to Q4 2013 Restructuring Costs ~$20-$25M Reported GAAP numbers will be burdened by restructuring charges Non-GAAP Tax
Slide 21: Appendix
Appendix © Bruker Corporation 21
Slide 22: Q2 2013 GAAP Results
Q2 2013 GAAP Results [$ m] Q2 2013 Q2 2012 Δ Total Revenues 454.9 420.7 8% Gross Profit 201.6 188.2 7% Margin (% of sales) 44.3% 44.7% SG&A -107.1 -110.6 -3% (% of revenues) 23.5% 26.3% R&D -46.5 -51.9 -10% (% of revenues) 10.2% 12.3% Operating Income 43.5 22.1 97% (% of revenues) 9.6% 5.3% Net Inco
Slide 23: H1 2013 GAAP Results
H1 2013 GAAP Results [$ m] H1 2013 H1 2012 Δ Total Revenues 848.3 826.3 3% Gross Profit 376.1 378.6 -1% Margin (% of sales) 44.3% 45.8% SG&A -213.9 -215.0 -1% (% of revenues) 25.2% 26.0% R&D -95.9 -100.1 -4% (% of revenues) 11.3% 12.1% Operating Income 55.7 56.5 -1% (% of revenues) 6.6% 6.8% Net Inc
Slide 24: H1 2013 revenue bridge
H1 2013 revenue bridge H1 2013 Revenues for Bruker Corp. Acquisitions & Organic Currency Divestitures Total 4.3% -1.1% -0.5% 2.7% H1 2013 Revenue bridge [$ m] 35.5 -9.5 -4.0 848.3 826.3 H1 2012 Organic Currency Acquisition H1 2013 © Bruker Corporation 24
Slide 25: H1 2013 Cash Flow Statement
H1 2013 Cash Flow Statement [$ m] H1 2013 H1 2012 Δ Net Income 29.0 25.0 4.0 Depreciation & amortization 30.2 28.6 1.6 Changes in working capital* -41.6 -18.0 -23.6 Other -42.5 6.3 -48.8 Operating cash flow -24.9 41.9 -66.8 Capital expenditures -31.1 -30.4 -0.7 Free cash flow -56.0 11.5 -67.5 * WC =
Slide 26: BSI and BEST GAAP Performance
Q2 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q2 2013 Q2 2012 Δ REVENUE Scientific Instruments (BSI) 421.6 397.0 6% Energy & Supercon Technologies (BEST) 37.1 26.0 43% Corporate Eliminations & Other -3.8 -2.3 Total Revenue 454.9 420.7 8% OPERATING INCOME (LOSS) Scientific Instruments (BSI)