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TheStreet Open House

Bruker Reports Financial Results For The Third Quarter Of 2012

Stocks in this article: BRKR

For example:

We exclude certain acquisition-related charges or credits and associated tax effects, including charges for the sale of inventories revalued at the date of acquisition, significant transaction costs such as legal fees and credits associated with bargain purchases. We exclude these costs because we do not believe they are indicative of our normal operating costs.

We exclude charges and tax effects associated with restructuring and business divestiture activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring and business divestiture activities are not indicative of our normal operating costs.

We exclude the expense and tax effects associated with the amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of 3 to 12 years. Exclusion of these non-cash amortization expenses allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses.

Bruker’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the company’s core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes.

The non-GAAP financial measures of Bruker’s results of operations included in this press release are not meant to be considered superior to or a substitute for Bruker’s results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.

EARNINGS CONFERENCE CALL

Bruker Corporation will host an operator-assisted earnings conference call at 9:00 a.m. Eastern Time on Monday, November 5, 2012. To listen to the webcast, investors can go to http://ir.bruker.com and click on the live web broadcast symbol. The webcast will be available through the Company web site for 30 days. Investors can also listen and participate on the telephone in the US and Canada by calling 800-688-0796, or +1-617-614-4070 outside the US and Canada. Investors should refer to the Bruker Earnings Call. A telephone replay of the conference call will be available one hour after the conference call by dialing 888-286-8010 in the US and Canada, or +1-617-801-6888 outside the US and Canada, and then entering replay pass code 75969744. For more information, please visit http://ir.bruker.com.

CAUTIONARY STATEMENT OF BRUKER CORPORATION

Any statements contained in this press release 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, the outcome of any actions that may be taken by government agencies in connection with FCPA compliance matters we have disclosed to them, 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, 2011, our most recent quarterly report on Form 10-Q and our current reports on Form 8-K. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by law.

 

Bruker Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 
      Three Months Ended     Nine Months Ended
(in millions, except per share amounts) September 30, September 30,
  2012       2011   2012       2011  
 
Revenues $ 447.8 $ 418.4 $ 1,274.1 $ 1,176.6
Cost of revenues   237.2     229.0   684.9     641.8  
 
Gross profit 210.6 189.4 589.2 534.8
 
Operating Expenses:
Selling, general and administrative 102.9 102.1 317.9 289.6
Research and development 44.9 43.5 145.0 132.5
Write-off of deferred offering costs - 3.4 - 3.4
Other charges, net   2.5     2.9   9.5     7.4  
Total operating expenses   150.3     151.9   472.4     432.9  
 
Operating income 60.3 37.5 116.8 101.9
 
Interest and other income (expense), net   (2.7 )   1.9   (13.0 )   (8.8 )
 
Income before income taxes and noncontrolling
interest in consolidated subsidiaries 57.6 39.4 103.8 93.1
Income tax provision   17.7     19.3   38.9     38.7  
 
Consolidated net income 39.9 20.1 64.9 54.4
Net income attributable to noncontrolling
interests in consolidated subsidiaries   0.2     0.3   0.2     1.2  
Net income attributable to Bruker Corporation $ 39.7   $ 19.8 $ 64.7   $ 53.2  
 
Net income per common share attributable to
Bruker Corporation shareholders:
Basic and diluted $ 0.24   $ 0.12 $ 0.39   $ 0.32  
 
Weighted average common shares outstanding:
Basic   166.0     165.6   165.9     165.4  
Diluted   167.3     166.9   167.3     167.0  
 

Reconciliation of BSI and BEST reportable segments to the consolidated results of Bruker Corporation for the three and nine months ended September 30, 2012 and 2011 (unaudited) (a) (b)

Segment Data     Bruker    
(in millions, except per share amounts) Bruker Energy & Corporate, Consolidated
Scientific Supercon Adjustments Bruker
Three Months Ended September 30, 2012: Instruments Technologies & Eliminations Corporation
 
Revenue $ 408.9 $ 42.4 $ (3.5 ) $ 447.8
 
Gross profit - GAAP (a) $ 191.6 $ 21.3 $ (2.3 ) $ 210.6
Cost of revenues charges (c) 1.1 - - 1.1
Amortization of acquisition-related intangible assets (d)   4.7     -     -     4.7  
Gross profit - adjusted (b) $ 197.4   $ 21.3   $ (2.3 ) $ 216.4  
Gross profit margin - adjusted (b) 48.3 % 50.2 % 48.3 %
 
Operating income (loss) - GAAP (a) $ 48.0 $ 14.4 $ (2.1 ) $ 60.3
Cost of revenues charges (c) 1.1 - - 1.1
Amortization of acquisition-related intangible assets (d) 5.5 - - 5.5
Other charges (e)   2.2     0.3     -     2.5  
Operating income (loss) - adjusted (b) $ 56.8   $ 14.7   $ (2.1 ) $ 69.4  
Operating margin - adjusted (b) 13.9 % 34.7 % 15.5 %
 
Net income (loss) attributable
to Bruker Corporation - GAAP (a) $ 31.0 $ 10.4 $ (1.7 ) $ 39.7
Cost of revenues charges (c) 1.1 - - 1.1
Amortization of acquisition-related intangible assets (d) 5.2 - - 5.2
Other charges (e)   0.8     0.3     -     1.1  
Net income (loss) attributable
to Bruker Corporation - adjusted (b) $ 38.1 $ 10.7 $ (1.7 ) $ 47.1
 
Diluted net income (loss) per common share
attributable to Bruker Corporation - GAAP (a) $ 0.19 $ 0.06 $ (0.01 ) $ 0.24
Cost of revenues charges (c) 0.01 - - 0.01
Amortization of acquisition-related intangible assets (d) 0.03 - - 0.03
Other charges (e)   -     -     -     -  
Diluted net income (loss) per common share
attributable to Bruker Corporation - adjusted (b) $ 0.23 $ 0.06 $ (0.01 ) $ 0.28
 
Weighted average shares outstanding: 167.3 167.3 166.0 167.3
                 
 
Three Months Ended September 30, 2011:
 
Revenue $ 394.6 $ 27.7 $ (3.9 ) $ 418.4
 
Gross profit - GAAP (a) $ 184.5 $ 5.4 $ (0.5 ) $ 189.4
Cost of revenues charges (c) 1.3 - - 1.3
Amortization of acquisition-related intangible assets (d)   4.1     0.1     -     4.2  
Gross profit - adjusted (b) $ 189.9   $ 5.5   $ (0.5 ) $ 194.9  
Gross profit margin - adjusted (b) 48.1 % 19.9 % 46.6 %
 
Operating income (loss) - GAAP (a) $ 41.3 $ (3.3 ) $ (0.5 ) $ 37.5
Cost of revenues charges (c) 1.3 - - 1.3
Amortization of acquisition-related intangible assets (d) 4.9 0.1 - 5.0
Other charges (e)   2.9     3.4     -     6.3  
Operating income (loss) - adjusted (b) $ 50.4   $ 0.2   $ (0.5 ) $ 50.1  
Operating margin - adjusted (b) 12.8 % 0.7 % 12.0 %
 
Net income (loss) attributable
to Bruker Corporation - GAAP (a) $ 25.7 $ (4.8 ) $ (1.1 ) $ 19.8
Cost of revenues charges (c) 0.9 - - 0.9
Amortization of acquisition-related intangible assets (d) 4.8 0.1 - 4.9
Other charges (e)   5.4     3.4     -     8.8  
Net income (loss) attributable
to Bruker Corporation - adjusted (b) $ 36.8 $ (1.3 ) $ (1.1 ) $ 34.4
 
Diluted net income (loss) per common share
attributable to Bruker Corporation - GAAP (a) $ 0.15 $ (0.03 ) $ - $ 0.12
Cost of revenues charges (c) 0.01 - - 0.01
Amortization of acquisition-related intangible assets (d) 0.03 - - 0.03
Other charges (e)   0.03     0.02     -     0.05  
Diluted net income (loss) per common share
attributable to Bruker Corporation - adjusted (b) $ 0.22 $ (0.01 ) $ - $ 0.21
 
Weighted average shares outstanding: 166.9 165.6 165.6 166.9
 
Segment Data     Bruker    
(in millions, except per share amounts) Bruker Energy & Corporate, Consolidated
Scientific Supercon Adjustments Bruker
Nine Months Ended September 30, 2012: Instruments Technologies & Eliminations Corporation
 
Revenue $ 1,184.0 $ 98.4 $ (8.3 ) $ 1,274.1
 
Gross profit - GAAP (a) $ 558.1 $ 34.1 $ (3.0 ) $ 589.2
Cost of revenues charges (c) 3.5 - - 3.5
Amortization of acquisition-related intangible assets (d)   13.5     0.2     -     13.7  
Gross profit - adjusted (b) $ 575.1   $ 34.3   $ (3.0 ) $ 606.4  
Gross profit margin - adjusted (b) 48.6 % 34.9 % 47.6 %
 
Operating income (loss) - GAAP (a) $ 106.3 $ 13.4 $ (2.9 ) $ 116.8
Cost of revenues charges (c) 3.5 - - 3.5
Amortization of acquisition-related intangible assets (d) 16.0 0.2 - 16.2
Other charges (e)   8.1     1.4     -     9.5  
Operating income (loss) - adjusted (b) $ 133.9   $ 15.0   $ (2.9 ) $ 146.0  
Operating margin - adjusted (b) 11.3 % 15.2 % 11.5 %
 
Net income (loss) attributable
to Bruker Corporation - GAAP (a) $ 58.2 $ 8.9 $ (2.4 ) $ 64.7
Cost of revenues charges (c) 3.3 - - 3.3
Amortization of acquisition-related intangible assets (d) 15.4 0.2 - 15.6
Other charges (e)   6.6     1.4     -     8.0  
Net income (loss) attributable
to Bruker Corporation - adjusted (b) $ 83.5 $ 10.5 $ (2.4 ) $ 91.6
 
Diluted net income (loss) per common share
attributable to Bruker Corporation - GAAP (a) $ 0.35 $ 0.05 $ (0.01 ) $ 0.39
Cost of revenues charges (c) 0.02 - - 0.02
Amortization of acquisition-related intangible assets (d) 0.09 - - 0.09
Other charges (e)   0.03     0.01     -     0.04  
Diluted net income (loss) per common share
attributable to Bruker Corporation - adjusted (b) $ 0.49 $ 0.06 $ (0.01 ) $ 0.54
 
Weighted average shares outstanding: 167.3 167.3 165.9 167.3
                 
 
Nine Months Ended September 30, 2011:
 
Revenue $ 1,108.3 $ 79.8 $ (11.5 ) $ 1,176.6
 
Gross profit - GAAP (a) $ 521.1 $ 15.5 $ (1.8 ) $ 534.8
Cost of revenues charges (c) 10.4 - - 10.4
Amortization of acquisition-related intangible assets (d)   10.7     0.3     -     11.0  
Gross profit - adjusted (b) $ 542.2   $ 15.8   $ (1.8 ) $ 556.2  
Gross profit margin - adjusted (b) 48.9 % 19.8 % 47.3 %
 
Operating income (loss) - GAAP (a) $ 107.3 $ (3.6 ) $ (1.8 ) $ 101.9
Cost of revenues charges (c) 10.4 - - 10.4
Amortization of acquisition-related intangible assets (d) 12.8 0.3 - 13.1
Other charges (e)   7.4     3.4     -     10.8  
Operating income (loss) - adjusted (b) $ 137.9   $ 0.1   $ (1.8 ) $ 136.2  
Operating margin - adjusted (b) 12.4 % 0.1 % 11.6 %
 
Net income (loss) attributable
to Bruker Corporation - GAAP (a) $ 62.2 $ (7.2 ) $ (1.8 ) $ 53.2
Cost of revenues charges (c) 8.6 - - 8.6
Amortization of acquisition-related intangible assets (d) 12.2 0.3 - 12.5
Other charges (e)   10.0     3.4     -     13.4  
Net income (loss) attributable
to Bruker Corporation - adjusted (b) $ 93.0 $ (3.5 ) $ (1.8 ) $ 87.7
 
Diluted net income (loss) per common share
attributable to Bruker Corporation - GAAP (a) $ 0.37 $ (0.04 ) $ (0.01 ) $ 0.32
Cost of revenues charges (c) 0.05 - - 0.05
Amortization of acquisition-related intangible assets (d) 0.08 - - 0.08
Other charges (e)   0.06     0.02     -     0.08  
Diluted net income (loss) per common share
attributable to Bruker Corporation - adjusted (b) $ 0.56 $ (0.02 ) $ (0.01 ) $ 0.53
 
Weighted average shares outstanding: 167.0 165.4 165.4 167.0
 

(a) “GAAP” (reported) results were determined in accordance with U.S. generally accepted accounting principles (GAAP).(b) Adjusted results are non-GAAP measures and for income measures exclude certain charges to cost of revenues (see note c for details); amortization of acquisition-related intangible assets (see note d for details); restructuring and other charges (see note e for details); and the tax consequences of the preceding items.(c) Reported results in the three and nine month periods ended September 30, 2012 and 2011 include charges for the sale of inventories and the depreciation of property, plant and equipment revalued at the date of acquisition, charges to cost of goods sold related to certain restructuring programs as well as charges attributable to manufacturing engineering modifications associated with certain specialty magnets.(d) Reported results in the three and nine month periods ended September 30, 2012 and 2011 include non-cash charges for the amortization of acquisition-related intangible assets.(e) Reported results in the three and nine month periods ended September 30, 2012 and 2011 include certain fees associated with legal compliance and examinations, acquisition-related costs and other costs associated with the restructuring and relocation of certain operations. The three and nine months ended September 30, 2012 also includes a gain on sale of a business. The three and nine months ended September 30, 2011 also includes deferred BEST public offering costs that were expensed.

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