Bruker Corporation, Inc. (
Q4 2011 Earnings Conference Call
February 22, 2012, 09:00 AM ET
Stacey Desrochers - Treasurer and Director of Investor Relations
Frank Laukien - President and Chief Executive Officer
Tom Rosa - Chief Financial Officer of Bruker Energy & Supercon Technologies Inc.
Bill Knight - Chief Financial Officer
Brian Monahan - Vice President of Strategic and Financial Planning
Peter Lawson – Mizuho Securities
Vijay - Deutsche Bank
Amanda Murphy – William Blair
Tycho Peterson – JP Morgan
Brandon Couillard – Jefferies
Dan Leonard – Leerink Swann
Dan Arias – UBS
Derick De Bruin - Bank of America
Isaac Ro – Goldman Sachs
Peter Lawson – Mizuho Securities
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Good day, ladies and gentleman, and welcome to the Bruker Corporation’s quarterly earnings call. My name is Pam and I’ll be your operator for today. At this time, all participants are in a listen-only model. Later, we will have a question-and-answer session. (Operator Instructions)
I would now like to turn the conference over to Ms. Stacey Desrochers, Treasurer and Director of Investor Relations. Please proceed.
Thank you. Good morning and welcome to Bruker Corporation’s fourth quarter and full year 2011 financial results conference call. With me on today’s call are Frank Laukien, Bruker’s President and Chief Executive Officer; Bill Knight, Bruker’s Chief Financial Officer; Tom Rosa, the Chief Financial Officer of our Bruker Energy & Supercon Technologies Inc. subsidiary, or BEST; and Brian Monahan, Bruker’s Vice President of Strategic and Financial Planning.
Before we begin let me briefly cover our Safe Harbor statements. Various remarks that we may make about the company’s future expectations, plans, and prospects constitute forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those described in the company’s filings with the Securities and Exchange Commission.
While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change and therefore you should not rely upon these forward-looking statements as representing our views as of any date subsequent to today.
In addition to the financial measures prepared in accordance with Generally Accepted Accounting Principles, or GAAP, we will discuss certain non-GAAP financial measures, including adjusted EPS, adjusted operating income, and adjusted operating margins which are non-GAAP measures that excludes certain items.
We exclude these items because they are outside of our normal operations and/or in certain cases are difficult to forecast accurately for future periods. We believe that the use of non-GAAP measures helps investors gain a better understanding of our core operating results and future prospects, consistent with how we measure and forecast the company’s performance, especially when comparing such results to previous periods or forecasts. A reconciliation of our GAAP to adjusted numbers can be found in our press release issued earlier today and is located in the Investor Relations section of our bruker.com website.
Today, Frank will provide an overview of our results, some financial highlights and our financial goals for 2012. Tom will describe the financial results of our BEST segment and then Bill will discuss the financial results of our Bruker Scientific Instruments, or BSI segment and some additional details on Bruker Corporation.
I will now turn the call over to our President and CEO, Frank Laukien.
Thank you Stacy and good morning everyone. We appreciate you joining us today. In the fourth quarter of 2011 for Bruker overall, our revenue reached a new record high of $475.1 million corresponding to a GAAP increase of 14.2% or an increase of 12.2% excluding acquisitions and currency effects compared to the fourth quarter of 2010.
On the bottom line, Bruker’s GAAP EPS in the fourth quarter of 2011 was $0.23 per diluted share compared to GAAP EPS of $0.18 per diluted share in 2010. Adjusted Bruker EPS in the fourth quarter of 2011 was $0.31 per diluted share compared to $0.28 per diluted share in the fourth quarter of 2010. For the full year 2011, Bruker’s overall revenue was $1.652 billion, which exceeds both the high-end of our guidance given in late October 2011 and our preliminary estimates given at the JPM conference in early January 2012.
Our full year 2011 revenue is up 26.6% on a GAAP basis, 20.5% on a currency adjusted basis, or 9.2% organically from $1.305 billion in fiscal 2010. Bruker GAAP EPS for the full year 2011 was $0.55 per diluted share compared to GAAP EPS of $0.58 per diluted share in 2010. Adjusted Bruker EPS for the full year 2011 was $0.86 per diluted share compared to $0.77 per diluted share in 2010.
Let me now provide some additional color on our full year 2011 financial performance. For our Bruker Scientific Instruments segment, or BSI, revenues in 2011 increased by 26.9% over 2010 to $1.554 billion with 20.8% currency adjusted growth representing solid performance across the board from our four BSI operating groups. Adjusted 2011 EPS for BSI was $0.91 compared to 2010 adjusted BSI EPS of $0.81, again slightly exceeding the high-end of our adjusted BSI EPS guidance from late October 2011. Excluding our chemical and applied markets division, or CAM, and our investments in the CAM division, BSI adjusted EPS would have been $1 exactly in fiscal 2011, which would have corresponded to a 23% year-over-year growth.
For our Bruker Energy and Supercon Technologies segment, or BEST, full year 2011 GAAP revenue grew 25.3% to $113.4 million and currency adjusted all organic revenue growth was 19.8%. For the year 2011, BEST reached adjusted operating breakeven.