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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 BRUKER CORPORATION


  1. 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

  2. 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 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, our ability to successfully implement restructuring initiatives, 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, 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, 2015 and subsequently filed Quarterly reports on Form 10-Q. We will also be referencing non-GAAP financial measures in this presentation. A reconciliation of non-GAAP to GAAP results is available in our earnings press release and in this presentation. 2

  3. Q1 2016 Business Update 3

  4. 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 375 353 − Jordan Valley acquisition adds +1.5% y-o-y  Organic revenue growth of +5.6% y-o-y − North America and China strongest performing regions Q1-15 Q1-16  Non-GAAP operating margin expands by +250 basis points y-o-y to 12.6% Non-GAAP EPS +50%  GAAP EPS grows to $0.14, from $0.04 in Q1-15  Non-GAAP EPS grows by +50% y-o-y Q1-15 $0.14 Q1-16 $0.21 4

  5. 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 in applied markets and improvement in service and after-market revenues as a result of new LabScape service offering  2015 restructuring is positively affecting operating performance CALID Group Bruker CALID Group  CALID Group delivers solid organic revenue gowth  Optics delivers strong growth driven by near infrared and remote sensing products  Daltonics delivers high-single digit organic growth due to continued growth of MALDI Biotyper and higher service revenue  Daltonics focused on acceleration of orders for new products  Detection performance driven by large legacy order with a low margin 5

  6. 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 continues to see weak demand in all markets  Jordan Valley semiconductor metrology tools with slow start in Q1-16, but improving orders and backlog BEST Segment  Flat revenues as a result of phase out of ROSATOM and DESY projects  Good revenue growth for superconducting wire as a result of strong backlog and long-term contracts, but margins under pressure  High-temperature superconducting (HTS) tapes make technical and quality progress; commercial revenue expected in 2017 6

  7. 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 refrigeration eliminates liquid nitrogen, reduces liquid helium boil-off essentially to zero  GHz magnet technology, new NMR probes and methods enable novel studies of IDPs, larger protein structures and of complete membrane proteins Innovation with Integrity 7

  8. 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 improve lab efficiency FoodSceener ™ FoodSceener ™ for MALDI Biotyper  New high-value resistance testing workflows (RuO) Innovation with Integrity 8

  9. 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 strategic growth markets Reemphasize strong focus on customers, as well as on product and business innovation 9

  10. Q1 2016 Financial Update 10

  11. NON-GAAP FINANCIAL PERFORMANCE: Q1-2016 Overview Δ [$ m, except EPS] Q1-2016 Q1-2015 COMMENTS Revenues 375.4 353.5 +6%  Operating leverage results in increased operating income and EPS Operating Income 47.3 35.8 +32% Margin (%) 12.6% 10.1%  Reduction in customer advances, taxes on cash Non-GAAP EPS $0.21 $0.14 +50% repatriation and other items result in negative free cash Free Cash Flow -22.0 21.3 -43M flow of -$22M  Share buyback and dividend Δ [$ m] Mar 31, 2016 Mar 31, 2015 payment result in lower net cash Net Cash 118.3 138.7 -14%  Lower working capital due to 33 day improvement in cash Working capital (WC) * 598.4 614.4 -3% conversion cycle WC-to-revenue ratio 0.36 0.35 +0.01  FX drives the increased WC-to-revenue ratio * WC = (Accounts Receivable + Inventory - Accounts Payable) 11

  12. 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] drives portfolio effect +$5.1 +$19.8 -$3.0 $353.5M $375.4M Q1 2015 Organic Currency Portfolio Q1 2016 12

  13. Q1 2016 Non-GAAP Results COMMENTS Δ [$ m, except EPS] Q1 2016 Q1 2015 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 (% of revenues) 24.5% 26.6% unfavorable mix in CALID  Continuing focus on R&D -36.1 -37.2 -3% operating expense (% of revenues) 9.6% 10.5% leverage Operating Income 47.3 35.8 +32%  Audit settlement and (% of revenues) 12.6% 10.1% jurisdictional mix in Q1 lower tax rate Tax Rate 17.7% 27.2% -950 bps  Share buyback program Net Income* 34.3 23.1 +48% commenced in November 2015 results in lower EPS $0.21 $0.14 +50% share count Shares Outstanding 164.3 169.7 -3% Sum of items may not total due to rounding * Attributable to Bruker 13

  14. Q1 2016 Cash Flow Statement COMMENTS Δ [$ m] Q1 2016 Q1 2015  Y-o-Y free cash flow Net Income 23.6 6.9 +16.7 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 – Higher 2015 bonus Other -49.5 -23.9 -25.6 payments paid in Q1-16 Operating cash flow -14.0 27.0 -41.0 – Tax payments in Q1-16 associated with 2015 Capital expenditures -8.0 -5.7 -2.3 cash repatriation Free cash flow -22.0 21.3 -43.3 * WC = (Accounts Receivable + Inventory - Accounts Payable) 14

  15. 2016 Outlook 15

  16. 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 currency assumptions: Yen/USD: 113 USD/EUR: 1.14 CHF/USD: 0.960 16

  17. Appendix 17

  18. Q1 2016 GAAP Results Δ [$ m, except EPS] Q1 2016 Q1 2015 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% 4.3% Net Income* 23.6 6.5 +263% EPS $0.14 $0.04 +250% Shares Outstanding 164.3 169.7 -3% Sum of items may not total due to rounding * Attributable to Bruker 18

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