Full Press Release Details
Bruker Reports First Quarter 2020 Financial
- Q1 2020 revenue decline of 8.1% year-over-year,
organic revenue decline of 7.9%
- Q1 2020 GAAP EPS of $0.07, compared to
$0.20 in Q1 2019; non-GAAP EPS of $0.14, compared to $0.28 in Q1 2019
- COVID-19 disruption expected to negatively
affect Q2 2020 financial results
BILLERICA, Massachusetts
- May 6, 2020 - Bruker Corporation (Nasdaq: BRKR) today announced
financial results for its first quarter ended March 31, 2020.
First Quarter 2020 Financial Results
Bruker's revenues for the first quarter of 2020 were $424.0
million, an 8.1% decline compared to the first quarter of 2019. In the first quarter of 2020, on an organic basis, Bruker's
revenue declined 7.9% year-over-year, growth from acquisitions was 0.9%, while foreign currency translation had a negative effect
of 1.1%. The reported and organic revenue declines were primarily due to COVID-19 related disruptions and included an approximately
30% year-over-year revenue decline in China.
First quarter 2020 GAAP operating income was $16.4 million,
compared to $41.9 million in the first quarter of 2019, representing GAAP operating margins of 3.9% and 9.1%, respectively. Non-GAAP
operating income was $32.2 million in the first quarter of 2020, compared to $62.3 million in the first quarter of 2019. Bruker's
first quarter 2020 non-GAAP operating margin was 7.6%, compared to 13.5% in the first quarter of 2019.
First quarter 2020 GAAP diluted earnings per share (EPS) were
$0.07, compared to $0.20 in the first quarter of 2019. First quarter 2020 non-GAAP diluted EPS were $0.14, compared to $0.28 in
the first quarter of 2019. The year-over-year declines in the Company's GAAP and non-GAAP operating income, operating margins
and diluted EPS were primarily due to lower revenues associated with COVID-19 disruptions.
A reconciliation of non-GAAP to GAAP financial measures is
provided in the tables accompanying this press release.
Frank H. Laukien, President and CEO of Bruker, commented: "Bruker
is a healthy, essential company, and our life science tools and diagnostics markets are quite resilient. In 2020, we continue to
navigate the COVID-19 disruptions by focusing on (1) the health and safety of our employees, customers and partners, (2) maintaining
business continuity and service levels for our customers, (3) executing prudent temporary cost reductions, and (4) delivering enabling
research and diagnostic products to help fight the pandemic, and to support other essential priorities of our society. We intend
to maintain our important Project Accelerate and Operational Excellence investments to strengthen Bruker for the long term."
Dr. Laukien continued: "Our
first quarter 2020 results reflect the initial impact of the COVID-19 pandemic, and we expect a more pronounced year-over-year
revenue decline in the second quarter. However, we believe that the long-term funding trends in life science, biopharma
and basic medical research, as well as in infectious disease diagnostics, are going to be strong as a result of the COVID-19 pandemic.
We believe Bruker is well positioned for a gradually improving business environment in the second half of 2020, and a recovery
in 2021. Moreover, Bruker continues to have a strong balance sheet and a very solid liquidity position."
Fiscal Year 2020 (FY 2020) Guidance Remains Suspended
On March 27, 2020, Bruker suspended
its FY 2020 financial guidance due to the uncertain business conditions created by COVID-19. Bruker anticipates that the pandemic
will have a more significant negative impact on the Company's second quarter 2020 financial results.
Quarterly Earnings Call
Bruker will host a conference call
and webcast to discuss its financial results, business outlook, and related corporate and financial matters today, May 6, at 4:30
p.m. Eastern Daylight Time. To listen to the webcast, investors can go to https://ir.bruker.com and
click on the "Q1 2020 Earnings Webcast" hyperlink. A slide presentation that will be referenced during the webcast
will be posted to our Investor Relations website shortly before the webcast begins. Investors can also listen to the earnings
webcast via telephone by dialing 1-888-437-2685 (US toll free) or +1-412-317-6702 (international) and referencing "Bruker's
First Quarter 2020 Earnings Conference Call". A telephone replay of the conference call will be available by dialing 1-877-344-7529
(US toll free) or +1-412-317-0088 (international) and entering conference number 10143194. The replay will be available beginning
one hour after the end of the conference call through June 6, 2020.
About Bruker Corporation (Nasdaq: BRKR)
Bruker is enabling scientists to
make breakthrough discoveries and develop new applications that improve the quality of human life. Bruker's high-performance
scientific instruments and high-value analytical and diagnostic solutions enable scientists to explore life and materials at molecular,
cellular and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity
and customer success in life science molecular research, in applied and pharma applications, in microscopy and nanoanalysis, and
in industrial applications, as well as in cell biology, preclinical imaging, clinical phenomics and proteomics research and clinical
microbiology. For more information, please visit: www.bruker.com.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), we use the following non-GAAP financial
measures: non-GAAP gross profit; non-GAAP gross profit margin; non-GAAP operating income; non-GAAP operating profit; non-GAAP operating
margin; non-GAAP SG&A expense; non-GAAP profit before tax; non-GAAP tax rate; non-GAAP net income and non-GAAP earnings per
share. These non-GAAP measures exclude costs related to restructuring actions, acquisition and related integration expenses, amortization
of acquired intangible assets and other non-operational costs.
We also may refer to organic revenue growth or decline and free
cash flow, which are also non-GAAP financial measures. We define the term organic revenue as GAAP revenue excluding the effect
of changes in foreign currency translation rates and the effect of acquisitions and divestitures, and believe it is a useful measure
to evaluate our continuing business. We define free cash flow as net cash provided by operating activities
less additions to property, plant, and equipment. We believe free cash flow is a useful measure to evaluate our business because
it indicates the amount of cash generated after additions to property, plant, and equipment that is available for, among other
things, acquisitions, investments in our business, repayment of debt and return of capital to shareholders.
The presentation of these non-GAAP financial measures is not
intended to be a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP and may
be different from non-GAAP financial measures used by other companies, and therefore, may not be comparable among companies. We
believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance, however we urge
investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included in the accompanying
tables, and not to rely on any single financial measure to evaluate our business. Specifically, management believes that the non-GAAP
measures mentioned above provide relevant and useful information which is widely used by analysts, investors and competitors in
our industry, as well as by our management, in assessing both consolidated and business unit performance.
We use these non-GAAP financial measures to evaluate our period-over-period
operating performance because our management believes this provides a more comparable measure of our continuing business by adjusting
for certain items that are not reflective of the underlying performance of our business. These measures may also be useful to investors
in evaluating the underlying operating performance of our business and forecasting future results. We regularly use these non-GAAP
financial measures internally to understand, manage, and evaluate our business results and make operating decisions. We also measure
our employees and compensate them, in part, based on certain non-GAAP measures and use this information for our planning and forecasting
Additional information relating to the non-GAAP financial measures
used in this press release and reconciliations to the most directly comparable GAAP financial measures is provided in the tables
accompanying this press release following our GAAP financial statements.
Forward Looking Statements
Any statements contained in this press release which do not
describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding management's
expectations for future financial and operational performance and business outlook; the impact of the COVID-19 coronavirus; future
funding trends in certain industries, including life sciences; and statements found under the "Use of Non-GAAP Financial
Measures" section of this release. 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 indicated, including, but
not limited to, risks and uncertainties relating to continued adverse changes in conditions in the global economy and volatility