Full Press Release Details
Bruker Reports Fourth Quarter and Fiscal
Year 2020 Financial Results
BILLERICA, Massachusetts - February 16,
2021 - Bruker Corporation (Nasdaq: BRKR) today announced financial results for its fourth quarter and for the
fiscal year ended December 31, 2020.
Fourth Quarter 2020 Financial Results
Bruker's revenues for the fourth quarter of 2020 were
$627.5 million, an increase of 4.6% compared to $599.9 million in the fourth quarter of 2019. In the fourth quarter of 2020, revenues
declined 0.4% organically year-over-year. Growth from acquisitions was 0.4%, while favorable foreign currency translation contributed
4.6%. The fourth quarter of 2020 continued Bruker's sequential quarter-over-quarter recovery trend from the revenue and margin
declines in the first two quarters of 2020 due to the pandemic.
Fourth quarter 2020 Bruker Scientific Instruments (BSI) revenues
of $574.7 million increased 5.1% compared to the fourth quarter of 2019, with organic revenue approximately flat compared to the
fourth quarter of 2019. Fourth quarter 2020 Bruker Energy & Supercon Technologies (BEST) revenues of $54.7 million declined
5.2% compared to the fourth quarter of 2019, including an organic decline, net of intercompany eliminations, of 6.8%.
Fourth quarter 2020 GAAP operating income was $112.8 million,
compared to $117.7 million in the fourth quarter of 2019, representing GAAP operating margins of 18.0%, and 19.6%, respectively.
The year-over-year decrease in GAAP operating income was primarily due to restructuring charges in the fourth quarter of 2020,
compared to the fourth quarter of 2019. Non-GAAP operating income was $141.1 million in the fourth quarter of 2020, compared to
$132.5 million in the fourth quarter of 2019. Bruker's fourth quarter 2020 non-GAAP operating margin was 22.5%, up 40 basis
points compared to 22.1% in the fourth quarter of 2019.
Fourth quarter 2020 GAAP diluted earnings per share (EPS) were
$0.45, compared to $0.44 in the fourth quarter of 2019. Fourth quarter 2020 non-GAAP diluted EPS were $0.58, an increase of 9.4%
compared to $0.53 in the fourth quarter of 2019. The year-over-year increase in the Company's non-GAAP operating income and
diluted EPS were primarily due to strong gross margin performance, expense control, and a lower tax rate compared to the fourth
Fiscal Year 2020 Financial Results
For fiscal year 2020, Bruker's revenues were $1,987.5
million, a decline of 4.1% from $2,072.6 million in fiscal year 2019. In 2020, revenues declined 6.0% organically year-over-year.
Growth from acquisitions was 0.5%, while favorable foreign currency translation contributed 1.4%.
In 2020, BSI revenues of $1,810.0 million declined 3.6% compared
to 2019, including an organic decline of 5.5%. 2020 BEST revenues of $189.5 million declined 9.7% compared to 2019, including an
organic decline, net of intercompany eliminations, of 11.0%.
In 2020, GAAP operating income was $248.3 million, compared
to $300.9 million in 2019, representing GAAP operating margins of 12.5% and 14.5%, respectively. Non-GAAP operating income in 2020
was $317.2 million, compared to $364.0 million in 2019. Bruker's non-GAAP operating margin in 2020 was 16.0%, compared to
Fiscal year 2020 GAAP diluted EPS were $1.02, compared to $1.26
in 2019. Non-GAAP diluted EPS were $1.35, compared to $1.57 in 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 during the COVID-19 pandemic
and related economic slowdown, partially offset by cost control and cost reduction measures.
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: "We
are pleased with our sequential recovery in the second half of 2020, and with our fourth quarter 2020 year-over-year margin expansion,
EPS and cash flow growth. In 2020, we have further increased our operational excellence investments in productivity and capacity
growth, as well as in our next phase Project Accelerate 2.0 strategy. In particular, we have expanded our high growth, high
margin Project Accelerate 2.0 initiatives to include key additional opportunities in proteomics, spatial biology and molecular
diagnostics with very significant long-term potential."
Dr. Laukien continued: "After strong order trends
in our BSI segment in the second half of 2020, we enter 2021 with a healthy backlog. We expect strong organic revenue growth, non-GAAP
operating margin expansion and non-GAAP EPS growth in 2021."
Fiscal Year (FY) 2021 Financial Outlook
For FY 2021, Bruker expects approximately 11% to 13% year-over-year
revenue growth, including:
In FY 2021, Bruker also expects non-GAAP operating margin expansion
of 150 bps to 190 bps year-over-year, from 16.0% in FY 2020. This includes accelerated R&D investments of approximately 10%
of revenue and a headwind from foreign currency translation to operating margin of approximately 80 basis points in 2021.
Finally, Bruker expects FY 2021 non-GAAP EPS of $1.72 to $1.77,
a 27% to 31% increase year-over-year.
Bruker's revenue growth, non-GAAP operating margin expansion
and non-GAAP EPS guidance for FY 2021 are based on foreign exchange rates as of December 31, 2020.
For the Company's outlook for FY 2021 non-GAAP operating
margin and non-GAAP EPS, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measures,
or reconciliations to such GAAP financial measures on a forward-looking basis. Please see "Use of Non-GAAP Financial Measures"
below for a description of items excluded from our expected non-GAAP operating margin and non-GAAP EPS.
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, February 16, 2021 at 8:30 a.m. Eastern
Standard Time. To listen to the webcast, investors can go to https://ir.bruker.com and click on the "Q4 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 Fourth 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 10151902. The replay will be available beginning one hour after the end of the
conference call through March 16, 2021.
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 and cell biology research, in applied and pharma applications, in microscopy and nanoanalysis, as well
as in industrial applications. Bruker offers differentiated, high-value life science and diagnostics systems and solutions in
preclinical imaging, clinical phenomics research, proteomics and multiomics, spatial and single-cell biology, functional structural
and condensate biology, as well as in clinical microbiology and molecular diagnostics. 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 diluted 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, free
cash flow and return on invested capital, 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. We define return
on invested capital (ROIC) as non-GAAP operating profit after income tax divided by average total capital, which we define as debt
plus equity minus cash and cash equivalents. We believe ROIC is an important measure of how effectively the Company invests its
The presentation of these non-GAAP financial measures is not