Bruker Corporation (Nasdaq: BRKR) · 14-01-2019 · applied markets, e.g. food analysis MALDI...
Transcript of Bruker Corporation (Nasdaq: BRKR) · 14-01-2019 · applied markets, e.g. food analysis MALDI...
© Bruker Corporation
Bruker drives customer success and profitable growth by enabling scientific discoveries and delivering high-performance analytical, life science, pharmaceutical and diagnostic solutions.
Innovation with Integrity
Bruker Corporation (Nasdaq: BRKR)
Bruker Corporation Safe Harbor Statement
Any statements contained in this presentation that 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 Security Exchange Act of
1934, as amended, including statements regarding management’s expectations for future financial and operational
performance, expected growth and business outlook; statements regarding our business and investment focus; expected
success of our portfolio or technology investments; and payments of any future dividends. Forward-looking statements are
based on current expectations, forecasts and assumptions of our management and 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: 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; fluctuations in foreign currency exchange rates; implementation of strategies for
improving our operating margins, profitability and cash flow; changing technologies; product development and market
acceptance of our products; the cost and pricing of our products; competition; dependence on collaborative partners, key
suppliers and contract manufacturers; capital spending and government funding policies; changes in governmental regulations;
the use and protection of intellectual property rights and other risk factors discussed from time to time in our filings with the
Securities and Exchange Commission, or SEC. These and other factors are identified and described in more detail in our most
recent reports filed with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December
31, 2017, our most recent quarterly reports 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.
2 © Bruker Corporation
30%
10%
29%
31%
Bruker Overview
Differentiated Leader in Attractive, Diverse Life Science and Diagnostic Tools Markets
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NANO Group Advanced X-Ray Atomic Force Microscopy Fluorescence Microscopy Surface Analysis Systems Semiconductor Metrology
CALID Group Life Science Mass Spec Microbiology & Diagnostics Optical Spectroscopy Security Applications
• Founded in 1960, Bruker brand stands for innovation
• Market leader in high-value scientific instruments and analytical solutions
• FY 2017 revenue: ~$1.77 billion
• R&D investment: ~9% of revenue
• >6,000 employees worldwide
• 2019-2023 dual strategy:
Project Accelerate and Operational Excellence
• Long-term oriented ownership: about 1/3 owned by Laukien family shareholders
BIOSPIN Group Magnetic Resonance: NMR, EPR, preclinical MRI and PET/MR
BEST Group Superconductors for Science & Medicine Big Science /Fusion
Life Science Research in Academia, Medical Schools and Government
Pharma & Biopharma
Microbiology & Molecular Diagnostics
Applied Markets
Industrial Research & Semiconductor Metrology
Superconductors for Science & Medicine
Bruker revenue breakdown, % of LTM revenue(1):
(1) For the twelve months ended Sept. 30, 2018
© Bruker Corporation
38%
29%
[VALUE]
29%
Europe
APAC
Americas Rest of World
4%
BRUKER HOLDS #1 OR #2 MARKET POSITION FOR ~70% OF OUR PRODUCT PORTFOLIO
Market Leading Positions in Scientific Instruments
NMR & EPR Spectroscopy
Preclinical Imaging: MRI, MPI, PET/MR, microCT
MALDI BioTyper for Microbiology
Atomic Force Microscopy
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Mass Spec Imaging, MALDI-TOF & MRMS
X-Ray Diffraction Next Gen Semicon Metrology
BEST Superconductors & ‘Big Science’ Technologies
FT-IR/NIR Spectroscopy & Microscopy
Atomic Force Microscopy (AFM)
Next-Gen X-ray & AFM Semiconductor
Metrology
X-Ray Diffraction (XRD) & Crystallography
© Bruker Corporation
Bruker Key Objectives for 2019-2023
5 Non-GAAP operating margin and ROIC are non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures is available at the end of this presentation and on Bruker’s website at http://ir.bruker.com/investors/press-releases/earnings-releases/default.aspx
2. Transform portfolio with six high-growth, high-margin Project Accelerate initiatives
1. Accelerate revenue growth
3. Drive Operational Excellence, sustain multi-year margin expansion
4. Disciplined capital deployment and high ROIC
• Enhance organic revenue growth with Project Accelerate initiatives
• Expand operating margin 75-100 bps per year, on average, over a multi-year timeframe
• Ongoing commercial, product R&D and operational excellence initiatives
• Strategically focused M&A in support of dual strategy
• Quarterly dividend $0.04 per share and periodic share repurchases
• BRKR ROIC >20% (FY2017 and FY2016)
Proteomics & Phenomics
Biopharma & Applied
Microbiology & Diagnostics
Neuroscience & Cell Microscopy
Next-gen Nanotech & Semi Tools
After-Market
© Bruker Corporation
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• Managing our core business for profitable growth
• Transforming the portfolio with six high-growth, high-margin Project Accelerate initiatives
• Driving Operational Excellence in research & development, sales & marketing and operations
Bruker Core Values: Innovation with Integrity
Bruker 2019-2023 Strategy
Project Accelerate and Operational Excellence drive customer success and sustainable profitable growth
Commercial Excellence
Product R&D Excellence
Operational Excellence
© Bruker Corporation
Bruker is very well-positioned in diverse and attractive life science tools & diagnostics markets
Profitable Growth
Portfolio Cost
2018 2019E 2020E 2021E 2022E 2023E
Proteomics &
Phenomics
Biopharma &
Applied
Microbiology &
Diagnostics
Neuroscience
& Cell Microscopy
Next-gen Nanotech
& Semi Tools
After-market
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Portfolio Transformation
Reshaping our portfolio for faster growth and higher margins* Portfolio
© Bruker Corporation
timsTOF Pro Proteomics, 1.0 GHz NMR
Advanced NMR and mass spec solutions for biologics and small molecule drug discovery, development and QA/QC FTIR, NIR, Raman, NMR and mass spec solutions for applied markets, e.g. food analysis
MALDI Biotyper & consumables ramp, Bruker-Hain MDx assays
2P+ multiphoton, lattice light sheet microscopy, SPIM ramp
Unique X-ray metrology and automated AFM tools
Services & consumables
Mass spec based Phenomics, 1.2 GHz NMR
Blood culture ID, susceptibility testing, Liquid Arrays™
Further next-gen microscopy products
XCD ramp
Scientific software expansion
* Chart shows approximate timeline for financially relevant contributions from Project Accelerate initiatives and product cycles.
Portfolio Transformation Update Proteomics & Phenomics Initiative
Structural Biology by GHz-Class NMR
Phenomics by NMR and Mass Spec
Proteomics by Mass Spec
• GHz+ NMR provides dynamics and function of proteins
• Ideal for Intrinsically Disordered Proteins (IDP) research
PROGRESS UPDATE: At least one system expected in
revenue in 2019
1.1 GHz at field in factory
• timsTOF Pro trapped ion mobility with PASEF offers highest sensitivity, dynamic range, throughput and robustness
PROGRESS UPDATE: KOL evaluations and early ramp-up
Unique proteomics and lipidomics workflows added in 2018
Further software advances
-
• Bruker NMR is a core technology in phenomics research
PROGRESS UPDATE: Expanding into biobank analysis
and lab developed tests (LDTs)
New large-scale phenomics center at Murdoch U. to integrate Bruker NMR and mass spec
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Portfolio
© Bruker Corporation
Portfolio Transformation Update timsTOFTM Pro with PASEF enables throughput and sensitivity improvements in proteomics
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Portfolio
© Bruker Corporation
4D separations with timsTOF TM Pro and PASEF method
enable superior throughput and sensitivity
Examples:
• >4,000 HeLa protein groups identified in 30 min (50 samples/day)
• >1,600 HeLa protein groups identified from just 12 cells
• Large-scale collision cross sections (CCS) enhances proteomics,
may revolutionize lipidomics and metabolomics
ng
0 3.1
6.25 12.5
25 50
100
- only 3.1 ng of sample amount - corresponds to ~12 HeLa cells
• timsTOF Pro with unprecedented robustness for proteomics
• Steady progress with further developments, key opinion leader
evaluations and commercial launch in 2018
Portfolio Transformation Update Enabling integrated NMR and MS solutions for serum and urine phenomics at Murdoch University, Western Australia
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Portfolio
© Bruker Corporation
“Our collaboration with Bruker for multiple NMR and mass spec platforms enables the creation of a large-scale facility and Center of Excellence at Murdoch. In addition to healthcare research, the Center will also focus on the role nutrition and the environment play in an individual’s cellular function. Such precise data will allow clinicians to better predict health problems and intervene earlier, saving time, money and lives. The potential of integrated phenomics to provide truly personalized care is remarkable.”
• Bruker system types ordered recently by Murdoch University (Perth, WA):
impact-II ‘phenomics workhorse’ UHR-QTOF for robust, high-sensitivity LC-MS/MS
FIA-MRMS for high-throughput phenomics analysis
timsTOF Pro: LC/CCS/MS/MS for metabolomics and lipidomics identification
Avance IVDr 600: 1D&2D NMR ‘gold standard’ at International Phenome Center Network (IPCN) for targeted and untargeted quantification of metabolites
Integrated NMR, FIA-MRMS and LC-QTOF platforms to enable novel phenomics research and large cohort validation studies
- Prof. Jeremy Nicholson, ProVice Chancellor of Health Sciences at Murdoch U., and Executive Director, Australian National Phenome Center
Portfolio Transformation Update Novel NMR Magnet at 1.1 GHz reaches field in factory test
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Portfolio
© Bruker Corporation
First ever high-resolution 1.1 GHz NMR spectra with novel high-temperature & low-temperature superconductor hybrid magnet
Novel HTS/LTS hybrid 1.1 GHz magnet in factory test
ppm
6.06.57.07.58.08.59.09.5 ppm
20
30
40
50
60
70
Sample protein: 0.5mM Ubiquitin, 13C/15N labeled
Expt. Time: 3.5 hours with NUS
2D NMR HN(CO)CACB Watergate Experiment at 1.1 GHz
3D NMR best-TROSY-HNCACB Experiment at 1.1 GHz
Bruker Biopharma Solutions
• Differentiated NMR, Mass Spec, SPR, FTIR, Raman and X-ray solutions for pharma and biopharma applications
PROGRESS UPDATE: NMR solutions: fragment screening, biologics
higher order screening, structure activity, reaction monitoring, etc.
Mass spec portfolio: MALDI PharmaPulse uHTS, timsTOF Pro for proteomics, maXis II for mAb and antibody drug conjugates (ADC); ScimaX MRMS imaging for drug development
• NMR, Mass Spec and FTIR solutions for food quality, authenticity and safety testing
Example: NMR FoodScreenerTM quantifies ingredients in honey, wine, juice, olive oil and flavors with higher specificity and throughput
PROGRESS UPDATE: Additional NMR FoodScreener methods
New FTIR/NIR solutions for dairy markets
Portfolio Transformation Update Biopharma & Applied Markets Initiative
Bruker Applied Markets Solutions
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Portfolio
© Bruker Corporation
Portfolio Transformation Update Microbiology & Diagnostics Initiative
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MALDI Biotyper identifies bacteria, yeasts and
fungi accurately and with shorter time-to-result
• Global installed base ~3,200 system
• ‘Gold standard’ for fast and cost-effective ID
• 50% of business is after-market revenue
• Comprehensive roadmap:
− SepsiTyper™ fast ID from blood culture: launched in Europe, US FDA trials 2019E
− Select antibiotic resistance and susceptibility testing work in progress
Clinical Microbiology Expanding Consumables Portfolio • MBT Star®-Carba and MBT Star® Cepha CE-IVD
assay for antibiotic resistance on Biotyper
• ‘Bologna’ CE-IVD fast ID and resistance workflow for bloodstream infections
• High-value invasive fungal disease PCR assays
• Merlin Antibiotic Resistance & Susceptibility Testing specialty assays
• Complementary Bruker-Hain Molecular Dx portfolio for mycobacteria and viral pathogens
• On roadmap: Syndromic Panels
Portfolio
© Bruker Corporation
Portfolio Transformation Update Hain adds breadth and further growth drivers to Bruker’s Microbiology & Diagnostics portfolio
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1996
FluoroType®: 2012
PCR with melting curve analysis
High-precision
real-time PCR: 2018
DNA•STRIP GenoType tests
• Established MDx test portfolio for Tb screening and resistance testing
• MDx assays for microbial and viral pathogens
• New Fluorocycler™ XT system and work-in-progress Liquid Array™ assays for cost-effective syndromic panels
• 2019E revenue: ~$40M
• 2019E non-GAAP EPS accretion: +$0.01 to +$0.02
Liquid Array™
TB panel: 2019E
Syndromic panels: 2021E and beyond
© Bruker Corporation
Portfolio
Portfolio Transformation Update Neuroscience & Cell Microscopy Initiative
• Simultaneous, all-optical stimulation and imaging platforms for Optogenetic Neuroscience research
• Next-gen Multiphoton, Super-Resolution and Light Sheet Cell Microscopy systems enable brain research and high-resolution live-cell research
PROGRESS UPDATE: Three important products launched in late 2018:
- First ever, tailorable next-gen lattice light sheet (lattice, Bessel, Gaussian)
- Light Sheet clearing module for Neuroscience
- Next-gen 2P+ multiphoton system
Fluorescence Microscopy
Mouse spermatocyte courtesy of Jackson Labs
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3D Spheroid with Lattice Light Sheet HeLa Cells with Bessel beam
© Bruker Corporation
Portfolio
Portfolio Transformation Update Next-Gen Nanotech & Semi Tools Initiative
Next-Gen Nanotechnology & Semiconductor Metrology
• Logic and memory require next-gen nano-metrology
tools to ensure yield and quality
• Bruker next-gen atomic force microscopy (AFM) and
X-ray metrology tools are key for advanced nodes and
3D chip structures
PROGRESS UPDATE: X-Ray Critical Dimension (XCD) semi tool developed,
key customer evaluations expected in 2019
16 © Bruker Corporation
Portfolio
Bruker Services, Software and Consumables
PROGRESS UPDATE: Services, software and consumables continue to be a
key growth and operating margin driver
Hain majority acquisition (Oct. 2018) adds to consumables portfolio
MestreLab majority acquisition (Dec. 2018) a foundation for new scientific software strategy
17 © Bruker Corporation
Fast Growing After-Market Business Services, Software and Consumables Initiative Portfolio
Strategically Focused M&A in 2018 M&A supports Project Accelerate, improves operating margin mix and strengthens core
IRM2
Support Core Business Transform Portfolio (ACCELERATE)
Org
anic
Rev
enu
e G
row
th R
ate
Higher Growth
Lower Growth
18 *Hain Diagnostics and Mestrelab Research are majority interest acquisitions.
© Bruker Corporation
Portfolio
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2018 2019E 2020E 2021E
BIOSPIN
Project 2020 Lean lay-out, site consolidation
and reinvestment in DE&CH
CALID
Project Green Restructuring & consolidation
of CBRNE Detection business
NANO
Penang, Malaysia New lower cost final
assembly & test center
BRUKER
Warsaw BSC EU shared services center
driving efficiencies at lower cost
Cost
2018 - 2021E
2019E-2021E
Late 2018 – 2019E
© Bruker Corporation
2018-2019E
Operational Excellence & Cost Optimization
• Product R&D Excellence
• Lean Manufacturing
• Operational Excellence
• Commercial Excellence
• SAP ERP, SalesForce CRM
• Risk management
Driving Operating Leverage through continuous
Operational Excellence: selected initiatives
Bruker 2015 to LTM Q3 2018 Financials
Accelerating revenue growth and healthy margin expansion drive EPS
$1.62B $1.61B
$1.77B
$1.87B
FY 2015 FY2016 FY 2017LTM Q3 2018*
Revenue
(1)Non-GAAP operating margin and non-GAAP EPS are non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP measures are available at the end of this presentation and on Bruker’s website at https://ir.bruker.com/financial-info/quarterly-results/default.aspx
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*For the last twelve months ended September 30, 2018
© Bruker Corporation
13.5%
15.0%
15.9% 16.4%
FY 2015 FY2016 FY 2017 LTM Q3 2018*
Non-GAAP Operating Margin(1)
$0.89
$1.19 $1.21
$1.37
FY 2015 FY2016 FY 2017 LTM Q3 2018*
Non-GAAP EPS(1)
21
Organic R&D investment
Capital expenditures
Strategically focused M&A
Annual dividend of
$0.16 per share
Periodic share
repurchases
FY 2015 FY 2016 FY 2017
22.9% 27.6% 27.3%
ROIC Performance(1)
Invest in growing
the business
Maintain financial
flexibility
Return capital to
shareholders
Disciplined Capital Deployment
Leading ROIC Performance
© Bruker Corporation
Strong, flexible balance
sheet
Conservative debt levels
(1)Return on Invested Capital (ROIC) is a non-GAAP measure. A reconciliations of this measure to the most directly comparable GAAP measures is available at the end of this presentation and on Bruker’s website at https://ir.bruker.com/financial-info/quarterly-results/default.aspx
© Bruker Corporation
www.bruker.com
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Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (unaudited)
© Bruker Corporation 23
(1)The Company adopted Accounting Standards Update (ASU) 2017-07 as of January 1, 2018 under the retrospective approach. Accordingly, the 2015, 2016 and 2017 income statement accounts have been restated to reflect ASU 2017-07.
(in millions, except per share amounts)
Three
Months
Ended
December
Nine Months
Ended
September 30,
Trailing
Twelve
Months Ended
September 30,
2015 (1)
2016 (1)
2017 (1)
2017 (1)
2018 2018
Reconciliation of Non-GAAP Operating Income, Non-GAAP
Profit Before Tax, Non-GAAP Net Income, and Non-GAAP
GAAP Operating Income 160.2$ 181.8$ 219.5$ 95.3$ 156.0$ 251.3$
Non-GAAP Adjustments:
Restructuring Costs 29.3 20.8 16.2 7.7 6.7 14.4
Acquisition-Related Costs (4.7) 11.1 10.2 0.8 3.9 4.7
Purchased Intangible Amortization 20.8 21.7 29.6 7.0 21.5 28.5
Other Costs 13.9 7.1 5.4 1.6 7.0 8.6
Total Non-GAAP Adjustments: 59.3$ 60.7$ 61.4$ 17.1$ 39.1$ 56.2$
Non-GAAP Operating Income 219.5$ 242.5$ 280.9$ 112.4$ 195.1$ 307.5$
Non-GAAP Operating Margin 13.5% 15.0% 15.9% 21.2% 14.5% 16.4%
Non-GAAP Interest & Other Expense, net (21.8) (13.4) (22.3) (6.2) (11.5) (17.7)
Non-GAAP Profit Before Tax 197.7 229.1 258.6 106.2 183.6 289.8
Non-GAAP Income Tax Provision (43.4) (35.9) (64.7) (26.0) (47.0) (73.0)
Non-GAAP Tax Rate 22.0% 15.7% 25.0% 24.5% 25.6% 25.2%
Minority Interest (3.3) (0.9) (1.7) (0.4) (1.5) (1.9)
Non-GAAP Net Income Attributable to Bruker 151.0 192.3 192.2 79.8 135.1 214.9
Weighted Average Shares Outstanding (Diluted) 169.1 162.2 159.1 156.9 157.2
Non-GAAP Earnings Per Share 0.89$ 1.19$ 1.21$ 0.51$ 0.86$ 1.37$
Twelve Months Ended December 31,
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited)
© Bruker Corporation 24
(in millions, except per share amounts)
Three
Months
Ended
December
Nine Months
Ended
September 30,
Trailing
Twelve
Months Ended
September 30,
2015 (1)
2016 (1)
2017 (1)
2017 (1)
2018 2018
Reconciliation of GAAP and Non-GAAP Gross Profit
GAAP Gross Profit 711.2$ 745.3$ 816.0$ 256.2$ 627.2$ 883.4$
Non-GAAP Adjustments:
Restructuring Costs 21.2 11.0 5.6 4.0 0.8 4.8
Acquisition-Related Costs 2.5 2.1 5.7 0.1 1.6 1.7
Purchased Intangible Amortization 18.7 18.7 24.0 5.6 16.6 22.2
Other Costs - 0.1 0.8 0.1 - 0.1
Total Non-GAAP Adjustments: 42.4 31.9 36.1 9.8 19.0 28.8
Non-GAAP Gross Profit 753.6$ 777.2$ 852.1$ 266.0$ 646.2$ 912.2$
Non-GAAP Gross Margin 46.4% 48.2% 48.3% 50.1% 48.2% 48.7%
Reconciliation of GAAP and Non-GAAP Tax Rate
GAAP Tax Rate 18.0% 13.0% 59.4% 103.4% 28.7%
Non-GAAP Adjustments:
Tax Impact of Non-GAAP Adjustments -1.5% -1.0% -0.1% -1.6% -0.2%
Tax Authority Settlements -0.8% 0.1% 0.0% 0.0% 0.0%
Valuation Allowance Release 6.8% 3.7% 0.0% 0.0% 0.0%
U.S. Tax Reform- Toll Charge 0.0% 0.0% -27.8% -62.1% -2.6%
U.S. Tax Reform- Tax Rate Change 0.0% 0.0% -0.6% -1.3% 0.0%
U.S. Tax Reform- Change in APB 23 0.0% 0.0% -6.5% -14.4% 0.0%
Other Discrete Items -0.5% -0.1% 0.6% 0.5% -0.3%
Total Non-GAAP Adjustments: 4.0% 2.7% -34.4% -78.9% -3.1%
Non-GAAP Tax Rate 22.0% 15.7% 25.0% 24.5% 25.6%
Twelve Months Ended December 31,
(1)The Company adopted Accounting Standards Update (ASU) 2017-07 as of January 1, 2018 under the retrospective approach. Accordingly, the 2015, 2016 and 2017 income statement accounts have been restated to reflect ASU 2017-07.
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited)
© Bruker Corporation 25
(in millions, except per share amounts)
Three
Months
Ended
December
Nine Months
Ended
September 30,
Trailing
Twelve
Months Ended
September 30,
2015 (1)
2016 (1)
2017 (1)
2017 (1)
2018 2018
Reconciliation of GAAP and Non-GAAP Earnings Per Share (Diluted)
GAAP Earnings Per Share (Diluted) 0.60$ 0.95$ 0.49$ (0.02)$ 0.65$ 0.63$
Non-GAAP Adjustments:
Restructuring Costs 0.18 0.13 0.10 0.05 0.04 0.09
Acquisition-Related Costs (0.03) 0.07 0.06 0.01 0.03 0.04
Purchased Intangible Amortization 0.12 0.14 0.19 0.04 0.14 0.18
Other Costs 0.08 0.04 0.04 0.01 0.04 0.05
Bargain Purchase Gain - (0.06) - - - -
Pension Settlement Charge 0.06 - - - - -
Income Tax Rate Differential (0.12) (0.08) 0.33 0.42 (0.04) 0.38
Total Non-GAAP Adjustments: 0.29 0.24 0.72 0.53 0.21 0.74
Non-GAAP Earnings Per Share (Diluted) 0.89$ 1.19$ 1.21$ 0.51$ 0.86$ 1.37$
Reconciliation of GAAP and Non-GAAP Interest & Other Income (Expense), net
GAAP Interest & Other Income (Expense), net (32.2)$ (4.2)$ (21.7)$ (6.7)$ (11.5)$ (18.2)$
Non-GAAP Adjustments:
Bargain Purchase Gain - (9.2) (0.6) 0.5 - 0.5
Pension Settlement Charge 10.2 - - - - -
Sale of Product Line 0.2 - - - - -
Non-GAAP Interest & Other Income (Expense), net (21.8)$ (13.4)$ (22.3)$ (6.2)$ (11.5)$ (17.7)$
Twelve Months Ended December 31,
(1)The Company adopted Accounting Standards Update (ASU) 2017-07 as of January 1, 2018 under the retrospective approach. Accordingly, the 2015, 2016 and 2017 income statement accounts have been restated to reflect ASU 2017-07.
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited)
© Bruker Corporation 26
(1)The Company adopted Accounting Standards Update (ASU) 2017-07 as of January 1, 2018 under the retrospective approach. Accordingly, the 2015, 2016 and 2017 income statement accounts have been restated to reflect ASU 2017-07.
(in millions, except per share amounts)
Three
Months
Ended
December
Nine Months
Ended
September 30,
Trailing
Twelve
Months Ended
September 30,
2015 (1)
2016 (1)
2017 (1)
2017 (1)
2018 2018
Reconciliation of GAAP Operating Cash Flow and Non-GAAP Free Cash Flow
GAAP Operating Cash Flow 229.2$ 130.8$ 154.4$ 103.7$ 107.4$ 211.1$
Non-GAAP Adjustments:
Purchases of property, plant and equipment (34.2) (37.1) (43.7) (12.4) (28.9) (41.3)
Non-GAAP Free Cash Flow 195.0$ 93.7$ 110.7$ 91.3$ 78.5$ 169.8$
Reconciliation of Non-GAAP Return on Invested Capital (ROIC)
Non-GAAP Operating Income (from above) 219.5$ 242.5$ 280.9$
Less: Non-GAAP Income Tax Provision (from above) (43.4) (35.9) (64.7)
Non-GAAP Operating Income after Tax 176.1$ 206.6$ 216.2$
Average Total Invested Capital:
Average Long-Term Debt 310.1$ 328.8$ 403.6$
Average Current portion of Long-Term Debt 0.7 10.4 10.1
Average Total Shareholders' Equity 752.3 713.0 713.3
Less: Average Cash and Cash Equivalents (293.3) (304.8) (333.7)
Average Total Invested Capital 769.8$ 747.4$ 793.3$
Return on Invested Capital (ROIC) 22.9% 27.6% 27.3%
Twelve Months Ended December 31,
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited)
© Bruker Corporation 27
For more information, visit Bruker’s IR website at https://ir.bruker.com/financial-info/quarterly-results/default.aspx
With respect to the Company's outlook for 2018 non-GAAP operating margin, non-GAAP EPS and non-GAAP tax rate, or projections for the 2019 non-GAAP EPS impact of any acquisition, we are not providing the most directly comparable GAAP financial measures or corresponding reconciliations to such GAAP financial measures on a forward-looking basis, because we are unable to predict with reasonable certainty certain items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort. Our expected non-GAAP operating margin, tax rate and EPS ranges exclude primarily the future impact of restructuring actions, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments. These reconciling items are uncertain, depend on various factors outside our management’s control and could significantly impact, either individually or in the aggregate, our future period operating margins, EPS and tax rate calculated and presented in accordance with GAAP.
(in millions, except per share amounts)
Three
Months
Ended
December
Nine Months
Ended
September 30,
Trailing
Twelve
Months Ended
September 30,
2015 (1)
2016 (1)
2017 (1)
2017 (1)
2018 2018
Reconciliation of Impact of Adoption of ASU 2017-07 (2)
Cost of revenues (2.6) (2.8) (3.0) (1.0) (1.3) (2.3)
Selling, general and administrative (0.7) (0.7) (0.7) (0.2) (0.4) (0.6)
Research and development (1.0) (1.1) (1.1) (0.4) (0.5) (0.9)
Interest and other income (expense), net 4.3 4.6 4.8 1.6 2.2 3.8
Net Impact to Net Income and Earnings per Share: - - - - - -
Twelve Months Ended December 31,
(1)The Company adopted Accounting Standards Update (ASU) 2017-07 as of January 1, 2018 under the retrospective approach. Accordingly, the 2015, 2016 and 2017 income statement accounts have been restated to reflect ASU 2017-07.
(2) The restatement for ASU 2017-07 below reflects the impact to the Non-GAAP financial statements. The GAAP financial statements for the twelve months ended December 31, 2015 also reflected a reclassification of $10.2 million related to pension settlements charges.
Bruker Corporation List of Commonly Used Abbreviations in Alphabetical Order
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ADC: Antibody Drug Conjugate AFM: Atomic Force Microscopy BEST: Bruker Energy and Supercon Technologies CALID: Chemical, Applied Market, Life Science, In-Vitro Diagnostics & Detection CCS: Collision Cross Section EPR: Electron Paramagnetic Resonance FIA-MRMS: Flow Injection Analysis Magnetic Resonance Mass Spectrometry FTIR: Fourier Transform Infrared Spectroscopy HOS: Higher-Order Structure HTS: High Temperature Superconductors IDP: Intrinsically Disordered Proteins KOL: Key Opinion Leader LC: Liquid Chromatography LC-MS: Liquid Chromatography Mass Spectrometry LC-QTOF: Liquid Chromatography Quadrupole Time-of-Flight MS LDT: Laboratory Developed Test LTS: Low Temperature Superconductors
mAb: Monoclonal Antibody MALDI: Matrix Assisted Laser Desorption Ionization MALDI-TOF: Matrix Assisted Laser Desorption Ionization Time-of-Flight MDx: Molecular Diagnostics MPI: Magnetic Particle Imaging MRI: Magnetic Resonance Imaging NIR: Near Infrared Spectroscopy NMR: Nuclear Magnetic Resonance PASEF: Parallel Accumulation Serial Fragmentation PET/MR: Positron Emission Tomography/ Magnetic Resonance PCR: Polymerase Chain Reaction SPIM: Selective Plane Illumination Microscopy SPR: Surface Plasmon Resonance timsTOF: Trapped Ion Mobility Separation Time-of-Flight UHR- QTOF: Ultrahigh Resolution Quadrupole Time-of-Flight uHTS: Ultra High Throughput Screening XCD: X-Ray Critical Dimension XRD: X-Ray Diffraction