10-Q 1 brkr-20220331.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the quarterly period ended March 31, 2022

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the transition period from to

Commission File Number 000-30833

 

BRUKER CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

04-3110160

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

40 Manning Road, Billerica, MA 01821

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (978) 663-3660

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbols(s)

 

Name of each exchange

on which registered

 

Common Stock

BRKR

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

 

 

Class

 

Outstanding at May 3, 2022

 

Common Stock, $0.01 par value per share

149,255,424 shares

 

 


 

BRUKER CORPORATION

Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2022

Index

 

 

 

Page

Part I

FINANCIAL INFORMATION

3

Item 1:

Unaudited Condensed Consolidated Financial Statements

3

 

Unaudited Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021

3

 

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2022 and 2021

4

 

Unaudited Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Shareholders’ Equity for the three months ended March 31, 2022 and 2021

5

 

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4:

Controls and Procedures

36

Part II

OTHER INFORMATION

37

Item 1:

Legal Proceedings

37

Item 1A:

Risk Factors

37

Item 2:

Unregistered Sales of Equity Securities and Use of Proceeds

37

Item 6:

Exhibits

38

 

Signatures

39

 

2


 

PART I FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

 

 

 

March 31,
2022

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

816.1

 

 

$

1,068.2

 

Short-term investments

 

 

100.0

 

 

 

100.0

 

Accounts receivable, net

 

 

413.8

 

 

 

416.9

 

Inventories

 

 

739.9

 

 

 

710.1

 

Assets held for sale

 

 

 

 

 

4.4

 

Other current assets

 

 

181.0

 

 

 

172.2

 

Total current assets

 

 

2,250.8

 

 

 

2,471.8

 

Property, plant and equipment, net

 

 

403.8

 

 

 

406.1

 

Goodwill

 

 

384.3

 

 

 

339.5

 

Intangible assets, net

 

 

227.5

 

 

 

211.8

 

Other long-term assets

 

 

284.3

 

 

 

220.8

 

Total assets

 

$

3,550.7

 

 

$

3,650.0

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current portion of long-term debt

 

$

11.0

 

 

$

112.4

 

Accounts payable

 

 

161.2

 

 

 

147.4

 

Customer advances

 

 

214.7

 

 

 

197.5

 

Other current liabilities

 

 

493.6

 

 

 

481.2

 

Total current liabilities

 

 

880.5

 

 

 

938.5

 

Long-term debt

 

 

1,205.4

 

 

 

1,221.8

 

Other long-term liabilities

 

 

426.7

 

 

 

404.9

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

6.8

 

 

 

0.2

 

Shareholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.01 par value 5,000,000 shares authorized, none issued or
   outstanding

 

 

 

 

 

 

Common stock, $0.01 par value 260,000,000 shares authorized, 175,046,105 and
   
174,905,035 shares issued and 149,291,702 and 150,753,687 shares outstanding
   at March 31, 2022 and December 31, 2021, respectively

 

 

1.7

 

 

 

1.7

 

Treasury stock, at cost, 25,754,403 and 24,151,348 shares at March 31, 2022
   and December 31, 2021, respectively

 

 

(925.9

)

 

 

(820.3

)

Accumulated other comprehensive loss, net of tax

 

 

(17.1

)

 

 

(8.2

)

Other shareholders’ equity

 

 

1,958.3

 

 

 

1,897.3

 

Total shareholders’ equity attributable to Bruker Corporation

 

 

1,017.0

 

 

 

1,070.5

 

Noncontrolling interest in consolidated subsidiaries

 

 

14.3

 

 

 

14.1

 

Total shareholders’ equity

 

 

1,031.3

 

 

 

1,084.6

 

Total liabilities, redeemable noncontrolling interest and shareholders’ equity

 

$

3,550.7

 

 

$

3,650.0

 

The accompanying notes are an integral part of these financial statements

3


 

BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(in millions, except per share data)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Product revenue

 

$

490.4

 

 

$

458.6

 

Service revenue

 

 

103.2

 

 

 

94.1

 

Other revenue

 

 

1.4

 

 

 

2.0

 

Total revenue

 

 

595.0

 

 

 

554.7

 

Cost of product revenue

 

 

229.0

 

 

 

220.9

 

Cost of service revenue

 

 

59.6

 

 

 

54.8

 

Cost of other revenue

 

 

0.1

 

 

 

0.3

 

Total cost of revenue

 

 

288.7

 

 

 

276.0

 

Gross profit

 

 

306.3

 

 

 

278.7

 

Operating expenses:

 

 

 

 

 

 

Selling, general and administrative

 

 

145.7

 

 

 

131.8

 

Research and development

 

 

56.6

 

 

 

54.8

 

Other charges, net

 

 

7.5

 

 

 

3.0

 

Total operating expenses

 

 

209.8

 

 

 

189.6

 

Operating income

 

 

96.5

 

 

 

89.1

 

Interest and other income (expense), net

 

 

(2.5

)

 

 

(3.8

)

Income before income taxes and noncontrolling interest in
   consolidated subsidiaries

 

 

94.0

 

 

 

85.3

 

Income tax provision

 

 

31.9

 

 

 

27.5

 

Consolidated net income

 

 

62.1

 

 

 

57.8

 

Net income attributable to noncontrolling interests in consolidated
   subsidiaries

 

 

0.5

 

 

 

1.1

 

Net income attributable to Bruker Corporation

 

$

61.6

 

 

$

56.7

 

Net income per common share attributable to Bruker Corporation
   shareholders:

 

 

 

 

 

 

Basic

 

$

0.41

 

 

$

0.37

 

Diluted

 

$

0.41

 

 

$

0.37

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

 

150.4

 

 

 

151.8

 

Diluted

 

 

151.4

 

 

 

153.2

 

Comprehensive income

 

$

53.2

 

 

$

41.6

 

Less: Comprehensive income attributable to noncontrolling
   interests

 

 

0.2

 

 

 

0.9

 

Less: Comprehensive loss attributable to redeemable
   noncontrolling interests

 

 

(0.2

)

 

 

 

Comprehensive income attributable to Bruker Corporation

 

$

53.2

 

 

$

40.7

 

The accompanying notes are an integral part of these financial statements

4


 

BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY

(in millions, except share data)

 

 

Redeemable
Noncontrolling
Interest

 

 

 

Common
Shares

 

 

Common
Stock
Amount

 

 

Treasury
Shares

 

 

Treasury
Stock
Amount

 

 

Additional
Paid-In
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Total
Shareholders’
Equity
Attributable to
Bruker
Corporation

 

 

Noncontrolling
Interests in
Consolidated
Subsidiaries

 

 

Total
Shareholders’
Equity

 

Balance at December 31, 2021

 

$

0.2

 

 

 

 

150,753,687

 

 

$

1.7

 

 

 

24,151,348

 

 

$

(820.3

)

 

$

237.8

 

 

$

1,659.5

 

 

$

(8.2

)

 

$

1,070.5

 

 

$

14.1

 

 

$

1,084.6

 

Stock options exercised

 

 

 

 

 

 

118,630

 

 

 

 

 

 

 

 

 

 

 

 

3.1

 

 

 

 

 

 

 

 

 

3.1

 

 

 

 

 

 

3.1

 

Restricted stock units vested

 

 

 

 

 

 

22,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.8

 

 

 

 

 

 

 

 

 

3.8

 

 

 

 

 

 

3.8

 

Shares repurchased

 

 

 

 

 

 

(1,603,055

)

 

 

 

 

 

1,603,055

 

 

 

(105.6

)

 

 

 

 

 

 

 

 

 

 

 

(105.6

)

 

 

 

 

 

(105.6

)

Cash dividends paid to common stockholders
   ($
0.05 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7.5

)

 

 

 

 

 

(7.5

)

 

 

 

 

 

(7.5

)

Consolidated net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61.6

 

 

 

 

 

 

61.6

 

 

 

0.5

 

 

 

62.1

 

PreOmics Acquisition - other shareholders

 

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8.9

)

 

 

(8.9

)

 

 

(0.3

)

 

 

(9.2

)

Balance at March 31, 2022

 

$

6.8

 

 

 

 

149,291,702

 

 

$

1.7

 

 

 

25,754,403

 

 

$

(925.9

)

 

$

244.7

 

 

$

1,713.6

 

 

$

(17.1

)

 

$

1,017.0

 

 

$

14.3

 

 

$

1,031.3

 

 

The accompanying notes are an integral part of these financial statements

5


 

BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY

(in millions, except share data)

 

 

 

Redeemable
Noncontrolling
Interest

 

 

 

Common
Shares

 

 

Common
Stock
Amount

 

 

Treasury
Shares

 

 

Treasury
Stock
Amount

 

 

Additional
Paid-In
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Total
Shareholders’
Equity
Attributable to
Bruker
Corporation

 

 

Noncontrolling
Interests in
Consolidated
Subsidiaries

 

 

Total
Shareholders’
Equity

 

Balance at December 31, 2020

 

$

 

 

 

 

151,987,081

 

 

$

1.7

 

 

 

22,058,529

 

 

$

(667.0

)

 

$

216.3

 

 

$

1,406.5

 

 

$

3.7

 

 

$

961.2

 

 

$

13.1

 

 

$

974.3

 

Stock options exercised

 

 

 

 

 

 

65,312

 

 

 

 

 

 

 

 

 

 

 

 

1.2

 

 

 

 

 

 

 

 

 

1.2

 

 

 

 

 

 

1.2

 

Restricted stock units vested

 

 

 

 

 

 

21,821

 

 

 

 

 

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

(0.1

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.4

 

 

 

 

 

 

 

 

 

3.4

 

 

 

 

 

 

3.4

 

Shares repurchased

 

 

 

 

 

 

(530,729

)

 

 

 

 

 

530,729

 

 

 

(32.8

)

 

 

 

 

 

 

 

 

 

 

 

(32.8

)

 

 

 

 

 

(32.8

)

Cash dividends paid to common stockholders
   ($
0.04 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6.1

)

 

 

 

 

 

(6.1

)

 

 

 

 

 

(6.1

)

Consolidated net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56.7

 

 

 

 

 

 

56.7

 

 

 

1.1

 

 

 

57.8

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15.8

)

 

 

(15.8

)

 

 

(0.2

)

 

 

(16.0

)

Balance at March 31, 2021

 

$

 

 

 

 

151,543,485

 

 

$

1.7

 

 

 

22,589,258

 

 

$

(699.8

)

 

$

220.8

 

 

$

1,457.1

 

 

$

(12.1

)

 

$

967.7

 

 

$

14.0

 

 

$

981.7

 

The accompanying notes are an integral part of these financial statements

6


 

BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Consolidated net income

 

$

62.1

 

 

$

57.8

 

Adjustments to reconcile consolidated net income to cash flows from operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

21.7

 

 

 

22.3

 

Stock-based compensation expense

 

 

8.0

 

 

 

3.8

 

Deferred income taxes

 

 

(4.0

)

 

 

4.9

 

Other non-cash expenses, net

 

 

(6.2

)

 

 

4.9

 

Changes in operating assets and liabilities, net of acquisitions and divestitures:

 

 

 

 

 

 

Accounts receivable

 

 

(2.4

)

 

 

0.8

 

Inventories

 

 

(49.0

)

 

 

(41.6

)

Accounts payable and accrued expenses

 

 

(0.1

)

 

 

35.5

 

Income taxes payable, net

 

 

0.6

 

 

 

10.1

 

Deferred revenue

 

 

22.7

 

 

 

14.1

 

Customer advances

 

 

22.6

 

 

 

2.5

 

Other changes in operating assets and liabilities, net

 

 

1.8

 

 

 

(17.1

)

Net cash provided by operating activities

 

 

77.8

 

 

 

98.0

 

Cash flows from investing activities:

 

 

 

 

 

 

Cash paid for strategic investments, at cost

 

 

(12.0

)

 

 

 

Cash paid for acquisitions; net of cash acquired

 

 

(83.8

)

 

 

(4.0

)

Purchases of property, plant and equipment

 

 

(19.0

)

 

 

(24.7

)

Proceeds from sales of property, plant and equipment

 

 

12.7

 

 

 

1.2