Bruker Corp. reported financial results for its fourth quarter and full year ended December 31, 2013.
In a release on February 18, Bruker noted that its revenues for the fourth quarter of 2013 grew by 6.7 percent to $552.1 million, compared to $517.3 million in the fourth quarter of 2012. Excluding a 0.4 percent positive effect from changes in foreign exchange rates and a 0.1 percent net positive effect from acquisitions and divestitures, Bruker reported organic revenue growth of 6.2 percent year-over-year in the fourth quarter of 2013.
Bruker reported fourth quarter 2013 GAAP operating income of $61.0 million, or 11.0 percent of revenues, compared to $39.2 million, or 7.6 percent of revenues, in the fourth quarter of 2012. Fourth quarter 2013 GAAP earnings per diluted share (EPS) was $0.21, compared to EPS of $0.08 in the fourth quarter of 2012.
On a non-GAAP basis, Bruker reported fourth quarter 2013 operating income of $81.3 million, or 14.7 percent of revenues, compared to $73.0 million, or 14.1 percent of revenues, in the fourth quarter of 2012. Fourth quarter 2013 non-GAAP EPS was $0.31, compared to $0.28 in the fourth quarter of 2012.
For the full year 2013, Bruker's revenues grew 2.7 percent to $1.84 billion, compared to $1.79 billion for the full year 2012. Excluding a 0.3 percent unfavorable impact from changes in foreign exchange rates and a 0.2 percent net negative effect from acquisitions and divestitures, the Company generated 3.2 percent organic revenue growth for the full year 2013.
Bruker reported GAAP operating income of $148.2 million, or 8.1 percent of revenues, for the full year 2013, compared to $156.0 million, or 8.7 percent of revenues, for the full year 2012. The Company's GAAP EPS for the full year 2013 was $0.48, compared to $0.46 for the full year 2012.
On a non-GAAP basis, Bruker reported operating income of $205.5 million, or 11.2 percent of revenues, for the full year 2013, compared to $219.0 million, or 12.2 percent of revenues, for the full year 2012. Non-GAAP EPS for the full year 2013 was $0.77, compared to $0.83 for the full year 2012. Free cash flow for the full year 2013 was $94.7 million, compared to $60.3 million for the full year 2012.
"We ended 2013 on a stronger note, with healthy revenue growth and improving free cash flow," said Frank Laukien, President and CEO of Bruker. "Over the past eighteen months, we have taken steps to transform Bruker into a stronger company, while continuing to emphasize product innovations. These steps have included: expanding our leadership team; adopting our new Group structure; improving our operational processes and infrastructure; and implementing cost savings initiatives that are expected to generate $15 to $20 million of annual savings. While our full year 2013 financial performance does not yet fully reflect our underlying progress, we are confident that our multi-year innovation and transformation efforts are proceeding well, and we expect to deliver attractive growth and operating leverage in 2014 and beyond."
Laukien continued: "Looking ahead to 2014, we feel better about the health of our core academic and government customers and about our prospects in the clinical research and diagnostics markets, but we remain cautious about demand from the industrial markets. Overall, we expect to generate year-over-year revenue growth of approximately 3 to 4 percent, and non-GAAP EPS growth of 10 to 14 percent, for the full year 2014."
"Our higher full year 2013 free cash flow performance is a reflection of the gradual progress we are making in improving our working capital efficiency and lowering our capital expenditures," said Charles Wagner, Chief Financial Officer of Bruker. "While we did an effective job of lowering our operating expenses and launching new restructuring initiatives during the year 2013, these actions were not enough to compensate for losing more than 100 basis points of operating margin due to changes in foreign exchange rates during 2013. Moving forward, we are well-positioned to drive margin expansion and further cash flow improvements in 2014 and subsequent years."
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