Bruker BioSciences Reports Record Revenue and Earnings for the Fourth Quarter and Full Year 2006.BILLERICA, Mass. -- Bruker BioSciences Corporation Bruker Biosciences Corporation is a Massachusetts-based company formed in 2003 which develops and manufactures scientific instrumentation for academic research and industrial use. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BRKR BRKR Breaker ) today reported financial results for the fourth quarter and full year ended December 31, 2006. On July 1, 2006, Bruker BioSciences completed its acquisition of Bruker Optics Inc., which was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . As a result of this required GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). accounting treatment, all historical financials have been pooled as if the companies had always been combined. On December 15, 2006, the Company filed a Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. with the Securities and Exchange Commission (SEC) which presents pooled historical financial statements for the three years ended December 31, 2005. For the fourth quarter of 2006, revenue increased by 27% to $135.6 million, compared to pooled revenue of $106.8 million in the fourth quarter of 2005. Excluding the effects of foreign currency translation, fourth quarter 2006 revenue increased by 22% year-over-year. Net income in the fourth quarter of 2006 was $9.7 million, or $0.09 per diluted share, compared to pooled net income of $4.9 million, or $0.05 per diluted share, in the fourth quarter of 2005. For the full year 2006, revenue increased by 17% to $435.8 million, compared to pooled revenue of $372.3 million for the full year 2005, with negligible effects from foreign currency translation. Net income for the full year 2006 was $18.5 million, or $0.18 per diluted share, compared to pooled net income of $9.7 million, or $0.10 per diluted share, during the full year 2005. Included in net income for the year 2006 were after-tax charges of $5.0 million, or $0.05 per diluted share, for Bruker Optics acquisition related expenses, and approximately $2.0 million, or $0.02 per diluted share, of after-tax gains on derivative financial instruments. For comparison, included in pooled net income for the year 2005 were after-tax losses on derivative financial instruments of approximately $1.0 million, or $0.01 per diluted share. For the full year 2006 adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become grew by 41% to $59.2 million, compared to pooled adjusted EBITDA of $41.8 million for the full year 2005. During the year 2006, cash flow generated from operations was $42.7 million. Comments and Analysis Commenting on the quarter, Frank Laukien, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said: "Throughout 2006 we delivered excellent top and bottom-line growth, with a particularly strong fourth quarter. Our innovative products and solutions for life-science and materials research, as well as for industrial and applied analysis, were key drivers behind our strong organic growth and margin expansion. The acquisition of Bruker Optics, as well as the other important acquisitions we completed over the past 15 months, continued to strengthen both our traditional research systems business and our newer industrial and applied analysis business. We have been leveraging our broader technology base and increased market access for solid progress in our financial performance." He continued: "While the nature of our business can cause fluctuations between quarterly financial results, excluding any unusual acquisition or similar charges in 2007, our financial goals for the full year 2007 are revenue growth greater than 10% and net income growth greater than 40% above our 2006 GAAP results." William Knight, Chief Financial Officer, commented: "Along with strong top-line growth in 2006, we continued to improve gross profit margins and to leverage our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , resulting in solid year-over-year improvements to our operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . In addition, during 2006 we brought down our effective tax rate to be more in-line with statutory rates. These efforts resulted in GAAP net income growth of 90% in 2006, compared to 2005. We also continued to generate strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , and significantly improved our adjusted EBITDA in 2006 over 2005." USE OF NON-GAAP FINANCIAL MEASURES In addition to the financial measures prepared in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), we use the non-GAAP measure of adjusted EBITDA. Adjusted EBITDA is defined as US GAAP operating income (loss) excluding depreciation and amortization expense, the write-down of demonstration equipment to net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. and acquisition related charges. We believe that the inclusion of this non-GAAP measure helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts. However, the non-GAAP financial measure included in this press release is not meant to be a better presentation or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of this non-GAAP financial measure to the most directly comparable GAAP financial measures are set forth in the accompanying tables. In addition, the above discussion of revenue growth in 2006 compared to 2005 (prior to restatement for the acquisition of Bruker Optics) is considered valuable information for investors to understand the benefits of using $135 million of cash and common stock to acquire Bruker Optics on July 1, 2006. EARNINGS CONFERENCE CALL Bruker BioSciences will host an operator-assisted earnings conference call at 9 a.m. Eastern Time on Thursday, February 22, 2007. To listen to the webcast, investors can go to www.bruker-biosciences.com and click on the live web broadcast symbol. The webcast will be available through the Company web site for 30 days. Investors can also listen and participate on the telephone in the US and Canada by calling 888-339-2688, or 617-847-3007 outside the US and Canada. Investors should refer to the Bruker BioSciences Quarterly Earnings Call. A telephone replay of the conference call will be available one hour after the conference call by dialing 888-286-8010 in the US and Canada, or 617-801-6888 outside the US and Canada, and then entering replay pass code 10416515. ABOUT BRUKER BIOSCIENCES Bruker BioSciences Corporation in Billerica, Massachusetts is the parent company of Bruker AXS Inc., Bruker Daltonics Inc. and Bruker Optics, Inc. Bruker AXS is a leading developer and provider of life science, materials research and industrial X-ray analysis and spark-OES tools. Bruker Daltonics is a leading developer and provider of innovative life science tools based on mass spectrometry mass spectrometry or mass spectroscopy Analytic technique by which chemical substances are identified by sorting gaseous ions by mass using electric and magnetic fields. , and also offers a broad line of chemical, biological, radiological and nuclear (CBRN CBRN Chemical, Biological, Radiological, and Nuclear CBRN Caribbean Basin Radar Network ) detection products for homeland security. Bruker Optics is a leading developer, manufacturer and provider of research, analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technology. For more information, please visit www.bruker-biosciences.com. CAUTIONARY STATEMENT Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to our reorganization strategies, risks related to the integration of businesses we have acquired or may acquire in the future, technological approaches, product development, market acceptance, cost and pricing of our products, changes in governmental regulations, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and government funding policies, FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. and other regulatory approvals to the extent applicable, competition, the intellectual property of others, patent protection and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005, our most recent quarterly reports on Form 10-Q, our S-3/A filed on January 29, 2007 and our current reports on Form 8-K. We disclaim any intent or obligation to update these forward-looking statements. Condensed consolidated statements of operations, operating business information, and balance sheets follow for Bruker BioSciences Corporation. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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