Bruker BioSciences Reports Revenue of $85.8 Million, Operating Income of $3.6 Million and Net Income of $0.8 Million for the Fourth Quarter 2004.BILLERICA Billerica (bĭlrĭ`kə), town (1990 pop. 37,609), Middlesex co., NE Mass., on the Concord River; settled 1637, inc. 1655. An important high-tech center, its manufactures include computer hardware and software, precision instruments, and , 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 reports its financial results for the fourth quarter and year ended December December: see month. 31, 2004. On July July: see month. 1, 2003, Bruker Daltonics Bruker Daltonics is a global scientific instrument manufacturer. The company is a part of Bruker Biosciences Corporation (Nasdaq:BRKR) and specializes in mass spectrometry. The Bruker Daltonics headquarters are in Billerica, MA - USA and Bremen, Germany. Inc. merged with Bruker AXS Bruker AXS is an international instrument manufacturer and supplier. The company is part of Bruker and specialized on Analytical X-Ray Systems. The main parts are the X-Ray diffraction and the X-Ray spectrometry. Inc. to form Bruker BioSciences Corporation. All results for periods prior to this merger are historical combined results of the two previously separate companies. For the fourth quarter of 2004, Bruker Bruker originally started as a German company specialized in nuclear magnetic resonance (NMR), but has evolved into an international company with products covering a gamut of biological, chemical and medical fields. There are two companies that carry the Bruker brand. BioSciences reported a 16% increase in revenue to $85.8 million, compared to revenue of $73.7 million in the fourth quarter of 2003. For the year ended December 31, 2004, revenue increased 9% to $284.6 million, compared to revenue of $260.7 million for the year 2003. In the fourth quarter of 2004, GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $0.8 million, or $0.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to GAAP net income of $0.3 million, or $0.00 per diluted share, in the fourth quarter of 2003. In the fourth quarter of 2004, adjusted net income, as defined below, was $0.9 million, or $0.01 per diluted share, compared to adjusted net income of $0.6 million, or $0.01 per diluted share, in the fourth quarter of 2003. For the year ended December 31, 2004, GAAP net loss was $(5.5) million, or $(0.06) per diluted share, compared to a GAAP net loss of $(17.6) million, or $(0.22) per diluted share, for the year 2003. For the year 2004, adjusted net loss was $(2.7) million, or $(0.03) per diluted share, compared to adjusted net income of $2.2 million, or $0.03 per diluted share, for the same period last year. Adjusted net income/loss is a non-GAAP financial measure that excludes the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of investments, merger related charges and adjustments for the pre-merger minority interest in Bruker AXS. The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. financial schedules also reflect a reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of service costs from marketing and selling to cost of product revenues as explained in the financial schedules. COMMENTS AND OUTLOOK "We had a considerably improved fourth quarter with a continued focus on returning to profitability and on generating positive cash flow," commented 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. . "Our gross margins have improved in the second half of 2004, while our expenses as a percentage of revenue continued to decline in the fourth quarter. We are encouraged, as sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen both 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. and our net income have improved in the fourth quarter 2004. We have reached our fourth quarter goal of being profitable and generating positive cash flow, but more remains to be done in 2005 and beyond." Dr. Laukien continued: "We are making good progress with our expense control and cost-cutting efforts, and we expect that the full effect of these productivity measures, combined with continued revenue growth and gross margin expansion, will result in steady improvements in our profitability during the year 2005. Our new order bookings in the fourth quarter were healthy, and we continue to benefit from a considerable backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of orders, as we go into 2005. We are particularly pleased that our Bruker AXS business, after a flat year 2003, had very strong revenue growth in 2004, and is expected to continue its growth momentum into 2005. Our Bruker Daltonics business had slower revenue growth in 2004, but an improved fourth quarter bodes well for resumed growth in 2005. Just this week, we had some exciting new product introductions for both Bruker AXS and Bruker Daltonics at Pittcon 2005, and we expect that the strength of our product line will enable us to continue our double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth and further profitability improvement in 2005." William Knight William Knight may refer to:
Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. year-over-year. During the quarter we put gross profit margin improvement programs in place involving product redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re and quality improvements which we expect will bring our margins up to industry standards over the next few years. In addition, in the fourth quarter of 2004 we generated cash from operations of $9.6 million, compared to cash from operations of $3.6 million in the fourth quarter of 2003, enabling us to pay down some higher interest rate short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. ." Mr. Knight knight, in ancient and medieval history, a noble who did military service as a mounted warrior. The Knight in Ancient History In ancient history, as in Athens and Rome, the knight was a noble of the second class who in military service had to continued: "We believe the combination of our strong backlog and our numerous new product introductions will continue the recent momentum and drive double-digit top-line growth in 2005, while we continue to focus on significantly improving our profitability and cash flows. As the Company mostly sells 'big ticket' items, we may from time to time experience significant fluctuations between our quarterly guidance and our actual financial results. Keeping in mind these limitations to our visibility, for the first quarter of 2005, which is traditionally our lowest quarter of the year, we anticipate revenues of $68 to $74 million and around breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations net income. For the full year 2005 our goal is to achieve revenue growth of 10-12%, and operating income of 3-5% of revenue." OPERATING BUSINESSES Set forth below is selected financial information for Bruker BioSciences' two operating businesses: Bruker Daltonics (life-science 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 NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. detection business) and Bruker AXS (x-ray X-ray Electromagnetic radiation of extremely short wavelength (100 nanometres to 0.001 nanometre) produced by the deceleration of charged particles or the transitions of electrons in atoms. analysis business): BRUKER DALTONICS In the fourth quarter of 2004, revenue for the Bruker Daltonics business increased 7% to $44.8 million, from $42.0 million in the fourth quarter of 2003. For the year 2004, revenue for the Bruker Daltonics business increased 4% to $152.8 million, from $146.7 million in the year 2003. For the year 2004, Bruker Daltonics' revenue was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. 71% from life-science mass spectrometry systems, 9% from substance detection systems, and 20% from after-market af·ter-mar·ket n. The market for parts and accessories used in the upkeep or enhancement of a previous purchase, as of a car or computer. af sales. For the fourth quarter of 2004, 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 was $6.7 million, compared to $3.9 million for the fourth quarter of 2003. For the year ended December 31, 2004, adjusted EBITDA was $18.7 million, compared to $16.0 million for the same period last year. See the accompanying tables for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. BRUKER AXS Revenues for the Bruker AXS business increased 32% to $41.8 million in the fourth quarter of 2004, compared to $31.7 million in the fourth quarter of 2003. For the year 2004, revenues for the Bruker AXS business increased 16% to $132.6 million, compared to $113.9 million for the year 2003. Revenues increased across all product lines as well as for after-market sales. For the year 2004, Bruker AXS revenue was derived 70% from x-ray systems and 30% from aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. sales. Adjusted EBITDA was $3.6 million in the fourth quarter of 2004, compared to $0.6 million in the fourth quarter of 2003. Adjusted EBITDA was $6.5 million for the year 2004, compared to $3.7 million for the year 2003. See the accompanying tables for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. USE OF NON-GAAP FINANCIAL MEASURES In addition to the financial measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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 measures of adjusted net income, EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. , and EBITDA. Adjusted net income and EPS exclude certain items including amortization of acquisition-related assets, write-off of investments, other special charges, and adjustments for the pre-merger minority interest in Bruker AXS. We exclude these items because they are outside of our normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of and, in certain cases, are difficult to forecast accurately for future periods. Adjusted EBITDA is defined as US GAAP operating income (loss) excluding depreciation and amortization expense, write-off of investments and other special charges. We believe that the inclusion of such non-GAAP measures 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 measures included in this press release are not meant to be a better presentation or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables. EARNINGS CONFERENCE CALL Bruker BioSciences will host an operator-assisted earnings conference call at 5 p.m. Eastern Time on Wednesday Wednesday: see week. , March 2, 2005. 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 Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of 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 21424611 ABOUT BRUKER BIOSCIENCES Bruker BioSciences Corporation, headquartered in Billerica, Massachusetts Billerica (IPA: [bɪl.'ɹɪ.kə]) is a town in Middlesex County, Massachusetts, United States. The population was 38,981 at the 2000 census. Its name is pronounced "bill-RICK-a", rather than rhyming with America. , is the publicly traded parent company of Bruker Daltonics Inc. and Bruker AXS Inc. Bruker AXS is a leading developer and provider of life science and advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, research tools based on x-ray technology. Bruker Daltonics is a leading developer and provider of innovative life science tools based on mass spectrometry. Bruker Daltonics also offers a broad line of nuclear, biological and chemical (NBC) detection products for defense and homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States . 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. strategies, integration risks, failure of conditions, technological approaches, product development, market acceptance, cost and pricing of the Company's 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 respective annual reports 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, 2003, our most recent quarterly reports on Form 10-Q Form 10-Q See 10-Q. , and our current reports on 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. . We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any intent or obligation to update these forward-looking statements. Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements of operations, reconciliations, operating business information, and balance sheets follow for Bruker BioSciences.
Bruker BioSciences Corporation
QUARTER ENDED DECEMBER 31, 2004 and 2003 CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
December 31, 2004
--------------------------------
GAAP Adjustment As
Adjusted
-------- -----------------------
Product revenues $84,864 $- $84,864
Other revenues 972 - 972
-------- ---------- ---------
Net revenues 85,836 - 85,836
-------- ---------- ---------
Costs and operating expenses:
Cost of product revenues (a) 45,887 - 45,887
Sales and marketing (a) 18,688 - 18,688
General and administrative 5,994 (118) (b) 5,876
Research and development 11,654 - 11,654
Other special charges - - -
-------- ---------- ---------
Total costs and operating expenses 82,223 (118) 82,105
-------- ---------- ---------
Operating income (loss) 3,613 118 3,731
Interest and other income (expense),
net (923) - (923)
-------- ---------- ---------
Income before income tax provision and
minority interest in consolidated
subsidiaries 2,690 118 2,808
Income tax provision 1,942 - 1,942
-------- ---------- ---------
Income before minority interest 748 118 866
Minority interest in consolidated
subsidiaries (77) - (77)
-------- ---------- ---------
Net income $ 825 118 $ 943
======== ========== =========
Net income per share - basic and
diluted $0.01 $- $0.01
======== ========== =========
Weighted average shares outstanding -
Basic 89,470 89,470 89,470
======== ========== =========
Diluted 89,593 89,593 89,593
======== ========== =========
Three Months Ended
December 31, 2003
--------------------------------
GAAP Adjustment As
Adjusted
--------------------------------
Product revenues $73,564 $- $73,564
Other revenues 95 - 95
-------- ---------- ---------
Net revenues 73,659 - 73,659
-------- ---------- ---------
Costs and operating expenses:
Cost of product revenues (a) 42,979 (170) (c) 42,809
Sales and marketing (a) 16,088 - 16,088
General and administrative 4,788 (118) (b) 4,670
Research and development 9,862 - 9,862
Other special charges - -
-------- ---------- ---------
Total costs and operating expenses 73,717 (288) 73,429
-------- ---------- ---------
Operating income (loss) (58) 288 230
Interest and other income (expense),
net 818 - 818
-------- ---------- ---------
Income before income tax provision
and minority
interest in consolidated
subsidiaries 760 288 1,048
Income tax provision 447 - 447
-------- ---------- ---------
Income before minority interest 313 288 601
Minority interest in consolidated
subsidiaries 2 - 2
-------- ---------- ---------
Net income $311 288 $599
======== ========== =========
Net income per share - basic and
diluted $0.00 $- $0.01
======== ========== =========
Weighted average shares outstanding -
Basic 86,003 86,003 86,003
======== ========== =========
Diluted 86,826 86,826 86,826
======== ========== =========
(a) Certain service costs previously classified in sales and marketing
expenses have been reclassified to cost of product revenues in the
following amounts: $1.1 million for the three months ended
December 31, 2003, $3.0 million for the year ended December 31,
2003 and $2.5 million for the year ended December 31, 2004.
(b) GAAP results include the amortization of acquisition related
intangible assets. Adjusting for this expense provides comparable
operating results for each period presented, and also allows for
comparisons to both acquisitive and non-acquisitive peers in the
industries we serve.
(c) GAAP results include inventory reserves established in connection
with the merger of Bruker AXS in July 2003. As a result of the
merger, these reserves were established against inventories that
would not longer be used in production. We believe adjusting for
these reserves provides results that are more indicative of our
normal operating costs.
Bruker BioSciences Corporation
YEAR ENDED DECEMBER 31, 2004 CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share data)
Year Ended
December 31, 2004
---------------------------------
GAAP Adjustment As
Adjusted
--------- -----------------------
Product revenues $282,425 $- $282,425
Other revenues 2,189 - 2,189
--------- ---------- ---------
Net revenues 284,614 - 284,614
--------- ---------- ---------
Costs and operating expenses:
Cost of product revenues (a) 156,018 - 156,018
Sales and marketing (a) 63,318 - 63,318
General and administrative 20,399 (472) (b) 19,927
Research and development 44,323 - 44,323
Reversal of liability accrual - - -
Other special charges - - -
--------- ---------- ---------
Total costs and operating expenses 284,058 (472) 283,586
--------- ---------- ---------
Operating income (loss) 556 472 1,028
Write-off of investments (2,321) 2,321 (d) -
Interest and other income (expense),
net (1,370) - (1,370)
--------- ---------- ---------
Income (loss) before income tax
provision and minority interest
in consolidated subsidiaries (3,135) 2,793 (342)
Income tax provision (benefit) 2,338 - 2,338
--------- ---------- ---------
Income (loss) before minority
interest (5,473) 2,793 (2,680)
Minority interest in consolidated
subsidiaries 68 - 68
--------- ---------- ---------
Net income (loss) $(5,541) 2,793 $(2,748)
========= ========== =========
Net income (loss) per share - basic
and diluted $(0.06) $0.03 $(0.03)
========= ========== =========
Weighted average shares outstanding -
Basic 88,495 88,495 88,495
========= ========== =========
Diluted 88,495 88,495 88,495
========= ========== =========
Year Ended
December 31, 2003
---------------------------------
GAAP Adjustment As
Adjusted
---------------------------------
Product revenues $259,381 $- $259,381
Other revenues 1,298 - 1,298
--------- ---------- ---------
Net revenues 260,679 - 260,679
--------- ---------- ---------
Costs and operating expenses:
Cost of product revenues (a) 147,834 (1,029)(c) 146,805
Sales and marketing (a) 57,420 - 57,420
General and administrative 17,335 (245)(b) 17,090
Research and development 38,026 - 38,026
Reversal of liability accrual (1,929) - (1,929)
Other special charges 11,674 (11,674)(e) -
--------- ---------- ---------
Total costs and operating expenses 270,360 12,948 257,412
--------- ---------- ---------
Operating income (loss) (9,681) 12,948 3,267
Write-off of investments - - -
Interest and other income (expense),
net 998 - 998
--------- ---------- ---------
Income (loss) before income tax
provision and minority interest
in consolidated subsidiaries (8,683) 12,948 4,265
Income tax provision (benefit) 9,724 (7,682)(f) 2,042
--------- ---------- ---------
Income (loss) before minority
interest (18,407) 20,630 2,223
Minority interest in consolidated
subsidiaries (853) 846(e) (7)
--------- ---------- ---------
Net income (loss) $(17,554) 19,784 $2,230
========= ========== =========
Net income (loss) per share - basic
and diluted $(0.22) $0.24 $0.03
========= ========== =========
Weighted average shares outstanding -
Basic 81,280 81,280 81,280
========= ========== =========
Diluted 81,280 81,280 82,118
========= ========== =========
(a) Certain service costs previously classified in sales and marketing
expenses have been reclassified to cost of product revenues in the
following amounts: $1.1 million for the three months ended
December 31, 2003, $3.0 million for the year ended December 31,
2003 and $2.5 million for the year ended December 31, 2004.
(b) GAAP results include the amortization of acquisition related
intangible assets. Adjusting for this expense provides comparable
operating results for each period presented, and also allows for
comparisons to both acquisitive and non-acquisitive peers in the
industries we serve.
(c) GAAP results include inventory reserves established in connection
with the merger of Bruker AXS in July 2003. As a result of the
merger, these reserves were established against inventories that
would not longer be used in production. We believe adjusting for
these reserves provides results that are more indicative of our
normal operating costs.
(d) GAAP results include the write-off of certain investments. We
exclude these charges because they are isolated charges that do
not occur frequently and we believe excluding them presents
results that are more indicative of normal results.
(e) GAAP results include charges associated with merger of Bruker AXS
in July 2003. These charges include legal, advisory and accounting
fees incurred in connection with the merger, costs associated with
consolidating production facilities, including severance charges
and facility exit costs, the write-off of the remaining balance of
impaired intangibles associated with trade names and trademarks,
the write-off of acquired research and development and adjustments
for the pre-merger minority interest in Bruker AXS. We believe
adjusting for these charges results in operating results that are
more indicative of normal, recurring operations and allows for
comparisons to current period operating results.
(f) GAAP results include a non-cash charge to establish a tax asset
valuation allowance, primarily to write-off the deferred tax
assets of our U.S. based operations. We exclude these charges
because they cannot be expected to occur on a regular basis and we
believe the adjusted results are more indicative of normal
results.
Bruker BioSciences Corporation
RECONCILIATION FROM GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
(in thousands, except per share data)
Three Months Year
Ended Ended
December 31, December 31,
--------------- ------------------
2004 2003 2004 2003
------- ------- -------- ---------
GAAP net income (loss) $ 825 $311 $(5,541) $(17,554)
Adjustments:
Interest and other (income)
expense, net 923 (818) 1,370 (998)
Income tax expense 1,942 447 2,338 9,724
Write-off of investments - - 2,321 -
Minority interest in subsidiaries (77) 2 68 (853)
------- ------- -------- ---------
Operating income (loss) 3,613 (58) 556 (9,681)
Depreciation and amortization 5,024 4,412 18,914 16,597
------- ------- -------- ---------
EBITDA 8,637 4,354 19,470 6,916
Write-off of investments - - 2,321 -
Merger related charges - - - 11,674
Other restructuring charges - - - 703
------- ------- -------- ---------
Adjusted EBITDA $8,637 $4,354 $21,791 $19,293
======= ======= ======== =========
Bruker BioSciences Corporation
BRUKER DALTONICS SELECTED OPERATING BUSINESS INFORMATION
(in thousands)
Three Months Year
Ended Ended
December 31, December 31,
----------------- -------------------
2004 2003 2004 2003
-------- -------- --------- ---------
Net revenues $44,862 $41,969 $152,790 $146,749
======== ======== ========= =========
Operating income $3,347 $1,144 $5,737 $2,558
Depreciation and amortization 3,335 2,802 11,342 10,568
-------- -------- --------- ---------
EBITDA 6,682 3,946 17,079 13,126
Write-off of investments - - 1,621 -
Merger related charges - - - 2,906
-------- -------- --------- ---------
Adjusted EBITDA $6,682 $3,946 $18,700 $16,032
======== ======== ========= =========
Bruker BioSciences Corporation
BRUKER AXS SELECTED OPERATING BUSINESS INFORMATION
(in thousands)
Three Months Year
Ended Ended
December 31, December 31,
----------------- -------------------
2004 2003 2004 2003
-------- -------- --------- ---------
Net revenues $41,772 $31,690 $132,622 $113,930
======== ======== ========= =========
Operating income (loss) $1,797 $(993) $(1,744) $(11,828)
Depreciation and amortization 1,851 1,610 7,571 6,029
-------- -------- --------- ---------
EBITDA 3,648 617 5,827 (5,799)
Write-off of investments - - 700 -
Merger related charges - - - 8,768
Other restructuring charges - - - 703
-------- -------- --------- ---------
Adjusted EBITDA $3,648 $617 $6,527 $3,672
======== ======== ========= =========
Bruker BioSciences Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
-------------------
2004 2003
--------- ---------
ASSETS
Current assets:
Cash and short-term investments $78,776 $76,837
Accounts receivable, net 67,519 54,689
Inventories 108,801 110,052
Other current assets 16,217 9,047
--------- ---------
Total current assets 271,313 250,625
Property and equipment, net 84,990 81,354
Intangible and other assets 13,751 19,052
--------- ---------
Total assets $370,054 $351,031
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $12,205 $18,587
Accounts payable 25,680 24,909
Other current liabilities 70,526 65,104
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Total current liabilities 108,411 108,600
Long-term debt 27,762 26,374
Other long-term liabilities 13,810 13,507
Minority interest in subsidiaries 351 124
Total shareholders' equity 219,720 202,426
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Total liabilities and shareholders' equity $370,054 $351,031
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