Bruker(BRKR)2024-08-09 20:41Revenue Performance - Total revenue for Q2 2024 was $800.7 million, a 17.4% increase from $681.9 million in Q2 2023[7] - Product revenue reached $654.4 million in Q2 2024, up 16.9% from $559.6 million in Q2 2023[7] - Service and other revenue increased to $146.3 million in Q2 2024, compared to $122.3 million in Q2 2023, reflecting a 19.6% growth[7] - Total revenue for the six months ended June 30, 2024, reached $1,522.4 million, up 11.3% from $1,367.2 million in the prior year[29] - Revenue from the United States for the three months ended June 30, 2024, was $243.7 million, a 35.9% increase compared to $179.3 million in the same period of 2023[31] - Organic revenue for the three months ended June 30, 2024, increased by 7.4% excluding the effects of foreign exchange and acquisitions[142] - Organic revenue for the six months ended June 30, 2024, increased by 4.5% excluding the effects of foreign exchange and acquisitions[143] Profitability Metrics - Gross profit for Q2 2024 was $384.6 million, representing a gross margin of 48.0%, compared to 49.9% in Q2 2023[7] - Net income for Q2 2024 was $7.6 million, a significant decrease from $57.8 million in Q2 2023[9] - The company reported a total comprehensive loss of $28.9 million for Q2 2024, compared to a comprehensive income of $52.9 million in Q2 2023[10] - Operating income for the three months ended June 30, 2024, decreased to $48.1 million, a decline of 44.2% compared to $86.2 million in the same period in 2023[155] - Diluted earnings per share for the three months ended June 30, 2024, was $0.05, a decrease of $0.34 compared to $0.39 per share in the same period in 2023[145] - Gross profit margin decreased to 48.0% for the three months ended June 30, 2024, compared to 49.9% for the same period in 2023[144] Expenses and Investments - Research and development expenses for Q2 2024 were $92.2 million, up from $71.0 million in Q2 2023, indicating a 29.0% increase[7] - Total operating expenses increased by 32.3% to $336.5 million for the three months ended June 30, 2024, compared to $254.3 million in the same period in 2023[155] - Other charges, net for the six months ended June 30, 2024, included $21.6 million of acquisition-related charges, significantly up from $5.8 million in the same period in 2023[176] - The company expects to incur additional restructuring charges of $7.2 million through the remainder of 2024 as part of a global restructuring program[124] Balance Sheet Highlights - Total assets as of June 30, 2024, were $5,902.6 million, up from $4,249.9 million at the end of 2023[4] - Total liabilities increased to $4,078.1 million as of June 30, 2024, compared to $2,836.6 million at the end of 2023[5] - Total shareholders' equity attributable to Bruker Corporation was $1,807.0 million, an increase from $1,789.2 million at the end of the previous quarter[12] - Cash and cash equivalents decreased to $169.7 million from $488.3 million at the end of 2023[4] Acquisitions and Goodwill - The company completed various acquisitions in 2024, with total consideration transferred amounting to $1,613.0 million[37] - Goodwill allocated from acquisitions in 2024 was $876.1 million[37] - The company acquired NanoString Technologies, Inc. for approximately $392.6 million in cash, including the assumption of certain liabilities[38] - The Company incurred $7.2 million in acquisition-related expenses associated with the NanoString acquisition, primarily for legal and professional services[42] - The carrying amount of goodwill increased from $582.6 million at December 31, 2023, to $1,443.8 million at June 30, 2024[78] Cash Flow Analysis - Net cash provided by operating activities decreased to $22.9 million from $100.5 million year-over-year, a decline of about 77%[16] - Net cash used in investing activities rose sharply to $1,629.1 million from $134.2 million, reflecting increased capital expenditures and acquisitions[16] - Net cash provided by financing activities was $1,307.5 million for the six months ended June 30, 2024, mainly from proceeds from a revolving line of credit and long-term debt[188] Debt and Financing - The Company's total debt increased to $2,158.4 million as of June 30, 2024, up from $1,281.5 million at the end of 2023, reflecting a substantial rise in financial obligations[82] - The Company has a total of $900 million committed under the 2024 Amended and Restated Credit Agreement, with outstanding borrowings of $222.6 million as of June 30, 2024[83] - The Company entered into a term loan agreement providing for a CHF 150 million three-year term loan facility and a CHF 150 million five-year term loan facility[85] Tax and Compliance - The income tax provision for the three months ended June 30, 2024, was $16.1 million, representing an effective tax rate of 67.4%, compared to $19.9 million and 25.7% for the same period in 2023[108] - The effective tax rate increased primarily due to changes in jurisdictional mix and the impact of valuation allowance on capital loss carryforwards[108] - The Company had gross unrecognized tax benefits of approximately $69.4 million as of June 30, 2024, up from $58.5 million at the end of 2023[109] Shareholder Actions - Cash dividends declared and paid to common shareholders were $7.7 million, at a rate of $0.05 per share[12] - The Company approved a share repurchase program in May 2023, authorizing the purchase of up to $500.0 million of common stock, with $369.9 million remaining available as of June 30, 2024[113] - The Company completed a public offering in May 2024, issuing 6,000,000 shares at a price of $67.29 per share, resulting in net proceeds of approximately $403.0 million[116]