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Bruker(BRKR) - 2024 Q3 - Quarterly Report
BRKRBruker(BRKR)2024-11-07 21:06
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Financial Performance - Total revenue for Q3 2024 was 864.4million,a16.3864.4 million, a 16.3% increase from 742.8 million in Q3 2023[9] - Product revenue reached 709.3million,up15.3709.3 million, up 15.3% from 615.1 million year-over-year[9] - Net income attributable to Bruker Corporation was 40.9millioninQ32024,down53.740.9 million in Q3 2024, down 53.7% from 88.1 million in Q3 2023[9] - Gross profit for Q3 2024 was 418.8million,comparedto418.8 million, compared to 382.8 million in Q3 2023, reflecting a gross margin improvement[9] - Operating income decreased to 68.1millioninQ32024from68.1 million in Q3 2024 from 124.5 million in Q3 2023, indicating a decline in operational efficiency[9] - Consolidated net income for the quarter is 50.9million,withacomprehensiveincomeof50.9 million, with a comprehensive income of 52.3 million[13] - The company reported a consolidated net income of 40.9millionforthequarterendingSeptember30,2024[13]−ForthethreemonthsendedSeptember30,2024,netincomeattributabletoBrukerCorporationwas40.9 million for the quarter ending September 30, 2024[13] - For the three months ended September 30, 2024, net income attributable to Bruker Corporation was 40.9 million, compared to 30.0millionforthesameperiodin2023,representingayear−over−yearincreaseof36.330.0 million for the same period in 2023, representing a year-over-year increase of 36.3%[114] Expenses and Costs - Research and development expenses increased to 98.1 million in Q3 2024, up 37.6% from 71.3millioninQ32023,highlightingafocusoninnovation[9]−Selling,generalandadministrativeexpensesaccountedfor26.671.3 million in Q3 2023, highlighting a focus on innovation[9] - Selling, general and administrative expenses accounted for 26.6% of total revenue, compared to 23.9% in the same period last year, driven by planned investments in sales and marketing[173] - Total other charges, net for the three months ended September 30, 2024, amounted to 22.7 million, compared to 9.4millionforthesameperiodin2023[125]−RestructuringchargesforthethreemonthsendedSeptember30,2024,were9.4 million for the same period in 2023[125] - Restructuring charges for the three months ended September 30, 2024, were 4.3 million, down from 4.8millioninthesameperiodof2023[126]−Thecompanyincurredacquisition−relatedexpensesof4.8 million in the same period of 2023[126] - The company incurred acquisition-related expenses of 6.8 million for the three months ended September 30, 2024, compared to 1.6millioninthesameperiodof2023[125]AssetsandLiabilities−TotalassetsasofSeptember30,2024,were1.6 million in the same period of 2023[125] Assets and Liabilities - Total assets as of September 30, 2024, were 6,112.9 million, significantly higher than 4,249.9millionattheendof2023[6]−Long−termdebtroseto4,249.9 million at the end of 2023[6] - Long-term debt rose to 2,264.5 million as of September 30, 2024, compared to 1,160.3millionattheendof2023,indicatingincreasedleverage[7]−Cashandcashequivalentsdecreasedto1,160.3 million at the end of 2023, indicating increased leverage[7] - Cash and cash equivalents decreased to 148.1 million from 488.3millionattheendof2023,reflectingliquiditychallenges[6]−Thecompanyreportedatotalshareholders′equityof488.3 million at the end of 2023, reflecting liquidity challenges[6] - The company reported a total shareholders' equity of 1,825.1 million as of September 30, 2024, up from 1,394.6millionattheendof2023[8]−TotaldebtasofSeptember30,2024,was1,394.6 million at the end of 2023[8] - Total debt as of September 30, 2024, was 2,297.3 million, an increase from 1,281.5millionasofDecember31,2023[83]RevenueSegments−TheBSIBioSpinsegmentgeneratesrevenuefromacademic,government,andindustrialcustomers,focusingonmagneticresonancetechnology[17]−TheBSICALIDsegmentprovidesmassspectrometryandmoleculardiagnosticssolutions,servingadiversecustomerbaseincludingpharmaceuticalandbiotechnologycompanies[18]−TheBSINANOsegmentfocusesonadvancedmicroscopyandanalyticaltools,cateringtonanotechnologyandsemiconductorindustries[19]−TheBESTsegmentdevelopssuperconductingmaterialsforapplicationsinhealthcareandrenewableenergy[20]−RevenuefromBSIBioSpinsegmentwas1,281.5 million as of December 31, 2023[83] Revenue Segments - The BSI BioSpin segment generates revenue from academic, government, and industrial customers, focusing on magnetic resonance technology[17] - The BSI CALID segment provides mass spectrometry and molecular diagnostics solutions, serving a diverse customer base including pharmaceutical and biotechnology companies[18] - The BSI NANO segment focuses on advanced microscopy and analytical tools, catering to nanotechnology and semiconductor industries[19] - The BEST segment develops superconducting materials for applications in healthcare and renewable energy[20] - Revenue from BSI BioSpin segment was 233.0 million for the three months ended September 30, 2024, compared to 198.3millionin2023,reflectinga17.5198.3 million in 2023, reflecting a 17.5% growth[28] - The BSI NANO Segment saw a revenue increase of 48.4% to 287.1 million, attributed to the NanoString acquisition and strong demand in the semiconductor metrology market[171] Acquisitions and Investments - The company completed acquisitions totaling 1,627.0millionincashconsiderationduringtheninemonthsendedSeptember30,2024[38]−TheacquisitionofNanoStringTechnologies,Inc.wascompletedforapproximately1,627.0 million in cash consideration during the nine months ended September 30, 2024[38] - The acquisition of NanoString Technologies, Inc. was completed for approximately 392.6 million in cash, enhancing the company's spatial biology capabilities[39] - ELITechGroup was acquired for 951.9millionincash,withanetconsiderationof951.9 million in cash, with a net consideration of 931.2 million after adjustments[43] - The company acquired 100% of Dynamic Biosensors GmbH for approximately 21.0milliononOctober1,2024[142]−ThecompanyintegratedELITechandNanostringintoitsBSICALIDandBSINANOsegments,respectively,enhancingitscapabilitiesinmoleculardiagnosticsandlifescience[151]CashFlowandLiquidity−Cashprovidedbyoperatingactivitiesdecreasedto21.0 million on October 1, 2024[142] - The company integrated ELITech and Nanostring into its BSI CALID and BSI NANO segments, respectively, enhancing its capabilities in molecular diagnostics and life science[151] Cash Flow and Liquidity - Cash provided by operating activities decreased to 61.3 million from 144.6million,reflectingadeclineof57.5144.6 million, reflecting a decline of 57.5% year-over-year[15] - Net cash used in investing activities significantly increased to 1,696.7 million from 289.2million,indicatingariseof485.5289.2 million, indicating a rise of 485.5%[15] - The company reported a cash balance of 151.7 million at the end of the period, down from 366.9millionattheendofSeptember2023[15]−Thenetchangeincash,cashequivalents,andrestrictedcashfortheninemonthsendedSeptember30,2024,wasadecreaseof366.9 million at the end of September 2023[15] - The net change in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2024, was a decrease of 339.9 million[201] - The company anticipates that existing cash and credit facilities will be sufficient to support operating and investing needs for at least the next twelve months[198] Tax and Compliance - The effective tax rate for the three months ended September 30, 2024, was 26.8%, up from 25.8% in 2023, primarily due to changes in jurisdictional mix and net unfavorable discrete activities[110] - The income tax provision for the nine months ended September 30, 2024, was 50.7million,comparedto50.7 million, compared to 80.6 million for the same period in 2023, reflecting a decrease in effective tax rate from 33.6% to 26.6%[110] - The Company had gross unrecognized tax benefits of approximately 71.7millionasofSeptember30,2024,comparedto71.7 million as of September 30, 2024, compared to 58.5 million as of December 31, 2023[112] Stock and Shareholder Information - Cash dividends paid to common shareholders amounted to 7.7million,atarateof7.7 million, at a rate of 0.05 per share[13] - The number of common shares outstanding increased to 145,334,000 by March 31, 2024[13] - As of September 30, 2024, 369.9millionremainsavailableforfuturepurchasesunderthe2023RepurchaseProgram,whichauthorizesupto369.9 million remains available for future purchases under the 2023 Repurchase Program, which authorizes up to 500.0 million in stock repurchases[117] - The Company did not purchase any shares under the 2023 Repurchase Program during the three and nine months ended September 30, 2024[118]