Fourth Quarter 2020 Highlights
- Sales of $787 million grew 10% as reported and 7% in constant
currency
- GAAP EPS of $3.49; non-GAAP EPS of $3.65, a 14% increase from
prior year
- Strong adjusted free cash flow of $240 million, a 52% increase
from prior year
- Growth led by strong performance in pharmaceutical and
industrial end markets
- Continued broad-based sales growth across all major
geographies
Waters Corporation (NYSE: WAT) today announced fourth quarter
2020 sales of $787 million, a 10% increase as reported, compared to
sales of $716 million for the fourth quarter of 2019. Foreign
currency translation benefited sales growth by approximately 3% for
the quarter.
On a GAAP basis, diluted earnings per share (EPS) for the fourth
quarter of 2020 increased to $3.49, compared to $3.12 for the
fourth quarter of 2019. On a non-GAAP basis, EPS increased to
$3.65, compared to $3.20 for the fourth quarter of 2019. A
description and reconciliation of GAAP to non-GAAP results appear
in the tables below and can be found on the Company’s website
www.waters.com in the Investor Relations section.
On a GAAP basis, net cash provided by operating activities was
$267 million for the fourth quarter of 2020, compared to $192
million for the fourth quarter of 2019. On a non-GAAP basis,
adjusted free cash flow for the fourth quarter of 2020 was $240
million versus $158 million for the fourth quarter of 2019.
For fiscal year 2020, the Company’s sales were $2,365 million, a
decrease of 2% as reported, compared to sales of $2,407 million for
fiscal year 2019. Foreign currency translation benefited sales
growth by less than 1% during fiscal year 2020.
On a GAAP basis, EPS for fiscal year 2020 decreased to $8.36,
compared to $8.69 for fiscal year 2019. On a non-GAAP basis, EPS
increased to $9.05, compared to $8.99 in fiscal year 2019. Both
GAAP and non-GAAP EPS were impacted by the decline in sales
volumes.
On a GAAP basis, net cash provided by operating activities was
$791 million for fiscal year 2020, compared to $643 million for
fiscal year 2019. On a non-GAAP basis, adjusted free cash flow for
fiscal year 2020 was $726 million versus $576 million for fiscal
year 2019.
“This past year has been one of change and sacrifice, though it
has been defined by the incredible resilience of our global team.
From navigating the pandemic to a transition in leadership, the
Waters team has responded with admirable drive, determination and
spirit. And for that I am grateful,” said Dr. Udit Batra, President
and Chief Executive Officer of Waters Corporation. “We are pleased
with our fourth quarter results, driven by pharmaceutical market
improvement, growth across all major geographies, contributions
from COVID-related sales and early results from our near-term
growth initiatives. We have made substantial progress over the last
five months, and while it’s early days, I remain confident in our
product portfolio, competitive position and our team to seize the
opportunities for Waters in 2021.”
Unless otherwise noted, sales growth and decline percentages are
presented on an as-reported basis and are the same as the sales
growth and decline percentages presented on a constant-currency
basis as compared with the same period in the prior year, each of
which is detailed in the reconciliation of sales growth rates to
constant-currency growth rates in the tables below.
During the fourth quarter of 2020, sales into the pharmaceutical
market increased 17% as reported and 15% in constant currency,
sales into the industrial market increased 8% as reported and 5% in
constant currency and sales into the academic and governmental
markets declined 13% as reported and 15% in constant currency. For
fiscal year 2020, sales into the pharmaceutical market increased 2%
as reported and 1% in constant currency, sales into the industrial
market declined 2% as reported and 3% in constant currency and
sales into the academic and governmental markets declined 16% as
reported and in constant currency.
During the fourth quarter, recurring revenues, which represent
the combination of service and precision chemistries revenues,
increased 14% as reported and 11% in constant currency, while
instrument system sales increased 6% as reported and 4% in constant
currency. For fiscal year 2020, recurring revenues increased 4% as
reported and 3% in constant currency, while instrument system sales
declined 8% as reported and 9% in constant currency.
Geographically, sales in Asia during the quarter increased 13%
as reported and 12% in constant currency, sales in the Americas
increased 3% (with U.S. sales growing 4%) and sales in Europe
increased 15% as reported and 6% in constant currency. For fiscal
year 2020, sales in Asia declined 4% as reported and in constant
currency, sales in the Americas declined 4% (with U.S. sales
declining 2%) and sales in Europe increased 5% as reported and 2%
in constant currency.
First Quarter and Fiscal Year 2021 Financial Outlook
The Company expects full-year 2021 constant-currency sales
growth in the range of 5% to 8%. Currency translation is expected
to increase full-year sales growth by one to two percentage points.
The Company also expects full-year 2021 non-GAAP EPS in the range
of $9.32 to $9.57. Please refer to the tables below for a
reconciliation of the projected GAAP to non-GAAP financial outlook
for the full-year.
The Company expects first quarter 2021 constant-currency sales
growth in the range of 7% to 10%. Currency translation is expected
to increase first quarter sales growth by approximately three
percentage points. The Company also expects first quarter 2021
non-GAAP EPS in the range of $1.50 to $1.60. Please refer to the
tables below for a reconciliation of the projected GAAP to non-GAAP
financial outlook for the first quarter.
The Board of Directors of the Company has approved an extension
of the Company's previously announced share repurchase program
through January 21, 2023. As of the date of this press release,
$1.5 billion remains available under the program for
repurchases.
Conference Call
Waters Corporation will webcast its fourth quarter 2020
financial results conference call today, February 2, 2021 at 8:00
a.m. Eastern Time. To listen to the call, please visit
www.waters.com, select “Investors” under the “About Waters”
section, and click on the “Live Webcast.” A replay will be
available through February 9, 2021 at midnight Eastern Time on the
same website by webcast and also by phone at 800-337-6551.
About Waters Corporation
Waters Corporation (NYSE: WAT), the world's leading specialty
measurement company, has pioneered chromatography, mass
spectrometry and thermal analysis innovations serving the life,
materials and food sciences for more than 60 years. With more than
7,000 employees worldwide, Waters operates directly in 35
countries, including 15 manufacturing facilities, and with products
available in more than 100 countries. For more information, visit
www.waters.com.
Non-GAAP Financial Measures
This press release contains financial measures, such as
constant-currency growth rate, adjusted operating income, adjusted
net income, adjusted earnings per diluted share and adjusted free
cash flow, among others, which are considered “non-GAAP” financial
measures under applicable U.S. Securities and Exchange Commission
rules and regulations. These non-GAAP financial measures should be
considered supplemental to, and not a substitute for, financial
information prepared in accordance with U.S. generally accepted
accounting principles (GAAP). The Company’s definitions of these
non-GAAP measures may differ from similarly titled measures used by
others. The non-GAAP financial measures used in this press release
adjust for specified items that can be highly variable or difficult
to predict. The Company generally uses these non-GAAP financial
measures to facilitate management’s financial and operational
decision-making, including evaluation of the Company’s historical
operating results, comparison to competitors’ operating results and
determination of management incentive compensation. These non-GAAP
financial measures reflect an additional way of viewing aspects of
the Company’s operations that, when viewed with GAAP results and
the reconciliations to corresponding GAAP financial measures, may
provide a more complete understanding of factors and trends
affecting the Company’s business. Because non-GAAP financial
measures exclude the effect of items that will increase or decrease
the Company’s reported results of operations, management strongly
encourages investors to review the Company’s consolidated financial
statements and publicly filed reports in their entirety.
Reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
tables accompanying this release.
Cautionary Statement
This release contains “forward-looking” statements regarding
future results and events. For this purpose, any statements that
are not statements of historical fact may be deemed forward-looking
statements. Without limiting the foregoing, the words “feels”,
“believes”, “anticipates”, “plans”, “expects”, “intends”,
“suggests”, “appears”, “estimates”, “projects” and similar
expressions, whether in the negative or affirmative, are intended
to identify forward-looking statements. The Company’s actual future
results may differ significantly from the results discussed in the
forward-looking statements within this release for a variety of
reasons, including and without limitation, risks related to the
effects of the ongoing COVID-19 pandemic on our business, financial
condition, results of operations and prospects, including: portions
of our global workforce being unable to work fully and/or
effectively due to working remotely, illness, quarantines,
government actions, facility closures or other reasons related to
the pandemic, increased risks of cyber-attacks resulting from our
temporary remote working model, disruptions in our manufacturing
capabilities or to our supply chain, volatility and uncertainty in
global capital markets limiting our ability to access capital,
customers being unable to make timely payments for purchases and
volatility in demand for our products; foreign exchange rate
fluctuations potentially affecting translation of the Company’s
future non-U.S. operating results; the impact on demand for the
Company’s products among the Company’s various market sectors or
geographies from economic, sovereign and political uncertainties,
particularly regarding the effect of new or proposed tariff or
trade regulations or changes in the interpretation or enforcement
of existing regulations; the effect on the Company’s financial
results from the United Kingdom exiting the European Union;
fluctuations in expenditures by the Company’s customers, in
particular large pharmaceutical companies; introduction of
competing products by other companies and loss of market share;
pressures on prices from competitors and/or customers; regulatory,
economic and competitive obstacles to new product introductions;
other changes in demand for the Company’s products from the effect
of mergers and acquisitions by the Company’s customers; increased
regulatory burdens as the Company’s business evolves, especially
with respect to the U.S. Food and Drug Administration and U.S.
Environmental Protection Agency, among others; shifts in taxable
income in jurisdictions with different effective tax rates; the
outcome of tax examinations or changes in respective country
legislation affecting the Company’s effective tax rate; the effect
of the adoption of new accounting standards; the ability to access
capital, maintain liquidity and service the Company’s debt in
volatile market conditions, particularly in the U.S., as a large
portion of the Company’s cash is held and operating cash flows are
generated outside the U.S.; environmental and logistical obstacles
affecting the distribution of products and risks associated with
lawsuits and other legal actions, particularly involving claims for
infringement of patents and other intellectual property rights.
Such factors and others are discussed more fully in the sections
entitled “Forward-Looking Statements” and “Risk Factors” of the
Company’s annual report on Form 10-K for the year ended December
31, 2019, as well as in the sections entitled “Special Note
Regarding Forward-Looking Statements” and “Risk Factors” of the
Company’s quarterly report on Form 10-Q for the quarterly periods
ended March 28, 2020, June 27, 2020 and September 26, 2020, each as
filed with the Securities and Exchange Commission (“SEC”), which
discussions are incorporated by reference in this release, as
updated by the Company’s future filings with the SEC. The
forward-looking statements included in this release represent the
Company’s estimates or views as of the date of this release and
should not be relied upon as representing the Company’s estimates
or views as of any date subsequent to the date of this release.
Except as required by law, the Company does not assume any
obligation to update any forward-looking statements.
Waters Corporation and Subsidiaries Consolidated
Statements of Operations (In thousands, except per share
data) (Unaudited) Three Months
Ended Twelve Months Ended December 31, 2020
December 31, 2019 December 31, 2020 December 31,
2019 Net sales
$
786,658
$
716,294
$
2,365,365
$
2,406,596
Costs and operating expenses: Cost of sales
320,569
299,068
1,006,689
1,010,700
Selling and administrative expenses
153,084
141,208
553,698
534,791
Research and development expenses
39,662
37,072
140,777
142,955
Purchased intangibles amortization
2,687
2,529
10,587
9,693
Asset impairment(1)
6,945
-
6,945
-
Litigation provision
-
-
1,180
-
Operating income
263,711
236,417
645,489
708,457
Other income (expense)
374
(2,223
)
(1,775
)
(3,586
)
Interest expense, net
(6,834
)
(9,806
)
(32,800
)
(26,632
)
Income from operations before income taxes
257,251
224,388
610,914
678,239
Provision for income taxes(2)
38,940
23,719
89,343
86,041
Net income
$
218,311
$
200,669
$
521,571
$
592,198
Net income per basic common share
$
3.51
$
3.15
$
8.40
$
8.76
Weighted-average number of basic common shares
62,170
63,795
62,094
67,627
Net income per diluted common share
$
3.49
$
3.12
$
8.36
$
8.69
Weighted-average number of diluted common shares and
equivalents
62,501
64,348
62,414
68,166
(1) The asset impairment incurred during the three and twelve
months ended December 31, 2020 included a non-cash impairment
charge of $10 million related to certain intangible assets
previously acquired. In conjunction with the intangible asset
impairment charge, the Company also reduced its liability for
contingent consideration of $3 million during the three and twelve
months ended December 31, 2020. The net impact of $7 million is
reported as an asset impairment in the consolidated statements of
operations. (2) The provision for income taxes for the
twelve months ended December 31, 2019 included a $3 million benefit
related to the tax on the change in foreign currency exchange rates
on the earnings taxed in December 31, 2017 under the Tax Cuts and
Jobs Act and the subsequent finalization of the tax regulations
during the first quarter of 2019. The difference is due to the
change from the foreign currency exchange rates required by the
U.S. Department of the Treasury on December 31, 2017 to the foreign
currency exchange rates on either the date of distribution of
assets into the U.S. or the foreign currency exchange rates as of
December 31, 2019.
Waters Corporation and
Subsidiaries
Reconciliation of GAAP to
Adjusted Non-GAAP
Net Sales by Operating
Segment, Products & Services, Geography and Markets
Three Months Ended December
31, 2020 and December 31, 2019
(In thousands)
Current
Period
Constant
Three Months Ended
Percent
Currency
Currency
December 31, 2020 December 31, 2019
Change
Impact
Growth Rate (a)
NET SALES - OPERATING SEGMENT
Waters $
703,738
$
634,306
11%
$
17,249
8%
TA
82,920
81,988
1%
2,156
(1%)
Total $
786,658
$
716,294
10%
$
19,405
7%
NET SALES - PRODUCTS & SERVICES
Instruments $
400,436
$
376,631
6%
$
10,482
4%
Service
254,667
227,446
12%
5,534
10%
Chemistry
131,555
112,217
17%
3,389
14%
Total Recurring
386,222
339,663
14%
8,923
11%
Total $
786,658
$
716,294
10%
$
19,405
7%
NET SALES - GEOGRAPHY
Asia $
295,706
$
261,990
13%
$
1,058
12%
Americas
251,437
245,140
3%
115
3%
Europe
239,515
209,164
15%
18,232
6%
Total $
786,658
$
716,294
10%
$
19,405
7%
NET SALES - MARKETS
Pharmaceutical $
460,384
$
392,391
17%
$
10,808
15%
Industrial
233,180
216,698
8%
6,549
5%
Academic & Governmental
93,094
107,205
(13%)
2,048
(15%)
Total $
786,658
$
716,294
10%
$
19,405
7%
NET SALES - EXCLUDING CHINA
Total Net Sales $
786,658
$
716,294
10%
$
19,405
7%
China Net Sales
151,639
125,013
21%
2,644
19%
Total Net Sales Excluding China $
635,019
$
591,281
7%
$
16,761
5%
___________________________________________ (a) The Company
believes that referring to comparable constant-currency growth
rates is a useful way to evaluate the underlying performance of
Waters Corporation's net sales. Constant-currency growth rate, a
non-GAAP financial measure, measures the change in net sales
between current and prior year periods, ignoring the impact of
foreign currency exchange rates during the current period. See
description of non-GAAP financial measures contained in this
release.
Waters Corporation and
Subsidiaries
Reconciliation of GAAP to
Adjusted Non-GAAP
Net Sales by Operating
Segment, Products & Services, Geography and Markets
Twelve Months Ended December
31, 2020 and December 31, 2019
(In thousands)
Current
Period
Constant
Twelve Months Ended
Percent
Currency
Currency
December 31, 2020 December 31, 2019
Change
Impact
Growth Rate (a)
NET SALES - OPERATING SEGMENT
Waters $
2,117,124
$
2,137,483
(1%)
$
12,248
(2%)
TA
248,241
269,113
(8%)
1,543
(8%)
Total $
2,365,365
$
2,406,596
(2%)
$
13,791
(2%)
NET SALES - PRODUCTS & SERVICES
Instruments $
1,065,253
$
1,155,171
(8%)
$
8,295
(9%)
Service
868,032
839,407
3%
2,618
3%
Chemistry
432,080
412,018
5%
2,878
4%
Total Recurring
1,300,112
1,251,425
4%
5,496
3%
Total $
2,365,365
$
2,406,596
(2%)
$
13,791
(2%)
NET SALES - GEOGRAPHY
Asia $
899,177
$
939,112
(4%)
$
(5,743)
(4%)
Americas
797,842
830,241
(4%)
80
(4%)
Europe
668,346
637,243
5%
19,454
2%
Total $
2,365,365
$
2,406,596
(2%)
$
13,791
(2%)
NET SALES - MARKETS
Pharmaceutical $
1,386,966
$
1,365,275
2%
$
5,871
1%
Industrial
707,772
719,377
(2%)
7,959
(3%)
Academic & Governmental
270,627
321,944
(16%)
(39)
(16%)
Total $
2,365,365
$
2,406,596
(2%)
$
13,791
(2%)
NET SALES - EXCLUDING CHINA
Total Net Sales $
2,365,365
$
2,406,596
(2%)
$
13,791
(2%)
China Net Sales
404,352
439,557
(8%)
747
(8%)
Total Net Sales Excluding China $
1,961,013
$
1,967,039
-
$
13,044
(1%)
___________________________________________ (a) The Company
believes that referring to comparable constant-currency growth
rates is a useful way to evaluate the underlying performance of
Waters Corporation's net sales. Constant-currency growth rate, a
non-GAAP financial measure, measures the change in net sales
between current and prior year periods, ignoring the impact of
foreign currency exchange rates during the current period. See
description of non-GAAP financial measures contained in this
release.
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Financials
Three & Twelve Months Ended December 31, 2020 and December
31, 2019 (In thousands, except per share data)
Income from Operations Selling &
Operating Other before Provision for
Diluted Administrative Operating Income
Income Income Income Net
Earnings Expenses(a) Income Percentage
(Expense) Taxes Taxes Income per
Share Three Months Ended December 31, 2020 GAAP
$
162,716
$
263,711
33.5
%
$
374
$
257,251
$
38,940
$
218,311
$
3.49
Adjustments: Purchased intangibles amortization (b)
(2,687
)
2,687
0.3
%
-
2,687
541
2,146
0.03
Asset Impairment (c)
(6,945
)
6,945
0.9
%
-
6,945
1,180
5,765
0.09
Restructuring costs and certain other items (d)
(2,142
)
2,142
0.3
%
(1,623
)
519
139
380
0.01
Pension expenses (e)
-
-
-
235
235
71
164
-
Certain income tax items (f)
-
-
-
-
-
(1,052
)
1,052
0.02
Adjusted Non-GAAP $
150,942
$
275,485
35.0
%
$
(1,014
)
$
267,637
$
39,819
$
227,818
$
3.65
Three Months Ended December 31, 2019 GAAP
$
143,737
$
236,417
33.0
%
$
(2,223
)
$
224,388
$
23,719
$
200,669
$
3.12
Adjustments: Purchased intangibles amortization (b)
(2,529
)
2,529
0.4
%
-
2,529
512
2,017
0.03
Restructuring costs and certain other items (d)
(1,810
)
1,810
0.3
%
-
1,810
483
1,327
0.02
Pension expenses (e)
-
-
-
1,602
1,602
385
1,217
0.02
Certain income tax items (f)
-
-
-
-
-
(714
)
714
0.01
Adjusted Non-GAAP $
139,398
$
240,756
33.6
%
$
(621
)
$
230,329
$
24,385
$
205,944
$
3.20
Twelve Months Ended December 31, 2020 GAAP
$
572,410
$
645,489
27.3
%
$
(1,775
)
$
610,914
$
89,343
$
521,571
$
8.36
Adjustments: Purchased intangibles amortization (b)
(10,587
)
10,587
0.4
%
-
10,587
2,102
8,485
0.14
Asset Impairment (c)
(6,945
)
6,945
0.3
%
-
6,945
1,180
5,765
0.09
Restructuring costs and certain other items (d)
(35,196
)
35,196
1.5
%
(2,084
)
33,112
7,512
25,600
0.41
Pension expenses (e)
-
-
-
235
235
71
164
-
Litigation settlement (g)
(1,180
)
1,180
-
-
1,180
283
897
0.01
Certain income tax items (f)
-
-
-
-
-
(2,619
)
2,619
0.04
Adjusted Non-GAAP $
518,502
$
699,397
29.6
%
$
(3,624
)
$
662,973
$
97,872
$
565,101
$
9.05
Twelve Months Ended December 31, 2019 GAAP
$
544,484
$
708,457
29.4
%
$
(3,586
)
$
678,239
$
86,041
$
592,198
$
8.69
Adjustments: Purchased intangibles amortization (b)
(9,693
)
9,693
0.4
%
-
9,693
2,032
7,661
0.11
Restructuring costs and certain other items (d)
(16,192
)
16,192
0.7
%
-
16,192
4,106
12,086
0.18
Pension expenses (e)
-
-
-
1,602
1,602
385
1,217
0.02
Tax reform (h)
-
-
-
-
-
3,229
(3,229
)
(0.05
)
Certain income tax items (f)
-
-
-
-
-
(2,622
)
2,622
0.04
Adjusted Non-GAAP $
518,599
$
734,342
30.5
%
$
(1,984
)
$
705,726
$
93,171
$
612,555
$
8.99
___________________________________________ (a) Selling &
administrative expenses include purchased intangibles amortization,
litigation provisions and settlements and asset impairments. (b)
The purchased intangibles amortization, a non-cash expense, was
excluded to be consistent with how management evaluates the
performance of its core business against historical operating
results and the operating results of competitors over periods of
time. (c) The asset impairment, a non-cash expense, is a one-time
charge related to the write-off of certain intangible assets and a
contingent consideration liability that were both associated with a
previous acquisition. The asset impairment was excluded as the
Company does not believe these expenses are indicative of normal
operating costs. (d) Restructuring costs, mergers and acquisition
costs and certain other items were excluded as the Company believes
that the cost to consolidate operations, reduce overhead, acquire
companies and certain other income or expense items are not normal
and do not represent future ongoing business expenses of a specific
function or geographic location of the Company. (e) The pension
settlement and curtailment expenses associated with certain defined
benefit pension plans were excluded as the Company believes these
expenses are not indicative of normal operating costs. (f) Certain
income tax items were excluded as these non-cash expenses and
benefits represent updates in management's assessment of ongoing
examinations or other tax items that are not indicative of the
Company’s normal or future income tax expense. (g) Litigation
provisions and settlement gains were excluded as these items are
isolated, unpredictable and not expected to recur regularly. (h)
The provision for income taxes for the twelve months ended December
31, 2019 included a $3 million benefit related to the tax on the
change in foreign currency exchange rates on the earnings taxed in
December 31, 2017 under the Tax Cuts and Jobs Act and the
subsequent finalization of the tax regulations during the first
quarter of 2019. The difference is due to the change from the
foreign currency exchange rates required by the U.S. Department of
the Treasury on December 31, 2017 to the foreign currency exchange
rates on either the date of distribution of assets into the U.S. or
the foreign currency exchange rates as of December 31, 2019.
Waters Corporation and Subsidiaries Preliminary Condensed
Unclassified Consolidated Balance Sheets (In thousands and
unaudited) December 31, 2020
December 31, 2019 Cash, cash equivalents and
investments
$
443,146
$
337,144
Accounts receivable
573,316
587,734
Inventories
304,281
320,551
Property, plant and equipment, net
494,003
417,342
Intangible assets, net
258,645
240,203
Goodwill
444,362
356,128
Other assets
322,167
297,953
Total assets
$
2,839,920
$
2,557,055
Notes payable and debt
$
1,356,515
$
1,681,163
Other liabilities
1,251,261
1,092,173
Total liabilities
2,607,776
2,773,336
Total stockholders' equity (deficit)
232,144
(216,281
)
Total liabilities and stockholders' equity (deficit)
$
2,839,920
$
2,557,055
Waters Corporation and Subsidiaries Preliminary Condensed
Consolidated Statements of Cash Flows Three and Twelve
Months Ended December 31, 2020 and December 31, 2019 (In
thousands and unaudited) Three Months Ended
Twelve Months Ended December 31, 2020 December 31,
2019 December 31, 2020 December 31, 2019
Cash flows from operating activities: Net income
$
218,311
$
200,669
$
521,571
$
592,198
Adjustments to reconcile net income to net cash provided by
operating activities: Stock-based compensation
9,150
9,660
36,865
38,577
Depreciation and amortization
44,260
24,977
135,351
105,296
Change in operating assets and liabilities, net
(4,239
)
(43,411
)
96,720
(92,984
)
Net cash provided by operating activities
267,482
191,895
790,507
643,087
Cash flows from investing activities: Additions to property,
plant, equipment and software capitalization
(47,044
)
(53,618
)
(172,384
)
(163,823
)
Business acquisitions, net of cash acquired
(3,881
)
-
(80,545
)
-
Investment in unaffiliated companies
(2,293
)
(1,593
)
(6,143
)
(8,843
)
Net change in investments
15,685
(1,428
)
(5,022
)
941,468
Net cash (used in) provided by investing activities
(37,533
)
(56,639
)
(264,094
)
768,802
Cash flows from financing activities: Net change in debt
(215,000
)
325,308
(325,366
)
532,256
Proceeds from stock plans
37,612
19,404
66,033
53,715
Purchases of treasury shares
(56
)
(559,558
)
(196,409
)
(2,469,258
)
Other cash flow from financing activities, net
4,910
3,709
15,240
10,609
Net cash used in financing activities
(172,534
)
(211,137
)
(440,502
)
(1,872,678
)
Effect of exchange rate changes on cash and cash equivalents
4,346
6,947
15,069
224
Increase (decrease) in cash and cash equivalents
61,761
(68,934
)
100,980
(460,565
)
Cash and cash equivalents at beginning of period
374,934
404,649
335,715
796,280
Cash and cash equivalents at end of period
$
436,695
$
335,715
$
436,695
$
335,715
Reconciliation of GAAP Cash Flows from Operating
Activities to Free Cash Flow (a) Net cash
provided by operating activities - GAAP
$
267,482
$
191,895
$
790,507
$
643,087
Adjustments: Additions to property, plant, equipment and
software capitalization
(47,044
)
(53,618
)
(172,384
)
(163,823
)
Tax reform payments
-
-
38,454
29,109
Major facility renovations
19,486
19,276
69,806
67,624
Free Cash Flow - Adjusted Non-GAAP
$
239,924
$
157,553
$
726,383
$
575,997
(a) The Company defines free cash flow as net cash flow from
operations accounted for under GAAP less capital expenditures and
software capitalizations plus or minus any unusual and non
recurring items. Free cash flow is not a GAAP measurement and may
not be comparable to free cash flow reported by other companies.
Waters Corporation and Subsidiaries Reconciliation of
Projected GAAP to Adjusted Non-GAAP Financial Outlook
Three Months Ended Twelve Months Ended
April 3, 2021 December 31, 2021
Range
Range
Projected Sales
Projected constant-currency sales growth rate (a)
7
%
-
10
%
5
%
-
8
%
Projected currency impact
3
%
-
3
%
1
%
-
2
%
Projected sales growth rate as reported
10
%
-
13
%
6
%
-
10
%
Projected Earnings Per Diluted Share
Range
Range
Projected GAAP earnings per diluted share
$
1.45
-
$
1.55
$
9.12
-
$
9.37
Adjustments:
Purchased intangibles amortization
$
0.04
-
$
0.04
$
0.16
-
$
0.16
Certain income tax items
$
0.01
-
$
0.01
$
0.04
-
$
0.04
Projected adjusted non-GAAP earnings per diluted share
$
1.50
-
$
1.60
$
9.32
-
$
9.57
(a) Constant-currency growth rates are a non-GAAP financial measure
that measures the change in net sales between current and prior
year periods, ignoring the impact of foreign currency exchange
rates during the current period. These amounts are estimated at the
current foreign currency exchange rates and based on the forecasted
geographical sales in local currency, as well as an assessment of
market conditions as of today, and may differ significantly from
actual results. These forward-looking adjustment estimates
do not reflect future gains and charges that are inherently
difficult to predict and estimate due to their unknown timing,
effect and/or significance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210202005216/en/
Bryan Brokmeier, CFA, Senior Director, Investor Relations,
508-482-3448
Waters (NYSE:WAT)
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