Highlights
- Sales of $714 million grew 5% as reported and 10% in constant
currency
- Continued strong momentum as instrument sales grew 12% in
constant currency, with double-digit growth across LC, MS and TA
product lines
- Broad-based performance across all end-markets and major
geographies, led by mid-teens growth in the U.S. and 9% constant
currency growth in China
- Recurring revenues grew high-single-digits as strong commercial
execution continued
- GAAP EPS of $2.72; non-GAAP EPS of $2.75, a 6% increase from
prior year
Waters Corporation (NYSE: WAT) today announced its financial
results for the second quarter of 2022.
“Our team’s strong focus on execution continued to deliver
excellent results, despite the challenging macroeconomic
environment, with instrument sales growing 12% and recurring
revenues growing 8% in constant currency in the second quarter. The
sustained commercial momentum and broad-based growth in each of our
regions reflects continued strong customer demand across the
attractive growth markets that we serve,” said Dr. Udit Batra,
President and Chief Executive Officer of Waters Corporation.
Dr. Batra continued, “Our rejuvenated portfolio continues to
capture growth opportunities in both large and small molecule
applications, with ArcTM HPLC, ACQUITYTM Premier, and MaxPeakTM
Premier columns again providing a strong contribution to growth in
the quarter. Meanwhile, we are increasingly well-positioned to
support the workflows of more complex molecules as they move
downstream through process development and into high volume
applications. With the recent release of the XevoTM G3 Q-TOF and
new applications on waters_connectTM, we are continuously adding
new capabilities to enhance the characterization and quantitation
of biologics and novel modalities.”
Second Quarter 2022
Sales for the second quarter of 2022 were $714 million, an
increase of 5% as reported and 10% in constant currency, compared
to sales of $682 million for the second quarter of 2021.
On a GAAP basis, diluted earnings per share (EPS) for the second
quarter of 2022 was $2.72, compared to $2.69 for the second quarter
of 2021. On a non-GAAP basis, EPS increased by 6% to $2.75,
compared to $2.60 for the second quarter of 2021. This includes a
headwind of approximately 11% due to unfavorable foreign currency
translation.
During the second quarter of 2022, sales into the pharmaceutical
market increased 5% as reported and 10% in constant currency, sales
into the industrial market increased 3% as reported and 8% in
constant currency and sales into the academic and government
markets increased 10% as reported and 16% in constant currency.
During the quarter, instrument system sales increased 7% as
reported and 12% in constant currency, while recurring revenues,
which represent the combination of service and precision
chemistries, increased 3% as reported and 8% in constant
currency.
Geographically, sales in Asia during the quarter increased 3% as
reported and 9% in constant currency (with China sales growing 9%),
sales in the Americas increased 14% as reported and 15% in constant
currency (with U.S. sales growing 14%) and sales in Europe
decreased 4% as reported and increased 7% in constant currency.
First Half 2022
Sales for the first half of 2022 were $1,405 million, an
increase of 9% as reported and 13% in constant currency, compared
to sales of $1,290 million for the first half of 2021.
On a GAAP basis, EPS for the first half of 2022 increased to
$5.35, compared to $5.05 for the first half of 2021. On a non-GAAP
basis, EPS increased by 13% to $5.55, compared to $4.89 in the
first half of 2021.
For the first half of 2022, sales into the pharmaceutical market
increased 10% as reported and 14% in constant currency, sales into
the industrial market increased 8% as reported and 12% in constant
currency and sales into the academic and government markets
increased 5% as reported and 10% in constant currency.
For the first half of 2022, instrument system sales increased
15% as reported and 19% in constant currency, while recurring
revenues increased 4% as reported and 9% in constant currency.
Geographically, sales in Asia for the first half of 2022
increased 7% as reported and 11% in constant currency (with China
sales growing 13%), sales in the Americas increased 20% (with U.S.
sales growing 21%) and sales in Europe decreased 1% as reported and
increased 8% in constant currency.
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.
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.
Full-Year and Third Quarter 2022 Financial Guidance
The Company is raising its full-year 2022 guidance, and now
expects constant currency sales growth in the range of 9.5% to
10.5%. Currency translation is expected to decrease full-year sales
growth by approximately five percentage points. The Company is
reaffirming the mid-point of its full-year 2022 non-GAAP EPS
guidance with an updated range of $11.95 to $12.05, which includes
an estimated headwind of approximately 9% due to unfavorable
foreign currency translation. 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 third quarter 2022 constant currency sales
growth in the range of 8% to 10%. Currency translation is expected
to decrease third quarter sales growth by approximately six
percentage points. The Company expects third quarter 2022 non-GAAP
EPS in the range of $2.50 to $2.60, which includes an estimated
headwind of approximately 10% due to unfavorable foreign currency
translation. Please refer to the tables below for a reconciliation
of the projected GAAP to non-GAAP financial outlook for the third
quarter.
Conference Call
Waters Corporation will webcast its second quarter 2022
financial results conference call today, August 2, 2022 at 8:00
a.m. Eastern Time. To listen to the call and see the accompanying
slide presentation, please visit www.waters.com, select “Investors”
under the “About Waters” section, navigate to “Events &
Presentations,” and click on the “Webcast.” A replay will be
available through at least August 16, 2022 at midnight Eastern Time
on the same website by webcast and also by phone at (800)
685-6061.
About Waters Corporation
Waters Corporation (NYSE: WAT), a global leader in analytical
instruments and software, has pioneered chromatography, mass
spectrometry and thermal analysis innovations serving the life,
materials and food sciences for more than 60 years. With more than
7,800 employees worldwide, Waters operates directly in 35
countries, including 14 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 and distribution network,
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, including delays or
disruptions to our distribution network, 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, including any
potential impact on the Company’s operations stemming from
sustained inflation, 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; and
the impact and costs of war, in particular as a result of the
ongoing conflict between Russia and Ukraine, and the possibility of
further escalation resulting in a new geopolitical and regulatory
instability. 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, 2021, 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 period ended April 2, 2022, 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.
Arc, ACQUITY, MaxPeak, Xevo, and waters_connect are trademarks
of Waters Corporation.
Waters Corporation and Subsidiaries Consolidated
Statements of Operations (In thousands, except per share
data) (Unaudited) Three Months
Ended Six Months Ended July 2, 2022 July 3,
2021 July 2, 2022 July 3, 2021 Net sales
$
714,319
$
681,647
$
1,404,891
$
1,290,192
Costs and operating expenses: Cost of sales
307,206
280,254
592,891
534,401
Selling and administrative expenses
161,877
158,213
319,352
301,409
Research and development expenses
44,006
44,949
84,478
83,041
Purchased intangibles amortization
1,598
1,809
3,271
3,649
Acquired in-process research and development
-
-
9,797
-
Operating income
199,632
196,422
395,102
367,692
Other income, net (a)
1,535
9,321
1,705
18,680
Interest expense, net
(8,893
)
(8,329
)
(17,838
)
(15,174
)
Income from operations before income taxes
192,274
197,414
378,969
371,198
Provision for income taxes
27,410
30,122
54,274
55,779
Net income
$
164,864
$
167,292
$
324,695
$
315,419
Net income per basic common share
$
2.74
$
2.71
$
5.38
$
5.09
Weighted-average number of basic common shares
60,206
61,685
60,399
61,979
Net income per diluted common share
$
2.72
$
2.69
$
5.35
$
5.05
Weighted-average number of diluted common shares and
equivalents
60,510
62,157
60,744
62,435
(a) During the three and six months ended
July 3, 2021, the Company executed a settlement agreement to
resolve patent infringement litigation with Bruker Corporation and
Bruker Daltronik GmbH regarding their timsTOF product line. In
connection with the settlement, the Company is entitled to receive
$10 million in guaranteed payments, including minimum royalty
payments, which was recognized within Other income, net in our
consolidated statement of operations. During the six months ended
July 3, 2021, the Company recorded an unrealized gain of $10
million due to an observable change in the fair value of an
existing investment the Company does not have the ability to
exercise significant influence over.
Waters Corporation and Subsidiaries Reconciliation
of GAAP to Adjusted Non-GAAP Net Sales by Operating
Segments, Products & Services, Geography and Markets
Three Months Ended July 2, 2022 and July 3, 2021 (In
thousands) Current Period Constant
Three Months Ended Percent Currency
Currency July 2, 2022 July 3, 2021
Change Impact Growth Rate (a) NET SALES
- OPERATING SEGMENTS Waters $
635,152
$
607,324
5
%
$
(32,871
)
10
%
TA
79,167
74,323
7
%
(3,750
)
12
%
Total $
714,319
$
681,647
5
%
$
(36,621
)
10
%
NET SALES - PRODUCTS & SERVICES
Instruments $
337,683
$
314,496
7
%
$
(15,681
)
12
%
Service
244,689
240,692
2
%
(14,640
)
8
%
Chemistry
131,947
126,459
4
%
(6,300
)
9
%
Total Recurring
376,636
367,151
3
%
(20,940
)
8
%
Total $
714,319
$
681,647
5
%
$
(36,621
)
10
%
NET SALES - GEOGRAPHY Asia $
278,010
$
269,947
3
%
$
(15,887
)
9
%
Americas
257,271
224,894
14
%
(418
)
15
%
Europe
179,038
186,806
(4
%)
(20,316
)
7
%
Total $
714,319
$
681,647
5
%
$
(36,621
)
10
%
NET SALES - MARKETS Pharmaceutical $
437,171
$
416,705
5
%
$
(22,114
)
10
%
Industrial
208,517
202,579
3
%
(10,793
)
8
%
Academic & Government
68,631
62,363
10
%
(3,714
)
16
%
Total $
714,319
$
681,647
5
%
$
(36,621
)
10
%
NET SALES - EXCLUDING CHINA Total Net Sales $
714,319
$
681,647
5
%
$
(36,621
)
10
%
China Net Sales
138,740
127,225
9
%
(508
)
9
%
Total Net Sales Excluding China $
575,579
$
554,422
4
%
$
(36,113
)
10
%
(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 Segments, Products &
Services, Geography and Markets Six Months Ended July 2,
2022 and July 3, 2021 (In thousands) Current
Period Constant Six Months Ended
Percent Currency Currency July 2, 2022
July 3, 2021 Change Impact Growth Rate
(a) NET SALES - OPERATING SEGMENTS Waters $
1,248,308
$
1,149,202
9
%
$
(48,727
)
13
%
TA
156,583
140,990
11
%
(5,331
)
15
%
Total $
1,404,891
$
1,290,192
9
%
$
(54,058
)
13
%
NET SALES - PRODUCTS & SERVICES
Instruments $
662,905
$
577,544
15
%
$
(21,969
)
19
%
Service
484,421
467,215
4
%
(22,803
)
9
%
Chemistry
257,565
245,433
5
%
(9,286
)
9
%
Total Recurring
741,986
712,648
4
%
(32,089
)
9
%
Total $
1,404,891
$
1,290,192
9
%
$
(54,058
)
13
%
NET SALES - GEOGRAPHY Asia $
532,344
$
499,489
7
%
$
(23,458
)
11
%
Americas
506,108
422,251
20
%
(419
)
20
%
Europe
366,439
368,452
(1
%)
(30,181
)
8
%
Total $
1,404,891
$
1,290,192
9
%
$
(54,058
)
13
%
NET SALES - MARKETS Pharmaceutical $
852,943
$
776,853
10
%
$
(33,272
)
14
%
Industrial
417,914
385,852
8
%
(14,946
)
12
%
Academic & Government
134,034
127,487
5
%
(5,840
)
10
%
Total $
1,404,891
$
1,290,192
9
%
$
(54,058
)
13
%
NET SALES - EXCLUDING CHINA Total Net Sales $
1,404,891
$
1,290,192
9
%
$
(54,058
)
13
%
China Net Sales
259,772
230,144
13
%
342
13
%
Total Net Sales Excluding China $
1,145,119
$
1,060,048
8
%
$
(54,400
)
13
%
(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 and Six Months Ended July 2, 2022 and July
3, 2021 (In thousands, except per share data)
Acquired Income from IPR&D and
Operations Selling & Research &
Operating Other before Provision for
Diluted Administrative Development
Operating Income Income Income
Income Net Earnings Expenses(a)
Expenses Income Percentage (Expense)
Taxes Taxes Income per Share Three
Months Ended July 2, 2022 GAAP $
163,475
$
44,006
$
199,632
27.9
%
$
1,535
$
192,274
$
27,410
$
164,864
$
2.72
Adjustments: Purchased intangibles amortization (b)
(1,598
)
-
1,598
0.2
%
-
1,598
366
1,232
0.02
Restructuring costs and certain other items (d)
(1,830
)
-
1,830
0.3
%
(1,818
)
12
(5
)
17
-
Certain income tax items (f)
-
-
-
-
-
-
(506
)
506
0.01
Adjusted Non-GAAP $
160,047
$
44,006
$
203,060
28.4
%
$
(283
)
$
193,884
$
27,265
$
166,619
$
2.75
Three Months Ended July 3, 2021 GAAP $
160,022
$
44,949
$
196,422
28.8
%
$
9,321
$
197,414
$
30,122
$
167,292
$
2.69
Adjustments: Purchased intangibles amortization (b)
(1,809
)
-
1,809
0.3
%
-
1,809
411
1,398
0.02
Restructuring costs and certain other items (d)
(614
)
-
614
0.1
%
-
614
44
570
0.01
Litigation settlement (e)
-
-
-
-
(10,083
)
(10,083
)
(1,916
)
(8,167
)
(0.13
)
Certain income tax items (f)
-
-
-
-
-
-
(594
)
594
0.01
Adjusted Non-GAAP $
157,599
$
44,949
$
198,845
29.2
%
$
(762
)
$
189,754
$
28,067
$
161,687
$
2.60
Six Months Ended July 2, 2022 GAAP $
322,623
$
94,275
$
395,102
28.1
%
$
1,705
$
378,969
$
54,274
$
324,695
$
5.35
Adjustments: Purchased intangibles amortization (b)
(3,271
)
-
3,271
0.2
%
-
3,271
749
2,522
0.04
Acquired in-process research and development (c)
-
(9,797
)
9,797
0.7
%
-
9,797
2,351
7,446
0.12
Restructuring costs and certain other items (d)
(4,205
)
-
4,205
0.3
%
(2,234
)
1,971
456
1,515
0.02
Certain income tax items (f)
-
-
-
-
-
-
(994
)
994
0.02
Adjusted Non-GAAP $
315,147
$
84,478
$
412,375
29.4
%
$
(529
)
$
394,008
$
56,836
$
337,172
$
5.55
Six Months Ended July 3, 2021 GAAP $
305,058
$
83,041
$
367,692
28.5
%
$
18,680
$
371,198
$
55,779
$
315,419
$
5.05
Adjustments: Purchased intangibles amortization (b)
(3,649
)
-
3,649
0.3
%
-
3,649
825
2,824
0.05
Restructuring costs and certain other items (d)
(1,484
)
-
1,484
0.1
%
(9,707
)
(8,223
)
(2,076
)
(6,147
)
(0.10
)
Litigation settlement (e)
-
-
-
-
(10,083
)
(10,083
)
(1,916
)
(8,167
)
(0.13
)
Certain income tax items (f)
-
-
-
-
-
-
(1,144
)
1,144
0.02
Adjusted Non-GAAP $
299,925
$
83,041
$
372,825
28.9
%
$
(1,110
)
$
356,541
$
51,468
$
305,073
$
4.89
(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) Acquired in-process research and development
was excluded as it relates to the cost of a licensing arrangement
for charge detection mass spectrometry that the Company believes is
unusual and not indicative of its normal business operations. (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) Litigation settlement
gains and provisions were excluded as these items are isolated,
unpredictable and not expected to recur regularly. (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.
Waters
Corporation and Subsidiaries Preliminary Condensed
Unclassified Consolidated Balance Sheets (In thousands and
unaudited) July 2, 2022 December
31, 2021 Cash, cash equivalents and investments
$
419,794
$
569,285
Accounts receivable
639,451
612,648
Inventories
409,922
356,095
Property, plant and equipment, net
545,813
547,913
Intangible assets, net
225,101
242,401
Goodwill
428,005
437,865
Other assets
372,484
328,725
Total assets
$
3,040,570
$
3,094,932
Notes payable and debt
$
1,484,374
$
1,513,870
Other liabilities
1,164,072
1,213,508
Total liabilities
2,648,446
2,727,378
Total stockholders' equity
392,124
367,554
Total liabilities and stockholders' equity
$
3,040,570
$
3,094,932
Waters Corporation and Subsidiaries Preliminary Condensed
Consolidated Statements of Cash Flows Three and Six Months
Ended July 2, 2022 and July 3, 2021 (In thousands and
unaudited) Three Months Ended Six Months
Ended July 2, 2022 July 3, 2021 July 2,
2022 July 3, 2021 Cash flows from operating
activities: Net income
$
164,864
$
167,292
$
324,695
$
315,419
Adjustments to reconcile net income to net cash provided by
operating activities: Stock-based compensation
9,789
7,291
20,722
15,596
Depreciation and amortization
34,227
33,387
66,891
64,743
Change in operating assets and liabilities and other, net
(151,902
)
(64,930
)
(157,370
)
(34,314
)
Net cash provided by operating activities
56,978
143,040
254,938
361,444
Cash flows from investing activities: Additions to property,
plant, equipment and software capitalization
(39,269
)
(37,386
)
(67,020
)
(76,889
)
(Investments in) proceeds from equity investments, net
(1,139
)
-
5,646
-
Payments for intellectual property licenses
-
(7,000
)
(4,897
)
(7,000
)
Net change in investments
21,739
(77,716
)
66,594
(197,217
)
Net cash (used in) provided by investing activities
(18,669
)
(122,102
)
323
(281,106
)
Cash flows from financing activities: Net change in debt
40,000
(100,000
)
(30,000
)
246,363
Proceeds from stock plans
18,082
28,741
30,914
45,036
Purchases of treasury shares
(151,808
)
(168,202
)
(321,944
)
(341,507
)
Other cash flow from financing activities, net
10,956
2,495
10,849
1,917
Net cash used in financing activities
(82,770
)
(236,966
)
(310,181
)
(48,191
)
Effect of exchange rate changes on cash and cash equivalents
(16,712
)
(7,699
)
(27,417
)
(8,786
)
(Decrease) increase in cash and cash equivalents
(61,173
)
(223,727
)
(82,337
)
23,361
Cash and cash equivalents at beginning of period
480,070
683,783
501,234
436,695
Cash and cash equivalents at end of period
$
418,897
$
460,056
$
418,897
$
460,056
Reconciliation of GAAP Cash Flows from Operating
Activities to Free Cash Flow (a) Net cash
provided by operating activities - GAAP
$
56,978
$
143,040
$
254,938
$
361,444
Adjustments: Additions to property, plant, equipment and
software capitalization
(39,269
)
(37,386
)
(67,020
)
(76,889
)
Tax reform payments
38,454
38,454
38,454
38,454
Litigation settlements received
-
(3,367
)
(584
)
(3,367
)
Major facility renovations
11,112
13,795
17,039
28,285
Free Cash Flow - Adjusted Non-GAAP
$
67,275
$
154,536
$
242,827
$
347,927
(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
October 1, 2022 December 31, 2022 Range
Range Projected Sales Projected constant
currency sales growth rate (a)
8.0
%
-
10.0
%
9.5
%
-
10.5
%
Projected currency impact
(6.0
%)
-
(6.0
%)
(5.0
%)
-
(5.0
%)
Projected sales growth rate as reported
2.0
%
-
4.0
%
4.5
%
-
5.5
%
Projected Earnings Per Diluted Share
Range Range Projected GAAP earnings per
diluted share
$
2.48
-
$
2.58
$
11.71
-
$
11.81
Adjustments:
Purchased intangibles amortization
$
0.02
-
$
0.02
$
0.08
-
$
0.08
Acquired in-process research and development
$
-
$
-
$
0.12
$
0.12
Restructuring costs and certain other items
$
-
-
$
-
$
0.02
-
$
0.02
Certain income tax items
$
-
-
$
-
$
0.02
-
$
0.02
Projected adjusted non-GAAP earnings per diluted share
$
2.50
-
$
2.60
$
11.95
-
$
12.05
(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/20220801005573/en/
Caspar Tudor, Head of Investor Relations – (508) 482-2429
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