- Sales of $599 million were flat as reported and grew 2% in
constant currency
- Strong pharmaceutical growth, partially offset by softness in
industrial
- Strength in U.S. and improvement in China, partially offset by
other areas
- GAAP EPS of $2.08; non-GAAP EPS of $2.14, a 10% increase from
prior year
Waters Corporation (NYSE: WAT) today announced second quarter
2019 sales of $599 million, which were flat as reported, compared
to sales of $596 million for the second quarter of 2018. Foreign
currency translation negatively impacted sales growth by
approximately 2% for the quarter.
On a GAAP basis, diluted earnings per share (EPS) for the second
quarter of 2019 increased to $2.08, compared to $1.98 for the
second quarter of 2018. On a non-GAAP basis, EPS increased to
$2.14, compared to $1.95 for the second quarter of 2018. A
description and reconciliation of GAAP to non-GAAP results appear
in the tables below and can be found on the Company’s website at
http://www.waters.com under the caption “Investors.”
On a GAAP basis, net cash provided by operating activities was
$127 million for the second quarter of 2019, compared to $101
million for the second quarter of 2018. On a non-GAAP basis,
adjusted free cash flow for the second quarter of 2019 was $136
million versus $144 million for the second quarter of 2018.
For the first half of 2019, the Company’s sales were $1,113
million, a decrease of 1% as reported, compared to sales of $1,127
million for the first half of 2018. Foreign currency translation
negatively impacted sales growth by approximately 2% for the first
half of 2019.
On a GAAP basis, diluted EPS for the first half of 2019
increased to $3.57, compared to $3.39 for the first half of 2018.
On a non-GAAP basis, EPS increased to $3.73, compared to $3.54 in
the first half of 2018.
On a GAAP basis, net cash provided by operating activities was
$303 million for the first half of 2019, compared to $277 million
for the first half of 2018. On a non-GAAP basis, adjusted free cash
flow for the first half of 2019 was $294 million versus $304
million for the first half of 2018.
“While sales in the quarter came in at the low end of our
guidance range and there is more work to be done, we experienced
improvements in key areas of our business, including
high-single-digit growth in the U.S., growth in China, and
pharmaceutical strength across all geographies,” commented Chris
O’Connell, Chairman and Chief Executive Officer of Waters
Corporation. “The progress we made in the second quarter is
encouraging, and we remain focused on improving our performance in
the back half of the year. Stabilizing end markets, as well as our
accelerating cadence of new product introductions, provide us with
confidence that we will be able to achieve continued improvement
over the course of the year.”
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 second quarter of 2019, sales into the pharmaceutical
market increased 3% as reported and 6% in constant currency, sales
into the industrial market declined 4% as reported and 3% in
constant currency, and sales into the academic and governmental
markets declined 2% as reported and were flat in constant currency.
For the first half of 2019, sales into the pharmaceutical market
were flat as reported and grew 3% in constant currency, sales into
the industrial market declined 4% as reported and 3% in constant
currency, and sales into the academic and governmental markets were
flat as reported and grew 2% in constant currency.
During the second quarter, recurring revenues, which represent
the combination of service and precision chemistries revenues, grew
2% as reported and 4% in constant currency, while instrument system
sales declined 1% as reported and were flat in constant currency.
For the first half of 2019, recurring revenues grew 1% as reported
and 4% in constant currency, while instrument system sales declined
4% as reported and 2% in constant currency.
Geographically, sales in Asia during the quarter grew 1% as
reported and 3% in constant currency, sales in the Americas grew 4%
as reported and 5% in constant currency (with U.S. sales growing
8%), and sales in Europe declined 5% as reported and 2% in constant
currency. For the first half of 2019, sales in Asia were flat as
reported and increased 3% in constant currency, sales in the
Americas grew 2% as reported and 3% in constant currency (with U.S.
sales growing 5%), and sales in Europe declined 8% as reported and
3% in constant currency.
Third Quarter and Fiscal Year 2019 Financial Outlook
The Company expects third quarter 2019 constant-currency sales
growth in the range of 2% to 4%. As of today, currency translation
is expected to decrease third quarter sales growth by approximately
one percentage point. The Company also expects third quarter 2019
non-GAAP earnings per fully diluted share in the range of $2.05 to
$2.15. Please refer to the tables below for a reconciliation of the
projected GAAP to non-GAAP financial outlook for the third
quarter.
In addition, the Company is updating its previously issued
full-year guidance, and currently expects full-year 2019
constant-currency sales growth in the range of 1% to 3%, compared
to the prior range of 2% to 4%. As of today, currency translation
is expected to decrease full-year sales growth by approximately one
to two percentage points. The Company also expects full-year 2019
non-GAAP earnings per fully diluted share in the range of $8.95 to
$9.10, compared to our prior range of $9.05 to $9.25. Please refer
to the tables below for a reconciliation of the projected GAAP to
non-GAAP financial outlook for the full year.
Conference Call
Waters Corporation will webcast its second quarter 2019
financial results conference call today, July 30, 2019 at 8:00 a.m.
Eastern Time. To listen to the call, please visit www.waters.com,
choose “Investors,” and click on the “Live Webcast.” A replay will
be available through August 6, 2019 at midnight Eastern Time on the
same website by webcast and also by phone at 402-998-0587.
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
approximately 7,200 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 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 generally accepted accounting
principles (GAAP). The Company’s definition 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 Waters Corporation’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 Waters Corporation’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 may contain “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, 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 voting to exit 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; impact of the newly
enacted tax reform legislation in the U.S.; 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/A for the year ended December
31, 2018 as filed with the Securities and Exchange Commission,
which “Forward-Looking Statements” and “Risk Factors” discussions
are incorporated by reference in this release. 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.
Waters Corporation and Subsidiaries Consolidated
Statements of Operations (In thousands, except per share
data) (Unaudited) Three Months
Ended Six Months Ended June 29, 2019 June 30,
2018 June 29, 2019 June 30, 2018 Net sales
$
599,162
$
596,219
$
1,113,024
$
1,126,889
Costs and operating expenses: Cost of sales
249,546
243,135
470,577
464,556
Selling and administrative expenses
133,208
136,645
267,547
267,052
Research and development expenses
36,490
35,644
71,550
70,124
Purchased intangibles amortization
2,264
1,602
4,545
3,261
Litigation settlement
-
-
-
(1,672
)
Operating income
177,654
179,193
298,805
323,568
Other expense
(342
)
(1,828
)
(867
)
(1,482
)
Interest expense, net
(5,577
)
(2,804
)
(8,825
)
(6,976
)
Income from operations before income taxes
171,735
174,561
289,113
315,110
Provision for income taxes(a)
27,325
18,884
35,717
47,482
Net income
$
144,410
$
155,677
$
253,396
$
267,628
Net income per basic common share
$
2.09
$
2.00
$
3.60
$
3.42
Weighted-average number of basic common shares
68,989
77,833
70,331
78,330
Net income per diluted common share
$
2.08
$
1.98
$
3.57
$
3.39
Weighted-average number of diluted common shares and
equivalents
69,494
78,438
70,904
79,041
(a) The provision for income taxes for the six months ended June
29, 2019 included a $3 million benefit related to the finalization
of tax regulations under tax reform during the first quarter of
2019. The provision for income taxes for the three and six months
June 30, 2018 included a $9 million benefit and a $4 million
expense, respectively, 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. 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
June 29, 2019 and June 30, 2018, respectively.
Waters Corporation and Subsidiaries Reconciliation
of GAAP to Adjusted Non-GAAP Net Sales by Operating Segment,
Products & Services, Geography and Markets Three Months
Ended June 29, 2019 and June 30, 2018 (In thousands)
Current Period Constant Three Months
Ended Percent Currency Currency June
29, 2019 June 30, 2018 Change Impact
Growth Rate (a) NET SALES - OPERATING SEGMENT
Waters
$
531,117
$
527,305
1
%
$
(9,645
)
3
%
TA
68,045
68,914
(1
%)
(759
)
0
%
Total
$
599,162
$
596,219
0
%
$
(10,404
)
2
%
NET SALES - PRODUCTS & SERVICES
Instruments
$
286,973
$
289,740
(1
%)
$
(2,954
)
0
%
Service
211,897
207,350
2
%
(4,990
)
5
%
Chemistry
100,292
99,129
1
%
(2,460
)
4
%
Total Recurring
312,189
306,479
2
%
(7,450
)
4
%
Total
$
599,162
$
596,219
0
%
$
(10,404
)
2
%
NET SALES - GEOGRAPHY Asia
$
238,835
$
236,905
1
%
$
(5,000
)
3
%
Americas
206,775
198,126
4
%
(370
)
5
%
Europe
153,552
161,188
(5
%)
(5,034
)
(2
%)
Total
$
599,162
$
596,219
0
%
$
(10,404
)
2
%
NET SALES - MARKETS Pharmaceutical
$
350,145
$
338,354
3
%
$
(7,542
)
6
%
Industrial
176,109
183,664
(4
%)
(1,414
)
(3
%)
Academic & Governmental
72,908
74,201
(2
%)
(1,448
)
0
%
Total
$
599,162
$
596,219
0
%
$
(10,404
)
2
%
(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 Six Months
Ended June 29, 2019 and June 30, 2018 (In thousands)
Current Period Constant Six Months
Ended Percent Currency Currency June
29, 2019 June 30, 2018 Change Impact
Growth Rate (a) NET SALES - OPERATING SEGMENT
Waters
$
991,031
$
998,451
(1
%)
$
(23,602
)
2
%
TA
121,993
128,438
(5
%)
(1,637
)
(4
%)
Total
$
1,113,024
$
1,126,889
(1
%)
$
(25,239
)
1
%
NET SALES - PRODUCTS & SERVICES
Instruments
$
508,223
$
530,147
(4
%)
$
(8,823
)
(2
%)
Service
405,256
398,903
2
%
(10,838
)
4
%
Chemistry
199,545
197,839
1
%
(5,578
)
4
%
Total Recurring
604,801
596,742
1
%
(16,416
)
4
%
Total
$
1,113,024
$
1,126,889
(1
%)
$
(25,239
)
1
%
NET SALES - GEOGRAPHY Asia
$
439,347
$
437,185
0
%
$
(9,197
)
3
%
Americas
388,643
379,836
2
%
(855
)
3
%
Europe
285,034
309,868
(8
%)
(15,187
)
(3
%)
Total
$
1,113,024
$
1,126,889
(1
%)
$
(25,239
)
1
%
NET SALES - MARKETS Pharmaceutical
$
644,657
$
643,682
0
%
$
(18,064
)
3
%
Industrial
331,327
345,994
(4
%)
(4,620
)
(3
%)
Academic & Governmental
137,040
137,213
0
%
(2,555
)
2
%
Total
$
1,113,024
$
1,126,889
(1
%)
$
(25,239
)
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 & Six
Months Ended June 29, 2019 and June 30, 2018 (In thousands,
except per share data) Income from
Operations Selling & Operating
Other before Provision for Diluted
Administrative Operating Income
(Expense) Income Income Net
Earnings Expenses(a) Income Percentage
Income Taxes Taxes Income per
Share Three Months Ended June 29, 2019 GAAP
$
135,472
$
177,654
29.7
%
$
(342
)
$
171,735
$
27,325
$
144,410
$
2.08
Adjustments: Purchased intangibles amortization (b)
(2,264
)
2,264
0.4
%
-
2,264
491
1,773
0.03
Restructuring costs and certain other items (c)
(2,725
)
2,725
0.5
%
-
2,725
640
2,085
0.03
Certain income tax items (d)
-
-
-
-
-
(634
)
634
0.01
Adjusted Non-GAAP
$
130,483
$
182,643
30.5
%
$
(342
)
$
176,724
$
27,822
$
148,902
$
2.14
Three Months Ended June 30, 2018 GAAP
$
138,247
$
179,193
30.1
%
$
(1,828
)
$
174,561
$
18,884
$
155,677
$
1.98
Adjustments: Purchased intangibles amortization (b)
(1,602
)
1,602
0.3
%
-
1,602
304
1,298
0.02
Restructuring costs and certain other items (c)
(1,189
)
1,189
0.2
%
-
1,189
260
929
0.01
Pension termination (e)
-
-
-
2,165
2,165
520
1,645
0.02
Tax reform (f)
-
-
-
-
-
8,573
(8,573
)
(0.11
)
Certain income tax items (d)
-
-
-
-
-
(1,993
)
1,993
0.03
Adjusted Non-GAAP
$
135,456
$
181,984
30.5
%
$
337
$
179,517
$
26,548
$
152,969
$
1.95
Six Months Ended June 29, 2019 GAAP
$
272,092
$
298,805
26.8
%
$
(867
)
$
289,113
$
35,717
$
253,396
$
3.57
Adjustments: Purchased intangibles amortization (b)
(4,545
)
4,545
0.4
%
-
4,545
985
3,560
0.05
Restructuring costs and certain other items (c)
(12,786
)
12,786
1.1
%
-
12,786
3,273
9,513
0.13
Tax reform (f)
-
-
-
-
-
3,229
(3,229
)
(0.05
)
Certain income tax items (d)
-
-
-
-
-
(1,308
)
1,308
0.02
Adjusted Non-GAAP
$
254,761
$
316,136
28.4
%
$
(867
)
$
306,444
$
41,896
$
264,548
$
3.73
Six Months Ended June 30, 2018 GAAP
$
268,641
$
323,568
28.7
%
$
(1,482
)
$
315,110
$
47,482
$
267,628
$
3.39
Adjustments: Purchased intangibles amortization (b)
(3,261
)
3,261
0.3
%
-
3,261
506
2,755
0.03
Restructuring costs and certain other items (c)
(1,757
)
1,757
0.2
%
-
1,757
392
1,365
0.02
Pension termination (e)
-
-
-
2,165
2,165
520
1,645
0.02
Litigation settlement (g)
1,672
(1,672
)
(0.1
%)
-
(1,672
)
(401
)
(1,271
)
(0.02
)
Stock award modification (h)
(1,014
)
1,014
0.1
%
-
1,014
243
771
0.01
Tax reform (f)
-
-
-
-
-
(3,877
)
3,877
0.05
Certain income tax items (d)
-
-
-
-
-
(2,685
)
2,685
0.03
Adjusted Non-GAAP
$
264,281
$
327,928
29.1
%
$
683
$
321,635
$
42,180
$
279,455
$
3.54
(a) Selling & administrative expenses include purchased
intangibles amortization and litigation provisions. (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) Restructuring costs and certain other items were excluded
as the Company believes that the cost to consolidate operations and
reduce overhead 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. (d)
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. (e) The pension
expense associated with terminating a frozen defined benefit
pension plan was excluded as the Company believes these expenses
are not indicative of normal operating costs. (f) The provision for
income taxes for the six months ended June 29, 2019 included a $3
million benefit related to the finalization of tax regulations
under tax reform during the first quarter of 2019. The provision
for income taxes for the three and six months June 30, 2018
included a $9 million benefit and a $4 million expense,
respectively, 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. 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 June 29, 2019 and June
30, 2018, respectively.
(g) Litigation settlement gains were excluded as these items are
isolated, unpredictable and not expected to recur regularly. (h)
The non-cash expense associated with accelerating the vesting of
certain stock awards was excluded as the Company believes these
expenses are not indicative of normal operating costs.
Waters Corporation and Subsidiaries Preliminary
Condensed Unclassified Consolidated Balance Sheets (In
thousands and unaudited) June 29,
2019 December 31, 2018 Cash, cash equivalents and
investments
$
675,773
$
1,735,224
Accounts receivable
518,520
568,316
Inventories
351,552
291,569
Property, plant and equipment, net
368,878
343,083
Intangible assets, net
244,094
246,902
Goodwill
355,890
355,614
Other assets
308,215
186,718
Total assets
$
2,822,922
$
3,727,426
Notes payable and debt
$
1,148,689
$
1,148,350
Other liabilities
1,117,988
1,011,818
Total liabilities
2,266,677
2,160,168
Total equity
556,245
1,567,258
Total liabilities and equity
$
2,822,922
$
3,727,426
Waters Corporation and Subsidiaries Preliminary Condensed
Consolidated Statements of Cash Flows Three and Six Months
Ended June 29, 2019 and June 30, 2018 (In thousands and
unaudited) Three Months Ended Six Months
Ended June 29, 2019 June 30, 2018 June 29,
2019 June 30, 2018 Cash flows from operating
activities: Net income
$
144,410
$
155,677
$
253,396
$
267,628
Adjustments to reconcile net income to net cash provided by
operating activities: Stock-based compensation
9,314
9,079
19,255
18,971
Depreciation and amortization
28,851
27,196
53,615
55,836
Change in operating assets and liabilities, net
(55,551
)
(91,236
)
(23,463
)
(65,878
)
Net cash provided by operating activities
127,024
100,716
302,803
276,557
Cash flows from investing activities: Additions to property,
plant, equipment and software capitalization
(39,522
)
(20,839
)
(65,188
)
(36,831
)
Investment in unaffiliated companies
(4,750
)
-
(4,750
)
(3,215
)
Net change in investments
395,296
331,382
855,001
1,246,428
Net cash provided by investing activities
351,024
310,543
785,063
1,206,382
Cash flows from financing activities: Net change in debt
32
(99,855
)
118
(849,774
)
Proceeds from stock plans
2,498
10,558
30,129
34,845
Purchases of treasury shares
(576,530
)
(270,774
)
(1,329,635
)
(553,144
)
Other cash flow from financing activities, net
2,400
(4,095
)
4,654
(2,158
)
Net cash used in financing activities
(571,600
)
(364,166
)
(1,294,734
)
(1,370,231
)
Effect of exchange rate changes on cash and cash equivalents
(3,420
)
(21,411
)
(1,414
)
(12,823
)
(Decrease) increase in cash and cash equivalents
(96,972
)
25,682
(208,282
)
99,885
Cash and cash equivalents at beginning of period
684,970
716,522
796,280
642,319
Cash and cash equivalents at end of period
$
587,998
$
742,204
$
587,998
$
742,204
Reconciliation of GAAP Cash Flows
from Operating Activities to Free Cash Flow (a)
Net cash provided by operating activities - GAAP
$
127,024
$
100,716
$
302,803
$
276,557
Adjustments: Additions to property, plant, equipment and
software capitalization
(39,522
)
(20,839
)
(65,188
)
(36,831
)
Tax reform payments
29,109
46,700
29,109
46,700
Litigation settlement payment
-
15,400
-
15,400
Major facility renovations
19,779
1,801
27,275
1,801
Free Cash Flow - Adjusted Non-GAAP
$
136,390
$
143,778
$
293,999
$
303,627
(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 (In
thousands, except per share data) Three Months
Ended Twelve Months Ended September 28, 2019
December 31, 2019 Range Range Projected
Sales Projected constant-currency sales growth rate (a)
2
%
-
4
%
1
%
-
3
%
Projected currency impact
(1
%)
-
(1
%)
(2
%)
-
(1
%)
Projected sales growth rate as reported
1
%
-
3
%
(1
%)
-
2
%
Projected Earnings Per Diluted Share
Range Range Projected GAAP earnings per
diluted share
$
2.01
-
$
2.11
$
8.71
-
$
8.86
Adjustments: Purchased intangibles amortization
$
0.03
-
$
0.03
$
0.11
-
$
0.11
Certain other items
$
-
-
$
-
$
0.14
-
$
0.14
Certain income tax items
$
0.01
-
$
0.01
$
(0.01
)
-
$
(0.01
)
Projected adjusted non-GAAP earnings per diluted share
$
2.05
-
$
2.15
$
8.95
-
$
9.10
(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/20190730005198/en/
Bryan Brokmeier, CFA, Senior Director, Investor Relations,
508-482-3448
Waters (NYSE:WAT)
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