Highlights
Sales of $691 million grew 13% as reported and 16% in constant currency
Transformation on track with strong commercial momentum, operational performance, and innovation
Instrument sales grew 26% in constant currency, with strong growth across LC, MS and TA product lines
All end-markets grew, with pharmaceutical and industrial both up high-teens
Broad-based sales growth across all geographies, led by U.S. which grew 28% and China grew 17% in constant currency
GAAP EPS of $2.62; non-GAAP EPS of $2.80, a 22% increase from prior year
MILFORD, Mass.--(BUSINESS WIRE)--Waters Corporation (NYSE: WAT) today announced its financial results for the first quarter of 2022.
“Our teams continue to deliver excellent results despite the challenging environment. This was a record first quarter for Waters’ sales, led by instruments which grew 26% in constant currency, while our recurring revenues grew 9% in constant currency, reflecting continued demand across our geographies and end-markets,” said Dr. Udit Batra, President and Chief Executive Officer of Waters Corporation. “Our non-GAAP operating income margin expanded by 170 basis points, demonstrating our team’s continued operational excellence and relentless focus on delivering innovative products to our customers.”
Dr. Batra continued, “Our portfolio rejuvenation is focused on large and small molecules, with ArcTM HPLC, ACQUITYTM Premier, and MaxPeakTM Premier columns all providing a strong contribution to growth in the quarter. Customer response to the launches of our new mass spec products - SELECT SERIESTM MRT, XevoTM TQ Absolute, and waters_connectTM has been extremely positive as well.”
First Quarter 2022
Sales for the quarter were $691 million, an increase of 13% as reported and 16% in constant currency, compared to sales of $609 million for the first quarter of 2021.
On a GAAP basis, operating income margin for the first quarter of 2022 improved to 28.3% compared to 28.1% for the first quarter of 2021. On a non-GAAP basis, operating income margin improved to 30.3% compared to 28.6% for the first quarter of 2021.
On a GAAP basis, diluted earnings per share (EPS) for the first quarter of 2022 increased to $2.62, compared to $2.37 for the first quarter of 2021. On a non-GAAP basis, EPS increased to $2.80, compared to $2.29 for the first quarter of 2021. 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.
Other Highlights
During the first quarter of 2022, sales into the pharmaceutical market increased 15% as reported and 19% in constant currency, sales into the industrial market increased 14% as reported and 17% in constant currency and sales into the academic and government markets were flat as reported and increased 4% in constant currency.
Recurring revenues, which represent the combination of service and precision chemistries, increased 6% as reported and 9% in constant currency, while instrument system sales increased 24% as reported and 26% in constant currency.
Geographically, sales in Asia during the quarter increased 11% as reported and 14% in constant currency, sales in the Americas increased 26% (with U.S. sales growing 28%), and sales in Europe increased 3% as reported and 9% in constant currency. Sales in China increased 18% as reported and 17% 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.
Full-Year and Second Quarter 2022 Financial Guidance
The Company is raising its full-year 2022 guidance, and now expects constant currency sales growth in the range of 7.5% to 9%. Currency translation is expected to decrease full-year sales growth by approximately three percentage points. The Company is also raising its full-year 2022 non-GAAP EPS guidance to the range of $11.90 to $12.10. 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 second quarter 2022 constant currency sales growth in the range of 6% to 8%. Currency translation is expected to decrease second quarter sales growth by approximately four percentage points. The Company expects second quarter 2022 non-GAAP EPS in the range of $2.55 to $2.65. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the second quarter.
Conference Call
Waters Corporation will webcast its first quarter 2022 financial results conference call today, May 3, 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 May 17, 2022 at midnight Eastern Time on the same website by webcast and also by phone at (866) 363-1809.
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. 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 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, SELECT SERIES, 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 |
||||||||
April 2, 2022 |
April 3, 2021 |
|||||||
Net sales | $ |
690,572 |
|
$ |
608,545 |
|
||
Costs and operating expenses: | ||||||||
Cost of sales |
|
285,685 |
|
|
254,147 |
|
||
Selling and administrative expenses |
|
157,475 |
|
|
143,196 |
|
||
Research and development expenses |
|
40,472 |
|
|
38,092 |
|
||
Purchased intangibles amortization |
|
1,673 |
|
|
1,840 |
|
||
Acquired in-process research and development |
|
9,797 |
|
|
- |
|
||
Operating income |
|
195,470 |
|
|
171,270 |
|
||
Other income, net (a) |
|
170 |
|
|
9,359 |
|
||
Interest expense, net |
|
(8,945 |
) |
|
(6,845 |
) |
||
Income from operations before income taxes |
|
186,695 |
|
|
173,784 |
|
||
Provision for income taxes |
|
26,864 |
|
|
25,657 |
|
||
Net income | $ |
159,831 |
|
$ |
148,127 |
|
||
Net income per basic common share | $ |
2.64 |
|
$ |
2.38 |
|
||
Weighted-average number of basic common shares |
|
60,580 |
|
|
62,260 |
|
||
Net income per diluted common share | $ |
2.62 |
|
$ |
2.37 |
|
||
Weighted-average number of diluted common shares and equivalents |
|
60,952 |
|
|
62,632 |
|
(a) During the three months ended April 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 April 2, 2022 and April 3, 2021 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Current |
||||||||||||||||
Period |
Constant |
|||||||||||||||
Three Months Ended |
Percent |
Currency |
Currency |
|||||||||||||
April 2, 2022 |
April 3, 2021 |
Change |
Impact |
Growth Rate (a) |
||||||||||||
NET SALES - OPERATING SEGMENTS | ||||||||||||||||
Waters | $ | 613,156 |
$ | 541,878 |
13 |
% |
$ | (15,856 |
) |
16 |
% |
|||||
TA | 77,416 |
66,667 |
16 |
% |
(1,581 |
) |
18 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - PRODUCTS & SERVICES | ||||||||||||||||
Instruments | $ | 325,222 |
$ | 263,048 |
24 |
% |
$ | (6,288 |
) |
26 |
% |
|||||
Service | 239,732 |
226,523 |
6 |
% |
(8,163 |
) |
9 |
% |
||||||||
Chemistry | 125,618 |
118,974 |
6 |
% |
(2,986 |
) |
8 |
% |
||||||||
Total Recurring | 365,350 |
345,497 |
6 |
% |
(11,149 |
) |
9 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - GEOGRAPHY | ||||||||||||||||
Asia | $ | 254,334 |
$ | 229,542 |
11 |
% |
$ | (7,571 |
) |
14 |
% |
|||||
Americas | 248,837 |
197,357 |
26 |
% |
(1 |
) |
26 |
% |
||||||||
Europe | 187,401 |
181,646 |
3 |
% |
(9,865 |
) |
9 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - MARKETS | ||||||||||||||||
Pharmaceutical | $ | 415,772 |
$ | 360,148 |
15 |
% |
$ | (11,158 |
) |
19 |
% |
|||||
Industrial | 209,397 |
183,273 |
14 |
% |
(4,153 |
) |
17 |
% |
||||||||
Academic & Government | 65,403 |
65,124 |
- |
|
(2,126 |
) |
4 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - EXCLUDING CHINA | ||||||||||||||||
Total Net Sales | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
China Net Sales | 121,032 |
102,919 |
18 |
% |
850 |
|
17 |
% |
||||||||
Total Net Sales Excluding China | $ | 569,540 |
$ | 505,626 |
13 |
% |
$ | (18,287 |
) |
16 |
% |
(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 Months Ended April 2, 2022 and April 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 April 2, 2022 | ||||||||||||||||||||||||||||||||||
GAAP | $ | 159,148 |
|
$ | 50,269 |
|
$ | 195,470 |
28.3 |
% |
$ | 170 |
|
$ | 186,695 |
|
$ | 26,864 |
|
$ | 159,831 |
|
$ | 2.62 |
|
|||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (1,673 |
) |
- |
|
1,673 |
0.2 |
% |
- |
|
1,673 |
|
383 |
|
1,290 |
|
0.02 |
|
|||||||||||||||||
Acquired in-process research and development(c) | - |
|
(9,797 |
) |
9,797 |
1.4 |
% |
- |
|
9,797 |
|
2,351 |
|
7,446 |
|
0.12 |
|
|||||||||||||||||
Restructuring costs and certain other items (d) | (2,375 |
) |
- |
|
2,375 |
0.3 |
% |
(416 |
) |
1,959 |
|
461 |
|
1,498 |
|
0.02 |
|
|||||||||||||||||
Certain income tax items (e) | - |
|
- |
|
- |
- |
|
- |
|
- |
|
(488 |
) |
488 |
|
0.01 |
|
|||||||||||||||||
Adjusted Non-GAAP | $ | 155,100 |
|
$ | 40,472 |
|
$ | 209,315 |
30.3 |
% |
$ | (246 |
) |
$ | 200,124 |
|
$ | 29,571 |
|
$ | 170,553 |
|
$ | 2.80 |
|
|||||||||
Three Months Ended April 3, 2021 | ||||||||||||||||||||||||||||||||||
GAAP | $ | 145,036 |
|
$ | 38,092 |
|
$ | 171,270 |
28.1 |
% |
$ | 9,359 |
|
$ | 173,784 |
|
$ | 25,657 |
|
$ | 148,127 |
|
$ | 2.37 |
|
|||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (1,840 |
) |
- |
|
1,840 |
0.3 |
% |
- |
|
1,840 |
|
414 |
|
1,426 |
|
0.02 |
|
|||||||||||||||||
Restructuring costs and certain other items (d) | (870 |
) |
- |
|
870 |
0.1 |
% |
(9,707 |
) |
(8,837 |
) |
(2,120 |
) |
(6,717 |
) |
(0.11 |
) |
|||||||||||||||||
Certain income tax items (e) | - |
|
- |
|
- |
- |
|
- |
|
- |
|
(550 |
) |
550 |
|
0.01 |
|
|||||||||||||||||
Adjusted Non-GAAP | $ | 142,326 |
|
$ | 38,092 |
|
$ | 173,980 |
28.6 |
% |
$ | (348 |
) |
$ | 166,787 |
|
$ | 23,401 |
|
$ | 143,386 |
|
$ | 2.29 |
|
(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) |
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) |
||||||
April 2, 2022 |
December 31, 2021 |
|||||
Cash, cash equivalents and investments | $ |
503,095 |
$ |
569,285 |
||
Accounts receivable |
|
607,262 |
|
612,648 |
||
Inventories |
|
381,902 |
|
356,095 |
||
Property, plant and equipment, net |
|
547,199 |
|
547,913 |
||
Intangible assets, net |
|
236,408 |
|
242,401 |
||
Goodwill |
|
435,807 |
|
437,865 |
||
Other assets |
|
329,596 |
|
328,725 |
||
Total assets | $ |
3,041,269 |
$ |
3,094,932 |
||
Notes payable and debt | $ |
1,444,122 |
$ |
1,513,870 |
||
Other liabilities |
|
1,222,210 |
|
1,213,508 |
||
Total liabilities |
|
2,666,332 |
|
2,727,378 |
||
Total stockholders' equity |
|
374,937 |
|
367,554 |
||
Total liabilities and stockholders' equity | $ |
3,041,269 |
$ |
3,094,932 |
Waters Corporation and Subsidiaries |
||||||||
Preliminary Condensed Consolidated Statements of Cash Flows |
||||||||
Three Months Ended April 2, 2022 and April 3, 2021 |
||||||||
(In thousands and unaudited) |
||||||||
Three Months Ended |
||||||||
April 2, 2022 |
April 3, 2021 |
|||||||
Cash flows from operating activities: | ||||||||
Net income | $ |
159,831 |
|
$ |
148,127 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation |
|
10,933 |
|
|
8,305 |
|
||
Depreciation and amortization |
|
32,664 |
|
|
31,356 |
|
||
Change in operating assets and liabilities and other, net |
|
(5,468 |
) |
|
30,616 |
|
||
Net cash provided by operating activities |
|
197,960 |
|
|
218,404 |
|
||
Cash flows from investing activities: | ||||||||
Additions to property, plant, equipment and software capitalization |
|
(27,751 |
) |
|
(39,503 |
) |
||
Proceeds from sale of equity investment |
|
6,785 |
|
|
- |
|
||
Payments for intellectual property licenses |
|
(4,897 |
) |
|
- |
|
||
Net change in investments |
|
44,855 |
|
|
(119,501 |
) |
||
Net cash provided by (used in) investing activities |
|
18,992 |
|
|
(159,004 |
) |
||
Cash flows from financing activities: | ||||||||
Net change in debt |
|
(70,000 |
) |
|
346,363 |
|
||
Proceeds from stock plans |
|
12,832 |
|
|
16,295 |
|
||
Purchases of treasury shares |
|
(170,136 |
) |
|
(173,305 |
) |
||
Other cash flow from financing activities, net |
|
(107 |
) |
|
(578 |
) |
||
Net cash (used in) provided by financing activities |
|
(227,411 |
) |
|
188,775 |
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
(10,705 |
) |
|
(1,087 |
) |
||
(Decrease) increase in cash and cash equivalents |
|
(21,164 |
) |
|
247,088 |
|
||
Cash and cash equivalents at beginning of period |
|
501,234 |
|
|
436,695 |
|
||
Cash and cash equivalents at end of period | $ |
480,070 |
|
$ |
683,783 |
|
||
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | ||||||||
Net cash provided by operating activities - GAAP | $ |
197,960 |
|
$ |
218,404 |
|
||
Adjustments: | ||||||||
Additions to property, plant, equipment and software capitalization |
|
(27,751 |
) |
|
(39,503 |
) |
||
Litigation settlements paid, net |
|
(584 |
) |
|
- |
|
||
Major facility renovations |
|
5,927 |
|
|
14,490 |
|
||
Free Cash Flow - Adjusted Non-GAAP | $ |
175,552 |
|
$ |
193,391 |
|
(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 |
|||||||||||||||
July 2, 2022 |
December 31, 2022 |
|||||||||||||||
Range |
Range |
|||||||||||||||
Projected Sales | ||||||||||||||||
Projected constant currency sales growth rate (a) | 6.0% |
- |
8.0% |
7.5% |
- |
9.0% |
||||||||||
Projected currency impact | (4.0%) |
- |
(4.0%) |
(3.0%) |
- |
(3.0%) |
||||||||||
Projected sales growth rate as reported | 2.0% |
- |
4.0% |
4.5% |
- |
6.0% |
||||||||||
Projected Earnings Per Diluted Share | Range |
Range |
||||||||||||||
Projected GAAP earnings per diluted share | $ |
2.52 |
- |
$ |
2.62 |
$ |
11.68 |
- |
$ |
11.88 |
||||||
Adjustments: | ||||||||||||||||
Purchased intangibles amortization | $ |
0.02 |
- |
$ |
0.02 |
$ |
0.08 |
- |
$ |
0.08 |
||||||
Acquired in-process research and development | $ |
- |
$ |
- |
$ |
0.12 |
$ |
0.12 |
||||||||
Certain income tax items | $ |
0.01 |
- |
$ |
0.01 |
$ |
0.02 |
- |
$ |
0.02 |
||||||
Projected adjusted non-GAAP earnings per diluted share | $ |
2.55 |
- |
$ |
2.65 |
$ |
11.90 |
- |
$ |
12.10 |
(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. |
Основные моменты
Объем продаж в размере 691 миллиона долларов вырос на 13%, как сообщалось, и на 16% в постоянной валюте
Трансформация идет полным ходом благодаря сильному коммерческому импульсу, операционной эффективности и инновациям
Продажи инструментов выросли на 26% в постоянной валюте, при этом наблюдается значительный рост по линейкам продуктов LC, MS и TA
Все конечные рынки выросли, причем как фармацевтические, так и промышленные выросли на высоком уровне
Общий рост продаж во всех регионах, во главе с США, которые выросли на 28%, и Китаем, который вырос на 17% в постоянной валюте
Прибыль на акцию по GAAP составила 2,62 доллара США; прибыль на акцию без учета GAAP составила 2,80 доллара США, что на 22% больше, чем в предыдущем году
МИЛФОРД, Массачусетс - (BUSINESS WIRE) - Корпорация Waters (NYSE: WAT) сегодня объявила о своих финансовых результатах за первый квартал 2022 года.
“Наши команды продолжают показывать отличные результаты, несмотря на сложные условия. Это был рекордный первый квартал для продаж Waters, во главе с инструментами, которые выросли на 26% в постоянной валюте, в то время как наши регулярные доходы выросли на 9% в постоянной валюте, что отражает сохраняющийся спрос в наших регионах и на конечных рынках”, - сказал д-р Удит Батра, президент и главный исполнительный директор Waters Corporation. “Наша маржа операционной прибыли без учета GAAP увеличилась на 170 базисных пунктов, демонстрируя постоянное операционное превосходство нашей команды и неустанную нацеленность на предоставление инновационных продуктов нашим клиентам”.
Доктор Батра продолжил: “Омоложение нашего портфеля сосредоточено на больших и малых молекулах, а колонки ArcTM HPLC, ACQUITYTM Premier и MaxPeakTM Premier внесли значительный вклад в рост в этом квартале. Реакция клиентов на запуск наших новых продуктов mass spec - SELECT SERIESTM MRT, XevoTM TQ Absolute и waters_connectTM также была исключительно положительной”.
Первый квартал 2022 года
Продажи за квартал составили 691 миллион долларов, увеличившись на 13%, как сообщалось, и на 16% в постоянной валюте, по сравнению с продажами в размере 609 миллионов долларов за первый квартал 2021 года.
На основе GAAP маржа операционной прибыли за первый квартал 2022 года увеличилась до 28,3% по сравнению с 28,1% за первый квартал 2021 года. На основе, не связанной с GAAP, маржа операционной прибыли увеличилась до 30,3% по сравнению с 28,6% в первом квартале 2021 года.
На основе GAAP разводненная прибыль на акцию (EPS) за первый квартал 2022 года увеличилась до 2,62 доллара по сравнению с 2,37 доллара за первый квартал 2021 года. Без учета GAAP прибыль на акцию увеличилась до 2,80 доллара по сравнению с 2,29 доллара за первый квартал 2021 года. Описание и сверка результатов GAAP с результатами, не относящимися к GAAP, приведены в таблицах ниже и могут быть найдены на веб-сайте Компании www.waters.com в разделе по связям с инвесторами.
Другие основные моменты
В течение первого квартала 2022 года продажи на фармацевтическом рынке выросли на 15%, как сообщалось, и на 19% в постоянной валюте, продажи на промышленном рынке выросли на 14%, как сообщалось, и на 17% в постоянной валюте, а продажи на академическом и государственном рынках остались неизменными, как сообщалось, и увеличились на 4% в постоянной валюте.
Регулярные доходы, которые представляют собой комбинацию услуг и прецизионной химии, увеличились на 6%, как сообщалось, и на 9% в постоянной валюте, в то время как продажи приборных систем выросли на 24%, как сообщалось, и на 26% в постоянной валюте.
Географически продажи в Азии в течение квартала выросли на 11%, как сообщалось, и на 14% в постоянной валюте, продажи в Северной и Южной Америке выросли на 26% (при росте продаж в США на 28%), а продажи в Европе выросли на 3%, как сообщалось, и на 9% в постоянной валюте. Продажи в Китае выросли на 18%, как сообщалось, и на 17% в постоянной валюте.
Если не указано иное, процентные показатели роста и снижения продаж представлены на отчетной основе и совпадают с процентными показателями роста и снижения продаж, представленными на основе постоянной валюты по сравнению с тем же периодом предыдущего года, каждый из которых подробно описан в сверке темпов роста продаж с постоянной валютой темпы роста приведены в таблицах ниже.
Финансовые рекомендации на весь год и Второй квартал 2022 года
Компания повышает свой прогноз на весь 2022 год и теперь ожидает постоянного роста продаж в валюте в диапазоне от 7,5% до 9%. Ожидается, что пересчет валюты приведет к снижению годового роста продаж примерно на три процентных пункта. Компания также повышает свой прогноз по прибыли на акцию на весь 2022 год без учета GAAP до диапазона от 11,90 до 12,10 долларов США. Пожалуйста, обратитесь к приведенным ниже таблицам для сверки прогнозируемых финансовых прогнозов по ОПБУ с финансовыми прогнозами, не относящимися к ОПБУ, на весь год.
Компания ожидает во втором квартале 2022 года постоянного роста продаж валюты в диапазоне от 6% до 8%. Ожидается, что пересчет валюты приведет к снижению роста продаж во втором квартале примерно на четыре процентных пункта. Компания ожидает, что во втором квартале 2022 года прибыль на акцию без учета GAAP составит от 2,55 до 2,65 доллара США. Пожалуйста, обратитесь к приведенным ниже таблицам для сверки прогнозируемых финансовых прогнозов по ОПБУ с финансовыми прогнозами, не относящимися к ОПБУ, на второй квартал.
Конференц-связь
Корпорация Waters проведет онлайн-трансляцию телефонной конференции по финансовым результатам за первый квартал 2022 года сегодня, 3 мая 2022 года, в 8:00 утра по восточному времени. Чтобы прослушать звонок и посмотреть сопроводительную слайд-презентацию, пожалуйста, посетите www.waters.com , выберите “Инвесторы” в разделе “О компании”, перейдите в раздел “События и презентации” и нажмите на “Веб-трансляцию”. Повтор будет доступен по крайней мере до 17 мая 2022 года в полночь по восточному времени на том же веб-сайте посредством веб-трансляции, а также по телефону (866) 363-1809.
О корпорации Waters Corporation
Waters Corporation (NYSE: WAT), мировой лидер в области аналитических приборов и программного обеспечения, уже более 60 лет является пионером инноваций в области хроматографии, масс-спектрометрии и термического анализа, которые служат науке о жизни, материалах и пищевых продуктах. Имея более 7800 сотрудников по всему миру, Waters работает непосредственно в 35 странах, включая 14 производственных мощностей, и предлагает продукцию более чем в 100 странах. Для получения дополнительной информации посетите www.waters.com .
Финансовые показатели, Не относящиеся к ОПБУ
Этот пресс-релиз содержит финансовые показатели, такие как постоянный темп роста валюты, скорректированный операционный доход, скорректированный чистый доход, скорректированная прибыль на разводненную акцию и скорректированный свободный денежный поток, среди прочего, которые считаются финансовыми показателями, не относящимися к GAAP, в соответствии с применимыми правилами и положениями Комиссии по ценным бумагам и биржам США. Эти финансовые показатели, не относящиеся к GAAP, следует рассматривать как дополнение, а не замену финансовой информации, подготовленной в соответствии с общепринятыми принципами бухгалтерского учета США (GAAP). Определения Компанией этих показателей, не относящихся к GAAP, могут отличаться от показателей с аналогичным названием, используемых другими компаниями. Финансовые показатели, не относящиеся к GAAP, используемые в этом пресс-релизе, корректируются с учетом определенных статей, которые могут быть сильно изменчивыми или трудно прогнозируемыми. Компания обычно использует эти финансовые показатели, не относящиеся к GAAP, для облегчения принятия руководством финансовых и операционных решений, включая оценку исторических операционных результатов Компании, сравнение с операционными результатами конкурентов и определение вознаграждения, стимулирующего руководство. Эти финансовые показатели, не относящиеся к GAAP, отражают дополнительный способ рассмотрения аспектов деятельности Компании, который, при рассмотрении с результатами GAAP и сверкой с соответствующими финансовыми показателями GAAP, может обеспечить более полное понимание факторов и тенденций, влияющих на бизнес Компании. Поскольку финансовые показатели, не относящиеся к GAAP, исключают влияние статей, которые увеличат или уменьшат отчетные результаты деятельности Компании, руководство настоятельно рекомендует инвесторам полностью ознакомиться с консолидированной финансовой отчетностью Компании и публичными отчетами. Сверки финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями GAAP включены в таблицы, прилагаемые к этому выпуску.
Предостерегающее заявление
Этот релиз содержит “прогнозные” заявления относительно будущих результатов и событий. Для этой цели любые заявления, которые не являются утверждениями об исторических фактах, могут рассматриваться как заявления, ориентированные на будущее. Не ограничивая вышесказанное, слова “чувствует”, “полагает”, “ожидает”, “планирует”, “ожидает”, “намеревается”, “предполагает”, “представляется”, “оценивает”, “проектирует” и подобные выражения, будь то в отрицательном или утвердительном смысле, предназначены для определите прогнозные заявления. Фактические будущие результаты могут существенно отличаться от тех результатов, которые содержатся в прогнозных заявлениях, в этом выпуске по ряду причин, включая, без ограничения, риски, связанные с последствиями продолжающегося COVID-19 пандемией на наш бизнес, финансовое положение, результаты операций и экономические перспективы, в том числе: часть нашей глобальной рабочей силы, будучи не в состоянии работать полностью и/или эффективно благодаря удаленной работе, болезнь, карантин, меры правительства, механизм замыкания или других причин, связанных с пандемией, повышенные риски кибератак в результате нашей временной удаленной работы модели перебои в наши производственные возможности или нашей цепочки поставок и распределения сети, волатильности и неопределенности на мировых рынках капитала ограничивает наши возможности доступа к капиталу, клиенты, будучи не в состоянии своевременно вносить платежи за покупки и волатильность спроса на нашу продукцию; валютного курса могут повлиять перевода будущее компании за пределами США операционных результатов; влияние на спрос на продукцию предприятия, в том числе задержки или сбои в нашей дистрибьюторской сети, среди компании различных секторов рынка или территории, в экономической, суверенной и политической неопределенности, особенно в отношении влияния новых или предлагаемых тарифов и торговых правил или изменений в практике толкования и применения действующих правил; влияния на финансовые результаты компании из Великобритании выхода из Европейского Союза; колебания расходов клиентов компании, в частности крупные фармацевтические компании; внедрение конкурирующих продуктов других компаний, и потеря доли рынка; давление на цены со стороны конкурентов и/или клиентов; нормативной, экономической и конкурентной препятствий для выпуска новой продукции; другие изменения спроса на продукцию предприятия от влияния слияний и поглощений со стороны клиентов компании; увеличение регулятивного бремени, как бизнес развивается, особенно в отношении пищевых продуктов и медикаментов США и Агентство охраны окружающей среды США, в других странах; сдвиги в налогооблагаемого дохода в юрисдикциях, с различной эффективной налоговой ставки; результаты налогового контроля или перемены в стране законодательства, влияющие на деятельность компании по эффективной налоговой ставки; эффект от применения новых стандартов бухгалтерского учета; способность к доступу капитала, поддержание ликвидности и обслуживания долга компании в условиях нестабильной конъюнктуры рынка, в том числе любые потенциальные воздействия на деятельность компании, вытекающих из устойчивой инфляции люди, особенно в США, поскольку значительная часть денежных средствах компании и денежные потоки от операционной деятельности формируются за пределами США; экологические и логистические препятствия, влияющие на распределение товаров и риски, связанные с исковых заявлений и других процессуальных действий, в частности, по искам о нарушении патентов и других прав интеллектуальной собственности. Такие и другие факторы более подробно обсуждаются в разделах, озаглавленных “Прогнозные заявления” и “Факторы риска” годового отчета Компании по форме 10-K за год, закончившийся 31 декабря 2021 года, который был подан в Комиссию по ценным бумагам и биржам (“SEC”), которые обсуждаются включено путем ссылки в этом выпуске, обновленном в соответствии с будущими заявками Компании в SEC. Заявления прогнозного характера, включенные в этот выпуск, представляют оценки или взгляды Компании на дату этого выпуска, и на них не следует полагаться как на оценки или взгляды Компании на любую дату, последующую за датой этого выпуска. За исключением случаев, предусмотренных законом, Компания не берет на себя никаких обязательств по обновлению каких-либо прогнозных заявлений.
Arc, ACQUITY, MaxPeak, SELECT SERIES, Xevo и waters_connect являются торговыми марками Waters Corporation.
Waters Corporation and Subsidiaries |
||||||||
Consolidated Statements of Operations |
||||||||
(In thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
||||||||
April 2, 2022 |
April 3, 2021 |
|||||||
Net sales | $ |
690,572 |
|
$ |
608,545 |
|
||
Costs and operating expenses: | ||||||||
Cost of sales |
|
285,685 |
|
|
254,147 |
|
||
Selling and administrative expenses |
|
157,475 |
|
|
143,196 |
|
||
Research and development expenses |
|
40,472 |
|
|
38,092 |
|
||
Purchased intangibles amortization |
|
1,673 |
|
|
1,840 |
|
||
Acquired in-process research and development |
|
9,797 |
|
|
- |
|
||
Operating income |
|
195,470 |
|
|
171,270 |
|
||
Other income, net (a) |
|
170 |
|
|
9,359 |
|
||
Interest expense, net |
|
(8,945 |
) |
|
(6,845 |
) |
||
Income from operations before income taxes |
|
186,695 |
|
|
173,784 |
|
||
Provision for income taxes |
|
26,864 |
|
|
25,657 |
|
||
Net income | $ |
159,831 |
|
$ |
148,127 |
|
||
Net income per basic common share | $ |
2.64 |
|
$ |
2.38 |
|
||
Weighted-average number of basic common shares |
|
60,580 |
|
|
62,260 |
|
||
Net income per diluted common share | $ |
2.62 |
|
$ |
2.37 |
|
||
Weighted-average number of diluted common shares and equivalents |
|
60,952 |
|
|
62,632 |
|
(a) During the three months ended April 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 April 2, 2022 and April 3, 2021 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Current |
||||||||||||||||
Period |
Constant |
|||||||||||||||
Three Months Ended |
Percent |
Currency |
Currency |
|||||||||||||
April 2, 2022 |
April 3, 2021 |
Change |
Impact |
Growth Rate (a) |
||||||||||||
NET SALES - OPERATING SEGMENTS | ||||||||||||||||
Waters | $ | 613,156 |
$ | 541,878 |
13 |
% |
$ | (15,856 |
) |
16 |
% |
|||||
TA | 77,416 |
66,667 |
16 |
% |
(1,581 |
) |
18 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - PRODUCTS & SERVICES | ||||||||||||||||
Instruments | $ | 325,222 |
$ | 263,048 |
24 |
% |
$ | (6,288 |
) |
26 |
% |
|||||
Service | 239,732 |
226,523 |
6 |
% |
(8,163 |
) |
9 |
% |
||||||||
Chemistry | 125,618 |
118,974 |
6 |
% |
(2,986 |
) |
8 |
% |
||||||||
Total Recurring | 365,350 |
345,497 |
6 |
% |
(11,149 |
) |
9 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - GEOGRAPHY | ||||||||||||||||
Asia | $ | 254,334 |
$ | 229,542 |
11 |
% |
$ | (7,571 |
) |
14 |
% |
|||||
Americas | 248,837 |
197,357 |
26 |
% |
(1 |
) |
26 |
% |
||||||||
Europe | 187,401 |
181,646 |
3 |
% |
(9,865 |
) |
9 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - MARKETS | ||||||||||||||||
Pharmaceutical | $ | 415,772 |
$ | 360,148 |
15 |
% |
$ | (11,158 |
) |
19 |
% |
|||||
Industrial | 209,397 |
183,273 |
14 |
% |
(4,153 |
) |
17 |
% |
||||||||
Academic & Government | 65,403 |
65,124 |
- |
|
(2,126 |
) |
4 |
% |
||||||||
Total | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
NET SALES - EXCLUDING CHINA | ||||||||||||||||
Total Net Sales | $ | 690,572 |
$ | 608,545 |
13 |
% |
$ | (17,437 |
) |
16 |
% |
|||||
China Net Sales | 121,032 |
102,919 |
18 |
% |
850 |
|
17 |
% |
||||||||
Total Net Sales Excluding China | $ | 569,540 |
$ | 505,626 |
13 |
% |
$ | (18,287 |
) |
16 |
% |
(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 Months Ended April 2, 2022 and April 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 April 2, 2022 | ||||||||||||||||||||||||||||||||||
GAAP | $ | 159,148 |
|
$ | 50,269 |
|
$ | 195,470 |
28.3 |
% |
$ | 170 |
|
$ | 186,695 |
|
$ | 26,864 |
|
$ | 159,831 |
|
$ | 2.62 |
|
|||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (1,673 |
) |
- |
|
1,673 |
0.2 |
% |
- |
|
1,673 |
|
383 |
|
1,290 |
|
0.02 |
|
|||||||||||||||||
Acquired in-process research and development(c) | - |
|
(9,797 |
) |
9,797 |
1.4 |
% |
- |
|
9,797 |
|
2,351 |
|
7,446 |
|
0.12 |
|
|||||||||||||||||
Restructuring costs and certain other items (d) | (2,375 |
) |
- |
|
2,375 |
0.3 |
% |
(416 |
) |
1,959 |
|
461 |
|
1,498 |
|
0.02 |
|
|||||||||||||||||
Certain income tax items (e) | - |
|
- |
|
- |
- |
|
- |
|
- |
|
(488 |
) |
488 |
|
0.01 |
|
|||||||||||||||||
Adjusted Non-GAAP | $ | 155,100 |
|
$ | 40,472 |
|
$ | 209,315 |
30.3 |
% |
$ | (246 |
) |
$ | 200,124 |
|
$ | 29,571 |
|
$ | 170,553 |
|
$ | 2.80 |
|
|||||||||
Three Months Ended April 3, 2021 | ||||||||||||||||||||||||||||||||||
GAAP | $ | 145,036 |
|
$ | 38,092 |
|
$ | 171,270 |
28.1 |
% |
$ | 9,359 |
|
$ | 173,784 |
|
$ | 25,657 |
|
$ | 148,127 |
|
$ | 2.37 |
|
|||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (1,840 |
) |
- |
|
1,840 |
0.3 |
% |
- |
|
1,840 |
|
414 |
|
1,426 |
|
0.02 |
|
|||||||||||||||||
Restructuring costs and certain other items (d) | (870 |
) |
- |
|
870 |
0.1 |
% |
(9,707 |
) |
(8,837 |
) |
(2,120 |
) |
(6,717 |
) |
(0.11 |
) |
|||||||||||||||||
Certain income tax items (e) | - |
|
- |
|
- |
- |
|
- |
|
- |
|
(550 |
) |
550 |
|
0.01 |
|
|||||||||||||||||
Adjusted Non-GAAP | $ | 142,326 |
|
$ | 38,092 |
|
$ | 173,980 |
28.6 |
% |
$ | (348 |
) |
$ | 166,787 |
|
$ | 23,401 |
|
$ | 143,386 |
|
$ | 2.29 |
|
(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) |
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) |
||||||
April 2, 2022 |
December 31, 2021 |
|||||
Cash, cash equivalents and investments | $ |
503,095 |
$ |
569,285 |
||
Accounts receivable |
|
607,262 |
|
612,648 |
||
Inventories |
|
381,902 |
|
356,095 |
||
Property, plant and equipment, net |
|
547,199 |
|
547,913 |
||
Intangible assets, net |
|
236,408 |
|
242,401 |
||
Goodwill |
|
435,807 |
|
437,865 |
||
Other assets |
|
329,596 |
|
328,725 |
||
Total assets | $ |
3,041,269 |
$ |
3,094,932 |
||
Notes payable and debt | $ |
1,444,122 |
$ |
1,513,870 |
||
Other liabilities |
|
1,222,210 |
|
1,213,508 |
||
Total liabilities |
|
2,666,332 |
|
2,727,378 |
||
Total stockholders' equity |
|
374,937 |
|
367,554 |
||
Total liabilities and stockholders' equity | $ |
3,041,269 |
$ |
3,094,932 |
Waters Corporation and Subsidiaries |
||||||||
Preliminary Condensed Consolidated Statements of Cash Flows |
||||||||
Three Months Ended April 2, 2022 and April 3, 2021 |
||||||||
(In thousands and unaudited) |
||||||||
Three Months Ended |
||||||||
April 2, 2022 |
April 3, 2021 |
|||||||
Cash flows from operating activities: | ||||||||
Net income | $ |
159,831 |
|
$ |
148,127 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation |
|
10,933 |
|
|
8,305 |
|
||
Depreciation and amortization |
|
32,664 |
|
|
31,356 |
|
||
Change in operating assets and liabilities and other, net |
|
(5,468 |
) |
|
30,616 |
|
||
Net cash provided by operating activities |
|
197,960 |
|
|
218,404 |
|
||
Cash flows from investing activities: | ||||||||
Additions to property, plant, equipment and software capitalization |
|
(27,751 |
) |
|
(39,503 |
) |
||
Proceeds from sale of equity investment |
|
6,785 |
|
|
- |
|
||
Payments for intellectual property licenses |
|
(4,897 |
) |
|
- |
|
||
Net change in investments |
|
44,855 |
|
|
(119,501 |
) |
||
Net cash provided by (used in) investing activities |
|
18,992 |
|
|
(159,004 |
) |
||
Cash flows from financing activities: | ||||||||
Net change in debt |
|
(70,000 |
) |
|
346,363 |
|
||
Proceeds from stock plans |
|
12,832 |
|
|
16,295 |
|
||
Purchases of treasury shares |
|
(170,136 |
) |
|
(173,305 |
) |
||
Other cash flow from financing activities, net |
|
(107 |
) |
|
(578 |
) |
||
Net cash (used in) provided by financing activities |
|
(227,411 |
) |
|
188,775 |
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
(10,705 |
) |
|
(1,087 |
) |
||
(Decrease) increase in cash and cash equivalents |
|
(21,164 |
) |
|
247,088 |
|
||
Cash and cash equivalents at beginning of period |
|
501,234 |
|
|
436,695 |
|
||
Cash and cash equivalents at end of period | $ |
480,070 |
|
$ |
683,783 |
|
||
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | ||||||||
Net cash provided by operating activities - GAAP | $ |
197,960 |
|
$ |
218,404 |
|
||
Adjustments: | ||||||||
Additions to property, plant, equipment and software capitalization |
|
(27,751 |
) |
|
(39,503 |
) |
||
Litigation settlements paid, net |
|
(584 |
) |
|
- |
|
||
Major facility renovations |
|
5,927 |
|
|
14,490 |
|
||
Free Cash Flow - Adjusted Non-GAAP | $ |
175,552 |
|
$ |
193,391 |
|
(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 |
|||||||||||||||
July 2, 2022 |
December 31, 2022 |
|||||||||||||||
Range |
Range |
|||||||||||||||
Projected Sales | ||||||||||||||||
Projected constant currency sales growth rate (a) | 6.0% |
- |
8.0% |
7.5% |
- |
9.0% |
||||||||||
Projected currency impact | (4.0%) |
- |
(4.0%) |
(3.0%) |
- |
(3.0%) |
||||||||||
Projected sales growth rate as reported | 2.0% |
- |
4.0% |
4.5% |
- |
6.0% |
||||||||||
Projected Earnings Per Diluted Share | Range |
Range |
||||||||||||||
Projected GAAP earnings per diluted share | $ |
2.52 |
- |
$ |
2.62 |
$ |
11.68 |
- |
$ |
11.88 |
||||||
Adjustments: | ||||||||||||||||
Purchased intangibles amortization | $ |
0.02 |
- |
$ |
0.02 |
$ |
0.08 |
- |
$ |
0.08 |
||||||
Acquired in-process research and development | $ |
- |
$ |
- |
$ |
0.12 |
$ |
0.12 |
||||||||
Certain income tax items | $ |
0.01 |
- |
$ |
0.01 |
$ |
0.02 |
- |
$ |
0.02 |
||||||
Projected adjusted non-GAAP earnings per diluted share | $ |
2.55 |
- |
$ |
2.65 |
$ |
11.90 |
- |
$ |
12.10 |
(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. |