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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Waters Corp | NYSE:WAT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.28 | 0.42% | 308.90 | 312.62 | 304.87 | 307.15 | 1,069,661 | 01:00:00 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in its Charter)
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading |
Name of each exchange | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition |
On May 7, 2024, Waters Corporation (“Waters” or the “Company”) announced its results of operations for the quarter ended March 30, 2024. A copy of the related press release is attached hereto as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference in its entirety.
The information contained in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 | Financial Statements and Exhibits |
Exhibits
99.1 Waters Corporation press release dated May 7, 2024, for the quarter ended March 30, 2024.
104 Cover page Interactive Date File (embedded within the Inline XBRL document).
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WATERS CORPORATION | ||||||
Dated: May 7, 2024 | By: | /s/ Amol Chaubal | ||||
Name: | Amol Chaubal | |||||
Title: | Senior Vice President and Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) |
Exhibit 99.1
For Immediate Release
Contact: Caspar Tudor, Head of Investor Relations (508) 482-2429
Waters Corporation (NYSE: WAT) Reports First Quarter 2024 Financial Results
Highlights
| Sales of $637 million at the high-end of guidance, declined 7% as reported and 9% in organic constant currency |
| GAAP EPS of $1.72; earnings well above guidance, with non-GAAP EPS of $2.21 |
| Operational excellence drove gross margin expansion of 40 basis points and adjusted operating margin expansion of 20 basis points |
| Strong operating cash flow generation at $263 million; free cash flow of $234 million was 37% of sales |
| Full-year guidance maintained at -0.5% to +1.5% organic constant currency sales growth and non-GAAP EPS of $11.75 to $12.05 |
First Quarter 2024
MILFORD, Mass., May 7, 2024 - Waters Corporation (NYSE: WAT) today announced its financial results for the first quarter of 2024.
Sales for the first quarter of 2024 were $637 million, a decrease of 7% as reported, compared to sales of $685 million for the first quarter of 2023. Currency translation decreased sales by 1%, while the impact of acquisitions increased sales by 3%.
On a GAAP basis, diluted earnings per share (EPS) for the first quarter of 2024 was $1.72, compared to $2.38 for the first quarter of 2023. On a non-GAAP basis, EPS was $2.21, compared to $2.49 for the first quarter of 2023. This includes a headwind of approximately 4% due to unfavorable foreign exchange.
Our first quarter revenues were at the high end of our guidance as our team continues to execute well, said Dr. Udit Batra, President & CEO, Waters Corporation. The margin expansion we delivered reflects the strength of our operational performance, especially when considering current volume and foreign exchange headwinds.
Dr. Batra continued, With our steady stream of innovative new products and focus on higher growth areas, we are well-positioned in our attractive end-markets.
Other Highlights
During the first quarter of 2024, sales into the pharmaceutical market decreased 3% as reported and 6% in organic constant currency, sales into the industrial market decreased 7% as reported and in organic constant currency, and sales into the academic and government market decreased 25% as reported and 30% in organic constant currency.
During the quarter, instrument system sales decreased 20% as reported and 25% in organic constant currency, while recurring revenues, which represent the combination of service and precision chemistries, increased 3% as reported and in organic constant currency.
Geographically, sales in Asia during the quarter decreased 18% as reported and 16% in organic constant currency. Sales in the Americas decreased 2% as reported and 8% in organic constant currency. Sales in Europe increased 2% as reported and decreased 3% in organic constant currency.
Unless otherwise noted, sales growth and decline percentages are presented on an as-reported basis. A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Companys website www.waters.com in the Investor Relations section.
Full-Year and Second Quarter 2024 Financial Guidance
Full-Year 2024 Financial Guidance
The Company continues to expect full-year 2024 organic constant currency sales growth to be in the range of -0.5% to +1.5%. Currency translation is expected to decrease full-year sales growth by slightly less than 1%. M&A contribution from the Wyatt transaction covering the first four-and-a-half months of the year is expected to increase full-year reported sales growth by slightly over 1%. The resulting full-year 2024 reported sales growth is expected in the range of 0.0% to +2.0%.
The Company expects full-year 2024 non-GAAP EPS to be in the range of $11.75 to $12.05, which includes an estimated headwind of approximately 2% due to unfavorable foreign exchange.
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full year.
Second Quarter 2024 Financial Guidance
The Company expects second quarter 2024 organic constant currency sales growth to be in the range of -6.0% to -4.0%. Currency translation is expected to decrease second quarter sales growth by approximately 2%. M&A contribution from the Wyatt transaction covering the first-month-and-a-half of the quarter is expected to increase second quarter reported sales growth by approximately 1.5%. The resulting second quarter 2024 reported sales growth is expected in the range of -6.5% to -4.5%.
The Company expects second quarter 2024 non-GAAP EPS to be in the range of $2.50 to $2.60, which includes an estimated headwind of approximately 4% due to unfavorable foreign exchange.
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the second quarter.
Conference Call Details
Waters Corporation will webcast its first quarter 2024 financial results conference call today, May 7, 2024, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select Investor Relations under the About Waters section, navigate to Events & Presentations, and click on the Webcast. A replay will be available through June 4, 2024 on the same website by webcast and also by phone at (800) 839-9317.
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, food, and environmental sciences for more than 65 years. With approximately 7,700 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 organic constant currency growth rates, 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 U.S. generally accepted accounting principles (GAAP). The Companys 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 managements financial and operational decision-making, including evaluation of the Companys 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 Companys 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 Companys business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Companys reported results of operations, management strongly encourages investors to review the Companys 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 Companys 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, and expectations or ability to realize commercial success of the Wyatt transaction; the impact of this transaction on the Companys business, anticipated progress on Waters research programs, development of new analytical instruments and associated software or consumables, manufacturing development and capabilities; the increased indebtedness of the Company as a result of the Wyatt transaction, the repayment of which could impact the Companys future results, market prospects for its products and sales and earnings guidance; foreign currency exchange rate fluctuations potentially affecting translation of the Companys future non-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar; current global economic, sovereign and political conditions and uncertainties, including the effect of new or proposed tariff or trade regulations as well as other new or changed domestic and foreign laws, regulations and policies; changes in inflation and interest rates; the impacts and costs of war, in particular as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East, and the possibility of further escalation resulting in new geopolitical and regulatory instability; the Chinese governments ongoing tightening of restrictions on procurement by government-funded customers; the Companys ability to access capital, maintain liquidity and service the Companys debt in volatile market conditions; risks related to the effects of any pandemic on our business, financial condition, results of operations and prospects; changes in timing and demand for the Companys products among the Companys customers and various market sectors, particularly as a result of fluctuations in their expenditures or ability to obtain funding; the ability to realize the expected benefits related to the Companys various cost-saving initiatives, including workforce reductions and organizational restructurings; the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers; changes in the competitive landscape as a result of changes in ownership, mergers and continued consolidation among the Companys competitors; regulatory, economic and competitive obstacles to new product introductions; lack of acceptance of new products and inability to grow organically through innovation; rapidly changing technology and product obsolescence; risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures, including risks associated with achieving the anticipated financial results and operational synergies; contingent purchase price payments and expansion of our business into new or developing markets; risks associated with unexpected disruptions in operations; failure to adequately protect the Companys intellectual property, infringement of intellectual property rights of third parties and inability to obtain licenses on commercially reasonable terms; the Companys ability to acquire adequate sources of supply and its reliance on outside contractors for certain components and modules, as well as disruptions to its supply chain; risks associated with third-party sales intermediaries and resellers; the impact and costs of changes in statutory or contractual tax rates in jurisdictions in which the Company operates as well as shifts in taxable income among jurisdictions with different effective tax rates, the outcome of ongoing and future tax examinations and changes in legislation affecting the Companys effective tax rate; the Companys ability to attract and retain qualified employees and management personnel; risks associated with cybersecurity and technology, including attempts by third parties to defeat the security measures of the Company and its third-party partners; increased regulatory burdens as the Companys business evolves, especially with respect to the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, among others, and in connection with government contracts; regulatory, environmental and logistical obstacles affecting the distribution of the Companys products, completion of purchase order documentation and the ability of customers to obtain letters of credit or other financing alternatives; risks associated with litigation and other legal and regulatory proceedings; and the impact and costs incurred from changes in accounting principles and practices. Such factors and others are discussed more fully in the sections entitled Forward-Looking Statements and Risk Factors of the Companys annual report
on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (SEC), which discussions are incorporated by reference in this release, as updated by the Companys future filings with the SEC. The forward-looking statements included in this release represent the Companys estimates or views as of the date of this release and should not be relied upon as representing the Companys estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended | ||||||||
March 30, 2024 | April 1, 2023 | |||||||
Net sales |
$ | 636,839 | $ | 684,674 | ||||
Costs and operating expenses: |
||||||||
Cost of sales |
261,786 | 284,380 | ||||||
Selling and administrative expenses |
174,536 | 181,956 | ||||||
Research and development expenses |
44,595 | 42,691 | ||||||
Purchased intangibles amortization |
11,834 | 1,479 | ||||||
Litigation provision |
10,242 | | ||||||
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Operating income |
133,846 | 174,168 | ||||||
Other income, net |
2,259 | 1,388 | ||||||
Interest expense, net |
(21,249 | ) | (10,383 | ) | ||||
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Income from operations before income taxes |
114,856 | 165,173 | ||||||
Provision for income taxes |
12,660 | 24,250 | ||||||
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Net income |
$ | 102,196 | $ | 140,923 | ||||
Net income per basic common share |
$ | 1.73 | $ | 2.39 | ||||
Weighted-average number of basic common shares |
59,232 | 59,023 | ||||||
Net income per diluted common share |
$ | 1.72 | $ | 2.38 | ||||
Weighted-average number of diluted common shares and equivalents |
59,431 | 59,317 |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Three Months Ended March 30, 2024 and April 1, 2023
(In thousands)
Three Months Ended | Percent | Impact of | Impact of | Organic Constant Currency |
||||||||||||||||||||
March 30, 2024 | April 1, 2023 | Change | Currency | Acquisitions | Growth Rate (a) | |||||||||||||||||||
NET SALES - OPERATING SEGMENTS |
||||||||||||||||||||||||
Waters |
$ | 561,899 | $ | 602,075 | (7 | %) | (1 | %) | 4 | % | (10 | %) | ||||||||||||
TA |
74,940 | 82,599 | (9 | %) | (1 | %) | 0 | % | (9 | %) | ||||||||||||||
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Total |
$ | 636,839 | $ | 684,674 | (7 | %) | (1 | %) | 3 | % | (9 | %) | ||||||||||||
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NET SALES - PRODUCTS & SERVICES |
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Instruments |
$ | 241,944 | $ | 302,942 | (20 | %) | 0 | % | 5 | % | (25 | %) | ||||||||||||
Service |
260,688 | 248,217 | 5 | % | (1 | %) | 2 | % | 4 | % | ||||||||||||||
Chemistry |
134,207 | 133,515 | 1 | % | (1 | %) | 0 | % | 2 | % | ||||||||||||||
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Total Recurring |
394,895 | 381,732 | 3 | % | (1 | %) | 2 | % | 3 | % | ||||||||||||||
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Total |
$ | 636,839 | $ | 684,674 | (7 | %) | (1 | %) | 3 | % | (9 | %) | ||||||||||||
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NET SALES - GEOGRAPHY |
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Asia |
$ | 207,559 | $ | 253,081 | (18 | %) | (3 | %) | 1 | % | (16 | %) | ||||||||||||
Americas |
241,171 | 246,421 | (2 | %) | 0 | % | 6 | % | (8 | %) | ||||||||||||||
Europe |
188,109 | 185,172 | 2 | % | 2 | % | 2 | % | (3 | %) | ||||||||||||||
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Total |
$ | 636,839 | $ | 684,674 | (7 | %) | (1 | %) | 3 | % | (9 | %) | ||||||||||||
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NET SALES - MARKETS |
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Pharmaceutical |
$ | 374,207 | $ | 384,898 | (3 | %) | (1 | %) | 4 | % | (6 | %) | ||||||||||||
Industrial |
195,334 | 209,650 | (7 | %) | (1 | %) | 1 | % | (7 | %) | ||||||||||||||
Academic & Government |
67,298 | 90,126 | (25 | %) | 2 | % | 3 | % | (30 | %) | ||||||||||||||
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Total |
$ | 636,839 | $ | 684,674 | (7 | %) | (1 | %) | 3 | % | (9 | %) | ||||||||||||
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(a) | The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporations net sales. Organic constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. 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 March 30, 2024 and April 1, 2023
(In thousands, except per share data)
Selling & Administrative Expenses (a) |
Research & Development Expenses |
Operating Income |
Operating Income Percentage |
Other Income |
Income from Operations before Income Taxes |
Provision for Income Taxes |
Net Income |
Diluted Earnings per Share |
||||||||||||||||||||||||||||
Three Months Ended March 30, 2024 |
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GAAP |
$ | 196,612 | $ | 44,595 | $ | 133,846 | 21.0 | % | $ | 2,259 | $ | 114,856 | $ | 12,660 | $ | 102,196 | $ | 1.72 | ||||||||||||||||||
Adjustments: |
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Purchased intangibles amortization (b) |
(11,834 | ) | | 11,834 | 1.9 | % | | 11,834 | 2,832 | 9,002 | 0.15 | |||||||||||||||||||||||||
Litigation provision (c) |
(10,242 | ) | | 10,242 | 1.6 | % | | 10,242 | 2,458 | 7,784 | 0.13 | |||||||||||||||||||||||||
Restructuring costs and certain other items (d) |
(8,347 | ) | | 8,347 | 1.3 | % | | 8,347 | 2,055 | 6,292 | 0.11 | |||||||||||||||||||||||||
Retention bonus obligation (f) |
(5,725 | ) | (1,909 | ) | 7,634 | 1.2 | % | | 7,634 | 1,832 | 5,802 | 0.10 | ||||||||||||||||||||||||
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Adjusted Non-GAAP |
$ | 160,464 | $ | 42,686 | $ | 171,903 | 27.0 | % | $ | 2,259 | $ | 152,913 | $ | 21,837 | $ | 131,076 | $ | 2.21 | ||||||||||||||||||
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Three Months Ended April 1, 2023 |
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GAAP |
$ | 183,435 | $ | 42,691 | $ | 174,168 | 25.4 | % | $ | 1,388 | $ | 165,173 | $ | 24,250 | $ | 140,923 | $ | 2.38 | ||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) |
(1,479 | ) | | 1,479 | 0.2 | % | | 1,479 | 335 | 1,144 | 0.02 | |||||||||||||||||||||||||
Restructuring costs and certain other items (d) |
405 | | (405 | ) | (0.1 | %) | | (405 | ) | 256 | (661 | ) | (0.01 | ) | ||||||||||||||||||||||
Acquisition related costs (e) |
(8,342 | ) | | 8,342 | 1.2 | % | | 8,342 | 2,002 | 6,340 | 0.11 | |||||||||||||||||||||||||
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Adjusted Non-GAAP |
$ | 174,019 | $ | 42,691 | $ | 183,584 | 26.8 | % | $ | 1,388 | $ | 174,589 | $ | 26,843 | $ | 147,746 | $ | 2.49 | ||||||||||||||||||
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(a) | Selling & administrative expenses include purchased intangibles amortization. |
(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) | Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly. |
(d) | Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, 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. |
(e) | Acquisition related costs include all incremental expenses incurred, such as advisory, legal, accounting, tax, valuation, and other professional fees. The Company believes that these costs are not normal and do not represent future ongoing business expenses. |
(f) | In connection with the Wyatt acquisition, the Company started to recognize a two-year retention bonus obligation that is contingent upon the employees providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses. |
Waters Corporation and Subsidiaries
Preliminary Condensed Unclassified Consolidated Balance Sheets
(In thousands and unaudited)
March 30, 2024 | December 31, 2023 | |||||||
Cash, cash equivalents and investments |
$ | 338,213 | $ | 395,974 | ||||
Accounts receivable |
626,329 | 702,168 | ||||||
Inventories |
538,634 | 516,236 | ||||||
Property, plant and equipment, net |
633,594 | 639,073 | ||||||
Intangible assets, net |
611,147 | 629,187 | ||||||
Goodwill |
1,297,826 | 1,305,446 | ||||||
Other assets |
463,221 | 438,770 | ||||||
Total assets |
$ | 4,508,964 | $ | 4,626,854 | ||||
Notes payable and debt |
$ | 2,055,761 | $ | 2,355,513 | ||||
Other liabilities |
1,196,678 | 1,121,000 | ||||||
Total liabilities |
3,252,439 | 3,476,513 | ||||||
Total stockholders equity |
1,256,525 | 1,150,341 | ||||||
Total liabilities and stockholders equity |
$ | 4,508,964 | $ | 4,626,854 |
Waters Corporation and Subsidiaries
Preliminary Condensed Consolidated Statements of Cash Flows
Three Months Ended March 30, 2024 and April 1, 2023
(In thousands and unaudited)
Three Months Ended | ||||||||
March 30, 2024 | April 1, 2023 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 102,196 | $ | 140,923 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Stock-based compensation |
10,913 | 12,805 | ||||||
Depreciation and amortization |
48,514 | 31,154 | ||||||
Change in operating assets and liabilities and other, net |
101,247 | 11,869 | ||||||
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Net cash provided by operating activities |
262,870 | 196,751 | ||||||
Cash flows from investing activities: |
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Additions to property, plant, equipment and software capitalization |
(28,655 | ) | (34,390 | ) | ||||
Investments in unaffiliated companies |
(1,064 | ) | | |||||
Net change in investments |
(25 | ) | (16 | ) | ||||
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Net cash used in investing activities |
(29,744 | ) | (34,406 | ) | ||||
Cash flows from financing activities: |
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Net change in debt |
(300,000 | ) | (94,960 | ) | ||||
Proceeds from stock plans |
13,932 | 2,378 | ||||||
Purchases of treasury shares |
(13,089 | ) | (69,505 | ) | ||||
Other cash flow from financing activities, net |
6,981 | 2,876 | ||||||
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Net cash used in financing activities |
(292,176 | ) | (159,211 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
1,264 | 2,407 | ||||||
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(Decrease) increase in cash and cash equivalents |
(57,786 | ) | 5,541 | |||||
Cash and cash equivalents at beginning of period |
395,076 | 480,529 | ||||||
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Cash and cash equivalents at end of period |
$ | 337,290 | $ | 486,070 | ||||
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Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | ||||||||
Net cash provided by operating activities - GAAP |
$ | 262,870 | $ | 196,751 | ||||
Adjustments: |
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Additions to property, plant, equipment and software capitalization |
(28,655 | ) | (34,390 | ) | ||||
Litigation settlements received, net |
(375 | ) | (375 | ) | ||||
Major facility renovations |
| 4,466 | ||||||
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Free Cash Flow - Adjusted Non-GAAP |
$ | 233,840 | $ | 166,452 | ||||
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(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 June 29, 2024 |
Twelve Months Ended December 31, 2024 |
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Range | Range | |||||||||||||||||||||||
Projected Sales |
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Organic constant currency sales growth rate (a) |
(6.0% | ) | - | (4.0% | ) | (0.5% | ) | - | 1.5% | |||||||||||||||
Impact of: |
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Currency translation |
(2.0% | ) | - | (2.0% | ) | (0.6% | ) | - | (0.6% | ) | ||||||||||||||
Acquisitions |
1.5% | - | 1.5% | 1.1% | - | 1.1% | ||||||||||||||||||
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Sales growth rate as reported |
(6.5% | ) | - | (4.5% | ) | 0.0% | - | 2.0% | ||||||||||||||||
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Range | Range | |||||||||||||||||||||||
Projected Earnings Per Diluted Share |
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GAAP earnings per diluted share |
$ | 2.28 | - | $ | 2.38 | $ | 10.90 | - | $ | 11.20 | ||||||||||||||
Adjustments: |
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Purchased intangibles amortization |
$ | 0.15 | - | $ | 0.15 | $ | 0.60 | - | $ | 0.60 | ||||||||||||||
Retention bonus obligation |
$ | 0.07 | - | $ | 0.07 | $ | 0.25 | - | $ | 0.25 | ||||||||||||||
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Adjusted non-GAAP earnings per diluted share |
$ | 2.50 | - | $ | 2.60 | $ | 11.75 | - | $ | 12.05 | ||||||||||||||
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(a) | Organic constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. 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.
Document and Entity Information |
May 07, 2024 |
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Cover [Abstract] | |
Entity Registrant Name | WATERS CORP /DE/ |
Security Exchange Name | NYSE |
Amendment Flag | false |
Entity Central Index Key | 0001000697 |
Document Type | 8-K |
Document Period End Date | May 07, 2024 |
Entity Incorporation State Country Code | DE |
Entity File Number | 01-14010 |
Entity Tax Identification Number | 13-3668640 |
Entity Address, Address Line One | 34 Maple Street |
Entity Address, City or Town | Milford |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01757 |
City Area Code | (508) |
Local Phone Number | 478-2000 |
Written Communications | false |
Soliciting Material | false |
Pre Commencement Tender Offer | false |
Pre Commencement Issuer Tender Offer | false |
Security 12b Title | Common stock, par value $0.01 per share |
Trading Symbol | WAT |
Entity Emerging Growth Company | false |
1 Year Waters Chart |
1 Month Waters Chart |
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