Waters Corporation (NYSE: WAT) Reports Fourth Quarter and Full-Year 2023 Financial Results
Highlights
Fourth Quarter 2023
-
Sales of
$819 million declined 4.5% as reported and 8% in organic constant currency, in line with guidance - Operational excellence drove gross margin expansion of 170 basis points and adjusted operating margin expansion of 120 basis points
-
Non-GAAP EPS of
$3.62 at the high end of guidance ; GAAP EPS of$3.65
Full-Year 2023
-
Strong execution in tough market conditions delivered sales of
$2,956 million , a decline of 0.5% as reported and 2% in organic constant currency, as expected - Wyatt acquisition delivered an on-target M&A contribution of 2.5% to sales
- Gross margin expanded 160 basis points to 59.6% and adjusted operating margin expanded 70 basis points to 30.9%
Sales for the fourth quarter of 2023 were
On a GAAP basis, diluted earnings per share (EPS) for the fourth quarter of 2023 were
For fiscal year 2023, the Company's sales were
On a GAAP basis, EPS for fiscal year 2023 was
"Waters results in 2023 demonstrate our teams' strong focus on execution, the competitiveness of our new products, and the resilience of demand in QA/QC and high-volume applications," said Dr. Udit Batra, President & CEO,
Fourth Quarter 2023
During the fourth quarter of 2023, sales into the pharmaceutical market decreased 6% as reported and 11% in organic constant currency, sales into the industrial market decreased 3% as reported and 4% in organic constant currency, and sales into the academic and government markets decreased 2% as reported and 9% in organic constant currency.
During the quarter, instrument system sales decreased 14% as reported and 20% in organic constant currency, while recurring revenues, which represent the combination of service and precision chemistries, increased 7% as reported and 5% in organic constant currency.
Geographically, sales in
Full-Year 2023
For fiscal year 2023, sales into the pharmaceutical market decreased 3% as reported and 5% in organic constant currency, sales into the industrial market were flat as reported and in organic constant currency, and sales into the academic and government markets increased 13% as reported and 10% in organic constant currency.
For fiscal year 2023, instrument system sales decreased 7% as reported and 10% in organic constant currency, while recurring revenues increased 6% as reported and in organic constant currency.
Geographically, sales in
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 Company's website www.waters.com in the Investor Relations section.
Full-Year and First Quarter 2024 Financial Guidance
Full-Year 2024 Financial Guidance
The Company expects 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 approximately 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 1.3%. The resulting full-year 2024 reported sales growth is expected in the range of 0% to +2%.
The Company expects full-year 2024 non-GAAP EPS to be in the range of
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year.
First Quarter 2024 Financial Guidance
The Company expects first quarter 2024 organic constant currency sales growth to be in the range of -11% to -9%. Currency translation is expected to decrease first quarter sales growth by approximately 1%. The Wyatt transaction is expected to increase first quarter reported sales growth by 3.5%. The resulting first quarter 2024 reported sales growth is expected in the range of -8.5% to -6.5%.
The Company expects first quarter 2024 non-GAAP EPS to be in the range of
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the first quarter.
Conference Call Details
About
Non-GAAP Financial Measures
This press release contains financial measures, such as organic 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
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, and expectations or ability to realize commercial success of the Wyatt transaction; the impact of this transaction on the Company's 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 Company's future results, market prospects for its products and sales and earnings guidance; foreign currency exchange rate fluctuations potentially affecting translation of the Company's future non-
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Consolidated Statements of Operations |
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(In thousands, except per share data) |
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(Unaudited) |
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Three Months Ended |
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Twelve Months Ended |
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Net sales |
$ 819,474 |
|
$ 858,510 |
|
$ 2,956,416 |
|
$ 2,971,956 |
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|
|
|
|
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|
Costs and operating expenses: |
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|
|
|
|
|
|
Cost of sales |
318,360 |
|
348,190 |
|
1,195,223 |
|
1,248,182 |
Selling and administrative expenses |
180,357 |
|
174,257 |
|
736,014 |
|
658,026 |
Research and development expenses |
44,386 |
|
48,277 |
|
174,945 |
|
176,190 |
Purchased intangibles amortization |
12,148 |
|
1,503 |
|
32,558 |
|
6,366 |
Acquired in-process research and development |
- |
|
- |
|
- |
|
9,797 |
|
|
|
|
|
|
|
|
Operating income |
264,223 |
|
286,283 |
|
817,676 |
|
873,395 |
|
|
|
|
|
|
|
|
Other (expense) income, net |
(557) |
|
(372) |
|
807 |
|
2,228 |
Interest expense, net |
(26,066) |
|
(10,415) |
|
(82,240) |
|
(37,777) |
|
|
|
|
|
|
|
|
Income from operations before income taxes |
237,600 |
|
275,496 |
|
736,243 |
|
837,846 |
|
|
|
|
|
|
|
|
Provision for income taxes |
21,395 |
|
48,434 |
|
94,009 |
|
130,091 |
|
|
|
|
|
|
|
|
Net income |
$ 216,205 |
|
$ 227,062 |
|
$ 642,234 |
|
$ 707,755 |
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Net income per basic common share |
$ 3.66 |
|
$ 3.83 |
|
$ 10.87 |
|
$ 11.80 |
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|
|
|
|
|
|
Weighted-average number of basic common shares |
59,142 |
|
59,329 |
|
59,076 |
|
59,985 |
|
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|
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|
|
|
|
|
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|
|
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|
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|
Net income per diluted common share |
$ 3.65 |
|
$ 3.81 |
|
$ 10.84 |
|
$ 11.73 |
|
|
|
|
|
|
|
|
Weighted-average number of diluted common shares and equivalents |
59,311 |
|
59,644 |
|
59,270 |
|
60,331 |
|
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Reconciliation of GAAP to Adjusted Non-GAAP |
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Three Months Ended |
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(In thousands) |
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Organic |
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Constant |
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Three Months Ended |
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Percent |
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Impact of |
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Impact of |
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Currency |
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Change |
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Currency |
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Acquisitions |
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Growth Rate (a) |
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Waters |
|
$ |
716,932 |
|
$ |
754,753 |
|
(5 %) |
|
0 % |
|
4 % |
|
(9 %) |
TA |
|
|
102,542 |
|
|
103,757 |
|
(1 %) |
|
1 % |
|
0 % |
|
(2 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
819,474 |
|
$ |
858,510 |
|
(5 %) |
|
0 % |
|
3 % |
|
(8 %) |
|
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|
|
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Instruments |
|
$ |
397,201 |
|
$ |
463,038 |
|
(14 %) |
|
1 % |
|
5 % |
|
(20 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
278,888 |
|
|
255,734 |
|
9 % |
|
1 % |
|
2 % |
|
6 % |
Chemistry |
|
|
143,385 |
|
|
139,738 |
|
3 % |
|
0 % |
|
0 % |
|
3 % |
Total Recurring |
|
|
422,273 |
|
|
395,472 |
|
7 % |
|
0 % |
|
2 % |
|
5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
819,474 |
|
$ |
858,510 |
|
(5 %) |
|
0 % |
|
3 % |
|
(8 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
261,893 |
|
$ |
319,465 |
|
(18 %) |
|
(3 %) |
|
1 % |
|
(16 %) |
|
|
|
303,746 |
|
|
293,118 |
|
4 % |
|
0 % |
|
6 % |
|
(2 %) |
|
|
|
253,835 |
|
|
245,927 |
|
3 % |
|
6 % |
|
4 % |
|
(6 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
819,474 |
|
$ |
858,510 |
|
(5 %) |
|
0 % |
|
3 % |
|
(8 %) |
|
|
|
|
|
|
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|
|
|
|
|
|
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|
Pharmaceutical |
|
$ |
463,698 |
|
$ |
492,763 |
|
(6 %) |
|
1 % |
|
4 % |
|
(11 %) |
Industrial |
|
|
260,249 |
|
|
267,923 |
|
(3 %) |
|
(0 %) |
|
1 % |
|
(4 %) |
Academic & Government |
|
|
95,527 |
|
|
97,824 |
|
(2 %) |
|
1 % |
|
7 % |
|
(9 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
819,474 |
|
$ |
858,510 |
|
(5 %) |
|
0 % |
|
3 % |
|
(8 %) |
|
|
|
|
|
|
|
|
(a) |
The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of |
|
||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP |
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|
||||||||||||||
Twelve Months Ended |
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(In thousands) |
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Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant |
|
|
Twelve Months Ended |
|
Percent |
|
Impact of |
|
Impact of |
|
Currency |
||||
|
|
|
|
|
|
Change |
|
Currency |
|
Acquisitions |
|
Growth Rate (a) |
||
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|
|
|
|
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|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waters |
|
$ |
2,601,590 |
|
$ |
2,626,462 |
|
(1 %) |
|
(1 %) |
|
3 % |
|
(3 %) |
TA |
|
|
354,826 |
|
|
345,494 |
|
3 % |
|
(0 %) |
|
0 % |
|
3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,956,416 |
|
$ |
2,971,956 |
|
(1 %) |
|
(1 %) |
|
3 % |
|
(2 %) |
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments |
|
$ |
1,361,581 |
|
$ |
1,462,770 |
|
(7 %) |
|
(1 %) |
|
4 % |
|
(10 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
1,053,366 |
|
|
983,787 |
|
7 % |
|
(1 %) |
|
2 % |
|
7 % |
Chemistry |
|
|
541,469 |
|
|
525,399 |
|
3 % |
|
(1 %) |
|
0 % |
|
4 % |
Total Recurring |
|
|
1,594,835 |
|
|
1,509,186 |
|
6 % |
|
(1 %) |
|
1 % |
|
6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,956,416 |
|
$ |
2,971,956 |
|
(1 %) |
|
(1 %) |
|
3 % |
|
(2 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,007,825 |
|
$ |
1,131,743 |
|
(11 %) |
|
(4 %) |
|
0 % |
|
(7 %) |
|
|
|
1,108,573 |
|
|
1,055,635 |
|
5 % |
|
(0 %) |
|
4 % |
|
1 % |
|
|
|
840,018 |
|
|
784,578 |
|
7 % |
|
3 % |
|
3 % |
|
2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,956,416 |
|
$ |
2,971,956 |
|
(1 %) |
|
(1 %) |
|
3 % |
|
(2 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical |
|
$ |
1,696,875 |
|
$ |
1,751,665 |
|
(3 %) |
|
(1 %) |
|
3 % |
|
(5 %) |
Industrial |
|
|
909,003 |
|
|
909,805 |
|
0 % |
|
(1 %) |
|
1 % |
|
0 % |
Academic & Government |
|
|
350,538 |
|
|
310,486 |
|
13 % |
|
(1 %) |
|
4 % |
|
10 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,956,416 |
|
$ |
2,971,956 |
|
(1 %) |
|
(1 %) |
|
3 % |
|
(2 %) |
|
|
|
|
|
|
|
|
(a) |
The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of |
|
||||||||||||||||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP Financials |
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Three and Twelve Months Ended |
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(In thousands, except per share data) |
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Acquired |
|
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|
|
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Income from |
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|
IPR&D and |
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Operations |
|
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|
|
Selling & |
|
|
Research & |
|
|
|
|
|
Operating |
|
|
Other |
|
|
before |
|
|
Provision for |
|
|
|
|
|
Diluted |
|
|
|
|
Administrative |
|
|
Development |
|
|
Operating |
|
|
Income |
|
|
(Expense) |
|
|
Income |
|
|
Income |
|
|
Net |
|
|
Earnings |
|
|
|
|
Expenses (a) |
|
|
Expenses |
|
|
Income |
|
|
Percentage |
|
|
Income |
|
|
Taxes |
|
|
Taxes |
|
|
Income |
|
|
per Share |
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
192,505 |
|
$ |
44,386 |
|
$ |
264,223 |
|
|
32.2 % |
|
$ |
(557) |
|
$ |
237,600 |
|
$ |
21,395 |
|
$ |
216,205 |
|
$ |
3.65 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(12,148) |
|
|
- |
|
|
12,148 |
|
|
1.5 % |
|
|
- |
|
|
12,148 |
|
|
2,906 |
|
|
9,242 |
|
|
0.16 |
|
Restructuring costs and certain other items (d) |
|
|
(1,036) |
|
|
- |
|
|
1,036 |
|
|
0.1 % |
|
|
130 |
|
|
1,166 |
|
|
266 |
|
|
900 |
|
|
0.02 |
|
Acquisition related costs (e) |
|
|
(649) |
|
|
- |
|
|
649 |
|
|
0.1 % |
|
|
- |
|
|
649 |
|
|
156 |
|
|
493 |
|
|
0.01 |
|
Retention bonus obligation (g) |
|
|
(5,725) |
|
|
(1,909) |
|
|
7,634 |
|
|
0.9 % |
|
|
- |
|
|
7,634 |
|
|
1,832 |
|
|
5,802 |
|
|
0.10 |
|
Certain income tax items (f) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
17,651 |
|
|
(17,651) |
|
|
(0.30) |
Adjusted Non-GAAP |
|
$ |
172,947 |
|
$ |
42,477 |
|
$ |
285,690 |
|
|
34.9 % |
|
$ |
(427) |
|
$ |
259,197 |
|
$ |
44,206 |
|
$ |
214,991 |
|
$ |
3.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
175,760 |
|
$ |
48,277 |
|
$ |
286,283 |
|
|
33.3 % |
|
$ |
(372) |
|
$ |
275,496 |
|
$ |
48,434 |
|
$ |
227,062 |
|
$ |
3.81 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(1,503) |
|
|
- |
|
|
1,503 |
|
|
0.2 % |
|
|
- |
|
|
1,503 |
|
|
346 |
|
|
1,157 |
|
|
0.02 |
|
Restructuring costs and certain other items (d) |
|
|
(1,364) |
|
|
- |
|
|
1,364 |
|
|
0.2 % |
|
|
(120) |
|
|
1,244 |
|
|
278 |
|
|
966 |
|
|
0.02 |
Adjusted Non-GAAP |
|
$ |
172,893 |
|
$ |
48,277 |
|
$ |
289,150 |
|
|
33.7 % |
|
$ |
(492) |
|
$ |
278,243 |
|
$ |
49,058 |
|
$ |
229,185 |
|
$ |
3.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
768,572 |
|
$ |
174,945 |
|
$ |
817,676 |
|
|
27.7 % |
|
$ |
807 |
|
$ |
736,243 |
|
$ |
94,009 |
|
$ |
642,234 |
|
$ |
10.84 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(32,558) |
|
|
- |
|
|
32,558 |
|
|
1.1 % |
|
|
- |
|
|
32,558 |
|
|
7,758 |
|
|
24,800 |
|
|
0.42 |
|
Restructuring costs and certain other items (d) |
|
|
(29,917) |
|
|
- |
|
|
29,917 |
|
|
1.0 % |
|
|
(521) |
|
|
29,396 |
|
|
7,126 |
|
|
22,270 |
|
|
0.38 |
|
Acquisition related costs (e) |
|
|
(13,947) |
|
|
- |
|
|
13,947 |
|
|
0.5 % |
|
|
- |
|
|
13,947 |
|
|
3,347 |
|
|
10,600 |
|
|
0.18 |
|
Retention bonus obligation (g) |
|
|
(14,093) |
|
|
(4,699) |
|
|
18,792 |
|
|
0.6 % |
|
|
- |
|
|
18,792 |
|
|
4,510 |
|
|
14,282 |
|
|
0.24 |
|
Certain income tax items (f) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
17,651 |
|
|
(17,651) |
|
|
(0.30) |
Adjusted Non-GAAP |
|
$ |
678,057 |
|
$ |
170,246 |
|
$ |
912,890 |
|
|
30.9 % |
|
$ |
286 |
|
$ |
830,936 |
|
$ |
134,401 |
|
$ |
696,535 |
|
$ |
11.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
664,392 |
|
$ |
185,987 |
|
$ |
873,395 |
|
|
29.4 % |
|
$ |
2,228 |
|
$ |
837,846 |
|
$ |
130,091 |
|
$ |
707,755 |
|
$ |
11.73 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(6,366) |
|
|
- |
|
|
6,366 |
|
|
0.2 % |
|
|
- |
|
|
6,366 |
|
|
1,461 |
|
|
4,905 |
|
|
0.08 |
|
Acquired in-process research and development (c) |
|
|
- |
|
|
(9,797) |
|
|
9,797 |
|
|
0.3 % |
|
|
- |
|
|
9,797 |
|
|
2,351 |
|
|
7,446 |
|
|
0.12 |
|
Restructuring costs and certain other items (d) |
|
|
(8,551) |
|
|
- |
|
|
8,551 |
|
|
0.3 % |
|
|
(3,273) |
|
|
5,278 |
|
|
1,186 |
|
|
4,092 |
|
|
0.07 |
|
Certain income tax items (f) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(994) |
|
|
994 |
|
|
0.02 |
Adjusted Non-GAAP |
|
$ |
649,475 |
|
$ |
176,190 |
|
$ |
898,109 |
|
|
30.2 % |
|
$ |
(1,045) |
|
$ |
859,287 |
|
$ |
134,095 |
|
$ |
725,192 |
|
$ |
12.02 |
|
|
|
|
|
|
|
|
(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) |
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 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) |
Certain income tax items were excluded as these non-cash expenses and benefits represent updates in management's assessment of ongoing examinations, tax audit settlements, or other tax items that are not indicative of the Company's normal or future income tax expense. |
||||||
(g) |
In connection with the Wyatt acquisition, the Company started to recognize a two-year retention bonus obligation that is contingent upon the employee's 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. |
|
||||
Preliminary Condensed Unclassified Consolidated Balance Sheets |
||||
(In thousands and unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and investments |
|
$ 395,974 |
|
$ 481,391 |
Accounts receivable |
|
702,168 |
|
722,892 |
Inventories |
|
516,236 |
|
455,710 |
Property, plant and equipment, net |
|
639,073 |
|
582,217 |
Intangible assets, net |
|
629,187 |
|
227,399 |
|
|
1,305,446 |
|
430,328 |
Other assets |
|
438,770 |
|
381,516 |
Total assets |
|
$ 4,626,854 |
|
$ 3,281,453 |
|
|
|
|
|
|
|
|
|
|
Notes payable and debt |
|
$ 2,355,513 |
|
$ 1,574,878 |
Other liabilities |
|
1,121,000 |
|
1,202,087 |
Total liabilities |
|
3,476,513 |
|
2,776,965 |
|
|
|
|
|
Total stockholders' equity |
|
1,150,341 |
|
504,488 |
Total liabilities and stockholders' equity |
|
$ 4,626,854 |
|
$ 3,281,453 |
|
|||||||||||
Preliminary Condensed Consolidated Statements of Cash Flows |
|||||||||||
Three and Twelve Months Ended |
|||||||||||
(In thousands and unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|||
|
Net income |
$ 216,205 |
|
$ 227,062 |
|
|
$ 642,234 |
|
$ 707,755 |
||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||
|
|
Stock-based compensation |
4,644 |
|
11,635 |
|
|
36,868 |
|
42,564 |
|
|
|
Depreciation and amortization |
48,060 |
|
31,318 |
|
|
165,905 |
|
130,423 |
|
|
|
Change in operating assets and liabilities and other, net |
(38,787) |
|
(71,306) |
|
|
(242,198) |
|
(269,081) |
|
|
|
|
Net cash provided by operating activities |
230,122 |
|
198,709 |
|
|
602,809 |
|
611,661 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|||
|
Additions to property, plant, equipment and software capitalization |
(41,588) |
|
(62,184) |
|
|
(160,632) |
|
(175,921) |
||
|
Business acquisitions, net of cash acquired |
3,553 |
|
- |
|
|
(1,282,354) |
|
- |
||
|
Proceeds from equity investments, net |
91 |
|
- |
|
|
742 |
|
8,903 |
||
|
Payments for intellectual property licenses |
- |
|
- |
|
|
- |
|
(7,535) |
||
|
Net change in investments |
- |
|
- |
|
|
(21) |
|
66,586 |
||
|
|
|
Net cash used in investing activities |
(37,944) |
|
(62,184) |
|
|
(1,442,265) |
|
(107,967) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|||
|
Net change in debt |
(150,001) |
|
30,000 |
|
|
779,600 |
|
60,000 |
||
|
Proceeds from stock plans |
11,700 |
|
6,665 |
|
|
29,792 |
|
42,801 |
||
|
Purchases of treasury shares |
156 |
|
(148,894) |
|
|
(70,277) |
|
(626,061) |
||
|
Other cash flow from financing activities, net |
7,658 |
|
783 |
|
|
15,836 |
|
13,627 |
||
|
|
|
Net cash (used in) provided by financing activities |
(130,487) |
|
(111,446) |
|
|
754,951 |
|
(509,633) |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(3,029) |
|
11,813 |
|
|
(948) |
|
(14,766) |
|||
|
|
|
Increase (decrease) in cash and cash equivalents |
58,662 |
|
36,892 |
|
|
(85,453) |
|
(20,705) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
336,414 |
|
443,637 |
|
|
480,529 |
|
501,234 |
|||
|
|
|
Cash and cash equivalents at end of period |
$ 395,076 |
|
$ 480,529 |
|
|
$ 395,076 |
|
$ 480,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities - GAAP |
$ 230,122 |
|
$ 198,709 |
|
|
$ 602,809 |
|
$ 611,661 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||
|
|
Additions to property, plant, equipment and software capitalization |
(41,588) |
|
(62,184) |
|
|
(160,632) |
|
(175,921) |
|
|
|
Tax reform payments |
- |
|
- |
|
|
72,101 |
|
38,454 |
|
|
|
Litigation settlements paid, net |
(375) |
|
- |
|
|
(1,500) |
|
(584) |
|
|
|
Major facility renovations |
3,494 |
|
8,113 |
|
|
15,645 |
|
32,079 |
|
|
|
Payment of acquired Wyatt liabilities (b) |
- |
|
- |
|
|
25,617 |
|
- |
|
Free Cash Flow - Adjusted Non-GAAP |
$ 191,653 |
|
$ 144,638 |
|
|
$ 554,040 |
|
$ 505,689 |
|
|
|
|
|
|
|
|
(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. |
||||||
(b) |
In connection with the Wyatt acquisition, the Company assumed certain obligations of Wyatt and paid those obligations immediately upon closing the transaction. The Company believes that the assumed obligations do not represent future ongoing business expenses. |
|
|||||||||
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||
|
|
|
|
|
|
||||
|
|
|
Range |
|
|
|
Range |
|
|
Projected Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic constant currency sales growth rate (a) |
(11.0 %) |
- |
(9.0 %) |
|
(0.5 %) |
- |
1.5 % |
|
|
Impact of: |
|
|
|
|
|
|
|
|
|
|
Currency translation |
(1.0 %) |
- |
(1.0 %) |
|
(0.8 %) |
- |
(0.8 %) |
|
|
Acquisitions |
3.5 % |
- |
3.5 % |
|
1.3 % |
- |
1.3 % |
|
Sales growth rate as reported |
(8.5 %) |
- |
(6.5 %) |
|
0.0 % |
- |
2.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
|
|
Range |
|
|
Projected Earnings Per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per diluted share |
$ 1.77 |
- |
$ 1.87 |
|
$ 10.80 |
- |
$ 11.10 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization |
$ 0.18 |
- |
$ 0.18 |
|
$ 0.70 |
- |
$ 0.70 |
|
|
Retention bonus obligation |
$ 0.10 |
- |
$ 0.10 |
|
$ 0.25 |
- |
$ 0.25 |
|
Adjusted non-GAAP earnings per diluted share |
$ 2.05 |
- |
$ 2.15 |
|
$ 11.75 |
- |
$ 12.05 |
|
|
|
|
|
|
|
|
|
(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. |
Contact:
View original content:https://www.prnewswire.com/news-releases/waters-corporation-nyse-wat-reports-fourth-quarter-and-full-year-2023-financial-results-302053821.html
SOURCE