Waters Corporation (NYSE:WAT) reported today second quarter 2015
sales of $495 million, an increase of 3% in comparison to sales of
$482 million in the second quarter of 2014. Foreign currency
translation reduced sales growth by 7%. On a GAAP basis, earnings
per diluted share (EPS) for the second quarter of 2015 were $1.27
compared to $1.13 for the second quarter of 2014. On a non-GAAP
basis, including the adjustments in the attached reconciliation,
EPS were up 8% to $1.32 compared to $1.22 in the prior year
quarter. A description and reconciliation of GAAP to non-GAAP EPS
is attached and can be found on the Company’s website at
http://www.waters.com under the caption "Investors".
Through the first six months of 2015, sales for the Company were
$955 million, up 5% compared with sales of $912 million in the
first six months of 2014. Foreign currency translation decreased
sales growth during the first half of 2015 by 7%. On a GAAP basis,
EPS for the first six months of 2015 were $2.41 compared to $1.95
for the comparable period in 2014. On a non-GAAP basis and
including adjustments on the attached reconciliation, EPS were
$2.52 in the first six months of 2015 as compared to $2.13 in
2014.
Commenting on the quarter, Douglas A. Berthiaume, Chairman,
President, and Chief Executive Officer, said, “Our strong
performance in the second quarter and first half of 2015
demonstrates the power of our technology-focused strategy and
commitment to customer support. It also showcases our ability to
continuously bring new innovations into the market while
maintaining strong margins and strong free cash flow.”
As communicated in a prior press release, Waters Corporation
will webcast its second quarter 2015 financial results conference
call this morning, July 28, 2015 at 8:30 a.m. eastern time. To
listen to the call, connect to www.waters.com, choose “Investor
Relations” and click on the “Live Webcast”. A replay will be
available through August 4, 2015 at midnight eastern time,
similarly by webcast and also by phone at 203-369-1489.
About Waters Corporation
For over 50 years, Waters Corporation (NYSE:WAT) has created
business advantages for laboratory-dependent organizations by
delivering practical and sustainable innovation to enable
significant advancements in such areas as healthcare delivery,
environmental management, food safety and water quality
worldwide.
Pioneering a connected portfolio of separations science,
laboratory information management, mass spectrometry and thermal
analysis, Waters technology breakthroughs and laboratory solutions
provide an enduring platform for customer success.
With revenue of $1.99 billion in 2014, Waters is driving
scientific discovery and operational excellence for customers
worldwide.
CAUTIONARY STATEMENT
This release may contain “forward-looking” statements regarding
future results and events. For this purpose, any statements that
are not statements of historical fact may be deemed forward-looking
statements. Without limiting the foregoing, the words, “feels”,
“believes”, “anticipates”, “plans”, “expects”, “intends”,
“suggests”, “appears”, “estimates”, “projects”, and similar
expressions, whether in the negative or affirmative, are intended
to identify forward-looking statements. The Company’s actual future
results may differ significantly from the results discussed in the
forward-looking statements within this release for a variety of
reasons, including and without limitation, uncertainties relating
to organizational/leadership transition plans; foreign exchange
rate fluctuations potentially affecting translation of the
Company’s future non-U.S. operating results; the impact on demand
among the Company’s various market sectors from economic, sovereign
and political uncertainties; 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 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 ability
to access capital, maintain liquidity and service our debt in
volatile market conditions, particularly in the U.S., as a large
portion of the Company’s cash is held and operating cash flows are
generated outside the U.S.; environmental and logistical obstacles
affecting the distribution of products and risks associated with
lawsuits and other legal actions, particularly involving claims for
infringement of patents and other intellectual property rights.
Such factors and others are discussed more fully in the sections
entitled “Forward-Looking Statements” and “Risk Factors” of the
Company’s annual report on Form 10-K for the year ended
December 31, 2014 and Form 10-Q for the period ended April 4,
2015 as filed with the Securities and Exchange Commission, which
“Forward-Looking Statements” and “Risk Factors” discussions are
incorporated by reference in this release. The forward-looking
statements included in this release represent the Company’s
estimates or views as of the date of this release report and should
not be relied upon as representing the Company’s estimates or views
as of any date subsequent to the date of this release.
Waters Corporation and SubsidiariesCondensed
Unclassified Consolidated Balance Sheets(In thousands and
unaudited) July 4,
2015 December 31, 2014 Cash, cash
equivalents and investments 2,208,893 2,055,388 Accounts receivable
406,583 433,616 Inventories 272,932 246,430 Property, plant and
equipment, net 324,896 321,583 Intangible assets, net 223,160
232,371 Goodwill 353,340 354,838 Other assets 239,040 233,708 Total
assets 4,028,844 3,877,934 Notes payable and debt
1,560,297 1,465,243 Other liabilities 535,949 518,025 Total
liabilities 2,096,246 1,983,268 Total equity 1,932,598
1,894,666 Total liabilities and equity 4,028,844 3,877,934
Waters Corporation and SubsidiariesConsolidated
Statements of Operations(In thousands, except per share
data)(Unaudited)
Three Months Ended Six Months Ended July 4,
2015
June 28, 2014
July 4, 2015 June 28, 2014 Net sales $ 494,740
$ 481,801 $ 955,144 $ 912,309 Cost of sales 208,707 201,853 397,953
389,572 Gross profit 286,033 279,948 557,191 522,737
Selling and administrative expenses 122,660 131,930 242,411 258,565
Research and development expenses 30,555 26,977 59,506 51,723
Purchased intangibles amortization 2,500 2,646 4,974 5,293
Operating income 130,318 118,395 250,300 207,156 Interest
expense, net (6,546) (6,271) (13,181) (12,302) Income from
operations before income taxes 123,772 112,124 237,119 194,854
Provision for income tax expense 18,115 15,595 35,401 28,023
Net income $ 105,657 $ 96,529 $ 201,718 $ 166,831
Net income per basic common share $ 1.28 $ 1.14 $ 2.44 $
1.97 Weighted-average number of basic common shares 82,564
84,462 82,798 84,731 Net income per diluted common
share $ 1.27 $ 1.13 $ 2.41 $ 1.95 Weighted-average number of
diluted common shares and equivalents 83,332 85,177 83,551 85,538
Waters Corporation and
SubsidiariesQuarterly Reconciliation of GAAP to Adjusted
Non-GAAP Financials(in thousands, except per share data)
The 2015 and 2014 adjusted
amounts presented below are used by the management of the Company
to measure operating performance against prior periods and
forecasts and are not in accordance with generally accepted
accounting principles (GAAP). These Non-GAAP amounts should be
considered supplemental to, and not a substitute for, financial
performance in accordance with GAAP. The Company believes that the
use of Non-GAAP measures, such as Adjusted Non-GAAP Earnings Per
Share (EPS) and Adjusted Non-GAAP Operating Income, helps
management and investors gain a better understanding of the
Company's core operating results, and is consistent with how
management measures performance for purposes of executive
compensation and forecasts the Company’s performance. The
reconciliation identifies items management has excluded as
non-operational items. Management has excluded the following items:
*Purchased Intangibles Amortization was excluded to allow
for comparisons of operating results that are consistent over
periods of time. *Restructuring Costs, Asset Impairments,
Acquisition-Related Costs and Other One-Time Costs were excluded as
the Company believes that costs to consolidate operations, reduce
overhead and complete acquisitions are infrequent or unusual and
are not indicative of normal operating costs. *Infrequent
Income Tax Items were excluded as these costs and benefits are
typically the result of audit examination settlements, updates in
management's assessment of ongoing examinations or other unusual
tax items and are not indicative of the Company’s normal or future
income tax expense.
(Unaudited) Three Months
Ended Six Months Ended July 4, 2015 June 28,
2014 July 4, 2015 June 28, 2014 GAAP
Selling and Administrative Expenses (including Purchased
Intangibles Amortization) $ (125,160) $ (134,576) $ (247,385) $
(263,858) Purchased Intangibles Amortization 2,500 2,646 4,974
5,293 Restructuring Costs, Asset Impairments, Acquisition-Related
Costs & Other One-Time Costs 2,016 6,048
3,288 14,366 Adjusted Non-GAAP Selling &
Administrative Expenses $ (120,644) $
(125,882) $ (239,123) $ (244,199) GAAP
Operating Income $ 130,318 $ 118,395 $ 250,300 $ 207,156 Purchased
Intangibles Amortization 2,500 2,646 4,974 5,293 Restructuring
Costs, Asset Impairments, Acquisition-Related Costs & Other
One-Time Costs 2,016 6,048 3,288
14,366 Adjusted Non-GAAP Operating Income $ 134,834
$ 127,089 $ 258,562 $ 226,815
GAAP Provision for Income Tax Expense $ (18,115) $ (15,595) $
(35,401) $ (28,023) Purchased Intangibles Amortization (717) (759)
(1,421) (1,502) Restructuring Costs, Asset Impairments,
Acquisition-Related Costs & Other One-Time Costs (636) (1,444)
(999) (4,204) Infrequent Income Tax Items 793
850 3,199 1,707 Adjusted Non-GAAP Provision for
Income Tax Expense $ (18,675) $ (16,948)
$ (34,622) $ (32,022) GAAP Net Income $
105,657 $ 96,529 $ 201,718 $ 166,831 Purchased Intangibles
Amortization 1,783 1,887 3,553 3,791 Restructuring Costs, Asset
Impairments, Acquisition-Related Costs & Other One-Time Costs
1,380 4,604 2,289 10,162 Infrequent Income Tax Items
793 850 3,199 1,707 Adjusted Non-GAAP Net
Income $ 109,613 $ 103,870 $ 210,759
$ 182,491 GAAP EPS $ 1.27 $ 1.13 $ 2.41 $ 1.95
Purchased Intangibles Amortization 0.02 0.02 0.04 0.04
Restructuring Costs, Asset Impairments, Acquisition-Related Costs
& Other One-Time Costs 0.02 0.05 0.03 0.12 Infrequent Income
Tax Items 0.01 0.01 0.04 0.02
Adjusted Non-GAAP EPS $ 1.32 $ 1.22 $
2.52 $ 2.13
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150728005267/en/
Waters CorporationJohn Lynch, 508-482-2314Vice President,
Treasurer and Investor Relations
Waters (NYSE:WAT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Waters (NYSE:WAT)
Historical Stock Chart
From Apr 2023 to Apr 2024