Waters Corporation (NYSE: WAT) Reports Second Quarter 2023 Financial Results
- Sales increased by 4% as reported and 3% in organic constant currency
- Operational excellence added 230 basis points of gross margin expansion
- High single-digit organic constant currency growth in the U.S. and Europe
- Wyatt acquisition contributed 2% growth in the quarter
- Pharma sales in China were weak, with a high teens decline
- Diluted EPS decreased from $2.72 to $2.55 on a GAAP basis
Highlights
- Sales of
grew$741 million 4% as reported and3% in organic constant currency - Strength led by double-digit growth in Industrial and Academic & Government
- Operational excellence added 230 basis points of gross margin expansion
- High single-digit organic constant currency growth in the
U.S. andEurope was partially offset by Pharma weakness inChina - Wyatt acquisition ahead of expectations with
2% sales contribution in the quarter
Sales for the second quarter of 2023 were
On a GAAP basis, diluted earnings per share (EPS) for the second quarter of 2023 was
"I want to thank all of our teams for their dedication and focus on commercial execution and innovation, delivering game-changing new products like Xevo TQ Absolute and Alliance iS to address our customers' unmet needs," said Dr. Udit Batra, President & CEO, Waters Corporation. "We saw solid growth across the
Dr. Batra continued, "I am confident that our commercial execution, revitalized portfolio, and continued investment in our high growth adjacencies position us well for future growth. We are also off to a great start with the acquisition of Wyatt, which contributed
Second Quarter 2023
During the second quarter of 2023, sales into the pharmaceutical market decreased
During the quarter, instrument system sales increased
Geographically, sales in
First Half 2023
Sales for the first half of 2023 were
On a GAAP basis, EPS for the first half of 2023 was
For the first half of 2023, sales into the pharmaceutical market decreased
For the first half of 2023, instrument system sales decreased
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 Third Quarter 2023 Financial Guidance
Full-Year 2023 Financial Guidance
The Company now expects full-year 2023 organic constant currency sales growth in the range of
The Company is updating its full-year 2023 non-GAAP EPS guidance to now 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.
Third Quarter 2023 Financial Guidance
The Company expects third quarter 2023 organic constant currency sales growth to decline in the range of -
The Company expects third quarter 2023 non-GAAP EPS in the range of
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the third quarter.
Conference Call Details
Waters Corporation will webcast its second quarter 2023 financial results conference call today, August 2, 2023, 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 August 16, 2023 on the same website by webcast and also by phone at (866) 363-1807.
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 approximately 8,000 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 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, expectations or ability to realize commercial success subsequent to the completion 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-
Waters Corporation and Subsidiaries | |||||||
Consolidated Statements of Operations | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||
Net sales | $ 740,576 | $ 714,319 | $ 1,425,250 | $ 1,404,891 | |||
Costs and operating expenses: | |||||||
Cost of sales | 301,076 | 307,206 | 585,456 | 592,891 | |||
Selling and administrative expenses | 186,953 | 161,877 | 368,909 | 319,352 | |||
Research and development expenses | 45,873 | 44,006 | 88,564 | 84,478 | |||
Purchased intangibles amortization | 6,815 | 1,598 | 8,294 | 3,271 | |||
Acquired in-process research and development | - | - | - | 9,797 | |||
Operating income | 199,859 | 199,632 | 374,027 | 395,102 | |||
Other (expense) income, net | (352) | 1,535 | 1,036 | 1,705 | |||
Interest expense, net | (19,232) | (8,893) | (29,615) | (17,838) | |||
Income from operations before income taxes | 180,275 | 192,274 | 345,448 | 378,969 | |||
Provision for income taxes | 29,721 | 27,410 | 53,971 | 54,274 | |||
Net income | $ 150,554 | $ 164,864 | $ 291,477 | $ 324,695 | |||
Net income per basic common share | $ 2.56 | $ 2.74 | $ 4.97 | $ 5.38 | |||
Weighted-average number of basic common shares | 58,857 | 60,206 | 58,703 | 60,399 | |||
Net income per diluted common share | $ 2.55 | $ 2.72 | $ 4.95 | $ 5.35 | |||
Weighted-average number of diluted common shares and equivalents | 59,010 | 60,510 | 58,909 | 60,744 | |||
Waters Corporation and Subsidiaries | |||||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP | |||||||||||||||||
Net Sales by Operating Segments, Products & Services, Geography and Markets | |||||||||||||||||
Three Months Ended July 1, 2023 and July 2, 2022 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Organic | |||||||||||||||||
Constant | |||||||||||||||||
Three Months Ended | Percent | Impact of | Impact of | Currency | |||||||||||||
July 1, 2023 | July 2, 2022 | Change | Currency | Acquisitions | Growth Rate (a) | ||||||||||||
NET SALES - OPERATING SEGMENTS | |||||||||||||||||
Waters | $ | 653,235 | $ | 635,152 | 3 % | (1 %) | 2 % | 2 % | |||||||||
TA | 87,341 | 79,167 | 10 % | (1 %) | 0 % | 11 % | |||||||||||
Total | $ | 740,576 | $ | 714,319 | 4 % | (1 %) | 2 % | 3 % | |||||||||
NET SALES - PRODUCTS & SERVICES | |||||||||||||||||
Instruments | $ | 342,007 | $ | 337,683 | 1 % | (1 %) | 4 % | (2 %) | |||||||||
Service | 262,650 | 244,689 | 7 % | (2 %) | 1 % | 8 % | |||||||||||
Chemistry | 135,919 | 131,947 | 3 % | (2 %) | 0 % | 5 % | |||||||||||
Total Recurring | 398,569 | 376,636 | 6 % | (2 %) | 1 % | 7 % | |||||||||||
Total | $ | 740,576 | $ | 714,319 | 4 % | (1 %) | 2 % | 3 % | |||||||||
NET SALES - GEOGRAPHY | |||||||||||||||||
$ | 254,623 | $ | 278,010 | (8 %) | (3 %) | 0 % | (5 %) | ||||||||||
282,927 | 257,271 | 10 % | 0 % | 3 % | 7 % | ||||||||||||
203,026 | 179,038 | 13 % | 1 % | 3 % | 9 % | ||||||||||||
Total | $ | 740,576 | $ | 714,319 | 4 % | (1 %) | 2 % | 3 % | |||||||||
NET SALES - MARKETS | |||||||||||||||||
Pharmaceutical | $ | 426,744 | $ | 437,171 | (2 %) | (1 %) | 3 % | (4 %) | |||||||||
Industrial | 229,655 | 208,517 | 10 % | (1 %) | 0 % | 11 % | |||||||||||
Academic & Government | 84,177 | 68,631 | 23 % | (1 %) | 3 % | 21 % | |||||||||||
Total | $ | 740,576 | $ | 714,319 | 4 % | (1 %) | 2 % | 3 % |
(a) | The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's 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 | |||||||||||||||||
Net Sales by Operating Segments, Products & Services, Geography and Markets | |||||||||||||||||
Six Months Ended July 1, 2023 and July 2, 2022 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Organic | |||||||||||||||||
Constant | |||||||||||||||||
Six Months Ended | Percent | Impact of | Impact of | Currency | |||||||||||||
July 1, 2023 | July 2, 2022 | Change | Currency | Acquisitions | Growth Rate (a) | ||||||||||||
NET SALES - OPERATING SEGMENTS | |||||||||||||||||
Waters | $ | 1,255,310 | $ | 1,248,308 | 1 % | (2 %) | 1 % | 2 % | |||||||||
TA | 169,940 | 156,583 | 9 % | (1 %) | 0 % | 10 % | |||||||||||
Total | $ | 1,425,250 | $ | 1,404,891 | 1 % | (3 %) | 1 % | 3 % | |||||||||
NET SALES - PRODUCTS & SERVICES | |||||||||||||||||
Instruments | $ | 644,949 | $ | 662,905 | (3 %) | (2 %) | 2 % | (3 %) | |||||||||
Service | 510,867 | 484,421 | 5 % | (3 %) | 0 % | 8 % | |||||||||||
Chemistry | 269,434 | 257,565 | 5 % | (2 %) | 0 % | 7 % | |||||||||||
Total Recurring | 780,301 | 741,986 | 5 % | (3 %) | 1 % | 7 % | |||||||||||
Total | $ | 1,425,250 | $ | 1,404,891 | 1 % | (3 %) | 1 % | 3 % | |||||||||
NET SALES - GEOGRAPHY | |||||||||||||||||
$ | 507,704 | $ | 532,344 | (5 %) | (5 %) | 0 % | 0 % | ||||||||||
529,348 | 506,108 | 5 % | 0 % | 2 % | 3 % | ||||||||||||
388,198 | 366,439 | 6 % | (2 %) | 2 % | 6 % | ||||||||||||
Total | $ | 1,425,250 | $ | 1,404,891 | 1 % | (3 %) | 1 % | 3 % | |||||||||
NET SALES - MARKETS | |||||||||||||||||
Pharmaceutical | $ | 811,642 | $ | 852,943 | (5 %) | (3 %) | 2 % | (4 %) | |||||||||
Industrial | 439,305 | 417,914 | 5 % | (2 %) | 0 % | 7 % | |||||||||||
Academic & Government | 174,303 | 134,034 | 30 % | (4 %) | 1 % | 33 % | |||||||||||
Total | $ | 1,425,250 | $ | 1,404,891 | 1 % | (3 %) | 1 % | 3 % | |||||||||
(a) | The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's 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 and Six Months Ended July 1, 2023 and July 2, 2022 | |||||||||||||||||||||||||||||
(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 July 1, 2023 | |||||||||||||||||||||||||||||
GAAP | $ | 193,768 | $ | 45,873 | $ | 199,859 | 27.0 % | $ | (352) | $ | 180,275 | $ | 29,721 | $ | 150,554 | $ | 2.55 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (6,815) | - | 6,815 | 0.9 % | - | 6,815 | 1,616 | 5,199 | 0.09 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (5,229) | - | 5,229 | 0.7 % | - | 5,229 | 1,217 | 4,012 | 0.07 | ||||||||||||||||||||
Acquisition related costs (e) | (3,693) | - | 3,693 | 0.5 % | - | 3,693 | 886 | 2,807 | 0.05 | ||||||||||||||||||||
Retention bonus obligation (g) | (2,643) | (881) | 3,524 | 0.5 % | - | 3,524 | 846 | 2,678 | 0.05 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 175,388 | $ | 44,992 | $ | 219,120 | 29.6 % | $ | (352) | $ | 199,536 | $ | 34,286 | $ | 165,250 | $ | 2.80 | ||||||||||||
Three Months Ended July 2, 2022 | |||||||||||||||||||||||||||||
GAAP | $ | 163,475 | $ | 44,006 | $ | 199,632 | 27.9 % | $ | 1,535 | $ | 192,274 | $ | 27,410 | $ | 164,864 | $ | 2.72 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (1,598) | - | 1,598 | 0.2 % | - | 1,598 | 366 | 1,232 | 0.02 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (1,830) | - | 1,830 | 0.3 % | (1,818) | 12 | (5) | 17 | - | ||||||||||||||||||||
Certain income tax items (f) | - | - | - | - | - | - | (506) | 506 | 0.01 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 160,047 | $ | 44,006 | $ | 203,060 | 28.4 % | $ | (283) | $ | 193,884 | $ | 27,265 | $ | 166,619 | $ | 2.75 | ||||||||||||
Six Months Ended July 1, 2023 | |||||||||||||||||||||||||||||
GAAP | $ | 377,203 | $ | 88,564 | $ | 374,027 | 26.2 % | $ | 1,036 | $ | 345,448 | $ | 53,971 | $ | 291,477 | $ | 4.95 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (8,294) | - | 8,294 | 0.6 % | - | 8,294 | 1,951 | 6,343 | 0.11 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (4,824) | - | 4,824 | 0.3 % | - | 4,824 | 1,473 | 3,351 | 0.06 | ||||||||||||||||||||
Acquisition related costs (e) | (12,035) | - | 12,035 | 0.8 % | - | 12,035 | 2,888 | 9,147 | 0.16 | ||||||||||||||||||||
Retention bonus obligation (g) | (2,643) | (881) | 3,524 | 0.2 % | - | 3,524 | 846 | 2,678 | 0.05 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 349,407 | $ | 87,683 | $ | 402,704 | 28.3 % | $ | 1,036 | $ | 374,125 | $ | 61,129 | $ | 312,996 | $ | 5.31 | ||||||||||||
Six Months Ended July 2, 2022 | |||||||||||||||||||||||||||||
GAAP | $ | 322,623 | $ | 94,275 | $ | 395,102 | 28.1 % | $ | 1,705 | $ | 378,969 | $ | 54,274 | $ | 324,695 | $ | 5.35 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (3,271) | - | 3,271 | 0.2 % | - | 3,271 | 749 | 2,522 | 0.04 | ||||||||||||||||||||
Acquired in-process research and development (c) | - | (9,797) | 9,797 | 0.7 % | - | 9,797 | 2,351 | 7,446 | 0.12 | ||||||||||||||||||||
Restucturing costs and certain other items (d) | (4,205) | - | 4,205 | 0.3 % | (2,234) | 1,971 | 456 | 1,515 | 0.02 | ||||||||||||||||||||
Certain income tax items (f) | - | - | - | - | - | - | (994) | 994 | 0.02 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 315,147 | $ | 84,478 | $ | 412,375 | 29.4 % | $ | (529) | $ | 394,008 | $ | 56,836 | $ | 337,172 | $ | 5.55 | ||||||||||||
(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 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. |
Waters Corporation and Subsidiaries | |||||||
Preliminary Condensed Unclassified Consolidated Balance Sheets | |||||||
(In thousands and unaudited) | |||||||
July 1, 2023 | December 31, 2022 | ||||||
Cash, cash equivalents and investments | $ 330,578 | $ 481,391 | |||||
Accounts receivable | 693,436 | 722,892 | |||||
Inventories | 536,828 | 455,710 | |||||
Property, plant and equipment, net | 615,211 | 582,217 | |||||
Intangible assets, net | 649,731 | 227,399 | |||||
Goodwill | 1,313,501 | 430,328 | |||||
Other assets | 408,911 | 381,516 | |||||
Total assets | $ 4,548,196 | $ 3,281,453 | |||||
Notes payable and debt | $ 2,630,198 | $ 1,574,878 | |||||
Other liabilities | 1,146,769 | 1,202,087 | |||||
Total liabilities | 3,776,967 | 2,776,965 | |||||
Total stockholders' equity | 771,229 | 504,488 | |||||
Total liabilities and stockholders' equity | $ 4,548,196 | $ 3,281,453 |
Waters Corporation and Subsidiaries | |||||||||||
Preliminary Condensed Consolidated Statements of Cash Flows | |||||||||||
Three and Six Months Ended July 1, 2023 and July 2, 2022 | |||||||||||
(In thousands and unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ 150,554 | $ 164,864 | $ 291,477 | $ 324,695 | |||||||
Adjustments to reconcile net income to net | |||||||||||
cash provided by operating activities: | |||||||||||
Stock-based compensation | 10,929 | 9,789 | 23,734 | 20,722 | |||||||
Depreciation and amortization | 38,884 | 34,227 | 70,038 | 66,891 | |||||||
Change in operating assets and liabilities and other, net | (182,249) | (151,977) | (170,380) | (157,445) | |||||||
Net cash provided by operating activities | 18,118 | 56,903 | 214,869 | 254,863 | |||||||
Cash flows from investing activities: | |||||||||||
Additions to property, plant, equipment | |||||||||||
and software capitalization | (46,607) | (46,995) | (80,997) | (74,746) | |||||||
Business acquisitions, net of cash acquired | (1,285,907) | - | (1,285,907) | - | |||||||
(Investments in) proceeds from equity investments, net | - | (1,139) | - | 5,646 | |||||||
Payments for intellectual property licenses | - | - | - | (4,897) | |||||||
Net change in investments | - | 21,739 | (16) | 66,594 | |||||||
Net cash used in investing activities | (1,332,514) | (26,395) | (1,366,920) | (7,403) | |||||||
Cash flows from financing activities: | |||||||||||
Net change in debt | 1,149,742 | 40,000 | 1,054,782 | (30,000) | |||||||
Proceeds from stock plans | 6,250 | 18,082 | 8,628 | 30,914 | |||||||
Purchases of treasury shares | (236) | (151,808) | (69,741) | (321,944) | |||||||
Other cash flow from financing activities, net | 2,418 | 10,956 | 5,294 | 10,849 | |||||||
Net cash provided by (used in) financing activities | 1,158,174 | (82,770) | 998,963 | (310,181) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (155) | (8,911) | 2,252 | (19,616) | |||||||
Decrease in cash and cash equivalents | (156,377) | (61,173) | (150,836) | (82,337) | |||||||
Cash and cash equivalents at beginning of period | 486,070 | 480,070 | 480,529 | 501,234 | |||||||
Cash and cash equivalents at end of period | $ 329,693 | $ 418,897 | $ 329,693 | $ 418,897 | |||||||
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | |||||||||||
Net cash provided by operating activities - GAAP | $ 18,118 | $ 56,903 | $ 214,869 | $ 254,863 | |||||||
Adjustments: | |||||||||||
Additions to property, plant, equipment | |||||||||||
and software capitalization | (46,607) | (46,995) | (80,997) | (74,746) | |||||||
Tax reform payments | 72,101 | 38,454 | 72,101 | 38,454 | |||||||
Litigation settlements paid, net | (375) | - | (750) | (584) | |||||||
Major facility renovations | 4,394 | 11,112 | 8,860 | 17,039 | |||||||
Payment of acquired Wyatt liabilities (b) | 25,617 | - | 25,617 | - | |||||||
Free Cash Flow - Adjusted Non-GAAP | $ 73,248 | $ 59,474 | $ 239,700 | $ 235,026 | |||||||
(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. |
Waters Corporation and Subsidiaries | |||||||||||
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
September 30, 2023 | December 31, 2023 | ||||||||||
Range | Range | ||||||||||
Projected Sales | |||||||||||
Organic constant currency sales growth rate (a) | (4.0 %) | - | (2.0 %) | 0.5 % | - | 1.5 % | |||||
Impact of: | |||||||||||
Currency translation | 1.0 % | - | 1.0 % | - | - | - | |||||
Acquisitions | 4.0 % | - | 4.0 % | 2.5 % | - | 2.5 % | |||||
Sales growth rate as reported | 1.0 % | - | 3.0 % | 3.0 % | - | 4.0 % | |||||
Range | Range | ||||||||||
Projected Earnings Per Diluted Share | |||||||||||
GAAP earnings per diluted share | $ 1.84 | - | $ 1.94 | $ 10.92 | - | $ 11.02 | |||||
Adjustments: | |||||||||||
Purchased intangibles amortization | $ 0.16 | - | $ 0.16 | $ 0.42 | - | $ 0.42 | |||||
Restructuring costs and certain other items | $ 0.40 | - | $ 0.40 | $ 0.47 | - | $ 0.47 | |||||
Acquisition related costs | $ - | - | $ - | $ 0.15 | - | $ 0.15 | |||||
Retention bonus obligation | $ 0.10 | - | $ 0.10 | $ 0.24 | - | $ 0.24 | |||||
Adjusted non-GAAP earnings per diluted share | $ 2.50 | - | $ 2.60 | $ 12.20 | - | $ 12.30 | |||||
(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: Caspar Tudor, Head of Investor Relations – (508) 482-2429
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SOURCE Waters Corporation
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