Waters Corporation (NYSE: WAT) Reports Third Quarter 2024 Financial Results
Waters (NYSE: WAT) reported strong Q3 2024 results with sales of $740 million, up 4% from Q3 2023. The company exceeded guidance across key metrics, with GAAP EPS of $2.71 and non-GAAP EPS of $2.93. All regions and end markets showed growth, with pharmaceutical market sales up 2%, industrial market sales increasing 9%, and academic/government market sales rising 2%. Instrument systems sales grew 1%, while recurring revenues increased 6%. The company raised its full-year 2024 guidance, expecting Q4 constant currency sales growth of 5% to 7%.
Waters (NYSE: WAT) ha riportato risultati solidi per il terzo trimestre del 2024, con vendite di $740 milioni, in aumento del 4% rispetto al terzo trimestre del 2023. La società ha superato le previsioni su tutte le metriche chiave, con un utile per azione GAAP di $2,71 e un utile per azione non GAAP di $2,93. Tutte le regioni e i mercati finali hanno mostrato una crescita, con vendite nel mercato farmaceutico in aumento del 2%, vendite nel mercato industriale che sono aumentate del 9% e vendite nel mercato accademico/governativo in crescita del 2%. Le vendite dei sistemi strumentali sono cresciute dell'1%, mentre i ricavi ricorrenti sono aumentati del 6%. La società ha aumentato le previsioni per l'intero anno 2024, aspettandosi una crescita delle vendite in valuta costante del 5% al 7% nel quarto trimestre.
Waters (NYSE: WAT) reportó resultados sólidos para el tercer trimestre de 2024, con ventas de $740 millones, un aumento del 4% en comparación con el tercer trimestre de 2023. La empresa superó las expectativas en todos los indicadores clave, con un beneficio por acción GAAP de $2.71 y un beneficio por acción no GAAP de $2.93. Todas las regiones y mercados finales mostraron crecimiento, con ventas en el mercado farmacéutico aumentando un 2%, las ventas en el mercado industrial incrementándose un 9% y las ventas en el mercado académico/gubernamental subiendo un 2%. Las ventas de sistemas instrumentales crecieron un 1%, mientras que los ingresos recurrentes aumentaron un 6%. La empresa elevó sus expectativas para el año completo 2024, esperando un crecimiento de ventas en moneda constante del 5% al 7% en el cuarto trimestre.
Waters (NYSE: WAT)는 2024년 3분기 실적이 매우 강하다고 보고했으며, 매출은 $740 백만으로 2023년 3분기 대비 4% 증가했습니다. 이 회사는 주요 지표에서 가이던스를 초과 달성했으며, GAAP 기준 EPS는 $2.71, 비 GAAP 기준 EPS는 $2.93입니다. 모든 지역과 최종 시장이 성장세를 보였으며, 제약 시장 매출은 2% 증가, 산업 시장 매출은 9% 증가, 학술/정부 시장 매출은 2% 증가했습니다. 기기 시스템 매출은 1% 성장했으며, 반복 수익은 6% 증가했습니다. 회사는 2024년 전체 연도 가이던스를 올렸으며, 4분기 상수 통화 기준 매출 성장을 5%에서 7%로 예상하고 있습니다.
Waters (NYSE: WAT) a rapporté de solides résultats pour le troisième trimestre de 2024, avec des ventes de $740 millions, en hausse de 4% par rapport au troisième trimestre de 2023. L'entreprise a dépassé les prévisions sur tous les indicateurs clés, avec un BPA GAAP de $2,71 et un BPA non GAAP de $2,93. Toutes les régions et tous les marchés finaux ont montré une croissance, avec des ventes sur le marché pharmaceutique en hausse de 2%, des ventes sur le marché industriel augmentant de 9%, et des ventes sur le marché académique/gouvernemental en augmentation de 2%. Les ventes des systèmes instrumentaux ont progressé de 1%, tandis que les revenus récurrents ont augmenté de 6%. L'entreprise a rehaussé ses prévisions pour l'année entière 2024, s'attendant à une croissance des ventes à changes constants de 5% à 7% au quatrième trimestre.
Waters (NYSE: WAT) hat starke Ergebnisse für das 3. Quartal 2024 gemeldet, mit einem Umsatz von $740 Millionen, was einem Anstieg von 4% im Vergleich zum 3. Quartal 2023 entspricht. Das Unternehmen übertraf die Prognosen in allen wichtigen Kennzahlen, mit einem GAAP EPS von $2,71 und einem non-GAAP EPS von $2,93. Alle Regionen und Endmärkte zeigten Wachstum, wobei die Verkaufszahlen im Pharmamarkt um 2%, im Industriesektor um 9% und im akademischen/staatlichen Markt um 2% stiegen. Der Umsatz mit Instrumentensystemen wuchs um 1%, während die wiederkehrenden Einnahmen um 6% zunahmen. Das Unternehmen hob seine Jahresprognose für 2024 an und erwartet für das 4. Quartal ein Umsatzwachstum in konstanten Währungen von 5% bis 7%.
- Sales exceeded guidance, reaching $740 million (4% growth)
- Non-GAAP EPS of $2.93 significantly exceeded expectations
- All regions and end markets showed positive growth
- Industrial market sales increased 9%
- Raised full-year 2024 guidance
- Q4 2024 expected constant currency sales growth of 5-7%
- Currency translation expected to decrease Q4 sales growth by 1.7%
- Full-year 2024 organic constant currency sales still showing negative growth (-0.9% to -0.3%)
- 3% headwind due to unfavorable foreign exchange impact on EPS
Insights
Waters delivered a strong Q3 performance with
- Instruments business returning to growth ahead of schedule
- High single-digit recurring revenue growth showing strong business fundamentals
- Industrial market sales up
7% in constant currency - Raised full-year guidance despite macro challenges
The geographical performance breakdown reveals important market dynamics. Regional growth:
- Asia: Leading with
6% constant currency growth - Europe: Solid
4% growth despite economic challenges - Americas: Modest but stable
1% growth
Highlights
- Sales of
exceeded guidance, grew$740 million 4% as reported and4% in constant currency - Instruments returned to growth; recurring revenue grew high single-digits in constant currency
- All reported regions returned to growth in the quarter; sales grew across all end markets, led by Pharma & Industrial
- GAAP EPS of
and non-GAAP EPS of$2.71 significantly exceeded guidance, led by strong operational performance and better-than-expected market conditions$2.93 - Raised full-year sales and EPS guidance, with
5% to7% constant currency growth expected in the fourth quarter
Third Quarter 2024
Sales for the third quarter of 2024 were
On a GAAP basis, diluted earnings per share (EPS) for the third quarter of 2024 was
"We delivered exceptional third quarter results, fueled by new product adoption and improved customer spending trends," said Dr. Udit Batra, President & CEO, Waters Corporation. "Instruments returned to growth sooner than expected, as liquid chromatography sales to pharma and industrial customers turned positive."
Dr. Batra continued, "Looking ahead, our strong commercial execution, competitive product portfolio, and excellent operational performance give us confidence in the long-term outlook for Waters."
Other Highlights
During the third quarter of 2024, sales into the pharmaceutical market increased
During the quarter, instrument system sales increased
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 Fourth Quarter 2024 Financial Guidance
Full-Year 2024 Financial Guidance
The Company is raising its full-year 2024 sales guidance, and now expects organic constant currency sales growth to be in the range of -
The Company is also raising its full-year 2024 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.
Fourth Quarter 2024 Financial Guidance
The Company expects fourth quarter 2024 constant currency sales growth to be in the range of +
The Company expects fourth 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 fourth quarter.
Conference Call Details
Waters Corporation will webcast its third quarter 2024 financial results conference call today, November 1, 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 November 29, 2024, on the same website by webcast and also by phone at (888) 282-0031.
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 7,500 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
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-
Waters Corporation and Subsidiaries | |||||||
Consolidated Statements of Operations | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 28, | September 30, | September 28, | September 30, | ||||
Net sales | $ 740,305 | $ 711,692 | $ 2,085,673 | $ 2,136,942 | |||
Costs and operating expenses: | |||||||
Cost of sales | 301,655 | 291,407 | 851,685 | 876,863 | |||
Selling and administrative expenses | 169,097 | 186,748 | 516,880 | 555,657 | |||
Research and development expenses | 45,336 | 41,995 | 136,113 | 130,559 | |||
Purchased intangibles amortization | 11,759 | 12,116 | 35,337 | 20,410 | |||
Litigation provision | 1,326 | - | 11,568 | - | |||
Operating income | 211,132 | 179,426 | 534,090 | 553,453 | |||
Other (expense) income, net | (338) | 328 | 1,619 | 1,364 | |||
Interest expense, net | (17,177) | (26,559) | (57,824) | (56,174) | |||
Income from operations before income taxes | 193,617 | 153,195 | 477,885 | 498,643 | |||
Provision for income taxes | 32,114 | 18,643 | 71,449 | 72,614 | |||
Net income | $ 161,503 | $ 134,552 | $ 406,436 | $ 426,029 | |||
Net income per basic common share | $ 2.72 | $ 2.28 | $ 6.85 | $ 7.21 | |||
Weighted-average number of basic common shares | 59,367 | 59,093 | 59,314 | 59,061 | |||
Net income per diluted common share | $ 2.71 | $ 2.27 | $ 6.83 | $ 7.19 | |||
Weighted-average number of diluted common shares and equivalents | 59,504 | 59,255 | 59,471 | 59,262 |
Waters Corporation and Subsidiaries | |||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP | |||||||||||||||
Net Sales by Operating Segments, Products & Services, Geography and Markets | |||||||||||||||
Three Months Ended September 28, 2024 and September 30, 2023 | |||||||||||||||
(In thousands) | |||||||||||||||
Constant | |||||||||||||||
Three Months Ended | Percent | Impact of | Currency | ||||||||||||
September 28, 2024 | September 30, 2023 | Change | Currency | Growth Rate (a) | |||||||||||
NET SALES - OPERATING SEGMENTS | |||||||||||||||
Waters | $ | 655,652 | $ | 629,348 | 4 % | 0 % | 4 % | ||||||||
TA | 84,653 | 82,344 | 3 % | 1 % | 2 % | ||||||||||
Total | $ | 740,305 | $ | 711,692 | 4 % | 0 % | 4 % | ||||||||
NET SALES - PRODUCTS & SERVICES | |||||||||||||||
Instruments | $ | 323,076 | $ | 319,431 | 1 % | 0 % | 1 % | ||||||||
Service | 278,294 | 263,611 | 6 % | 0 % | 6 % | ||||||||||
Chemistry | 138,935 | 128,650 | 8 % | 0 % | 8 % | ||||||||||
Total Recurring | 417,229 | 392,261 | 6 % | (1 %) | 7 % | ||||||||||
Total | $ | 740,305 | $ | 711,692 | 4 % | 0 % | 4 % | ||||||||
NET SALES - GEOGRAPHY | |||||||||||||||
$ | 251,329 | $ | 238,228 | 5 % | (1 %) | 6 % | |||||||||
279,136 | 275,479 | 1 % | 0 % | 1 % | |||||||||||
209,840 | 197,985 | 6 % | 2 % | 4 % | |||||||||||
Total | $ | 740,305 | $ | 711,692 | 4 % | 0 % | 4 % | ||||||||
NET SALES - MARKETS | |||||||||||||||
Pharmaceutical | $ | 430,138 | $ | 421,535 | 2 % | (1 %) | 3 % | ||||||||
Industrial | 227,740 | 209,449 | 9 % | 2 % | 7 % | ||||||||||
Academic & Government | 82,427 | 80,708 | 2 % | 2 % | 0 % | ||||||||||
Total | $ | 740,305 | $ | 711,692 | 4 % | 0 % | 4 % | ||||||||
(a) | The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, 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. 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 | ||||||||||||||||||
Nine Months Ended September 28, 2024 and September 30, 2023 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Organic | ||||||||||||||||||
Constant | ||||||||||||||||||
Nine Months Ended | Percent | Impact of | Impact of | Currency | ||||||||||||||
September 28, 2024 | September 30, 2023 | Change | Currency | Acquisitions | Growth Rate (a) | |||||||||||||
NET SALES - OPERATING SEGMENTS | ||||||||||||||||||
Waters | $ | 1,840,112 | $ | 1,884,658 | (2 %) | (1 %) | 2 % | (3 %) | ||||||||||
TA | 245,561 | 252,284 | (3 %) | (1 %) | 0 % | (2 %) | ||||||||||||
Total | $ | 2,085,673 | $ | 2,136,942 | (2 %) | (1 %) | 2 % | (3 %) | ||||||||||
NET SALES - PRODUCTS & SERVICES | ||||||||||||||||||
Instruments | $ | 859,079 | $ | 964,380 | (11 %) | 0 % | 3 % | (14 %) | ||||||||||
Service | 812,367 | 774,478 | 5 % | (1 %) | 1 % | 5 % | ||||||||||||
Chemistry | 414,227 | 398,084 | 4 % | (1 %) | 0 % | 5 % | ||||||||||||
Total Recurring | 1,226,594 | 1,172,562 | 5 % | (1 %) | 1 % | 5 % | ||||||||||||
Total | $ | 2,085,673 | $ | 2,136,942 | (2 %) | (1 %) | 2 % | (3 %) | ||||||||||
NET SALES - GEOGRAPHY | ||||||||||||||||||
$ | 696,319 | $ | 745,932 | (7 %) | (3 %) | 1 % | (5 %) | |||||||||||
794,775 | 804,827 | (1 %) | 0 % | 3 % | (4 %) | |||||||||||||
594,579 | 586,183 | 1 % | 2 % | 2 % | (3 %) | |||||||||||||
Total | $ | 2,085,673 | $ | 2,136,942 | (2 %) | (1 %) | 2 % | (3 %) | ||||||||||
NET SALES - MARKETS | ||||||||||||||||||
Pharmaceutical | $ | 1,220,092 | $ | 1,233,177 | (1 %) | (1 %) | 2 % | (2 %) | ||||||||||
Industrial | 644,459 | 648,754 | (1 %) | 0 % | 1 % | (2 %) | ||||||||||||
Academic & Government | 221,122 | 255,011 | (13 %) | 1 % | 2 % | (16 %) | ||||||||||||
Total | $ | 2,085,673 | $ | 2,136,942 | (2 %) | (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 Financials | |||||||||||||||||||||||||||||
Three and Nine Months Ended September 28, 2024 and September 30, 2023 | |||||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||
Income from | |||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||
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 September 28, 2024 | |||||||||||||||||||||||||||||
GAAP | $ | 182,182 | $ | 45,336 | $ | 211,132 | 28.5 % | $ | (338) | $ | 193,617 | $ | 32,114 | $ | 161,503 | $ | 2.71 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (11,759) | - | 11,759 | 1.6 % | - | 11,759 | 2,814 | 8,945 | 0.15 | ||||||||||||||||||||
Litigation provision (c) | (1,326) | - | 1,326 | 0.2 % | - | 1,326 | 318 | 1,008 | 0.02 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (1,194) | - | 1,194 | 0.2 % | - | 1,194 | 282 | 912 | 0.02 | ||||||||||||||||||||
Retention bonus obligation (f) | (1,909) | (636) | 2,545 | 0.3 % | - | 2,545 | 611 | 1,934 | 0.03 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 165,994 | $ | 44,700 | $ | 227,956 | 30.8 % | $ | (338) | $ | 210,441 | $ | 36,139 | $ | 174,302 | $ | 2.93 | ||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||
GAAP | $ | 198,864 | $ | 41,995 | $ | 179,426 | 25.2 % | $ | 328 | $ | 153,195 | $ | 18,643 | $ | 134,552 | $ | 2.27 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (12,116) | - | 12,116 | 1.7 % | - | 12,116 | 2,901 | 9,215 | 0.16 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (24,057) | - | 24,057 | 3.4 % | (651) | 23,406 | 5,387 | 18,019 | 0.30 | ||||||||||||||||||||
Acquisition related costs (e) | (1,263) | - | 1,263 | 0.2 % | - | 1,263 | 303 | 960 | 0.02 | ||||||||||||||||||||
Retention bonus obligation (f) | (5,725) | (1,909) | 7,634 | 1.1 % | - | 7,634 | 1,832 | 5,802 | 0.10 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 155,703 | $ | 40,086 | $ | 224,496 | 31.5 % | $ | (323) | $ | 197,614 | $ | 29,066 | $ | 168,548 | $ | 2.84 | ||||||||||||
Nine Months Ended September 28, 2024 | |||||||||||||||||||||||||||||
GAAP | $ | 563,785 | $ | 136,113 | $ | 534,090 | 25.6 % | $ | 1,619 | $ | 477,885 | $ | 71,449 | $ | 406,436 | $ | 6.83 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (35,337) | - | 35,337 | 1.7 % | - | 35,337 | 8,456 | 26,881 | 0.45 | ||||||||||||||||||||
Litigation provision and settlement (c) | (11,568) | - | 11,568 | 0.6 % | - | 11,568 | 2,776 | 8,792 | 0.15 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (10,680) | - | 10,680 | 0.5 % | - | 10,680 | 2,617 | 8,063 | 0.14 | ||||||||||||||||||||
Retention bonus obligation (f) | (11,451) | (3,817) | 15,268 | 0.7 % | - | 15,268 | 3,664 | 11,604 | 0.20 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 494,749 | $ | 132,296 | $ | 606,943 | 29.1 % | $ | 1,619 | $ | 550,738 | $ | 88,962 | $ | 461,776 | $ | 7.76 | ||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||
GAAP | $ | 576,067 | $ | 130,559 | $ | 553,453 | 25.9 % | $ | 1,364 | $ | 498,643 | $ | 72,614 | $ | 426,029 | $ | 7.19 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (20,410) | - | 20,410 | 1.0 % | - | 20,410 | 4,852 | 15,558 | 0.26 | ||||||||||||||||||||
Restructuring costs and certain other items (d) | (28,881) | - | 28,881 | 1.4 % | (651) | 28,230 | 6,860 | 21,370 | 0.36 | ||||||||||||||||||||
Acquisition related costs (e) | (13,298) | - | 13,298 | 0.6 % | - | 13,298 | 3,191 | 10,107 | 0.17 | ||||||||||||||||||||
Retention bonus obligation (f) | (8,368) | (2,790) | 11,158 | 0.5 % | - | 11,158 | 2,678 | 8,480 | 0.14 | ||||||||||||||||||||
Adjusted Non-GAAP | $ | 505,110 | $ | 127,769 | $ | 627,200 | 29.4 % | $ | 713 | $ | 571,739 | $ | 90,195 | $ | 481,544 | $ | 8.13 | ||||||||||||
________________________________ | ||||||||||||||||||||||||||||||
(a) | Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements. | |||||||||||||||||||||||||||||
(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 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) | |||||||
September 28, 2024 | December 31, 2023 | ||||||
Cash, cash equivalents and investments | $ 331,458 | $ 395,974 | |||||
Accounts receivable | 669,534 | 702,168 | |||||
Inventories | 518,994 | 516,236 | |||||
Property, plant and equipment, net | 642,627 | 639,073 | |||||
Intangible assets, net | 591,883 | 629,187 | |||||
Goodwill | 1,306,593 | 1,305,446 | |||||
Other assets | 450,531 | 438,770 | |||||
Total assets | $ 4,511,620 | $ 4,626,854 | |||||
Notes payable and debt | $ 1,826,248 | $ 2,355,513 | |||||
Other liabilities | 1,082,273 | 1,121,000 | |||||
Total liabilities | 2,908,521 | 3,476,513 | |||||
Total stockholders' equity | 1,603,099 | 1,150,341 | |||||
Total liabilities and stockholders' equity | $ 4,511,620 | $ 4,626,854 |
Waters Corporation and Subsidiaries | |||||||||||
Preliminary Condensed Consolidated Statements of Cash Flows | |||||||||||
Three and Nine Months Ended September 28, 2024 and September 30, 2023 | |||||||||||
(In thousands and unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ 161,503 | $ 134,552 | $ 406,436 | $ 426,029 | |||||||
Adjustments to reconcile net income to net | |||||||||||
cash provided by operating activities: | |||||||||||
Stock-based compensation | 10,647 | 8,490 | 32,993 | 32,224 | |||||||
Depreciation and amortization | 47,507 | 47,807 | 143,250 | 117,845 | |||||||
Change in operating assets and liabilities and other, net | (15,077) | (33,031) | (60,695) | (203,411) | |||||||
Net cash provided by operating activities | 204,580 | 157,818 | 521,984 | 372,687 | |||||||
Cash flows from investing activities: | |||||||||||
Additions to property, plant, equipment | |||||||||||
and software capitalization | (25,618) | (38,047) | (90,377) | (119,044) | |||||||
Business acquisitions, net of cash acquired | - | - | - | (1,285,907) | |||||||
(Investments in) proceeds from unaffiliated companies | (425) | 651 | (1,489) | 651 | |||||||
Net change in investments | (8) | (5) | (44) | (21) | |||||||
Net cash used in investing activities | (26,051) | (37,401) | (91,910) | (1,404,321) | |||||||
Cash flows from financing activities: | |||||||||||
Net change in debt | (180,000) | (125,181) | (530,000) | 929,601 | |||||||
Proceeds from stock plans | 3,237 | 9,464 | 25,073 | 18,092 | |||||||
Purchases of treasury shares | (141) | (692) | (13,475) | (70,433) | |||||||
Other cash flow from financing activities, net | 20 | 2,884 | 15,305 | 8,178 | |||||||
Net cash used in financing activities | (176,884) | (113,525) | (503,097) | 885,438 | |||||||
Effect of exchange rate changes on cash and cash equivalents | 2,442 | (171) | 8,461 | 2,081 | |||||||
Increase (decrease) in cash and cash equivalents | 4,087 | 6,721 | (64,562) | (144,115) | |||||||
Cash and cash equivalents at beginning of period | 326,427 | 329,693 | 395,076 | 480,529 | |||||||
Cash and cash equivalents at end of period | $ 330,514 | $ 336,414 | $ 330,514 | $ 336,414 | |||||||
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | |||||||||||
Net cash provided by operating activities - GAAP | $ 204,580 | $ 157,818 | $ 521,984 | $ 372,687 | |||||||
Adjustments: | |||||||||||
Additions to property, plant, equipment | |||||||||||
and software capitalization | (25,618) | (38,047) | (90,377) | (119,044) | |||||||
Tax reform payments | - | - | 95,645 | 72,101 | |||||||
Litigation settlements (received) paid, net | - | (375) | 9,250 | (1,125) | |||||||
Major facility renovations | - | 3,291 | - | 12,151 | |||||||
Payment of acquired Wyatt liabilities (b) | - | - | - | 25,617 | |||||||
Payment of Wyatt retention bonus obligation (c) | - | - | 19,770 | - | |||||||
Free Cash Flow - Adjusted Non-GAAP | $ 178,962 | $ 122,687 | $ 556,272 | $ 362,387 |
(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. | ||||||||||
(c) | During the nine months ended September 28, 2024, the Company made its first retention payment under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses. |
Waters Corporation and Subsidiaries | |||||||||
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook | |||||||||
Twelve Months Ended | Three Months Ended | ||||||||
December 31, 2024 | December 31, 2024 | ||||||||
Range | Range | ||||||||
Projected Sales | |||||||||
Organic constant currency sales growth rate (a) | (0.9 %) | - | (0.3 %) | 5.0 % | - | 7.0 % | |||
Impact of: | |||||||||
Currency translation | (1.2 %) | - | (1.2 %) | (1.7 %) | - | (1.7 %) | |||
Acquisitions | 1.3 % | - | 1.3 % | ‒ | - | ‒ | |||
Sales growth rate as reported | (0.8 %) | - | (0.2 %) | 3.3 % | - | 5.3 % | |||
Range | Range | ||||||||
Projected Earnings Per Diluted Share | |||||||||
GAAP earnings per diluted share | $ 10.55 | - | $ 10.75 | $ 3.72 | - | $ 3.92 | |||
Adjustments: | |||||||||
Purchased intangibles amortization | $ 0.60 | - | $ 0.60 | $ 0.15 | - | $ 0.15 | |||
Litigation settlement | $ 0.15 | - | $ 0.15 | $ - | - | $ - | |||
Restructuring costs and certain other items | $ 0.14 | - | $ 0.14 | $ - | - | $ - | |||
Retention bonus obligation | $ 0.23 | - | $ 0.23 | $ 0.03 | - | $ 0.03 | |||
Adjusted non-GAAP earnings per diluted share | $ 11.67 | - | $ 11.87 | $ 3.90 | - | $ 4.10 |
(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
View original content:https://www.prnewswire.com/news-releases/waters-corporation-nyse-wat-reports-third-quarter-2024-financial-results-302293299.html
SOURCE Waters Corporation
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