Waters Corp
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Health Care : Life Sciences Tools & Services | Mid Cap Blend
Company profile

Waters Corporation is a specialty measurement company that primarily designs, manufactures, sells and services high performance liquid chromatography (HPLC) ultra-performance liquid chromatography and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. The Company’s segments include Waters and TA. The Waters operating segment is designing, manufacturing, selling and servicing liquid chromatography (LC) and MS instruments, columns and other precision chemistry consumables that can be integrated and used along with other analytical instruments. The TA operating segment designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments. The Company's LC and LC-MS instruments are utilized in a range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify compounds.

Closing Price
$329.44
Day's Change
-0.80 (-0.24%)
Bid
--
Ask
--
B/A Size
--
Day's High
335.08
Day's Low
327.18
Volume
(Light)
Volume:
375,221

10-day average volume:
473,524
375,221

Waters Corporation (NYSE: WAT) Reports First Quarter 2022 Financial Results

6:50 am ET May 3, 2022 (BusinessWire) Print

Waters Corporation (NYSE: WAT) today announced its financial results for the first quarter of 2022.

"Our teams continue to deliver excellent results despite the challenging environment. This was a record first quarter for Waters' sales, led by instruments which grew 26% in constant currency, while our recurring revenues grew 9% in constant currency, reflecting continued demand across our geographies and end-markets," said Dr. Udit Batra, President and Chief Executive Officer of Waters Corporation. "Our non-GAAP operating income margin expanded by 170 basis points, demonstrating our team's continued operational excellence and relentless focus on delivering innovative products to our customers."

Dr. Batra continued, "Our portfolio rejuvenation is focused on large and small molecules, with Arc(TM) HPLC, ACQUITY(TM) Premier, and MaxPeak(TM) Premier columns all providing a strong contribution to growth in the quarter. Customer response to the launches of our new mass spec products - SELECT SERIES(TM) MRT, Xevo(TM) TQ Absolute, and waters_connect(TM) has been extremely positive as well."

First Quarter 2022

Sales for the quarter were $691 million, an increase of 13% as reported and 16% in constant currency, compared to sales of $609 million for the first quarter of 2021.

On a GAAP basis, operating income margin for the first quarter of 2022 improved to 28.3% compared to 28.1% for the first quarter of 2021. On a non-GAAP basis, operating income margin improved to 30.3% compared to 28.6% for the first quarter of 2021.

On a GAAP basis, diluted earnings per share (EPS) for the first quarter of 2022 increased to $2.62, compared to $2.37 for the first quarter of 2021. On a non-GAAP basis, EPS increased to $2.80, compared to $2.29 for the first quarter of 2021. 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.

Other Highlights

During the first quarter of 2022, sales into the pharmaceutical market increased 15% as reported and 19% in constant currency, sales into the industrial market increased 14% as reported and 17% in constant currency and sales into the academic and government markets were flat as reported and increased 4% in constant currency.

Recurring revenues, which represent the combination of service and precision chemistries, increased 6% as reported and 9% in constant currency, while instrument system sales increased 24% as reported and 26% in constant currency.

Geographically, sales in Asia during the quarter increased 11% as reported and 14% in constant currency, sales in the Americas increased 26% (with U.S. sales growing 28%), and sales in Europe increased 3% as reported and 9% in constant currency. Sales in China increased 18% as reported and 17% in constant currency.

Unless otherwise noted, sales growth and decline percentages are presented on an as-reported basis and are the same as the sales growth and decline percentages presented on a constant currency basis as compared with the same period in the prior year, each of which is detailed in the reconciliation of sales growth rates to constant currency growth rates in the tables below.

Full-Year and Second Quarter 2022 Financial Guidance

The Company is raising its full-year 2022 guidance, and now expects constant currency sales growth in the range of 7.5% to 9%. Currency translation is expected to decrease full-year sales growth by approximately three percentage points. The Company is also raising its full-year 2022 non-GAAP EPS guidance to the range of $11.90 to $12.10. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year.

The Company expects second quarter 2022 constant currency sales growth in the range of 6% to 8%. Currency translation is expected to decrease second quarter sales growth by approximately four percentage points. The Company expects second quarter 2022 non-GAAP EPS in the range of $2.55 to $2.65. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the second quarter.

Conference Call

Waters Corporation will webcast its first quarter 2022 financial results conference call today, May 3, 2022 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 at least May 17, 2022 at midnight Eastern Time on the same website by webcast and also by phone at (866) 363-1809.

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 more than 7,800 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 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 U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.

Cautionary Statement

This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "feels", "believes", "anticipates", "plans", "expects", "intends", "suggests", "appears", "estimates", "projects" and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. The 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 the effects of the ongoing COVID-19 pandemic on our business, financial condition, results of operations and prospects, including: portions of our global workforce being unable to work fully and/or effectively due to working remotely, illness, quarantines, government actions, facility closures or other reasons related to the pandemic, increased risks of cyber-attacks resulting from our temporary remote working model, disruptions in our manufacturing capabilities or to our supply chain and distribution network, volatility and uncertainty in global capital markets limiting our ability to access capital, customers being unable to make timely payments for purchases and volatility in demand for our products; foreign exchange rate fluctuations potentially affecting translation of the Company's future non-U.S. operating results; the impact on demand for the Company's products, including delays or disruptions to our distribution network, among the Company's various market sectors or geographies from economic, sovereign and political uncertainties, particularly regarding the effect of new or proposed tariff or trade regulations or changes in the interpretation or enforcement of existing regulations; the effect on the Company's financial results from the United Kingdom exiting the European Union; 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 for the Company's products 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 effect of the adoption of new accounting standards; the ability to access capital, maintain liquidity and service the Company's debt in volatile market conditions, including any potential impact on the Company's operations stemming from sustained inflation, 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, 2021, as filed with the Securities and Exchange Commission ("SEC"), which discussions are incorporated by reference in this release, as updated by the Company's future filings with the SEC. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release 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. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.

Arc, ACQUITY, MaxPeak, SELECT SERIES, Xevo, and waters_connect are trademarks of Waters Corporation.

                                                                             Waters Corporation and Subsidiaries
                                                                            Consolidated Statements of Operations
                                                                            (In thousands, except per share data)
                                                                                         (Unaudited)
                                                                               
                                                                                 
              Three Months Ended                Three Months Ended                                                     Three Months Ended
---------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------
                 April 2, 2022                     April 2, 2022                       April 2, 2022                      April 3, 2021                       April 3, 2021
---------------------------------------------- -------------------- -----------------------------------------------   -------------------- -----------------------------------------------
                                                                
Net sales                                                         $                    $ 690,572                      $                    $ 608,545  
                                                                
Costs and operating expenses:
  Cost of sales                                    285,685       254,147  
  Selling and administrative expenses              157,475       143,196  
  Research and development expenses                 40,472        38,092  
  Purchased intangibles amortization                 1,673         1,840  
  Acquired in-process research and development       9,797             -  
                                                                
    Operating income                               195,470       171,270  
                                                                                             
Other income, net (a)                                  170         9,359  
Interest expense, net                               (8,945                    )      (6,845                    )
                                                                                             
    Income from operations before income taxes     186,695       173,784  
                                                                
Provision for income taxes                          26,864        25,657  
                                                                
    Net income                                                    $                    $ 159,831                      $                    $ 148,127  
                                                                
                                                                
Net income per basic common share                                 $                    $    2.64                      $                    $    2.38  
                                                                
Weighted-average number of basic common shares      60,580        62,260  
                                                                
                                                                               
Net income per diluted common share                               $                    $    2.62                      $                    $    2.37  
                                                                
(a) During the three months ended April 3, 2021, the Company recorded an unrealized gain of $10 million due to an observable change in the fair value of an existing investment the Company does not have the ability to exercise significant influence over.
                                                                                                                                                  Waters Corporation and Subsidiaries
                                                                                                                                              Reconciliation of GAAP to Adjusted Non-GAAP
                                                                                                                              Net Sales by Operating Segments, Products & Services, Geography and Markets
                                                                                                                                          Three Months Ended April 2, 2022 and April 3, 2021
                                                                                                                                                            (In thousands)
                                                                                                                                               
             Current                   Current              Current              Current              Current              Current              Current              Current                    Current                   Current                              Current
             Period                    Period               Period               Period               Period               Period               Period               Period                     Period                    Period                               Period                              Constant             Constant
       Three Months Ended        Three Months Ended                                             Three Months Ended                                                   Percent                    Percent                  Currency                             Currency                             Currency             Currency
------------------------------- -------------------- ----------------------------------------------------------------------------------------------------
          April 2, 2022             April 2, 2022                   April 2, 2022                  April 3, 2021                   April 3, 2021                     Change                     Change                    Impact                               Impact                           Growth Rate (a)      Growth Rate (a)
------------------------------- -------------------- ----------------------------------------  -------------------- ----------------------------------------  -------------------- ------------------------------  -------------------- --------------------------------------------------   -------------------- -------------------
                                                            
NET SALES - OPERATING SEGMENTS
                                                            
Waters                          $                    $                                 613,156 $                    $                                 541,878                   13         13           %          $                    $                       (15,856                    )                   16         16      %
TA                                            77,416               77,416               77,416               66,667               66,667               66,667                   16         16           %                        (1,581               (1,581     (1,581                    )                   18         18      %
                                                            
------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
Total                           $                    $                                 690,572 $                    $                                 608,545                   13         13           %          $                    $                       (17,437                    )                   16         16      %
                                ==================== ==================== ==================== ==================== ==================== ====================                                                      ==================== ==================== ========== ====================
                                                            
                                                            
NET SALES - PRODUCTS & SERVICES
                                                            
Instruments                     $                    $                                 325,222 $                    $                                 263,048                   24         24           %          $                    $                        (6,288                    )                   26         26      %
                                                            
Service                                      239,732              239,732              239,732              226,523              226,523              226,523                    6          6           %                        (8,163               (8,163     (8,163                    )                    9          9      %
Chemistry                                    125,618              125,618              125,618              118,974              118,974              118,974                    6          6           %                        (2,986               (2,986     (2,986                    )                    8          8      %
                                -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                                      -------------------- -------------------- ---------- --------------------
Total Recurring                              365,350              365,350              365,350              345,497              345,497              345,497                    6          6           %                       (11,149              (11,149    (11,149                    )                    9          9      %
                                                            
------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
Total                           $                    $                                 690,572 $                    $                                 608,545                   13         13           %          $                    $                       (17,437                    )                   16         16      %
                                ==================== ==================== ==================== ==================== ==================== ====================                                                      ==================== ==================== ========== ====================
                                                            
                                                            
NET SALES - GEOGRAPHY
                                                            
Asia                            $                    $                                 254,334 $                    $                                 229,542                   11         11           %          $                    $                        (7,571                    )                   14         14      %
Americas                                     248,837              248,837              248,837              197,357              197,357              197,357                   26         26           %                            (1                   (1         (1                    )                   26         26      %
Europe                                       187,401              187,401              187,401              181,646              181,646              181,646                    3          3           %                        (9,865               (9,865     (9,865                    )                    9          9      %
                                                            
------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
Total                           $                    $                                 690,572 $                    $                                 608,545                   13         13           %          $                    $                       (17,437                    )                   16         16      %
                                ==================== ==================== ==================== ==================== ==================== ====================                                                      ==================== ==================== ========== ====================
                                                            
                                                            
NET SALES - MARKETS
                                                            
Pharmaceutical                  $                    $                                 415,772 $                    $                                 360,148                   15         15           %          $                    $                       (11,158                    )                   19         19      %
Industrial                                   209,397              209,397              209,397              183,273              183,273              183,273                   14         14           %                        (4,153               (4,153     (4,153                    )                   17         17      %
Academic & Government                         65,403               65,403               65,403               65,124               65,124               65,124                    -          -                 (2,126               (2,126     (2,126                    )                    4          4      %
                                                            
------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
Total                           $                    $                                 690,572 $                    $                                 608,545                   13         13           %          $                    $                       (17,437                    )                   16         16      %
                                ==================== ==================== ==================== ==================== ==================== ====================                                                      ==================== ==================== ========== ====================
                                                            
                                                            
NET SALES - EXCLUDING CHINA
                                                            
Total Net Sales                 $                    $                                 690,572                    $ $                                 608,545                   13         13           %          $                    $                       (17,437                    )                   16         16      %
China Net Sales                              121,032              121,032              121,032              102,919              102,919              102,919                   18         18           %                           850                  850        850                     17         17      %
                                                            
------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
           
-------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                     Waters Corporation and Subsidiaries
                                                                                                                                                                                                                                     Reconciliation of GAAP to Adjusted Non-GAAP Financials
                                                                                                                                                                                                                                     Three Months Ended April 2, 2022 and April 3, 2021
                                                                                                                                                                                                                                     (In thousands, except per share data)
                                                                                                                                                                 
                      Acquired                            Acquired             Acquired                   Acquired                  Acquired             Acquired                   Acquired                 Income from          Income from          Income from          Income from                Income from               Income from          Income from                Income from               Income from          Income from                Income from
                      IPR&D and                           IPR&D and            IPR&D and                  IPR&D and                 IPR&D and            IPR&D and                  IPR&D and                Operations           Operations           Operations           Operations                 Operations                Operations           Operations                 Operations                Operations           Operations                 Operations
                      Selling &                           Selling &            Selling &                  Selling &                Research &           Research &                 Research &                 Operating            Operating            Operating            Operating                  Operating                   Other                Other                      Other                    before               before                     before                 Provision for        Provision for              Provision for                Diluted              Diluted                    Diluted                   Diluted              Diluted                    Diluted
                   Administrative                      Administrative       Administrative             Administrative              Development          Development                Development                Operating            Operating            Operating             Income                     Income                    Income               Income                     Income                    Income               Income                     Income                    Income               Income                     Income                      Net                  Net                        Net                    Earnings             Earnings                   Earnings
                     Expenses(a)                         Expenses(a)          Expenses(a)                Expenses(a)                Expenses             Expenses                   Expenses                   Income               Income               Income             Percentage                 Percentage                 (Expense)            (Expense)                  (Expense)                   Taxes                Taxes                      Taxes                     Taxes                Taxes                      Taxes                    Income               Income                     Income                   per Share            per Share                  per Share
--------------------------------------------------- -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  -------------------- -------------------- -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------
Three Months Ended April 2, 2022
---------------------------------------------------
GAAP                                                $                    $                       159,148   $                    $                        50,269   $                    $                                 195,470                 28.3       28.3                    % $                    $                           170   $                    $                       186,695   $                    $                        26,864   $                    $                       159,831   $                    $                          2.62  
Adjustments:
    Purchased intangibles amortization (b)                        (1,673               (1,673     (1,673 )                                       -                    -          -                  1,673                1,673                1,673                  0.2        0.2                    %                    -                    -          -                  1,673                1,673      1,673                    383                  383        383                  1,290                1,290      1,290                   0.02                 0.02       0.02  
    Acquired in-process research and development(c)                    -                    -          -                 (9,797               (9,797     (9,797 )                                   9,797                9,797                9,797                  1.4        1.4                    %                    -                    -          -                  9,797                9,797      9,797                  2,351                2,351      2,351                  7,446                7,446      7,446                   0.12                 0.12       0.12  
    Restructuring costs and certain other items (d)               (2,375               (2,375     (2,375 )                                       -                    -          -                  2,375                2,375                2,375                  0.3        0.3                    %                 (416                 (416       (416 )                                   1,959                1,959      1,959                    461                  461        461                  1,498                1,498      1,498                   0.02                 0.02       0.02  
    Certain income tax items (e)                                       -                    -          -                      -                    -          -                      -                    -                    -                    -          -                      -                    -          -                      -                    -          -                   (488                 (488       (488 )                                     488                  488        488                   0.01                 0.01       0.01  
                                                    -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Adjusted Non-GAAP                                   $                    $                       155,100   $                    $                        40,472   $                    $                                 209,315                 30.3       30.3                    % $                    $                          (246 )                    $                    $                       200,124   $                    $                        29,571   $                    $                       170,553   $                    $                          2.80  
                                                    ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ====================
                                                                                                                                                                 
Three Months Ended April 3, 2021
---------------------------------------------------
GAAP                                                $                    $                       145,036   $                    $                        38,092   $                    $                                 171,270                 28.1       28.1                    % $                    $                         9,359   $                    $                       173,784   $                    $                        25,657   $                    $                       148,127   $                    $                          2.37  
Adjustments:
    Purchased intangibles amortization (b)                        (1,840               (1,840     (1,840 )                                       -                    -          -                  1,840                1,840                1,840                  0.3        0.3                    %                    -                    -          -                  1,840                1,840      1,840                    414                  414        414                  1,426                1,426      1,426                   0.02                 0.02       0.02  
    Restructuring costs and certain other items (d)                 (870                 (870       (870 )                                       -                    -          -                    870                  870                  870                  0.1        0.1                    %               (9,707               (9,707     (9,707 )                                  (8,837               (8,837     (8,837 )                                  (2,120               (2,120     (2,120 )                                  (6,717               (6,717     (6,717 )                                   (0.11                (0.11      (0.11 )
    Certain income tax items (e)                                       -                    -          -                      -                    -          -                      -                    -                    -                    -          -                      -                    -          -                      -                    -          -                   (550                 (550       (550 )                                     550                  550        550                   0.01                 0.01       0.01  
                                                    -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
(a) Selling & administrative expenses include purchased intangibles amortization, litigation provisions and settlements and asset impairments.                                                                                                                                                                                                                                Selling & administrative expenses include purchased intangibles amortization, litigation provisions and settlements and asset impairments.
(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.                                                                                                          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.                                                                                                                          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, mergers and acquisition costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, acquire companies 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. Restructuring costs, mergers and acquisition costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, acquire companies 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.
                                                       Waters Corporation and Subsidiaries
                                         Preliminary Condensed Unclassified Consolidated Balance Sheets
                                                          (In thousands and unaudited)
                                      
                                      
                                      
             April 2, 2022                 April 2, 2022              April 2, 2022           December 31, 2021          December 31, 2021
-------------------------------------- -------------------- ------------------------------  -------------------- ------------------------------
                                      
Cash, cash equivalents and investments                    $                    $    503,095                    $                    $    569,285
Accounts receivable                           607,262        612,648
Inventories                                   381,902        356,095
Property, plant and equipment, net            547,199        547,913
Intangible assets, net                        236,408        242,401
Goodwill                                      435,807        437,865
Other assets                                  329,596        328,725
  Total assets                                            $                    $  3,041,269                    $                    $  3,094,932
                                                 
                                                 
Notes payable and debt                                    $                    $  1,444,122                    $                    $  1,513,870
Other liabilities                           1,222,210      1,213,508
  Total liabilities                         2,666,332      2,727,378
                                                 
Total stockholders' equity                    374,937        367,554
                                                                                                  Waters Corporation and Subsidiaries
                                                                                      Preliminary Condensed Consolidated Statements of Cash Flows
                                                                                          Three Months Ended April 2, 2022 and April 3, 2021
                                                                                                     (In thousands and unaudited)
                                                                                                                       
                                 Three Months Ended                                  Three Months Ended                                                       Three Months Ended
----------------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------
                                    April 2, 2022                                       April 2, 2022                        April 2, 2022                       April 3, 2021                        April 3, 2021
----------------------------------------------------------------------------------- -------------------- -------------------------------------------------   -------------------- -------------------------------------------------
                                                                                                                        
Cash flows from operating activities:
  Net income                                                                                           $                    $   159,831                      $                    $   148,127  
  Adjustments to reconcile net income to net cash provided by operating activities:
    Stock-based compensation                                                               10,933           8,305  
    Depreciation and amortization                                                          32,664          31,356  
    Change in operating assets and liabilities and other, net                              (5,468 )                           30,616  
                                                                                    -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      Net cash provided by operating activities                                           197,960         218,404  
                                                                                                       
Cash flows from investing activities:
  Additions to property, plant, equipment and software capitalization                     (27,751 )                          (39,503 )
  Proceeds from sale of equity investment                                                   6,785               -  
  Payments for intellectual property licenses                                              (4,897                    )             -  
  Net change in investments                                                                44,855        (119,501                    )
                                                                                    -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      Net cash provided by (used in) investing activities                                  18,992        (159,004 )
                                                                                                       
Cash flows from financing activities:
  Net change in debt                                                                      (70,000 )                          346,363  
  Proceeds from stock plans                                                                12,832          16,295  
  Purchases of treasury shares                                                           (170,136 )                         (173,305 )
  Other cash flow from financing activities, net                                             (107 )                             (578 )
                                                                                    -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      Net cash (used in) provided by financing activities                                (227,411 )                          188,775  
                                                                                                       
Effect of exchange rate changes on cash and cash equivalents                              (10,705 )                           (1,087 )
                                                                                    -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      (Decrease) increase in cash and cash equivalents                                    (21,164 )                          247,088  
                                                                                                       
Cash and cash equivalents at beginning of period                                          501,234         436,695  
                                                                                    -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
      Cash and cash equivalents at end of period                                                       $                    $   480,070                      $                    $   683,783  
                                                                                    ==================== ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                       
                                                                                                       
                                                                                                       
                                                                                                       
                                                                           Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a)
                                                                                                       
                                                                                                       
                                                                                                       
Net cash provided by operating activities - GAAP                                                       $                    $   197,960                      $                    $   218,404  
                                                                                                       
  Adjustments:
    Additions to property, plant, equipment and software capitalization                   (27,751 )                          (39,503 )
    Litigation settlements paid, net                                                         (584 )                                -  
    Major facility renovations                                                              5,927          14,490  
                                                                                    -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
(a) The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies.
                                                                                                                                         Waters Corporation and Subsidiaries
                                                                                                                       Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook
                                                             
                                                            
                 Three Months Ended                   Three Months Ended                                              Three Months Ended                                              Twelve Months Ended                                             Twelve Months Ended
                    July 2, 2022                         July 2, 2022                                                    July 2, 2022                                                  December 31, 2022                                               December 31, 2022
---------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------       -------------------- ----------------------------------------------------------------------------------------------------
                        Range                                Range                                                           Range                                                           Range                                                           Range
---------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------       -------------------- ----------------------------------------------------------------------------------------------------
Projected Sales
                                                             
Projected constant currency sales growth rate (a)            6.0%                  6.0%                   -                    -                  8.0%                  8.0%                 7.5%                  7.5%                   -                    -                  9.0%                  9.0%
                                                             
Projected currency impact                                   (4.0%)                (4.0%)                  -                    -                 (4.0%)                (4.0%)               (3.0%)                (3.0%)                  -                    -                 (3.0%)                (3.0%)
                                                             
---------------------------------------------------- -------------------- ------------------------------------------ -------------------- -------------------- ------------------------------------------ ------------------------------------------ -------------------- -------------------- ----------------------
Projected sales growth rate as reported                      2.0%                  2.0%                   -                    -                  4.0%                  4.0%                 4.5%                  4.5%                   -                    -                  6.0%                  6.0%
                                                     ==================== ====================                                            ==================== ====================  ==================== ====================                                            ==================== ====================
                                                            
                                                            
Projected Earnings Per Diluted Share                         Range                                                           Range                                                           Range                                                           Range
                                                     -------------------- ----------------------------------------------------------------------------------------------------       -------------------- ----------------------------------------------------------------------------------------------------
                                                            
                                                             
Projected GAAP earnings per diluted share                               $          $       2.52           -                    -                             $          $       2.62                    $          $      11.68           -                    -                             $          $      11.88
Adjustments:
        Purchased intangibles amortization                              $          $       0.02           -                    -                             $          $       0.02                    $          $       0.08           -                    -                             $          $       0.08
        Acquired in-process research and development                    $          $          -                    $                    $                    $          $          -                    $          $       0.12                    $                    $                    $          $       0.12
        Certain income tax items                                        $          $       0.01           -                    -                             $          $       0.01                    $          $       0.02           -                    -                             $          $       0.02
                                                     -------------------- ---------- ----------                                           -------------------- ---------- ---------- -------------------- ---------- ----------                                           -------------------- ---------- ----------
(a) Constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, ignoring the impact of foreign currency exchange rates during the current period. 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.
                                                                                                                                                                                                                                                                      

View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005753/en/

SOURCE: Waters Corporation

Caspar Tudor, Director, Investor Relations - (508) 482-2429
comtex tracking

COMTEX_406619580/1006/2022-05-03T06:50:00

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