MILFORD, Mass.--(BUSINESS WIRE)--
Waters Corporation (NYSE: WAT) reported fourth quarter 2012 sales of
$522 million, slightly ahead of $521 million in the fourth quarter of
2011. In the quarter, constant currency sales growth was approximately
1.5%. On a GAAP basis, earnings per diluted share (E.P.S.) for the
fourth quarter were $2.00 compared to $1.51 for the fourth quarter of
2011. On a non-GAAP basis, including the adjustments in the attached
reconciliation, E.P.S. grew 2% to $1.59 from $1.56 in the fourth quarter
of 2011.
For the full year, sales for the Company were $1.84 billion, compared to
sales of $1.85 billion in 2011, with foreign currency translation
reducing sales growth by about 2%. E.P.S. for 2012 were $5.19 compared
to $4.69 in 2011. On a non-GAAP basis, including adjustments in the
attached reconciliation, E.P.S. grew 2% to $4.93 from $4.81 in 2011.
Commenting on the Company’s 2012 performance, Douglas Berthiaume,
Chairman, President and Chief Executive Officer said, “Demand trends in
the fourth quarter were generally consistent with those observed
throughout 2012. Our recurring revenues and business in Asia contributed
to overall constant currency growth during a challenging period for the
Company. For the full year, the combination of a stable pricing
environment and prudent cost control allowed us to maintain our
operating income level and grow our E.P.S. principally by reducing our
share count through share repurchases.”
As communicated in a prior press release, Waters Corporation will
webcast its fourth quarter 2012 financial results conference call this
morning, January 22, 2013 at 8:30 a.m. eastern time. To listen to the
call, connect to www.waters.com,
choose “Investor Relations” and click on the “Live Webcast”. A replay
will be available through January 29 at midnight eastern time, similarly
by webcast and also by phone at 402-220-9829.
CAUTIONARY STATEMENT
This release may contain “forward-looking” statements regarding future
results and events. For this purpose, any statements that are not
statements of historical fact may be deemed forward-looking statements.
Without limiting the foregoing, the words, “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, the impact
on demand among the Company’s various market sectors from economic,
sovereign and political uncertainties; increased regulatory burdens as
the Company’s business evolves, especially with respect to the U.S. Food
and Drug Administration and U.S. Environmental Protection Agency, among
others; shifts in taxable income in jurisdictions with different
effective tax rates; the outcome of tax examinations or changes in
respective country legislation affecting the Company’s effective tax
rate; the ability to access capital, maintain liquidity and service our
debt in volatile market conditions, particularly in the U.S., as a large
portion of the Company’s cash is held and operating cash flows are
generated outside the U.S.; fluctuations in expenditures by the
Company’s customers, in particular large pharmaceutical companies;
introduction of competing products by other companies and loss of market
share; pressures on prices from competitors and/or customers;
regulatory, economic and competitive obstacles to new product
introductions; other changes in demand from the effect of mergers and
acquisitions by the Company’s customers; environmental and logistical
obstacles affecting the distribution of products; risks associated with
lawsuits and other legal actions, particularly involving claims for
infringement of patents and other intellectual property rights; and
foreign exchange rate fluctuations potentially affecting translation of
the Company’s future non-U.S. operating results. Such factors and others
are discussed more fully in the section entitled “Risk Factors” of the
Company’s annual report on Form 10-K for the year ended December 31,
2011 and Form 10-Q for the period ended September 29, 2012 as filed with
the Securities and Exchange Commission, which “Risk Factors” discussion
is incorporated by reference in this release. The forward-looking
statements included in this release represent the Company’s estimates or
views as of the date of this release report and should not be relied
upon as representing the Company’s estimates or views as of any date
subsequent to the date of this release.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
(Unaudited)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2012
December 31, 2011
December 31, 2012
December 31, 2011
Net sales
$
521,766
$
521,420
$
1,843,641
$
1,851,184
Cost of sales
208,363
204,243
737,614
730,493
Gross profit
313,403
317,177
1,106,027
1,120,691
Selling and administrative expenses
122,147
126,237
477,270
490,011
Research and development expenses
24,958
23,707
96,004
92,347
Purchased intangibles amortization
2,459
2,359
13,829
9,733
Litigation provisions
4,434
-
7,434
-
Operating income
159,405
164,874
511,490
528,600
Interest expense, net
(6,373
)
(6,193
)
(23,865
)
(19,348
)
Income from operations before income taxes
153,032
158,681
487,625
509,252
Provision for income tax (benefit) expense
(22,912
)
21,534
26,182
76,284
Net income
$
175,944
$
137,147
$
461,443
$
432,968
Net income per basic common share
$
2.03
$
1.54
$
5.25
$
4.77
Weighted-average number of basic common shares
86,712
89,324
87,841
90,833
Net income per diluted common share
$
2.00
$
1.51
$
5.19
$
4.69
Weighted-average number of diluted common shares and equivalents
87,851
90,566
88,979
92,325
Waters Corporation and Subsidiaries Quarterly
Reconciliation of GAAP to Adjusted Non-GAAP Financials (in
thousands, except per share data)
The 2012 and 2011 adjusted amounts presented below are used by the
management of the Company to measure operating performance with prior
periods and forecasts and are not in accordance with generally accepted
accounting principles (GAAP). The Company believes that the use of
Non-GAAP measures, such as Non-GAAP Earnings Per Share (E.P.S.) and
Non-GAAP Operating Income, help management and investors gain a better
understanding of our core operating results and future trends, and is
consistent with how management measures compensation and forecasts the
Company’s performance. The reconciliation identifies items management
has excluded as non-operational transactions. Management has excluded
the following items:
Purchased Intangibles Amortization and Step-Up Expenses were excluded
to allow for comparisons of operating results that are consistent over
periods of time.
Restructuring Costs, Asset Impairments, Acquisition-Related Costs and
Other One-Time Costs were excluded as the Company believes that costs
to consolidate operations, reduce overhead and complete acquisitions
are infrequent or unusual and are not indicative of normal operating
costs.
Litigation Provisions and Non‐Income Tax Audit Settlement Provisions
were excluded as these costs are isolated, unpredictable and not
expected to recur regularly.
Net Operating Loss Tax Benefit was excluded as this was a one-time tax
benefit recognized in 2012 as a result of a refinancing of
inter-company debt that allowed the recognition of certain previously
reserved deferred tax assets.
One‐Time Income Tax Benefits were excluded as these costs and benefits
are typically the result of audit examination settlements or updates
in management's assessment of ongoing examinations and are not
indicative of the Company’s normal or future income tax expense.
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2012
December 31, 2011
December 31, 2012
December 31, 2011
GAAP Gross Profit
$
313,403
$
317,177
$
1,106,027
$
1,120,691
Asset Impairments
-
-
1,903
-
Adjusted Non-GAAP Gross Profit
$
313,403
$
317,177
$
1,107,930
$
1,120,691
GAAP Selling and Administrative Expenses (including
Purchased Intangibles Amortization and Litigation Provisions)
Press Release $WAT Waters Corp.
MILFORD, Mass.--(BUSINESS WIRE)-- Waters Corporation (NYSE: WAT) reported fourth quarter 2012 sales of $522 million, slightly ahead of $521 million in the fourth quarter of 2011. In the quarter, constant currency sales growth was approximately 1.5%. On a GAAP basis, earnings per diluted share (E.P.S.) for the fourth quarter were $2.00 compared to $1.51 for the fourth quarter of 2011. On a non-GAAP basis, including the adjustments in the attached reconciliation, E.P.S. grew 2% to $1.59 from $1.56 in the fourth quarter of 2011.
For the full year, sales for the Company were $1.84 billion, compared to sales of $1.85 billion in 2011, with foreign currency translation reducing sales growth by about 2%. E.P.S. for 2012 were $5.19 compared to $4.69 in 2011. On a non-GAAP basis, including adjustments in the attached reconciliation, E.P.S. grew 2% to $4.93 from $4.81 in 2011.
Commenting on the Company’s 2012 performance, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “Demand trends in the fourth quarter were generally consistent with those observed throughout 2012. Our recurring revenues and business in Asia contributed to overall constant currency growth during a challenging period for the Company. For the full year, the combination of a stable pricing environment and prudent cost control allowed us to maintain our operating income level and grow our E.P.S. principally by reducing our share count through share repurchases.”
As communicated in a prior press release, Waters Corporation will webcast its fourth quarter 2012 financial results conference call this morning, January 22, 2013 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.com, choose “Investor Relations” and click on the “Live Webcast”. A replay will be available through January 29 at midnight eastern time, similarly by webcast and also by phone at 402-220-9829.
CAUTIONARY STATEMENT
This release may contain “forward-looking” statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words, “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, the impact on demand among the Company’s various market sectors from economic, sovereign and political uncertainties; increased regulatory burdens as the Company’s business evolves, especially with respect to the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, among others; shifts in taxable income in jurisdictions with different effective tax rates; the outcome of tax examinations or changes in respective country legislation affecting the Company’s effective tax rate; the ability to access capital, maintain liquidity and service our debt in volatile market conditions, particularly in the U.S., as a large portion of the Company’s cash is held and operating cash flows are generated outside the U.S.; fluctuations in expenditures by the Company’s customers, in particular large pharmaceutical companies; introduction of competing products by other companies and loss of market share; pressures on prices from competitors and/or customers; regulatory, economic and competitive obstacles to new product introductions; other changes in demand from the effect of mergers and acquisitions by the Company’s customers; environmental and logistical obstacles affecting the distribution of products; risks associated with lawsuits and other legal actions, particularly involving claims for infringement of patents and other intellectual property rights; and foreign exchange rate fluctuations potentially affecting translation of the Company’s future non-U.S. operating results. Such factors and others are discussed more fully in the section entitled “Risk Factors” of the Company’s annual report on Form 10-K for the year ended December 31, 2011 and Form 10-Q for the period ended September 29, 2012 as filed with the Securities and Exchange Commission, which “Risk Factors” discussion is incorporated by reference in this release. The forward-looking statements included in this release represent the Company’s estimates or views as of the date of this release report and should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this release.
Waters Corporation and Subsidiaries
Quarterly Reconciliation of GAAP to Adjusted Non-GAAP Financials
(in thousands, except per share data)
The 2012 and 2011 adjusted amounts presented below are used by the management of the Company to measure operating performance with prior periods and forecasts and are not in accordance with generally accepted accounting principles (GAAP). The Company believes that the use of Non-GAAP measures, such as Non-GAAP Earnings Per Share (E.P.S.) and Non-GAAP Operating Income, help management and investors gain a better understanding of our core operating results and future trends, and is consistent with how management measures compensation and forecasts the Company’s performance. The reconciliation identifies items management has excluded as non-operational transactions. Management has excluded the following items:
Waters Corporation
Gene Cassis, 508-482-2349
Vice President of Investor Relations
Source: Waters Corporation