Waters Corporation (NYSE: WAT) Reports First Quarter 2021 Financial Results
Waters Corporation (NYSE: WAT) today announced first quarter 2021 sales of
On a GAAP basis, diluted earnings per share (EPS) for the first quarter of 2021 increased to
On a GAAP basis, net cash provided by operating activities was
“I remain grateful to our colleagues for their continued hard work and commitment, especially to those who are experiencing the devastating effects of the pandemic,” said Dr. Udit Batra, President and Chief Executive Officer of Waters Corporation. “There is much to be pleased about with our first quarter results, driven by strong growth across each of our major end markets, with pharma leading the way. Thanks to solid execution and instrument sales growing in double-digits, we saw revenue increases across every region, with China’s sales more than doubling. Our transformation plan is well underway, with commercial momentum and a strong leadership team in place, we now turn towards developing a new strategy as we work to more closely align our portfolio with higher growth areas of the market.”
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.
During the first quarter of 2021, sales into the pharmaceutical market increased
During the first quarter, recurring revenues, which represent the combination of service and precision chemistries revenues, increased
Geographically, sales in Asia during the quarter increased
Second Quarter and Fiscal Year 2021 Financial Outlook
The Company expects full-year 2021 constant-currency sales growth in the range of
The Company expects second quarter 2021 constant-currency sales growth in the range of
Conference Call
Waters Corporation will webcast its first quarter 2021 financial results conference call today, May 5, 2021 at 8:00 a.m. Eastern Time. To listen to the call, please visit www.waters.com, select “Investors” under the “About Waters” section, and click on the “Live Webcast.” A replay will be available through May 12, 2021 at midnight Eastern Time on the same website by webcast and also by phone at 866-485-4163.
About Waters Corporation
Waters Corporation (NYSE: WAT), the world's leading specialty measurement company, has pioneered chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for more than 60 years. With more than 7,400 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, 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 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, 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, 2020, 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.
Waters Corporation and Subsidiaries |
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Consolidated Statements of Operations |
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(In thousands, except per share data) |
||||||||
(Unaudited) |
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Three Months Ended |
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April 3, 2021 |
|
March 28, 2020 |
||||||
| Net sales | $ |
608,545 |
|
$ |
464,939 |
|
||
| Costs and operating expenses: | ||||||||
| Cost of sales |
|
254,147 |
|
|
210,644 |
|
||
| Selling and administrative expenses |
|
143,196 |
|
|
147,735 |
|
||
| Research and development expenses |
|
38,092 |
|
|
34,989 |
|
||
| Purchased intangibles amortization |
|
1,840 |
|
|
2,625 |
|
||
| Litigation provision |
|
- |
|
|
666 |
|
||
| Operating income |
|
171,270 |
|
|
68,280 |
|
||
| Other income (expense), net |
|
9,359 |
|
|
(374 |
) |
||
| Interest expense, net |
|
(6,845 |
) |
|
(10,043 |
) |
||
| Income from operations before income taxes |
|
173,784 |
|
|
57,863 |
|
||
| Provision for income taxes |
|
25,657 |
|
|
4,301 |
|
||
| Net income | $ |
148,127 |
|
$ |
53,562 |
|
||
| Net income per basic common share | $ |
2.38 |
|
$ |
0.86 |
|
||
| Weighted-average number of basic common shares |
|
62,260 |
|
|
62,232 |
|
||
| Net income per diluted common share | $ |
2.37 |
|
$ |
0.86 |
|
||
| Weighted-average number of diluted common shares and equivalents |
|
62,632 |
|
|
62,626 |
|
||
Waters Corporation and Subsidiaries |
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Waters Corp
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WAT Stock Data
19.05B
59.06M
0.27%
102.2%
6.41%
Analytical Laboratory Instrument Manufacturing
Manufacturing
United States of America
MILFORD
About WATwaters corporation (nyse: wat), the world's leading specialty measurement company, has pioneered chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for nearly 60 years. with approximately 7,000 employees worldwide, waters operates directly in 31 countries, including 15 manufacturing facilities, and with products available in more than 100 countries. waters corporation's businesses include waters, ta instruments, vicam, era, and nonlinear dynamics. waters creates business advantages for laboratory-dependent organizations by delivering ultra performance liquid chromatography (uplc), high-performance liquid chromatography (hplc), chromatography columns and chemistry products, mass spectrometry systems, laboratory informatics solutions, and comprehensive service programs to enable significant advancement in healthcare delivery, environmental management, food safety, and water quality. ta instruments' thermal analysis, rheometry
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