Waters Corporation

11/01/2024 | Press release | Distributed by Public on 11/01/2024 04:03

Waters Corporation (NYSE: WAT) Reports Third Quarter 2024 Financial Results

Waters Corporation (NYSE: WAT) Reports Third Quarter 2024 Financial Results

November 1, 2024

Highlights

  • Sales of $740 million exceeded guidance, grew 4% as reported and 4% 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 $2.71 and non-GAAP EPS of $2.93 significantly exceeded guidance, led by strong operational performance and better-than-expected market conditions
  • Raised full-year sales and EPS guidance, with 5% to 7% constant currency growth expected in the fourth quarter

Third Quarter 2024

MILFORD, Mass., Nov. 1, 2024/PRNewswire/ -- Waters Corporation (NYSE: WAT) today announced its financial results for the third quarter of 2024.

Sales for the third quarter of 2024 were $740 million, an increase of 4% as reported, compared to sales of $712 million for the third quarter of 2023. Currency translation had minimal impact on sales.

On a GAAP basis, diluted earnings per share (EPS) for the third quarter of 2024 was $2.71, compared to $2.27 for the third quarter of 2023. On a non-GAAP basis, EPS was $2.93, compared to $2.84 for the third quarter of 2023. This includes a headwind of approximately 2% due to unfavorable foreign exchange.

"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 2% as reported and 3% in constant currency. Sales into the industrial market increased 9% as reported and 7% in constant currency. Sales into the academic and government market increased 2% as reported and were flat in constant currency.

During the quarter, instrument system sales increased 1% as reported and in constant currency. Recurring revenues, which represent the combination of service and precision chemistries, increased 6% as reported and 7% in constant currency.

Geographically, sales in Asia during the quarter increased 5% as reported and 6% in constant currency. Sales in the Americas increased 1% as reported and in constant currency. Sales in Europe increased 6% as reported and 4% in constant currency.

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 -0.9% to -0.3%. Currency translation is expected to decrease full-year sales growth by 1.2%. M&A contribution from the Wyatt transaction covering the first four-and-a-half months of the year has added 1.3% to full-year reported sales. The resulting full-year 2024 reported sales growth is expected in the range of -0.8% to -0.2%.

The Company is also raising its full-year 2024 non-GAAP EPS guidance to now be in the range of $11.67 to $11.87, which includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.

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 +5.0% to +7.0%. Currency translation is expected to decrease fourth quarter sales growth by 1.7%. The resulting fourth quarter 2024 reported sales growth is expected in the range of +3.3% to +5.3%.

The Company expects fourth quarter 2024 non-GAAP EPS to be in the range of $3.90 to $4.10, which includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.

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 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, 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-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar; current global economic, sovereign and political conditions and uncertainties, including the effect of new or proposed tariff or trade regulations as well as other new or changed domestic and foreign laws, regulations and policies; changes in inflation and interest rates; the impacts and costs of war, in particular as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East, and the possibility of further escalation resulting in new geopolitical and regulatory instability; the Chinese government's ongoing tightening of restrictions on procurement by government-funded customers; the Company's ability to access capital, maintain liquidity and service the Company's debt in volatile market conditions; risks related to the effects of any pandemic on our business, financial condition, results of operations and prospects; changes in timing and demand for the Company's products among the Company's customers and various market sectors, particularly as a result of fluctuations in their expenditures or ability to obtain funding; the ability to realize the expected benefits related to the Company's various cost-saving initiatives, including workforce reductions and organizational restructurings; the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers; changes in the competitive landscape as a result of changes in ownership, mergers and continued consolidation among the Company's competitors; regulatory, economic and competitive obstacles to new product introductions; lack of acceptance of new products and inability to grow organically through innovation; rapidly changing technology and product obsolescence; risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures, including risks associated with achieving the anticipated financial results and operational synergies; contingent purchase price payments and expansion of our business into new or developing markets; risks associated with unexpected disruptions in operations; failure to adequately protect the Company's intellectual property, infringement of intellectual property rights of third parties and inability to obtain licenses on commercially reasonable terms; the Company's ability to acquire adequate sources of supply and its reliance on outside contractors for certain components and modules, as well as disruptions to its supply chain; risks associated with third-party sales intermediaries and resellers; the impact and costs of changes in statutory or contractual tax rates in jurisdictions in which the Company operates as well as shifts in taxable income among jurisdictions with different effective tax rates, the outcome of ongoing and future tax examinations and changes in legislation affecting the Company's effective tax rate; the Company's ability to attract and retain qualified employees and management personnel; risks associated with cybersecurity and technology, including attempts by third parties to defeat the security measures of the Company and its third-party partners; 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, and in connection with government contracts; regulatory, environmental and logistical obstacles affecting the distribution of the Company's products, completion of purchase order documentation and the ability of customers to obtain letters of credit or other financing alternatives; risks associated with litigation and other legal and regulatory proceedings; and the impact and costs incurred from changes in accounting principles and practices. 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, 2023, as well as in the sections entitled "Special Note Regarding Forward-Looking Statements" and "Risk Factors" of the Company's quarterly reports on Form 10-Q for the quarterly periods ended March 30, 2024 and June 29, 2024, 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

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)
















Three Months Ended


Nine Months Ended


September 28,
2024


September 30,
2023


September 28,
2024


September 30,
2023









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





























Asia




$

251,329


$

238,228


5 %


(1 %)


6 %

Americas




279,136



275,479


1 %


0 %


1 %

Europe




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



































Asia




$

696,319


$

745,932


(7 %)


(3 %)


1 %


(5 %)


Americas




794,775



804,827


(1 %)


0 %


3 %


(4 %)


Europe




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