Earnings Per Diluted Share Up 32% Excluding Nonrecurring ChargeMILFORD, Mass.--April 27, 1998--Waters Corporation (NYSE:WAT) reported today that first quarter 1998 sales increased by 35% over prior year levels. Sales grew by 39% excluding the unfavorable impact of foreign currency exchange rate comparisons. Earnings per diluted share (E.P.S.) excluding a nonrecurring charge related to the Company's Micromass Limited (Micromass) acquisition were $0.50 for the quarter, representing a 32% increase over prior year E.P.S. of $0.38. After the nonrecurring $16.5 million charge for the revaluation of inventory purchased in the 1997 acquisition of Micromass, the Company reported first quarter 1998 E.P.S. of $0.00.
Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: ''I'm extremely pleased with our first quarter results and start to 1998. The Company's operating and financial performance was strong across all lines of business. Worldwide sales of core high performance liquid chromatography (HPLC) and thermal analysis products grew by 11% excluding currency effects. Our new mass spectrometry business, added in September 1997 with the acquisition of Micromass, also contributed strongly to the Company's performance and added 28% points of sales growth for the quarter. And, on a stand-alone basis, Micromass sales grew much faster than the Company's core HPLC business. Overall Company sales growth for the quarter was 39% before currency effects.
First quarter customer demand was very strong worldwide with the exception of the Far East. This strength, particularly in the U.S. and Europe, more than offset weaker performance in Japan and the Pacific Rim.''
Waters Corporation holds worldwide leading positions in three complementary analytical technologies- HPLC, thermal analysis and mass spectrometry -which account for $3 billion in annual revenues of the $12 billion analytical instrument industry total.
Certain statements contained herein are forward looking. Many factors could cause actual results to differ from these statements, including loss of market share through competition, introduction of competing products by other companies, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, changes in the healthcare market and the pharmaceutical industry, changes in distribution of the Company's products, and interest rate and foreign exchange fluctuations. Such factors are discussed in detail in the Company's filings with the Securities and Exchange Commission.
Waters Corporation and Subsidiaries Consolidated Statement of Operations (In thousands, except per share data) (Unaudited) Three Months Ended March 31 1998 1997 Net sales 138,725 102,431 Cost of sales 51,920 37,765 Revaluation of acquired inventory (A) 16,500 0 Gross profit 70,305 64,666 Selling, general and administrative expenses 49,988 39,076 Research and development expenses 8,372 5,786 Goodwill and purchased technology amortization 2,275 1,357 Operating income 9,670 18,447 Interest expense, net 5,063 3,024 Income from operations before income taxes 4,607 15,423 Provision for income taxes 4,363 3,085 Net income 244 12,338 Less: preferred stock dividend and accretion 239 234 Net income available to common stockholders 5 12,104 Net income per basic common share 0.00 0.42 Net income per diluted common share 0.00 0.38 Weighted average number of basic common shares 29,708 28,927 Weighted average number of diluted common shares and equivalents 33,161 31,867 (A) Nonrecurring 1998 charge, no tax effect Waters Corporation and Subsidiaries Condensed Consolidated Balance Sheets March 31, December 31, 1998 1997 (Unaudited) Cash and cash equivalents 2,591 3,113 Accounts receivable 114,369 111,022 Inventories 79,516 87,375 Other current assets 16,425 11,614 Total current assets 212,901 213,124 Property, plant and equipment, net 89,621 88,668 Other assets 247,292 250,267 Total assets 549,814 552,059 Notes payable 8,924 7,394 Accounts payable and accrued expenses 170,035 163,262 Total current liabilities 178,959 170,656 Loans payable 292,955 305,340 Redeemable preferred stock 8,335 8,096 Other liabilities 5,653 5,670 Total liabilities 485,902 489,762 Total equity 63,912 62,297 Total liabilities and equity 549,814 552,059
Waters Corporation Brian Mazar, Vice President of Investor Relations 508-482-2193