MILFORD, Mass.--(BUSINESS WIRE)--April 26, 1999--Waters Corporation (NYSE:WAT) reported today that first quarter 1999 sales increased by 16% over prior year levels, including the 1% favorable impact of foreign exchange rate comparisons. Earnings per diluted share (E.P.S.) were $0.69 for the quarter, representing a 38% increase over prior year E.P.S. of $0.50 excluding a nonrecurring charge in that period.
Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: ``First quarter performance was strong across all operating and financial fronts. Reported sales and earnings growth continued Waters' record of accelerating financial performance. The financial results were highlighted by a very strong $32 million of free cash flow for the quarter. Customer demand for the Company's products generally remained strong. In addition, sales in Japan and the Pacific Rim showed good growth this quarter, after a difficult period in 1998. Finally, over the past several months, the Company has introduced a variety of exciting new products across its technology platforms which position us well for the future.''
Waters Corporation holds worldwide leading positions in three complementary analytical technologies--high performance liquid chromatography, thermal analysis and mass spectrometry--which account for $3 billion in annual revenues of the $14 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 Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended March 31 1999 1998 Net sales 160,362 138,725 Cost of sales 60,622 51,920 Revaluation of acquired inventory (A) 0 16,500 Gross profit 99,740 70,305 Selling, general and administrative expenses 54,504 49,988 Research and development expenses 8,686 8,372 Goodwill and purchased technology amortization 2,045 2,275 Operating income 34,505 9,670 Interest expense, net 3,033 5,063 Income from operations before income taxes 31,472 4,607 Provision for income taxes 8,498 4,363 Net income 22,974 244 Less: preferred stock dividend and accretion 244 239 Net income available to common stockholders 22,730 5 Net income per basic common share 0.75 0.00 Net income per diluted common share 0.69 0.00 Weighted average number of basic common shares 30,447 29,708 Weighted average number of diluted common shares and equivalents 32,920 33,161 (A) Nonrecurring 1998 charge, no tax effect Waters Corporation and Subsidiaries Condensed Consolidated Balance Sheets March 31, December 31, 1999 1998 (Unaudited) Cash and cash equivalents 1,757 5,497 Accounts receivable 123,716 136,806 Inventories 77,492 80,281 Other current assets 29,424 29,040 Total current assets 232,389 251,624 Property, plant and equipment, net 88,596 89,029 Other assets 234,949 237,048 Total assets 555,934 577,701 Notes payable 6,014 4,259 Accounts payable and accrued expenses 173,517 181,314 Total current liabilities 179,531 185,573 Loans payable 180,580 218,250 Redeemable preferred stock 9,302 9,058 Other liabilities 9,097 14,701 Total liabilities 378,510 427,582 Total equity 177,424 150,119 Total liabilities and equity 555,934 577,701
Waters Corporation Brian Mazar, Vice President of Investor Relations 508-482-2193