MILFORD, Mass.--(BUSINESS WIRE)--Jan. 24, 2000--Waters Corporation (NYSE/WAT) reported today that fourth quarter 1999 sales increased by 15% over prior year levels before unfavorable currency effects. After currency effects, reported sales growth was 12%. Earnings per diluted share (E.P.S.) were $0.63 for the quarter, representing a 29% increase over prior year E.P.S. of $0.49.
For the full year 1999, sales grew by 14% and E.P.S., at $1.84, represented a 32% increase over 1998 excluding a nonrecurring charge in that year. Currency effects were negligible on a full year basis.
Free cash flow, before financing activities and acquisition expenditures, was $31.9 million for the fourth quarter and $126.7 million for the full year 1999.
Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "The fourth quarter was a fitting way to conclude 1999, an impressive year overall for the Company. Fourth quarter sales growth was strong and broadbased across the geographic areas in which we operate. From a technology perspective, our high performance liquid chromatography and mass spectrometry lines led the growth. Most notably, sales of our time-of-flight mass spectrometry products grew in excess of 40% in the quarter, reflecting the increasing demand from life science customers for our drug discovery and proteomics tools. These tools enable the precise analysis and characterization of proteins in life science research and the pursuit of new drug discovery. From a market perspective, demand from our pharmaceutical customer segment was most robust.
Our financial results reflected the power of our business performance as operating margins continued to expand, earnings grew faster than sales and cash flow continued to be healthy.
We enter the year 2000 with an excellent foundation of existing products which, coupled with an encouraging research and development pipeline of new products, prepares 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 $3.5 billion in annual revenues of the $16 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. -0-
Waters Corporation and Subsidiaries Consolidated Statements of Operations ( In thousands, except per share data) (Unaudited) Three Months Year Ended December 31 Ended December 31 1999 1998 1999 1998 Net sales 200,668 178,984 704,400 618,813 Cost of sales 70,899 66,897 257,136 232,497 Revaluation of acquired inventory(A) 0 0 0 16,500 Gross profit 129,769 112,087 447,264 369,816 Selling, general and administrative expenses 59,477 54,995 226,593 206,211 Research and development expenses 9,753 9,303 36,094 34,433 Goodwill and purchased technology amortization 1,990 2,304 8,068 9,347 Operating income 58,549 45,485 176,509 119,825 Interest expense, net 1,742 3,911 8,948 18,278 Income from operations before income taxes 56,807 41,574 167,561 101,547 Provision for income taxes 15,339 9,488 45,243 27,148 Net income 41,468 32,086 122,318 74,399 Less: preferred stock dividend and accretion, net of gain (294) 243 442 963 Net income available to common stockholders 41,762 31,843 121,876 73,436 Net income per basic common share 0.67 0.53 1.98 1.23 Net income per diluted common share 0.63 0.49 1.84 1.14 Weighted average number of basic common shares 62,204 60,330 61,506 59,860 Weighted avg. number of diluted common shares and equivalents 66,621 65,228 66,316 64,642 (A) Nonrecurring first quarter 1998 charge, no associated tax effects Waters Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) December 31, 1999 (Unaudited) December 31, 1998 Cash and cash equivalents 3,803 5,497 Accounts receivable 149,271 136,806 Inventories 80,363 80,281 Other current assets 13,893 16,448 Total current assets 247,330 239,032 Property, plant and equipment, net 91,841 89,029 Other assets 246,159 249,640 Total assets 585,330 577,701 Notes payable 4,189 4,259 Accounts payable and accrued expenses 184,570 181,314 Total current liabilities 188,759 185,573 Loans payable 91,080 218,250 Redeemable preferred stock 0 9,058 Other liabilities 13,329 14,701 Total liabilities 293,168 427,582 Total equity 292,162 150,119 Total liabilities and equity 585,330 577,701 CONTACT: Waters Corporation Brian Mazar, 508/482-2193