MILFORD, Mass., Apr 22, 2008 (BUSINESS WIRE) -- Waters Corporation (NYSE/WAT) reported today first quarter 2008 sales of $372 million, an increase of 12% over sales of $331 million in the first quarter of 2007. Foreign currency translation contributed 6% to this reported sales growth rate. On a GAAP basis, earnings per diluted share (E.P.S.) for the first quarter grew 24% to $0.67, compared to $0.54 for the first quarter in 2007. On a non-GAAP basis, excluding purchased intangibles amortization in both periods (as noted in the attached reconciliation), E.P.S. grew 23% to $0.69 in the first quarter of 2008 from $0.56 in the first quarter of 2007.
Commenting on the quarter, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, "Despite challenging economic conditions, our global sales performance in combination with improvements in operational efficiency delivered impressive earnings growth and strong cash generation."
As communicated in a prior press release, Waters Corporation will webcast its first quarter 2008 financial results conference call this morning, April 22, 2008 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.com, choose "Investor" and click on the Live Webcast. A replay of the call will be available through April 29, 2008, similarly by webcast and also by phone at 402-220-6433.
About Waters Corporation:
Waters Corporation creates business advantage for laboratory-dependent organizations by delivering practical and sustainable innovation to enable significant advancements in such areas as healthcare delivery, environmental management, food safety, and water quality worldwide.
Pioneering a connected portfolio of separations science, laboratory information management, mass spectrometry and thermal analysis, Waters technology breakthroughs and laboratory solutions provide an enduring platform for customer success.
With revenue of $1.47 billion in 2007 and 5,000 employees, Waters is driving scientific discovery and operational excellence for customers worldwide. CAUTIONARY STATEMENT
This release may contain "forward-looking" statements regarding future results and events, including statements regarding expected financial results, future growth and customer demand that involve a number of risks and uncertainties. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words, "believes", "anticipates", "plans", "expects", "intends", "appears", "estimates", "projects", and similar expressions 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, the impact of changes in accounting principles or tax rates, the ability to successfully integrate acquired businesses, fluctuations in capital expenditures by the Company's customers, in particular large pharmaceutical companies, regulatory and/or administrative obstacles to the timely completion of purchase order documentation, introduction of competing products by other companies, such as improved research-grade mass spectrometers, and/or higher speed and/or more sensitive liquid chromatographs, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, other changes in the demands of the Company's healthcare and pharmaceutical company customers, changes in distribution of the Company's products, risks associated with lawsuits and other legal actions particularly involving claims for infringement of patents and other intellectual property rights, and foreign exchange rate fluctuations affecting translation of the Company's future non-U.S. operating results. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's annual report on Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission (the "SEC"), which "Risk Factors" discussion is incorporated by reference in this release. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release report 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.
Waters Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) (Unaudited) Three Months Ended March 29, March 31, 2008 2007 Net sales 371,712 330,777 Cost of sales 155,451 143,232 Gross profit 216,261 187,545 Selling and administrative expenses 105,837 93,907 Research and development expenses 19,786 18,722 Purchased intangibles amortization 2,272 2,125 Operating income 88,366 72,791 Interest expense, net (4,244) (6,835) Income from operations before income taxes 84,122 65,956 Provision for income taxes 15,647 10,019 Net income 68,475 55,937 Net income per basic common share $ 0.68 $ 0.55 Weighted-average number of basic common shares 100,401 101,416 Net income per diluted common share $ 0.67 $ 0.54 Weighted-average number of diluted common shares and equivalents 101,983 103,198 (Unaudited) Three Months Ended March 29, March 31, 2008 2007 Reconciliation of net income per diluted share, in accordance with generally accepted accounting principles, with adjusted results: Net income per diluted share $ 0.67 $ 0.54 --------- --------- Adjustment for purchased intangibles amortization, net of tax 1,603 1,638 Net income per diluted share effect 0.02 0.02 --------- --------- Adjusted net income per diluted share $ 0.69 $ 0.56 ========= ========= The adjusted net income per diluted share presented above is used by the management of the Company to measure operating performance with prior periods and is not in accordance with generally accepted accounting principles (GAAP). The above reconciliation identifies items management has excluded as non-operational transactions. Management has excluded the purchased intangibles amortization from its non-GAAP adjusted amounts since management believes that this charge is not directly related to ongoing operations thereby providing investors with information that helps to compare ongoing operating performance. Waters Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In thousands and unaudited) March 29, December 2008 31, 2007 Cash, cash equivalents and short-term investments 758,528 693,014 Accounts receivable 317,009 317,792 Inventories 196,831 175,888 Other current assets 49,330 50,368 Total current assets 1,321,698 1,237,062 Property, plant and equipment, net 163,872 160,856 Other assets 488,778 483,137 Total assets 1,974,348 1,881,055 Notes payable and debt 279,301 384,176 Accounts payable and accrued expenses 284,379 274,258 Total current liabilities 563,680 658,434 Long-term debt 650,000 500,000 Other long-term liabilities 143,703 136,545 Total liabilities 1,357,383 1,294,979 Total equity 616,965 586,076 Total liabilities and equity 1,974,348 1,881,055
SOURCE: Waters CorporationWaters Corporation
Gene Cassis, 508-482-2349
Vice President of Investor Relations