EX-99.1 2 b66237wcexv99w1.htm EX-99.1 WATERS CORPORATION PRESS RELEASE DATED JULY 24, 2007 exv99w1
 

EXHIBIT 99.1   
For Immediate Release
Contact:   Gene Cassis, Vice President of Investor Relations, 508-482-2349
Waters Corporation Reports Strong 17% Second Quarter 2007 Sales Growth
Milford, Massachusetts, July 24, 2007 — Waters Corporation (NYSE/WAT) reported today second quarter 2007 sales of $353 million, an increase of 17% over sales of $302 million in the second quarter of 2006. Foreign currency translation contributed 2% to this reported sales growth rate. On a GAAP basis, earnings per diluted share (E.P.S.) for the second quarter were $0.59, compared to $0.46 for the second quarter in 2006. On a non-GAAP basis, including the adjustments noted in the attached reconciliation, E.P.S. grew 22% to $0.60 in the second quarter of 2007 from $0.49 in the second quarter of 2006.
Through the first six months of 2007, sales for the Company were $683 million, a 15% increase over sales in the first six months of 2006 of $592 million. Foreign currency translation contributed 2% to this reported sales growth rate. E.P.S. through the first six months of 2007 were $1.13 compared to $0.87 for the comparable period in 2006. On a non-GAAP basis and including adjustments on the attached reconciliation, E.P.S. grew 22% in the first six months of 2007 to $1.16 from $0.95 in 2006.
Commenting on the quarter, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “The generally broad-based growth that we experienced in the first quarter accelerated with continued rapid uptake of our new products and strengthening demand from life science customers, including our large pharmaceutical accounts. Our first half results are very encouraging and we are optimistic that our new system offerings will continue to stimulate demand going forward.”
As communicated in a prior press release, Waters Corporation will webcast its second quarter 2007 financial results conference call this morning, July 24, 2007 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.info, choose Investor Relations and click on the Live Webcast. A replay of the call will be available through July 31, 2007, similarly by webcast and also by phone at 203-369-2024
Waters Corporation holds worldwide leading positions in three complementary analytical technologies - liquid chromatography, mass spectrometry, and thermal analysis. These markets account for approximately $5.0 billion of the estimated $20 - $25 billion analytical instrumentation market.

 

 

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, 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, 2006 and quarterly report on Form 10-Q for the period ended March 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
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
                 
    June 30, 2007     December 31, 2006  
 
                
Cash and cash equivalents
     544,304       514,166  
Accounts receivable
     270,015       272,157  
Inventories
     178,491       168,437  
Other current assets
     41,597       44,920  
Total current assets
     1,034,407       999,680  
 
                
Property, plant and equipment, net
     151,967       149,262  
Other assets
     480,367       468,371  
Total assets
     1,666,741       1,617,313  
 
                
Notes payable and debt
     389,418       403,461  
Accounts payable and accrued expenses
     254,433       282,373  
Total current liabilities
     643,851       685,834  
 
                
Long-term debt
     500,000       500,000  
Other long-term liabilities
     144,211       69,096  
Total liabilities
     1,288,062       1,254,930  
 
                
Total equity
     378,679       362,383  
Total liabilities and equity
     1,666,741       1,617,313  

 

Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                 
    (Unaudited)     (Unaudited)  
    Three Months Ended     Six Months Ended  
    June 30, 2007     July 1, 2006     June 30, 2007     July 1, 2006  
 
                                
Net sales
     352,630       301,899       683,407       592,117  
Cost of sales
     152,219       126,004       295,451       246,632  
 
                                
Gross profit
     200,411       175,895       387,956       345,485  
 
                                
Selling and administrative expenses
     102,223       88,968       196,130       174,506  
Research and development expenses
     19,115       19,655       37,837       38,698  
Purchased intangibles amortization
     2,133       1,383       4,258       2,577  
Restructuring and other unusual charges (1)
     —       2,974       —       7,326  
 
                                
Operating income
     76,940       62,915       149,731       122,378  
 
                                
Interest expense, net
     (6,396 )     (6,272 )     (13,231 )     (12,408 )
Income from operations before income taxes
     70,544       56,643       136,500       109,970  
 
                                
Provision for income taxes
     10,635       8,863       20,654       18,035  
 
                                
Net income
     59,909       47,780       115,846       91,935  
 
                                
Net income per basic common share
   $ 0.60     $ 0.46     $ 1.15     $ 0.89  
 
                                
Weighted average number of basic common shares
     100,327       103,010       100,880       103,795  
 
                                
Net income per diluted common share
   $ 0.59     $ 0.46     $ 1.13     $ 0.87  
 
                                
Weighted average number of diluted common shares and equivalents
     102,130       104,337       102,702       105,192  
(1)   The results for the three and six months ended July 1, 2006 include restructuring and other incremental costs in relation to a cost reduction plan implemented in February 2006.
                                 
    (Unaudited)     (Unaudited)  
    Three Months Ended     Six Months Ended  
    June 30, 2007     July 1, 2006     June 30, 2007     July 1, 2006  
Reconciliation of income per diluted share, in accordance with generally accepted accounting principles, with adjusted results:
                                
 
                                
Income per diluted share
   $ 0.59     $ 0.46     $ 1.13     $ 0.87  
 
                        
 
                                
Adjustment for purchased intangibles amortization, net of tax
     1,648       1,201       3,286       2,208  
Income per diluted share effect
     0.02       0.01       0.03       0.02  
 
                        
 
                                
Adjustment for restructuring and other unusual charges, net of tax
     —       2,477       —       6,037  
Income per diluted share effect
     —       0.02       —       0.06  
 
                        
 
                                
Adjusted income per diluted share:
   $ 0.60     $ 0.49     $ 1.16     $ 0.95  
 
                        
The adjusted 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 restructuring charges and purchased intangibles amortization from its non-GAAP adjusted amounts since management believes that these charges are not directly related to ongoing operations thereby providing investors with information that helps to compare ongoing operating performance.