Highlights
Fourth Quarter 2024
Sales of $873 million exceeded high-end of guidance range, grew 6% as reported and 8% in constant currencyInstruments grew 8% and recurring revenue grew 9% in constant currency, as growth accelerated across all three reported regionsPharma grew 10% in constant currency, reflecting stronger-than-expected year-end spending dynamics and broad-based growth across the Americas, Europe, and AsiaGAAP EPS of $3.88; non-GAAP EPS of $4.10 grew 13% as strong operational performance and better-than-expected sales volume offset foreign exchange headwinds
Full-Year 2024
Sales exceeded guidance at $2,958 million, flat as reported and in organic constant currencyGAAP operating income margin of 27.9%; operational excellence drove adjusted operating income margin expansion to 31.0%, effectively neutralizing the challenges posed by foreign exchange headwindsGAAP EPS of $10.71; non-GAAP EPS of $11.86 grew 1% versus 2023, which includes a 5% impact due to foreign exchange headwindsGenerated $762 million in operating cash flow; $744 million in free cash flow, representing 25% of full-year sales, and a free cash flow to adjusted net income ratio of 105%
MILFORD, Mass., Feb. 12, 2025 /PRNewswire/ — Waters Corporation (NYSE: WAT) today announced its financial results for the fourth quarter and full-year 2024.
Sales for the fourth quarter of 2024 were $873 million, an increase of 6% as reported, compared to sales of $819 million for the fourth quarter of 2023. Currency translation decreased sales by 2%.
On a GAAP basis, diluted earnings per share (EPS) for the fourth quarter of 2024 was $3.88, compared to $3.65 for the fourth quarter of 2023. On a non-GAAP basis, EPS increased by 13% to $4.10, compared to $3.62 for the fourth quarter of 2023. This includes a decline of approximately 9% due to foreign exchange headwinds, which were 6% or $0.23 adverse to guidance.
“We delivered excellent results in the fourth quarter, led by double-digit growth in Pharma, while instruments and recurring revenue both grew high single-digits in constant currency,” said Dr. Udit Batra, President & CEO, Waters Corporation. “Growth accelerated across all regions, driven by strong adoption of new products and the success of our strategic initiatives.”
Dr. Batra continued, “Our team has done a commendable job of consistently executing our strategy and delivering a second consecutive year of margin expansion while overcoming significant headwinds in foreign exchange, volume, and inflation. With the strong operational execution, the traction of our differentiated portfolio and the success of our strategic initiatives, Waters is very well positioned for the next phase of growth.”
Fourth Quarter 2024
During the fourth quarter of 2024, sales into the pharmaceutical market increased 8% as reported and 10% in constant currency. Sales into the industrial market increased 1% as reported and 2% in constant currency. Sales into the academic and government market increased 15% as reported and 16% in constant currency.
During the quarter, instrument system sales increased 6% as reported and 8% in constant currency. Recurring revenues, which represent the combination of service and precision chemistries, increased 7% as reported and 9% in constant currency.
Geographically, sales in Asia during the quarter increased 4% as reported and 9% in constant currency. Sales in the Americas increased 6% as reported and in constant currency. Sales in Europe increased 10% as reported and 11% in constant currency.
Full-Year 2024
Sales for the fiscal year 2024 were $2,958 million, flat as reported, compared to sales of $2,956 million for fiscal year 2023. Currency translation decreased sales by approximately 1%, while the impact of acquisitions increased sales by approximately 1%.
On a GAAP basis, EPS for fiscal year 2024 was $10.71, compared to $10.84 for fiscal year 2023. On a non-GAAP basis, EPS increased by 1% to $11.86, compared to $11.75 for fiscal year 2023. This includes a decline of approximately 5% due to foreign exchange headwinds, which were 2% adverse to guidance.
Unless otherwise noted, sales growth and decline percentages are presented on an as-reported basis. A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company’s website www.waters.com in the Investor Relations section.
Full-Year and First Quarter 2025 Financial Guidance
Full-Year 2025 Financial Guidance
The Company expects full-year 2025 constant currency sales growth to be in the range of +4.5% to +7.0%. Currency translation is expected to decrease full-year sales growth by approximately 2.0%. The resulting full-year 2025 reported sales growth is expected in the range of +2.5% to +5.0%.
The Company expects full-year 2025 non-GAAP EPS to be in the range of $12.70 to $13.00, which includes an estimated headwind of approximately 4% due to unfavorable foreign exchange.
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year.
First Quarter 2025 Financial Guidance
The Company expects first quarter 2025 constant currency sales growth to be in the range of +4.0% to +7.0%. Currency translation is expected to decrease first quarter sales growth by approximately 3.0%. The resulting first quarter 2025 reported sales growth is expected in the range of +1.0% to +4.0%.
The Company expects first quarter 2025 non-GAAP EPS to be in the range of $2.17 to $2.25, which includes an estimated headwind of approximately 7% due to unfavorable foreign exchange.
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the first quarter.
Conference Call Details
Waters Corporation will webcast its fourth quarter 2024 financial results conference call today, February 12, 2025, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select “Investor Relations” under the “About Waters” section, navigate to “Events & Presentations,” and click on the “Webcast.” A replay will be available through at least March 5, 2025.
About Waters Corporation
Waters Corporation (NYSE:WAT) is a global leader in analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences for over 65 years. Our Company helps ensure the efficacy of medicines, the safety of food and the purity of water, and the quality and sustainability of products used every day. In over 100 countries, our 7,600 passionate employees collaborate with customers in laboratories, manufacturing sites, and hospitals to accelerate the benefits of pioneering science.
Non-GAAP Financial Measures
This press release contains financial measures, such as organic constant currency growth rates, adjusted operating income, adjusted net income, adjusted earnings per diluted share and free cash flow, among others, which are considered “non-GAAP” financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results, comparison to competitors’ operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.
Cautionary Statement
This release contains “forward-looking” statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words “feels”, “believes”, “anticipates”, “plans”, “expects”, “intends”, “suggests”, “appears”, “estimates”, “projects” and similar expressions, whether in the negative or affirmative, 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, risks related to, and expectations or ability to realize commercial success of the Wyatt transaction; the impact of this transaction on the Company’s business, anticipated progress on Waters’ research programs, development of new analytical instruments and associated software or consumables, manufacturing development and capabilities; the increased indebtedness of the Company as a result of the Wyatt transaction, the repayment of which could impact the Company’s future results, market prospects for its products and sales and earnings guidance; foreign currency exchange rate fluctuations potentially affecting translation of the Company’s future non-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar; current global economic, sovereign and political conditions and uncertainties, including the effect of new or proposed tariff or trade regulations as well as other new or changed domestic and foreign laws, regulations and policies; changes in inflation and interest rates; the impacts and costs of war, in particular as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East, and the possibility of further escalation resulting in new geopolitical and regulatory instability; the Chinese government’s ongoing tightening of restrictions on procurement by government-funded customers; the Company’s ability to access capital, maintain liquidity and service the Company’s debt in volatile market conditions; risks related to the effects of any pandemic on our business, financial condition, results of operations and prospects; changes in timing and demand for the Company’s products among the Company’s customers and various market sectors, particularly as a result of fluctuations in their expenditures or ability to obtain funding; the ability to realize the expected benefits related to the Company’s various cost-saving initiatives, including workforce reductions and organizational restructurings; the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers; changes in the competitive landscape as a result of changes in ownership, mergers and continued consolidation among the Company’s competitors; regulatory, economic and competitive obstacles to new product introductions; lack of acceptance of new products and inability to grow organically through innovation; rapidly changing technology and product obsolescence; risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures, including risks associated with achieving the anticipated financial results and operational synergies; contingent purchase price payments and expansion of our business into new or developing markets; risks associated with unexpected disruptions in operations; failure to adequately protect the Company’s intellectual property, infringement of intellectual property rights of third parties and inability to obtain licenses on commercially reasonable terms; the Company’s ability to acquire adequate sources of supply and its reliance on outside contractors for certain components and modules, as well as disruptions to its supply chain; risks associated with third-party sales intermediaries and resellers; the impact and costs of changes in statutory or contractual tax rates in jurisdictions in which the Company operates as well as shifts in taxable income among jurisdictions with different effective tax rates, the outcome of ongoing and future tax examinations and changes in legislation affecting the Company’s effective tax rate; the Company’s ability to attract and retain qualified employees and management personnel; risks associated with cybersecurity and technology, including attempts by third parties to defeat the security measures of the Company and its third-party partners; increased regulatory burdens as the Company’s business evolves, especially with respect to the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, among others, and in connection with government contracts; regulatory, environmental and logistical obstacles affecting the distribution of the Company’s products, completion of purchase order documentation and the ability of customers to obtain letters of credit or other financing alternatives; risks associated with litigation and other legal and regulatory proceedings; and the impact and costs incurred from changes in accounting principles and practices. Such factors and others are discussed more fully in the sections entitled “Forward-Looking Statements” and “Risk Factors” of the Company’s annual report on Form 10-K for the year ended December 31, 2023, as well as in the sections entitled “Special Note Regarding Forward-Looking Statements” and “Risk Factors” of the Company’s quarterly reports on Form 10-Q for the quarterly periods ended March 30, 2024, June 29, 2024, and September 28, 2024, as filed with the Securities and Exchange Commission (“SEC”), which discussions are incorporated by reference in this release, as updated by the Company’s future filings with the SEC. The forward-looking statements included in this release represent the Company’s estimates or views as of the date of this release 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. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Net sales
$ 872,714
$ 819,474
$ 2,958,387
$ 2,956,416
Costs and operating expenses:
Cost of sales
348,516
318,360
1,200,201
1,195,223
Selling and administrative expenses
173,268
180,357
690,148
736,014
Research and development expenses
46,914
44,386
183,027
174,945
Purchased intangibles amortization
11,753
12,148
47,090
32,558
Litigation provision
–
–
11,568
–
Operating income
292,263
264,223
826,353
817,676
Other (expense) income, net
(843)
(557)
776
807
Interest expense, net
(14,437)
(26,066)
(72,261)
(82,240)
Income from operations before income taxes
276,983
237,600
754,868
736,243
Provision for income taxes
45,585
21,395
117,034
94,009
Net income
$ 231,398
$ 216,205
$ 637,834
$ 642,234
Net income per basic common share
$ 3.90
$ 3.66
$ 10.75
$ 10.87
Weighted-average number of basic common shares
59,386
59,142
59,333
59,076
Net income per diluted common share
$ 3.88
$ 3.65
$ 10.71
$ 10.84
Weighted-average number of diluted common shares and equivalents
59,645
59,311
59,552
59,270
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Three Months Ended December 31, 2024 and December 31, 2023
(In thousands)
Constant
Three Months Ended
Percent
Impact of
Currency
December 31, 2024
December 31, 2023
Change
Currency
Growth Rate (a)
NET SALES – OPERATING SEGMENTS
Waters
$
764,309
$
716,932
7 %
(2 %)
8 %
TA
108,405
102,542
6 %
(1 %)
7 %
Total
$
872,714
$
819,474
6 %
(2 %)
8 %
NET SALES – PRODUCTS & SERVICES
Instruments
$
419,616
$
397,201
6 %
(2 %)
8 %
Service
301,844
278,888
8 %
(1 %)
9 %
Chemistry
151,254
143,385
5 %
(2 %)
7 %
Total Recurring
453,098
422,273
7 %
(2 %)
9 %
Total
$
872,714
$
819,474
6 %
(2 %)
8 %
NET SALES – GEOGRAPHY
Asia
$
272,903
$
261,893
4 %
(5 %)
9 %
Americas
321,005
303,746
6 %
0 %
6 %
Europe
278,806
253,835
10 %
(1 %)
11 %
Total
$
872,714
$
819,474
6 %
(2 %)
8 %
NET SALES – MARKETS
Pharmaceutical
$
498,807
$
463,698
8 %
(3 %)
10 %
Industrial
264,027
260,249
1 %
(1 %)
2 %
Academic & Government
109,880
95,527
15 %
(1 %)
16 %
Total
$
872,714
$
819,474
6 %
(2 %)
8 %
(a)
The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation’s net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release.
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Twelve Months Ended December 31, 2024 and December 31, 2023
(In thousands)
Organic
Constant
Twelve Months Ended
Percent
Impact of
Impact of
Currency
December 31, 2024
December 31, 2023
Change
Currency
Acquisitions
Growth Rate (a)
NET SALES – OPERATING SEGMENTS
Waters
$
2,604,421
$
2,601,590
0 %
(1 %)
1 %
0 %
TA
353,966
354,826
0 %
(1 %)
0 %
1 %
Total
$
2,958,387
$
2,956,416
0 %
(1 %)
1 %
0 %
NET SALES – PRODUCTS & SERVICES
Instruments
$
1,278,695
$
1,361,581
(6 %)
(1 %)
2 %
(7 %)
Service
1,114,211
1,053,366
6 %
(1 %)
1 %
6 %
Chemistry
565,481
541,469
4 %
(1 %)
0 %
5 %
Total Recurring
1,679,692
1,594,835
5 %
(1 %)
0 %
6 %
Total
$
2,958,387
$
2,956,416
0 %
(1 %)
1 %
0 %
NET SALES – GEOGRAPHY
Asia
$
969,222
$
1,007,825
(4 %)
(4 %)
1 %
(1 %)
Americas
1,115,780
1,108,573
1 %
0 %
2 %
(1 %)
Europe
873,385
840,018
4 %
1 %
1 %
2 %
Total
$
2,958,387
$
2,956,416
0 %
(1 %)
1 %
0 %
NET SALES – MARKETS
Pharmaceutical
$
1,718,899
$
1,696,875
1 %
(2 %)
2 %
1 %
Industrial
908,486
909,003
0 %
0 %
0 %
0 %
Academic & Government
331,002
350,538
(6 %)
0 %
1 %
(7 %)
Total
$
2,958,387
$
2,956,416
0 %
(1 %)
1 %
0 %
(a)
The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation’s net sales. Organic constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. See description of non-GAAP financial measures contained in this release.
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Financials
Three and Twelve Months Ended December 31, 2024 and December 31, 2023
(In thousands, except per share data)
Income from
Operations
Selling &
Research &
Operating
Other
before
Provision for
Diluted
Administrative
Development
Operating
Income
(Expense)
Income
Income
Net
Earnings
Expenses(a)
Expenses
Income
Percentage
Income
Taxes
Taxes
Income
per Share
Three Months Ended December 31, 2024
GAAP
$
185,021
$
46,914
$
292,263
33.5 %
$
(843)
$
276,983
$
45,585
$
231,398
$
3.88
Adjustments:
Purchased intangibles amortization (b)
(11,753)
–
11,753
1.3 %
–
11,753
2,813
8,940
0.15
Restructuring costs and certain other items (d)
(1,480)
–
1,480
0.2 %
–
1,480
354
1,126
0.02
ERP implementation and transformation costs (h)
(1,346)
–
1,346
0.2 %
–
1,346
337
1,009
0.02
Retention bonus obligation (f)
(1,911)
(636)
2,547
0.3 %
–
2,547
612
1,935
0.03
Adjusted Non-GAAP
$
168,531
$
46,278
$
309,389
35.5 %
$
(843)
$
294,109
$
49,701
$
244,408
$
4.10
Three Months Ended December 31, 2023
GAAP
$
192,505
$
44,386
$
264,223
32.2 %
$
(557)
$
237,600
$
21,395
$
216,205
$
3.65
Adjustments:
Purchased intangibles amortization (b)
(12,148)
–
12,148
1.5 %
–
12,148
2,906
9,242
0.16
Restructuring costs and certain other items (d)
(1,036)
–
1,036
0.1 %
130
1,166
266
900
0.02
Acquisition related costs (e)
(649)
–
649
0.1 %
–
649
156
493
0.01
Retention bonus obligation (f)
(5,725)
(1,909)
7,634
0.9 %
–
7,634
1,832
5,802
0.10
Certain income tax items (g)
–
–
–
–
–
–
17,651
(17,651)
(0.30)
Adjusted Non-GAAP
$
172,947
$
42,477
$
285,690
34.9 %
$
(427)
$
259,197
$
44,206
$
214,991
$
3.62
Twelve Months Ended December 31, 2024
GAAP
$
748,806
$
183,027
$
826,353
27.9 %
$
776
$
754,868
$
117,034
$
637,834
$
10.71
Adjustments:
Purchased intangibles amortization (b)
(47,090)
–
47,090
1.6 %
–
47,090
11,269
35,821
0.60
Litigation provision and settlement (c)
(11,568)
–
11,568
0.4 %
–
11,568
2,776
8,792
0.15
Restructuring costs and certain other items (d)
(12,160)
–
12,160
0.4 %
–
12,160
2,971
9,189
0.15
ERP implementation and transformation costs (h)
(1,346)
–
1,346
0.0 %
–
1,346
337
1,009
0.02
Retention bonus obligation (f)
(13,362)
(4,453)
17,815
0.6 %
–
17,815
4,276
13,539
0.23
Adjusted Non-GAAP
$
663,280
$
178,574
$
916,332
31.0 %
$
776
$
844,847
$
138,663
$
706,184
$
11.86
Twelve Months Ended December 31, 2023
GAAP
$
768,572
$
174,945
$
817,676
27.7 %
$
807
$
736,243
$
94,009
$
642,234
$
10.84
Adjustments:
Purchased intangibles amortization (b)
(32,558)
–
32,558
1.1 %
–
32,558
7,758
24,800
0.42
Restructuring costs and certain other items (d)
(29,917)
–
29,917
1.0 %
(521)
29,396
7,126
22,270
0.38
Acquisition related costs (e)
(13,947)
–
13,947
0.5 %
–
13,947
3,347
10,600
0.18
Retention bonus obligation (f)
(14,093)
(4,699)
18,792
0.6 %
–
18,792
4,510
14,282
0.24
Certain income tax items (g)
–
–
–
–
–
–
17,651
(17,651)
(0.30)
Adjusted Non-GAAP
$
678,057
$
170,246
$
912,890
30.9 %
$
286
$
830,936
$
134,401
$
696,535
$
11.75
(a)
Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements.
(b)
The purchased intangibles amortization, a non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time.
(c)
Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly.
(d)
Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses of a specific function or geographic location of the Company.
(e)
Acquisition related costs include all incremental expenses incurred, such as advisory, legal, accounting, tax, valuation, and other professional fees. The Company believes that these costs are not normal and do not represent future ongoing business expenses.
(f)
In connection with the Wyatt acquisition, the Company started to recognize a two-year retention bonus obligation that is contingent upon the employee’s providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses.
(g)
Certain income tax items were excluded as these non-cash expenses and benefits represent updates in management’s assessment of ongoing examinations, tax audit settlements, or other tax items that are not indicative of the Company’s normal or future income tax expense.
(h)
ERP implementation and transformation costs represent costs related to the Company’s initiative to transition from its legacy enterprise resource planning (ERP) system to a new global ERP solution with a cloud-based infrastructure. These costs, which do not represent normal or future ongoing business expenses, are one-time, non-recurring costs related to the establishment of our new global ERP solution that were determined to be non-capitalizable in accordance with accounting standards.
Waters Corporation and Subsidiaries
Preliminary Condensed Unclassified Consolidated Balance Sheets
(In thousands and unaudited)
December 31, 2024
December 31, 2023
Cash, cash equivalents and investments
$ 325,355
$ 395,974
Accounts receivable
733,365
702,168
Inventories
477,261
516,236
Property, plant and equipment, net
651,200
639,073
Intangible assets, net
567,906
629,187
Goodwill
1,295,720
1,305,446
Other assets
502,988
438,770
Total assets
$ 4,553,795
$ 4,626,854
Notes payable and debt
$ 1,626,488
$ 2,355,513
Other liabilities
1,098,800
1,121,000
Total liabilities
2,725,288
3,476,513
Total stockholders’ equity
1,828,507
1,150,341
Total liabilities and stockholders’ equity
$ 4,553,795
$ 4,626,854
Waters Corporation and Subsidiaries
Preliminary Condensed Consolidated Statements of Cash Flows
Three and Twelve Months Ended December 31, 2024 and December 31, 2023
(In thousands and unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Cash flows from operating activities:
Net income
$ 231,398
$ 216,205
$ 637,834
$ 642,234
Adjustments to reconcile net income to net
cash provided by operating activities:
Stock-based compensation
11,716
4,644
44,709
36,868
Depreciation and amortization
48,575
48,060
191,825
165,905
Change in operating assets and liabilities and other, net
(51,550)
(38,787)
(112,245)
(242,198)
Net cash provided by operating activities
240,139
230,122
762,123
602,809
Cash flows from investing activities:
Additions to property, plant, equipment
and software capitalization
(52,104)
(41,588)
(142,481)
(160,632)
Business acquisitions, net of cash acquired
–
3,553
–
(1,282,354)
Proceeds from (investments in) unaffiliated companies
–
91
(1,489)
742
Net change in investments
(9)
–
(53)
(21)
Net cash used in investing activities
(52,113)
(37,944)
(144,023)
(1,442,265)
Cash flows from financing activities:
Net change in debt
(200,000)
(150,001)
(730,000)
779,600
Proceeds from stock plans
5,293
11,700
30,366
29,792
Purchases of treasury shares
(66)
156
(13,541)
(70,277)
Other cash flow from financing activities, net
1,195
7,658
16,500
15,836
Net cash (used in) provided by financing activities
(193,578)
(130,487)
(696,675)
754,951
Effect of exchange rate changes on cash and cash equivalents
(541)
(3,029)
7,920
(948)
(Decrease) increase in cash and cash equivalents
(6,093)
58,662
(70,655)
(85,453)
Cash and cash equivalents at beginning of period
330,514
336,414
395,076
480,529
Cash and cash equivalents at end of period
$ 324,421
$ 395,076
$ 324,421
$ 395,076
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a)
Net cash provided by operating activities – GAAP
$ 240,139
$ 230,122
$ 762,123
$ 602,809
Adjustments:
Additions to property, plant, equipment
and software capitalization
(52,104)
(41,588)
(142,481)
(160,632)
Tax reform payments
–
–
95,645
72,101
Litigation settlements (received) paid, net
–
(375)
9,250
(1,500)
Major facility renovations
–
3,494
–
15,645
Payment of acquired Wyatt liabilities (b)
–
–
–
25,617
Payment of Wyatt retention bonus obligation (c)
–
–
19,770
–
Free Cash Flow – Adjusted Non-GAAP
$ 188,035
$ 191,653
$ 744,307
$ 554,040
(a)
The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies.
(b)
In connection with the Wyatt acquisition, the Company assumed certain obligations of Wyatt and paid those obligations immediately upon closing the transaction. The Company believes that the assumed obligations do not represent future ongoing business expenses.
(c)
During the twelve months ended December 31, 2024, the Company made its first retention payment under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses.
Waters Corporation and Subsidiaries
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook
Twelve Months Ended
Three Months Ended
December 31, 2025
March 29, 2025
Range
Range
Projected Sales
Constant currency sales growth rate (a)
4.5 %
–
7.0 %
4.0 %
–
7.0 %
Currency translation impact
(2.0 %)
–
(2.0 %)
(3.0 %)
–
(3.0 %)
Sales growth rate as reported
2.5 %
–
5.0 %
1.0 %
–
4.0 %
Range
Range
Projected Earnings Per Diluted Share
GAAP earnings per diluted share
$ 11.83
–
$ 12.13
$ 1.96
–
$ 2.04
Adjustments:
Purchased intangibles amortization
$ 0.60
–
$ 0.60
$ 0.15
–
$ 0.15
ERP implementation and transformation costs
$ 0.22
–
$ 0.22
$ 0.03
–
$ 0.03
Retention bonus obligation
$ 0.05
–
$ 0.05
$ 0.03
–
$ 0.03
Adjusted non-GAAP earnings per diluted share
$ 12.70
–
$ 13.00
$ 2.17
–
$ 2.25
(a) Constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical sales in local currency, as well as an assessment of market conditions as of today, and may differ significantly from actual results.
These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.
Contact: Caspar Tudor, Head of Investor Relations – (508) 482-2429
View original content:https://www.prnewswire.com/news-releases/waters-corporation-nyse-wat-reports-fourth-quarter-and-full-year-2024-financial-results-302374016.html
SOURCE Waters Corporation
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