Waters Corporation Reports Second Quarter Sales Growth of 6%.MILFORD Milford. 1 Residential city (1990 pop. 49,938), New Haven co., SW Conn., on Long Island Sound; settled 1639, inc. as a city 1959. Oysters and clams are gathered there for commercial use, and the city also has light manufacturing, such as the production , Mass. -- Waters Corporation  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . (NYSE/WAT) reported today second quarter 2006 sales of $302 million, an increase of 6% over sales of $285 million in the second quarter of 2005. In the quarter, the effects of foreign currency translation did not positively or negatively affect this sales growth rate. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share (E.P.S.) for the second quarter were $0.46, compared to $0.46 for the second quarter in 2005. On a non-GAAP basis, including the adjustments noted in the attached reconciliation, E.P.S. grew 15% to $0.53 in the second quarter of 2006 from $0.46 in the second quarter of 2005. Through the first six months of 2006, sales for the Company were $592 million, a 7% increase over sales in the first six months of 2005 of $553 million. Without the effects of foreign currency translation, the Company's organic sales growth rate was 9% as currency translation reduced its reported sales growth rate by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2%. E.P.S. through the first six months of 2006 were $0.87 compared to $0.84 for the comparable period in 2005. On a non-GAAP basis and including adjustments on the attached reconciliation, E.P.S. grew 21% in the first six months of 2006 to $1.03 in 2006 from $0.85 in 2005. Commenting on the quarter, Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. Berthiaume, Chairman, President and Chief Executive Officer said, "Our results in the second quarter indicate a continuation of the trends we experienced earlier this year, including: continued expansion of businesses in China and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , strong industrial spending and growing demand for ACQUITY UPLC UPLC United Power Line Council UPLC Ultra Performance Liquid Chromatography (TM) technology. In the quarter, we also introduced exciting new mass spectrometry mass spectrometry or mass spectroscopy Analytic technique by which chemical substances are identified by sorting gaseous ions by mass using electric and magnetic fields. instruments that we will begin shipping in the second half of 2006. We were very encouraged by the excitement that these new systems generated at the ASMS ASMS American Society for Mass Spectrometry ASMS Association of Salaried Medical Specialists ASMS Advanced Satellite Mobile Systems ASMS Alabama School of Mathematics and Science ASMS American Society for Mohs Surgery ASMS Arkansas School for Math and Science conference in late May and feel that the powerful combination of ACQUITY UPLC and new Waters mass spectrometry technologies will help to further stimulate stimulate /stim·u·late/ (stim´u-lat) to excite functional activity. stim·u·late v. To arouse a body or a responsive structure to increased functional activity. demand as we look to the remainder of 2006 and beyond." As communicated in a prior press release, Waters Corporation will webcast its second quarter 2006 financial results conference call this morning, July July: see month. 25, 2006 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.info , choose Investor Relations Investor relations The process by which the corporation communicates with its investors. and click on the Live Webcast. A replay of the call will be available through August 1, 2006, similarly by webcast and also by phone at 203-369-0188. Waters Corporation holds worldwide leading positions in three complementary analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. technologies - liquid chromatography chromatography (krō'mətŏg`rəfē), resolution of a chemical mixture into its component compounds by passing it through a system that retards each compound to a varying degree; a system capable of accomplishing this is called a , mass spectrometry and thermal analysis Thermal analysis is a branch of materials science where the properties of materials are studied as they change with temperature. Techniques include:
CAUTIONARY STATEMENT This release contains "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " 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 contained herein that are not statements of historical fact may be deemed forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. 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, changes in the healthcare market and the pharmaceutical industry, loss of market share through competition, potential product liability or other claims against the Company as a result of the use of its products, risks associated with lawsuits and other legal actions particularly involving claims for infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. of patents and other intellectual property rights, the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. impact to 2006 operating results from cost savings initiatives the Company implemented in February February: see month. 2006, and foreign exchange rate fluctuations affecting translation of the Company's future non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. operating results. Such factors and others are discussed more fully in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" of the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2005 and quarterly report on Form 10-Q Form 10-Q See 10-Q. for the period ended April 1, 2006, 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) (Unaudited)
Three Months Ended Six Months Ended
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
Net sales 301,899 284,630 592,117 552,935
Cost of sales (1) 126,004 117,066 246,632 228,867
Gross profit 175,895 167,564 345,485 324,068
Selling and
administrative
expenses (1) 88,968 82,861 174,506 163,456
Research and development
expenses (1) 19,655 16,485 38,698 33,232
Purchased intangibles
amortization 1,383 1,266 2,577 2,548
Restructuring and other
unusual charges (2) 2,974 - 7,326 -
Operating income 62,915 66,952 122,378 124,832
Interest expense, net (6,272) (463) (12,408) (99)
Income from operations
before income taxes 56,643 66,489 109,970 124,733
Provision for income
taxes 8,863 12,424 18,035 24,073
Net income 47,780 54,065 91,935 100,660
Net income per basic
common share $ 0.46 $ 0.47 $ 0.89 $ 0.86
Weighted average number
of basic common shares 103,010 116,092 103,795 117,405
Net income per diluted
common share $ 0.46 $ 0.46 $ 0.87 $ 0.84
Weighted average number
of diluted common shares
and equivalents 104,337 117,722 105,192 119,456
(1) Effective January 1, 2006, Waters Corporation adopted FAS 123(R),
"Share-Based Payment". Accordingly, for the three months and six
months ended July 1, 2006, stock-based compensation was accounted
for under FAS 123 (R), while for the three months and six months
ended July 2, 2005, stock-based compensation was accounted for
under APB No. 25, Accounting for Stock Issued to Employees." The
amounts in the consolidated statements of operations above include
stock-based compensation as follows:
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
Cost of sales 1,101 - 2,252 -
Selling and
administrative expenses 4,813 579 9,796 668
Research and development
expenses 1,188 - 2,568 -
Total stock-based
compensation 7,102 579 14,616 668
(2) The results for the three months and six months ended July 1, 2006
include restructuring and other incremental costs in relation to a
cost reduction plan implemented in February 2006.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
Reconciliation of income
per diluted share, in
accordance with
generally accepted
accounting principles,
with adjusted results:
Income per diluted share $ 0.46 $ 0.46 $ 0.87 $ 0.84
---------- ---------- ---------- ----------
Adjustment for stock-
based compensation, net
of tax 5,111 467 10,724 538
Income per diluted share
effect 0.05 0.00 0.10 0.00
---------- ---------- ---------- ----------
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: $ 0.53 $ 0.46 $ 1.03 $ 0.85
========== ========== ========== ==========
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. As a result of the adoption of FAS 123(R),
management has excluded the stock-based compensation cost from its
non-GAAP adjusted amounts to enable management and investors to
perform a meaningful comparison of the Company's operating results
to the prior period. In the prior period, the Company's
consolidated statements of operations were not required to include
the expense associated with stock-based compensation and now the
Company must include the expense in the consolidated statements of
operations. Management has excluded the restructuring charges 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.
Waters Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
July 1, December 31,
2006 2005
Cash and cash equivalents 489,556 493,588
Accounts receivable 238,352 256,809
Inventories 161,843 131,554
Other current assets 35,020 31,041
Total current assets 924,771 912,992
Property, plant and equipment, net 144,102 141,030
Other assets 400,677 374,909
Total assets 1,469,550 1,428,931
Notes payable and debt 362,345 326,286
Accounts payable and accrued expenses 311,305 277,605
Total current liabilities 673,650 603,891
Long-term debt 500,000 500,000
Other long-term liabilities 45,332 41,408
Total liabilities 1,218,982 1,145,299
Total equity 250,568 283,632
Total liabilities and equity 1,469,550 1,428,931
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion