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WAT · Waters

27 filings

10-K

WAT 10-K Annual Reports

Waters - 27 annual reports

Filing record · 2016–202610-K1210-Q338-K109

2025
Waters Annual Report, Year Ended Dec 31, 2025
Waters Corporation reported 2025 total net sales of $3.17 billion, up from $2.96 billion in 2024, with product sales of $1.98 billion and service sales of $1.19 billion. Operating income was $802.6 million, down from $826.4 million, and net income was $642.6 million, or $10.76 per diluted share, compared with $10.71 in 2024. Management attributed the operating income decline to approximately $82 million of transaction, integration and other internal costs tied to the BDS Business Acquisition, plus $20 million of ERP implementation expenses. Operating cash flow was $653 million, down from $762 million, reflecting tax payments, ERP costs and acquisition-related payments. The most consequential event is the February 9, 2026 completion of the acquisition of the Biosciences and Diagnostic Solutions businesses of Becton, Dickinson and Company, structured as a Reverse Morris Trust, at a total purchase price including assumed debt of $16.8 billion. BD shareholders own approximately 39.2% of the combined company and existing shareholders own approximately 60.8%. To fund a $4.0 billion cash distribution to BD, the company assumed $4.0 billion of term loans: a $3.5 billion tranche maturing in February 2027, which management plans to refinance in the first quarter of 2026 with long-term bonds, and a $500 million tranche maturing in February 2028. The 2025 results do not include the BDS Business, so the filing's 2025 figures reflect the standalone Waters and TA business only. Management expects cost synergies of approximately $200 million within three years and revenue synergies of approximately $290 million within five years. Key risks highlighted include integration execution, the substantial increase in indebtedness, goodwill and intangible impairment exposure, tariff and trade policy uncertainty (including a February 20, 2026 Supreme Court decision invalidating certain IEEPA tariffs), and China demand. The company has not paid dividends in the past three fiscal years.
Feb 23, 2026
2024
Waters Annual Report, Year Ended Dec 31, 2024
Waters Corporation's 2024 annual report shows net sales were flat at $2.96 billion, with product sales down to $1.84 billion and service sales up to $1.11 billion. Net income declined 1% to $637.8 million, and diluted EPS was $10.71 versus $10.84 in 2023. Operating income rose slightly to $826.4 million, though foreign currency translation reduced operating income by $43 million. China was a major drag: sales there fell to $397 million from $565 million in 2022, and the company cut about 2% of its workforce in March 2024, primarily in China. The company's two segments, Waters (LC, MS and chemistry consumables) and TA (thermal analysis, rheometry and calorimetry), were aggregated into one reporting segment. Waters instrument system sales fell 7% in 2024, while chemistry consumables rose 4% and Waters service sales rose 6%. Services remain a key earnings support, representing over 35% of Waters sales in 2024. The Wyatt Technology acquisition, completed in May 2023 for $1.3 billion in cash, contributed $111 million of net sales in 2024. Balance sheet and capital allocation: total debt was $1.6 billion at year-end 2024, down from $2.36 billion, and cash and investments were $325 million. Operating cash flow was $762 million, up from $603 million. The company made no open-market share repurchases in 2024 and has $1.0 billion remaining under its repurchase authorization, which was extended through January 2028. The company approved a new ERP system in December 2024, expected to cost about $130 million over three years, and management believes existing resources are sufficient for at least the next twelve months.
Feb 25, 2025
2023
Waters Annual Report, Year Ended Dec 31, 2023
Waters Corporation reported 2023 total net sales of $2,956,416 thousand, a 1% decrease from $2,971,956 thousand in 2022, while operating income fell 6% to $817,676 thousand and net income declined 9% to $642,234 thousand, or $10.84 per diluted share. The filing attributes the sales decline mainly to a 22% reduction in China sales, which fell to $440,707 thousand from $565,143 thousand. Excluding China, the Company says sales grew 5%, and the Wyatt Technology acquisition, completed May 16, 2023 for a total purchase price of $1.3 billion in cash, added 3% to sales growth. Operating margin declined to 27.7% from 29.4%, reflecting merit-related salary increases, $26 million in severance costs tied to a July 2023 workforce reduction of about 5% of employees, and Wyatt-related costs. Cash flow from operations was $603 million in 2023 versus $612 million in 2022. Total debt rose to $2.4 billion at December 31, 2023 from $1.6 billion, largely from borrowings used to fund Wyatt, and the Company temporarily suspended share repurchases after repurchasing $58 million of stock in 2023 compared with $616 million in 2022. The Company had $396 million of cash, cash equivalents and investments at year-end and a remaining repurchase authorization of $1.0 billion. The filing also highlights the Company's dependence on the pharmaceutical sector, which represented 57% of 2023 net sales, and on instrument demand that can fluctuate with customer capital spending and academic and government funding. Management believes existing resources and borrowing capacity will be sufficient to meet obligations for at least the next twelve months.
Feb 27, 2024
2022
Waters Annual Report, Year Ended Dec 31, 2022
Waters Corporation (NYSE: WAT) reported net sales of $2,971,956 thousand in 2022, up 7% from $2,785,874 thousand in 2021, with net income of $707,755 thousand, or $11.73 per diluted share, compared with $11.17 in 2021. Operating income rose to $873,395 thousand, a 6% increase, and operating margin was 29.4% of sales. Growth was broad-based across geographies and end markets, though foreign currency translation decreased total sales growth by 5% in 2022 as the U.S. dollar strengthened significantly. Pharmaceutical customers accounted for 59% of net sales, other industrial accounts for 31%, and academic and governmental institutions for 10%. Instrument system sales increased 11%, while recurring revenues (consumables and services) rose 3%. Cash generation weakened in 2022: net cash provided by operating activities was $611,661 thousand, down from $747,274 thousand in 2021, driven by higher inventory, slower cash collections and higher incentive compensation payments. At December 31, 2022, the company had $1.6 billion in total debt and $481 million in cash, cash equivalents and investments, and it repurchased $616 million of common stock during 2022. The repurchase authorization was increased by $750 million to $4.8 billion and extended to January 21, 2024. The company has not paid cash dividends in its past three fiscal years. A significant subsequent event is the February 14, 2023 agreement to acquire Wyatt Technology for $1.4 billion in cash, expected to close in the second quarter of 2023 and to be financed with balance sheet cash and revolver borrowings. Management also flagged risks including foreign currency exposure (about 70% of 2022 net sales were outside the United States), China, which accounted for approximately 19% of total net sales, and the ongoing COVID-19 pandemic and supply chain disruption.
Feb 27, 2023
2021
Waters Annual Report, Year Ended Dec 31, 2021
Waters Corporation reported a strong 2021, with net sales rising 18% to $2.79 billion from $2.37 billion in 2020, driven by customers resuming laboratory and manufacturing operations after the COVID-19 slowdown. Instrument system sales increased 23%, recurring revenues (consumables and services) rose 13%, and net income grew 33% to $692.8 million, or $11.17 per diluted share. Operating income was $821.7 million, a 29.5% operating margin, up from 27.3% in 2020. Pharmaceutical customers accounted for 60% of net sales and the company operates in over 35 countries, with 72% of 2021 sales outside the United States. Cash generation was solid at $747 million of operating cash flow, though it declined from $791 million in 2020 as cost reductions from 2020 were reinstated. The company ended 2021 with $1.5 billion of debt and $569 million of cash, cash equivalents and investments. It repurchased $640 million of common stock during 2021 and had $885 million of authorization remaining, and it did not pay dividends. Stockholders' equity was $367.6 million, reflecting cumulative buybacks, and the company has $327 million of remaining transition tax liabilities under the 2017 Tax Act to pay through 2025. Risk factors highlighted by the filing include ongoing COVID-19 uncertainty, foreign currency exposure, supply chain and logistics pressures, reliance on single-source components and outside contractors, intense competition, and cybersecurity. The company's effective tax rate was 14.1% in 2021, aided by Singapore's concessionary 5% rate through March 2026.
Feb 24, 2022
2020
Waters Annual Report, Year Ended Dec 31, 2020
Waters Corporation (WAT) reported net sales of $2.37 billion for 2020, down from $2.41 billion in 2019, as COVID-19 disrupted customer demand in the first half of the year. Sales in the second half of 2020 grew 7% over the prior year period, and the company said customers began resuming laboratory and manufacturing operations. Net income was $521.6 million, or $8.36 per diluted share, compared with $592.2 million, or $8.69 per diluted share, in 2019. Operating income was $645.5 million, down 9%, with the decline partly offset by about $103 million of cost-reduction actions that included salary reductions, furloughs and reduced non-essential spending. The balance sheet shows $1.4 billion of debt against $443 million of cash, cash equivalents and investments at year-end 2020. Net cash provided by operating activities rose to $790.5 million from $643.1 million, while stockholders' equity turned positive at $232.1 million from a deficit of $216.3 million a year earlier. The company repurchased only 0.8 million shares for $167 million in 2020, versus $2.5 billion in 2019, and has temporarily suspended repurchases. Remaining transition tax liabilities under the 2017 Tax Act total $365 million, and the company announced acquisitions of Andrew Alliance for about $80 million and Integrated Software Solutions for $4 million. Management highlighted a new Chief Executive Officer, Dr. Udit Batra, who took office September 1, 2020, and an interim Chief Financial Officer, Michael F. Silveira, effective January 1, 2021, after the prior CFO departed on December 31, 2020. The company stated that it cannot reasonably estimate the length or severity of the COVID-19 pandemic, and it notes that about 71% of net sales were generated outside the United States.
Feb 24, 2021
2019
Waters Annual Report, Year Ended Dec 31, 2019
Waters Corporation (WAT) reported net sales of $2.41 billion for 2019, down about 1% from $2.42 billion in 2018, with foreign currency translation reducing sales by 2%. Operating income was $708 million, a decrease of 4% from 2018, and net income was $592 million, or $8.69 per diluted share, compared with $7.65 in 2018. The decline in sales was driven by weaker instrument system demand tied to macroeconomic uncertainty, Brexit, and governmental policy changes in China, partly offset by growth in recurring revenues (consumables and services), which rose 3%. Services remain a key franchise, representing over 35% of Waters sales in 2019. The balance sheet shifted substantially during 2019. The company repurchased 11.1 million shares for $2.5 billion under a $4 billion authorization approved in January 2019, and issued $500 million of senior unsecured notes. Total debt rose to $1.68 billion, cash and investments fell to $337 million, and stockholders' equity moved to a deficit of $216 million. Operating cash flow was $643 million. The company remains exposed to a remaining U.S. transition tax liability of $404 million under the 2017 Tax Act. Looking ahead, management announced a workforce reduction affecting 3% of employees in January 2020, with about $25 million of related costs expected in 2020, and agreed to acquire Andrew Alliance for approximately $80 million. The filing notes that the company is building a $215 million chromatography column manufacturing facility in Taunton, Massachusetts, with $85 million incurred through 2019.
Feb 25, 2020
2018-A
Waters Annual Report (Amendment), Year Ended Dec 31, 2018
Waters Corporation reported net sales of $2.42 billion for 2018, up 5% from $2.31 billion in 2017, with foreign currency translation adding 1% to growth. Operating income rose 12% to $740 million, and operating margin reached 30.6% of sales, compared with 28.7% in 2017. Net income was $593.8 million, or $7.65 per diluted share, versus $20.3 million in 2017, which was depressed by a $550 million provision for the 2017 Tax Act. Net cash from operations was $604 million, down from $698 million in 2017, largely because of $103 million of U.S. income tax payments tied to the transition tax. The company's capital allocation has shifted sharply. In 2018 it used repatriated cash to reduce debt by $850 million and repurchased $1,315 million of stock. In January 2019 the Board authorized up to $4 billion of share repurchases over two years, and management plans to raise outstanding debt to roughly 2.5 times its net debt-to-EBITDA ratio to fund a significant portion of those buybacks. Total debt was $1.1 billion at year-end, against $1.735 billion of cash, cash equivalents and investments. The company also expects to pay a transition tax of $433 million over eight years. Risk factors highlighted by the filing include exposure to non-U.S. operations, which generated 72% of 2018 net sales, currency fluctuations, and customer demand tied to capital spending. Pharmaceutical customers accounted for 56% of net sales. Service revenue rose 8% to $814.9 million and is described as over 30% of Waters sales. The company is also building a $215 million chromatography column manufacturing facility in Taunton, Massachusetts, with $11 million spent through 2018.
Mar 1, 2019
2018
Waters Annual Report, Year Ended Dec 31, 2018
Waters Corporation (WAT) reported net sales of $2.42 billion in 2018, up 5% from $2.31 billion in 2017, with operating income of $739.8 million, up 12% year over year. Net income was $593.8 million, or $7.65 per diluted share, compared with $20.3 million, or $0.25 per diluted share, in 2017, which included a $550 million provision for the 2017 Tax Act. Growth was led by Asia, with China sales of $443.3 million up 15%, and by recurring revenues (consumables and services), which rose 8%. Pharmaceutical customers accounted for 56% of net sales, and the company reported no single customer above 2% of sales. Cash generation and capital allocation were central themes. Net cash provided by operating activities was $604.4 million, reduced by $103 million of U.S. income tax payments related to the 2017 Tax Act and 2018 estimated taxes. The company used $850 million to reduce debt and repurchased $1,306 million of stock during 2018. Its board authorized a new program in January 2019 to repurchase up to $4 billion of common stock over two years, and the filing states the company plans to increase debt to approximately 2.5 times its net debt-to-EBITDA ratio to fund a significant portion of these repurchases. Total debt was $1.1 billion at December 31, 2018, against cash, cash equivalents and investments of $1.735 billion. Risk factors highlighted in the filing include foreign currency exposure, with 72% of 2018 net sales generated outside the United States, the transition tax payable over eight years, a Singapore contractual 0% tax rate tied to milestones through March 2021, and dependence on pharmaceutical and governmental/academic funding cycles. Management also disclosed a December 2018 pension settlement charge of $46 million and a planned 1% workforce reduction in January 2019 with approximately $15 million of related costs expected in 2019.
Feb 26, 2019
2017
Waters Annual Report, Year Ended Dec 31, 2017
Waters Corporation (WAT) is a specialty measurement company whose products serve life, materials and food sciences, centered on liquid chromatography (HPLC/UPLC), mass spectrometry (LC-MS) and thermal analysis through its Waters and TA operating segments. Net sales for 2017 were $2,309,078 thousand, up 7% from $2,167,423 thousand in 2016, with growth balanced across customer and product classes. Operating income rose 6% to $661,858 thousand, but net income fell sharply to $20,311 thousand (diluted EPS of $0.25) from $521,503 thousand, because of a $550 million estimated provision for the 2017 Tax Act, which reduced net income per share by $6.82. Excluding that charge, the filing states an effective tax rate of 11.0%. The balance sheet remained strong, with $3,394 million in cash, cash equivalents and investments against $1,998 million in debt at December 31, 2017, and $3,326 million of that cash held by foreign subsidiaries. The Transition Tax will be paid over eight years starting in 2018. The company expects to use about $1 billion of repatriated cash in 2018 to reduce debt and repurchase common stock, and its board approved a $215 million chemistry manufacturing expansion in February 2018. Management also notes that the company's sales to pharmaceutical customers represented 56% of 2017 sales, and that the company expects its effective tax rate to rise by one to three percentage points going forward. Risk factors highlighted by the filing include international exposure (71% of 2017 net sales were outside the United States), competition, reliance on certain single-source suppliers, cybersecurity, and the uncertainty of the provisional tax estimates, which the company says may be revised within the measurement period.
Feb 27, 2018
2016
Waters Annual Report, Year Ended Dec 31, 2016
Waters Corporation reported net sales of $2.17 billion for 2016, up from $2.04 billion in 2015, with total sales growth of 6%. Net income rose to $521.5 million from $469.1 million, and diluted EPS was $6.41 versus $5.65 a year earlier. Operating income reached $624.3 million, or 28.8% of sales. Growth was led by the pharmaceutical market, which grew 9%, and by Asia, where sales rose 13% with China up 19%. Management cited instrument system sales growth of 4% and recurring revenues (chemistry consumables and services) growth of 8%. The company also noted that foreign currency translation reduced sales growth by 1% in 2016, and that it expects currency to negatively affect sales growth in 2017. Cash flow from operations was $629 million in 2016, compared with $560 million in 2015. At year end the company held $2.81 billion in cash, cash equivalents and investments, against $1.83 billion of total debt. Of the cash balance, $2.77 billion was held by foreign subsidiaries, which the filing identifies as a consideration for U.S. cash needs. The company repurchased $318 million of common stock under its May 2014 program during 2016 and had $123 million remaining authorized. It has not paid dividends since its IPO. The filing also notes that the company had $468 million available under its credit agreement. The filing describes two operating segments, Waters and TA, aggregated into one reporting segment. Investors should weigh the risks the filing highlights: about 69% of 2016 net sales came from outside the United States, roughly 56% of sales went to pharmaceutical and biotechnology customers, and the company's Singapore tax holiday at a 0% contractual rate depends on meeting milestones through 2020.
Feb 24, 2017
2015
Waters Annual Report, Year Ended Dec 31, 2015
Waters Corporation (NYSE: WAT) reported net sales of $2.04 billion for 2015, up 3% from $1.99 billion in 2014, with foreign currency translation reducing sales growth by 6%. Operating income rose 10% to $567 million, and net income was $469.1 million, or $5.65 per diluted share, compared with $5.07 in 2014. The company operates two segments, the Waters Division (LC, LC-MS and chemistry consumables, plus services) and the TA Division (thermal analysis, rheometry and calorimetry), which are aggregated into one reporting segment. Management attributed the year's results to strong demand from life science, industrial chemical, nutritional safety and environmental customers, with double-digit growth in the U.S., China and India offset by declines in Europe, Japan and the rest of the world as a result of the stronger U.S. dollar. Cash flow and liquidity remained solid. Net cash from operating activities was $560 million, and cash, cash equivalents and investments totaled $2.40 billion at year-end, of which $2.35 billion was held by foreign subsidiaries. Total debt was $1.67 billion, and the company had $428 million of additional borrowing capacity under its credit facility. The company repurchased $327 million of common stock in 2015 and has $441 million remaining under its May 2014 authorization. It did not pay dividends and does not plan to in the immediate future. The filing also notes that the company made several small acquisitions in 2015, including MPE, ElectroForce and a Malaysian distributor, which management does not expect to have a significant impact on 2016 sales or profits. The company expects foreign currency translation may negatively affect sales and gross profit in 2016.
Feb 26, 2016
2014
Waters Annual Report, Year Ended Dec 31, 2014
Waters Corporation (NYSE: WAT) reported net sales of $1,989,344 thousand for 2014, up from $1,904,218 thousand in 2013, and net income of $431,620 thousand, down from $450,003 thousand. Diluted EPS was $5.07 compared with $5.20 in 2013. Sales growth was led by pharmaceutical customers, with the U.S. and Europe up in the mid-single digits and India up 18%. Sales in China were weaker, and foreign currency translation reduced sales by 2% across all products and services in both 2014 and 2013. Gross margin was 58.5%, down from 58.9%, and operating income was flat at $517,908 thousand versus $517,343 thousand. The company recorded a $15 million acquired in-process R&D charge, $6 million of severance costs, and a $5 million building impairment in 2014. Management expects foreign currency translation to have a significant negative effect on sales and gross profit in 2015. The balance sheet shows $2,055,388 thousand of cash, cash equivalents and investments, against $1,465,243 thousand of total debt, and $1,971 million of cash held by foreign subsidiaries. Operating cash flow was $511,648 thousand. The company repurchased $329 million of stock in 2014 and has $769 million remaining under its repurchase authorization. It has not paid dividends in the past three fiscal years and does not plan to pay them in the immediate future. The company also repaid $100 million of senior unsecured notes at maturity in February 2015 using its revolving facility. The CEO, Douglas A. Berthiaume, has announced his intention to retire, which the filing identifies as a succession-planning risk.
Feb 27, 2015
2013
Waters Annual Report, Year Ended Dec 31, 2013
Waters Corporation's 2013 Form 10-K reports net sales of $1.90 billion, up 3% from $1.84 billion in 2012, with net income of $450.0 million, or $5.20 per diluted share, compared with $461.4 million, or $5.19 per diluted share, in 2012. Growth came mainly from instrument systems, which benefited from higher-end mass spectrometry, core chromatography and TA instrument demand, plus new products such as the ACQUITY UPC2 system, APC system and QDa Detector. Chemistry consumables and services grew 4%, while instrument system sales grew 2%. Net income declined 2% because of lower operating and tax benefits in the comparison, though the 2013 results include a $31 million net tax benefit from completed tax audit examinations. Operating income rose 1% to $517.3 million, and gross margin fell to 58.9% from 60.0%, partly due to amortization of the UNIFI software platform. Cash flow and balance sheet data show net cash from operations of $485 million, capital expenditures of $118 million, and $1.80 billion in cash, cash equivalents and investments, of which $1.74 billion was held by foreign subsidiaries. Total debt was $1.32 billion, and the company repurchased $295 million of stock during 2013 under a $750 million two-year authorization from May 2012. The company made several small acquisitions in 2013 and January 2014 and completed a new $78 million facility in Wilmslow, England. Management disclosed that CEO Douglas Berthiaume intends to retire by the end of 2015 and that CFO Eugene Cassis became interim CFO effective February 1, 2014, after the former CFO resigned. The company reports approximately 52% of 2013 sales to pharmaceutical accounts and about 71% of net sales outside the United States. Its principal risks include global economic conditions, customer capital spending timing, foreign currency exposure to the Euro, yen and pound, reliance on single-source suppliers, and the tax and cash-repatriation effects of holding most of its cash overseas.
Feb 27, 2014
2012
Waters Annual Report, Year Ended Dec 31, 2012
Waters Corporation, an analytical instrument manufacturer, reported net sales of $1.84 billion for 2012, essentially flat compared with $1.85 billion in 2011. Management attributed the flat result to a 4% increase in combined chemistry consumables and services sales, offset by a 4% decrease in instrument system sales. Net income rose to $461.4 million, or $5.19 per diluted share, from $433.0 million, or $4.69 per diluted share, in 2011. The filing notes that tax benefits of $36 million and $6 million added $0.48 per diluted share in 2012, and that the company's effective tax rate fell to 5.4%. Operating income declined 3% to $511.5 million, reflecting one-time charges for a $4 million trade name intangible write-off and $7.4 million in litigation provisions. The company operates two segments, the Waters Division (LC, LC-MS and chemistry consumables with services) and the TA Division (thermal analysis, rheometry and calorimetry). Waters Division product sales fell 4% in 2012, while service sales grew 6%, and the filing states that service revenue has increased consistently each year. Sales outside the United States were 71% of the total. The filing also notes that the company held $1.54 billion in cash and short-term investments at year-end, of which $1.49 billion was held by foreign subsidiaries, against $1.18 billion of debt, and that management plans to continue its share repurchase program in 2013, with $643 million authorized remaining. The filing signals a few items for 2013. Management expects foreign currency translation to be neutral to sales but negative to operating profit, and expects selling and administrative expenses to increase. Amortization expense is estimated at $40 million to $45 million per year over the next five years, reflecting new software platforms launched in early 2013. The company also disclosed an unfavorable December 2012 patent ruling in Germany with Agilent, for which it recorded a $4 million provision.
Feb 26, 2013
2011
Waters Annual Report, Year Ended Dec 31, 2011
Waters Corporation (NYSE: WAT) reported net sales of $1.85 billion for 2011, up from $1.64 billion in 2010 and $1.50 billion in 2009, with net income of $432,968 thousand, or $4.69 per diluted share, compared with $4.06 in 2010. Sales increased 13% in 2011, driven by instrument systems (up 14%) and combined chemistry consumables and services (up 11%), with growth across all major regions and new products such as the ACQUITY UPLC H-Class, Xevo Q-Tof, Xevo TQ-S and SYNAPT G2-S systems. Gross margin rose to 60.5% from 60.2%, and operating income reached $529 million. Foreign currency translation added 3% to 2011 sales and $0.24 to diluted EPS, and the company expects a slightly negative impact on 2012 sales from currency translation. The balance sheet remains strong, with $1,281 million in cash, cash equivalents and short-term investments and $991 million in total debt at December 31, 2011. Of the cash, $1.2 billion was held by foreign subsidiaries, which the filing identifies as a key consideration for funding U.S. operations, debt service and share repurchases. The company repurchased $364 million of stock in 2011 and has $186 million remaining under its February 2011 authorization. It refinanced in July 2011 with a $700 million revolving facility and a $300 million term loan maturing in 2016, and it issued $200 million of senior unsecured notes in March 2011. Waters paid no dividends and does not plan to pay any in the foreseeable future. Risk factors highlighted by the filing include dependence on pharmaceutical customers (52% of 2011 sales), international exposure (71% of net sales outside the United States), single-source suppliers, outside contract manufacturers in Singapore, and competition, including Agilent's UHPLC system. Management also noted that government and academic customers may lag due to austerity programs in 2012, and it expects a slight decline in gross margin from new software platform amortization beginning in 2012.
Feb 24, 2012
2010
Waters Annual Report, Year Ended Dec 31, 2010
Waters Corporation (NYSE: WAT) reported net sales of $1.64 billion for 2010, up from $1.50 billion in 2009, with sales increasing 10% year over year. Operating income rose to $450 million from $395 million, and net income was $381.8 million, or $4.06 per diluted share, compared with $3.34 in 2009. Growth was driven by higher demand as global economic conditions improved, new product introductions including the ACQUITY UPLC H-Class, SYNAPT G2 and Xevo Q-Tof systems, and stronger pharmaceutical and industrial spending. Waters Division sales rose 9% and TA Division sales rose 17%. Sales increased 21% in Asia, while Europe was flat. Cash flow from operations was $458 million, up from $418 million. The company ended 2010 with $766 million in total debt and $946 million in cash, cash equivalents and short-term investments. In 2010 it issued $100 million of 3.75% five-year notes and $100 million of 5.00% ten-year notes. The $500 million term loan under the 2007 Credit Agreement, which expires in January 2012, is to be refinanced, and $555 million was outstanding at year end. The Board authorized an additional $500 million share repurchase program in February 2011, and the company repurchased $292 million of stock in 2010. No dividends were paid. Key risks include exposure to global economic conditions and customer capital spending, with about 70% of 2010 net sales generated outside the United States. The company also faces competition from larger diversified instrument makers, a scheduled increase in its Irish statutory tax rate to 12.5% in 2011 from 10%, and ongoing patent litigation with Agilent Technologies in France and Germany. The company recorded a $7 million provision for the French case in 2008. The securities class action filed in 2008 was dismissed, and the dismissal was affirmed on appeal in January 2011.
Feb 25, 2011
2009
Waters Annual Report, Year Ended Dec 31, 2009
Waters Corporation's 2009 results reflected the global economic recession. Net sales were $1,498.7 million, down from $1,575.1 million in 2008, a decline of 5%. Instrument system sales fell, with Waters instrument system sales down 9% and TA Division sales down 11%, while recurring chemistry consumables and service sales were more resilient, and service sales rose 3% to $446.7 million. Operating income was $394.6 million versus $389.8 million, helped by higher gross margin (60.3% of sales versus 58.0%), tighter discretionary spending, and a weaker British pound. Net income was $323.3 million, and diluted EPS was $3.34 compared with $3.21 in 2008. The balance sheet and cash position remained solid. Cash, cash equivalents and short-term investments totaled $630.3 million at December 31, 2009, against $632 million of debt, and the company had $479 million of additional borrowing capacity under its credit facilities. Operating cash flow was $418.3 million, flat with 2008. Waters repurchased 4.5 million shares for $210 million during 2009 and has $343 million remaining under its February 2009 $500 million authorization. In February 2010 it issued $100 million of 3.75% five-year senior unsecured notes, and it expected to issue $100 million of 5.00% ten-year notes in early March 2010. Key risks disclosed include weak customer capital spending, competition from Agilent's UHPLC system and the Danaher/Life Technologies and Agilent/Varian transactions, about 69% of 2009 net sales generated outside the United States, and ongoing patent litigation with Agilent and a securities class action (the Dearborn Heights case) that the company intends to defend vigorously.
Feb 26, 2010
2008
Waters Annual Report, Year Ended Dec 31, 2008
Waters Corporation (WAT) reported net sales of $1,575 million for 2008, up from $1,473 million in 2007 and $1,280 million in 2006, with sales growth of 7% in 2008. Operating income rose to $390 million from $349 million, and net income was $322.5 million, or $3.21 per diluted share, compared with $2.62 in 2007. The company attributed the results to new product introductions such as ACQUITY UPLC, higher chemistry consumables and service sales, acquisitions, and favorable currency translation. Management noted that fourth-quarter 2008 sales were hurt by reduced customer capital spending amid global economic conditions and a stronger U.S. dollar, and expects the currency effect to continue into 2009. Balance sheet and capital allocation were central to the filing. Cash and cash equivalents were $428.5 million at year-end 2008, against $500 million of long-term debt. Operating cash flow was $418 million. The company prepaid a $150 million term loan and repaid $340 million of revolving debt in October 2008 using cash repatriated from the liquidation of certain foreign legal entities, and the board authorized an additional $500 million share repurchase program in February 2009. The company also disclosed an ongoing patent litigation with Agilent Technologies, for which it recorded a $7 million provision, and a securities class action filed in November 2008. The filing also flags risks including weaker demand from pharmaceutical and industrial customers, currency exposure (approximately 70% of 2008 net sales were outside the United States), and reliance on single-source suppliers. Management said the company does not expect a material impairment of goodwill and that its cash and credit facilities should be sufficient for at least the next twelve months.
Feb 27, 2009
2007
Waters Annual Report, Year Ended Dec 31, 2007
Waters Corporation (WAT), an analytical instrument manufacturer, reported 2007 net sales of $1.47 billion, up 15% from $1.28 billion in 2006, with net income of $268.1 million and diluted EPS of $2.62, up 23%. Growth was driven by the Waters Division's ACQUITY UPLC instrument and Synapt HDMS system sales, chemistry consumables growth of 24%, and the TA Division's 27% sales growth. Operating income rose to $348.9 million from $295.2 million, though gross margin slipped to 57.2% from 58.1% due to new product costs and unfavorable currency effects on Irish and UK manufacturing. Operating cash flow was $370.5 million, up from $263.6 million. The balance sheet carried $884.2 million of debt against $693.0 million of cash, cash equivalents and short-term investments at year-end 2007. The company repurchased $200.5 million of stock during 2007 under its February 2007 $500.0 million program, leaving $333.9 million authorized. Waters paid no dividends and does not plan to pay them in the foreseeable future. The 10-K also discloses a $12.6 million one-time contribution to the employee investment plan tied to freezing U.S. pension accruals, and an ongoing patent dispute with Hewlett-Packard/Agilent in which a French court found the modified Alliance pump non-infringing, a ruling Agilent has appealed. The filing describes a company with about 68% of 2007 net sales outside the United States and a customer base where pharmaceutical and biotechnology accounts represent roughly 52% of sales. Management concluded that internal control over financial reporting was effective as of December 31, 2007, and PricewaterhouseCoopers audited that assessment.
Feb 29, 2008
2006
Waters Annual Report, Year Ended Dec 31, 2006
Waters Corporation (NYSE: WAT) reported net sales of $1,280.2 million for 2006, up from $1,158.2 million in 2005 and $1,104.5 million in 2004, with sales growth of 11% in 2006. Net income was $222.2 million, or $2.13 per diluted share, compared with $201.975 million ($1.74 per diluted share) in 2005. Operating income was $295.2 million, and operating cash flow was $263.6 million, down from $298.1 million in 2005. The 2006 results absorbed $28.0 million of additional stock-based compensation from adopting SFAS 123(R), $8.5 million of restructuring costs from a February 2006 cost reduction initiative, and a $5.8 million impairment on the Caprion Pharmaceuticals investment. The Waters Division grew 11% and the TA Division grew 9%, with sales in Asia up 19% and Europe up 12%. Growth was driven by ACQUITY UPLC instruments, chemistry consumables, and new mass spectrometry systems introduced in the second half of 2006. The balance sheet strengthened in some areas and tightened in others. Cash and cash equivalents were $514.2 million at year-end 2006, and total debt was $885.0 million, of which $500.0 million was classified as long-term. Waters repurchased 5.8 million shares for $249.2 million during 2006, leaving $34.7 million authorized under the $500.0 million program. In January 2007 the company refinanced its credit facilities into a new agreement with a $500 million term loan and revolving tranches, with capacity of up to $1.1 billion and a maturity of January 11, 2012. Interest expense rose to $51.7 million from $24.7 million, reflecting higher rates and borrowings used for buybacks. The effective tax rate fell to 15.5% from 26.4%, largely because the 2005 rate included $24.0 million of repatriation tax under the American Jobs Creation Act. The filing also describes ongoing risks. Approximately 52% of 2006 net sales came from the pharmaceutical and biotechnology industries, and about 68% of sales were outside the United States. The company is still litigating patent claims brought by Hewlett-Packard and Agilent over the Alliance pump; a French hearing is scheduled for June 2007, and the company has recorded provisions for this litigation.
Mar 1, 2007
2005
Waters Annual Report, Year Ended Dec 31, 2005
Waters Corporation's 10-K for fiscal 2005 reports net sales of $1,158.2 million, up 5% from $1,104.5 million in 2004, with product sales up $27.9 million or 3% and service sales up $25.8 million or 9%. Net income fell to $201.975 million from $224.053 million, and diluted EPS was $1.74 versus $1.82. Management attributed the sales growth to the ACQUITY UPLC system, new mass spectrometry and columns, and growth outside the U.S., while sales to large U.S. pharmaceutical customers weakened. Operating income was $283.2 million versus $284.9 million, held down by a $24.0 million one-time tax charge tied to the $500.0 million repatriation under the American Jobs Creation Act, and by a $3.1 million Hewlett-Packard litigation provision. Excluding the repatriation charge, the effective tax rate was 17.7%. Cash flow from operations rose to $298.1 million from $259.4 million, aided by improved days sales outstanding (70 days versus 76). Waters repurchased 15.4 million shares for $659.3 million in 2005. Total borrowings reached $810.0 million at year-end, with $500.0 million classified as long-term, compared with $440.0 million at the end of 2004. Cash and equivalents stood at $493.6 million. The company expects a one-time restructuring charge of $5.0 million to $7.0 million in 2006 and a negative impact of $0.21 to $0.24 per diluted share from adopting SFAS 123(R) in 2006. The filing also describes ongoing HP patent litigation, which was settled in February 2006 for 3.5 million British pounds, and a $500.0 million share repurchase authorization, of which $283.9 million remained available at year-end. The company does not pay dividends.
Mar 6, 2006
2004
Waters Annual Report, Year Ended Dec 31, 2004
Waters Corporation, an analytical instrument manufacturer, reported net sales of $1,104.5 million for 2004, up 15% from $958.2 million in 2003 (11% excluding currency effects). Operating income rose to $284.9 million from $219.2 million, and net income reached $224.1 million, or $1.82 per diluted share, compared with $170.9 million and $1.34 in 2003. Growth was led by the Waters Division's liquid chromatography (LC) products, which grew approximately 9% excluding currency effects, with LC service sales up 13% and mass spectrometry (MS) sales up approximately 6%. The March 2004 launch of the ACQUITY UPLC system, which began shipping in the third quarter of 2004, was cited as a contributor to instrument sales growth. Cash flow and capital allocation were central to the year. Operating cash flow increased to $259.4 million from $157.0 million, and cash and cash equivalents ended the year at $539.1 million. The company repurchased 5.5 million shares for $231.3 million in 2004 and authorized a new $500.0 million buyback in October 2004. In December 2004, it replaced its credit facility with a $700.0 million committed Credit Agreement, and total borrowings at year-end were $456.7 million. The company paid no dividends in the past three fiscal years and does not plan to pay any in the foreseeable future. Key risks disclosed include ongoing patent litigation with Hewlett-Packard, for which the company recorded a $7.8 million provision in 2004, and the Alliance pump case in Germany, France and England. Other risks include currency exposure, since about 64% of 2004 net sales were outside the United States, and a concentration of about 53% of net sales in the pharmaceutical and biotechnology industries. The company also disclosed that it may need to repatriate foreign earnings under the American Jobs Creation Act, which could increase its tax provision by between $20.0 million and $45.0 million.
Mar 15, 2005
2003
Waters Annual Report, Year Ended Dec 31, 2003
Waters Corporation's 10-K for fiscal 2003 reports net sales of $958.2 million, up 8% from $890.0 million in 2002, with the company stating that excluding favorable currency effects, net sales were essentially flat. Operating income rose to $219.2 million from $196.4 million, and net income was $170.9 million, or $1.34 per diluted share, versus $147.7 million, or $1.09 per diluted share, in 2002 (which included a $4.5 million cumulative effect charge). Growth was led by HPLC chemistry and service, thermal analysis (TAI) sales, which grew 20% excluding the acquired rheology business, while mass spectrometry (MS) sales declined approximately 18% excluding the sold inorganic product line, which the filing attributes partly to the Applera patent litigation. The balance sheet shifted meaningfully during 2003. The company repurchased 11,939 thousand shares for $324.6 million, completing its $200 million program and making progress on a new $400 million authorization, which left net borrowings of $246.3 million at year-end compared with no debt in 2002. Cash and cash equivalents were $356.8 million. Operating cash flow was $157.0 million, and the company paid $53.7 million in April 2003 to Applera for patent damages and interest, plus $59.6 million across the Applera and DEP settlements during the year. Litigation was a major focus. The company entered a settlement with Applera, MDS and Applied Biosystems/MDS Sciex on March 2, 2004, requiring an $18.1 million one-time payment (fully accrued at year-end) and royalty-paying cross-licenses. Other matters remain pending, including a Hewlett-Packard patent dispute in which the company has recorded a provision, and an environmental settlement with Massachusetts that included a $5.9 million civil penalty. The company does not pay dividends and states that its existing cash and credit facilities are sufficient for at least the next twelve months.
Mar 12, 2004
2002
Waters Annual Report, Year Ended Dec 31, 2002
Waters Corporation's 10-K for fiscal 2002 reports net sales of $889,967 thousand ($890.0 million), up 4% from $859.2 million in 2001, or 2% excluding favorable currency effects. Reported operating income was $196.4 million, compared with $149.5 million in 2001, which was depressed by a $75.0 million patent litigation charge. Net income was $147.7 million, or $1.09 per diluted share, after a $4.5 million cumulative effect of an accounting change for patent-related costs. Net cash provided by operating activities was $219.6 million, and cash and cash equivalents stood at $263.3 million at December 31, 2002. The largest investor concern is the Applera patent litigation. A jury found the Quattro Ultima mass spectrometer infringed a U.S. patent, and in March 2003 the appeals court affirmed the judgment, including damages and interest of approximately $54.0 million, which the company expects to pay in the second quarter of 2003 using restricted cash of $49.9 million. The U.S. product is subject to an injunction, and similar claims have been asserted in other countries. Other open matters include the Hewlett-Packard and Perkin-Elmer patent cases, the Cohesive Technologies suits, and a $5.1 million environmental litigation provision for the Taunton, Massachusetts facility. Management says the company remained essentially debt-free, had a $250.0 million unsecured credit line, and had $100.7 million of treasury share repurchases remaining under its program. The filing describes Waters as the world's largest manufacturer and distributor of HPLC instruments, columns and consumables, and related service, with mass spectrometry and thermal analysis businesses added through Micromass and TA Instruments. Around 57% of 2002 net sales were to the pharmaceutical industry, and about 62% came from outside the United States. Service revenue rose to $192.7 million from $162.6 million, and U.S. sales declined 5% because of the litigation.
Mar 21, 2003
2000
Waters Annual Report, Year Ended Dec 31, 2000
Waters Corporation's annual report on Form 10-K for the fiscal year ended December 31, 2000 shows net sales of $795.1 million, up 13% from $704.4 million in 1999, or 17% excluding currency effects. Operating income rose to $210.8 million, a 19% increase, and income before the cumulative effect of an accounting change was $156.1 million, up 28%. Diluted EPS before the cumulative effect was $1.14, compared with $.92 in 1999. Net income after a $10.8 million charge for the cumulative effect of the change in revenue recognition (SAB 101) was $145.3 million, or $1.06 per diluted share. The company describes itself as the world's largest manufacturer and distributor of HPLC instruments, columns and consumables, with growing mass spectrometry (Micromass) and thermal analysis (TA Instruments) businesses. Approximately 57% of 2000 net sales came from outside the United States, and about 64% came from the pharmaceutical industry. Net cash from operating activities was $175.6 million, and cash and cash equivalents rose to $75.5 million from $3.8 million. Bank debt was fully repaid, and the company had no borrowings outstanding under its $450 million credit agreement at year end. The filing also covers risks that investors should weigh: competition from larger instrument makers, concentration of sales in the pharmaceutical sector, currency exposure, and several patent infringement suits, none of which management considers material. The company has not paid dividends and does not plan to.
Mar 27, 2001
1998
Waters Annual Report, Year Ended Dec 31, 1998
Waters Corporation (Milford, Massachusetts) filed its Form 10-K for the fiscal year ended December 31, 1998. The company describes itself as the world's largest manufacturer and distributor of high performance liquid chromatography (HPLC) instruments, columns and consumables, and related service, and it also holds leading positions in thermal analysis (through TA Instruments) and mass spectrometry (through Micromass Limited, acquired in September 1997). Net sales for 1998 were $618.8 million, up 33% from $465.5 million in 1997, and the filing states that excluding the adverse effects of a stronger U.S. dollar, net sales increased 35%. Reported operating income was $119.8 million, while operating income excluding $16.5 million of nonrecurring inventory revaluation charges was $136.3 million, a 47% increase. Net income was $74.4 million, or $2.27 per diluted share, compared with a net loss of $8.3 million in 1997, which included $71.5 million of Micromass-related nonrecurring charges. The balance sheet improved meaningfully during the year. Long-term debt fell to $218.3 million from $305.3 million, and net cash from operating activities was $110.2 million, funding $90.2 million of net bank debt repayment. Stockholders' equity rose to $150.1 million from $62.3 million. The company has not paid dividends and does not plan to pay them in the foreseeable future. Approximately 58% of 1998 net sales were outside the United States, and about 60% were to the pharmaceutical industry. The filing also discloses risk factors including competition, foreign exchange exposure, substantial indebtedness under the Bank Credit Agreement, and reliance on key management, along with Year 2000 readiness work, with remaining Y2K remediation costs estimated at less than $1.0 million. The filing notes ongoing patent litigation, including suits involving Perkin-Elmer and Hewlett-Packard, which management believes will not be material. Management's letter highlights new product launches planned for 1999, including the Alliance HT System, the CapLC System, and a new Quattro Ultima triple quadrupole, and reports a single January 1999 order of over $8 million from the Japan National Police Agency.
Mar 31, 1999