First Quarter 2015 Press Release

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Waters Reports First Quarter 2015 Financial Results

April 28, 2015

MILFORD, Mass.--(BUSINESS WIRE)--Apr. 28, 2015-- Waters Corporation (NYSE:WAT) reported today first quarter 2015 sales of $460 million, an increase of 7% in comparison to sales of $431 million in the first quarter of 2014. Foreign currency translation reduced sales growth by 8%. On a GAAP basis, earnings per diluted share (EPS) for the first quarter of 2015 were $1.15 compared to $0.82 for the first quarter of 2014. On a non-GAAP basis, including the adjustments in the attached reconciliation, EPS were up 32% to $1.21 compared to $0.92 in the prior year quarter. A description and reconciliation of GAAP to non-GAAP EPS is attached and can be found on the Company's website at http://www.waters.com under the caption "Investors".

Commenting on the quarter, Douglas A. Berthiaume, Chairman, President, and Chief Executive Officer, said, "Broad-based end customer, product and geographical demand characterized our exceptional organic revenue growth in the first quarter. In addition, increased operating margins contributed to strong double-digit growth in our adjusted earnings per share and solid cash generation."

As communicated in a prior press release, Waters Corporation will webcast its first quarter 2015 financial results conference call this morning, April 28, 2015 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.com, choose "Investor Relations" and click on the "Live Webcast". A replay will be available through May 5, 2015 at midnight eastern time, similarly by webcast and also by phone at 203-369-3616.

About Waters Corporation

For over 50 years, Waters Corporation (NYSE:WAT) has created business advantages for laboratory-dependent organizations by delivering practical and sustainable innovation to enable significant advancements in such areas as healthcare delivery, environmental management, food safety and water quality worldwide.

Pioneering a connected portfolio of separations science, laboratory information management, mass spectrometry and thermal analysis, Waters technology breakthroughs and laboratory solutions provide an enduring platform for customer success.

With revenue of $1.99 billion in 2014, Waters is driving scientific discovery and operational excellence for customers worldwide.

CAUTIONARY STATEMENT

This release may contain "forward-looking" statements regarding future results and events. 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, uncertainties relating to organizational/leadership transition plans; the impact on demand among the Company's various market sectors from economic, sovereign and political uncertainties; fluctuations in expenditures by the Company's customers, in particular large pharmaceutical companies; introduction of competing products by other companies and loss of market share; pressures on prices from competitors and/or customers; regulatory, economic and competitive obstacles to new product introductions; other changes in demand from the effect of mergers and acquisitions by the Company's customers; 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; shifts in taxable income in jurisdictions with different effective tax rates; the outcome of tax examinations or changes in respective country legislation affecting the Company's effective tax rate; the ability to access capital, maintain liquidity and service our debt in volatile market conditions, particularly in the U.S., as a large portion of the Company's cash is held and operating cash flows are generated outside the U.S.; environmental and logistical obstacles affecting the distribution of products; risks associated with lawsuits and other legal actions, particularly involving claims for infringement of patents and other intellectual property rights; and foreign exchange rate fluctuations potentially affecting translation of the Company's future non-U.S. operating results. 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, 2014 as filed with the Securities and Exchange Commission, which "Forward-Looking Statements" and "Risk Factors" discussions are incorporated by reference in this release. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release report and should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this release.

Waters Corporation and Subsidiaries Condensed Unclassified Consolidated Balance Sheets (In thousands and unaudited)
					April 4, 2015					December 31, 2014
Cash, cash equivalents and investments					2,109,045					2,055,388
Accounts receivable					394,370					433,616
Inventories					257,530					246,430
Property, plant and equipment, net					316,814					321,583
Intangible assets, net					213,108					232,371
Goodwill					350,021					354,838
Other assets					231,838					233,708
Total assets					3,872,726					3,877,934
Notes payable and debt					1,485,316					1,465,243
Other liabilities					525,170					518,025
Total liabilities					2,010,486					1,983,268
Total equity					1,862,240					1,894,666
Total liabilities and equity					3,872,726					3,877,934

Waters Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
					(Unaudited)
					Three Months Ended
					April 4, 2015			March 29, 2014
Net sales					$	460,404				$	430,508
Cost of sales						189,246					187,719
Gross profit						271,158					242,789
Selling and administrative expenses						119,751					126,635
Research and development expenses						28,951					24,746
Purchased intangibles amortization						2,474					2,647
Operating income						119,982					88,761
Interest expense, net						(6,635	)				(6,031	)
Income from operations before income taxes						113,347					82,730
Provision for income tax expense						17,286					12,428
Net income					$	96,061				$	70,302
Net income per basic common share					$	1.16				$	0.83
Weighted-average number of basic common shares						83,025					84,977
Net income per diluted common share					$	1.15				$	0.82
Weighted-average number of diluted common shares and equivalents						83,752					85,873

Waters Corporation and Subsidiaries
Quarterly Reconciliation of GAAP to Adjusted Non-GAAP Financials
(in thousands, except per share data)

The 2015 and 2014 adjusted amounts presented below are used by the management of the Company to measure operating performance against prior periods and forecasts and are not in accordance with generally accepted accounting principles (GAAP). These Non-GAAP amounts should be considered supplemental to, and not a substitute for, financial performance in accordance with GAAP. The Company believes that the use of Non-GAAP measures, such as Adjusted Non-GAAP Earnings Per Share (EPS) and Adjusted Non-GAAP Operating Income, help management and investors gain a better understanding of our core operating results, and is consistent with how management measures performance for purposes of executive compensation and forecasts the Company's performance. The reconciliation identifies items management has excluded as non-operational items. Management has excluded the following items:

• Purchased Intangibles Amortization was excluded to allow for comparisons of operating results that are consistent over periods of time.
• Restructuring Costs, Asset Impairments, Acquisition-Related Costs and Other One-Time Costs were excluded as the Company believes that costs to consolidate operations, reduce overhead and complete acquisitions are infrequent or unusual and are not indicative of normal operating costs.
• Infrequent Income Tax Items were excluded as these costs and benefits are typically the result of audit examination settlements, updates in management's assessment of ongoing examinations or other unusual tax items and are not indicative of the Company's normal or future income tax expense.

					(Unaudited)
					Three Months Ended
					April 4, 2015			March 29, 2014
GAAP Selling and Administrative Expenses (including Purchased Intangibles Amortization)					$	(122,225	)			$	(129,282	)
Purchased Intangibles Amortization						2,474					2,647
Restructuring Costs, Asset Impairments, Acquisitions & Other One-Time Costs						1,272					8,318
Adjusted Non-GAAP Selling & Administrative Expenses					$	(118,479	)			$	(118,317	)
GAAP Operating Income					$	119,982				$	88,761
Purchased Intangibles Amortization						2,474					2,647
Restructuring Costs, Asset Impairments, Acquisitions & Other One-Time Costs						1,272					8,318
Adjusted Non-GAAP Operating Income					$	123,728				$	99,726
GAAP Provision for Income Tax Expense					$	(17,286	)			$	(12,428	)
Purchased Intangibles Amortization						(704	)				(743	)
Restructuring Costs, Asset Impairments, Acquisitions & Other One-Time Costs						(363	)				(2,760	)
Infrequent Income Tax Items						2,406					857
Adjusted Non-GAAP Provision for Income Tax Expense					$	(15,947	)			$	(15,074	)
GAAP Net Income					$	96,061				$	70,302
Purchased Intangibles Amortization						1,770					1,904
Restructuring Costs, Asset Impairments, Acquisitions & Other One-Time Costs						909					5,558
Infrequent Income Tax Items						2,406					857
Adjusted Non-GAAP Net Income					$	101,146				$	78,621
GAAP EPS					$	1.15				$	0.82
Purchased Intangibles Amortization						0.02					0.02
Restructuring Costs, Asset Impairments, Acquisitions & Other One-Time Costs						0.01					0.06
Infrequent Income Tax Items						0.03					0.01
Adjusted Non-GAAP EPS					$	1.21				$	0.92

Source: Waters Corporation

Waters Corporation
John Lynch, 508-482-2314
Vice President, Treasurer and Investor Relations

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