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Mettler-Toledo International Inc. Reports First Quarter 2018 Results
- - Strong Adjusted EPS Growth - -

COLUMBUS, Ohio, May 3, 2018 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2018.  Provided below are the highlights:

  • Sales in local currency increased 5% in the quarter compared with the prior year.  Reported sales increased 11% as currency increased sales growth by 6% in the quarter.
  • Net earnings per diluted share as reported (EPS) were $3.58, compared with $3.48 in the prior-year period.  Adjusted EPS was $3.74, an increase of 12% over the prior-year amount of $3.34.  Adjusted EPS is a non-GAAP measure, and we have included a reconciliation to EPS on the last page of the attached schedules. 

First Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "Sales growth in the quarter came in as expected, and was impacted by the excellent sales growth in the prior-year period.  China, in particular, had very strong broad-based sales growth in the quarter. This solid sales growth drove another quarter of strong Adjusted EPS growth."

EPS in the quarter was $3.58, compared with the prior-year amount of $3.48.  Adjusted EPS was $3.74, an increase of 12% over the prior-year amount of $3.34.      

Sales were $660.8 million, a 5% increase in local currency sales, compared with $594.6 million in the prior-year quarter.  Reported sales increased 11% as currency increased sales growth by 6% in the quarter.  Compared with the prior year, local currency sales increased 5% in the Americas and 10% in Asia/Rest of World.  Sales declined 1% in local currency in Europe.  Adjusted operating income amounted to $139.5 million, a 10% increase from the prior-year amount of $126.5 million.  Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules. 

Outlook 

The Company said that, based on its assessment of market conditions today, management anticipates local currency sales growth in 2018 will be approximately 6%.  This sales growth is expected to result in

Adjusted EPS in the range of $20.10 to $20.25, which reflects growth of 14% to 15%.  This compares with previous guidance of Adjusted EPS in the range of $19.95 to $20.15.   

Management anticipates that local currency sales growth in the second quarter 2018 will be approximately 6%, and Adjusted EPS is forecasted to be in the range of $4.55 to $4.60, an increase of 16% to 17%. 

While the Company has provided an outlook for Adjusted EPS, it has not provided an outlook for EPS as it would require an estimate of non-recurring items, which are not yet known.  The Company noted in making its outlook that economic uncertainty remains in certain regions of the world and market conditions are subject to change.   

Conclusion

Filliol concluded, "Our outlook for 2018 remains promising despite facing difficult comparisons given our very strong performance last year.  We acknowledge there is more uncertainty in the global economy compared with a few months ago but overall demand remains solid. We believe we are well positioned for continued share gains.  Our Spinnaker sales and marketing programs, new product launches and continued investments in sales activities are generating returns.  Our margin and productivity programs complement our sales growth initiatives and will yield continued earnings growth and funds for additional investments for growth."    

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, May 3) at 5:00 p.m. Eastern Time.  To hear a live webcast or replay of the call, visit the investor relations page on the Company's website at www.mt.com/investors.  The presentation referenced in the conference call will be located on the website prior to the call.

METTLER TOLEDO (NYSE: MTD) is a leading global supplier of precision instruments and services. We have strong leadership positions in all of our businesses and believe we hold global number-one market positions in most of them. We are recognized as an innovation leader and our solutions are critical in key R&D, quality control, and manufacturing processes for customers in a wide range of industries including life sciences, food, and chemicals. Our sales and service network is one of the most extensive in the industry. Our products are sold in more than 140 countries and we have a direct presence in approximately 40 countries. With proven growth strategies and a focus on execution, we have achieved a long-term track record of strong financial performance. For more information, please visit www.mt.com.

Statements in this press release which are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934.  These statements involve known and unknown risks, uncertainties and other factors that may cause our or our businesses' actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements.  In some cases, you can identify forward-looking statements by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or "continue" or the negative of those terms or other comparable terminology.  For a discussion of these risks and uncertainties, please see the discussion on forward-looking statements in our current report on Form 10-K.  All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the captions "Factors affecting our future operating results" and in the "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our annual report on Form 10-K for the most recently completed fiscal year, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements.

 

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)

                                       
     

 

 

Three months ended

           

 

 

Three months ended

       
     

March 31, 2018

 

% of sales

   

March 31, 2017

 

% of sales

 
                                       

Net sales

   

$660,821

(a)

 

100.0

       

$594,567

     

100.0

   

Cost of sales

   

285,888

     

43.3

       

251,178

(b)

 

42.2

   

Gross profit

   

374,933

     

56.7

       

343,389

     

57.8

   
                                       

Research and development

   

34,713

     

5.3

       

31,200

(b)

 

5.3

   

Selling, general and administrative 

   

200,674

     

30.4

       

185,656

(b)

 

31.2

   

Amortization

   

11,735

     

1.8

       

10,045

     

1.7

   

Interest expense

   

8,359

     

1.2

       

7,741

     

1.3

   

Restructuring charges

   

4,413

     

0.6

       

1,432

     

0.2

   

Other charges (income), net

   

(2,400)

     

(0.4)

       

(6,533)

(b)(c)

(1.0)

   

Earnings before taxes

   

117,439

     

17.8

       

113,848

     

19.1

   
                                       

Provision for taxes

   

24,135

     

3.7

       

21,382

     

3.5

   

Net earnings

   

$93,304

     

14.1

       

$92,466

     

15.6

   
                                       

Basic earnings per common share:

                                   

Net earnings 

   

$3.66

               

$3.57

           

Weighted average number of common shares

   

25,468,323

               

25,932,112

           
                                       

Diluted earnings per common share:

                                   

Net earnings 

   

$3.58

               

$3.48

           

Weighted average number of common 

   

26,095,647

               

26,586,061

           

  and common equivalent shares

                                   

 

Note:

 

(a)

Local currency sales increased 5% as compared to the same period in 2017.

 

(b)

In accordance with the new accounting rules that went into effect on January 1, 2018, the Company reclassified a net pension benefit of $0.8 million into other charges (income) from other income statement categories for the three months ended March 31, 2017 to be consistent with the 2018 presentation.

(c)

Other charges (income), net for three months ended March 31, 2017 also includes a one-time gain of $3.4 million relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.

 

 

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME

                                       
     

Three months ended

       

Three months ended

         
     

March 31, 2018

 

% of sales

   

March 31, 2017

 

% of sales

 
                                       

Earnings before taxes

   

$117,439

               

$113,848

           

Amortization

   

11,735

               

10,045

           

Interest expense

   

8,359

               

7,741

           

Restructuring charges

   

4,413

               

1,432

           

Other charges (income), net

   

(2,400)

               

(6,533)

(b)(c)

     

Adjusted operating income 

   

$139,546

(d)

 

21.1

       

$126,533

     

21.3

   
                                       

Note:

                                   

(d)         Adjusted operating income increased 10% as compared to the same period in 2017.

 

 

 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

(unaudited)

                   
                   
   

March 31, 2018

   

December 31, 2017

                   

Cash and cash equivalents

   

$98,949

       

$148,687

 

Accounts receivable, net

   

483,919

       

528,615

 

Inventories

   

278,318

       

255,390

 

Other current assets and prepaid expenses

   

66,186

       

74,031

 

Total current assets

   

927,372

       

1,006,723

 
                   

Property, plant and equipment, net

   

696,890

       

668,271

 

Goodwill and other intangible assets, net

   

769,511

       

766,556

 

Other non-current assets

   

118,134

       

108,255

 

Total assets

   

$2,511,907

       

$2,549,805

 
                   

Short-term borrowings and maturities of long-term debt

   

$14,883

       

$19,677

 

Trade accounts payable

   

164,639

       

167,627

 

Accrued and other current liabilities

   

457,360

       

502,369

 

Total current liabilities

   

636,882

       

689,673

 
                   

Long-term debt

   

978,715

       

960,170

 

Other non-current liabilities

   

335,563

       

352,682

 

Total liabilities

   

1,951,160

       

2,002,525

 
                   

Shareholders' equity

   

560,747

       

547,280

 

Total liabilities and shareholders' equity

   

$2,511,907

       

$2,549,805

 

 

 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (amounts in thousands)

 (unaudited)

               
       

Three months ended

 
       

March 31,

 
       

2018

 

2017

 
               

Cash flow from operating activities:

           

    Net earnings

   

$93,304

 

$92,466

 

    Adjustments to reconcile net earnings to

           

      net cash provided by operating activities:

           

Depreciation

   

9,157

 

7,966

 

Amortization

   

11,735

 

10,045

 

Deferred tax benefit

   

(6,416)

 

(1,470)

 

Gain on facility sale 

   

-

 

(3,394)

 

Other

   

3,085

 

3,812

 

Decrease in cash resulting from changes in

           

  operating assets and liabilities

   

(34,301)

 

(41,826)

 

                Net cash provided by operating activities

   

76,564

 

67,599

 
               

Cash flows from investing activities:

           

    Proceeds from sale of property, plant and equipment

   

4,507

 

10,003

 

    Purchase of property, plant and equipment

   

(29,774)

 

(21,015)

 

    Acquisitions

   

(500)

 

-

 

    Net hedging settlements on intercompany loans

   

3,304

 

312

 

                Net cash used in investing activities

   

(22,463)

 

(10,700)

 
               

Cash flows from financing activities:

           

    Proceeds from borrowings

   

336,512

 

472,732

 

    Repayments of borrowings

   

(331,114)

 

(409,881)

 

    Proceeds from exercise of stock options

   

5,669

 

8,201

 

    Repurchases of common stock 

   

(118,750)

 

(124,997)

 

                Net cash used in financing activities

   

(107,683)

 

(53,945)

 
               

Effect of exchange rate changes on cash and cash equivalents

   

3,844

 

3,265

 
               

Net increase (decrease) in cash and cash equivalents

   

(49,738)

 

6,219

 
               

Cash and cash equivalents:

           

    Beginning of period

   

148,687

 

158,674

 

    End of period

   

$98,949

 

$164,893

 
               
               

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

               

Net cash provided by operating activities

   

$76,564

 

$67,599

 

    Payments in respect of restructuring activities

   

5,242

 

2,578

 

    Proceeds from sale of property, plant and equipment

   

4,507

 

10,003

 

    Purchase of property, plant and equipment

   

(29,774)

 

(21,015)

 

Free cash flow

   

$56,539

 

$59,165

 

 

 

METTLER-TOLEDO INTERNATIONAL INC.

OTHER OPERATING STATISTICS

                           
                           

SALES GROWTH BY DESTINATION

(unaudited)

                           
       

Europe

 

Americas

 

Asia/RoW

 

Total

   
                           

U.S. Dollar Sales Growth

                       
 

Three Months Ended March 31, 2018

   

12%

 

6%

18%

 

11%

 
                           

Local Currency Sales Growth (Decrease)

                       
 

Three Months Ended March 31, 2018

   

(1%)

 

5%

10%

 

5%

 
                           
                           
                           

RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS 

(unaudited)

                           
           

Three months ended

 
           

March 31,

 
           

2018

   

2017

 

%
Growth

 
                           

EPS as reported, diluted

       

$3.58

   

$3.48

 

3%

 
                           

Restructuring charges, net of tax

       

0.13

(a)

 

0.04

(a)

     

Purchased intangible amortization, net of tax

       

0.10

(b)

 

0.06

(b)

     

Income tax expense

       

(0.07)

(c)

 

(0.14)

(c)

     

Gain on facility sale

             

(0.10)

(d)

     
                           

Adjusted EPS, diluted

       

$3.74

   

$3.34

 

12%

 

 

Notes:

                       

(a)

Represents the EPS impact of restructuring charges of $4.4 million ($3.4 million after tax) and $1.4 million ($1.1 million after tax) for
both the three months ended March 31, 2018 and 2017, respectively, which primarily include employee related costs.

(b)

Represents the EPS impact of purchased intangibles amortization, net of tax, of $2.5 million and $1.5 million for the three month
periods ended March 31, 2018 and 2017, respectively.

(c)

Represents the EPS impact of the difference between our reported tax rate of 21% and 19% during the three months ending March 31,
2018 and 2017, respectively, and our annual income tax rate of 22%, due to excess tax benefits associated with stock option exercises. 

(d)

Represents the EPS impact of a one-time gain of $3.4 million ($2.7 million after tax) for the three months ended March 31, 2017 relating
to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.

 

Cision View original content:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-first-quarter-2018-results-300642486.html

SOURCE Mettler-Toledo International Inc.

Mary T. Finnegan, Treasurer, Investor Relations, Mettler-Toledo International Inc., +1-614-438-4748, Fax: +1-614-438-4646