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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