- Reported sales increased 11% compared with the prior year. In local currency, sales increased 7% in the quarter as currency benefited reported sales growth by 4%.
- Net earnings per diluted share as reported (EPS) were
$9.03 , compared with$7.84 in the prior-year period. Adjusted EPS was$9.26 , an increase of 19% over the prior-year amount of$7.78 . Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.
Quarterly Results
GAAP Results
EPS in the quarter was
Compared with the prior year, total reported sales increased 11% to
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased 7% as currency benefited sales growth by 4%. By region, local currency sales increased 8% in the
Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.
Year-to-Date Results
GAAP Results
EPS for the year was
Compared with the prior year, total reported sales increased 3% to
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased 2% as currency increased reported sales by 1%. By region, local currency sales increased 2% in the
Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.
Outlook
The Company stated that forecasting continues to be challenging given the uncertainty surrounding COVID-19 and ensuing impact to the global economic environment. Management cautions that market dynamics and impacts related to COVID-19 are fluid and changes to the business environment can happen quickly. The estimates include significant uncertainty and management acknowledges that market conditions are subject to change.
Based on today's assessment of market conditions, management anticipates local currency sales growth in 2021 will be in the range of 5% to 7%, and Adjusted EPS is forecasted to be in the range of
For the first quarter of 2021, based on current market conditions, the Company anticipates that local currency sales growth will be in the range of 11% to 13%, and Adjusted EPS is forecasted to be
While the Company has provided an outlook for local currency sales growth and Adjusted EPS, it has not provided an outlook for reported sales growth or EPS as it would require an estimate of currency exchange fluctuations and non-recurring items, which are not yet known.
Conclusion
Filliol concluded, "In 2020, we strengthened our franchise with our ability to support our customers, while prioritizing on the safety of our employees and customers. We differentiated from competition by leveraging and quickly adjusting our digital sales and marketing and Go-to-Market approaches to identify and pursue pockets of growth and effectively engage with customers. Our agility in responding to the unprecedented market conditions led to further share gains that would not have been possible without our Spinnaker sales and marketing foundation, excellent product portfolio, world-class service organization and strong culture of execution. We are in a strong position to capitalize on growth as customer demand improves throughout the world. While uncertainty remains surrounding the ultimate impact to the economy from COVID-19, we will continue to focus on serving our customers and driving our growth and margin initiatives. We will remain agile and adapt to changes in market conditions as necessary. We have good momentum as we enter 2021 and believe we are well positioned to continue to gain share and deliver strong results."
Other Matters
The Company will host a conference call to discuss its quarterly results today (
Statements in this press release which are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||
(amounts in thousands except share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Three months ended |
Three months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Net sales |
|
(a) |
100.0 |
|
100.0 |
||||||||||||||
Cost of sales |
378,941 |
40.4 |
345,672 |
41.0 |
|||||||||||||||
Gross profit |
559,044 |
59.6 |
498,297 |
59.0 |
|||||||||||||||
Research and development |
39,866 |
4.3 |
35,299 |
4.2 |
|||||||||||||||
Selling, general and administrative |
226,369 |
24.1 |
206,717 |
24.5 |
|||||||||||||||
Amortization |
14,657 |
1.6 |
12,813 |
1.5 |
|||||||||||||||
Interest expense |
9,505 |
1.0 |
9,635 |
1.1 |
|||||||||||||||
Restructuring charges |
3,181 |
0.3 |
4,614 |
0.5 |
|||||||||||||||
Other charges (income), net |
(3,714) |
(0.4) |
(1,924) |
(0.3) |
|||||||||||||||
Earnings before taxes |
269,180 |
28.7 |
231,143 |
27.3 |
|||||||||||||||
Provision for taxes |
52,885 |
5.6 |
38,394 |
(b) |
4.5 |
||||||||||||||
Net earnings |
|
23.1 |
|
22.8 |
|||||||||||||||
Basic earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common shares |
23,642,415 |
24,241,383 |
|||||||||||||||||
Diluted earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common |
23,965,853 |
24,599,702 |
|||||||||||||||||
and common equivalent shares |
|||||||||||||||||||
Note: |
|||||||||||||||||||
(a) |
Local currency sales increased 7% as compared to the same period in 2019. |
||||||||||||||||||
(b) |
Provision for taxes includes a non-cash deferred net benefit of |
||||||||||||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT |
|||||||||||||||||||
Three months ended |
Three months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Earnings before taxes |
|
|
|||||||||||||||||
Amortization |
14,657 |
12,813 |
|||||||||||||||||
Interest expense |
9,505 |
9,635 |
|||||||||||||||||
Restructuring charges |
3,181 |
4,614 |
|||||||||||||||||
Other charges (income), net |
(3,714) |
(1,924) |
|||||||||||||||||
Adjusted operating profit |
|
(c) |
31.2 |
|
30.4 |
||||||||||||||
Note: |
|||||||||||||||||||
(c) |
Adjusted operating profit increased 14% as compared to the same period in 2019. |
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||
(amounts in thousands except share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Twelve months ended |
Twelve months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Net sales |
|
(a) |
100.0 |
|
100.0 |
||||||||||||||
Cost of sales |
1,284,146 |
41.6 |
1,267,441 |
42.1 |
|||||||||||||||
Gross profit |
1,801,031 |
58.4 |
1,741,211 |
57.9 |
|||||||||||||||
Research and development |
140,102 |
4.5 |
143,950 |
4.8 |
|||||||||||||||
Selling, general and administrative |
820,221 |
26.6 |
819,183 |
27.2 |
|||||||||||||||
Amortization |
56,665 |
1.8 |
49,690 |
1.7 |
|||||||||||||||
Interest expense |
38,616 |
1.3 |
37,411 |
1.2 |
|||||||||||||||
Restructuring charges |
10,516 |
0.3 |
15,760 |
0.5 |
|||||||||||||||
Other charges (income), net |
(13,832) |
(0.4) |
(6,177) |
(0.3) |
|||||||||||||||
Earnings before taxes |
748,743 |
24.3 |
681,394 |
22.6 |
|||||||||||||||
Provision for taxes |
146,004 |
4.8 |
120,285 |
(b) |
4.0 |
||||||||||||||
Net earnings |
|
19.5 |
|
18.6 |
|||||||||||||||
Basic earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common shares |
23,882,648 |
24,567,609 |
|||||||||||||||||
Diluted earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common |
24,199,230 |
24,974,457 |
|||||||||||||||||
and common equivalent shares |
|||||||||||||||||||
Note: |
|||||||||||||||||||
(a) |
Local currency sales increased 2% compared to the same period in 2019. |
||||||||||||||||||
(b) |
Provision for taxes includes a non-cash deferred net benefit of |
||||||||||||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT |
|||||||||||||||||||
Twelve months ended |
Twelve months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Earnings before taxes |
|
|
|||||||||||||||||
Amortization |
56,665 |
49,690 |
|||||||||||||||||
Interest expense |
38,616 |
37,411 |
|||||||||||||||||
Restructuring charges |
10,516 |
15,760 |
|||||||||||||||||
Other charges (income), net |
(13,832) |
(6,177) |
|||||||||||||||||
Adjusted operating profit |
|
(c) |
27.2 |
|
25.9 |
||||||||||||||
Note: |
|||||||||||||||||||
(c) |
Adjusted operating profit increased 8% as compared to the same period in 2019. |
|
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(amounts in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
|||||||||
Cash and cash equivalents |
|
|
||||||||
Accounts receivable, net |
593,809 |
566,256 |
||||||||
Inventories |
297,611 |
274,285 |
||||||||
Other current assets and prepaid expenses |
71,230 |
61,321 |
||||||||
Total current assets |
1,056,904 |
1,109,647 |
||||||||
Property, plant and equipment, net |
798,868 |
748,657 |
||||||||
|
747,055 |
742,221 |
||||||||
Other non-current assets |
211,722 |
188,796 |
||||||||
Total assets |
|
|
||||||||
Short-term borrowings and maturities of long-term debt |
|
|
||||||||
Trade accounts payable |
175,801 |
185,592 |
||||||||
Accrued and other current liabilities |
614,209 |
513,052 |
||||||||
Total current liabilities |
840,327 |
754,512 |
||||||||
Long-term debt |
1,284,174 |
1,235,350 |
||||||||
Other non-current liabilities |
407,373 |
378,679 |
||||||||
Total liabilities |
2,531,874 |
2,368,541 |
||||||||
Shareholders' equity |
282,675 |
420,780 |
||||||||
Total liabilities and shareholders' equity |
|
|
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
(amounts in thousands) |
|||||||||
(unaudited) |
|||||||||
Three months ended |
Twelve months ended |
||||||||
|
|
||||||||
2020 |
2019 |
2020 |
2019 |
||||||
Cash flow from operating activities: |
|||||||||
Net earnings |
|
|
|
|
|||||
Adjustments to reconcile net earnings to |
|||||||||
net cash provided by operating activities: |
|||||||||
Depreciation |
11,095 |
9,643 |
42,044 |
38,991 |
|||||
Amortization |
14,657 |
12,813 |
56,665 |
49,690 |
|||||
Deferred tax (benefit) expense |
(5,794) |
29,166 |
(12,784) |
11,203 |
|||||
Share-based compensation |
5,439 |
5,002 |
18,687 |
18,285 |
|||||
Swiss tax reform benefit (a) |
- |
(15,833) |
- |
(15,833) |
|||||
Other |
(2,399) |
161 |
(2,399) |
133 |
|||||
Increase (decrease) in cash resulting from changes in |
|||||||||
operating assets and liabilities |
11,576 |
(31,992) |
19,747 |
(60,128) |
|||||
Net cash provided by operating activities |
250,869 |
201,709 |
724,699 |
603,450 |
|||||
Cash flows from investing activities: |
|||||||||
Proceeds from sale of property, plant and equipment |
60 |
174 |
3,106 |
1,422 |
|||||
Purchase of property, plant and equipment |
(35,066) |
(25,714) |
(92,494) |
(97,341) |
|||||
Acquisitions |
- |
- |
(6,242) |
(2,004) |
|||||
Net hedging settlements on intercompany loans |
4,691 |
2,939 |
(4,730) |
(1,160) |
|||||
Net cash used in investing activities |
(30,315) |
(22,601) |
(100,360) |
(99,083) |
|||||
Cash flows from financing activities: |
|||||||||
Proceeds from borrowings |
340,680 |
627,370 |
1,489,040 |
1,435,081 |
|||||
Repayments of borrowings |
(252,678) |
(515,989) |
(1,483,869) |
(1,176,784) |
|||||
Proceeds from exercise of stock options |
525 |
9,665 |
26,719 |
47,581 |
|||||
Repurchases of common stock |
(374,999) |
(216,249) |
(774,998) |
(774,999) |
|||||
Acquisition contingent consideration payment |
- |
- |
- |
(10,000) |
|||||
Other financing activities |
- |
- |
(800) |
1,753 |
|||||
Net cash used in financing activities |
(286,472) |
(95,203) |
(743,908) |
(477,368) |
|||||
Effect of exchange rate changes on cash and cash equivalents |
6,486 |
3,348 |
6,038 |
2,676 |
|||||
Net increase (decrease) in cash and cash equivalents |
(59,432) |
87,253 |
(113,531) |
29,675 |
|||||
Cash and cash equivalents: |
|||||||||
Beginning of period |
153,686 |
120,534 |
|
178,110 |
|||||
End of period |
|
|
|
|
|||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW |
|||||||||
Net cash provided by operating activities |
|
|
|
|
|||||
Payments in respect of restructuring activities |
2,280 |
7,033 |
8,541 |
16,483 |
|||||
Proceeds from sale of property, plant and equipment |
60 |
174 |
3,106 |
1,422 |
|||||
Purchase of property, plant and equipment |
(35,066) |
(25,714) |
(92,494) |
(97,341) |
|||||
Payments for one-time legal charge (b) |
- |
2,992 |
- |
2,992 |
|||||
Transition tax payment |
- |
- |
4,264 |
4,289 |
|||||
Adjusted free cash flow |
|
|
|
|
|||||
(a) |
Represents a non-cash deferred net benefit of |
||||||||
(b) |
Represents cash payment made in 2019, related to the one-time legal charge recorded during the three months ended |
|
||||||||||||
OTHER OPERATING STATISTICS |
||||||||||||
SALES GROWTH BY DESTINATION |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
Total |
|||||||||
|
||||||||||||
Three Months Ended |
14% |
8% |
12% |
11% |
||||||||
Twelve Months Ended |
3% |
1% |
3% |
3% |
||||||||
Local Currency Sales Growth (Decrease) |
||||||||||||
Three Months Ended |
7% |
8% |
8% |
7% |
||||||||
Twelve Months Ended |
1% |
2% |
3% |
2% |
||||||||
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS |
||||||||||||
(unaudited) |
||||||||||||
Three months ended |
Twelve months ended |
|||||||||||
|
|
|||||||||||
2020 |
2019 |
% Growth |
2020 |
2019 |
% Growth |
|||||||
EPS as reported, diluted |
|
|
15% |
|
|
11% |
||||||
Restructuring charges, net of tax |
0.11 |
(a) |
0.15 |
(a) |
0.35 |
(a) |
0.50 |
(a) |
||||
Purchased intangible amortization, net of tax |
0.12 |
(b) |
0.11 |
(b) |
0.46 |
(b) |
0.43 |
(b) |
||||
Income tax expense |
- |
(c) |
0.32 |
(c) |
- |
- |
||||||
Swiss Tax reform |
- |
(0.64) |
(d) |
- |
(0.63) |
(d) |
||||||
Adjusted EPS, diluted |
|
|
19% |
|
|
13% |
||||||
Notes: |
||||||||||||
(a) |
Represents the EPS impact of restructuring charges of |
|||||||||||
(b) |
Represents the EPS impact of purchased intangibles amortization of |
|||||||||||
(c) |
Represents the EPS impact of the difference between our reported and annual tax rate before non-recurring discrete items, due to the timing of excess tax benefits associated with stock option exercises and a |
|||||||||||
(d) |
Represents the EPS impact of a non-cash deferred net benefit of |
View original content:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-fourth-quarter-2020-results-301222717.html
SOURCE
For media contact, always use: Mary T. Finnegan, Treasurer, Investor Relations, Mettler-Toledo International Inc., +1-614-438-4748, Fax: +1-614-438-4646