- Reported sales increased 7% compared with the prior year. In local currency, sales increased 6% in the quarter as currency benefited reported sales growth by 1%.
- Net earnings per diluted share as reported (EPS) were
$6.68 , compared with$5.20 in the prior-year period. Adjusted EPS was$7.02 , an increase of 22% over the prior-year amount of$5.77 . 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 7% to
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased 6% as currency benefited sales growth by 1%. By region, local currency sales increased 3% 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 was
Compared with the prior year, total reported sales decreased 1% to
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency was constant as currency reduced reported sales by 1%. By region, local currency sales decreased 1% 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.
Share Repurchase Authorization
The Company has
Outlook
The Company stated that forecasting continues to be challenging given the significant uncertainty surrounding COVID-19 and ensuing impact to the global economic environment. While the Company is providing an estimate for sales growth and Adjusted EPS for 2020 and 2021, 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 the local currency sales growth in the fourth quarter 2020 will be in the range of 4% to 5%, and Adjusted EPS is forecasted to be in the range of
For the full year 2020, local currency sales growth is expected to be approximately 1% and Adjusted EPS is forecasted to be
The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2021 to be in the range of 4% to 6%. This sales growth is expected to result in Adjusted EPS in the range of
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, "The regional dynamics surrounding COVID-19 continue to change rapidly and the outlook for the global economy remains uncertain. We remain focused on factors we can control, namely ensuring the safety of our employees while serving our customers, the majority of which are in essential end markets including life sciences and food manufacturing. We continue to launch leading-edge instruments and services and have adapted our innovative digital sales and marketing approaches to ensure our go-to-market approach is highly effective given current market conditions. As we look to the remainder of 2020 and to 2021, we believe we will continue to gain share and deliver solid results. We will remain agile and adapt as necessary to changes in market conditions."
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 |
337,749 |
41.8 |
318,810 |
42.3 |
|||||||||||||||
Gross profit |
469,608 |
58.2 |
435,056 |
57.7 |
|||||||||||||||
Research and development |
34,656 |
4.3 |
36,015 |
4.8 |
|||||||||||||||
Selling, general and administrative |
204,974 |
25.4 |
202,826 |
26.9 |
|||||||||||||||
Amortization |
14,121 |
1.7 |
12,329 |
1.6 |
|||||||||||||||
Interest expense |
9,310 |
1.2 |
9,800 |
1.3 |
|||||||||||||||
Restructuring charges |
4,570 |
0.6 |
6,732 |
0.9 |
|||||||||||||||
Other charges (income), net |
(3,832) |
(0.5) |
(2,005) |
(0.3) |
|||||||||||||||
Earnings before taxes |
205,809 |
25.5 |
169,359 |
22.5 |
|||||||||||||||
Provision for taxes |
44,042 |
5.5 |
39,964 |
5.3 |
|||||||||||||||
Net earnings |
|
20.0 |
|
17.2 |
|||||||||||||||
Basic earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common shares |
23,922,272 |
24,487,268 |
|||||||||||||||||
Diluted earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common |
24,225,204 |
24,880,179 |
|||||||||||||||||
and common equivalent shares |
|||||||||||||||||||
Note: |
|||||||||||||||||||
(a) |
Local currency sales increased 6% as compared to the same period in 2019. |
||||||||||||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT |
|||||||||||||||||||
Three months ended |
Three months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Earnings before taxes |
|
|
|||||||||||||||||
Amortization |
14,121 |
12,329 |
|||||||||||||||||
Interest expense |
9,310 |
9,800 |
|||||||||||||||||
Restructuring charges |
4,570 |
6,732 |
|||||||||||||||||
Other charges (income), net |
(3,832) |
(2,005) |
|||||||||||||||||
Adjusted operating profit |
|
(b) |
28.5 |
|
26.0 |
||||||||||||||
Note: |
|||||||||||||||||||
(b) |
Adjusted operating profit increased 17% as compared to the same period in 2019. |
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||
(amounts in thousands except share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Nine months ended |
Nine months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Net sales |
|
(a) |
100.0 |
|
(a) |
100.0 |
|||||||||||||
Cost of sales |
905,205 |
42.2 |
921,771 |
42.6 |
|||||||||||||||
Gross profit |
1,241,987 |
57.8 |
1,242,913 |
57.4 |
|||||||||||||||
Research and development |
100,236 |
4.7 |
108,650 |
5.0 |
|||||||||||||||
Selling, general and administrative |
593,852 |
27.7 |
612,466 |
28.3 |
|||||||||||||||
Amortization |
42,008 |
2.0 |
36,877 |
1.7 |
|||||||||||||||
Interest expense |
29,111 |
1.3 |
27,776 |
1.3 |
|||||||||||||||
Restructuring charges |
7,335 |
0.3 |
11,146 |
0.5 |
|||||||||||||||
Other charges (income), net |
(10,118) |
(0.5) |
(4,253) |
(0.2) |
|||||||||||||||
Earnings before taxes |
479,563 |
22.3 |
450,251 |
20.8 |
|||||||||||||||
Provision for taxes |
93,119 |
4.3 |
81,891 |
3.8 |
|||||||||||||||
Net earnings |
|
18.0 |
|
17.0 |
|||||||||||||||
Basic earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common shares |
23,963,311 |
24,677,546 |
|||||||||||||||||
Diluted earnings per common share: |
|||||||||||||||||||
Net earnings |
|
|
|||||||||||||||||
Weighted average number of common |
24,272,354 |
25,103,173 |
|||||||||||||||||
and common equivalent shares |
|||||||||||||||||||
Note: |
|||||||||||||||||||
(a) |
Local currency sales were flat compared to the same period in 2019. |
||||||||||||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT |
|||||||||||||||||||
Nine months ended |
Nine months ended |
||||||||||||||||||
|
% of sales |
|
% of sales |
||||||||||||||||
Earnings before taxes |
|
|
|||||||||||||||||
Amortization |
42,008 |
36,877 |
|||||||||||||||||
Interest expense |
29,111 |
27,776 |
|||||||||||||||||
Restructuring charges |
7,335 |
11,146 |
|||||||||||||||||
Other charges (income), net |
(10,118) |
(4,253) |
|||||||||||||||||
Adjusted operating profit |
|
(b) |
25.5 |
|
24.1 |
||||||||||||||
Note: |
|||||||||||||||||||
(b) |
Adjusted operating profit increased 5% as compared to the same period in 2019. |
|
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(amounts in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
|||||||||
Cash and cash equivalents |
|
|
||||||||
Accounts receivable, net |
521,777 |
566,256 |
||||||||
Inventories |
292,329 |
274,285 |
||||||||
Other current assets and prepaid expenses |
78,528 |
61,321 |
||||||||
Total current assets |
1,046,320 |
1,109,647 |
||||||||
Property, plant and equipment, net |
758,010 |
748,657 |
||||||||
|
740,873 |
742,221 |
||||||||
Other non-current assets |
221,333 |
188,796 |
||||||||
Total assets |
|
|
||||||||
Short-term borrowings and maturities of long-term debt |
|
|
||||||||
Trade accounts payable |
146,646 |
185,592 |
||||||||
Accrued and other current liabilities |
562,324 |
513,052 |
||||||||
Total current liabilities |
764,081 |
754,512 |
||||||||
Long-term debt |
1,169,136 |
1,235,350 |
||||||||
Other non-current liabilities |
390,252 |
378,679 |
||||||||
Total liabilities |
2,323,469 |
2,368,541 |
||||||||
Shareholders' equity |
443,067 |
420,780 |
||||||||
Total liabilities and shareholders' equity |
|
|
||||||||
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(amounts in thousands) |
||||||||
(unaudited) |
||||||||
Three months ended |
Nine 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 |
10,622 |
9,958 |
30,949 |
29,348 |
||||
Amortization |
14,121 |
12,329 |
42,008 |
36,877 |
||||
Deferred tax benefit |
(2,420) |
(3,082) |
(6,990) |
(17,963) |
||||
Other |
4,430 |
4,465 |
13,248 |
13,255 |
||||
Increase (decrease) in cash resulting from changes in |
||||||||
operating assets and liabilities |
36,559 |
22,811 |
8,171 |
(28,136) |
||||
Net cash provided by operating activities |
225,079 |
175,876 |
473,830 |
401,741 |
||||
Cash flows from investing activities: |
||||||||
Proceeds from sale of property, plant and equipment |
1,021 |
32 |
3,046 |
1,248 |
||||
Purchase of property, plant and equipment |
(20,339) |
(26,928) |
(57,428) |
(71,627) |
||||
Acquisitions |
- |
(1,500) |
(6,242) |
(2,004) |
||||
Net hedging settlements on intercompany loans |
(140) |
(2,873) |
(9,421) |
(4,099) |
||||
Net cash used in investing activities |
(19,458) |
(31,269) |
(70,045) |
(76,482) |
||||
Cash flows from financing activities: |
||||||||
Proceeds from borrowings |
72,262 |
168,881 |
1,148,360 |
807,711 |
||||
Repayments of borrowings |
(63,066) |
(128,066) |
(1,231,191) |
(660,795) |
||||
Proceeds from exercise of stock options |
8,444 |
159 |
26,194 |
37,916 |
||||
Repurchases of common stock |
(199,999) |
(186,250) |
(399,999) |
(558,749) |
||||
Acquisition contingent consideration payment |
- |
- |
- |
(10,000) |
||||
Other financing activities |
- |
- |
(800) |
1,753 |
||||
Net cash used in financing activities |
(182,359) |
(145,276) |
(457,436) |
(382,164) |
||||
Effect of exchange rate changes on cash and cash equivalents |
3,147 |
(3,236) |
(448) |
(671) |
||||
Net increase (decrease) in cash and cash equivalents |
26,409 |
(3,905) |
(54,099) |
(57,576) |
||||
Cash and cash equivalents: |
||||||||
Beginning of period |
127,277 |
124,439 |
|
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 |
1,634 |
2,604 |
6,261 |
9,450 |
||||
Transition tax payment |
4,264 |
- |
4,264 |
4,289 |
||||
Proceeds from sale of property, plant and equipment |
1,021 |
32 |
3,046 |
1,248 |
||||
Purchase of property, plant and equipment |
(20,339) |
(26,928) |
(57,428) |
(71,627) |
||||
Adjusted free cash flow |
|
|
|
|
||||
|
||||||||||||
OTHER OPERATING STATISTICS |
||||||||||||
SALES GROWTH BY DESTINATION |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
Total |
|||||||||
|
||||||||||||
Three Months Ended |
9% |
2% |
11% |
7% |
||||||||
Nine Months Ended |
(1%) |
(1%) |
0% |
(1%) |
||||||||
Local Currency Sales Growth (Decrease) |
||||||||||||
Three Months Ended |
4% |
3% |
10% |
6% |
||||||||
Nine Months Ended |
(2%) |
(1%) |
1% |
0% |
||||||||
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS |
||||||||||||
(unaudited) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
|
|
|||||||||||
2020 |
2019 |
% Growth |
2020 |
2019 |
% Growth |
|||||||
EPS as reported, diluted |
|
|
28% |
|
|
9% |
||||||
Restructuring charges, net of tax |
0.15 |
(a) |
0.22 |
(a) |
0.24 |
(a) |
0.36 |
(a) |
||||
Purchased intangible amortization, net of tax |
0.12 |
(b) |
0.11 |
(b) |
0.35 |
(b) |
0.32 |
(b) |
||||
Income tax expense |
0.07 |
(c) |
0.24 |
(c) |
(0.21) |
(c) |
(0.33) |
(c) |
||||
Adjusted EPS, diluted |
|
|
22% |
|
|
9% |
||||||
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 quarterly and estimated annual tax rate before non-recurring discrete items during the three and nine months ended |
View original content:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-third-quarter-2020-results-301167507.html
SOURCE
Mary T. Finnegan, Treasurer, Investor Relations, Mettler-Toledo International Inc., +1-614-438-4748, Fax: +1-614-438-4646