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Mettler-Toledo International Inc. Reports First Quarter 2016 Results
- - Continued Solid Earnings Growth - -

COLUMBUS, Ohio, May 5, 2016 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2016.  Provided below are the highlights:

  • Sales in local currency increased 4% in the quarter compared with the prior year.  Reported sales increased 1% as currency reduced sales growth by 3% in the quarter.
  • Net earnings per diluted share as reported (EPS) were $2.40, compared with $2.19 in the prior-year period.  Adjusted EPS was $2.46, an increase of 9% over the prior-year amount of $2.25.  Adjusted EPS is a non-GAAP measure and excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.  A reconciliation to EPS is provided on the last page of the attached schedules. 

First Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "We had a solid start to the year with our first quarter results.  Americas had another quarter of good sales growth while Europe came in a little below our expectations.  Emerging markets had solid growth including growth in China.  With good execution and benefit of productivity initiatives, we achieved solid growth in EPS despite currency headwinds." 

EPS in the quarter was $2.40, compared with the prior-year amount of $2.19.  Adjusted EPS was $2.46, an increase of 9% over the prior-year amount of $2.25.  

Sales were $539.7 million, a 4% increase in local currency sales, compared with $535.7 million in the prior-year quarter.  Reported sales increased 1% as currency reduced sales growth by 3% in the quarter.  As compared to the prior year, local currency sales increased 6% in the Americas and 4% in Asia / Rest of World.  In Europe, sales in local currency were constant with the prior year.  Adjusted operating income amounted to $102.0 million, a 5% increase from the prior-year amount of $97.3 million.  Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules.

Cash flow from operations was $35.7 million, compared with $58.6 million in the prior-year quarter.

Outlook 

The Company updated its outlook for 2016 and noted that forecasting remains challenging. 

Based on today's assessment, management anticipates that local currency sales growth in 2016 will be approximately 4% and Adjusted EPS is forecasted to be in the range of $14.25 to $14.35, an increase of 10% to 11%.  This compares to previous guidance of local currency sales growth in the range of 3% to 4% and Adjusted EPS in the range of $14.10 to $14.30.    

For the second quarter 2016, management anticipates that local currency sales growth will be approximately 4% and Adjusted EPS is forecasted to be in the range of $3.09 to $3.14, an increase of 10% to 12%. 

Adjusted EPS excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.  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.  

Conclusion

Filliol concluded, "We are pleased with the start to the year but remain cautious on the global economy as uncertainty remains.  Our initiatives remain on track and we expect to continue to benefit from new product introductions, Field Turbo investments, Spinnaker sales and marketing programs and continued productivity measures.  We are focused on continued strong execution and believe we can continue to generate above-market growth."     

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, May 5) 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 is a leading global supplier of precision instruments and services. The Company has strong leadership positions in all businesses and believes it holds global number-one market positions in a majority of them. Specifically, METTLER TOLEDO is the largest provider of weighing instruments for use in laboratory, industrial and food retailing applications. The Company is also a leading provider in analytical instruments for use in life science, reaction engineering and real-time analytic systems used in drug and chemical compound development and process analytics instruments used for in-line measurement in production processes. In addition, METTLER TOLEDO is the largest supplier of end-of-line inspection systems used in production and packaging for food, pharmaceutical and other industries. Additional information about METTLER TOLEDO can be found at www.mt.com/investors.

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 8-K to which this release has been furnished as an exhibit.  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, 2016


% of sales



March 31, 2015


% of sales






















Net sales



$539,674

(a)



100.0





$535,701




100.0



Cost of sales



239,767




44.4





236,896




44.2



Gross profit



299,907




55.6





298,805




55.8























Research and development



28,973




5.4





28,461




5.3



Selling, general and administrative 



168,921




31.3





173,038




32.3



Amortization



8,424




1.6





7,528




1.4



Interest expense



6,580




1.2





6,725




1.3



Restructuring charges



880




0.2





907




0.2



Other charges (income), net



(284)




(0.1)





(817)




(0.2)



Earnings before taxes



86,413




16.0





82,963




15.5























Provision for taxes



20,739




3.8





19,912




3.7



Net earnings



$65,674




12.2





$63,051




11.8























Basic earnings per common share:



















Net earnings 



$2.44









$2.24







Weighted average number of common shares



26,931,293









28,115,220



























Diluted earnings per common share:



















Net earnings 



$2.40









$2.19







Weighted average number of common 



27,421,019









28,762,935







  and common equivalent shares







































Note:
















(a)   Local currency sales increased 4% as compared to the same period in 2015.



























RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME

























Three months ended








Three months ended









March 31, 2016


% of sales



March 31, 2015


% of sales






















Earnings before taxes



$86,413









$82,963







Amortization



8,424









7,528







Interest expense



6,580









6,725







Restructuring charges



880









907







Other charges (income), net



(284)









(817)







Adjusted operating income 



$102,013

(b)



18.9





$97,306




18.2























Note:



















(b)   Adjusted operating income increased 5% as compared to the same period in 2015.



 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

(unaudited)























March 31, 2016



December 31, 2015











Cash and cash equivalents



$110,595





$98,887


Accounts receivable, net



387,296





411,420


Inventories



227,323





214,383


Other current assets and prepaid expenses



141,485





138,125


Total current assets



866,699





862,815












Property, plant and equipment, net



521,496





517,229


Goodwill and other intangibles assets, net



564,173





561,536


Other non-current assets



82,905





75,059


Total assets



$2,035,273





$2,016,639












Short-term borrowings and maturities of long-term debt



$17,381





$14,488


Trade accounts payable



120,536





142,075


Accrued and other current liabilities



406,875





438,564


Total current liabilities



544,792





595,127












Long-term debt



681,872





575,138


Other non-current liabilities



265,276





265,917


Total liabilities



1,491,940





1,436,182












Shareholders' equity



543,333





580,457


Total liabilities and shareholders' equity



$2,035,273





$2,016,639












 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (amounts in thousands)

 (unaudited)













Three months ended






March 31,






2016


2015










Cash flow from operating activities:







    Net earnings



$65,674


$63,051


    Adjustments to reconcile net earnings to







      net cash provided by operating activities:







Depreciation



8,122


8,301


Amortization



8,424


7,528


Deferred tax benefit



(3,304)


(1,670)


Excess tax benefits from share-based payment arrangements


(5,805)


(441)


Other



3,579


3,480


Decrease in cash resulting from changes in







  operating assets and liabilities



(40,990)


(21,653)


                Net cash provided by operating activities



35,700


58,596










Cash flows from investing activities:







    Proceeds from sale of property, plant and equipment



135


42


    Purchase of property, plant and equipment



(14,348)


(18,539)


    Acquisitions



(4,329)


(200)


    Net hedging settlements on intercompany loans



2,128


(8,384)


                Net cash used in investing activities



(16,414)


(27,081)










Cash flows from financing activities:







    Proceeds from borrowings



229,413


150,996


    Repayments of borrowings



(124,467)


(77,486)


    Proceeds from exercise of stock options



5,909


9,546


    Excess tax benefits from share-based payment arrangements



5,805


441


    Repurchases of common stock 



(125,000)


(123,745)


    Other financing activities



(125)


-


                Net cash used in financing activities



(8,465)


(40,248)










Effect of exchange rate changes on cash and cash equivalents



887


(1,171)










Net increase (decrease) in cash and cash equivalents



11,708


(9,904)










Cash and cash equivalents:







    Beginning of period



98,887


85,263


    End of period



$110,595


$75,359


















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









Net cash provided by operating activities



$35,700


$58,596


    Excess tax benefits from share-based payment arrangements



5,805


441


    Payments in respect of restructuring activities



1,841


806


    Proceeds from sale of property, plant and equipment



135


42


    Purchase of property, plant and equipment



(14,348)


(18,539)


Free cash flow



$29,133


$41,346










 

METTLER-TOLEDO INTERNATIONAL INC.

OTHER OPERATING STATISTICS





























SALES GROWTH BY DESTINATION

(unaudited)



















Europe


Americas


Asia/RoW


Total

















U.S. Dollar Sales Growth (Decrease)














Three Months Ended March 31, 2016



(2%)


5%

(1%)


1%
















Local Currency Sales Growth (Decrease)














Three Months Ended March 31, 2016



0%


6%

4%


4%












































RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS 

(unaudited)





















Three months ended








March 31,








2016



2015


% Growth
















EPS as reported, diluted





$2.40



$2.19


10%
















Restructuring charges, net of tax





0.02

(a)


0.02

(a)




Purchased intangible amortization, net of tax





0.04

(b)


0.04

(b)


















Adjusted EPS, diluted





$2.46



$2.25


9%
















Notes:













(a)

Represents the EPS impact of restructuring charges of $0.9 million ($0.7 million after tax) for both the three months ended March 31, 2016 and 2015, respectively, which primarily include employee related costs.

(b)

Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.1 million and $1.0 million for the three month periods ended March 31, 2016 and 2015, respectively.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-first-quarter-2016-results-300264017.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