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Mettler-Toledo International Inc. Reports Fourth Quarter 2021 Results

COLUMBUS, Ohio, Feb. 10, 2022 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth quarter results for 2021. Provided below are the highlights:

  • Reported sales and local currency sales both increased 11% in the quarter compared with the prior year.
  • Net earnings per diluted share as reported (EPS) were $9.94, compared with $9.03 in the prior-year period. Adjusted EPS was $10.53, an increase of 14% over the prior-year amount of $9.26. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.

Fourth Quarter Results

Patrick Kaltenbach, President and Chief Executive Officer, stated, "We had a great finish to the year as we capitalized on strong customer demand and executed very well. Growth was particularly strong in the Americas and Asia/Rest of World, and our Laboratory and Industrial product lines had robust growth. Despite higher costs associated with challenges in the global supply chain, we had a very solid increase in operating profit and strong earnings growth. We had excellent cash flow generation in 2021."

GAAP Results

EPS in the quarter was $9.94, compared with the prior-year amount of $9.03. 

Compared with the prior year, total reported sales increased 11% to $1.037 billion. By region, reported sales increased 16% in the Americas, 1% in Europe and 14% in Asia/Rest of World. Earnings before taxes amounted to $286.0 million, compared with $269.2 million in the prior year.

Non-GAAP Results

Adjusted EPS was $10.53, an increase of 14% over the prior-year amount of $9.26.

Compared with the prior year, total sales in local currency increased 11%. By region, local currency sales increased 16% in the Americas, 4% in Europe and 14% in Asia/Rest of World. Adjusted Operating Profit amounted to $319.1 million, a 9% increase from the prior-year amount of $292.8 million.

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.

Full Year Results

GAAP Results

EPS was $32.78, compared with the prior-year amount of $24.91.

Compared with the prior year, total reported sales increased 21% to $3.718 billion. By region, reported sales increased 20% in the Americas, 15% in Europe and 26% in Asia/Rest of World. Earnings before taxes amounted to $949.4 million, compared with $748.7 million in the prior year.

Non-GAAP Results

Adjusted EPS was $34.01, an increase of 32% over the prior-year amount of $25.72.

Compared with the prior year, total sales in local currency increased 18% as currency benefited sales growth by 3%. By region, local currency sales increased 20% in the Americas, 12% in Europe and 21% in Asia/Rest of World. Adjusted Operating Profit amounted to $1.058 billion, a 26% increase from the prior-year amount of $840.7 million.

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. Management cautions that market conditions are dynamic and changes to the business environment can happen quickly. Uncertainty remains surrounding the impact of COVID-19 and the challenges in the global supply chain on the economic environment. The estimates include uncertainty and management acknowledges that market conditions are subject to change.

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2022 will be approximately 7%. This sales growth is expected to result in Adjusted EPS in the range of $38.15 to $38.50, which represents a growth rate of 12% to 13%.  This compares with previous local currency sales guidance of approximately 6% and Adjusted EPS guidance of $37.25 to $37.65.

Based on today's assessment of market conditions, management anticipates local currency sales growth for the first quarter of 2022 will be approximately 10%, and Adjusted EPS is forecasted to be $7.25 to $7.35, a growth rate of 11% to 12%.

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

Kaltenbach concluded, "We continued to strengthen our competitive position in 2021. Innovation nourished our excellent product portfolio and comprehensive services offering, and combined with our Spinnaker sales and marketing strategies, helped us to capture growth opportunities.  We successfully navigated challenges in the global supply chain to meet customer demands. Our culture of agility and execution further reinforced our brand while our strong results allowed us to make important investments for future growth. We also furthered our great track record on Environment, Social, and Governance initiatives by committing to establish science-based targets to drive greater reductions in our impact on the environment. While market conditions are currently good, challenges remain in the global supply chain and we remain cautious about COVID-19 and its ultimate impact on the global economy. We are confident in our strategic growth and margin initiatives and our ability to gain market share. We believe we are well positioned to deliver strong results in 2022 and beyond."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, February 10) 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. You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks and uncertainties, including statements about expected revenue growth and long-term impacts of the COVID-19 pandemic. 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." We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, customer demand, our competitive position, pricing, our supply chain, adequacy of our facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, planned research and development efforts and product introductions, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions and the impact of the COVID-19 pandemic on our businesses. Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including the uncertain duration and severity of the COVID-19 pandemic. See in particular "Factors Affecting Our Future Operating Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2020 and other reports filed with the SEC from time to time.

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)

                                       
   

 

 

 

Three months ended

         

 

 

 

Three months ended

         
   

December 31, 2021

 

% of sales

 

December 31, 2020

 

% of sales

 
                                       

Net sales

   

$1,037,239

 

(a)

 

100.0

       

$937,985

     

100.0

   

Cost of sales

   

430,106

     

41.5

       

378,941

     

40.4

   

Gross profit

   

607,133

     

58.5

       

559,044

     

59.6

   
                                       

Research and development

   

45,615

     

4.4

       

39,866

     

4.3

   

Selling, general and administrative 

   

242,445

     

23.4

       

226,369

     

24.1

   

Amortization

   

16,934

     

1.6

       

14,657

     

1.6

   

Interest expense

   

11,541

     

1.1

       

9,505

     

1.0

   

Restructuring charges

   

2,520

     

0.2

       

3,181

     

0.3

   

Other charges (income), net

   

2,102

 

(b)

 

0.2

       

(3,714)

     

(0.4)

   

Earnings before taxes

   

285,976

     

27.6

       

269,180

     

28.7

   
                                       

Provision for taxes

   

55,105

     

5.3

       

52,885

     

5.6

   

Net earnings

   

$230,871

     

22.3

       

$216,295

     

23.1

   
                                       

Basic earnings per common share:

                                   

Net earnings 

   

$10.08

               

$9.15

           

Weighted average number of common shares

   

22,912,071

               

23,642,415

           
                                       

Diluted earnings per common share:

                                   

Net earnings 

   

$9.94

               

$9.03

           

Weighted average number of common 

   

23,220,331

               

23,965,853

           

  and common equivalent shares

                                   
                                       

Note:

                                   

(a)

Local currency sales increased 11% as compared to the same period in 2020.

   
                                       

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT

                                       
   

 

 

 

Three months ended

         

 

 

 

Three months ended

         
   

December 31, 2021

 

% of sales

 

December 31, 2020

 

% of sales

 
                                       

Earnings before taxes

   

$285,976

               

$269,180

           

Amortization

   

16,934

               

14,657

           

Interest expense

   

11,541

               

9,505

           

Restructuring charges

   

2,520

               

3,181

           

Other charges (income), net

   

2,102

 

(b)

           

(3,714)

           

Adjusted operating profit

   

$319,073

 

(c)

 

30.8

       

$292,809

     

31.2

   
                                       

Notes:

                                   

(b)

Other charges (income), net for the three months ended December 31, 2021 includes a $6.8 million charge to increase the PendoTECH acquisition contingent consideration and related obligations, and $0.6 million of acquisition transaction costs.

   

(c)

Adjusted operating profit increased 9% as compared to the same period in 2020.

   

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)

                                       
   

 

 

Twelve months ended

         

 

 

Twelve months ended

         
   

December 31, 2021

 

% of sales

 

December 31, 2020

 

% of sales

 
                               

Net sales

   

$3,717,930

 

(a)

 

100.0

       

$3,085,177

     

100.0

   

Cost of sales

   

1,546,377

     

41.6

       

1,284,146

     

41.6

   

Gross profit

   

2,171,553

     

58.4

       

1,801,031

     

58.4

   
                                       

Research and development

   

169,766

     

4.6

       

140,102

     

4.5

   

Selling, general and administrative 

   

943,976

     

25.4

       

820,221

     

26.6

   

Amortization

   

63,075

     

1.7

       

56,665

     

1.8

   

Interest expense

   

43,242

     

1.2

       

38,616

     

1.3

   

Restructuring charges

   

5,239

     

0.1

       

10,516

     

0.3

   

Other charges (income), net

   

(3,106)

 

(b)

 

(0.1)

       

(13,832)

     

(0.4)

   

Earnings before taxes

   

949,361

     

25.5

       

748,743

     

24.3

   
                                       

Provision for taxes

   

180,376

     

4.8

       

146,004

     

4.8

   

Net earnings

   

$768,985

     

20.7

       

$602,739

     

19.5

   
                                       

Basic earnings per common share:

                                   

Net earnings 

   

$33.25

               

$25.24

           

Weighted average number of common shares

   

23,129,862

               

23,882,648

           
                                       

Diluted earnings per common share:

                                   

Net earnings 

   

$32.78

               

$24.91

           

Weighted average number of common 

   

23,457,630

               

24,199,230

           

  and common equivalent shares

                                   
                                       

Note:

                                   

(a)

Local currency sales increased 18% as compared to the same period in 2020.

   
                                       

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT

                                       
   

 

 

Twelve months ended

         

 

 

Twelve months ended

         
   

December 31, 2021

 

% of sales

 

December 31, 2020

 

% of sales

 
                                       

Earnings before taxes

   

$949,361

               

$748,743

           

Amortization

   

63,075

               

56,665

           

Interest expense

   

43,242

               

38,616

           

Restructuring charges

   

5,239

               

10,516

           

Other charges (income), net

   

(3,106)

 

(b)

           

(13,832)

           

Adjusted operating profit

   

$1,057,811

 

(c)

 

28.5

       

$840,708

     

27.2

   
                                       

Notes:

                                   

(b)

Other charges (income), net for the twelve months ended December 31, 2021 includes a $6.8 million charge to increase the PendoTECH acquisition contingent consideration and related obligations, and $3.4 million of acquisition transaction costs.

   

(c)

Adjusted operating profit increased 26% as compared to the same period in 2020.

   

 

 

METTLER-TOLEDO INTERNATIONAL INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(amounts in thousands)

 

(unaudited)

                     
                     
   

December 31, 2021

   

December 31, 2020

                     

Cash and cash equivalents

   

$98,564

       

$94,254

 

Accounts receivable, net

   

647,335

       

593,809

 

Inventories

   

414,543

       

297,611

 

Other current assets and prepaid expenses

   

108,916

       

71,230

 

Total current assets

   

1,269,358

       

1,056,904

 
                     

Property, plant and equipment, net

   

799,365

       

798,868

 

Goodwill and other intangibles assets, net

   

956,072

       

747,055

 

Other non-current assets

   

302,003

       

211,722

 

Total assets

   

$3,326,798

       

$2,814,549

 
                     

Short-term borrowings and maturities of long-term debt

   

$101,134

       

$50,317

 

Trade accounts payable

   

272,911

       

175,801

 

Accrued and other current liabilities

   

772,493

       

614,209

 

Total current liabilities

   

1,146,538

       

840,327

 
                     

Long-term debt

   

1,580,808

       

1,284,174

 

Other non-current liabilities

   

428,031

       

407,373

 

Total liabilities

   

3,155,377

       

2,531,874

 
                     

Shareholders' equity

   

171,421

       

282,675

 

Total liabilities and shareholders' equity

   

$3,326,798

       

$2,814,549

 

 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (amounts in thousands)

 (unaudited)

                 
   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

   

2021

 

2020

 

2021

 

2020

                 

Cash flow from operating activities:

               

    Net earnings

 

$230,871

 

$216,295

 

$768,985

 

$602,739

    Adjustments to reconcile net earnings to

               

      net cash provided by operating activities:

               

Depreciation

 

11,542

 

11,095

 

44,982

 

42,044

Amortization

 

16,934

 

14,657

 

63,075

 

56,665

Deferred tax expense (benefit)

 

6,635

 

(5,794)

 

563

 

(12,784)

Share-based compensation

 

5,702

 

5,439

 

19,595

 

18,687

Increase in acquisition contingent consideration

 

6,849

 

-

 

6,849

 

-

Other

 

381

 

(2,399)

 

381

 

(2,399)

Increase in cash resulting from changes in

               

   operating assets and liabilities

 

(37,808)

 

11,576

 

4,395

 

19,747

                Net cash provided by operating activities

 

241,106

 

250,869

 

908,825

 

724,699

                 

Cash flows from investing activities:

               

    Proceeds from sale of property, plant and equipment

 

253

 

60

 

3,652

 

3,106

    Purchase of property, plant and equipment

 

(37,784)

 

(35,066)

 

(107,580)

 

(92,494)

    Acquisitions

 

(27,475)

 

-

 

(220,862)

 

(6,242)

    Other investing activities

 

2,123

 

4,691

 

10,682

 

(4,730)

                Net cash used in investing activities

 

(62,883)

 

(30,315)

 

(314,108)

 

(100,360)

                 

Cash flows from financing activities:

               

    Proceeds from borrowings

 

789,198

 

340,680

 

2,427,519

 

1,489,040

    Repayments of borrowings

 

(786,369)

 

(252,678)

 

(2,035,546)

 

(1,483,869)

    Proceeds from exercise of stock options

 

5,549

 

525

 

20,463

 

26,719

    Repurchases of common stock 

 

(272,500)

 

(374,999)

 

(999,998)

 

(774,998)

    Other financing activities

 

(123)

 

-

 

(2,987)

 

(800)

                Net cash used in financing activities

 

(264,245)

 

(286,472)

 

(590,549)

 

(743,908)

                 

Effect of exchange rate changes on cash and cash equivalents

 

914

 

6,486

 

142

 

6,038

                 

Net increase (decrease) in cash and cash equivalents

 

(85,108)

 

(59,432)

 

4,310

 

(113,531)

                 

Cash and cash equivalents:

               

    Beginning of period

 

183,672

 

153,686

 

94,254

 

207,785

    End of period

 

$98,564

 

$94,254

 

$98,564

 

$94,254

                 
                 

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

                 

Net cash provided by operating activities

 

$241,106

 

$250,869

 

$908,825

 

$724,699

    Payments in respect of restructuring activities

 

2,607

 

2,280

 

10,029

 

8,541

    Payments for acquisition costs

 

462

 

-

 

2,706

 

-

    Transition tax payment

 

-

 

-

 

4,288

 

4,264

    Proceeds from sale of property, plant and equipment

 

253

 

60

 

3,652

 

3,106

    Purchase of property, plant and equipment

 

(37,784)

 

(35,066)

 

(107,580)

 

(92,494)

Adjusted free cash flow

 

$206,644

 

$218,143

 

$821,920

 

$648,116

 

 

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 December 31, 2021

   

1%

 

16%

 

14%

 

11%

   
 

Twelve Months Ended December 31, 2021

   

15%

 

20%

 

26%

 

21%

   
                         

Local Currency Sales Growth

                     
 

Three Months Ended December 31, 2021

   

4%

 

16%

 

14%

 

11%

   
 

Twelve Months Ended December 31, 2021

   

12%

 

20%

 

21%

 

18%

   
                         
                         

RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS 

 

(unaudited)

 
                         
   

Three months ended

Twelve months ended

   

December 31,

December 31,

   

2021

 

2020

 

% Growth

 

2021

 

2020

 

% Growth

                         

EPS as reported, diluted

$9.94

 

$9.03

 

10%

 

$32.78

 

$24.91

 

32%

                         

Purchased intangible amortization, net of tax

0.21

(a)

0.12

(a)

   

0.70

(a)

0.46

(a)

 

Restructuring charges, net of tax

0.09

(b)

0.11

(b)

   

0.18

(b)

0.35

(b)

 

Income tax expense

0.03

(c)

-

(c)

   

-

 

-

   

Acquisition costs, net of tax

0.26

(d)

-

     

0.35

(d)

-

   
                         

Adjusted EPS, diluted

$10.53

 

$9.26

 

14%

 

$34.01

 

$25.72

 

32%

                         

Notes:

                     

(a)

Represents the EPS impact of purchased intangibles amortization of $6.3 million ($4.8 million net of tax) and $3.7 million ($2.8 million net of tax) for the three months ended December 31, 2021 and 2020, and of $21.6 million ($16.3 million net of tax) and $14.9 million ($11.2 million net of tax) for the twelve months ended December 31, 2021 and 2020, respectively.

(b)

Represents the EPS impact of restructuring charges of $2.5 million ($2.0 million after tax) and $3.2 million ($2.6 million after tax) for the three months ended December 31, 2021 and 2020, and $5.2 million ($4.2 million after tax) and $10.5 million ($8.5 million after tax) for the twelve months ended December 31, 2021 and 2020, respectively, which primarily include employee related costs.

(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. Also includes a $0.14 EPS benefit for the three months ended December 31, 2021 for the reduction in our annualized effective tax rate to 19.0% for the first three quarters of 2021 and a $0.20 EPS benefit for the three months ended December 31, 2020 for the reduction in our annualized effective tax rate to 19.5% for the first three quarters of 2020.

(d)

Represents a $6.8 million charge ($5.5 million after tax) to increase the PendoTECH acquisition contingent consideration and related obligations for the three and twelve months ended December 31, 2021. Also includes the EPS impact of acquisition transaction costs of $0.6 million ($0.4 million after tax) and $3.4 million ($2.7 million after tax) for the three and twelve months ended December 31, 2021, respectively. 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-fourth-quarter-2021-results-301480252.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