- Reported sales increased 18% compared with the prior year. In local currency, sales increased 16% in the quarter as currency benefited reported sales growth by 2%.
- Net earnings per diluted share as reported (EPS) were
$8.71 , compared with$6.68 in the prior-year period. Adjusted EPS was$8.72 , an increase of 24% over the prior-year amount of$7.02 . Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.
Third Quarter Results
GAAP Results
EPS in the quarter was
Compared with the prior year, total reported sales increased 18% to
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased 16% as currency benefited sales growth by 2%. By region, local currency sales increased 20% 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.
Nine Month Results
GAAP Results
EPS was
Compared with the prior year, total reported sales increased 25% to
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased 20% as currency benefited sales growth by 5%. By region, local currency sales increased 21% 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. 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.
Based on today's assessment of market conditions, management anticipates local currency sales growth for the fourth quarter of 2021 will be approximately 8%, and Adjusted EPS is forecasted to be
For the full year 2021, local currency sales growth is expected to be approximately 17%, and Adjusted EPS is forecasted to be in the range of
The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2022 will be approximately 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
Kaltenbach concluded, "Our end markets remain favorable and our strategic initiatives are very effective at capturing growth. We continue to invest in the strength and breadth of our product portfolio, further extending our technology lead; leverage our excellent sales and marketing approaches; and reinforce customer trust through our global service offering, which supports customers' productivity. We have successfully navigated the challenges of the global supply chain to date but are cautious as dynamics remain challenging and conditions can change rapidly. Although pockets of uncertainty exist in the global economy, we believe we are ideally positioned to continue to gain market share. With our proven strategies, good demand in our end markets and continued focused execution of our growth and margin initiatives, we believe we are in an excellent position to deliver strong results in 2021 and 2022."
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 |
396,130 |
41.6 |
337,749 |
41.8 |
||||
Gross profit |
555,820 |
58.4 |
469,608 |
58.2 |
||||
Research and development |
42,276 |
4.4 |
34,656 |
4.3 |
||||
Selling, general and administrative |
240,734 |
25.3 |
204,974 |
25.4 |
||||
Amortization |
16,039 |
1.7 |
14,121 |
1.7 |
||||
Interest expense |
11,791 |
1.2 |
9,310 |
1.2 |
||||
Restructuring charges |
650 |
0.1 |
4,570 |
0.6 |
||||
Other charges (income), net |
(3,257) |
(0.3) |
(3,832) |
(0.5) |
||||
Earnings before taxes |
247,587 |
26.0 |
205,809 |
25.5 |
||||
Provision for taxes |
43,899 |
4.6 |
44,042 |
5.5 |
||||
Net earnings |
|
21.4 |
|
20.0 |
||||
Basic earnings per common share: |
||||||||
Net earnings |
|
|
||||||
Weighted average number of common shares |
23,056,924 |
23,922,272 |
||||||
Diluted earnings per common share: |
||||||||
Net earnings |
|
|
||||||
Weighted average number of common |
23,393,579 |
24,225,204 |
||||||
and common equivalent shares |
||||||||
Note: |
||||||||
(a) Local currency sales increased 16% as compared to the same period in 2020. |
||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT |
||||||||
Three months ended |
Three months ended |
|||||||
|
% of sales |
|
% of sales |
|||||
Earnings before taxes |
|
|
||||||
Amortization |
16,039 |
14,121 |
||||||
Interest expense |
11,791 |
9,310 |
||||||
Restructuring charges |
650 |
4,570 |
||||||
Other charges (income), net |
(3,257) |
(3,832) |
||||||
Adjusted operating profit |
|
(b) |
28.7 |
|
28.5 |
|||
Note: |
||||||||
(b) Adjusted operating profit increased 19% as compared to the same period in 2020. |
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 |
|
100.0 |
|||
Cost of sales |
1,116,271 |
41.6 |
905,205 |
42.2 |
||||
Gross profit |
1,564,420 |
58.4 |
1,241,987 |
57.8 |
||||
Research and development |
124,151 |
4.6 |
100,236 |
4.7 |
||||
Selling, general and administrative |
701,531 |
26.2 |
593,852 |
27.7 |
||||
Amortization |
46,141 |
1.7 |
42,008 |
2.0 |
||||
Interest expense |
31,701 |
1.2 |
29,111 |
1.3 |
||||
Restructuring charges |
2,719 |
0.1 |
7,335 |
0.3 |
||||
Other charges (income), net |
(5,208) |
(0.2) |
(10,118) |
(0.5) |
||||
Earnings before taxes |
663,385 |
24.8 |
479,563 |
22.3 |
||||
Provision for taxes |
125,271 |
4.7 |
93,119 |
4.3 |
||||
Net earnings |
|
20.1 |
|
18.0 |
||||
Basic earnings per common share: |
||||||||
Net earnings |
|
|
||||||
Weighted average number of common shares |
23,203,257 |
23,963,311 |
||||||
Diluted earnings per common share: |
||||||||
Net earnings |
|
|
||||||
Weighted average number of common |
23,536,615 |
24,272,354 |
||||||
and common equivalent shares |
||||||||
Note: |
||||||||
(a) Local currency sales increased 20% as compared to the same period in 2020. |
||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT |
||||||||
Nine months ended |
Nine months ended |
|||||||
|
% of sales |
|
% of sales |
|||||
Earnings before taxes |
|
|
||||||
Amortization |
46,141 |
42,008 |
||||||
Interest expense |
31,701 |
29,111 |
||||||
Restructuring charges |
2,719 |
7,335 |
||||||
Other charges (income), net |
(5,208) |
(10,118) |
||||||
Adjusted operating profit |
|
(b) |
27.6 |
|
25.5 |
|||
Note: |
||||||||
(b) Adjusted operating profit increased 35% as compared to the same period in 2020. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(amounts in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
|||||||||
Cash and cash equivalents |
|
|
||||||||
Accounts receivable, net |
603,364 |
593,809 |
||||||||
Inventories |
381,457 |
297,611 |
||||||||
Other current assets and prepaid expenses |
77,731 |
71,230 |
||||||||
Total current assets |
1,246,224 |
1,056,904 |
||||||||
Property, plant and equipment, net |
783,813 |
798,868 |
||||||||
|
927,777 |
747,055 |
||||||||
Other non-current assets |
249,347 |
211,722 |
||||||||
Total assets |
|
|
||||||||
Short-term borrowings and maturities of long-term debt |
|
|
||||||||
Trade accounts payable |
219,294 |
175,801 |
||||||||
Accrued and other current liabilities |
728,743 |
614,209 |
||||||||
Total current liabilities |
1,001,561 |
840,327 |
||||||||
Long-term debt |
1,639,583 |
1,284,174 |
||||||||
Other non-current liabilities |
406,846 |
407,373 |
||||||||
Total liabilities |
3,047,990 |
2,531,874 |
||||||||
Shareholders' equity |
159,171 |
282,675 |
||||||||
Total liabilities and shareholders' equity |
|
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(amounts in thousands) |
||||||||
(unaudited) |
||||||||
Three months ended |
Nine months ended |
|||||||
|
|
|||||||
2021 |
2020 |
2021 |
2020 |
|||||
Cash flow from operating activities: |
||||||||
Net earnings |
|
|
|
|
||||
Adjustments to reconcile net earnings to |
||||||||
net cash provided by operating activities: |
||||||||
Depreciation |
11,179 |
10,622 |
33,440 |
30,949 |
||||
Amortization |
16,039 |
14,121 |
46,141 |
42,008 |
||||
Deferred tax expense (benefit) |
1,351 |
(2,420) |
(6,072) |
(6,990) |
||||
Other |
4,737 |
4,430 |
13,893 |
13,248 |
||||
Increase in cash resulting from changes in |
||||||||
operating assets and liabilities |
26,313 |
36,559 |
42,203 |
8,171 |
||||
Net cash provided by operating activities |
263,307 |
225,079 |
667,719 |
473,830 |
||||
Cash flows from investing activities: |
||||||||
Proceeds from sale of property, plant and equipment |
151 |
1,021 |
3,399 |
3,046 |
||||
Purchase of property, plant and equipment |
(22,433) |
(20,339) |
(69,796) |
(57,428) |
||||
Acquisitions |
(7,853) |
- |
(193,387) |
(6,242) |
||||
Net hedging settlements on intercompany loans |
4,955 |
(140) |
8,559 |
(9,421) |
||||
Net cash used in investing activities |
(25,180) |
(19,458) |
(251,225) |
(70,045) |
||||
Cash flows from financing activities: |
||||||||
Proceeds from borrowings |
433,325 |
72,262 |
1,638,321 |
1,148,360 |
||||
Repayments of borrowings |
(383,024) |
(63,066) |
(1,249,177) |
(1,231,191) |
||||
Proceeds from exercise of stock options |
7,081 |
8,444 |
14,914 |
26,194 |
||||
Repurchases of common stock |
(252,499) |
(199,999) |
(727,498) |
(399,999) |
||||
Other financing activities |
(576) |
- |
(2,864) |
(800) |
||||
Net cash used in financing activities |
(195,693) |
(182,359) |
(326,304) |
(457,436) |
||||
Effect of exchange rate changes on cash and cash equivalents |
(1,014) |
3,147 |
(772) |
(448) |
||||
Net increase (decrease) in cash and cash equivalents |
41,420 |
26,409 |
89,418 |
(54,099) |
||||
Cash and cash equivalents: |
||||||||
Beginning of period |
142,252 |
127,277 |
94,254 |
207,785 |
||||
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 |
1,874 |
1,634 |
7,422 |
6,261 |
||||
Payments for acquisition costs |
153 |
- |
2,244 |
- |
||||
Transition tax payment |
- |
4,264 |
4,288 |
4,264 |
||||
Proceeds from sale of property, plant and equipment |
151 |
1,021 |
3,399 |
3,046 |
||||
Purchase of property, plant and equipment |
(22,433) |
(20,339) |
(69,796) |
(57,428) |
||||
Adjusted free cash flow |
|
|
|
|
|
||||||||||||
OTHER OPERATING STATISTICS |
||||||||||||
SALES GROWTH BY DESTINATION |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
Total |
|||||||||
|
||||||||||||
Three Months Ended |
12% |
20% |
21% |
18% |
||||||||
Nine Months Ended |
22% |
22% |
31% |
25% |
||||||||
Local Currency Sales Growth |
||||||||||||
Three Months Ended |
10% |
20% |
16% |
16% |
||||||||
Nine Months Ended |
15% |
21% |
23% |
20% |
||||||||
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS |
||||||||||||
(unaudited) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
|
|
|||||||||||
2021 |
2020 |
% Growth |
2021 |
2020 |
% Growth |
|||||||
EPS as reported, diluted |
|
|
30% |
|
|
44% |
||||||
Purchased intangible amortization, net of tax |
0.18 |
(a) |
0.12 |
(a) |
0.49 |
(a) |
0.35 |
(a) |
||||
Restructuring charges, net of tax |
0.02 |
(b) |
0.15 |
(b) |
0.09 |
(b) |
0.24 |
(b) |
||||
Income tax expense |
(0.19) |
(c) |
0.07 |
(c) |
(0.17) |
(c) |
(0.21) |
(c) |
||||
Acquisition costs, net of tax |
- |
- |
0.10 |
(d) |
- |
|||||||
Adjusted EPS, diluted |
|
|
24% |
|
|
43% |
||||||
Notes: |
||||||||||||
(a) |
Represents the EPS impact of purchased intangibles amortization of |
|||||||||||
(b) |
Represents the EPS impact of restructuring charges 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 |
|||||||||||
(d) |
Represents the EPS impact of acquisition costs of |
View original content:https://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-third-quarter-2021-results-301417086.html
SOURCE
Mary T. Finnegan, Treasurer, Investor Relations, Mettler-Toledo International Inc., +1-614-438-4748, Fax: +1-614-438-4646