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Mettler-Toledo International Inc.$574.64$.80.14%

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 Mettler-Toledo International Inc. Reports Fourth Quarter 2015 Results
   Thursday, February 04, 2016 4:08:00 PM ET

Mettler-Toledo International Inc. (MTD ) today announced fourth quarter results for 2015. Provided below are the highlights:

-- Sales in local currency increased 3% in the quarter compared with the prior year. Reported sales decreased 3% as currency reduced sales growth by 6% in the quarter.

-- Net earnings per diluted share as reported (EPS) were $4.44, compared with $4.17 in the prior- year period. Adjusted EPS was $4.65, an increase of 10% over the prior-year amount of $4.24. 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.

Fourth Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "Market conditions throughout the world developed as expected and we continued to execute very well. Sales growth in the Americas was strong with broad-based growth in most product lines. Europe had good growth in laboratory instruments. Sales declined in China and Brazil, while sales growth in our other emerging markets was solid overall. We had strong margin expansion in the quarter and, despite currency headwinds, achieved solid EPS growth. Finally, we had good cash flow generation in the quarter and for the full year."

EPS in the quarter was $4.44, compared with the prior-year amount of $4.17. Adjusted EPS was $4.65, an increase of 10% over the prior-year amount of $4.24.

Sales were $673.5 million, a 3% increase in local currency sales, compared with $697.4 million in the prior-year quarter. Reported sales decreased 3% as currency reduced sales growth by 6% in the quarter. By region, local currency sales increased 9% in the Americas, were flat in Europe and declined 2% in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $182.2 million, a 3% increase from the prior-year amount of $176.3 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 $137.0 million, compared with $140.7 million in the prior-year quarter.

Full Year Results

EPS in 2015 was $12.48, compared with the prior-year amount of $11.44. Adjusted EPS was $12.92, an increase of 10% over the prior-year amount of $11.72.

Sales were $2.395 billion, a 3% increase in local currency sales, compared with $2.486 billion in the prior-year period. Reported sales decreased 4% as currency reduced sales growth by 7% in the period. By region, local currency sales increased 8% in the Americas, 2% in Europe and were flat in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $532.1 million, a 5% increase from the prior-year amount of $506.9 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 $426.9 million, compared with $418.9 million in the prior year.

Outlook

The Company updated its outlook for 2016 and noted that forecasting remains challenging. In particular, weak demand in certain emerging markets remains.

Based on today’s assessment, management anticipates that local currency sales growth in 2016 will be in the range of 3% to 4% and Adjusted EPS is forecasted to be in the range of $14.10 to $14.30, an increase of 9% to 11%.

For the first quarter 2016, management anticipates that local currency sales growth will be approximately 4% and Adjusted EPS is forecasted to be in the range of $2.40 to $2.45, an increase of 7% to 9%.

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, "Despite considerable market weakness in China, Brazil and Russia and significant currency headwinds, we achieved good financial results in the quarter and for full year 2015. Strong execution of our margin enhancement and productivity improvement programs were key contributors to our performance. We continue to gain share through expanded field resources, exciting new products and proven sales and marketing initiatives. Equally important, we are making investments for long-term growth. While we remain cautious on the global economy, we believe we can continue to generate above market growth in 2016 and beyond."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, February 4) 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
                                           December 31, 2015        % of sales  December 31, 2014   % of sales
Net sales                                  $673,535           (a)   100.0       $697,428            100.0
Cost of sales                              282,788                  42.0        303,046             43.5
Gross profit                               390,747                  58.0        394,382             56.5
Research and development                   31,110                   4.6         31,323              4.5
Selling, general and administrative        177,418                  26.3        186,789             26.8
Amortization                               8,022                    1.2         7,610               1.1
Interest expense                           6,755                    1.0         6,924               1.0
Restructuring charges                      5,960                    0.9         1,468               0.2
Other charges (income), net                (9)                      0.0         882                 0.0
Earnings before taxes                      161,491                  24.0        159,386             22.9
Provision for taxes                        38,140                   5.7         38,214              5.5
Net earnings                               $123,351                 18.3        $121,172            17.4
Basic earnings per common share:
Net earnings                               $4.53                                $4.27
Weighted average number of common shares   27,228,026                           28,398,579
Diluted earnings per common share:
Net earnings                               $4.44                                $4.17
Weighted average number of common          27,755,045                           29,045,269
and common equivalent shares
Note:
(a)  Local currency sales increased 3% as compared to the same period in 2014.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                           Three months ended                   Three months ended
                                           December 31, 2015        % of sales  December 31, 2014   % of sales
Earnings before taxes                      $161,491                             $159,386
Amortization                               8,022                                7,610
Interest expense                           6,755                                6,924
Restructuring charges                      5,960                                1,468
Other charges (income), net                (9)                                  882
Adjusted operating income                  $182,219           (b)   27.1        $176,270            25.3
Note:
(b)  Adjusted operating income increased 3% as compared to the same period in 2014.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
                                           Twelve months ended                     Twelve months ended
                                           December 31, 2015           % of sales  December 31, 2014    % of sales
Net sales                                  $2,395,447          (a)     100.0       $2,485,983           100.0
Cost of sales                              1,043,454                   43.6        1,127,233            45.3
Gross profit                               1,351,993                   56.4        1,358,750            54.7
Research and development                   119,076                     5.0         123,297              5.0
Selling, general and administrative        700,810                     29.3        728,582              29.3
Amortization                               30,951                      1.3         29,185               1.2
Interest expense                           27,451                      1.1         24,537               1.0
Restructuring charges                      11,148                      0.5         5,915                0.2
Other charges (income), net                (867)                       (0.1)       2,230                0.1
Earnings before taxes                      463,424                     19.3        445,004              17.9
Provision for taxes                        110,604                     4.6         106,763              4.3
Net earnings                               $352,820                    14.7        $338,241             13.6
Basic earnings per common share:
Net earnings                               $12.75                                  $11.71
Weighted average number of common shares   27,680,918                              28,890,771
Diluted earnings per common share:
Net earnings                               $12.48                                  $11.44
Weighted average number of common          28,269,615                              29,571,308
and common equivalent shares
Note:
(a)  Local currency sales increased 3% as compared to the same period in 2014.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                           Twelve months ended                     Twelve months ended
                                           December 31, 2015           % of sales  December 31, 2014    % of sales
Earnings before taxes                      $463,424                                $445,004
Amortization                               30,951                                  29,185
Interest expense                           27,451                                  24,537
Restructuring charges                      11,148                                  5,915
Other charges (income), net                (867)                                   2,230
Adjusted operating income                  $532,107            (b)     22.2        $506,871             20.4
Note:
(b)  Adjusted operating income increased 5% as compared to the same period in 2014.
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
                                                        December 31, 2015  December 31, 2014
Cash and cash equivalents                               $98,887            $85,263
Accounts receivable, net                                411,420            435,648
Inventories                                             214,383            204,531
Other current assets and prepaid expenses               138,125            123,988
Total current assets                                    862,815            849,430
Property, plant and equipment, net                      517,229            511,462
Goodwill and other intangible assets, net               561,536            556,869
Other non-current assets                                76,905             91,349
Total assets                                            $2,018,485         $2,009,110
Short-term borrowings and maturities of long-term debt  $14,488            $116,164
Trade accounts payable                                  142,075            145,896
Accrued and other current liabilities                   438,564            416,830
Total current liabilities                               595,127            678,890
Long-term debt                                          576,984            335,790
Other non-current liabilities                           265,917            274,835
Total liabilities                                       1,438,028          1,289,515
Shareholders’ equity                                    580,457            719,595
Total liabilities and shareholders’ equity              $2,018,485         $2,009,110
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
                                                                            Three months ended                Twelve months ended
                                                                            December 31,                      December 31,
                                                                            2015             2014             2015             2014
Cash flow from operating activities:
Net earnings                                                                $      123,351   $      121,172   $      352,820   $      338,241
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation                                                                8,109            8,148            33,087           33,617
Amortization                                                                8,022            7,610            30,951           29,185
Deferred tax benefit                                                        10,503           19,135           7,258            13,033
Excess tax benefits from share-based payment arrangements                   (11,511)         6,902            (12,929)         (3,557)
Other                                                                       3,865            3,939            14,378           13,822
Increase (decrease) in cash resulting from changes in
operating assets and liabilities                                            (5,297)          (26,232)         1,303            (5,429)
Net cash provided by operating activities                                   137,042          140,674          426,868          418,912
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment                         668              295              949              728
Purchase of property, plant and equipment                                   (25,750)         (27,980)         (82,506)         (89,388)
Acquisitions                                                                (2,810)          (2,399)          (13,779)         (5,784)
Net hedging settlements on intercompany loans                               148              (59)             (5,415)          123
Net cash used in investing activities                                       (27,744)         (30,143)         (100,751)        (94,321)
Cash flows from financing activities:
Proceeds from borrowings                                                    191,862          115,855          741,864          628,832
Repayments of borrowings                                                    (219,586)        (147,338)        (594,477)        (585,867)
Proceeds from exercise of stock options                                     7,722            7,002            29,556           21,047
Excess tax benefits from share-based payment arrangements                   11,511           (6,902)          12,929           3,557
Repurchases of common stock                                                 (123,743)        (117,524)        (494,966)        (414,000)
Debt issuance costs                                                         (934)            -                (1,366)          (941)
Acquisition contingent consideration paid                                   -                (859)            (572)            (859)
Net cash used in financing activities                                       (133,168)        (149,766)        (307,032)        (348,231)
Effect of exchange rate changes on cash and cash equivalents                (542)            (1,813)          (5,461)          (2,971)
Net increase (decrease) in cash and cash equivalents                        (24,412)         (41,048)         13,624           (26,611)
Cash and cash equivalents:
Beginning of period                                                         123,299          126,311          $85,263          111,874
End of period                                                               $        98,887  $        85,263  $        98,887  $        85,263
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities                                   $      137,042   $      140,674   $      426,868   $      418,912
Excess tax benefits from share-based payment arrangements                   11,511           (6,902)          12,929           3,557
Payments in respect of restructuring activities                             2,966            1,682            6,568            9,657
Proceeds from sale of property, plant and equipment                         668              295              949              728
Purchase of property, plant and equipment                                   (25,750)         (27,980)         (82,506)         (89,388)
Free cash flow                                                              $      126,437   $      107,769   $      364,808   $      343,466
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 December 31, 2015                                    (10%)                             7%                             (8%)                              (3%)
                       Twelve Months Ended December 31, 2015                                   (12%)                             6%                             (5%)                              (4%)
Local Currency Sales Growth (Decrease)
                       Three Months Ended December 31, 2015                                    0%                                9%                             (2%)                              3%
                       Twelve Months Ended December 31, 2015                                   2%                                8%                             0%                                3%
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
                                                             Three months ended                                                                                 Twelve months ended
                                                             December 31                                                                                        December 31
                                                             2015                              2014                              % Growth                       2015                              2014                              % Growth
EPS as reported, diluted                                     $4.44                             $4.17                             6%                             $12.48                            $11.44                            9%
Restructuring charges, net of tax                            0.17                          (a) 0.04                          (a)                                0.30                          (a) 0.15                          (a)
Purchased intangible amortization, net of tax                0.04                          (b) 0.03                          (b)                                0.14                          (b) 0.13                          (b)
Adjusted EPS, diluted                                        $4.65                             $4.24                             10%                            $12.92                            $11.72                            10%
Notes:
(a)                    Represents the EPS impact of restructuring charges of $6.0 million ($4.6 million after tax) and $1.5 million ($1.1 million after tax) for the three months ended December 31, 2015 and 2014, respectively and $11.1 million ($8.5 million after tax) and $5.9 million ($4.5 million after tax) for the twelve months ended December 31, 2015 and 2014, respectively.
(b)                    Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.1 million and $1.0 million for the three months ended December 31, 2015 and 2014, respectively and $3.9 million for both the twelve months ended December 31, 2015 and 2014, respectively.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-fourth-quarter-2015-results-300215621.html

SOURCE Mettler-Toledo International Inc.

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