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Mettler-Toledo International Inc.$574.84$1.00.17%

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 Mettler-Toledo International Inc. Reports First Quarter 2017 Results
   Thursday, May 04, 2017 4:11:00 PM ET

Mettler-Toledo International Inc. (MTD ) today announced first quarter results for 2017. Provided below are the highlights:

-- Sales in local currency increased 12% in the quarter compared with the prior year. Reported sales increased 10% as currency reduced sales growth by 2% in the quarter.

-- Net earnings per diluted share as reported (EPS) were $3.48, compared with $2.40 in the prior-year period. Adjusted EPS was $3.34, an increase of 36% over the prior-year amount of $2.46. Adjusted EPS is a non-GAAP measure and we have included a reconciliation to EPS on the last page of the attached schedules.

First Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "Sales growth in the quarter was excellent with broad-based strength across all regions. Our productivity and margin initiatives continue to yield tangible results driving strong margin expansion and very good growth in EPS. Finally, cash flow generation in the quarter was quite strong."

EPS in the quarter was $3.48, compared with the prior-year amount of $2.40. Adjusted EPS was $3.34, an increase of 36% over the prior-year amount of $2.46.

Sales were $594.6 million, a 12% increase in local currency sales, compared with $539.7 million in the prior-year quarter. Reported sales increased 10% as currency reduced sales growth by 2% in the quarter. As compared to the prior year, local currency sales increased 14% in the Americas, 13% in Europe and 9% in Asia / Rest of World. Adjusted operating income amounted to $127.3 million, a 25% increase from the prior-year amount of $102.0 million. Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules.

Outlook

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2017 will be approximately 7%. This sales growth is expected to result in Adjusted EPS in the range of $16.95 to $17.15, an increase of 15% to 16%. This compares to previous guidance of Adjusted EPS in the range of $16.55 to $16.75.

For the second quarter 2017, local currency sales growth is expected to be in the range of 8% to 9% and Adjusted EPS in the range of $3.85 to $3.90, an increase of 20% to 21%.

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. The Company noted in making its outlook that economic uncertainty remains in certain regions of the world and market conditions are subject to change.

Conclusion

Filliol concluded, "We have a strong start to the year as we capitalize on favorable market conditions and continue to execute well. Our growth initiatives have good momentum and include our Field Turbo investments, Spinnaker sales and marketing initiatives and new product launches. We also continue to make good progress with our margin and productivity initiatives. While current market conditions are positive, we will face more challenging comparisons as the year progresses. With the promising start to the year, we are optimistic that we will deliver a strong performance in 2017."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, May 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 (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. 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, 2017                                    % of sales                       March 31, 2016                      % of sales
Net sales                                                 $594,567            (a)                           100.0                            $539,674                            100.0
Cost of sales                                             251,667                                           42.3                             239,767                             44.4
Gross profit                                              342,900                                           57.7                             299,907                             55.6
Research and development                                  31,392                                            5.3                              28,973                              5.4
Selling, general and administrative                       184,172                                           31.0                             168,921                             31.3
Amortization                                              10,045                                            1.7                              8,424                               1.6
Interest expense                                          7,741                                             1.3                              6,580                               1.2
Restructuring charges                                     1,432                                             0.2                              880                                 0.2
Other charges (income), net                               (5,730)             (b)                           (0.9)                            (284)                               (0.1)
Earnings before taxes                                     113,848                                           19.1                             86,413                              16.0
Provision for taxes                                       21,382                                            3.5                              20,739                              3.8
Net earnings                                              $92,466                                           15.6                             $65,674                             12.2
Basic earnings per common share:
Net earnings                                              $3.57                                                                              $2.44
Weighted average number of common shares                  25,932,112                                                                         26,931,293
Diluted earnings per common share:
Net earnings                                              $3.48                                                                              $2.40
Weighted average number of common                         26,586,061                                                                         27,421,019
and common equivalent shares
Note:
(a)                  Local currency sales increased 12% as compared to the same period in 2016.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                                          Three months ended                                                                 Three months ended
                                           March 31, 2017                                    % of sales                       March 31, 2016                      % of sales
Earnings before taxes                                     $113,848                                                                           $86,413
Amortization                                              10,045                                                                             8,424
Interest expense                                          7,741                                                                              6,580
Restructuring charges                                     1,432                                                                              880
Other charges (income), net                               (5,730)             (b)                                                            (284)
Adjusted operating income                                 $127,336            (c)                           21.4                             $102,013                            18.9
Note:
(b)                  Other charges (income), net includes a one-time gain of $3.4 million for the three months ended March 31, 2017 relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.
(c)                  Adjusted operating income increased 25% as compared to the same period in 2016.
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
                                                        March 31, 2017     December 31, 2016
Cash and cash equivalents                                    $164,893            $158,674
Accounts receivable, net                                     439,413             454,988
Inventories                                                  242,375             222,047
Other current assets and prepaid expenses                    66,184              61,075
Total current assets                                         912,865             896,784
Property, plant and equipment, net                           572,058             563,707
Goodwill and other intangibles assets, net                   644,128             643,433
Other non-current assets                                     74,713              62,853
Total assets                                                 $2,203,764          $2,166,777
Short-term borrowings and maturities of long-term debt       $19,476             $18,974
Trade accounts payable                                       137,827             146,593
Accrued and other current liabilities                        403,859             421,948
Total current liabilities                                    561,162             587,515
Long-term debt                                               944,211             875,056
Other non-current liabilities                                258,539             269,263
Total liabilities                                            1,763,912           1,731,834
Shareholders’ equity                                         439,852             434,943
Total liabilities and shareholders’ equity                   $2,203,764          $2,166,777
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
                                                                      Three months ended
                                                                      March 31,
                                                                      2017                                  2016
Cash flow from operating activities:
Net earnings                                                          $92,466                               $65,674
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation                                                          7,966                                 8,122
Amortization                                                          10,045                                8,424
Deferred tax benefit                                                  (1,470)                               (3,304)
Gain on facility sale                                                 (3,394)                               -
Other                                                                 3,812                                 3,579
Decrease in cash resulting from changes in
operating assets and liabilities                                      (41,826)                              (40,990)
Net cash provided by operating activities                             67,599                                41,505
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment(a)                10,003                                135
Purchase of property, plant and equipment                             (21,015)                              (14,348)
Acquisitions                                                          -                                     (4,329)
Net hedging settlements on intercompany loans                         312                                   2,128
Net cash used in investing activities                                 (10,700)                              (16,414)
Cash flows from financing activities:
Proceeds from borrowings                                              472,732                               229,413
Repayments of borrowings                                              (409,881)                             (124,467)
Proceeds from exercise of stock options                               8,201                                 5,909
Repurchases of common stock                                           (124,997)                             (125,000)
Other financing activities                                            -                                     (125)
Net cash used in financing activities                                 (53,945)                              (14,270)
Effect of exchange rate changes on cash and cash equivalents          3,265                                 887
Net increase in cash and cash equivalents                             6,219                                 11,708
Cash and cash equivalents:
Beginning of period                                                   $158,674                              98,887
End of period                                                         $164,893                              $110,595
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities                             $67,599                               $35,700
Payments in respect of restructuring activities                       2,578                                 1,841
Proceeds from sale of property, plant and equipment                   10,003                                135
Purchase of property, plant and equipment                             (21,015)                              (14,348)
Free cash flow                                                        $59,165                               $23,328
(a)                            Proceeds from sale of property, plant and equipment includes $9.9 million relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.
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 March 31, 2017   9%                    14%                      7%                                            10%
Local Currency Sales Growth
                       Three Months Ended March 31, 2017   13%                   14%                      9%                                            12%
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
                                                                                 Three months ended
                                                                                 March 31,
                                                                                 2017                                          2016                     %
                                                                                                                                                        Growth
EPS as reported, diluted                                                         $3.48                                         $2.40                    45%
Restructuring charges, net of tax                                                0.04                 (a)                      0.02                 (a)
Purchased intangible amortization, net of tax                                    0.06                 (b)                      0.04                 (b)
Income tax expense                                                               (0.14)               (c)                      -
Gain on facility sale                                                            (0.10)               (d)                      -
Adjusted EPS, diluted                                                            $3.34                                         $2.46                    36%
Notes:
(a)                    Represents the EPS impact of restructuring charges of $1.4 million ($1.1 million after tax) and $0.9 million ($0.7 million after tax) for both the three months ended March 31, 2017 and 2016, respectively, which primarily include employee related costs.
(b)                    Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.5 million and $1.1 million for the three month periods ended March 31, 2017 and 2016, respectively.
(c)                    Represents the EPS impact of the difference between our reported tax rate of 19% during the three months ending March 31, 2017 and our estimated annual income tax rate of 22% pertaining to excess tax benefits associated with stock option exercises.
(d)                    Represents the EPS impact of a one-time gain of $3.4 million ($2.7 million after tax) for the three months ended March 31, 2017 relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-first-quarter-2017-results-300451942.html

SOURCE Mettler-Toledo International Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=CL79748&Transmission_Id=201705041611PR_NEWS_USPR_____CL79748&DateId=20170504



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