COLUMBUS, Ohio, May 5, 2022
/PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today
announced first quarter results for 2022. Provided below are the
highlights:
- Reported sales increased 12% compared with the prior year. In
local currency, sales increased 14% in the quarter as currency
reduced sales growth by 2%.
- Net earnings per diluted share as reported (EPS) were
$7.55, compared with $6.32 in the prior-year period. Adjusted EPS was
$7.87, an increase of 20% over
the prior-year amount of $6.56.
Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is
included on the last page of the attached schedules.
First Quarter Results
Patrick Kaltenbach, President and
Chief Executive Officer, stated, "We had a strong start to the year
with robust customer demand and diligent execution by our teams
throughout the world. We had excellent growth in our Laboratory and
Industrial businesses and saw broad-based growth in most regions.
Despite continued higher costs associated with challenges in the
global supply chain, we had a very good increase in operating
profit and earnings growth, which is particularly impressive given
the excellent growth in the prior year."
GAAP Results
EPS in the quarter was $7.55,
compared with the prior-year amount of $6.32.
Compared with the prior year, total reported sales increased 12%
to $897.8 million. By region,
reported sales increased 16% in the Americas, 3% in Europe and 14% in Asia/Rest of World. Earnings before taxes
amounted to $213.0 million, compared
with $185.4 million in the prior
year.
Non-GAAP Results
Adjusted EPS was $7.87, an
increase of 20% over the prior-year amount of $6.56.
Compared with the prior year, total sales in local currency
increased 14% as currency reduced sales growth by 2%. By region,
local currency sales increased 16% in the Americas, 10% in
Europe and 15% in Asia/Rest of World. Adjusted Operating Profit
amounted to $241.2 million, a 15%
increase from the prior-year amount of $210.7 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 very dynamic and
changes to the business environment can happen quickly. There is
increased uncertainty in the economic environment today including
the potential impact of COVID-19, challenges in the global supply
chain, inflationary pressures, unfavorable foreign currency and the
potential repercussions from the war in Ukraine. 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 8%. This
sales growth is expected to result in
Adjusted EPS in the range of $38.20 to $38.50,
which represents a growth rate of 12% to 13%. This compares with
previous local currency sales guidance of approximately 7% and
Adjusted EPS guidance of $38.15 to
$38.50.
Based on today's assessment of market conditions, management
anticipates local currency sales growth for the second quarter of
2022 will be approximately 7%, and Adjusted EPS is forecasted to be
$8.70 to $8.80, a growth rate of 7% to 9%.
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, "Momentum in our business is good across
our Laboratory and Industrial product lines and we believe we are
continuing to gain market share. Our ability to navigate challenges
in the supply chain and meet customer demand continues to be a
competitive advantage. We face macro uncertainties including
COVID-19, challenges in the global supply chain, inflationary
pressures, unfavorable foreign currency and the potential
repercussions from the war in Ukraine. We remain focused on what we can
control, namely capitalizing on our strong product portfolio and
focused execution of our strategic programs to capture growth. Our
culture of agility and resilience is particularly important given
market conditions today. We remain confident in our strategic
initiatives and our ability to deliver strong results in 2022 and
beyond."
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 (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, 2021 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
|
|
|
|
|
|
|
March 31,
2022
|
|
|
% of sales
|
|
|
March 31,
2021
|
|
% of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$897,791
|
(a)
|
|
100.0
|
|
|
|
|
$804,390
|
|
|
100.0
|
|
|
Cost of
sales
|
|
378,206
|
|
|
42.1
|
|
|
|
|
332,694
|
|
|
41.4
|
|
|
Gross profit
|
|
519,585
|
|
|
57.9
|
|
|
|
|
471,696
|
|
|
58.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
43,028
|
|
|
4.8
|
|
|
|
|
39,272
|
|
|
4.9
|
|
|
Selling, general and
administrative
|
|
235,312
|
|
|
26.2
|
|
|
|
|
221,752
|
|
|
27.6
|
|
|
Amortization
|
|
16,604
|
|
|
1.8
|
|
|
|
|
13,884
|
|
|
1.7
|
|
|
Interest
expense
|
|
11,338
|
|
|
1.3
|
|
|
|
|
9,471
|
|
|
1.2
|
|
|
Restructuring
charges
|
|
4,011
|
|
|
0.5
|
|
|
|
|
1,193
|
|
|
0.1
|
|
|
Other charges (income),
net
|
|
(3,709)
|
|
|
(0.4)
|
|
|
|
|
710
|
|
|
0.1
|
|
|
Earnings before
taxes
|
|
213,001
|
|
|
23.7
|
|
|
|
|
185,414
|
|
|
23.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
taxes
|
|
39,000
|
|
|
4.3
|
|
|
|
|
35,751
|
|
|
4.4
|
|
|
Net earnings
|
|
$174,001
|
|
|
19.4
|
|
|
|
|
$149,663
|
|
|
18.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$7.64
|
|
|
|
|
|
|
|
$6.41
|
|
|
|
|
|
Weighted average number
of common shares
|
|
22,768,298
|
|
|
|
|
|
|
|
23,365,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$7.55
|
|
|
|
|
|
|
|
$6.32
|
|
|
|
|
|
Weighted average number
of common
|
|
23,040,231
|
|
|
|
|
|
|
|
23,685,665
|
|
|
|
|
|
and common
equivalent shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Local currency sales
increased 14% as compared to the same period in 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
2022
|
|
|
% of sales
|
|
|
March 31,
2021
|
|
% of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
taxes
|
|
$213,001
|
|
|
|
|
|
|
|
$185,414
|
|
|
|
|
|
Amortization
|
|
16,604
|
|
|
|
|
|
|
|
13,884
|
|
|
|
|
|
Interest
expense
|
|
11,338
|
|
|
|
|
|
|
|
9,471
|
|
|
|
|
|
Restructuring
charges
|
|
4,011
|
|
|
|
|
|
|
|
1,193
|
|
|
|
|
|
Other charges (income),
net
|
|
(3,709)
|
|
|
|
|
|
|
|
710
|
|
|
|
|
|
Adjusted operating
profit
|
|
$241,245
|
(b)
|
|
26.9
|
|
|
|
|
$210,672
|
|
|
26.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
Adjusted operating
profit increased 15% as compared to the same period in
2021.
|
|
|
|
METTLER-TOLEDO
INTERNATIONAL INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(amounts in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$116,949
|
|
|
|
|
$98,564
|
|
Accounts receivable,
net
|
|
|
617,880
|
|
|
|
|
647,335
|
|
Inventories
|
|
|
446,490
|
|
|
|
|
414,543
|
|
Other current assets
and prepaid expenses
|
|
|
128,567
|
|
|
|
|
108,916
|
|
Total current
assets
|
|
|
1,309,886
|
|
|
|
|
1,269,358
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
787,472
|
|
|
|
|
799,365
|
|
Goodwill and other
intangibles assets, net
|
|
|
955,197
|
|
|
|
|
956,072
|
|
Other non-current
assets
|
|
|
303,628
|
|
|
|
|
302,003
|
|
Total assets
|
|
|
$3,356,183
|
|
|
|
|
$3,326,798
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
and maturities of long-term debt
|
|
|
$105,262
|
|
|
|
|
$101,134
|
|
Trade accounts
payable
|
|
|
259,352
|
|
|
|
|
272,911
|
|
Accrued and other
current liabilities
|
|
|
722,799
|
|
|
|
|
772,493
|
|
Total current
liabilities
|
|
|
1,087,413
|
|
|
|
|
1,146,538
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,766,832
|
|
|
|
|
1,580,808
|
|
Other non-current
liabilities
|
|
|
417,368
|
|
|
|
|
428,031
|
|
Total
liabilities
|
|
|
3,271,613
|
|
|
|
|
3,155,377
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
84,570
|
|
|
|
|
171,421
|
|
Total liabilities and
shareholders' equity
|
|
|
$3,356,183
|
|
|
|
|
$3,326,798
|
|
METTLER-TOLEDO
INTERNATIONAL INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(amounts in
thousands)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
March 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
Net
earnings
|
|
$174,001
|
|
$149,663
|
|
Adjustments to reconcile net earnings to
|
|
|
|
|
|
net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation
|
|
11,880
|
|
10,943
|
|
Amortization
|
|
16,604
|
|
13,884
|
|
Deferred tax
benefit
|
|
(1,096)
|
|
(5,068)
|
|
Share-based
compensation
|
|
4,509
|
|
4,575
|
|
Decrease in cash
resulting from changes in
|
|
|
|
|
|
operating
assets and liabilities
|
|
(115,061)
|
|
(15,120)
|
|
Net cash provided by operating activities
|
|
90,837
|
|
158,877
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
(19,151)
|
|
(24,605)
|
|
Proceeds from government funding (a)
|
|
18,000
|
|
-
|
|
Acquisitions
|
|
(9,704)
|
|
(185,074)
|
|
Other investing activities
|
|
3,743
|
|
18,226
|
|
Net cash used in investing activities
|
|
(7,112)
|
|
(191,453)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from borrowings
|
|
684,037
|
|
827,991
|
|
Repayments of borrowings
|
|
(478,479)
|
|
(523,146)
|
|
Proceeds from exercise of stock options
|
|
5,289
|
|
5,049
|
|
Repurchases of common stock
|
|
(275,000)
|
|
(262,500)
|
|
Other financing activities
|
|
(332)
|
|
(714)
|
|
Net cash (used in) provided by financing activities
|
|
(64,485)
|
|
46,680
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
(855)
|
|
(1,704)
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
18,385
|
|
12,400
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
Beginning of period
|
|
98,564
|
|
94,254
|
|
End
of period
|
|
$116,949
|
|
$106,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH
FLOW
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$90,837
|
|
$158,877
|
|
Payments in respect of restructuring activities
|
|
1,914
|
|
4,573
|
|
Payments for acquisition costs
|
|
174
|
|
117
|
|
Purchase of property, plant and equipment, net
(a)
|
|
(17,472)
|
|
(24,605)
|
|
Adjusted free cash
flow
|
|
$75,453
|
|
$138,962
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
(a)
|
In September 2021, the
Company entered into an agreement with the U.S. Department of
Defense to increase the domestic production capacity of pipette
tips and enhance manufacturing automation and logistics. The
Company will receive funding of $35.8 million, which will offset
future capital expenditures. For the three months ended March 31,
2022, the funding proceeds of $18.0M and related purchase of
property, plant and equipment of $1.7M are excluded from Adjusted
free cash flow.
|
|
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, 2022
|
|
|
3%
|
|
16%
|
|
14%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Currency Sales
Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
10%
|
|
16%
|
|
15%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
DILUTED EPS AS REPORTED TO ADJUSTED DILUTED
EPS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March 31,
|
|
|
|
2022
|
|
2021
|
|
% Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS as reported,
diluted
|
$7.55
|
|
$6.32
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangible
amortization, net of tax
|
0.22
|
(a)
|
0.12
|
(a)
|
|
|
|
|
|
|
|
Restructuring charges,
net of tax
|
0.14
|
(b)
|
0.04
|
(b)
|
|
|
|
|
|
|
|
Acquisition costs, net
of tax
|
0.02
|
(c)
|
0.10
|
(c)
|
|
|
|
|
|
|
|
Income tax
expense
|
(0.06)
|
(d)
|
(0.02)
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS,
diluted
|
$7.87
|
|
$6.56
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Represents the EPS
impact of purchased intangibles amortization of $6.6 million ($5.1
million after tax) and $3.8 million ($2.9 million after tax) for
the three months ended March 31, 2022 and 2021,
respectively.
|
(b)
|
Represents the EPS
impact of restructuring charges of $4.0 million ($3.2 million after
tax) and $1.2 million ($1.0 million after tax) for the three months
ended March 31, 2022 and 2021, respectively, which primarily
include employee related costs.
|
(c)
|
Represents the EPS
impact of acquisition costs of $0.5 million ($0.4 million after
tax) and $2.8 million ($2.3 million after tax) for the three months
ended March 31, 2022 and 2021, respectively.
|
(d)
|
Represents the EPS
impact of the difference between our quarterly and estimated annual
tax rate before non-recurring discrete items during the three
months ended March 31, 2022 and 2021 due to the timing of excess
tax benefits associated with stock option exercises.
|
View original
content:https://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-first-quarter-2022-results-301541258.html
SOURCE Mettler-Toledo International Inc.