COLUMBUS, Ohio, May 7, 2020 /PRNewswire/ -- Mettler-Toledo
International Inc. (NYSE: MTD) today announced first quarter
results for 2020. Provided below are the highlights:
- Reported sales decreased 4% compared with the prior year.
In local currency, sales decreased 3% in the quarter as currency
reduced sales growth by 1%.
- Net earnings per diluted share as reported (EPS) were
$4.03, compared with $4.42 in the prior-year period. Adjusted
EPS was $4.00, a decrease of 2% over
the prior-year amount of $4.10.
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, "The negative impact of COVID-19
to our local currency sales in China was significant. Local currency sales in
other countries, particularly in Asia and Europe, were also negatively impacted by
COVID-19. With the benefit of our margin and cost containment
initiatives, we improved gross margins and maintained adjusted
operating margins consistent with the prior year while adjusted EPS
was slightly below the prior year."
GAAP Results
EPS in the quarter was $4.03,
compared with the prior-year amount of $4.42.
Compared with the prior year, total reported sales decreased 4%
to $649.2 million. By region,
reported sales increased 2% in the Americas and decreased 7% in
Europe and 10% in Asia/Rest of World. Earnings before taxes
amounted to $118.5 million, compared
with $125.7 million in the prior
year.
Non-GAAP Results
Adjusted EPS was $4.00, a
decrease of 2% over the prior-year amount of $4.10.
Compared with the prior year, total sales in local currency
decreased 3% as currency reduced reported sales growth by 1%.
By region, local currency sales increased 3% in the Americas and
decreased 5% in Europe and 8% in
Asia/Rest of World. Adjusted
Operating Profit amounted to $141.3
million, a 4% decline from the prior-year amount of
$147.8 million.
Adjusted EPS and Adjusted Operating Profit are non-GAAP
measures. Reconciliations to the most comparable GAAP measures are
provided in the attached schedules.
Outlook
The Company stated that forecasting is very difficult given the
significant uncertainty surrounding COVID-19 and ensuing impact to
the global economic environment. The Company said that given this
significant uncertainty, it will not provide an estimate for full
year sales growth and Adjusted EPS for 2020. The Company noted that
it expects to continue to benefit from its margin and productivity
initiatives and has implemented temporary cost containment measures
and reductions in discretionary spending.
For the second quarter 2020, based on management's current
estimate of market conditions, the Company estimates that local
currency sales will decline approximately -8% to -12%, and Adjusted
EPS is forecasted to be in the range of $4.05 to $4.45.
The Company cautions that market dynamics and impacts related to
COVID-19 are fluid and changes to the economic environment can
happen quickly. The estimates for the second quarter 2020 include
significant uncertainty and management acknowledges that market
conditions are subject to change.
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
Filliol concluded, "The health of our employees and customers is
of utmost importance and we have undertaken protocols throughout
the world to help ensure wellness and safety of all those involved.
Our top priority remains providing instruments and services to our
customers of which the majority serve essential markets such as
pharmaceutical and food manufacturing. We have quickly adjusted our
go-to-market sales approach and how we deliver service and launch
new products given the unprecedented operating dynamics of the
current market. Our margin and productivity initiatives remain on
track and we have undertaken measures to temporarily reduce our
cost structure. We are focused on being well positioned for the
recovery and believe we can capitalize on our strong competitive
advantages including our leading positions in fragmented markets,
unique approach to sales and marketing which is a key
differentiator in this environment, continued product innovation
and strong culture known for our agility and execution. Although
current market conditions are extremely challenging, we believe we
can continue to gain share."
Other Matters
The Company will host a conference call to discuss its quarterly
results today (Thursday, May 7) 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, 2019 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,
2020
|
% of sales
|
|
|
|
March 31,
2019
|
% of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$649,162
|
|
(a)
|
|
100.0
|
|
|
|
|
$679,452
|
|
|
|
100.0
|
|
|
Cost of
sales
|
|
|
274,753
|
|
|
|
42.3
|
|
|
|
|
291,133
|
|
|
|
42.8
|
|
|
Gross
profit
|
|
|
374,409
|
|
|
|
57.7
|
|
|
|
|
388,319
|
|
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
34,387
|
|
|
|
5.3
|
|
|
|
|
36,053
|
|
|
|
5.3
|
|
|
Selling, general and
administrative
|
|
|
198,744
|
|
|
|
30.6
|
|
|
|
|
204,425
|
|
|
|
30.1
|
|
|
Amortization
|
|
|
13,998
|
|
|
|
2.2
|
|
|
|
|
12,222
|
|
|
|
1.8
|
|
|
Interest
expense
|
|
|
10,219
|
|
|
|
1.6
|
|
|
|
|
9,094
|
|
|
|
1.3
|
|
|
Restructuring
charges
|
|
|
1,905
|
|
|
|
0.3
|
|
|
|
|
1,523
|
|
|
|
0.2
|
|
|
Other charges
(income), net
|
|
|
(3,343)
|
|
|
|
(0.5)
|
|
|
|
|
(674)
|
|
|
|
(0.0)
|
|
|
Earnings before
taxes
|
|
|
118,499
|
|
|
|
18.2
|
|
|
|
|
125,676
|
|
|
|
18.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
taxes
|
|
|
20,384
|
|
|
|
3.1
|
|
|
|
|
13,871
|
|
|
|
2.0
|
|
|
Net
earnings
|
|
|
$98,115
|
|
|
|
15.1
|
|
|
|
|
$111,805
|
|
|
|
16.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
$4.08
|
|
|
|
|
|
|
|
|
$4.50
|
|
|
|
|
|
|
Weighted average
number of common shares
|
|
|
24,027,833
|
|
|
|
|
|
|
|
|
24,851,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
$4.03
|
|
|
|
|
|
|
|
|
$4.42
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
24,353,477
|
|
|
|
|
|
|
|
|
25,310,525
|
|
|
|
|
|
|
and common
equivalent shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Local currency
sales decreased 3% as compared to the same period in
2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
March 31,
2020
|
% of sales
|
|
|
|
March 31,
2019
|
% of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
taxes
|
|
|
$118,499
|
|
|
|
|
|
|
|
|
$125,676
|
|
|
|
|
|
|
Amortization
|
|
|
13,998
|
|
|
|
|
|
|
|
|
12,222
|
|
|
|
|
|
|
Interest
expense
|
|
|
10,219
|
|
|
|
|
|
|
|
|
9,094
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
1,905
|
|
|
|
|
|
|
|
|
1,523
|
|
|
|
|
|
|
Other charges
(income), net
|
|
|
(3,343)
|
|
|
|
|
|
|
|
|
(674)
|
|
|
|
|
|
|
Adjusted operating
profit
|
|
|
$141,278
|
|
(b)
|
|
21.8
|
|
|
|
|
$147,841
|
|
|
|
21.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Adjusted operating
profit decreased 4% as compared to the same period in
2019.
|
|
|
|
|
|
|
|
METTLER-TOLEDO
INTERNATIONAL INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(amounts in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$323,585
|
|
|
|
|
$207,785
|
|
Accounts receivable,
net
|
|
|
518,556
|
|
|
|
|
566,256
|
|
Inventories
|
|
|
292,110
|
|
|
|
|
274,285
|
|
Other current assets
and prepaid expenses
|
|
|
66,614
|
|
|
|
|
61,321
|
|
Total current
assets
|
|
|
1,200,865
|
|
|
|
|
1,109,647
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
742,651
|
|
|
|
|
748,657
|
|
Goodwill and other
intangibles assets, net
|
|
|
742,590
|
|
|
|
|
742,221
|
|
Other non-current
assets
|
|
|
199,674
|
|
|
|
|
188,796
|
|
Total
assets
|
|
|
$2,885,780
|
|
|
|
|
$2,789,321
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
and maturities of long-term debt
|
|
|
$56,398
|
|
|
|
|
$55,868
|
|
Trade accounts
payable
|
|
|
168,515
|
|
|
|
|
185,592
|
|
Accrued and other
current liabilities
|
|
|
454,925
|
|
|
|
|
513,052
|
|
Total current
liabilities
|
|
|
679,838
|
|
|
|
|
754,512
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,513,020
|
|
|
|
|
1,235,350
|
|
Other non-current
liabilities
|
|
|
386,525
|
|
|
|
|
378,679
|
|
Total
liabilities
|
|
|
2,579,383
|
|
|
|
|
2,368,541
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
306,397
|
|
|
|
|
420,780
|
|
Total liabilities and
shareholders' equity
|
|
|
$2,885,780
|
|
|
|
|
$2,789,321
|
|
|
|
|
|
|
|
|
|
|
|
|
METTLER-TOLEDO
INTERNATIONAL INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(amounts in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
Net earnings
|
|
|
$98,115
|
|
$111,805
|
|
Adjustments to reconcile net earnings to
|
|
|
|
|
|
|
net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
10,133
|
|
9,767
|
|
Amortization
|
|
|
13,998
|
|
12,222
|
|
Deferred tax
benefit
|
|
|
(3,718)
|
|
(14,939)
|
|
Other
|
|
|
4,395
|
|
4,482
|
|
Decrease in cash
resulting from changes in
|
|
|
|
|
|
|
operating
assets and liabilities
|
|
|
(57,408)
|
|
(24,542)
|
|
Net cash provided by operating activities
|
|
|
65,515
|
|
98,795
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(18,835)
|
|
(22,332)
|
|
Acquisitions
|
|
|
(5,610)
|
|
-
|
|
Net hedging settlements on intercompany loans
|
|
|
(10,008)
|
|
4,802
|
|
Net cash used in investing activities
|
|
|
(34,453)
|
|
(17,530)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
832,268
|
|
302,707
|
|
Repayments of borrowings
|
|
|
(551,319)
|
|
(271,646)
|
|
Proceeds from exercise of stock options
|
|
|
7,135
|
|
28,990
|
|
Repurchases of common stock
|
|
|
(200,000)
|
|
(186,250)
|
|
Acquisition contingent consideration payment
|
|
|
-
|
|
(10,000)
|
|
Other financing activities
|
|
|
(800)
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
87,284
|
|
(136,199)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(2,546)
|
|
3,304
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
115,800
|
|
(51,630)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Beginning of period
|
|
|
207,785
|
|
178,110
|
|
End of period
|
|
|
$323,585
|
|
$126,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
$65,515
|
|
$98,795
|
|
Payments in respect of restructuring activities
|
|
|
1,626
|
|
3,692
|
|
Purchase of property, plant and equipment
|
|
|
(18,835)
|
|
(22,332)
|
|
Adjusted free cash
flow
|
|
|
$48,306
|
|
$80,155
|
|
|
|
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METTLER-TOLEDO
INTERNATIONAL INC.
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OTHER OPERATING
STATISTICS
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SALES GROWTH BY
DESTINATION
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(unaudited)
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Europe
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Americas
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Asia/RoW
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Total
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U.S. Dollar Sales
Growth (Decline)
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Three Months Ended
March 31, 2020
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(7%)
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2%
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(10%)
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(4%)
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Local Currency Sales
Growth (Decline)
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Three Months Ended
March 31, 2020
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(5%)
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3%
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(8%)
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(3%)
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RECONCILIATION OF
DILUTED EPS AS REPORTED TO ADJUSTED DILUTED
EPS
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(unaudited)
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Three months
ended
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March 31,
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2020
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2019
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% Growth
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EPS as reported,
diluted
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$4.03
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$4.42
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(9%)
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Purchased intangible
amortization, net of tax
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0.12
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(a)
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0.10
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(a)
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Restructuring
charges, net of tax
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0.06
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(b)
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0.05
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(b)
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Income tax
expense
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(0.21)
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(c)
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(0.47)
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(c)
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Adjusted EPS,
diluted
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$4.00
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$4.10
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(2%)
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Notes:
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(a)
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Represents the EPS
impact of purchased intangibles amortization, net of tax, of $2.8
million and $2.6 million for the three months ended March 31, 2020
and 2019, respectively.
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(b)
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Represents the EPS
impact of restructuring charges of $1.9 million ($1.5 million after
tax) and $1.5 million ($1.2 million after tax) for the three months
ended March 31, 2020 and 2019, respectively, which primarily
include employee related costs.
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(c)
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Represents the EPS
impact of the difference between our quarterly and estimated annual
tax rate before non-recurring discrete items, due to the timing of
excess tax benefits associated with stock option
exercises.
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View original
content:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-first-quarter-2020-results-301055271.html
SOURCE Mettler-Toledo International Inc.