COLUMBUS, Ohio, Feb. 4, 2021 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth quarter results for 2020.  Provided below are the highlights:

  • Reported sales increased 11% compared with the prior year. In local currency, sales increased 7% in the quarter as currency benefited reported sales growth by 4%.
  • Net earnings per diluted share as reported (EPS) were $9.03, compared with $7.84 in the prior-year period. Adjusted EPS was $9.26, an increase of 19% over the prior-year amount of $7.78. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.

Quarterly Results

Olivier Filliol, President and Chief Executive Officer, stated, "We ended the year with very good sales growth in all regions, with particularly strong growth in our Laboratory business and in China. We benefited from strong execution and were well positioned to capture growth as customer demand improved, however, we continued to be negatively impacted by COVID-19 in certain businesses and end markets. Strong sales growth, combined with good cost control and the benefit of our ongoing margin and productivity initiatives, contributed to strong growth in Adjusted Operating Profit and Adjusted EPS. Finally, cash flow generation in the quarter, and for the full year, was excellent."

GAAP Results
EPS in the quarter was $9.03, compared with the prior-year amount of $7.84.  

Compared with the prior year, total reported sales increased 11% to $938.0 million.  By region, reported sales increased 8% in the Americas, 14% in Europe and 12% in Asia/Rest of World. Earnings before taxes amounted to $269.2 million, compared with $231.1 million in the prior year. 

Non-GAAP Results
Adjusted EPS was $9.26, an increase of 19% over the prior-year amount of $7.78.     

Compared with the prior year, total sales in local currency increased 7% as currency benefited sales growth by 4%.  By region, local currency sales increased 8% in the Americas, 7% in Europe and 8% in Asia/Rest of World.  Adjusted Operating Profit amounted to $292.8 million, a 14% increase from the prior-year amount of $256.3 million

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.

Year-to-Date Results

GAAP Results
EPS for the year was $24.91, compared with the prior-year amount of $22.47.

Compared with the prior year, total reported sales increased 3% to $3.085 billion.  By region, reported sales increased 1% in the Americas, 3% in Europe and 3% in Asia/Rest of World.  Earnings before taxes amounted to $748.7 million, compared with $681.4 million in the prior year. 

Non-GAAP Results
Adjusted EPS was $25.72, an increase of 13% over the prior-year amount of $22.77.     

Compared with the prior year, total sales in local currency increased 2% as currency increased reported sales by 1%.  By region, local currency sales increased 2% in the Americas, 1% in Europe and 3% in Asia/Rest of World.  Adjusted Operating Profit amounted to $840.7 million, an 8% increase from the prior-year amount of $778.1 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 given the uncertainty surrounding COVID-19 and ensuing impact to the global economic environment. Management cautions that market dynamics and impacts related to COVID-19 are fluid and changes to the business environment can happen quickly. The estimates include significant 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 in 2021 will be in the range of 5% to 7%, and Adjusted EPS is forecasted to be in the range of $29.20 to $29.80, an increase of 14% to 16%.  This compares with previous guidance of Adjusted EPS in the range of $27.50 to $28.30.

For the first quarter of 2021, based on current market conditions, the Company anticipates that local currency sales growth will be in the range of 11% to 13%, and Adjusted EPS is forecasted to be $5.55 to $5.70, a growth rate of 39% to 43%.

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, "In 2020, we strengthened our franchise with our ability to support our customers, while prioritizing on the safety of our employees and customers. We differentiated from competition by leveraging and quickly adjusting our digital sales and marketing and Go-to-Market approaches to identify and pursue pockets of growth and effectively engage with customers. Our agility in responding to the unprecedented market conditions led to further share gains that would not have been possible without our Spinnaker sales and marketing foundation, excellent product portfolio, world-class service organization and strong culture of execution. We are in a strong position to capitalize on growth as customer demand improves throughout the world. While uncertainty remains surrounding the ultimate impact to the economy from COVID-19, we will continue to focus on serving our customers and driving our growth and margin initiatives. We will remain agile and adapt to changes in market conditions as necessary. We have good momentum as we enter 2021 and believe we are well positioned to continue to gain share and deliver strong results."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, Feb. 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 (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








December 31, 2020


% of sales


December 31, 2019


% of sales






















Net sales



$937,985

(a)


100.0





$843,969




100.0



Cost of sales



378,941




40.4





345,672




41.0



Gross profit



559,044




59.6





498,297




59.0























Research and development



39,866




4.3





35,299




4.2



Selling, general and administrative 



226,369




24.1





206,717




24.5



Amortization



14,657




1.6





12,813




1.5



Interest expense



9,505




1.0





9,635




1.1



Restructuring charges



3,181




0.3





4,614




0.5



Other charges (income), net



(3,714)




(0.4)





(1,924)




(0.3)



Earnings before taxes



269,180




28.7





231,143




27.3























Provision for taxes



52,885




5.6





38,394

(b)


4.5



Net earnings



$216,295




23.1





$192,749




22.8























Basic earnings per common share:



















Net earnings 



$9.15









$7.95







Weighted average number of common shares



23,642,415









24,241,383



























Diluted earnings per common share:



















Net earnings 



$9.03









$7.84







Weighted average number of common 



23,965,853









24,599,702







  and common equivalent shares







































Note:



















(a)

Local currency sales increased 7% as compared to the same period in 2019.



(b)

Provision for taxes includes a non-cash deferred net benefit of $15.8 million for the three months ended December 31, 2019 related to the enactment of Swiss tax reform.























RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
























Three months ended







Three months ended








December 31, 2020


% of sales


December 31, 2019


% of sales






















Earnings before taxes



$269,180









$231,143







Amortization



14,657









12,813







Interest expense



9,505









9,635







Restructuring charges



3,181









4,614







Other charges (income), net



(3,714)









(1,924)







Adjusted operating profit



$292,809

(c)


31.2





$256,281




30.4























Note:



















(c)

Adjusted operating profit increased 14% as compared to the same period in 2019.



 

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)























Twelve months ended






Twelve months ended








December 31, 2020


% of sales


December 31, 2019


% of sales


















Net sales



$3,085,177

(a)


100.0





$3,008,652




100.0



Cost of sales



1,284,146




41.6





1,267,441




42.1



Gross profit



1,801,031




58.4





1,741,211




57.9























Research and development



140,102




4.5





143,950




4.8



Selling, general and administrative 



820,221




26.6





819,183




27.2



Amortization



56,665




1.8





49,690




1.7



Interest expense



38,616




1.3





37,411




1.2



Restructuring charges



10,516




0.3





15,760




0.5



Other charges (income), net



(13,832)




(0.4)





(6,177)




(0.3)



Earnings before taxes



748,743




24.3





681,394




22.6























Provision for taxes



146,004




4.8





120,285

(b)


4.0



Net earnings



$602,739




19.5





$561,109




18.6























Basic earnings per common share:



















Net earnings 



$25.24









$22.84







Weighted average number of common shares



23,882,648









24,567,609



























Diluted earnings per common share:



















Net earnings 



$24.91









$22.47







Weighted average number of common 



24,199,230









24,974,457







  and common equivalent shares







































Note:



















(a)

Local currency sales increased 2% compared to the same period in 2019.



(b)

Provision for taxes includes a non-cash deferred net benefit of $15.8 million for the twelve months ended December 31, 2019 related to the enactment of Swiss tax reform.























RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
























Twelve months ended







Twelve months ended








December 31, 2020


% of sales


December 31, 2019


% of sales






















Earnings before taxes



$748,743









$681,394







Amortization



56,665









49,690







Interest expense



38,616









37,411







Restructuring charges



10,516









15,760







Other charges (income), net



(13,832)









(6,177)







Adjusted operating profit



$840,708

(c)


27.2





$778,078




25.9























Note:



















(c)

Adjusted operating profit increased 8% as compared to the same period in 2019.



 


METTLER-TOLEDO INTERNATIONAL INC.


CONDENSED CONSOLIDATED BALANCE SHEETS


(amounts in thousands)


(unaudited)

























December 31, 2020



December 31, 2019












Cash and cash equivalents



$94,254





$207,785


Accounts receivable, net



593,809





566,256


Inventories



297,611





274,285


Other current assets and prepaid expenses



71,230





61,321


Total current assets



1,056,904





1,109,647













Property, plant and equipment, net



798,868





748,657


Goodwill and other intangibles assets, net



747,055





742,221


Other non-current assets



211,722





188,796


Total assets



$2,814,549





$2,789,321













Short-term borrowings and maturities of long-term debt



$50,317





$55,868


Trade accounts payable



175,801





185,592


Accrued and other current liabilities



614,209





513,052


Total current liabilities



840,327





754,512













Long-term debt



1,284,174





1,235,350


Other non-current liabilities



407,373





378,679


Total liabilities



2,531,874





2,368,541













Shareholders' equity



282,675





420,780


Total liabilities and shareholders' equity



$2,814,549





$2,789,321


 

METTLER-TOLEDO INTERNATIONAL INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


 (amounts in thousands)


 (unaudited)














Three months ended


Twelve months ended




December 31,


December 31,




2020


2019


2020


2019












Cash flow from operating activities:









    Net earnings

$216,295


$192,749


$602,739


$561,109


    Adjustments to reconcile net earnings to









      net cash provided by operating activities:









Depreciation

11,095


9,643


42,044


38,991


Amortization

14,657


12,813


56,665


49,690


Deferred tax (benefit) expense

(5,794)


29,166


(12,784)


11,203


Share-based compensation

5,439


5,002


18,687


18,285


Swiss tax reform benefit (a)

-


(15,833)


-


(15,833)


Other

(2,399)


161


(2,399)


133


Increase (decrease) in cash resulting from changes in









  operating assets and liabilities

11,576


(31,992)


19,747


(60,128)


                Net cash provided by operating activities

250,869


201,709


724,699


603,450












Cash flows from investing activities:









    Proceeds from sale of property, plant and equipment

60


174


3,106


1,422


    Purchase of property, plant and equipment

(35,066)


(25,714)


(92,494)


(97,341)


    Acquisitions

-


-


(6,242)


(2,004)


    Net hedging settlements on intercompany loans

4,691


2,939


(4,730)


(1,160)


                Net cash used in investing activities

(30,315)


(22,601)


(100,360)


(99,083)












Cash flows from financing activities:









    Proceeds from borrowings

340,680


627,370


1,489,040


1,435,081


    Repayments of borrowings

(252,678)


(515,989)


(1,483,869)


(1,176,784)


    Proceeds from exercise of stock options

525


9,665


26,719


47,581


    Repurchases of common stock 

(374,999)


(216,249)


(774,998)


(774,999)


    Acquisition contingent consideration payment

-


-


-


(10,000)


    Other financing activities

-


-


(800)


1,753


                Net cash used in financing activities

(286,472)


(95,203)


(743,908)


(477,368)












Effect of exchange rate changes on cash and cash equivalents

6,486


3,348


6,038


2,676












Net increase (decrease) in cash and cash equivalents

(59,432)


87,253


(113,531)


29,675












Cash and cash equivalents:









    Beginning of period

153,686


120,534


$207,785


178,110


    End of period

$94,254


$207,787


$94,254


$207,785






















RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW












Net cash provided by operating activities

$250,869


$201,709


$724,699


$603,450


    Payments in respect of restructuring activities

2,280


7,033


8,541


16,483


    Proceeds from sale of property, plant and equipment

60


174


3,106


1,422


    Purchase of property, plant and equipment

(35,066)


(25,714)


(92,494)


(97,341)


    Payments for one-time legal charge (b)

-


2,992


-


2,992


    Transition tax payment

-


-


4,264


4,289


Adjusted free cash flow

$218,143


$186,194


$648,116


$531,295












(a)

Represents a non-cash deferred net benefit of $15.8 million for the three and twelve months ended December 31, 2019 related to the enactment of Swiss tax reform.


(b)

Represents cash payment made in 2019, related to the one-time legal charge recorded during the three months ended December 31, 2018.


 

 

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, 2020



14%


8%


12%


11%




Twelve Months Ended December 31, 2020



3%


1%


3%


3%
















Local Currency Sales Growth (Decrease)













Three Months Ended December 31, 2020



7%


8%


8%


7%




Twelve Months Ended December 31, 2020



1%


2%


3%


2%





























RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS 


(unaudited)

















Three months ended

Twelve months ended



December 31,

December 31,



2020


2019


% Growth


2020


2019


% Growth














EPS as reported, diluted

$9.03


$7.84


15%


$24.91


$22.47


11%














Restructuring charges, net of tax

0.11

(a)

0.15

(a)



0.35

(a)

0.50

(a)


Purchased intangible amortization, net of tax

0.12

(b)

0.11

(b)



0.46

(b)

0.43

(b)


Income tax expense

-

(c)

0.32

(c)



-


-



Swiss Tax reform

-


(0.64)

(d)



-


(0.63)

(d)















Adjusted EPS, diluted

$9.26


$7.78


19%


$25.72


$22.77


13%














Notes:












(a)

Represents the EPS impact of restructuring charges of $3.2 million ($2.6 million after tax) and $4.6 million ($3.7 million after tax) for the three months ended December 31, 2020 and 2019, and $10.5 million ($8.5 million after tax) and $15.8 million ($12.6 million after tax) for the twelve months ended December 31, 2020 and 2019, respectively, which primarily include employee related costs.

(b)

Represents the EPS impact of purchased intangibles amortization of $3.7 million ($2.8 million after tax) and $3.8 million ($2.8 million after tax) for the three months ended December 31, 2020 and 2019, and of $14.9 million ($11.2 million after tax) and $14.3 million ($10.8 million after tax) for the twelve months ended December 31, 2020 and 2019, respectively.

(c)

Represents the EPS impact of the difference between our reported and annual tax rate before non-recurring discrete items, due to the timing of excess tax benefits associated with stock option exercises and a $0.20 EPS benefit for the three months ended December 31, 2020 for the reduction in our annualized effective tax rate to 19.5% for the first three quarters of 2020.

(d)

Represents the EPS impact of a non-cash deferred net benefit of $15.8 million related to the enactment of Swiss tax reform for the three and twelve months ended December 31, 2019.

 

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SOURCE Mettler-Toledo International Inc.

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