EX-99.1 2 ex-991mtd8xkq32013.htm EXHIBIT EX-99.1 MTD 8-K Q3 2013
FOR IMMEDIATE RELEASE
 
Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS
THIRD QUARTER 2013 RESULTS

- - Market Conditions Improving but Remain Challenging in China - -
- - Solid Earnings Growth - -


COLUMBUS, Ohio, USA - November 7, 2013 - Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2013. Provided below are the highlights:

•
Sales in local currency increased by 1% in the quarter compared with the prior year. Reported sales increased 2% which included a 1% benefit due to currency.

•
Net earnings per diluted share as reported (EPS) were $2.43, compared with $2.28 in the third quarter of 2012. Adjusted EPS was $2.60, an increase of 8% over the prior-year amount of $2.40. 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.

Third Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, “We saw an improvement in market conditions in Europe while customer demand in the Americas remains solid. In China, soft market demand, continued credit constraints in specific segments of our customer base and the exit of certain industrial product lines resulted in a sales decline. However, we generated good EPS growth as we benefitted from our various margin improvement and cost control initiatives. Cash flow was also very strong in the quarter.”

EPS in the third quarter was $2.43, compared with the prior-year amount of $2.28. Adjusted EPS was $2.60, an increase of 8% over the prior-year amount of $2.40.

Sales were $591.7 million, a 1% increase in local currency sales, compared with $578.6 million in the prior-year quarter. Reported sales increased 2%, and included a 1% benefit due to currency in the quarter. By region, local currency sales increased 5% in the Americas and 7% in Europe and decreased 8% in Asia / Rest of World. Adjusted operating income amounted to $116.1 million, a 6% increase from the prior-year amount of $109.2 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 $122.8 million, compared with $103.9 million in the prior-year quarter.

Nine Month Results

EPS for the nine month period was $6.35, compared with the prior-year amount of $5.82. Adjusted EPS was $6.78, an increase of 10% over the prior-year amount of $6.19.

Sales for the nine months were $1.695 billion, which is consistent with prior year sales of $1.684 billion in local currency. Reported sales for the period increased 1%, which included a 1% benefit due to currency. By region, local currency sales increased 4% in the Americas and 1% in Europe and decreased 5% in Asia / Rest of World. Adjusted operating income amounted to $307.9 million, a 6% increase from the prior-year amount of $291.1 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 for the nine month period was $237.4 million, compared with $216.0 million in the prior-year period.

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Cost Control Measures

As part of previously announced cost control measures, the Company recorded pre-tax restructuring charges of $5.5 million in the quarter and $13.7 million year to date.

Bill Donnelly Promoted to Executive Vice President

The Company announced the promotion of Bill Donnelly to the position of Executive Vice President. His role in Investor Relations will remain unchanged and he will continue to be responsible for Finance, Supply Chain, Information Technology and the Company's Blue Ocean initiative.  The Company also announced the promotion of Shawn Vadala from Group Controller to Chief Financial Officer, reporting to Mr. Donnelly.

Filliol commented on the organizational change, "As Bill has undertaken a broader role in the organization during recent years, Shawn has assumed increasing levels of responsibility for our Finance function. Today's announcement formalizes an organizational structure that has been effectively implemented over the last several years. We are very pleased to have this team in place for the coming years."

Outlook

The Company stated that there is uncertainty in demand in most of its markets, which makes forecasting difficult. Based on today’s assessment, management anticipates that local currency sales growth in the fourth quarter will be in the range of 2% to 3% and Adjusted EPS in the range of $3.70 to $3.75, an increase of 7% to 8%.

For the full year 2013, local currency sales growth is expected to be approximately 1% and Adjusted EPS in the range of $10.45 to $10.50, an increase of 8% to 9%.

The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in 2014 will be in the range of 3% to 4%. This sales growth will result in Adjusted EPS in the range of $11.35 to $11.55. Using the midpoint of the 2013 Adjusted EPS range, this reflects an increase of 8% to 10%.

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, “We expect market conditions to continue to improve but are cautious on our outlook for next year. In China, we expect market conditions to remain challenging in the coming quarters but are well positioned in this important market for the long term. Globally, we see growth emerging in selected segments and geographies and we are investing to capture these opportunities. In addition, we continue to focus on our margin enhancement programs in pricing, supply chain and in various cost management areas. As a result of these actions, we believe we can generate good earnings growth in 2014. Execution of our strategic initiatives will continue to be a key factor in generating strong and sustainable earnings growth.”

Other Matters

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



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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.








































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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
 
 
September 30, 2013
 
% of sales
 
September 30, 2012
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
591,686

(a)
100.0
 
$
578,553

 
100.0

Cost of sales
273,113

 
46.2
 
270,396

 
46.7

Gross profit
318,573

 
53.8
 
308,157

 
53.3

 
 
 
 
 
 
 
 
 
 
Research and development
29,046

 
4.9
 
27,896

 
4.8

Selling, general and administrative
173,446

 
29.3
 
171,021

 
29.6

Amortization
6,675

 
1.1
 
5,215

 
0.9

Interest expense
5,557

 
0.9
 
5,568

 
1.0

Restructuring charges
5,532

 
0.9
 
3,118

 
0.5

Other charges (income), net
521

 
0.1
 
(266
)
 
0.0

Earnings before taxes
97,796

 
16.6
 
95,605

 
16.5

 
 
 
 
 
 
 
 
 
 
Provision for taxes
23,470

 
4.0
 
23,422

 
4.0

Net earnings
$
74,326

 
12.6
 
$
72,183

 
12.5

 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
2.49

 
 
 
$
2.34

 
 
Weighted average number of common shares
29,818,218

 
 
 
30,846,062

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
2.43

 
 
 
$
2.28

 
 
Weighted average number of common
 
 
 
 
 
 
 
  and common equivalent shares
30,579,954

 
 
 
31,599,081

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales increased 1% as compared to the same period in 2012.
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
 
 
September 30, 2013
 
% of sales
 
September 30, 2012
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
97,796

 
 
 
$
95,605

 
 
Amortization
6,675

 
 
 
5,215

 
 
Interest expense
5,557

 
 
 
5,568

 
 
Restructuring charges
5,532

 
 
 
3,118

 
 
Other charges (income), net
521

 
 
 
(266
)
 
 
Adjusted operating income
$
116,081

(b)
19.6
 
$
109,240

 
18.9

 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating income increased 6% as compared to the same period in 2012.
 
 




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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
Nine Months Ended
 
 
 
 
 
September 30, 2013
 
% of sales
 
September 30, 2012
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,694,719

(a)
100.0
 
$
1,684,236

 
100.0
Cost of sales
788,050

 
46.5
 
799,969

 
47.5
Gross profit
906,669

 
53.5
 
884,267

 
52.5
 
 
 
 
 
 
 
 
 
 
Research and development
85,749

 
5.1
 
84,529

 
5.0
Selling, general and administrative
513,000

 
30.3
 
508,647

 
30.2
Amortization
17,604

 
1.0
 
15,771

 
1.0
Interest expense
16,500

 
1.0
 
17,097

 
1.0
Restructuring charges
13,730

 
0.8
 
11,261

 
0.7
Other charges (income), net
2,281

 
0.1
 
323

 
0.0
Earnings before taxes
257,805

 
15.2
 
246,639

 
14.6
 
 
 
 
 
 
 
 
 
 
Provision for taxes
61,873

 
3.6
 
60,425

 
3.5
Net earnings
$
195,932

 
11.6
 
$
186,214

 
11.1
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
6.52

 
 
 
$
5.97

 
 
Weighted average number of common shares
30,063,021

 
 
 
31,215,212

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
6.35

 
 
 
$
5.82

 
 
Weighted average number of common
 
 
 
 
 
 
 
  and common equivalent shares
30,836,160

 
 
 
32,008,311

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales were flat as compared to the same period in 2012.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
Nine Months Ended
 
 
 
 
 
September 30, 2013
 
% of sales
 
September 30, 2012
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
257,805

 
 
 
$
246,639

 
 
Amortization
17,604

 
 
 
15,771

 
 
Interest expense
16,500

 
 
 
17,097

 
 
Restructuring charges
13,730

 
 
 
11,261

 
 
Other charges (income), net
2,281

 
 
 
323

 
 
Adjusted operating income
$
307,920

(b)
18.2
 
$
291,091

 
17.3
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating income increased 6% as compared to the same period in 2012.
 
 


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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
 
 
 
 
 
September 30, 2013
 
December 31, 2012
 
 
 
 
Cash and cash equivalents
$
92,222

 
$
101,702

Accounts receivable, net
402,708

 
437,390

Inventories
219,178

 
198,939

Other current assets and prepaid expenses
134,767

 
126,889

Total current assets
848,875

 
864,920

 
 
 
 
Property, plant and equipment, net
497,277

 
469,421

Goodwill and other intangible assets, net
566,111

 
569,915

Other non-current assets
231,753

 
213,144

Total assets
$
2,144,016

 
$
2,117,400

 
 
 
 
Short-term borrowings and maturities of long-term debt
$
16,019

 
$
41,600

Trade accounts payable
120,665

 
142,362

Accrued and other current liabilities
402,291

 
378,715

Total current liabilities
538,975

 
562,677

 
 
 
 
Long-term debt
384,871

 
347,131

Other non-current liabilities
372,528

 
380,373

Total liabilities
1,296,374

 
1,290,181

 
 
 
 
Shareholders’ equity
847,642

 
827,219

Total liabilities and shareholders’ equity
$
2,144,016

 
$
2,117,400























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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Cash flow from operating activities:
 
 
 
 
 
 
 
Net earnings
$
74,326

 
$
72,183

 
$
195,932

 
$
186,214

 Adjustments to reconcile net earnings to
 
 
 
 
 
 
 
net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation
8,577

 
8,172

 
26,024

 
24,278

Amortization
6,675

 
5,215

 
17,604

 
15,771

Deferred tax benefit
(2,120
)
 
(2,131
)
 
(7,807
)
 
(6,889
)
Excess tax benefits from share-based payment arrangements
(46
)
 
(162
)
 
(565
)
 
(502
)
Other
3,136

 
3,394

 
9,396

 
10,606

Increase (decrease) in cash resulting from changes in
 
 
 
 
 
 
 
operating assets and liabilities
32,235

 
17,258

 
(3,169
)
 
(13,500
)
Net cash provided by operating activities
122,783

 
103,929

 
237,415

 
215,978

 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
Proceeds from sale of property, plant and equipment
93

 
191

 
208

 
344

Purchase of property, plant and equipment
(20,219
)
 
(21,059
)
 
(57,000
)
 
(64,292
)
Acquisitions
—

 
(557
)
 
(213
)
 
(2,098
)
Net cash used in investing activities
(20,126
)
 
(21,425
)
 
(57,005
)
 
(66,046
)
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from borrowings
170,993

 
213,241

 
382,105

 
294,793

Repayments of borrowings
(232,682
)
 
(257,593
)
 
(369,012
)
 
(384,944
)
Proceeds from exercise of stock options
3,441

 
2,922

 
15,990

 
16,186

Repurchases of common stock
(72,569
)
 
(72,084
)
 
(217,413
)
 
(207,850
)
Excess tax benefits from share-based payment arrangements
46

 
162

 
565

 
502

Debt issuance costs
(281
)
 
—

 
(281
)
 
—

Other financing activities
(399
)
 
(241
)
 
(1,569
)
 
(784
)
Net cash used in financing activities
(131,451
)
 
(113,593
)
 
(189,615
)
 
(282,097
)
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
799

 
1,697

 
(275
)
 
1,938

 
 
 
 
 
 
 
 
Net decrease in cash and cash equivalents
(27,995
)
 
(29,392
)
 
(9,480
)
 
(130,227
)
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
    Beginning of period
120,217

 
134,766

 
101,702

 
235,601

    End of period
$
92,222

 
$
105,374

 
$
92,222

 
$
105,374

 
 
 
 
 
 
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
122,783

 
$
103,929

 
$
237,415

 
$
215,978

Excess tax benefits from share-based payment arrangements
46

 
162

 
565

 
502

Payments in respect of restructuring activities
4,886

 
4,064

 
14,193

 
8,230

Proceeds from sale of property, plant and equipment
93

 
191

 
208

 
344

Purchase of property, plant and equipment
(20,219
)
 
(21,059
)
 
(57,000
)
 
(64,292
)
Free cash flow
$
107,589

 
$
87,287

 
$
195,381

 
$
160,762

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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 September 30, 2013
 
11
%
 
5
%
 
(9
)%
 
2
%
 
 
 
Nine Months Ended September 30, 2013
 
3
%
 
4
%
 
(6
)%
 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Currency Sales Growth
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2013
 
7
%
 
5
%
 
(8
)%
 
1
%
 
 
 
Nine Months Ended September 30, 2013
 
1
%
 
4
%
 
(5
)%
 
0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
 
 
2013
 
2012
 
% Growth
 
2013
 
2012
 
% Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS as reported, diluted
$
2.43

 
$
2.28

 
7%
 
$
6.35

 
$
5.82

 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net of tax
0.14

(a)
0.08

(a)
 
 
0.34

(a)
0.26

(a)
 
Purchased intangible amortization, net of tax
0.03

(b)
0.04

(b)
 
 
0.09

(b)
0.11

(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EPS, diluted
$
2.60

 
$
2.40

 
8%
 
$
6.78

 
$
6.19

 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the EPS impact of restructuring charges of $5.5 million ($4.2 million after tax) and $3.1 million ($2.4 million after tax) for the three months ended September 30, 2013 and 2012, respectively and $13.7 million ($10.4 million after tax) and $11.3 million ($8.5 million after tax) for the nine months ended September 30, 2013 and 2012, respectively, which primarily includes severance costs.
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million and $1.2 million for the three months ended September 30, 2013 and 2012, respectively and $2.7 million and $3.4 million for the nine months ended September 30, 2013 and 2012, respectively.













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