EX-99.1 2 ex-991mtd8xk2014q1.htm EXHIBIT 99.1 PRESS RELEASE EX-99.1 MTD 8-K 2014 Q1
FOR IMMEDIATE RELEASE
 
Exhibit 99.1


METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2014 RESULTS

- - Solid Earnings Growth Despite Currency Headwinds- -


COLUMBUS, Ohio, USA - May 8, 2014 - Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2014. Provided below are the highlights:

Sales in local currency increased by 4% in the quarter compared with the prior year. Reported sales increased 5% which included a 1% benefit due to currency.

Net earnings per diluted share as reported (EPS) were $1.93, compared with $1.69 in the first quarter of 2013. Adjusted EPS was $2.00, an increase of 9% over the prior-year amount of $1.84. 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.

First Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, “Demand was very good in Europe, and growth in the Americas was solid. In China, our sales performance improved, but it has not yet resulted in year over year sales growth. In other regions of Asia / Rest of the World, growth was good. Despite currency headwinds, we generated solid EPS growth as we continue to benefit from our various margin and cost control initiatives.”

EPS in the quarter was $1.93, compared with the prior-year amount of $1.69. Adjusted EPS was $2.00, an increase of 9% over the prior-year amount of $1.84.

Sales were $550.6 million, a 4% increase in local currency sales, compared with $524.4 million in the prior-year quarter. Reported sales increased 5%, and included a 1% benefit due to currency in the quarter. By region, local currency sales increased 9% in Europe, 3% in the Americas and 1% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $91.0 million, a 6% increase from the prior-year amount of $85.4 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 $42.8 million, compared with $23.7 million in the prior-year quarter.

Outlook

The Company updated its outlook for 2014 and noted that uncertainty in demand in some markets makes forecasting challenging. Based on today’s assessment, management anticipates that local currency sales growth in 2014 will be approximately 4% and Adjusted EPS in the range of $11.45 to $11.60, an increase of 8% to 10%. This compares to previous guidance of Adjusted EPS in the range of $11.40 to $11.60.

The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in the second quarter of 2014 will be in the range of 3% to 4%. This sales growth will result in Adjusted EPS in the range of $2.50 to $2.55, an increase of 6% to 9%.

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.


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Conclusion

Filliol concluded, “We have become more optimistic for the developed world as market conditions appear to be improving. In the short term, conditions will remain challenging in emerging markets, particularly in China, although we expect that these regions will regain momentum and again become an important contributor to growth. Globally we are capitalizing on our sales and marketing programs and new product launches. We are focused on execution and are convinced we can continue to enhance our market position.”

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday May 8) 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 INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
Three months ended
 
 
 
Three months ended
 
 
 
 
 
March 31, 2014
 
% of sales
 
March 31, 2013
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
550,621

(a)
100.0
 
$
524,355

 
100.0
Cost of sales
257,980

 
46.9
 
245,197

 
46.8
Gross profit
292,641

 
53.1
 
279,158

 
53.2
 
 
 
 
 
 
 
 
 
 
Research and development
29,497

 
5.4
 
27,700

 
5.3
Selling, general and administrative
172,191

 
31.3
 
166,025

 
31.7
Amortization
7,094

 
1.3
 
5,122

 
1.0
Interest expense
5,666

 
1.0
 
5,400

 
1.0
Restructuring charges
1,492

 
0.3
 
5,002

 
1.0
Other charges (income), net
317

 
 
773

 
Earnings before taxes
76,384

 
13.8
 
69,136

 
13.2
 
 
 
 
 
 
 
 
 
 
Provision for taxes
18,333

 
3.3
 
16,592

 
3.2
Net earnings
$
58,051

 
10.5
 
$
52,544

 
10.0
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
1.98

 
 
 
$
1.73

 
 
Weighted average number of common shares
29,370,232

 
 
 
30,299,569

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
1.93

 
 
 
$
1.69

 
 
Weighted average number of common
 
 
 
 
 
 
 
  and common equivalent shares
30,088,245

 
 
 
31,101,979

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a) Local currency sales increased 4% as compared to the same period in 2013.
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
Three months ended
 
 
 
 
 
March 31, 2014
 
% of sales
 
March 31, 2013
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
76,384

 
 
 
$
69,136

 
 
Amortization
7,094

 
 
 
5,122

 
 
Interest expense
5,666

 
 
 
5,400

 
 
Restructuring charges
1,492

 
 
 
5,002

 
 
Other charges (income), net
317

 
 
 
773

 
 
Adjusted operating income
$
90,953

(b)
16.5
 
$
85,433

 
16.3
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b) Adjusted operating income increased 6% as compared to the same period in 2013.


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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
 
 
 
 
 
March 31, 2014
 
December 31, 2013
 
 
 
 
Cash and cash equivalents
$
115,804

 
$
111,874

Accounts receivable, net
425,161

 
466,703

Inventories
224,420

 
210,414

Other current assets and prepaid expenses
124,720

 
124,996

Total current assets
890,105

 
913,987

 
 
 
 
Property, plant and equipment, net
517,686

 
514,438

Goodwill and other intangible assets, net
569,861

 
570,260

Other non-current assets
157,485

 
154,134

Total assets
$
2,135,137

 
$
2,152,819

 
 
 
 
Short-term borrowings and maturities of long-term debt
$
16,255

 
$
17,067

Trade accounts payable
119,128

 
145,993

Accrued and other current liabilities
373,812

 
401,128

Total current liabilities
509,195

 
564,188

 
 
 
 
Long-term debt
449,582

 
395,960

Other non-current liabilities
252,756

 
257,619

Total liabilities
1,211,533

 
1,217,767

 
 
 
 
Shareholders’ equity
923,604

 
935,052

Total liabilities and shareholders’ equity
$
2,135,137

 
$
2,152,819



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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
Three months ended
 
March 31,
 
2014
 
2013
Cash flow from operating activities:
 
 
 
    Net earnings
$
58,051

 
$
52,544

    Adjustments to reconcile net earnings to
 
 
 
      net cash provided by operating activities:
 
 
 
Depreciation
8,420

 
8,881

Amortization
7,094

 
5,122

Deferred tax provision
(695
)
 
(3,354
)
Excess tax benefits from share-based payment arrangements
(4,495
)
 
(256
)
Other
3,238

 
2,831

Decrease in cash resulting from changes in
 
 
 
  operating assets and liabilities
(28,768
)
 
(42,096
)
                Net cash provided by operating activities
42,845

 
23,672

 
 
 
 
Cash flows from investing activities:
 
 
 
    Proceeds from sale of property, plant and equipment
189

 
36

    Purchase of property, plant and equipment
(16,716
)
 
(19,018
)
Acquisition
(391
)
 

                Net cash used in investing activities
(16,918
)
 
(18,982
)
 
 
 
 
Cash flows from financing activities:
 
 
 
    Proceeds from borrowings
145,879

 
141,959

    Repayments of borrowings
(93,229
)
 
(89,334
)
    Proceeds from exercise of stock options
3,450

 
7,069

    Excess tax benefits from share-based payment arrangements
4,495

 
256

    Repurchases of common stock
(82,498
)
 
(72,300
)
    Other financing activities
(235
)
 
(483
)
                Net cash used in financing activities
(22,138
)
 
(12,833
)
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
141

 
(350
)
 
 
 
 
Net decrease in cash and cash equivalents
3,930

 
(8,493
)
Cash and cash equivalents:
 
 
 
    Beginning of period
111,874

 
101,702

    End of period
$
115,804

 
$
93,209

 
 
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
 
 
 
Net cash provided by operating activities
$
42,845

 
$
23,672

    Excess tax benefits from share-based payment arrangements
4,495

 
256

    Payments in respect of restructuring activities
3,141

 
4,646

    Proceeds from sale of property, plant and equipment
189

 
36

    Purchase of property, plant and equipment
(16,716
)
 
(19,018
)
Free cash flow
$
33,954

 
$
9,592


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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 March 31, 2014
 
12
%
 
2
%
 
%
 
5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Currency Sales Growth
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2014
 
9
%
 
3
%
 
1
%
 
4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
 
 
 
 
March 31,
 
 
 
 
 
 
 
2014
 
2013
 
% Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS as reported, diluted
 
 
$
1.93

 
$
1.69

 
14%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net of tax
 
 
0.04

(a)
0.12

(a)
 
 
 
 
Purchased intangible amortization, net of tax
 
 
0.03

(b)
0.03

(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EPS, diluted
 
 
$
2.00

 
$
1.84

 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
(a)
Represents the EPS impact of restructuring charges of $1.5 million ($1.1 million after tax) and $5.0 million ($3.8 million after tax) for the three months ended March 31, 2014 and 2013, respectively, which primarily include severance costs.
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million for both the three month periods ended March 31, 2014 and 2013.

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