EX-99.1 2 ex-991mtd8xkq12015.htm EXHIBIT 99.1 PRESS RELEASE EX-99.1 MTD 8-K Q1 2015
FOR IMMEDIATE RELEASE
 
Exhibit 99.1


METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2015 RESULTS

- - Solid Local Currency Sales Growth - -
- - Good Earnings Growth - -


COLUMBUS, Ohio, USA - May 7, 2015 - Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2015. Provided below are the highlights:

Sales in local currency increased 5% in the quarter compared with the prior year. Reported sales decreased 3% as currency reduced sales growth by 8% in the quarter.

Net earnings per diluted share as reported (EPS) were $2.19, compared with $1.93 in the first quarter of 2014. Adjusted EPS was $2.25, an increase of 13% over the prior-year amount of $2.00. 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, “Sales growth in the Americas was strong and we continue to perform well in Europe. Demand in our China industrial business was weaker than expected, but growth in our other China businesses and in other regions of Asia / Rest of World was very strong. We had another quarter of good EPS growth driven by our ongoing margin enhancement and cost control initiatives.”

EPS in the quarter was $2.19, compared with the prior-year amount of $1.93. Adjusted EPS was $2.25, an increase of 13% over the prior-year amount of $2.00.

Sales were $535.7 million, a 5% increase in local currency sales, compared with $550.6 million in the prior-year quarter. Reported sales decreased 3% as currency reduced sales growth by 8% in the quarter. By region, local currency sales increased 7% in the Americas, 2% in Europe and 5% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $97.3 million, a 7% increase from the prior-year amount of $91.0 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 $58.6 million, compared with $42.8 million in the prior-year quarter.

Outlook

The Company updated its outlook for 2015 and noted that forecasting remains challenging due to continued uncertainty in demand in some markets and greater volatility in foreign exchange rates. Based on today’s assessment, management anticipates that local currency sales growth in 2015 will more likely be at the lower end of its previously provided guidance of 4% to 5%. Adjusted EPS is forecasted to be in the range of $12.75 to $12.90, an increase of 9% to 10%. This compares to previous guidance of Adjusted EPS in the range of $12.70 to $12.90.

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in the second quarter of 2015 will be approximately 4%. This sales growth is expected to result in Adjusted EPS in the range of $2.75 to $2.80, an increase of 7% to 9% from the prior-year quarter.

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 remain cautious on the global economy, in particular on the timing of the recovery in our Chinese industrial business. Globally, we continue to believe we are strongly positioned to generate above market growth in 2015 and beyond. We are benefitting from our robust product pipeline, innovative sales and marketing programs and front-end resources we are adding via our field turbo program. We also remain focused on our margin enhancement initiatives and believe we can continue to achieve good cash flow generation.”

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 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
 
 
 
 
 
March 31, 2015
 
% of sales
 
March 31, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
535,701

(a)
100.0

 
$
550,621

 
100.0
Cost of sales
236,896

 
44.2

 
257,980

 
46.9
Gross profit
298,805

 
55.8

 
292,641

 
53.1
 
 
 
 
 
 
 
 
 
 
Research and development
28,461

 
5.3

 
29,497

 
5.4
Selling, general and administrative
173,038

 
32.3

 
172,191

 
31.3
Amortization
7,528

 
1.4

 
7,094

 
1.3
Interest expense
6,725

 
1.3

 
5,666

 
1.0
Restructuring charges
907

 
0.2

 
1,492

 
0.3
Other charges (income), net
(817
)
 
(0.2
)
 
317

 
Earnings before taxes
82,963

 
15.5

 
76,384

 
13.8
 
 
 
 
 
 
 
 
 
 
Provision for taxes
19,912

 
3.7

 
18,333

 
3.3
Net earnings
$
63,051

 
11.8

 
$
58,051

 
10.5
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
2.24

 
 
 
$
1.98

 
 
Weighted average number of common shares
28,115,220

 
 
 
29,370,232

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
2.19

 
 
 
$
1.93

 
 
Weighted average number of common
 
 
 
 
 
 
 
  and common equivalent shares
28,762,935

 
 
 
30,088,245

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a) Local currency sales increased 5% as compared to the same period in 2014.
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
Three months ended
 
 
 
 
 
March 31, 2015
 
% of sales
 
March 31, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
82,963

 
 
 
$
76,384

 
 
Amortization
7,528

 
 
 
7,094

 
 
Interest expense
6,725

 
 
 
5,666

 
 
Restructuring charges
907

 
 
 
1,492

 
 
Other charges (income), net
(817
)
 
 
 
317

 
 
Adjusted operating income
$
97,306

(b)
18.2

 
$
90,953

 
16.3
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b) Adjusted operating income increased 7% as compared to the same period in 2014.


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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
 
 
 
 
 
March 31, 2015
 
December 31, 2014
 
 
 
 
Cash and cash equivalents
$
75,359

 
$
85,263

Accounts receivable, net
382,385

 
435,648

Inventories
218,663

 
204,531

Other current assets and prepaid expenses
138,443

 
123,988

Total current assets
814,850

 
849,430

 
 
 
 
Property, plant and equipment, net
510,518

 
511,462

Goodwill and other intangible assets, net
548,180

 
556,869

Other non-current assets
102,117

 
91,349

Total assets
$
1,975,665

 
$
2,009,110

 
 
 
 
Short-term borrowings and maturities of long-term debt
$
114,693

 
$
116,164

Trade accounts payable
131,667

 
145,896

Accrued and other current liabilities
391,343

 
416,830

Total current liabilities
637,703

 
678,890

 
 
 
 
Long-term debt
409,179

 
335,790

Other non-current liabilities
262,655

 
274,835

Total liabilities
1,309,537

 
1,289,515

 
 
 
 
Shareholders’ equity
666,128

 
719,595

Total liabilities and shareholders’ equity
$
1,975,665

 
$
2,009,110



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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
Three months ended
 
March 31,
 
2015
 
2014
Cash flow from operating activities:
 
 
 
    Net earnings
$
63,051

 
$
58,051

    Adjustments to reconcile net earnings to
 
 
 
      net cash provided by operating activities:
 
 
 
Depreciation
8,301

 
8,420

Amortization
7,528

 
7,094

Deferred tax provision
(1,670
)
 
(695
)
Excess tax benefits from share-based payment arrangements
(441
)
 
(4,495
)
Other
3,480

 
3,238

Decrease in cash resulting from changes in
 
 
 
  operating assets and liabilities
(21,653
)
 
(28,768
)
                Net cash provided by operating activities
58,596

 
42,845

 
 
 
 
Cash flows from investing activities:
 
 
 
    Proceeds from sale of property, plant and equipment
42

 
189

    Purchase of property, plant and equipment
(18,539
)
 
(16,716
)
Acquisition
(200
)
 
(391
)
    Net hedging settlement on intercompany loans
(8,384
)
 
(235
)
                Net cash used in investing activities
(27,081
)
 
(17,153
)
 
 
 
 
Cash flows from financing activities:
 
 
 
    Proceeds from borrowings
150,996

 
145,879

    Repayments of borrowings
(77,486
)
 
(93,229
)
    Proceeds from exercise of stock options
9,546

 
3,450

    Excess tax benefits from share-based payment arrangements
441

 
4,495

    Repurchases of common stock
(123,745
)
 
(82,498
)
                Net cash used in financing activities
(40,248
)
 
(21,903
)
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
(1,171
)
 
141

 
 
 
 
Net decrease in cash and cash equivalents
(9,904
)
 
3,930

Cash and cash equivalents:
 
 
 
    Beginning of period
85,263

 
111,874

    End of period
$
75,359

 
$
115,804

 
 
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
 
 
 
Net cash provided by operating activities
$
58,596

 
$
42,845

    Excess tax benefits from share-based payment arrangements
441

 
4,495

    Payments in respect of restructuring activities
806

 
3,141

    Proceeds from sale of property, plant and equipment
42

 
189

    Purchase of property, plant and equipment
(18,539
)
 
(16,716
)
Free cash flow
$
41,346

 
$
33,954


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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, 2015
 
(14
)%
 
6
%
 
1
%
 
(3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Currency Sales Growth
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
2
 %
 
7
%
 
5
%
 
5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
 
 
 
 
March 31,
 
 
 
 
 
 
 
2015
 
2014
 
% Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS as reported, diluted
 
 
$
2.19

 
$
1.93

 
13%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net of tax
 
 
0.02

(a)
0.04

(a)
 
 
 
 
Purchased intangible amortization, net of tax
 
 
0.04

(b)
0.03

(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EPS, diluted
 
 
$
2.25

 
$
2.00

 
13%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
(a)
Represents the EPS impact of restructuring charges of $0.9 million ($0.7 million after tax) and $1.5 million ($1.1 million after tax) for the three months ended March 31, 2015 and 2014, respectively, which primarily include severance costs.
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.0 million and $0.9 million for the three month periods ended March 31, 2015 and 2014.

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