EX-99.1 2 ex-991mtd8xkq32015.htm EXHIBIT 99.1 PRESS RELEASE Q3 2015 Exhibit
FOR IMMEDIATE RELEASE
 
Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS
THIRD QUARTER 2015 RESULTS

- - Strong Margin Expansion - -


COLUMBUS, Ohio, USA - November 5, 2015 - Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2015. Provided below are the highlights:

Sales in local currency increased 3% in the quarter compared with the prior year. Reported sales decreased 4% as currency reduced sales growth by 7% in the quarter.

Net earnings per diluted share as reported (EPS) were $3.16, compared with $2.89 in the prior- year period. Adjusted EPS was $3.26, an increase of 11% over the prior-year amount of $2.95. 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, “Sales growth in the Americas was very strong with broad-based growth in most product lines. Europe came in as expected and we continue to execute well in this region. We continued to experience sales declines in China, Russia and Brazil, however our other emerging markets businesses performed well in the quarter. We had very good margin expansion in the quarter and, despite currency headwinds, achieved solid EPS growth.”

EPS in the quarter was $3.16, compared with the prior-year amount of $2.89. Adjusted EPS was $3.26, an increase of 11% over the prior-year amount of $2.95.

Sales were $604.2 million, a 3% increase in local currency sales, compared with $629.1 million in the prior-year quarter. Reported sales decreased 4% as currency reduced sales growth by 7% in the quarter. By region, local currency sales increased 10% in the Americas, 1% in Europe and declined 1% in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $134.3 million, a 6% increase from the prior-year amount of $126.7 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 $126.0 million, compared with $127.3 million in the prior-year quarter.

Nine Month Results
EPS for the nine months was $8.07, compared with the prior-year amount of $7.30. Adjusted EPS was $8.31, an increase of 11% over the prior-year amount of $7.51.

Sales were $1.722 billion, a 4% increase in local currency sales, compared with $1.789 billion in the prior-year period. Reported sales decreased 4% as currency reduced sales growth by 8% in the period. By region, local currency sales increased 7% in the Americas, 3% in Europe and 1% in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $349.9 million, a 6% increase from the prior-year amount of $330.6 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 $289.8 million, compared with $278.2 million in the prior-year period.






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Share Repurchase Authorization

The Company has a $3.0 billion stock repurchase program of which $2.9 billion has been utilized. The Company announced that the Board of Directors authorized an additional $1.5 billion to the share repurchase program. Any amount remaining under the existing program will be incorporated into the new authorization.  Filliol commented, “The additional authorization allows us to continue the share repurchase program which has provided strong returns for our shareholders over many years.  We are confident in our future growth prospects and our balance sheet and cash flow generation remain very strong.” The Company expects the additional authorization will be utilized over the next several years.  The Company added that the repurchases will be made through open market transactions, and the amount and timing will depend on business and market conditions, stock price, trading restrictions, the level of acquisition activity and other factors. 

Outlook

The Company updated its outlook and noted that forecasting remains challenging. In particular, weak demand in Brazil, Russia and China remains and the timing of a recovery is uncertain. Weak economic activity in those markets may also impact demand in other markets. Foreign exchange rates also represent a headwind and greater volatility in rates may continue.

Based on today’s assessment, management anticipates that local currency sales growth in the fourth quarter 2015 will be approximately 2% and Adjusted EPS is forecasted to be in the range of $4.58 to $4.63, an increase of 8% to 9%.

For the full year 2015, local currency sales growth is expected to be approximately 3% and Adjusted EPS in the range of $12.85 to $12.90, an increase of approximately 10%. This compares to previous guidance of Adjusted EPS of $12.75 to $12.90.

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2016 will be in the range of 3% to 4%. This sales growth is expected to result in Adjusted EPS in the range of $14.10 to $14.30, an increase of 9% to 11%.

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 remain cautious on China, Brazil and Russia as market conditions are challenging and a recovery is not yet visible. These countries represent less than 20% of our total sales and our focus for those markets is to protect our operating margins and ensure our resources are targeted to long-term growth opportunities. Our business in the developed world and in other emerging markets is performing well. We are capitalizing on our strong product pipeline, best-in-class sales and marketing programs and our investment in additional field resources. Our margin enhancement and productivity initiatives are well on track and allow us to make these investments despite weak demand in the previously-mentioned countries and adverse foreign exchange rates.”

Other Matters
The Company will host a conference call to discuss its quarterly results today (Thursday, November 5) 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-

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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, 2015
 
% of sales
 
September 30, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
604,154

(a)
100.0
 
$
629,100

 
100.0
Cost of sales
264,625

 
43.8
 
285,549

 
45.4
Gross profit
339,529

 
56.2
 
343,551

 
54.6
 
 
 
 
 
 
 
 
 
 
Research and development
29,711

 
4.9
 
30,352

 
4.8
Selling, general and administrative
175,546

 
29.1
 
186,499

 
29.6
Amortization
7,767

 
1.3
 
7,198

 
1.1
Interest expense
7,029

 
1.1
 
5,991

 
1.0
Restructuring charges
2,561

 
0.4
 
1,050

 
0.2
Other charges (income), net
(8
)
 
(0.0)
 
625

 
0.1
Earnings before taxes
116,923

 
19.4
 
111,836

 
17.8
 
 
 
 
 
 
 
 
 
 
Provision for taxes
28,062

 
4.7
 
26,840

 
4.3
Net earnings
$
88,861

 
14.7
 
$
84,996

 
13.5
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
3.23

 
 
 
$
2.96

 
 
Weighted average number of common shares
27,547,734

 
 
 
28,732,152

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
3.16

 
 
 
$
2.89

 
 
Weighted average number of common and common equivalent shares
28,113,287

 
 
 
29,408,614

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales increased 3% as compared to the same period in 2014.
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
 
 
September 30, 2015
 
% of sales
 
September 30, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
116,923

 
 
 
$
111,836

 
 
Amortization
7,767

 
 
 
7,198

 
 
Interest expense
7,029

 
 
 
5,991

 
 
Restructuring charges
2,561

 
 
 
1,050

 
 
Other charges (income), net
(8
)
 
 
 
625

 
 
Adjusted operating income
$
134,272

(b)
22.2
 
$
126,700

 
20.1
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating income increased 6% as compared to the same period in 2014.
 
 






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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, 2015
 
% of sales
 
September 30, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,721,912

(a)
100.0
 
$
1,788,555

 
100.0
Cost of sales
760,666

 
44.2
 
824,187

 
46.1
Gross profit
961,246

 
55.8
 
964,368

 
53.9
 
 
 
 
 
 
 
 
 
 
Research and development
87,966

 
5.1
 
91,974

 
5.1
Selling, general and administrative
523,392

 
30.4
 
541,793

 
30.3
Amortization
22,929

 
1.3
 
21,575

 
1.2
Interest expense
20,696

 
1.2
 
17,613

 
1.0
Restructuring charges
5,188

 
0.3
 
4,447

 
0.2
Other charges (income), net
(858
)
 
(0.0)
 
1,348

 
0.1
Earnings before taxes
301,933

 
17.5
 
285,618

 
16.0
 
 
 
 
 
 
 
 
 
 
Provision for taxes
72,464

 
4.2
 
68,549

 
3.9
Net earnings
$
229,469

 
13.3
 
$
217,069

 
12.1
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
8.24

 
 
 
$
7.47

 
 
Weighted average number of common shares
27,833,541

 
 
 
29,056,663

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
8.07

 
 
 
$
7.30

 
 
Weighted average number of common and common equivalent shares
28,443,478

 
 
 
29,747,321

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales increased 4% as compared to the same period in 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
Nine Months Ended
 
 
 
 
 
September 30, 2015
 
% of sales
 
September 30, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
301,933

 
 
 
$
285,618

 
 
Amortization
22,929

 
 
 
21,575

 
 
Interest expense
20,696

 
 
 
17,613

 
 
Restructuring charges
5,188

 
 
 
4,447

 
 
Other charges (income), net
(858
)
 
 
 
1,348

 
 
Adjusted operating income
$
349,888

(b)
20.3
 
$
330,601

 
18.5
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating income increased 6% as compared to the same period in 2014.
 
 



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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
 
 
 
 
 
September 30, 2015
 
December 31, 2014
 
 
 
 
Cash and cash equivalents
$
123,299

 
$
85,263

Accounts receivable, net
390,540

 
435,648

Inventories
225,542

 
204,531

Other current assets and prepaid expenses
128,934

 
123,988

Total current assets
868,315

 
849,430

 
 
 
 
Property, plant and equipment, net
513,568

 
511,462

Goodwill and other intangible assets, net
562,697

 
556,869

Other non-current assets
108,966

 
91,349

Total assets
$
2,053,546

 
$
2,009,110

 
 
 
 
Short-term borrowings and maturities of long-term debt
$
21,061

 
$
116,164

Trade accounts payable
136,565

 
145,896

Accrued and other current liabilities
435,789

 
416,830

Total current liabilities
593,415

 
678,890

 
 
 
 
Long-term debt
601,731

 
335,790

Other non-current liabilities
272,048

 
274,835

Total liabilities
1,467,194

 
1,289,515

 
 
 
 
Shareholders’ equity
586,352

 
719,595

Total liabilities and shareholders’ equity
$
2,053,546

 
$
2,009,110

























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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,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Cash flow from operating activities:
 
 
 
 
 
 
 
Net earnings
$
88,861

 
$
84,996

 
$
229,469

 
$
217,069

 Adjustments to reconcile net earnings to
 
 
 
 
 
 
 
net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation
8,320

 
8,595

 
24,978

 
25,469

Amortization
7,767

 
7,198

 
22,929

 
21,575

Deferred tax benefit
(564
)
 
(2,660
)
 
(3,245
)
 
(6,102
)
Excess tax benefits from share-based payment arrangements
(140
)
 
(890
)
 
(1,418
)
 
(10,459
)
Other
3,443

 
3,306

 
10,513

 
9,883

Increase (decrease) in cash resulting from changes in
 
 
 
 
 
 
 
operating assets and liabilities
18,354

 
26,716

 
6,600

 
20,803

Net cash provided by operating activities
126,041

 
127,261

 
289,826

 
278,238

 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
Proceeds from sale of property, plant and equipment
154

 
137

 
281

 
433

Purchase of property, plant and equipment
(20,833
)
 
(24,288
)
 
(56,756
)
 
(61,408
)
Acquisitions
(10,669
)
 
(130
)
 
(10,969
)
 
(3,385
)
Net hedging settlements on intercompany loans
7,248

 
236

 
(5,563
)
 
182

Net cash used in investing activities
(24,100
)
 
(24,045
)
 
(73,007
)
 
(64,178
)
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from borrowings
56,552

 
202,959

 
550,002

 
512,977

Repayments of borrowings
(60,968
)
 
(181,918
)
 
(374,891
)
 
(438,529
)
Proceeds from exercise of stock options
4,096

 
5,013

 
21,834

 
14,045

Excess tax benefits from share-based payment arrangements
140

 
890

 
1,418

 
10,459

Repurchases of common stock
(123,750
)
 
(112,498
)
 
(371,223
)
 
(296,476
)
Acquisitions contingent consideration paid
(150
)
 

 
(572
)
 

Debt issuance costs

 
(914
)
 
(432
)
 
(941
)
Net cash used in financing activities
(124,080
)
 
(86,468
)
 
(173,864
)
 
(198,465
)
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
(3,871
)
 
(1,449
)
 
(4,919
)
 
(1,158
)
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(26,010
)
 
15,299

 
38,036

 
14,437

 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
    Beginning of period
149,309

 
111,012

 
85,263

 
111,874

    End of period
$
123,299

 
$
126,311

 
$
123,299

 
$
126,311

 
 
 
 
 
 
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
126,041

 
$
127,261

 
$
289,826

 
$
278,238

Excess tax benefits from share-based payment arrangements
140

 
890

 
1,418

 
10,459

Payments in respect of restructuring activities
1,580

 
2,019

 
3,602

 
7,977

Proceeds from sale of property, plant and equipment
154

 
137

 
281

 
433

Purchase of property, plant and equipment
(20,833
)
 
(24,288
)
 
(56,756
)
 
(61,408
)
Free cash flow
$
107,082

 
$
106,019

 
$
238,371

 
$
235,699


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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 (Decrease)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
(13
)%
 
8
%
 
(8
)%
 
(4
)%
 
 
 
Nine Months Ended September 30, 2015
 
(13
)%
 
6
%
 
(4
)%
 
(4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Currency Sales Growth (Decrease)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
1
 %
 
10
%
 
(1
)%
 
3
 %
 
 
 
Nine Months Ended September 30, 2015
 
3
 %
 
7
%
 
1
 %
 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
% Growth
 
2015
 
2014
 
% Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS as reported, diluted
$
3.16

 
$
2.89

 
9%
 
$
8.07

 
$
7.30

 
11%
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net of tax
0.07

(a)
0.03

(a)
 
 
0.14

(a)
0.11

(a)
 
Purchased intangible amortization, net of tax
0.03

(b)
0.03

(b)
 
 
0.10

(b)
0.10

(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EPS, diluted
$
3.26

 
$
2.95

 
11%
 
$
8.31

 
$
7.51

 
11%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the EPS impact of restructuring charges of $2.6 million ($1.9 million after tax) and $1.1 million ($0.8 million after tax) for the three months ended September 30, 2015 and 2014, respectively and $5.2 million ($3.9 million after tax) and $4.4 million ($3.4 million after tax) for the nine months ended September 30, 2015 and 2014, respectively, which primarily include employee related costs.
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million and $1.0 million for the three months ended September 30, 2015 and 2014, respectively and $2.9 million and $2.8 million for the nine months ended September 30, 2015 and 2014, respectively.














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