EX-99.1 2 ex-991mtd8xkq42015.htm EXHIBIT 99.1 PRESS RELEASE Q4 2015 Exhibit
FOR IMMEDIATE RELEASE
 
Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FOURTH QUARTER 2015 RESULTS

- - Strong Margin Expansion - -
- - Good Execution - -


COLUMBUS, Ohio, USA - February 4, 2016 - Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth 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 3% as currency reduced sales growth by 6% in the quarter.

Net earnings per diluted share as reported (EPS) were $4.44, compared with $4.17 in the prior- year period. Adjusted EPS was $4.65, an increase of 10% over the prior-year amount of $4.24. 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.

Fourth Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, “Market conditions throughout the world developed as expected and we continued to execute very well. Sales growth in the Americas was strong with broad-based growth in most product lines. Europe had good growth in laboratory instruments. Sales declined in China and Brazil, while sales growth in our other emerging markets was solid overall. We had strong margin expansion in the quarter and, despite currency headwinds, achieved solid EPS growth. Finally, we had good cash flow generation in the quarter and for the full year.”

EPS in the quarter was $4.44, compared with the prior-year amount of $4.17. Adjusted EPS was $4.65, an increase of 10% over the prior-year amount of $4.24.

Sales were $673.5 million, a 3% increase in local currency sales, compared with $697.4 million in the prior-year quarter. Reported sales decreased 3% as currency reduced sales growth by 6% in the quarter. By region, local currency sales increased 9% in the Americas, were flat in Europe and declined 2% in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $182.2 million, a 3% increase from the prior-year amount of $176.3 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 $137.0 million, compared with $140.7 million in the prior-year quarter.

Full Year Results
EPS in 2015 was $12.48, compared with the prior-year amount of $11.44. Adjusted EPS was $12.92, an increase of 10% over the prior-year amount of $11.72.

Sales were $2.395 billion, a 3% increase in local currency sales, compared with $2.486 billion in the prior-year period. Reported sales decreased 4% as currency reduced sales growth by 7% in the period. By region, local currency sales increased 8% in the Americas, 2% in Europe and were flat in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $532.1 million, a 5% increase from the prior-year amount of $506.9 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 $426.9 million, compared with $418.9 million in the prior year.


-1-


Outlook

The Company updated its outlook for 2016 and noted that forecasting remains challenging. In particular, weak demand in certain emerging markets remains.

Based on today’s assessment, management anticipates that local currency sales growth in 2016 will be in the range of 3% to 4% and Adjusted EPS is forecasted to be in the range of $14.10 to $14.30, an increase of 9% to 11%.

For the first quarter 2016, management anticipates that local currency sales growth will be approximately 4% and Adjusted EPS is forecasted to be in the range of $2.40 to $2.45, an increase of 7% 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.

Conclusion

Filliol concluded, "Despite considerable market weakness in China, Brazil and Russia and significant currency headwinds, we achieved good financial results in the quarter and for full year 2015. Strong execution of our margin enhancement and productivity improvement programs were key contributors to our performance. We continue to gain share through expanded field resources, exciting new products and proven sales and marketing initiatives. Equally important, we are making investments for long-term growth. While we remain cautious on the global economy, we believe we can continue to generate above market growth in 2016 and beyond.”

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


-2-


METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
 
 
December 31, 2015
 
% of sales
 
December 31, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
673,535

(a)
100.0
 
$
697,428

 
100.0
Cost of sales
282,788

 
42.0
 
303,046

 
43.5
Gross profit
390,747

 
58.0
 
394,382

 
56.5
 
 
 
 
 
 
 
 
 
 
Research and development
31,110

 
4.6
 
31,323

 
4.5
Selling, general and administrative
177,418

 
26.3
 
186,789

 
26.8
Amortization
8,022

 
1.2
 
7,610

 
1.1
Interest expense
6,755

 
1.0
 
6,924

 
1.0
Restructuring charges
5,960

 
0.9
 
1,468

 
0.2
Other charges (income), net
(9
)
 
0.0
 
882

 
0.0
Earnings before taxes
161,491

 
24.0
 
159,386

 
22.9
 
 
 
 
 
 
 
 
 
 
Provision for taxes
38,140

 
5.7
 
38,214

 
5.5
Net earnings
$
123,351

 
18.3
 
$
121,172

 
17.4
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
4.53

 
 
 
$
4.27

 
 
Weighted average number of common shares
27,228,026

 
 
 
28,398,579

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
4.44

 
 
 
$
4.17

 
 
Weighted average number of common and common equivalent shares
27,755,045

 
 
 
29,045,269

 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
December 31, 2015
 
% of sales
 
December 31, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
161,491

 
 
 
$
159,386

 
 
Amortization
8,022

 
 
 
7,610

 
 
Interest expense
6,755

 
 
 
6,924

 
 
Restructuring charges
5,960

 
 
 
1,468

 
 
Other charges (income), net
(9
)
 
 
 
882

 
 
Adjusted operating income
$
182,219

(b)
27.1
 
$
176,270

 
25.3
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating income increased 3% as compared to the same period in 2014.
 
 






-3-



METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
 
Twelve Months Ended
 
 
 
 
 
December 31, 2015
 
% of sales
 
December 31, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
2,395,447

(a)
100.0

 
$
2,485,983

 
100.0
Cost of sales
1,043,454

 
43.6

 
1,127,233

 
45.3
Gross profit
1,351,993

 
56.4

 
1,358,750

 
54.7
 
 
 
 
 
 
 
 
 
 
Research and development
119,076

 
5.0

 
123,297

 
5.0
Selling, general and administrative
700,810

 
29.3

 
728,582

 
29.3
Amortization
30,951

 
1.3

 
29,185

 
1.2
Interest expense
27,451

 
1.1

 
24,537

 
1.0
Restructuring charges
11,148

 
0.5

 
5,915

 
0.2
Other charges (income), net
(867
)
 
(0.1
)
 
2,230

 
0.1
Earnings before taxes
463,424


19.3

 
445,004

 
17.9
 
 
 
 
 
 
 
 
 
 
Provision for taxes
110,604

 
4.6

 
106,763

 
4.3
Net earnings
$
352,820

 
14.7

 
$
338,241

 
13.6
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
12.75

 
 
 
$
11.71

 
 
Weighted average number of common shares
27,680,918

 
 
 
28,890,771

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
12.48

 
 
 
$
11.44

 
 
Weighted average number of common and common equivalent shares
28,269,615

 
 
 
29,571,308

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales increased 3% as compared to the same period in 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
 
Twelve Months Ended
 
 
 
 
 
December 31, 2015
 
% of sales
 
December 31, 2014
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
463,424

 
 
 
$
445,004

 
 
Amortization
30,951

 
 
 
29,185

 
 
Interest expense
27,451

 
 
 
24,537

 
 
Restructuring charges
11,148

 
 
 
5,915

 
 
Other charges (income), net
(867
)
 
 
 
2,230

 
 
Adjusted operating income
$
532,107

(b)
22.2

 
$
506,871

 
20.4
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating income increased 5% as compared to the same period in 2014.
 
 



-4-


METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
 
 
 
 
 
December 31, 2015
 
December 31, 2014
 
 
 
 
Cash and cash equivalents
$
98,887

 
$
85,263

Accounts receivable, net
411,420

 
435,648

Inventories
214,383

 
204,531

Other current assets and prepaid expenses
138,125

 
123,988

Total current assets
862,815

 
849,430

 
 
 
 
Property, plant and equipment, net
517,229

 
511,462

Goodwill and other intangible assets, net
561,536

 
556,869

Other non-current assets
76,905

 
91,349

Total assets
$
2,018,485

 
$
2,009,110

 
 
 
 
Short-term borrowings and maturities of long-term debt
$
14,488

 
$
116,164

Trade accounts payable
142,075

 
145,896

Accrued and other current liabilities
438,564

 
416,830

Total current liabilities
595,127

 
678,890

 
 
 
 
Long-term debt
576,984

 
335,790

Other non-current liabilities
265,917

 
274,835

Total liabilities
1,438,028

 
1,289,515

 
 
 
 
Shareholders’ equity
580,457

 
719,595

Total liabilities and shareholders’ equity
$
2,018,485

 
$
2,009,110

























-5-


METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
Three months ended
 
Twelve months ended
 
December 31,
 
December 31,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Cash flow from operating activities:
 
 
 
 
 
 
 
Net earnings
$
123,351

 
$
121,172

 
$
352,820

 
$
338,241

 Adjustments to reconcile net earnings to
 
 
 
 
 
 
 
net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation
8,109

 
8,148

 
33,087

 
33,617

Amortization
8,022

 
7,610

 
30,951

 
29,185

Deferred tax benefit
10,503

 
19,135

 
7,258

 
13,033

Excess tax benefits from share-based payment arrangements
(11,511
)
 
6,902

 
(12,929
)
 
(3,557
)
Other
3,865

 
3,939

 
14,378

 
13,822

Increase (decrease) in cash resulting from changes in
 
 
 
 
 
 
 
operating assets and liabilities
(5,297
)
 
(26,232
)
 
1,303

 
(5,429
)
Net cash provided by operating activities
137,042

 
140,674

 
426,868

 
418,912

 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
Proceeds from sale of property, plant and equipment
668

 
295

 
949

 
728

Purchase of property, plant and equipment
(25,750
)
 
(27,980
)
 
(82,506
)
 
(89,388
)
Acquisitions
(2,810
)
 
(2,399
)
 
(13,779
)
 
(5,784
)
Net hedging settlements on intercompany loans
148

 
(59
)
 
(5,415
)
 
123

Net cash used in investing activities
(27,744
)
 
(30,143
)
 
(100,751
)
 
(94,321
)
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from borrowings
191,862

 
115,855

 
741,864

 
628,832

Repayments of borrowings
(219,586
)
 
(147,338
)
 
(594,477
)
 
(585,867
)
Proceeds from exercise of stock options
7,722

 
7,002

 
29,556

 
21,047

Excess tax benefits from share-based payment arrangements
11,511

 
(6,902
)
 
12,929

 
3,557

Repurchases of common stock
(123,743
)
 
(117,524
)
 
(494,966
)
 
(414,000
)
Debt issuance costs
(934
)
 

 
(1,366
)
 
(941
)
Acquisitions contingent consideration paid

 
(859
)
 
(572
)
 
(859
)
Net cash used in financing activities
(133,168
)

(149,766
)

(307,032
)

(348,231
)
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
(542
)
 
(1,813
)
 
(5,461
)
 
(2,971
)
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(24,412
)

(41,048
)

13,624


(26,611
)
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
    Beginning of period
123,299

 
126,311

 
85,263

 
111,874

    End of period
$
98,887

 
$
85,263

 
$
98,887

 
$
85,263

 
 
 
 
 
 
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
137,042

 
$
140,674

 
$
426,868

 
$
418,912

Excess tax benefits from share-based payment arrangements
11,511

 
(6,902
)
 
12,929

 
3,557

Payments in respect of restructuring activities
2,966

 
1,682

 
6,568

 
9,657

Proceeds from sale of property, plant and equipment
668

 
295

 
949

 
728

Purchase of property, plant and equipment
(25,750
)
 
(27,980
)
 
(82,506
)
 
(89,388
)
Free cash flow
$
126,437

 
$
107,769

 
$
364,808

 
$
343,466


-6-


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, 2015
 
(10
)%
 
7
%
 
(8
)%
 
(3
)%
 
 
 
Twelve Months Ended December 31, 2015
 
(12
)%
 
6
%
 
(5
)%
 
(4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Currency Sales Growth (Decrease)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2015
 
 %
 
9
%
 
(2
)%
 
3
 %
 
 
 
Twelve Months Ended December 31, 2015
 
2
 %
 
8
%
 
 %
 
3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Twelve months ended
 
 
December 31,
 
December 31,
 
 
2015
 
2014
 
% Growth
 
2015
 
2014
 
% Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS as reported, diluted
$
4.44

 
$
4.17

 
6%
 
$
12.48

 
$
11.44

 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net of tax
0.17

(a)
0.04

(a)
 
 
0.30

(a)
0.15

(a)
 
Purchased intangible amortization, net of tax
0.04

(b)
0.03

(b)
 
 
0.14

(b)
0.13

(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EPS, diluted
$
4.65

 
$
4.24

 
10%
 
$
12.92

 
$
11.72

 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the EPS impact of restructuring charges of $6.0 million ($4.6 million after tax) and $1.5 million ($1.1 million after tax) for the three months ended December 31, 2015 and 2014, respectively and $11.1 million ($8.5 million after tax) and $5.9 million ($4.5 million after tax) for the twelve months ended December 31, 2015 and 2014, respectively.
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.1 million and $1.0 million for the three months ended December 31, 2015 and 2014, respectively and $3.9 million for both the twelve months ended December 31, 2015 and 2014, respectively.












-7-