EX-99.1 2 ex-991mtd8xkq32023.htm EX-99.1 Document
FOR IMMEDIATE RELEASEExhibit 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
THIRD QUARTER 2023 RESULTS


COLUMBUS, Ohio, USA – November 9, 2023 – Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2023. Provided below are the highlights:

•Reported sales declined 4% compared with the prior-year. In local currency, sales decreased 5% in the quarter as currency increased sales growth by 1%.

•Net earnings per diluted share as reported (EPS) were $9.21, compared with $9.76 in the prior-year period. Adjusted EPS was $9.80, a decrease of 4% over the prior-year amount of $10.18. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.

Third Quarter Results

Patrick Kaltenbach, President and Chief Executive Officer, stated, “We delivered good earnings and cash flow performance in the third quarter, despite more challenging market conditions in China following very strong growth over the past couple of years and foreign currency headwinds.”

GAAP Results
EPS in the quarter was $9.21, compared with the prior-year amount of $9.76.

Compared with the prior-year, total reported sales declined 4% to $942.5 million. By region, reported sales increased 12% in Europe, decreased 3% in the Americas, and decreased 17% in Asia/Rest of World. Earnings before taxes amounted to $251.2 million, compared with $275.9 million in the prior-year.

Non-GAAP Results
Adjusted EPS was $9.80, a decrease of 4% over the prior-year amount of $10.18.

Compared with the prior-year, total sales in local currency decreased 5% as currency increased sales growth by 1%. By region, local currency sales increased 4% in Europe, declined 3% in the Americas, and declined 14% in Asia/Rest of World. Adjusted Operating Profit amounted to $296.0 million, a 4% decrease from the prior-year amount of $307.2 million.

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.

Nine Month Results

GAAP Results
EPS was $27.37, compared with the prior-year amount of $26.58.

Compared with the prior-year, total reported sales were flat at $2,853.3 million. By region, reported sales increased 5% in Europe, 1% in the Americas, and declined 6% in Asia/Rest of World. Earnings before taxes amounted to $741.2 million, compared with $745.6 million in the prior-year.

Non-GAAP Results
Adjusted EPS was $28.63, an increase of 4% over the prior-year amount of $27.42.

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Compared with the prior-year, total sales in local currency increased 1% as currency reduced sales growth by 1%. By region, local currency sales increased 4% in Europe and 1% in the Americas, and declined 1% in Asia/Rest of World. Adjusted Operating Profit amounted to $870.1 million, a 4% increase from the prior-year amount of $833.8 million.

Outlook

The Company stated that forecasting remains difficult. Management cautions that market conditions are dynamic and changes to the business environment can occur quickly. There is increased uncertainty in the economic environment today, including the risk of recession in many countries.

Based on today's assessment of market conditions, management anticipates local currency sales for the fourth quarter of 2023 will decline approximately 7% to 8%, and Adjusted EPS is forecast to be $10.50 to $10.70, a decline of 12% to 13%. Included in the fourth quarter guidance is an estimated 1% headwind to Adjusted EPS growth due to adverse currency.

For the full year, management anticipates local currency sales in 2023 will decline approximately 1%, and Adjusted EPS is forecast to be in the range of $39.10 to $39.30, representing a decline of approximately 1%. This compares with previous local currency sales growth guidance of approximately 0% to 1% and Adjusted EPS guidance of $40.30 to $41.20. Included in the 2023 guidance is an estimated 3% to 4% headwind to Adjusted EPS growth due to adverse currency.

The Company stated that based on its assessment of market conditions today, management anticipates local currency sales in 2024 will be approximately flat. This is expected to result in Adjusted EPS in the range of $39.10 to $39.80, representing growth of approximately 0% to 2%. Included in the 2024 guidance is an estimated 2% headwind to Adjusted EPS growth due to adverse currency.

While the Company has provided an outlook for local currency sales growth and Adjusted EPS, it has not provided an outlook for reported sales growth or EPS as it would require an estimate of currency exchange fluctuations and non-recurring items, which are not yet known.

Conclusion

Kaltenbach concluded, “Market conditions are expected to remain challenging in the near-term, especially in China, and we continue to face difficult sales growth comparisons. We will continue to focus on the strong execution of our proven corporate programs like Spinnaker to drive growth and capture market share, and SternDrive to manage our costs effectively. Our team has shown remarkable resilience and agility as we have adjusted quickly to changing market conditions, while continuing to invest in long-term strategic priorities like innovation.”

Other Matters

The Company will host a conference call to discuss its quarterly results tomorrow morning (Friday, November 10) at 8:30 a.m. Eastern Time. To listen to 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 on the conference call will be located on the website prior to the call.

METTLER TOLEDO (NYSE: MTD) is a leading global supplier of precision instruments and services. We have strong leadership positions in all of our businesses and believe we hold global number-one market positions in most of them. We are recognized as an innovation leader and our solutions are critical in key R&D, quality control and manufacturing processes for customers in a wide range of industries including life sciences, food and chemicals. Our sales and service network is one of the most extensive in the industry. Our products are sold in more than 140 countries and we have a direct presence in approximately 40 countries. With proven growth strategies and a focus on execution, we have achieved a long-term track record of strong financial performance. For more information, please visit www.mt.com.


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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. You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks and uncertainties, including statements about expected revenue growth and long-term impacts of the COVID-19 pandemic and ongoing developments in Ukraine. 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.” We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, customer demand, our competitive position, pricing, our supply chain, adequacy of our facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, planned research and development efforts and product introductions, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions and the impact of the COVID-19 pandemic and ongoing developments in Ukraine on our businesses. Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including the uncertain duration and severity of the COVID-19 pandemic and ongoing developments in Ukraine. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2022 and other reports filed with the SEC from time to time.


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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Three months endedThree months ended
September 30, 2023% of salesSeptember 30, 2022% of sales
Net sales$942,462 (a)100.0$985,846 100.0
Cost of sales382,923 40.6401,190 40.7
Gross profit559,539 59.4584,656 59.3
Research and development46,127 4.944,129 4.5
Selling, general and administrative217,447 23.1233,357 23.7
Amortization18,314 1.916,728 1.7
Interest expense20,278 2.214,484 1.5
Restructuring charges7,385 0.82,022 0.2
Other charges (income), net(1,171)(0.1)(1,949)(0.3)
Earnings before taxes251,159 26.6275,885 28.0
Provision for taxes49,528 5.255,288 5.6
Net earnings$201,631 21.4$220,597 22.4
Basic earnings per common share:
Net earnings$9.26 $9.85 
Weighted average number of common shares21,776,944 22,403,393 
Diluted earnings per common share:
Net earnings$9.21 $9.76 
Weighted average number of common and common equivalent shares21,886,482 22,610,027 
Note:
(a)Local currency sales decreased 5% as compared to the same period in 2022.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
Three months endedThree months ended
September 30, 2023% of salesSeptember 30, 2022% of sales
Earnings before taxes$251,159 $275,885 
Amortization18,314 16,728 
Interest expense20,278 14,484 
Restructuring charges7,385 2,022 
Other charges (income), net(1,171)(1,949)
Adjusted operating profit$295,965 (b)31.4$307,170 31.2
Note:
(b)Adjusted operating profit decreased 4% as compared to the same period in 2022.

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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Nine months endedNine months ended
September 30, 2023% of salesSeptember 30, 2022% of sales
Net sales$2,853,317 (a)100.0$2,862,024 100.0
Cost of sales1,163,669 40.81,186,122 41.4
Gross profit1,689,648 59.21,675,902 58.6
Research and development138,849 4.9131,180 4.6
Selling, general and administrative680,679 23.9710,875 24.8
Amortization54,135 1.949,697 1.7
Interest expense57,711 2.038,587 1.3
Restructuring charges19,680 0.77,803 0.3
Other charges (income), net(2,578)(0.2)(7,818)(0.2)
Earnings before taxes741,172 26.0745,578 26.1
Provision for taxes137,188 4.8138,910 4.9
Net earnings$603,984 21.2$606,668 21.2
Basic earnings per common share:
Net earnings$27.54 $26.86 
Weighted average number of common shares21,933,889 22,587,026 
Diluted earnings per common share:
Net earnings$27.37 $26.58 
Weighted average number of common and common equivalent shares22,067,398 22,821,408 
Note:
(a)Local currency sales increased 1% as compared to the same period in 2022.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
Nine months endedNine months ended
September 30, 2023% of salesSeptember 30, 2022% of sales
Earnings before taxes$741,172 $745,578 
Amortization54,135 49,697 
Interest expense57,711 38,587 
Restructuring charges19,680 7,803 
Other charges (income), net(2,578)(7,818)
Adjusted operating profit$870,120 (b)30.5$833,847 29.1
Note:
(b)Adjusted operating profit increased 4% as compared to the same period in 2022.

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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
September 30, 2023December 31, 2022
Cash and cash equivalents$69,675 $95,966 
Accounts receivable, net634,967 709,321 
Inventories375,959 441,694 
Other current assets and prepaid expenses116,311 128,108 
Total current assets1,196,912 1,375,089 
Property, plant and equipment, net763,209 778,600 
Goodwill and other intangible assets, net947,835 966,224 
Other non-current assets380,774 372,482 
Total assets$3,288,730 $3,492,395 
Short-term borrowings and maturities of long-term debt$179,083 $106,054 
Trade accounts payable173,970 252,538 
Accrued and other current liabilities717,370 789,139 
Total current liabilities1,070,423 1,147,731 
Long-term debt1,929,401 1,908,480 
Other non-current liabilities394,778 411,391 
Total liabilities3,394,602 3,467,602 
Shareholders’ equity(105,872)24,793 
Total liabilities and shareholders’ equity$3,288,730 $3,492,395 
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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)



(unaudited)
Three months endedNine months ended
September 30,September 30,
2023202220232022
Cash flow from operating activities:
Net earnings$201,631 $220,597 $603,984 $606,668 
 Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation12,189 11,674 36,406 35,001 
Amortization18,314 16,728 54,135 49,697 
Deferred tax benefit(2,689)(1,644)(4,455)(4,881)
Other4,228 4,731 12,450 13,931 
Increase (decrease) in cash resulting from changes in
operating assets and liabilities30,623 (6,655)(18,151)(144,992)
Net cash provided by operating activities264,296 245,431 684,369 555,424 
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment256 118 668 236 
Purchase of property, plant and equipment(20,960)(26,822)(72,907)(89,213)
 Proceeds from government funding (a)
1,332 3,657 2,596 28,670 
Acquisitions— (14,823)(613)(25,588)
Other investing activities(11,523)(10,835)(25,937)(3,463)
Net cash used in investing activities(30,895)(48,705)(96,193)(89,358)
Cash flows from financing activities:
Proceeds from borrowings489,052 492,356 1,569,973 1,732,169 
Repayments of borrowings(508,497)(395,593)(1,467,228)(1,348,152)
Proceeds from exercise of stock options147 1,750 19,234 19,460 
Repurchases of common stock(223,999)(275,000)(723,998)(824,999)
  Acquisition contingent consideration payment (2,141)— (7,767)(7,912)
Other financing activities(112)(790)(826)(1,172)
Net cash used in financing activities(245,550)(177,277)(610,612)(430,606)
Effect of exchange rate changes on cash and cash equivalents(1,750)(6,761)(3,855)(11,888)
Net increase (decrease) in cash and cash equivalents(13,899)(7,500)(26,291)10,885 
Cash and cash equivalents:
    Beginning of period83,574 109,448 95,966 98,564 
    End of period$69,675 $122,136 $69,675 $122,136 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
Net cash provided by operating activities$264,296 $245,431 $684,369 $555,424 
    Payments in respect of restructuring activities7,544 2,271 14,942 6,516 
    Transition tax payment— — 8,042 4,289 
    Proceeds from sale of property, plant and equipment255 118 667 236 
    Purchase of property, plant and equipment, net (a)(20,362)(23,130)(65,177)(60,656)
    Acquisition payments (b)— 28 4,775 2,607 
Adjusted free cash flow$251,733 $224,718 $647,618 $508,416 
Notes:
(a) In September 2021, the Company entered into an agreement with the U.S. Department of Defense to increase the domestic production capacity of pipette tips and enhance manufacturing automation and logistics. The Company will receive funding of $35.8 million, which will offset future capital expenditures. Funding proceeds of $1.3 million and $3.7 million during the three months ended September 30, 2023 and 2022, respectively and the related purchase of property, plant and equipment of $0.6 million and $3.7 million for the three months ended September 30, 2023 and 2022, respectively, are excluded from Adjusted free cash flow. Funding proceeds of $2.6 million and $28.7 million during the nine months ended September 30, 2023 and 2022, respectively and the related purchase of property, plant and equipment of $7.7 million and $28.6 million for the nine months ended September 30, 2023 and 2022, respectively, are excluded from Adjusted free cash flow.
(b) Includes $4.4 million and $2.1 million of the PendoTECH contingent consideration payment that was reported in net cash provided by operating activities as required by U.S. GAAP for the nine months ended September 30, 2023 and 2022, respectively.
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METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION
(unaudited)
EuropeAmericasAsia/RoWTotal
U.S. Dollar Sales Growth
Three Months Ended September 30, 202312%(3)%(17)%(4)%
Nine Months Ended September 30, 20235%1%(6)%—%
Local Currency Sales Growth
Three Months Ended September 30, 20234%(3)%(14)%(5)%
Nine Months Ended September 30, 20234%1%(1)%1%
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
Three months endedNine months ended
September 30,September 30,
20232022% Growth20232022% Growth
EPS as reported, diluted$9.21 $9.76 (6)%$27.37 $26.58 3%
Purchased intangible amortization, net of tax0.24 (a)0.22 (a)0.70 (a)0.66 (a)
Restructuring charges, net of tax0.27 (b)0.07 (b)0.72 (b)0.28 (b)
Income tax expense0.08 (c)0.13 (c)(0.16)(c)(0.12)(c)
Acquisition costs, net of tax— — — (d)0.02 (d)
Adjusted EPS, diluted$9.80 $10.18 (4)%$28.63 $27.42 4%
Notes:
(a)Represents the EPS impact of purchased intangibles amortization of $6.7 million ($5.2 million net of tax) and $6.4 million ($5.0 million net of tax) for the three months ended September 30, 2023 and 2022, and of $20.0 million ($15.4 million net of tax) and $19.4 million ($15.0 million net of tax) for the nine months ended September 30, 2023 and 2022, respectively.
(b)Represents the EPS impact of restructuring charges of $7.4 million ($6.0 million after tax) and $2.0 million ($1.6 million after tax) for the three months ended September 30, 2023 and 2022, and $19.7 million ($15.9 million after tax) and $7.8 million ($6.3 million after tax) for the nine months ended September 30, 2023 and 2022, respectively, which primarily include employee related costs.
(c)Represents the EPS impact of the difference between our quarterly and estimated annual tax rate before non-recurring discrete items during the three and nine months ended September 30, 2023 and 2022 due to the timing of excess tax benefits associated with stock option exercises.
(d)Represents the EPS impact of acquisition costs of $0.7 million ($0.5 million after tax) for the nine months ended September 30, 2022.



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