Mettler-Toledo International Inc. Reports Fourth Quarter 2015 Results

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- - Strong Margin Expansion - -

- - Good Execution - -

COLUMBUS, Ohio, Feb. 4, 2016 /PRNewswire/ -- Mettler-Toledo International Inc. 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.

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.  

 

 

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 



27,755,045





29,045,269



  and common equivalent shares























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.



 

 

 

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 



28,269,615





29,571,308



  and common equivalent shares























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.



 

 

 

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






 

 

 

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)

    Acquisition 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











 

 

 

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



0%


9%


(2%)


3%




Twelve Months Ended December 31, 2015



2%


8%


0%


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.



 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-fourth-quarter-2015-results-300215621.html

SOURCE Mettler-Toledo International Inc.

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