Sales in local currency increased 6% in the quarter compared with the prior year.
- - Good Sales Growth - -
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COLUMBUS, Ohio, Feb. 8, 2018 /PRNewswire/ -- METTLER TOLEDO (NYSE: MTD) today announced fourth quarter results for 2017. Provided below are the highlights:
Fourth Quarter Results Olivier Filliol, President and Chief Executive Officer, stated, "Sales growth in the quarter was good, with particularly strong broad-based growth in our Laboratory business. Our productivity initiatives continue to generate positive results which contributed to another strong growth in Adjusted EPS." EPS in the quarter was $2.93, compared with the prior-year amount of $5.17. Adjusted EPS was $5.97, an increase of 13% over the prior-year amount of $5.28. EPS includes a $2.74 income tax charge related to the new U.S. tax legislation. Sales were $778.0 million, a 6% increase in local currency sales, compared with $709.7 million in the prior-year quarter. Reported sales increased 10% as currency increased sales growth by 4% in the quarter. As compared with the prior year, local currency sales increased 9% in the Americas, 1% in Europe and 7% in Asia/Rest of World. Adjusted operating income amounted to $217.8 million, a 9% increase from the prior-year amount of $200.2 million. Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules. Full Year Results EPS for 2017 was $14.24, compared with the prior-year amount of $14.22. Adjusted EPS was $17.57, an increase of 19% over the prior-year amount of $14.80. EPS includes a $2.73 income tax charge related to the new U.S. tax legislation. Sales were $2.725 billion, an 8% increase in local currency sales, compared with $2.508 billion in the prior-year period. Reported sales increased 9% as currency increased sales growth by 1% in the period. As compared with the prior year, local currency sales increased 8% in the Americas, 5% in Europe and 11% in Asia/Rest of World. Adjusted operating income amounted to $656.6 million, a 13% increase from the prior-year amount of $583.0 million. Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules. Outlook The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2018 will be approximately 6%. This sales growth is expected to result in Adjusted EPS in the range of $19.95 to $20.15, which reflects growth of 14% to 15%. This compares to previous Adjusted EPS guidance of $19.65 to $19.85. Management anticipates that local currency sales growth in the first quarter 2018 will be approximately 5%, and Adjusted EPS is forecasted to be in the range of $3.65 to $3.70, an increase of 9% to 11%. 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. The Company noted in making its outlook that economic uncertainty remains in certain regions of the world and market conditions are subject to change. Conclusion Filliol concluded, "Diligent execution of our strategic initiatives, supported by favorable economic conditions in all major regions of the world, resulted in excellent operating results in 2017. We believe we are well positioned for further share gains with the benefit of our Spinnaker sales and marketing initiatives, excellent product pipeline, additional investments in sales resources and further use of sophisticated tools such as big data analytics to identify growth opportunities in our markets. We expect our growth initiatives combined with our margin and productivity programs will generate strong operating results and provide the capacity for future growth investments." Other Matters The Company will host a conference call to discuss its quarterly results today (Thursday, February 8) 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 (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. 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, 2017 % of sales December 31, 2016 % of sales
----------------- ---------- ----------------- ----------
Net sales $778,031 (a) 100.0 $709,699 100.0
Cost of sales 322,812 41.5 291,089 41.0
------- ---- ------- ----
Gross profit 455,219 58.5 418,610 59.0
Research and development 32,542 4.2 30,155 4.2
Selling, general and administrative 204,860 26.3 188,223 26.5
Amortization 11,661 1.5 9,886 1.4
Interest expense 8,625 1.1 7,407 1.1
Restructuring charges 3,932 0.5 1,656 0.3
Other charges (income), net (301) (0.0) (1) (0.0)
---- ---
Earnings before taxes 193,900 24.9 181,284 25.5
Provision for taxes 116,924 (b) 15.0 43,508 6.1
Net earnings $76,976 9.9 $137,776 19.4
======= === ======== ====
Basic earnings per common share:
Net earnings $3.01 $5.27
Weighted average number of common shares 25,562,542 26,139,024
Diluted earnings per common share:
Net earnings $2.93 $5.17
Weighted average number of common 26,229,052 26,631,269
and common equivalent shares
Note:
(a) Local currency sales increased 6% as compared to the same period in 2016.
(b) Provision for taxes for the three months ended December 31, 2017 includes a provisional one-
time charge of $72 million for the implementation of the Tax Cuts and Jobs Act. Of this amount,
$59 million is expected to paid over a period of up to eight years. The estimated charge may
change with the finalization of implementation.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
Three months ended
Three months ended
December 31, 2017 % of sales December 31, 2016 % of sales
----------------- ---------- ----------------- ----------
Earnings before taxes $193,900 $181,284
Amortization 11,661 9,886
Interest expense 8,625 7,407
Restructuring charges 3,932 1,656
Other charges (income), net (301) (1)
Adjusted operating income $217,817 (c) 28.0 $200,232 28.2
======== ========
Note:
(c) Adjusted operating income increased 9% as compared to the same period in 2016.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Twelve months ended Twelve months ended
December 31, 2017 % of sales December 31, 2016 % of sales
----------------- ---------- ----------------- ----------
Net sales $2,725,053 (a) 100.0 $2,508,257 100.0
Cost of sales 1,151,740 42.3 1,072,670 42.8
--------- ---- --------- ----
Gross profit 1,573,313 57.7 1,435,587 57.2
Research and development 129,265 4.7 119,968 4.8
Selling, general and administrative 787,464 28.8 732,622 29.2
Amortization 42,671 1.6 36,052 1.4
Interest expense 32,785 1.2 28,026 1.1
Restructuring charges 12,772 0.5 6,235 0.3
Other charges (income), net (5,866) (0.2) 8,491 0.3
------ ---- ----- ---
Earnings before taxes 574,222 21.1 504,193 20.1
Provision for taxes 198,250 (b) 7.3 119,823 4.8
--- ---
Net earnings $375,972 13.8 $384,370 15.3
======== ==== ======== ====
Basic earnings per common share:
Net earnings $14.62 $14.49
Weighted average number of common shares 25,713,575 26,517,768
Diluted earnings per common share:
Net earnings $14.24 $14.22
Weighted average number of common 26,393,783 27,023,905
and common equivalent shares
Note:
(a) Local currency sales increased 8% as compared to the same period in 2016.
(b) Provision for taxes for the twelve months ended December 31, 2017 includes a provisional one-time
charge of $72 million for the implementation of the Tax Cuts and Jobs Act. Of this amount, $59
million is expected to paid over a period of up to eight years. The estimated charge may change
with the finalization of implementation.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
Twelve months ended Twelve months ended
December 31, 2017 % of sales December 31, 2016 % of sales
----------------- ---------- ----------------- ----------
Earnings before taxes $574,222 $504,193
Amortization 42,671 36,052
Interest expense 32,785 28,026
Restructuring charges 12,772 6,235
Other charges (income), net (5,866) (c) 8,491 (e)
Adjusted operating income $656,584 (d) 24.1 $582,997 23.2
======== ========
Note:
(c) Other charges (income), net includes a one-time gain of $3.4 million relating to the sale of a
facility in Switzerland in connection with our initiative to consolidate certain Swiss operations
into a new facility and $1.7 million of acquisition costs for the twelve months ended December 31,
2017.
(d) Adjusted operating income increased 13% as compared to the same period in 2016.
(e) Other charges (income), net includes a one-time non-cash pension settlement charge of $8.2
million related to a lump sum settlement to former employees of our U.S. pension plan and
acquisition costs of $1.1 million for the twelve months ended December 31, 2016.
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
December 31, 2017 December 31, 2016
----------------- -----------------
Cash and cash equivalents $148,687 $158,674
Accounts receivable, net 528,615 454,988
Inventories 255,390 222,047
Other current assets and
prepaid expenses 74,031 61,075
------ ------
Total current assets 1,006,723 896,784
Property, plant and
equipment, net 668,271 563,707
Goodwill and other
intangibles assets, net 766,556 643,433
Other non-current assets 108,255 62,853
Total assets $2,549,805 $2,166,777
========== ==========
Short-term borrowings and
maturities of long-term
debt $19,677 $18,974
Trade accounts payable 167,627 146,593
Accrued and other current
liabilities 502,369 421,948
------- -------
Total current liabilities 689,673 587,515
Long-term debt 960,170 875,056
Other non-current
liabilities 352,682 269,263
------- -------
Total liabilities 2,002,525 1,731,834
Shareholders' equity 547,280 434,943
Total liabilities and
shareholders' equity $2,549,805 $2,166,777
========== ==========
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Cash flows from operating activities:
Net earnings $76,976 $137,776 $375,972 $384,370
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 9,037 8,216 33,458 32,743
Amortization 11,661 9,886 42,671 36,052
Deferred tax provision (benefit) 5,009 12,956 (2,745) 1,878
Share-based compensation 4,759 4,445 16,582 15,306
Provisional one-time charge on US tax reform 71,982 - 71,982 -
Gain on facility sale - - (3,394) -
Non-cash pension settlement charge - - - 8,189
Other 16 175 243 181
Decrease in cash resulting from changes in
operating assets and liabilities (14,350) (20,009) (18,444) (17,961)
Net cash provided by operating activities 165,090 153,445 516,325 460,758
------- ------- ------- -------
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment(a) 1,536 62 11,973 423
Purchase of property, plant and equipment (41,600) (72,723) (127,426) (123,957)
Acquisitions - (1,700) (108,445) (111,381)
Net hedging settlements on intercompany loans 2,838 1,428 6,554 3,459
Net cash used in investing activities (37,226) (72,933) (217,344) (231,456)
------- ------- -------- --------
Cash flows from financing activities:
Proceeds from borrowings 258,501 195,786 1,244,195 905,774
Repayments of borrowings (351,111) (138,265) (1,185,172) (594,178)
Proceeds from exercise of stock options 5,334 5,284 28,649 25,471
Repurchases of common stock (64,999) (124,998) (399,997) (499,992)
Acquisition contingent consideration paid - - - (471)
Other financing activities - - (7,205) (209)
Net cash provided used in financing activities (152,275) (62,193) (319,530) (163,605)
-------- ------- -------- --------
Effect of exchange rate changes on cash and cash equivalents 4,012 (5,778) 10,562 (5,910)
Net (decrease) increase in cash and cash equivalents (20,399) 12,541 (9,987) 59,787
Cash and cash equivalents:
Beginning of period 169,086 146,133 158,674 98,887
End of period $148,687 $158,674 $148,687 $158,674
======== ======== ======== ========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $165,090 $153,445 $516,325 $460,758
Payments in respect of restructuring activities 4,962 2,072 12,663 8,376
Payments for acquisition costs 672 - 1,436 910
Proceeds from sale of property, plant and equipment(a) 1,536 62 11,973 423
Purchase of property, plant and equipment (41,600) (72,723) (127,426) (123,957)
Free cash flow $130,660 $82,856 $414,971 $346,510
======== ======= ======== ========
(a) Proceeds from sale of property, plant and equipment includes $9.9 million relating to the
sale of a facility in Switzerland in connection with our initiative to consolidate certain
Swiss operations into a new facility for the twelve months ended December 31, 2017.
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 December 31, 2017 9% 9% 10% 10%
Twelve Months Ended December 31, 2017 6% 8% 11% 9%
Local Currency Sales Growth
Three Months Ended December 31, 2017 1% 9% 7% 6%
Twelve Months Ended December 31, 2017 5% 8% 11% 8%
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
------------ ------------
2017 2016 % Growth 2017 2016 % Growth
---- ---- -------- ---- ---- --------
EPS as reported, diluted $2.93 $5.17 (43%) $14.24 $14.22 0%
Restructuring charges, net of tax 0.12 (a) 0.05 (a) 0.38 (a) 0.18 (a)
Purchased intangible amortization, net of tax 0.09 (b) 0.06 (b) 0.27 (b) 0.18 (b)
U.S. tax reform 2.74 (c) - 2.73 (c) -
Income tax expense 0.09 (d) - - -
Acquistion costs, net of tax - - 0.05 (e) 0.03 (e)
Gain on facility sale - - (0.10) (f) -
Non-cash pension settlement charge, net of tax - - - 0.19 (g)
--- --- --- ----
Adjusted EPS, diluted $5.97 $5.28 13% $17.57 $14.80 19%
===== ===== ====== ======
Notes:
(a) Represents the EPS impact of restructuring charges of $3.9 million ($3.1 million after tax) and $1.7 million ($1.3
million after tax) for the three months ended December 31, 2017 and 2016, and $12.8 million ($10.0 million after
tax) and $6.2 million ($4.7 million after tax) for the twelve months ended December 31, 2017 and 2016, respectively,
which primarily include employee related costs.
(b) Represents the EPS impact of purchased intangibles amortization of $3.7 million ($2.3 million after tax) and $2.2
million ($1.5 million after tax) for the three months ended December 31, 2017 and 2016, and $10.9 million ($7.1
million after tax) and $7.4 million ($5.0 million after tax) for the twelve months ended December 31, 2017 and 2016,
respectively.
(c) Represents the EPS impact of a provisional one-time charge of $72.0 million for the three and twelve months ended
December 31, 2017 for the implementation of the Tax Cuts and Jobs Act ("Tax Act") which was signed into law in
December 2017. The enactment of the Tax Act results in a one-time cash charge for un-repatriated foreign earnings
of $59 million which is expected to be paid over a period of up to eight years, and a one-time non-cash charge of
$13 million related to certain deferred tax and other non-cash items. The estimated charge may change with the
finalization of implementation.
(d) Represents the EPS impact of the difference between our reported tax rate of 23% before a one-time charge related to
U.S. tax reform during the three months ending December 31, 2017 and our annual income tax rate of 22%, which
reflects a 2% annual benefit pertaining to excess tax benefits associated with stock option exercises.
(e) Represents the EPS impact of acquisition costs of $1.7 million ($1.3 million after tax) and $1.1 million ($0.8
million after tax) for the twelve months ended December 31, 2017 and 2016, respectively.
(f) Represents the EPS impact of a one-time gain of $3.4 million ($2.7 million after tax) for the twelve months ended
December 31, 2017 relating to the sale of a facility in Switzerland in connection with our initiative to consolidate
certain Swiss operations into a new facility.
(g) Represents the EPS impact of a one-time non-cash pension settlement charge of $8.2 million ($5.1 million after tax)
related to a lump sum settlement to former employees of our U.S. pension plan for the twelve months ended December
31, 2016.
View original content:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-fourth-quarter-2017-results-300596146.html SOURCE Mettler-Toledo International Inc. |
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Company Codes: NYSE:MTD |
