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METTLER-TOLEDO INTERNATIONAL INC. REPORTS FIRST QUARTER 2014 RESULTS - - Solid Earnings Growth Despite Currency Headwinds- - COLUMBUS, Ohio, USA

Thursday, May 8, 2014 3 min read
Key Takeaway: METTLER-TOLEDO INTERNATIONAL INC. REPORTS FIRST QUARTER 2014 RESULTS - - Solid Earnings Growth Despite Currency Headwinds- - COLUMBUS, Ohio, USA - May 8, 2014 - Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2014. Provided below are the

Full Press Release Details

METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2014 RESULTS
- - Solid Earnings Growth Despite Currency Headwinds- -
COLUMBUS, Ohio, USA - May 8, 2014 - Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2014. Provided below are the highlights:
First Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, "Demand was very good in Europe, and growth in the Americas was solid. In China, our sales performance improved, but it has not yet resulted in year over year sales growth. In other regions of Asia / Rest of the World, growth was good. Despite currency headwinds, we generated solid EPS growth as we continue to benefit from our various margin and cost control initiatives."
EPS in the quarter was $1.93, compared with the prior-year amount of $1.69. Adjusted EPS was $2.00, an increase of 9% over the prior-year amount of $1.84.
Sales were $550.6 million, a 4% increase in local currency sales, compared with $524.4 million in the prior-year quarter. Reported sales increased 5%, and included a 1% benefit due to currency in the quarter. By region, local currency sales increased 9% in Europe, 3% in the Americas and 1% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $91.0 million, a 6% increase from the prior-year amount of $85.4 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 $42.8 million, compared with $23.7 million in the prior-year quarter.
The Company updated its outlook for 2014 and noted that uncertainty in demand in some markets makes forecasting challenging. Based on today's assessment, management anticipates that local currency sales growth in 2014 will be approximately 4% and Adjusted EPS in the range of $11.45 to $11.60, an increase of 8% to 10%. This compares to previous guidance of Adjusted EPS in the range of $11.40 to $11.60.
The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in the second quarter of 2014 will be in the range of 3% to 4%. This sales growth will result in Adjusted EPS in the range of $2.50 to $2.55, an increase of 6% 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.
Filliol concluded, "We have become more optimistic for the developed world as market conditions appear to be improving. In the short term, conditions will remain challenging in emerging markets, particularly in China, although we expect that these regions will regain momentum and again become an important contributor to growth. Globally we are capitalizing on our sales and marketing programs and new product launches. We are focused on execution and are convinced we can continue to enhance our market position."
The Company will host a conference call to discuss its quarterly results today (Thursday May 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 INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited)
Three months ended Three months ended
March 31, 2014 % of sales March 31, 2013 % of sales
Net sales $ 550,621 (a) 100.0 $ 524,355 100.0
Cost of sales 257,980 46.9 245,197 46.8
Gross profit 292,641 53.1 279,158 53.2
Research and development 29,497 5.4 27,700 5.3
Selling, general and administrative 172,191 31.3 166,025 31.7
Amortization 7,094 1.3 5,122 1.0
Interest expense 5,666 1.0 5,400 1.0
Restructuring charges 1,492 0.3 5,002 1.0
Other charges (income), net 317 - 773 -
Earnings before taxes 76,384 13.8 69,136 13.2
Provision for taxes 18,333 3.3 16,592 3.2
Net earnings $ 58,051 10.5 $ 52,544 10.0
Basic earnings per common share:
Net earnings $ 1.98 $ 1.73
Weighted average number of common shares 29,370,232 30,299,569
Diluted earnings per common share:
Net earnings $ 1.93 $ 1.69
Weighted average number of common
and common equivalent shares 30,088,245 31,101,979
Note:
(a) Local currency sales increased 4% as compared to the same period in 2013.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
Three months ended Three months ended
March 31, 2014 % of sales March 31, 2013 % of sales
Earnings before taxes $ 76,384 $ 69,136
Amortization 7,094 5,122
Interest expense 5,666 5,400
Restructuring charges 1,492 5,002
Other charges (income), net 317 773
Adjusted operating income $ 90,953 (b) 16.5 $ 85,433 16.3
Note:
(b) Adjusted operating income increased 6% as compared to the same period in 2013.
METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) (unaudited)
March 31, 2014 December 31, 2013
Cash and cash equivalents $ 115,804 $ 111,874
Accounts receivable, net 425,161 466,703
Inventories 224,420 210,414
Other current assets and prepaid expenses 124,720 124,996
Total current assets 890,105 913,987
Property, plant and equipment, net 517,686 514,438
Goodwill and other intangible assets, net 569,861 570,260
Other non-current assets 157,485 154,134
Total assets $ 2,135,137 $ 2,152,819
Short-term borrowings and maturities of long-term debt $ 16,255 $ 17,067
Trade accounts payable 119,128 145,993
Accrued and other current liabilities 373,812 401,128
Total current liabilities 509,195 564,188
Long-term debt 449,582 395,960
Other non-current liabilities 252,756 257,619
Total liabilities 1,211,533 1,217,767
Shareholders' equity 923,604 935,052
Total liabilities and shareholders' equity $ 2,135,137 $ 2,152,819
METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited)
Three months ended
March 31,
2014 2013
Cash flow from operating activities:
Net earnings $ 58,051 $ 52,544
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 8,420 8,881
Amortization 7,094 5,122
Deferred tax provision (695 ) (3,354 )
Excess tax benefits from share-based payment arrangements (4,495 ) (256 )
Other 3,238 2,831
Decrease in cash resulting from changes in
operating assets and liabilities (28,768 ) (42,096 )
Net cash provided by operating activities 42,845 23,672
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 189 36
Purchase of property, plant and equipment (16,716 ) (19,018 )
Acquisition (391 ) -
Net cash used in investing activities (16,918 ) (18,982 )
Cash flows from financing activities:
Proceeds from borrowings 145,879 141,959
Repayments of borrowings (93,229 ) (89,334 )
Proceeds from exercise of stock options 3,450 7,069
Excess tax benefits from share-based payment arrangements 4,495 256
Repurchases of common stock (82,498 ) (72,300 )
Other financing activities (235 ) (483 )
Net cash used in financing activities (22,138 ) (12,833 )
Effect of exchange rate changes on cash and cash equivalents 141 (350 )
Net decrease in cash and cash equivalents 3,930 (8,493 )
Cash and cash equivalents:
Beginning of period 111,874 101,702
End of period $ 115,804 $ 93,209
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $ 42,845 $ 23,672
Excess tax benefits from share-based payment arrangements 4,495 256
Payments in respect of restructuring activities 3,141 4,646
Proceeds from sale of property, plant and equipment 189 36
Purchase of property, plant and equipment (16,716 ) (19,018 )
Free cash flow $ 33,954 $ 9,592
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 March 31, 2014 12 % 2 % - % 5 %
Local Currency Sales Growth
Three Months Ended March 31, 2014 9 % 3 % 1 % 4 %
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
Three months ended
March 31,
2014 2013 % Growth
EPS as reported, diluted $ 1.93 $ 1.69 14%
Restructuring charges, net of tax 0.04 (a) 0.12 (a)
Purchased intangible amortization, net of tax 0.03 (b) 0.03 (b)
Adjusted EPS, diluted $ 2.00 $ 1.84 9%
Notes:
(a) Represents the EPS impact of restructuring charges of $1.5 million ($1.1 million after tax) and $5.0 million ($3.8 million after tax) for the three months ended March 31, 2014 and 2013, respectively, which primarily include severance costs.
(b) Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million for both the three month periods ended March 31, 2014 and 2013.
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Last updated: May 8, 2014